Nvidia Shrugs Off China Concerns With Upbeat Forecast | 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 AND SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. NVIDIA VIES TO BECOME THE MOST VALUABLE COMPANY AGAIN. SHARES RALLY ON STRONG EARNINGS. ED: APPLE BACK UP OVER $3 TRILLION AS THE COMPANY PLANS A SWEEPING CHANGE TO ITS OPERATING SYSTEM NAMES AND WE SPEAK TO THE CEO OF INFOMATICA ABOUT HIS $8 BILLION DEAL WITH SALESFORCE.
WE ARE CURRENTLY HIGHER TO THE TUNE OF .7%. WE ARE MOVING AROUND AS THE GDP FIGURES COME IN LOWER THAN EXPECTED BUT WE ARE SEEING RESILIENCE IN EARNINGS AND ALSO THE MOOD CHANGE WHEN IT COMES TO TARIFFS AND WE WILL DIG INTO THE FACT THAT THE U.S. COURTNEY: IT WENT ABOVE AND BEYOND THE ADMINISTRATION. ED: ONCE AGAIN NVIDIA IS THE WORLD'S MOST VALUABLE COMPANY.
STRONG OUTLOOK FOR SALES DESPITE CLEAR HEADWINDS AND BIG QUESTIONS ABOUT THE FUTURE OF THAT COMPANY IN CHINA. LATER WE WILL HEAR FROM THE CEO. STOCK TRADING AT ITS HIGHEST LEVEL SINCE AROUND JANUARY. IT IS DRAGGING A LOT OF ITS
SUPPLIERS WITH IT. CAROLINE: ALL OF THEM HAVE TO WITHSTAND GEOPOLITICAL RISK. U.S. COURT OF INTERNATIONAL TRADE HAS RULED PRESIDENT HAS EXCEEDED HIS AUTHORITY IN IMPOSING SWEEPING TARIFFS, RULING THEM ILLEGAL. SENIOR WHITE HOUSE OFFICIALS DOWNPLAYING THE COURT RULING IN EXPRESSING CONFIDENCE ABOUT AN APPEAL.
LET'S GET TO IT ALL WITH KAILEY LEINZ WHO IS HERE WITH US. MUCH DOES THIS UP AND THE TARIFF POLICY? KAILEY: NOT THE TARIFF POLICY IN ITS ENTIRETY BUT CERTAIN PARTS, ONE THE PRESIDENT USE THE INTERNATIONAL ECONOMIC EMERGENCY POWERS ACT FROM THE 1970'S TO IMPOSE. THAT WOULD INCLUDE THE 10% BASE RATE OF RECIPROCAL TARIFFS THAT WERE STILL IN PLACE IN ALL COUNTRIES INCLUDING THE ONES IMPOSED ON CANADA, MEXICO, AND CHINA. THE JUDGE'S RULING UNANIMOUSLY THAT THAT WAS NOT AN ECONOMIC EMERGENCY THAT JUSTIFY THE USE OF THESE POWERS.
THAT IS NOT TO SAY THERE NOT OTHER AUTHORITIES THE PRESIDENT DOES HAVE THE RIGHT TO USE LIKE SECTION 200 -- LIKE SECTION 232. THEIR OTHER AUTHORITIES HE CAN PURSUE AS WELL WHEN IT COMES TO SECTION 301, UNFAIR TRADE PRACTICES, THOUGH THAT WOULD REQUIRE INVESTIGATION. WE HAVE HEARD FROM AN MINISTRATION OFFICIALS TODAY, THEY CAN GO DOWN OTHER AVENUES, IT DOES NOT MEAN THEY WILL BE ABLE TO ACT WITH AS MUCH EASE AND SPEED WHEN HE WAS SUGGESTING HE WILL IMPOSE THESE BLANKET LEVEES. HE HAS APPEALED THIS. IT COULD GO ALL THE WAY TO THE SUPREME COURT. FOR NOW THE TARIFFS, AT LEAST THE BROAD BASED ONES CANNOT STAND. ED: LAST NIGHT THERE WERE A SERIES
OF EVENTS. THERE IS A CHRONOLOGY THAT IS IMPORTANT TO UNDERSTAND. THE FIRST THING THAT HAPPENED WAS NVIDIA CEO JENSEN HUANG SAYING THIS ABOUT CRUMBS TARIFF POLICY: >> THE IDEA OF TARIFFS BEING A PILLAR OF A BOLD VISION TO RE-INDUSTRIALIZE AND ONSHORE MANUFACTURING AND MOTIVATE THE WORLD TO INVEST IN THE UNITED STATES IS AN INCREDIBLE VISION. I THINK THIS'LL BE A TRANSFORMATIVE IDEA FOR THE NEXT CENTURY. WE ARE ALL IN ON THE IDEA. ED: 10 MINUTES AFTER THAT STATEMENT THERE WAS A RED HEADLINE ON THE BLOOMBERG TERMINAL ABOUT THE U.S. COURT OF INTERNATIONAL TRADE'S DECISION.
