Tesla Sales Slump TikTok Deadline Looms Roblox CEO Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK I AM CAROLINE HYDE THIS IS BLOOMBERG TECHNOLOGY. COMING UP TESLA SHARES SAINT AFTER ITS DELIVERIES FALL 13% OVER LAST QUARTER, THE LOWEST SINCE 2022. PLUS INVESTORS BRACE FOR TARIFFS AHEAD OF PRESIDENT TRUMP ROSE GARDEN ANNOUNCEMENT TODAY. WHAT THIS MEANS FOR THE GLOBAL TECH TRADE AND CHINESE U.S. RELATIONS. AND WE SIT DOWN EXCLUSIVELY
WITH THE CEO OF ROBLOX IS THE COMPANY ANNOUNCES NEW PARENTAL CONTROLS AND WE DISCUSS IT'S AT PARTNERSHIP WITH GOOGLE. WE CHECK IN ON THE MARKETS THAT FLUCTUATE AND HAVE THE ALL ANNOUNCEMENTS FROM THE ROSE GARDEN. PRESIDENT TRUMP SAID TO UNVEIL WHAT LIBERATION DAY MEANS.
WE ARE FLAT ON THE DAY. DIG INTO SOME OF THE KEY MOVERS. TESLA OF 1.6%. LET'S DIG INTO THE DETAILS OF WHAT PEOPLE ARE SAYING IS A PRODUCTION ISSUE BUT ALSO A POLITICAL ISSUE. IT IS THE WORST SALES SLUMP FOR TESLA GOING BACK TO 2022. THEY DELIVER JUST 336,000
VEHICLES, FALLING SHORT OF THE AVERAGE ESTIMATED BY ANALYST. WE GO TO BLOOMBERG'S CRAIG TRUDELL. ANALYSTS HAD BRACED FOR A SLOW DOWN BUT NOT THIS BIG OF A SLOWDOWN. CRAIG: YEAH. THERE WERE SOME OF THEM PREDICTING YEAR-OVER-YEAR GROWTH WHICH SEEMS HARD TO BELIEVE WHEN YOU LOOK AT THE PUBLICLY AVAILABLE FIGURES WE HAD THROUGHOUT THE QUARTER, ESPECIALLY IN EUROPE. WE SAW SUBSTANTIAL DECLINES IN SOME OF THE BIGGEST EB MARKETS. -- SOME OF THE BIGGEST EV
MARKETS. THIS WAS PRETTY WIDESPREAD. WE SAW IN CHINA WHOLESALES OUT OF THE SHANGHAI PLANT WERE DOWN MONTH OVER MONTH. AS YOU ALLUDED TO THIS IS A MATTER OF ELON MUSK'S POLITICS COMING INTO PLAY BUT ALSO MORE MUNDANE FACTORS LIKE CHANGING OVER THE MODEL Y, WHICH WE WILL BETTER GET A HANDLE ON JUST HOW MUCH ONE FACTORED INTO THIS VERSUS THE OTHER AS THE WEEKS -- IN THE COMING WEEKS WE GET A BETTER SENSE OF HOW WELL THE NEW MODEL Y IS DOING. ERIC:
MONDAY -- CAROLINE: MONDAY IS COMPETITION, MOST FIERCELY IN CHINA. CAN YOU BREAK OUT WHERE THE GEOGRAPHIES WERE WORST? CRAIG: THE COMPANY DOES NOT OFFER A REGIONAL BREAKDOWN BUT WE KNOW IN CHINA BYD IS JUST MOPPING UP. WE ARE SEEING THEM FULL FURTHER AHEAD FROM THE COMPETITION, TESLA AND OTHERWISE.
WE HAVE SEEN TURN A LOT OF HEADS AND PULL AWAY CONSUMERS THAT MIGHT HAVE OTHERWISE LOOKED AT BUYING A TESLA. ONE OF THE CHALLENGES YOU ARE SEEING FOR THE COMPANY'S THEY DO NOT HAVE AS BROAD A LINEUP OR AS AFFORDABLE A LINE AS BYD DOES. THEY ARE NOT THE VOLUME PLAYER THEY USED TO BE IN THAT MARKET AND CANNOT KEEP UP WITH BYD. ERIC: CHINA'S -- CAROLINE:CHINA'S PASSENGER CAR ASSOCIATING RELEASING DATA THAT SHOWS AN 11% DECLINE FOR TESLA. TELUS THE NUANCE OF WHAT WE
EXPECT TO HEAR FROM ELON MUSK ON THIS. IN THE PAST THEY'VE TRIED TO DIRECT US TO WHY THEY HAVE SLOWED DOWN AND BLAMING IN MANY PARTS THE PRODUCTION OVERHAUL. WILL WE HEAR FROM HIM ON THESE NUMBERS? CRAIG: ONE OF THE THINGS THAT IS INTERESTING TO ME ABOUT THESE FIGURES IS PRODUCTION EXCEEDED DELIVERIES BY A SUBSTANTIAL MARGIN.
THE EXCUSE THIS WAS JUST PRODUCTION CONSTRAINT THAT WAS AT ISSUE DOES NOT SEEM TO WORK OUT. YOU WOULD EXPECT THERE TO BE SOME LAG IN THAT SOME VEHICLES HAVE TO BE PRODUCED AND THEN SHIPPED TO WHERE THEY END UP AT TESLA STORES AND WITH CUSTOMERS, BUT FOR THIS GAP TO BE THIS SIGNIFICANT IN A QUARTER WHERE WE KNEW THE MODEL Y CHANGEOVER WAS HAPPENING, THAT IS DEFINITELY NOTABLE. THE OTHER THING WE ARE LIKELY TO HEAR FROM ELON MUSK IN ADDITION TO THE MODEL Y EXCUSE IS FOR HIM TO PIVOT TO TALK ABOUT AI AND AUTONOMOUS DRIVING AND FLIP TO THE ROBOTAXI EVENT THEY HAVE SAID IS COMING IN JUNE THAT WILL START GIVING PEOPLE RIDES IN UNSUPERVISED SELF DRIVING TESLA'S IN AUSTIN. THAT IS POTENTIALLY A CATALYST. CAROLINE: AND WHY CATHIE WOOD REMAINS ABLE. -- REMAINS A BULL.
IN ANOTHER BLOW TO ELON MUSK HIS WISCONSIN SUPREME COURT CANDIDATE WAS DEALT A RESOUNDING LOSS IN THE JUDICIAL RACE, DESPITE ELON MUSK PUTTING MORE THAN $20 MILLION INTO THE CAMPAIGN. FORMER STATE ATTORNEY GENERAL LOSS TO THE CIRCUIT COURT JUDGE SUSAN CRAWFORD WHO LEAD WITH 55% OF THE VOTE. IT WAS NOT A FULL WIN FOR DEMOCRATS. IN FLORIDA SPECIAL ELECTIONS THEY FELL SHORT IN THEIR BIDS FOR CRITICAL HOUSE SEATS. LET'S TURN OUR ATTENTION TO WHAT ALSO ELON MUSK MUST BE NAVIGATING WHICH IS PRESIDENT TRUMP'S TARIFF PLAN. THIS AS HIS TEAM'S IT'S BARELY -- IS APPARENTLY STILL FINALIZING LEVEL OF IMPORT TAXES.
THIS COULD BE A MAJOR SHOCK COMPARED TO THE U.S. TARIFF RATE HISTORICALLY. BLOOMBERG'S MIKE SHEPPARD JOINS US FOR MORE. WHAT ARE THE FINAL DETAILS WE
ARE STILL EXPECTING TO BE IRONED OUT? MIKE: THOSE ARE THE THINGS WE'RE TRYING TO FIND OUT AT THIS HOUR. WE ARE HOLDING OUR BREATH IN WASHINGTON AND WALL STREET TO SEE WHAT WILL EMERGE FROM THOSE DELIBERATIONS BY THE PRESIDENT AND HIS TEAM. THEY ARE LOOKING AT A CHOICE BETWEEN THREE PATHS. WHAT IS THE RECIPROCAL TARIFFS WE HAVE HEARD PRESIDENT TRUMP TALK ABOUT IN RECENT WEEKS, THIS IDEA THAT WE CHARGE THEM WHAT THEY CHARGE US. IN OTHER WORDS CUSTOMIZING TARIFF LEVELS DEPENDING ON WHAT THEY SEE AS A RELATIVE TRADE BARRIER WITH U.S. GOODS.
