Nasdaq’s Rough Quarter, Rivian’s 'Micromobility’ Spinoff | Bloomberg Technology
>> FOR 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, I'M CAROLINE HYDE. COMING UP, A VOLATILE NASDAQ AFTER POSTING ITS WORST QUARTER IN NEARLY THREE YEARS. PLUS, THE U.S. CHIPS ACT GRANTS IN LIMBO.
AMID TRAIT ANXIETY AND WEAKER TESLA SALES, WE SIT DOWN WITH THE CEO OF RIVIAN. THE MARKETS ARE TRYING TO PUSH BACK INTO THE GREEN AFTER WHAT WAS A PRETTY HORRIFIC QUARTER. THE FIRST QUARTER FOR THE NASDAQ 100 WAS THE WORST SINCE THE SECOND QUARTER OF 2022. YOU ARE SEEING THE SELLOFF IN THE TERMS OF 20% FOR MANY MAGNIFICENT SEVEN NAMES.
NVIDIA DOWN ALMOST 20%. BROADCOM HAVING HIS WORST QUARTER IN ITS HISTORY. LET'S BREAK DOWN THE MOVES IN WITH THE SIGNALS. IT WAS THE MOST LOVED NAMES FOR 2023 AND 2024 THEY GOT PUNISHED THE HARDEST. >> THEY SHED TO TRILLION DOLLARS IN MARKET CAP. A LOT OF SUPERLATIVES. MICROSOFT, AMAZON, META DOWN.
INTERESTING HOW THESE ARE NOW DRAGGING THE MARKETS LOWERED. AND THEY HAVE BEEN THE DARLINGS OF AI. THEY POWER THE MARKETS TO THE BULL RUN. NOW QUESTIONS ARE COMING AT A TIME WHEN THERE IS REALLY A LOT OF MACROECONOMIC UNCERTAINTY. PHARAOH AND DEEPSEEK -- THROW IN DEEPSEEK. ALIBABA'S CO-FOUNDER SAYS THEY
ARE RUSHING TO GET AHEAD OF AI SERVICES. IN CONTRAST, A REPORT ABOUT MICROSOFT SAYING THEY ARE WALKING AWAY FROM NEW PROJECTS. MICROSOFT COMMITTED ALMOST $80 BILLION FOR DATA CENTERS. ALTOGETHER THE BIG SPENDERS EARMARKED $300 BILLION. IT'S AN INTERESTING TIME. CAROLINE: YOU ARE POINTING TO A MESSY NARRATIVE FOR AI NOW. CLEARLY TRYING TO DASH THE
HOPES OF SAYING THERE'S A BUBBLING UNITED STATES. ALIBABA IS INVESTING MORE THAN $50 BILLION ITSELF AND THE AI INFRASTRUCTURE IN THE FUTURE. AND THEN WE HAVE THE NARRATIVE OF MICROSOFT. OUR PEOPLE FEELING THESE VALUATIONS WITH MORE THAN A BEAR MARKET ULTIMATELY AND A LOT OF NAMES DOWN WITHIN 20%? IS NOW THE TIME TO START BUYING IN? IS THAT MOVING OUT OF THE BUBBLE? ISABELLE: IT DEPENDS ON HOW YOU ASK. I INTERVIEWED A MUTUAL FUND MANAGER WHO SAID TECH IS STILL OFFENSIVE AND STILL VOLATILE. YES, IT HAS COME DOWN. 24 TIMES ESTIMATED PROFITS FROM 27 LAST MONTH.
THE AVERAGE IS STILL AROUND 20. HE SAYS HE HAS A LITTLE BECAUSE HE CALLS IT RISK MANAGEMENT. THEY STILL HAVE A FOOTHOLD ON THE MARKET BUT IT'S INTERESTING. THE IPO MARKET. YOU EXPECT IT TO BE HOT BUT IT WASN'T. NEWSMAX IS MAYBE THE EXCEPTION. IT SURGED ABOUT 800% YESTERDAY. CAROLINE: RETAIL NAME AT A DIFFERENT BUSINESS MODEL. COY WAS UP MORE THAN 10% TODAY.
MAYBE WE ARE GETTING A LITTLE BUYING AROUND THE EDGES ON WHAT HAD BEEN A PRETTY BEATEN UP NAME. IT IS NOT JUST ABOVE ITS IPO LISTING PRICE. IT DOES SEEM MURKY FOR PUBLIC MARKET INVESTORS WHEN THEY ARE LOOKING AT PRIVATE MARKETS AND LOOKING AT A $40 BILLION ROUND FOR OPENAI. SAM ALTMAN SAYS THERE'S INSATIABLE DEMAND IN THE JEEP USER MELTING BECAUSE EVERYONE IS USING HIS PRODUCT. IS THAT STILL THE TARIFF OVERHANG THAT PERHAPS LENDS TO THE DOWNSIDE FOR THESE NAMES? ISABELLE: ABSOLUTELY. TECH VALUATIONS, AI. NOW IT IS LIKE LIBERATION DAY
TOMORROW. I WAS TALKING UPSTAIRS WITH ANNA MOLETTI. IT IS LIBERATION DAY BUT WHAT IS THAT MEAN? SHE WAS SAYING WE ARE ON THE DEFENSIVE, ON THE WAIT AND SEE. EVERYONE IS HOPING WE WILL HAVE
A MAGICAL LIST TOMORROW PER COUNTRY PER TARIFF BUT WE WILL NOT SEE THAT. SHE'S CONCERNED. IF YOU LOOK AT BITCOIN, THE RISK PROXY, IT IS DOWN 10% THIS YEAR BUT FROM ITS PEAK IT IS DOWN 20%. BITCOIN HAS A LOT OF FANS WOULD ALSO SKEPTICS. ONE CANNOT DENY IT IS A BROAD GAUGE OF SENTIMENT. FOR NOW THE GLOOM IS PALPABLE. CAROLINE: WELL SAID. WE THANK YOU FOR THAT BREAKDOWN. LET'S GET INTO THE WEEDS ON CHIPS SPECIFICALLY.
HOWARD LUTNICK MAY WITHHOLD CHIPS ACT GRANTS TO PUSH COMPANIES TO EXPAND U.S. PROJECTS. HIS GOAL IS TO GENERATE TENS OF BILLIONS OF DOLLARS IN ADDITIONAL SEMICONDUCTOR INVESTMENT COMMITMENTS WITHOUT INCREASING FEDERAL GRANT. PETER ELSTROM JOINS US NOW. WE HAVE NO -- WE HAVE ALL KNOWN PRESIDENT TRUMP WAS NOT A HAND -- NOT A FAN OF THE BIDEN ADMINISTRATION CHIPS ACT. BUT IT LOOKS LIKE THEY ARE LOOKING AT AWAITED -- LOOKING AT A DIFFERENT WIDOW ORCHESTRATED.