I AM ONLY POINTING OUT THAT IS AN ASTONISHING TIMELINE OF EVENTS. KAILEY: IT CERTAINLY IS. WE HEARD JENSEN HUANG TALKING ABOUT ONE OF THE THINGS THE TARIFFS WERE INTENDED TO DO IS BRING MORE ON SHORING TO THE U.S. AND REVITALIZE AMERICAN MANUFACTURING. THERE WERE ALSO INTENDING FOR
THIS TO BE A REVENUE RAISER. WE HAD SEEN MILLIONS OF DOLLARS COMING INTO THE TREASURY COFFERS AS A RESULT OF THE TARIFFS. THEY ARGUE IT COULD RAISE HUNDREDS OF BILLIONS OF DOLLARS A YEAR AND OFFSET SOME OF HIS OTHER PRIORITIES INCLUDING TAX CUTS IN THE PACKAGE MAKING ITS WAY THROUGH CONGRESS. THAT UPENDS THAT EFFORT FISCALLY. THERE IS ALSO THE NARRATIVE ABOUT THE U.S. TRYING TO MAKE SURE CHINA'S OVERCAPACITY IS ADDRESSED. THIS IS WHY CHINA IS A FACTOR
NOT JUST IN DIRECT TALKS BETWEEN THE U.S. AND CHINA WHEN IT COMES TO TRADE PRACTICES AND THINGS LIKE EXPORT CONTROLS BUT WHY CHINA HAS FACTORED INTO CONVERSATIONS THE U.S. HAS HAD WITH OTHER PARTNERS WHEN THEY WANT TO NEGOTIATE THESE DEALS BECAUSE THEY WANT TO MAKE SURE CHINA NOT FLOODING THE MARKET WITH CHEAP GOODS AND MANIPULATING IT AND DISADVANTAGING OTHER U.S. COMPANIES BUT THEY MAY HAVE TO FIND OTHER AVENUES TO PURSUE THAT. KAILEY LEINZ, THANK YOU VERY MUCH. LET'S GET BACK TO THE CONVERSATION WITH NVIDIA CEO
JENSEN HUANG. THE MAIN FOCUS IS THE FUTURE OF HIS COMPANY IN AND COMPETITION WITH CHINA. >> THE CHINESE COMPETITORS HAVE ADVANCED GREATLY OVER THE LAST YEAR. LIKE EVERYBODY ELSE THEY ARE DOUBLING OR QUADRUPLING THEIR CAPABILITIES EVERY YEAR AND THE VOLUME IS INCREASING SUBSTANTIALLY. THESE ARE DATA CENTER CHIPS. THEY CAN BE QUITE LARGE. WITHOUT AMERICAN TECHNOLOGY THE AVAILABILITY OF CHINESE TECHNOLOGY WILL FAIL THE MARKET. WHATEVER WE OFFER HAS TO AT
LEAST BE COMPETITIVE AND HAS TO ADD VALUE TO THE MARKET. ED: DOES HUAWEI HAVE AN ACCELERATOR THAT IS PERFORMANCE AS H20 OR CLASSES OF GPU YOU MAKE? JENSEN: ALL WAY -- HUAWAI'S TECHNOLOGY IS PROBABLY COMPARABLE TO A H200. THEY HAVE BEEN MOVING QUITE FAST AND THEY HAVE ALSO OFFERED THIS NEW SYSTEM CALLED CLOUD MATRIX. THAT SCALES UP TO A LARGER SYSTEM THAN OUR LATEST GENERATION BLACKWELL. HUAWEI IS A FORMIDABLE TECHNOLOGY COMPANY AND THEY ARE NOT SITTING STILL. THEY LOOK FOR WAYS TO COMPETE
AND THEY ARE QUITE FORMIDABLE. ED: WITH THAT IN MIND, YOU HAVE EXPLAINED THE LANDSCAPE. NVIDIA'S ABILITY TO OPERATE IN CHINA. YOU AND I HAVE DISCUSSED THE IDEA THAT THEY ARE 50% OF THE WORLD'S AI RESEARCH IS FROM CHINA. ARE YOU HAVING A SENSE OF THE VACUUM CREATED THAT THOSE BIG NAMES, TENCENT OR ALIBABA THAT WERE BUYERS OF H20 HAVE ALREADY PIVOTED AND TURNED TO THE OFFERING FROM HUAWEI BECAUSE OF THE POLICY THAT IS IN PLACE? JENSEN: THEY HAVE NO CHOICE. ONE OF THE CHALLENGES OF THE CHANGING REGULATIONS IS THE ABILITY FOR MARKETS TO TRUST THE NVIDIA AND ULTIMATELY AMERICAN PLATFORMS. IT IS PRUDENT FOR THE CHINESE
CUSTOMERS TO MAKE SURE THEY DEVELOP THEIR STACK ON HUAWEI. IT IS HARD TO RELY ON AMERICAN TECHNOLOGY AT THIS POINT. THAT IS ONE OF THE UNFORTUNATE PARTS OF CHANGING POLICIES. ANYHOW, I HAVE EVERY CONFIDENCE THAT IF ABLE TO COMPETE AMERICAN COMPANIES WILL COMPETE. TO WRITE OFF AMERICAN
TECHNOLOGY COMPANIES IS NOT SMART. THIS IS THE HOME OF SOME OF THE BRIGHTEST COMPUTER SCIENTISTS IN THE WORLD. AMERICAN COMPANIES ARE INCREDIBLY COMPETITIVE. WE JUST HAVE TO HAVE THE
CONFIDENCE TO COMPETE AND IF WE HAVE THE CONFIDENCE WE WILL WIN. CAROLINE: JENSEN HUANG IN A EXTRAORDINARY CONVERSATION WITH ED LUDLOW. LET'S TALK MORE ABOUT NVIDIA'S EARNINGS. FOR YOU, DO THE NUMBERS GIVE SOME RELIEF THAT THEY CAN DRIVE FORWARD, THAT REVENUE WILL CONTINUE TO EXPLODE EVEN WITH NO ACCESS TO CHINA? >> IT IS PRETTY CLEAR THAT CHINA DID NOT PROVE TO BE MUCH OF A HEADWIND AT ALL. FOLKS CAME OUT AND THEY CUT
THEIR NUMBERS IN ADVANCE BECAUSE OF THE ANNOUNCEMENT OF THAT RESTRICTION ON H 20. WHEN YOU LOOK AT WHAT THEY DELIVERED IT IS PRETTY CLEAR TO ME THAT NVIDIA AND ITS CUSTOMERS ARE STILL IN A SITUATION OF NOT BEING ABLE TO PRODUCE ENOUGH OF THOSE BLACKWELL CHIPS TO SATISFY DEMAND. YOU HAVE TO LISTEN CAREFULLY. HE SAID THEY WOULD HAVE HAD 2.5 BILLION MORE IN SALES TO CHINA. HE DID NOT SAY THEY WOULD'VE HAD 2.5 BILLION MORE IN SALES
IN TOTAL. WHAT HAPPENED IS THEY HAD PLENTY OF PEOPLE ON THE WAITLIST TO GET THOSE CHIPS AND WHEN THEY CANNOT SELL THEM THEY LOST THE H20 BUT THEY WERE ABLE TO PULL OUT OF THEIR HATS THE BLACKWELL AND RAMP THAT UP MORE QUICKLY. CAROLINE: DOES IT CHANGE ANY OF YOUR PORTFOLIO ALLOCATION TO NVIDIA IF THIS RESTRICTION REMAINS AND IF JENSEN DOES NOT DECIDE TO LOOK FOR A NEW DESIGN THAT DOES MEET WASHINGTON'S ABILITIES FOR HIM TO SELL IT TO CHINA ONCE MORE? JOANNE: I DON'T THINK, GIVEN WASHINGTON'S CURRENT STANCE THERE WILL BE ANYTHING THEY CAN DO ABOUT THIS. HE SAID HE WAS WORKING ON SOMETHING. WHEN YOU LOOK AT THE
COMPETITIVE, THE ALTERNATIVE, WHICH IS HUAWEI, WHY WOULD ALIBABA OR TENCENT BY A LESSER CHIP THAN THE H20. THE ONLY WAY THEY WOULD IS IF HUAWEI IS CAPACITY CONSTRAINED. THESE ARE BIGGER CHIPS. THAT IS HOW THEY ARE GETTING TO
THE HIGHER PERFORMANCE. THERE PUTTING MORE SPACE ON THE CHIPS BETWEEN TRANSISTORS. IF THEY DID FIND AWAKE PERHAPS THESE CUSTOMERS WOULD BUY EVEN A LESSER CHIP FROM NVIDIA. LOOK AT THE GLOBAL DEMAND. WE ARE YEARS AWAY FROM THE VIDEO RUNNING OUT OF CUSTOMERS EVEN WITHOUT CHINA. ED: NVIDIA IS UP ALMOST 5% RIGHT NOW.
