China's Tech, Tesla's Surge, Bitcoin' Stall | Bloomberg Technology
>> FROM THE HEART OVER INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: WE ARE LIVE FROM NEW YORK. THIS IS "BLOOMBERG TECHNOLOGY." TIM COOK VISITS CHINA AND ON ITS IMPORTANCE TO THE TECH COMPANY. PLUS WE WILL LOOK AT WHAT IS BEHIND TESLA'S POSTELECTION STOCK SEARCH, IS IT FUNDAMENTALS OR HYPE? AND BITCOINS RALLY STALLS OUT AFTER REACHING NEARLY $100,000. WE WILL SPEAK TO KRISTIN SMITH FROM BLOCKCHAIN ASSOCIATION. MARKET INDIGESTION MODE, UP A
QUARTER PERCENT ON THE NASDAQ 100, COMING DOWN FROM EARLIER GAINS. A HOLIDAY SHORTENED WEEK HERE IN AMERICA SO WE WILL ANTICIPATE PERHAPS LIQUIDITY BEING LESS THAN IT HAS BEEN. UP ACROSS THE ENTIRE BENCHMARKS THIS MORNING. IT IS ALL ABOUT SUPERMICRO, UP 13%. LAST WEEK, WE HAD THE COMPANY ON A TEAR. CONFIRMATION THAT BDO USA WILL BECOME A FOCUS ON ITS FINANCIALS, LOOKING THROUGH THE AUDITING.
ALSO THEY ARE TRYING TO REMAIN IN THE NASDAQ. A LOT OF HOPE GOING INTO THIS STOCK. NVIDIA OFF BY ANOTHER 3%. IT WAS LOWER AFTER EARNINGS LAST WEEK AND WE CONTINUE TO SEE PROFIT TAKING AND MAYBE SOME CONCERNS THAT COMPETITORS ARE INDEED THEIR OWN CLIENTS ARE BUILDING THEIR OWN SHIPS.
FIRST, LET'S GET MORE ON TODAY'S MARKET MOVES. WHEN YOU FOLD IN THE GEOPOLITICAL CONTENTIONS, WE ARE STILL EYEING WHAT HAPPENED BETWEEN THE U.S. AND CHINA, WHAT IS HAPPENING WITH EARNINGS FROM THE TECH GIANTS. ISABEL, YOU BEEN GOING GLOBAL FOR US. CHINESE EARNINGS HAVE BEEN
AWFUL FOR TECH COMPANIES. WE GET A BIT OF A REPRIEVE TODAY BUT WE ARE ENTERING A BEAR MARKET LAST WEEK. >> IT WAS DEFINITELY THE CASE FOR ALL CHINESE COMPANIES. YOU ALLUDED TO THE GEOPOLITICAL AND ECONOMIC UNCERTAINTIES AND WHETHER THESE COMPANIES CAN WAIT INVESTORS BACK, LARGELY HINGES ON THE BEIJING STIMULUS. OVER THE PAST WEEK, WE HAVE THE FIVE BIGGEST TECH COMPANIES ERASING $41 BILLION. CALL AFTER CALL, THESE EXECUTIVES ARE REALLY JUST SAYING HOW IT ON EVEN THE ECONOMY IS, UNDERWHELMING IT IS, BUT ALSO ASKING INVESTORS FOR PATIENTS.
PDD TALKED ABOUT THEIR DISAPPOINTING EARNINGS. EVEN BUT I DO, WHICH IS A FRONT RUNNER IN THE AI DEVELOPMENT, FAILED TO WOW. LASTLY, MORGAN STANLEY CUTTING CHINESE EQUITIES TO SLIGHTLY UNDERWEIGHT. GOLDMAN SACHS LOWERING ITS MSCI RATING. IT REALLY UNDERSCORES HOW CAUTIOUS AND SHAKY CHINESE EQUITIES ARE FOR NOW. CAROLINE: ISABEL LEE WITH A ROUNDUP OF
CHINESE CONCERNS. AMID THAT CONCERN ARE A NUMBER OF EXECUTIVES OF GLOBAL FIRMS TRAVELING TO CHINA TO DISCUSS IN CONVERSATIONS WITH THE COUNTRY'S PREMIER. TIM COOK WAS ONE OF THOSE. >> I AM THRILLED TO BE HERE, SO PROUD APPLE HAS AN EXHIBIT HERE WITH OUR PARTNERS.
>> HOW DO YOU VALUE PARTNERS IN CHINA? >> VERY HIGHLY. WE COULD NOT DO WHAT WE DO WITHOUT THEM. CAROLINE: REMIND US WHY CHINA IS SO INTEGRAL TO APPLE? >> CHINA IS HUGELY IMPORTANT TO APPLE'S SUPPLY CHAIN AND ACCORDING TO REPORTING, IS APPLE'S SECOND LARGEST MARKET BEHIND THE U.S. WHERE IT IS CURRENTLY STRUGGLING ACCORDING TO MANY OF OUR REPORTS THIS PAST YEAR AGAINST CHINESE DOMESTIC SMARTPHONE MAKERS.