-- WAY T ORCHESTRATEDO IT. PETER: THEY ARE TRYING TO GET THEM TO INVEST MORE THE UNITED STATES. $52 BILLION IN GRANTS. TAX CREDITS, WHICH ARE IMPORTANT HERE. DIVIDE ADMINISTRATION SCRAMBLED IN THE LAST DAYS TO TRY TO FINALIZE THE AGREEMENTS WITH A BUNCH OF THE MOST IMPORTANT CHIP COMPANIES ALL ROLLED, INCLUDING TSMC, SAMSUNG, INTEL, MICRON.
THEY FINALIZED THE TERMS BUT THEY DID NOT DISPERSE ALL THE MONEY. THE IDEA WAS THAT THE COMPANIES WOULD HIT BENCHMARKS AND THEN THE MONEY WOULD GO OUT. LUTNICK DECIDED TO USE THOSE DISBURSEMENTS AS LEVERAGE WITH THESE COMPANIES TO TRY TO GET THEM TO COMMIT EVEN MORE MONEY TO THE UNITED STATES. THE CHIPS AWARDS ARE NOT GOING TO GO UP IN TERMS OF VALUE. BEFORE HE WRITES THE CHECKS HE WANTS COMPANIES TO COME FORWARD AND PLEDGE MORE MONEY.
THE EXAMPLE IS TSMC. THEY WERE GOING TO INVEST ABOUT SIX TO $5 BILLION IN CHIP CAPACITY IN THE UNITED STATES. THEY SAID IT WILL PUT IN ANOTHER 00 BILLION. THE TRUMP ADMINISTRATION LOVES TO BE ABLE TO HAVE THOSE KINDS OF ANNOUNCEMENTS. TSMC IS THE MOST IMPORTANT CHIP MAKER IN THE WORLD RIGHT NOW. FOR THEM TO SAY WE WILL PUT
ANOTHER 00 BILLION IN THE MARKET IS VERY IMPORTANT. CAROLINE: THE ADMINISTRATION WITH -- WOULD SAY THAT IS THE TARIFFS. THERE'S ALSO NUANCE ON THE TAX CREDIT.
THAT IS MORE IMPORTANT THAN THE GRANTS. PETER: FOR MANY COMPANIES, INCLUDING TSMC AND SAMSUNG, THE TAX CREDIT IS VERY IMPORTANT. IT COULD MEAN MORE MONEY. THERE ARE DISCUSSIONS ABOUT MAYBE INCREASING THE TAX CREDIT. IT HAS BEEN 25%. IT COULD BE MORE IN THE FUTURE.
THAT'S IMPORTANT FOR COMPANIES THAT HAVE THE MONEY RIGHT NOW. IF YOU CAN PUT IN 00 BILLION, IT IS EASY TO DO THE MATH ON THAT. $25 BILLION IN TAX CREDITS. TSMC SEES A LOT OF OPPORTUNITIES IN THE UNITED STATES TO MAKE INVESTMENTS, BUILD SOME CUTTING EDGE CHIPS HERE AND THEN SELL THEM TO DOMESTIC CUSTOMERS. YOU HAVE COMPANIES LIKE SAMSUNG AND INTEL THAT COULD DO THINGS LIKE THIS AND ARE WORKING ON THESE PROJECTS.
ONE THING EXERTING A LOT OF LEVERAGE IS GETTING THE COMPANIES TO HAVE MORE EYE-POPPING NUMBERS SO THEY CAN TAKE CREDIT FOR BRINGING SOME OF THIS PRODUCTION BACK TO THE UNITED STATES. CAROLINE: AT A TIME WHEN WE HAVE A LOT OF UNCERTAINTY WITH TARIFFS HANGING OVER THE SEMICONDUCTOR INDUSTRY IT MUST BE A DIFFICULT TIME TO MORE SPENDING FROM THESE CEOS. PETER: RIGHT. YOU TALKED ABOUT THE TARIFF UNCERTAINTY. WE WILL FIND OUT SOMETHING TOMORROW. A LOT OF THIS WE DON'T KNOW AT THIS POINT. YOU ARE RIGHT. THE TRUMP ADMINISTRATION POINTED TO TARIFFS AS PART OF THE REASON SOME OF THESE COMPANIES ARE INVESTING MORE IN THE UNITED STATES AND THE TECH SECTOR AND CHIPS SECTOR IN PARTICULAR.
WE DON'T REALLY KNOW WHAT THE TARIFFS ARE GOING TO LOOK LIKE. THERE'S TALK ABOUT TARIFFS ON THE CHIPS THEMSELVES, MAYBE THE END PRODUCTS THE CHIPS GO INTO. IT IS NOT CLEAR HOW THAT WILL PLAY OUT. THEY NEED MORE INFORMATION. THE TIME FRAMES ARE TOTALLY DIFFERENT.
THEY ARE CHANGING POLICIES ALMOST BY THE WEEK. WHEN YOU INVEST IN A GYM COMPANY, YOU HAVE TO PLAN FOR DECADES AT A TIME -- CHIP COMPANY, YOU HAVE TO PLAN FOR DECADES AT A TIME. BUT HAVE TO RESOLVE CONFLICTS GOING DOWN THE LINE. CAROLINE: PETER, BRILLIANT TO HAVE YOU. LET'S STICK ON CHIPS AND CHIPMAKERS.
GLOBAL FOUNDRIES EXPLAINED THE POTENTIAL MERGER WITH THE COMPANY UNITED MICROELECTRONICS TO CREATE A MORE RESILIENT MANUFACTURER OF OLDER GENERATION SEMICONDUCTORS. THE DEAL WOULD FACE MULTIPLE HURDLES, INCLUDING FINANCING, OPPOSITION FROM TAIWAN'S GOVERNMENT, AND RAGGED TORY APPROVAL FROM CHINA. ANOTHER -- REGULATORY APPROVAL FROM CHINA. ANOTHER NAME AFFECTED BY GRANTS AND THE NEW CHANGE OF CEO IS INTEL. OFF BY 2.4%. THAT'S AFTER WE HEARD HIM ARTICULATE THE FUTURE OF THE BUSINESS UNDER HIS LEADERSHIP. ANALYSTS LIKE IT IS REALITY
CHECK IN HIS FOCUS ON TALENT AND CLIENT SECONDARY, BUT MAYBE LACKING DETAIL ON WHAT THE NEXT PRODUCT INNOVATION IS COMING. WE ARE OFF BY 2.2%. TESLA IS SLUMPING IN EUROPE WHEN IT COMES TO SALES. THE SHARES ON THE HIGHER SIDE. ARE THEY JUST NUMBERS IN TERMS OF SALES FROM FRANCE WHICH ARE ADDITIONAL? THIS IS -- WHICH ARE DISMAL? THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: LET'S CHECK IN ON SHARES OF TESLA. THEY ARE REBOUNDING, A 5% AFTER A PRETTY HORRIFIC QUARTER PREVIOUS. DOWN 35% IN Q1. PUB 5%, EVEN THOUGH SALES IN FRANCE FELL 37%. ASHLEY FELL FURTHER IN COUNTRIES LIKE DENMARK. TESLA'S AUTO DELIVERIES CO ME OUT TOMORROW. TESLA'S CLOSE WHEN IT COMES TO FUNDAMENTALS AND SALES LOOKING UGLY WORLDWIDE RIGHT NOW. DAVID: THEY HAVE A FEW DIFFERENT
PRESSURE POINTS HERE. IN EUROPE, GIVEN WHAT IS GOING ON POLITICALLY IN THE TRUMP ADMINISTRATION, SOME ARE SHYING AWAY. THERE ARE OTHER FACTORS HERE. THERE'S MORE COMPETITION IN THE EV SPACE NOW IN EUROPE AND THE U.S. IN CHINA, BYD IS TAKING A LOT OF MARKET SHARE. WE HAVE A MODEL Y CHANGEOVER. THEY MAKE THAT VEHICLE IN EVERY TESLA PLANT.