I AM LOOKING AT THE LANDSCAPE OF WHAT ELSE IS UP. YOU TELL THE, DO YOU BELIEVE IN THE BIG PICTURE THAT JENSEN PRESENTS WHICH IS THE INVESTMENT CURVE FOR THE AI INFRASTRUCTURE AROUND THE WORLD IS EXPONENTIAL. HE USES WORDS LIKE EXPONENTIAL AND INSATIABLE DEMAND. JOANNE:
JENSEN IS VERY GOOD AT DRAWING EXCITING PICTURES. WE WILL HAVE TO SEE HOW MUCH UPTICK THERE IS. THE EARLY SIGNS ARE VERY POSITIVE.
APPLICATIONS FOR AI ARE SPREADING TO MULTIPLE SECTORS, WHETHER IT IS HEALTH CARE, INDUSTRIAL, FINANCIALS. NOW WE ARE SEEING THE DEMAND BY OTHER SOFTWARE. HE HAS ON HIS PLATE A VERY BIG OPPORTUNITY IN EUROPE. WE WILL LEARN MORE ABOUT THAT AFTER HIS TRIP NEXT WEEK, BUT ALSO ENTERPRISE. RIGHT NOW ENTERPRISE ON PREMISES COMPUTING IS THE VAST MAJORITY OF COMPUTE OUT THERE FOR DATA CENTERS, FOR DATA WORK. THERE IS AN OPPORTUNITY THERE
FOR ON-SITE AI. THAT WILL BE A VERY LARGE MARKET IN ADDITION TO THE SECTOR SPREAD. I THINK THERE IS A BIG OPPORTUNITY AHEAD. IT GIVES US GOOD REASON TO CONTINUE HOLDING NVIDIA FOR CLIENTS WHICH WE HAVE DONE SINCE EARLY 2022. ED:
THE BRAK -- THE BLACKWELL SERVER DESIGN, DELL HAS TOUCHED IT, MICRON HAS TOUCHED IT. IT IS INTERESTING TO SEE THOSE NAMES HIGHER. THIS IS THE CEO OF AMERICA'S MOST IMPORTANT TECHNOLOGY COMPANY TELLING CHINESE TECHNOLOGY COMPANIES NOT TO BOTHER WITH AMERICAN TECHNOLOGY AND TO BUY HUAWEI.
HOW DO YOU MODEL FOR AND ASSESS THE STOCK BASED ON THE CEOS RELATIONSHIP WITH CHINA AND THE PRESIDENT OF THE UNITED STATES AND THE FINE LINE HE IS CLEARLY WALKING? JOANNE: VERY TRICKY POLITICS FOR EVERY CEO. I THINK HE MADE A REALLY IMPORTANT POINT AND IT IS ONE WE HAVE SEEN BEFORE THAT THERE IS A STANDARDS BATTLE GOING ON ON WHICH TYPE OF TECHNOLOGY PLATFORM WILL AI APPLICATIONS BE BUILT? HE IS RIGHT TO POINT OUT THAT IT IS BETTER IF WE THE U.S. AND NVIDIA AND OUR OTHER COMPANIES WIN THAT STANDARDS BATTLE. IT WILL EXPAND OUR MARKETS, NOT JUST IN CHINA BUT BEYOND CHINA. HE IS GOING OUT THERE TO TRY TO
WIN BUSINESS FROM EUROPE. IT IS HARD TO PUT NUMBERS ON THESE THING. FOR THE FORESEEABLE FUTURE WE HAVE A SITUATION WHERE THE WAITING LIST FOR THE CHIPS IS SO LARGE THAT MISSING OUT ON CHINA ITSELF IS PROBABLY NOT THAT BIG OF A DEAL. SOME YEARS FROM NOW WE MIGHT FEEL OR NVIDIA MIGHT FEEL THE LOSS OF THAT MARKET IF SOMETHING DOES NOT CHANGE. JOANNE FEENEY FROM ADVISORS CAPITAL MANAGEMENT, THANK YOU. COMING UP, SALESFORCE MAKES
ANOTHER PUSH. ED: BREAKING NEWS CROSSING THE BLOOMBERG TERMINAL. THE FEDERAL JUDGE IS WEIGHING HARVARD UNIVERSITY'S LAWSUIT WHICH CHALLENGES THE TRUMP ADMINISTRATION AND ITS BAN ON HER INTERNATIONAL STUDENTS. THAT JUDGE IS SAYING SHE WILL EXPAND THE TEMPORARY BLOCK THAT HAD BEEN PUT IN PLACE ON THE ENFORCEMENT OF THAT TRUMP ADMINISTRATION BAN.
THERE HAD BEEN AN ARGUMENT FROM HARVARD UNIVERSITY THAT THE TRUMP ADMINISTRATIONS BAN ON ENROLLING INTERNATIONAL STUDENTS CAUSED HARM AND SPREAD FEAR WHICH WAS THE JUSTIFICATION THE JUDGE HAD TO ORIGINALLY DO THE TEMPORARY BLOCK. NOW THE NEWS CROSSING THE BLOOMBERG IS THE SAME JUDGES EXPANDING THE BLOCK. WE WILL BRING YOU MORE DETAILS AS WE GET THEM. LET'S LOOK AT SHARES OF SALESFORCE. THE COMPANY RAISED ITS FORECAST CITING STRONG REVENUE CONTRIBUTIONS FROM ITS AI ASIAN PRODUCTS. IT EXPECTS REVENUE BETWEEN 41
AND $41.3 BILLION COMPARED TO AN EARLIER FORECAST OF $40.5 BILLION TO $40.9 BILLION. CAROLINE: IT WAS NOTABLE BECAUSE YOU STAY WITH SALESFORCE AND THE SOFTWARE GIANT ANNOUNCED IT WILL BE ACQUIRING INFOMATIC IN AN EFFORT TO HELP ITS CUSTOMERS ROLET AI TOOLS SOONER. LET'S WELCOME THE CEO, AMIT
WALIA. YOU'RE TALKING ABOUT CONTINUING YOUR INFORMATION, YOUR PRODUCT ENROLLMENT WITH SALESFORCE. I WANT TO ASK ABOUT THIS UNIFIED ARCHITECTURE. WHAT WILL YOU BE ABLE TO DO AS A COMBINED FORCE? AMIT: IS A PLEASURE TO BE HERE.
