Markets Prepare for Nvidia GTC, New FTC Chair on Trump | Bloomberg Technology
>> FROM THE HEART OF OR INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH AIRLINE -- CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK, I AM CAROLINE HYDE. >> THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: ALL EYES ON NVIDIA IS THE -- WE DISCUSS WHAT INVESTORS INSPECT.
-- EXPECT. PLUS, THE FTC AND HOW IT IS PRIORITIZING BIG TECH. TWO NASA ASTRONAUTS WILL SOON RETURN TO EARTH AFTER MORE THAN NINE MONTHS STUCK IN SPACE. FIRST WE RETURN TO THIS AREA OF
THE WORLD AND CHECK IN ON THE MARKETS. WE ARE FLIP-FLOPPING BETWEEN GAINS AND LOSSES BUT ULTIMATELY UNDERWATER AFTER A STEADILY -- STELLAR RALLY FRIDAY. YOU HAVE TESLA, APPLE, GOOGLE, BUT NVIDIA AS WELL. THE BIGGEST POINTS DRIVE ON THE DAY, DRAGGING THE NASDAQ 100 LOWER, AS WE SEE NVIDIA SEEING A LITTLE CAUTIOUS TRADING AHEAD OF THE ALL-IMPORTANT DTC EVENT THIS WEEK. WHAT CAN JENSEN HUANG ARTICULATE TO STEADY NERVES? TIM: NVIDIA SHARES ARE LOWER. INVESTORS ARE FOCUSED ON THE KEYNOTE SET TO BE DELIVERED TOMORROW. GOOD TO SEE YOU.
WHAT DOES HE NEED TO DO TOMORROW? WHAT DOES HE NEED TO TELL INVESTORS TO SHOW EARNINGS HAVE NOT PEAKED AND GROWTH HAS NOT PEAKED? >> THOSE ARE THE KEY THINGS. INVESTORS ARE LOOKING FOR DEMAND TO GOOD. AND THAT NVIDIA SEES GROWTH AHEAD, THAT THEY ARE STILL AT THE FOREFRONT OF THE AI TRADE, THAT THEY ARE SEEING THINGS THAT ARE GOOD, THAT THERE IS GROWTH IN THE FUTURE. >> WHAT MORE CAN HE SAY THAT HE DID NOT GET ACROSS IN HIS EARNINGS? HE TRIED TO TALK ABOUT THAT FUTURE BUT DID NOT REGARD NINE THE TREND HIGHER.
>> INVESTORS ARE LOOKING FOR MORE INFORMATION ON THE MACRO LEVEL. THEY WILL POTENTIALLY LOOK FOR ANYTHING THAT CAN BE SAID ABOUT CHINA AND IMPACT THERE AND I THINK THERE ARE THINGS OUTSIDE OF JUST CHIPS THAT INVESTORS MIGHT BE LOOKING FOR. HEARING HIM SPEAK ABOUT THINGS LIKE ROBOTICS AND AUTONOMOUS DRIVING AND OTHER PARTS OF THE OVERALL MARKET WHERE NVIDIA CHIPS COULD BE USED, HEALTH CARE, THERE ARE SO MANY INSTANCES IN WHICH AI COULD BENEFIT DIFFERENT SECTORS AND COMPANIES, SO I THINK THAT FUTURE VIEW IS SOMETHING PEOPLE ARE LOOKING FOR AND WE MIGHT GET MORE INFORMATION ON GROWTH MARGINS. THAT IS SOMETHING THAT WAS TOP OF MIND FOR INVESTORS COMING OFF OF EARNINGS, SO ANY CLARITY OR OPTIMISM THAT HE COULD GIVE MAY LIFT THE STOCK. CAROLINE: THANK YOU. CAN HE MITIGATE THE VALUATION? LET'S TALK ABOUT THE VALUATION. WE TRIED TO TAKE STOCK ON THE
SELLOFF THAT HAS ALREADY OCCURRED. WE HAVE SEEN TUMBLING 10% SO FAR THIS YEAR, BUT WE ARE TRADING AT 26 TIMES FUTURE EARNINGS. ARE THESE VALUATIONS MORE ATTRACTIVE YET? >> WE ARE STARTING TO SEE VALUATIONS FOR CERTAIN STOCKS ARE MORE ATTRACTIVE. NVIDIA IS TRADING CHEAPER THAN WHERE IT HAS BEEN THE LAST COUPLE YEARS AND CHEAPER THAN OTHER PARTS OF THE MARKET WHILE GROWING FASTER. THERE ARE SOME AREAS OF THE MARKET THAT HAVE SOLD OFF QUITE A BIT OVER THE LAST COUPLE WEEKS SO WE THINK THE VALUATION IS STILL ATTRACTIVE. TIM:
FRIDAY'S MOVE NOTWITHSTANDING, WE ARE DOWN FROM ALL-TIME HIGHS SET EARLY THIS YEAR. DO YOU THINK THIS IS THE END OF THE PULLBACK OR IS THERE A MOVE LOWER? >> I THINK WE ARE GETTING CLOSE TO THE END OF THE PULLBACK IN THE SHORT-TERM. WE MIGHT SEE A BOUNCE IN THE MARKET, BUT TO SEE LONGER-TERM SUSTAINABILITY WE NEED TO SEE RESOLUTION OF POLICY UNCERTAINTY. CAROLINE: MANY ARE WONDERING WHEN WE MIGHT GET THAT. CERTAINTY DOES NOT SEEM TO BE BOTHERING THE ADMINISTRATION IN TERMS OF GIVING THAT TO THE MARKETS. WHAT DOES A LONG-TERM INVESTOR DECIDE WHEN IT COMES TO CHINA? AND WHETHER YOU WANT GLOBALLY FOCUSED STOCKS OR U.S.