YOU WILL LOSE A CERTAIN AMOUNT OF PRODUCTION. IT IS HARD TO QUANTIFY HOW MUCH THAT IS BITING INTO SALES. LET'S NOT GET TOO CARRIED AWAY WITH BUYERS DON'T LIKE ELON MUSK'S POLITICS. THAT IS REAL BUT THERE ARE REGULAR BUSINESS FACTORS WITH TESLA AND THEIR PRODUCT CHANGE. HE'S GOT A LOT OF COMPETITION IN BYD WITH RECORD SALES AND KEEP GROWING AND GROWING. DOUBLING SALES SINCE LAST YEAR. THEY ARE A REAL FORCE AND TESLA HAS A REAL BUSINESS IN CHINA.
SALES ARE DOWN AND WE WILL SEE WHAT HAPPENS TOMORROW WHEN THE NUMBERS COME OUT. CAROLINE: THAT'S REALLY IMPORTANT TO NOTE. THE COMPETITION. WELLS FARGO PUTTING ON A NOTE SAYING TESLA NEEDS MAGIC ON THIS PARTICULAR POINT.
THEY SAY YOU HAVE THIS TURNOVER IN TERMS OF PRODUCTION BUT ARE PEOPLE RUSHING OUT FOR A NEW ITERATION OF THE MODEL Y? THEY WORRY ABOUT CANNIBALIZATION ACHIEVER PRODUCTS. THERE'S THE FUNDAMENTALS OF THE U.S. IN TERMS OF THAT $7,500 BY CREDIT THAT IS LIKELY TO GO AWAY. DAVID: THAT'S RIGHT. YOU CAN SEE A LITTLE BIT OF A BOUNCER TESLA IN THE U.S. BECAUSE TESLA IS LEAST AFFECTED BY TARIFFS BUT THEY WOULD GET HIT WITH SOME. SOME BUYERS MAY SAY TESLA HAS PARTS THAT ARE IMPORTED. I DON'T WANT TO HAVE TO PAY
MORE FOR A TESLA IN THREE OR FOUR MONTHS BECAUSE OF TARIFFS. SOME PEOPLE MAY -- WE HAVE SEEN THE NUMBERS THAT ARE OUT -- BUYERS ARE GOING OUT THERE THINKING IF DONALD TRUMP IS GOING TO MAKE GOOD ON HIS TARIFF THREATS, HE WILL PROBABLY GET RID OF THE $7,500 TV TAX CREDITS. -- EV TAX CREDITS. WE SEE IT WITH COMPANIES HE
REPORTED IN THE FIRST QUARTER. FORD AND HONDA HAD BIG JUMPS IN THEIR EV SALES. PEOPLE ARE GOING OUT -- AMERICANS ARE GOING OUT AND BUYING EV'S BEFORE THE CREDITS GO AWAY. TESLA WILL PROBABLY TAKE ADVANTAGE OF THAT AND GET A BOUNCE FROM IT AS WELL. CAROLINE: WE WILL SEE HOW THE DELIVERIES SHAKE OUT LATER IN THE WEEK. DAVID WELLS, THANK YOU FOR THE LATEST ON ALL THINGS TESLA.
JUNHENG LI IS WITH US. YOU BRING SUCH EXPERTISE WHEN IT COMES TO TESLA. IT IS HISTORY AND CHINA. IT IS KIND OF LOSING ITS EDGE OVER THEIR. HOW MUCH ARE WE SEEING IT LOSE OUT THE COMPETITION RIGHT NOW, JUNHENG? JUNHENG: IT'S INTERESTING. TESLA HAS A LONG HISTORY IN CHINA. THE LARGEST BATTERY AND SHANGHAI NOW ACCOUNTS FOR ABOUT 55% OF THE GLOBAL SHIPMENT.
IT WAS ONLY STARTED TO MAKE CARS BACK IN 2020, FIVE YEARS AGO. THE EV ADOPTION IN CHINA ACCELERATED. INITIALLY AT 160% YEAR-OVER-YEAR AND THEN GRADUALLY COMING DOWN TO 90%. 70% AND 50% YEAR-OVER-YEAR LAST YEAR. IN THE PROCESS TESLA HAS BEEN LOSING MARKET SHARE TO A MARKET THAT HAS TRADED TO ACCELERATE. 2020, MARKETS ARE IN CHINA WAS
DOUBLE DIGITS UP 11% AND 12%. TODAY IT IS ONLY 4%. EVEN THOUGH CHINA WANTS TO BEV ONLY -- BE EV ONLY, IT IS TRADING OVERALL GROWTH OF THE CHINA BROADER EV MARKET. CAROLINE: IS IT ALL ABOUT BYD? THERE'S ALSO SHA IOAMI. A FATAL ACCIDENT OCCURRED.
MANY WORRY ABOUT FSD AND ISSUES WITH THAT PARTICULAR MODEL. IS THAT SOMETHING TO BE KEEPING AN EYE ON? JUNHENG: IN THE CASE OF DEEPSEEK, IF ANYTHING IT SHOWS HOW FAST THE CHINESE CAN COMMODITIZE SOFTWARE. THAT'S THE CASE WITH THE HARDWARE. IT IS NOT JUST BYD. IT IS EVERYBODY. THEY CREATED A MARKET.
