US AI Diffusion Rule, The Future of High-Speed Travel | 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. ED: LIVE FROM SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, THE TRUMP ADMINISTRATION MOVES TO RESCIND THE A.I. RULE LAUNCHED BY PRESIDENT BIDEN, LOOKING TO DRAW ITS OWN APPROACH. PLUS THE U.S. IS CLEARING A PATH FOR SAUDI
ARABIA AND THE U.A.E. TO PURSUE THEIR A.I. AMBITIONS WITH NVIDIA AND A.M.D. WINNING MULTIBILLION DOLLAR DEALS IN THE REGION. A FAN ON SUPERSONIC COMMERCIAL FLIGHTS OVER U.S. LAND COULD SOON BE HISTORY. LET’S GET TO FINANCIAL MARKETS IN THE TECHNOLOGY SECTOR AND A.I. INFRASTRUCTURE. THESE ARE THE BIG MOVERS TO THE UPSIDE. WE TALKED ABOUT IT IN THE LAST
24 HOURS, THE DEALS THAT NVIDIA AND A.M.D. WANT TO SELL THEIR CUTTING-EDGE PROCESSES, OR A.I. ACCELERATORS, TO SAUDI ARABIA. NOTE THE OUTPERFORMANCE OF AMD,
UP AROUND 5%. THEY ALSO ARE DOING A $6 BILLION ADDITIONAL SHARE BUYBACK. THEY ALREADY HAD $4 BILLION OF BUYBACK OUTSTANDING. THEN THERE’S THE RETHINK ON RULES ABOUT TECHNOLOGY EXPORT CONTROLS TO THE GULF AND OTHER NATIONS. THE U.S. HAS FORMALLY MOVED TO RESCIND THE A.I.
CONFUSION RULE AND MADE IT CLEAR IT WOULD NO LONGER BE IN FORCE WHILE THE INTO CONTRACT I CAN PROCESS UNFOLDS. BLOOMBERG’S MIKE SHEPHERD JOINS US FOR MORE. WE’RE MAKING PROGRESS TOWARDS A PLACE WHERE AMERICA’S BIGGEST TECHNOLOGY COMPANIES ARE SELL THAT TECH INTO REGIONS LIKE THE GULF. BUT CHINA IS NOW A QUESTION. >> CHINA IS THE OUTSTANDING QUESTION, AND WE’RE GETTING NO SIGNAL FROM THE TRUMP ADMINISTRATION THAT THERE WILL BE ANY RELAXATION OF RESTRICTIONS WHEN IT COMES TO CHINA, ESPECIALLY NOT IN THE WEEK OF DEEP SEAT’S BREAKTHROUGH. JUST ABOUT A MONTH AGO, THE TRUMP ADMINISTRATION MOVED TO BAR NVIDIA FROM SELLING ITS CHIP TO CHINA. THIS WAS EYE DEVICE DESIGNED BY FOR THE CHINESE MARKET, AND THAT IS OUT OF CONCERN THAT THE STARTUPS IN CHINA COULD USE THIS CHIP AS PART OF THE INFERENCE MODEL THAT COULD ACHIEVE A.I. BREAK THREES.
THE SAME THING APPLIES TO AMD’S MI308 CHIP. SO WE ARE NOT SEEING ANY RELAXATION OF STANDARDS THERE. WHILE THE ADMINISTRATION IS MOVING AWAY FROM THE A.I. CONFUSION RULE, WHICH SET UP, AS YOU REMEMBER, AT LEAST THREE BROAD TIERS OF COUNTRIES GOVERNING THEIR ABILITY AND THEIR ACCESS TO BUY A.I. CHIPS FROM AMD AND FROM NVIDIA,
ESPECIALLY, THEY ARE REPLACING IT WITH SOMETHING ELSE. THIS WILL BE, WE EXPECT, A MORE BILATERAL APPROACH, THAT EACH NATION WOULD FORGE ITS OWN AGREEMENT WITH THE U.S. AND ACHIEVE SOME SORT OF SECURITY UNDERSTANDING WHEREBY CHINA WOULD BE PREVENTED FROM ACQUIRING THE TECHNOLOGY EITHER PHYSICALLY OR PERHAPS VIA THE CLOUD. THEY WOULD NEED TO SHOW SECURITY ARRANGEMENTS AND STANDARDS BEFORE THEY’D BE ABLE TO GET THROUGH THE DOOR AND ACQUIRE THOSE CHIP SETS. ED: THE STATE OF PLAY OF THE LAST 24 HOURS IS NVIDIA, THE MOST IMPORTANT U.S. TECHNOLOGY COMPANY RIGHT NOW
HAS A DEAL WITH SAUDI ARABIA. AMD HAS A DEAL WITH SAUDI ARABIA. IN TERMS OF WHAT COMES NEXT, YOU ALLUDE TO IT. WE EXPECT BILATERAL AGREEMENTS BETWEEN THE UNITED STATES, SAUDI ARABIA, AND POTENTIALLY THE UAE ON A NATION-TO-NATION LEVEL.
>> THAT’S RIGHT, AND WE WERE EXPECTING TO SEE SOME OF THAT EVEN DURING THIS TRIP. THE PRESIDENT IS STILL IN THE REGION. HE HAS LEFT RIYADH AND IS IN QATAR RIGHT NOW, PERHAPS ACCEPTING THE NEW AIR FORCE ONE. AND THEN THE NEXT STOP WILL BE IN THE UNITED ARAB EMIRATES. THEY ALSO HAVE A HUGE STAKE IN THE A.I.
GAME, AND THEY HAVE, LIKE SAUDI ARABIA, BIG AMBITIONS IN THIS AREA. THEIR G4 2 COMPANY IS REALLY LOOKING TO LEAVE A MARK IN THE REGION. ONE DEAL THAT OUR COLLEAGUE, MCKENZIE HAWKINS BROKE THE NEWS ON, WOULD BE PERHAPS ALLOWING G42 TO BUY HUNDREDS OF THOUSANDS OF THESE A.I. PROCESSORS FROM NVIDIA OVER THE NEXT SEVERAL YEARS. THAT WOULD BE A KEY
BREAKTHROUGH FOR THE COMPANY AND THE FOR THE EMIRATE, WHICH HAS ITS AMBITIONS OF EXPANDING ITS A.I. AND INTO EXPANDED TECHNOLOGY AS A WAY OF DIVERSIFYING ITS ECONOMY. IT’S REALLY CRITICAL FOR THEM TO EXPAND BEYOND JUST OIL AND GAS THAT’S MADE THEM SO RICH OVER THE YEARS. ED: MICHAEL SHEPARD OUT OF WASHINGTON, D.C., THANK YOU VERY MUCH. LET’S GET MORE ON THE MARKET REACTION.
BANK OF AMERICA SAID THAT NVIDIA AND AMD HAVE A MULTIBILLION DOLLAR OPPORTUNITY RELATED TO A.I. INFRASTRUCTURE PROJECTS, SPECIFICALLY IN SAUDI ARABIA. AND THERE’S A LOT OF BULLISHNESS OUT THERE ABOUT THE PROXIMATE CAUSES OF THE DEALS ANNOUNCED THE LAST 24 HOURS.
THE C.E.O. AND C. I.O., AND THOSE WERE DEALS BETWEEN AMERICAN TECHNOLOGY COMPANIES AND THOSE BACK GULF NATIONS OF SAUDI ARABIA. AS AN INVESTOR, WHAT DID YOU REACT AND RESPOND TO THAT NEWS? >> THANKS FOR HAVING ME, ED.