ON THOSE TWO ACCOUNTS, EXTREMELY IMPORTANT TO APPLE. CAROLINE: MEANWHILE, THEY HAVE THE RUN WHAT TERRORISTS WILL LOOK LIKE UNDER A TRUMP ADMINISTRATION AND ACTUALLY YOU'VE DONE A GREAT REPORTING ACROSS THE ENTIRE TEAM THAT THEIR INTERESTING RELATIONS ACROSS ASIA. SOMEWHERE THEY HAVE TO INVEST MORE TO EARN THE RIGHT TO SELL THEIR PRODUCTS, AND IN CHINA, WHERE THEY HAVE TO CONTINUE TO BUILD. DANA: BLOOMBERG ALSO HAD A REPORT THAT INDONESIA IS PUSHING BACK ON LIFTING ITS IPHONE 16 SALES BEEN, DEMANDING MORE INVESTMENT FROM APPLE, SAYING YOU HAVE INVESTED SO MUCH IN MANUFACTURING IN VIETNAM, WHICH IS A SMALLER MARKET FOR YOU IN TERMS OF IPHONE SALES. WHY NOT INVEST MORE IN
INDONESIA WHICH IS THE LARGEST SOUTHEAST ASIAN ECONOMY? THE TWO STORIES TODAY STOOD AS A REAL CONTRAST FOR ME. THIS PUSH FROM INDONESIAN LEADERS FROM THIS REPORT OUT OF CHINA THAT HIGHLIGHTED HOW VULNERABLE APPLE'S BUSINESS IS IN THE REGION. CAROLINE: WE LOVE THE CONTEXT. LET'S TALK ABOUT THE OTHER JUGGERNAUT THAT IS NVIDIA, BIG EXPOSURE TO CHINA IN TERMS OF SELLING INTO THAT MARKET. THE CEO WAS IN HONG KONG OVER THE WEEKEND WHERE HE RECEIVED AN HONORARY DOCTORATE FROM HONG KONG UNIVERSITY, EMPHASIZED TIES TO THE REGION AND WEIGHED IN ON THE INCOMING ADMINISTRATION. >> I DON'T KNOW WHAT WILL HAPPEN WITH THE NEW ADMINISTRATION BUT WHATEVER HAPPENS, WE WILL BALANCE SIMULTANEOUSLY COMPLIANCE WITH LAWS AND POLICIES, CONTINUE TO ADVANCE OUR TECHNOLOGY, SUPPORT AND SERVE CUSTOMERS ALL OVER THE WORLD. WE WILL BE ABLE TO DO THAT JUST
FINE. CAROLINE: LET'S KEEP THE CONVERSATION GOING FROM AN INVESTOR PERSPECTIVE. SCOTT LADNER FROM HORIZON INVESTMENTS, DOESN'T GIVE YOU PAUSE AS YOU TRY TO UNDERSTAND WHAT CHINESE-U.S. RELATIONS LOOK LIKE AND HOW YOU INVEST IN TECH? SCOTT: YOU HAVE TO TAKE INTO ACCOUNT WHAT THIS ADMINISTRATION SAYS THEY WILL DO TO CHINA ON THE TECH FRONT, WHAT THE RETALIATION MAY LOOK LIKE. WE THINK THE U.S. IS IN A STRONGER POSITION THE LAST TIME WHEN THEY CONFRONTED IN 2018 BECAUSE CHINA IS IN THE THROES OF A BALANCING RECESSION, SO NOT AS MUCH MANEUVERABILITY ON THE STIMULUS SIDE. BUT TAKING INTO ACCOUNT HOW
THEY WILL INTERACT WITH EACH OTHER HAS A LOT TO DO WITH WHERE WE PUT OUR MONEY INTO TECH. CAROLINE: EVEN AT THESE BEATEN UP LEVELS, WOULD YOU BE THINKING ABOUT THE CHINESE TECHNOLOGY GIANTS BEING ACCRETIVE IN THE FUTURE? SCOTT: FOOL ME ONCE, FULL ME TWICE ON THE CHINESE STIMULUS STUFF. YOU CANNOT PREDICT WITH THE CHINESE COMMUNIST PARTY WILL DO WITH RESPECT TO FISCAL STIMULUS, WHICH IS WHAT THE DOCTOR ORDERED FOR THAT ECONOMY. WITHOUT THAT STIMULUS, IT IS TOUGH TO GET OUT OF THESE BALANCING RECESSION'S WHERE DEMAND IS LACKING. IF WE GET ANNOUNCEMENTS THAT
CHINA IS GOING TO ENGAGE IN LARGE-SCALE FISCAL STIMULUS, YES, YOU HAVE TO GET ON BOARD CHINESE TECH STOCKS BECAUSE THE CONSUMER THEN CAN COME BACK ALIVE AND WE CAN GET GOING. WITHOUT THAT, YOU CANNOT PREDICT POLICY IN CHINA, SO WE HAVE TO TAKE A WAIT AND SEE APPROACH. CAROLINE: WHAT ABOUT U.S. NAMES THAT HAVE SIGNIFICANT EXPOSURE TO CHINA AND PERHAPS HAVE NOT MANAGED TO SHOW THEY HAVE SUCH STRONG DEMAND GLOBALLY THAT IT DOESN'T MATTER? SCOTT: THIS WILL HURT THEM BUT THIS IS NOT NEW NEWS. EVERYONE KNOWS THAT WITH A TRUMP WIN, CHINA IS ENEMY NUMBER ONE.
THESE COMPANIES HAVE BEEN PLANNING FOR THE POTENTIALITY OF A TRUMP WIN. LIKE I SAID, THIS IS NOT NEW NEWS. CAROLINE: LET'S THINK ABOUT WHAT IS NOT NEW NEWS WHEN IT COMES TO PLAYERS LIKE NVIDIA.
ONE OF THE WORST POINTS CONTRIBUTED TO THE NASDAQ TODAY, FALLING ANOTHER 3%, WHICH IS A LOT OF MARKET CAP EROSION FOR A BUSINESS AS BIG AS THIS. IS THIS PROFIT, EXPOSURE TO CHINA, EXPOSURE TO TOO FEW CLIENTS LIKE MICROSOFT, AMAZON, ALPHABET? SCOTT: PROBABLY A LITTLE BIT OF ALL OF THOSE THINGS. WHEN YOU HAVE AMAZON COMING OUT AND SAYING WE MAY START COMPETING WITH YOU, EVEN THOUGH THEY HAVE BEEN IN THE GAME FOR A WHILE, BUT THEY ARE RAMPING UP EFFORTS. THIS IS A VERY LUCRATIVE SPACE. MARGINS UPWARDS OF 80%. IT MAKES SENSE FOR THE LARGE TECH COMPANIES TO TRY TO COME IN AND CHALLENGE NVIDIA'S PLACE IN THE MARKET. THESE THINGS WILL TAKE TIME, BUT IT HAS TO WEIGH ON THE STOCK PRICE AT SOME POINT. CAROLINE:
DO YOU KEEP THE EXPOSURE YOU HAVE? IT FEELS A FOOLS ERRAND TO BET AGAINST BIG TECH. SCOTT: LET ME BE CLEAR, I AM NOT ADVOCATING BETTING AGAINST BIG TECH. WE ARE IN THE MID TO LATE 1990'S CYCLE, BIG TECH IS HIM, AS THE KIDS WOULD SAY. THIS IS NOT JUST NVIDIA ANYMORE, NOT JUST THE 2023 AI TRADE.