TESLA HELPED CREATED A MARKET THAT INTRODUCED A LOT OF COMPETITION. THERE ARE THE THREE LARGE INDEPENDENT EV MAKERS IN THE U.S. NOT SAYING EVERYONE IS AS PROFITABLE AS TESLA. ANCHOR MENTALLY -- INCREMENTALLY, TESLA HAS BEEN LOSING MARKET SHARE BECAUSE IT IS NOT ABLE TO KEEP UP WITH THE PRODUCT. THE CHINA MARKET UNIQUELY DEMANDS IT.
THE REPORT THIS MORNING IS VERY EYE-CATCHING. EV IS NO LONGER JUST A VEHICLE. IT HAS ELEVATED TO A TECHNOLOGICALLY NEW HEIGHT. AUTONOMOUS DRIVING REALLY INVITES A LOT OF NEW ISSUES SUCH AS WHO IS RESPONSIBLE IN CASE THERE IS A BUG IN THE SOFTWARE THAT CAUSES ACCIDENTS THAT RESULTS IN A TRAGEDY OR DEATH? IS THAT THE SOFTWARE MAKER, THE DRIVER, THE BATTERY MAKER, OR ANY COMPONENT MAKER THE CAR? THOSE ISSUES NEED TO BE ADDRESSED BEFORE PARTIAL ADOPTION CAN BE SEEN ANYWHERE IN THE WORLD. CAROLINE: JUNHENG, WHAT WE HAVE NOT DISCUSSED HIS POLITICS.
MANY SAY IF YOU LOOK AT APPLE, FOR EXAMPLE, THERE WAS AN EROSION OF MARKET SHARE. SOME PEOPLE FELT IT WAS BECAUSE CHINESE PURCHASERS WANTED TO BUY DOMESTIC PRODUCTS. IS IT MORE THAT THE COMPETITION IS FIERCE AND THE PRICE POINT IS BETTER? JUNHENG: I THINK TESLA HAS THE SAME ISSUE APPLE HAS YET. THE BRAND IS STRONG. CHINA'S ISSUE WAS A COMPETITION
ISSUE. IT IS DIFFICULT -- DIFFERENT FROM THE REST OF THE MARKET. ELON MUSK HAS POLITICS THAT CATALYZES THE BUYER DEMOGRAPHICS -- CANNIBALIZE IS THE BUYER DEMOGRAPHICS. THE UPPER MIDDLE SECTOR. THE BRAND IS STRONG. IT IS JUST VERY SLOW IN LAUNCHING NEW PRODUCTS.
THERE IS PRODUCT FATIGUE. THE COMPETITION IS REALLY OFFERING A LOT MORE ATTRACTIVE EXCITING NEWNESS CONSUMERS IN CHINA DEMAND. CAROLINE: JUNHENG, SO GOOD TO GET YOUR EX OR TEES AND THE DEMAND. JUNHENG LI, WE APPRECIATE IT. COMING UP, SOFTBANK GIVES OPENAI A $300 BILLION VALUATION. MORE ON THE LATEST FUNDING BEHIND THE CHATGPT MAKER IS NEXT. CAROLINE: TIME FOR TALKING TECH. SPACEX.
IT LAUNCH THE FIRST-EVER HUMAN SPACEFLIGHT OVER THE EARTH'S POLAR REGIONS. THE MISSION TOOK OFF A FALCON 9 ROCKET ON MONDAY EVENING. THE TRIPLE TAKE THREE TO FIVE DAYS AND WILL CONDUCT RESEARCH ON THE IMPACT OF SPACEFLIGHT ON HUMAN HEALTH. THE ECB PRESIDENT CHRISTINE LAGARDE SAYS THE USE OF AI COULD UPEND EUROPE'S SOCIAL MODEL. SPEAKING AT A CONFERENCE SHE RECOGNIZED THE GAINS THAT COULD BE ACHIEVED BUT WARNS THE TECHNOLOGY ALSO HAS POTENTIAL TO INCREASE LABOR MARKET INEQUALITY ACROSS THE REGION. SOFTBANK IS SEEKING A LOAN OF
HIS MUCH IS 6.5 BILLION TO HELP FUND HIS AI INVESTMENTS IN THE UNITED STATES. THE RIDGELINE WOULD HELP FINANCE THAT $500 BILLION AI FOR STRUCTURE PROJECT AS WELL AS THE $40 BILLION FUNDING ROUND WHICH IS COMMITTING $30 BILLION TO. DETAILS MAY CHANGE OVER THE COMING WEEKS. WE WILL STICK WITH THE FUNDING OF OPENAI NOW. THE COMPANY HAS FINALIZED THE
FUNDING ROUND OF A RECORD $40 BILLION. IT WAS LED BY SOFTBANK AND HAS LED TO A $300 BILLION VALUATION. IT'S INTERESTING BE STRUCTURED BUT SOFTBANK IS GETTING 30 BILLION DOLLARS IN THEN THERE ARE OTHER INVESTORS THAT ARE CHIPPING AND THE OTHER 0 BILLION. >> IS AN ACCREDITED COMPACTS -- COMPLEX DEAL. THEY ARE CREATING A SYNDICATE TO HELP FINANCE THIS. IT IS NOT HAPPENING ALL AT ONCE. IT DEPENDS ON WHETHER THE
COMPANY, OPENAI, CAN RESTRUCTURE AS A FOR PROFIT OR NOT. UNPRECEDENTED INSIDE BUT UNPRECEDENTED IN COMPLEXITY. CAROLINE: ALSO A NEW RELATIONSHIP FOR BETWEEN MICROSOFT AND OPENAI. BEFORE THEY WERE THE BIGGEST BACKER REALLY. SETH: WE HAVE ALL FELT THERE IS A SLOW-MOTION SPLIT HAPPENING FOR THE LAST YEAR AND CHANGE BETWEEN THE COMPANIES. MICROSOFT IS STILL PART OF THE SYNDICATE OF INVESTORS. THE RELATIONSHIP STILL STANDS. IF THE DEAL GOES THROUGH, SOFTBANK WILL PRESUMABLY BE THE LARGEST FINANCIAL BACKER OF OPENAI DISPLACING MICROSOFT AND SOFTBANK IS KEY AND INTEGRAL TO HELPING OPENAI DIVERSIFY AWAY FROM MICROSOFT ON THE DATA CENTER SIDE. CAROLINE:
THE REVENUE NUMBERS WE ARE GETTING A GLIMPSE INTO, THEY ARE GOOD. SPECTACULAR GROWTH FOR AN OPENAI -- FOR OPENAI & ALTMAN WORRIES ABOUT DELIVERING THE PRODUCTS. THEY ARE SO SUCCESSFUL THAT THE GP USER MELTING. SETH: YOU ARE SEEING REVENUE TRIPLE OR MORE THAN TRIPLE FROM THE LAST YEAR TO 2.7 BILLION THIS YEAR.
