Micron Plunges On Weakness, Musk Wields Political Power | 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. CAROLINE: LIVE FROM NEW YORK THIS IS BLOOMBERG TECHNOLOGY. MACRON PLUMMETS AFTER REPORTING
EARNINGS AND AI COULD NOT MAKE UP FOR THE SMART PHONE AND PC CHEAP WEAKNESS BUT ELON MUSK WILL -- WIELDING POLITICAL POWER AS A U.S. PERSON GOVERNMENT SHUTDOWN. APPLE HALTS ITS PLANS FOR AN IPHONE HARDWARE SUBSCRIPTION SERVICE. THIS END MUCH MORE ON APPLE NEWS LATER THIS HOUR. FIRST WE CHECK IN ON ONE KEY STOCK IT IS DOWN MORE THAN 70% HAVING ITS WORST DAY SINCE MARCH OF 2020. MICRON REALLY SLUMPING ON THE BACK OF ITS NUMBERS.
THE Y AND THE HOW AS YOU SEE IT ERADICATES MOST OF ITS GAINS YEAR-TO-DATE. WE GO TO ANALYST JAKE SILVERMAN FIRST WHOSE REPORT LAYS OUT THE OUTLOOK MISSED BY 12%. WE WERE ALL REALLY EXCITED ABOUT HIGH-BANDWIDTH MEMORY FOR AI APPLICATIONS HEARD >> THERE WAS DEFINITELY AN INVENTORY CRUNCH TO SOME EXTENT. THIS WAS STARTING TO HAPPEN EARLIER THIS YEAR. WE WERE SEEING THIS IN JUNE AND JULY AND AUGUST AND THE REASON PRIMARILY WAS TO BUILD INVENTORY AHEAD OF PRICE INCREASES THAT DID OCCUR BUT NOW ARE STARTING TO IMPACT THE COMPANY'S DEMAND. CAROLINE: REALLY TRYING TO SPELL OUT THE SECOND HALF IS GOING TO TURN AROUND.
MAYBE EVEN A GROWTH IN THE PC MARKET BUT WHAT SPURS THAT? JAKE: THERE IS TYPICAL SEASONAL DEMAND. SEASONAL GROWTH IN THE SECOND HALF REGARDLESS THERE IS ALSO THE OPPORTUNITY WHERE THERE IS CONTENT EXPANSION WITHIN AI PCS, SMARTPHONES. THERE IS AN OPPORTUNITY THERE WHETHER OR NOT IT OCCURS I THINK STILL REMAINS TO BE SEEN BUT THERE IS STILL OPTIMISM THERE CAN BE GROWTH IN THE SECOND HALF VERSUS THE FIRST BRITON CAROLINE: AS WE TRY TO GET AROUND OUR HEAD AROUND THE DEMAND FOR AI. IN THE DATA CENTER IT IS THERE. 400% GROWTH IN TERMS OF THE AI DEMAND AND SALES. WHY IS THAT NOT BRINGING UP ENOUGH REVENUE YET? JAKE: THEY HAVE A NUMBER OF PRODUCTS AFFECTING DATA CENTER SPREAD HIGH-BANDWIDTH MEMORY IS STILL THE MOST NASCENT FOR THEM.
IT IS NOT GENERATING A BULK OF THE GROWTH YET. THEY STILL HAVE OTHER PRODUCTS LIKE HIGH CAPACITY MODULES. CAROLINE: WHAT DO THEY DO? JAKE: THEY ARE FOR SERVERS, A TRADITIONAL COMPUTER WAS A BIT BETTER THAN HAD PREVIOUSLY BEEN ANTICIPATED BUT ON THE OTHER HAND THERE IS ALSO DATA CENTER SSD'S WHICH SEEM TO BE MONITORING WHERE THEY HAD EXPERIENCED SOME TREMENDOUS GROWTH BEFOREHAND AND HAD BEEN BENEFITING A LOT FROM SHARED INSTANCES AS WELL. CAROLINE: JAKE BREAKING DOWN WHAT IS A PRETTY PAINFUL DAY IN HQ IN BOISE, IDAHO. LET'S GO OUT TO AN INVESTOR IN
THE SCENE, 35 MILLION DOLLARS IN ASSETS UNDER MANAGEMENT. KIM, YOUR TAKE ON WHAT IS AN ABSOLUTE PUNISHMENT ON THE STOCK TODAY. KIM: I HAVE BEEN DOING THIS FOR A NUMBER OF YEARS SINCE 1999 AND I WAS A SELL SIDE ANALYST AND BY SIDE ANALYST AND THEN CHIEF INVESTMENT OFFICER MY OWN FIRM.
THAT BEING SAID, THIS IS NOT OUR FIRST DAY OF THIS RODEO. MICRON IN PARTICULAR AND ALL OF THE MEMORY COMPANIES SEEM TO HAVE THIS BOOM BUST CYCLE AND THE BOOM AND BUST CAN BE REALLY CLOSE TO EACH OTHER AS EVIDENCED BY THE PRICE CHART OF MICRON. SO WHAT IS AN INVESTOR TO DO? SOME PEOPLE WOULD LIKE TO BE ABLE TO TRADE THIS. KNOW WHEN TO GO IN LOW, WHERE THE HIGH IS. GOD BLESS YOU ON THAT. WHAT YOU HAVE TO DO IS LOOK AT MICRON AND SAY IT HAS TERRIFIC GROWTH.
THERE ARE VERY FEW PLAYERS IN THIS SPACE, MAYBE SIX OR SEVEN COMPANIES THAT ARE COMPETITORS. AND FOR THE MOST PART, SOMETIMES BAD THINGS LIKE THIS HAPPEN, BUT SOMETIMES GOOD THINGS HAPPEN TOO AND TO BE ABLE TO TRADE AROUND THESE EVENTS WHERE THERE IS A SUDDEN SHORTFALL IN DEMAND BUT IT WILL BE MADE UP, I THINK IT IS MORE OF A BUYING OPPORTUNITY THEN GETTING OUT. THE OTHER THING IS IF YOU LOOK AT THE CHART, SOME PEOPLE BOUGHT IN AT MUCH HIGHER PRICES AND IT COULD BE TAX LOSS SELLING GOING ON THAT'S REALLY DRIVING THE PRICE DOWN TODAY. >> A SEASONALITY ELEMENT TO ALL OF THIS. IF YOU GO TO ANALYST RECOMMENDATIONS A LOT OF PEOPLE CALLED THEIR PRICE TARGETS.