I'M BROADENING OUT OF THIS THEME INTO OTHER USERS, HOW ARE COMPANIES GOING TO USE AI IN THE FUTURE, WHAT OTHER SUPPLIERS MAY COME ONLINE LIKE AMAZON? PLAYING THAT OUT IS WHERE WE ARE SPENDING QUITE A LOT OF TIME FIGURING THAT OUT HERE AT HORIZON. YOU DO NOT WANT TO BE SHORT TECH, SHORT THIS AI THEME. YOU HAVE TO UNDERSTAND HOW TO PLAY IT IN 2025, NOT 2023. CAROLINE: I KNOW YOU DON'T WANT TO SHARE THE SECRET SAUCE, BUT AS YOU ARE DOING THAT, WHERE HAVE BEEN THE RICH PICKINGS BEEN SO FAR? WE HEAR IT'S ABOUT THE APPLICATIONS AND HEALTH CARE. WHERE ARE YOU SEEING THE OUTSIZE POTENTIAL HERE? SCOTT: YOU ARE PICKING ON A COUPLE OF THEM. AT SOME POINT, YOU HAVE TO GET
DOWN TO THE USERS. IF YOU LOOK AT THE TECH TRADE IN THE 1990'S, YOU LOOK AT THE PEOPLE THAT MADE IT POSSIBLE, BUT THE MAIN GAINS WERE THE PEOPLE WHO ENABLED TECHNOLOGY IN THEIR BUSINESSES. GETTING ON THAT TYPE OF PLAY IS WHERE WE ARE SPENDING TIME TRYING TO FIGURE OUT. YOU MENTIONED HEALTH CARE. WHICH BIOTECH COMPANIES GOING TO FIGURE THIS OUT TO DO ADVANCED DRUG DEVELOPMENT? WHAT TYPE OF INDUSTRIAL COMPANIES WILL FIGURE OUT LOGISTICS IMPROVEMENTS BASED ON AI? THOSE TYPES OF QUESTIONS ARE THE THINGS WE ARE TRYING TO ANSWER RIGHT NOW.
I THINK WE ARE SECOND OR THIRD INNING OF THIS STUFF, HARD TO GET ON BOARD WITH THE USERS, BUT YOU HAVE TO DO THE WORK RIGHT NOW. CAROLINE: COME BACK WHEN YOU HAVE DONE THE WORK. WE REALLY APPRECIATE YOUR TIME TODAY. WE HAVE SO MUCH MORE ON THE
STOCKS THAT HAVE OUTPERFORMED TESLA. MEME-LIKE STOCK SURGE. IS IT LEAVING WALL STREET A LITTLE WEARY? AS WE GO TO BREAK, LOOK AT WHAT IS HAPPENING TO INTEL. UP .5%.
REPORTS THAT THE CHIPS ACT GRANT WILL GO TOWARD FACTORY BUILDING EFFORTS OF NEARLY $8 BILLION. THIS WAS ALREADY DISCUSSED WITH THE COMMERCE DEPARTMENT. WILL IT FINALLY GET INTO THE HANDS OF INTEL? WE WILL BRING YOU MORE ON THAT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LET'S FOCUS IN ON ONE OF THE KEY DRIVERS IN THE MARKET TODAY, TESLA.
SHARES UP 31% OVER THE LAST MONTH. ALL THE SURROUNDING THE NEW ADMINISTRATION THAT IS LIKELY TO COME IN AT 2025. UBS ANALYSTS MORNING THAT THIS SURGE HAS MORE TO DO WITH MARKET EXUBERANCE. CRAIG TRUDELL HAS MORE. WE HAVE BEEN TRYING TO UNDERSTAND WHETHER THIS RELATIONSHIP, PERSONAL, BETWEEN ELON MUSK AND THE FUTURE ADMINISTRATION WILL BEAR DIVIDENDS FOR THE BUSINESS OF TESLA. YOU HAVE BEEN TRYING TO MEASURE
IT UP, SO HAS UBS. CRAIG: UBS'S REPORT IS INTERESTING TODAY BECAUSE THEY WILL GRANT THE IDEA THAT IT MAKES A LOT OF SENSE THAT YOU WOULD SEE A RUN-UP IN THE STOCK GIVEN HOW CLOSE ELON MUSK HAS PLACED HIMSELF TO DONALD TRUMP. BUT THEY REALLY PICK APART SOME OF THE REASONS COMMONLY CITED FOR THIS RUN-UP IN THE LAST FEW WEEKS. YOU TAKE A LOOK AT TAKING AWAY EV TAX CREDITS IN THE U.S., FOR EXAMPLE. MAYBE TESLA CAN HANDLE THAT BETTER THAN SOME OF ITS COMPETITORS THAT ARE NOT MAKING MONEY ON EV'S.
BUT IT IS STILL NOT A POSITIVE FOR EV DEMAND AS A WHOLE. UBS IS A BIT BEARISH ON THAT FRONT. WHEN YOU LOOK AT AUTONOMOUS VEHICLE POLICY, AS WELL, YOU DON'T HAVE AN ACTUAL ROBOTAXI AT TESLA, WHEREAS WAYMO IS OUT WITH A ROBOTAXI NOW. THAT COMPANY WAS JUST VALUED AT $45 BILLION. DOES IT MAKE SENSE TO PUT HUNDREDS OF BILLIONS OF DOLLARS ON A TESLA AUTONOMOUS VEHICLE VALUATION GIVEN ITS CLOSEST COMP , WAYMO, IS VALID MUCH LESS THAN THAT? CAROLINE: THE PROBLEM IS, THE PRICE TARGET FROM ANALYSTS THAT RATE IT IS WELL BELOW WHERE WE ARE TREATING, 224, WHEREAS THE LAST PRICE IS 354. RELATIVE STRENGTH INDEX AS OF TESLA SHOWING THAT WE ARE IN OVERBOUGHT TERRITORY, AND YET, WE DON'T SEEM TO BE ABLE TO BET AGAINST THE STOCK. CRAIG:
THAT IS ANOTHER POINT THAT UBS MAKES INTERESTINGLY TODAY. WE HAVE SEEN THIS BEFORE, THE ULTIMATE MOMENTUM STOCK. WHEN IT RISES, IT REALLY RISES. WHEN IT FALLS, IT REALLY FALLS. THAT IS SORT OF BEFITTING UP MUSK, DOESN'T DO ANYTHING HALFWAY. YOU SEE IN TERMS OF EQUITIES THAT ARE COMMONLY TRADED WITH OPTIONS, THAT REALLY LEAD TO THESE OUTSIZED MOVES. TESLA IS EXHIBIT A IN TERMS OF STOCKS THAT, BECAUSE OF THE OPTIONS ACTIVITY, YOU TEND TO SEE SUSTAINED AND REALLY DRAMATIC MOVES IN THE STOCK ONE WAY OR THE OTHER WHEN YOU HAVE A REASON FOR THE STOCK TO, NARRATIVE WISE, GO IN ONE DIRECTION OR THE NEXT. CAROLINE:
WE WILL SEE IF THE MEME TRADING CAN CONTINUE. THANK YOU. ROCKET LAUGHED SHARES SURGING AFTER THE COMPANY SAID IT SUCCESSFULLY LAUNCHED ITS 56TH ELECTRON MISSILE. WE ARE UP 3%. OTHER NARRATIVES AROUND THE BUSINESS IN TERMS OF THE CHIPS BUT FOCUS ON THIS LAUNCH. WE HAD ONE OUT OF NEW ZEALAND SWIFTLY AFTER ONE OUT OF THE UNITED STATES.
