Should Elon Musk Resign? | Bloomberg Technology
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>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: AND CAROLINE HYDE. ED: I'M ED LUDLOW. THIS IS BLOOMBERG TECHNOLOGY YOU. CAROLINE: FALLOUT CONTINUES FROM TESCH FOR ELON MUSK AFTER AN ANTI-SEMITIC POST ON ITS PLATFORM.
WE DISCUSS WHAT IT MEANS FOR HIS BUSINESSES. ED: AND A RETURN TO A BAG AS CHINESE PRESIDENT XI JINPING FINISHES HIS FIRST VISIT TO THE U.S. IN 16 YEARS. WHAT DOES IT MEAN FOR U.S. CURBS ON TECHNOLOGY TO CHINA. CAROLINE: A MID-NOVEMBER'S $2 TRILLION RISK RALLY, CAN THAT CONTINUE? THAT AND MORE AHEAD.
THE MARKETS ARE TRADING TODAY. THE $2 TRILLION MARKET RALLY WE SAW THROUGH NOVEMBER IS QUELLING ON THE DAY SLIGHTLY. THE NASDAQ OFF BY .1%. 11 POINTS LOWER AS WE HAVE A BIG OPTIONS DAY TODAY ADDING VOLATILITY.
THE VIX MANAGING TO BE AT A 14 OR 13 HAND ARE THE MOMENT. PEOPLE ARE ENVISAGING THE FEDERAL RESERVE WILL PULL BACK ON ITS RIGHT FOCUS AND COULD CUT IN THE SECOND HALF OF 2020 FOR YOUR. SOME ECONOMIC DATA THIS WEEK A SOFTER BE AT THE BLOOMBERG DOLLAR INDEX RAISING ALL 2023 RALLIES OFF BY ANOTHER .3 PERCENT. THE WORLD OF CRYPTO. BITCOIN VIS-A-VIS THE U.S. DOLLAR ON THE LOWER SIDE
DESPITE WEAKNESS IN THE U.S. DOLLAR OVER FIVE TRADING DAYS OFF BY ABOUT 3% RELATIVELY LOW VOLATILITY FOR THEIR VERY VOLATILE CLASS. 35,971 CURRENTLY. ED: THE MICRO FOCUS IS ON TESLA UP WENT FIVE PERCENTAGE POINTS. AT THE HIGH OF THE SESSION OF 1.2%. EARLIER IN THE MORNING AT THE
LOWER THE SESSION DOWN 3%. THERE HAS BEEN DOWNWARD PRESSURE ON TESLA STOCK IN THE LAST 24 HOURS ACROSS TWO SESSIONS. AFTER ELON MUSK MADE A POST ON X THE PLATFORM FORMALLY KNOWN AS TWITTER WHICH IS BEING INTERPRETED AS ENDORSING ANOTHER USERS ANTI-SEMITIC POST. AROUND THE WORLD THERE
HAS BEEN CASCADING REACTION FROM POLICYMAKERS AND COMPANIES AND TESLA SHAREHOLDER SPECIFICALLY TWO OF WHICH WE WILL DISCUSS IN A MOMENT. RIGHT NOW TESLA IS UP .5% BUT IT HAD BEEN DOWN 3% FOR A SECOND DAY EARLIER ENDED THE SESSION. CAROLINE: THERE HAVE BEEN TESLA INVESTORS CRITICIZING THE POST. OF COURSE, ONE THAT IS SEEMINGLY
ENDORSING ANTI-SEMITIC VIEWS. MORE ADVERTISERS ARE FLEEING HIS SOCIAL MEDIA PLATFORM. THE EUROPEAN COMMISSION JOINED IBM IN ANNOUNCING IT. ADVERTISING ON X AFTER MUSK RESPONDED TO A POST THAT SAID THE JEWISH PEOPLE HOLD A DIALECTICAL HATRED OF WHITE PEOPLE SAYING IT WAS THE TRUTH. ED: THE WHITE HOUSE IS ADDRESSING THE COMMENT SAYING " WE CONDEMN THIS ABHORRENT PROMOTION OF ANTI-SEMITIC AND RACIST HATE IN THE STRONGEST TERMS WHICH RUN AGAINST OUR CORE VALUES AS AMERICANS." JOINING US NOW FROM BLOOMBERG
-- WASHINGTON BLOOMBERG SAID KAYLA GARDNER. GIVE US THE LATEST. >> THE WHITE HOUSE HAS BEEN ADAMANT ABOUT CONDEMNING ANTI-SEMITISM PRE-MUCH EVERY SENSE OF PRESIDENT TOOK OFFICE. THEY HAVE A NATIONAL STRATEGY TO COUNTER ANTI-SEMITISM AND IT HAS BEEN A MAJOR FOCUS OF THE SECOND GENTLEMAN, THE FIRST JEWISH SPOUSE OF A VICE PRESIDENT. THIS COMES ON TOPS OF REBUKES
FROM THE EUROPEAN COMMISSION AND IBM WHICH ANNOUNCED THEY WOULD PULL ADVERTISING FROM THE PLATFORM. I THINK THE BEST WAY TO THINK ABOUT THIS IS IT IS A BROADER AND MORE COMPLICATED RELATIONSHIP BETWEEN THE PRESIDENT AND ELON MUSK. ELON MUSK WON'T SUPPORT RIGHT AND IN 2024 AND WAS UNHAPPY WHEN TESLA WAS NOT INVITED TO AN EVENT FOR EV COMPANIES EARLIER THIS YEAR. THAT'S SOMETHING TO THINK ABOUT HERE AND THE GOVERNMENT ALSO HAS CONTRACTS WITH SPACEX. IT APPLAUDED THE ELON MUSK DECISION TO OPEN CHARGING INFRASTRUCTURE TO OTHER COMPANIES. BUT I THINK IT WAS THE TIMING
OF THE COMMENTS AMID THE ISRAEL HAMAS WAR THAT CAUSED THE WHITE HOUSE ULTIMATELY TO PUT OUT THE STATEMENTS BECAUSE THERE HAVE BEEN SUCH AN INCREASE IN INCIDENCE AGAINST THE JEWISH COMMUNITY. THEY FELT IT WAS THE TIME TO MAKE SUCH A CONDEMNATION. CAROLINE: AKAYLA GARDNER THANK YOU FOR IMPORTANT CONTEXT FROM WASHINGTON FOR THE FOUNDER AND CEO OF MIA IMPACT CAPITAL, A SOCIAL IMPACT FUND THAT OWNS ABOUT 200 $80,000 OF TESLA STOCK HAS WAGED PRESSURE CAMPAIGNS AGAINST THE COMPANY FOR YEARS INCLUDING VIA SHAREHOLDER RESOLUTIONS. THEY PUT OUT A RESPONSE TO MUSK'S COMMENTS SAYING YOU ARE APPALLED BY ELON MUSK'S RECENT COMMENTS ON X. TALK US THROUGH WHAT YOU
ULTIMATELY THINK THE INVESTOR VIEWPOINT IS AT THE MOMENT? KRISTIN: IT'S SO COMP DATED. THANK YOU FOR HAVING ME TODAY. THIS IS THE MOST COMPLICATED CEO FOR INVESTORS TO DEAL WITH BUT IT DOES NOT NEED TO BE. WE ARE ALL COMPLETELY APPALLED BY HIS STATEMENT AND WE ARE CALLING ON THE BOARD TO TAKE ACTION. IF YOU THINK ABOUT WHAT TESLA'S ASSETS ARE, IT'S THE BRAND AND IT IS ALSO THE PEOPLE.