THE OVERALL CONSENSUS FOR PRICE TARGET IS STILL A 135. YOU'VE GOT ROOM TO RUN UP FROM $85. HOW DOES SUNSHADE GET US THERE IN TERMS OF WHAT HE NEEDS TO SIGNAL OUT TO THE MARKET. HOW MUCH CAN HE SAY PUT ASIDE CHINA, PUT ASIDE MY EXPOSURE TO THE CONSUMER I'M ALL IN ON AI? KIM: I THINK HE MADE THE KC IS ALL IN ON AI. THEY HAVE THE PRODUCTS AI WANTS
AND NEEDS. AI FOR MANY REASONS HAS SAVED THIS MARKET. NVIDIA AND META-CERTAINLY HAVE DRIVEN IT. BUT THE REAL ISSUE HERE IS THE AI PEOPLE AREN'T BUYING STUFF AND BUILDING OUT THEIR DATA CENTERS. I DON'T KNOW THAT THAT IS GOING TO STOP IN ANY DEFINABLE TIME.
>> DID YOU GET THAT SORT OF EASING OF ANY ANXIETY WHETHER OR NOT IT WAS CLOSELY HELD OR FAR AWAY BUT WE MIGHT BE AT A PIVOT POINT WHERE THE DEMAND DOES START TO EASE UP. >> SURE. HERE'S WHERE INVESTORS HAVE TO UNDERSTAND. MICRON IS A VERY SMALL WORLD IN WHICH ALL OF ITS CLIENTS ARE EITHER ALL ON OR ALL OFF OR SO IT SEEMS. IF YOU REMEMBER WHEN WE WERE BUILDING OUT REGULAR CLOUD DATA CENTERS, IT IS LUMPY AND WHAT I MEAN BY THAT IS YOU ARE EITHER BUILDING OUT OR YOU ARE NOT. ALL OF A SUDDEN IT CAN STOP AND
WHENEVER SEVERAL COMPANIES THAT HAD BEEN BUILDING OUT DATA CENTER STOP, THE PROVIDERS GET CLOBBERED. THAT IS JUST THE NATURE OF THIS. WE DO NOT KNOW WHEN IT WILL STOP. SO INVESTORS HAVE TO BE AWARE THAT WE ARE NOT GOING TO BE SPENDING IN PERPETUITY TO BUILD OUT AI. THERE WILL BE A DAY WHEN PEOPLE TAKE A PAUSE AND ACTUALLY HAVE TO REAP THE REWARDS OF BUILDING THIS PRODUCT AND HAVING PEOPLE PAY FOR THE SERVICE. >> THESE MEGA CLUSTERS IS NOT A SIGNAL OF US PULLING BACK ANYTIME SOON.
DOES MACRO POLICY, A NEW ADMINISTRATION DAMPEN THE SPIRITS OR ACCELERATE THEM? KIM: IT DOES NOT SEEM SO BECAUSE THE COMPANIES BUILDING THOSE DATA CENTERS HAVE ENOUGH MONEY FOR WHAT THEY ARE DOING NOW. THEY DON'T NEED TO BE ABLE TO SAY IN THE FUTURE I WILL BE IN SOME VERY DEFINABLE TIMELINE I NEED TO GET MY MONEY BACK. SO THEY WILL BE BUILDING THESE THINGS OUT BECAUSE THEY HAVE THE CASH FLOW. AND I'M TALKING TO ABOUT MICROSOFT, GOOGLE AND META-. THEY ARE REGULAR BUSINESSES PROVIDING CAPITAL TO BUILD OUT DATA CENTERS. >> YOU SAID THIS POTENTIALLY COULD BE A BUYING MOMENT FOR MICRON. WHAT ABOUT THE CHIP SPACE MORE
BROADLY. EVERYONE'S BEEN IN ON THIS FOCUS ON SOFTWARE TRADE. >> I THINK IT IS GREAT. AT SOME POINT SOFTWARE HAS TO COME BACK TO WINNING. I USED TO BE A SOFTWARE ENGINEER AND I WOULD LOVE TO BE ABLE TO BUY A GOOD SOFTWARE COMPANY THAT I THINK WILL GROW AGAIN IN PERPETUITY.
I LIKE MONEYMAKING MACHINES. MICROSOFT HAS BEEN THAT ALTHOUGH IT HAS A LULL IN THE 2010 22014 RANGE. SOFTWARE IS GREAT BUT HARDWARE IS WHAT IS DRIVING ME CRAZY RIGHT NOW BECAUSE IT SEEMS THERE IS NO LACK OF DEMAND. I THINK THE SOFTWARE WILL FOLLOW.
A LOT OF PEOPLE ARE MOMENTUM INVESTORS AND I WORRY ABOUT NVIDIA ABOUT THAT BECAUSE BROADCOM IS TAKING A LITTLE AIR OUT OF THE ROOM FOR NVIDIA. CAROLINE: KIM FORREST DAMPING ARE ANIMAL SPIRITS WHEN IT COMES TO SOME OF THE KEY TRADES. WE APPRECIATE IT. WISHING YOU HAPPY HOLIDAYS. THE BIDEN ADMINISTRATION CEMENTED A DEAL TO GIVE SK HYNIX CLOSE TO $460 MILLION IN GRANTS AND 500 MILLION IN LOANS. THIS IS FOR A FACILITY IN INDIANA WHICH WILL FOCUS ON PACKAGING SHIPS -- PACKAGING CHIPS. THE DEAL IS A KEY PART OF U.S.
EFFORTS TO BUILD A DOMESTIC SEMICONDUCTOR SUPPLY CHAIN. ELON MUSK'S INFLUENCE IN WASHINGTON BEING FELT ALREADY AS HE HELPS KILL A STOPGAP FUNDING BILL PAID THIS IS BLOOMBERG TECHNOLOGY. >> A LAST-MINUTE GOVERNMENT FUNDING BILL HAS BEEN SCRAPPED I MIKE JOHNSON AFTER ELON MUSK URGED LAWMAKERS AND PRESIDENT-ELECT TRUMP TO RISK A GOVERNMENT SHUTDOWN.