AT THE SAME TIME, WHERE IS PROFITABILITY? WE HAVE SEEN THE CASH FLOW POSITIVE, NOT REJECTED UNTIL THE AND OF THE DECADE AND THAT'S WHY THEY NEED TO RAISE TENS OF BILLIONS OF DOLLARS TO PROP UP THE BUSINESS. CAROLINE: COMPUTE. SETH, WE THANK HIM. ALIBABA WRITING TO RELEASE ITS FLAGSHIP AI MODEL AS SOON AS THIS MONTH. THE UPDATE IS THE LATEST IN A FLURRY OF MODELS RELEASED AS COMPETITION FROM OPENAI AND DEEPSEEK HEAT UP. ALIBABA JUST RELEASED ITS 2.5 MODEL LAST WEEK, ALLOWING TEXT, PICTURE, AUDIO PROCESSING THAT COULD BE RUN ON PHONES AND LAPTOPS.
COMING UP, TOM WHEELER CURRENT VISITING FELLOW AT BOOKING INSTITUTION IS JOINING US NEXT THOUGHTS ON BIG TECH IN THE AGE OF TARIFFS AND GLOBAL TRADE WARS. SOME DEAL POTENTIAL. QUALCOMM. IS IT LOOKING TO BUY ALPHA WAVE? ANOTHER TWO COMPANY UP 45% ON THE REPORTS -- ANOTHER CHIP COMPANY. UP 45% ON THE REPORT.
THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." WE HAVE A SLOT BANKS BACK -- SLIGHT BOUNCE BACK AFTER THE WORST QUARTER FOR THE NASDAQ AND I WAS THREE YEARS. TECHNOLOGY ON THE HIGHER SIDE. CHINA UP ALMOST A PERCENTAGE POINT. STOXX 600 IN YOUR CLOSING UP MORE THAN 1.1%. ON THE -- 1.1% ON THE TECH INDEX.
THE EU SAYS IT IS READY TO FIGHT BACK AGAINST PRESIDENT TRUMP'S GLOBAL TARIFFS, STATING THEY HAVE STRONG PLANS TO ITALIANATE IF NECESSARY. -- RETALIATE FROM NECESSARY. URSULA VON DER LEYEN TRYING TO READY A RESPONSE HERE. KAILEY: WE HAVE SEEN THE EU PROMISED A RESPONSE TO THE 20 5% STEEL AND ALUMINUM TARIFFS PUT IN PLACE BY THE TRUMP ADMINISTRATION. THAT WILL AFFECT 26 BILLION EUROS IN GOODS FROM HARLEY DAVIDSONS TO THINGS LIKE BOURBON AND WHISKEY. WHAT THE EU IS PROMISING IS GREATER RETALIATION AFTER TOMORROW, WHICH IS SOON TO BE THE END LIMITATION OF 25% TARIFFS ON AUTO IMPORTS WHICH AFFECT EUROPEAN AUTO MANUFACTURERS AND WHATEVER RECIPROCAL TARIFFS FOR EU NATIONS THE PRESIDENT DECIDES ON. AS FOR WHAT THAT RETALIATION COULD LOOK LIKE, THE BIG QUESTION IS GOING TO BE WHETHER OR NOT THE EUROPEAN UNION DECIDES ANTI-COERCION INSTRUMENTS ARE GOING TO BE JUSTIFIED, ESSENTIALLY A SET OF TOOLS DESIGNED TO BE IN RESPONSE TO COUNTRIES USING TRADE OR OTHER ECONOMIC POLICIES TO TRY TO COERCE THE EUROPEAN UNION. THAT COULD HAVE SPECIFIC
APPLICATIONS FOR BIG TECH COMPANIES IN PARTICULAR. ONE OF THE ANTI-COERCION INSTRUMENTS COULD AFFECT INTELLECTUAL PROPERTY AND DIGITAL SERVICES TRADE, THINGS THAT TECH COMPANIES ARE INVOLVED IN. THE IRONY IS IF THAT IS HOW THINGS END UP, IT IS ONE OF THE THINGS THAT PRESIDENT TRUMP IS MOST UPSET ABOUT IN TERMS OF WHAT HE SEES AS UNFAIR PRACTICES BY EUROPE.
SO-CALLED NONTARIFF BARRIERS WHICH HE SEES AS NOT JUST VALUE ADDED TAX BUT REGULATORY POLICIES AROUND TECHNOLOGY. CAROLINE: I WANT TO GO THERE DEEPER. WE ARE SEEING SOME. EUROPEAN RESPONSE MERCEDES IN GERMANY SAYING IT IS WEIGHING PULLING ITS U.S.
ENTRY-LEVEL CARS BECAUSE OF TRUMP TARIFFS. THE CHEAPER MERCEDES, THEY WILL BE AT THE MOST IN TERMS OF ULTIMATE PROFITABILITY WHEN SHIPPED TO THE U.S. MERCEDES IS WEIGHING PULLING U.S. ENTRY-LEVEL CARS OVER THE U.S. TARIFFS.