>> TWO LAUNCH IS. THE ONE IN THE UNITED STATES IS FOR THOSE CUSTOMERS THAT ROCKET LAB HAS NOT YET DISCLOSED. IN THE PAST, THEY HAVE DONE LAUNCHES FROM VIRGINIA FOR U.S. GOVERNMENT CUSTOMERS. THE LAUNCH IN NEW ZEALAND WAS FOR A FRENCH STARTUP, PART OF A MULTIPLE LAUNCH CONTRACT THAT ROCKET LAB HAS WITH THEM. ALTOGETHER THIS MAKES 14 LAUNCHES THAT ROCKET LAB HAS HAD THIS YEAR WHICH BEATS THEIR RECORD OF 10 LAST YEAR. LET'S PUT THIS INTO CONTEXT.
IMPRESSIVE FOR ROCKET LAB BUT REMEMBER THAT SPACEX HAS HAD MORE THAN 100 LAUNCHES THIS YEAR. CAROLINE: VERY MUCH AND ALSO RAN AT THE MOMENT BUT CLEARLY GARNERING SOME MOMENTUM HERE. WHAT IS INTERESTING IS THEY ARE ALSO GETTING MONEY FROM THE U.S. GOVERNMENT WHEN IT COMES TO
CHIPS. WHERE ELSE IN THE MANUFACTURING AREA ARE THEY AND WHY ARE THEY GETTING MONEY FROM THE COMMERCE DEPARTMENT? BRUCE: THIS IS THE FINAL SIGNING OF A CONTRACT FROM THE DEPARTMENT OF COMMERCE RELATED TO THE CHIPS ACT. $23.9 MILLION. THE COMPANY ANNOUNCED A PRELIMINARY DEAL FOR THIS BEFORE SO PEOPLE KNEW THIS WAS COMING. ROCKET LAB HAS A SUBSIDIARY IN NEW MEXICO THAT MAKES SOLAR CELLS, ONE OF THE ONLY COMPANIES -- I BELIEVE ONLY TWO IN THE UNITED STATES -- THAT MAKE THESE COMPONENTS. ROCKET LAB HAS NOW GOTTEN FUNDING FROM THE COMMERCE DEPARTMENT TO PROMOTE, BUILD MORE OF THOSE. JUST GETTING OUT OF THE LIFT TO THAT STOCK.
INTERESTING WHEN YOU WERE TALKING ABOUT WITH CRAIG EARLIER ABOUT OPTIMISM ABOUT POSTELECTION. ROCKET LAB IS ONE COMPANY AMONG SEVERAL SPACE COMPANIES ALSO BENEFITING FROM THIS BULLISHNESS AFTER TRUMP'S REELECTION, THAT THE NEW ADMINISTRATION WILL HAVE POLICIES FAVORABLE TO THE SECTOR. CAROLINE: ALMOST 12 MILLION-DOLLAR MARKET CAPITALIZATION, NOT QUITE UP TO THE 250 BILLION DOLLAR MARKET VALUATION FOR THE PRIVATELY HELD SPACEX AT THE MOMENT. BRUCE EINHORN, THANK YOU.
THE FRENCH GOVERNMENT IS EYEING THE AI BUSINESS AND SUPERCOMPUTERS. MEANWHILE, A LOOK AT ZOOM, CURRENTLY SEEING SHARES POPPING TODAY. WE ARE UP 7.5%. REALLY KEEPING AN EYE ON THE VIDEO COMMUNICATIONS COMPANY AT THE MOMENT. THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: THE FRENCH GOVERNMENT IS OFFERING TO BUY THE ADVANCED COMPUTING ASSETS FROM ATOS FOR AS MUCH AS 650 $3 MILLION AFTER AN EARLIER STATE EXPIRED INCLUDING THE AI BUSINESS INCLUDING IT SUPERCOMPUTERS. WHAT IS BETTER ABOUT THIS DEAL OR IS IT JUST DIFFERENT BECAUSE THIS IS ALL ABOUT TRYING TO BAIL OUT WHAT IS A COMPANY UNDER A LOT OF DURESS FROM A DEBT PERSPECTIVE? >> EXACTLY. IT IS IMPORTANT FOR ATOS AT THIS STAGE TO DIVEST HIS ACTIVITIES. THE CREDITORS TAKING A LOOK AT OTHER COMPANIES WILL LOOK AT THE LIQUIDITY OUT OF IT AND MOST IMPORTANTLY THE FRENCH STATE HAS WANTED TO ENSURE THIS TO TRAGIC ASSETS REMAIN WITHIN FRENCH CONTROL AND ARE SAFE. THESE ARE IMPORTANT ASSETS BECAUSE THE SUPERCOMPUTERS WE ARE TALKING ABOUT HAS TO DO WITH THE SIMULATIONS OF NUCLEAR ACTIVITIES FOR EXAMPLE THAT ARE VERY KEY TO FRANCE AND THE FRENCH GOVERNMENT.
THIS DEAL IS NEVER WORK, JUST ON THE SUPERCOMPUTERS PART OF ATOS. THIS LEAVES ON THE SIDE OTHER ASSETS IN CYBERSECURITY, WHAT IS CALLED MISSION-CRITICAL SYSTEMS. THESE ASSETS ARE GOING TO BE UP FOR AUCTION. OTHER FRENCH COMPANIES ARE GOING TO MAKE BIDS FOR THESE ACTIVITIES. CAROLINE: THAT IS THE KICKER HERE, THEY ALL WANT TO REMAIN IN LOCAL HANDS IN SOME WAYS.