WE COUNT ON TESLA TO BE INNOVATIVE AND WE NEED THEM TO BE ABLE TO ATTRACT, RECRUIT HIRE AND RETAIN TOP TALENT. A STATEMENT LIKE THIS WILL INHIBIT ALL OF THOSE. ED: ELON MUSK HAS SAID IN THE PAST CONSISTENTLY HE IS ABSOLUTELY PRO-FREE SPEECH AND HE HAS SAID ON MORE THAN ONE OCCASION HE IS AGAINST ANTI-SEMITISM OF ANY KIND. KRISTIN: RIGHT. ED: YOU HOLD A SMALL VOLUME OF SHARES.
MY UNDERSTANDING IS THAT IS BASICALLY A FUNCTION OF BEING A SOCIAL IMPACT INVESTOR. PART OF OUR AUDIENCE WILL SAY, WHY IS KRISTEN ON? SHE HOLDS HARDLY ANY STOCK. KRISTIN: WE ACTUALLY HELD TESLA FOR MANY YEARS IN OUR CORE PORTFOLIOS. WE WERE REALLY BEHIND THE BATTERY PLANE AND IN THE INFRASTRUCTURE ACROSS MANY PRODUCTS AND SERVICES TESLA IS BRINGING FOR A JUST AND INNOVATIVE TRANSITION TO A SUSTAINABLE ECONOMY. THAT THESIS WAS REALLY IMPORTANT TO US AND WE DID HOLD TESLA IN CORE PORTFOLIOS. YET WHEN IT BECAME REALLY
APPARENT THERE WAS RACIAL DISCRIMINATION IN THE PLANTS AND ACROSS THE FIRM WE BECAME REALLY CAUTIOUS AND THERE WAS LOTS OF RISK FOR US AS INVESTORS AND WE PULLED OUT. WE DID RETAIN A SMALL AMOUNT OF SHARES SO WE COULD KEEP OUR RESPONSIBILITY AS INVESTORS TO ENGAGE WITH THE FIRM AND CALL THEM ON WHAT IN THEIR OWN CODE OF ETHICS SAYS TO DO THE RIGHT THING. ELON MUSK IS IN VIOLATION OF HIS OWN CODE OF ETHICS RIGHT NOW AND THAT IS WHY WE ARE CALLING ON THE BOARD. JONATHAN: -- ED: THANK YOU. I THINK THE EMPHASIS IS ON THE ABSOLUTE TRUTH STATEMENT WERE POST YOU MADE. HE MADE A FOLLOW-UP POST I WILL BRING UP ON THE SCREEN FOR OUR AUDIENCE. HE SAYS THE ADL UNJUSTLY
ATTACKS THE MAJORITY OF THE WEST DESPITE THE MAJORITY OF THE WEST SUPPORTING THE JEWISH PEOPLE AND ISRAEL BECAUSE THEY CANNOT, BY THEIR OWN TENANTS, CRITICIZE THE MINORITY GROUPS THAT ARE THERE PRIMARY THREATS. IT'S NOT RIGHT AND NEEDS TO STOP. WHAT DO YOU THINK ELON MUSK WAS TRYING TO SAY IN THAT POST? KRISTIN: ELON MUSK HAS BEEN ERRATIC AND VOLATILE WITH HIS SPEECH AND WE NEVER ACTUALLY KNOW WHAT HE IS TRYING TO DO. WHILE HE SAYS HE IS PROMOTING FREE SPEECH, HATEFUL SPEECH AND HATE SPEECH HAS NO PLACE ON X AND HAS NO PLACE COMING FROM A MAJOR CEO IN OUR NATION. KRISTIN: -- CAROLINE: IT IS INTERESTING THAT KEY FOUNDERS AND LEADERS HAVE CALLED ON PERHAPS ROLES IN OTHER COMPANIES ELON MUSK HOLDS. HE'S NOT JUST THE LEADER OF
TESLA. HE IS THE OWNER AND CTO OF X THE PLATFORM WHERE HE IS PUTTING OUT THESE VIEWS. ONE PARTICULAR KEY FOUNDERS SAID, IT'S YOUR TURN TO POTENTIALLY FIRE. THE CTO LINDA HAS BEEN TRYING
TO POINT OUT THAT THE X VIEW HAS BEEN CLEAR DISCRIMINATION FROM EVERYONE SHOULD STOP ACROSS THE BOARD. WHAT WOULD YOU WANT TO SEE FOR ELON MUSK WHETHER HE BE THE CTO, CHAIR OF ACTS, CTO OF TESLA, ROLES AND OTHER COMPANIES. ARE YOU CALLING FOR HIM TO STEP DOWN? KRISTIN: IT'S NOT MY PLACE TO CALL FOR THAT. I WANT TO SEE THE BOARD STEPPING IN TAKING ACTION. WHETHER IT MEANS TAKING HIS CELL PHONE AWAY, THAT IS ONE POSSIBILITY. BUT, WHAT WE REALLY NEED TO SEE HIS LEADERSHIP.
WE WANT TO SEE HIM NOT ONLY PROTECTING HIS BRAND, BUT GROWING IT IN A SUSTAINABLE INTENSIVE WAY. AGAIN, WE WANT TO SEE EMPLOYEES BOTH CURRENT AND FUTURE FEEL NOT ONLY REALLY COMFORTABLE, BUT EXCITED TO JOIN THIS AND BRING THEIR TOP TALENT AND EXPERT SKILLS. ON THE CONSUMER SIDE THERE ARE SO MANY CONSUMERS NOW SAYING THEY ARE GETTING RID OF THEIR TESLA AND NOT CONSIDERING PURCHASING ANYTHING NEW. WITH A PRIVATE BUSINESS MODEL AT TESLA AT ANY RATE, WE NEED TO SEE AS AN INVESTOR THE CEO IS REALLY LOOKING OUT FOR THE BUSINESS MODEL AND THE BRAND HAS SO MUCH TO DO. I WOULD PERSONALLY LIKE TO SEE THEM STEP DOWN BUT WHETHER IT IS POSSIBLE IS UP TO THE BOARD. CAROLINE:
IT'S INTERESTING BECAUSE THIS HAS NOT HAPPENED IN A VACUUM. WE HAVE SEEN HIM PUT OUT VERY CONTROVERSIAL FIRST -- POSTS BEFORE, SOME WHICH HE READ TRACK HURT -- RETRACTED SAYING HE IS PRO-FREE SPEECH BUT AGAINST ANTI-SEMITISM IN ALL TERMS. HE IS A BIT LIKE TO HAVE LAUNDRY AND NOTHING HAS STUCK AND TESLA IS UP 90% YEAR TO DATE IN SHARE PRICE. PEOPLE HAVE NOT BEEN SO FAR PULLING BACK ON TESLA PURCHASES.
