Softbank's $100B Pledge | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE INCIDENT -- SILICON VALLEY AND BILOTTA -- AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, THE SOFTBANK CEO IS SET TO ANNOUNCE PLANS TO INVEST IN THE U.S. AFTER A VISIT WITH DONALD TRUMP. PLUS, BITCOIN RISES TO A RECORD HIGH. APPLE HAS GOT PLANS FOR A NEW
FOLDABLE IPAD, PLANNING TO BRING IT TO MARKET BY 2028. THE MARKETS HAVE A RISK ON ATTITUDE TO THE DAY AS WE ANTICIPATE KEY FED DECISIONS. CHIPMAKERS ARE DRIVING HIGHER ON BROADCOM WITH BITCOIN UP 3%, 4%. WE ARE ONCE AGAIN ESCALATING TO NEW LEVELS.
TRUMP BEING ONE OF THEM, THE FOCUS ON THE NEW AX -- THE NEW ADMINISTRATION. WE ARE UP AT 106,000 DOLLARS PER TOKEN. THE BIG BREAKING NEWS OF THE DAY WHEN IT COMES TO TECHNOLOGY IS WHEN IT COMES TO THE PEOPLE FAMILIAR, THE SOFTBANK CEO IS SET TO INVEST OVER $100 BILLION IN THE UNITED STATES IN THE NEXT FOUR YEARS AS HE PLANS TO MEET WITH TRUMP TODAY AT MAR-A-LAGO. WE ARE EXPECTING TRUMP TO SPEAK IN A FEW MOMENTS TIME. PETER, WE SAW A BIG PROMISES MADE BY THE SOFTBANK CEO IN THIS TIME HE IS NOT THEM. PETER: YOU WOULD BE FOR GET -- FORGIVEN IF YOU FELT LIKE THIS WAS DÉJÀ VU, IT WAS EIGHT YEARS AGO WHEN MASAYOSHI SON TALKED ABOUT $50 BILLION IN INVESTMENT, NOW HE'S DOUBLING THAT WITH AN ESTIMATED PLAN 100 THOUSAND JOBS COMING TO THE UNITED STATES.
THIS IS THE FIRST MAJOR INVESTMENT WE HAVE SEEN AFTER THE TRUMP WIN AND A PLEDGE TOWARDS WHAT TRUMP HAS BEEN TRYING TO DO IN TERMS OF REINVIGORATING THE ECONOMY. IT'S ALSO A BIG PUSH INTO THE UNITED STATES FOR SOFTBANK. LAST TIME THEY PUSHED THIS MUCH, THERE WAS PLENTY OF CAPITAL WITH INVESTMENTS TOWARDS WE WORK, DOORDASH, PLENTY OF OTHERS, AND RIGHT NOW HE DOESN'T HAVE THAT KIND OF CASH ANYMORE. YET HE IS DOUBLING HIS PLEDGE.
HE HAS SOME WORK TO DO HERE. CAROLINE: SOME WORK, BUT ALSO WANTING TO KNOW THE FINER DETAILS OF WHERE HE ALLOCATES. HE HAS BEEN ALL IN ON AI, SAW THE CURVE COMING BEFORE MANY OTHERS, OF COURSE AS EVIDENCED BY HIS ARM HOLDING ACQUISITION IN TAKING IT TO MARKET.
WHERE ELSE DO YOU THINK HE COULD BE INVESTING IN THE UNITED STATES? PETER: AT SOFTBANK WORLD THIS SUMMER HE TALKED A LOT ABOUT ARTIFICIAL INTELLIGENCE AND HOW HE WANTED TO INVEST IN EVEN MORE AND MORE KINDS OF COMPANIES. HE'S INVESTING INTO OPENAI IN PARTICULAR, RIGHT IN THE PROCESS OF A TENDER OFFER RIGHT NOW WHERE HE IS OFFERING OPENAI INVESTORS THE ABILITY TO SELL SHARES AND GET ANOTHER $1.5 BILLION AND HIS AMBITIONS GO FAR BEYOND THAT, HAVING TALKED ABOUT HAVING NVIDIA CHIPS IN PARTICULAR AND THAT ENERGY IS A HUGE THING FOR AI RIGHT NOW AND HE HAS BEEN INVESTING QUITE A BIT IN AUTONOMOUS DRIVING. A LOT OF AMBITIONS WITH A LOT OF DEALS AND INVESTMENTS HE WANTS TO MAKE. WE WILL SEE WHERE HE PUTS THE MONEY.
RIGHT NOW HE DOESN'T HAVE THE CASH ON HIS BALANCE SHEET, HE HAS TO BE ABLE TO GO OUT AND GET IT FROM SOMEWHERE. CAROLINE: PETER, THANK YOU. DISCUSSING TRENDS IN THE MARKET MORE BROADLY, WHAT THE INFLUX OF MONEY INTO AI MEANS FOR THE U.S., WE LOVE HAVING YOU ON BECAUSE OF THE HISTORICAL CONTEXT YOU CAN GIVE US ON INVESTMENTS, BUT LOOKING AT WHAT'S HAPPENING IN THE MARKET, $100 MILLION COMING INTO THE U.S., AI AND ENERGY, IT FEELS LIKE A LOT OF THAT MONEY IS
ALREADY GONE IN THAT DIRECTION. >> LOOKING AT A RELATIVE TO SALES AND MARKET CAP, YOU HAVEN'T SEEN MUCH OF A MOVE. WE TALK ABOUT IT ALL THE TIME WITH CASH ON THE SIDELINES IN TERMS OF NOMINAL CAPEX. WHEN YOU RE-NORMALIZE THAT, GIVEN THE MOVE WE HAVE SEEN IN THE MARKETPLACE OVER THE LAST FIVE YEARS, IT'S A LOWER PERCENTAGE THAN YOU WOULD THINK. INTERESTINGLY FOR TECH STOCKS AND FOR SOFTWARE STOCKS, CAPEX IS VERY MUCH AN ALPHA FACTOR. MEANING THE SPENDING IS USUALLY A GOOD THING FOR STOCKS BECAUSE IT IS VERY CORRELATED TO EARNINGS GROWTH. CAROLINE:
I WON'T ASK YOU TO OPINE AS TO WHERE YOU THINK MASAYOSHI SON WILL PUT HIS INVESTMENT, BUT LOOKING AT EVERYDAY RETAIL OR INSTITUTIONAL INVESTMENTS RIGHT NOW, ALLOCATING OPPORTUNITIES, ARE YOU PUT OFF BY SOME OF THE VALUATIONS OR DO YOU KEEP CHASING THE MOMENTUM? >> IT'S INTERESTING, TECHNOLOGY HAS HAD A BIT OF UNDERPERFORMANCE OVER THE COURSE OF THE LAST SIX MONTHS AND BECAUSE EARNINGS GROWTH HAS BEEN SO STRONG, YOU ARE ACTUALLY OUT OF A NOMINALIST -- OUT OF AN ANOMALOUS VALUATION SO WE HAVE FALLEN OUT OF TOP QUARTILE LEVELS, WHICH IS WHERE YOU SEE RISK REWARD BECOME NEGATIVE FOR TECH. ENTERING 2025, COMING OUT OF THAT TOP QUARTILE VALUATION ZONE , IT SETS UP A POSITIVE RISK REWARD AND FOR ALL THE TALK OF MOMENTUM STOCKS, FOR OUR DATA WITHIN TECHNOLOGY SPECIFICALLY I'M NOT SEEING ANOMALOUS BEHAVIOR. I'M NOT SEEING TOP QUARTILE RELATIVE PERFORMANCE AND I'M NOT SEEING TOP QUARTILE VALUATION ON MOMENTUM, MEANING THAT BECAUSE EARNINGS IN FREE CASH FLOW WERE SO STRONG, THERE'S NO VALUATION SITUATION WHERE YOU SAY YOU ARE OVERPAYING ON A CONSISTENT BASIS FOR TECHNOLOGY STOCKS THAT HAVE BEEN LEADERS IN THE S&P 500. CAROLINE: FEELS LIKE THERE ARE OPPORTUNITIES IN THE MAG SEVEN.