FOCUSED STOCKS? >> I THINK YOU NEED TO FOCUS ON THE FUNDAMENTALS OF NAMES AND OPPORTUNITIES FOR STOCKS IN THE U.S. AND OUTSIDE OF THE U.S.. THERE IS MORE ENTHUSIASM BUT WE NEED TO FOCUS ON THE FUNDAMENTALS. EVEN WITH POLICY UNCERTAINTY. AND LOOK THROUGH SOME OF THIS. >> FUNDAMENTALS MANY WOULD SAY HAVE NOT CHANGED DESPITE NEVER ENDING SELLOFF. FROM YOUR PERSPECTIVE, HAS IT BEEN -- WHAT FUNDAMENTALS DO YOU TRY AND FOCUS IN ON? >> I THINK COMPANIES ARE SEEING A CHANGE IN FUNDAMENTALS IF WE SEE TARIFFS ENACTED. A LOT OF COMPANIES ARE KIND OF WAITING TO SEE WHAT POLICIES WILL BE AND HOW THIS MIGHT IMPACT COSTS FOR THE YEAR SO I THINK THERE IS A LOT OF WAITING AND SEEING IN TERMS OF COMPANIES DECIDING HOW TO DEPLOY BUDGETS FOR THE YEAR. BUT I THINK FOR THE MOST PART
FUNDAMENTALS HAVE NOT CHANGED. WHAT COULD -- COULD CAUSE A CHANGE IS IF WE SEE A LONG, DRAWN OUT PERIOD OF POLICY UNCERTAINTY THAT LEADS TO LOWER CONSUMER AND CORPORATE SPENDING WHICH IMPACTS ECONOMIC GROWTH. TIM: LET'S TALK ABOUT THAT BECAUSE THIS ADMINISTRATION DOES NOT SEEM BOTHERED ABOUT SELLOFFS.
PRESIDENT TRUMP SAID AS MUCH. ARE YOU CONFIDENT THE ADMINISTRATION CAN IMPLEMENT PROGROWTH POLICIES IT KEEPS TALKING ABOUT? IT IS SAYING WHEN WE GET COMPANIES TO START MAKING STUFF IN THE U.S. EVERYTHING WILL BE FINE. >> I THINK WE SEE POLICIES THAT ARE POTENTIALLY PROGROWTH AND BALANCING OTHER POLICIES LIKE HIGHER TARIFFS THAT MIGHT IMPACT PRICING INFLATION AND CONSUMER SPENDING, BUT I THINK IT COMES DOWN TO UNCERTAINTY AROUND TARIFFS AND POLICIES. IF WE CAN GET SOME CERTAINTY, I THINK WE SEE A RESUMPTION OF CONSUMER AND CORPORATE SPENDING AND COMPANIES HAVE PLANS ON HOW THEY WOULD OFFSET TARIFFS, WHICH MIGHT IMPACT SOME CONSUMER PRICING BUT OVERALL I THINK THE CONSUMER IS STILL STRONG SO I THINK IT COMES DOWN TO UNCERTAINTY, WHICH IS CAUSING CONSUMERS TO BE ON HOLD FOR THE MOMENT.
>> SO FOR WHAT THE FEDERAL RESERVE WILL DO THIS WEEK, THE POLICY MEETING IS KICKING OFF TOMORROW. WHAT IS THE NEEDLE THAT HE HAS TO THREAD IN PROVIDING OUTLOOK AND COMMUNICATING FOR THE REMAINDER OF THE YEAR WHAT FED POLICY LOOKS LIKE? >> THERE IS A CHANCE WE SEE SOME CHANGES TO FED POLICY, BUT RIGHT NOW THERE ARE INDICATORS THAT THE ECONOMY IS STILL STRONG AND THAT INFLATION IS COMING DOWN BUT IS NOT YET TOTALLY TAMED, SO HE HAS TO WALK A FINE LINE BETWEEN ACKNOWLEDGING WE ARE SEEING SIGNS OF THINGS LIKE HIGHER AND EMPLOYMENT RATES AND LOWER CONSUMER SPENDING BUT OVERALL THE KEY INDICATORS ARE STILL NOT INDICATING THAT IT IS TIME FOR THEM TO MOVE IN TERMS OF POLICY YET. CAROLINE: IN NOVEMBER OF LAST YEAR, WHEN WE KNEW THE ADMINISTRATION WAS GOING TO BE NEW, YOU ARTICULATING THE PRESSURE POINT FOR TECH BUT ALSO REGULATORY STATUS. HOW DO YOU THINK THE ADMINISTRATION FEELS ABOUT TECH AND ANTITRUST? >> IT IS UNCLEAR. WE HAVE NOT SEEN A LOT OF REGULATORY CHANGES FROM THIS ADMINISTRATION.
ONE THING WE HAVE HEARD FROM THEM IS IN TERMS OF THINGS LIKE M&A THEY WANT TO MAKE THE PROCESS SMOOTHER FOR COMPANIES SO THAT MAY NOT BE HELPFUL FOR BIG TECH NAMES, WHICH MAY BE UNDER SCRUTINY STILL. I THINK THEY ARE TRYING TO BE MORE FAVORABLE OR HELPFUL FOR COMPANIES THAT ARE LOOKING TO DO CORPORATE ACTION BY AT LEAST SPEEDING UP THE PROCESS. TIM: TIFFANY WADE JOINING US ON SET. CHINA'S INTERNET SEARCH LEADER RELEASED NAI MODEL THAT ARTICULATES REASONING IN AN APPARENT BID TO REGAIN MOMENTUM AGAINST RIVALS. THE COMPANY SAYS THE NEW MODEL EXCELS IN AREAS LIKE DAILY DIALOGUES AND LOGICAL DEDUCTION. CAROLINE: COMING UP, OUR CONVERSATION WITH THE FTC CHAIRMAN.
THIS IS BLOOMBERG TECHNOLOGY. >> THE>> FTC IS NOT TAKING HIS FOOT OFF THE GAS WHEN IT COMES TO ENFORCEMENT ACTION. THAT IS ACCORDING TO THE CHAIRMAN TO DISCUSS THE FTC MISSION UNDER THE SECOND TRUMP ADMINISTRATION AND HOW HE WILL APPROACH DEALING WITH BIG TECH. >> I THINK IF YOU ARE A BIG COMPANY YOU SHOULD BE GETTING YOUR LAWYERS TO GIVE YOU GREAT ADVICE ON COMPLYING WITH OUR COMPETITION AND CONSUMER PROTECTION LAWS.
I DO NOT HAVE A PARTICULAR AX TO GRIND IN THE INDUSTRY, BUT I THINK IT IS IMPORTANT THAT THE FTC DEVOTE RESOURCES TO THE MARKETS AMERICANS MOST FREQUENTLY ENGAGE WITH. IT IS NOT JUST BIG TECH THOUGH THAT IS ONE OF THEM. IT IS ALSO HEALTH CARE, BUT NO MATTER WHO YOU ARE I THINK IT IS IMPORTANT TO PROCEED LIKE THE FTC IS A VIGILANT COP ON THE BEAT, SURVEYING THE MARKETS, LOOKING FOR COMPETITION PROBLEMS AND VIOLATION OF CONSUMER PROTECTION LAWS. IF WE THINK THEY ARE THERE, WE ARE GOING TO GO TO COURT. IF WE DO NOT THINK THERE ARE PROBLEMS IT IS IMPORTANT FOR THE FTC TO GET OUT OF THE WAY. ONE OF THE MOST CONSISTENT COMPLAINTS I HAVE HEARD ABOUT THE PREVIOUS ADMINISTRATION WAS LACK OF CERTAINTY AND TENDENCY TO WANT TO DO REGULATING.
