Salesforce to Buy Informatica, Apple’s Tariff Headwinds | Bloomberg Technology 5/27/2025
>> WITH CAROLINE HYDE AND ED LUDLOW. THIS IS BLOOMBERG "TECHNOLOGY." >> LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG "TECHNOLOGY." COMING UP SALES FORCE WILL REQUIRE INFO MATTICA FOR $8 MILLION. ONE OF THE BIGGEST EVER DEALS FOR THE NEXT PHASE OF A.I. DRIVEN GROWTH. ED: APPLE SHARES OFF THEIR LONGEST
SELLOFF IN MORE THAN THREE YEARS. ATTACKS FROM THE WHITE HOUSE ESCALATES. CAROLINE: ELON MUSK TURNS HIS ATTENTION BACK TO SPACEX AND WILL LAY OUT HIS VISION IN A LIVE STREAM LATER. WE CHECK IN ON THE MARKETS. ED, WE ARE ROCKETING HIRE ON THIS SPACE AS WELL. CURRENTLY UP 1.8%. ARE YOU SEEING STRENGTH AS CONSUMER SENTIMENTS MANAGES TO SHOW ENCOURAGEMENT. WE SEE MAYBE ENCOURAGEMENT WHEN
IT COMES TO U.S. AND EUROPEAN TRADE TALKS AND CAME ON WHAT WAS BA DOWN WEEK LAST WEEK. ARE YOU LOOKING AT SOME OF THE BIGGEST MOVES IN THE INDEX. ED: WE HAVE A DEAL. THAT DEAL IS BETWEEN SALES
FORCE AND THE CLOUD DATA MANAGEMENT PLATFORM, INFO MATTICA. $8 MILLION DEAL. $25 PER SHARE AND SALES FORCE SAYING THEY ARE GOING USE A COMBINATION OF CASH AND DEBT TO FINANCE THE DEAL. THIS IS INTERESTING, IT’S A SECOND BITE OF THE APPLE. INFOMATICA NOW A LOT MORE TO LEARN ABOUT WHAT HAPPENED NOT JUST IN THE LAW DAYS BUT YEAR -- LAST FEW DAYS BUT THE LAST YEAR. CAROLINE: IT WAS A FRIDAY STORY WHEN IT COMES TO THIS ROUND. SALES FORCE LOOKED TO BUY A YEAR AGO.
>> ONCE YOU HAVE A DEAL GET SCUTTLED AND NOT HAPPEN, YOU HAVE TO BE REALLY SURE THAT IT’S GOING TO HAPPEN. LATE FRIDAY WE HEARD THAT THIS COULD BE COMING AS EARLY AS THIS WEEK. WE SORT OF WENT FOR IT HERE. WE WERE TRYING TO UNDERSTAND WHAT A CHANGE FOR SALESFORCE.
WHAT’S CHANGED IS THEY ARE PAYING $2 BILLION LESS THAN A YEAR AGO. THEY LOOK SMART IN THAT RESPECT. ED: A YEAR AGO WHAT CHANGED FOR NFORMATICA IT SHADE FOR $30 A YEAR AGO. AND WHEN WE BROKE FRIDAY IT WAS $20 OR SO. HOW SALESFORCE IS FUNDING THIS? THE MECHANICS OF THE DEAL. SALES FORCE’S HISTORY HOW MUCH WAS SURPRISING? >> SALESFORCE IS A JUGGERNAUT IN M.M.A. THEY CAME IN THE CROSSHAIRS OF ACTIVISTS, INVESTORS A FEW YEARS AGO. YOU COVERED THAT CLOSELY.
WHERE THE ACQUISITION STRATEGY WAS UNDER THE SPOTLIGHT. HE TOOK A BREATHER FOR FEW YEARS AND BACK IN A BIG WAY WITH THIS $8 BILLION ACQUISITION. IN THE FALL WE BROKE ANOTHER STORERY, SALESFORCE BOUGHT OWN, A SMALLER YIELD, $1.9 BILLION. SALESFORCE HAS BEEN DOING DEALS. THIS IS THE LARGEST IN A WHILE. HISTORICALLY SLACK WAS LARGER THEVMENT ALSO DID TABLEAU SOFTWARE. THIS IS A COMPANY THAT LOVES ORGANIC GROWTH AND IT’S BACK ON TRACK. CAROLINE: THEY BROUGHT MILLSOFT WHICH
COMPETES WITH NFORMATICA. >> ANALYSTS ARE WATCHING. IT WILL BE A TEST TO SEE HOW SALESFORCE WILL BE VIEWED UNDER THIS ADMINISTRATION.
WE’LL TRACK THAT CLOSELY. FROM WHAT WE UNDERSTAND THEY GOT THIS DEAL DONE. IT DIDN’T STOP THEM FROM GETTING IT ANNOUNCED. WE’LL SEE WHAT COMES NEXT. ED: OUR DEALS TEAM, THANK YOU VERY MUCH. GET TO SOME MARKETS REACTION. HEAD OF MARKET ANALYSIS.
INTERESTING HEAD LINE. WE HAVE M.M.A. IN THE SOFTWARE SPACE. JUST AS A MOMENT IN TIME HOW DO YOU SEE THAT PLAYING OUT MORE BROADLY FOR SOFTWARE CORNERS OF THE TECH MARKET? >> HI, THANKS FOR HAVING ME. I THINK THAT’S VERY EXCITING. I THINK A.I. IS STILL DRIVING A LOT OF THESE
EXCITEMENT. AND WHAT WE ARE LOOKING IS THAT THERE IS SOME CONSOLIDATION IN THE INDUSTRY. COMPANIES WANT TO DEEPEN AND STRENGTHEN THEIR CAPABILITY IN A.I.-DRIVEN GROWTH. JANET: IN DATA ANNA MITTICS -- ANALYTICS, AND ALSO DEVELOPING FURTHER IN THE CLOUD. I GUESS THIS IS VERY EXCITING AND VIEWS UP FURTHER THE CASE FOR THE LONG-TERM A.I. INVESTMENT. ED:
AIM LOOKING AT SHARES OF NVIDIA, UP 3% IN THE SESSION. THE MACROEVENT OF THE WEEK, THE MACROEVENT IS PROBABLY NVIDIA’S EARNINGS AFTER THE MARKET CLOSED ON WEDNESDAY NIGHT. ON YOUR DESK, FOR YOUR CLIENTS, IN YOUR WORLD, IS IT A MACROLEVEL EVENT? SOMETHING LIKE NVIDIA EARNINGS? JANET: DEFINITELY. I THINK EVERYONE IS EXCITED ABOUT IT. WE’LL BE LOOKING AT IS DEFINITELY THE PROFIT MARGINS. IT IS GETTING HARDER AND HAD ADDER -- HARDER. AND THE RAMP UP OF BLACKWELL AND HOW THE SERVERS -- DATA SERVICE IS -- AND SOVEREIGN A.I., I THINK THAT’S A VERY IMPORTANT TALENT FOR NVIDIA IN
THE FUTURE. I THINK OF COURSE KOFNTRY ON THE SITUATION SELLS TO CHINA AND THINGS LIKE THAT, ALSO I THINK THE VALUATIONS OF NVIDIA IS NOT DEMANDING AT ALL. IT’S ONLY 25 TIMES EARNINGS. I GUESS THE MARKET IS STILL HAVING DOUBTS ON THE DIGESTTON OF THOSE A.I. CHIPS GIVEN THE HYPER SCELLERS
HAVE SPENT HUNDREDS OF BILLIONS OF DOLLARS AND HOW MUCH OF THAT A.I. AND STARGATE IS GOING TO COMPENSATE FOR THAT. WE ARE SILL IN THIS DIGESTTON PHASE. IT WILL BE INTERESTING TO SEE HOW THE EXECUTIVES ARE GOING TO COMMENT ON THAT. CAROLINE: DO YOU NEED TO HEAR THAT BULLISHNESS, THAT ULTIMATE DEMAND BEING PUSHED FORWARD. A ENTHUSIASTIC GUIDANCE COMING FROM JENSON TO BUILD AROUND THE A.I. THEME ONCE AGAIN OUTWEIGHING WHAT HAS BEEN GEOPOLITICS THAT WEIGHS DOWN SOME OF THESE HARDWARE NAMES. JANET: I THINK SO.