OF COURSE, IT’S OPTIMISTIC RHETORIC AND SUPER BENEFICIAL TO THE ULTIMATE EARNINGS OF THE COMPANY. WE NEED TO SEE WHEN THESE INVESTMENTS COME IN AND THE TIMING AND THE VOLUME. BUT I THINK JUST ON AN OVERALL BASIS, WHAT IT DOES IS IT REPLACES THE LOST REVENUE FROM CHINA, AND IT MAY NOT DOLLAR FOR DOLLAR, BUT IT DOES PSYCHOLOGICALLY. AND SO I’VE BEEN ON WITH YOU MANY TIMES. WE WERE BUYING IN JANUARY, FEBRUARY, AND MARCH, NOT JUST NVIDIA, BUT A NUMBER OF THE SOFTWARE-RELATED COMPANIES AROUND A.I., AND THEN, OF COURSE, TESLA. AND I THINK THAT’S A LESSON TO
EVERYONE THAT THIS TRADE IS NOT OVER. WALL STREET TENDS TO BE VERY SHORT-TERM FOCUSED INVESTORS LIKE ME TEND TO BE LONGER TERM FOCUSED. WHAT WE LEARNED YESTERDAY IS THAT IT’S CONFIRMATION THAT WE’RE EARLY INNINGS IN THIS A.I. BUILDOUT, AND IT IS POTENTIALLY THE FOURTH INDUSTRIAL REVOLUTION, AND IT IS SIMILAR TO WHAT WE SAW IN THE 1990’S IN TERMS OF PRODUCTIVITY ENHANCEMENT. ED: STAY WITH US. WOVE NEWS CROSSING THE
BLOOMBERG TERMINAL. ETORO SHARES ARE INDICATED TO OPEN AT $63 EACH, PENDING TRADING ON AN I.P.O. THAT PRICED IT AT $52 A SHARE. THE MARKET WAS 46 TO 50. ESORO BASICALLY A RIVAL TO ROBIN HOOD, THE TRADING INVESTMENT PLATFORM, ISRAEL-BASED COMPANY. THIS IS AN I.P.O. THAT WOULD GIVE THE COMPANY, AT ITS $52 I.P.O. PRICE, A MARKET CAP OF $4.3
BILLION. WHILE YOU’RE WITH US, I SEE GREEN. IS THAT ONE WAY TO PUT IT IN THIS U.S. I.P.O. MARKET?
>> I DO THINK YOU’RE RIGHT, ED. THIS ONE MAKES ME JUST A LITTLE BIT NERVOUS, BECAUSE IT’S PILING ON DAY-TRADING I THINK IN MANY REGARDS. HOWEVER, I LOVE SEEING THE RETAIL INVESTOR ENGAGED, IN FACT, MUCH MORE SO THAN THE INSTITUTIONAL INVESTOR, AND I DO THINK THAT WE’LL CONTINUE TO SEE ACQUISITIONS, M&A IN GENERAL. WE JUST LAUNCHED A MID CAP STRATEGY FOR THAT VERY REASON.
SO I DO THINK THIS IS BULLISH FOR THE ECONOMY AND THE OVERALL MARKET. I COMMEND THEM ON THEIR DAY ONE OF TRADING. ED: LET’S GET BACK TO THE RELATIONSHIP BETWEEN THE UNITED STATES AND THE GULF. WHAT WE’RE TRYING TO UNDERSTAND IS WHAT HAPPENS NEXT. OUR COLLEAGUES AT BLOOMBERG INTELLIGENCE DID THE ANALYSIS ON HOW MUCH REVENUE NVIDIA AND AMD WILL DERIVE FROM THE GULF REGION. JUST BILLION TO $2 BILLION
FOR AMD. HERE’S THE KEY. CUSHIONING THE BLOW FROM UNCHANGED CHINA EXPORTS. WE OPENED THIS PROGRAM SAYING THAT THE CONFUSION RULE HAS BEEN RESCINDED, BUT A NEW TRUMP-ERA RULE WILL COME. HOW DO YOU THINK THEY WILL APPROACH CHINA? >> I DO THINK THAT IS THE GOOD NEWS. AS I SAID EARLIER, THE DIFFICULTY FOR INVESTORS IN NVIDIA WAS WHAT WERE THEY GOING TO DO IF CHINA WAS TAKEN OFF THE TABLE AS A POTENTIAL CUSTOMER. I STILL THINK WE’LL SEE CHIPS
SOLD TO CHINA. THE QUESTION IS IN WHAT FORM. AND THEN THE QUESTION IS, HOW MUCH DOES NVIDIA AND AMD NEED THAT REVENUE IF THEY’RE OPENING UP, IF THEY HAVE OPENED UP NEW MARKETS FOR DISTRIBUTION. I THINK WHAT THE TRUMP ADMINISTRATION HAS DONE IS ISOLATE CERTAIN ADVERSARIES, SO THINK IRAN, RUSSIA, CHINA, BY GOING ON THIS GOODWILL TRIP TO THE MIDDLE EAST. ED: LET ME SHOW YOU A CHART, AND
THIS CHART SHOWS AS OF TODAY’S MARKET OPEN, NVIDIA JUMPED ABOVE APPLE AS THE WORLD’S SECOND MOST VALUABLE COMPANY. MICROSOFT REMAINS IN PLACE AS THE WORLD’S MOST VALUABLE COMPANY. GIVEN EVERYTHING THAT WE’VE DISCUSSED AND THE EVENTS OF THE LAST 24 HOURS, WHERE DO YOU NEED TO BE RIGHT NOW, NANCY, IN THE INFRASTRUCTURE PLAY OR IN THE SOFTWARE HYPER SCALE OF PLAY WITH MICROSOFT? >> I DO THINK AT THE MARGIN YOU WANT TO BE ADDING TO THE SOFTWARE PLAY. WE ADDED TO NVIDIA TWICE THIS
YEAR, BUT WE ALSO ADDED TO MICROSOFT AND THEN SOME OF THE CYBER NAMES, ORACLE AS WELL ON THE SOFTWARE SIDE. SO I THINK THAT IS GOING TO BE THE NEXT STAGE OF BUILDOUT. AND WE TOOK THE PROCEEDS FROM NAMES LIKE DELL THAT WE FELT LIKE HAD A NICE RUN RELATIVE TO GROWTH AND MARGINS WAS PROBABLY, MOSTLY WORKED OUT. THAT’S BEEN A GOOD CALL SO FAR. BUT IF YOU HAVE TO PICK, I THINK YOU WANT TO PICK SOFTWARE OVER HARDWARE. ED: NANCY, THANK YOU VERY MUCH. COMING UP ON THE SHOW -- 10 CENT WEATHERS THE TARIFF TURMOIL POSTING A REVENUE JUMP OF 13%.
WE’RE GOING TO GO TO CHINA AND TALK ABOUT THAT COMPANY NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ED: CONFIDENCE TO INVESTORS THAT CHINA’S MOST VALUABLE COMPANY COULD WEATHER A POTENTIAL GLOBAL DOWN TURN IN 2025.
FOR MORE, HENRY JONES US. WHAT ARE THE MAIN FACTORS THAT DRIVE GROWTH IN TENCENT BUSINESS RIGHT NOW? >> TWO GROWTH ENGINES TO MENTION. ONE, THE MOST IMPORTANT ONE IS THE DOMESTIC GAMING BUSINESS. THAT HAS BEEN THE KEY DRIVER FOR THE QUARTER AND THE COMPANY SAID THAT ITS EVERGREEN GAME, SUCH AS OWNER OF KINGS, HAS RECORD HIGH LEVELS OF GROSS RECEIPTS IN THE QUARTER.