THE FTC -- WE ARE NOT REGULATORS. WE POLICE FOR COMPETITION AND CONSUMER PROTECTION PROBLEMS BUT WE ARE NOT TRYING TO REGULATE THE ECONOMY. WE WANT TO CREATE ECONOMIC CONDITIONS THAT ALLOW COMPANIES TO INNOVATE AND GROW AND HELP LIFT THE COUNTRY OUT OF THE DEBT CRISIS AND BRING ABOUT THE GOLDEN AGE THAT PRESIDENT TRUMP HAS PROMISED THE AMERICAN PEOPLE. >> TALK ABOUT STRIKING THAT BALANCE. MANY WOULD SAY EUROPE REGULATE TOO MUCH, BUT IN MANY WAYS THEY ARE BEING A STRICT COP ON THE BEACH, SO FROM YOUR PERSPECTIVE ARE YOU SEEING OVERREGULATION IN EUROPE AND IS THERE WORRY ABOUT STIFLING INNOVATION IN THE UNITED STATES BY THE AMOUNT OF FOCUS YOU HAVE ON BIG TECH? >> I DO THINK EUROPE HAS A REGULATORY PROBLEM AND INNOVATION PROBLEM AND WE DO NOT WANT TO CREATE CONDITIONS HERE IN UNITED STATES THAT SUPPRESS INNOVATION BUT IT IS IMPORTANT TO BEAR IN MIND MONOPOLY SUPPRESSES INNOVATION.
MONOPOLY MAKES IT DIFFICULT FOR LITTLE COMPANIES WITH THE NEXT GREAT IDEA TO RISE AND I THINK IT IS IMPORTANT IF WE WANT TO PRESERVE THE AMERICAN INNOVATIVE SPIRIT THAT WE CREATE CONDITIONS IN OUR ECONOMY THAT ALLOW LITTLE TECH WHO HAVE THE NEXT GREAT IDEAS, THE NEXT LIFE CHANGING IDEAS FOR ALL AMERICANS, TO THRIVE. PRESIDENT TRUMP HAS BEEN EMPHATIC ON THE IMPORTANCE OF MAKING SURE OUR ECONOMIC SYSTEM ALLOWS LITTLE TECH TO BRING IDEAS TO MARKET AND THAT IS WHAT ANTITRUST DOES. IT PREVENTS MONOPOLY AND MONOPOLY STIFLES INNOVATION. IF ANTITRUST COPS ARE VIGILANT IN MAKING SURE THEY ARE PROTECTING US FROM COMPETITION PROBLEMS, IT ALLOWS INNOVATION THAT HAS MADE AMERICA AND OUR ECONOMY THE DRIVING ENGINE OF THE WORLD. CAROLINE: WHAT DEALS DO YOU THINK CAN GET DONE? IS THERE ANY PRESCRIPTION YOU CAN GIVE AS TO THIS M&A WILL LOOK GOOD? >> THE DEALS THAT CAN GET DONE ARE THE DEALS THAT ARE LAWFUL AND THE MOST IMPORTANT THING TO TAKE AWAY FROM THIS IS I SEE IT AS MY JOB TO SCRUTINIZE DEALS CONSISTENTLY WITH THE TIMELINE CONGRESS CREATED IN OUR ANTITRUST LAWS. IF WE THINK THEY ARE ILLEGAL AND WE CAN WIN IN COURT, WE ARE GOING TO GO TO COURT. IF WE DO NOT THINK THEY ARE
ILLEGAL OR WE CAN WIN IN COURT, THE FTC WILL GET OUT OF THE WAY. I HAVE FOR THIS COMPLAINT A LOT FROM THE BUSINESS COMMUNITY, THAT IN THE PREVIOUS ADMINISTRATION A DEAL WOULD DISAPPEAR AND IT COULD DISAPPEAR FOR MONTHS WHILE NOVEL IDEAS WERE FLOATED AND DIFFERENT THEORIES, AND SOMETIMES IT SEEMED LIKE THE FTC WAS HOPING DEALS WITH DYING ON THE VINE WHILE THEY WAITED FOR REGULATORY CLEARANCE. I WANT NOTHING TO DO WITH THAT. IF A DEAL IS ILLEGAL AND WE CAN GO TO COURT, WE WILL GO TO COURT. IF NOT, WE WILL LET DEALS GO FORWARD. M&A IS PART OF HOW THE ECONOMY GROWS. IT IS PART OF FOSTERING A
SYSTEM THAT ALLOWS INNOVATION, BUT WE HAVE TO MAKE SURE WE DO NOT CREATE MONOPOLY AND I SEE THAT AS MY JOB. IF WE THINK THERE IS A MONOPOLY PROBLEM, THE GOVERNMENT WILL INTERVENE. IF NOT, WE HAVE TO GET OUT OF THE WAY. CAROLINE: DOES THE AI SPACE LOOK LIKE IT IS THRIVING OR DO YOU WORRY ABOUT MONOPOLISTIC BEHAVIOR? >> IT IS IMPORTANT THAT WE PROTECT COMPETITION IN THE AI SPACE AND THAT THE GOVERNMENT NOT RACE TO REGULATE AI. THE SPEECH IN EUROPE ON AI IS ABOUT THE PERFECT WAY TO THREAD THIS NEEDLE. WE HAVE TO ENSURE COMPETITION BECAUSE COMPETITION PROMOTES INNOVATION, BUT WE CANNOT HAVE THE GOVERNMENT COME IN WITH A HEAVY REGULATORY HAND AND STIFLE INNOVATION. WE DO NOT WANT MONOPOLY
STIFLING INNOVATION. WE DO NOT WANT BIG GOVERNMENT STIFLING INNOVATION AND THAT IS NOT AN EASY NEEDLE TO THREAD BUT THAT IS HOW I THINK ABOUT IT. PROTECT COMPETITION BUT DO NOT OVER REGULATE AI BECAUSE THAT IS HOW WE WILL KILL INNOVATIVE PROSPECTS OF AI. >> YOU STARTED BY TALKING ABOUT THE CLOSE LOOK YOU ARE GOING TO TAKE ON EVERY ENFORCEMENT ACTION.
