OpenAI's UAE Data Center, AT&T-Lumen Consumer Fiber Deal | 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" OPENAI PACED $6.5 BILLION IN STOCK FOR APPLE VETERAN JONY IVE 'S FIRM. ED: OPENAI WORKS TO DEVELOP A MAJOR DATA CENTER IN THE UNITED ARAB EMIRATES.
OVERSEAS EXPANSION OF THE STARGATE EFFORT TO BUILD OUT INFRASTRUCTURE. CAROLINE: AT&T AGREES TO BUY THE FIBER OPERATIONS OF LUMEN TECHNOLOGIES. AMID A FLURRY OF M&A NEWS, WOULD CHECK ON THE MARKETS, WHICH STABILIZED SOMEWHAT AFTER YESTERDAY'S SELLOFF THE BOND MARKET DICTATING SOME RISK-ON ASSERTIVENESS. BIG TECH IN CHARGE OF THE RELATIVE REBOUND WHAT IS REALLY REGARDING IS BITCOIN, AT ONE POINT ECLIPSING $111,000 PER TOKEN. ED:
I'M LOOKING AT NVIDIA FOR A CURIOUS REASON. WE WILL SPEAK TO THE CO-CEO OF KRAKEN, THE CRYPTO EXCHANGE COME JUST BEFORE 10:00 A.M. EASTERN TIME A BIG JUMP IN NVIDIA SHARES FROM FLAT TOOK 1.5%. KRAKEN IS LAUNCHING WHAT IT CALLS X STOCKS, A PLATFORM THAT WILL ALLOW YOU TO TRADE TECH NAMES IN THE FORM OF DIGITAL TOKENS. APPLE IS OUR BIG FOCUS.
THE TOP STORY, FORMER AND LEGENDARY APPLE DESIGNER JONY IVE COLLABORATING WITH OPENAI AND OPENAI MOVING INTO THE HARDWARE SPACE FOR AI THAT HAD APPLE SHOWS DURING WEDNESDAY'S SESSION. OUR COLLEAGUES ARE WRITING ABOUT THE ATTACKS FROM PRESIDENT TRUMP APPLE THERE IS A LOT TO DISCUSS. CAROLINE: SO MUCH. JOINING UP WITH LEGENDARY APPLE DESIGNER JONY IVE, IT CAME WITH A HIGH PROMO VIDEO. >> I HAVE A GROWING SENSE THAT EVERYTHING I'VE LEARNED OVER THE LAST 30 YEARS HAS LED ME TO THIS PLACE AND TO THIS MOMENT. CAROLINE: IVE THE CREATIVE MIND BEHIND THE IPOD, THE IPHONE. OPENAI ACQUIRING HIS STARTUP
FOR $6.5 BILLION. THIS COULD CREATE FRENEMIES WITH APPLE,'S FORMER EMPLOYEE O JOINING US THIS DAY DAVE LEE. YOU HAVE SOME CYNICISM ABOUT WHETHER THEY COULD TEAM UP TO BRING US AI IN PHYSICAL FORM. WHAT DID YOU MAKE OF THE VIDEO? DATE: THE VIDEO WAS INCREDIBLE. THE CAFÉ THEY FEEL THAT IT BELONGS TO FRANCIS FORD COPPOLA AND THAT'S THE CAFÉ THEY FILMED IT IN -- THE CAFÉ THEY FILMED IT IN BELONGS TO FRANCIS FORD COPPOLA AND LOOKS LIKE HE FILMED IT. JONY IVE LOVEJONY IVE -- LOVE JONY IVE. THIS IS A DIFFICULT THING EVEN
FOR HIM TO ACHIEVE. IT'S INCREDIBLE DIFFICULT, AND FOR ALL THE EXPERIENCE AND TALENT JONY IVE HAS AND THE TEAM HE HAS ASSEMBLED, WHICH SAMPLE" OF THE MOST GIFTED -- WHICH SAM ALTMAN CALLED THE MOST GIFTED TEAM IN HISTORY CAN WHICH GIVES YOU THE M IDEA OF THE HYPERBOLE -- CAROLINE: MARVEL UNITE. ED: DAVE, LET ME GO BACK TO BASICS ON THE STORY. WHAT THE ENTITY OPENAI IS SAYING IS THAT BY 2026 THEY WILL HAVE A RANGE OF DEVICES. SMARTPHONE, DARE I SAY CHUNKY BROOCH -- THE BASICS THAT ARE OUT THERE. THIS SEEMS LIKE AN AQUA HIRE BECAUSE WHAT OPENAI IS GETTING IS NOT JUST JONY IVE, BUT A TEAM OF OTHER FORMER APPLE DESIRES WHICH ACCORDING TO THE PRESS RELEASE OF REMAINING INDEPENDENT. DAVE: THIS IS ABOUT BRINGING IN THE
ACTIVITIES THAT OPENAI DOESN'T HAVE. THEY HAVE DONE INCREDIBLY WELL CREATING A LEADING AI COMPANY. CHATGPT HAS A HUGE MARKET SHARE AND PEOPLE ARE WILLING TO GO TO A WEBSITE AND PUT A PROMPTED AND GET WHAT THEY NEED. THE PROBLEM IS THAT OVER TIME THAT WAY OF INTERACTING WITH AI BECOMES A LOT LESS USEFUL AND WE ARE SEEING SIGNS OF THAT ALREADY. WE HAVE SEEN HOW GOOGLE ARE STRAIGHT INTO THE SEARCH ENGINE IN A BIG WAY AND THAT IS TO CAPITALIZE ON THE TOOL PEOPLE ALREADY USE AND THEY FIND AI THAT WAY. OPENAI DOESN'T HAVE THAT SAME VECTOR. IT DOESN'T HAVE A SOCIAL NETWORK LIKE META OR SEARCH
ENGINE LIKE GOOGLE. THEY HAVE TO CREATE SOMETHING THAT PEOPLE INTERACT WITH OPENAI SPECIFICALLY, AND A PIECE OF HARDWARE IS A WAY TO DO THAT. THIS IS A VERY GOOD, ALBEIT EXPENSIVE WAY TO BRING ON EXPERTISE. COMPLICATIONS WILL FOLLOW. NEXT YEAR'S KEYNOTE FROM WHATEVER IT IS, REPORTING THIS MORNING A THIRD DEVICE IN ADDITION TO YOUR LAPTOP AND SOMETHING ELSE, IT IS A BIG ASK TO ADD ANOTHER DEVICE BECAUSE WE SAW, LIKE YOU MENTIONED WITH SOME OF THE OTHER WEARABLES, THAT PEOPLE FROM THE WORD GO WHERE AND VERY IMPRESSED. JONY IVE WILL BE A BETTER JUDGE OF MAKING SOMETHING PEOPLE LIKE THAT MOST COMPANIES WERE, BUT HE IS ASKING A LOT OF PEOPLE TO GET ON BOARD WITH. CAROLINE: JONY IVE WAS PRETTY CRITICAL OF
OTHERS HAVING TRIED AI HARDWARE. WHAT IS INTERESTING IS THE APPLE EXECUTIVE GIVING EVIDENCE AT THE GOOGLE LEGAL FIGHT SAYING IN A 10 YEARS' TIME PROBABLY WON'T BE USING IPHONES. WE WILL DISCUSS THE APPLE IMPACT, BUT MORE BROADLY, IS THIS A MOMENT WE SHOULD BE RISK-OFF FOR APPLE? DAVE: THE CONTEXT FOR THOSE COMMENTS WERE IN A COMPETITION HEARING WHERE IT SERVED THE COMPANY VERY WELL TO SAY THERE IS A BIG THREAT TO THE IPHONE. WHAT THIS IS DOING AT THE VERY LEAST IS HIGHLIGHTING THE FACT THAT APPLE HAS BEEN CAUGHT ON THE BACK FOOT. SINCE JONY IVE ALMOST SIX YEARS AGO LEFT, THERE HAS NOT BEEN THIS PRODUCT VISIONARY IN THE COMPANY.