IT'S MORE OF A CONSUMER WEAKNESS STORY THAT A PUSHBACK AGAINST ELON MUSK. CAN YOU REALLY DRIVE THE NARRATIVE TOGETHER? DO YOU THINK THIS IS THE MOMENT WE SEE A TIPPING POINT? KRISTIN: IT WILL BE INTERESTING TO SEE WHAT WE SEE IS A TIPPING POINT BECAUSE WITH A REGULAR COMPANY, AN ORDINARY COMPANY WITHOUT ONE OF THE RICHEST BILLIONAIRE CEOS, WE WOULD HAVE SEEN OTHER CONSEQUENCES MUCH EARLIER. ELON MUSK IS AN ICON IN THE U.S. AND ACROSS THE WORLD. HE SEEMS TO BE TREATED DIFFERENTLY BOTH BY HIS BOARD AND BY HIS FAN BASE. THAT IS PROBLEMATIC. I BELIEVE FOR THE KINDS OF COMPANIES AND THE KINDS OF CORPORATIONS WE WANT TO SEE GROW IN THE U.S.. ED:
TESLA HAS REBOUNDED TO POSITIVE TERRITORY HAVE AN BEEN DOWN AS MUCH AS 3% THIS SESSION OVER A TWO DAY BASIS. ON THE WEEK ON TRACK FOR A PRETTY SIZABLE GAIN. THERE ARE MANY THAT TOOK TO X IN SUPPORT OF ELON MUSK THAT ARE TESLA SHAREHOLDERS AND VEHICLE OWNERS.
ONE NAME SEEMS ALIGNED WITH YOU, ROSS GERBER AT TESLA INVESTOR THAT SAYS HIS CLIENTS ARE ASKING HIM TO UNWIND THEIR POSITIONS. THEY WILL NO LONGER BUY TESLA CARS. MY UNDERSTANDING IS YOU ARE DOING A NEW INITIATIVE WHERE YOU WRITE TO THE BOARD OF TESLA IN THE COMING WEEKS. HAVE YOU SPOKEN TO ROSS? WHO ARE YOU TRYING TO BRING IN ON THE INITIATIVE YOU ARE TAKING? KRISTIN: WE HAVE NOT SPOKEN TO ROSS YET. WE ARE PART OF A COALITION WITH WHISTLE STOP CAPITAL AND MANY OTHERS HAVE WRITTEN TO THE BOARD.
WE DID THIS EARLIER THIS YEAR. WE PUT OUT A STATEMENT AND A LETTER SPEAKING ABOUT LOTS OF DIFFERENT ISSUES THAT WE WANT TO SEE THE BOARD TAKE UP. SADLY WE HAVE NOT HAD RESPONSE. WE HAVE BEEN MEETING AS A GROUP MONTHLY TO FIGURE OUT HOW WE CAN BE ENGAGED TO SUPPORT THE COMPANY TO BE EXPRESSED. WE WILL RE-SEND THE LETTER WITH A NEW COVER LETTER WITH THE ADDITIONAL GRIEVANCES THAT HAVE OCCURRED SINCE WE SENT THE ADDITIONAL LETTER AND THAT WILL GO OUT IN THE NEXT COUPLE WEEKS. CAROLINE: KRISTIN HULL THANK YOU FOR ARTICULATING YOUR POINT OF VIEW FOR NIA IMPACT CAPITAL TODAY.
COMING UP, WE TURN TO THE MARKETS. TESLA STOCKS UP OVER THE LAST FIVE DAYS IN THE LAST MONTH. TECH STOCKS HAVE OUTPERFORMED UP TO TRILLION DOLLARS IN TERMS OF A RISK RALLY IN NOVEMBER. COULD IT BE AT A SLOWING POINT?
ED: SHARES OF APPLIED MATERIALS, THE BIGGEST U.S. CHIPMAKER DOWN 5.5 PERCENT, FIVE POINT 4%. REUTERS REPORTING A PROBE HAS BEEN OPENED BY THE U.S. INTO IT BREACHING THE U.S. TECHNOLOGY EXPORT CODES TO CHINA. WE WILL GET THE DETAILS NEXT. IT'S BLOOMBERG TECHNOLOGY.
ED: TECHNOLOGY STOCKS QUAVERING AMID NOVEMBER'S $2 TRILLION RALLY. WHAT TO EXPECT GOING FORWARD WITH EARNING STILL TO COME? JOINING US IS JONATHAN CURTIS THE FRANKLIN EQUITY GROUP DIRECTOR OF PORTFOLIO MANAGEMENT, AN INVESTOR THAT HOLDS A NUMBER THAT MAGNIFICENT SEVEN KEY SEMICONDUCTOR AND SOFTWARE NAMES. IT IS IN THE CHIPS I WANT TO START. APPLIED MATERIALS. THE REPORT OF THE PROBE LOOKING AT WHETHER THEY BREACHED THE U.S. TECHNOLOGY EXPORT CURVES TO CHINA. YOU HOLD APPLIED MATERIALS ACROSS DIFFERENT FRANKLIN FUNDS.
WHAT DO YOU MAKE OF THAT REPORT? JONATHAN: APPLIED MATERIALS HAD ACTUALLY DISCLOSED IN OCTOBER OF 2022 THAT THEY WERE UNDER INVESTIGATION. THE INCREMENTAL NEWS WE GOT YESTERDAY OUT OF REUTERS WAS THE INVESTIGATION HAD TURNED PERHAPS POTENTIALLY CRIMINAL. I DON'T THINK THE COMPANY IS COMMENTING ON THE SPECIFICS OF THE REPORT. IMPORTANTLY APPLIED MATERIALS IS ONE OF THE WORLD'S ELITIST SEMICONDUCTOR CAPITAL EQUIPMENT COMPANIES INVOLVED IN REALLY EVERY PART OF THE MARKET WITH THE EXCEPTION OF LITHOGRAPHY. THEY ARE A LEADING PLAYER IN
THE SPACE THAT IS EXCEPTIONAL FOR WESTERN FABS, FABS IN KOREA, TAIWAN, AND CHINA. IF THEY HAVE MADE A MISTAKE OR IF SOMEBODY DEEPER DOWN IN THE COMPANY MADE A MISTAKE AND A LOT OF EQUIPMENT TO MAKE ITS WAY OVER TO SMACK IN CHINA THAT SHOULD BE DEALT WITH. I DO NOT THINK ANY SANCTIONS THAT WOULD BE IMPOSED WOULD NEGATIVELY IMPACT THE COMPANY'S EARNINGS POWER OR, CERTAINLY THERE MODE. THEY ARE A CRITICAL SUPPLIER IN THE ECOSYSTEM AND VERY ESSENTIAL TO KEEP OPERATING. ED: EXTRAPOLATE OUT THE CHINA RISK TO THE INDUSTRY MORAL BROAD -- MORE BROADLY.
THINK ABOUT HOW NVIDIA TRADED OVER THE LAST SEVEN DAYS. THERE ARE SOME REPORTS OF NEW GENERATION CHINA SPECIFIC CHIPS TRYING TO GET PRODUCT THAT COMPLIES WITH THESE CURBS. CLEARLY THERE IS A DANGER OF BEING IN BREACH OF THEM.
HOW IS AN INVESTOR DO YOU NAVIGATE THAT? JONATHAN: LISTEN, CHINA WANTS TO BE A PLAYER IN SOME OF THESE LEADING-EDGE CHIPS. THEY WANT TO MANUFACTURE THEM. THEY WANT TO HAVE THEM FOR THEIR OWN EFFORTS IN CLOUD COMPUTING, MILITARY, AND ARTIFICIAL INTELLIGENCE. THE U.S.'S TURN THAT. CHINA IS A VERY BIG MARKET. EVEN IF CHINA IS NOT ABLE TO ACQUIRE THE CHIPS THEY WARMED, THEY WILL FIND OTHER WAYS AROUND BEING ABLE TO GET THE MOST A LEADING EDGE OF CHIPS BY MANUFACTURING THEIR OWN BEST POWERFUL CHIPS.