THAT HAS BEEN THE MOST IMPORTANT DRIVER. AND SOME NEWER GAINS SHINE AS WELL, FOR EXAMPLE, THE 2024 RELEASE GAME CALLED "DELTA FORCE," ONE OF THE MOST PLAYED GAMES IN CHINA. ANOTHER DRIVER HAS BEEN ABOUT THE ADVERTISING REVENUE, WHICH GREW ABOUT 20% IN THE FIRST QUARTER, AND THAT’S DOWN TO THE SHORT FORM VIDEO PLATFORM, EMBEDDED THAT HAS IMPRESSED AS WELL. ED: THIS IS A COMPANY THAT’S HEAVILY INVESTING IN A.I. RESEARCH AND WAYS TO MONETIZE
TO CREATE PRODUCTS WITH A.I. WHAT HAVE WE LEARNED ABOUT THAT? >> YEAH, A LOT OF FOCUS, AS YOU CAN IMAGINE, ON THE ANALYST CALL ABOUT WHAT’S YOUR PLAN ABOUT A.I. INVESTMENT AND HOW YOU LOOK ABOUT THE RECENT BAND ON RESTRICTIONS ON A.I. CHIPS IN CHINA. AND THE COMPANY GAVE A VERY LONG BUT PRETTY HONEST ANSWER IN TERMS OF RESTRICTIONS. WE ARE TAKING ABOUT THE COMPANY DOUBLING ITS CAP EX VERSUS A YEAR EARLIER, ALTHOUGH EASING FROM THE LEVELS. IN TERMS OF RESTRICTIONS, THE COMPANY SAID IN TERMS OF THE KEY BUSINESSES, FOR EXAMPLE, THE PROMOTION OF ADVERTISING, AS WELL AS THE GAMING BUSINESS, AND THE CURRENT SPECTACLE OF A.I. CHIPS IS PROBABLY ENOUGH.
BUT IN TERMS OF A.I. TRAINING, THE COMPANY NEEDS MORE POWERFUL A.I. CHIPS, THE MORE POWERFUL CLUSTER OF CHIPS. HOWEVER, THE FOCUS FOR NOW IS
TO IMPROVE ON THE RISK SIDE GIVEN THE RESTRAINT. ED: HENRY, THANK YOU VERY MUCH. ANOTHER STORY WE’RE TRACKING, NO FEE BANKING STARTUP CHIME FILED PUBLICLY FOR AN I.P.O.,
RESUMING PLANS IT PLACED ON PAUSE WHEN TRUMP’S TARIFF PLANS ROILED MARKETS LAST MONTH. IT’S THE LATEST COMPANY FAST TRACKING ITS PROSPECTS. FOR MORE, KATIE JOHNS US. WE’RE TRACKING SO MANY NAMES AT ONCE AGAIN, WHICH IS INTEREST.
TELL ME ABOUT CHIME, WHAT WE KNOW ABOUT THIS, THE MECHANISM AT WHICH THEY WANT TOCK TO MARKET. >> YEAH, SO WE SAW CHIME’S I.P.O. FILING YESTERDAY. THEY’RE THE NO-FEE BANK THAT WAS VALUED AT $25 BILLION IN THE 2021 BOOM. THEY’VE RAISED A LOT OF MONEY FROM MANY DIFFERENT INVESTMENTS, INCLUDING MEMO VENTURES. THEY USUALLY, WHEN THERE’S A FILING, YOU WANT TO GO PUBLIC A COUPLE OF WEEKS AFTER YOU START YOUR ROAD SHOW. SO USUALLY WITHIN A MONTH,
ALTHOUGH RECENTLY THE TARIFFS HAVE DELAYED SEVERAL OF THE ONES THAT HAD FILINGS PUT PUBLIC. BUT WE’RE STARTING TO SEE I.P.O.’S AGAIN WITH ETORO. ED: IF YOU’RE JUST JOINING THE PROGRAM, JUST BEFORE WE CAME ON AIR, ETORO’S U.S. SHARES WERE INDICATED TO OPEN
AT $63.50 EACH. THE I.P.O. PRICED AT $52. WE’RE WAITING FOR THAT START OF TRADING. ETORO IS INTERESTING. ISRAEL-BASED TRADING PLATFORM, KIND OF A RIVAL TO ROBIN HOOD. TELL ME ABOUT THIS I.P.O. >> SURE, IT WAS A LONG TIME COMING, NOT JUST WITH I.P.O.’S GETTING DELAYED REPEATEDLY THE LAST FEW YEARS, BUT ALSO THIS IS A STARTUP THAT’S BEEN AROUND FOR MORE THAN 15 YEARS. THEY’RE FINALLY GOING THROUGH
WITH THEIR I.P.O. IF YOU LOOK AT A COMP, ROBIN HOOD HAS BEEN SURGING YEAR TO DATE. IT MAKES A LOT OF SENSE THAT ETORO WOULD WANT TO GO PUBLIC IN A MARKET LIKE THIS. ED: KATIE, THANK YOU VERY MUCH. COMING UP ON "BLOOMBERG TECHNOLOGY," WE’RE GOING TO HEAR FROM TWILLO. THIS IS "BLOOMBERG TECHNOLOGY."
ED: I CAUGHT UP TWILIO’S C.E.O. AS THE COMPANY IS BRINGING BACK ITS DEVELOPER CONFERENCE TO SAN FRANCISCO IN PERSON FOR THE FIRST TIME SINCE 2019. AS A PART OF THAT, THEY ANNOUNCED A NEW PARTNERSHIP WITH MICROSOFT. WITH RESPECT TO MICROSOFT, WE
ANNOUNCED A MULTIYEAR STRATEGIC PARTNERSHIP. OBVIOUSLY THEY’RE AN INCREDIBLE BRAND. THEY’VE GOT GREAT ENTERPRISE SCALE. WE REALLY VIEW IT AS TWO GREAT COMPANIES COMING TOGETHER TO BE ABLE TO DELIVER ON THE VISION THAT WE’VE LAID OUT, IN PARTICULAR WE’RE GOING TO USE THEM FOR THEIR AMAZING A.I. TECHNOLOGY. I THINK THEY’VE DONE SOME REALLY INTERESTING THINGS WITH RESPECT TO AZURE A.I.
WORK LOADS. AGAIN, WE’RE GOING TO BRING THAT TOGETHER WITH OUR CONTEXTUAL DATA CAPABILITIES, PLUS OUR COMMUNICATIONS, ALL IN ONE PLATFORM. BUT I THINK IMPORTANTLY WE’RE INCREASINGLY GOING TO MARKET AS AN INFRASTRUCTURE LAYER, ONE THAT UNLOCKS THE CUSTOMER EXPERIENCE LAYER OF THE INTERNET, IF YOU WILL, AND I THINK MICROSOFT IS A BIG PART OF THAT STORY. ED: DO WE VIEW THIS AS KIND OF A SALES CHANNEL MOVE? THERE’S AN ARGUMENT THAT WORKING WITH MICROSOFT IN THIS WAY ON A SHARED PLATFORM HELPS TWILIO GO OFF FOR A MUCH LARGER ADDRESSABLE MARKET IN WHICH IT HASN’T HISTORICALLY PLAYED.