I THINK WE NEED TO SEE A PRETTY BULLISH GUIDANCE. THE PROBLEM IS THAT THE STOCK HAS REASON, ABOUT 40% SINCE IT SLOWED. TO GET EVEN HIGH TO BREAK THAT PREVIOUS HIGH I THINK WE NEED MORE GOOD DEALS. AS I SAID THERE IS STILL A LOT OF CONCERNS ON GEOPOLITICS.
PRESIDENT TRUMP HAS CANCELED THAT A.I. DIFFICULT FUSION ROUTE. SOMETHING ELSE IS COMING. I GUESS THERE IS CONCERN ON THE COMPETITIVE LANDSCAPE. CHINA IS VERY CLOSE BEHIND. I GUESS WE NEED A LOT OF GOOD NEWS FOR THE SHARE PRICES TO POWER AHEAD. CAROLINE: TAKE STOCK FOR A MOMENT OF THE ONSLAUGHT OF HEADWINDS WE HAVE HAD FROM A GEOPOLITICAL NATURE. WE ARE ABOUT TO DIG INTO APPLE.
THE TARIFF ANXIETY THERE. THE TIT FOR TAT THAT MIGHT COME BACK IF EUROPE DOES HAVE ITS EYE ON BIG TECH IN TERMS OF MORE DIGITAL SERVICES TAXES, WAYS TO RESPOND. HOW HARD IS IT TO INVEST IN BIG TECH, BIG U.S.
NAMES AT THE MOMENT? JANET: I THINK THE LONG-TERM STORY IS IN TECH. THESE ARE GREAT COMPOUNDERS. I DON’T THINK PEOPLE ARE DOUBTFUL OF THEIR POTENTIAL AND THEIR LONG-TERM GROWTH. THE PROBLEM IS THAT IN THE NEAR TERM THERE IS SO MUCH UNCERTAINTY OF A TARIFF.
I THINK EVEN IF THE TARIFFS ARE SCALED BACK OR PAUSED, I THINK AT THE END OF THE DAY SOME OF THESE BIG TECH COMPANIES THAT ARE HIGHLY LINKEDIN THE SUPPLY CHAINS WILL STILL SEE SOME EROSION IN THE PROFIT MARGIN. I GUESS THAT’S THE CONCERN. ANTI-THING IS THEY ARE ALREADY VERY BIG. AND IT IS VERY -- AND THE THING IS THEY ARE ALREADY VERY BIG. IT IS VERY HARD TO GROW AS SUCH A FAST PACE GOING FORWARD.
GIVEN THE VALUATION’S COME UP AGAIN AFTER THE RECENT RALLY, INVESTORS WILL BE BACK IN A VAULT OF CAUTION -- CAUTIOUS MODE GOING FORWARD. WE NEED MORE A.I. GOOD NEWS. TRADE DEALS. BETTER ECONOMIC DATA FROM THE U.S. AND LOWER INFLATION, FOR EXAMPLE. ED:
JANET, IS THERE A CORNER OF THE TECHNOLOGY SECTOR THAT’S UNDER APPRECIATED BY THE MARKET? JANET: I THINK -- FOR US, RIGHT, WE ARE MORE ON THE ARKTS I. PICKS AND -- A.I. IS PICKS AND SHOVELS. I THINK SOFTWARE REMAINS A GOOD PLACE TO BE GIVEN THAT IT IS ARGUABLY LESS IMPACTED BY TARIFF. I THINK THERE IS STILL A LOT OF INNOVATION GOING ON.
I THINK SOME OF THE SHARE PRICE MOVEMENT IN BIG TECH COMPANIES, FOR EXAMPLE APPLE, HAS BEEN QUITE NEGATIVE. I THINK OBVIOUSLY IT IS IMPACTED BY TARIFFS. I GUESS INVESTORS ARE LOOKING FOR SOME NEW INNOVATION, NEW PRODUCTS, PIPELINES, THINGS LIKE THAT. NEW FEATURES ON A.I. I THINK IN APRIL WE WERE ABLE TO DELIVER THAT. I THINK THAT CAN OFFSET SOME OF THE WORRIES AND POTENTIALLY RECOVER FROM THE RECENT NEGATIVE SHARE PRICE REACTION. CAROLINE: WE’LL DIG INTO THAT IN A MOMENT.
A LITTLE MORE ON APPLE. JANET MUI, THANK YOU. COMING UP. APPLE IS GET AGO REPRIEVE AFTER ITS LONGEST SELLOFF WE HAVE SEEN IN MORE THAN THREE YEARS. PRESIDENT TRUMP’S TARIFFS COULD INFUSE MORE VOLATILITY. WE’LL DISCUSS THAT. BREAKING NEWS ON MOVING TRUMP MEDIA. ED: DID YOU SEE D.J.T. THE STOCK’S DOWN MORE THAN 9%. THE NEWS, IT’S A SIMPLE STORY. TRUMP MEDIA WILL RAISE $2.5 BILLION U.S.
DOLLARS IN CAPITAL TO BUY BITCOIN. THERE WAS SOME TRADING. I THINK WE OPENED MARKEDLY HIGHER. WE ARE NOW VERY MUCH DOWN MORE THAN 9%. WE’LL CONTINUE TO TRACK THAT STORY. ED: LOOK AT SHARES OF APPLE. THE TECH GIANT FINALLY IN THE
GREEN AFTER EIGHT STRAIGHT DAYS OF LOSSES. STILL, APPLE REMAINS THE M.A.G. SEVEN’S WORST PERFORMING STOCK IN 2025, FALLING 21% YEAR TO DATE. BLOOMBERG WRITES TODAY THE IPHONE MAKER FACES STILL MORE PAIN. HE JOINS US.
RYAN, WHERE IS THAT PAIN COMING FROM FROM THE STOCK’S PERSPECTIVE? RYAN: THANKS FOR HAVING ME ON. OBVIOUSLY LAST WEEK WE GOT THE SURPRISE ANNOUNCEMENT ABOUT TARIFF SPECIFICALLY ON APPLE. IF IT DOESN’T BRING ITS MANUFACTURING TO THE UNITED STATES.
THIS IS LATER EXPANDED TO INCLUDE ALL SMART PHONE MAKERS. JUST THE LEVEL OF POLITICAL UNCERTAINTY REMAINS EXTREMELY ELEVATED FOR APPLE. WE SAW SO MUCH VOLATILITY FOLLOWING THE INITIAL TARIFF ANNOUNCEMENT IN APRIL. THERE WAS THEN EXEMPTIONS PROVIDED FOR CERTAIN ELECTRONICS CATEGORY. A PAUSE WITH RESPECT TO CHINA.