GO TO THE DIGITAL SERVICES SIDE. THE IRONY IS THAT WAS WHAT REALLY ANNOYS BIG U.S. TECH, IN PARTICULAR MARK ZUCKERBERG. HIS EYES ARE ON THE DIGITAL
SERVICE TAX. HOW WOULD THAT BE RECTIFIED OR GO DEEPER IF THE EE RESPONDS IN THIS WAY? KAILEY: IT IS NOT JUST MARK ZUCKERBERG. PRESIDENT TRUMP DOES NOT LIKE THIS EITHER. HE HAS REPEATEDLY TOLD REPORTERS THAT THEY ARE UNFAIR U.S. TECHNOLOGY COMPANIES. HE SAID THIS ON MULTIPLE OCCASIONS. IT COULD MANIFEST IN DIFFERENT WAYS, INCLUDING THE TIGHTENING OF REGULATION AROUND BIG TECHNOLOGY COMPANIES AS THE EUROPEAN UNION IS AN IMPORTER OF SERVICES WHICH GIVES THEM LEEWAY AS TO HOW EXACTLY SERVICES ARE ABLE TO CONDUCT THEMSELVES. INTELLECTUAL PROPERTY IS ONE
WAY MUCH ANTI-COERCION INSTRUMENTS COULD COME INTO THE PICTURE. THERE COULD POTENTIALLY BE SERIOUS RETALIATION FOR THAT RETALIATION FROM PRESIDENT TRUMP, AS WE HAVE SEEN IN RESPONSE TO THE TARIFFS ON HARLEY DAVIDSONS AND ALCOHOL PRODUCTS. HE SUGGESTING 200% TARIFFS ON EUROPEAN WINE AND CHAMPAGNE. THIS COULD GO BACK AND FOURTH AND A LOT OF DIFFERENT ROUNDS. CAROLINE: KAILEY LEINZ, SO MUCH. AMID THIS U.S.-EU TRADE
TENSION, WE NEED TO BRING YOU AN EXPERT VOICE. TOM WHEELER, FORMER SEC CHAIRMAN. YOU ARE PUTTING SO MUCH THOUGHT INTO THE IMPACT OF THIS TIT-FOR-TAT. WHAT ULTIMATELY DO YOU THINK
THE U.S. CAN ACHIEVE HERE FOR ITS U.S. TECH COMPANIES WITH A THREADED TARIFFS? ANYTHING? TOM: KAILEY DID A TERRIFIC JOB EXPLAINING THE ISSUES HERE. AT THE ROOT THERE IS A CHANGE IN WHAT TARIFFS ARE ALL ABOUT. WE DON'T KNOW WHAT WILL HAPPEN TOMORROW. IF THIS DISCUSSION RESPONDING TO REGULATION COMES THROUGH, TRADITIONALLY, TARIFFS WERE IMPOSED TO PROTECT PRODUCTION. ON FOR EVERY 21, THE PRESIDENT -- FEBRUARY 21, THE PRESIDENT ISSUED INSTRUCTS TO DEAL WITH THE PROTECTING BIG TECH PROFITS. THE MOVE FROM PROTECTING
PRODUCTION TO PROTECTING PROFITS IS A SEACHANGE. IF WE SEE THAT TOMORROW, UNDOUBTEDLY THE EU IS GOING TO RESPOND. THIS WON'T BE THE FIRST STEP. THERE WILL BE NEXT STEPS. WE ARE ENTERING A WORLD THAT WE REALLY HAVE NOT EXPERIENCED BEFORE. CAROLINE: CAN YOU GO INTO HOW YOU THOUGHT ABOUT THIS EVEN WORK? THERE IS ONE THING ABOUT TARIFFING A PRODUCT, BUT DATA FLOWS? TOM: THERE IS A HUGE DIFFERENCE BETWEEN CARS AND CHAMPAGNE. AND ZEROS AND ONES. CAROLINE: A SHAME, BUT YES. TOM: YOU KNOW HOW TO TARIFF A BOTTLE
OF CHAMPAGNE. HOW DO I RESPOND TO ZEROS AND ONES? PARTICULARLY, THERE ARE TWO PARTS OF THAT. ONE, HOW DO YOU RESPOND WHEN THOSE DIGITAL SERVICES ARE GOING OUT OF THE COUNTRY INTO EUROPE WHERE THEY ARE BEING REGULATED RATHER THAN BEING BROUGHT IN FROM EUROPE LIKE A BOTTLE OF CHAMPAGNE? SURE, YOU CAN GO AFTER EUROPEAN COMPANIES LIKE BOOKINGS.COM AND THOSE, BUT THAT'S THE TIP OF THE ICEBERG. THAT IS SMALL POTATOES. HOW DO YOU DEAL WITH IT? HOW DO YOU DEAL WITH DATA FLOWS? DO YOU HAVE TO GET DOWN TO THE QUESTION OF -- OK, LET'S JUST THINK ABOUT IT. WHERE ARE THE DATA FLOWS IN AND
OUT OF THE EU? WELL, FINANCIAL TRANSACTIONS EVEN MORE THAN DIGITAL SERVICES ACTIVITIES. DO YOU PUT SOME KIND OF A TARIFF ON THOSE FLOWS? DO YOU PUT SOME KIND OF A TARIFF ON WHEN INFORMATION IS ACCESSED AND AMERICAN DATABASES? THERE IS A WHOLE NEW WORLD WE ARE ENTERING HERE. UNITED STATES DOMINATES THE CLOUD SERVICES MARKET. WHEN YOU ACCESS A CLOUD SERVICE PROVIDED BY THE AMERICAN COMPANY, IS THERE A TARIFF ON THAT? THIS MOVE FROM HARD GOODS THE SOFT GOODS IS REVOLUTIONARY. AS I SAID BEFORE, WHAT HAPPENS TOMORROW IS JUST THE FIRST STEP, NOT THE LAST. CAROLINE: TAKE US THROUGH MORE STEPS AND
WHETHER THE DESIRE TO RETALIATE, TO PROTECT PROFITS, COULD BACKFIRE AND END UP MAKING US MORE BIFURCATED WITH EUROPE. FASCINATING QUESTION. WILL DONALD TRUMP MAKE EUROPEAN TECH GREAT AGAIN BECAUSE OF THE FACT HE IS CREATING REASONS TO SEVER RELATIONSHIPS WITH AMERICAN TECH COMPANIES? THE UNDERLYING THEME OF THE RELATIONSHIP BETWEEN THE U.S. AND EUROPE HAS BEEN AROUND SECURITY. THE EUROPEAN COUNTRIES HAVE ALL RECOGNIZED THEY HAVE TO STEP UP TO THEIR OWN SECURITY. BUT WHAT IS SECURITY TODAY?
SURE, YOU CAN SWITCH FROM MAKING CARS TO TANKS. THAT DOESN'T REFLECT WHAT HAS BEEN GOING ON IN UKRAINE. WHERE IT IS NOT EXPENSIVE HEAVY WEAPON SYSTEMS LIKE TANKS THAT ARE DECISIVE, BUT INEXPENSIVE SOFTWARE-BASED SYSTEMS LIKE DRONES. WE HAVE SEEN A CHANGE IN THE BATTLEFIELD.
IT USED TO BE THAT SOFTWARE SUPPORTED HARDWARE -- KINETIC HARDWARE SYSTEMS. NOW YOU HAVE SOFTWARE INSTRUCTING THAT HARDWARE WHAT TO DO. YOU HAVE GOT TO BELIEVE THE EUROPEANS, AS THEY GO TO INCREASE THEIR DEFENSE CAPABILITIES ARE NOT GOING TO IGNORE THE FACT IT IS NOT JUST HARDWARE ANYMORE. IT IS SOFTWARE. CAN WE RELY ON THE UNITED STATES SOFTWARE SERVICE PROVIDERS? FOR INSTANCE, WHEN DONALD TRUMP SHUT DOWN STARLINK'S ACCESS TO THE UKRAINE ARMY AS A PART OF LEVERAGE WITH ZELENSKYY.
CAROLINE: WE MUST LEAVE IT THERE. WE THANK YOU. TERMINAL AND ON APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG. ♪ WE WELCOME OUR GLOBAL RADIO AND TV AUDIENCES NOW.