WHAT ABOUT THE NEXT YEAR DOWN WHEN SOFTWARE NAMES REALLY CAME TO THE RISE AS PEOPLE REALLOCATED FROM SEMICONDUCTOR INTO KILLER APPLICATIONS. IS THAT SOMETHING YOU WOULD LIKE TO SEE MORE OF? >> THAT'S A GREAT QUESTION AND A GREAT POINT. WITHIN THE THREE AREAS OF TECHNOLOGY, DATA ON SOFTWARE LOOKS VERY INTERESTING. GIVING -- GIVEN THE EARNINGS VALUATIONS IT'S THE BOTTOM HALF OF DISTRIBUTION WHEN YOU LOOK AT THE DATA BACK TO 1962. YOU SEE THAT SKEWED RISK REWARD ODDS FOR THE SOFTWARE SECTOR SPECIFICALLY.
WITH STRONG GROWTH AND VALUATION SUPPORT, IT'S VERY POSITIVE RISK REWARD FOR THE SECTOR. OF THE THREE, SOFTWARE IS THE ONLY ONE OF THOSE THREE INDUSTRIES THAT LOOKS LIKE THAT. AS WE ENTER 2025, THAT'S WHERE IT LOOKS LIKE THE OPPORTUNITIES ARE. CAROLINE: IN THE U.S. >> YES. CAROLINE: THIS U.S.
EXCEPTIONALISM, IS GOING TO DOMINATE 2025? >> IT LOOKS LIKE THAT TO ME. EVERYTHING OUTSIDE OF THE U.S., WHAT YOU WILL FIND IS THE VALUATION SCREEN LOOKS LIKE A QUANTITATIVE VALUE TRAPPED TO ME. WHEN YOU BUY INTO THE RELATIVE VALUATION ON EARNINGS OR CASH FLOW, THERE'S ONLY 30% ODDS ON PERFORMANCE. IT'S NOT ZERO, BUT AT THE SAME TIME IT'S HARD TO SAY THAT THE VALUATION IS A CRITICAL DRIVER IN THE REASON IT'S NOT IS BECAUSE OFTEN INTERNATIONAL STOCKS ARE CHEAP FOR A REASON. EVEN ON A SECTOR NEUTRAL BASIS, THE S&P 500 OUTGROWS THEIR INTERNATIONAL PEERS BY 300 TO 400 BASIS POINTS PER YEAR ON EARNINGS AND IT IS GROWING EVERY CYCLE.
UNLESS YOU THINK SOMETHING IS GOING TO CHANGE, AND THAT HASN'T BEEN THE CASE FOR 15 YEARS, RISK REWARD IS THE MORE IN THE U.S. CAROLINE: WHICH IS WHY HISTORICAL CONTEXT IS SO IMPORTANT. WE ARE SEEING THE MICRO NEWS ON INVESTMENT, BUT ALSO THE MACRO NEWS OF WAITING ON RATES TO GO DOWN.
WHAT DOES IT MEAN FOR THE CASH ON THE SIDELINES STILL WAITING TO ENTER? >> LET'S TALK ABOUT RATES BEING THE ALPHA FACTOR FOR THE MARKET. I THINK THAT PEOPLE GET CONFUSED WONDERING WHETHER A PLAYBOOK IS A GOOD THING OR A BAD THING. RATES ARE NOT THE CRITICAL DRUG -- DRIVER. EARNINGS GROWTH IS A CRITICAL DRIVER. SOMETIMES THE FED BECAUSE -- CUTS BECAUSE THEY HAVE TO, NOT GOOD FOR THE MARKET, SOMETIMES THEY CUT BECAUSE THEY CAN. WHAT YOU SEE IN A QUANTITATIVE DIFFERENTIAL IS THE STARTING POINT MATTERS A LOT. OUR STARTING POINT USUALLY
PREDICTS A MORE BULLISH SITUATION FOR THE S&P 500. YOUR STARTING LEVEL OF THE FEDERAL RESERVE MATTERS A LOT AS WELL. IT'S ESSENTIALLY A MATHEMATICAL DEFINITION OF FED PUT. IF IT'S HIGH RELATIVE TO INFLATION, THEY CAN DO SOMETHING TO THE EXTENT THAT THE ECONOMY IS HIT WITH A SHOT. THAT'S THE SITUATION ENTERING 2020 FOUR. MOST IMPORTANTLY, THE FED CAN
CHANGE WILLINGNESS TO LEND TO BANKS. BECAUSE THAT HAS BEEN IN A CONTRACTION AND IS LIKELY IMPROVING, EARNINGS GROWTH IS LIKELY TO BROADEN IN 2025 TO INCLUDE SMALL BUSINESSES THAT ARE LAGGING, SKEWING THE RISK REWARD POSITIVE BY THE END OF 2025. CAROLINE: HOW RISK HUNGRY DOES THE EDGE OF THE MARKET BECOME? MICROSTRATEGY HAS BEEN A LEVERAGED THAT ON BITCOIN OUTPERFORMED BITCOIN ITSELF AND IS NOW BEING ADDED TO THE NASDAQ. IS MORE MONEY NOW GOING TO
FLOAT TO THE RISKIER EDGES? >> THAT'S A GREAT QUESTION. WITHOUT TALKING ABOUT IDIOSYNCRATIC NAMES, WHEN I LOOK AT QUALITY, THE OPPOSITE OF WHAT YOU'RE TALKING ABOUT, IT'S BEEN A DARLING OF A FACTOR, ONLY UNDERPERFORMING THREE OF THE LAST 20 YEARS, LEAVING QUALITY STOCKS FAIRLY EXPENSIVE. THAT DOESN'T MEAN THE HIGH QUALITY STOCKS NEED TO UNDER 4 -- UNDERPERFORMED BY A LOT, BUT AS THEY START TO INFLECT LOWER, IT USUALLY LEADS TO UNDERPERFORMANCE IN THE FACTOR.
ANYONE WITH A QUALITY BIAS, I THINK ABOUT SCRUBBING THAT PORTFOLIO AND BETTER RISK REWARDS IN WHAT HAVE BEEN HISTORICALLY RISK NAMES. CAROLINE: UNBEATABLE, THANK YOU FOR COMING ON, DENISE. HAPPY HOLIDAYS. COMING UP, WE FOCUS A BIT MORE ON BITCOIN AND MICROSTRATEGY WITH CRYPTO AND BITCOIN ITSELF HITTING A RECORD HIGH OVER THE WEEKEND AND THE LONGEST WEEKLY WINNING RUN SINCE 2021. WE DIG IN. LATER IN THE SHOW WE ARE FOCUSING ON VIVENDI.