ANOTHER TARIFF AGAINST THE EUROPEAN UNION WHICH WERE ALSO PAUSED. THE BACK AND FORTH HAS INVESTORS AND ANALYSTS STRUGGLING TO FIGURE OUT WHAT IS THE IMPACT AT APPLE GOING TO BE. DHOW THEY NAVIGATE THIS ENVIRONMENT. WHAT WILL BE THIS KNOCK ON EFFECTS WITH RESPECT TO THE EARNINGS, MARGINS, WITH DEMAND, PRICING. STILL A LOT OF VERY FUNDAMENTAL QUESTIONS SURROUNDING THE COMPANY RIGHT NOW. CAROLINE: WHAT’S INTERESTING IS WE HAD GARY ON THE SHOW LAST WEEK TALKING SURPRISED HOW POORLY TIM COOK SEEMS TO BE NAVIGATING THIS ON A POLITICAL SPER SPECTIVE. THERE IS -- PERSPECTIVE.
THERE ARE SO MANY OTHER HEAD WINDS ALSO. RANDY: THEY ARE STRUGGLINGS. THEIR A.I. OFFICIAL. GROWTH HAS BEEN TEPID ESPECIALLY COMPARED TO OTHER COMPANIES. THE MULTIPLE REMAINS AT THE HIGHER END OF THINGS. A LOT OF ISSUES THAT ARE HAVE INVESTORS LOOKING AROUND AND SAYING IF YOU ARE GOING TO BUY A BIG TECH COMPANY WHAT IS THE ARGUMENT OWNING APPLE OVER OTHER ONE THAT IS OFFER STRONGER GROWTH OR STRONGER A.I. POSITION OR THEY DON’T COME
WITH THIS POLITICAL RISK. ALL THE HEADWINDS ARE STACKED YOU UP AGAINST APPLE IN A WAY THEY ARE NOT FOR THE OTHER MEGACAP TECH STOCKS. ED: SET THE SCENE FOR US YEAR TO DATE. A 8 DOWN -- APPLE DOWN 21%. WHAT DOES THE REST OF THE FIELD LOOK LIKE? RYAN: OTHER NAMES ARE DOING PRETTY WELL A GREAT DEAL OF VOLATILITY.
SOME NAMES HAVE BROKEN BACK INTO THE GREEN FOR THE YEAR. I THINK A LOT OF THESE COMPANIES CONTINUE TO HAVE A LOT OF REALLY ADAMANT SUPPORTERS THEMPLET STILL WELL LIKED ON WALL STREET. THE MOST RECENT EARNING SEASON SHOWED DURABLE GROWTH TRENDS. A LOT OF THEM DEAL IN MARKET POSITION THAT IS DON’T HAVE TOO MUCH TARIFF IMPACT LIKE SOFTWARE OR INTERNET SERVICES. ONLINE ADVERTISING. SOME SORT OF SECOND MOVE IF YOU CONSIDER THE IMPACT TO ECONOMIC GROWTH. OTHERWISE THE NAMES ARE DOING
PRETTY WELL. APPLE IS AN OUTLIER HERE. THE ONLY ONE CLOSE IS TESLA. I THINK I CHECKED THIS MORNING, THAT STOCK IS DOWN 13% THIS YEAR.
THE DEGREE TO WHICH THAT ONE IS LACKING IS FAR LOWER. CAROLINE: RYAN, GREAT TO HAVE YOU YOU. ALWAYS WELL-READ STORIES. LET’S GO BACK TO THE NUTS AND BOLTS OF THE APPLE STORY. GOING BACK TO THE TORRENT OF TRUTH SOCIAL POSTS OUT ON FRIDAY. FIRST FOCUSED ON APPLE. SPREADING THEIR WAY WOULD FEEL FROM TRUMP ALL FOREIGN MADE SMART PHONES WOULD LOOK AT A 25% TARIFF.
DOES APPLE HAVE AN EDGE IN THAT? >> THE PHONE IS STILL THE MOST VALUED DEVICE THAT CONSUMERS ARE CARRYING. HATING ON SMART PHONES WHEN INITIALLY TRUMP HAD SAID THAT THEY WERE GOING TO BE EXEMPT IS GOING TO BE HARD FOR EVERYBODY. CAROLINE: IF YOU LOOK AT THE U.S. MARKET, SAMSUNG IS AND APPLE ARE DOMINATING THE MARKET.
HAVING TARIFFS APPLY TO SAMSUNG AS WELL, WHO WILL HAVE LIMITED AVAILABILITY TO MAKE DEVICES HERE IN THE U.S. WILL BE HARD. FOR APPLE IT’S ABOUT JUGGLING THE SHORT TERM AND LONGER TERM PROSPECT. TRYING TO BALANCE NOT UPSETTING THE PRESIDENT. AT THE SAME TIME NOT UPSETTING CHINA, EITHER. IT IS A BIG MARKET FOR THEM AS WELL. CAROLINE: INDIA, WHERE THEY HAVE BEEN SHIFTING CONVERSATION, WHAT DOES TIM COOK DO TO SATISFY ALL PLAYERS RIGHT NOW? >> I THINK BUYING TIME IS PROBABLY BEST OPTION.
SO MAKING WHATEVER PROMISE HE CAN MAKE OF INVESTING IN THE U.S. OBVIOUSLY IF YOU ARE THINKING ABOUT RESOMETHINGSING THE PRODUCTION HERE IN THE -- REPOSITIONING SOMETHING HERE IN THE U.S., WE ARE TALKING FURTHER THAN THE TERM TRUM 7 IS SERVING. BUYING TIME MIGHT BE ALL THAT IS NEEDED NOW. ED: THE WAY TIM COOK PUT IT IN 2017 WAS ON STAGE WITH "FORTUNE" MAGAZINE IS THAT IN CHINA YOU COULD FILL A FOOTBALL STADIUM WITH SPECIALISTS ENGINEERS. IN AMERICA YOU COULDN’T FILL A
ROOM. A MEETING ROOM WITH THAT SAME LEVEL OF SKILL SET. YOU KNOW ALL ABOUT VERTICAL INTEGRATION AND HOW THE IPHONE IS ASSEMBLED AND THE DIFFERENT HANDS THAT TOUCH IT. HELP US UNDERSTAND WHAT IT WOULD MEAN NOT TO MOVE IPHONE FACTORY TO AMERICA BUT EVERYTHING ELSE THAT COMES WITH IT.
>> THAT IS WHAT IS IMPOSSIBLE TO DO. MOVING THE SUPPLY CHAIN AND THEN FULL PRODUCTION HERE IS IMPOSSIBLE. UNLESS YOU ARE WILLING TO INVEST, NOT JUST FROM AN APPLE PERSPECTIVE, BUT GOVERNMENT PERSPECTIVE, BILLIONS OF DOLLARS IN REPLICATING THIS AND INVESTING 10-PLUS YEARS TO DO SO. I THINK WHAT YOU CAN ASPIRE TO DO IS AN ASSEMBLED IN AMERICA. THE SAME WAY YOU HAVE DESIGN ON THE BACK OF THE DEVICE. THAT IS THE SHORT TERM HOPE. EVERYTHING ELSE IS MORE A FAIRY
TAIL -- FAIRY TALE. ED: AM SHARES FELL LAST WEEK WHEN A HEADLINE CROSSED THE BLOOMBERG TERMINAL THAT OPENAI WAS BUYING JOHNNY’S HARDWARE STOCK FOR $6.5 BILLION TO MAKE A SUITE OF DEVICES. YOUR REACTION, PLEASE.