I THINK IT HIGHLIGHTS THAN APPLE HAS HUGE AMOUNTS OF WORK TO DO. ED: I WANT TO GO BACK TO BASICS EVEN FURTHER. I THINK ABOUT HOW I USE CHATGPT EVERY DAY AND I USE IT THROUGH MY IPHONE, FRANKLY. I HAVE A VOICE MODE FOR ALL TAX COULD HOW MUCH OF THE STORY IS ABOUT OPENAI THINKING TO ITSELF THE EXACT QUESTION, HOW ARE PEOPLE GOING TO USE THE SOFTWARE IN THE FUTURE? DAVE: THAT IS A LINGERING CONCERN FOR THE ENTIRE COMPANY. THIS WAS -- JONY IVE HAS BEEN OUTSPOKEN ABOUT WHAT HE SEES AS LEGACY DEVICES. I WONDER WHAT THIS ANNOUNCEMENT MIGHT DO FOR OPENAI'S RELATIONSHIP WITH APPLE. YOU CAN USE CHATGPT ON THE
IPHONE AS AN ADD-ON SERVICE. THEIR THINKING CAREFULLY ABOUT HOW THEY MANAGE THAT RELATIONSHIP. IT IS ABOUT BRINGING CHATGPT INTO EVERY DATE DEVICE. RIGHT NOW PEOPLE USE THE APP. I DON'T THINK THIS IS SOMETHING PEOPLE GO TO THE APP SPECIFICALLY FOR.
ED: AND AGAIN, FOCUSING ON APPLE, THE POINT OF YOUR OPINION PIECE THIS MORNING THIS IS ABOUT THAT THEY MIGHT BE ABLE TO KILL THE IPHONE. THAT IS WHAT DROVE THE MARKET IN YESTERDAY'S SESSION. STICK AROUND FOR MORE OPENAI NEWS. THE COMPANY HELPS DEVELOP A MAJOR DATA CENTER IN UAE.
MORE ON THAT LATER THIS HOUR WITH CHRIS LANE, CHIEF GLOBAL AFFAIRS OFFICER AT OPENAI. PRESIDENT TRUMP IS TAKEN AT MULTIPLE TIMES AT THE TECH GIANT, MOST RECENTLY CALLING OUT A LITTLE PROBLEM WITH TIM COOK, ASKING THE CEO TO STOP BUILDING IN INDIA. FOR MORE ON APPLE'S POLITICAL CONCERNS, RYAN VLASTELICA JOINS US THE POINT IN YOUR MARKETS PIECE IS THAT HEADLINES ARE NOT GOING IN APPLE'S FAVOR RIGHT NOW. THE STOCK IS UNDERPERFORMING AS A CONSEQUENCE. RYAN: PRETTY DRAMATICALLY UNDERPERFORMING, ESPECIALLY THE PAST MONTH OR SO, WHERE THE NASDAQ 100'S OF DOUBLE DIGITS AND APPLE IS DOWN A COUPLE OF PERCENTAGE POINTS.
CERTAINLY A NEGATIVE POLITICAL BACKDROP FOR APPLE. THIS IS THE LATEST EXAMPLE OF THIS. IT IS NOT AS DRAMATIC AS WE SAW THE START OF APRIL WHEN THE TARIFFS WERE ANNOUNCED AND APPLE SAW HISTORIC LEVELS OF VOLATILITY. SINCE THAT WE HAVE SEEN SOME
POSITIVE SIGNS LIKE SMARTPHONES PHONES AND OTHER ELECTRONIC CATEGORIES AND CHINA AND SOME OF THE TARIFF LEVELS GET IT IS A PRECARIOUS POSITION TO BE IN, ESPECIALLY SINCE PEOPLE DON'T SEE WHAT APPLE CAN DO IN THE SHORT TERM TO ASSUAGE SOME OF THE ADMINISTRATION'S STATED COMPLAINTS ABOUT ITS GLOBAL MANUFACTURING FOOTPRINT. CAROLINE: WE ARE LOOKING AT A ONE-YEAR CHART OF APPLE. IT HAS COME UP SIGNIFICANT FROM ITS LOWS. UP TO 70% FROM BELOWS, BUT WHEN YOU COUPLE THE ONGOING WORRIES ABOUT APPLE AND TIM COOK IN THE LINE OF FIRE, AT THE SAME TIME AS OPENAI IS COMING FOR ITS LUNCH, NONE OF THIS SPEAKS WELL.
YOU TALK ABOUT HOW UNDEROWNED APPLE IS. RYAN: THAT WAS A MORGAN STANLEY STUDY. PORTFOLIO MANAGERS ARE UNDERWEIGHT ON APPLE RELATIVE TO ITS POSITION ON MAJOR BENCHMARKS, A SIGN OF THE OVERALL CONSCIOUSNESS TOWARDS THE COMPANY. YOU MENTIONED THE AI POSITION. IT IS UNCLEAR HOW WELL THEY WILL BE COMPETING IN THAT REALM. IN ADDITION, WE HAVE LONG-STANDING CONCERNS ABOUT ITS VALUATION, ABOUT ITS OVERALL LEVELS OF GROWTH, ESPECIALLY IF PEOPLE AREN'T AS EAGER TO BE BUYING IPHONES. POLITICAL BACKDROP WITH TARIFFS AND TRADE WARS ALL OF THIS, IS PUTTING TOGETHER A LOT OF STUFF FOR APPLE INVESTORS TO BE CONSIDERING IF THEY ARE LOOKING AT THE STOCK RIGHT NOW.
CAROLINE: RYAN VLASTELICA, THANK YOU SO MUCH. THE AT&T CEO IS JOINING US ON THE COMPANY'S LATEST ACQUISITION. THIS IS "BLOOMBERG TECHNOLOGY." >> AI IS BECOMING MISSION-CRITICAL FOR EVERY ENTERPRISE ON THE PLANET IN ORDER TO COMPETE AND TRANSFORM AND INNOVATE. THE SECOND MAJOR TREND IS REALLY ABOUT CONSUMER, AND WIRELESS AND FIBER DEMANDS ARE CONVERGING, AND YOU NEED SCALE TO COMPETE IN THE BUSINESS.