TODAY IT'S CURRENTLY DISTRIBUTING ITSELF UP AS IT BREAKS ITSELF INTO THREE DIFFERENT COMPANIES, BUT I WANT TO EXPLORE THAT VIVENDI TELECOM ITALIA STAKE. THIS AS THE BILLIONAIRE IN CHARGE IS TRYING TO MAKE HIS ASSETS WORK FOR HIM. CAROLINE: AND WE ARE EXPECTING TRUMPET TO SPEAK LIVE FROM MAR-A-LAGO IN A FEW MOMENTS TIME . ALL EYES ARE ON THAT REPORTED 100 BILLION DOLLAR INVESTMENT COMING FROM MASAYOSHI SON INTO THE UNITED STATES WITH 100,000 JOBS TO BE CREATED. WE WILL BRING YOU THAT WHEN IT OCCURS. FOR NOW LET'S LOOK AT ANOTHER
AREA RALLYING AROUND FROM, BITCOIN AT A RECORD HIGH. DIGITAL ASSETS WITH OPTIMISM OVER THE UPCOMING INCLUSION OF MICROSTRATEGY AND THE NASDAQ 100 AND WHAT IT MEANS FOR FUTURE PURCHASES. ST ARE GETTING INTO THE NASDAQ 100, MEANING TECHNICALLY THAT MORE FUNDS WILL HAVE TO ALLOCATE TO IT, RIGHT? >> IT REALLY REPRESENTS AN INSTITUTIONAL ACCEPTANCE OF BITCOIN, WHICH IS INTERESTING BECAUSE MICROSTRATEGY HAS LONG BEEN RIDICULED BY SPECIALISTS. AND THEN TODAY AGAIN FOR THEIR SIXTH STRAIGHT MONDAY THEY BOUGHT A TOTAL CACHET OF 45 BILLION. BUT IT'S REALLY THAT THE STOCK HAS RALLIED 500%. YOU ARE RIGHT, $400 BILLION IN ETF'S TRACKING ON THE NASDAQ 100. CAROLINE: THANK YOU. WE WILL HAVE TO CUT IT SHORT.
WE UNDERSTAND THAT TRUMP IS NOW STARTING HIS PRESS CONFERENCE IN MAR-A-LAGO. >> I'M SURE YOU MIGHT HAVE QUESTIONS. WE WILL DISCUSS A COUPLE OF POINTS. I WOULD BE SHOCKED IF YOU DIDN'T. VERY IMPRESSED. I'M HONORED TO WELCOME ONE OF THE MOST ACCOMPLISHED BUSINESS LEADERS OF OUR TIME, FOUNDER AND CEO OF SOFTBANK.
EVERYBODY KNOWS. MASAYOSHI SON RUNS ONE OF THE LARGEST COMPANIES IN JAPAN AND IS ONE OF THE MOST SUCCESSFUL INVESTMENT COMPANIES AND TECHNOLOGY IN THE WORLD. ONE OF THE MOST SUCCESSFUL INVESTORS IN THE WORLD. WE JUST CONCLUDED A VERY PRODUCTIVE MEETING AND TODAY I'M THRILLED TO ANNOUNCE THAT SOFTBANK WILL BE INVESTING $100 BILLION IN AMERICA, CREATING 100,000 AMERICAN JOBS AT A MINIMUM.
HE'S DOING THIS BECAUSE HE FEELS VERY OPTIMISTIC ABOUT OUR COUNTRY SINCE THE ELECTION. MANY OTHER PEOPLE ARE COMING IN WITH TREMENDOUS AMOUNTS OF MONEY . YOU PROBABLY NOTICED THAT THE POLE THAT WAS JUST TAKEN, BUSINESSES, AND 39 YEARS, NOTHING LIKE IT. BIGGEST INCREASE. SMALL BUSINESS OWNERS GAVE IT A 41% JUMP. THE BIGGEST JUMP WE HAVE HAD IN
39 YEARS. NOBODY HAS EVER SEEN ANYTHING LIKE IT. IT'S JUST A VERY -- THEY ARE VERY OPTIMISTIC.
THIS INVESTMENT IS A MONUMENTAL DEMONSTRATION OF CONFIDENCE IN AMERICA'S FUTURE AND IT WILL HELP ENSURE THAT ARTIFICIAL INTELLIGENCE, EMERGING TECHNOLOGIES, AND OTHER INDUSTRIES OF TOMORROW ARE BUILT, CREATED, AND GROWN RIGHT HERE IN THE USA. ONE OF THE BEAUTIFUL THINGS ABOUT MASAYOSHI SON IS THAT HE'S VERY MUCH INVOLVED IN EMERGING TECHNOLOGY, MAYBE KNOWS IT BETTER THAN ANYBODY. IT'S A GREAT HONOR. SOME OF YOU MAY REMEMBER THAT AFTER THE 2016 ELECTION, SOFTBANK INVESTED IN OUR COUNTRY, THEY KEPT THAT PROMISE IN EVERY WAY, SHAPE, AND FORM. NOW THEY ARE LOOKING TO DO THE POSSIBILITY OF GETTING MORE. I'M GOING TO ASK THEM TO SPEAK.
MASA, THANK YOU. >> >> APPRECIATE IT. THANK YOU. I'M VERY EXCITED. I WOULD LIKE TO CELEBRATE THE GREAT VICTORY OF PRESIDENT TRUMP. MY CONFIDENCE LEVEL TO THE ECONOMY OF THE UNITED STATES HAS TREMENDOUSLY INCREASED WITH HIS VICTORY.
SO, BECAUSE OF THAT, I AM NOW EXCITED TO COMMIT THIS $100 BILLION AND 100,000 JOBS TO THE UNITED STATES. THIS IS DOUBLE LAST TIME, AS PRESIDENT TRUMP SAID. PRESIDENT TRUMP IS DOUBLE DOWN. I'M GOING TO HAVE TO DOUBLE DOWN.
THIS IS MY CONFIDENCE LEVEL. IT HAS DOUBLED DOWN. SO, I AM TRULY EXCITED TO MAKE THIS HAPPEN. OF COURSE, BUSINESS IS IMPORTANT. TECHNOLOGY IS IMPORTANT. ONE MORE THING THAT I'M REALLY HOPING IS THAT THIS PRESIDENT TRUMP WOULD MAKE THE WORLD, BRING THE WORLD INTO PEACE AGAIN.
THAT'S MY ADDITIONAL HOPE. I THINK THAT HE WILL ACTUALLY MAKE IT HAPPEN. ANYWAY, I'M EXCITED TO GO , GO FOR MORE, RIGHT? >> I'M GOING TO ASK HIM NOW, MAKE IT 200 BILLION [LAUGHTER] [LAUGHTER] DOLLARS. CAN YOU DO THAT? >> WELL, MY PROMISE IS HUNDRED. NOW HE'S ASKING TO DO MORE.
I THINK, YOU KNOW, WITH THE DEALERSHIP, WITH YOUR SUPPORT, I'M GOING TO TRY TO MAKE IT HAPPEN. >> THAT'S GREAT. 200 BILLION DOLLARS IN INVESTMENTS. [LAUGHTER] >> HE'S A BRILLIANT GUY. UNBELIEVABLE JOB.
PEOPLE OF JAPAN, ALL OF THE WORLD, VERY PROUD. TREMENDOUS RESPECT. I WOULD BE SURPRISED IF YOU DIDN'T GO. >> I WILL REALLY TRY. I NEED YOUR SUPPORT.