>> THAT IS DEFINITELY PRESSURE THAT RIGHT NOW APPLE COULD DO WITHOUT. THEY HAVE AMPLE -- AMLE VISION PRO. VERY SUCCESSFUL GENTS PRIZE FROM AN INTEREST PERSPECTIVE, NOT NECESSARILY VOLUME. BUT HASN’T HIT CONSUMERS FOR A RANGE OF THINGS FROM THE PRICE POINT TO THE ECOSYSTEM.
HEARING SOMEBODY THAT HAS WORKED FOR AM SO CLOSELY AND MAYBE DIDN’T LEAVE ON BEST TERMS COMING WITH OPENAI. SO YOU ARE BRINGING TOGETHER A SOAR POINT FOR APPLE WITH APPLE INTELLIGENCE PLUS COMPETITION FROM SOME A.R. PLAY. DEFINITELY NOT A GOOD MOMENT FOR APPLE. CAROLINE: NOT A GOOD MOMENT. ONLY FOUR FELL RATINGS ON THE STOCK. STILL VERY CLOSE TO A $3 TRILLION COMPANY. CAN THEY SWIFTLY TURN THINGS AROUND? CAN THEY REGALE VANNIZE GROWTH -- REGALE VANNIZE -- REGALVANIZE GROWTH? >> WHEN WE SEE MARK REPORTING A REDESIGN FROM AN O.S.
PERSPECTIVE IPHONE AND M.A.C. OR SOME DEVELOPMENT ON THE AM INTELLIGENCE PART. I THINK ULTIMATELY APPLE IS STILL FROM A VENDOR PERSPECTIVE FRRKS A CONSUMER POINT OF VIEW THE ONE THAT HAS THE STRONGEST ECOSYSTEM AND THAT CAN TIE IN CONSUMERS BOTH FROM A SERVICES PERSPECTIVE AND HARDWARE. I THINK THAT THE POINT THAT IS GETTING PEOPLE SCRATCHING THEIR HEADS IS HOW LONG IT’S BEEN TAKE INTERESTING AN APPLE INTELLIGENCE PERSPECTIVE. I STILL BELIEVE THAT ULTIMATELY THEY HAVE ALL THE PIECES THAT CAN COME TOGETHER TO REALLY CONTINUE TO DEVELOP THEIR ECOSYSTEM IN A STRONG WAY AND PLEASE THEIR CUSTOMERS. ED: GREAT TO HAVE YOU PACK HERE ON
BLOOMBERG "TECHNOLOGY." THANK YOU. MARK ZUCKERBERG’S EFFORT TO GET CLOSE WITH PRESIDENT TRUMP HAVE GIVEN HIM DIRECT ACCESS TO THE WHITE HOUSE. WHAT’S THAT DONE FOR HIS COMPANY? WE HAVE MORE ON THAT NEXT.
ED: MARK ZUCKERBERG’S EFFORTS TO WIN OVER MAGA WORLD HAVE BROUGHT THE META C.E.O. CLOSER TO PRESIDENT TRUMP AND HIS ADMINISTRATION. ACCORDING TO THE LATEST BLOOMBERG BIG TAKE, HIS EFFORTS HAVE YET TO BEAR SIGNIFICANT FRUIT FOR THE SOCIAL MEDIA COMPANY.
JOINING US IS RILEY GRINCH ONE OF THE AUTHORS OF THAT TAKE. IT’S DEEPLY REPORTED AND LOOK HOW MARK ZUCKERBERG HAS CHANGED HIMSELF OVER A PERIOD OF TIME TO MORE ALIGN WITH THIS ADMINISTRATION. THE CONCLUSION OF THE PIECE IS FOR META IT’S NOT YET OPENED ANY DOORS IN A WAY THAT HELPS THE COMPANY’S PROFILE. >> ABSOLUTELY. MY COLLEAGUE AND I SPOKE WITH
MORE THAN 50 PEOPLE FOR THIS STORY WHICH SPANS SEVERAL DECADES. WHAT WE FOUND IS THAT THE EFFORTS TO PIVOT TOWARDS TRUMP AND HIS ADMINISTRATION HAVE NOT BORNE THE FRUIT THAT THE COMPANY SO DESIRES. RILEY: ONE OF THE CASE IN POINTS OF THAT STRATEGY AND PERHAPS FAILING SO FAR HAS BEEN MARK ZUCKERBERG’S ATTEMPTS TO END THE F.T.C. TRIAL WE HAVE SPOKEN ABOUT. MARK ENDED UP TAKING THE STAND. THAT WAS ONE OF THE MOMENTS THAT MIGHT SHOW SOME OF THE WEAKNESS OF THIS STRATEGY.
CAROLINE: THE FREQUENT FLYER VISUALIZATIONS HOW OFTEN HE’S ON HIS PLANE TRYING TO GO BACK AND FORTH TO WASHINGTON. ALSO WHAT STUNNED ME WAS JUST HOW LITTLE RESPECT ULTIMATELY IT SEEMED THAT PREVIOUS PRESIDENT BIDEN HAD FOR MARK ZUCKERBERG AND ULTIMATELY FOR META. RILEY: THAT WAS ONE OF THE MOST INTEREST LINES OF REPORTING FOR ME, TOO. WHAT WE FOUND WAS THAT THE BIDEN ADMINISTRATION DID NOT HAVE A PRODUCTIVE RELATIONSHIP WITH META OVER YEARS. AND THAT PRESIDENT BIDEN HIMSELF EVEN DATING BACK TO WHEN HE WAS VICE PRESIDENT WAS INCREDIBLY DISEPTICAL OF THE SOCIAL -- DISEPTICAL OF THE SOCIAL MEETA GIANT AND MARK ZUCKERBERG PERSONALLY. WE LEARNED HE CALLED HIM LITTLE TWERP AND OTHER MORE SWOLLORFUL TERMS. AND -- COLORFUL TERMS THIS.
GAME TO THE HEAD DURING THE COVID-19 PANDEMIC AS MISINFORMATION SPREAD. THERE WAS THAT NOTABLE MOMENT WHERE JOE BIDEN, PRESIDENT JOE BIDEN, CALLED META WAS KILLING PEOPLE AS IT WAS SPREADING MISINFORMATION ONLINE. ED: QUICK, HOW IS MORALE INSIDE META? YOU LEARN QUICKLY IN SILICON VALLEY, A COMPANY’S FIGURE HEAD DOESN’T REFLECT THE WORKFORCE. RILEY: META IS FILLED WITH TENS OF THOUSANDS OF EMPLOYEES. A WIDE RANGE A LOT OF EMPLOYEES ARE REALLY DISCONTENT WITH THIS APPROACH. THEY ARE HOLDING SECRET BOOK CLUBS TO TALK ABOUT SARAH’S MEMBER WARRIOR "CARELESS PEOPLE." THEY ARE HAVING WELLNESS CHECKS.