SOME HAVE WORKED. OTHERS HAVE UNRAVELED. IS IT JUST TRYING TO FIND THE RIGHT PRICE POINT HERE? BENOIT: YES. THERE IS A BIT OF THAT, THE CREDITORS WANT A GOOD PRICE POINT FOR IT. THE FRENCH DEFENSE COMPANIES BIDDING FOR THESE ASSETS WILL CERTAINLY WANT TO HAVE A GOOD PRICE, AS WELL. WE KNOW THAT AN IMPORTANT
FRENCH DEFENSE COMPANY IS INTERESTED IN MISSION-CRITICAL ASSETS HERE. THEY COULD BE INTERESTED, THEY HAVE NOT MADE A BID YET. IT WAS PROBABLY COMPLICATED FOR THESE COMPANIES TO DO A DEAL WITH THE FRENCH STATE, SO NOW THEY HAVE DONE THE DEAL WITH SUPERCOMPUTERS AND ANOTHER DEAL COULD BE DONE. BUT YOU ARE RIGHT, WHAT IS AT
STAKE HERE IS REALLY THE STRATEGIC ASSETS AND SOVEREIGNTY OF FRENCH TECHNOLOGY THAT IS CRITICAL FOR THE CIVILIAN INDUSTRY AND ALSO FOR A LOT OF MILITARY DEALS. SO WHY THIS COMPANY HAS BEEN UNRAVELING IS REALLY THE MISTAKE OF THE SOVEREIGN ASSETS WHICH IS AT STAKE NOW. CAROLINE: BONDS TRADING AT CENTS ON THE EURO.
SIGNIFICANT PRESSURE THERE. THANK YOU VERY MUCH. FIRST UP, ONLINE VERIFICATION COMPANY ID.ME IS VIOLET AT $1.8 BILLION. INSTA 360, A CHINESE RIVAL TO GOPRO, IS CONSIDERING AN IPO IN HONG KONG AFTER PLANS FOR LISTING IN MAINLAND CHINA STALLED ACCORDING TO SOURCES. THE COMPANY COULD SEEK A VALUATION OF 2.1 BILLION DOLLARS AND A SHARE SALE. SONY IS IN THE EARLY STAGES OF DEVELOPING A PORTABLE CONSOLE THAT COULD PLAY PLAYSTATION 5 GAMES ON THE MOVE.
THEY SAY THE PRODUCT IS MEANT TO EXPAND SONY'S REACH AND GO HEAD-TO-HEAD WITH NINTENDO IN THE PORTABLE GAMING MARKET. COMING UP, COULD A NEW ADMINISTRATION MEAN AN EVEN MORE DISTINGUISHED ERA FOR CRYPTO? IT HAS BEEN ON A RUN OF LATE BUT WHAT DOES IT MEAN TO PRACTICAL CHANGES TO LEGISLATION AND INDEED A NEW CRYPTO CZAR AT THE WHITE HOUSE? WE WILL DISCUSS WITH BLOCKCHAIN ASSOCIATION'S KRISTIN SMITH. BITCOIN JUST OFF OF THEIR SESSION HIGHS. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." QUICK CHECK ON THE MARKETS, BITCOIN HAS OF COURSE BEEN ON A ROLL AFTER FLIRTING WITH A VALUATION OF $100,000 AT THE END OF LAST WEEK, PULLING BACK EVER SO SLIGHTLY NOW. I'LL BUY 1% ON THE TRADING DAY.
MORE NEWS AROUND COMPANIES BUYING IT. LET'S GET RIGHT TO IT WITH KRISTIN SMITH, WHO CAN ADDRESS THE FUTURE MORE BROADLY IN TERMS OF MORE LAWS BEING MADE, GARY GENSLER ANNOUNCED HE'S STEPPING DOWN FROM HIS SEAT IN JANUARY. WERE YOU SURPRISED BY THE NEWS THAT HE IS FRONTRUNNING THE OUSTING? >> I WAS NOT SURPRISED FOR HIM TO STEP DOWN AT THE END OF THE CONGRESS BEFORE THE INAUGURATION.
WE ARE EXCITED TO SEE HIM LEAVE. IT HAS BEEN A DIFFICULT COUPLE OF YEARS FOR THE INDUSTRY. WE FELT LIKE WE WERE BOXED IN THE CORNER THROUGH HIS REGULATION BY ENFORCEMENT APPROACH BUT WE ARE FOCUSED ON TRYING TO FIGURE OUT HOW TO MOVE FORWARD AS AN INDUSTRY AND RESET OUR RELATIONSHIP WITH GOVERNMENT. WE ARE A EXCITED TO GET NEW PEOPLE INTO THE KEY POSITIONS AND WORK WITH THE NEWLY ELECTED CONGRESS NEXT YEAR BECAUSE WE HAVE A GREAT OPPORTUNITY TO GET A REGULATORY FRAMEWORK IN PLACE THAT WILL BE A LASTING APPROPRIATE FOR THE INDUSTRY FOR DECADES TO COME.
CAROLINE: TALK TO US ABOUT THE NAMES THE SEC ARE CURRENTLY PONDERING. NAMES THAT YOU DON'T THINK WE'LL BE REGULATION BY ENFORCEMENT. >> THERE HAVE BEEN A COUPLE OF GREAT NAMES FLOATING AROUND. FROM THE STANDPOINT OF THE BLOCKCHAIN ASSOCIATION AND THE INDUSTRY, WE WANT SOMEONE IN THERE WHO HAS EXTERIOR -- EXPERIENCE WITH DEEP UNDERSTANDING OF CRYPTO.
THERE WILL BE MANY CHALLENGES THE SEC CHAIR FACES, BUT FIGURING OUT THAT REGULATORY ENVIRONMENT WILL BE ONE OF THOSE THINGS. WE DON'T CARE WHO IT IS, AS LONG AS IT IS SOMEONE WHO HAS A DEEP UNDERSTANDING OF HAVING AN OPEN DIALOGUE CAROLINE: >> IT WOULD CERTAINLY BE A WELCOME POSITION. FOR THE SEC AND CFTC, WITHOUT THOSE POSITIONS CRYPTO CZAR IS NOT GOING TO BE ABLE TO GET MUCH DONE. THIS IS SOMETHING THAT WE TOUCHED ON LAST WEEK.
IT CROSSES MANY DIFFERENT AGENCIES. WE NEED TO DEAL WITH PRUDENTIAL BANK REGULATORS AND MARKET REGULATORY ISSUES. WE NEED CONGRESS TO STEP IN AND PASS A NEW LAW. HAVING A CRYPTO CZAR POSITION AT THE WHITE HOUSE WOULD HELP FACILITATE THOSE CONVERSATIONS AND MAKE SURE WE ARE GETTING ALL THE PIECES DONE. THERE ARE A LOT OF DIFFERENT PARTS THAT NEED TO BE ADDRESSED AND THEY OCCUR ACROSS DIFFERENT AGENCIES. YES, WE WOULD WELCOME SOMEONE IN THAT ROLE, BUT NOT AT THE EXPENSE OF GETTING SOMEONE STRONG AND AT THE FTC AND CFTC.