IT IS AN OPPORTUNITY FOR INFOMATICA AND FOR OUR PARTNERS ACROSS THE GLOBE. AI IS ABOUT GETTING THE RIGHT DATA, HIGH-QUALITY DATA WITH GOOD GOVERNANCE FOR TO BE TRUSTED INTO DELIVER RESULTS THAT THE REVOLUTION WANTS. MARK HAS BEEN A VISIONARY AND TOGETHER WE CAN BRING THAT SCALE FOR OUR JOINT CUSTOMERS IN THE PLATFORM AND THE SCALE THEY HAVE WITH BEST IN CLASS DATA WE HAVE IS A BEST COMBINATION FOR THE INDUSTRY LET ENTERPRISES SCALE OUR DEBT.
CAROLINE: YOU HAVE BEEN WITH INFOMATICA FOR MORE THAN A DECADE IN VARIOUS ROLES AND YOU ARE CEO NOW. HOW DOES IT FEEL TO BE PASSING THE COMPANY ONTO NEW OWNERSHIP WHEN FOR EXAMPLE LAST YEAR YOU WERE TALKING ABOUT DOING THE SAME THING BUT UNWOUND ON A PRICE POINT THAT SEEMS TO BE HIGHER AT THAT POINT? AMIT: I AM THRILLED. THE OPPORTUNITY IS TO TAKE THIS COMPANY AND SCALE ITS INNOVATION AND SKILLETS REACH FOR OUR CUSTOMERS AND WHO BETTER THAN SALESFORCE? LOOK AT THE INNOVATION ENGINE THEY HAVE.
WHEN WE STEPPED BACK AND LOOKED AT IT I COULD NOT BE MORE THRILLED. MARK HAS BEEN A VISIONARY. HE HAS CREATED MANY EVOLUTIONS OF ENTERPRISE TECH INDUSTRY AND I DO NOT THINK IT COULD BE BETTER THAN FOR INFOMATICA TO BE THERE TO HELP OUR CUSTOMERS. ED: THANK YOU FOR YOUR TIME. YOUR RELATIONSHIP WITH SALESFORCE IS SOMETHING WE'VE BEEN TALKING ABOUT FOR ABOUT A YEAR.
HOW DID THE DEAL COME TOGETHER? THE THING THAT SEEMS TO OF CHANGED BETWEEN NOW AND SEVERAL MONTHS AGO IS THE SHARE PRICE. AMIT: IT IS ALL ABOUT GEN AI. THEY HAVE BEEN INVESTING IN US. THEY ARE A PARTNER OF OURS. THEY ARE A USER OF OUR PRODUCTS.
THIS RELATIONSHIP HAS BEEN THERE FOR A LONG TIME. WE HAVE THOUSANDS OF JOINT CUSTOMERS AND WE SEE THE ROLE OF GEN AI CANNOT COME TO FRUITION WITH GOOD DATA, OUR GOVERNANCE, OUR METADATA, OUR QUALITY. THEY TALK TO CUSTOMERS, WE TALK TO CUSTOMERS. TO ME IT WAS THE RIGHT TIME FOR US TO COME TOGETHER AND ACCELERATE WHAT YOU BEEN TALKING ABOUT IN THE ENTERPRISE IS STUCK, MAKING GEN AI WAS TO PROTECTION AND WE CAN HELP THEM WITH THE HELP OF THEIR SCALE. ED: THIS IS ROUNDABOUT IT.
TO CLOUT AND NOW A BIG AI DRIVEN SHIFT BACK TO ON PRAM. CAN YOUR CUSTOMERS ORDER JOINT CUSTOMERS STILL TAKE THE ON PREM OPTION OR WILL THIS BE A SALESFORCE CLOUD SHIFT? OUR CLOUT -- AMIT: OUR CLOUT TECHNOLOGY WE CAN RUN IN ANY KIND OF CLOUD, PRIVATE CLOUD, HYBRID CLOUD WORKLOAD. CUSTOMERS HAVE ALL KINDS OF OPTIONS WITH THIS ARCHITECTURE WE HAVE. WE DO NOT PUT THE DATA IN THE PUBLIC LANDS. WE HAVE ALL OF THOSE FENCES AND
ARE WORKING WITH ENTERPRISE CUSTOMERS. WE JUST CAME UP OUR USER CONFERENCE WE LAUNCHED. WE LAUNCHED NEW VERSIONS OF OUR GEN AI TECHNOLOGY AND WE HAVE HUNDREDS OF CUSTOMERS USING IT. ED: INFOMATICA CEO AMIT WALIA.
THANK YOU FOR YOUR TIME ON "BLOOMBERG TECHNOLOGY." ED: APPLE IS PLANNING THE MOST SWEEPING CHANGE YET TO ITS OPERATING SYSTEM NAMES, PART OF A SOFTWARE OVERHAUL THAT EXTENDS TO ALL OF ITS DEVICES. SOURCES SAY THE NEXT APPLE OPERATING SYSTEMS WILL BE IDENTIFIED BY YEAR RATHER THAN WITH A VERSION NUMBER IN AN EFFORT TO BRING CONSISTENCY TO HIS BRANDING. LET'S GET OUT TO BLOOMBERG'S DANA WOLLMAN. EXPLAIN IT TO ME. DANA: GOING FORWARD ALL OF THE OPERATING SYSTEMS ACROSS APPLE WILL HAVE THE NUMBER 26 ATTACHED. THAT REFERS TO THE YEAR 2026, AS OPPOSED TO EACH VERSION OF THE SOFTWARE DENOTING THE GENERATION WE ARE IN ON THAT VERSION OF THE SOFTWARE WHICH IS CONFUSING FOR CONSUMERS AFTER A WHILE BECAUSE APPLE LAUNCHED THESE DIFFERENT PLATFORMS AT DIFFERENT POINTS IN ITS COMPANY HISTORY.
NOW IT IS TAKING AN APPROACH SIMILAR TO WHAT VEHICLE MAKERS DO WHEN THEY ARE LAUNCHING NEW CARS. IN THIS CASE SETTLING ON THE YEAR AND CHOOSING THE NEXT YEAR AS OPPOSED TO THE CURRENT ONE. IF THAT MAKES ANY SENSE. CAROLINE: WWDC RINGS AND EASIER FORMFACTOR FOR DEVELOPERS BUT WHAT THEY WANT TO SEE IS HOW IS GENERATIVE AI BEING INTEGRATED INTO APPLE? HOW ARE THEY PROGRESSING INTO THE OVERALL FORMFACTOR FOR THE PHONE AS WELL? DANA: DEVELOPERS, CONSUMERS, AND INVESTORS ARE GOING TO BE LOOKING FOR SUBSTANTIVE CHANGES TO THE PLATFORMS, NOT JUST A NAMING CHANGE. WE ARE GOING TO BE LOOKING FOR A HANDFUL OF AI-RELATED TWEAKS ACROSS PLATFORMS. THE MOST AMBITIOUS AI UPGRADES, A MORE
CONVERSATIONAL VERSION OF SIRI ARE STILL FURTHER OUT. ONE THING WE HAVE REPORTED ON HIS ALL OF THESE PLATFORMS WILL BE RECEIVING A MEANINGFUL FACELIFT, A VISUAL DESIGN CHANGE MEANT TO MAKE THEM LOOK MORE COHESIVE AND THIS PROMISES -- THIS FOLLOWS ON THE HEELS OF GOOGLE ANNOUNCING A FACELIFT FOR ANDROID WHICH IS IOS'S MOST OBVIOUS COMPETITOR IN THE MARKET. CAROLINE: COMING UP, A CONVERSATION WITH GOLDMAN SACHS VICE CHAIR ROBERT KAPLAN. THAT IS LIVE FROM THE GOLDMAN SACHS CONFERENCE.