MANY FOLKS HAVE BELIEVED THAT META HAD DONE LAYOFFS IN AN EFFORT TO QUELL DISSENT. THE COMPANY DENIES THAT CLAIM. IT’S SOUR INSIDE THE COMPANY. CAROLINE: VERY LONG PIECE. I URGE YOU TO READ IT. COMING UP, THE SATELLITE MANUFACTURING, WHY FOUNDERS FUND IS DOUBLING DOWN. THIS IS BLOOMBERG "TECHNOLOGY."
CAROLINE: WELCOME BACK TO BLOOMBERG "TECHNOLOGY." ED: I’D ED LUDLOW IN SAN FRANCISCO. SOME MOMENTUM. CAROLINE: WHEN IT COMES TO STOCKS. CHECK OUT WHAT’S HAPPENING ON THE NASDAQ. MID MAY, WE ARE HIGH UP BY THE TUNE OF 2%.
ONLY FOUR STOCKS OF THIS MAJOR BENCHMARK ARE IN THE RED. WHAT’S THE MOOD ABOUT? MACROISM, CONYOU SEUMER SENTIMENT LOOKING BETTER, BOND MARKET LOOKING CALMER. NVIDIA’S NUMBERS AS SOON AS TOMORROW. I’M GOING -- 109,000.
WE NEED THOSE ALL TIME HIGHS. NOTABLE WE HAVEN’T FOLLOWED STOCKS HIGHER. HAVE A LOOK WHAT’S IN RESPONSE TO A BITCOIN PLAY. EVERYONE WANTS TO BE MICHAEL.
THE STRATEGY BEING BORNE OUT THE D.J.T., TRUMP MEDIA, THEY’LL BE SELLING STOCK TO BUY BITCOIN. IT SENDS IT LOWER BY 11%. I’M LOOKING AT P.D.D. THE NASDAQ 100. THE OWNER OF TEMU. GEOPOLITICS, TRADE ANXIETY PROFIT TUMBLING 47%.
NOTABLY NO FUTURE LOOKS PRETTY THEY HAVE TO INVEST TO CHANGE THE BUSINESS MODEL. ED: GO FROM PUBLIC MARKETS TO PRIVATE MARKETS. HEAD TO SPACE. BULGARIAN SATELLITE EVERYTHING ENDURO HAS ANNOUNCED IT RAISED 43 MILLION EUROS, $49 MILLION. FOUNDERS FUND DELIGHTED TO BRING IN THE C.E.O. WRITER RAYCHO AND PARTNER WHO JOIN US FROM SOFIA, BULL GIRRA’S CAPITAL. I’LL -- BULGARIA’S CAPITAL. I’LL START WITH YOU, YOU MANAGED TO CHANGE THE WAY SATELLITES ARE MANUFACTURED AND HOW PROFITABLE THAT BUSINESS IS.
WHY DO YOU NEED TO RAISE THIS MONEY? WHAT ARE YOU GOING TO DO TO EXPAND YOUR PRODUCTION OF THE NEXT GEN SATELLITES? >> FIRST OF ALL WE BELIEVE THERE WILL BE A PART-TIME SHIFT IN THE WAY HUMANITY BUILDS THE NEXT FUTURE INFRASTRUCTURES IN SPACE. WHICH IN SIMPLE TERMS MEANS HOW DO WE PUT MULTIPLE LIKE NAVIGATION SYSTEMS, CAMERAS AS FAST AS POSSIBLE TO ORBIT. HOW DO WE OBJECTIVELY LOWER THE DATA TO COST AS LITTLE AS $1 PER GIGABYTE OF ANY SPACE DATA. THE WAY WE APPROACH IT IS TRYING OUR BEST TO BUILD A SATELLITE THAT WAS FROM DAY ONE DESIGNED FOR MANUFACTURING.
WHICH IS VERY UNUSUAL. TRADITIONALLY VERY ARDUOUS INDUSTRY WHERE THEY BUILD SOLUTIONS FOR INDIVIDUAL MISSIONS. WE BELIEVE THAT’S THE WAY TO GO. WE HAVE OUR EXPERIENCE IN THE REGION. DESIGNS, MEDICAL, ROBOTIC INDUSTRIES.
WE HAVE TRIED OUR BEST TO EMBED THOSE INTO THE SATELLITE DESIGN. ED: YOU ARE BULGARIAN. I KNOW THIS IS A BIG MOMENT FOR YOU AND IMPORTANT TO YOU. YOU SEE ENDURO AS BEING TO BULGARIA WHAT TSMC TO TAIWAN. EXPLAIN THAT. >> YEAH. BEING A NATIVE OF THE COUNTRY. I HAD A PREDISPOSITION TO CERTIFY AN INVESTMENT HERE FOR A LONG TIME BUT ONLY IF IT MET THE STANDARD OF THE FOUNDERS FUND. WE HAVE BEEN A BIG INVESTORS IN
A TON OF THE LEADING AEROSPACE COMPANIES. EVERYTHING FROM BEHEMOTH LIKE SPACEX. BUT ALSO NEXT GENERATION COMPANIES COMING UP. IMPULSE LED BY TOM MUELLER, AUTOMATED C.N.C. MANUFACTURING. ONE OF THE PIECES WE WANTED TO FOCUS ON WAS SOMEBODY THAT WAS FOCUSED ON MASS MANUFACTURING OF SATELLITES.
BUT IN A WAY MORE CLOSELY RESEMBLES, YOU WERE TALKING ABOUT APPLE EARLIER, SOMETHING THAT LOOKS MORE LIKE CONSUMER ELECTRONICS MANUFACTURING LINE THAN HOW THE VAST MAJORITY OF SATELLITES ARE ASSEMBLED TODAY VERY TAILORED, ONE OFF, SUPER CUSTOM MADE F YOU LOOK AT THE AVERAGE AMERICAN SATELLITE IN TERMS OF ITS OVERLAP WITH THE AUTO OR CONSUMER INDUSTRIES, I HAVE GIVEN UP ON THE THESIS TO INVEST ON SOMEBODY IN THAT CATEGORY. I WANT THE DELL FOR SATELLITES. I HAVE BEEN CATCHING UP WITH RAY CHAO AND ENDURO FOR YEARS. HE HAD VERY LITTLE FUNDING TO GET-GOING. HAD HE TO USE SOME OF THESE MORE CONSUMER ELECTRONICS, TO BUILD UP HIS SATELLITES AND MADE THIS BIGGER AND PITTSBURGH. REVENUES GOT BIGGER AND BIGGER IN Q-4 OF LAST YEAR, EVEN THOUGH I THIS THIS NEGATIVE BIAS, IF I TELL PETER THEY HIRED A BULGARIAN, HE’S GOING TO KICK ME OUT OF THE ROOM. YOU ARE CRAZY. AT SOME POINT THE NUMBERS,
QUALITY OF THE TECHNOLOGY, THE CULTURE OF THE TEAM, THE FACT THAT THEY HAVE INVESTED INTO THE LOCAL UNIVERSITY PROGRAMS TO START TO TRAIN THEIR OWN NEXT GENERATION TALENT, THAT’S WHAT I MEAN WHEN I TALK ABOUT THE TSMC OF BULGARIA. THIS NATIONAL JEWEL AND VERY TECHNOLOGICALLY FORWARD SECTOR. BUT DEEPLY INTEGRATED IN SOCIETY IF YOU ARE A 15-YEAR-OLD BULGARIAN PHYSICIST OR COMPUTER ENGINEER OR MECHANICAL ENGINEER ALL YOU CAN DREAM OFF IS THE DAY YOU GRADUATE AND WOK FOR RAYCHO. CAROLINE: WE KNOW THE REVENUES ARE CLIMBING.