MIKE SHEPARD JOINS US FOR MORE BREAD IF ANYBODY HAD BEEN DOUBTING THE QUESTIONING THE INFLUENCE OF ELON MUSK THEY PROVE WRONG HERE. >> THOSE DOUBTS WERE ERASED IN RESOUNDING FORM YESTERDAY. IT WAS ALMOST LIKE ON CUE WE SOUGHT ELON MUSK USE THE POWER OF HIS SOCIAL MEDIA PLATFORM TO GIN UP OPPOSITION AND AMPLIFY IT VERY QUICKLY AND WITHIN HOURS PRESIDENT-ELECT TRUMP AND VICE PRESIDENT-ELECT JD VANCE CHIMED IN AND SAID THAT THEY OPPOSE THIS SPENDING DEAL WHICH HAD BEEN NEGOTIATED FOR WEEKS IF NOT MONTHS TO TRY TO AVERT A GOVERNMENT SHUTDOWN BUT WILL COME AS SOON AS SATURDAY MORNING IF LAWMAKERS CAN GET BACK TO THE DRAWING BOARD AND PUT TOGETHER SOMETHING ON THE FLY WHICH LOOKS REALLY UNLIKELY RIGHT NOW. CAROLINE: REPUBLICAN SING THEIR PHONES HAVE BEEN BRINGING OFF THE HOOKS IN THIS CALL TO ARMS TO CALL YOUR LAWMAKERS AND GET IT TAKEN OFF TO SHOW HIS POLITICAL CLOUD. BEHIND THE SCENES HE IS BUILDING A TEAM TAKING EXPERTISE FROM THOSE HE KNOWS ALREADY AND ATTENDING EVERY MEETING THAT SEEMS TO BE GOING ON AT MAR-A-LAGO. MIKE:
WE'VE SEEN ELON MUSK USING HIS BULLY PULPIT OF X TO ALSO GIVE WING TO THIS VENTURE THE DONALD TRUMP APPOINTED HIM AND VIVEK RAMASWAMY TO LEAD. THE DEPARTMENT OF GOVERNMENT EFFICIENCY. KEEP IN MIND IT'S NOT REALLY A DEPARTMENT. IT'S NOT AN AGENCY CREATED BY CONGRESS BUT IT'S GOAL IS TO DO KIND OF WHAT THEY ARE ASKING FOR IN THE SOCIAL MEDIA COMMUNICATIONS YESTERDAY, CUT DOWN THE SIZE OF GOVERNMENT. REDUCE SPENDING ON THE SCOPE OF GOVERNMENT SPENDING AND THIS ENTITY IF YOU WILL, LACK OF A BETTER WORD, IT IS STILL TAKING SHAPE BUT WE DO KNOW THEY ARE HIRING. THERE IS A GREAT SCOOP BY COLLEAGUES YESTERDAY. WE ALREADY KNOW THEY HIRED
ABOUT 10 PEOPLE IN ELON MUSK'S TURN TO AN EXECUTIVE FROM THE BORING COMPANY AND A FORMER TRUMP TEAM -- CHIEF TECHNOLOGY OFFICER AND HIS ADMINISTRATION PRIOR TO LEAD THE HIRING PUSH. THEY ARE LOOKING FOR SOFTWARE ENGINEERS INCLUDING FOLKS WITH ARTIFICIAL INTELLIGENCE EXPERTISE. THE IDEA IS THEY WOULD APPLY THAT TO THE FAST REAMS OF GOVERNMENT DATA TO TRY AND FIGURE OUT WHAT ARE THE EFFICIENCIES THAT CAN BE GAINED. CAROLINE: I WONDER WHERE THAT TALENT COME FROM. HE'S BEEN BUSY HIRING AT X AI. LET'S TALK A LITTLE BIT ABOUT -- TESLA IS IN EARLY TALKS WITH THE CITY OF AUSTIN ABOUT ROLLING OUT A FLEET OF AUTONOMOUS VEHICLES. TESLA EMPLOYEES HAVE BEEN
COMMUNICATING WITH THE TEXAS CITY SINCE AT LEAST MAY TO ESTABLISH SAFETY EXPECTATIONS FOR THE VEHICLES. EMAILS GO ON FURTHER SAYING TESLA HAS NOT FINALIZED ITS DECISION. LET'S STICK ON TESLA, ALL THINGS ELON MUSK AS WELL AND HOW ALL OF THIS IS SET TO CHANGE INTO THE 20 25 PRESIDENT-ELECT TRUMP ADMINISTRATION AND MAYBE WE SEE SOME OF THOSE EV INCENTIVES WOUND DOWN AND POSSIBLY FAST TRACKING AUTONOMOUS DRIVING. YOU USED TO BE ON THE BOARD OF THE 8 -- TV GIANT, AND THEREFORE THIS IS THE PERFECT DIMENSION MENTIONED TO DISCUSS THIS WITH YOU. HOW ARE YOU THINKING EV
LANDSCAPE CHANGES ON JANUARY 20. >> LET'S LOOK AT THE BIG PICTURE FIRST. SOME PEOPLE ARE SAYING EV GROWTH IS SLOWING DOWN, NONSENSE. ONE OUT OF FIVE OF ALL CARS
SOLD GLOBALLY IN 2024 B ELECTRIC OR HYBRID. IT'S JUST MOVING FASTER. 25% YEAR-OVER-YEAR GROWTH, 17 MILLION EV SOLD GLOBALLY. U.S. CANADA SOLID GROWTH ABOUT 12%. CHINA RED-HOT AT 40%. TESLA VERSUS BYD WHO'S GOING TO BE THE GLOBAL LEADER.
THERE IS THIS OTHER ISSUE OF U.S. VERSUS CHINA AND HOW ARE TARIFFS GOING TO AFFECT THIS. THE U.S. HAS ALREADY SLAPPED 100% TARIFFS ON ANY CHINESE CAR SOLD IN THE U.S. BUT THAT'S VIRTUALLY NONE. YOU HAVE TO SAY WHAT IF THE CHINESE SLAPPED 100% TARIFFS ON U.S. CARS OR AUTOMAKERS SELLING CARS. CAROLINE: ISN'T THAT A HIGH RISK EVEN FOR A TESLA.
>> WHEREVER THERE ARE TARIFFS SLAPPED ON TO ONE COUNTRY, YOU HAVE TO EXPECT THE OTHER COUNTRY TO RESPOND. IS IT CARS THAT ARE ALREADY MADE IN THAT COUNTRY OR JUST CARS FROM THE U.S. GOING TO CHINA. THE PUNCHLINE IS THE SAME. THERE'S A LOT MORE U.S. AUTOMAKERS SELLING CARS TO CHINA THAN VICE VERSA. SO THE U.S. NEEDS TO BE CAREFUL ON THIS ONE.
CAROLINE: AND YET WE HAVE SEEN VIBES OR WHETHER IT BE REAL POLITICAL CLOUD DRIVING TESLA SHARE PRICE EVER SINCE THE RESULTS OF THE ELECTION. HOW IS ANY OF THIS CHINA U.S. TENSION BEING PRICED IN? STEVE: I THINK PEOPLE DON'T HAVE THEIR ARMS AROUND IT. YOU HAVE TO LOOK AT THE TESLA SHARE PRICE, 76% GROWTH SINCE JANUARY 1 OF THIS YEAR. THE BIG QUESTION IS CAN TESLA KEEP IT UP AND I THINK IT WILL BE TOUGH WITHOUT GETTING SOME NEW PRODUCTS INTO THE MARKET. TESLA'S GROWTH THIS YEAR AFTER
LOWERING SALES GROWTH IN 2021 AND 2022 51% AND 70%. IT IS DARN NEAR FLAT. TESLA HAS TO GET THIS NEW LOWER-COST CAR INTO THE MARKETS THERE ARE NEW RUMORS OF A NEW SUB $30,000 MODEL CUE COMING SOMETIME IN 2025. BUT WE HAVE TO MAKE SURE THAT IT IS REAL. I THINK 25 WILL BE THE MAKE OR BREAK YEAR. IT COULD SEE NEW HEIGHTS IF YOU COULD SEE THE LOWER-COST CAR COMING OUT IN FULL SELF-DRIVING IN PROVE.