>> I THINK THAT’S DEFINITELY A POSSIBILITY AS TIME GOES ON, BUT WE’RE REALLY STARTING FROM THE FOUNDATIONS ASSIST A TECHNOLOGY PARTNERSHIP. WE BOTH PRIDE OURSELVES ON DELIVERING TECHNOLOGIES FOR BUILDERS. AS I MENTIONED A MOMENT AGO, BUILDER IS VERY MUCH IN THE ETHOS OF THE COMPANY. THEIR TECHNOLOGY CONFERENCE,
WHICH IS IN A WEEK, IS LABELED BUILD. SO I THINK THAT JUST FITS NICELY TOGETHER. I THINK WE’LL SEE HOW THINGS GO THERE. WE’RE VERY PROUD OF SOME OF THE
ABILITIES THAT WE’RE LAUNCHING TOGETHER, AND I THINK IT DOES OPEN THE DOOR FOR COMMERCIAL RELATIONSHIP DOWN THE ROAD. ED: THAT WAS TWILIO’S C.E.O. FROM PARTNERSHIPS TO TEAM SPORTS, THAT’S WHAT BENCH CAPITAL HAS ALWAYS BEEN A BIT OF. BUT NOW WE’RE SEEING THE RISE OF THE SOLO GENERAL PARTNER, WHERE JUST ONE PERSON RAISES THE MONEY AND MAKES INVESTING DECISIONS.
JOSHUA IS ONE SUCH SOLO G.P. HIS FIRM JUST ANNOUNCED A $30 MILLION RAISE FOR ITS FUND. JOSHUA IS WITH ME IN THE STUDIO. AND THOSE WATCHING PROBABLY KNOW YOU BEST AS THE C.E.O. OF DO NOT PAY, WHICH SHORT DESCRIPTION, IS AN A.I.-POWERED LAWYER CHAT GOT THAT HELPS YOU GET OUT OF PARKING TICKETS.
WHERE DO YOU WANT TO RAISE THAT MUCH MONEY AND INVEST IT ON YOUR OWN WITHOUT ANY PARTNERS? >> SO I SPECIALIZE IN BACKING YOUNG FOUNDERS. I’M AN INVESTOR MORE THAN ANYONE ELSE. YOUNG, UNDISCOVERED TALENT IS REALLY A GREAT INVESTMENT OPPORTUNITY. I WAS LUCKY TO INVEST IN OWNER, WHICH YESTERDAY ANNOUNCED AROUND BILLION VALUATION. ED: RIGHT, YOU TOOK THEM FROM BASICALLY PRE-SEED WHEN YOU MADE YOUR INVESTMENT TO UNICORN STATUS. YOU’RE NOW SAYING YOU THINK YOU CAN DO THIS.
>> I THINK EVERYONE IS CHASING HYPE, BUT YOUNG FOUNDERS ARE REALLY THE FUTURE. AND I LOVE UNDISCOVERED PEOPLE THAT EVERYONE IS PASSING ON. AND I GO ALL IN. I HAVE ONE STAYING WITH ME RIGHT NOW IN MY APARTMENT. ED:
WHAT DO YOU MEAN? YOU’VE INVITED SOMEONE YOU’VE UNVESTED IN? >> YES, GIVE HUM A HOME, GIVE THEM THEIR FIRST CHECK, AND REALLY PUT THEM ON THE CIRCUIT. FOUNDERS LOVE WORKING WITH OTHER FOUNDERS. ED: THE CORE QUESTION HERE IS, WHY IS THAT MORE BENEFICIAL TO THE FOUNDER THAN THEM TAKING A CHECK FROM ONE OF THE GIANT FIRMS? >> THEY’RE NOT EVEN READY TO TAKE ONE FROM THE GIANT FIRM.
I CATCH THEM ON DAY ONE. EVERYONE IS CHASING HYPE. I THINK THE WAY TO WIN IS CREATE YOUR OWN WINNERS. ED: IT’S INTERESTING WHERE YOU RAISED THE MONEY FROM. ONE OF THE ANCHORS IS SEQUOIA. HAVE I LARGE FIRM. MARK ANDRIESE AN ALSO CONTRIBUTED TO THE FUND PERSONALLY WITH HIS OWN MONEY. WHY MIGHT HE DO THAT? >> I THINK HE HAS A TRADITION OF PUTTING FUND MANAGERS IN BUSINESS, AND THIS IS MY FIRST INSTITUTIONAL FUND.
I SHOULD MENTION HE’S ALSO THE FIRST INVESTOR IN DO NOT PAY. ED: HE DID THAT THROUGH HIS GIANT FIRM. NOW HE’S GIVING YOU MONEY PERSONALLY, BECAUSE HE FEELS THAT YOU CAN, WHAT, GET TO FOUNDERS EARLIER THAN ANDREESSEN CAN AT THIS STAGE. >> I WOULD SAY IT’S ABOUT HELPING ME. ED: WHAT’S THE STRATEGY? WHAT KIND OF CHECKS DO YOU WRITE? WE’RE TALKING EARLY STAGE.
>> SO, THERE’S SO MUCH NOISE RIGHT NOW. PEOPLE ARE DOING DOZENS OR EVEN HUNDREDS OF DEALS A YEAR. I ONCE HAD THE OPPOSITE APPROACH. I TAKE ONE PERSON EVERY MONTH OR EVERY OTHER MONTH AND GO ALL IN FOR THEM, AND THAT CAN BE A 200K CHECK AND AS HIGH AS A MILLION DOLLARS. ED: IS IT MORE AKIN TO AN INCUBATOR THAN TRADITIONAL SEEDS? >> IT’S REALLY UP TO THE FOUNDER TO BUILD THAT BUSINESS.
IT’S ALMOST LIKE AN INCUBATOR. I FEEL LIKE I’M A RAILROAD CONDUCTOR PUTTING THEM ON THE RIGHT TRACK. ED: YOU ALSO HAVE A JOB AT DO NOT PAY. HOW ARE YOU GOING TO MANAGE THAT, LEADING YOUR OWN STARTUP AS WELL AS BACKING OTHERS, FINDING THE NEXT DO NOT PAY? >> FOUNDERS REALLY LOVE TO WORK WITH OTHER FOUNDERS, AND I THINK IT’S AN UNFAIR ADVANTAGE BEING A FOUNDER AND INVESTOR. NO ONE LIKES TO WORK WITH A PROFESSIONAL INVESTOR, AND BECAUSE I CAN GIVE THAT FOUNDER ENERGY AND SHARE SOLUTIONS TO PROBLEMS THAT I’VE OVERCOME, FOUNDERS REALLY APPRECIATE THAT.
ED: WHAT ARE THE LEARNING YOU’RE TAKING FROM THE DO NOT PAY STORY? AND HOW YOU WANT TO APPROACH THIS? I RECALL A STORY WHERE YOU HAD BREAKFAST WITH MARK DNDREESSEN IN 2016, AND AT THAT TIME IT WAS A NONPROFIT, BUT YOU WERE CONVINCED OTHERWISE BY HIM. >> YES, AND THE TINIEST MOMENT OR STRATEGY CHANGE CAN CHANGE EVERYTHING. AND I WANTED TO BE THAT FOR MY FOUNDERS. I’VE DEALT WITH PROBLEMS THAT I CAN HELP THEM UNIQUELY WITH. SO, FOR EXAMPLE, HOW TO GET THE
APP CLASSIFIED SO THEY’RE NOT PAYING 30% TO APPLE, WHICH IS SOMETHING WE ALWAYS DEAL WITH AT DO NOT PAY. ED: THE C.E.O. OF DO NOT PAY, PLUS THE FOUNDER OF BROWDER CAPITAL. THANK YOU VERY MUCH. COMING UP, WE’RE GOING TO TALK
MORE ABOUT WHAT THESE DEALS IN THE GULF MEAN FORAY DEVELOPMENT WITH SOMEONE WHO’S BEEN INVESTING IN A.I. FOR A DECADE. HE JOINS US NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ >> APPLE IS INVESTING $500 MILLION. NVIDIA IS INVESTING, AND I SEE MY FRIEND IS HERE, THAT’S VERY GOOD, WHEREVER YOU MAY BE, THANK YOU VERY MUCH, BECAUSE HE’S PUTTING IN $500 MILLION. TSMC IS INVESTING $200 MILLION, AND WITH THIS TRIP, WE’RE ADDING OVER TRILLION MORE IN TERMS OF INVESTMENT. ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I’M ED LUDLOW IN SAN FRANCISCO.
