ED: THIS IS BLOOMBERG TECH.
MARK ZUCKERBERG PERSONALLY ASSEMBLING A SUPER INTELLIGENCE
TEAM TO HELP MEDA HIT ARTIFICIAL GENERAL INTELLIGENCE.
MANUS: APPLE EXPANDS ITS RELATIONSHIP
WITH OPENAI AND INTRODUCES A SOFTWARE REDESIGN.
WE WILL RECAP WWDC. ED: WE SPEAK WITH THE CEO ABOUT THE
SPAT BETWEEN ELON MUSK AND DONALD TRUMP.
WHAT IT MEANS FOR THE SPACE INDUSTRY. CAROLINE:
FIRST WHAT’S HAPPENING IN THE MARKETS. WE HAVE BIG BOND SALES.
THREE-YEAR DEBT COMING DUE. WE KEEP AN EYE ON WITH THE ARE
DOING BUT ALSO IN LONDON. CHINA AND U.S.
THE TALKS CONTINUE CLINGING ONTO GAINS.
THE S&P NEAR RECORD HIGH WHAT YOU LOOKING AT? ED: META CEO MARK ZUCKERBERG
ASSEMBLING THE SUPER INTELLIGENCE TEAM.
BLOOMBERG REPORTING CITING SOURCES HE WANTS 50 PEOPLE
SITTING CLOSE TO HIM AT HQ ALL TO GO AFTER AGI AND IN MED’S
CASE THE STOCK IS UP WITH THE FOCUS TO MARKETS ON TRADE TALKS.
THIS IS VERY MUCH FOUNDER MODE ACTIVATED. CAROLINE:
LET’S DIG IN ON THAT. CURT JOINS US NOW WHO HELPED
BREAK DOWN THIS STORY AND IT FEELS AS THOUGH MARK ZUCKERBERG
IS RALLYING HIS TROOPS. HE HAS HIS OWN PERSONAL
WHATSAPP FOR THIS PARTY HE CALLS IT. >> WE’VE BEEN TOLD HE IS
ESSENTIALLY MORE INVOLVED IN RECRUITING FOR THIS TEAM THEN
HE HAS EVER BEEN AT THE COMPANY IN MORE THAN 20 YEARS.
THIS IS SOMETHING THAT HAS HE HAS HAD A FIRE LIT UNDER HIM
BACK IN APRIL WHEN THERE MODEL WAS RELEASED AND QUITE FRANKLY
DISAPPOINTED PEOPLE. NOT ONLY DISAPPOINTED EXPERTS
OUTSIDE THE COMPANY REVIEWING THEM BUT DISAPPOINTED PEOPLE
INTERNALLY AND WE ARE TOLD ZUCKERBERG REALLY SAID I NEED
TO BE HEAVILY INVOLVED AND GO OUT AND RECRUIT THESE PEOPLE
MYSELF TO GET THE ABSOLUTE BEST TALENT AND THAT IS WHAT HE HAS
SPENT HIS LAST TWO MONTHS DOING HOSTING PEOPLE AT HIS HOMES IN
PALO ALTO AND LAKE TAHOE TRYING CLOSE THESE DEALS & THESE AI
EXPERTS AND SCIENTISTS. ED: I’VE BEEN HEARING THAT IT IS
OFFERING SALLY’S SALARIES OF $2 MILLION PLUS TWO A LOT OF
ENGINEERING PEOPLE BUT MARK ZUCKERBERG IS DOING THE PHONE
CALLS. THE QUESTION IS WHAT IS THE
MOTIVATION. METAVERSE IS THE REST OF THE
FIELD WHEN IT COMES TO THE PURSUIT OF AGI. KURT: EVERYONE IS GOING AFTER AGI AND
THE WAY IT WAS DESCRIBED IS IT DOES NOT MATTER IF YOU ARE THE
THIRD PERSON, THE THIRD COMPANY TO GET THERE IT ONLY MATTERS IF
YOU ARE FIRST. NOT ONLY WILL THAT BE A FEATHER IN YOUR CAP
FOR FUTURE RECRUITING, FOR THE SYMBOLISM OF BEING THE FIRST
COMPANY TO GET THERE, BUT WILL ALSO GIVE YOU A MASSIVE HEAD
START FOR YOUR PRODUCT. SO IF THEY ARE TO GET THEIR
FIRST AI CHATBOT IT WILL BE MORE WIDELY ADOPTED THEIR
RAY-BAN GLASSES WILL BE MORE WIDELY ADOPTED.
IT IS A MASSIVE RACE BECAUSE OF THESE OTHER IMPLICATIONS AND
THAT’S ONE OF THE REASONS ZUCKERBERG, WHO IS SUPER
COMPETITIVE IS PUTTING HIMSELF AT THE FOREFRONT OF THIS EFFORT
RIGHT NOW. >> SHARES ARE UP 19% LOOKING AT
THE COMPETITIVE STREET BUT WHAT ABOUT SCALE AI AND THE
INVESTMENT THERE. HOW DOES THAT FIT IN? >> AS WE REPORTED A DOLLAR
INVESTMENT IS EXPECTED TO GO INTO SCALE AI.
I THINK THERE ARE SORT OF TWO PARTS TO THIS.