>> YOU HAVE MY SUPPORT. YOU HAVE OUR COUNTRIES SUPPORT. >> FANTASTIC. FANTASTIC. THANK YOU. >> THE PEOPLE OF JAPAN, THEY ARE ALL WATCHING. >> I'M SURE OUR PEOPLE IN JAPAN ARE PROUD TO MAKE THE PARTNERSHIP OF THE U.S. AND JAPAN STRONGER. I'M VERY EXCITED TO MAKE THIS HAPPEN. THANK YOU, THANK YOU, THANK YOU. [CLAPPING]
>> AMAZING GENTLEMEN. LATER, INVESTOR. THOUGHTS FROM HIM. SO MANY COMPANIES COMING IN NOW. ANNOUNCING. ANNOUNCE THEMSELVES, WHEN THEY CAN DO IT. THEY WILL BE ANNOUNCING. AS I SAID, SMALL BUSINESS OPTIMISM TOOK A 41 POINT JUMP.
41 POINTS. IT WENT UP 41 POINTS. THAT'S UNHEARD OF. BIGGEST IN RECORDED HISTORY. AT LEAST A MINIMUM OF 39 YEARS. THAT'S GREAT. ON BEHALF OF THE AMERICAN PEOPLE, I WANT TO THANK MASA FOR HIS FAITH, WHAT'S HAPPENING IN OUR COUNTRY, WHAT'S HAPPENING AROUND THE WORLD. THERE'S A LIGHT AROUND THE WORLD. SOME REPORTERS SAID YOU KNOW IT'S TRUE, COUPLE OF THEM ARE NOT NECESSARILY FRIENDS OF MINE, BUT THEY SAID IT'S ACTUALLY TRUE THAT THERE IS A LIGHT SHINING OVER THE WORLD.
WE ARE TURNING TO HELPING STRONGLY AND GETTING THOSE HOSTAGES BACK IN ISRAEL, AS YOU KNOW, THE MIDDLE EAST. WE ARE WORKING VERY MUCH ON THAT. TRYING TO GET RID OF THAT HORRIBLE WAR GOING ON IN UKRAINE WITH RUSSIA. UKRAINE. RUSSIA. UKRAINE. WE ARE GOING TO GET A LITTLE PROGRESS. IT'S A TOUGH ONE. IT'S A NASTY ONE. IT'S NASTY. PEOPLE ARE BEING KILLED AT LEVELS NO ONE HAS EVER SEEN.
IN THE FIELDS. THE ONLY THING THAT STOPS A BULLET IS A BODY. A HUMAN BODY. THE NUMBER OF SOLDIERS KILLED ON BOTH SIDES IS ASTRONOMICAL. NEVER SEEN ANYTHING LIKE IT.
I GET REPORTS EVERY WEEK. IT'S NOT EVEN, YOU KNOW? IT'S LIKE, IT'S NOT GOING DOWN. IT'S A FLAT SURFACE. FLAT LAND. THAT'S WHY IT'S GREAT FARMING LAND.
IT'S THE BREAD BASKET FOR THE WORLD, ACTUALLY. BUT IT'S VERY FLAT. THERE IS NOTHING TO STOP A BULLET BUT A BODY. NO PROTECTION. NO NOTHING. WHAT IS HAPPENING THERE IS FAR WORSE THAN PEOPLE ARE REPORTING FOR BOTH SIDES. WE ARE DOING OUR BEST. WE HAVE BEEN WORKING TO PUT THE WORLD AT EASE. THE WHOLE WORLD IS BLOWING UP.
THERE WERE NO WARS WHEN I WAS IN OFFICE. YOU SAW THAT. SOFTBANK, STARTING DAY ONE, IMPLEMENTING A RAPID SERIES OF BOLD REFORMS TO RESTORE THE NATION TO FULL PROSPERITY. FULL PROSPERITY, BUILDING THE GREATEST ECONOMY THE WORLD HAS EVER SEEN. JUST AS WE HAD A SHORT TIME AGO. WE HAD THE GREATEST ECONOMY THE WORLD HAD EVER SEEN.
BLOWING AWAY EVERYBODY. OUR COUNTRY IS DOUBLING UP ON CHINA, DOUBLING ABOUT EVERYBODY. EVERYBODY KNOWS IT. IT SLOWED DOWN WITH COVID AT THE END. THERE WAS A SUBSTANTIAL INCREASE IN THE STOCK MARKET BIGGER THAN PRE-COVID, PREPARATIONS ARE UNDERWAY TO CUT MASSIVE NUMBERS OF REGULATIONS, ELIMINATING 10 OLD ONES FOR EVERY NEW ONE. WHEN YOU PUT A NEW ONE ON, YOU HAVE TO GET RID OF 10 AND WE CAN DO IT.
WE CUT MORE REGULATIONS THAN ANY PRESIDENT HAS EVER CUT BY FAR, ACTUALLY, APPROXIMATELY FIVE TIMES. SOME OF THOSE REGULATIONS WERE PUT BACK ON, UNFORTUNATELY. WE WILL CATCH UP QUICKLY. CATCH UP WITH IT. ONE THING I WOULD LIKE TO ASK THE BIDEN ADMINISTRATION, AS YOU HAVE PROBABLY HEARD, TWO EVENTS TOOK PLACE, WHICH I KID ABOUT. A FRIENDLY TAKEOVER. A FRIENDLY TRANSITION, AS THEY LIKE TO SAY. IT IS. THEY LIKE TO SAY THAT. IT IS.
TWO EVENTS TOOK PLACE THAT ARE TERRIBLE. IF PEOPLE DON'T COME BACK TO WORK, COME BACK TO THE OFFICE, THEY WILL BE DISMISSED. SOMEBODY IN THE BIDEN ADMINISTRATION GAVE A FIVE-YEAR WAIVER OF THAT.
FOR FIVE YEARS, PEOPLE DON'T HAVE TO COME BACK INTO THE OFFICE. IT INVOLVED 49,000 PEOPLE. FIVE YEARS, THEY DON'T HAVE TO GO. THEY SIGNED IT. IT'S RIDICULOUS. IT WAS LIKE A GIFT TO A UNION. WE ARE OBVIOUSLY GOING TO BE IN COURT TO STOP IT.
THE OTHER THING IS REALLY TERRIBLE. WE SPENT A TREMENDOUS AMOUNT OF MONEY ON BUILDING A WALL THAT WAS DESIGNED SPECIFICALLY BY THE BORDER PATROL. THEY NEEDED IT TO BE STEEL. IT'S HARD STEEL. A SPECIAL TYPE OF STEEL. VERY HARD TO CUT INSIDE OF THE STEEL. INSIDE OF THAT WE POUR CONCRETE. IT'S A STRONG CONCRETE. IT'S AS THOUGH YOU WERE
BUILDING A 60 STORY BUILDING. IT'S POWERFUL CONCRETE. AMAZING TECHNOLOGY ADVANCES IN CONCRETE. I KNOW THAT. TODAY WHAT YOU CAN DO WITH CONCRETE IS INCREDIBLE.
AND THEN WE PUT REBAR INSIDE OF THE CONCRETE. THE REBAR IS LIKEWISE HARD TO CUT. VERY EXPENSIVE PROCESS. VERY EXPENSIVE WALL. WE PUT ANTI-CLIMBING PLATES ON THE TOP. YOU SAW THAT. I DIDN'T LIKE THE LOOK OF IT.