LOOK AT BOTH OF THOSE TRENDS AND SAID WE ARE GOING TO DOUBLE DOWN WHERE IT MAKES THE MOST AMOUNT OF SENSE. CAROLINE: THAT WAS KATE JOHNSON, LUMEN CEO, AFTER AT&T AGREED TO BUY ITS CONSUMER FIBER OPERATIONS. JOINING US NOW IS THE AT&T CEO, JOHN STANKEY. WONDERFUL TO HAVE YOU JOINING US. WE HEARD FROM KATE, THE CONVERGE CUSTOMER YOU SPOKE TO ON YOUR EARNINGS. IS THIS THE STRATEGY BEHIND BEEFING UP WHEN IT COMES TO FIBER? JOHN: AS WE TALKED ABOUT BEFORE, WE BELIEVE THERE IS GOING TO BE THIS DEMAND FOR INCREASED DATA CONSUMPTION AND WORKLOADS, ESPECIALLY UPSTREAM WORKLOADS. THERE IS NO BETTER TECHNOLOGY
OUT THERE FOR AMERICANS AND FIBER. WE HAVE A BIG LEAD ON XAVIER BECERRA FIBER IN THE UNITED STATES TODAY. --WE HAVE A BIG LEAD ON HOW WE ARE BUILDING FIBER IN THE UNITED STATES TODAY. WE HAVE MANAGED TO GO INTO A
FOOTPRINT THAT BECAUSE THERE ISN'T A SCALE IN THE LUMEN OPERATIONS, WE CAN BRING THE AT&T SCALE BEHIND IT. DRIVE PENETRATION OF CUSTOMERS, WHICH DRIVES REVENUE UP. WHAT IS MOST ATTRACTIVE TO US IS THESE MARKETS WHERE WE ARE UNDER SHARE AND WIRELESS BUSINESS AS WELL -- WHEN WE PUT FIBER AND WE WIN AND WE HAVE A GOOD SUCCESS RECORD OF CUSTOMERS TOGETHER, WE ARE REALLY ANXIOUS TO GET A CHANCE TO GET INTO THESE MARKETS AND DRIVE WIRELESS GROWTH THAT MAYBE WE WOULD NOT HAVE SEEN OTHERWISE. CAROLINE: YOU BRING CUSTOMERS TOGETHER. YOU ALSO BRING INFRASTRUCTURE INVESTMENTS TOGETHER. YOU PARTNERED WITH BLACKROCK WHEN IT COMES TO REINVESTING AND ACCELERATING THE INFRASTRUCTURE BUILDOUT. YOU TALK ABOUT BRINGING IN
ANOTHER PARTNER IN TERMS OF INVESTING IN THE FUTURE. IF YOU HAVE INTEREST ALREADY? JOHN: OUR VENTURE WITH BLACKROCK, THEY HAVE BEEN A FANTASTIC PARTNER TO WORK WITH. WE ARE PLEASED WITH HOW THE VENTURE IS MATURING AND HOW IT IS GOING.
THE RIGHT THING TO DO RIGHT NOW IS TO CARRY THIS THROUGH THE REGULATORY PROCESS. WE HAVE CONTROL OVER DOING THAT AND ULTIMATELY GET THIS TRANSACTION CLOSED. WE ARE EXCITED TO BRING IN AN EQUITY PARTNER UNDER A VERY SIMILAR CONSTRUCT. I WOULDN'T BE SURPRISED IF
BLACKROCK MIGHT BE INTERESTED IN CONTINUING IN THAT RELATIONSHIP. IF NOT, WE KNOW THERE IS OTHERS WHO LIKE THESE INFRASTRUCTURE PLAYS AND WE ARE VIEWED AS AN ATTRACTIVE PARTNER GIVEN OUR ABILITY TO BUILD RAPIDLY AND WHAT WE ARE ABLE TO SHOW IN TERMS OF MARKET PENETRATION OR GROWTH. ED: WHAT WOULD THAT MARKET BE? JOHN: TO BE DETERMINED. WE WILL ULTIMATELY CLOSE IT
FIRST. THAT IS IMPORTANT NOW TO GET THE REGULATORY APPROVALS AND THEN WE WILL DO THE VERY THINGS TO MAKE SURE ANYBODY WHO HAS AN INTEREST HAS A CHANCE TO TALK TO US ABOUT IT. I WOULD EXPECT, AS WE HAVE HAD A GREAT RELATIONSHIP WITH BLACKROCK, IF IT IS SOMETHING THEY ARE INTERESTED IN MOVING FORWARD WITH, IF IT DOESN'T FORECLOSE ANOTHER OPTION, IF FOR SOME REASON THIS ISN'T RIGHT FOR THEM, IT IS IN THE TIME. ED: WITH THIS DEAL AND OTHER THINGS
YOU HAVE BEEN INTENSIFIES COMPETITION IN BROADBAND, PARTICULARLY FOR COMCAST AND CHARTER. THINKING ABOUT OUR SHOW, "BLOOMBERG TECHNOLOGY," AND ALL THE PEOPLE ACROSS AMERICA THAT WATCH IT, WHY IS THAT COMPETITION IMPORTANT? JOHN: WHAT'S IMPORTANT IS THAT AMERICANS WALK AWAY WITH GREAT INFRASTRUCTURE AND COMMUNITIES HAVE WORLD-CLASS COMMUNICATIONS INFRASTRUCTURE THAT ALLOWS THEM TO GROW AND HAVE COMMERCE AND HAVE JOBS AND PEOPLE THAT WANT TO LOCATE TO THEIR AREAS. THE CITIES WE ARE GOING INTO AND THAT WE WILL BE PICKING UP HAVE BEEN UNDERINVESTED IN FIBER.
IT IS BETTER THAN ANYTHING CABLE HAS ON THE MARKET. OUR BELIEF IS THAT THIS IS GOING TO BE GREAT FOR THE LOCAL COMMUNITIES. NOT ONLY ARE WE BUYING THESE ASSETS, BUT WE ARE MAKING A COMMITMENT TO DOUBLE THE FIBER FOOTPRINT. THAT MEANS WE WILL BE INVESTING IN GROWING IN DENVER AND SEATTLE IN SALT LAKE CITY AND PHOENIX. PUTTING THE BEST TECHNOLOGY OUT
THERE, EMPLOYING LOCAL PEOPLE WHO DO THE CONSTRUCTION, HIRING TECHNICIANS THAT DO THE INSTALLATION AND HOUSES. IT IS A GREAT THING FOR THE UNITED STATES BECAUSE YOU'RE GOING TO GET WORLD-CLASS FIBER INFRASTRUCTURE THAT IS BUILT FOR THE AI REVOLUTION, THAT HAS GOT SYMMETRICAL SPEEDS DOWN AND OUT OF THE HOUSE. THAT IS GOING TO BE GOOD FOR EVERYBODY. CAROLINE: THERE SEEMS TO BE M&A FOR
EVERYBODY AS WELL. WE JUST HAD CHARTER WHEN IT COMES TO BROADBAND MORE BROADLY. ARE YOU GOING TO BE MORE ACTIVE IN THE M&A SPACE? JOHN: WELL, CAROLINE, I SAID WHEN WE HAVE SPOKEN BEFORE IS THAT MY BELIEVE THE COMMUNICATIONS INDUSTRY IS GOING TO GO THROUGH A LAYER OF CONSOLIDATION OVER THE NEXT DECADE. I'VE BEEN CLEAR THAT AT&T HAS A UNIQUE POSITION. WE START WITH A FANTASTIC ACID-BASE.
AS -- FANTASTIC ASSET BASE AS COMPANIES ARE LOOKING TO BUILD THE CONVERSION DYNAMIC CUSTOMERS WANT TO BUY FROM ONE COMPANY CAN WE HAVE A LOT OF ORGANIC OPPORTUNITIES TO INVEST IN OUR BUSINESS. WE TALK ABOUT THAT IN OUR DECEMBER ANALYST TODAY. IT IS UNIQUE ABOUT THIS TRANSACTION IS IT ACCELERATES THE FOOTPRINT. THE DECISION LOOKS STRAIGHTFORWARD.