THERE IS THE INVESTMENT IN WHAT SCALE AI IS DOING, ALSO THE
SORT OF RELATIONSHIPS THEY’VE DEVELOPED WITH THE GOVERNMENT
AND HAVING CLIENTS LIKE THAT I THINK IS SOMETHING THAT IS
APPEALING TO THEM WHO HAS NOT HISTORICALLY BEEN IN THAT BIG
LINEUP OF BUSINESS BUT I THINK THERE IS A RECRUITING ELEMENT
TO THIS STORY. THE CEO OF SCALE AI IS EXPECTED
TO JOIN THIS NEW SUPER INTELLIGENCE TEAM WE REPORTED
ABOUT LAST NIGHT. I BELIEVE THERE OTHER SCALE AI
EMPLOYEES WHO ARE PROBABLY CONTRIBUTING TO THE TEAM AS
WELL SO THERE IS A SHARING OF TALENT THAT I THINK IS PART OF
THIS SUSPECTED DEAL WHICH I IMAGINE WE MAY HEAR ABOUT
SOMETIME IN THE NEAR FUTURE. ED: WHEN ZUCKERBERG IS INVITING
THESE ENGINEERS INTO HIS HOME AT LAKE TAHOE WHAT IS HIS PITCH.
WATER SOURCES SAYING HE THINKS MEDA IS DOING WELL OR WHAT THEY
HAVE AN ADVANTAGE IN OVER THE REST OF THE FIELD. >> HE IS LEANING INTO RESOURCES.
FROM WHAT WE’VE HEARD HE’S TALKED ABOUT THE STRONG
ADVERTISING BUSINESS AND THE FACT THAT THE TENS OF BILLIONS
OF DOLLARS ON HAND TO GO PURSUE THESE EXPENSIVE AI IMPROVEMENTS.
A LOT OF THESE ARE OUT RAISING MONEY.
TO GET THAT CASH FLOW IN THE BUILDING.
WE HAVE THE RESOURCES I’M GIVING YOU THE RUNWAY TO DO ALL
OF THIS STUFF. COME WORK FOR ME WERE YOU WILL
NEVER WANT FOR ANYTHING ESSENTIALLY.
SO A BIG PART OF THE PUSH IS A FINANCIAL BEHEMOTH HERE WHO
KENEXA GET THIS DONE. ED: I WISH WE HAD MORE TIME TO
DISCUSS THAT. THANK YOU VERY MUCH.
STICKING WITH AI APPLE INTRODUCED AI POWERED FEATURES
OF ITS DEVELOPERS CONFERENCE INCLUDING AN EXPANDED
RELATIONSHIP WITH OPENAI. A NEW SOFTWARE REDESIGN CALLED
LIQUID GLASS WITH A TRANSPARENT MENU AND GLOSSY LOOK.
MARK GURMAN HAS ALL THE DETAILS. WE SAY LIQUID GLASS IS THE MOST
SIGNIFICANT DESIGN OVERHAUL FOR AN OS INTERFACE EVER.
WHAT DO YOU MAKE OF IT AND WHAT WE NEED TO KNOW? MARK:
THIS A GIFT GETS OF THE INTERFACE CHANGES HOW BROAD IT
IS. IT’S AVAILABLE IN ALL OF APPLES
DEVICES AND IT’S ALSO INTERESTING BECAUSE IT SETS THE STAGE FOR FUTURE OUTLOOK DEVICES
ARE GOING TO SEE CURVE GLASSES IN TWO YEARS.
HAVING AN ALL GLASS INTERFACE. SET THE STAGE FOR THAT. I’LL BE USING THE NEW A I — UI
LATEST CAME OUT AND I THINK IT IS GREAT AND IT WILL IMPROVE
DRAMATICALLY BETWEEN NOW AND SEPTEMBER WHEN IT’S ALL
RELEASED. SO IF YOUR DEVELOPER AND YOU
HAVE AN EXTRA PHONE OR YOU WANT TO TAKE A BIT OF A RISK I WOULD
ENCOURAGE ANYONE TO TRY OUT THE NEW LOOK. CAROLINE:
WHY ARE ANALYSTS LIKE ANGELO SAYING THIS WHOLE EVENT WAS A
DONE. WHY IS THERE SUCH A DEAFENING
SILENCE AROUND SIRI FOR EXAMPLE. KURT: WALL STREET CARES ABOUT
BUZZWORDS BECAUSE THAT’S WHAT GETS THE SHARE PRICE MOVING IN
EITHER DIRECTION AND YOU DID NOT HEAR A LOT AS WE
ANTICIPATED AND TALKED ABOUT ABOUT AI OR SEERY.
APPLE IS TAKING AN AI GAP YEAR OF THE WORST POSSIBLE TIME.
THEY ARE NOT PROMISING ANY NEW AI FEATURES RIGHT NOW.
I DON’T ANTICIPATE THEY WILL START DOING SO AGAIN UNTIL JUNE
OF 2026. APPLE INTELLIGENCE OBVIOUSLY
WAS A FLOP. THEY ARE DOING THEIR BEST TO
TRY AND SHOW PEOPLE THAT THEY ARE HERE WITH AI WITHOUT GOING
TOO FAR IN MAKING THESE PROMISES. WHAT THEY HAVE DONE IS
PARTNERED WITH CHATGPT IN A FEW MORE FEATURES SEE CAN TAKE A
SCREENSHOT NOW AND CHATGPT CAN ANALYZE WHAT IS ON YOUR SCREEN.
YOU COULD’VE DONE THAT WITH THE APPLE ALREADY BUT IT IS A BIT
OF A SHORTCUT. AND THEY HAVE NEW TOOLS THAT GO
TO THIRD-PARTY LIKE CHATGPT. THE FACT THAT APPLE IS NOWHERE
NEAR ANY OF ITS COMPETITION IN AI IS A MASSIVE FAILURE. ED:
THE STOCK FELL YESTERDAY IT’S NOW UP AROUND 1.2% SO WE HAVE
BALANCE OUT THE TRADING IN THE MARKET MORE DUE TO TRADE TALKS
AND ANYTHING IDIOSYNCRATIC. I FOUND PROBABLY THE MOST
SIGNIFICANT PIECE OF NEWS RELATIVE TO BE THAT ACCESS FOR
THIRD-PARTY DEVELOPERS TO ON DEVICE LLM’S BECAUSE YOU THINK
ABOUT THE APP STORE WE HAVE TODAY AND THE ECOSYSTEM ACROSS
OPERATING SYSTEMS ALL POINT IS THE DEVELOPERS.