THAT WAS TRUMP IN RIYADH YESTERDAY TALKING UP ALL THE DEALS THAT HAVE TAKEN PLACE. WHEN IT COMES TO FINANCIAL MARKETS, THERE’S FATIGUE OUT THERE. ALTHOUGH UP BASICALLY HALF A PERCENTAGE POINT IN THE NASDAQ 100 IS OUTPERFORMING OTHER MAJOR INDICES. WHAT THE PRESIDENT ALSO SAID LAST NIGHT, HE WANTS AMERICA TO LEAD IN BOTH THE THEATERS OF A.I.
AND CRYPTO, ALTHOUGH BITCOIN UNDER PRESSURE, 103,000 OR SO U.S. DOLLARS. THESE ARE THE SINGLE NAMES THAT WE’RE REALLY FOCUSED ON IN TECH STOCKS RIGHT NOW. THEY ARE THE CHIPMAKERS. NVIDIA AND AMD BOTH SECURING
MULTIBILLION DOLLAR DEALS TO SHIP THEIR LATEST GENERATION A.I. ACCELERATORS, AND BLOOMBERG ALSO CITING SOURCES THAT A DEAL WITH UAE IS COMING AS WELL. AMH, THE CENTER PIECE OF ALL OF THIS, IS THE DEAL BETWEEN TWO LEADING, MAYBE MORE THAN TWO LEADING AMERICAN TECHNOLOGY COMPANIES, AND THEIR ACCESS TO MARKETS IN THE GULF.
>> YEAH, ABSOLUTELY. THIS IS REALLY ONE OF THE STANDOUT PILLARS OF THE PRESIDENT’S TRIP, AND IT’S TRANSFORMATIONAL FOR ALL THESE GULF COUNTRIES, WHICH TRADITIONALLY HAVE RELIED UPON THEIR INFLUENCE, THEIR WEALTH BEING FROM NATURAL RESOURCES, TO NOW THINKING ABOUT THE FUTURE. AND TO HAVE THAT FUTURE, TO HAVE A.I. DATA CENTERS, THEY NEED TO GET THEIR HANDS ON ADVANCED SEMICONDUCTORS. AND YOU KNOW AS WELL AS ANYONE ELSE, UNDER THE BIDEN ADMINISTRATION THERE WAS FRUSTRATION WITH GEOPOLITICAL SWING STATES ON GETTING ACCESS TO ADVANCED TECHNOLOGY. THERE WAS SOMETHING CALLED THE DIFFUSION RULE.
THE TRUMP ADMINISTRATION DECIDED THEY WERE GOING TO CANCEL IT. I ACTUALLY QUICKLY HAD A CONVERSATION WITH JENSEN HUANG LAST NIGHT, WHO WAS WALKING INTO THIS DINNER WITH THE PRESIDENT IN RIYADH, AND I SAID WHAT DO YOU THINK, THEY RESCINDED THE DIFFUSION RULE, AND HE SAID RESCINDED? CANCELLED. AMD, NVIDIA ARE ELATED ABOUT THIS NEW MARKETPLACE THEY CAN COME TO WHEN IT COMES TO ADVANCED TECHNOLOGY.
BUT YOU KNOW THERE’S STILL THIS CHINA QUESTION LOOMING OVER ALL OF THESE DEALS. ED: THE BUSINESS IN THE GULF, HE CAN TAKE MARKET OPPORTUNITY AND MAKE MUCH OF IT BACK IN THE GULF. THERE ARE MORE DEALS TO BE DONE. WHAT HAPPENS NEXT THERE?
>> HE’S GOING TO GO TO UAE, AND WE HAVE A REPORT THAT POTENTIALLY THE UAE IS GOING TO BUY 100 MILLION OF NVIDIA’S HIGH-TECH, THESE ADVANCED SEMICONDUCTOR CHIPS. NO SURPRISE IN THE SENSE THAT SHEIK WAS IN THE WHITE HOUSE JUST A FEW WEEKS AGO, AND HE SAID HE THEN LEFT, AND THE UAE ANNOUNCED AN INVESTMENT THEY WOULD LIKE TO MAKE. BUT PART OF THE DEAL IS TO MAKE THAT KIND OF INVESTMENT, THEY NEED ACCESS TO THESE CHIPS. YOU TALK ABOUT NVIDIA AND THE POTENTIAL NEW MARKET SHARE THEY CAN GET IN THE GULF. WHEN I TALK ABOUT CHINA, AND A CONVERSATION THAT IS HAPPENING IN THE REGION, ESPECIALLY BILATERAL CONVERSATIONS, AND PROBABLY SOME OF THESE CONVERSATIONS STILL TO BE HAD, BECAUSE THEY’RE WORKING THIS OUT, IS THAT AND THESE COUNTRIES GET ACCESS TO THESE CHIPS, HOW DO THEY MAKE SURE THE TECH DOES NOT LEAK TO CHINA, THAT IT’S STILL A NATIONAL CONCERN THAT HAS BIPARTISAN CONCERN IN WASHINGTON, D.C. THESE GULF STATES WANT TO WORK
WITH THE UNITED STATES TO MAKE SURE THEY CAN DO THAT. BUT POTENTIALLY YOU CAN SEE THESE A.I. DATA CENTER HUBS, WHERE THEY’RE ON THESE LANDS, WHETHER IT’S THE KINGDOM OF SAUDI ARABIA, BUT THE U.S., AND THIS IS A STORY I HAVE REPORTED ON, BUT THE U.S.
WOULD CONTROL THE ACCESS TO THAT TECH. THEY WANT TO MAKE SURE THAT TECHNOLOGY DOES NOT GET INTO THE HANDS OF BEIJING. ED: THE U.S. CONTROLLING ACCESS. ANNMARIE, THANK YOU VERY MUCH. THE GEOPOLITICS OF A.I.
TO THE INVESTING SIDE AND BRING IN SOMEONE WHO’S BEEN INVOLVED IN THE SECTOR FOR A LONG TIME. A PARTNER AT SEQUOIA CAPITAL, WHERE LAST YEAR NEARLY 70% OF THE STOCK UP WITH A.I. COMPANIES. LET’S START WITH SIMPLY YOUR REACTION TO THE A.I. INFRASTRUCTURE DEALS OF THE LAST 24 HOURS. U.S. TECHNOLOGY GOING TO THE GULF AND SETTING UP DATA CENTERS IN THAT NATION.
>> WELL, THANK YOU, ED. ALWAYS GREAT TO BE HERE. THESE NEW DEALS ARE TESTAMENT TO THE FACT THAT A.I., ARTIFICIAL INTELLIGENCE IS NOT JUST A MATTER OF CORPORATE SUCCESS, IT IS A MATTER OF NATIONAL IMPERATIVE. IT IS A GREAT SIGN OF THE IMPORTANCE OF THIS INDUSTRY.
