Meta, Big Tech Make Political Shifts | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. TIM: GOOD MORNING, I'M TIM STENOVEC. KATIE: AND I'M KATIE GREIFELD. IT'S FRIDAY, WE ARE BOTH IN NEW YORK CITY, WELCOME TO "BLOOMBERG TECHNOLOGY. TIM: COMING UP, NICK CLEGG STANDS DOWN AS THE HEAD OF THE META-TECHNOLOGY. KATIE:
AND WILL THE SUPREME COURT SAVED THE DAY FOR TIKTOK? TIM: AND TOUGHER SCRUTINY ON EXPORTS OF TECHNOLOGY TO MAKE BATTERY MATERIALS. ALL OF THAT AND MORE OVER THE NEXT HOUR ON "BLOOMBERG TECHNOLOGY. FIRST, CHECK ON THE MARKETS. TECH IS DRIVING STOCKS HIGHER TODAY, THE NASDAQ 100 IS UP 1%, 86 STOCKS HIGHER LED BY NVIDIA, MICROSOFT. ON THE DOWNSIDE WE HAVE GOT APPLE LOWER AGAIN. WE WILL BE SPEAKING WITH RYAN
IN A FEW MINUTES ON THEIR LONGEST LOSING STREAK AT APPLE SINCE NOVEMBER, DOWN FROM THE POST-CHRISTMAS ALL-TIME HIGH. THE BIG QUESTION, KATIE, CAN THE GAINS OLD? WE SAW THE SAME THING PLAY OUT YESTERDAY WHEN STOCKS STARTED OUT HIGHER AND CLOSE LOWER. KATIE: YESTERDAY WAS ACTUALLY THE WORST TRADING DAY OF THE YEAR. [LAUGHTER] THANK YOU FOR LAUGHING. TIM:
YOU GOT IT. BITCOIN, RISING FOR A FOURTH DAY IN A ROW WITH INVESTORS PULLING MONEY FROM THE ETF, 330 $3 MILLION ACCORDING TO YESTERDAY'S DATA. KATIE: I WOULD SAY THAT'S ITS WORST OUTFLOW EVER, BUT FOR A $50 BILLION FUND IT'S AMAZING THAT ONLY THAT MUCH COUNTS AS RECORD OUTFLOW. IN ANY CASE, TALKING ABOUT INDIVIDUAL NAMES HERE, WE HAVE TO TALK ABOUT NVIDIA SHARES.
BIG TECH, NVIDIA IS DRIVING THE INDEXES HIGHER, UP 3.5 PERCENT. NOT A HUGE MOVE IN THE GRAND SCHEME, BUT IT IS YOUR BIGGEST POINTS CONTRIBUTOR TO THE S&P 500 RIGHT NOW. SIMILAR STORY WITH THE NASDAQ. APPLE, YOU MENTIONED IT, A LOT
OF FEARS ABOUT CHINA RIGHT NOW AND YOU CAN SEE THOSE FEARS, IF YOU TAKE A LOOK AT THE FIVE-DAY CHART IT'S DOWN 6% OVER FIVE DAYS, IT'S LONGEST SUCH STREAK SINCE APRIL. SO, DEFINITELY A LOT OF CONCERNS ABOUT APPLE. LET'S TALK ABOUT THEM WITH RYAN. WHEN IT COMES TO APPLE AND THESE CHINA FEARS, REMEMBER REUTERS REPORTED ON THURSDAY THAT THEY ARE OFFERING DISCOUNTED SMARTPHONES IN CHINA, FEELS LIKE THIS HAS BEEN THE BEAR CASE FOR A WHILE FOR THIS COMPANY. RYAN: THANKS FOR HAVING ME.
CHINA IS A MAJOR MARKET FOR APPLE, NO SURPRISE ABOUT THAT. THE LATEST DATA ON MONTHLY SALES AND SHIPMENTS OF IPHONES IN THE COUNTRY HAVE BEEN MUTED, THAT'S BEEN THE OVERALL TAKE AWAY. GIVEN THE SIZE OF THE MARKET AND THE IMPORTANCE OF THE IPHONE 16, THE FIRST WANT TO HAVE AI FEATURES, THE FACT THAT THAT IS BEING MET WITH WEAK SALES OUT OF CHINA IS A BIT OF A CAUSE FOR CONCERN WHEN YOU ARE LOOKING AT A BACKDROP THAT COULD HAVE ELEVATED TARIFF RISKS, SLOWER GROWTH POTENTIAL, JUST A WHOLE GENERAL LIST OF CONCERNS OUT THERE. THE FACT THAT YOU ARE SEEING
WEAKNESS IN CHINA IS A REASON FOR PEOPLE TO START THE YEAR OFF ON A MORE CAUTIOUS NOTE GIVEN HOW STRONG IT PERFORMED AT THE END OF 2024. TIM: I FEEL LIKE THIS IS HOW WE STARTED LAST YEAR, CONCERNS ABOUT CHINA AND THEN APPLE HIT IT OUT OF THE PARK AS IT DOES SEEMINGLY ALL THE TIME. WHAT'S GOING ON? RYAN: THERE ARE PLENTY OF REASONS FOR PEOPLE TO BE OPTIMISTIC. WITH MORE APPLICATIONS BEING RELEASED WITH AI FEATURES ON THE IPHONE, THAT WILL PLAY OUT OVER 25, 26, AND 27, AND WE WILL LIKELY SEE MORE UPGRADES OVER TIME, THAT'S SOMETHING FOR PEOPLE TO BE OPTIMISTIC ABOUT. AI PROBABLY MEANS HIGHER SERVICE GROWTH WITH CLOUD GROWTH AND OTHER TAILWINDS ASSOCIATED WITH IT.
GIVEN THIS MAJOR MARKET OUT THERE, IT IS PROBABLY NOT SURPRISING, AS PEOPLE CONTINUE TO WONDER ABOUT THEIR OVERALL GROWTH RATE AND WHAT IT WILL BE -- WILL IT BE AS STRONG AS OTHER BIG TECH NAMES? HOW DOES VALUATION LOOK? THESE ARE REASONS MAY AGAIN FOR PEOPLE TO EASE OFF A BIT IN THE FIRST DAYS OF THE YEAR. TIM: RYAN, THANK YOU SO MUCH, APPRECIATE IT. FOR MORE ON THE BROADER TECH MARKET, MARK, GOOD AS ALWAYS TO SEE YOU. THE NASDAQ 100 WAS UP LAST YEAR BY 25%, 2023, MORE THAN 50%. THE TECH STOCKS THAT YOU FOLLOW, STILL ROOM FOR RUNNING HIGHER IN 2025? MARK: I THINK SO, BUT THE SET UP IS WE ARE 2.5 YEARS INTO A MAJOR
BULL MARKET. IT STARTED IN THE MIDDLE OF 2022 AFTER THE SHOCK OF THE DRAMATIC RAMP-UP IN INTEREST RATES. SINCE THEN, TECH STOCKS HAVE DONE NOTHING SINCE GO UP.