BUT, SPENDING THEN MORE MONEY ON THE EQUIPMENT TO BUILD THOSE LESS POWERFUL CHIPS AND MORE MONEY ON THE INFRASTRUCTURE TO RUN THE CHIPS SO THEY CAN MATCH THE COMPUTE CAPACITY IN THE WEST. IN AN ODD WAY, WE THINK IT IS POSITIVE FOR THE INDUSTRY BECAUSE IT ULTIMATELY MEANS THERE IS AN OVERSPEND, IF YOU WILL, HAPPENING IN CHINA TO SUPPORT MATCHING COMPUTE CAPACITY REQUIREMENTS OF CHINA. SO, CERTAINLY, WE ARE PAYING CLOSE ATTENTION TO IT. APPLIED MATERIALS COME AT THE BEGINNING OF OUR CONVERSATION I THINK 44% OF THEIR REVENUE IN THE RECENT QUARTER WAS FROM, IN FACT, CHINA. CERTAINLY CHINA IS A BIGGER CONSUMER. THE U.S. IS TRYING TO LIMIT CHINA'S ACCESS TO EQUIPMENT AND PROCESSES AND CHIPS AT THE LEADING EDGE.
BUT, CHINA CAN MAKE GOOD PROGRESS AND BUILD A VERY SUCCESSFUL INDUSTRY ON LAGGING EDGE NODES IF THEY WANT TO. THEY WILL JUST HAVE TO OVERSPEND TO MATCH THE COMPUTE CAPACITY AVAILABLE IN THE WEST FOR MORE ADVANCED CHIPS. CAROLINE: IT IS INTERESTING, ED MENTIONED NVIDIA AND THE WAY THEY ARE TRYING TO BUILD A DIFFERENT CHIPS TO MEET CURRENT STANDARDS. NVIDIA GOT ITS EARNINGS COMING
UP FAST. I AM INTERESTING ON YOUR TEST INTERESTED IN YOUR PERSPECTIVE ON HOW FAR THE MAGNIFICENT SEVEN HAVE ROOM YET TO WHAT -- RUN. THERE IS AN IDEA BY GOLDMAN SACHS THAT 20 24 YOU STAY AND HOLD AND THE MAGNIFICENT SEVEN COMPANIES WILL DELIVER INTO THE NEXT YEAR AS WELL.
DO ABIDE BY THAT WITH VALUATIONS? JONATHAN: YES, WE ARE QUITE POSITIVE ON THE ENTIRE TECHNOLOGY SECTOR AND ARTIFICIAL INTELLIGENCE IN PARTICULAR. THE MAGNIFICENT SEVEN ARE MAGNIFICENT BALLADS -- BUSINESSES. ALMOST ALL OF THEM WITH THE EXCEPTION OF ONE OR TWO HAVE VERY STRONG AI TOP TRACKS AND OPPORTUNITIES. THEY HAVE MASSIVE AMOUNTS OF DATA. THEY CAN GET MORE DATA. THEY CAN WRANGLE THE COMPUTE TO BUILD THE MODELS. THEY HAVE THE TALENT TO BUILD THE MODELS. THEN THEY HAVE THE PATHWAYS
INTO WHICH TO DELIVER VALUE FROM THE MODELS INTO THEIR CUSTOMERS AND CHARGE FOR THEM. SOME OF THE COMPANIES HAVE THE POTENTIAL TO DOUBLE THEIR OVERALL BUSINESSES ON THE DELIVERY OF AI FEATURES INTO JUST A SMALL NUMBER OF THEIR BUSINESSES. SO, THERE IS GREAT POTENTIAL THAT LIES AHEAD FOR MANY OF THE MAGNIFICENT SEVEN. NOW, WE OWN MANY OF THEM. WE HAPPEN TO BE UNDERWAY TO
THEM. WE SEE GREATER VALUE DOWN THE MARKET CAP RANGE. COMPANIES THAT HAVE SOME OF THE SAME CHARACTERISTICS AT THE MAGNIFICENT SEVEN BUT ARE TRADING AT MORE COMPELLING VALUATION LEVELS. CAROLINE: CAN YOU QUICKLY TELL US SOME OF THE NAMES THAT ARE LESS OBVIOUS.
JONATHAN: A COMPANY LIKE SURFACE NOW. THEY CAN CHECK ALL THE BOXES THE MAGNIFICENT SEVEN CAN IN TERMS OF BEING ABLE TO BE A PLAYER IN AI. BUT THEY ARE A LESS WELL UNDERSTOOD BUSINESS WITH SIGNIFICANT OPPORTUNITY TO RAISE PRICES AND DELIVER VALUE TO CUSTOMERS TO MAKE CUSTOMERS MORE EFFICIENT WITH GENERATIVE AI. CAROLINE: JONATHAN CURTIS OF FRANKLIN EQUITY GROUP, GREAT TO HAVE YOU WITH YOUR OVERALL MARKET VIEWPOINT. COMING UP, WE TALK ABOUT ANOTHER MAGNIFICENT COMPANY. THE ALPHABET CEO HAS BEEN
PREACHING AT THE APEC SUMMIT IN SAN FRANCISCO. WE WILL HEAR MORE OF HIS THOUGHTS NEXT ON BLOOMBERG TECHNOLOGY. CAROLINE: APPLE MAY BE FALLING BACK ON EFFORTS TO MAKE A MODEM CHIP FOR THE IPHONE. APPLE WILL LIKELY MISS ROLLING THIS OUT FOR 2025 DUE TO THE COMPLEX DESIGNS OF THE CALM -- QUALCOMM CHIPS. OPENING I BELIEVE THAT WE HAVE YET TO SEE THE BIGGEST RISKS AI POSES TO U.S. POLITICS AND POLICY.
HE IS HOPEFUL ARTIFICIAL INTELLIGENCE CAN HELP HUMANITY LONGER-TERM, BUT ALTMAN HAS CALLED FOR GOVERNMENT OVERSIGHT OF THE TECHNOLOGY NEAR TERM. AMAZON IS CUTTING HUNDREDS OF JOBS. IN ITS VOICE ACTIVATED ALEXA DIVISION. THE COMPANY IS SHIFTING EFFORTS TO FOCUS ON BUILDING CAPABILITIES FOCUS TO BUY, YOU GUESSED IT, GENERATIVE AI. ED:
BACK HERE SOON TO P CHAI EXPECTS CHINA TO BE AT THE FOREFRONT OF AI. THE ALPHABET CEO CALLED A CHINA'S WORK ON THE TECHNOLOGY ASTOUNDING DURING THE CONVERSATION AT AIPAC -- AP EC. >> I START FROM THE PREMISE AI WILL PROLIFERATE. AI ADVANCES WILL GET OUT ALL COUNTRIES. IT'S NATURALLY THE KIND OF TECHNOLOGY WHERE I DO NOT THINK THERE IS ANY UNILATERAL SAFETY TO BE HAD.
WE ALL HAVE A SHARED INCENTIVE TO SOLVE FOR SAFETY. YOU COULD HAVE AI GO WRONG IN ONE COUNTRY AND IMPACT EVERY OTHER COUNTRY. IN SOME WAYS IT IS LIKE CLIMATE CHANGE AND THE PLANET. WE ALL SHARE A PLANET.