I THINK BACK TO A DECADE AGO, AND WE HAD CONCERNS ABOUT THE U.S. STAYING AHEAD OF A.I. THERE ARE REALLY FOUR KEY PILLARS TO A.I. STRENGTH. THERE’S A DISPUTE. THERE’S THE POWER. THERE’S THE DATA. AND THERE’S THE ALGORITHM. THINKING BACK TO THE LAST AVENUE OF A.I., THE REASON WHY THE UNITED STATES HAS BEEN SO FAR AHEAD IS THAT FOURTH PILLAR, THE ALGORITHMS. SO AS
WE DEVELOP NEW TECHNOLOGICAL ALLIES AROUND THE WORLD, FOR COMPUTE, FOR POWER, FOR DATA, IT’S REALLY IMPORTANT THAT WE STAY ON THE ABSOLUTE FOREFRONT WHEN IT COMES TO ALGORITHM ADVANCEMENT. WE HAVE THE BEST RESEARCHERS IN THE WORLD, THE BEST ENGINEERS IN THE WORLD. ED: I’M SORRY TO INTERRUPT, BUT BREAKING NEWS CROSSING THE TERMINAL FROM THE WHITE HOUSE. PRESIDENT TRUMP HAS SECURE THE .2 TRILLION IN ECONOMIC COMMITMENTS IN QATAR, THE COMMITMENT IS .2 TRILLION, ACCORDING TO THE WHITE HOUSE.
THERE ARE ECONOMIC DEALS WORTH $243.5 BILLION. THIS IS SOMETHING THE PRESIDENT HAS ANNOUNCED ON THE GROUND IN DOHA. WE WERE JUST SPEAKING WITH ANNMARIE, WHO IS IN DOHA. SHE NOTED THIS IS WHAT’S PENDING.
WE DON’T HAVE THE SPECIFICS IN TERMS OF SECTOR, IN TERMS OF COMPANIES INVOLVED, BUT AS WE GET THAT, WE’LL BRING IT TO YOU. RIGHT NOW WE’LL GO BACK TO THE CONVERSATION WE WERE HAVING, WHICH IS THERE IS U.S. LEADERSHIP IN THE FIELD OF A.I. INFRASTRUCTURE. YOU BASICALLY BREAK DOWN THE FOUR CATEGORIES. ONE THAT IS INCREASINGLY CROSSING MY DESK IS A.I. MEMORY IN THE CONTEXT OF AGENTIC A.I., SOMETHING THAT PEOPLE SAY WE NEED TO INVEST IN
AND SOLVE IT. I PERSONALLY DON’T UNDERSTAND IT. WHY IS YOUR INDUSTRY TALKING ABOUT IT? >> YOU’RE EXACTLY RIGHT. THERE’S COMPUTE, THERE’S
OBVIOUSLY THE DATA, THERE’S OBVIOUSLY THE POWER AND THE ALGORITHM. BUT ANOTHER IMPORTANT COMPONENT IS MEMORY. WHEN YOU INTERFACE WITH AN AGENT, YOU WANT IT TO REMEMBER YOU, OF COURSE, BUT IT ALSO HAS TO REMEMBER ITSELF. THINK ABOUT A PHYSICIAN, FOR
EXAMPLE. EVERY TIME THEY INTERFACE WITH A PATIENT, AN AGENT IS GOING TO BE ABLE TO HELP THEM THINK BACK TO PREVIOUS INTERACTIONS, NOT JUST WHAT THE PATIENT SAID, WANT JUST THEIR VITALS, NOT JUST DATA, BUT OVER TIME, USING TOOLS AND COMPANIES LIKE OPEN EVIDENCE. THE PHYSICIAN WILL BE ABLE TO EXACTLY WHAT THE INTERACTION WAS LIKE, AND THAT IS GOING TO BECOME MORE AND MORE IMPORTANT. ED: THE QUESTION IS WHERE DOES THIS ACTIVITY TAKE PLACE. THE SUBJECT OF BLOOMBERG’S BIG
TAKE IS DEEP SEEK. THIS PRESENTS THE HYPOTHESIS THAT THE SUDDEN EMERGENCE LAST MONTH ILLUSTRATED HOW CHINA’S INDUSTRY IS THRIVING, IRRESPECTIVE OF U.S. POLITICAL POLICY. WHEN YOU THINK ABOUT THE SERIES
YOU’VE OUTLINED, DO YOU AGREE THAT CHINA’S A.I. INDUSTRY IS THRIVING, BUT ALSO LOOKING AT THE FAMOUS VIEW THAT IS YOUR INDUSTRY IS LOOKING AT HERE. >> WELL, IT IS TRUE THAT THEY HAVE AMAZING RESEARCHERS THERE, BUT IT’S ALSO TRUE THAT WE HAVE SOME OF THE MOST CREATIVE, BRILLIANT RESEARCHERS ON THE PLAN HE HAD. HERE’S AN EXAMPLE. JUST RECENTLY WE HOSTED A CONFERENCE. WE BROUGHT TOGETHER 150 OF THE TOP MINDS IN THE INDUSTRY.
THIS IS EVERYONE. AND THE NUMBER ONE TECHNICAL TOPIC OF THE CONFERENCE WAS A CONCEPT CALLED TOOL USE. TOOL USE IS ALL ABOUT A.I.’S WORKING WITH EACH OTHER.
WE’RE TEACHING THE COMPUTER HOW TO USE THE COMPUTER. AND THERE WAS FORTUNATELY A BIG ADVANCEMENT IN OUR INDUSTRY OVER THE PAST FEW MONTHS. A NEW PROTOCOL CALLED MODEL CONTEXT PROTOCOL. THINK ABOUT EACH A.I. AGENT AS AN EXPERT. THINK ABOUT EVERY EXPERT AS AN EXPERT. THEY’RE REALLY GOOD AT REMEMBERING PREVIOUS INTERACTIONS WITH CUSTOMERS. THE ISSUE IS THAT THOSE EXPERTS
DON’T NECESSARILY SPEAK THE SAME LANGUAGE. WHAT THIS NEW PROTOCOL ALLOWS IS A UNIVERSAL TRANSLATION MECHANISM, SO THAT ALL THESE A.I. AGENTS AND ALL THESE SOFTWARES CAN COMMUNICATE. THAT IS PIVOTAL TO US IN THE UNITED STATES STAYING AHEAD.
WE HAVE TO BE WORKING TOGETHER. I’LL GIVE AN EXAMPLE OF WHAT THIS COULD DO FOR US. WE HAVE A PORTFOLIO COMPANY CALLED ROCK THAT HELPS THE BEST SELLERS DO REALLY GREAT RESEARCH BEFORE MEETING WITH A BUYER. THEY CANNOT ONLY DO THAT
RESEARCH NOW, THEY USE IT TO CONNECT AND ACTUALLY MAKE A PITCH DECK DIRECTLY ON THE SPECIFIC NEEDS OF THAT USER. THEY CAN EVEN WRITE AN ENTIRE DEMO. THAT’S HOW WE STAY AHEAD OF THE CURVE, COLLABORATION, WORKING TOGETHER AS RESEARCHERS AND ENGINEERS. ED: GREAT TO HAVE YOU BACK HERE ON "BLOOMBERG TECHNOLOGY." THANK YOU VERY MUCH. COMING UP, THE SLEEK FITNESS STARTUP JOINS US TO DISCUSS ITS GROWTH STRATEGY AND ITS NEW PRODUCT LINEUP. THAT CONVERSATION IS NEXT. THIS IS "BLOOMBERG TECHNOLOGY."
ARMSTRONG FROM COINBASE. THIS IS BLOOMBERG. SLEEP FITNESS START EIGHT SLEEP IS LAUNCHING AN EXPANDED SUITE OF PRODUCTS TODAY. THE COMPANY MAKES HIGH-TECH, TEMPERATURE-CONTROLLED MATTRESS COVERS AND SYSTEMS. IT’S ALSO EXPANDING INTO NEW MARKETS, WHILE TALKING UP A POTENTIAL I.P.O. EIGHT SLEEP’S C.E.O. JOINS US FROM NEW YORK. THIS IS INTERESTING. IN MY WORLD, EVERYONE AROUND ME
TRACKS THE DATA SO CAREFULLY, MAYBE THROUGH A WEARABLE. WHAT IS THE TECHNOLOGY YOU’RE OFFERING AND HOW IT HELPS THE CONSUMER? >> YEAH, OF COURSE. WE DEVELOP OUR LATEST TECHNOLOGY, IT’S CALLED POD 5. AT EIGHT SLEEP, WE DEVELOP TECHNOLOGIES TO IMPROVE YOUR SLEEP PERFORMANCE.