I THINK THAT WILL START TO FADE THIS YEAR. THERE WON'T BE THE SAME OUTPERFORMANCE THIS YEAR AS THE LAST TWO YEARS. MAYBE THAT’'S AN EASY STATEMENT TO MAKE. LOOKING AT ONLINE RETAIL,
ONLINE TRAVEL, CLOUD COMPUTING, ADVERTISING, AND THOSE GROWTH RATES ARE RELATIVELY SUSTAINABLE . ALL THE CHECKS THAT WE HAD AT THE END OF LAST YEAR GOING INTO THIS YEAR WERE RELATIVELY CONSTRUCTIVE. WE HAD RECORD HIGH MARGINS THAT ARE LARGELY SUSTAINABLE. THE SECTOR AS A WHOLE IS BEING MORE JUDICIOUS THAN THEY WERE IN THE PAST. THE THIRD FACTOR HERE IS GENAI, THE GIFT THAT KEEPS ON GIVING FOR QUITE SOME TIME, LEADING TO MORE EFFICIENT PROCESSES, BETTER REVENUE STREAMS, ETC..
A COUPLE OF REASONS TO REMAIN FUNDAMENTALLY CONSTRUCTIVE BUT THERE IS VERY LITTLE DISLOCATION AROUND THE TECH STOCKS THAT I LOOK AT. THE ONE I REALLY LIKE HERE IS UBER. KATIE: TALK TO US ABOUT THAT. THEY ARE SO DOMINANT COMPARED TO LYFT BUT THE FACT THAT THEY HAVEN'T KEPT UP WITH OTHER LARGE CAP NAMES WITH DRAMATIC EXPANSION, WHAT IS THE BULK CASE FOR UBER GOING FORWARD? MARK: STARTING WITH BARE CASES, THEY DID A SLOWDOWN IN MOBILITY BOOKINGS IN 2024. AND THERE IS A REALLY BIG
CONCERN OVER ROBOTAXIS AND WHETHER THEY WILL OBVIATE THE NEED TO HAVE RIDESHARE NETWORKS IN THE FUTURE. I'M TAKING THE OTHER SIDE ON THAT BUT THOSE ARE THE FACTORS THAT HAVE CAUSED IT TO CORRECT. THE ONLY ONE THAT HAS REALLY MATERIALLY CORRECTED. I THINK THAT AS THE LARGEST
DEMAND AGGREGATOR OUT THERE, ROBOTAXIS WILL FIND A PLACE IN THE UBER NETWORK. TWO CITIES, AUSTIN AND ATLANTA, WHERE WE WILL SEE WAYMO ROBOTAXI ON THEIR NETWORK. I'M A BIG FAN OF WAYMO IN SAN FRANCISCO AND I THINK YOU WILL SEE MORE COMPETITION IN THAT SPACE IN THE FUTURE WITH MORE OF THOSE CARS ON THE META -- ON THE UBER NETWORK. KATIE: I'VE NEVER BEEN IN ONE, BUT I WILL BE THERE IN TWO WEEKS. TIM: IT'S AWESOME, YOU SHOULD DO IT. KATIE: I HAVE A REAL FEAR OF MORTALITY, WE WILL -- MORTALITY, WE WILL PUT A FEAR -- A PIN IN THAT. HUBER IS AMONG YOUR CHOICES, SO
IS ALPHABET. THAT'S IN A BIT OF A DIFFERENT LEAGUE THAN THE AIRBNB'S AND UBER'S OF THE MARKET. MARK: I WOULD SAY THAT GOOGLE AT 160 IS DISLOCATED. AT 190, I'M NOT SURE THAT IT IS. THIS IS ALL GETTING AHEAD OF
FUNDAMENTALS, IT'S ALL REGULATORY. FIRST, THE DOJ ANTITRUST CASE AGAINST GOOGLE. THEY LOST THIS IN TERMS OF SEARCH.
WE WON'T GREAT VISIBILITY ON THIS UNTIL AUGUST UNLESS THERE IS A SETTLEMENT AND I THINK THOSE CHANCES WENT UP WHEN, WHEN, WHEN WE HAD, YOU KNOW, THE U.S. ELECTORAL RESULTS. THAT'S A VERY HARD THING TO HANDICAP, BUT THAT IS ONE FACTOR OUT THERE. THE OTHER THING IS THE TIKTOK MAN. WE ARE DAYS AWAY FROM IT GOING INTO EFFECT. IT'S POSSIBLE THAT IT GETS
STAYED. THERE IS A PROVISION IN THE LAW FOR THAT. AND IT'S POSSIBLE THAT THERE IS SOME SORT OF FORCED SALE OF TIKTOK. BUT IF THERE IS A BAND, AND THE MARKET IS HEAVILY DISCOUNTING THIS BY MORE THAN IT PROBABLY SHOULD, IF THERE IS A BAN ON TIKTOK THE BENEFICIARIES WILL BE GOOGLE, YOUTUBE, YOUTUBE SHORTS, META, AND REELZ. TIM: WHO'S THE BIGGER BENEFICIARY? META PLATFORMS? MARK: I THINK SO. USERS, IF I CAN'T REALLY USE TIKTOK, THERE'S A WONDERFUL VALUE PROPOSITION THERE AND PEOPLE WILL LOOK FOR OTHER SHORT FORM VIDEO PLACES AND YOUTUBE SHORTS AND REELZ COULD BE BENEFICIARIES. ADVERTISERS HAVE THESE FORMATS
NAILED. THEY'VE GOT THEM LOCKED IN. THEY WILL HAVE TO FIND THE OTHER OBVIOUS PLACES, WHICH ARE GOOGLE AND META. TIM: WHAT'S THE CHANCE THAT THIS ACTUALLY GOES THROUGH WITH TIKTOK? MARK: I DON'T KNOW. I THINK IT'S STILL A MINORITY CHANCE. I DON'T THINK IT'S A PROBABILITY. 25%, MAYBE? I'M STRUCK BY TALKING TO
INVESTORS THIS BELIEVE THAT THERE IS A SINGLE DIGIT THING GOING THROUGH. THIS IS THE LAW OF THE LAND. THERE ARE FIRST AMENDMENT ASPECTS TO IT, BUT IT'S NOT A FIRST AMENDMENT ISSUE AND THIS WAS A BROAD, BIPARTISAN CONGRESSIONAL LAW THAT WENT INTO EFFECT, IT WAS PRETTY WELL VOTED ON BY BOTH DEMOCRATS AND REPUBLICANS. YOU KNOW, THIS IS THE LAW OF THE LAND GOING INTO EFFECT. BUT WHO KNOWS WHAT WILL HAPPEN IN THE NEXT COUPLE OF WEEKS. I'M A LITTLE BAFFLED BY THIS. ANYWAY, THAT'S THE LAW OF THE
LAND AND IF IT GOES INTO EFFECT THERE IS A CLEAR POSITIVE CATALYST FOR GOOGLE AND META. KATIE: IT WILL BE FASCINATING TO SEE HOW THAT SHAKES OUT. WHEN IT COMES TO THE BENEFICIARIES OF A POTENTIAL TIKTOK MAN, WE WERE TALKING ABOUT THIS IN OUR MORNING MEETING.
LOOKING AT THE CONTENT ON REELZ, A LOT OF IT IS RECYCLED FROM TIKTOK. HOW URGENT OF A QUESTION IS IT FROM META TO ATTRACT CREATORS ONTO THEIR OWN PLATFORM? 9 IT'S CRITICAL FOR THEM -- MARK: IT'S CRITICAL FOR THEM TO DO THAT. WHETHER OR NOT THERE IS A TIKTOK MAN. IF THERE IS, THOSE CREATORS WILL HAVE TO BUILD THEIR AUDIENCES SOMEWHERE ELSE AND I WOULD BE SURPRISED IF MAJOR TIKTOK -- A LOT OF TIKTOK CREATORS I THINK ARE SOMEWHAT DIVERSIFIED ANYWAY.