EXPLAIN THAT PIECE OF NEWS AND WHY THE DEVELOPER COMMUNITY
CHEERED IT. MARK: THE FOUNDATION MODELS FOR THE
AI FEATURES IN LV ABLE TO THIRD-PARTY DEVELOPERS.
SO THE FRAMEWORKS SOFTWARE TOOLS TO DEVELOP THEIR OWN AI
FEATURES. THIS WILL BE MAKING IT EASIER
THAN EVER FOR DEVELOPERS AND BY THE WAY THERE’S MILLIONS OF
THEM ON THE PLATFORM TO DEVELOP AI FEATURES FOR THEIR OWN APPS. IN TERMS OF THE FEATURES
THEMSELVES, MOST CONSUMERS WANT THEM TO BE BETTER WANT THEM TO
BE EASIER. APPLE WENT AFTER THE CORE
COMPETENCIES. IF YOU LOOK AT THE THREE APPS
ARE REVAMPED AND IMPROVED YESTERDAY.
THEY WERE SAFARI PHONE AND CAMERA WHICH ARE PROBABLY THE
MOST USED APPS AND ADDITIONAL APPS THAT GOT A LITTLE BIT OF
LOVE WERE PHOTOS MESSAGES WHICH ROUNDED OUT THE TOP FIVE.
SO APPLE MADE MAJOR IMPROVEMENTS TO THE APPS THAT
ARE USING EVERY DAY. THE NEW IPAD OPERATING SYSTEM
MAKES THE IPAD LIKE A COMPUTER AND THAT IS A HUGE FEATURE THAT
PEOPLE HAVE BEEN ASKING FOR FOR YEARS.
SO THERE’S A LOT IN THE APPLE COMMUNITY WHO ARE PRETTY
THRILLED WITH THE IMPROVEMENTS MADE. TAKING A STEP BACK THIS IS
FOCUSING ON THESE OS FRANCHISES THAT ARE BEEN AROUND FOR
DECADES RATHER THAN PUSHING INTO THE NEXT GENERATION
INTERFACES AROUND AI. SO YOU HAVE TO JUGGLE BOTH
PARADE APPLE GREAT JOB MANAGING CURRENTS BUT WE HAVE NOT SEEN A
LOT THAT’S BEEN GIVING US CONFIDENCE ABOUT THE FUTURE.
CAROLINE: LET’S LOOK AT WHAT THE PARENT
COMPANY OF GOOGLE IS UP TO IN TERMS OF ITS STOCK CLIMBING
FOLLOWING A REPORT FROM REUTERS THAT IT HAS SIGNED A DEAL TO
PROVIDE CLOUD SERVICES TO OPENAI.
OPENAI WILL USE THE ADDITIONAL COMPUTING FOR TRAINING AND
RUNNING ITS MODELS. BOTH DECLINED TO COMMENT TO
REUTERS. ED: TRADE TALKS RESUME IN LONDON
BETWEEN THE UNITED STATES AND CHINA. THE LATEST DETAILS NEXT.
THIS IS “BLOOMBERG TECH.” ♪ >> WE ARE DOING — WELL WITH
CHINA. CHINA IS NOT EASY, WE WANT TO
OPEN UP CHINA AND IF WE DON’T OPEN UP CHINA MAYBE WE WON’T DO
ANYTHING BUT WE WANT TO OPEN UP CHINA IT WILL BE A GREAT THING
FOR CHINA AND THE REST OF THE WORLD. ED:
THAT WAS PRESIDENT TRUMP COMMENTING AFTER THE FIRST DAY
OF TRADE TALKS BETWEEN THE U.S. AND CHINA IN LONDON.
DAY TWO IS UNDER WAY. WHAT DO WE NEED TO KNOW?
ANNMARIE: AT THE MOMENT THERE IS NO
UPDATE. WE SEE BOTH DELEGATIONS WITH
ANOTHER DAY OF TRADE TALKS. THEY HAD A BREAK AROUND 2:00
LOCAL TIME AND THEY HAVE BEEN BACK AT THE NEGOTIATING TABLE
INSIDE LANCASTER HOUSE. WE WERE WAITING TO HEAR FROM
POTENTIALLY ANY BREAKOUTS IN TERMS OF THE UNITED STATES
GETTING WHAT THEY WANT WHICH IS AN ADVANCED PACE OF RARE EARTH
SEND MAGNETS AND THE CHINESE SIDE GETTING AN EASING OF
EXPORT CONTROLS WHICH IS WHAT THE NEC DIRECTOR HAS SAID.
AT THE MOMENT, TALKS ARE STILL ONGOING BUT THERE IS REALLY A
TIME CLOCK TO THIS BECAUSE TREASURIES CENTURY SCOTT
BESSENT HAS TO BE BACK ON CAPITOL HILL TOMORROW.
HE IS TESTIFYING IN FRONT OF THE HOUSE WAYS AND MEANS
COMMITTEE SO THEY ARE IN A TIME CRUNCH. CAROLINE: AND INTERESTINGLY TIMED PIECE
IN THE PEOPLE’S DAILY OVER IN CHINA.
THE FRONT PAGE, HUAWEI FOUNDER SAYING THESE RESTRICTIONS ARE
NOT SO BAD. ANNMARIE:
THAT’S WHAT A LOT OF PEOPLE WERE TALKING ABOUT DURING
DEEPSEEK. THIS IS SOMETHING THE NVIDIA
CEO SAID WHEN I CAUGHT UP WITH HIM BEFORE WE HAD THAT MEETING
A MONTH OR SO AGO WITH DONALD TRUMP IN THE OVAL OFFICE.