THAT'S TRUE FOR AI. NOW THAT YOU KNOW THAT WILL BE TRUE, I THINK THAT YOU HAVE TO START BUILDING THE FRAMEWORKS GLOBALLY TO MAKE PROGRESS. I HAVE SEEN ENCOURAGING PROGRESS . WHEN THE G7 HAPPENED IN HIROSHIMA I THINK THAT WAS A GOOD START. YOU HAVE SEEN MORE PROGRESS AT THE U.K. SUMMIT LAST WEEK.
THE ADMINISTRATION HERE, THE WHITE HOUSE HAS BEEN LEADING THE WAY AS WELL. I SAW GOOD ENCOURAGING ANNOUNCEMENTS EVEN YESTERDAY FOR THE U.S. AND CHINA TO START HAVING A DIALOGUE ON AI.
CAROLINE: COMING UP WE TALK MORE ABOUT THE U.S. AND CHINA RELATIONSHIPS AND THE TENSIONS THERE WHEN IT COMES TO TECHNOLOGY. PRESIDENT XI JINPING WRAPPING UP HIS TRIP TO THE UNITED STATES. FROM THERE YOU'RE FROM SAN FRANCISCO WHERE APEC HAS BEEN HELD, THIS IS BLOOMBERG TECHNOLOGY. ED: WELCOME TO BLOOMBERG TECHNOLOGY.
ED LUDLOW IN SAN FRANCISCO. CAROLINE: CAROLINE HYDE IN NEW YORK CHECKING THE MARKETS AS WE ENDED THE WEEK. WE ARE OFF BY ABOUT .2% ON THE NASDAQ 100. REMEMBER HOW FAR AND FAST WE CAME. IN NOVEMBER WE ADDED $2
TRILLION TO MARKET CAPITALIZATION ON THE NASDAQ AND S&P 500. GOLDMAN SACHS SAYS STAY INVESTED, WE WILL SEE MORE GROWTH, 5% FOR 2024. BANK OF AMERICA IS STARTING TO SAY FADE IT. IN THE BOND MARKET FADING SLIGHTLY, FLAT ON THE DAY WITH YIELDS AS WE ANALYZE FEDERAL RESERVE POLICY AND WEAKENING MACRO DATA. BITCOIN TURNING AROUND UP ABOUT 1.1% ON THE DAY BUT DOWN ON THE LAST FIVE TRADING DAYS.
EVEN WITH SOME DOLLAR WEAKNESS. LET'S LOOK AT INDIVIDUAL MOVERS. MICROSOFT IS WORST FROM THE POINTS PERSPECTIVE ON THE NASDAQ OFF BY MORE THAN 1%. MAYBE IT'S A LITTLE PROFIT TAKING ON WHAT HAS BEEN AN EXCEPTIONAL RUN, ONE OF THE MAGNIFICENT SEVEN. APPLIED MATERIALS, IDIOSYNCRATIC NEWS. REPORTS OF A CRIMINAL INVESTIGATION FROM THE U.S. AS TO WHETHER OR NOT THEY DID BYPASS SOME RESTRICTIONS ON EXPORTS TO CHINA.
DOWN BY 5.3 PERCENT REPORTING COMING FROM REUTERS. TESLA IN THE GREEN UP .4%. IDIOSYNCRATIC NEWS. TRYING TO MAKE MAYBE NOT A CAUSAL LINK, BUT THERE HAS BEEN SOME WEAKNESS IN TESLA TRADING YESTERDAY AFTER WHAT HAS BEEN SEEMINGLY AN ENDORSEMENT OF ANTISEMITIC POSTS ON X BY THE OWNER OF X AND CEO OF TESLA ELON MUSK. A LOT TO DISSECT ACROSS THE BOARD. ED: THAT WAS THE BIG STORY OF THE LAST 24 HOURS AND THE OTHER IS APEC WRAPPING UP IN SAN FRANCISCO. IT'S A WHO'S WHO OF GLOBAL POWER PLAYERS IN POLITICS AND TECHNOLOGY. ONE, I AM DELIGHTED TO SAY,
JOINTS ME NOW ONSET. BLOOMBERG'S ANNMARIE HORDERN. DID YOU MAKE IT TO THE PARTY LAST NIGHT? >> I DID NOT. I WAS TOO TIRED. ED: IN ALL SERIOUSNESS EVERY ONE THAT MATTERS IN THE WORLD HAS BEEN HERE. WHEN YOU LAST JOINED US ON THE SHOW IT WAS ALL ABOUT BIDEN XI JINPING. WHAT HAPPENED AFTER THAT IN THE WORLD OF TECHNOLOGY AS WELL? ANNMARIE:N BIDEN AND XI JINPING WAS THE STARTING GUN TO THE ENTIRE APEC SUMMIT. BUT AS MUCH AS THE BIDEN
MEETING WAS IMPORTANT TO NEW YORK TIMES HAD A STORY ABOUT HOW THE CHINESE PREPARED THREE SPEECHES FOR HIM TO GIVE THE EXECUTIVES AND HE WENT WITH THE FRIENDLIEST ONE AFTER THE BIDEN MEETING. THAT ROOM WHERE HE GOT ALL THE APPLAUSE. ED: TIM COOK WAS IN THE ROOM AS WELL. APEC LARRY FINK ED SCHWARTZMAN. WE ALSO HAD A LETTER FROM XI JINPING SAYING HE WANTS A HEART WARMING WELCOME OF THE BUSINESS COMMUNITY. CLEARLY HE IS TRYING TO WOO INVESTORS AS THERE HAS BEEN A TEMPLE OF FOREIGN DIRECT INVESTORS INTO CHINA. THIS WAS XI JINPING'S OPENING
AND MOMENT. THE PROBLEM IS IT IS JUST WORDS AT THIS MOMENT THAT SOUNDED VERY FUZZY AND WARM FROM THE CHINESE PRESIDENT. WHAT WILL THEIR REACTION? A FEW HOURS BEFORE XI JINPING'S LETTER BECAME PUBLIC AND REMARKS TO THE EXECUTIVES, THE CHINESE COMMERCE MINISTRY DID SAY THEY WILL TRY TO GO AFTER A CAMPAIGN FOR WELL POTENTIAL DISCRIMINATIVE MEASURES HAPPENING TO FOREIGN INVESTORS. ED:F A.K.A. TECHNOLOGY EXPORT CURVES? ANNMARIE: I AM TALKING MORE ABOUT FOREIGN DIRECT INVESTMENT INTO CHINA, BUT TECHNOLOGY COMPANIES HAVE HAD A NUMBER ISSUES IN CHINA. IF WE ARE TALKING ABOUT TECHNOLOGY EXPORT CURVES FROM THE U.S.
INTO CHINA IT IS SOMETHING THAT I AM SURE XI JINPING BROUGHT UP WITH PRESIDENT BIDEN. BUT FROM THE U.S. IS NOT GOING TO BUDGE ON ANY OF THESE SANCTIONS OR PENALTIES THAT POTENTIALLY CAN HINDER THEIR NATIONAL SECURITY. CAROLINE: ANNMARIE HORDERN GREAT TO HAVE YOU ON THE SHOW THROUGH THE WEEK. WE WILL PICK UP WHERE SHE
LEAVES OFF. ULTIMATELY, HAVE THESE DISCUSSIONS IN ANY WAY CHANGED THE ULTIMATE TRADE RELATIONSHIP BETWEEN THE U.S. AND CHINA? WE HAVE THE PERFECT GUEST LIZA TOBIN IN YOUR DIRECTOR OF RESEARCH ANALYSIS FOR THE ECONOMY AT THE COMPETITIVE STUDIES PROJECT. YOU PREVIOUSLY SERVED ON THE NATIONAL SECURITY STAFF AS CHINA DIRECT WHERE YOU HELPED MULTIPLE U.S. STRATEGIES AND POLICIES RELATED TO CHINA. WILL POLICY CHANGE? WILL DOING BUSINESS BE EASIER BETWEEN THE TWO NATIONS? ELIZABETH: NO, I THINK THE PREVIOUS SPEAKER IS RIGHT. I THINK THE TALK OUT OF XI
JINPING IS TRYING TO SIGNAL CHINA IS OPEN TO BUSINESS. BUT, I THINK WORDS ARE CHEAP. I THINK WE ARE SEEING A TACTICAL SHIFT, BUT NO STRATEGIC SHIFT ON EITHER SIDE.