YOU DO NOT WANT TO MISS IT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. A QUICK CHECK ON THE MARKETS THAT STILL PUSH HIGHER. NASDAQ 100 HELPED LIFT FIND A
VIDEO RESULTS. THEY ARE HEAD FROM A MACRO PERSPECTIVE. THE DATA ON GDP LOOKING WEAKER AND WHAT OF THE RECIPROCAL TARIFFS? LET'S GET TO THE GOLDMAN SACHS CONFERENCE IN CALIFORNIA WITH SONALI BASAK STANDING BY. SONALI: WELCOME TO OUR BLOOMBERG TELEVISION AND RADIO AUDIENCES. I AM STANDING BY WITH ROBERT
KAPLAN. YOU MIGHT KNOW HIM FROM HIS TIME AT THE DALLAS FED. YOU MIGHT KNOW HIM NOW IS THE GOLDMAN SACHS VICE-CHAIRMAN. IN EITHER DIRECTION THERE IS LOTS OF TALK ABOUT FROM YOUR MACRO HAT AS WELL AS YOUR CLIENT FACING HAT. WHAT OUR CLIENTS SAYING TO YOU IN THE WEIGHT OF WHAT YOU SAW LESS THAN 24 HOURS AGO WITH PRESSURE ON THE TRUMP ADMINISTRATION'S TARIFF POLICY.
DOES IT CLEAR ANYTHING UP FOR CLIENTS? ROBERT: PROBABLY NOT. I THINK MOST CLIENTS ARE JUST NOW REACTING AND WE ARE PIECING THIS THROUGH AND OUR OWN JUDGMENT IS THE ADMINISTRATION IS MORE LIKELY TO FIND OTHER AUTHORIZATIONS TO CONTINUE TO DO WHAT THEY ARE LOOKING TO DO. IT IS STILL OUR BEST GUESS THAT WHEN THIS IS ALL SAID AND DONE THE TARIFFS WILL SETTLE IN THE LOW TWO MIDTEENS. THAT WILL CREATE CHALLENGES FOR COMPANIES. THEY WILL ADJUST. IT'LL CREATE BIGGER CHALLENGES FOR SMALL BUSINESSES WHO DO NOT HAVE THE LEVERS TO ADJUST. SONALI: WHAT ARE BUSINESSES PREPARING TO DO FOR THOSE TARIFFS? ROBERT: IF YOU'RE A BIGGER COMPANY YOU ARE REVIEWING YOUR LOGISTICS AND SUPPLY CHAINS AND THE REASON THEY ARE IN THE MIDDLE OF DOING THIS IS THIS HAPPENED ABRUPTLY. GIVEN SIX TO 12 MONTHS MOST
COMPANIES CAN RE-SHIFT. NOT OVERNIGHT. IT WILL TAKE SIX MONTHS TO A YEAR. THE THING THEY ARE TELLING ME IS IN LIGHT OF THIS THEY WILL PRESSURE SUPPLIERS, THEY WILL SELL ON THE MARGIN, THEY WILL PUT SOME IN PRICE. THEY ARE ALSO LOOKING AT HOW TO
TIGHTEN THEIR BELT A LITTLE BIT BECAUSE THEY REALIZED IF THEY ARE TAKING MARGIN THEY MAY NEED TO FIND OTHER WAYS TO PAY FOR IT. SONALI: YOUR CHIEF ECONOMIST REITERATED THE 35% PROBABILITY EVERY RECESSION, SAYING THAT IS STILL QUITE MATERIAL. WHAT COULD MAKE THAT WORSE IN TERMS OF THE ECONOMY SLOWING DOWN? ROBERT: THERE ARE A COUPLE OF BIG STRUCTURAL ISSUES THAT ARE PROBABLY REDUCING THE PROBABILITY OF RECESSION, MAY BE VERY SLUGGISH GROWTH BUT NOT A RECESSION. WE STARTED THE YEAR THINKING WE WERE GOING TO DO DEFICIT REDUCTION. THE CENTS ON THE TAX BILL IS WE
WILL BE EXTENDING THE TRUMP TAX CUTS. IT NOW APPEARS WE HAVE NOT DONE AS MUCH COST CUTTING AND THE TAX PACKAGE IS MORE EXPANSIVE, NOT DONE YET. FISCAL POLICY MAY BE MORE EXPANSIONARY OR NEUTRAL, NOT CONTRACTIONARY. WE HAVE LABOR FORCE GROWTH DECELERATING BECAUSE OF A CHANGE IN IMMIGRATION POLICY. IT MEANS THE LABOR FORCE IS
TIGHTER, IT MEANS UNEMPLOYMENT SPIKING UP RATHER THAN DRIFTING UP IS LESS LIKELY. YOU NEED TO HAVE A SEVERE DOWNTURN. YOU WOULD NORMALLY HAVE A SPIKE UP IN UNEMPLOYMENT. THE OTHER THING IS OBVIOUSLY TARIFFS WHICH HAVE BEEN WELL ARTICULATED. THOSE TEND TO SLOW GROWTH AND RAISE PRICES.
WHEN YOU PUT ALL OF THAT TOGETHER I THINK WE WILL HAVE SLUGGISH GROWTH, PROBABLY NOT A RECESSION, BUT PROBABLY SLUGGISH GROWTH FOR THE REMAINDER OF THIS YEAR. SONALI: THAT WORRY ABOUT SLUGGISH GROWTH AS WELL AS INFLATION ON THE HEELS OF THESE TARIFFS, A LOT OF CONCERNS ABOUT THE DUAL MANDATE FOR THE FED, WHICH DIRECTION THE FIT GOES AND IF NOT STAGFLATION OUTRIGHT. IF YOU WERE STILL AT THE FED WHAT WOULD YOU DO IN TERMS OF CUTS? SONALI: I'VE BEEN COUNSELING -- ROBERT: I'VE BEEN COUNSELING TO BE PATIENT. YOU HAVE STRUCTURAL CHANGES,
LET THEM UNFOLD. THE THING THAT WOULD FORCE THE FED'S HAND AS IF YOU SAW UNEMPLOYMENT START TO SPIKE UP THAN THE FED MIGHT LEAD AND MORE AND TAKE MORE RISK BUT THAT DOES NOT APPEAR TO BE HAPPENING AND I THINK THE TIGHT LABOR FORCE MAKES THAT LESS LIKELY. WHAT THEY ARE WAITING FOR IS TO SEE HOW WILL THESE TARIFFS FEED THROUGH THE ECONOMY? WE WILL HAVE A BETTER SENSE OF THAT THROUGH THE FALL. I THINK HE WILL SAY THEM TAKE
ONE MINUTE AT A TIME, BE PATIENT. THERE IS A SUMMARY OF ECONOMIC PROJECTIONS THEY HAVE TO SUBMIT IN JUNE. IF I WERE IN MY FORMER SEAT I WOULD SAY WANT TO TWO CUTS, PROBABLY MORE LIKELY ONE, THAT IS LESS THAN THE MARKET HAD BEEN EXPECTING.