THE NEXT WOULD BE DOING SOMETHING THAT IS MORE LIKE A TIERED SYSTEM WHERE YOU HAVE A LOWER TARIFF RATE FOR COUNTRIES THAT HAVE FEWER TRADE BARRIERS WITH THE U.S. AND A HIGHER TARIFF RATE FOR COUNTRIES THAT HAVE MORE TRADE BARRIERS. THEN THERE IS THE THIRD OPTION OF SOMETHING THAT LOOKS MORE LIKE A FLAT TARIFF, ONE THAT WOULD BE JUST ONE LEVEL, SAY 20% WORLDWIDE NO MATTER THE COUNTRY, NO MATTER THE LEVEL OF PERCEIVED TRADE BARRIERS ASSESSED BY THE ADMINISTRATION. THAT WOULD REFLECT WHAT HE HAD TALKED ABOUT ON THE CAMPAIGN TRAIL. CAROLINE: TECHNOLOGY HAS TAKEN A HIT FROM THE VALUATION PERSPECTIVE.
PEOPLE TRYING TO DISSECT HOW MUCH THIS AFFECTS THE SEMICONDUCTOR INDUSTRY. HAVE WE GOT ANY NUANCE THERE? MICHAEL: WE DON'T AND THERE WAS DISCUSSION FROM THE PRESIDENT AND HIS ADVISERS OF TAKING A SECTORAL APPROACH TO THE TECH INDUSTRY, NAMING THE SEMICONDUCTOR SECTOR IN PARTICULAR. THE IDEA IS THAT BY IMPOSING TARIFFS ON IMPORTED SHIPS WE WOULD TRY TO BRING PRODUCTION BACK TO THE U.S. AND THEY EVEN REFERRED TO TSMC'S DECISION TO MOVE TO THE U.S. AS EVIDENCE THOSE TARIFF THREATS WILL HAVE SOME EFFECT. TSMC ANNOUNCED AN ADDITIONAL
$100 BILLION INVESTMENT IN THE U.S. NOT LONG AFTER THE PRESIDENT TOOK OFFICE. THE EFFECTS OF THESE TARIFFS WILL BE FELT ACROSS THE VALUE CHAIN INTACT. -- IN TECH. WE WILL SEE COSTS RISE FOR ALL
MANNER OF GOODS THAT COME INTO THE U.S.. WE ARE TALKING ABOUT COMPUTER HARDWARE AND SMARTPHONES. THE IMPACT WILL BE FELT WIDELY AND BUSINESSES WILL HAVE TO MAKE A DECISION ABOUT WHETHER THEY PASS THOSE COSTS ONTO CONSUMERS OR THEY SIMPLY ACCEPT SMALLER MARGINS IN THE PROCESS. CAROLINE: MIKE SHEPPARD, ALWAYS KEEPING US UP-TO-DATE.
LET'S BRING IN THE CEO OF THE INSTITUTE FOR TECH DIPLOMACY WHO SERVED IN THE PREVIOUS TRUMP ADMINISTRATION ON DIPLOMACY AND GLOBAL AFFAIRS. THIS INFLATIONARY PRESSURE, IS IT WORTH IT IN THE SHORT TERM FOR LONG-TERM BRINGING MORE MANUFACTURING BACK TO THE U.S.? >> I WILL START WITH WHAT I SERVED AS ASSISTANT SECRETARY GLOBAL PUBLIC AFFAIRS WE HAD 4000 PUBLIC AFFAIRS OFFICERS AND 185 MISSIONS ACROSS THE WORLD ADVANCING ONE OF AMERICA'S KEY MESSAGES WHICH IS FAIRNESS AND RECIPROCITY. THAT IS BECAUSE PRESIDENT TRUMP
HAD BEEN SAYING SINCE DAY ONE. HE SAID IT IN HIS FIRST FOREIGN TRIP, HE SAID IT IN WARSAW, HE SAID IT AT THE U.N. TWICE. FAIRNESS AND RECIPROCITY, FAIR AND RECIPROCAL TRADE HAS BEEN A KEY MESSAGE FOR THE UNITED STATES FOR A LONG TIME UNDER THIS PRESIDENT. I THINK THE UNCERTAINTY WE ARE SEEING AND THE DISCOMFORT WE ARE SEEING IS LESS UNCERTAINTY AND ACTUALLY MORE OF AN ADJUSTMENT ABOUT WHAT THE LONG-TERM TRAJECTORY WILL BE TO MAKE SURE THE UNITED STATES IS AS ECONOMICALLY AND TECHNOLOGICALLY COMPETITIVE AS POSSIBLE. CAROLINE: POINT US TO THAT LONGER-TERM TRAJECTORY. THIS IS NOT A SURPRISE TO YOU. THOSE THAT ARE STILL FEELING THAT INSTABILITY, HOW DO THEY SEE THE NEXT FEW MONTHS BUT IF THEY ARE A BUSINESS LEADER HAVING TO DECIDE WHERE TO INVEST? MICHELLE: EVEN LONGER-TERM THAN THAT. WE HAVE A STRATEGIC DECISION TO
MAKE AS A COUNTRY. ARE WE GOING TO WAKE UP AND WORRY THAT THE S&P IS DOWN 8.3% IN FEBRUARY OR ARE WE GOING TO WORRY ABOUT THE UNITED STATES BECOMING A TECHNOLOGY AND ECONOMIC AND A MANUFACTURING POWERHOUSE IN THE 21ST CENTURY SO WE CAN LEAD THE WORLD AND BE THE SAFEST AND MOST PROSPEROUS COUNTRY THE WORLD HAS EVER SEEN? IF THE CHOICE IS THE LATTER THEN WE WILL HAVE TO REENGINEER A LOT OF THINGS TO BE THE GLOBAL LEADER AND SECURE OUR NATIONAL SECURITY AND OUR PROSPERITY. TARIFFS ARE A PART OF THAT BUT
THERE'S A LOT MORE THAT HAS TO BE DONE AND WE HAVE SEEN IN RECENT WEEKS THE AMERICA FIRST INVESTMENT STRATEGY COME OUT SO WE ARE INVESTING IN OUR ECONOMY AND OUR TECHNOLOGIES WITH NATIONAL SECURITY IN MIND. WE JUST SAW A COUPLE DAYS AGO THE ANNOUNCEMENT ABOUT THE NEW U.S. INVESTMENT ACCELERATOR, ALL OF THESE THINGS WILL HELP US BE AN ECONOMIC POWERHOUSE AND A MANUFACTURING POWERHOUSE. NOT ONLY DO WE HAVE TO DESIGN AND INNOVATE IN NEW TECHNOLOGIES, WE ALSO HAVE TO BUILD THEM. CAROLINE: COMPANIES HAVE BEEN TRYING TO BUILD THEM AND ULTIMATELY USING THE CHIPS ACT. PREVIOUSLY YOU HAD INTEL
PROMISED AT LEAST $8 BILLION TO BRING MANUFACTURING OF CHIPS HERE AS WELL AS R&D, ANOTHER 3 BILLION DOLLARS BEING PROMISED IF THEY BRING R&D TO THE MILITARY. NOW THAT HANGS IN THE BALANCE. I HEAR YOU IN TERMS OF THIS NEW U.S. INVESTMENT ACCELERATOR BUT THAT IS A CAUSE FOR UNCERTAINTY FOR THESE COMPANIES, TOO. MICHELLE: IT IS BUT LOOK OUTSIDE OF JUST THE CHIPS ACT. YOU HAVE THE SOFTBANK INVESTMENT , 100 BILLION DOLLARS TO START MOVING TO $500 BILLION TO BUILD AI AND DATA INFRASTRUCTURE.