IF THEY DON'T GET A NEW CAR ON THE MARKET, SALES STAY FLAT, THAT WILL SCARE PEOPLE. CAROLINE: AS AN INVESTOR, HOW HARD HAS IT BEEN TO READ THE TEA LEAVES. WE ARE TRYING TO UNDERSTAND AS TO WHETHER THEY WILL JUST CUT COSTS OF THE CURRENT MODELS ON THE MARKET AND GET US TO SOME SORT OF SENSE OF AFFORDABILITY BECAUSE ELON MUSK JUST SIGNALS TIME AND AGAIN HE IS MORE INTERESTED IN THE ROBOTAXI SIDE. STEVE: IT IS INCREDIBLY HARD. SHARE PRICE GOING UP 75% WHEN
SALES ARE FLAT I DON'T THINK ANYBODY HAS EVER SEEN ANYTHING LIKE THAT BEFORE. KIND OF A BET ON FULL SELF-DRIVING AND PROBABLY A BIGGER BET ON HIS RELATIONSHIP WITH PRESIDENT TRUMP, WHAT NO ONE IS TALKING ABOUT IS VERY QUIETLY THE ENERGY AT MR. RISCH AND LOOKS TO BE THE SAVING GRACE. DUTCH ENERGY INDUSTRY SEEMS TO BE THE SAVING GRACE. AUTO COMPANIES AREN'T JUST AUTO
COMPANIES ANYMORE THEY ARE ALSO ENERGY COMPANIES. AND IT'S A WHOLE NEW WORLD. YOU'VE GOT TO PAY ATTENTION. CAROLINE: THIS WEEK WE SAW CALIFORNIA WILL BE FOCUSING IN ON ENSURING EV ADOPTION.
BUT ALSO WE'VE GOT A NEW STORY AROUND THE POTENTIAL UNIONIZATION, LET'S CALL IT SUBTLY BEING DONE WITH RIVIAN REACHING A DEAL TO MAKE UNIONIZATION EASIER AS IT BECOMES A PROFITABLE COMPANY. HOW MUCH DO YOU THINK THAT IS A KEY AREA, THE LABOR SIDE OF THINGS IN THE EV SPACE. STEVE: IT IS HUGE. THIS IS ONE OF THE THINGS THAT PLAGUE THEM FOR YEARS. WHAT IS INTERESTING IS ELON MUSK IS PULLING OUT ALL THE STOPS TO MAKE THINGS GO FASTER, BUT STILL HAS TO DEAL WITH -- HE MAY BE THE WEALTHIEST GUY IN THE WORLD BUT THAT'S NOT GOING TO IMPACT HOW WELL HE WINS THOSE BATTLES. WORKERS POTENTIALLY OUT ON
STRIKE SOON PRECISELY WHEN HE'S TRYING TO CATCH UP FROM Q4 SALES SO WILL BE INTERESTING TO SEE FROM TESLA'S AUTO SALES INCREASE THIS YEAR. THAT IS GOING TO BE A TOUGH ONE TO SELL TO SHAREHOLDERS. CAROLINE: YOU ARE A LONGTIME SHAREHOLDER AND INFLUENTIAL. THANK YOU. COMING UP, APPLE ANNOUNCES ITS PLAN -- CANCELS ITS PLAN FOR AN IPHONE SUBSCRIPTION SERVICE. THOSE STORIES COMING UP NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME FOR TALKING TECH. APPLE HALTED ITS PROJECT
BUILDING OUT AN IPHONE HARDWARE SUBSCRIPTION SERVICE. THE IDEA WAS TO MAKE OWNING AN IPHONE LIKE SUBSCRIBING TO AN APP WITH CONSUMERS PAYING MONTHLY TO GET A NEW PHONE EACH YEAR. IPHONE HAS DISBANDED AND ASSIGNED THEM TO NEW PROJECTS. THE EUROPEAN COMMISSION PUSHING APPLE TO OPEN UP ITS IPHONE SYSTEMS TO RIVALS. COMMISSIONING THEM TO REWORK IOS SO DEVICES LIKE SMART WATCHES AND HEADSETS FROM RIVALS CAN BE MORE COMPATIBLE WITH THE ECOSYSTEM.
APPLE IS CLOSE TO GETTING INDONESIA TO LIVE ITS BAN ON IPHONE 16 SALES AFTER THE COUNTRY'S PRESIDENT GAVE APPROVAL FOR $1 BILLION INVESTMENT FROM THE TECH GIANT. INDONESIA FIRST BAND SALES OF THE FLAGSHIP DEVICE LAST MONTH SAYING APPLE FAILED TO COMPLY WITH DOMESTIC REQUIREMENTS. LET'S GET STUCK INTO THESE STORIES. MARK IS WITH US. JUST TALK TO US ABOUT WHAT'S HAPPENING WITH INDONESIA BECAUSE THIS IS A BIG 180 AND THEY PLAYED HARDBALL, ONE.
>> THAT'S EXACTLY RIGHT. APPLE AND INDONESIA HAVE BEEN GOING BACK AND FORTH FOR WEEKS NOW SINCE THE LAUNCH OF THE IPHONE 16. OBVIOUSLY APPLE WANTS TO GET THE DEVICE IN AS MANY COUNTRIES AS POSSIBLE.
INDONESIA IS IMPORTANT TO APPLE AS A POTENTIAL GROWTH MARKET FOR THEM. A BIG PUSH ACROSS SOUTHEAST ASIA. WITHOUT BEING ABLE TO GET IN ONE OF THE BIGGEST COUNTRIES IS A REALLY BIG DEAL FOR THEM.
THEY HAVE BEEN MAKING DIFFERENT AUTHOR -- OFFERS AND WHAT THEY LANDED ON WAS INVESTING $1 BILLION INTO A FACILITY THERE THAT WOULD PRODUCE ESSENTIALLY 20% OF AIR TAGS READ AIR TAGS ARE THE FUN LITTLE DEVICE WE ARE GEARING UP TO INCLUDE IN OUR LUGGAGE FOR THE HOLIDAYS. IT'S NOT APPLE'S MOST POPULAR PRODUCT BUT IT IS AN IMPORTANT ONE AND SOUNDS LIKE IT WAS ENOUGH TO GET THE JOB DONE, APPLE IS GEARING UP TO RELEASE A NEW AIR TAG IN THE MIDDLE OF NEXT YEAR WITH MUCH BETTER RANGE AND PRIVACY, SO THAT WILL BE A COOL THING FOR INDONESIA TO BE ABLE TO PRODUCE THAT PRODUCT POTENTIALLY. >> LET'S STAY GLOBAL ON THE APPLE FRONT LOOKING AT THE U -- THIS COMPATIBILITY ARGUMENT HAS BEEN GOING ON FOR A WHILE.