MAYBE WE SHOULD HAVE BOUGHT INSTEAD OF MADE. IF THERE'S OTHER OPTIONS THAT COME UP THAT ARE SIMILAR IN THE ECONOMIC DYNAMICS THAT WE CAN PICK UP FOOTPRINT THAT ACCELERATES BY A EURO TO AND WE ARE BUYING IT AT A PRICE THAT IS SIMILAR TO WHAT WE CAN INVEST IN ORGANICALLY, I WOULDN'T BE CLOSE MINDED TO THAT TYPE OF THING. I'M NOT SURE THERE IS GOING TO BE THAT MANY OPPORTUNITIES AT SCALE TO DO THAT. THIS PARTICULAR TRANSACTION IS
A BIT UNIQUE GIVEN ITS SIZE, THE MARKETS, AND THE FOOTPRINT. I DON'T EXPECT THAT THERE IS GOING TO BE A LOT MORE BEHIND IT. ED: THERE HAVE BEEN REPORTING IN APRIL ABOUT A LACK OF KNOWLEDGE OF THE TRUMP ADMINISTRATION'S APPROACH TO PARTICULARLY RURAL AREAS, BROADBAND AND FIBER, PERHAPS NOT RELEASING FUNDS FROM THE PRIOR ADMINISTRATION. WHAT WAS YOUR COMMUNICATION WITH THE PRESIDENT AND THE ADMINISTRATION ABOUT THIS, AND HOW SUPPORTIVE ARE THEY OF THE BIG PICTURE YOU OUTLINED A MOMENT AGO OF WHAT WE YOU ARE TRYING TO DO FOR AMERICA> JOHN: CERTAINLY THE ADMINISTRATION WOULD LIKE TO SEE INVESTMENT AND THE TAX PLAN THEY ARE PUTTING FORWARD IS STIMULATING THAT. IF WE GET WHAT HAS BEEN PASSED BY THE HOUSE LAST NIGHT OR THIS MORNING, I ABSOLUTELY BELIEVE WE WILL BE TAKING SOME OF THAT BENEFIT ON THE TECH SIDE -- TAX SITE AND INCREASING OUR PACE OF FIBER INVESTMENT IN SOME OF THESE MARKETS I TALKED ABOUT. OUR COMMUNICATION -- THERE HAS BEEN A LOT THAT HAS HAPPENED SINCE IT WAS ENVISIONED ALMOST FOUR YEARS AGO AND THE LEGISLATION WAS PUT IN PLACE IN THE LEGISLATION SAID IT SHOULD BE A TECHNOLOGY-NEUTRAL INVESTMENT TO BUILD TO THESE RURAL AREAS AND PLACES THAT ARE NOT CONNECTED TO THE INTERNET.
WHEN YOU LOOK AT WHAT THE FCC SET OF UNCOVERED HOUSEHOLDS LAST YEAR, IT WAS ONLY -- ABOUT 7.5 MILLION HOUSEHOLDS. THAT IS HALF AS MANY HOUSEHOLDS AS WHEN CONGRESS PASSED THE $46 BILLION FOR BEAD SUBSIDY. PRIVATE MARKETS AND WHATEVER GOVERNMENT FUNDING HAS BEEN OUT THERE HAS ALREADY SOLVED HAVE THIS PROBLEM. SHOULD WE BE TAKING A STEP BACK AND THINKING ABOUT HOW WE ARE SPENDING THAT MONEY, AND ARE WE DOING IT THE RIGHT WAY, OR MAYBE WE USE SATELLITE TECHNOLOGY TO GET TO VERY EXPENSIVE LOCATIONS INSTEAD OF BUILDING FIBER OUT THERE? I THINK THAT IS THE RIGHT THING FOR THE AMERICAN TAXPAYER AND THE ADMINISTRATION IS DOING THE RIGHT THING TO RECONSIDER THAT. CAROLINE: JOHN STANKEY, AT&T CEO, IT'S BEEN WONDERFUL SPEAKING TO YOU, REALLY APPRECIATE THE TIME. THANK YOU VERY MUCH INDEED, WHEN IT COMES TO ALL THINGS M&A. WE WILL TAKE A QUICK CHECK ON
THE BROADER MARKETS. ALL THINGS PARTNERSHIPS AND ABILITY TO TRADE NAMES OUTSIDE THE UNITED STATES. GOING TO BE DISCUSSING HOW NVIDIA AND TESLA SHARES POP TODAY. WE HAVE NEWS THAT BACK TO FINANCE IS GOING TO BE PARTNERING WITH KRAKEN TO ENABLE YOU TO TRADE THESE U.S. NAMES IN A TOKENIZED MANNER IF YOU ARE BASED OUTSIDE THE UNITED STATES. IF YOU ARE BASED IN EUROPE AND
YOU WANT TO BE TRADING NVIDIA OR TESLA STOCK ON A 24-HOUR BASIS, YOU CAN USE A NEW TOKENIZED BASIS FOR THE PARTICULAR STOCK. THE PERSON DRIVING THAT IS THE KRAKEN CO-CEO. SONALI, TAKE IT AWAY. SONALI: ARJUN, GOOD TO HAVE YOU. ARJUN SETHI, KRAKEN'S CO-CEO. THIS IS BIG NEWS IN THE WORLD
OF TOKENIZATION AND KRAKEN, BIG FOR PEOPLE OUTSIDE THE UNITED STATES. MY MAJOR, MAJOR QUESTION IS HOW SOON THIS COULD BE BROUGHT ON TOUR IN TERMS OF APPROVALS ON A REGULATORY BASIS TO GET THIS DONE. ARJUN: THANKS FOR HAVING ME. I THINK THE WAY TO THINK ABOUT IT IS TOKENIZED SECURITIES IS THE SAME WAY YOU SHOULD THINK ABOUT COLLATERAL. COLLATERAL IS THE FOUNDATIONAL
TRUST LAYER, THE WAY WE WANT TO ENUMERATE THIS. WE ARE LAUNCHING THIS WITH OUR PARTNERS. LATIN AMERICA, ASIA AND OUR FIRST MARKETS. WE ARE GOING TO WORK TO BRING THIS INTO THE UNITED STATES.
YOU KNOW FOR THE FIRST TIME HAVE COLLATERAL YOU CAN TAKE WITH YOU . YOU DON'T HAVE TO ASK ANYONE FOR IT. I THINK THAT IS THE KEY ASPECT OF WHAT IT MEANS TO TOKENIZE AN ASSET. SONALI: ONE ISSUE -- YOU CAN SEE IT COMING FROM A MILE AWAY -- HOW DO THE TRADITIONAL EXCHANGES BEHAVE? THIS IS NOT SOMETHING YOU CAN SEE THE LIKES OF A NASDAQ READILY ALLOWING OR NOT PUSHING BACK AGAINST AS YOU GO TO THE SEC TO GET THIS DONE IN A BIGGER WAY. ARJUN: I THINK IT IS PRETTY NATURAL FOR INCUMBENTS AND WHAT I CALL POST-WORLD WAR II BRICK-AND-MORTAR COMPANIES TO ALWAYS PUSH BACK AGAINST WHAT THEY MIGHT HAVE A MONOPOLY UPON. WHAT DOES THAT REALLY MEAN? IT IS A WALLED GARDEN, IT IS HARD TO INNOVATE, IT IS HARD TO BUILD ON TOP OF IT. WHEN HE THINK OF GLOBAL
LIQUIDITY, GLOBAL ACCESS TO CAPITAL WHAT DO YOU WANT TO BUILD FROM AND WHAT DO YOU WANT TO BUILD AGAINST? THESE TYPES OF PRODUCTS, IT IS NOT GOING TO BE JUST US, BUT ANYTHING IN THE CRYPTO PROTOCOL ECOSYSTEM DECENTRALIZED IS WE ARE LETTING PEOPLE INNOVATE ON BEHALF OF U.S. CUSTOMERS IN THE LONG-TERM AND EUROPEAN CUSTOMERS AND REST OF THE WORLD CUSTOMERS. YOU ARE ABLE TO FINALLY IN ONE PLACE GET ACCESS TO GLOBAL LIQUIDITY, ACCESS TO MORE PRODUCTS, AND NOT PART OF ONE WALLED GARDEN. WE ARE IN EXCHANGE FOR SOME OUR GOAL IS TO PROVIDE LIQUIDITY AND INNOVATION. WHAT YOU ARE ABLE TO DO IS FIGURE OUT WAYS IN WHICH THE TRADITIONAL INDUSTRIES, HOW CAN THEY BE PART OF THE ECOSYSTEM RATHER THAN BEING LEFT OUT.