TSMC DEDICATED ANOTHER $100 BILLION. PURDUE RESEARCH PARTNERS TO BUILD AN ADVANCED PACKAGING. HYUNDAI JUST DID BILLION DOLLARS IN LOUISIANA. IT IS NOT THIS THE CHIPS ACT AND FEDERAL SPENDING FOR THEIR A LOT OF PRIVATE SECTOR COMPANIES INVESTING HERE BECAUSE THEY WANT TO BUILD HERE. IT IS ALL GOOD NEWS FOR THE
UNITED STATES. CAROLINE: THEREFORE AN ELEMENT OF UNCERTAINTY, WE CAN SEE WHAT THE U.S. WANTS BUT IS HOW THE OTHERS REACT AND FOR MANY AND TECHNOLOGY THEY ARE WONDERING HOW DO DIGITAL SERVICES BECOME IMPACTED IF EUROPE FIGHTS BACK ON THESE TARIFFS? HOW DO YOU GAME THAT OUT FOR BUSINESS LEADERS? MICHELLE: THAT WILL BE A SHORT-TERM AND A LONG-TERM CONVERSATION BETWEEN THE U.S. AND EUROPE, SPECIFICALLY OUR
TECH COMPANIES AND THE REGULATORY BODIES. EUROPEAN COMMISSION HEAD URSULA -- EUROPEAN COMMISSION HEAD URSULA VON DER LEYEN SAID EUROPE WILL ALWAYS LOOK OUT FOR EUROPEAN VALUES AND SELF INTERESTS IN THE UNITED STATES HAS TO DO THE SAME WHICH MEANS THERE HAS TO BE A LEVEL PLAYING FIELD BETWEEN OUR MOST TRUSTED PARTNERS LIKE THE EU OR MEXICO OR CANADA IN ADDITION TO ADVERSARIES LIKE CHINA WERE TRYING TO COMPETE AND LEAD IN TECHNOLOGY. THIS IS ALL ABOUT LOOKING TOWARDS AMERICA'S SELF-INTEREST. WE HAVE TO MANUFACTURE AND WE HAVE TO INNOVATE AND MAKE SURE WE ARE REENGINEERING THE GLOBAL SYSTEM IN ORDER TO SERVE THAT SO THE UNITED STATES CAN LEAD. CAROLINE: AND TO COMPETE AGAINST CHINA. WILL THIS ENSURE THAT? COULD WE SEE TIKTOK BECOME PART OF THE NEGOTIATION WHICH TAKES MANY BY SURPRISE? MICHELLE: WE WILL SEE. THE DEADLINE IS COMING UP ON
APRIL 5 AND I THINK THE PRESIDENT HAS SAID HE WANTS TO TRY TO FIND A WAY TO MAINTAIN THEIR PRESENCE WHILE PROTECTING OUR NATIONAL SECURITY. WE WILL SEE. IT IS LAW THEY HAVE TO DIVEST OR LEAVE THE UNITED STATES. IN TERMS OF THE U.S. CHINA COMPETITION MORE BROADLY, THE WAY WE OUTCOMPETE CHINA IS TO INNOVATE AND ENTERPRISE AND MANUFACTURE AND BUILD FASTER, BETTER, AND SMARTER, AND BY FOCUSING ON OUR ABILITY TO DO ALL OF THOSE THINGS AT HOME, TO UNLEASH THE PRIVATE SECTOR IS OUR BEST CHANCE OF WINNING AND LEADING JUST AS WE DID IN THE 20 CENTURY. CAROLINE:
GREAT TO HAVE YOU ON. MEANWHILE, COMING UP, PLANS FOR TIKTOK REMAIN UP IN THE AIR JUST THREE DAYS LEFT BEFORE ITS POTENTIAL BAND. WE SPEAK WITH ONE OF THE BIDDERS WHO IS BEEN IN IT FOR THE LONG HAUL, FRANK MCCOURT, JUNIOR. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: PRESIDENT TRUMP THIS AT THE WHOLE A MEETING TODAY TO DISCUSS A PROPOSAL FOR DIVESTING TIKTOK'S U.S. OPERATIONS FROM ITS CHINESE
PARENT COMPANY JUST DAYS AHEAD OF ITS APRIL 5 DEADLINE TO BE SOLD OR BANNED. SOURCES SAY THE ADMINISTRATION IS CONSIDERING A DEAL THAT WOULD INCLUDE ORACLE, BLACKSTONE, AND OTHER INVESTORS IN A JOINT VENTURE. THIS IS JUST ONE BEING PUT FORWARD BY A NUMBER OF INTERESTING PARTIES -- BY A OF INTERESTED PARTIES. ONE OF THOSE IS FRANK MCCOURT JUNIOR, PROJECT LIBERTY FOUNDER. HE JOINS US NOW. ARE YOU GOING TO BE IN
WASHINGTON FOR THIS MEETING? HAVE YOU BEEN PART OF THIS CONVERSATION? FRANK: I AM JETTING OFF AFTER THIS BUT NOT TO WASHINGTON. WE ARE INTERESTED TO SEE WHAT COMES OUT OF THE MEETING. THERE IS A LOT IN MOTION. CAROLINE: WHAT YOU THINK IS IN MOTION? IS IT A BROADER DIPLOMATIC PING-PONG THAT VANCE IS MAINLY LEADING THE CHARGE OR AS A TRY TO FIGURE OUT WHICH BID WORKS BEST FOR THE U.S. LAW? FRANK: IT IS BEGINNING TO DIGEST WHAT THE REAL ISSUES ARE. WHAT IS REALLY IN THAT LEGISLATION UPHELD BY THE SUPREME COURT, MEANING WHERE DOES THE ALGORITHM SIT? WHO HAS ACCESS TO IT. HUGE FINES FOR ANY VIOLATION OF THE LAW.
NOW WE ARE GETTING TO A REAL ANALYSIS OF THE LAW AND THE SUPREME COURT RULING. WHAT IS A LEGITIMATE DID? WHAT IS A REAL TRANSACTION WHERE ONE COULD BUY U.S. TIKTOK AND MEET THE SPIRIT AND THE LETTER OF THE LAW? CAROLINE: LET'S GO TO YOUR OFFER. AS IT STANDS YOU DO NOT WANT
THE ALGORITHM, THAT FITS THE LETTER OF THE LAW? FRANK: YES IT DOES AND THAT IS FUNDAMENTALLY THE POINT. YOU CANNOT DODGE THAT ISSUE. THE ALGORITHM IS ALONG WITH THE SOURCE CODE THE WAY CHINA IS ABLE TO MANIPULATE WHAT AMERICANS READ, SEE, AND EVENTUALLY THINK ABOUT ISSUES. THIS IS HIGHLY DANGEROUS FOR AMERICA.
THIS IS WHY THE LEGISLATION WAS PASSED WITH BROAD BIPARTISAN SUPPORT. WE HAVE A SET OF ISSUES WHERE YOU NEED TO COMPLETELY DISENTANGLE FROM THE CHINESE TECHNOLOGY IN ORDER TO HAVE A BID THAT COMPLIES WITH THE LAW. THE REASON WE STILL BELIEVE OUR OFFER FOR U.S. TIKTOK IS THE ONLY OFFER THAT MEETS THE LETTER AND THE SPIRIT OF THE LAW. WE DO NOT WANT OR NEED THE
ALGORITHM BECAUSE WE HAVE A CLEAN STACK WE'VE BEEN BUILDING FOR THE LAST FIVE-AND-A-HALF YEARS. CAROLINE: WE UNDERSTAND THERE ARE FOUR BIDDERS. I WILL GO INTO ONE OF THEM WERE CLEANLY IN A MINUTE BUT WHO ELSE TO UNDERSTAND TO BE THE BIDDERS? FRANK: I AM NOT 100% SURE. I'VE HEARD THE NUMBER FOUR. I DO NOT BELIEVE THERE ARE FOUR. I THINK THERE MAY BE A MIXING AND MATCHING OF BIDDERS WE ARE HEARING ABOUT.
IT IS ALL VERY MUCH A FLUID SITUATION RIGHT NOW. WE WILL LEARN MORE THIS AFTERNOON. CAROLINE: THIS AFTERNOON WE UNDERSTAND PRESIDENT TRUMP IS HEARING THE LATEST IDEA AROUND ORACLE BEING PART OWNER. THEY ARE ALREADY AN INFRASTRUCTURE PROVIDER. PROJECT TEXAS WHICH WAS UNDER THE PREVIOUS ADMINISTRATION WAS MEANT TO BE THE WAY IN WHICH ORACLE COULD PRESERVE THE DATA OF U.S. CITIZENS USING TIKTOK. IS THAT GOING TO BE A LEGITIMATE WAY TIKTOK IS SOLD IN AMERICA? FRANK: LET'S THINK ABOUT SOURCE CODE AND OPERATIONAL CODE OR ALGORITHM.