RIVIAN ANNOUNCING IT WILL BE SPINNING OFF A NEW COMPANY CALLED ALSO WITH THE AIM TO DEVELOP EV'S FOR SHORT TRIPS. 05 MILLION FUNDING FROM RIVIAN AND ECLIPSE. WE ARE WELCOMING JITEN BEHL RJ SCARINGE AND -- JITEN BEHL AND RJ SCARINGE. THE SPIN OUT OF NOW, WHY IS IT BETTER NOW TO LET IT THRIVE IN A SOLO MANNER? RJ: THANK YOU FOR HAVING US ON. WE THINK ABOUT OVERALL TRANSPORTATION STAYS -- SPACE. THERE IS ELECTRIFICATION OF
VEHICLES AND THE INFRASTRUCTURE WE KNOW TODAY. FIRST OF THE UNITED STATES AND SOON EUROPE. THERE ARE A LOT OF MILES THAT ARE MUCH SHORTER DISTANCE AND WORK BETTER WITH SOMETHING THAT'S A MUCH SMALLER FACTOR. WE KICKED OFF HIS GUMS WORKED -- A SKUNKS WORKS TEAM TO APPLIED IN A LOW-COST, SMALLER FORMFACTOR. WE REALIZED THE IDEA HAD A LOT OF LEGS. IT WAS A POWERFUL IDEA.
WE DECIDED THIS IDEA WAS BIG ENOUGH TO DESERVE ITS OWN BUSINESS. WE TOOK THE DECISION TO SPIN IT OFF. ECLIPSE LED THE FINANCING WITH 05 MILLION INVESTMENT. WE ARE EXCITED ABOUT WHAT IS TO COME. WE HAVE NOT SHOWN THE PRODUCTS
YET BUT THEY ARE INCREDIBLE. CAROLINE: HOW IS THIS RELATIONSHIP GOING TO EVOLVE? RJ WILL BE ON THE BOARD. JITEN: YES. IT'S EXCITING. I HAVE SPENT MANY YEARS AT RIVIAN WORKING CLOSELY WITH RJ. IN THE NEW ROLE AT ECLIPSE, WE REALLY EXCITED TO INVEST IN THE OPPORTUNITY AND DISRUPT THE MICRO MOBILITY SPACE. I'M EXCITED TO PARTNER AGAIN WITH RJ AND THE RIVIAN TEAM, AS WELL AS THE ALSO TEAM TO BRING THIS MISSION TO LIFE. CAROLINE:
I ASK YOU THE CONSUMER ISSUES. WE ARE WORRIED TO SAY THE LEAST ABOUT THE ECONOMY IN THE U.S. D THINK THE CONSUMER WILL BE THERE TO BACK THIS MORE THAN 00 MILLION YOU ARE PUTTING BEHIND THIS OFFERING THAT STARTS TO GET INTO THE HANDS OF 20 TONY SIX? -- INTO OUR HANDS IN 2026? JITEN: IF YOU LOOK AT THE TRANCE PETITION ECOSYSTEM -- TRANSPORTATION ECOSYSTEM, THERE IS STRESS WHEN IT COMES TO LIMITATIONS AND CONGESTION AND POLLUTION.
MICRO MOBILITY IS A VERY IMPORTANT PIECE OF THE PUZZLE. MORE CARS, MORE BUSES, MORE TRAINS IS NOT GOING TO BE THE ANSWER. YOU NEED SOMETHING SMALLER, SOMETHING MORE FLEXIBLE TO COMPLEMENT THE OTHER MODALITIES. WE BELIEVE MICRO MOBILITY IS A PERFECT SOLUTION TO THAT.
IT IS A LARGE MARKET ALREADY. IT IS GROWING RAPIDLY AROUND THE WORLD. IF YOU LOOK AT THE SOLUTIONS, THEY ARE WEAK TECHNICALLY. POOR USER EXPERIENCE. THEY LACK RELIABILITY. THIS IS WHERE THE OPPORTUNITY IS. THE CONSUMER IS WAITING FOR SOMETHING MORE COMPELLING TO
HIT THE MARKET. CAROLINE: IT'S A GLOBAL OPPORTUNITY ON MICRO MOBILITY. YOU TALKED ABOUT HOW IT'S A GLOBAL OPPORTUNITY WITH RIVIAN AND THE R2 ROLLOUT. IS A DIFFICULT TIME TO BE A GLOBAL BUSINESS. HOW ARE YOU PREPARING YOURSELF TO ACCESS THE EUROPEAN MARKET AND WE ARE WORRYING ABOUT TARIFFS AND SETTING ASIDE HUNDRED MILLION DOLLARS IN POTENTIAL POLICY IMPACTS? RJ: IT'S A COMPLEX ENVIRONMENT. WE ARE SPENDING A LOT OF TIME INTERPRETING AN UNDERSTANDING WHAT THE TARIFF APPLICATIONS ARE PRESSING IN THE UNITED -- IMPLICATIONS ARE FOR THE UNITED STATES AND IN PARTICULAR EUROPE MAY RESPOND.
HELP THE CASH W -- HOW THE TARIFFS LAY OUT WILL HAVE BIG IMPLICATIONS NEXT YEAR. IT IS A VERY DYNAMIC SITUATION. SOME OF THE UNCERTAINTY IS THE MOST CHALLENGING TO NAVIGATE. CAROLINE:R RJ, OUR HUMAN DISCUSSIONS WITH THE ADMINISTRATION ITSELF AND GETTING A GLEAN OF WHAT THEY ARE THINKING OF FOR THE FUTURE? RJ: ONE THING THAT'S IMPORTANT IS IT WE TAKE A BIG STEP BACK FROM ALL THE NOISE OF WHAT IS HAPPENING. GLOBAL HAPPEN TOMORROW WITH THE --WHAT WILL HAPPEN TOMORROW WITH THE TARIFFS. THE BIG STEP BACK.
THERE IS A CLEAR DIRECTIVE TO DRIVE TECHNOLOGY MANUFACTURING INTO THE U.S. FOR RIVIAN, WE HAVE JUST UNDER 17,000 EMPLOYEES HERE IN THE U.S. WE HAVE A PLANT IN CHICAGO. WE ARE BUILDING ANOTHER IN GEORGIA. WE ARE GROWING RAPIDLY. 100% OF VEHICLES ARE PRODUCED HERE. ALL OF OUR TECHNOLOGY IS HERE. IN TERMS OF THE ADMINISTRATION'S OBJECTIVES, WE ARE ALIGNED WITH WHAT IS BEING ASKED AND THE OVERALL POLICY FRAMEWORK THEY ARE TRYING TO DRIVE TOWARDS. IN TERMS OF HOW THAT TRANSLATES
TO OUR EXPANSION IN EUROPE AND ELSEWHERE, WE HAVE TO RECOGNIZE IT'S A VERY DYNAMIC ENVIRONMENT. OUR PRODUCTION FOOTPRINT MAY BE DIFFERENT THAN WHAT WE WERE ORIGINALLY PLANNING. ALL OF US ACROSS ALL THE DIFFERENT MANUFACTURERS ARE WAITING TO SEE HOW THINGS LOOK WHEN THE DUST SETTLES. CAROLINE: THAT UNCERTAINTY IS AFFECTING YOU AS A TEAM OF OPERATORS AND INVESTORS. HOW ARE THE OTHER FOUNDERS
COPING WITH THIS MOMENT? JITEN: UNCERTAINTY IS THE KEY WORD HERE. WHAT IS IN OUR CONTROL IS TO FOCUS ON TWO THINGS. MAKING SURE THAT FOUNDERS BUILDING IN THE PHYSICAL INDUSTRIES HAVE THE MAXIMUM CONTROL ON THE STACK. WHAT THEY DESIGN, WHAT THEY ENGENDER.