CAROLINE: BUT YOU NEED REGULATORY CLARITY -- GREAT TO HAVE YOU. SUPERSTATE ACKNOWLEDGED THAT THEY ARE DOING THIS WILL YOU ARE NOW DOING IT. BUT LARRY FINK AT ROBINHOOD WANT CLEAR GUIDELINES FROM THE UNITED STATES. HOW DO YOU THINK THAT WILL OCCUR? 30 SECONDS. ARJUN: WITH ANY OF THE REGULATORS OUT THERE, WE ARE TALKING ABOUT HOW WE INNOVATE AND HOW WE BUILD. WE KNOW FOLKS AT THE SEC HAVE BEEN EXTREMELY PROMOTIVE OF THESE IDEAS OF HOW WE BRING THIS TO EVERYDAY CONSUMERS AND INVESTORS.
I AM PRETTY POSITIVE THAT WE WILL GET TO A PLACE WHERE WE THINK ABOUT HOW TO LAUNCH THIS. NOT JUST WITH ONE COMPANY OR CUSTOMER, BUT ACROSS THE BOARD. ED: THAT WAS SONALI BASAK WITH KRAKEN CO-CEO ARJUN SETHI. COMING UP ON "BLOOMBERG
TECHNOLOGY," WE WILL SPEAK WITH THE OPENAI CHIEF GLOBAL AFFAIRS OFFICER AS THE COMPANY LOOKS TO EXPAND STARGATE INFRASTRUCTURE EFFORTS OVERSEAS. THAT IS COMING UP NEXT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: WELCOME TO BLOOMBERG TECHNOLOGY.
I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE: AFTER YESTERDAY'S BRUTAL SELLOFF WITH THE BOND MARKET DICTATE TRADE YESTERDAY. IT MAY BE SLIGHT RESILIENCE HELPS GALVANIZE RISK-TAKING IN TECH UP .3% OF THE NASDAQ 100 CON BACK YESTERDAY'S LOSSES. BIG TECH IN CHARGE WHEN IT COMES TO NVIDIA, TESLA. LOOK AT SOME OF THE EARNINGS
THAT ALSO BRING OUT. OUTPERFORMANCE THINKING ABOUT SNOWFLAKE UP 12% ON ITS NUMBERS. PRODUCT REVENUE DRIVE FORWARD BECAUSE OF NEW AR PRODUCTS COMING TO BEAR, MANAGING TO DRIVE, AT LEAST IN THIS FISCAL QUARTER LOOKING FORWARD MILLION DOLLARS WORTH. ZOOM SHOWED AI TOOLS HELPING THEIR REVENUE. THEY RAISED THEIR FORECASTS BUT NOT ENOUGH TO IMPRESS INVESTORS.
1.4%. TODAY WE GET MORE RESILIENT IN APPLE. WE WERE LOWER BY MORE THAN 2% YESTERDAY. WHERE DOES -- WHERE IS THERE AR
LEAD? THERE IS CONCERN WITH THE DEAL WITH OPENAI BRINGING ON JOHNNY I'VE -- IVE'S COMPANY. ED: BREAKING. GOOGLE, ALPHABET, THE PARENT OF GOOGLE IS FACING A JUSTICE DEPARTMENT ANTITRUST PROBE INTO ITS DEAL WITH CHARACTER AI. AS A JUSTICE DEPARTMENT IS LOOKING INTO WHETHER ALPHABET VIOLATED ANTITRUST LAW WITH ITS AGREEMENT TO USE THE TECHNOLOGY OF THE POPULAR CHATBOT MAKER. BLOOMBERG IS REPORTING THAT SOURCES RECENTLY TOLD GOOGLE THEY ARE EXAMINING THE STRUCTURE OF THE AGREEMENT BETWEEN ALPHABET AND CHARACTER AI. THE SHARES PARING A LITTLE BIT OF THEIR GAMES.
THERE HAS BEEN SOME MOMENTUM IN THE STOCK THIS WEEK. STAYING WITH AI, A BIG STORY. OPENAI SET TO EXPAND ITS STARGATE AI INFRASTRUCTURE PROGRAM INTERNATIONALLY. THE COMPANY IS PARTNERING ON A FIVE GIGAWATTS THE DATA CENTER CLUSTER IN ABU DHABI. JOINING US IS THE OPENAI CHIEF GLOBAL AFFAIRS OFFICER. HOW DID THIS COME ABOUT? WE KNOW THE DETAILS. IT'S A HUGE PROJECT.
WE CAN GET INTO IT. THERE IS A BACK STORY HERE MANY WANT TO KNOW ABOUT. WHO WAS INVOLVED FROM THE UAE? WHO WAS INVOLVED FROM THE ADMINISTRATION ON THE SIDE? WHO WAS INVOLVED FROM OPENAI? WORKS MARK -- >> MULTIPLE STREAMS HAVE COME TOGETHER HERE. OPENAI HAVE BEEN TALKING ABOUT THE CONCEPT OF, HOW DO WE ALLOW THE FACT THE U.S. IS A LEADING ON INNOVATION TO LEVERAGE THE LEAD TO BEGIN TO BUILD DEMOCRATIC AI RAILS AROUND THE WORLD? WE HAVE BEEN HAVING THIS CONVERSATION FOR MORE THAN A YEAR. COUNTRIES ALL AROUND THE WORLD INCLUDING IN THE UAE.
THE NEW ADMINISTRATION COMES IN. PRESIDENT TRUMP COMES IN. THERE IS A NEW VISION TO HAVE WHAT I WOULD CALL IT COMMERCIAL DIPLOMACY APPROACH THAT INCLUDES BOTH HOW WE CAN USE OUR TECHNOLOGY AGAIN TO BUILD THESE DEMOCRATIC RAILS AROUND THE WORLD AND BRING INVESTMENT BACK TO THE U.S.. WITH THE PRESIDENT'S TRIP LAST WEEK TO THE MIDDLE EAST, PARTICULARLY, INTO THE UAE, THAT WAS REALLY A CATALYST, A MOMENT TO BRING ALL THESE DIFFERENT STREAMS TOGETHER. THE ADMINISTRATION WAS IN THE MIDDLE OF TRYING TO FORGE AND FACILITATE ALL THIS. ULTIMATELY, WHAT WE ARE
ANNOUNCING TODAY I THINK IT'S ONE OF THESE WIN WIN. THERE ARE TWO COUNTRIES THAT CAN BUILD AI AT SCALE IN THE WORLD, U.S. AND CHINA. THIS IS A WIN FOR INVESTMENT BACK TO THE U.S.. ED: CAN UAE DO IT AT SCALE?