THE ISSUES ARE NOT JUST WHERE IT SITS BUT WHO HAS ACCESS. THIS IS -- THE SOURCE CODE OR THE ALGORITHM CAN SIT SOMEWHERE, BUT IF CHINA STILL HAS ACCESS THAT IS PROBLEMATIC. I THINK AT THE END OF THE DAY CHINA HAS BEEN CLEAR -- IT SEEMS TO ME THEY'VE BEEN CRYSTAL CLEAR.
THEY ARE NOT LETTING GO OF THE ALGORITHM. WHAT ALSO SEEMS TO ME CRYSTAL CLEAR IN THE LEGISLATION IS THAT ANY BID THAT INCLUDES THE ALGORITHM IS NOT GOING TO MEET THE CRITERIA LAID OUT IN THE LAW. THERE IS THE ISSUE. AGAIN, I GO BACK. THE REASON WHY WE MADE THE BID ON BEHALF OF PROJECT LIBERTY WAS NOT BECAUSE WE SET UP PROJECT LIBERTY TO PURCHASE U.S. SIX -- U.S. TIKTOK, WAIT SET UP PROJECT LIBERTY TO BRING FORWARD THESE ISSUES THAT ARE PROBLEMATIC WITH THE CURRENT TECH DESIGN WE HAVE RIGHT NOW. IT JUST SO HAPPENS THAT TIKTOK WAS AN OPPORTUNITY THAT PRESENTED ITSELF WHERE WE STEP FORWARD AND SAID IT FLIGHT WE TURN A PROBLEM INTO A SOLUTION? LET'S BY U.S. TIKTOK, MOVE INTO A CLEAN STACK
WHERE YOU AND I CONTROL OUR IDENTITY, CONTROL AND OWN OUR DATA, PERMISSION ITS USE AND HAVE A DIFFERENT INTERNET WHICH I WOULD ARGUE WOULD BE VASTLY BETTER FOR PEOPLE, VASTLY BETTER FOR DEMOCRACY, FOR SOCIETY, AND FOR CHILDREN. KATIE: YOU WANT 8 -- CAROLINE:YOU WANT A DECENTRALIZED FUTURE FOR SOCIAL MEDIA. THE SAME TIME THE U.S. IS TRYING -- WE KNOW PRESIDENT
TRUMP REALLY LIKE USING TIKTOK AS A WAY TO TELL HIS MESSAGE DURING THE CAMPAIGN TO THE YOUNGER AUDIENCE. WHEN YOU THINK ABOUT THE POTENTIAL ORACLE BID, WHO ELSE MIGHT BE JOINING THAT? WE HAVE HEARD OF BLACKSTONE AND HEARD OF VC'S. FRANK: WE HAVE TALKED TO ALL OF THE EXISTING INVESTORS IN BYTEDANCE, U.S.
INVESTORS IN BYTEDANCE. I THINK MOST WOULD BE HAPPY TO STAY INVOLVED IN THE TRANSACTION. WHY NOT? IT IS BETTER TO SPIN OFF A COMPANY, KEEP INTEREST IN IT, HOPE FOR THE BEST RATHER THAN HAVE THE COMPANY SHUT DOWN. CAROLINE: GENERAL ATLANTIC YOU ARE TALKING ABOUT? FRANK: ALL OF THESE NAMES ARE AROUND THE DEAL BECAUSE THEY HAVE INTEREST IN THE DEAL. AS FAR AS PRESIDENT TRUMP AND HIS AFFINITY FOR TIKTOK, WE CAN CREATE A VERSION OF TIKTOK THAT HE WILL LIKE JUST AS MUCH IF NOT MORE BECAUSE IT WILL DO THE SAME GOOD THINGS WITHOUT PUTTING AMERICANS AT RISK. CAROLINE:
YOU THINK THERE'S ANY WAY WE GET A DEAL BY THE DEADLINE OF APRIL 5? FRANK: I THINK THAT IS HIGHLY UNLIKELY. WE WILL KNOW MORE THIS AFTERNOON OR CERTAINLY BY THE FIFTH. CAROLINE: ARE THEY COMING TO YOU DIRECTLY? WHO ARE YOU SPEAKING TO? FRANK: OUR CONVERSATIONS HAVE BEEN WITH THE VICE PRESIDENT AND THE VICE PRESIDENT'S OFFICE. CAROLINE: THE LEANING YOU GET FROM VICE PRESIDENT PENCE? IS HE TAKING INTO CONSIDERATION THE FUTURE OF HOW SOCIAL MEDIA IS IN THE UNITED STATES OR IS SEIZING THIS AS A DIPLOMATIC EFFORT? FRANK: YOU WOULD HAVE TO ASK THE VICE PRESIDENT THAT. I HOPE EASING THE BROADER ISSUES OF THE FUTURE OF THE INTERNET AND I KNOW IS CONCERNED ABOUT NATIONAL SECURITY. CAROLINE: MANY ARE QUESTIONING THE PRICE POINT. WHAT WOULD YOU BE WILLING TO
PAY WITHOUT THE ALGORITHM? FRANK: WE HAVE PUT A NUMBER OF $20 BILLION ON THE ASSETS WITHOUT THE ALGORITHM. WE ARE STICKING BY THAT. WE THINK THAT IS A VERY FULL NUMBER FOR THE USER BASE AND THE DATA. WE ARE NOT GETTING ALL OF THAT BACK END BUT WE DO NOT WANT THE BACK END AND THAT IS THE POINT. WE HAVE BUILT IT WHICH IS WHY
WE HAPPEN TO BE IN THE RIGHT PLACE AT THE RIGHT TIME FOR THIS TRANSACTION. WE MEET THE SPIRIT AND THE LETTER OF THE LAW, WE KEEP U.S. TIKTOK LIT UP AND EVERYBODY WINS. CAROLINE: IS THERE ANYWAY THEY GO BACK TO CONGRESS AND OFFER THIS DEAL? IS THERE ANYWAY THE LAW ENDS UP NOT STICKING? FRANK: I CAN SEE IT.
THIS WAS A LAW PASSED FOR GOOD REASON DEZ I SAID EARLIER, BROADLY BIPARTISAN. PEOPLE SAW CLEARLY THE NATIONAL SECURITY ISSUES AND THE RISK TO THE UNITED STATES AND U.S. CITIZENS. IT WAS A LAW THAT WAS APPROPRIATELY PASSED, ONE OF THE FEW THAT WAS PASSED WITH BIPARTISAN SUPPORT AND IN THE SPEED AT WHICH IT WAS PASSED, SIGNED BY THE PRESIDENT, UPHELD BY THE APPELLATE COURT AND THE SUPREME COURT.
12 JUDGES SAID THIS IS A VALID LAW, THIS IS A REAL SET OF NATIONAL SECURITY ISSUES. ZERO JUDGES WERE ON THE OTHER SIDE OF THAT. MANY OF THE SAME PEOPLE THAT VOTED FOR THIS LAW ARE IN THE TRUMP ADMINISTRATION. THEY UNDERSTAND THE ISSUES AND THAT HAS NOT CHANGED. WHAT I WANT TO EMPHASIZE IS THERE IS A SOLUTION TO THIS.
THERE IS A SOLUTION THAT MEETS THE CRITERIA OF THE LEGISLATION, KEEPS TIKTOK LIT UP, PROTECTS AMERICAN CITIZENS AND BEGINS TO SHOW THE WAY OF A NEW INTERNET. CAROLINE: WILL CURRENT USERS OF TIKTOK LOVE YOUR VISION OF THE UNIT AS MUCH AS THEY LOVE THE ALGORITHM? FRANK: I THINK THEY WILL LOVE IT MORE. WE CAUGHT THE PEOPLE'S BID BECAUSE WE WILL GIVE THEM A PIECE OF IT AND LET THEM BENEFIT FINANCIALLY FROM THE GROWTH OF THE PLATFORM AND THE VALUE, NOT JUST FROM THE BUSINESS THEY CREATE ON THE PLATFORM BUT WHY NOT GIVE THEM A PIECE OF THE ENTIRE PLATFORM SO THAT THEY CAN BENEFIT FROM THE EQUITY THAT IS BUILT UP IN THE PLATFORM ITSELF? CAROLINE: THANK YOU YOU AS EVER FOR JOINING US. LET US KNOW WHAT COMES OUT OF YOUR DISCUSSIONS POST THE MEETING TODAY. FRANK MCCOURT OF PROJECT LIBERTY.