THAT ASSESSMENT TAKES A LOT OF LABOR. YOU HAVE SAID YOU HAVE THE RESOURCES. I KNOW EVERYONE HAS BEEN ASKING ABOUT WHAT THIS LAWYER SAID IN COURT LAST WEEK REGARDING THE AMAZON PRIME DEAL AND YOU HAVE BEEN SAYING HE WAS WRONG AND THEY CAME OUT AT SAID WE HAD ENOUGH RESOURCES EVEN THOUGH HE SAID THERE IS A RESOURCE SHORTFALL IN TERMS OF MONEY AND PERSONNEL AT THE FTC.
HAVE YOU GOT THE RIGHT AMOUNT OF PEOPLE AND HOW ARE YOU LIVING UP TO DOGE'S NECESSITIES TO SLIM DOWN? >> I DID NOT SAY THE LAWYER WAS WRONG. THE LAWYER SAID THE LAWYER WAS WRONG. HE EXPLAINED WE DO NOT HAVE THE RESOURCE CONSTRAINTS HE THOUGHT. I HAVE SAID FROM DAY ONE WE HAVE RESOURCES TO LITIGATE CASES. THAT REMAINS TRUE, BUT I WANT TO BE CLEAR I THINK THE PRESIDENT'S EFFICIENCY AGENDA IS ONE OF THE MOST IMPORTANT THINGS IN GOVERNMENT RIGHT NOW. GOVERNMENT SHOULD NOT BE LARGER THAN NECESSARY TO DELIVER SERVICES AND PROTECTIONS THE AMERICAN PEOPLE DESERVE.
IF THE FTC WERE A LEAN OPERATION -- WE DELIVER A LOT OF VALUE FOR THE AMERICAN PEOPLE, BUT WE HAVE GOT THE RESOURCES WE NEED TO DELIVER ON OUR COMPETITION MANDATE, OUR CONSUMER PROTECTION MANDATE, BUT WE ARE ALWAYS LOOKING TO BE AS EFFICIENT AS POSSIBLE. TIM: THERE YOU HAVE IT, THE FTC CHAIRMAN IN HIS INTERVIEW WITH CAROLINE. IN WASHINGTON TO BREAK IT DOWN WITH MIKE SHEPPARD. WHAT ARE INVESTORS LEARNING ABOUT ANY DAYLIGHT BETWEEN LINA KHAN AND ANDREW FERGUSON RUN FTC'S? >> ONE OF THE DIFFERENCES THEY BECAME CLEAR AS THE SPEED WITH WHICH HE IS PROMISING TO MOVE AND DECISIVENESS HE SAID HE WILL TRY TO BRING. HE FAULTED THE PRIOR
ADMINISTRATION AND THE PRIOR CHAIR OF THE FTC FOR PERHAPS MOVING TOO SLOWLY AND DECIDING ON SOME OF THESE ENFORCEMENT ACTIONS AND WHETHER TO INTERVENE TO BLOCK A DEAL. SOMETIMES COMPANIES WILL BE LEFT HANGING, UNCERTAIN WHETHER THEIR PROPOSALS WOULD ACTUALLY WIN THE COMMISSION BLESSING. HE SAYS WE WILL TRY TO GIVE A THUMBS UP OR THUMBS DOWN MORE QUICKLY AND MORE DECISIVELY SO THERE IS UNCERTAINTY REMOVED FROM THE EQUATION. HE MADE CLEAR THAT WE ARE GOING TO PROCEED WITH A NUMBER OF ENFORCEMENT CASES AGAINST BIG TECH. LITTLE TECH IS RESPONSIBLE FOR A LOT OF INNOVATION WE SEE IN THE ECONOMY AND COMPETITION CASES THAT ARE NOW HITTING THEIR STRIDE AGAINST GOOGLE, THAT ARE IN COURT NOW, THOSE WERE BROUGHT DURING DONALD TRUMP'S FIRST ADMINISTRATION AND HE WARNED LAWYERS FOR SOME BIG TECH COMPANIES SHOULD BE READY TO MAKE SURE THEY ARE COMPLYING WITH COMPETITION LAW.
>> SOME CONCERN HAS BEEN AROUND ARTIFICIAL INTELLIGENCE. IN NEW YORK, IT LOOKS AS THOUGH THE GOVERNOR WANTS TO CROSS THE DIVIDE AND WORK WITH THE ADMINISTRATION WHEN IT COMES TO AI. TALK US THROUGH WHAT WE ARE STARTING TO SEE ON A BIPARTISAN NATURE.
>> IT WAS INTERESTING TO SEE HER WAY IN SO QUICKLY WITH THE VISION FOR HOW THE AI PLAN BEING PULLED TOGETHER BY DONALD TRUMP'S AI AT THE WHITE HOUSE WITH A JUNE DEADLINE TO PULL THIS NEW VISION OF AI POLICY TOGETHER. SHE IS THE FIRST GOVERNOR TO PUT IN A STATE VISION FOR HOW A PLAN SHOULD COME TOGETHER. SHE CALLED FOR A COUPLE THINGS, ENCOURAGING ADOPTION OF AI ACROSS THE BOARD MORE WIDELY IN INDUSTRIES AND DO MORE TO REVISE INTELLECTUAL PROPERTY PROTECTION LAWS SO THERE IS LESS UNCERTAINTY SURROUNDING DATA THAT THESE LARGE LINK WHICH MODELS NEED TO BE ABLE TO RUN AND WORK AND TRAIN. THREE, THE ENERGY QUESTION. THIS IS ONE WE HAVE TALKED ABOUT.
THEY ARE EVEN TALKING ABOUT NUCLEAR ENERGY AND THERE IS A LOT AT STAKE BECAUSE MICRON IS BUILDING BIG FACTORIES AND THEY WANT TO MAKE SURE THAT NEW YORK IS GETTING A PIECE OF THE ACTION. CAROLINE: THANK YOU. COMING UP, CLAR NOW -- KLARNA FILES FOR AN IPO. CAROLINE: KLARNA ANNOUNCING IT WILL BE PARTNERING WITH WALMART TO OFFER BY NOW, PAY LATER TOMORROW U.S. SHOPPERS, PLACING THE FIRM AS THE RETAIL GIANT FAST CREDIT OPTION. TODAY NEWS COMING THIS IS AN UPENDING OF THE RELATIONSHIP. >> IS A BIG CHANGE AND AFFIRM ANNOUNCED WALMART ACCOUNTS FOR 5% OF ITS GROSS MERCHANDISE VOLUME AND 2% OF ADJUSTED OPERATING INCOME, SO PRETTY SIZABLE, NOT THE SIZE OF AMAZON BUT OBVIOUSLY A BIG MOVE AND ANNOUNCING THIS RIGHT AFTER YOU FILE FOR YOUR IPO PUBLICLY IS KIND OF BIG NEWS. TIM:
WHAT TOOK KLARNA SO LONG? THIS IS A COMPANY ALMOST AS OLD AS FACEBOOK. >> TRYING TO GET IT RIGHT. THIS IS A COMPANY THAT AT ONE POINT WAS VALUED -- SOFTBANK RAMPING UP ITS VALUATION. MORE RECENTLY, PRIVATE VALUATION AROUND $14.6 BILLION, SO TRYING TO RIGHT SIZE THE OPERATIONS AND GROW BACK INTO THE VALUATION. THIS IS A STOCK UP 32%.