FIVE GIGAWATTS IS AN INSANE AMOUNT OF POWER. THE INTERNATIONAL ENERGY AGENCY AND ITS DATA SHOW THE ENTIRE COUNTRY GENERATED 150 5000 GIGAWATTS HOURS OF ELECTRICITY IN 2022. IT'S ABOUT 17.7 GIGAWATTS IN TOTAL. THE DATA CENTER WILL CONSUME ONE THIRD OF THE ENTIRE COUNTRY'S ENERGY. HOW ON EARTH WILL THEY SUPPLY IT? >> SAM ALTMAN, OUR CEO, HAS TALKED ABOUT THE FACT THAT AS WE MOVE INTO THE INTELLIGENCE AGE, DRIVEN BY AI, THERE ARE TWO COMPONENTS THAT DRIVE THIS. ACCESS TO ELECTRONS, ENERGY, AND HOW INNOVATION MOVES FORWARD.
THESE TWO THINGS MOVE IN CONCERT. WHEN YOU TALK ABOUT THE UAE IN THIS FACILITY THAT IS FIVE GIGAWATTS OVER A TIME PERIOD. OUR PIECE THAT WE ARE ANCHORING ON IS THAT WE WILL DO ONE GIGAWATTS AND WITHIN THE ONE GIGAWATTS ABOUT 200 MEGAWATTS COMING ONLINE OVER THE COURSE OF NEXT YEAR. I THINK THE WAY TO THINK ABOUT THIS IS IT WILL LIKELY GO IN A SERIES OF STAGES. WHAT IS REALLY IMPRESSIVE AND INTERESTING THINKING ABOUT THIS PARTICULAR PARTNERSHIP IS WE WILL BRING AI TO THE ENTIRE NATION, THE ENTIRE COUNTRY. IT WILL BE ACCESSIBLE FOR CITIZENS.
IT WILL BE USED BY THE COUNTRY TO ADVANCE TRANSPORTATION, ENERGY MODERNIZATION, HEALTH CARE, EDUCATION. A REALLY INTERESTING WAY TO THINK ABOUT IT, IF YOU THINK OF AI AS ALMOST A NATIONBUILDING TECHNOLOGY, COUNTRIES AROUND THE WORLD UNDERSTAND THIS IS MAY BE OUR GENERATION'S EQUIVALENT OF ELECTRICITY. TWO COUNTRIES CAN PROVIDE IT. THE U.S. AND CHINA. THERE IS AN OPPORTUNITY TO WORK
WITH THESE COUNTRIES TO CREATE INTERESTING MODELS. STARGATE IN THE U.S. IS AN INFRASTRUCTURE PROJECT. WE HAVE STARGATE IN THE UAE. OUR HOPE, ASPIRATION, AND PLAN IS TO BEGIN TO DO THIS AROUND THE WORLD. OUR CHIEF STRATEGY OFFICER IS HEADING TO ASIA NEXT WEEK FOR A SERIES OF CONVERSATIONS TO BUILD ON THIS. CAROLINE: ARE THERE ONE OR TWO COUNTRIES IN ASIA YOU ARE FOCUSING ON? CHRIS: WHEN WE LOOK AT ASIA, WE HAVE TALKED ABOUT STAGE ONE OR THE INITIAL STAGE OF WHAT WE CALL OPENAI FOR COUNTRIES. WE WILL LOOK AT COUNTRIES IN
ASIA. I BELIEVE YOU WOULD PUT THEM IN THE COUNTRY OF BEING HISTORIC U.S. ALLIES. HISTORIC U.S. PARTNERS. JASON WILL BE TRAVELING TO COUNTRIES LIKE KOREA, JAPAN, AUSTRALIA, SINGAPORE. ALL PLACES WHERE WE WILL HAVE
THOSE CONVERSATIONS AND AS WE GET INTO THE CONVERSATIONS WE WILL LEARN MORE. TO DATE WE HAVE ALREADY HAD MORE THAN 30 COUNTRIES AROUND THE WORLD REACH OUT TO US TO TALK ABOUT OPENAI FOR COUNTRIES. ARE IS GREAT INTEREST. I THINK WHAT IS GOING ON HERE IS THE WORLD UNDERSTANDS WE ARE IN A MOMENT WHERE THERE IS AN IMPERATIVE TO GAIN ACCESS TO THIS TECHNOLOGY. THE U.S. DOES HAVE THE INNOVATION LEAD. CAN THE U.S. LEVERAGE THE LEAD TO BRING OUR
VERSION OF AI, A DEMOCRATIC VERSION, TO THE REST OF THE WORLD. AND AS PART OF THAT, BRING INVESTMENTS BACK TO THE U.S. AS WELL? CAROLINE: WHAT IS THE LIMITING FACTOR? IF ENERGY CANNOT BE BROUGHT TO BEAR, FIVE GIGAWATTS IN THE UAE, IT CERTAINLY CANNOT BE IN THE UNITED STATES. WHAT IS THE TIMEFRAME TO HAVE THE INFRASTRUCTURE NECESSARY TO BRING GENERATIVE AI TO THE MASSES, TO BRING HARDWARE BY 2026.
>> ON THE UAE QUESTION, HAVING SPENT TIME THERE LAST WEEK I THINK THIS COUNTRY HAS A REAL PLAN AND REAL STRATEGY AND I AM CONFIDENT THEY WILL BE ABLE TO GET TO WHERE THEY WANT TO. WE FEEL CONFIDENT IN THE ABILITY TO DELIVER ON THE ONE GIGAWATT WE AGREED TO. IN TERMS OF THE DATA CENTER. I WAS IN ABILENE TEXAS VOLUNTEERING -- VISITING ONE OF OUR SITES AS PART OF U.S. STARGATE. IT WILL BE OVER A GIGAWATT OF ENERGY. THERE ARE 3000 WORKERS ON THE GROUND. ELECTRICIANS, PLUMBERS,
METALWORKERS, CARPENTERS. SOMETIMES THE NUMBERS INCREASE FROM 3000-10,000 WORKERS ON THE GROUND THERE. THIS IS A COUNTRY, THE UNITED STATES, THAT HAS A HISTORY OF THINKING BIG, ACTING BIG, AND BUILDING BIG. THE CONVERSATIONS WE ARE HAVING ON U.S. STARGATE WITH OTHER STATES AROUND THE COUNTRY IN TEXAS HAS SHOWN US THERE IS CLEARLY A PATH TO MOVE FORWARD DEVELOPING THE KIND OF INFRASTRUCTURE WE WILL NEED IN THE U.S..
YES, THERE ARE CHALLENGES. BUT I THINK THERE IS AN UNDERSTANDING THAT WE ARE IN A GLOBAL ECONOMIC COMPETITION. INFRASTRUCTURE IS DESTINY. IT'S THE KEY TO THE U.S.
MAINTAINING ITS LEAD. THERE WAS A LOT OF SUPPORT AND EVEN ENERGY BEHIND IT. >> OPENAI'S CHIEF GLOBAL AFFAIRS OFFICER, THANK YOU FOR TALKING US THROUGH THE DEAL.