HE IS POTENTIALLY OFFERING TO BUY TIKTOK. TESLA SHARES REBOUNDING AFTER THE HEADLINE FROM POLITICO SAYS TRUMP TOLD HIS INNER CIRCLE THAT ELON MUSK WILL LEAVE SOON. WE ARE CURRENTLY UP TO .4%. WE HAD NEWS ON TESLA'S DELIVERIES FOLLOWING BUT THAT WE UNDERSTAND THERE COULD BE A MOVE OF ELON MUSK EXITING THE ADMINISTRATION IN TERMS OF HIS CURRENT ROLE, TELLING THE ADMINISTRATION "-- TELLING HIS INNER CIRCLE ELON MUSK WILL LEAVE SOON. CAROLINE: WELCOME BACK.
IF YOU HAVE CHILDREN, THE CHANCES OF YOU KNOWING ABOUT ROADBLOCKS IS PRETTY HIGH. IT'S A VIRTUAL UNIVERSE THAT USERS CREATE AND COLLABORATE. ROBLOX IS OUT WITH A SLEW OF ANNOUNCEMENTS.
LET'S UNPACK IN AN EXCLUSIVE CONVERSATION WITH THE CEO. IT IS GREAT TO HAVE YOU ON THE SHOW AND I AM CURIOUS ABOUT WHAT ANALYSTS ARE CALLING A SMART, STRATEGIC MOVE. WHAT BRANDS ARE RESPONDING TO THE PARTNERSHIP THAT YOU HAVE UNVEILED? DAVID: I WANT TO HIGHLIGHT THAT WE SHARED A HUGE VISION OF HAVING 10% OF ALL GAMING RUNNING ON ROBLOX, WHICH IS A BIG VISION. WE FEEL THAT GAMING IS STILL IN THE PREHISTORIC TIMES AS FAR AS HOW PEOPLE CONSUME AND USE GAMING CONTENT. WE HAVE A HUGE CREATOR COMMUNITY WHO IS ALREADY CREATING AMAZING BUSINESSES.
THE PARTNERSHIP WITH GOOGLE IS ANOTHER WAY FOR THOSE CREATORS TO BUILD THEIR BUSINESSES AND MONETIZE. FOR OLDER USERS, WE WILL GIVE CREATORS SIDE-BY-SIDE VIRTUAL CURRENCIES AND SUBSCRIPTIONS, ANOTHER WAY TO BUILD THEIR BUSINESS ON ROBLOX. WE HAVE MANY CREATORS MAKING OVER $10 MILLION YEAR IN SOME OVER $50 MILLION A YEAR. THESE ARE SPONSORING BIG, EMERGING STUDIOS BUILDING ON OUR PLATFORM. CAROLINE:
YOU SAY FOR OLDER USERS. WHO DO YOU THINK THAT THE BRANDS REALLY WANT TO EXPOSE THEMSELVES TO RIGHT NOW IN TERMS OF GENERATIONS? IS IT ALL ABOUT GEN Z? IS IT SKEWING UPWARDS? DAVID: WE SHARE THE VISION OF GETTING TO ONE MILLION DAILY ACTIVE USERS ON OUR PLATFORM. WITH THE INTERMEDIATE STEP OF 10% OF GAMING. LAST QUARTER WE SHARED A LOT OF FUN STATS. THE 17-24 AGE GROUP IS GROWING VERY RAPIDLY. WE HAVE BECOME A PLATFORM WHERE MORE OF OUR USERS ARE OVER 13.
THE 17-24-YEAR-OLD SEGMENT IS REALLY HARD TO REACH. MORE AND MORE OF THEM ARE ON ROBLOX AS WE START TO HAVE AMAZING EXPERIENCES, WHETHER IT IS NFL UNIVERSE DRESSED TO IMPRESS, EXPERIENCES WHERE THESE USERS ARE ON OUR PLATFORM. CAROLINE: DRESSED TO IMPRESS MAKES ME THINK ABOUT THE RETAIL OPPORTUNITY FOR BRANDS, AND ALSO HOW IT BECOME SYNONYMOUS WITH PHYSICAL. TAKE US THROUGH WHAT ADVERTISING WILL EVENTUALLY BE FOR ROBLOX. DAVID:
IF WE STEP WAY FORWARD IN A SCI-FI SCENARIO, I CAN IMAGINE -- JUST LIKE IT IS FUN TO GO SHOPPING AT THE MALL TODAY, OF COURSE WE ARE GOING TO GO SHOPPING WITH OUR VIRTUAL AVATARS. WE WILL BE ABLE TO GO TO STORES AND SEE OUR FAVORITE BRANDS. WE WILL BE ABLE TO TRY CLOTHING ON AND SEE HOW IT LOOKS ON OUR AVATAR.
WE WILL HAVE A LOT OF FUN DOING IT. WHEN WE WANT TO BUY THE PHYSICAL OR VIRTUAL ITEM WE WILL BE ABLE TO MAKE THAT PURCHASE. WE MAY LOOK BACK IN 10 OR 20 YEARS AND SAY, MY GOSH, IT WAS WEIRD THAT ALL OF OUR SHOPPING ON THE WEB WAS 2-D RATHER THAN JUMPING FORWARD TO A 3D AND EVENTUAL FOUR DIMENSIONAL WORLD. MAYBE ONE DAY WE WILL GO
VIRTUAL SHOPPING TOGETHER. CAROLINE: ADVERTISERS WILL BE EXCITED BY. ULTIMATELY THIS WILL BECOME A BIGGER PART OF YOUR BUSINESS MODEL. WHEN DO YOU THINK YOU WILL BE ABLE TO SHOW HOW MUCH ADVERTISING IS BRINGING TO YOUR BOTTOM LINE? DAVID: WE ARE ONCE AGAIN ON THE JOURNEY TO GETTING OVER 10% OF THE GAMING MARKET SPACE. WE SHARED THAT WE EXPECT TO BE
GROWING OUR BOOKINGS AT OVER 20% YEAR ON YEAR CONTINUOUSLY GOING FORWARD, WHILE GENERATING A LOT OF CASH. WE ARE LOOKING FORWARD TO WHEN WE BREAKOUT THE ADVERTISING REVENUE AND COMMERCE REVENUE. WE HAVEN'T SHARED WHEN WE ARE GOING TO DO THAT. CAROLINE: COME ON, ON THE SHOW, DAVE, ON THE SHOW. YOU HAVE TO BREAK IT FOR US ON THE SHOW. DAVID: WHAT?
I CAN'T BREAK IT ON THE SHOW, BUT I WILL CALL YOU BEFORE WE BREAK IT OUT AND LET YOU KNOW. CAROLINE: I APPRECIATE THAT. SERIOUSLY, FOR BRANDS TO COMMIT AND STICK WITH IT, FOR USERS TO REMAIN, IT IS ALSO ABOUT SAFETY. YOU'VE BEEN PUTTING THOUGHT INTO THAT AND YOU HAVE NEW PRESIDENTIAL CONTROLS. TALK US THROUGH THEM. DAVID: YEAH, TAKE A STEP BACK.