YOU WILL SEE THEM TAKE A PATIENT APPROACH AND IT IS THE RIGHT APPROACH. SONALI: THE BIG FRUSTRATION FROM OUR VIEWERS IS THE MARKET IS PRICING IN TWO OR LESS RATE CUTS. MORGAN STANLEY'S MIKE WILSON BELIEVES SEVEN RATE CUTS BY THE END OF NEXT YEAR. OUR AUDIENCE IS WONDERING
WHETHER THERE ARE NO RATE CUTS THIS YEAR. IS THERE A CHANCE THE FED DOES NOT HAVE ROOM TO CUT? ROBERT: YES. I DON'T KNOW AND THE FED DOES NOT KNOW. WHY DON'T THEY KNOW?
WE'VE HAVE NOT DECIDED ON THE TARIFF RATES. THEY DON'T KNOW WHAT THE TAX BILL WILL SAY. WE HAVE A LOT OF UNCERTAINTY. WHEN YOU'RE IN A PERIOD LIKE THIS SHORTEN UP THE PROGNOSTICATIONS, BE MORE OF A RISK MANAGER. I THINK THAT IS WHAT THEY WILL
DO. THERE WILL BE PEOPLE PROGNOSTICATING. I WOULD SAY THE FED'S REACTION FUNCTION WILL BE MORE A MINUTE AT A TIME. SONALI: HOW MUCH CONTROL DOES THE FED HAVE? YOU'RE SEEING THE BOND MARKET START TO HIT CAP. WE'VE NOT SEEN ALARMING LEVELS. HOW BIG OF A RISK IS THERE WE GET THERE? ROBERT: THE FED DOES NOT HAVE A LOT OF INFLUENCE OVER THE 10 YEAR. THE FIT DECIDES ON THE FED FUNDS RATE. MY FOCUS IN OUR CLIENTS FOCUSES MORE ON THE 10 YEAR THAN THE FED FUNDS RATE AND THE DEFICIT. WE WENT INTO THIS YEAR WITH
CLOSE TO 7% DEFICIT. WE'VE BEEN OUTGROWING THE WORLD THE LAST FEW YEARS BECAUSE OF EXCESS FISCAL. I THINK PEOPLE THOUGHT NOW WE WILL RECKON WITH THIS AND START REDUCING THESE DEFICITS. IT MAY NOT BE MATERIALIZING. I THINK YOU ARE SEEING THE BACK END IN SHOP, MAYBE THE TERM PREMIUM IN SHOP, MAKES IT HARDER TO BE A DURATION BUYER. I THINK WE WILL BE WRESTLING WITH THAT FOR THE REST OF THE YEAR. SONALI: ROBERT KAPLAN, GOLDMAN SACHS VICE-CHAIRMAN. YOU MIGHT HAVE KNOWN AND
PREVIOUSLY AS PRESIDENT OF THE DALLAS FED. WEIGHING IN ON THE BOND MARKETS AND WHAT THE FED MIGHT DO NEXT. BACK TO YOU. ED: BLOOMBERG'S SONALI BASAK WITH GOLDMAN SACHS VICE-CHAIRMAN ROBERT KAPLAN. LET'S TALK ABOUT FINANCIAL MARKETS AT THE TECHNOLOGY SECTOR. A BIG FOCUS IN THE HERE AND NOW IS NVIDIA IS ONCE AGAIN THE WORLD'S MOST VALUABLE TECHNOLOGY COMPANY, MICROSOFT IS LITTLE BIT HIGHER.
APPLE IS FLAT. THE BIG STORY IS REPORTS ABOUT WHAT WE MAY GET AT WWDC NEXT WEEK. WE ARE ALSO TRACKING OTHER EARNINGS. ONE OF THE NAMES THAT IS REALLY
SOARING, ALTHOUGH IT IS A MUCH SMALLER COMPANY BY MARKET CAP, IS C3 AI COME OFF SESSION HIGHS. BASICALLY THERE IS A FOCUS ON SOME OF C3 AI'S CONTRACTS IN THE PUBLIC SECTOR AS WELL AS ITS EXISTING RELATIONSHIPS WITH CORPORATE AMERICA. THAT STOPPED MOVING.
CAROLINE: WE HAVE BEEN TALKING ABOUT THE BIG BREAKING NEWS THAT A U.S. COURT HAS SAID NOT SO FAST ON THE RECIPROCAL TARIFFS OF THE TRUMP ADMINISTRATION. WE UNDERSTAND THE TRUMP ADMINISTRATION IS ASKING THE APPEALS COURT TO PAUSE THIS CURRENT RULING. U.S. SAYS IT MAY ASK THE SUPREME COURT ON FRIDAY TO KEEP THE TARIFFS INTACT. THIS IS A FAST-MOVING STORY. NVIDIA SAYS AI DEMAND WILL CONTINUE TO SOAR. MORE ON WHAT THAT MEANS WITH THE CHIP DESIGNER NEXT.
SPOTIFY, I HEART. THIS IS BLOOMBERG. >> WE HAVE A WHOLE BUNCH OF ENGINES FIRING. THE BIGGEST IS THE REASONING AI INFERENCE. THE DEMAND IS OFF THE CHARTS. GROWTH THE COMPANY IS DELIVERING. IT IS IN GENERAL HOW IMPORTANT AI REMAINS FOR OTHER MAJOR TECH COMPANIES THAT CONTINUE TO INVEST BILLIONS OF DOLLARS INTO IT. CAROLINE: THANK YOU FOR THE LOW DOWN.
MEANWHILE NVIDIA AND MAG SEVEN NAMES ARE THE ONES WE HAVE TO DIGEST AND THE EARNINGS AND TRADE NEWS. LET'S BRING IN DANIEL MORGAN. THE PRICE TARGETS GET RAISED ON NVIDIA ACROSS THE BOARD. WHICH OF THE MARKET THINKING IN THE 12 MONTHS WE WILL GO 20% HIGHER ON THE STOCK. IS THIS A BUYING MOMENT? DAN: THE REPORT WE GOT WAS MESSY AND I AM SURE WE HAD MANY CONVERSATIONS ABOUT THE H20 N UMBERS.