ULTIMATELY WHATEVER THE EU FORCES DOESN'T BECOME GLOBAL IN NATURE? MARK: THE EU WANTS TO CRACK OPEN THE IPHONE COMPLETELY. THEY WANT TO ESSENTIALLY MAKE IT ANDROID, SO USERS CAN BE A BUNCH OF COWBOYS AND DO WHAT THEY WANT TO THE DEVICE. APPLE ON THE OTHER HAND WANTS THIS CLOSED ECOSYSTEM WITH THE PRIVATE DESIGN AND A CLEAN USER INTERFACE. THEY DO NOT WANT PEOPLE ABLE TO OPEN UP THEIR DEVICE TO WORK WITH THIRD-PARTY EARBUDS AND WATCHES.
SO THE EU PUT OUT A LIST OF SIMPLE THINGS IT WANTS APPLE TO ADOPT ALLOW THIRD PARTIES TO USE AT A DEEPER LEVEL THINGS LIKE AIRDROP, AIRPLAY VIDEO GAMING FROM THE DEVICE TO OTHER PRODUCTS. THINGS LIKE OPENING UP UNDERLYING WI-FI PROTOCOLS. APPLE IS PUSHING BACK ON THAT BY USING META-AND SHOWCASING 15 DATA CATEGORIES THAT META-WANTS ACCESS TO AND POSITIONING META-IS THIS ANTI-PRIVACY COMPANY AND TRYING TO SHOW CONSUMERS AND THE EUROPEAN COMMISSION REGULATORS OF THE EU WHAT COULD POTENTIALLY HAPPEN TO APPLE DEVICE CUSTOMERS IF THESE PROGRAMS ARE OPENED UP THE WAY THEY WANT THEM TO BE OPENED UP. >> THAT RIVALRY CONTINUING TO PLAY OUT WHEN IT COMES TO POLITICS. THANK YOU SO MUCH. AN OVERHAUL OF THE H1 VISA PROGRAM COULD IMPACT THE TARIFF -- FOCUSING IN ON HOW YOU CAN BE WORKING HERE.
THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I AM CAROLINE HYDE IN NEW YORK. THE NASDAQ 100 BACK IN POSITIVE TERRITORY AFTER YESTERDAY'S BIG SELLOFF. THE FED WILL BE CUTTING POTENTIALLY TWO TIMES NEXT YEAR AND TAKES THE WIND OUT OF THE STOCK MARKET. TODAY, POTENTIALLY BOUNCING BACK. WORRYING ABOUT WHAT DEAL COULD BE DONE TO AVOID A GOVERNMENT SHUTDOWN. THE LIGHTS OF AMAZON AND APPLE
MOVE ON. MACRON, WE SHOW YOU A TWO-DAY CHART TO EMPHASIZE THE DRAMATIC NATURE OF THIS MOVE. THE FORECAST DID NOT LIVE UP TO EXPECTATIONS. THEY DELIVERED AN 84% JUMP IN REVENUE BUT THE FORWARD-LOOKING GUIDANCE WILL NOT BE MADE UP ENOUGH BY THE AI EXUBERANCE.
MICRON REALLY FEELING THE PAIN TODAY. WE WANT TO GO INTO THE STORY THAT IS TIKTOK. TODAY MARKS ONE MONTH UNTIL A POSSIBLE BAN IN THE U.S. WITH THE SUPREME COURT EXPECTING TO HEAR TIKTOK'S CHALLENGE, THE SOCIAL MEDIA APP HAS A GLIMMER OF HOPE.
A BIG VIEWERSHIP ON THIS STORY. AND THE BIG TWIST. >> I THINK A LOT OF PEOPLE ARE LOOKING AT THIS AS A HUGE GAME CHANGER IN THE 11TH HOUR. WE NEED TO CAUTION THAT THIS COULD VERY WELL BE THE SUPREME COURT DOING WHAT THE SUPREME COURT HAS ALWAYS SET OUT TO DO. WE NEED TO REMEMBER THIS IS THE FIRST TIME IF THE BAN GOES THROUGH THAT IT WILL BE THE FIRST TIME A SOCIAL MEDIA APP HAS EVER BEEN BANNED IN THIS COUNTRY. WANTING TO REALLY SET THE
RECORD STRAIGHT BEFORE A SHUTDOWN HAPPENS AND BEFORE THE ADMINISTRATION CHANGES. CAROLINE: A LOT PEOPLE SAID THE SUPREME COURT, A LARGE PART HAS BEEN SELECTED BY PRESIDENT-ELECT TRUMP. MAYBE THAT WOULD BEND TOWARD WHAT HIS VIEWS ON THE SOCIAL MEDIA APP HAVE BEEN. HE SAID THERE IS A SPECIAL PLACE IN HIS HEART FOR THE APP. THESE ARE LAWMAKERS AT THE END OF THE DAY AND PEOPLE WILL BE ASSESSING THE MERITS OF THE LAW.
ALEXANDRA: THE JUSTICES WILL RULE AS THEY MAY. THERE IS A LOT OF SPECULATION GIVING WERE TRUMP IS SEEMING TO COME DOWN ON THIS VERSUS WHERE HE USED TO STAND ON HOW THE JUSTICES MAY RULE BUT WE REALLY DON'T KNOW. WE DO NOT KNOW WHAT THE SUPREME COURT WILL DO. WE DO NOT KNOW IF THIS MEANS TIKTOK WILL BE ABLE TO STAND BEING BANNED. IT IS A REMARKABLE TIMELINE. WE ARE ONE MONTH FROM THE BAN THAT WAS SUPPOSED TO TAKE EFFECT.
THE ARGUMENT WILL BE JANUARY 10 AND THE LAW WILL TAKE EFFECT NINE DAYS LATER. THE SUPREME COURT IS MOVING UNUSUALLY FAST ON THIS ONE ISSUE. CAROLINE: PEOPLE WHO ASSESS THE LAW NOW HAVE THE BALL BUT WHAT I AM INTERESTED IN IS -- YOU HAVE TO REMEMBER IT IS NOT JUST THE BAN, THEY COULD DIVEST. TIKTOK WANTS US TO THINK IT IS A BAN FOR NOTHING. ALEXANDRA: WE KNOW THAT BUSINESS IS THE NEXT PHASE OF THE SAGA.