BUT I WATCHED, WE HAD MOUNTAIN CLIMBERS TESTING IT. THEY WERE NOT ABLE TO GET OVER THE ANTI-CLIMBING PLATES. I GUESS WE PUT IT ON, I SAID. THE PLATE ON TOP. I NEVER LOVED THE LOOK OF IT. IT WORKS UNBELIEVABLY WELL. YOU HAVE TO DO IT. WE SPENT A LOT OF MONEY BUILDING IT. WE HAVE HUNDREDS OF MILES THAT
WE PUT UP. PEOPLE DON'T REALIZE. 571 MILES OF WALL. THAT'S WHY WE HAD SUCH GOOD RECORDS IN ADDITION TO THE FACT THAT MEXICO HELPED US WITH THEIR MILITARY TO KEEP PEOPLE OUT. THEY WERE VERY GOOD IN THE PAST. WE ORDERED AN ADDITIONAL 200 MILES OF WALL. IT'S VERY EXPENSIVE. IT'S DOUBLE THE PRICE OF WHAT IT WOULD'VE BEEN SIX YEARS AGO.
THE ADMINISTRATION IS TRYING TO SELL IT FOR FIVE CENTS ON THE DOLLAR. KNOWING THAT WE ARE GETTING READY TO PUT IT UP. WHAT THEY ARE DOING IS ALMOST A CRIMINAL ACT. THEY KNOW WE ARE GOING TO USE IT. IF THEY DON'T HAVE IT, WE HAVE TO REBUILD IT. IT WILL CAUSE DOUBLE. HUNDREDS OF MILLIONS OF DOLLARS.
YOU ARE TALKING ABOUT A LOT OF WALL. I BUILT MORE THAN I SAID I WOULD AND AFTERWARDS THEY SAID WE COULD DO SOME MORE BECAUSE IT'S LIKE WATER, PEOPLE ARE FLOWING THROUGH. THAT WOULD PRETTY MUCH REALLY TAKE CARE OF IT. AS YOU SEE, THEY ARE TRYING TO SELL IT FOR FIVE CENTS ON THE DOLLAR. THAT HAS NOTHING TO DO WITH THE
SMOOTH TRANSITION PEOPLE TRY TO STOP THE NATION. SPENDING HUNDREDS OF MILLIONS OF DOLLARS MORE. NOT EVEN TALKING ABOUT TILE. TIME. TIME WOULD BE LONG. HUNDREDS OF MILLIONS OF DOLLARS MORE.
PEOPLE HAVE COME BACK TO US. ONE GUY HAD THREE CENTS ON THE DOLLAR. THEY OFFERED TO SELL IT BACK TO US, FOR MORE MONEY THAN IT COSTS TO BUILD SUBSTANTIALLY. THEY MAKE A DEAL WITH THE U.S. TO BUY IT FOR PENNIES, THEY CALL US AND SAY -- WANT TO BUY IT BACK? WE WILL SELL IT BACK TO YOU FOR HUNDREDS OF DOLLARS A FOOT. HUNDREDS OF DOLLARS.
FROM PENNIES TO HUNDREDS OF DOLLARS. WE CAN'T LET THIS TAKE PLACE. I SPOKE WITH THE ATTORNEY GENERAL OF TEXAS AND THE SENATORS OF TEXAS. HOPEFULLY THEY WILL BE ABLE TO STOP IT. JUST THINK ABOUT HOW RIDICULOUS IT IS.
WE WERE THE WINNERS ON COMMON SENSE. THEY ARE TRYING TO MAKE A DEAL TO SEND IT AT HUNDREDS OF TIMES MORE THAN REPAID. ASKING JOE BIDEN TO STOP. IT WORKED AND IT WORKED WELL. IT WAS EXPENSIVE TO DO.
THIS IS SOMETHING THAT PEOPLE CAN'T EVEN BELIEVE IS HAPPENING. HOPEFULLY, JOE CAN STOP IT. WE WILL SOON UNLEASH AMERICAN ENERGY AT LEVELS NOT SEEN BEFORE. QUICK APPROVALS FOR PIPELINES, DRILLING, INFRASTRUCTURE.
IT WILL BRING IN THE PRICE OF ELECTRICITY. WE WILL BRING IT DOWN FAST. WE WILL CREATE CLEAN COAL. CLEAN COAL IS SOMETHING THAT IS REALLY TAKING OVER.
WE HAVE COAL THAT WILL LAST FOR 1000 YEARS. WE HAVE SO MUCH COAL. WITH THE PROCESS, IT BECOMES CLEAN COAL. POWERFUL ENERGY. VERY, VERY POWERFUL. WE WILL BE DOING A LOT OF CLEAN COAL FOR THE PEOPLE OF WEST VIRGINIA AND OTHERS. WYOMING. SO MANY GREAT STATES.
THEY WILL BE HAPPY TO HEAR IT. VERY MUCH INTO CLEAN COAL. I NEVER USE THE WORD COAL. I USE THE WORD CLEAN COAL. I WILL KEEP MY PROMISE TO PASS TAX CUTS FOR FAMILIES AND BUSINESSES WHO CREATE JOBS IN AMERICA. AS YOU KNOW, WE ARE LOOKING FOR TAX CUTS. WE BROUGHT IT DOWN FROM 44 PERCENT, 42 PERCENT IN SOME CASES. WE BROUGHT IT ALL THE WAY DOWN TO 29% AND NOW WE ARE BRINGING IT DOWN TO 15% BUT ONLY IF THEY BRING THEIR PRODUCT OR THEIR CAR TO THE UNITED STATES, WHATEVER THEY ARE DOING. PEOPLE WERE THRILLED.
THE SMARTEST PEOPLE IN WASHINGTON CALL ME TO SAY WHERE DO YOU GET THAT IDEA AND IT DOESN'T SEEM COMPLICATED, RIGHT? IT'S LIKE THE PAPERCLIP. ONE GUY THOUGHT OF IT, EVERYBODY LOOKED AT IT AND SAID -- WOW. THAT WAS A GOOD IDEA. WHY DIDN'T I THINK OF IT? WE ARE BRINGING IT DOWN SIX MORE POINTS. THAT WILL PUT US REALLY AT THE
BEST LEVEL WE'VE EVER HAD FOR BRINGING BUSINESS. NEVER BEEN DOWN TO THAT LEVEL. WE'LL BE AMONG THE LOWEST TAXED. A LOT OF BUSINESSES WILL COME IN. BETWEEN THE TAXES AND THE TARIFFS WE WILL HAVE BUSINESS LIKE NO ONE HAS EVER SEEN IN THIS COUNTRY BEFORE.
THAT'S WHY WE ARE HAVING A 41 RECORD AND OPTIMISM FROM SMALL AND BIG BUSINESSES. I WILL KEEP MY PROMISE TO PASS HISTORIC TAX CUTS FOR FAMILIES, WORKERS, AND BUSINESSES WHO CREATE JOBS IN AMERICA. ANY BUSINESS THAT INVESTS ONE BILLION OR MORE IN THE UNITED STATES WILL BE ELIGIBLE FOR FULLY EXPEDITED PERMITS AND APPROVALS, INCLUDING ENVIRONMENTAL APPROVALS FROM THE FEDERAL GOVERNMENT. WHEN COMPANIES COME IN, IF THEY INVEST $1 BILLION OR MORE, AND THERE WILL BE MANY OF THEM GOING INTO DETROIT AND A LOT OF PLACES WHERE WE WANT THEM. YOU SAW HOW WELL I DID WITH THE AUTOWORKERS. HOW WELL I DID WITH THE TEAMSTERS. ALSO THE NONUNION. RECORDS. 98%.