JUST LAST MONTH, IT WAS NORTH OF 80%, SO A LOT OF VOLATILITY. AS MUCH AS THE TEAM WILL WANT TO PITCH YOU UNDER FOR OFFERINGS AND DIVERSIFICATION, THE BUY SIDE IS GOING TO THE PARENT COMPANY, WHO IS STILL WELL BELOW THE PEAK IT HIT IN 2021 WHEN IT TRADED FOR $169 A SHARE. CAROLINE: SWEDISH FOUNDERS COMING TO THE U.S.. ANYTHING WORRYING IN THE IPO LISTING? >> NOT REALLY. THEY HAVE THREE CLASSES OF
STOCK SO WE ARE TRYING TO GET BETTER UNDERSTANDING OF WHAT THAT COULD LOOK LIKE AND HOW THAT WILL IMPACT THE PATH FORWARD BUT THE TYPICAL RED FLAGS WERE WHAT YOU WOULD EXPECT. >> THANKS SO MUCH. COMING UP NEXT, A NEW PARTNERSHIP AIMS TO BRING FLYING TAXIS TO BRITISH SKIES. THIS IS BLOOMBERG. ♪ TIM: I AM TIM STENOVEC IN SAN FRANCISCO. CAROLINE: THE NASDAQ 100 CURRENTLY UP BY ABOUT .1%. WE HAVE RETAIL SALES THAT WERE
NOT GREAT AND WE ARE STILL TRYING TO WORK OUT AFTER FRIDAY'S PUSH HIGHER, CAN WE SUSTAIN ANY KIND OF BUILT IN RISK ON ATTITUDE? NVIDIA IS LOWER, BUT SO IS TESLA , OFF BY 40%. PRICE TARGETS SLASHED FOR THIS COMPANY, RECONFIRMING CONCERNS ACROSS U.S. SALES AND A LONG-TERM AI VISION NOT BEING TIMED TO THE HERE AND NOW OF HOW MANY CARS ARE GOING TO BE SOLD UNDER ELON MUSK. BYD IS UP 2%. THEY SAY THEY WILL HAVE EV CHARGING AT JUST FIVE MINUTES.
THAT WOULD BE A BIG GAME CHANGER, BUT WE ARE SEEING AGAIN BYD UP HERE TO DATE ON ITS OVERALL U.S. DEPOSITORY RECEIPTS WHEREAS TESLA IS UP BY 40%. TIM: FIVE-MINUTE CHARGING IS ALMOST AS CONVENIENT AS A GAS STATION. TWO NASA ASTRONAUTS WILL SOON RETURN TO EARTH AFTER THE SPACEX DRAGON CAPSULE DOCKED WITH THE INTERNATIONAL SPACE STATION. THE OVER NINE MONTHS IN SPACE FOLLOWING A SERIES OF UNEXPECTED EVENTS AND TACTICAL ISSUES WITH THE ORIGINAL SPACECRAFT.
THIS IS AS MUCH ABOUT SPACEX AS BOEING AND THE STARLINER CAPSULE. WHAT DOES THIS MEAN FOR BOEING MOVING FORWARD? >> THERE ARE A LOT OF QUESTIONS ABOUT BOEING'S SPACE PROGRAM FOLLOWING WHAT HAS HAPPENED HERE, SO OF COURSE THEY WENT UP ON THE STARLINER CAPSULE. THEY WERE SUPPOSED TO BE THERE FOR ABOUT A WEEK. HAVE BEEN THERE FOR QUITE A LOT LONGER. THE STARLINER DID RETURN TO EARTH WITHOUT THEM, BUT THERE WERE CONCERNS ABOUT THE SAFETY OF IT AND A LOT OF REMAIN ABOUT WHETHER THAT IS A PROGRAM THAT HAS A FUTURE. CAROLINE: TAKE IT BACK TO THE SUCCESS THIS SHINES ON SPACEX.
THEY WERE DELAYED, BUT ULTIMATELY THEY HAVE TO BE DEPENDED ON FROM A U.S. GOVERNMENT PERSPECTIVE. >> THAT IS ALL THERE IS, REALLY. THE U.S. CURRENTLY HAS TWO WAYS OF GETTING PEOPLE TO THE SPACE STATION. THE CAPSULE AND STARLINER, BUT
STARLINER IS NOT REALLY AN OPTION RIGHT NOW, SO IT IS JUST SPACEX. THE ONLY OTHER WAY TO GET PEOPLE TO AND FROM THE SPACE STATION IS ABOARD A RUSSIAN ROCKET, BUT AS FAR AS YOU ESCAPE ABILITIES IT IS JUST SPACEX SO THERE ARE OTHERS THAT EITHER ALREADY HAD FLIGHTS OR PLAN ON HAVING CARGO FLIGHTS, BUT AS FAR AS GETTING ASTRONAUTS TO AND FROM IT IS SPACEX WITH ESSENTIALLY A MONOPOLY NOW GIVEN THE BOEING STARLINER IS QUESTIONABLE AT BEST. CAROLINE: THANK YOU. MUCH CELEBRATION FOR THOSE RETURNING ASTRONAUTS LATER. ELECTRIC AIR TAXIS COULD SOON BE ON THE HORIZONS OF LONDON AND MAYOR -- MANCHESTER. THERE IS A PARTNERSHIP TO LAUNCH AN AIR TAXI SERVICE IN THE UNITED KINGDOM. LET'S BRING IN THE CEO. HOW SOON AM I GOING TO BE ABLE TO FLY BACK TO THE U.K.