HOW CAN YOU BE LIKE APPLE IN TERMS OF PROFITABILITY, MARGIN. HOW PROFITABLE ARE YOU? >> THERE IS A LOT OF COMPONENTS IN ACHIEVING PROFITABILITY. I’M HAPPY TO SAY WE WENT ON THE MARKET SELLING SATELLITES IN EARLY 2018. WE BECAME PROFITABLE THAT SAME YEAR. THAT USUALLY NEVER HAPPENS FOR A SPACE COMPANY. USUALLY THEY NEED BIGGER THE
BEST. EVER SINCE OUR BUSINESS GROWS BETWEEN TWO AND THREE TIMES IN TERMS OF REVENUE. EVERY SINGLE LINE OF OUR BUSINESS TODAY HAS THE ONCH GROSS MARGIN BETWEEN 75% AND 77%. I THINK WE ARE PRETTY CLOSE TO THOSE TYPE OF MET RICKS. AGAIN WE ARE ONLY FOCUSED ON THE CHALLENGES OF BRINGING THE INDUSTRY TO A COMPLETELY NEW LEVEL AND SKILL. I BELIEVE AT THE END OF THE DAY
THE AUTHENTICITY OF THE PRODUCTS AND EXECUTION OF THE TEAM LEADS TO IMMENSE MARKET OPPORTUNITY. THIS IS WHAT WE ARE HOPING TO ACHIEVE WITH OUR NEW PARTNERS. CAROLINE: THOSE PARTNERS, DEL DELIAN, SPACE X., VADO, HOW MUCH ARE YOU GOING TO TURN TO ENDURO SAT FOR YOUR EQUIPMENT? >> WE ARE LOOKING AT THE NEXT GENERATION VEHICLES ACROSS THE PORTFOLIO. IF YOU JUST LOOK AT THE ECONOMICS OF WHAT RAYCHO IS OFFERING, IT’S VASTLY DIFFERENTIATED RELATIVE TO ANYTHING YOU CAN FIND EITHER IN THE EUROPEAN OR AMERICAN MARKET F YOU THINK ABOUT THE TRADITIONAL AEROSPACE SUPPLIERS, AIRBUS, RAYTHEON, LOCKHEED MARTIN, ALL OF THEIR COMPONENTS ARE THINGS BASED OFF 1970 TECHNOLOGIES THAT HAVE BEEN EVER SO SLOWLY ITERATED ON.
THERE IS BENEFIT TO THAT, BUT CAN’T TAKE THAT MONUMENTAL LEAP FORWARD. I WON’T COMMENT ON THE SPECIFIC COMPANIES. I CAN ALREADY SAY PART OF HOW I GOT ALERTED WE HAD A SIGNIFICANT A FOUNDERS FUND PORTFOLIO AND BROADER SILICON VALLEY FUNDED DEFENSE TECH AND SPACE START-UPS ALREADY AS CUSTOMERS OF HIS.
AS I ANALYZE EVERYONE THERE WAS AN ARMS DEALER, DELL FOR SATELLITES ALREADY. IT HAPPENED TO BE THIS BULGARIAN COMPANY FOR A LONG TIME I WASN’T SURE I COULD TAKE SERIOUSLY GIVEN I KNEW HI THIS PREDISPOSITION TOWARDS BULGARIA. THE FACT CAN YOU BUILD A SPACE COMPANY PROFITABLY, GROWING QUICKLY, AT 70 PLUS PERCENT MARGINS. THOSE ARE THE THINGS YOU SEE IN APPLE.
IF YOU LOOK AT THE AVERAGE AMERICAN AEROSPACE OR DEFENSE COMPANY, BEST CASE 20%, 30% MARGINS. BURNING HUNDREDS OF BILLIONS OF DOLLARS. ALL THESE THINGS NEVER GET TO THIS LEVEL OF MARGIN.
WHEN YOU LOOK AT EVERYTHING FROM PLANET LABS AND OTHERS, ALL THESE COMPANIES THAT OPERATE IN THE SATELLITE WORLD, THEY NEVER TRADE ABOVE THREE X REVENUES THERE IS NO GROWTH AND PROFITABILITY. YOU LOOK AT THE BUSINESS AND SEE THESE METRICS, THEY LOOK LIKE TRADITIONAL SILICON VALLEY COMPANY. ED: LET ME ASK YOU THIS TO FIRN. WHAT’S YOUR STRATEGY FOR MANUFACTURING IN THE UNITED STATES IN THE FUTURE? >> I’M PROUD TO SAY THAT MAJORITY OF OUR BUSINESS IS ALREADY IN U.S. WE ARE HEAVILY INVOLVED IN SUPPORTING THE LOCAL ECOSYSTEM. WE HAVE QUITE ADV ADVANCE IN
DID HE EVER. WE ARE OPERATING SATELLITES FOR OUR U.S. COM CUSTOMERS BASE FROM U.S. THERE IS NO DIFFERENCE BETWEEN BULGARIA AND EUROPE AND EXPAND FURTHER IN THE U.S. TO GIVE YOU CONTEXT, WE HAVE
INVESTED SIGNIFICANT AMOUNTS, MILLIONS, JUST STARTING LAST YEAR, WAY BEFORE THERE WAS THIS TENSION OF STRIFE BETWEEN THE CONTINENTS. THIS TENSION WILL BE VERY HEALTHY FOR OUR BUSINESS. WE NEED TO LEARN HOW TO DO LOCAL STUFF BETTER THAN ANYONE ELSE.
I THINK WE’LL WEE ALSO BRING THE KNOWLEDGE AND KNOW HOW AND LITTLE BIT OF INNOVATION THAT WILL BE HEALTHY FOR THE U.S. MARKET IN GENERAL. CAROLINE: WE APPRECIATE YOUR TIME. THANK YOU BOTH FROM SOFIA, BULGARIA A NEW COMPANY STARTED BY THE FOUNDER OF QUANTUM COMPUTING FIRM, RIGETTI. NEXT. THIS IS BLOOMBERG.
ED: RIGETTI MAY BE FAMILIAR TO THOSE IN THE QUANTUM COMPUTING WORLD. NOW THEY ARE LAUNCHING A NEW COMPANY CALLED SIGEL TREE. IT AIMS TO USE QUANTUM TO ADDRESS COSTS. THEY JOIN US NOW. I THINK WE’LL GET TO THE BACK STORY OF YOUR INVOLVEMENT IN THE EARLIER DAYS OF THIS INDUSTRY. BUT WHAT IS THE OBJECTIVE OF
THE NEW COMPANY? WHAT IS DIFFERENT ABOUT THE NEW COMPANY’S TECHNOLOGY? >> GREAT TO BE HERE TODAY. SINGLETRY IS BUILDING QUANTUM ACCELERATED A.I. SERVERS TO EXPONENTIALLY SPEED UP TRAINING AND INFERENCE FOR THESE LARGE MODELS. AS YOU HEARD ABOUT THERE ARE GROWING ENERGY REQUIREMENTS, POWER REQUIREMENTS THAT ARE CHALLENGING TO MEET AND GROWING COST FORCE TRAINING NEW MODELS. ULTIMATELY QUANTUM CAN PROVIDE
A SOLUTION TO THAT WITH THESE EXPONENTIAL SPEEDUPS. THE LAST FEW YEARS HAVE BEEN NEW ALGORITHMS YISMS DEVELOPED THAT CAN SPEED UP. THAT ARE CRITICAL FOR TRAINING AND INFERENCE IN LARGE MODELS. AND BRINGING ABOUT THE
ACCESSIBILITY, AFFORDABILITY, AND SUSTAINABILITY OF TRUE WIDESPREAD ADOPTION OF A.I. ED: WE WERE RECENTLY AT NVIDIA QUANTUM DAY. WE DID A SPECIAL SHOW WHERE MANY OF THE LEADERS IN THIS FIELD JOINED US.