97%. NO ONE EVER GOT NUMBERS LIKE THAT. WE ARE BRINGING BUSINESS BACK. THEY ARE ALL COMING BACK. OVER YEARS OF STUPIDITY WE LOST THEM. I CALL THEM THE YEARS OF STUPIDITY. THE DECADES OF STUPIDITY. ELON MUSK HAS BEEN WORKING VERY HARD WITH VARIOUS PEOPLE. THEY WILL GO TO ELIMINATE
HUNDREDS OF BILLIONS IN WASTE AND FRAUD. I CAN GIVE YOU AN EARLY REPORT, THEY ARE FINDING THINGS YOU WOULDN'T EVEN BELIEVE. LOOKING LIKE MAYBE $2 TRILLION. IT WILL HAVE NO IMPACT. IT WILL ACTUALLY MAKE LIFE
BETTER. BUT IT WILL HAVE NO IMPACT ON PEOPLE. IT'S NOT LIKE WE WILL NEVER CUT SOCIAL SECURITY AND THINGS LIKE THAT.
IT'S JUST WASTE, FRAUD, AND ABUSE. THEY WILL RESTORE THE SOVEREIGN BORDERS OF THE UNITED STATES. ILLEGAL IMMIGRATION IS COSTING US TRILLIONS PER YEAR. IT'S A COSTS THAT NO ONE HAS EVER SEEN ANYTHING LIKE. I DON'T KNOW. HOW CAN YOU BE SATISFIED?
RELEASING PRISONERS INTO THE UNITED STATES, THINK OF THIS. YOU ARE RELEASING PRISONERS FROM JAILS ALL OVER THE WORLD. NOT JUST FROM SOUTH AMERICA. THE CONGO. I TALK ABOUT IT ALL THE TIME. THEY ARE A VERY BIG CENTER OF PEOPLE. FROM ALL OVER THE WORLD THEY
SEND PRISONERS OUT OF THEIR JAILS. SOME OF THOSE JAILS ARE EMPTY AND THEY WILL BE IF THIS EVER CONTINUES. I SPOKE WITH THE PRESIDENT OF MEXICO. I SPOKE WITH JUSTIN TRUDEAU IN CANADA. WE TOLD THEM. IT'S NOT FAIR.
IT'S NOT RIGHT. YOU CAN'T LET THESE PEOPLE COME INTO THE COUNTRY. THEY UNDERSTAND. THEY ARE VERY MUCH ON NOTICE. THEY HAVE TO STOP IT FROM HAPPENING. WE LOSE A LOT OF MONEY TO
MEXICO, TO CANADA. WE ARE SUBSIDIZING CANADA. WE ARE SUBSIDIZING MEXICO. THAT CAN'T GO ON. I GET ALONG WITH THOSE PEOPLE VERY WELL, BUT WE CAN'T LET THAT HAPPEN. WHY ARE WE SUPPORTING AND GIVING OTHER COUNTRIES HUNDREDS OF BILLIONS OF DOLLARS? IT'S NOT FAIR. IT'S NOT RIGHT. THE PEOPLE OF MEXICO AND CANADA FULLY UNDERSTAND THAT. WE TALKED ABOUT IT BEFORE, BUT NOW THEY UNDERSTAND IT.
FIX THE COVID SITUATION, THAT'S WHAT WE DID. NOW WE ARE DOING IT FROM THE BEGINNING. HOWARD WILL BE LARGELY IN CHARGE. HOWARD IS TERRIFIC. HE'S DONE A FANTASTIC JOB. CAROLINE: NOW WE ARE LEAVING DONALD TRUMP, WHO IS DISCUSSING HOWARD LUTNICK. HE HAD DISCUSSED TAX CUTS THAT WERE PROMISED. ALSO ASKED THE CURRENT
PRESIDENT TO STOP SELLING BORDER WALL PARTS. HE'S SEEKING A RESTRAINING ORDER , BASICALLY CRITICIZING THE ADMINISTRATION SELLING BORDER WALL PARTS, HE SAYS. FIGHTING WHAT HE CALLED THE FEDERAL WORKER RETURNED TO OFFICE WAIVER. HE NAME CHECKED VIVEK AND MUSK. AND HE DISCUSSED STOPPING THE WAR UKRAINE. ALSO WANT TO GO BACK TO THE BUSINESS THAT WAS ANNOUNCED BY THE CEO OF SOFTBANK.
THE FOUNDER CAME ON TO TALK ABOUT THE $100 BILLION THAT WILL BE INVESTED INTO THE UNITED STATES OVER THE NEXT FOUR YEARS. HE IN FACT SAID HE WOULD TRY TO MAKE IT EVEN BIGGER. LET'S GET TO MIKE SHEPPARD. LET'S FOCUS FIRST ON THE TECH SIDE OF ALL OF THIS. IT'S DÉJÀ VU. WE SAW HALF OF THE AMOUNT PROMISED AND THEY ARE SET TO HAVE BEEN DELIVERED BY MASA BACK IN 2016. MIKE: IT'S AN ECHO OF WHAT WE SAW EIGHT YEARS AGO WHEN HE MADE THAT PROMISE AT TRUMP TOWER OF AN INVESTMENT OF 50,000 JOBS.
AS PETER DISCUSSED EARLIER, HE LARGELY MADE GOOD ON THAT. TRUMP IS PUTTING HIM ON THE SPOT TODAY A LITTLE BIT. ALREADY INKING THE $100 BILLION PROMISE. $100,000 JOBS. TRYING TO GET HIM TO DOUBLE EVEN THAT.
WE HEARD PETER TALK ABOUT HOW MASAYOSHI SON MAY NOT HAVE THAT MUCH IN THE TANK TO PULL IT OFF, BUT AT THE SAME TIME WE HEARD TALK ABOUT THE CONFIDENCE HE HAS IN THE INCOMING ADMINISTRATION. MAYBE THIS WILL BE A WAY TO HELP HIM GAIN SOME OF THOSE INVESTMENTS AND THE CAPITAL THAT HE NEEDS. CAROLINE: THE SUPPORT OF THE NEXT ADMINISTRATION IN TRUMP AS PRESIDENT SHOULDN'T COME AS A SURPRISE, MIKE? MIKE: NOT AT ALL. WHAT WAS INTERESTING WAS HOW TRUMP AFTER MASA LEFT THE STAGE TALKED ABOUT HIS COMMITMENT TO TRYING TO REVIVE AND REINVIGORATING THE ECONOMY FROM THE BUSINESS PERSPECTIVE. NOT ONLY BY CUTTING CORPORATE TAX RATES BUT BY CUTTING RED TAPE.