NVIDIA STILL HAS TO MEDICINE OPPORTUNITY WITH RELEASE OF THE NEW BLACKWELL CHIP. I DID NOTE -- I DID NOT CATCH THE DOLLAR REVENUE THEY DID ON THE FIRST QUARTER BUT IN THE FOURTH QUARTER THEY DID ABOUT 11 BILLY DOLLARS IN REVENUE IN THAT CHIP. YOU LOOK AT THINGS THEY ARE DOING IN OTHER AREAS LIKE NETWORKING AND DATA CENTER WHERE THEY EXCEEDED EXPECTATIONS ON THIS RECENT QUARTER AND THE MOVE OUT INTO GETTING MORE SOVEREIGN GOVERNMENTAL CUSTOMERS LIKE THE RELATIONSHIP THEY ARE GETTING INVOLVED WITH IN SAUDI ARABIA. THEY HAVE A LOT OF THINGS GOING ON BEYOND THIS QUARTER. I FEEL IT IS A VERY BRIGHT FUTURE FOR THE COMPANY. CAROLINE:
WHAT IS NOTABLE AS THEY GUIDED FOR THEIR FISCAL SECOND QUARTER'S PROFIT MARGINS WILL BE RECOVERING TO THE MID 70% LEVEL. WHAT IS ALSO INTERESTING IS THEY ARE FIRING ON ALL CYLINDERS WHEN IT COMES TO THE DATA CENTER BUT OTHER PARTS OF THE BUSINESS MODEL ARE DOING WELL . . DANIEL: DATA CENTER IS DOING WELL.
GAMING, WHICH WHERE THEY WERE KNOWN FOR BEFORE BEFORE THEY GOT THIS HUGE IN GPU SPACE AND AI. ALSO NETWORKING WHICH WE DO NOT HEAR THEM TALKING ABOUT AS MUCH. IF YOU EVER HEAR THEM ON THE INVESTOR CONFIDENCE THEY WILL HAVE TO TALK ABOUT SOMETHING HAS TO HOLD THIS AI CHIP. THERE IS ALL OF THESE OTHER EQUIPMENT AND THAT -- AREAS BEYOND THE DATA CENTER ALSO DOING VERY WELL FOR THEM. ED: WHEN I SPOKE TO JENSEN HUANG LAST NIGHT HE WALKED A VERY FINE LINE. HE PRAISED PRESIDENT TRUMP FOR WHAT HE CALLED INNOVATIVE REVOLUTIONARY TARIFF POLICY, WHICH ON SHORES INDUSTRY IN THIS COUNTRY.
HE BASICALLY SAID POLICY IS KILLING THIS COMPANY'S ACCESS TO CHINA. DO YOU LIKE HERE AND STUFF LIKE THAT FROM A CEO? DOES IT GIVE YOU PAUSE TO GO ALL IN ON A STOCK IF THE CEO USES THE PUBLIC FORUM TO ADDRESS POLITICS THAT WAY? DANIEL: IT IS ALWAYS DICEY WHEN YOU ARE ADDRESSING PRESIDENT TRUMP AND HIS POLICIES. THINK ABOUT THIS. THEY WERE DOING 20% OF THEIR REVENUES OUT OF CHINA. IF THEY ARE NOT ABLE TO GET ANOTHER DELUDED SHIP, LET'S SAY A NEW BLACKWELL CHIP THAT IS DILUTED THAT THE GOVERNMENT WILL ACCEPT THE SELLING IN THAT MARKET, BASICALLY YOU ARE ELIMINATING A HUGE POTENTIAL OF REVENUES. HE HAS GIVEN NUMBERS LIKE $50 BILLION AI CHIP MARKET. THE THOUGHT PROCESS WAS IF NVIDIA CANNOT TAKE ADVANTAGE OF SELLING CHIPS IN THAT MARKET THEN WHAT WILL HAPPEN IS THERE WILL BE COMPANIES IN CHINA LIKE HUAWEI DEVELOPING AI CHIPS THAT WILL MAKE UP FOR THAT LOSS DEMAND.
IT IS COUNTERPRODUCTIVE IN TERMS OF YOU WANT TO BE ABLE TO SELL IN THE MARKET AND YOU DON'T WANT TO GIVE THEM CHIPS THEY COULD USE AGAINST US IN DEFENSE BUT IT IS A FINE LINE. ED: WE SHOULD BROADEN OUT TO THE OTHER MAG SEVEN NAMES. CAROLINE BROUGHT IS THAT BREAKING NEWS THAT THE ADMINISTRATION MAY GO TO THE SUPREME COURT AS SOON AS FRIDAY TO CHALLENGE THE U.S. COURT OF INTERNATIONAL TRADE'S JUDGMENT TO BLOCK THE WHITE HOUSE CURRENT TARIFF INITIATIVE. IN THE CONTEXT OF MAG SEVEN NAMES, HOW DO YOU THINK THIS PLAYS OUT? DANIEL: IT IS HUGE.
ALL OF THOSE COMPANIES COULD BE IMPACTED, ESPECIALLY APPLE IN TERMS OF THEIR SMARTPHONES. YOU HAVE EXPOSURE FROM DIGITAL ADD TO SPEND RATES WITH COMPANIES LIKE AMAZON AND GOOGLE. IT IS ACROSS THE BOARD. IF YOU LOOK AT ALL OF BIG TECH STOCKS, EVERYONE IS BEING EXPOSED TO VARIOUS BANDS IN VARIOUS WAYS. SOME MORE THAN OTHERS. APPLE AND AMAZON ARE HEAVILY INFLUENCED.
OBVIOUSLY IF THERE COULD BE A REPRIEVE, BRINGING BACK SOME OF THOSE BANDS IT WILL BE EXTREMELY HELPFUL TO CLARIFY SOME OF THE UNCERTAINTY AROUND THOSE STOCKS. ED: IS INTERESTING -- CAROLINE: IS INTERESTING THAT APPLE MANAGED TO GET BACK TO THE $1.3 TRILLION LEVEL ON THE OPTIMISM MAYBE WE WILL GET A REPRIEVE. HOW INVESTABLE IS IT IN THE MAG SEVEN NAMES AT THESE VALUATIONS WHEN WE DO HAVE SUCH LACK OF CLARITY? DANIEL: IT IS TOUGH. I AM HOPEFUL WE WILL GET CONTINUED REPRIEVE LIKE WE DID WITH APPLE WHERE WE GAVE PCS AND SMARTPHONES -- IT IS STILL A BLACK CLOUD OVER THE COMPANY. IT IS HARD TO PUT MONEY IN THIS GROUP BECAUSE YOU ARE NOT SURE WHAT THE NEWS HEADLINE WILL BE THE NEXT DAY, HOW THAT WILL IMPACT THOSE STOCKS.