IF THEY HAVE CONTROL OVER IT, THEY CAN MAKE DECISIONS TO OPTIMIZE AROUND DIFFERENT ENVIRONMENTS. THE SECOND THING IS TO BUILD THAT RESILIENCE AND FLEXIBILITY IN THE SUPPLY CHAIN SO IT IS ABLE TO NAVIGATE SHORT-TERM, MEDIUM-TERM, AND LONG-TERM CHANGES IN THE POLICY ENVIRONMENT. THE KEYWORD IS CONTROL THE CONTROLLABLE. THINGS WILL CHANGE.
THINGS WILL CHANGE BACK. WHAT IS IMPORTANT IS TO BUILD A RESILIENT STRATEGY AND SUPPLY CHAIN NETWORK WITHIN THE COMPANY THAT CAN NAVIGATE ALL THESE DIFFERENT ENVIRONMENTS. CAROLINE: RJ, DO YOU THINK YOU HAVE BENEFITED FROM PEOPLE MOVING AWAY FROM TESLA FOR POLITICAL REASONS? RJ: ONE THING THAT IS OFTEN MISSED IS WE THINK ABOUT ELECTRIFICATION. ONLY ABOUT 8% OF NEW VEHICLE SALES ARE ELECTRIC IN THE UNITED STATES.
WHEN WE THINK ABOUT COMPETITION AND GROWING OUR MARKET SHARE, THE BIGGEST OPPORTUNITY IS BRINGING PEOPLE INTO OUR NEW TECHNOLOGY VEHICLES AND INTRODUCING PEOPLE INTO WHAT IT FEELS LIKE TO BE IN A CONNECTED, SMART ELECTRIC VEHICLE. WE REALLY BELIEVE THERE NEEDS TO BE A LOT OF CHOICE FOR US TO GO FROM 8% TO 50% AND EVENTUALLY 100%. WE NEED LOTS OF SUCCESSFUL COMPANIES. WE NEED TESLA TO BE VERY SUCCESSFUL. WHEN YOU RIVIAN TO BE
SUCCESSFUL. THE EXISTING MANUFACTURERS TO BE SUCCESSFUL. WITH THE R2 PROGRAM, IT IS MUCH LOWER-PRICED. IT'S AN INCREDIBLE PRODUCT. IT WILL GIVE CUSTOMERS ANOTHER CHOICE. WE THINK THE PRESENCE OF ANOTHER CHOICE WILL BE IMPORTANT FOR OUR BRAND AND PRODUCT POINT OF VIEW. CAROLINE: THANK YOU FOR YOUR CLARITY OF
THOUGHT TODAY WHEN THERE IS NOT MUCH CLARITY IN THE ECONOMY. JITEN BEHL AND RJ SCARINGE, GREAT TO HAVE YOU BOTH. COMING UP, CAN ELON MUSK IMPLEMENT ANOTHER POLITICAL WIN? MORE ON THAT NEXT.
CAROLINE: ELON MUSK IS LOOKING TO NOT ANOTHER POLITICAL WIN, SPENDING MILLIONS OF DOLLARS TO INFLUENCE AN OUTCOME. THIS TIME FOR THE WISCONSIN SOUP IN COURT RACE THAT COULD TIP THE BALANCE IN FAVOR OF THE CONSERVATIVES ON THE COURT. MIKE SHEPPARD JOINS US NOW. THIS IS A PLAYBOOK THAT SEEMS TO BE REPEATING WITH BIG CHECKS.
MIKE: VERY MUCH SO. HE HAS PUT 7 MILLION THROUGH TWO GROUPS TOWARDS THIS RACE. WHY DO WE CARE ABOUT WISCONSIN'S SUPREME COURT? IT IS A SWING STATE. MUSK HAS TAKEN A DEEP INTEREST IN THIS, NOT ONLY BECAUSE OF ABORTION RIGHTS AND LABOR LAWS THAT THE COURT CAN DECIDE, BUT QUESTIONS ABOUT CONGRESSIONAL REDISTRICTING. BACK IN TIP THE BALANCE TO IS REPUBLICANS WITH HOME MUSK HAS ALIGNED ALONG WITH DONALD TRUMP. CAROLINE:
$82 MILLION BEING SPENT. THIS IS MORE MILLIONS AND WE HAVE EVER SEEN ON SUCH A RACE, RIGHT? MIKE: THAT'S RIGHT. MUSK SUPERCHARGED SPENDING IN OTHER AREAS. HE IS PROMISING TO STAY ON THE STAGE POLITICALLY GOING TO THE MIDTERM ELECTIONS IN 2026. THIS IS CREATING FOR MANY IN CONGRESS AND MANY DOWN THE BALLOT THIS NOTION THAT THEY HAVE TO RECKON WITH MUSK AS A FACTOR.
IT'S ALSO AN ISSUE FOR SOME REPUBLICANS HERE WONDERING, DO I CHALLENGE DONALD TRUMP ON SOMETHING? IF THEY DO, THEY RUN THE RISK OF PERHAPS FACING A PRIMARY CHALLENGE FUNDED BY MUSK AND BACKED BY DONALD TRUMP. CAROLINE: AND IS IT TOMORROW THE RESULT? RJ: WE MAY HEAR A SOON AS TONIGHT BUT IT DEPENDS ON HOW CLOSE THE CONTEST IS. WE ARE WATCHING OTHER CONTESTS ELSEWHERE IN FLORIDA WHERE MUSK HAS PUT MONEY. THESE ARE SPECIAL CONGRESSIONAL
RACES. THEY ARE NOT INSPECTED TO BE AS TIGHT. FOLLOW THEM WILL BE A LITTLE BIT -- ALL OF THEM WILL BE A LITTLE BIT OF A REFERENDUM ON ELON MUSK IN HIS NEW POLITICAL ROLE. CAROLINE:
MIKE SHEPPARD, WE THANK YOU. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." CHECK OUT OUR PODCAST ON THE TERMINAL AND ONLINE ON APPLE, SPOTIFY, AND IHEART. FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." ♪
2025-04-04 16:40