COMING UP, DIGITAL PHYSICAL THERAPY CENTER HINGE HEALTH GOES PUBLIC. THIS IS BLOOMBERG. >> THE FIRST TIME IN EUROPE, SALES OF CHINA'S BYD ELECTRIC VEHICLES OVERTOOK TESLA IN THE MONTH OF APRIL. LET'S GET TO CRAIG TRUDELL. IT IS A KEY MOMENT. 24 HOURS OR SO AFTER ELON MUSK TOLD BLOOMBERG HE -- THAT IT WAS NOT A TESLA UNIQUE PROBLEM, WEAKNESS OF SALES IN EUROPE. CRAIG: WHEN YOU LOOK AT THE SALES JAGO RELEASED TODAY, ONE OF THE KEY THINGS THAT COMES ACROSS HERE IS GOING BACK BEFORE APRIL, BYD WAS NOT EVEN SNIFFING TESLA'S SALES, REALLY UNTIL EARLY THIS YEAR.
FOR THEM TO PASS TESLA IN THIS REGION AFTER FOR SO LONG EUROPE BEING A WEAKNESS. WE HEARD ELON MUSK OFFER THE EXCUSE EUROPE HAS BEEN A WEEK MARKET FOR TESLA. WHEN YOU LOOK AT THE ELECTRIC VEHICLE SEGMENT, TESLA HAS BEEN A LEADER IN EUROPE UNTIL RECENTLY. FOR THEM TO BE OFF TO SUCH A DEPRESSED START EARLIER THIS YEAR. YOU SEE VOLKSWAGEN BE STRONG, BMW. SCOTER, A HUGE GAINER IN THE EV SEGMENT.
AND BYD CRACKING THE TOP 10 AND BEATING TESLA IN THE PROCESS IT IS THE WATERSHED MOMENT. IT WILL TURN HEADS AND MAKE PEOPLE APPRECIATE HOW MUCH OF A CHALLENGE ELON MUSK MIGHT BE HAVING IN THIS REGION. CAROLINE: THE MARKET HAS SHAKEN OFF SUMMER FOR CONCERNS. ONE COMPANY GOING PUBLIC TODAY IS HINGE HEALTH PRICING ITS IPO AT $32 PER SHARE, HOW INDICATING IT WILL OPEN HIGHER ON THE MARKETS. HE RAISED MORE THAN 400 MILLION DOLLARS. WHAT IS THE OPPORTUNITY TO GROW NOW.
WHAT IS THE SIZE OF THE MARKET YOU CAN NOW PENETRATE? DANIEL: OUR VISION AT HINGE HEALTH IS TO USE TECHNOLOGY TO SCALE AND AUTOMATE THAT ARE MET -- IN THE DELIVERY OF CARE ITSELF. IT IS A FANTASTIC OPPORTUNITY. WE STARTED WITH PHYSICAL THERAPY WE SHOWED WE CAN AUTOMATE AWAY 95% OF THE HUMAN CLINICIAN HOURS ASSOCIATED WITH PHYSICAL THERAPY ABOUT A $50 BILLION MARKET IN THE U.S.. 20 MILLION AMERICANS NOW HAVE ACCESS TO HINGE HEALTH. ONLY ABOUT 8% OF ADULT. WE ARE JUST GETTING STARTED. >> YOU COME IN AT A MORE THAN $2 BILLION VALUATION AT THE PRICE POINT YOU ARE AT.
BUT IT IS A LONG WAY FROM YOUR ORIGINAL VALUATION IN 2021 WHEN MARKETS WERE MORE CRAZED. WHY COME TO IPO NOW? WHY NOT WAIT FOR EVALUATION TO RECOVER? WILL YOU EVER GET TO THE $6 BILLION LEVEL AGAIN? DANIEL: WHEN WE CLOSED OUR LAST PRIVATE MARKET VALUATION IN OCTOBER 2021 IT WAS THREE WEEKS BEFORE THE NASDAQ PEAKED IN ITS LAST BUBBLE. IT WAS NOT GENIUS ON MY END. IT WAS DIVINE INTERVENTION. SINCE THAT MOMENT, WE HAVE MORE THAN DOUBLED OUR REVENUE, DOUBLED OUR GROSS PROFITS WE ARE BRINGING HOME.
WE WENT FROM LOSING $100 MILLION A YEAR TO BEING FREE CASH FLOW POSITIVE THE LAST FOUR QUARTERS AND HAVING A 12% OPERATING MARGIN Q1. I CAN'T CONTROL WITH THE MARKETS WILL GO. WE HELD UP TO OUR END OF THE BARGAIN. ED:
I HAVE HAD HUNDREDS OF HOURS OF PHYSICAL THERAPY AND I HAVE LEFT MY RUGBY CAREER BEHIND. BUT I DID THAT IN PERSON, PHYSICALLY. THIS TECHNOLOGY CONVINCED ME IT WILL GET ALL MARKET OF PEOPLE RELUCTANT TO GO AND DO THAT BECAUSE THEY CAN SUDDENLY DO IT THROUGH A DIGITAL MEDIUM? DANIEL: 40% OF AMERICANS LIVE A MUSCULOSKELETAL CONDITION IN A GIVEN YEAR. ABOUT 9% OF US SEE A PHYSICAL THERAPIST. THERE IS A BIG DROP OFF BETWEEN THOSE WITH THE CONDITIONS AND THOSE ACTUALLY GOING TO PT. PT ARE ONE OF THE MOST POPULAR PROVIDERS, BUT GOING TO PT, TAKING 2-3 DAYS OFF WORK EACH WEEK AND PAYING A CO-PAY, A PARKING FEE, IT'S REALLY INCONVENIENT.
WITH OUR TECHNOLOGY WE IMPROVE ACCESS, CONVENIENCE, PERSONALIZATION, AND SUBSTANTIALLY LOWER COST. THAT IS WHY WE HAVE BEEN SO POPULAR WITH MEMBERS AND ENTERPRISE CUSTOMERS. >> THE BIGGEST COMPLAINT AND PROBLEM FOR YOU AS WELL GO ON THE TOP LINE ABOUT VIRTUAL HEALTH IS THE INSURANCE FACTOR. HAVE YOU CRACKED IT? WILL YOU BE ABLE TO MOVE SMOOTHLY BILLING THROUGH INSURANCE AND THAT KIND OF THING? >> REIMBURSEMENT THROUGH INSURANCE IS ONE OF THE BIGGEST BARRIERS TO INNOVATION IN HEALTH CARE. 50 PLUS HEALTH PLANS AND PHARMACY BENEFIT MANAGERS INCLUDING FIVE OF THE TOP FIVE HEALTH PLANS AT ALL THREE LEADING PBN'S HAVE SELECTED HINGE HEALTH AS EITHER THEIR PREFERRED OR EXCLUSIVE DIGITAL MUSCULOSKELETAL PROVIDER AND IT MEANS A SELF EMPLOYED INSURERS BUYING US DON'T HAVE TO WORRY ABOUT I.T., PROCUREMENT. IT WAS VERY TOUGH EARLY ON. BUT WE HAVE SEEN REPUTABLE GO TO MARKET MOTION TO ONBOARD A LOT OF CUSTOMERS QUICKLY. NOW 20 MILLION AMERICANS HAVE
ACCESS, BUT WE HAVE A LOT OF WORK TO DO. 120 AMERICANS GET HEALTH CARE FROM THEIR EMPLOYER AND ANOTHER 100 MILLION PLUS OUR ON FULLY INSURED, MEDICARE ADVANTAGE, OR MEDICAID PLANS BUT WE HAVE A REALLY GOOD HEAD START. ED: DAN PEREZ, CEO'S HINGE HEALTH, THANK YOU. COMING, PRESIDENT TRUMP ED: SOME OF THE BIGGEST HOLDERS OF TRUMP GOING ARE SET TO JOIN PRESIDENT TRUMP FOR DINNER THIS EVENING. AMONG THE ATTENDEES IS CRYPTO ENTREPRENEUR AND FOUNDER OF THE TRON BLOCKCHAIN JUST AN SUN WHO REVEALED HE WAS THE TOP HOLDER OF THE MAIN COIN. -- JUSTIN SUN WHO REVEALED HE WAS AT TOP HOLDER OF THE MEME COIN.