WHAT STRUCK ME IS THEY SAT THERE ON STAGE WITH N VIDEO C.E.O. IS HOW MANY COMPANIES ARE WORKING ON THIS. HOW MANY PUBLICLY TRADED COMPANIES. I GIVE YOU THAT PREAMBLE TO ASK WHY DO WE NEED A NEW COMPANY FOCUSED ON THIS TASK? WITH THROWING BEING DEVELOPED BY THE OTHERS INCLUDING THE NAMESAKE COMPANY YOU FOUNDED NOT CRACK IT THEMSELVES. >> GREAT QUESTION. I THOUGHT ABOUT THAT. THAT LED ME TO STARTING THE COMPANY WITH MY CO-FOUNDER WHO WORKS WITH ME AND HELPED ME. ULTIMATELY ALL THESE COMPANIES
THAT ARE OUT THERE TODAY ARE MAKING TREMENDOUS PROGRESS. THERE’S BEEN TREMENDOUS ADVANCEMENT IN THE LAST THREE YEARS ALONE. NEUTRAL ATOMS HAVE ADVANCED AS MUCH OR MORE. ULTIMATELY WHAT WE SEE IS AN OPPORTUNITY TO COMBINE THESE DIFFERENT MODALITIES WITHIN A SINGLE ARCHITECTURE. WE THOUGHT ABOUT -- ON THE FLIP SIDE, TO TAKE LASER FOCUSED ON ACCELERATING THESE COMPUTE CHALLENGES IN A.I. OVER THE PAST TWO OR THREE
YEARS A.I. HAS BECOME SO FEULS AND WIDELY USED IT’S BASICALLY CREATED A NEW ABSTRACTION FOR CREATING HARDWARE. WITH THAT HARDWARE NEEDS TO EVOLVE AND CHANGE. EVEN THE PUBLIC ONES AND THE
ONES I BUILT, ALL THE ROAD MAPS THEIR PLANS FOR FIVE, 10 YEARS OUT WERE LOCKED IN BEFORE A.I. BECAME THE DOMINANT COMPUTE PARADIGM. TODAY WE SEE AN OPPORTUNITY TO BRING IN A NEW ARCHITECTURE SPECIFICALLY FOCUS ON ACCELERATING TRAINING. AND COMBINING DIFFERENT CUE BIT -- CUBIT MODALITIES. WE ARE BRINGING MULTIPLE TYPES
TOGETHER BUILT FOR A.I. CAROLINE: DO YOU NEED MORE MONEY TO DO THIS? YOU ARE BACKED BY SOME. I’M SURE YOU HAVE MONEY MADE ON THE PREVIOUS K HOW MUCH YOU NEED OUTSIDE INVESTMENT? >> THIS IS THE TECHNOLOGY IN THE END. THE SIZE OF THIS MARKET IF YOU CAN CRACK THIS, WHEN QUANTUM COMES ONLINE AND IMPACTS A.I. TRAINING AND INFERENCE COSTS IT WILL BE $1 TRILLION MARKET. WE SEE THIS AS COMPLETELY
INEVITABLE. ULTIMATELY NATURE ITSELF RUNS ON QUANTUM MECHANICS IN THE INFORMATION RICH ENVIRONMENTS IN THE LOWEST LEVEL OF NATURE WE QUANTUM MECHANICS TO PROCESS THAT INFORMATION. AND IT’S A MORE EFFICIENT WAY OF COMPUTING LONG TERM. WE’LL USE THIS IN CONJUNCTION
WITH G.P.U.’S AND CLASSICAL INFRASTRUCTURE. ENORMOUS OPPORTUNITY. WE BELIEVE THAT WHEN OUR MULTIMODALLITY QUANTUM ARCHITECTURE COMES ONLINE IT’S NOT -- OTHER SINGLE MODALITY ARCHITECTURES AREN’T GOING TO BE ABLE TO COMPETE WITH IT. WE’LL NEED TO RAISE ADDITIONAL CAPITAL GOING FORWARD. THE COMPANY’S JUST GETTING
GOING. WE ARE LAUNCHING PUBLICLY ANNOUNCING THE COMPANY TODAY. WE ARE IN THE EARLY STAGES. WE ARE REALLY EXCITED. OUR TEAM IS GROWING VERY FAST. WE ARE EXCITED WITH THE NEXT FEW YEARS. CAROLINE: TO BE PERSONAL ABOUT IT, HOW HAS RIGETTI RESPONDED? IT BEARS YOUR NAME.
I’M SURE IT’S A HELP IN MANY WAYS FOR YOU BECAUSE YOUR NAME IS LEGENDARY WITHIN QUANTUM. HOW DID THEY RESPOND WHEN THEY ARE TEAMING UP WITH A COMPANY IN TAIWAN, A SERVER MAKER. >> ULTIMATELY YOU NEED TO ASK THE TEAM THERE. I THINK WITH RESPECT TO THE PROGRESS TOWARDS A.I., THESE ARE DEEP ARCHITECTURAL CHOICES THAT NEED TO BE MADE EARLY ON IN ESTABLISHING YOUR HARDWARE ROAD MAP. AND YOUR COMPANY VISION AND PLAN.
YOU NEED THE D.N.A., EARLY OWN IN YOUR ORGANIZATION. ONCE THOSE THINGS GET LOCKED IN, THERE ARE FORCE THAT IS MAKE IT VERY CHALLENGING TO -- FORCES THAT MAKE IT VERY CHALLENGING TO ADJUST THAT VISION, ROAD MAPS, BECAUSE IT RELATES TO YOUR PARTNERSHIPS, TALENT BASE, HOW YOU THINK AND TALK ABOUT THE TECHNOLOGY INTERNALLY AND YOUR CULTURE. ULTIMATELY WE THINK STARTED FROM THE VERY GET-GO FOCUSED ON A.I. AS THE SINGLE KILLER APPLICATION FOR QUANTUM TECHNOLOGIES. GETTING THE TEAM EARLY ON AND DEVELOPING AN ARCHITECTURE NEEDED TO REACH THE COMBINATION OF COST, SPEED, AND SCALE TO UNLOCK THESE APPLICATIONS IS THE WINNING APPROACH. CAROLINE: CHAD, GREAT SPEAKING WITH YOU. NEW COMPANY, SINGLETRY. WE APPRECIATE YOU JOINING.
E.Y.D. SHARES THEY EXTEND THEIR LOSSES AFTER ANNOUNCING PRICE CUTS. NEXT. KROIB SHARES OF CHINA’S B.Y.T. THEY EXPENDED LOSSES FOR THE SECOND DAY IN THE HONG KONG TRADING. THEY ARE DOWN. THIS AFTER THE ELECTRIC CARMAKER ANNOUNCED SWEEPING PRICE CUTS UP TO 34% ON SOME OF THE VEHICLES. COMPETITION AT HOME INTENSIFIES. DAVID JOINS US NOW.