I KNOW THAT THERE ARE SOME THAT ARE NOT, BUT A GOOD NUMBER OF THEM ARE. YEAH, THIS HAS ALWAYS BEEN THE DRIVE OF META, TO ATTRACT MORE SHORT FORM VIDEO CONTENT AND TALENT TO THEIR NETWORK AND I THINK THEY WILL BE ABLE TO DO THAT. THEY'VE BEEN SUCCESSFUL DOING THAT IN A LOT OF DIFFERENT AREAS. KATIE:
GREAT POINT TO LEAVE IT ON, REALLY APPRECIATE YOUR TIME. TIM: WILL YOU BE OK IF TIKTOK GETS BANNED? KATIE: I WILL BE SAD, I SPENT 300 -- THREE HOURS THERE DAY. [LAUGHTER] COMING UP, THE META POLITICAL SHIFT IN HOW THEY ARE GEARING UP FOR A SECOND TRUMP PRESIDENCY, NEXT. KATIE: NICK CLEGG IS STEPPING DOWN FROM HIS ROLE AS PRESIDENT OF GLOBAL AFFAIRS AT META AND WILL BE REPLACED BY JOEL KAPLAN, LONGTIME EXECUTIVE WITH REPUBLICAN TIES. THIS IS A BIG SHIFT FOR THE IMMEDIATE -- FOR THE TECH GIANT. OF KAPLAN, CLEGG SAID THAT HE WAS CLEARLY THE RIGHT PERSON FOR THE RIGHT JOB AT THE RIGHT TIME. KIRK, TELL US WHY. KIRK:
AS YOU MENTIONED, IT'S A TRANSITION INTO, YOU KNOW, THE SECOND TRUMP TERM AND THIS IS SOMEONE WHO IS, JOEL KAPLAN BEING SOMEONE WITH REPUBLICAN TIES, WITH A LOT OF HISTORY WITH THE REPUBLICAN PARTY, WORK FOR THE GEORGE W. BUSH ADMINISTRATION BACK IN THE DAY, SOMEONE WHO CAN MAYBE SPEAK THAT LANGUAGE BETTER THAN NICK CLEGG, WHO CAME OVER FROM, YOU KNOW, THE U.K.. I DO THINK THAT THIS SORT OF SIGNALS THAT META CERTAINLY SEES THEIR MOST IMPORTANT RELATIONSHIPS RIGHT NOW AS DOMESTIC AND NOT NECESSARILY WHAT'S GOING ON IN EUROPE WHERE THERE IS A TON OF REGULATORY ISSUES, SOMETHING I THINK NICK CLEGG WAS WELL TO HANDLE. TIM: JOEL KAPLAN MIGHT BE SOMEONE WITH THE REPUBLICAN PARTY TIES, BUT THE REPUBLICAN PARTY HE WAS A PART OF IS A FAR CRY FROM THE TRUMP REPUBLICAN PARTY AND IN FACT, MANY FOLKS IN THE REPUBLICAN PARTY CRITICIZE THAT ADMINISTRATION NOW AND I WONDER IF YOU THINK THERE WILL BE ANY TENSION THERE, IF THERE IS TENSION THERE AND IF IT REPRESENTS A DISCONNECT BETWEEN META PLATFORMS AND THE REPUBLICAN PARTY OF TODAY. KURT: POSSIBLY BUT EVERY PARTY WILL BE DEALING WITH THIS, THEIR MORE TRADITIONAL FOLKS MIGHT NOT BE THE MAGA TRUMP CANDIDATE PARTY THAT WE ARE STARTING TO SEE EMERGE AND TAKE OFF. NOW IT'S CLOSER, RIGHT? KAPLAN WILL BE CLOSER IN ALIGNMENT ON THOSE TYPES OF ISSUES, SO MAYBE THAT HELPS, BUT I THINK THE KEY HERE IS REALLY THE ROLE OF MARK ZUCKERBERG. FOR THE LAST FOUR YEARS HE'S
BEEN SAYING I WANT TO BE HANDS OFF. THIS POLICY ENOUGH IS NOT FOR ME. I WANT TO FOCUS ON PRODUCT AND BUSINESS. NOW HE'S AT MAR-A-LAGO, CALLING TRUMP PERSONALLY. I THINK THAT MARK ZUCKERBERG WILL LIKELY HANDLE THE LION'S SHARE OF THE RELATIONSHIP WITH TRUMP HIMSELF, LETTING KAPLAN DEAL WITH ALL THE STUFF ON CAPITOL HILL, WHERE HE IS VERY WELL-CONNECTED GIVEN THE YEARS HE'S HAD IN THE INDUSTRY. TIM: KURT, THANK YOU SO MUCH, APPRECIATE IT.
NOT JUST META PREPARING FOR THE SECOND TRUMP ADMINISTRATION. OTHER BIG TECH LEADERS HAVE MET WITH THE PRESIDENT-ELECT AHEAD OF HIS RETURN TO THE WHITE HOUSE. FOR MORE ON THE FUTURE OF THE RELATIONSHIP BETWEEN SILICON VALLEY AND TRUMP ADMINISTRATION, ADAM JOINS US NOW. ADAM, HOW WOULD YOU DESCRIBE THE RELATIONSHIP BETWEEN TECHNOLOGY AND THE INCOMING TRUMP ADMINISTRATION? A LOT HAS CHANGED IN THE LAST FOUR YEARS WITH THE RHETORIC OUT OF SILICON VALLEY, MORE PRO-TRUMP THAN IT EVER HAS BEEN. ADAM: YOU HAVE TO FACTOR IN TWO THINGS. ONE, A LOT OF UNHAPPINESS WITH HOW THE BIDEN ADMINISTRATION HAS TARGETED TECH AND SEEN IT AS AN INDUSTRY TO TRASH RATHER THAN CHAMPION. FRANKLY, I THINK THERE'S A LOT
OF FRUSTRATION FROM PEOPLE IN SILICON VALLEY WHO ARE NOT NECESSARILY TRUMP SUPPORTERS OR EVEN RIGHT-LEANING, BUT THERE HAS BEEN A LOT OF FRUSTRATION THAT THE ADMINISTRATION HASN'T CHAMPIONED THE COUNTRY'S BIGGEST EXPORT. AND IN TERMS OF WHAT WORKED AND WHAT DIDN'T IN TERMS OF HOW TO DEAL WITH HIM A LOOK -- DEAL WITH HIM AND WORK WITH HIM, A LOT OF TECH CEOS ARE TURNING TO TIM COOK, WHO PROBABLY MANAGED THE FIRST TRUMP ADMINISTRATION THE BEST AND A LOT OF THAT WAS DIRECT CONTACT BETWEEN THE CEO IN TRUMP HIMSELF. AS YOU SAID, THAT'S NOT SOMETHING THAT CAN BE EASILY DESIGNATED TO A DEPUTY. TRUMP REALLY CARES ABOUT MEETING WITH CEOS AND THAT KIND OF MEETING OFTEN WORKS AND SUCCEEDS WITH HIM.