CAROLINE: IF IT'S NOT MUTUALLY EXCLUSIVE, WHO WOULD YOU WANT TO SEE? HOW DEEP WITHIN ACTIVE DUTY WOULD YOU WANT THEM TO BE OR WOULD YOU WANT THEM TO BE A STEP REMOVED? >> THERE ARE TWO QUALIFICATIONS. YOU WANT SOMEONE WHO UNDERSTANDS THE CRYPTO INDUSTRY. IT'S NUANCED. YOU NEED SOMEONE WHO CAN NAVIGATE THE PEOPLE AND THE PERSONALITIES OF THE INDUSTRY. YOU ALSO NEED SOMEONE WHO KNOWS HOW TO NAVIGATE GOVERNMENT. IF SOMEONE SHOWS UP FROM INDUSTRY BUT DOESN'T UNDERSTAND THE NUANCES OF THE RELATIONSHIPS, IT CAN BE DIFFICULT. I THINK THAT IS GOING TO BE A TOUGH POSITION TO FIND ABOUT A LOT OF PEOPLE IN THE INDUSTRY ARE WILLING TO STEP IN AND DO THAT KIND OF ROLE. CAROLINE:
PEOPLE WHO ARE NOT DAY TO DAY WORKING IN CRYPTO, EXPLAINED TO THEM WHY THEY WOULD WANT TO SEE AN SEC CHAIR SO DEEPLY IN THE WEEDS OF UNDERSTANDING CRYPTO WHEN THE SEC ALSO HAS TO OVERSEE TRILLIONS IN PASSIVE INVESTMENT, THE IMPLICATIONS OF AI ON ETF INVESTMENT, AND ULTIMATELY WHEN CRYPTO REMAINS ABOUT THE SAME SIZE AS THE NVIDIA MARKET CAP? >> YOU NEED SOMEONE WHO CAN WALK AND CHEW GUM AT THE SAME TIME, RIGHT? IT'S STILL EARLY DAYS. THIS WILL BE THE FOUNDATION OF FINANCIAL SERVICES, OF INTERNET, OF SO MUCH GOING FORWARD. WE REALLY WANT TO GET THE REGULATORY FRAMEWORK CORRECT NOW. I THINK IT IS REALLY IMPORTANT THAT WE GET THE RULES RIGHT SO THAT CONSUMERS FEEL PROTECTED AND INSTITUTIONS FEEL COMFORT TO COME IN AND SO THAT THE DEVELOPERS, THE BUILDERS OF THE UNDERLYING BLOCKCHAIN'S AND THE APPLICATIONS ON TOP OF THE BLOCKCHAIN'S UNDERSTAND THE RULES OF THE ROAD SO THAT THEY CAN DO IT RIGHT HERE IN THE U.S. THIS WILL BE A BIG PART OF OUR ECONOMY IN THE FUTURE AND IF WE DON'T GET IT RIGHT NOW, WE WILL MISS OUT IN THE UNITED STATES.
CAROLINE: HAVE YOU BEEN ASKED TO BE THE CZAR? 9 PARDON? CAROLINE: I HAVE SPOKEN TO SOME PEOPLE -- >> I HAVE SPOKEN TO SOME PEOPLE ABOUT IT. OFFERED UP IDEAS ON QUALIFICATIONS NEEDED. CAROLINE: KRISTIN SMITH, THANK YOU FOR THE TRANSPARENCY. GREAT TO HAVE YOU ON AGAIN. GOVERNMENT VERSUS TACKETT, GOOGLE AND THE U.S. GOVERNMENT FACING OFF IN FEDERAL COURT AS EACH SIDE DELIVERS CLOSING ARGUMENTS IN THE CASE OF THEIR ALLEGED MONOPOLY OF ONLINE ADVERTISING. THE CO-CEO OF AD MARKET IS WITH
US, HE'S BEEN ADVISING THE DOJ AND ANTITRUST TEAM ON REMEDIES. THIS IS SPRAWLING. FRONT OF MINE FOR EVERYONE IS ALPHABET AND GOOGLE HAVING TO SELL OFF CHROME. MANY WOULD SAY OK, IT'S ABOUT DOMINANCE IN SEARCH. OTHERS WORRY ABOUT DOMINANCE AND ADVERTISING.
TELL US WHAT ROLE YOU HAVE PLAYED FOR THE U.S. GOVERNMENT. >> I HAVE BEEN IN SEARCH FOR 20 YEARS. WE MADE THE CLOSING ARGUMENTS BACK IN MAY. BACK THEN I WROTE A MEMO ABOUT HOW THERE COULD BE BEHAVIORAL REMEDIES TO FIX THE SEARCH AND SEARCH ADVERTISING MARKETS. DOJ SAW THE MEMOS, ASKED ME TO SPEAK WITH THEM ABOUT WHAT WE ARE DOING. YOU HAVE SEEN THAT PROPOSED FINAL JUDGMENT.
SOME OF THOSE IDEAS ARE AROUND MAKING SURE THAT GOOGLE WOULD COMPLY WITH BEHAVIORAL REMEDIES. THIS IS A $200 BILLION MARKET THAT HAS BEEN RUNNING FOR A WHILE. GETTING IT RIGHT IS DIFFICULT AND MAKING SURE THERE IS COMPLIANCE WOULD BE THE NEXT STEP. CAROLINE: YOUR BUSINESS IS IN THE WORLD OF PLACING ADVERTISING WITHOUT DEPENDING ON A FEW KEY DOMINANT FORCES. WOULD SOME OF THE THINGS BEING DISCUSSED, REMEDIES, DRAMATIC AS THEY ARE, HELPED A BENEFIT YOUR BUSINESS? >> A LOT OF FOLKS WOULD BE ABLE TO INVEST. MICROSOFT CALLED IT THE NO ZONE FOR INVESTMENT OR ABOUT 20 YEARS.