OBVIOUSLY THEY WERE LIKELY GOING TO TALK ABUT THE CHIP
CONTROLS AND HE TOLD ED CHINA HAS BECOME QUITE FORMIDABLE AND
THAT CHINA ISN’T AN WITH THE UNITED STATES.
THEY ARE NOT FAR BEHIND. THAT’S WHAT HE HUAWEI FOUNDER
WAS SAYING IN THIS LOCAL DAILY. IT IS NOTABLE THAT IN THESE
TALKS IN LONDON VERY DIFFERENT IN THE TALKS FOR WEEKS AGO THAT
THE COMMERCE SECRETARY IS HERE IT MEANS THAT THOSE CHIPS
POTENTIALLY THOSE EXPORT CONTROLS ARE ON THE TABLE.
CAROLINE: ANNMARIE HORDERN DOING AMAZING
WORK IN LONDON. CHINESE STOCKS HAVE REACTED TO
ALL OF THIS THEY HAVE BEEN VOLATILE.
WE HAVE BEEN HIGHER IN TRADE BUT IT REALLY WAS DOWN WE
REMAIN IN THE RED ONCE AGAIN. THIS IS THE TRADE TALKS HAVE
BEEN BUSY. YOU ARE SEEING THE NASDAQ
GOLDEN DRAGON INDEX OFF BY 3/10 OF A PERCENT AS WE SPEAK.
ALIBABA OFF BY 8/10. TIFFANY WADE IS HERE, SENIOR
PORTFOLIO MANAGER, SIX OR $21 BILLION IN ASSETS.
HOW MUCH IS RIDING ON THESE DAYS OF TALKS?
HOW MUCH DOES THIS MAKE A DECISION FOR YOU IN YOUR
PORTFOLIO? TIFFANY: WE ARE SEEING THE MARKET REACT
OVER THE LAST COUPLE OF WEEKS TO CERTAINLY A REDUCTION IN
SOME OF THE TARIFFS ON CHINA AND OTHER COUNTRIES AS WELL.
THIS WOULD BE VERY CRITICAL FOR THE TECH SECTOR ESPECIALLY
TALKING ABOUT EXPORT RESTRICTIONS THERE ARE PARTS OF
THE TECH SECTOR LIKE NVIDIA MOST RECENTLY ELECTRONIC DESIGN
AUTOMATION COMPANIES THAT HAVE BEEN HURT BY EXPORT
RESTRICTIONS AND TARIFFS. FOR CERTAIN POCKETS THIS WILL
BE VERY IMPACTFUL TO SEE SOME OF THESE TRADE NEGOTIATIONS
PLAY OUT. ED: HOW MUCH OF A RISK PREMIUM IS
THE PRESIDENT. WHEN YOU LOOK AT ANY CORNER OF
THE TECHNOLOGY MARKET, AND YOU SAY I AM GOING TO BET ON A
COMPANY THAT THIS PRESIDENT HAS RECENT SPOKEN THE FAVORED ABOUT
OR NOT FAVORABLY ABOUT IS THE CASE MAY BE.
TALKING ABOUT THE VOLATILITY HE BRINGS TO ANY TRADE NEGOTIATION.
>> I THINK IT CREATES A LOT OF PAUSE WHEN YOU’RE THINKING
ABOUT COMPANIES THAT MAY BE IN FOCUS FROM THE PRESIDENT.
COMPANIES THAT HAVE BEEN TALKED ABOUT OR SECTORS TALKED ABOUT
RECENTLY. THE WORRY IS WHAT WILL HAPPEN
NEXT THAT WE HAVEN’T PLANNED FOR OR THAT WE DID NOT SEE
COMING. I THINK COMPANIES THAT HAVE
BEEN SPOKEN ABOUT ARE REFLECTING A BIT OF A RISK
PREMIUM AND YOU SEE THIS IN A LOT OF THE TECH COMPANIES
TRADING AT DISCOUNTS TO THE LAST COUPLE OF YEARS.
CERTAINLY RELATIVE TO THEIR OWN MULTIPLES BUT ALSO TO THE INDEX
AS WELL. I THINK THAT’S REFLECTED IN
SOME OF THE STOCKS. THE CONCERN IS WHAT HAPPENS
NEXT BECAUSE IT IS HARD TO PREDICT. >> BOY JUST TIM COOK WANT TO
KNOW WHAT HAPPENS NEXT AS WELL. HIS OWN STOCK BELOW USUAL
MULTIPLES. THEY HAVE BEEN IN THE EYE OF
THE STORM WHEN IT COMES TO SUPPLY CHAINS.
WHAT YOU THINK OF THE DESIRE FOR COMPANIES TO BE LESS
PROFITABLE, DOES THAT MAKE THEM AS APPETIZING AS AN INVESTMENT.
TIFFANY: IT HURTS THE PROFIT MARGINS.
I THINK IT WILL BE INTERESTING TO SEE HOW THIS PLAYS OUT
BECAUSE IT TAKES MULTIPLE YEARS TO BUILD A FACTORY HERE AND
LONGER THAN PRESIDENT TRUMP WILL BE IN OFFICE. THE ANNOUNCEMENT — MAYBE SOME
OF THEM MAKE SENSE ECONOMICALLY. MAYBE SOME ARE PAYING LIP
SERVICE TO THE ADMINISTRATION BUT IT WILL BE INTERESTING TO
SEE HOW THIS PLAYS OUT BUT IT IS INTERESTING THAT APPLE HAS
BEEN A LITTLE BIT MORE DEFIANT. >> MORE DEFIANT BUT PERHAPS
MORE DISTRACTED. THE FACT THAT THEY ARE NOT
PLAYING CATCH UP TO THIS AI GAME AS PEOPLE HOPED, WHAT YOU
MAKE OF THE EVENT? TIFFANY: I THOUGHT IT WAS DISAPPOINTING
FOR APPLE. WE WERE EXPECTING TO HEAR MORE
EXCITING UPDATES AROUND APPLE INTELLIGENCE AND AI.