THAT IS WHAT A LOT OF COMPANIES ARE LEADING WITH. KATIE: LET'S GO TO WHAT TRUMP HAS SAID TO. THIS IS A POST ON SOCIAL MEDIA, LATE DECEMBER. BIG TECH HAS RUN WILD FOR YEARS, STIFLING COMPETITION IN THE MOST INNOVATIVE SECTOR, USING MARKET POWER TO CRACK DOWN ON THE RIGHTS OF SO MANY AMERICANS, AS WELL OF THOSE OF LITTLE TECH, NOT A PHRASE I'VE HEARD BEFORE. TIM: MAYBE HE'S TALKING ABOUT TRUTH SOCIAL? KATIE: MAYBE. READING BETWEEN THE LINES, IT SEEMS THAT THE ANTITRUST PRESSURE ON THESE BIG TECH NAMES IS GOING TO CONTINUE.
KURT: ADAM: I DON'T THINK -- ADAM: I DON'T THINK THERE'S ANY DOUBT ABOUT THAT. THE BIDEN ADMINISTRATION HAS BEEN PROSECUTING THOSE AND SOME OF THOSE STARTED UNDER THE FIRST TRUMP TERM. I DON'T EXPECT ANY OF IT TO GO AWAY.
BUT I DON'T THINK TRUMP CARES ABOUT ANTITRUST AS AN ISSUE. I THINK WHAT HE CARES ABOUT IS IF THESE COMPANIES ARE NICE TO HIM AND HE VIEWS ANTITRUST LAWSUITS AS LEVERAGE. I DON'T THINK YOU WILL SEE A LOT OF SETTLEMENTS. EVEN THOUGH THERE WILL BE RIGHT-LEANING PEOPLE WHO MIGHT NOT AGREE WITH THE SUBSTANCE OF THE SUIT, YOU WILL SEE THE TRUMP ADMINISTRATION KEEP THE SUITS GOING BECAUSE THEY ARE LEVERAGE OVER THE COMPANIES OVER THINGS LIKE CONTENT OPERATION AND SPEECH. BUT THERE IS AN INTERESTING QUESTION HERE, LITTLE TECH, YOU SAID, RIGHT? THE BIDEN ADMINISTRATION HAS HAD A CHILL OVER MERGERS AND ACQUISITIONS AND THAT HAS BEEN INTENTIONAL, THAT'S BEEN THEIR APPROACH TO TECH M&A. LITTLE TECH COMPANIES BENEFIT
WHEN BIG TECH COMPANIES ARE ABLE TO ACQUIRE THEM. MANY COMPANY STARTUPS WANT THE ABILITY TO VEHICLE -- TO BE ACQUIRED AS AN EXIT PATH. THIS WILL BE A REAL TEST FOR THE TRUMP ADMINISTRATION. LITTLE TECH, DO THEY OR DO THEY
NOT WANT BIG TECH TO BE FREE TO ACQUIRE COMPANIES AGAIN? THAT WILL BE ATTENTION WITHIN THE ANTITRUST ENFORCEMENT. TIM: QUICKLY, ADAM, WHAT HAVE BEEN YOUR CONVERSATIONS WITH MEMBERS OF THE INCOMING ADMINISTRATION SO FAR? ADAM: IT'S BEEN INTERESTING, I THINK THEY HAVE PEOPLE THAT REALLY WANT TO GET IT RIGHT ON THINGS LIKE AI, CRYPTO, PEOPLE LIKE DAVID SACHS, THEY ARE TALKING TO PEOPLE IN THE ADMINISTRATION AND FRANKLY I THINK THERE'S A LOT OF OPTIMISM THAT ON THINGS LIKE CRYPTO THE TRUMP FOLKS WILL REVERSE THE HOSTILITY THAT THE BIDEN ADMINISTRATION BROUGHT TO THE INDUSTRY. THERE'S A LOT OF OPTIMISM THAT THE ARTIFICIAL INTELLIGENCE EXECUTIVE ORDER WILL BE OVERTURNED WITH A MODE OF -- LET'S BEAT CHINA AND OTHER COUNTRIES ON TECHNOLOGY. BUT A LOT OF DEBATES ARE UP FOR GRABS, LIKE H-1B VISAS AND ELEMENTS OF THE REPUBLICAN COALITION AGAINST EACH OTHER. WE WILL SEE HOW THOSE UNFOLD. KATIE: ADAM, GREAT TO GET SOME TIME WITH YOU THERE FROM THE CHAMBER OF PROGRESS.
A PLATFORM USED TO PROCURE TIM: TURO'S SAFETY TEAM SCRAMBLE TO RETURN TO WORK IN LAS VEGAS AND PORTLAND WHERE IT WAS REVEALED THAT THE ATTACKERS USED THAT CAR RENTAL PLATFORM TO PROCURE THEIR VEHICLES. I THINK A LOT OF PEOPLE WATCHING THESE INTENT -- THESE ATTACKS OVER THE LAST COUPLE OF DAYS, THIS IS THE FIRST TIME THEY HEARD ABOUT TURO. I'VE BEEN DESCRIBING IT AS THE AIRBNB OF VEHICLE RENTALS. >> THAT'S THE PERFECT WAY TO DESCRIBE IT, PEOPLE CHOOSING TO RENT THEIR OWN VEHICLES WHEN AND HOW AND AT WHAT PRICE THEY CHOOSE, MAKING IT DIFFERENT FROM A CAR RENTAL FLEET, WHERE CAR RENTAL SERVICES OWN THE VEHICLE. IT'S INHERENTLY A DIFFERENT LEVEL OF LIABILITY. KATIE:
I HAD ALSO NOT HEARD ABOUT TURO, BUT THIS COMPANY WAS AN IV A CANDIDATE FOR A A WHILE AND IT WAS INTERESTING TO SEE IN THEIR GO PUBLIC PAPERWORK THEY NOTED THAT THEFT, VEHICLE DAMAGE, AND OTHER SAFETY AND SECURITY ISSUES COULD HARM THE REPUTATION AND IT SEEMS LIKE THAT'S WHAT WE SAW. DANA: AND I DON'T THINK THAT THESE ARE THE INCIDENTS THEY HAD IN MIND, BUT YES, IT IS PEOPLE RENTING EACH OTHER'S VEHICLES AND AS TIM SAID, IT'S A SIMILAR RISK AS TO AIRBNB, SOMEONE COULD TRASH HER PROPERTY, WORK COULD GET OUT, AND TO THE EXTENT THAT THE SERVICE GROWS THROUGH WORD-OF-MOUTH, IT CAN SOUR THROUGH WORD-OF-MOUTH. TIM: QUESTIONS ABOUT BACKGROUND CHECKS ARE COMING OUT NOW GIVEN THE VEHICLES USED BY THESE FOLKS WHO ENDED UP CAUSING LOSS OF LIFE, THEIR OWN OR OTHERS.
THE THING IS, THEY DON'T DO BACKGROUND CHECKS WITH THE NORMAL RENTAL CAR COMPANY, I DON'T THINK? I DON'T KNOW IF THAT IS NECESSARILY APPLES TO APPLES HERE. DANA: WHAT THE COMPANY SAID PUBLICLY IS THAT THE CRIMINALS FROM BOTH ATTACKS DIDN'T HAVE RECORDS THAT WOULD SHOW UP IN EITHER ATTACK BUT OUR TEAM IS VERY INTERESTED TO FIND OUT HOW THOSE CHECKS WORK AT TURO. LIKE SO MANY ALGORITHMS OUT THERE, THIS ALGORITHM SEEMS PRETTY NEBULOUS. SEEMS TO BE DOZENS OF DIFFERENT DATA POINTS CHECK VERY QUICKLY, EVEN BY THEIR OWN ADMISSION IN REGULATORY FILINGS. MOST USERS ARE APPROVED WITHIN SECONDS. HOW AND BASED ON WHAT CRITERIA?