BYTEDANCE HAS SAID THEY WILL NOT SELL THE MOST PRIZED ASSET IN THE U.S. BEIJING'S EXPORT RULES BASICALLY SAY CHINESE COMPANIES CANNOT SELL THEIR ALGORITHMS LIKE THE ONE THAT IS CENTRAL TO TIKTOK IN THE U.S. AND MADE IT SO POPULAR HERE. POTENTIAL AMERICAN BIDDERS ARE ALREADY LINING UP. WE HAVE REPORTING COMING UP ON THAT TODAY. PEOPLE WILL NOT TAKE "NO"
FOR AN ANSWER WHEN YOU HAVE MORE THAN HALF OF THE AMERICAN POPULATION USING THE PLATFORM. THESE BIDDERS ARE TRYING TO LINE THEMSELVES UP FOR WHO MIGHT BE THE PERSON OR COMPANY TO TAKE OVER THE U.S. ITERATION OF THE PLATFORM IF BYTEDANCE FEELS THE SQUEEZE IN THIS 11TH HOUR WITH THE LEGAL PATH COMING TO AN END. THEY WANT TO BE THE ONES AT THE FRONT OF THE PACK. CAROLINE: WE WILL LOOK OUT FOR THE NEXT STORY. AMAZON MEANWHILE IS DELAYING THE RETURN TO OFFICE FOR THOUSANDS OF EMPLOYEES. . THE COMPANY TOLD SOME PERSONNEL
WORKING IN AT LEAST SEVEN CITIES INCLUDING AUSTIN, DALLAS, PHOENIX AND NEW YORK THAT RETURN DATES WILL BE PUSHED BACK TO MARCH AND APRIL. A COMPANY SPOKESPERSON SAID THE VAST MAJORITY OF EMPLOYEES WILL HAVE DESKS STARTING JANUARY 2. THE BIDEN ADMINISTRATION ANNOUNCE THE OVERHAUL OF H-1B VISA STANDARDS. IT IS A MOVE THAT EXPANSE WHO RECEIVE THE WORK VISAS. THE REVISION COMES AMIDST
CONCERNS THE UPCOMING TRUMP ADMINISTRATION MIGHT CHANGE COURSE. SEMYON DUKACH IS HERE. THIS NEWS, THIS CLARITY ON WHO CAN APPLY FOR H-1B VISAS AND IDEALLY BE FAST TRACKED. DOES THIS MAKE A DIFFERENCE TO YOUR COMPANIES? SEMYON: YES. I THINK MORE H-1B VISAS AND SIMPLIFYING THE PROCESS WILL CERTAINLY MAKE IT EASIER FOR PEOPLE TO HIRE IMMIGRANTS AND OCCASIONALLY FOR IMMIGRANTS TO START COMPANIES AS WELL. CAROLINE: SOME PEOPLE ARE CALLING IT A H-1B VISA OVERHAUL. ENTREPRENEURS WILL BE ABLE TO APPLY.
HOW MUCH HAVE WE SEEN ENTREPRENEURS, THOSE BUILDING WITHIN NORTH AMERICA, DEPENDING ON THIS ACCESS TO LIVING IN THE UNITED STATES? SEMYON: YEAH, IF THERE ARE MORE PATHS TO START A COMPANY IT WILL HAVE MORE COMPANIES STARTED. I THINK IT IS RELEVANT TO STUDENTS WHO COMPLETE THEIR EDUCATION HERE. SOME MIGHT BE DETERRED FROM STARTING A COMPANY WITHOUT A SIMPLIFIED VISA PROCESS. CAROLINE:
THERE IS CLARITY GIVEN FOR STUDENTS SO THEY DO NOT SEE A HOLE IN THEIR ABILITY TO STAY IN THE U.S. IF THEY WILL FIND A JOB OR BUILD A BUSINESS HERE. WE ARE LOOKING AT FOUNDERS YOU DO INDEED BACK, MOST OF THEM BEING IMMIGRANT FOUNDERS. WHY FOCUS ON THE DEMOGRAPHIC? SEMYON: WE ONLY INVEST IN IMMIGRANTS, WE ARE IMMIGRANTS.
WE KNOW THAT COLLECTIVELY IMMIGRANTS, IF YOU TAKE IMMIGRANTS FROM ANY COUNTRY TO THE U.S., THEY ARE NOT JUST SLIGHTLY BETTER AT BUILDING BUSINESSES. THEY ARE RESPONSIBLE FOR THE MAJORITY OF THE VALUE GENERATED FROM NEW COMPANIES. MOST OF THE UNICORNS, MULTIBILLION-DOLLAR SUCCESS STORIES, ARE IN FACT STARTED BY IMMIGRANTS. 55% OF THEM. PEOPLE WHO MADE THE JOURNEY AND CAME HERE. CAROLINE: WHY? WHY IS THAT SOME CORRELATION LINK, THAT PEOPLE WHO HAVE BEEN DRIVEN AND MOTIVATED TO MOVE AND COME WILL BE MORE WEIGHTED BEING SUCCESSFUL? SEMYON: IT IS NOT JUST ABOUT THE COUNTRIES THEY ARE FROM BEING BETTER AT STARTING THINGS. IT IS THE PEOPLE WHO MAKE THE
JOURNEY. COMING TO A NEW COUNTRY AND LEARNING A NEW LANGUAGE. IT IS PREDICTIVE OF HOW MUCH PERSEVERANCE YOU HAVE. YOUR OWN IMMIGRATION IS LIKE A START UP. YOU ARE GOING INTO THE UNKNOWN. YOU HAVE TO HAVE SOME KIND OF VISION, SOME BELIEVE YOU CAN DO IT, BUT BEFORE YOU HAVE REAL EVIDENCE.
WHEN YOU COMMIT TO DOING THAT, YOU OFTEN DO NOT REALLY HAVE A WAY BACK. IT IS VERY HARD TO COME BACK AND ADMIT THAT NOBODY REALLY WANTED YOU IN AMERICA AND IT DID NOT WORK OUT. PEOPLE AROUND YOU DO NOT NECESSARILY BELIEVE THAT YOU SHOULD DO. YOU ARE ABANDONING YOUR EXISTING NETWORK. THE PEOPLE WHO HAVE DONE THAT AND HAVE TO SURVIVE, HAVE TO LEARN THE CULTURE, THE LANGUAGE, FIGURE EVERYTHING OUT FROM SCRATCH AND BUILD A NEW NETWORK, WHEN THEY HAVE DONE THAT ONCE THEY ARE MORE LIKELY TO -- A BIG COMPANY HAS ITS OWN LANGUAGE AND CULTURE. ANY START UP IN ABLE TO WIN HAS TO OVERCOME IT.
IF YOU HAVE DONE IT ONCE ALREADY ON YOUR OWN, IMMIGRATION, IT IS MORE LIKELY YOU WILL GIVE THEIR. YOU WILL NOT GIVE UP ALONG THE WAY. WHEN THINGS GET HARD, IT IS NOT SO EASY TO GET A CUSHY JOB. CAROLINE: WHAT IS INTERESTING, YOU THINK ABOUT THE LEADERS OF THE MAGNIFICENT 7, THE CEOS, MANY ARE IMMIGRANTS. ELON MUSK HAS THE EAR OF THE NEXT ELECTED PRESIDENT, HIMSELF AN IMMIGRANT. HE DID NOT HAVE TO CHANGE LANGUAGES BUT HE BUILT SUCCESSFUL BUSINESSES. WILL WE SEE A PUSH BACK TO
IMMIGRATION AND SOME WAY? SEMYON: IT IS HARD FOR ME TO TELL. I PERSONALLY BELIEVE ALL IMMIGRANTS, FOLKS WITHOUT EDUCATION, SHOULD BE WELCOMED. NOT ILLEGALLY, THEY SHOULD BE LEGAL, OF COURSE.