MAYBE AROUND AI BEING INCORPORATED INTO SIRI AND WE
SAW MORE UPDATES ON IMPROVING THE USER INTERFACE, MORE
FEATURES ON EXISTING APPLICATIONS.
THE APPLICATIONS THAT MAY BE INCORPORATE THE MOST AI WOULD
BE THERE UPDATES ON VISUAL INTELLIGENCE OR LIVE
TRANSLATION BUT THOSE FEEL LIKE THEY ARE PLAYING CATCH-UP
VERSUS APPLICATIONS IN THE MARKET FROM OTHER PROVIDERS. ED:
APPLE SEEMS TO BE THE TOP HOLDING IN THE COLUMBIA
LARGE-CAP GROWTH FUND. I THINK SO FAR THIS YEAR APPLE
HAS BEEN TRADING ON TRADE RISK, ON TARIFF RISK.
LITERALLY IN THE CAR ON THE WAY WE WERE ASKING OURSELVES HAS
THE NAME STARTED TRADING ON THAT AI CONCERN YET OR NOT?
TIFFANY: I THINK WE HAVE SEEN THAT
AROUND THIS EVENT. AND WE CERTAINLY SAW THAT
YESTERDAY WHERE PEOPLE WERE LITTLE BIT DISAPPOINTED THAT
THERE WASN’T A BIG AI ANNOUNCEMENT COMING OUT OF THE
KEYNOTE PRESENTATION. I THINK WE ARE SEEING THAT A
LITTLE BIT BUT APPLE LIKE A LOT OF BIG TECH COMPANIES ARE
TRYING TO FIGURE OUT THEIR STRATEGY AROUND AI AND ARE
PUTTING THEIR MONEY BEHIND IT. >> YOU SET YOURSELF UP BY THIS
BY SAYING THE BIG QUESTION WHAT HAPPENS NEXT FOR THE TECHNOLOGY
SECTOR. FOR THE TECHNOLOGY SECTOR WHAT
HAPPENS NEXT. >> I THINK WE ARE POSITIVE FOR
THE REST OF THE YEAR. THERE’S A LOT OF GOOD TAILWINDS
FOR THE SECTOR. OBVIOUSLY TARIFFS AND EXPORT
RESTRICTIONS COULD COME OUT OF LEFT FIELD FOR THE REST OF THE
YEAR BUT THERE’S A LOT OF GOOD TAILWINDS FOR EARNINGS GROWTH
INCLUDING AI INVESTMENT THAT CONTINUES TO BE STRONG ACROSS
MULTIPLE PARTS OF THE MARKET. IF WE LOOK AT EARNINGS GROWTH
EXPECTATIONS FOR THE REST OF THE YEAR OR THE FULL YEAR OF
THE TECH SECTOR IS EXPECTED TO GROW FASTER THAN THE REST OF
THE MARKET. A LOT OF THE VALUATIONS ACROSS
CERTAIN SUBGROUPS OF TECH LOOK VERY ATTRACTIVE VERSUS THEIR
HISTORY SO WE ARE STILL POSITIVE ON THE SECTOR. >> ARE YOU POSITIVE ON THE
COMMITMENT OF CAPITAL. LOOK AT WHAT MARK ZUCKERBERG IS
DOING SHEER QUANTITIES OF CASH TO MAKE SURE THAT HE TRIES TO
WIN AGI AS IT IS KNOWN. TIFFANY: HE IS NOT ALONE.
MICROSOFT AND APPLE, ALPHABET AMAZON ALL MAKING HUGE
INVESTMENTS AND AI AND I THINK THAT HAS A KNOCK ON EFFECT FOR
PARTS OF THE SEMICONDUCTOR EQUIPMENT AND SOFTWARE PAID
OTHER PARTS OF THE ECONOMY INCLUDING INDUSTRIALS THAT FEED
INTO THAT AI INFRASTRUCTURE. >> TIFFANY WADE THANK YOU VERY
MUCH. UBER AND WAVE PLAN TO TEST ROBOTAXIS IN LONDON.
MORE ON THAT NEXT. THIS IS BLOOMBERG TECH. ♪ CAROLINE:
UBER AND WAVE ARE SET TO PLAN THEIR FIRST TRIAL RUN OF FULLY
AUTONOMOUS VEHICLES IN LONDON THAT COULD PAVE THE WAY FOR
ROBOTAXI SERVICES IN THE U.K.. LET’S GET TO WHAT THIS REALLY
MEANS WITH ANDREW OF BLOOMBERG AND EF. YOUR FOCUS AND ANALYSIS IS WHAT
LONDON MEANS FOR THE GROWTH STORY OF ROBOTAXIS MORE BROADLY.
WHY IS IT DIFFICULT TO TRIAL RUN THERE? ANDREW:
LET ME START BY SAYING LONDON IS A BIG MARKET FOR UBER THEY
OFTEN CITED AS ONE OF THE FIVE MOST IMPORTANT CITIES GLOBALLY
IN THE EARNINGS CALL IN THEIR REPORTS.
SO THIS IS A BIG DEVELOPMENT THEY ARE WORKING, STARTING TO
THE BELOIT ROBOTAXIS IN LONDON BUT THESE TYPES OF STREETS ARE
DIFFERENT FROM WHERE WE’VE SEEN THE MAJORITY OF ROBOTAXIS IN THE PAST, PLACES LIKE PHOENIX,
ARIZONA OR AUSTIN, TEXAS WHERE YOU HAVE VARYING WEATHER
CONDITIONS, ROADS THAT HAVE NOT BEEN AROUND FOR NEARLY AS LONG
AS SOME OF THE LONDON STREETS WHICH HAVE THEIR OWN QUIRKS. ED:
YOU LEAD OUR COVERAGE OF MOBILITY AND YOU KNOW IN ANY
ROBOTAXI SET UP YOU HAVE THE SELF-DRIVING TECH HARDWARE
SOFTWARE. SOMEONE OWNS THE VEHICLE.