I THINK THE U.S. WILL KEEP UP PRESSURE ON THE TECHNOLOGY AND ECONOMIC CONTROLS AND FOR CHINA'S SIDE I DO NOT THINK XI JINPING'S STRATEGY HAS CHANGED AT ALL. OVER THE LONG TERM I THINK THIS IS TRYING TO KIND OF REDUCE SOME PRESSURE GIVEN HOW WEAK CHINA'S ECONOMY IS LOOKING LATELY. CAROLINE: FORWARD FIVE OR 10 YEARS IN TIME, WHAT DOES THE RELATIONSHIP LOOK LIKE? WHAT DOES THE SELF ABILITY TO PROVIDE FOR CHIPS, FOR MANUFACTURING, FOR TECHNOLOGY AND OVATION IN CHINA LOOK LIKE? CAN THEY HAVE SELF-DETERMINATION IN THAT RESPECT? LIZA: THE ADMINISTRATION GOING INTO THIS WAS REALLY SIGNALING THAT THEY SEE THE U.S. AS A LONG-TERM STRATEGIC RIVAL
AND COMPETITION WITH THE PEOPLE'S REPUBLIC OF CHINA. THOSE THIS MEETING -- SO THIS MEETING WAS INTENDED TO SET A FLOOR AND STABILIZE RELATIONS. THEY SIGNALED A VERY LOW EXPECTATIONS. THEY HOPE TO AT LEAST RESTORE SOME MILITARY TO MILITARY COMING OCCASIONS. GOING FORWARD BASED ON THE UPDATES LAST MONTH YOU SOUGHT TO THE EXPORT CONTROLS ON THE HAIR -- HIGH-END AI CHIPS IT WAS REALLY A DOUBLING DOWN BY THE U.S.
ADMINISTRATION ON THE CONTROLS SIGNALING THEY REALIZE THEY ARE IN A CAT AND MOUSE GAME AND THE CHINA WILL ADJUST THE CONTROLS AND SEEK LOOPHOLES AND THE ADMINISTRATION IN RESPONSE WILL CONTINUE TO UPDATE THEM TO TRY TO MEET THE OBJECTIVE OF PREVENTING CHINA FROM USING U.S. HIGH-END CHIPS TO ACCELERATE THEIR MILITARY DEVELOPMENT. ED: YOU SAID A MOMENT AGO THAT WORDS ARE CHEAP. WE ARE TALKING LARGELY IN THE CONTEXT OF THE DIPLOMATIC RELATIONSHIP BETWEEN THE U.S. AND CHINA.
LOOK AT WHO WAS IN THE ROOM WEDNESDAY NIGHT. TIM. -- TIM COOK. IT SEEMS AS IF THE PRIVATE SECTOR, THE BIGGEST TECHNOLOGY COMPANIES IN THE WORLD HAVE A VERY DIFFERENT ATTITUDE THAN CHINA. THEY JUST WANT TO DO BUSINESS THERE. LIZA:Z BEIJING IS SMART.
IT HAS A STRATEGY OF TRYING TO EXPLOIT IN THE GAPS AND SPLITS IN AMERICAN SOCIETY. IT IS FEDERAL GOVERNMENT VERSUS LOCAL AND STATE LEVEL GOVERNMENT. PUBLIC AND PRIVATE. THEY REALIZE WE ARE A DEMOCRACY AND THEY TRY TO EXPLOIT THESE GAPS. HOWEVER I THINK GIVEN HOW INCREASINGLY OPAQUE AND HOSTILE TO FOREIGN BUSINESSES THE CHINESE MARKET IS, I DO NOT THINK YOU WILL SEE ANY KIND OF STRATEGIC RAPPROCHEMENT BETWEEN THE COMPANIES. CHINA HAS MOVED ON BEYOND THE ERA OF REFORM AND OPENING.
THAT ERA IS OVER. THEY STILL SAY THESE WORDS, BUT I THINK THE REALITY ON THE GROUND IS BECOMING INCREASINGLY HOSTILE. ED: LIZA, IT'S FRIDAY. IT'S BEEN A LONG WEEK. WHAT IS THE MOST POSITIVE OUTCOME FROM APEC. WHAT A GOOD THING HAS COME OUT
OF IT? LIZA: I MENTIONED IN THE ADMINISTRATION KIND OF SAT A LOW BAR FOR ITSELF. I THINK THEY STEPPED OVER THE LOW EXPECTATIONS EASILY AND IT THERE ARE A FEW CONCRETE DELIVERABLES. ONE THAT THEY ARE QUITE GRATIFIED BY IS AN AGREEMENT TO WORK WITH THE CHINESE ON COUNTER NARCOTICS. OF COURSE, THERE ARE A LOT OF PRECURSOR CHEMICALS FOR FENTANYL FLOWING INTO THE U.S., MUCH OF IT THROUGH MEXICO.
THEY ARE SIGNALING THE CHINESE ARE STARTING TO TAKE ACTION TO CRACKDOWN ON FIRMS DOING THIS. SO I THINK THE HOPE IS VERY MODEST. THAT AT LEAST A SHORT-TERM WE CAN SAVE SOME AMERICAN LIVES BY LIMITING THE FLOW OF THIS. SO WE SHOULD EXPECT COOPERATION ON THE CHINESE SIDE TO TURN ON AND OFF DEPENDING ON HOW HAPPY THEY ARE WITH OTHER ASPECTS OF THEIR RELATIONSHIP. BUT SHORT-TERM, IF WE CAN SAVE AMERICAN LIVES I THINK IT IS A GOOD THING. IT IS ALSO GOOD FOR OUR MILITARIES TO BE TALKING TO EACH OTHER. THAT'S A PRETTY LOW BAR, BUT WE
NEED TO BE COMMUNICATING TO AVOID MISUNDERSTANDING. THEY HAVE ALSO ANNOUNCED WE WILL START SOME TYPE OF INITIAL DISCUSSIONS WITH THE CHINESE ABOUT AI RISK AND SAFETY. THIS IS SOMETHING THE U.S. IS TALKING TO A LOT OF
DIFFERENT PARTNERS AND ALLIES AROUND THE WORLD ABOUT ADDED THEY WILL START DOING THE SAME WITH CHINA. ED: LIZA TOBIN OF THE SPECIAL COMPETITIVE STUDIES PROJECT THANK YOU FOR JOINING US ON BLOOMBERG TECHNOLOGY. COMING UP WE WILL BE JOINED BY MICHELLE GONZALEZ HEAD OF THE MICROSOFT VENTURE ARM TO DISCUSS HER OUTLOOK FOR VENTURE CAPITAL. INTERESTING STRATEGY THERE. PRIVATE MARKETS AND A BIG TECH NAME. ED: IT'S TIME FOR THE VC ROUND UP.