AND HOP ON ONE OF THESE? >> JUST A FEW YEARS OUT. WE ARE EXCITED TO BE ANNOUNCING TODAY OUR PARTNERSHIP WITH VIRGIN. THEY HAVE A DEDICATION TO CUSTOMER SERVICE THAT MATCHES OUR OWN. DELTA IS ONE OF THEIR LARGEST SHAREHOLDERS AND A PARTNER FOR JOBY. THIS IS A MATCH MADE IN HEAVEN AND WE ARE THRILLED TO BE ANNOUNCING IT AND USING IT TO CATALYZE DEVELOPMENT OF TAKEOFF AND LANDING LOCATIONS IN LONDON AND ACROSS THE U.K., SO IN THE
NEXT FEW YEARS WE ARE SO EXCITED TO BE BRINGING THE OPPORTUNITY FOR CUSTOMERS ACROSS THE U.K. TO FLY ON OUR AIR TAXIS. CAROLINE: WILL THEY ACTUALLY BUY THESE AIRCRAFT OR ARE THEY JUST HELPING PROMOTE THEM? >> WE ARE GOING TO GIVE CUSTOMERS THE OPPORTUNITY TO BOOK AN AIR TAXI FLIGHT ON THE WEBSITE AND TO BE A KEY DEMAND FUNNEL ALONGSIDE OUR PARTNERS AT DELTA IN DRIVING TO PUT PASSENGERS AND FILL SEATS. CAROLINE: SO IT IS MARKETING. THEY ARE NOT GOING TO COMMIT TO PURCHASE ONE. >> CORRECT. IT WILL BE JOBY OWNING AND OPERATING THE SERVICE IN THE U.K.
LIKE WE DO IN THE UAE AND DUBAI AND IN NEW YORK AND L.A.. TIM: WHAT IS THE MAIN THING HOLDING US BACK FROM FLYING? IS IT REGULATORS? >> WE ARE MAKING RECORD PROGRESS ON CERTIFICATION. WE ANNOUNCE THE FAA HAD MADE RECORD PROGRESS ON THEIR SIDE. JOBY IS DELIVERING DAY AFTER DAY ON COMPONENT SYSTEMS AND WE ARE TESTING MORE COMPONENTS AND BUILDING MORE COMPONENTS AND BUILDING THE FAA CONFORMING COMPONENTS SO WE ARE THRILLED WITH THE MOMENTUM WE ARE SEEING ON THAT SIDE. WE ARE SEEING INCREDIBLE LIEN IN FROM THE ADMINISTRATION AND THE FAA AND WE HAD U.K. REGULATORS IN CALIFORNIA WITH US BEGINNING PREPARATION WORK FOR THE VALIDATION OF OUR CERTIFICATION, SO FABULOUS PROGRESS ACROSS THE BOARD ON THE CERTIFICATION FRONT.
>> HOW HAS YOUR RELATIONSHIP WITH THE FAA CHANGED WITH THIS ADMINISTRATION? >> RELEASING A LOT OF LIEN IN. THE ADMINISTRATION HAS MADE AIR TAXIS A HIGH PRIORITY AND THAT IS ALSO GOING TO ROLL INTO THE BUILDOUT OF INFRASTRUCTURE AND WE VIEW THE TAKEOFF AND LANDING LOCATIONS THAT YOU CAN FLY FROM AS A CRITICAL ENABLER TO DELIVERING SPECTACULAR CUSTOMER EXPERIENCES SO WE ARE GRATEFUL FOR THE ADMINISTRATION AND THE PRIORITY THEY ARE PUTTING ON BUILDING NEW TAKEOFF AND LANDING INFRASTRUCTURE. >> AS A CONSUMER, I MIGHT BE ABLE TO GET ON ONE IN 2026, BUT DEFENSE. HOW ARE YOU WORKING WITH THE DEFENSE DEPARTMENT? I AM SEEING EV TALKS IN THAT PARTICULAR AREA. >> WE HAVE HAD AN INCREDIBLE PARTNERSHIP DATING BACK TO 2016 AND THIS IS A CRITICAL ACCELERANT TO ALL OF OUR WORK. THE DOD HAS BEEN A FABULOUS FIRST MOVER AND THAT CONTINUES.
WE DELIVERED OUR SECOND AIRCRAFT TO EDWARDS AIR FORCE BASE AND WE ARE THRILLED TO HAVE BOTH AIRCRAFT FLYING, BUILDING VALUABLE FLIGHT TEST EXPERIENCE, AND WE SEE THAT AS THE BEGINNING OF INCREDIBLE OPPORTUNITIES FOR VERTICAL TAKEOFF AND LANDING AIRCRAFT ON THE DEFENSE SIDE. THE DOD GAVE US -- PROVIDED US WITH FUNDING WHICH ENABLES DEMONSTRATION OF OUR FLIGHT TO THIS LAST YEAR, OF OUR HYBRID AIRCRAFT, SO WE ARE THRILLED TO SEE SUCH INCREDIBLE MOMENTUM ON THE DOD SIDE FOR THE INDUSTRY. TIM: THANKS SO MUCH FOR JOINING US TODAY. COMING UP, ZOOM'S CHIEF PRODUCT OFFICER JOINS US TO DISCUSS THE UPDATED AI AGENTS. THIS IS BLOOMBERG.
LET'S TALK ABOUT AI SPENDING. RESOURCES ARE GOING TO CONTINUE TO BE INCREASED BY HYPERSCALERS. WE EXPECT THEM TO INCREASE BY 44% THIS YEAR AND TOP $500 BILLION IN THE NEXT DECADE ACCORDING TO A NEW REPORT FROM BLOOMBERG INTELLIGENCE. FOR MORE ON WHAT IS DRIVING THE SPENDING SPREE, THERE WAS A WORRY ABOUT DEEPSEEK AND MORE EFFICIENT AND CHEAPER, LESS POWERFUL MODELS COMING TO BEAR AND WE DO NOT SEEM TO NEED TO WORRY ABOUT IT. THEY ARE STILL GOING TO FLOOD
THE SYSTEM. >> WE ARE SEEING DEEPSEEK AND ATTENTION TO IT BEING A CATALYST FOR TECH COMPANIES TO SAY BE WANT TO INVEST IN MORE TO DEVELOP THIS TECHNOLOGY SO I THINK A LOT OF INVESTMENT TODAY HAS BEEN AROUND BUILDING MODELS BUT NOW WITH REASONING SYSTEMS LIKE DEEPSEEK THERE IS MORE INVESTMENT AND HOW THEY OPERATE. IF YOU'RE AN INVESTOR CUT MAY BE THE SILVER LINING IS MORE OF THE SPENDING SHIFTS TO AFTER THE MODEL IS DEPLOYED. TIM: WON'T REASONING BECOME MORE EFFICIENT AS WELL? WILL IT BE ABLE TO DO MORE WITH LESS? >> WE ARE TRYING TO BUILD MORE SOPHISTICATED REASONING MODELS BUT THE IDEA IS AS THIS GETS DEVELOPED AND DEPLOYED YOU WILL SEE THE AMOUNT OF MONEY THAT GOES INTO SUPPORT REASONING SHOOT UP IN THE COMING DECADE. CAROLINE: LET'S GO BACK TO THE ANXIETY OF THE REPORTING OF MICROSOFT SENT SHOCKWAVES THROUGH THE MARKET AFTER WE GOT THE EFFICIENCY AND DEEPSEEK. WE ARE STILL SEEING AN EVER SCALING AMOUNT OF MONEY.