SOMEONE OPERATES THE APP AND SOMEONE MANAGES THE FLEET.
I AM LOOKING AT THIS ANNOUNCEMENT AND I THINK
THERE’S A FEW NAMES AND PIECES MISSING. >> IN A ROBOTAXI SERVICE IT
REALLY TAKES A VILLAGE. YOU NEED DIFFERENT PARTS OF
THIS VALUE CHAIN THAT WILL CONTRIBUTE DIFFERENT SKILL SETS
AND CAPITAL REQUIREMENTS. SO IF YOU ARE LOOKING AT WHAT
IS ESSENTIALLY A PARTNERSHIP BETWEEN TWO TECH COMPANIES THEY
MOSTLY WORK WITH, THERE’S A FEW OTHER PLAYERS THAT NEED TO
MANAGE THE HARDWARE AND ON THE GROUND OPERATIONS.
SO AS YOU MENTIONED THAT WOULD BE THINGS LIKE A COMPANY THAT
WILL END UP OPENING THE VEHICLE AND IN THE PAST UBER HAS BEEN
HESITANT TO OWN AND OPERATE LARGE FLEETS OF VEHICLES BUT
THEY HAVE SHOWN THEY ARE WILLING TO TAKE OVER SOME
OPERATIONAL ASPECTS WITH SOME PARTNERSHIPS FOR INSTANCE THEIR
PARTNERSHIP WITH WAYMO, SOME OF THEIR PARTNERSHIP WITH WE RIDE
WHICH IS UNDERWAY IN THE UNITED ARAB EMIRATES WHERE THEY’RE
TAKING OVER SOME OF THE FLEET OPERATING ASPECTS.
BUT YOU ARE RIGHT WE ARE MISSING WHO WILL WORK WITH ON
THE CHARGING SIDE IF THEY ARE IN ELECTRIC VEHICLES WHICH THEY
DO SEEM LIKELY TO BE AT THIS STAGE. ALL THE OTHER DETAILS AROUND
MAINTENANCE AND REPAIR OF THESE VEHICLES AS THEY FUNCTION AS
ROBOTAXIS. >> ANDREW GRANT OF BLOOMBERG
AND EF, WE REALLY APPRECIATE IT. SOME BREAKING NEWS BECAUSE
TALKS ARE ONGOING IN LONDON AND ACCORDING TO U.S. OFFICIAL, U.S.
AND CHINA TRADE TALKS WILL CONTINUE.
WE WILL BRING YOU ANY DETAILS OF WHAT IS BEING DISCUSSED AT
THE MOMENT. ANNE-MARIE HAS BEEN OUTSIDE
THINKING ABOUT HOW THESE TALKS ARE EVOLVING.
WHAT IT ULTIMATELY MEANS FOR THE FOCUS ON SEMICONDUCTORS IN
PARTICULAR. ED: WE WILL BE JOINED BY THE UNITED
LAUNCH ALLIANCE CEO TO DISCUSS THE OUTLOOK FOR THE SPACE
BUSINESS IN THE MIDST OF TRUMP AND ELON’S SPAT. THIS IS “BLOOMBERG TECH.” ♪ >> WELCOME BACK.
I’M CAROLINE HYDE IN NEW YORK. ED: WHEN I LOOK AT TECHNOLOGY
MARKETS IT IS THE MAG 7 THAT IS DRIVING THE NARRATIVE.
PART OF THAT BECAUSE AMERICA — INVESTORS KEEPING TRADE TALKS
IN LONDON BUT THERE SOME IDIOSYNCRATIC NEWS ITEMS WE
TALKED EARLIER ABOUT THE REPORTS OF OPENAI LOOKING TO
ALPHABET AND GOOGLE FOR CLOUD CAPACITY.
TESLA IS ALSO MARKETING HIGHER. WAITING TO SEE IF WE DO OR DO
NOT GET NEWS OF A ROBOTAXI LAUNCH THIS WEEK.
ALSO SOME STOCK DOWNGRADES THAT THE MARKET IS LOOKING PAST
BECAUSE THE SHARES ARE HIGHER. UP 7/10 OF 1%. >> LONG TIME TESLA BULLS SAYS
THE FIRM IS PRETTY USED TO THE VOLATILITY.
SHE STILL THINKS IT’S THE LARGEST AI PROJECT ON EARTH
RIGHT NOW. SPEAKING WITH TOM MACKENZIE AT
THE GREENWICH ECONOMIC FORUM IN LONDON SHE WEIGHED IN ON THE
IMPACT OF THE FEUD BETWEEN ELON MUSK AND PRESIDENT TRUMP. >> CLEARLY I THINK IT WENT WAY
TOO FAR, BUT AND WE’VE BEEN WATCHING IT CAREFULLY WE SOLD
AFTER THE ELECTION ROUGHLY HALF BILLION WORTH STILL OUR
LARGEST POSITION BUT WE ARE SO USED TO THIS VOLATILITY SO WE
USE IT TO OUR ADVANTAGE AND WE HAVE BEEN BUYING BACK.
IN THE WORLD OF TECHNICIANS IT’S BEEN A 50% RETRACE.
SO BUYING BACK INTO THAT AND THAT SEEMS TO BE WORKING. ED: LET’S DIVE INTO THAT SPAT
BETWEEN ELON MUSK AND DONALD TRUMP AND HOW IT IS IMPACTING
THE BUSINESS OF SPACE PAID TORY BOOM BRUNO JOINS US.