WE HAVE BEEN WORKING AROUND THE EDGES WHERE WE CAN TO HELP BROWSERS AND SHOPPING APPS CREATE NATIVE SEARCH EXPERIENCES AND WE THINK THAT IS THE FUTURE. WE OBVIOUSLY HAVE A BIT OF A HEAD START BUT THERE WILL BE ENTRANCE IN THE SPACE ON THE ADVERTISING AND SEARCH RESULTS SIDE. THAT'S THE FUTURE. CAROLINE: THAT'S THE IRONY OF THE WHOLE SITUATION. MANY FEEL THAT GOOGLE HAS NEVER BEEN UNDER QUITE SUCH A THREAT WHEN IT COMES TO GOOGLE SEARCH OR USING SAY CHATGPT OR AI OVERVIEWS WITH A GEMINI OFFERING. FROM YOUR PERSPECTIVE, SELLING OFF CHROME, COULD YOU SEE ANYONE IN THE MARKET BUYING IT APART FROM OPENAI? >> SURE. IT'S THE LARGEST BROWSER IN THE WORLD. I THINK WHAT THE DOJ PROPOSED
REMEDY SET OFF WAS THE FIRST SHOT OF BROWSER WAR 3.0. YOU WILL SEE OTHERS LIKE DUCK CHO, FIREFOX, MORE ON THE FOREFRONT. NEW BROWSERS COMING OUT BUILT AROUND GENAI. THE IDEA BEING IF WE HAVE A LOT OF ENTRY POINTS AND CAN HAVE SOME GOOGLE MONETIZATION AND RESULTS SIDE BY SIDE, IT WILL BE THE MOST INNOVATIVE EXPERIENCE FOR USERS AND SEARCHERS. EITHER YOU GET GOOGLE AND YOU HAVE TO TAKE GEMINI, OR YOU CAN USE SOMETHING ELSE OR TRY SOMETHING DIFFERENT. THE IDEA THAT WE GO TO THE SEARCH ENGINE RESULTS PAGE OF GOOGLE WITH ONE SIZE FITS ALL IS WHAT THE DETRIMENT IS TO CONSUMERS AND USERS OF WHAT WE HAVE IN PLACE CURRENTLY. CAROLINE:
THE PROBLEM IS, IT'S VERY EXPENSIVE TO BUILD INFRASTRUCTURE AROUND SEARCH OR CHROME AS ACCESS POINTS. WOULD ANYONE EVER BE ABLE TO OFFER SUCH A GREAT PRODUCT FOR CONSUMERS WITHOUT THE HUGE DEEP POCKETS LIKE A GOOGLE? >> EXACTLY. HALF OF THE CLICKS THAT THEY SELL START ON THIRD-PARTY SITES LIKE APPLE AND SAMSUNG. QUESTION IS, CAN THEY GET ACCESS TO THOSE AT RESULTS AND CURATE THEIR OWN EXPERIENCES WITH, PERHAPS, CHATGPT OR OTHER ADS OR RESULTS, CHANGING HOW THE RANKINGS WORK? THAT IS WHAT WE ARE TALKING ABOUT, ALLOWING INNOVATION TO TAKE HOLD, NOT FORCING EVERY USER TO SEARCH GOOGLE IN ORDER TO TAKE ADVANTAGE OF THEIR ASSETS. THE IDEA IS THAT IT IS BOTH, NOT EITHER/OR AND I THINK THAT'S THE REMEDY THAT GETS US INTO A MORE INNOVATIVE SPACE AND BRINGS COMPETITION TO THE MARKET, THE GOAL AT THE END OF THE DAY. CAROLINE: WE WILL BE WAITING FOR THE FINAL ROUND OF WHAT'S OFFERED. GREAT HAVING YOU HERE FOR THAT
PERSPECTIVE ON THE AD MARKETPLACE. COMING UP, MAJOR FUNDRAISING NEWS FOR HALCYON, JOHN MILLER JOINS US NEXT. CAROLINE: TODAY WE ARE TALKING ABOUT THE EXPLOSIVE GROWTH IN RANSOMWARE AND WE ARE LOOKING AT HALCION. HALCION IS LOOKING FOR ITS NEWEST ROUND OF FUNDING. HERE WITH MORE IS JOHN MILLER, CONGRATULATIONS ON YOUR RAISE TO SERIOUS SEE. WHEN YOU HAVE A ONE BILLION DOLLAR VALUATION COME UP THAT INTO CONTEXT OF HOW MUCH EACH YEAR THAT CUTS BAD ANSWER -- BAD ACTORS IN RANSOMWARE.
>> IT'S A SMALL FRACTION. WE HAVE SEEN THAT GROWTH EXPLODE OVER THE LAST FIVE YEARS. YOU KNOW, THE LOSSES THAT CORPORATIONS ARE SEEING ARE ON THE SCALE OF TENS TO HUNDREDS OF BILLIONS OF DOLLARS PER YEAR RIGHT NOW. THE SCARY THING IS WE ARE THE ONLY ACTUAL, OR AT LEAST THE FIRST ANTI-RANSOMWARE COMPANY TO EXIST, WHERE WE TOOK RANSOMWARE AS THE MISSION TO TRY TO FIGURE OUT HOW TO MITIGATE AS MUCH RISK FOR CUSTOMERS AS POSSIBLE.
>> THAT'S FASCINATING FOR VIEWERS. SUDDENLY YOU'RE OVERTAKEN, SOMEONE DEMANDING IMMEDIATE PAYMENT. WHAT IS IT ABOUT YOUR TECHNOLOGY THAT IS DIFFERENT? >> WE ARE ABOUT BREAKING THE LEVERAGE THAT THEY GET TO AND SENT SOMEONE TO PAY THEM, RIGHT? NORMALLY IT GOES DOWN INTO TWO FORMS OF EXTORTION. ONE, THEY WILL COME IN AND ENCRYPT ALL THE DATA, EFFECTIVELY BREAKING THE COMPUTERS, RIGHT? THEN THEY DEMAND EXTORTION TO GET THE DATA BACK. THEN THE DOUBLE EXTORTION AS
IT'S CALLED IS WHEN THEY STEAL DATA FROM OUTSIDE THE ENTERPRISE AND THEN CHARGE YOU TO NOT RELEASE IT. AT HALCION, WHAT WE DO IS WE HAVE FIGURED OUT HOW THEY ASK FILTRATE AND STEAL THE DATA AND WE STOP IT WHEN IT STARTS TO GET STOLEN. WHEN THEY GO TO ENCRYPT THE SYSTEMS, WE STOP THEM. IF THEY SUCCESSFULLY ENCRYPT SOMETHING, WE CAPTURE THE KEYS. CAROLINE: ANYWAY THAT YOU CAN EXPLAIN THE UNDERLYING OF WHAT YOU'RE DOING? >> IT'S ALL SUPER TECHNICAL, RIGHT? THE BEST WAY TO THINK OF IT IS LIKE A NEW TYPE OF FOCUSED ANTIVIRUS. INSTEAD OF ANTIVIRUS BEING