EVEN WHEN WE FIRST LAUNCHED THE PLATFORM EARLY ON, OUR GOAL WAS TO BUILD THE SAFEST PLACE ON THE INTERNET. AS ROBLOX HAS BECOME MORE EMBEDDED IN OUR CULTURE, WE ARE CONSTANTLY SHIPPING SAFETY IMPROVEMENTS. WE ARE REALLY TRYING TO SUPPORT PARENTS TO MAKE GREAT DECISIONS FOR THEIR FAMILY. WE ALREADY PREEMPTIVELY HAVE
SCREEN TIME LIMITS ON ROBLOX. PARENTS CAN SET THAT WITH THEIR FAMILY. WE ARE ANNOUNCING TODAY MORE PARENTAL VISIBILITY. PARENTS WILL BE ABLE TO SEE WHERE THE YOUNGER PEOPLE IN THEIR FAMILY ARE PLAYING ON ROBLOX. THEY WILL HAVE MORE CONTROL
OVER WHO THEIR KIDS ARE FRIENDS WITH. THEY WILL HAVE CONTROL OVER WHAT EXPERIENCES THEY MIGHT SAY ARE NOT APPROPRIATE FOR OUR FAMILY. THIS NOTION OF FOCUSING ON SAFETY AND GIVING PARENTS CONTROL, IN ADDITION TO ALL OF THE OTHER SAFETY WORK WE DO, IS REALLY A BIG PRIORITY FOR US. CAROLINE: HOW DOES THAT FIT WITH THE KIDS' ACTUAL EXPERIENCE? DO YOU THINK IN ANY WAY WE WILL SEE LESS TIME SPENT ON THE PRODUCT? DAVID: ONCE AGAIN, THERE IS SOMETHING REALLY COOL ABOUT ROBLOX AND THIS FORM OF SOCIAL MEDIA. THE FORM OF SOCIAL MEDIA AT ROBLOX IS REALLY COMMUNICATION AND CONNECTION. WHEN I WAS A KID, SOMETIMES ON
RAINY DAYS I WOULD PICK UP THE PHONE AND THAT IS HOW I WOULD HANG OUT WITH MY FRIENDS. ROBLOX IS LESS ABOUT SHARING SHORT VIDEOS AND WATCHING THEM BY MYSELF, OR SHARING IMAGES OF MYSELF, IT IS ABOUT DOING THINGS WITH OTHER PEOPLE. I THINK PARENTS WORKING WITH THE YOUNG PEOPLE AND THEIR FAMILY WILL FIGURE OUT WHAT IS RIGHT FOR THEM. CAROLINE: AT ONE POINT, YOU DID SUGGEST THAT IF PARENTS DON'T TRUST THE PRODUCT, THEY SHOULD KEEP THEIR KIDS OFF.
WHAT HAS THE REACTION BEEN TO THAT? DAVID: I THINK THERE WAS A LOT MORE CONTEXT TO THAT. WHAT WE WERE TALKING ABOUT HIS COMFORT. THE NOTION THAT WE THINK THAT PARENTS SHOULD BE COMFORTABLE WITH WHAT THE YOUNG PEOPLE ARE DOING ON THEIR PLATFORM.
WE DO -- SAFETY IS OUR TOP PRIORITY. WE ARE SHIPPING SAFETY IMPROVEMENTS EVERY WEEK. THIS IS ONE OF MANY, MANY ANNOUNCEMENTS.
ONE OF THE BIGGEST THINGS THAT WE DO ON ROBLOX'S TRY TO KEEP PEOPLE ON OUR PLATFORM SO THAT THEY DON'T GO TO OTHER PLATFORMS WHERE THEY MAY SHARE IMAGES OR MAY CHAT WITH UNFILTERED TEXT. THE QUOTE WAS ABOUT PARENTS SHOULD BE COMFORTABLE WITH WHAT THEIR FAMILY IS DOING. CAROLINE: HOW MUCH CAN AI MAKE THEM MORE COMFORTABLE? DAVID: BEHIND-THE-SCENES, WE ARE IN AN AMAZING TIME WITH AI RIGHT NOW.
IT IS CHANGING HOW WE CREATE. IT IS ULTIMATELY CHANGING HOW PEOPLE CREATE ON ROBLOX. WHAT WE THINK WILL HAPPEN ON ROBLOX'S RATHER THAN THE TEXT OR IMAGE WORLD, THE 1-D OR 2-D WORLD, ON ROBLOX WE WILL SUPPORT THE 3-D WORLD. BEHIND THE SCENES WE'VE BEEN
BUILDING AN AI PLATFORM FOR FOUR YEARS. WE HAVE OVER 200 MODELS RUNNING ON ROBLOX. ALL OF THE IMAGES THAT PEOPLE USE WHEN THEY ARE CREATING, ALL OF THE TEXT AND VOICE ON ROBLOX RUNS THROUGH SOME OF THESE MODELS. AI HAS BEEN A FOUNDATION OF WHAT WE'VE DONE. OUR VOICE MODEL IS SO GOOD AND SO EFFICIENT THAT WE'VE SHARED IT ON HUGGINGFACE SO OTHER COMPANIES CAN USE IT. I WAS AT THE GAME DEVELOPERS CONFERENCE AND I RAN INTO A STARTUP. I SAID HOW ARE YOU GOING TO DO
VOICE SAFETY? THEY SAID, WE ARE GOING TO USE YOUR OPEN-SOURCE VOICE MODEL. WE ARE TRYING TO GIVE BACK TO THE COMMUNITY IN THESE AREAS WHERE WE'VE GOT EXPERTISE. WE'VE ALSO JOINED A CONSORTIUM TO MAKE THIS OPEN-SOURCE FOR MORE SMALL COMPANIES. CAROLINE: ROBUST ONLINE SAFETY TOOLS, HOW COLLABORATIVE IS IT WITH OTHER PLATFORMS WHEN IT COMES TO SAFETY? OR IS THERE MORE COLLABORATION NEEDED? DAVID: WE ARE ONE OF THE FOUNDING MEMBERS. WE WANT TO, MORE AND MORE, MAKE OPEN-SOURCE SOME OF THE MODELS THAT WE'VE BUILT FOR SAFETY. VOICE IS ARGUABLY ONE OF THE
FIRST STEPS FOR THAT. IT IS EXCITING TO ME THAT I'M STARTING TO HEAR OF SMALL STARTUP COMPANIES WHO WILL SIMPLY USE OUR VOICE MODEL. WE'VE ALSO MADE OUR 3D FOUNDATIONAL AI MODEL ALSO OPEN-SOURCE.
WE BELIEVE ONCE AGAIN THESE FOUNDATIONAL MODELS, BECAUSE WE HAVE SUCH AN EXPERTISE IN TRAINING AND BUILDING THEM, CAN BE USED BY OTHERS. CAROLINE: GO BACK TO WHAT YOU SAID AT THE START. YOU WANTED TO BUILD THE SAFEST PLACE ON THE INTERNET ALL THE WAY BACK IN 2006. THE WORLD WAS SUCH A DIFFERENT PLACE. WE MIGHT AS PARENTS HAVE BEEN ANXIOUS ABOUT WHAT OUR KIDS WERE DOING ON THE STREETS, BUT NOW WE HAVE AN ANXIETY LEVEL AROUND ALL OF FOOT COULD BE GOING ON ON THE INTERNET AND THEN YOU ADD AI ON TOP OF THAT AND THE MODERATION CRISIS THAT EVOLVES OUT OF THAT OUT OF EVER MORE CONTENT THAT YOU HAVE TO OVERSEE. WHAT IS IT FEEL LIKE A SOMEONE
WHO I KNOW IS A PARENT, WHO HAS NIECES AND NEPHEWS USING ROBLOX, WHO IS REALLY THOUGHTFUL ABOUT THE FUTURE OF THE INTERNET, DOES IT UPSET YOU? HOW DO YOU RESPOND WHEN THE WORST OF HUMANITY CREEPS ON IT? DAVID: I AM SURPRISINGLY VERY OPTIMISTIC. I AM OPTIMISTIC BECAUSE MORE AND MORE, FROM THE SAFETY STANDPOINT, AI GIVES US AN ARM'S POWER INTO NORMA'S TOOLS TO HELP MODERATE CONTENT AND COMMUNICATION. -- GIVES US ENORMOUS TOOLS TO HELP MODERATE CONTENT AND COMMUNICATION. PEOPLE FEEL THEY COULD HAVE NEVER DESIGNED CLOTHING OR COULD NEVER HAVE DESIGNED A NEW HOUSE OR DESIGN A SPORTS CAR ARE GOING TO BE ABLE TO START TO DESIGN THESE THINGS BY TALKING ABOUT THEM. NOT JUST AS ON THEM ONE TIME, THAT ITERATE, IMPROVE ON THEM. JUST LIKE DIGITAL TOOLS LIKE