HOUR FIERCE IS THE PRICE COMPETITION IN CHINA, DAVID? DAVID: THE ONE MARKET WHERE YOU HAVE PRICE COMPETITION IS IN THE CHINESE MARKET. THE DOMESTIC PLAYERS ARE -- THEY SO DOMINATE THEIR HOME MARKET. THERE ARE VERY FEW IMPORTS INTO THE MARKET TARIFFS AREN’T WREAKING HAVOC ON IT THE WAY IT IS IN OTHER PARTS OF THE WORLD. YOU DON’T HAVE COMPANIES LOOKING TO RAISE PRICES TO DEAL WITH TARIFFS.
THEY ARE DOMESTIC AND THEY GET THEIR PARTS DOMESTICALLY. THEY DON’T HAVE THAT PRESSURE. THE PRESSURE IS STILL THERE AS HAS BEEN FOR A FEW YEARS TO LOWER PRICES AND GAIN MARKET SHARE. PROBABLY TRY TO GET SOME OF THE FOREIGN PLAYERS OUT OF THE MARKET. THAT’S BEEN GOING ON FOR A LONG TIME. THAT’S WHY GENERAL MOTORS AND AT THE WHAT ARE STRUGGLING.
YOU HAVE COMPANIES WHO HAVE -- AND TESLA WHO ARE STRUGGLELING. YOU HAVE COMPANIES WHO -- STRUGGLING. AND YOU HAVE OTHER COMPANIES SLASHING TO GAIRN MARKET SHARE. ED: YOU MENTIONED TESLA ANTEDATA OVER THE HOLIDAY WEEKEND -- AND THE DATA OVER THE HOLIDAY WEEKEND, TESLA IS SUFFERING IN EUROPE BECAUSE OF THE POLITICAL BACKLASH OF ELON MUSK. B.Y.D. DOING WELL THERE? >> THE CHINESE AUTOMAKERS HAVE DONE VERY WELL.
THEY GAINED GROUND THERE. DAVID: TESLA HAS A LOT OF PROBLEMS IN THAT MARKET. EUROPEANS, PARTICULARLY WITH THE NEW ROUND OF TARIFFS, ELON MUSK BEING CLOSE TO TRUMP, THAT’S GOING TO CONTINUE TO HURT THE BRAND. IT’S GOING TO CONTINUE TO PUT A SHADOW OVER TESLA IN THE MARKET.
THEY HAVE A LOT OF E.V.’S. CHINESE COMPETITION IS THERE EVEN THOUGH THAT’S GETTING HIT WITH TARIFFS. IT’S NOT GOOD FOR TESLA IN THAT MARKET. I THINK ONLY FRESH PRODUCTS WOULD HELP THEM OUT. EVEN IF ELON WERE TO SAY TOMORROW HE’S QUITTING DOGE AND GOING BACK TO RUNNING TESLA, THAT DOESN’T CHANGE WHAT’S HAPPENED WITH HIS BRAND. IN TERMS OF THE POLITICS.
WITH SOME AMERICAN BUYERS AND WITH A BUNCH OF EUROPEAN BUYERS. THAT TROUBLE WILL STICK AROUND FOR A WHILE. ED: BLOOMBERG DAVID WELCH FROM DETROIT. STICKING WITH ELON MUSK. HE’S SET TO ADDRESS HIS SPACEX WORKFORCE TODAY. AMONG THE DISCUSSIONS WILL BE
THE LONG-TERM GOAL FOR THE COMPANY SENDING HUMAN TO MARS. ALL THIS AHEAD OF A SCHEDULE TEST FLIGHT OF THE COMPANY’S STAR SHIP ROCKET 6:30 P.M. LOCAL TIME. LAUREN IS HERE. SET THE SCENE. WE USED TO ATTEND THESE BIG
PICTURE STAR BASE MOMENTS IN PERSON. WHAT DO WE EXPECT HIM TO TALK ABOUT? >> I WOULD SAY I WOULD EXPECT PROBABLY SOME OF THE SAME HE NORMALLY DOES. HE GIVES THESE STAR SHIP AND MARS UPDATES ABOUT ONCE A YEAR. LAUREN:
EVERY TIME HE GIFTS ONE OF THESE DISCUSSIONS HE GIVES A FEW TWEAKS. NEW TIMELINES, NEW CHANGES, UPGRADES TO THE HARDWARE. FOR STAR SHIP OR THE PLAN. WE’LL BE LISTENING FOR. SO SAME OLD PHRASES. PRESERVING THE LIGHT OF CONSCIOUSNESS IS A BIG ONE. ALSO LOOKING FORWARD TO SOME MAYBE UPDATES ON TIMELINES AND WHAT WE MIGHT EXPECT IN THE YEAR AHEAD FOR CERTAIN MILESTONES THEY NEED TO ACHIEVE. CAROLINE: BIG DAY FOR STAR SHIP.
HOW ARE WE BRACING OUR SEVERS. THE LAST TWO TESTS ENDED IN AN EXPLOSION. LAUREN: THE STAKES FOR THIS FLIGHT ARE PARTICULARLY HIGH BECAUSE OF THOSE EXPLOSIONS. THE LAST TWO FLIGHTS DID NOT END WELL. BOTH DID END IN DEBRIS STREAMING OVER THE SKY OVER THE GULF. HOPEFULLY THEY HAVE FIXED THE PROBLEMS FROM THOSE TWO FLIGHTS.
SPACEX DID PROVIDE AN UPDATE SAYING THEY KNOW THE CAUSES FOR BOTH OF THOSE EXPLOSIONS. THAT THEY WERE ACTUALLY DISTINCTLY DIFFERENT IN TERMS OF WHAT CAUSED THEM. AND THAT THEY HAVE PROVIDED THE APPROPRIATE DESIGN AND HARDWARE FIXES. WE’LL SEE IF THAT HOLDS. I THINK WE’LL ALL BE HOLDING OUR BREATH AT ABOUT THE EIGHT MINUTE MARK.
WHICH IS WHEN BOTH THOSE FLIGHTS TERMINATED. ED: WE HAVE 20 SECONDS. REMIND US THE ULTIMATE GOAL WHICH IS GETTING HUMAN TO MARS AND HOW STARSHIP FITS. LAUREN: STARSHIP IS THE PRIMARY VEHICLE FOR WHICH SPACEX INTENDS TO SEND HUMANS TO MARS. HAS A CONTRACT WITH NASA TO LAND HUMANS ON THE MOON WITH THE VEHICLE. AND EVENTUALLY STARSHIP WILL BE THE PRIMARY VEHICLE THAT SPACEX USES TO LAUNCH EVERYTHING IN THE FUTURE.
A LOT IS RIDING ON THIS VEHICLE. CAROLINE: A BUSY DAY. WE APPRECIATE IT. THAT DOES IT FOR THIS EDITION OF BLOOMBERG "TECHNOLOGY." ED: TUNE IN TOMORROW FOR A SPECIAL EDITION OF BLOOMBERG "TECHNOLOGY" LOOKING AT NVIDIA’S EARNINGS. 6:30 P.M. EASTERN TIME.
3:30 P.M. PACIFIC. BIG BANKS THAT TUNES INTO THE PODCAST. LISTEN. YOU KNOW WHERE TO FIND IT ON APPLE, SPOTIFY
2025-05-29 12:47