I WAS INTERESTED TO SEE SOMETHING HIT MY INBOX WHICH IS
THE MOMENT ELON MUSK THREATENED TO DECOMMISSION DRAGON WHICH
WAS A RESPONSE TO THE PRESIDENT OF THE UNITED STATES
THREATENING TO CANCEL GOVERNMENT CONTRACTS TO SOME OF
ELON MUSK’S COMPANIES. YOU MADE THE ARGUMENT NOW IS
THE TIME TO TALK AND REALIZE THAT WE NEED MANY MORE OPTIONS
FOR SPACE BEYOND SPACEX WHICH TOM AND NATE COMMERCIAL PAYLOAD
FROM EARTH ORBIT DO YOU BELIEVE YOU ARE ONE SUCH OPTION? TORY:
OF COURSE WE ARE. IN THE GOVERNMENT SPACE WE ARE
THE PRIMARY COMPETITOR TO SPACEX. AND ALSO WE ARE THE MAJOR
SUPPLIER TO AMAZON’S KUIPER CONSTELLATION WHICH WILL OFFER
COMPETITION IN THE LEO-BASED INTERNET MARKET. >> DID YOU HEAR FROM PENTAGON
OFFICIALS AMID THE BLOWUP TO GET SPECIFIC. TORY:
WE ARE IN CONSTANT CONVERSATIONS WITH OUR
CUSTOMERS AT THE PENTAGON. I DON’T KNOW ANYMORE THAN YOU
GUYS DO ABOUT HOW ALL OF THAT WILL TURN OUT.
I’M SURE THESE GENTLE AND WE’LL SORT IT OUT BETWEEN THEM BUT IT
DOES POINT OUT AS YOU ALLUDED TO HOW IMPORTANT IT IS GIVEN
THE GROWING COMMERCIAL SECTOR AND THE CHALLENGES WE FACE IN
SPACE FROM CHINA BUT WE HAVE A BROAD INDUSTRIAL BASE WITH
MULTIPLE COMPANIES IN A COMPETITIVE ENVIRONMENT TO
SUPPORT THAT EVER-GROWING NEED. CAROLINE:
GIVE US AN UPDATE OF JUST HOW MANY LAUNCHES YOU THINK YOU
WILL BE DOING WITH THE VEHICLES YOU WILL BE USING. TORY:
THIS YEAR WE WILL BE FLYING OUR HERITAGE ATLAS VEHICLE WHICH WE
ARE FLOWN TWICE ONCE AS A DEMO BUT ONCE NOW WITH 27 IN ORBIT. AND OUR VULCAN ARE BRAND-NEW
VEHICLE THE NEXT LAUNCH WILL BE ANOTHER ATLAS AND THEN WE WILL
PIVOT BACK TO DO A COUPLE OF NATIONAL SECURITY SPACE
LAUNCHES WITH VULCAN AND THEN AFTER THAT WE WILL COME RIGHT
BACK TO AMAZON WITH ANOTHER VULCAN.
THAT’S IMPORTANT BECAUSE IT IS ALMOST TWO ATLASES PRINT IS 45
SPACECRAFT VERSUS 27 AND THEN AS FAST AS WE CAN HAVE
SATELLITES AND AVAILABILITY ON THE RANGE WE WILL FLY SEVERAL
MORE TIMES BEFORE THE END OF THE YEAR. ED:
THERE IS A LOT OF INTEREST IN VULCAN SPECIFICALLY WHEN WILL
IT FLY AGAIN AND WHAT ARE THE CHALLENGES RIGHT NOW FOR THE
ARK OF THE REST OF THE YEAR AGAINST THE GOALS YOU SET
YOURSELF FOR VULCAN? TORY: VULCAN HAS JUST FINISHED ITS
DEVELOPMENT. WE ARE NOW CERTIFIED FOR
NATIONAL SECURITY. WE ARE PREPARED FOR COMMERCIAL
LAUNCHES THAT CUSTOMERS HAVE NOT YET ANNOUNCED THEIR RUSSIAN
DAYS AND WE ALWAYS LET THEM DO THAT FIRST. I CAN TELL YOU IT
WILL BE VERY SOON IT WILL BE THIS SUMMER WHEN WE FLY VULCAN
AGAIN AND WE WILL BE FLYING IT INTO THE FALL AND THE WINTER AS
WELL. YOU JUST GAVE — ED:
CAN I HOLD YOU TO A NUMBER BE AT HIGH SINGLE DIGITS, FIVE OR
10. TORY: SINGLE DIGITS. I CANNOT GIVE YOU A SPECIFIC
NUMBER BECAUSE WE HAVE TO REQUEST LAUNCH STATES ON THE
RANGE WHICH HAS BECOME QUITE A CROWDED PLACE. AND IT IS TOO EARLY TO KNOW
WHEN ALL THOSE SLOTS WILL BE AVAILABLE. BUT I CAN TELL YOU IT WILL BE
LESS THAN PROBABLY 10 MORE MISSIONS THIS YEAR.
IN HIGH SINGLE DIGITS. YOU’VE BEEN FACED — CAROLINE:
YOU BEEN FACED WITH SOME CRITICISM WITH THE ASSESSMENT
THAT PERHAPS THERE WAS SUBPAR PERFORMANCE MEETING SOME OF THE
KEY GOALS. I’M INTERESTED YOU’VE BEEN
FOCUSED ON THIS, FOCUS ON GETTING A GENUINE TALENT AND
THE FORCE THAT YOU NEED TO MAKE UP FOR IT.
THE MANAGEMENT FOCUS AS WELL. WHAT IS THE LIMITING FACTOR
WHEN IT COMES TO ENGINEERING CAPACITY.
WHAT MEANS THAT YOU CANNOT FIRE ON ALL CYLINDERS. >> IT’S A TYPICAL DEVELOPMENT
JOURNEY WHAT WE ARE DOING ALL NEW HEAVY CLASS LAUNCH VEHICLE.