WE ARE TRYING TO FIND THAT OUT AS WELL. KATIE: DANA, LOOKING FORWARD TO MORE REPORTING ON THAT FROM YOU AND YOUR TEAM. COMING UP, THE STATE OF IMMIGRATION OF H-1B VISAS UNDER THE NEW ADMINISTRATION WITH THE ERICKSON ADMIT -- THE ERICKSON GROUP.
KATIE: "BLOOMBERG TECHNOLOGY WELCOME BACK TO," I'M KATIE GREIFELD. TIM: I'M TIM STENOVEC, WE ARE BOTH IN NEW YORK CITY. KATIE: CHECKING ON THE MARKETS, GREEN ON THE SCREEN, A NICE TURNAROUND FROM YESTERDAY'S CLOSE. THE NASDAQ 100 IS UP BY 1.2 PERCENT RIGHT NOW AND A LOT OF THE GAINS ARE BEING LED BY NVIDIA HAVING A GOOD DAY, PULLING THEIR BOOK. BROAD BREATH IN THE TECHNOLOGY SECTOR OVERALL. TAKING A LOOK AT THE RISK
APPETITE IN BITCOIN RIGHT NOW, THEY ARE HIRED TO ATTUNE OF .9% AND WE ARE STILL BELOW $100,000 FOR COIN, BUT WE MAY GET BACK THERE, EVEN TODAY, GIVEN THE VOLATILITY. RIVIAN, OF COURSE, ONE OF THEIR BIG STORIES THIS MORNING, THEY WERE OUT WITH FOURTH-QUARTER PRODUCTION NUMBERS, BEATING ESTIMATES WITH A PRODUCTION OF 12,700 VEHICLES AND AN ESTIMATE FOR 11,400. YOU ARE SEEING OF COURSE THOSE SHARES BEING REWARDED IN A BIG WAY RIGHT NOW, UP TO 1.6%. TESLA GETTING IN ON THE ACTION. REMEMBER THE DISAPPOINTMENT WE SAW WITH FOURTH-QUARTER DELIVERIES YESTERDAY? A DISTANT MEMORY, THOSE SHARES ARE UP 4.6% RIGHT NOW.
TIM: CFRA READ -- RETHINKING THE SELF ON RIVIAN, TRADING AT 16 RIGHT NOW. HEY, LET'S GET ON OVER TO TECH WITH RISING GLOBAL TRADE TENSIONS, CHINA PLANNING TOUGHER SCRUTINY ON EXPORTS OF TECHNOLOGY TO MAKE BATTERY MATERIALS AS BEIJING LOOKS TO PROTECT THEIR GRIP ON THE CRUCIAL SUPPLY CHAIN ACCORDING TO A NOTICE ON PUBLIC OPINION FROM THE MINISTRY OF COMMERCE ON THURSDAY. MIKE SHEPARD JOINS US FOR MORE. WHEN IT COMES TO RISING TRADE TENSIONS, TARIFFS AND PROTECTIONISM, IT CERTAINLY IS A GAME THE TWO CAN PLAY. HOW MUCH LEVERAGE DOES CHINA HAVE WHEN IT COMES TO EXPORTS OF THESE CRITICAL MATERIALS? MIKE: IT MATTERS BECAUSE THESE ARE THE ESSENTIAL INGREDIENTS TO A LOT OF THINGS. THEY ARE FOCUSED ON WHAT IS GOING INTO THE BATTERIES THAT WILL BE ESSENTIALLY CRITICAL TO POWERING THIS NEXT GENERATION OF ELECTRIC VEHICLES NOT ONLY HERE IN THE U.S., BUT ELSEWHERE AROUND THE WORLD.
THIS IS A FIELD, AND INDUSTRY, A SECTOR THAT CHINA HAS DEVELOPED A STRONG ADVANTAGE IN, DEVELOPING THAT TECHNOLOGY NEEDED TO REFINE THE CHEMICALS USED IN MAKING A CAR BATTERY, YOU KNOW, THE KIND THAT YOU WOULD SEE IN AN ELECTRIC VEHICLE ON OUR STREETS. IT HAS ALSO BEEN BEHIND THE RISE OF THE ELECTRIC VEHICLE MAKERS THEY HAVE, NOTICEABLY BYD, WHICH HAS EMERGED AS A GLOBAL LEADER. THIS IS AN AREA WHERE THEY CAN SAY -- WE ARE GOING TO TRY TO FENCE YOU OFF TO TRY TO PROTECT OUR ADVANTAGE. IN TURN, THE U.S. HAS SEEN RISK COMING FROM CARMAKERS LIKE BYD.
EARLIER THIS YEAR THE BIDEN ADMINISTRATION IMPOSED STEVE TARIFFS ON IMPORTS INTO THE U.S. OF CHINESE ELECTRIC VEHICLES. REALLY DESIGNED TO KEEP THEM OUT OF THIS MARKET, TO AVOID UNDERCUTTING THE EFFORTS TO GET DOMESTIC CARMAKERS HERE TO DEVELOP EV'S OF THEIR OWN, WITH ADVANCED TECHNOLOGY OF THEIR OWN. KATIE: WE ARE TALKING MORE THAN TWO WEEKS BEFORE THE INAUGURATION OF THE SECOND TRUMP TERM. WHAT IS THE MOOD MUSIC WHEN IT COMES TO THE SECOND TRUMP ADMINISTRATION AND CHINA? BEING HAWKISH ON CHINA IS A BIPARTISAN VIBE, BUT WHAT WOULD YOU IMAGINE THE TRUMP ADMINISTRATION'S RESPONSE WOULD BE TO ACTIONS LIKE THIS? MIKE: IT'S TIME TO PULL BACK THE LENS AND SEE THIS IN THE BROADER CONTEXT OF THE U.S.
CHINA RELATIONSHIP ON TECHNOLOGY. THE BIDEN ADMINISTRATION HAS BEEN IMPOSING RESTRICTIONS ON A LOT OF SENSITIVE TECHNOLOGY, INCLUDING EXPORTS OF ADVANCED SEMICONDUCTOR MAKING EQUIPMENT AND HIGH-BANDWIDTH MEMORY CHIPS, TWO OF THE MOST NOTABLE MOVES MADE BY THE U.S. IN RECENT MONTHS. THOSE ARE DESIGNED TO UNDERCUT THE ABILITY OF BEIJING TO STOKE A SEMICONDUCTOR MANUFACTURING BASE OF ITS OWN AT AN ADVANCED LEVEL, ADVANCED ENOUGH TO DEVELOP ARTIFICIAL INTELLIGENCE THAT WOULD HELP THEIR MILITARY. THAT IS AN ADVANTAGE THE U.S. DOESN'T WANT TO SEE DEVELOP IN
BEIJING. CERTAINLY, THE TRUMP ADMINISTRATION WILL NOT ALTER COURSE ON THAT. WE WOULD EXPECT TO SEE THE TRUMP ADMINISTRATION NOT ONLY EMBRACED CERTAIN TYPES OF EXPORT CONTROLS APPLIED BY THE BIDEN ADMINISTRATION, BUT PERHAPS TRY TO EXPAND THEM AND LOOK FOR WAYS TO RETALIATE AS WELL, AND TRY TO MAYBE FOSTER SOME DOMESTIC INVESTMENT IN THESE AREAS AS WELL. KATIE: MIKE, GREAT PERSPECTIVE AS ALWAYS. THAT WAS MIKE SHEPPARD, JOINING US FROM WASHINGTON. LET'S KEEP THE CONVERSATION GOING. ANOTHER STORY WE ARE KEEPING AN
EYE ON IS THE FUTURE OF H-1B VISAS UNDER THE NEW ADMINISTRATION. HERE IS FORMER REPRESENTATIVE DENVER RIGGLEMAN WEIGHING IN ON THE ELON MUSK INFLUENCE ON THE MATTER. HE SPOKE WITH JOE MATHIEU EARLIER THIS WEEK. >> I WOULD HAVE LUNCH WITH HIM TO TELL HIM WHAT I THOUGHT. >> WHAT'S GOING ON WITH HIM HERE? WE ARE ALREADY SEEING A BREAKDOWN OVER THE H-1B SITUATION. THE MACA VERSUS MUSK SITUATION SEEMS TENUOUS.