IN THE NEWS CAN -- CANADIAN STARTUP DEEP SKY RAISED $50 MILLION FROM RADIAN FIRMS AND GOVERNMENTS TO BEEN -- BEGIN CARBON CAPTURE IN QUEBEC AIMING TO SUCK MILLIONS OF TONS OF EMISSIONS FROM THE ATMOSPHERE AND OCEANS. IN JAPAN JAPAN'S STATE BACKED FOUNDRY START UP RAPID WILL WORK TO CREATE SEMICONDUCTOR TECHNOLOGY. THE COMPANIES WILL EXCHANGE KNOW-HOW ON TWO NANOMETER LOGIC CHIPS TO HELP DEVICES ACCESS AI. PLUS BILLIONAIRESNIEL, SAADE AND ERIC SCHMITT ANNOUNCED A NONPROFIT RESEARCH LAB IN PARIS WITH 300 MILLION EUROS IN TOTAL FUNDING PRODUCING OPEN-SOURCE RESEARCH. CAROLINE: WE HAVE TO STICK WITH THE WORLD
OF AI LABS AND INVESTMENT FOR TODAY'S VC SPOTLIGHT. SHOW GONZALEZ IS CORPORATE VICE PRESIDENT AND GLOBAL HEAD OF MICROSOFT VENTURE FUND. WHAT IS FASCINATING IS YOU ARE ALIGNING WITH YOUR OWN THESIS DRIVEN VIEW OF INVESTING AND WHAT WORKS ALONGSIDE MICROSOFT'S OWN BUSINESS FOCUS AND IN MANY WAYS HELPS TURBOCHARGE COMPANIES IN YOUR PORTFOLIO. WHERE IS ANYTHING BEING DONE OUTSIDE AI? IS EVERYTHING ABOUT ARTIFICIAL INTELLIGENCE FOR YOU NOW? MICHELLE: THANK YOU FOR HAVING ME HERE. YES, WE VIEW AI AS A REVOLUTION
ON THE ORDER OF MOBILE SMART PHONE TECHNOLOGY, CLOUD COMPUTING, THE INTERNET ITSELF. WE HAVE EVEN HAD A FEW EXPERTS IN HOUSE THINK OF IT AS THE IMPACT ON SOCIETY SIMILAR TO ELECTRICITY. CAROLINE:HMM. MICHELLE: WE ARE ALL IN ON AI AS THE EMPLOYEE INVESTMENT ARM, MICROSOFT VENTURE FUND, AC/DC SEES THIS DRIVEN. THE OTHERS WE COVER OUR CYBERSECURITY.
WE HAVE A FUND FOCUSED ON DEVELOPER TOOLS. LOOK, THERE'S OUR PORTFOLIO OF COMPANIES. WE HAVE INVESTMENT IN INFRASTRUCTURE, DEEP TECH, AND ENTERPRISE APPLICATIONS. CAROLINE: IT IS QUITE AN EXPENSIVE PLACE TO BE INVESTING NOW FOR AI.
AMAZINGLY, CONSIDERING THE MACROECONOMY. IT IS ALSO PRETTY COMPETITIVE. WHAT IS YOUR EDGE? IN LOTS OF WAYS WE HAVE SEEN BIG CORPORATE COME IN BECAUSE THAT THEY CAN OFFER BASICALLY THE COMPUTER POWER. HAS THAT SET YOU APART? MICHELLE: THIS IS OF GOLDEN AGE FOR CORPORATE VENTURE CAPITAL PARTICULARLY WITHIN AI WITH FOUNDERS LOOKING FOR ACCESS TO CUSTOMERS. IN THE ENTERPRISE NOW THERE'S A LOT OF EXCITEMENT. WE SEE ABOUT 60% OF ENTERPRISES THAT SAY THEY WANT TO ADOPT AI TECHNOLOGY THEN IT NEEDED TO HAVE THE RIGHT PARTNERS. THAT IS ONE ASPECT FOR US.
WE ALSO HAVE ACCESS TO TECHNOLOGY. WE JUST ANNOUNCED AN AI SUPERCOMPUTER DEDICATED GP USE FOR HIM 12 PORTFOLIO COMPANIES. YOU SEE THIS AS WELL FOR NVIDIA AND SALESFORCE INVESTMENTS. FOR US WE LOOK TO CONNECTIONS, CUSTOMER ACCESS, HELPING THE COMPANIES GET GO TO MARKET READY SELLING TO THE ENTERPRISE. AS WELL AS THE COMPUTER. ED:
I WANT TO DIG INTO THE SUPERCOMPUTER. IT IS INTERESTING THAT ACCESS TO COMPUTE IS SOMETHING WE TALK ABOUT ON THE SHOW ALL THE TIME. IT IS GREAT HAVING TO SUPERCOMPUTER B BUILT IN THE FIRST PLACE. WHO PAYS FOR IT ON AND ONGOING BASIS SO PORTFOLIO COMPANIES AND FOUNDERS CAN HAVE ACCESS TO THE COMPUTER? MICHELLE: RIGHT NOW WE ARE OFFERING THIS AS A WAY FOR COMPANIES TO START EXPERIENCING WITH -- EXPERIMENTING WITH TRAINING. IT'S FREE FOR A CERTAIN TIME.
BUT WE ARE A BUSINESS SO EVENTUALLY THEY WILL BE PAID FOR THAT AS WELL. ED: GIVE US AN EXAMPLE OF SOMETHING YOU HAVE INVESTED IN THAT DOWN THE ROAD ENDED UP BECOMING A PART OF MICROSOFT OR THE TECHNOLOGY MICROSOFT USES. MICHELLE: ONE RECENT EXAMPLE IS IN WORLD.
WE INVESTED TWO YEARS AGO AND IN THE FOUNDERS FROM GOOGLE. THIS COMPANY IS FOCUSED ON NONPLAYER CHARACTERS. AI CHARACTERS IN THE GAMING SPACE.
WE JUST ANNOUNCED A MULTIYEAR CODEVELOPMENT PARTNERSHIP WITH MICROSOFT. IT'S ABOUT ONE YEAR IN MAKING AND OUR TEAMWORK VERY HARD -- TEAM WORKED VERY HARD TO ENTER THE PARTNERSHIP CAME TOGETHER AT GAME DEVELOPERS ON XBOX TO HAVE ACCESS TO ALMOST NAI GAMING COPILOT TO HELP THEM WITH PROMPTING DIFFERENT SCRIPTS AND BUILDING THEIR GAME DEVELOPMENT. THAT IS ONE EXAMPLE. WE HAVE SEVERAL OTHERS. ED: CORPORATE VICE PRESIDENT AND GLOBAL HEAD OF HIM 12 MICHELLE GONZALEZ. -- M 12 MICHELLE GONZALEZ.
WHEN ONE OF THOSE GOES BAD, COME BACK TO THE SHOW AND TELL US. COMING UP ON BLOOMBERG TECHNOLOGY, THERE ARE MORE ADVERTISERS LEAVING X AMID BACKLASH AGAINST ELON MUSK. WE DISCUSS WHAT IT MEANS FOR THE FUTURE OF THE SOCIAL MEDIA PLATFORM IN THE MOMENT AND BIGGER PICTURE NEXT.