>> THE PACE OF GROWTH IS GREATER THAN THEY EXPECTED BEFORE DEEPSEEK, SO BUSINESS AS USUAL TO SOME EXTENT, MORE INVESTMENT IN DATA CENTERS BUT IT SHOULD TAKE A LITTLE THE FOCUS. TIM: TODAY, ZOOM ANNOUNCE NEW FEATURES AND SKILLS FOR AI COMPANIONS. THE COMPANY IS LEANING INTO NEW PRODUCTS AS ITS VIDEO BUSINESS MATURES. JOINING US NOW IS SMITA HASHIM, ZOOM'S CHIEF PRODUCT OFFICER. WE WILL GET TO THE ANNOUNCEMENT IN A MINUTE, BUT HOW WOULD YOU CHARACTERIZE HOW CUSTOMERS ARE USING THE AI FEATURES OF ZOOM? BEYOND ITS CORE VIDEO PRODUCT? SMITA: GREAT TO BE HERE.
THANK YOU FOR HAVING ME. WE ARE SEEING ACCELERATED GROWTH IN CUSTOMERS USING ZOOM AI COMPANION, WHICH IS A GENERATIVE AI ASSISTANT. OVER A QUARTER ACTIVES GREW BY 68%, SO THAT IS A HUGE INCREASE. WE CONTINUE TO SEE CUSTOMERS GET MORE COMFORTABLE AT USING GENERATIVE AI. TIM: WHEN CAN YOU TELL INVESTORS THAT YOU WILL BE ABLE TO CHARGE MORE FOR THESE PRODUCTS AND GROWTH THAT TOPLINE AS A RESULT OF THE INNOVATIONS YOU ARE MAKING WHAT COMES TO AI? SMITA: ZOOM AI COMPANION IS INCLUDED AT NO ADDITIONAL COST. LAST
YEAR, WE EXPANDED IT AND EXPANDED THE PRODUCT PORTFOLIO ACROSS MICROSOFT OUTLOOK, GMAIL, OFFICE, SO WE EXPANDED THE FOOTPRINT A LOT AND WE CONTINUE TO SEE GROWTH. WE ALSO ANNOUNCED A CUSTOM AI COMPANION ADD ON, SO THAT IS A BIG ADD ON. WITH A CUSTOM AI COMPANION ADD ON CUSTOMERS WILL BE ABLE TO USE ZOOM AI COMPANION IN WAYS THAT ARE REALLY UNIQUE TO THEM WITH CUSTOM VOCABULARY CONNECTING ACROSS DIFFERENT APPLICATIONS.
THAT IS SOMETHING WE WILL BE CHARGING FOR AND WE ALSO CHARGE FOR PRODUCTS LIKE CONTACT CENTER. WE HAVE ADVANCED AI, BUT REALLY WE WANT CUSTOMERS AND USERS TO REALLY BENEFIT FROM AI CAPABILITIES AND AS THEY START USING THEM WE WANT TO GIVE THEM MORE SPACE TO CUSTOMIZE AND EXPAND. CAROLINE: IT IS INTERESTING HOW YOU'RE TALKING ABOUT WORKING ALONGSIDE MICROSOFT OUTLOOK. YOU HAVE WORKED AT BOTH OF THOSE COMPANIES HELPING WITH GOOGLE PRODUCTS AND MICROSOFT TEAMS. HOW COMPETITIVE IS IT OUT THERE? THAT IS WHAT INVESTORS ARE WORRIED ABOUT, THAT YOU WILL LOSE OUT TO TEAMS, FOR EXAMPLE. SMITA: WE SEE A LOT OF CUSTOMER
INTEREST AND LOVE FOR ZOOM. A LOT OF IT IS IT JUST WORKS AND IT IS A GREAT EXPERIENCE. WE ALSO WORK HARD ON CUSTOMER CHOICES SO WE ARE AN OPEN PLATFORM AND CUSTOMERS LIKE THAT.
THEY LIKE A LOT OF CHOICE AND WE GIVE THEM GREAT VALUE ALONG WITH THESE EXPERIENCES. THE AI COMPANION IS PART OF ALL OF OUR PAID LICENSES, SO ALL OF THIS IS COMING TOGETHER TO KEEP CUSTOMER ENGAGEMENT HIGH AND HAVE THE INCREDIBLE LOVE IC FOR ZOOM FROM CUSTOMERS, WHICH I HAVE NOT SEEN ANYWHERE ELSE. CAROLINE: YOU TALKED ABOUT THE GROWTH, 68% INCREASE, BUT WHAT IS THE AMOUNT PEOPLE ARE USING IT? HOW ADDICTED TO IT ARE THEY? >> THE GROWTH NUMBERS TELL THE STORY THAT PEOPLE ARE USING IT AND ABANDONING IT WE ARE NOT GOING TO GET GROWTH WE ARE SEEING, SO CUSTOMERS CONTINUE TO USE IT AND CONTINUE TO USE MORE AND MORE OF IT. SOME OF THE DATA WE ARE GETTING IS HOW MUCH CUSTOMERS ARE USING IT ALL THE TIME TO STREAMLINE THEIR WORK. SO FOR ME I AM USING ZOOM AI
COMPANION TO PREPARE FOR MEETINGS, DURING THE MEETING, EVEN TO UNDERSTAND DIFFERENT VIEWPOINTS. I'M USING IT TO UNDERSTAND ACTION ITEMS. ONE USE CASE IS I'M USING IT AT THE END OF THE DAY TO REFLECT ON MY DAY SO WE ARE SEEING USE CASES NOW ACROSS ZOOM WORKPLACE AND CONNECTED APPLICATIONS AND THAT IS WHERE ENGAGEMENT IS COMING FROM BUT I ALSO TO TALK ABOUT OUR NEXT SET OF ANNOUNCEMENTS, WHICH IS WE TALKED ABOUT HOW BIG CHANGES TO THE AI COMPANION ARE COMING AND IT MEANS IT CAN BEHAVE MORE AND MORE LIKE YOU AND I DO SO WE HAVE ADDED CAPABILITIES LIKE REASONING. IT CAN REASON AND REMEMBER WHAT HAPPENED. IT CAN ORCHESTRATE ACROSS DIFFERENT PRODUCTS AND SKILLS AND AGENTS AND IT CAN TAKE ACTIONS, SO NOT ONLY CAN IT REASON, IT CAN COMPLETE ACTIONS SO SOME OF THOSE CHANGES OUR WORKPLACE AI COMPANION IS NOT ONLY ABLE TO HELP YOU UNDERSTAND WHAT IS GOING ON BUT ALSO HELP WITH COMPLEX SCHEDULING, WRITING DOCUMENTS IN WAYS THAT IS EFFECTIVE. AND EVEN SEND MESSAGES ON YOUR BEHALF SO THESE SKILLS ARE DEEPENING ENGAGEMENT AND HELPING USERS SAVE MORE TIME SO THEY GET MORE EFFECTIVE AT BEING MORE PRODUCTIVE. TIM:
ARE THESE BILLS ORGANICALLY BY ZOOM OR ARE YOU RELYING ON A THIRD PARTY OR OTHER AI AGENT? TWO ACTUALLY POWER THE ZOOM SKILLS? SMITA: WE DO A LOT OF OUR CORE AI BUT IN TERMS OF THE MODELS, THE MODELS WE ARE USING FROM DAY ONE WE HAVE HAD THIS APPROACH WHICH MEANS WE WORK ACROSS A VARIETY OF MODELS. WE WORK ACROSS OPENAI AND USE OPEN SOURCE MODELS. RECENTLY, WE HAVE STARTED INVESTING WHERE WE HAVE SMALL LANGUAGE MODELS, SO MORE SPECIALIZED MODELS AND WE ARE SEEING THESE PERFORM AT THE TOP OF THE PUBLIC LEADER BOARDS AND BENCHMARKS SO WE USE A VARIETY OF THESE MODELS AS WELL AS HOURS TO GET THESE GREAT EXPERIENCES. CAROLINE: COMING UP, AMAZON'S ALEXA REBOOT CONTINUES.
THIS IS BLOOMBERG TECHNOLOGY. TIM:TIM: A NEW PREMIUM TIER OF GADGETS ALONGSIDE A REVAMPED OPERATING SYSTEM AN EFFORT TO REVITALIZE THE BRAND. FOR MORE, MARK JOINS US. HOW MUCH OF A DEPARTURE IS THIS FOR THE AMAZON STRATEGY? AMAZON HAS CREATED GADGETS AND HARDWARE THAT IS CHEAP AND ALLOWS YOU TO BUY MORE STUFF FROM AMAZON. >> THAT IS RIGHT. TO DATE, THE FOCUS HAS NOT BEEN ON MAKING MONEY ON HARDWARE. IT HAS NOT BEEN ON PEOPLE
LOVING THE HARDWARE. IT HAS BEEN ON GETTING PEOPLE TO USE ALEXA AND BUY THINGS THROUGH AMAZON PRIME, GETTING PEOPLE TO SUBSCRIBE TO THEIR VIDEO SERVICES AND MUSIC SERVICES. NOW IT IS ABOUT BOTH. THEY WANT TO BRING ALEXA PLUS
TO MORE PEOPLE AND GOOD PEOPLE HOOKED ON THAT PRIME SUBSCRIPTION BUT THEY ALSO WANT TO MAKE MORE MONEY ON HARDWARE, HAVE MORE PREMIUM HARDWARE, AND MAKE PRODUCTS THAT COMPETE IN THE CONSUMER TECH INDUSTRY. HE WAS POACHED FROM MICROSOFT, WHERE HE WAS CHIEF PRODUCT OFFICER AND HE WAS KNOWN FOR HIGH END MATERIALS, USING NEW MATERIALS LIKE WHAT YOU WOULD SEE ON CAR SEAT OR A CAR AS PADDING ON THE PALM REST, USING LOTS OF ALUMINUM AND JUST HIGH QUALITY MATERIALS AND PRODUCT OF ELEMENT PROCESSES. BASICALLY STUFF WE WERE SEEING FROM APPLE FOR DECADES. AND APPLYING THAT TO MICROSOFT PRODUCTS. HE WILL DO THE SAME THING AT
AMAZON AND START ROLLING OUT NEW PRODUCTS BEGINNING AT THE TAIL END OF THIS YEAR. >> TALKING OF THE PREMIUM FOCUS APPLE HAS, THEY WERE TALKING ABOUT THE SLIMMEST SMARTPHONE THAT IS LIKELY TO COME WHEN WE GET IPHONE 17 AND HOW THIS PUSHES THEM FURTHER FORWARD. IN TERMS OF CHARGING IN PARTICULAR. >> THEY ARE COMING OUT WITH THE IPHONE 17 AIR. LET'S LOOK AT THE MACBOOK STRATEGY. THEY HAVE HIGHER END MACBOOKS AND LOWER END MACBOOK AIR AND THAT IS A FOCUS ON USING THE GENERATION TECHNOLOGY SO NOW THEY SAW THE SUCCESS AND WANT TO DO THE SAME THING TO THE IPHONE. THIS WILL BE A SLIMMED-DOWN
MODEL, THINNER THAN OTHER IPHONES IN THE MARKET. THAT IS REALLY THIN BECAUSE THE IPHONES ARE THIN ALREADY AND THE WAY THEY HAVE CREATED A SOPHISTICATED DISPLAY AND BATTERY TECHNOLOGIES TO GET POWER EFFICIENCY UP BUT USING A NEW MODEM, IT WILL HAVE A DISPLAY AROUND 6.6 INCHES, SO A LITTLE BIGGER SO IT IS AN IN-BETWEEN SIZE. I THINK THE PHONE WILL BE SUCCESSFUL. THEY WANTED TO MAKE IT MORE FUTURISTIC BY REMOVING THE CHARGING PORT BUT THEY WERE WORRIED ABOUT REGULATORS SO THE CHARGING PORT WILL BE THERE BUT MY ANTICIPATION AS THIS WILL FORESHADOW THINNER IPHONES WITH A BIGGER DESIGN CHANGE, CERTAINLY MODELS DOWN THE ROAD WITHOUT CHARGING PORTS.
CAROLINE: THANK YOU. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. DO NOT FORGET TO CHECK OUT OUR PODCAST ON THE TERMINAL AS WELL AS ONLINE. FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY.
2025-03-23 07:53