AND POD 5 IS A SYSTEM THAT CONTROLS YOUR BODY TEMPERATURE, YOUR ELEVATION, AND SOUND TO MAXIMIZE YOUR SLEEP. IT DOES EVERYTHING BASED ON YOUR BIOMET RIKS. WE’RE ALSO ABLE TO TRACK EVERYTHING ABOUT YOUR SLEEP AND HEALTH IN REAL TIME, AND THEN WE ADJUSTMENT ENVIRONMENT FOR YOU TO IMPROVE YOUR NIGHT OF SLEEP. ED:
ARE YOU GET ACCESS TO THIS AS PARTED OF INSURANCE? ARE YOU PART OF A SYSTEM THAT’S A GO TO MARKET CHANNEL FOR YOU? >> NOT YET. RIGHT NOW WE JUST SELL DIRECT TO CONSUMERS, BUT IT’S PART OF OUR VISION. AT THE END OF THE DAY, WE SEE A FUTURE WHERE THE POD WILL BE REIMBURSABLE BY INSURANCE COMPANIES, BECAUSE WE HAVE HARD DATA THAT WE CAN IMPROVE YOUR SLEEP BY UP TO 34%. ED:
YOU’VE HAD INCREDIBLE GROWTH. REVENUE IS 10X SINCE 2020. THOSE ARE NUMBERS, BUT WHAT IS IT THAT’S DRIVING THE GROWTH? WHAT IS IT, THE DEMOGRAPHIC OF THE CONSUMER, THE SALES CHANNEL THAT’S HELPING YOU? >> FIRST OF ALL, I THINK OUR RESULTS. PEOPLE REALLY LOVE THE PRODUCT, AND THEY SEE THE BENEFIT. SOME OF OUR CUSTOMERS, THEY ALSO USE WEARABLES, AND THEY CAN SEE THE DIFFERENCE WHEN THEY USE THE POD OR DON’T. BUT WHAT IS REALLY DRIVING OUR GROWTH, WHICH IS CONNECTED TO THESE, IS WORD OF MOUTH. VERY LARGE PART OF OUR REVENUE IS JUST BECAUSE OUR CUSTOMERS RECOMMEND THE PRODUCTS TO OTHER PEOPLE. AND AT THE SAME TIME, WE KEEP
EXPANDING. RIGHT NOW WE’RE IN 30 COUNTRIES, AND WE EXPECT TO OPEN ASIA BY THE END OF THE YEAR. ED: I THINK YOU’RE ALSO LOOKING AT SAUDI ARABIA, GIVEN THE NEWS OF THE LAST 24 HOURS. WHEN DID THAT COME ABOUT? >> YEAH, WE WERE SO LUCKY. WE DIDN’T KNOW ABOUT THAT.
AND WE ARE ANNOUNCING SAUDI ARABIA TODAY, WHICH WE EXPECT TO BE A VERY LARGE MARKET. WE WERE ALREADY IN THE UAE. THE FACT THAT THE PRESIDENT AND SO MANY OTHER KEY FIGURES ARE THERE IS AMAZING. ED: YOU’RE ALSO EVALUATING CHINA. HOW REALISTIC IS IT FOR A MARKET PERSPECTIVE WITH THE END USER, BUT ALSO SUPPLY CHAIN FOR YOU TO GO INTO THAT MARKET? >> YEAH, WE EXPECT TO LAUNCH IN CHINA BY THE END OF THE YEAR. IT’S AMERICA WE KNOW VERY WELL. WE HAVE BEEN MANUFACTURING IN CHINA SINCE 2014. AND WE EXPECT TO START SELLING
IN THAT MARKET, AS I SAY, BEFORE THE END OF THE YEAR IN Q1 AT THE LATEST. ED: WILL YOU SUPPORT YOUR GROWTH WITH AN I.P.O.? >> I THINK IT’S PART OF OUR STRATEGY, ABSOLUTELY. I THINK GREAT COMPANIES LIKE TESLA AND APPLE, THEY ALL WENT PUBLIC VERY EARLY. I THINK IT WILL GIVE US A DISCIPLINE, AND IT WILL ALSO PROVE THAT WE ARE HERE TO STAY.
WE ARE VERY AMBITIOUS ABOUT WHAT WE CAN DO FOR HUMANITY TO IMPROVE THEIR HEALTH AND THEIR SLEEP. ED: WE’RE RUNNING SHORT ON TIME, BUT I WANT TO GET TO YOUR CORE COMPETENCY. HAVE YOU GOT BRILLIANT SOFTWARE ENGINEERS? WHAT IS YOUR BIGGEST ADVANTAGE? >> I MEAN, ALL OUR ENGINEERS, THEY COME FROM THE BIGGEST COMPANIES IN THE WORLD IN TERMS OF A.I. WE REALLY APPLY A.I. AND TO YOUR SLEEP AND HEALTH. I THINK THERE’S A COMPANY IN THE WORLD IMPROVING YOUR SLEEP WITH SOFTER TECHNOLOGY AND OTHERS. ED: THE C.E.O. OF EIGHT SLEEP. GREAT TO HAVE YOU HERE ON "BLOOMBERG TECHNOLOGY."
THANK YOU. COMING UP, SUPERSONIC TRAVEL COULD BE COMING BACK TO THE U.S. AND SOON. WE SPOKE WITH BOOM SUPERSONIC C.E.O.