WILL HE STILL HAVE THE PRESIDENCY OR A YEAR FROM NOW? >> NO, NO. WHAT'S INTERESTING ABOUT THIS IS HE'S GOING UP AGAINST SOME REALLY BIG PACS ON THE FAR RIGHT. FOR ME, I'M A SUPPORTER BASED ON OUR DISTRICT BEING VERY RURAL WITH A LOT OF TECHNOLOGY IN THE COMMONWEALTH. KATIE: LET'S BRING IN THE ERICKSON IMMIGRATION GROUP PARTNER, HIBA ANVER. IT'S INTERESTING, AFTER YOU SAW THE ELON MUSK COMMENTS, YOU HAD DONALD TRUMP FALL IN LINE INVOICES ON SUPPORT FOR H-1B VISAS.
IT WILL BE INTERESTING TO SEE IF HE STICKS TO THAT VIEW AS WE GET DEEPER INTO HIS ADMINISTRATION. GIVE US SOME CONTEXT. WE TALK ABOUT H-1B VISAS IN THE CONTEXT OF THE TECH INDUSTRY ALL THE TIME.
WHAT ROLE DO THEY PLAY, THOUGH? HIBA: THEY ACTUALLY PLAY A VERY CRITICAL ROLE. AMERICAN CAN COME -- AMERICAN COMPANIES OF THE MOST SUCCESSFUL IN THE WORLD IN A VARIETY OF INDUSTRIES AND SECTORS AND A PART OF THEIR SUCCESS IS ATTRIBUTED TO THEIR ABILITY TO HIRE THE BEST AND BRIGHTEST FROM AROUND THE WORLD. THE H ONE OF THE WAYS THAT COMPANIES ARE ABLE TO HIRE AND RETAIN TALENT FROM AROUND THE WORLD AND REMAIN COMPETITIVE AND GLOBAL LEADERS IN INDUSTRIES RANGING FROM TECHNOLOGY TO SEMI CONDUCTORS, AI AND THE FINANCIAL INDUSTRY, A VARIETY OF INDUSTRIES. TIM:
WE HAVE THE FIRST TRUMP ADMINISTRATION TO LOOK BACK TO FOR DATA, FOR CONTEXT, AND YOU WERE KIND ENOUGH TO SHARE THESE NUMBERS WITH US. IT WAS 6% BEFORE HE TOOK OFFICE, THEN IT INCREASED TO AN ALL-TIME HIGH OF 24% IN 2018, IMMEDIATELY DROPPING DOWN TO 24% IN THE BIDEN ADMINISTRATION. WILL THAT HAPPEN AGAIN, OR WILL IT BE DIFFERENT THIS TIME GIVEN THAT ELON MUSK HAS THE YEAR OF THE PRESIDENT AND HE IS SO SUPPORTIVE OF THIS TYPE OF VISA? HIBA: I THINK IT REMAINS TO BE SEEN IF THIS SECOND TRUMP ADMINISTRATION WILL BE IN ANY WAY DIFFERENT. FOLKS IN THE INDUSTRY ARE WATCHING THE WAY THAT IMMIGRATION RESTRICTION LEADERS AND THE TRUMP ADMINISTRATION RECONCILE GIVEN HOW CLOSE SOME OF THEM ARE TO TRUMP.
BUT IF WE HAVE -- BASICALLY, WHAT WE HAVE TO GO ON IS WHAT HAPPENED DURING THE FIRST TRUMP ADMINISTRATION INTO YOUR POINT, DENIAL RATES INCREASED TO AN ALL-TIME HIGH WITH PROCESSING TIMES INCREASING. IT WAS JUST MORE INEFFICIENT TO -- INEFFICIENT AND DIFFICULT TO OBTAIN THE SAME VISAS. WHAT A LOT OF US IN THE INDUSTRY ARE WATCHING IS TO SEE IF THERE IS GOING TO BE A REPEAT OF THAT THE SECOND TIME AROUND. TIM: DO YOU BELIEVE THAT IN A SHORT AMOUNT OF TIME THE U.S. WILL BE ABLE TO PUT INFRASTRUCTURE IN PLACE TO ACTUALLY TRAIN AMERICANS TO DO THIS TYPE OF WORK? WHERE DID THAT SHIP SAIL? HIBA: WHAT A LOT OF PEOPLE DON'T REALIZE IS THAT THE PROGRAM ITSELF CONTAINS PROTECTIONS DESIGNED JUST FOR THAT. THE H-1B VISA PROGRAM HAS
PROTECTIONS DESIGNED TO ENSURE THAT IF A COMPANY IS GOING TO HIRE A FOREIGN WORKER, NO HARM IS COMING TO A U.S. WORKER. THERE ARE CERTAIN FEES THAT NEED TO BE PAID TO THE GOVERNMENT TO ACCOMPANY THE FILING. THE PURPOSE OF SOME OF THE FEES IS TO BE ABLE TO FUND THE TRAINING OF AMERICAN WORKERS. THE INVESTMENT IN TRAINING IN THE U.S. WORKFORCE IS ONGOING AND MOST WOULD BE SURPRISED TO LEARN THAT THE H-1B VISA PETITION PLAYS A ROLE IN THAT. KATIE: YOU HAVE A LOT OF BIG TECH LEADER IS COMING TO MAR-A-LAGO AND KISSING THE RING WHEN IT COMES TO DONALD TRUMP. OF COURSE, HE IS ALSO
SURROUNDED BY THE LIKES OF ELON MUSK AND OTHER BIG SUPPORTERS OF THE H VISA PROCESS. THEY WERE TALKING ABOUT THE FACT THAT FOR NOW DONALD TRUMP SEEMS TO SUPPORT THE INITIATIVE, DESPITE WHAT WE SAW IN THE FIRST TERM. WHAT IS YOUR OUTLOOK FOR WHETHER THAT REMAINS THE CASE? HIBA: I'M GOING TO BE WATCHING OUT FOR A REPEAT OF THE FIRST TRUMP ADMINISTRATION, WE ARE ENSURING THAT COMPANIES WE WORK WITH ARE PROPERLY PREPARED FOR THE SAME THINGS HAPPENING A SECOND TIME AROUND. I HONESTLY THINK IT REMAINS TO BE SEEN, THE WAY THESE TECH LEADERS CLOSE TO HIM RECONCILE WITH THE FOLKS WHO HAVE A DIFFERENT STANCE WHEN IT COMES TO LEGAL IMMIGRATION. I AM, OF COURSE, OPTIMISTIC AND HOPING THAT IT ISN'T GOING TO BE AN EXACT REPEAT. IF WE TAKE A STEP BACK, FOLKS WILL REALIZE THAT THIS IS AN ECONOMIC WIN-WIN ON BOTH SIDES.