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE FALLOUT FROM AN ELON MUSK POST SEEMINGLY ENDORSING ANTI-SEMITIC VIEWS CONTINUES TO SPREAD WHETHER IT IS TESLA INVESTORS PROCESSING THE BILLIONAIRE OR ADVERTISERS FLING HIS SOCIAL MEDIA PLATFORM X INCLUDING IBM. BUSINESSWEEK COLUMNIST MAX CHAPMAN HAS BEEN FOLLOWING THE RISE IN VOLATILITY AROUND ELON MUSK FOR YEARS. THIS HAS BEEN HIDING IN PLAIN SIGHT FOR A LONG TIME.
THIS TIME DOES IT STICK WESTON ARC MAX: ELON MUSK HAS HAD AN EDGY SOCIAL MEDIA PRESENCE FOR YEARS. ANYBODY THAT FOLLOWED THE FUNDING TO. BROUHAHA A FEW YEARS AGO UNDERSTANDS HE HAS DONE HE DID A LITTLE DAMAGE CONTROL THE NIGHT OF BUT MORE OR LESS HAS BEEN TWEETING THROUGH IT. ED: WE HAVE WRITTEN EVERYONE CHASING EVERY AVENUE WE HAVE TO TRY TO GET A RESPONSE FROM ELON MUSK. THERE DOES GOOD THINGS HAPPENING IN PARALLEL. MEDIA MATTERS POSTED THIS
REPORT THURSDAY SHOWING NAMES LIKE APPLE, ORACLE, IBM ADDS SHOWING UP IN TIMELINES ALONGSIDE SENSITIVE CONTENT LIKE POSTS THAT ARE PRO-NAZI AS AN EXAMPLE. X WROTE TO ME THIS MORNING SHOWING THEIR RESPONSE NOW. THEY ARE BASICALLY SAYING, THIS IS A FUNCTION OF THE MEDIA MATTERS RESEARCHERS USER BASE. IN OTHER WORDS, THIS IS HOW AD TARGETING WORKS AND THEREIN LIES A BIGGER TECHNOLOGY PROGRAM -- PROBLEM ABOUT THE HEALTH OF THAT PLATFORM. MAX: LINDA YACCARINO POSTED HALFWAY TOWARDS A SUB SUITE OF ELON MUSK SAYING THE COMPANY DOES NOT TOLERATE ANTI-SEMITISM OF ANY KIND. I DO THINK THAT IT'S A LOT HARDER TO MAKE THE ARGUMENT THAT YOU ARE TAKING HATE SPEECH SERIOUSLY WHEN THE FACT OWN LEADER OF THE COMPANY, LINDA YACCARINO IS IN THE CEO, BUT MUST IS THE OWNER AND SEEMS TO BE MAKING ALL OF THE BIG DECISIONS, IS GOING OUT THERE AND ACTIVELY TWEETING HATE SPEECH HIMSELF.
IT IS HARDER TO SAY YOU ARE TAKING THIS SERIOUSLY AND IT WILL CREATE A HUGE CHALLENGE FOR ADVERTISERS. CAROLINE: DUSTIN MOSCOWITZ WAS ONE OF THE COFOUNDERS OF FACEBOOK. HE PUT OUT A SOCIAL MEDIA POST SAYING LINDA TO FIRE ELON MUSK AS THE CDO, AS CHAIR. WHETHER OR NOT THAT IS IN ANYWAY WAY FEASIBLY POSSIBLE. AT ONE POINT, IF EVER, DO YOU THINK THIS MIGHT HAVE RAMIFICATIONS ON HIS HOLDING OF SENIOR NEGATIVE TITLES ACROSS HIS INCREDIBLY SUCCESSFUL BUSINESSES? ALIX: -- MAX: I THINK EACH OF US COMPANIES WILL BE DIFFERENT.
TESLA IS PUBLICLY TRADED WITH A HUGE CUSTOMER BASE THAT HAS TRADITIONALLY BEEN LEFT OF CENTER. THESE ARE ENVIRONMENTALISTS. YOU HAVE TO THINK THIS WILL IMPACT TESLA'S ALREADY SIGNIFICANT CHALLENGES GENERATING DEMAND FOR ITS CARS. SPACEX IS A GOVERNMENT
CONTRACTOR. YOU ASK, IS THE BIDEN ADMINISTRATION GOING TO PUT OUT A STATEMENT? I SUPPOSE IT'S POSSIBLE TO GO FURTHER. I THINK AT SOME POINT WE WILL SEE A RESPONSE FROM MUSK BECAUSE THE VOLUME IS GETTING UP THERE. BUT IT WAS THAT SHE IS TELLING, I WOULD SAY, THAT IT HAS NOT HAPPENED YET. ED:
BLOOMBERG'S MAX CHAFKIN. THAT HAS BEEN THE TOP STORY THE LAST PENNY FOR HOURS AND IS NOT THE ONLY STORY IN THE WORLD OF ELON. SPACEX HAS A SIGNIFICANT LAUNCH PLAN FOR SATURDAY WITH STARSHIP DOING FULL ATTEMPT NUMBER TWO. JOINING US IS BLOOMBERG'S LAUREN GRESHAM. WHAT IS SIGNIFICANT ABOUT THE ATTEMPT? WHAT ARE WE EXPECTING TO HAPPEN? LAUREN: SURE.
IT'S THE SECOND TIME EVER SPACEX WILL BE LAUNCHING A FULLY STAFFED STARSHIP SYSTEM. THE STARSHIP SPACECRAFT ON TOP OF ITS MASSIVE SUPER HEAVY BOOSTER. I CANNOT TELL YOU WHAT WE EXPECT. LAST TIME WITH THE LAUNCH ELON MENTIONED THAT EXCITEMENT WOULD BE GUARANTEED. PREFERABLY, WE ARE LOOKING TO
SEE THEM DO QUITE A BIT BETTER THAN LAST TIME. IF YOU WATCHED THE FIRST LAUNCH ATTEMPT, THEY DID, YOU KNOW, HAVE A FEW ENGINE FAILURES AND THEN THE ROCKET STARTED SPINNING OUT OF CONTROL AND SPACEX WAS FORCED TO INTENTIONALLY DESTROY IT. THE GOAL IS TO HOPEFULLY GET FARTHER THAN LAST TIME. ED: OUTLINED THE ROCKET SCIENCE FROM COUNTDOWN, LIFT OFF, WHAT HAPPENS THEREAFTER? LAUREN: AT LIFTOFF, PRESUMABLY, ALL 33 RAPTOR ENGINES AT THE BASE THAT ARE SUPER HEAVY WILL IGNITE LIFTING OFF THE ENTIRE ROCKET.
PREFERABLY 2.5 MINUTES INTO FLIGHT WE WILL LOOK AT THIS THING CALLED STAGE SEPARATION. THAT IS SUPER HEAVY-HANDED AND STARSHIP SEPARATING. SOMETHING SPACEX WHAT TEST IS KNOWN AS HOT STAGING. THE ENGINES ON THE STARSHIP SPACECRAFT WILL IGNITE BRIEFLY WHILE THE SUPER HEAVY BOOSTER IS ATTACHED GIVING IT A KICK AND PUSHING IT AWAY. THAT IS SOMETHING SPACEX CHANGED FROM THE FIRST LAUNCH AND IT IS SOMETHING THEY COULD ONLY TEST DURING FLIGHT.
THAT WILL BE EXCITING TO WATCH. THEN IF ALL GOES WELL HOPEFULLY STARSHIP WILL CONTINUE ON REACHING YOUR ORBIT DOING ALMOST A FULL LAP AROUND THE EARTH BEFORE IT COMES DOWN OFF THE COAST OF HAWAII. CAROLINE:
2023-11-22 13:21
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