NEXT ON "BLOOMBERG TECHNOLOGY." ED: A BAN ON SUPERSONIC COMMERCIAL FLIGHTS OVER U.S. LAND COULD SOON BE HISTORY. A BIGROUP OF LAWMAKERS ARE LOOKING TO LIFT RESTRICTIONS OVER CIVIL JETS FLYING OVER LAND AS SUPERSONIC SPEED, POTENTIALLY OPENING THE SKIES TO A NEW ERA OF HIGH-SPEED TRAVEL. AT THE CENTER OF THAT EFFORT IS BOOM SUPERSONIC, WHICH IS DEVELOPING THE NEXT GENERATION OF SUPERSONIC JETS. JOINING US NOW IS THE BOOM C.E.O. THIS LEGISLATIVE PARKWAY IS
ABSOLUTELY CRITICAL TO WHETHER OR NOT YOU’RE GOING TO BE ABLE TO ACHIEVE WHAT YOU WANT TO ACHIEVE. WHAT IS THE PATH FROM HERE, AND WILL IT HAPPEN? BECAUSE WITHOUT THE LEGISLATION, YOU CAN’T GET YOUR BUSINESS OFF THE GROUND, PARDON THE PUN. >> YEAH, GOOD MORNING, ED, THANKS FOR HAVING ME. WE’VE HAD ONE OF THE DUMBEST REGULATIONS EVER IN AVIATION. IN 1973, WE PUT A SPEED LIMIT IN SPACE OVER LAND, AND WHAT THAT MEANS IS WE CAN FLY SUPERSON FRINGE THE U.S. TO EUROPE OR TO ASIA, BUT WE CAN’T FLY IT RIGHT HERE IN THE U.S. AND WITH OUR TEST FLIGHTS IN
JANUARY AND FEBRUARY, WE PROVED WE CAN FLY SUPERSONIC WITH NO AUDIBLE SONIC BOOM, AND I THINK THIS IS JUST COMMON SENSE. IF WE CAN FLY COAST TO COAST WITHOUT ANY SONIC BOOM THAT ANYBODY HEARS ON THE GROUND, OBVIOUSLY THAT SHOULD BE ALLOWED. ED: THE BIG POLITICAL POINT HERE, FOR THOSE LAWMAKERS IS THAT YOUR COMPETITORS PURSUING THIS FIELD ON THE TECHNOLOGY SIDE ARE IN CHINA, ARE THEY NOT? >> YEAH, I THINK WE REALLY ARE WATCHING A SLOW MOTION TRAIN CRASH HERE. RIGHT NOW CHINA IS SHIPPING A 737 CLONE, THEY’RE WORKING ON A BOEING 787 CLONE. BOEING HAS NOT MADE AN ALL-NEW AIRLINER IN OVER 20 YEARS NOW. AND CHINA ANNOUNCED EARLIER THIS YEAR THEY’VE ENTERED THE SUPERSONIC RACE. WE STILL HAVE THE OPPORTUNITY
TO MAINTAIN LEADERSHIP IN AVIATION, BUT WE’VE GOT TO GET OUT OF OUR OWN WAY, CUT THE RED TAPE THAT’S BEEN HOLDING BACK PROGRESS FOR 5 # YEARS. ED: THIS TRUMP ADMINISTRATION HAS BEEN QUITE ENGAGED IN THE FIELD OF AUTONOMOUS DRIVING IN E.V., FOR EXAMPLE. HAVE YOU SPOKEN OR MET WITH THE
PRESIDENT TO DISCUSS AMERICA’S EFFORTS IN SUPERSONIC? >> THE PRESIDENT HAS A MODEL OF THE AIRLINER THAT HE KEEPS OUTSIDE OF THE OVAL OFFICE. WE’VE HAD GREAT CONVERSATIONS WITH MULTIPLE CABINET MEMBERS, INCLUDING SECRETARY DUFFY. IT’S REALLY HARD TO FIND ANYBODY WHO WANTS TO CONTINUE TO HOLD FLIGHT BACK. AND NOW THAT WE’VE PROVEN THAT WE CAN HAVE SUPERSONIC FLIGHTS WITHOUT AN AUDIBLE BOOM, THIS IS SOMETHING THAT I THINK EVERYBODY CAN BE BEHIND. ED: YOUR TECHNOLOGY IS IN THE DESIGN OF THE WINGS, BUT MOSTLY IN THIS ENGINE. WHERE ARE YOU AT IN AGREEMENT
TO BUILD THE PLANE, THE ENGINE AT COMMERCIAL SCALE? >> THE SURPRISING THING ABOUT BOOMLESS CRUISE IS ACTUALLY A SOFTWARE FIX. IT’S NOT ABOUT THE WINGS ORIGIN. IT’S ABOUT HOW YOU FLY THE AIRPLANE. THE BOOM NEVER REACHES THE GROUND. THAT’S A SOFTWARE INNOVATION THAT’S ACTUALLY PRETTY TO DEPLOY. AND AS WE SPEAK TODAY, WE PROVE WHEN WE CAN BUILD A SUPERSONIC JET, WE’RE BUILDING THE FIRST FULL-SCALE SYMPHONY ENGINE, THE FIRST INDEPENDENTLY DEVELOPED SUPERSONIC JET ENGINE. WE’RE LOOKING FORWARD TO START
BEING THE FIRST AIRLINER IN OUR FACTORY IN NORTH CAROLINA NEXT YEAR. ED: WHAT I RECOGNIZE IN SOME ANALOGOUS FIELDS LIKE E.V. TOLL, FOR EXAMPLE, IS A PIVOT OR SHIFT AWAY FROM CONSUMER PASSENGER MODEL TO LOOKING AT DEFENSE APPLICATIONS. IS THAT IN BOOM’S FUTURE, BLAKE? >> THE FACTORY THAT WE’RE BUILDING, ALL THE INFRASTRUCTURE WE’RE BUILDING, IF WORSE CAME TO WORSE IN WAR TIME, WE CAN PIVOT FROM BUILDING CIVIL PRODUCTS TO BUILDING DEFENSE PRODUCTS. I THINK THAT’S AN IMPORTANT
REBIRTH IN THE DEFENSE INDUSTRIAL BASE. HOWEVER, THE MOST IMPORTANT THING I THINK WE CAN DO FOR THE U.S. GOVERNMENT IS PROVIDE FASTER TRANSPORTATION FOR THE MOST IMPORTANT PEOPLE. WE’D LOVE TO REPLACE THE RUSTY OLD 747’S THAT CARRY AROUND OUR INVESTMENT. P.’S TODAY WITH AIRPLANES THAT CAN HELP THEM ARRIVE IN HALF THE TIME. ED:
I NEVER FLEW ON CONCORD. I KIND OF HAVE THIS PERIPHERAL KNOWLEDGE OF IT FROM WHEN I WAS A KID. BUT I THINK ABOUT WHAT THEY DID IN JANUARY, AND YOU REACHED MAUCH1.122 AT 31,000 FEET. HOW ARE YOU GOING TO
SELF-ASSESS YOUR NEXT MILESTONES? WHAT ARE THEY? >> IT’S A MATTER OF SCALING UP. THIS WAS THE FIRST AIRLINER THAT WAS ACTUALLY BUILT OUT OF PROVEN AIRLINER TECHNOLOGY THAT SCALES UP TO BUILD A SUPERSONIC AIRLINER. NEXT IS A FULL-SCALE ENGINE THIS YEAR. NEXT ONE IS CONSTRUCTION OF THE FIRST FULL-SCALE AIRLINER NEXT YEAR. WE WANT TO ROLL OUT AND FLY IT IN 2028, CONDUCT TESTING AND BE READY FOR PASSENGERS BY THE END OF 2029. ED: BEFORE WE LET YOU GO, HOW
CAPITAL-INTENSIVE IS THIS FOR YOU, AND WHAT ARE YOUR CAPITAL REQUIREMENTS IN TERMS OF RAISING NEW FUNDS? >> THIS IS CERTAINLY CAPITAL-INTENSIVE, BUT WHAT WE FOUND IS A SMALL, FOCUSED TEAM ENABLED WITH GREAT PEOPLE, A.I.-DESIGNED TOOLS CAN DO THIS ABOUT 10 TIMES MORE EFFICIENTLY THAN THE BIG GUYS CAN. THIS WAS DESIGNED BUILT AND FLOWN BY A TEAM OF JUST 50 PEOPLE WITH ABOUT A TENTH OF THE CAPITAL EVER USED BEFORE TO CREATE A SUPERSONIC AIRCRAFT.
WE WILL CONTINUE TO NEED CAPITAL, BUT IT’S A SHOCKINGLY SMALL AMOUNT COMPARED TO WHAT YOU WILL SEE IN A BOEING OR AIRBUS. ED: GREAT TO HAVE YOU HERE ON "BLOOMBERG TECHNOLOGY." THANK YOU. THAT DOES IS IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DON’T FORGET, CHECK OUT THE PODCAST. SO MANY OF YOU LISTEN TO THE SHOW AS A PODCAST. YOU
KNOW WHERE TO FIND IT, ON APPLE, SPOTTED I FEW, IHEART, AND ON ALL THE BLOOMBERG PLATFORMS. BIG, BIG FOCUS ON A.I. AS THE PRESIDENT MAKES HIS WAY THROUGH THE MIDDLE EAST. FROM SAN FRANCISCO, THIS IS
"BLOOMBERG TECHNOLOGY."
2025-05-15 17:31