>> IF I WAS NOT INVITED TO THE DINNER, UNFORTUNATELY, BUT I THINK SOME OF THE TRUMP INVOLVEMENT IN THE DIGITAL ASSET WORLD HAS BEEN INCREDIBLY HELPFUL FOR THE MOMENTUM IN THE INDUSTRY. IT HAS OPENED A LOT OF DOORS. THAT'S GREAT. WE NEED TO CONTINUE THAT MOMENTUM. THERE HAVE BEEN SOME ASPECTS WHICH OBVIOUSLY CREATED NOISE AROUND THE EDGES. I THINK THAT WILL WORK ITSELF OUT. ED: THE WAY I LOOK AT THIS ACROSS MANY TECHNOLOGIES, BUT IN THIS CASE, CRYPTO, IS THAT GETTING IN FRONT OF THE PRESIDENT CAN OFTEN INFORM HIS ATTITUDE TOWARDS SOMETHING.
AS A GENERAL COUNSEL DO YOU SEE THAT MOVING FORWARD TO LEGISLATION OR SOMETHING SPECIFIC ON A POLICY FRONT? >> I DO, BUT NOT JUST BECAUSE ONE PERSON HAS TRUMP'S EAR. THERE HAS BEEN A CLEAR AGENDA SET OUT BY MANY VERY INVOLVED DIGITAL ASSET ECOSYSTEM SMART LEADERSHIP FOLKS WORKING WITH CONGRESS. WE HAVE A CONGRESS WITH A COUPLE YEARS BEHIND IT IN EXPERIENCE LOOKING AT TRYING TO GET LEGISLATION MOVING FORWARD. WE ARE FINALLY SEEING ALL OF
THE MOMENTUM WITH THEIR GENIUS MOVEMENT THAT HAS BEEN TREMENDOUS. A TREMENDOUS STEP FORWARD. SOME OF IT IS ALREADY BAKED INTO THE MARKET. >> YET, SENATOR ELIZABETH WARREN, ADAM SCHIFF BASICALLY SEND THE DINNER SHOWS WHY WE ARE WORRIED.
WHY THE RULES ARE NOT TOUGH ENOUGH. BECAUSE YOU HAVE A SO-CALLED PAY TO PLAY OCCURRENCE WITH THE DINNER. CORRUPTION AND FOREIGN INFLUENCE IS A RISK. YOU SEE THAT? KATHERINE: I DO SEE THAT. I SEE IT MORE AS NOISE AND SOMETHING WE CAN SEGMENT. IT'S NOT A REASON TO NOT MOVE FORWARD WITH THIS IMPORTANT LEGISLATION. WHICH IS BECOMING MORE AND MORE BIPARTISAN. THE MORE WE MOVE DIGITAL ASSETS
OUT OF THIS POLITICAL NOISE, THE BETTER. WE DON'T WANT IT TO BE INFLUENCED OR HAVE THE MOMENTUM CHANGED OR CHALLENGED BECAUSE OF THESE CONFLICTS. IT'S INCREDIBLY IMPORTANT TO DEAL WITH CONFLICTS IN A TRANSPARENT WAY. I BELIEVE WE CAN DO BOTH AT THE SAME TIME AND MEET BOTH NEEDS. WITHOUT SAYING ALL OR NOTHING.
WE CANNOT MOVE FORWARD ON THIS BECAUSE OF THIS NOISE. THE CONFLICTS ARE INCREDIBLY IMPORTANT TO DEAL WITH. WE DON'T WANT THAT STOPPING UP THE INCREDIBLE MOVEMENT WE NEED TO CONTINUE TO SEE WHICH IS SO IMPORTANT FOR MANY REASONS. ONE OF WHICH IS TO KEEP THE U.S. AT THE FOREFRONT OF EXPANDING
THE TECHNOLOGY AND THAT CANNOT BE UNDERSCORED. IT IS INCREDIBLY IMPORTANT. WE NEED TO HOLD ON TO MAINSTAY, THAT CORE, TO MAKE SURE WE DEAL WITH THE NOISE ON THE SIDE AND FIGURE OUT A WAY TO CREATE BARRICADES AROUND THE CONFLICTS SO IT DOES NOT IMPACT THE MOVEMENT WE NEED TO CONTINUE TO PUSH FOR. CAROLINE: TOKENIZED ASSETS WHEN IT COMES TO EQUITIES, X STOCKS BACKED BY BACK FINANCE. OUTSIDE THE U.S. YOU MAY BE ABLE TO HAVE A TOKENIZED VERSION OF TESLA AND IN VIDEO STOCKS TO TRADE 20 FOUR HOURS.
ARE YOU OPTIMISTIC THAT THIS INNOVATION WILL BE MET WITH REGULATORY CLARITY IN THE U.S.? KATHERINE: ABSOLUTELY. IT'S COMING SOON. THIS IS THE TIP OF THE ICEBERG AND IT'S EXCITING. YOU WILL SEE MORE AND MORE TOKENIZATION EXPERIMENTS, BETA PROGRAMS LIKE THIS ONE. THAT'S A GOOD SIGN. LOOK AT TOKENIZATION.
YOU CAN'T POLITICIZE TOKENIZATION. IT'S BLURRING THE LINES BETWEEN TRADITIONAL FINANCE AND CRYPTO TRADING. IT'S CHANGING THE ARCHITECTURE. AT ITS HEART THAT IS WHAT BLOCKCHAIN IS ABOUT, CHANGING THE ARCHITECTURE. SWIFT IS NOT SWIFT ANYMORE WHEN YOU LOOK AT BLOCKCHAIN TECHNOLOGY IN TERMS OF HOW QUICKLY YOU CAN SETTLE. HOW QUICKLY YOU CAN PAY PEOPLE ON A GLOBAL SCALE. THE MORE WE FOCUS ON THE TECHNOLOGY AND HOW WE ARE CHANGING TRADITIONAL FINANCE, THE WAY WE MAKE PAYMENTS, THE WAY WE MAKE SETTLEMENTS, STABLECOIN IS A GREAT WAY. LOOK AT HOW STABLECOIN WORKS.
IF YOU CAN FOCUS ON THAT TECHNOLOGY ASPECT, MOVE OUT NOISE ON THE SIDES, MAKE IT LESS POLITICAL, WE WILL GET FURTHER FASTER. CAROLINE: WE WILL SEE IF THE ADMINISTRATION ACQUIESCES. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: CHECK OUT THE BLOOMBERG TECHNOLOGY PODCAST ONLINE ON APPLE, SPOTIFY, I HEART, AND ALL OVER THE BLOOMBERG UNIVERSE.
2025-05-24 01:41