PHOTOSHOP REPLACED OIL PAINTING, I ACTUALLY FEEL AI IS GOING TO MAKE US ALL FEEL MORE LIKE CREATORS AND SUPERCHARGE CREATIVITY AMONGST ALL OF US. CAROLINE: WE LOVE THE LOA -- LOFI VIBES OF ROBLOX. HOW MUCH IS IT GOING TO BECOME HIGH FIDELITY? DAVID: THE LONG-TERM PROSPECT FOR THE PROJECT IN ONE OF THE MOST DIFFICULT SPECIFICATIONS OF ANY TECHNICAL PLATFORM IS GIVING ARTISTS COMPLETE FREEDOM. WITH VIDEO RIGHT NOW WE COULD ARGUE THAT ARTISTS HAVE FREEDOM. WE SEE ANIMATION, M&A, PHOTOREALISTIC, HYPER REALISTIC. -- ANIME, PHOTOREALISTIC, HYPER REALISTIC. PART OF THE NOTION THAT WE WANT
TO HAVE 10% OF THE GAMING SPACE ON OUR PLATFORM. ULTIMATELY, ARTISTS CAN EITHER GO THE TRADITIONAL BLOCKY STYLE, MORE REALISTIC STYLE, OR WITH SOME OF THE CLOUD FACILITIES THAT WE ARE BUILDING, HI-RES STYLES THAT THEY ARE USED TO IN OTHER GAMES ON THE MARKET. CAROLINE: YOU TALK ABOUT HOW YOU WANT TO SERVE THE ECOSYSTEM, THE DEVELOPERS. THE VALUE CREATION THAT WE'VE SEEN WITH BROOKHAVEN HAS BEEN PHENOMENAL. DO YOU KNOW THE SIZE OF THE DEAL AND HOW ANY MILLIONS ARE GOING FOR THOSE SORTS OF PURCHASES? DAVID: I CANNOT COMMENT ON THE SIZE OF THE DEAL. I'M PRETTY SURE THAT THE DEALS ARE STARTING TO GET INTO NON-FIGURES AND NOT EIGHT-FIGURES. AT THE ROBLOX DEVELOPERS
CONFERENCE, ONE OF MY PARADOX DICTATIONS -- ONE OF MY PROGNOSTICATIONS WHERE WE WILL SEE A BILLION-DOLLAR DEAL FOR STUDIO ON ROBLOX. ARGUABLY, WE SHOULD SEE THAT HAPPEN IF WE KEEP PUSHING THE TECHNOLOGY FOR THE GAMING SPACE. IF WE HAVE 10% OF THE GAMING IN THE WORLD RUNNING ON OUR PLATFORM, WE WILL SEE MORE AND MORE OF THOSE STUDIOS START TO SHOW UP. CAROLINE: TALKING ABOUT GAMING, BUT ALSO ABOUT HOW THIS IS ULTIMATELY A SOCIAL ENDEAVOR, WHO IS YOUR COMPETITOR NOW? IS IT EYES AND MINUTES ON SOCIAL MEDIA AND TIKTOK OR ANOTHER GAMING PLATFORM? DAVID: IT IS AN INTERESTING METAPHOR. AS WE THINK ABOUT COMPETITION WE THINK MORE ABOUT THE VISION THAT WE HAVE IN THE COMPANY, AND ALSO WHAT IS TECHNICALLY POSSIBLE WITH TODAY'S TECHNOLOGY? WE KNOW THAT IT IS TECHNICALLY POSSIBLE ULTIMATELY FOR A YOUNG CREATOR TO BUILD A REALLY INTERESTING EXPERIENCE, HAVE IT IMMEDIATELY BE LIVE IN ANY COUNTRY, HAVE IT BE WITHIN THE POLICIES OF ANY COUNTRY, HAVE IT AUTOMATICALLY TRANSLATED TO ANY LANGUAGE, AND HAVE IT RUN RIGHT -- RUN EITHER ON A LOW-END DEVICE OR A SUPERHIGH END GAMING PC, AND HAVE PEOPLE JOIN INSTANTANEOUSLY WITHOUT A DOWNLOAD. BECAUSE WE KNOW THAT ALL OF
THIS IS POSSIBLE AND WE ARE BUILDING IT AS QUICKLY AS WE CAN, WE DO SOMETIMES THINK THAT OUR COMPETITION IS OUR OWN ABILITY TO ITERATE QUICKLY. CAROLINE: SOME MIGHT SAY ABOUT TIKTOK BEING A COMPETITOR, JESSE ON THE SHOW PREVIOUSLY SAID THAT YOU ARE SUPPORTING HIS BID FOR TIKTOK. ARE YOU STILL? DAVID: HIGH LEVEL, I WON'T COMMENT ON WHAT BID I AM SUPPORTING. I THINK THAT ONE OF THE THINGS THAT WE ARE HIGHLIGHTING IN OUR DISCOVERY SYSTEM IS TRANSPARENCY. I THINK THAT THERE IS AN UNDERLYING THEME OF ALL OF THESE BIDS. WHETHER THE ALGORITHM IS RUNNING IN THE U.S., OR AT LEAST VERY TRANSPARENT, I THINK
THAT PEOPLE ALL AROUND THE WORLD WOULD LIKE TO SEE TRANSPARENCY IN THESE ALGORITHMS. ONE OF THE THINGS THAT WE ARE DOING MORE AND MORE ON ROBLOX FOR THE CREATORS WHO ARE ALSO USERS FINDING COOL EXPERIENCES ON ROBLOX IS BEING VERY TRANSPARENT ON HOW THE ALGORITHM IS WORKING SO THAT DEVELOPERS CAN KNOW HOW WE ARE FORWARDING THINGS TO THE USERS. I THINK THAT WHATEVER THE BID ON TIKTOK IS, WE WILL SEE TRANSPARENCY OF THE ALGORITHM AND OBVIOUSLY AN AIR GAP WHERE THAT ALGORITHM HAS TO RUN IN THE UNITED STATES. CAROLINE: THE ADMINISTRATION IS PRETTY INVOLVED IN THE TIKTOK BID.
THE CURRENT SEC IS NOW INHERITING A POTENTIAL INVESTIGATION INTO ROBLOX. HOW IS THAT GOING? DAVID: I CAN'T COMMENT ON THAT. I CONSTANTLY SAY THAT WE RUN AN EXTREMELY TIGHT SHIP AND WE ARE EXTREMELY PROUD OF EVERYTHING THAT WE DO. CAROLINE: PRIDE IS SOMETHING YOU WANT TO
MAKE GLOBAL. YOU'RE TALKING ABOUT HOW PEOPLE CAN CREATE IMMERSIVE WORLDS AND IMMEDIATELY GO INTO ANY LANGUAGE AND ANY COUNTRY. RIGHT NOW IT'S DIFFICULT TO BE A GLOBAL COMPANY WHEN BASED IN THE U.S. HOW DO YOU FEEL ABOUT THE TRADE ANXIETY AND WHAT IT MEANS FOR YOUR BUSINESS? DAVID: I WAS IN EMIRATES AT THE WORLD FORUM. WHAT WAS INTERESTING IS, IN EMIRATES THERE ARE SOME TOP ROBLOX CREATORS WHO ARE CONTRIBUTING CODE TO SOME OF THE TOP EXPERIENCES ON THE PLATFORM. AND ALSO TOP FASHION CREATORS WHO ARE DOING QUITE WELL IN THE VIRTUAL ECONOMY ON THE PLATFORM.
I AM OPTIMISTIC FOR PLATFORMS LIKE ROBLOX WHERE THERE IS A DEMAND FOR AMAZING CONTENT. MORE AND MORE OF OUR CREATORS, IN THE USA, IN THE GULF REGION, IN BRAZIL WHERE WE HAVE ENORMOUS ACTIVITY, I'M REALLY EXCITED THAT WE CAN OFFER A GLOBAL ECONOMY FOR THOSE CREATORS. WE SEE OUR TOP CREATORS COMING FROM ALL AROUND THE WORLD.