JUST LAST WEEK WE HEARD HIM MAKE THE PLEDGE THAT HE REITERATED TODAY THAT ANYONE WHO INVESTED ONE BILLION OR MORE IN THE U.S. WOULD GET SPEEDY PERMIT REVIEW. THAT HAS BEEN AN ISSUE WE HAVE HEARD ENERGY AND TECH COMPANIES BRING UP. THE ONES GETTING INTO A I HAVE SUCH ENERGY DEMANDS THAT THEY NEED FOR THEIR DATA CENTERS. WITHOUT THAT KIND OF SUPPORT TO SPEED UP THE PROJECTS, THEY CAI AMBITIONS AT RISK OF BEING SLOWED. CAROLINE: ON TRUTH SOCIAL HE DISCUSSED THE ONE BILLION OR MORE ALLOCATED TO THE UNITED STATES GETTING EXPEDITED APPROVAL AND PERMITTING. IT IS SEEMINGLY ALL ABOUT AI, ABOUT ENERGY WHEN IT COMES TO THE INVESTMENT FROM MASA. LAST TIME IT SEEMED LIKE A
WHOLE HOST OF PEOPLE TALKING TO HUNDREDS OF COMPANIES WITH SOFTBANK PUTTING MONEY INTO IT. WE ALREADY SEE THE MONEY BEING ALLOCATED TO AI, FOR EXAMPLE. ARE WE SUPPOSED TO EXPECT THAT STARTUPS AND PUBLICLY TRADED COMPANIES HAVE DONE ANYTHING DISCERNING? MIKE: IT'S TOUGH TO SAY RIGHT NOW EXACTLY HOW THIS MONEY WOULD BE APPLIED. IF IT REFERS BACK TO PLANNED INVESTMENTS, WE JUST DON'T HAVE THOSE DETAILS. IN A WAY, JUST LIKE THE POST ON
TRUTH SOCIAL, WE REALLY DON'T KNOW EXACTLY HOW HE INTENDS TO DO THAT. YOU WILL HAVE TO SEE HOW THIS UNFOLDS AND THERE WILL BE MORE TO COME FROM MASAYOSHI SON, HOW MUCH COMES, HOW QUICKLY, AND TO WHO. THERE ARE A LOT OF START UPS, INCLUDING THOSE WITH TIES TO THE ADMINISTRATION, WHO WILL BE VERY INTERESTED IN THAT TYPE OF PARTNERSHIP. CAROLINE: MIKE SHEPPARD, ALWAYS A JOY. COMING UP, MORE ON THE FUTURE ON I HEART. THIS IS BLOOMBERG.
WE ARE BRINGING YOU THE LATEST OUT OF TRUMP SPEAKING OUT OF MAR-A-LAGO AT A PRESS CONFERENCE, DISCUSSING THE FUTURE OF TIKTOK AT THE MOMENT. KEEP A CLOSE EYE ON THAT. HE SAID THEY WOULD BE TAKING A CLOSE LOOK AT TIKTOK, THEY DID NOT GET THE RESULT THEY WANTED TO SEE ON THE POTENTIAL DIVESTMENT BAN LIKELY TO COME IN JANUARY 19, THE DAY BEFORE TRUMP IS INAUGURATED. TAKING A LOOK AT THE SOCIAL MEDIA PLATFORMS, TO SHOT. WE WILL BRING US OUT OF THAT
PRESS CONFERENCE. IN THE MARKETS WE ARE ON A RISK ON ATTITUDE. CHIPMAKERS, BROADCOM, LEADING HIGHER. BITCOIN IS LEADING UP SOME 3%,
4% WITH MICROSTRUCTURE BEING INDUCTED INTO THE NASDAQ. MORE MONEY IS GOING IN THERE FROM ALLOCATED FUNDS. WHAT DOES THAT MEAN? MORE MONEY LIKELY TO BE SPENT ON THAT PARTICULAR NAME. GOING BACK TO WHAT HAS BEEN THE STORY OF THE DAY, INVESTMENT INTO THE UNITED STATES FROM SOFTBANK. MASA WAS JUST THERE, THE CEO OF SOFTBANK, COMMITTING TO TRYING TO HUNDRED BILLION DOLLARS, BUT COMMITTING TO $100 BILLION IN AI ENERGY INFRASTRUCTURE AFTER THE $50 BILLION THAT HE PROMISED BACK IN 2016.
DOWN ON THE NEWS, OFF BY 5%, AS THEY UNDERSTOOD THAT QUALCOMM HAD THEIR FIRST DAY IN COURT, VYING OVER THE FUTURE OF THEIR RELATIONSHIP. MAYBE SOME HYPOTHETICALS AS TO WHAT IT COULD MEAN IN TERMS OF THE HOLDING THAT SOFTBANK HAS IN IT. LET'S ALSO DISCUSS WHAT IT MEANS FOR THE LANDSCAPE MORE BROADLY IN THE UNITED STATES FROM A VC PERSPECTIVE. THERE IS PLENTY OF NEWS WHEN WE THINK ABOUT AMERICAN AI STARTUPS. WE'VE GOT UP PERFECT VOICE WITH MATT. YOU ARE SOMEONE WHO HAS JUST BEEN ALLOCATED INTERESTINGLY TO A PUBLIC COMPANY BASED IN EUROPE. THINKING ABOUT AI
INFRASTRUCTURE AND ACCESS TO THE CLOUD, YOU ARE THINKING ABOUT TURF WARFARE OUT THERE FOR ALLOCATING MONEY TO GENERATIVE AI. THIS IS JUST GOING TO ADD TO THE PARTY, RIGHT? MATT: ABSOLUTELY. WE ARE BIG BELIEVERS THAT WE ARE ONLY IN THE EARLY INNINGS OF LAYING DOWN THAT INFRASTRUCTURE THAT WILL BE REQUIRED TO SUPPORT THIS MASSIVE TECHNOLOGICAL WAVE OF AI AND THIS COMMITTED INVESTMENT DOESN'T SURPRISE ME AT ALL. WE NEED THAT INFRASTRUCTURE AND I'M SURPRISED TO SEE MORE OF IT BEING LAID DOWN. CAROLINE: YOU JUST MADE THIS ALLOCATION OF FUNDS INTO A PUBLICLY TRADED ALLOCATOR IN THE CLOUD THAT'S ALREADY OUT THERE IS A BIG PIVOT FROM THESE COMPANIES THAT WE WERE LOOKING AT, BITCOIN MINING NOW GETTING INTO THE WORLD OF CLOUD COMPUTING, BUT WHAT NEXT IN TERMS OF THOSE AREAS? MATT: WE BROADLY INVEST IN TWO DIFFERENT ASSETS OF AI. COMPANIES LIKE SCALE AND THE INFRASTRUCTURE LAYER, BUILDING THE DATA IN. WE CAN'T FORGET ABOUT THE
APPLICATIONS RUNNING ON THE INFRASTRUCTURE. WE HAVE SEEN GREAT OPPORTUNITIES IN THE ENTERPRISE IN CONSUMER ALLOCATIONS. THE MOST RECENT INVESTMENT WAS INTO A COMPANY CALLED SPEAK, SUPPORTING LANGUAGE LEARNING FOR AI. CAROLINE: THAT'S THE TUSSLE, RIGHT?