IN ORDER FOR OUR COMPANIES TO BE ABLE TO HIRE AND BE GLOBAL LEADERS, WE HAVE TO BE ABLE TO HIRE FROM AROUND THE WORLD AND THIS VISA IS AN IMPORTANT WAY THAT WE DO THAT. TIM: ERICKSON IMMIGRATION GROUP PARTNER HIBA ANVER, THANKS FOR JOINING US. COMING UP, WE ARE JOINED BY KATHY FROM SOUTH ISLE VENTURES HERE ARE SOME OF HER APARTMENT PODCAST. YOU CAN FIND IT ON, SPOTIFY, AND IHEART RADIO.
THIS IS BLOOMBERG. KATIE: WELL, THE RACE TO AI ENHANCED HUMAN PRODUCTIVITY IS ON. THE COMING YEAR WILL FEATURE AI COMPANIES GRAPPLING WITH PUSHING OUT SOFTWARE THAT CAN DO MORE WITH LESS HELP FROM HUMANS IN FIGURING OUT HOW TO TRAIN THE MOST POWERFUL MODELS. RACHEL HAS MORE ON THE MOST -- ON THE AI PREDICTIONS FOR 2000 25. HAPPY NEW YEAR. WHAT CAN WE EXPECT FROM THE WORLD OF AI IN THE COMING YEAR? RACHEL: A COUPLE OF THINGS. A LOT OF FOCUS ON SO-CALLED AGENTS, SYSTEMS THAT USE AI TO ACCOMPLISH TASKS WITH LITTLE OR NO HELP FROM HUMANS. AI SOFTWARE THAT CAN GO OUT AND
DO SOMETHING LIKE SAY HELP YOU PLAN A TRIP OR HELP YOU TO PROCESS CERTAIN KINDS OF INFORMATION MORE EFFICIENTLY IN A MORE COMPLICATED WAY THAN JUST LOOKING OVER DOCUMENTS. A LOT OF PEOPLE ARE TALKING ABOUT THAT. ONE OF THE OTHER THINGS WE ARE GOING TO BE SEEING OR HEARING PEOPLE TALK MORE ABOUT IS DATA. DATA VERY CLEARLY BECAME AN ISSUE FOR A LOT OF COMPANIES THIS YEAR. NOT HAVING MORE DATA IF THEY WANT TO TRAIN MORE POWERFUL SYSTEMS THAN WHAT THEY HAVE ALREADY BUILT. IT WILL BE INTERESTING TO SEE HOW THESE COMPANIES FIND NEW SOURCES OF DATA IF THEY LOOK AT SYNTHETIC DATA.
IN SOME CASES DATE -- DATED GENERATED BY AI SYSTEMS THEMSELVES. GENAI HAS BEEN A DOMINANT FORCE IN 2020 FOUR, AS WELL AS VC, AND A MIGHT REMAIN THAT WAY ACCORDING TO SAPPHIRE VENTURES. KATHY CAO IS A PARTNER THERE ENJOINS US TO SHARE SOME OF HER FIRM'S PREDICTIONS. SOMETHING RACHEL SAID, THIS BEING THE YEAR WHERE WE SEE MORE AND MORE AI AGENTS. YOUR PREDICTIONS, ONE OF THEM, IS THAT AGENTS WILL BEGIN TO DELIVER ON TYPE. I GOTTA TELL YOU, KATIE
GREIFELD IS SITTING NEXT TO ME AND SHE'S NOT IMPRESSED WITH AI AGENTS RIGHT NOW. IS SHE GOING TO BE THIS YEAR? >> THAT'S A GREAT QUESTION. I AGREE WITH RACHEL, THESE AGENTS ARE COMING ONTO THE SCENE IN A BIG WAY.
IN MANY WAYS IT'S A NATURAL EVOLUTION OF WHAT WE SAW WITH AI COPILOTS AND CHATBOTS. ANOTHER EXAMPLE WOULD BE WHEREAS AI AGENTS ARE ABLE TO AUTONOMOUSLY EXECUTE ACTIONS OR ENTIRE WORKFLOWS, CHATBOTS WERE REALLY MORE Q AND A. WHERE I GET REALLY EXCITED IS THE FACT THAT IF WE CAN AUTOMATE ENTIRE WORKFLOWS, IT FREES UP SO MUCH HUMAN CAPACITY TO DO THE MORE CREATIVE AND STRATEGIC WORK.
THAT SAID, I AGREE WITH KATIE, RIGHT? A LOT OF THE CHALLENGES WITH WIDESPREAD ADOPTION AND IMPLEMENTATION OF AGENTS WILL BE WHAT I CALL THE BLAST MILE -- LAST MILE PROBLEMS. THE GOVERNANCE, THE PRIVACY, THE PROTECTIONS. THE DEVIL IS IN THE DETAILS AND IT HAS YET TO BE SEEN. TIM: AGENTS IS ONE OF YOUR PREDICTIONS, BUT WHAT ABOUT AI GENERATED VIDEO? 2024 WAS THE YEAR THAT WE SAW A WIDER RELEASE OF SORA FROM OPENAI, I THINK A LOT OF PEOPLE WERE PRETTY IMPRESSED BY THAT. HOW ARE WE GOING TO SEE AI GENERATED VIDEO THIS YEAR? >> A LOT OF MULTIMODAL, MORE VIDEO WITH MORE VOICE.
THESE MODELS ARE DEVELOPING EXTREMELY RAPIDLY. I DON'T KNOW IF YOU HAVE SEEN SOME OF THE RECENTLY GENERATED VIDEOS, THEY ARE INCREDIBLE. THEY ARE STARTING TO SEE MORE LIFELIKE. THE LATENCY IS BEING REDUCED. SIMILAR TO VOICE. I THINK WE WILL SEE MUCH MORE WIDESPREAD ADOPTION AS INDIVIDUAL VIDEO AND VOICE APPLICATIONS WITH FULL MULTIMODAL APPLICATIONS MEANING THERE WILL BE VOICE, TEXT, VIDEO, AND IMAGES COMBINED INTO ONE. KATIE: I'VE SEEN SOME OF THOSE VIDEOS,
THEY ARE VERY CREEPY AND SOMEWHAT REALISTIC. YOU CAN FIND A BUNCH ON TWITTER RIGHT NOW. I WANT TO TALK MORE ABOUT HOW COMPANIES MIGHT USE IT IN THE YEAR AHEAD. SPEAKING TO A LOT OF INVESTORS, THEY WANT TO STAY IN THE HARDWARE SPACE INVESTING IN CHIPMAKERS BECAUSE THEY ARE NOT CLEAR HOW COMPANIES WILL BE USING AI TO, SAY, BOOST PRODUCTIVITY.