THE DRESSED TO IMPRESS TEAM I BELIEVE IS IN THE U.K. CAROLINE: YOUR USERNAME IS BUILDER MAN. ARE YOU STILL BUSY BUILDING A VIEW THAT THIS IS GOING TO BE THE METAVERSE AND WE ARE GOING TO LIVE IN THAT IN THE NEXT FEW YEARS? IS THAT WHAT THE ULTIMATE VISION IS, DAVE? DAVID: THE VISION WE HAVE IS THAT HUMANS ARE ALWAYS TRYING TO FIND A WAY TO COMMUNICATE. WE USED TO USE THE MAIL SYSTEM, WE USE THE PHONE SYSTEM, TEXTING, WE ARE ON VIDEO COMMUNICATING ON VIDEO, AND WE BELIEVE THAT 3D COMMUNICATION WILL SIT SIDE-BY-SIDE WITH THAT. 3D COMMUNICATION IS PRETTY INTERESTING. WE CAN CHANGE OUR AVATAR. WE CAN PLAY HIDE AND SEEK
TOGETHER. WE CAN GO TO A CONCERT TOGETHER. WE ARE OPTIMISTIC ABOUT WHAT WE CALL THE EVOLUTION TO 3D AND 40 COMMUNICATION -- AND 4D COMMUNICATION. WE THINK THIS IS A NATURAL EVOLUTION OF TECHNOLOGY AND WE ARE IN A GREAT POSITION TO ASSURE THIS IN IN A SAFE AND CIVIL WAY. WHEN WE GET BACK TO BUILDING,
WE ACTUALLY CALL OUR PEOPLE AND TEAM WITHIN ROBLOX BUILDERS. THE BUILDER MAN IDEA HAS REALLY STAYED WITH US. CAROLINE: GREAT TO HAVE YOU ON THE SHOW, COFOUNDER AND CEO OF ROBLOX.
STAY WELL. WE'RE STICKING WITH GAMING BECAUSE NINTENDO HAS ANNOUNCED THE RELEASE DATE AND PRICE OF THE HIGHLY ANTICIPATED SWITCH 2. TESLA SHARES UP 2.7% AFTER TESLA DELIVERIES COME IN WELL BELOW EXPECTATIONS, 360,000 OVERALL WHEN THE MARKET WANTED 390,000. THERE SEEMS TO BE NEWS BROADLY
FROM THE ADMINISTRATION, HINTING TO HIS CLOSE RELATIONS, TRUMP IS TELLING HIS INNER CIRCLE THAT MUST WILL LEAVE SOON -- MUSK LEAVE SOON. CAROLINE: NINTENDO HAS REVEALED DETAILS FOR ITS HIGHLY ANTICIPATED SWITCH 2, WHICH IT PLANS TO RELEASE JUNE 5. THIS IS THEIR FIRST ENTIRELY NEW PLATFORM IN EIGHT YEARS AND HAS THE POTENTIAL TO LIFT SALES AFTER A FEW LACKLUSTER YEARS FOR THE INDUSTRY. IT IS EXPENSIVE. >> IT IS EXPENSIVE. CAROLINE: $450. WHAT IS THAT LIKE IN CONTEXT OF THE MARKET? >> THERE ARE OTHER HANDHELD OFFERINGS ON THE MARKET THAT WERE NOT ON THE MARKET WHEN THE ORIGINAL SWITCH WAS RELEASED SELLING FOR SOMEWHERE BETWEEN $400 AND $700.
AT THE SAME TIME, NINTENDO HAS STAR POWER THAT THESE COMPETITORS, POTENTIALLY EVEN MICROSOFT THAT HAS TEASED A HANDHELD CONSOLE, DOES NOT. CAROLINE: WHAT ARE ANALYSTS SAYING TO THE DATE, PRICE POINT, RELEASE. HOW MUCH ANTICIPATION? CECELIA: I TALKED TO AN ANALYST THAT IS OPTIMISTIC, IT COULD PROPEL SALES FOR THE SWITCH 2. CAROLINE: CLEVER USING THE IP. A STYLE OF MARKETING IN A WAY. WHO IS ULTIMATELY THEIR TARGET
MARKET? CECELIA: THE SWITCH 2, UNLIKE THE ORIGINAL, IS MORE OF AN INCREMENTAL CHANGE TO ITS PREDECESSOR. WHAT LOOKED BEFORE THE SWITCH LOOKED DIFFERENT AND THE SWITCH 2 IS MOSTLY JUST AN IMPROVED SCREEN SIZE, BATTERY LIFE, SMALL ADJUSTMENTS ARE THE TARGET AUDIENCE IS SOMEONE WHO LOVES THEIR SWITCH 1, AND THERE ARE HUNDREDS OF MILLIONS OF PEOPLE WHO FIT INTO THE CATEGORY, BUT WANT SOMETHING WITH MORE OF A MODERN FEEL/TOUCH. CAROLINE: AFTER EIGHT YEARS, IS IT ENOUGH OF A CHANGE? CECELIA: ANALYSTS SAY THAT IT IS.
THERE ARE MORE POWERFUL HANDHELD GAMING DEVICES ON THE MARKET NOW THAN EVER FOR A SIMILAR PRICE POINT BUT NINTENDO SELLS CONSOLES WITH THEIR EXCLUSIVE GAMES WHICH ARE WIDELY LOVED IN THE COMMUNITY. CAROLINE: WE ARE NOT WORRIED ABOUT THE CONSUMER UNDER PRESSURE LOOKING AT A PRICE POINT LIKE THAT TO UPGRADE? CECELIA: PEOPLE LOVE THEIR VIDEOGAMES AND ARE WILLING TO DO A LOT TO GET THEIR HANDS ON A NEW CONSOLE. SOMETHING THAT PEOPLE WILL BUDGET FOR YEARS IN ADVANCE. CAROLINE: PURCHASING FROM INTERNATIONAL MAKERS, TOO.
GREAT ON ALL THINGS NINTENDO. THE REST OF THE MARKET, TESLA SHARES REBOUNDING. THEY WERE AT SESSION LOWS ON THE BACK OF LACKLUSTER DELIVERIES, BUT NOW REPORTS IN POLITICO IS THAT TRUMP TOLD HIS INNER CIRCLE THAT MUSK WILL BE LEAVING SOON. ISABEL LEE JOINS US FOR MORE. MANY ARE THINKING, GOOD COME HE CAN BE MORE FOCUSED ON TESLA.
>> IN THE MORNING THE MOOD WAS GLOOMY BECAUSE TESLA SAW VEHICLE SALES FALLING THE LOUDEST -- THE LOWEST SINCE 2022. THE UNCOMMON THING IS ELON MUSK'S INVOLVEMENT WHICH SOME ANALYSTS CITED HERE AT POLITICO PUBLISH THEIR STORY AROUND 11:19. YOU SEE SHARES OF TESLA FOOT BACK GREEN. -- FLIP BACK GREEN. WITH THE POLITICAL REPORTING, MAYBE THAT MEANS THAT ELON MUSK WILL FOCUS MORE ON TESLA AND THAT WOULD MEAN LESS HEADLINES. IT REMAINS TO BE SEEN. CAROLINE: WE HAVE ANOTHER HEADLINE FROM THE NEW YORK TIMES. AMAZON PUTS IN A LAST-MINUTE
BID TO ACQUIRE TIKTOK. IT HAS BEEN REPORTED BY THE NEW YORK TIMES. AMAZON SHARES ARE SPIKING HIGHER. THE INVESTOR REACTION SEEMING TO LIKE THE INTEGRATION OF SOCIAL MEDIA WITHIN THE AMAZON BROAD REMIT SAYING THE AMAZON BID OFFERED A LETTER TO VANCE AND LUTNICK. THE COMMERCE SAVED TERRY -- COMMERCE SECRETARY REACHING OUT FOR AMAZON RESPONSE.
IT WAS RUMORED IN THE MARKET THAT THERE MAY BE AN ACQUIRER. AMAZON IN MANY WAYS HAS THE SHEER SCALE OF MONEY AND CASH TO BE ABLE TO AFFORD IT. THE QUESTION IS, REGULATOR HE. WILL THEY BE ALLOWED TO PURCHASE SUCH A SIGNIFICANT ASSET WHEN THEY ALREADY HAVE THE AND MANY A REGULATOR BREATHING DOWN THEIR NECK WHEN IT COMES TO M&A OF LATE. NEW YORK TIMES COMING IN WITH REPORTING THE AMAZON MADE A LAST-MINUTE OFFER TO ACQUIRE ALL OF TIKTOK. THE U.S. PART OF BYTEDANCE. THAT DOES IT FOR THIS EDITION
OF BLOOMBERG TECHNOLOGY. YOU CAN FIND OUR PODCAST ON THE TERMINAL, APPLE, AND IHEART. THIS IS BLOOMBERG "TECHNOLOGY." ♪
2025-04-04