I WILL SAY THE FUNDAMENTALS LONG-TERM OF THOSE COMPANIES ARE VERY BRIGHT. THERE IS NO STOCK IN THAT GROUP THAT WOULD QUESTION THAT. I STILL FEEL THAT GOING FORWARD IT IS VERY POSITIVE IN THE MAG SEVEN TECH STOCKS. ED: TO CLARIFY SOMETHING VERY QUICK. NVIDIA VIDEO REPORTED ITS
FISCAL FIRST QUARTER AND GAVE OUTLOOK FOR THE FISCAL SECOND BUT WHAT JENSEN TOLD ME WAS BLACKWELL DID MAKE UP THE SHORTFALL WHEN YOU FACTOR IN THE LOST REVENUE FROM CHINA. DANIEL MORGAN, SENIOR PORTFOLIO MANAGER, THANK YOU. COMING UP, ELON MUSK OFFICIALLY STEPS BACK FROM DOGE. MORE ON THAT NEXT. WE ARE LOOKING AT OTHER NAMES.
CAROLINE: LET'S CHECK IN ON APPLE. AT ONE POINT IT WAS BACK TO THE $3 TRILLION CLUB. IT JUST SUNK AGAIN. MAYBE ON THE LATEST HEADLINE
THAT THE TRUMP ADMINISTRATION WILL BE LOOKING TO THE SUPREME COURT AS SOON AS FRIDAY. THEY SAY THEY MAY TAKE THE TRUMP TARIFF CASE TO THE SUPREME COURT ON FRIDAY. THE U.S. IS LOOKING ON BANNING THOSE TARIFFS, SAYING THEY ARE CURRENTLY ILLEGAL.
CAROLINE: TESLA IS POISED TO BEGIN ITS LONG-AWAITED ROBOTAXI SERVICE IN AUSTIN JUNE 12. THIS IS A MILESTONE IN ELON MUSK'S PLAN TO RESHAPE THE COMPANY. ELON MUSK CAME OUT CONFIRMING SOME OF THE REPORTING SAY NEXT MONTH THE FIRST SELF DELIVERY FROM FACTORY TO CUSTOMER. YOU WERE THE GUY REPORTING ON THIS AND I AM INTERESTED AS TO WHY JUNE 12. IS THERE SIGNIFICANCE? ED: THIS IS A LIVE DISCUSSION INSIDE TESLA THAT JUNE 12 IS THE TARGET ELON MUSK HEADSET BY THE END OF JUNE. IT IS A SOFT LAUNCH.
EARLY PUBLIC ACCESS TO DRIVERLESS RIDES IN A MODEL Y, NOT IN A CYBER CAP. IT WAS INTERESTING TO SEE THE AFTER HOURS JUMP IN THE STOCK. WHEN A DATE IS GIVEN PEOPLE GET MORE CONFIDENCE BECAUSE THEY ARE SKEPTICAL IT WILL HAPPEN. ED: WHAT IS ALSO -- CAROLINE: WHAT IS ALSO GIVING CONFIDENCE IS THE FACT THEY HAVE BEEN TESTING. ED: THE CARS OF ALREADY DONE THIS ON PUBLIC ROADS. WHAT I LEARNED IS TESLA HAS BEEN DRIVING AROUND AUSTIN, NO ONE IN THE DRIVER SEAT, AN ENGINEER IN THE PASSENGER SEAT.
IT IS CURIOUS TESLA HAS ONLY GOT TO THIS POINT AND THAT IS THE PART ELON MUSK CONFIRMED OVERNIGHT. MEANWHILE THERE IS THE POLITICS. IN WASHINGTON ELON MUSK IS OFFICIALLY STEPPING BACK FROM HIS DUTIES AT THE DEPARTMENT OF GOVERNMENT EFFICIENCY. LET'S GET TO BLOOMBERG'S MIKE SHEPPARD. THIS IS THE KIND OF THING YOU WAIT FOR BECAUSE THERE IS A TERM LIMIT BUT ELONG MUSKA TALKED ABOUT THE REASON WHY -- ELON MUSK TALKED ABOUT THE REASON WHY AND WHAT IS NEXT. MICHAEL:
THIS DEPARTURE HAS BEEN TAKEN SHAPE FROM A COUPLE OF WEEKS. HE HAS RECEDED FROM PUBLIC VIEW IN WASHINGTON. AT THE BEGINNING OF THE TRUMP ADMINISTRATION HE WAS UBIQUITOUS, HE WAS FIRST BUDDY, HE WAS PRESIDENT ALL OF THESE BIG EVENTS, THE CABINET MEETINGS, AND EVEN FROM FAMILY PHOTOS. SINCE LAST MONTH HE HAS STARTED
TO STEP BACK. WE BEGIN TO SEE SOME DIFFERENCES EMERGE BETWEEN HIM AND THE PRESIDENT AND TRUMP'S POLICIES, AND PARTICULARLY ON TARIFFS AND YESTERDAY ON THE BIG BEAUTIFUL BILL, THIS IS THE TAX PASSAGE GOING THROUGH CONGRESS. THIS IS TAKING SHAPE AND ELON MUSK HAS INDICATED HE WANTS TO PUT MORE ENERGY AND TIME INTO TESLA. THEY HAVE A BIG AGENDA ON ECONOMIST VEHICLES AND ROBOTICS. ALSO SPACEX. LAUNCH EARLIER THIS WEEK, THE TEST SHOWED THEY HAVE A LOT OF WORK THEY NEED TO DO THERE. SCARLET:
HE FACES LAWSUITS BUT WHAT DOES -- CAROLINE: HE FACES LAWSUITS BUT WHAT DOES HE LEAVE IN HIS WAKE? MICHAEL: WE HAVE TERRIFIC REPORTING BY OUR COLLEAGUE THIS MORNING. IT IS WORTH LOOKING AT WHAT WAS LEFT BEHIND BY DOVISH. ALL OF THESE EFFORTS ELON MUSK SPEARHEADED. DOGE WAS HIS BRAINCHILD DURING THE TRUMP CAMPAIGN. HE CAME UP WITH THE IDEA OF REDUCING THE SIZE OF GOVERNMENT IN A DRASTIC MOVE FAST AND BREAK THINGS WAY AND WE SEE AGENCIES REDUCED ACROSS THE BOARD WITH LITTLE COURSE FOR THEM TO RETURN TO POWER. CAROLINE: BLOOMBERG'S MIKE SHEPPARD. THAT DOES IT FOR THIS EDITION
OF BLOOMBERG TECHNOLOGY. CHECK OUT THE PODCAST. FIND IT ON THE TERMINAL AS WELL AS APPLE, SPOTIFY, AND I HEART. ED: WHAT A WEEK IT HAS BEEN SO FAR.
2025-05-30 11:26