I THINK IT TREMENDOUSLY BENEFITS THE COUNTRY TO HAVE THE SELECT FEW PEOPLE WILLING AND ABLE TO MAKE THE JOURNEY. WE WANT TO WELCOME THEM. LIKE I SAID, THERE ARE OTHER REASONS. HAVING ANOTHER CULTURE, ANOTHER LANGUAGE, FIGURING OUT SOME NEW THINGS. IMMIGRANTS TEND TO BE ABLE TO BUILD TECHNOLOGY OFFSHORE.
OFTEN THERE ARE PLACES YOU CAN GET ENGINEERS CHEAPER FAR AWAY WHEN THEY START UP GOOD NOT DO THAT IN THE BEGINNING BECAUSE YOU WANT TO BE CLOSE TO CUSTOMERS. YOU WANT TO BE A REAL TEAM, YOU DO NOT WANT TO OUTSOURCE IT. WHEN YOU ARE AN IMMIGRANT WITH THOSE CONNECTIONS IT IS LIKELY YOU WILL BE ABLE TO FIND PEOPLE SOMEWHERE ELSE WHERE SALARIES ARE LOWER AND IT COULD ACTUALLY FEEL LIKE THEY ARE PART OF YOUR GROUP. THEY CAN MAKE THAT CONNECTION. WE ARE CERTAINLY MISSING A LOT OF THINGS. WE AS A FUND, WE ARE
IMMIGRANTS, WE CAME HERE AS KIDS. WE ARE LIKE A BRIDGE. WE UNDERSTAND THE CULTURE OF BUILDING A BUSINESS IN AMERICA AND WE ARE ABLE TO SEE THESE UNUSUAL QUALITIES THAT MAKE SOMEONE POTENTIALLY ABLE TO BUILD A REALLY BIG BUSINESS. THAT LEVEL OF VISION, THOUGHTFULNESS AND PERSEVERANCE. WE FIND THE MISSING PIECES. SOMETIMES IT IS A QUESTION OF
STORYTELLING OR JUST BUILDING A NETWORK. THAT IS WHAT WE SPECIALIZE IN. PEOPLE WHO BUILD BIG BUSINESSES, IT SOUNDS LIKE IT IS AN EXCEPTION -- IT IS NOT. IT IS TRULY A MAJORITY. OVER HALF ARE STARTED BY PEOPLE LIKE THAT. . CAROLINE:
SEMYON DUKACH WE LEAVE IT ON A GREAT STATISTIC. THANK YOU. WE WILL HEAR FROM THE SALES FOR PERPLEXITY. IT IS IN AI START UP BUILDING A SEARCH PRODUCT TO COMPETE WITH GOOGLE. THE COMPANY'S VALUATION IS $9 BILLION.
THE THIRD ROUND WAS LED BY PARTNERS AND COMPUTED EARLIER THIS MONTH. PERPLEXITY DECLINED TO COMMENT. I MIGHT BE NUMB. I LOOK AT A 150 $7 MILLION VALUATION. WHAT IS $9 BILLION MEAN? >> IT IS A GIGANTIC VALUATION. I THINK -- IT HAS TRIPLED SINCE JUNE.
WE ARE SEEING A VERY STRONG INVESTOR DEMAND TO GET IN ON THE AI MARKET. SOME PEOPLE ARE WONDERING IF THE AI BUBBLE WILL BURST OR IF WE WILL SEE INVESTOR DEMAND COOL OFF. THIS GROWING THIS QUICKLY SHOWS THE DEMAND IS VERY HIGH. CAROLINE: PERPLEXITY HAS BEEN WELL USED BY CONSUMERS. THEY HAVE A FAIR SHARE OF LEGAL ISSUES TO CONTEND WITH AT THE MOMENT. I AM INTERESTED AS TO HOW THE
GROWTH IS LOOKING. DID YOU GET A HINT WHERE 15 MILLION ACTIVE USERS HAVE GONE SINCE MARCH ECHO >> THEY SAY THE NUMBER OF SEARCHES PEOPLE DO ON PERPLEXITY -- THEIR COMPETITIVE EDGE IF THEY ARE TRYING TO BE THE BEST IN GIVING PEOPLE REAL-TIME INFORMATION AND BEING GOOD FOR ANALYSIS. THEY ARE SEEING PEOPLE QUERY A LOT MORE. THEY ARE SEEING STRONG GROWTH. THEY HAVE BEEN ROLLING OUT MORE CUSTOMIZED SEARCH OPTIONS FOR PEOPLE WHO WANT FINANCIAL DATA OR SPORTS DATA THAT IS REAL-TIME. THEY ARE GROWING AND THAT IS WHY WE ARE SEEING INVESTOR DEMAND INCREASE. CAROLINE:
WE WILL SEE HOW THE GROWTH CONTINUES. THANK YOU FOR THE NEWS. LET'S TALK SALESFORCE. CEO MARC BENIOFF SAYS THE COMPANY'S WORK IN AI IS THE MOST EXCITING TECHNOLOGY HE HAS WORKED IN BUT HE IS NOT GIVING UP HIS STAKE IN LEGACY MEDIA. HE SPOKE ABOUT THE FUTURE OF TIME MAGAZINE AND THE DECISION TO NAME DONALD TRUMP AS PERSON OF THE YEAR GALA. MARC: WHEN I BOUGHT TIME MAGAZINE I SAID I WOULD NOT ENDORSE ANY POLITICAL CANDIDATE AND I STOPPED ALL FUNDING OF ALL POLITICAL CANDIDATES. YOU ALSO KNOW THAT THIS WEEK
TIME MAGAZINE DID SAY PRESIDENT TRUMP IS OUR PERSON OF THE YEAR GALA AND I COULD NOT BE MORE EXCITED ABOUT THAT. THE COVER TO THE STORY ITSELF, IT IS THE BIGGEST STORY WE HAVE EVER DONE IN THE HISTORY OF TIME. IT SPEAKS TO A MOMENT IN THE POLITICAL LANDSCAPE WHERE WE HAVE TO HAVE A BEGINNER'S MIND. EVERY POSSIBILITY IS AHEAD OF US. IT IS ONLY IN THE EXPERTS'S
MIND THAT WE REALIZE WE HAVE CONSTRAINTS THAT WE HAVE TO PUT ASIDE. I AM EXCITED FOR THE FUTURE. I HOPE THAT AGENTS AND AI ARE A CRITICAL PART OF ACHIEVING THE NEXT LEVEL OF EFFICIENCY AND CAPABILITY INSIDE NOT ONLY OUR GOVERNMENT BUT ANY GOVERNMENT. I BELIEVE VERY STRONGLY THAT WE NEED TO USE THESE KINDS OF TECHNOLOGIES TO ACHIEVE A BALANCED BUDGET, WHICH I THINK IS A BIPARTISAN ISSUE ALL OF US CAN AGREE ON. ANNE-MARIE: THEY ARE LOOKING TO DOGE-IFY THE GOVERNMENT. WOULD YOU CONSIDER WORKING ALONGSIDE IF THEY ASK YOU TO JOIN A TASK FORCE? MARC: I DO NOT HAVE THE ABILITY TO ANSWER THAT BECAUSE NOTHING HAS BEEN PROPOSED TO ME. I'M HIGHLY CONFLICTED AS A
MEDIA OWNER. IT MAKES IT DIFFICULT FOR ME TO WORK IN AN ADMINISTRATION. WE ARE MOSTLY FOCUSED ON OPERATING OUR BUSINESS. WHEN GOVERNMENTS AND PRESIDENTS
ASK US TO HELP THEM TO MAKE THEIR COUNTRY MORE EFFECTIVE, MORE EFFICIENT AND MORE CAPABLE, ESPECIALLY IN REGARDS TO ARTIFICIAL INTELLIGENCE, WE WILL ALWAYS SAY YES. >> THERE ARE REPORTS THAT MAY BE YOU ARE LOOKING AT SELLING TIME MAGAZINE. SAY YOU DID SELL TIME MAGAZINE -- YOU CAN COMMENT ON WHETHER OR NOT THOSE REPORTS ARE TRUE -- WOULD YOU CONSIDER OFFERING UP ALL YOUR EXPERTISE IN EFFICIENCY TO THE DOGE TASK FORCE AND THE INCOMING ADMINISTRATION? MARC: I THINK EVERY AMERICAN SHOULD DO WHATEVER THEY CAN TO MAKE AMERICA SUCCESSFUL AND EVERY AMERICAN SHOULD DO WHAT THEY CAN TO MAKE THE PRESIDENT OF THE UNITED STATES SUCCESSFUL.