AT THE MOMENT A LOT OF MONEY WAS ALLOCATED TOWARDS BUILDING PICKS AND SHOVELS, THE INFRASTRUCTURE. MANY PEOPLE FELT THAT THE VALUATION HAD GONE OUT OF WHACK. DO YOU THINK THAT WE ARE THERE AND PEOPLE DON'T SEE THE APPLICATION RIGHT NOW, THE REAL PRODUCT? MATT: ABSOLUTELY. WE SEE IT FROM THE GROUND UP. ALTHOUGH IT IS STILL THE EARLY INNINGS AND A LOT OF THE EMPHASIS HAS BEEN ON THE INFRASTRUCTURE WHERE WE CAN GET THE VALUE OUT OF THESE MODELS, PARTICULARLY ACROSS 25 AND 26 YOU WILL SEE APPLICATIONS SPRINGING UP FOR THE ENTERPRISE CONSUMER DRIVING REAL VALUE TO THE END USER. CAROLINE:
WITH ENTERPRISE YOU HAVE SALESFORCE ALL IN. MICROSOFT TRYING TO OPERATE COPILOTS. WHERE IS THE SPACE? OR IS IT THAT A LOT OF THESE STARTUPS WILL BE EATEN UP BY THESE BIGGER ENTERPRISE COMPANIES? MATT: THAT'S A GREAT QUESTION. ON THE INFRASTRUCTURE LAYER WE SEE THAT BY PAIRING THEIR HARDWARE ENGINEERS AGAINST THE PROBLEM OF STANDING UP THAT INFRASTRUCTURE, DOING IT WITHIN AI SPECIFIC APPROACH WE ARE ABLE TO OFFER A LEVEL OF FLEXIBILITY THAT LARGE INCUMBENTS JUST DON'T HAVE IN THE ECOSYSTEM TODAY. MEANING THAT PEOPLE CAN COME TO US WHO NEED LARGE AMOUNTS OF COMPUTE THAT ONE BARE METAL AND PEOPLE CAN COME TO US IF THEY WANT ON DEMAND FLEXIBLE EXPERIENCES WITH INFRASTRUCTURE. YOU SEE THAT INNOVATION TACKLING THE HOLES IN THE INCUMBENCY AND I EXPECT TO SEE THE SAME THING FROM SALESFORCE, DEFENDING ITS TERRITORY WITH A TON OF ACTIVITY , GOING AFTER THEIR EXACT MARKETS.
WE WILL CONTINUE TO SEE IT. CAROLINE: WHAT'S THE NEXT OVER ALLOCATED AREA? WE HAVE GOTTEN WAY TOO INTO THE WEEDS WHEN IT CAME TO SEMI CONDUCTORS. IS IT ALL GOING TO PARLAY? MATT: I DON'T THINK IT IS OVERHYPED. THE REALITY IS WE ARE IN THE EARLY INNINGS AND EXPECTATIONS ARE HIGH ON WHAT WILL BE DONE IN THAT ARENA AND IT'S EASY TO POINT OUT THE FLAWS IN IT TODAY, BUT I TEND TO LOOK AT THE PLACE WHERE THE VALUE WILL BE CREATED OVER THE NEXT DECADE, WHERE I THINK YOU WILL BE SEEING MATURE AGENTS HITTING THE MARKET. CAROLINE: WHEN THEY ARE READY TO PURPOSE, YOU CAN COME TALK TO US SOME MORE. ACCEL PARTNER AND CEO.
SERVICE TITAN, BRINGING BIG WINDFALLS FOR EARLY INVESTORS, INCLUDING $1 MILLION GOING TOWARDS ICONIC GROWTH, FOR EXAMPLE, 800 MILLION GOING TO PARTNERS. THIS IS ALL ACCORDING TO SOURCES . KATIE, BRING US THE BREAKDOWN OF WHO THE BIG WINNERS WORK. IT WAS OF COURSE A LISTING THAT POPPED SO MUCH THAT SOME SET MONEY WAS LEFT ON THE TABLE.
>> SURE. ABSOLUTELY. A FEW THINGS TO GET OUT HERE, RISK TITAN IS AN MLIV BASED SOFTWARE -- LA-BASED SOFTWARE PROVIDER THAT HAS BEEN AROUND FOR A WHILE. EVEN THOUGH, YOU KNOW, THEY WERE VALUED HIGHLY IN SOME RECENT ROUNDS, LIKE $10 MILLION, BECAUSE OF THE BATTERY VENTURES THEY PURCHASED SO MANY SHARES WHEN THEY WERE A YOUNG STARTUP. THEY STAND TO GAIN OVER $1
BILLION IN THIS INVESTMENT. EVEN THOUGH THEY HAVE ABOUT $900 MILLION IN SHARES, IT COSTS ROUGHLY 60 MILLION TO WIRE THE SHARES. CAROLINE: ALL THINGS ON THOSE SOTHEBY ALLOCATIONS IN THOSE WHO REAP THE REWARDS, WE REALLY APPRECIATE IT.
COMING UP, AI ENERGY DEMAND SHOCK AND HOW BUSINESSES ARE CAROLINE: THE I -- AI BOOM HAS CAUSED ONE UNINTENDED CONSEQUENCE, AND ENERGY DEMAND SHOCK THAT COMES FROM UTILIZING THE FUTURES. WE HAVE MORE NOW ON A DEEP DIVE INTO THE IMPLICATIONS OF ARTIFICIAL INTELLIGENCE, ONE THAT MASAYOSHI SON MIGHT BE LOOKING TO FINANCE? >> WHAT COINCIDENTAL TIMING FOR US TO HAVE JUST PUT OUT THIS PIECE ON THE MASSIVE INFRASTRUCTURE DEMANDS OF AI. NOT JUST ENERGY, RIGHT? WE'RE TALKING ABOUT METALS, MINING, LAND, REAL ESTATE, HUMAN BEINGS, DATA, DATA CENTERS, STEEL, COPPER, GOLD, ALUMINUM. IF YOU PUT THEM ALL TOGETHER LIKE WE DID IN THAT MASSIVE SUPPLY CHAIN PIECE FROM FRIDAY, YOU CAN UNDERSTAND. IT'S NOT SURPRISING FOR SOMEONE TO SAY I'M DROPPING $100 BILLION IN THE U.S., WHOLE INDUSTRY WILL NEED IT.
ONE MIGHT ARGUE THAT THESE PLANS WERE ALREADY IN THE MAKING. CAROLINE: WE REPORTED LONG AND HARD ABOUT SAM ALTMAN TRYING TO GATHER A TABLE OF INTERNATIONAL INVESTORS. A COALITION. HOW MUCH DID THEY LOOK ON THIS AS BEING BUILT IN THE UNITED STATES? HOW GEOPOLITICALLY EXPOSED CAN YOU STILL BE? LYNN: THAT'S A GOOD QUESTION AND THERE IS A NARRATIVE IN THE TECH COMMUNITY RIGHT NOW THAT ACKNOWLEDGES THAT NO SPECIFIC COUNTRY HAS ALL THE RESOURCES NECESSARY TO BUILD AND DOMINATE AI AS A HUB. SO, WE WILL HAVE TO LOOK FOR ALLIES. WE WILL HAVE TO LOOK FOR COALITIONS AMONG LIKE-MINDED COUNTRIES. THAT IS WHAT THE TECH COMMUNITY AND EXECUTIVES LIKE OPENAI AND NVIDIA ARE TELLING D.C.
OH AND THE TECHNOLOGY TO CONTROL IT FOR A FEW WAYS. CAROLINE: DO YOU THINK THAT YOUR STORY SHOCK TO ANYONE? >> HOPE SO. IF THERE IS ONE MESSAGE I WANT TO SEND OUT OF THAT IT'S THAT FOR ALL OF THE TALK OF AI MAKING THE WORLD MORE EFFICIENT, QUICKER, LESS HUMAN RESOURCES INTENSIVE, IT'S ACTUALLY AN INCREDIBLY RESOURCE INTENSIVE INEFFICIENT TECHNOLOGY. CAROLINE: GREAT STORY. GO READ IT. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DON'T FORGET OUR PODCAST. THIS
2024-12-17 19:09