DO WE GET FURTHER ALONG IN THAT INVESTMENT TIMELINE? >> LET'S TALK ABOUT WHAT HAPPENED IN 24 TO SET THE STAGE FOR WHAT WE THINK MIGHT HAPPEN IN 25. IN MY VIEW, 24 WAS A YEAR WHERE AI REALLY WENT MAINSTREAM. 92% OF FORTUNE 500 ADOPTED GENAI SOLUTIONS INTERNALLY AND SPENT AROUND $14 BILLION ON THESE SOLUTIONS. MORE IMPORTANTLY, MAJOR COMPANIES -- THINK WALMART, JPMORGAN CHASE, MICROSOFT, GOOGLE, THEY ALL ANNOUNCED IN THEIR PUBLIC EARNINGS CALLS THAT THEY HAD HAD SIGNIFICANT SUCCESS AND MEASURABLE ROI USING GENAI PROJECTS INTERNALLY. THAT GIVES ME A LOT OF HOPE AND CONFIDENCE THAT THEY WILL CONTINUE TO EXPAND INTO 2025. THE BIG QUESTION IS -- CAN THE HYPE TURN INTO ACTUAL PROOF IN A WIDESCALE MANNER IN 2025? IN ORDER TO SEE THAT WE WILL HAVE TO SEE MORE ADOPTION AMONGST THE EMPLOYEES AT A COMPANY, NOT JUST CERTAIN FUNCTIONS, AND WE WOULD HAVE TO SEE MORE GUIDELINES ON HOW WE MEASURE ROI. KATIE:
GOOD TO SPEAK WITH YOU. LOOKING FORWARD TO CHECKING IN AS WE GET DEEPER INTO 2025. COMING UP, PARAMOUNT AND CY VANCE FIRE BACK AT CRITICS OF THEIR PENDING MERGER.
DETAILS COMING NEXT. TIM: LET'S TALK MEDIA DEALS. PARAMOUNT AND CY VANCE RESPONDED TO CRITICS ON THE PENDING MERGER, ARGUING THAT THE CRITICAL FILINGS ARE DEFECTIVE AND LACK MERIT, SHOWING THAT CRITICS FAIL TO SHOW HOW THEY WILL BE HARMED BY THE DEAL AND THAT SOME OF THE PROPOSED MEASURES ARE UNCONSTITUTIONAL. PARAMOUNT AGREED TO MERGE WITH SKY DANCE BACK IN JULY AND IT WOULD MAKE DAVID ELLISON THE CONTROLLING SHAREHOLDER AND CEO OF PARAMOUNT.
TAKING A WIDER LOOK INTO THE WORLD OF ENTERTAINMENT, AND THE BOTTS OFFICE, FOR THE COMING YEAR WITH CHRIS PALMERI. I WANT TO TALK ABOUT THE BOTS OFFICE IN WHAT'S HAPPENING WITH PARAMOUNT AND SKY DANCE. THIS DEAL REALLY, AS YOU KNOW, JUST NEVER ENDS. BUT, SPECIFICALLY, DO CRITICS
HAVE A PROBLEM WITH WHEN IT COMES TO THIS PENDING MERGER? >> THERE WAS A SMATTERING OF OPPONENTS. MOST NOTABLY IS A GROUP CHALLENGING THEM AROUND PARTISAN POLITICAL GROUPS, HENCE -- IT TENDS TO SIDE WITH CONSERVATIVES IN SAYING THAT THE BIG MEDIA IS BIASED, SAYING THAT CBS NEWS, YOU KNOW, NEEDS TO SPEAK TO EVERYBODY IN THE COUNTRY. AND THAT WE ACTUALLY GOT A CONCILIATORY SORT OF STATEMENT FROM THEM TODAY SAYING THAT THEY LIKED WHAT THEY HEARD IN THE FILING YESTERDAY TO THE FCC. SO, THAT WAS ONE OF THE HURDLES. WE WILL STILL LIKELY HEAR MORE
FROM THE FCC, BRENDAN MCCARTY, THE INCOMING CHAIRMAN, IS OUTSPOKEN ON THIS ISSUE OF FAIRNESS IN THE MEDIA. THAT WILL BE SORT OF THE FINAL HURDLE FOR PARAMOUNT. KATIE: TBD WHAT HAPPENS THERE. PARAMOUNT SHARES FELL 29% LAST YEAR AND HAVEN'T POSTED A POSITIVE YEAR SINCE 2016.
SO, SOME GOOD NEWS IS NEEDED FOR THAT COMPANY, SO WE WILL SEE. TALKING ABOUT THE VOX OFFICE WHILE WE HAVE YOU, THERE IS FRUSTRATION OUT THERE THAT YOU ARE WELL FAMILIAR WITH, THAT IT IS NOTHING ORIGINAL ANYMORE, JUST ALL SEQUELS AND THE IMAGINATIONS OF OLD MOVIES. ARE WE EXPECTING MORE OF THE SAME IN 2025? >> YES AND NO. THERE WILL CERTAINLY BE A LOT OF SEQUELS. MISSION IMPOSSIBLE, CAPTAIN AMERICA, AVATAR. THERE ARE A BUNCH OF MOVIES COMING OUT, F1, FOR EXAMPLE, THAT WON'T RESONATE UNTIL YOU START TO SEE THE ADS, BUT ORIGINAL MOVIES FROM ALL TOUR DIRECTORS WHO MAY STAND OUT.
THAT IS WHY THE ANALYSTS THINK THAT THIS YEAR WILL BE BETTER THAN LAST YEAR. STILL NOT BACK TO PRE-PANDEMIC LEVELS, BUT YOU KNOW, POTENTIALLY THE BEST YEAR FOR THE VOX OFFICE SINCE PANDEMIC. TIM: YOU SAY STILL NOT BACK TO. DO WE EVER GET BACK TO PRE-PANDEMIC LATERAL DUST LEVELS? WHAT ARE ANALYSTS SAYING? >> ACTUAL ATTENDANCE NUMBERS ARE WAY DOWN, HALF A NUMBER OF PEOPLE GOING TO THE THEATERS THAT USE TOO. TICKET PRICES ARE UP AND THAT HELPS SOME OF IT, MORE PEOPLE GOING TO THESE BIG SCREENS AND HIGHER PRICED TICKET FORMATS, THAT'S HELPING THE OVERALL VOX OFFICE NUMBER. NO, AMERICANS ARE DEFINITELY NOT GOING TO THE MOVIES LIKE THEY USED TO. THERE IS JUST SO MUCH
ALTERNATIVES ONLINE AND IN MANY CASES, THOSE MOVIES COME ONLINE WITHIN A MATTER OF WEEKS. KATIE: ALL RIGHT, CHRIS, GOT TO LEAVE IT THERE. TIM: DO YOU EVER GO TO THE MOVIES? KATIE: I WENT ON CHRISTMAS DAY TO SEE THE BOB DYLAN ONE. I GUESS THAT IS.
BOB DYLAN HAS BEEN ALIVE FOR A WHILE, BUT IT IS NEW CONTENT. IN ANY CASE, THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." NEXT WEEK, HEADING OUT TO CES IN LAS VEGAS AND TUNE IN FOR CONVERSATIONS WITH THE BIGGEST NAMES IN AI, CHIPS, AND MORE. TIM: DON'T FORGET TO CHECK OUT OUR PODCAST ON APPLE, THE TERMINAL, SPOTIFY, AND IHEART RADIO. THIS IS BLOOMBERG.
2025-01-05 21:29