THIS IS OUR COUNTRY AND OUR LEADERSHIP TEAM. OF COURSE I WOULD DO WHATEVER I CAN TO SUPPORT THEM. THE REALITY IS THERE IS NO DEAL ON THE TABLE TO SELL TIME AND IT IS EXTREMELY IMPORTANT WE HAVE FAIR AND BALANCED JOURNALISM AND THAT IS WHY I AM VERY PROUD TO BE AN OWNER OF TIME MAGAZINE. CAROLINE: MARC BENIOFF SPEAKING WITH ANNMARIE HORDERN. HOW A LAWSUIT AGAINST A SNAPSHOT CAN AFFECT SECTION 230. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TODAY'S BIG TAKE IS ABOUT A LAWSUIT ARGUING SNAPSHOT HAS HELPED DEALERS SELL CHILDREN DEADLY COUNTERFEIT DRUGS AND A LAWSUIT COULD CHANGE THE INTERNET AS WE KNOW IT. BLOOMBERG'S OLIVIA CARVILLE IS
HERE WITH ANOTHER GRAND BREAKING STORY. FENTANYL HAS BECOME ONE OF THE LEADING CAUSES OF DEATH AMONG TEENAGERS, KILLING MORE THAN 1600 PEOPLE. ALL SOCIAL MEDIA PLATFORMS ARE IMPLICATED. WHY IS SNAPSHOT SINGLED OUT? OLIVIA: DRUG SALES CAN BE FOUND ON ALL SOCIAL MEDIA PLATFORMS. WHAT
DIFFERENTIATES SNAPSHOT AND WHY LAW ENFORCEMENT IS SINGLING OUT SNAPSHOT IS THE PLATFORM WAS REALLY BUILT ON THE IDEA OF DISAPPEARING MESSAGES. IT THRIVES ON EVANESCENCE. IF YOU SEND A MESSAGE WITHIN 24 HOURS, IT IS GONE. UNFORTUNATELY WHILE THE COMPANY WAS NOT DESIGNED FOR THIS WHAT HAS HAPPENED IS TEENAGERS LIKE USING THE PLATFORM WHEN THEY DO NOT WANT THEIR PARENTS TO KNOW WHAT THEY ARE DOING AND DRUG DEALERS LIKE USING THE PLATFORM BECAUSE EVIDENCE OF CRIMES IS IMMEDIATELY DELETED BY DEFAULT. CAROLINE:
IN THE STORY, THE EXTENT OF USE FOR DRUG SALES BECOMES CLEAR. WE UNDERSTAND SNAPSHOT HAS REMOVED TWO POINT 2 MILLION PIECES OF DRUG-RELATED CONTENT IN 2023 AND BLOCKED MANY DEALER ACCOUNTS. WE WANT TO FOCUS ON SNAPSHOT'S RESPONSE. WE ARE COMMITTED TO FIGHT
AGAINST THE FENTANYL EPIDEMIC. HOW ARE THEY FIGHTING AGAINST IT? OLIVIA: THEY ARE DOING QUITE A LOT AND THE COMPANY POINTS OUT IT WANTS TO BECOME THE MOST HOSTILE PLACE ON THE INTERNET FOR DRUG DEALERS. THEY HAVE SIGNED TUNE CLASSIFIERS, AI TECHNOLOGY TO DETECT ANY DRUG-RELATED CONTENT AS SOON DESERT IS UPLOADED. IT HAS RESULTED IN THEM REMOVING 2.2 MILLION PIECES OF CONTENT IN 2023 ALONE THAT WERE FLAGGED AS BEING RELATED TO DRUGS. IT ALLOWS THEM TO LOCK THE ACCOUNTS OF ANYONE WITH SUSPICIOUS ACTIVITY WHERE IT LOOKS LIKE THERE MIGHT BE SELLING DRUGS TO THE PLATFORM.
THEY ALSO HAVE STRENGTHENED THEIR SAFEGUARDS. THE RECOMMENDATION ENGINE THAT ENABLES USERS TO CONNECT WITH ONE ANOTHER, OFTEN DRUG DEALERS HAVE USED THIS TO TRY TO BUILD OUT THE NETWORK TO FIND MORE BUYERS. THE COMPANY STRENGTHENS IT SAFEGUARD WITH TEENAGE USERS WITH THE RECOMMENDATION ENGINE, TRYING TO LIMIT THE NUMBER OF STRANGERS THAT IT CONNECTS TEENAGERS TO TWO DEAL WITH THE FENTANYL CRISIS. CAROLINE: HE IS STILL GOING TO COURT AND THIS COULD HAVE BROAD REACHING OF FACTS -- REACHING EFFECTS. ONCE AGAIN, CHECK OUT THE BIG TAKE. OLIVIA CARVILLE. WE THINK HURT.
WE WILL TAKE YOU BACK -- WE THANK HER. WE WILL TAKE YOU BACK TO THE MARKETS. MICRON OFF BY 60%. THE BIGGEST MAKER OF MEMORY.
WORST DAY SINCE MARCH 2020 AS THE FORECAST DID NOT LIVE UP TO EXPECTATIONS. . IT IS ABOUT WEAKNESS IN PC AND SMARTPHONE CHIPS. THAT DOES IT FOR THIS EDITION
2024-12-22 10:12