AGAINST ALL TYPES OF MALWARE AND SPYWARE, WE ARE JUST FOCUSED ON RANSOMWARE. BECAUSE OF THAT, EVERY DAY WE FOLLOW THE DIFFERENT GROUPS, WE TAKE APART THEIR TOOLS AND SAMPLES. WE ARE COMPLETELY FOCUSED ON THIS THREAT AND IT IS GIVING US INCREASED EFFICACY OVER EVERYONE ELSE TRYING TO DO, LIKE, GENERAL SECURITY FOR EVERYTHING. OUR THEORY WAS THAT RANSOMWARE HAD BECOME SUCH A BIG PROBLEM, BY FOCUSING ON IT ALONE YOU WOULD GET HIGHER EFFICACY AND THE ABILITY TO MITIGATE MORE RISK THAN THE GENERALIZED SOLUTIONS THAT EXIST. CAROLINE:
WE HAD THE PALO ALTO NETWORKS CEO ON LAST WEEK AND HE SAID THERE WAS A SHIFT BETWEEN PLATFORMS AND LOADS OF VENDORS BUT A ONE STOP SHOP TO PROTECT THEM. WOULD YOU END UP FOLDING IN YOUR OFFERINGS TO OTHER CYBER PLAYERS OUT THERE? WHAT'S THE END GOAL NOW THAT YOU HAVE RAISED A GOOD CHUNK OF CHANGE? >> WE INTEGRATE WITH ALL OF THOSE PLAYERS. PALO ALTO, CISCO, DELL. WE ARE KIND OF OUR OWN
PLATFORM, RIGHT? WE ARE BUILDING OURSELVES TO NOT JUST HAVE A FEATURE THAT GETS INTEGRATED INTO SOMETHING BIGGER, BUT A PLATFORM SPECIFICALLY AROUND MITIGATING THE RISK OF THESE THREATS, RIGHT? AS THESE ATTACKERS CONTINUE TO GET MORE MONEY AND TO BE MORE SUCCESSFUL, IT JUST GIVES THEM BETTER ACCESS. THEY GET MORE TOOLS. THERE ARE MORE OF THEM. IT'S OBVIOUS, WE ARE STARTING TO LOSE THE WAR AGAINST THESE ATTACKERS. BY COMING IN, WE WILL USE THIS MONEY TO TRY TO BRING AS MUCH VALUE AS WE CAN TO OUR CUSTOMERS AROUND STOPPING THESE ATTACKS. CAROLINE: THANK YOU THERE, FROM HALCYON. COMING UP, WHAT IS AMAZON DOING TO TAKE ON NVIDIA IN THE AI HARDWARE SPACE AND WHY IT MEANS YOU HAVE TO BE GOOD AT THE SOFTWARE SIDE, TOO.
THIS IS "BLOOMBERG TECHNOLOGY." NEW YORK TIME, 10:00 A.M. SAN FRANCISCO. THIS IS BLOOMBERG. AMAZON IS GETTING READY TO GO TOE TO TOE WITH NVIDIA IN THE AI HARDWARE SPACE, THOUGH NOT ANYTIME SOON AS THEY ARE HOPING TO REDUCE RELIANCE ON THE CHIPMAKER. THAT QUOTE COMES FROM A VERY KEY EXECUTIVE WITHIN AMAZON WHO IS TRYING TO TAKE ON NVIDIA IN THE TRAINING AND INFERENCE SPACE. TELL US ABOUT IT.
>> THAT WAS JAMES HAMILTON, THE GODFATHER OF AMAZON WEDS -- WEB SERVICES HARDWARE STRATEGY. WE ARE SEEING THE FRUITS OF MAKING CHIPS NOW. THEY ARE NOT -- WERE NOT EXPECTING THE AI BOOM TO UNFOLD BUT NOW THEY ARE ON THEIR THIRD GENERATION AI SHIP. CAROLINE: WHY IS IT SO IMPORTANT AND WHY HAVE THEY GONE ALL OUT IN HANDING $4 BILLION TO GET AN THROBBING TO USE THESE CHIPS? >> THIRD GENERATION IS THE PROVE IT POINT. FIRST, EXPERIMENT. SECOND, CATCHES ON. THIRD IF YOU DID IT RIGHT GET TO THE VOLUME IN THE SUCCESS.
OTHERWISE, YOU GO A DIFFERENT DIRECTION. THIS EXPLAINS WHY THEY ARE DOING ALL THAT MONEY INTO THOSE PARTNERS THAT WILL HELP THEM TO USE CHIPS AND IMPROVE THEIR BETTER MOUSETRAP TO COMPETE MORE EFFECTIVELY. CAROLINE: NVIDIA IS DOWN A LOT TODAY.
3%, BIG MOVE IN TERMS OF MARKET -- MARKET CAP. AT WHAT POINT WOULD WE SEE LESS DEPENDENCE ON NVIDIA FROM AMAZON? THEY NO LONGER HAVE TO BUY THEM AT ALL OR THE DO THEY SUPPLEMENT AND ARE NOT QUITE SO DEPENDENT? >> SUPPLEMENT. AMAZON IS SOBER ABOUT THAT. THEY ARE NOT TRYING TO REMOVE ALL OF THE NVIDIA FROM THEIR DATA CENTERS. THAT WOULD BE A MIRACLE.
THE GOAL WOULD BE CREATING A CREDIBLE RIVAL AND FOR THE CUSTOMERS THAT WANT TO USE IT, IT'S STILL AROUND, BUT THEY HAVE A COMPETITIVE OFFERING AS WELL. CAROLINE: ALPHABET HAS BEEN AT THIS A LONG TIME. MICROSOFT, JUST GETTING IN? >> GOOGLE HAS BEEN DOING THIS FOR ABOUT A DECADE.
MICROSOFT IS JUST NOW ROLLING OUT ITS FIRST CHIPS. SEEMS LIKE EVERYONE CAME TO THE FIRST SAME REALIZATION. CAROLINE: IT'S A GREAT PIECE, MATT. GO READ IT, EXCELLENT DEEP DIVE. PLENTY MORE NEWS ON AMAZON, COMING OUT ON FRIDAY THAT THEY ARE REALLY TRYING TO HELP CLIENTS UNDERSTAND QUANTUM COMPUTING, THE NEXT ITERATION OF MACHINE LEARNING. BOY, IS IT HELPING SOME COMP --
QUANTUM COMPUTING SOCKS. LOOK AT THIS, WE ARE CURRENTLY SEEING RIGHETTI UP 21% AND AMAZON OFFERS ADVISORY HELP ON THE FUTURE OF WHERE HARDWARE GOES WHEN IT COMES TO USING QUANTUM FOR CLIENTS. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DON'T FORGET TO CHECK OUT OUR PODCAST ON THE TERMINAL, SPOTIFY, AND I HEART. THIS IS "BLOOMBERG TECHNOLOGY."
2024-11-26 20:22