WE HAD HOPED TO BE DONE WITH IT BEFORE THE END OF LAST YEAR IT
TOOK US A LITTLE BIT LONGER. WE HAD A DELAY IN OUR UPPER
STAGE AND A STRUCTURAL FAILURE WAY BACK EARLY LAST YEAR THAT
WE HAD TO RECOVER FROM. AND THEN THROUGH OUR SECOND
CERTIFICATION FLIGHT WE LOST THE NOZZLE OFF OF ONE OF OUR
SOLID ROCKET MOTORS THAT ARE ADDED ON.
INTERESTINGLY ENOUGH THE MISSION ITSELF WAS PERFECT IT
WAS THE MOST ACCURATE WE’VE DONE. BUT NONETHELESS THOSE TWO
THINGS DELAYED US FROM FINISHING UP DEVELOPMENT WHICH
WE’VE NOW COME THROUGH ON THE OTHER SIDE.
I WILL TELL YOU THAT I HAVE DEVELOPED SOME THREE DOZEN
SYSTEMS IN THE LAST FOUR DECADES.
THIS IS ONE OF THE CLEANEST ONES I HAVE EVER BEEN THROUGH
OR HAVE SEEN AND JUST TOOK A LITTLE BIT LONGER TO GET TO
WHERE WE ARE TODAY. >> I WANT TO GO BACK TO THE
ORIGIN OF THE DISCUSSION WHICH WAS ELON MUSK’S THREAT TO
DECOMMISSION DRAGON. LET’S STATE THE BASIS FACT THAT
SPACEX DOMINATES HUMAN AND NONHUMAN PAYLOADS ORBIT.
HOW BAD WOULD THAT BE? BASICALLY TALKING ABOUT TAKING
AWAY AN APPARATUS THAT AMERICA DEPENDS ON TO GET TO SPACE
RIGHT NOW. >> IT WOULD FOR A TIME A
CERTAIN NUMBER OF MONTHS PUT US BACK IN A POSITION DEPENDENT ON
THE RUSSIANS TO GO TO AND FROM THE SPACE STATION BUT IT IS NOT
A PERMANENT IMPACT TO THE PROGRAM SHOULD THAT HAPPEN. BECAUSE THERE IS ANOTHER
PROGRAM , THE BOEING STARLINER THAT HAS A DEMO FLIGHT AND
ACTUALLY CARRIED CREW TO THE SPACE STATION ONCE ALREADY.
IT HAD SOME PROBLEMS WITH SOME THRUSTERS, OF THOSE ARE BEING
SORTED OUT AND NASA SAID THEY EXPECT TO BEGIN FLYING AGAIN IN
EARLY 2026. SO WE WOULD HAVE A GAP WHERE WE
WERE DEPENDENT ON THE RUSSIANS UNTIL THAT’S AVAILABLE.
AFTER THAT THERE’S A COMPANY CALLED SIERRA SPACE THAT WILL
TAKE CARGO TO AND FROM WITH THEIR DREAM CHASER VEHICLE
LIFTING BODY IT LOOKS LIKE A SMALL FUTURISTIC SPACE SHUTTLE.
THAT WOULD ALSO TRANSITION TO HUMAN TRANSPORT AS WELL BUT A
LITTLE BIT LATER. >> LAST YEAR THE REPORTS WERE
YOU L.A. WAS –ULA WAS SUBJECT TO
ACQUISITION THE BLUE MOORE — BLUE ORIGIN MIGHT BE A BITTER
PRINT WHAT IS THE FUTURE ON THE LATEST OF THIS AND THE
RELATIONSHIP WITH BLUE THAT IS SUPPOSED TO BE PROVIDING YOU
WITH ENGINES. TORY:
LIKE ANY M&A TYPE QUESTION I AM NOT ALLOWED TO SPECULATE TALK
OR ANSWER ANYTHING ABOUT THAT. I CAN TELL YOU THAT ULA IS A
SOUND COMPANY, IT IS THE PRIMARY COMPETITOR OF SPACEX IN
THE UNITED STATES. THEIR ONLY CURRENTLY TWO
DOMESTIC LAUNCH PROVIDERS IN THE CLASS, SOON TO BE A THIRD
WITH BLUE ORIGIN SO IT IS A GREAT COMPANY AND I WISH I
OWNED IT. BEYOND THAT I REALLY CANNOT
TALK ABOUT ANYTHING THAT WOULD BE IN IT. >> UNITED LAUNCH ALLIANCE CEO
GREAT TO HAVE YOU BACK ON BLOOMBERG TECH. CAROLINE: TIME FOR TALKING TECH AND TSMC
REPORTED A SURGE IN REVENUE AND JUMPED 40% UNDER THE STOCKPILE
CHIPS IN RESPONSE TO TRADE UNCERTAINTY.
THE MAIN CHIP SUPPLIER TO NVIDIA AND APPLE.
LAST WEEK TSMC CEO REAFFIRMED COMPANY SALES WILL GROW IN 2025.
PLUS CISCO IS UPDATING ITS LINEUP OF NETWORKING AND
SECURITY FIRMS IN AN EFFORT TO MAKE AI NETWORKS SPEEDIER AND
MORE SECURE. A NEW GENERATION OF SWITCHES IS
SET TO OFFER 10 FOLD IMPROVEMENT IN THE PERFORMANCE
FOR TRANSFERRING DATA. FRED SAID IS LAUNCHING HIS OWN
STARTUP. THE SILICON VALLEY BILLIONAIRE
HAS HAD AT LEAST EIGHT PEOPLE WHO USED TO WORK AT ELON MUSK
SNARLING AND PLANS TO BUILD A CONSUMER SATELLITE PRODUCT THAT
MEANS TO TREAT BRAIN DISEASE AND IMPROVE MOOD. >> AS FRANCIS STARTUP
CONFERENCE KICKS OFF IN PARIS, SOME OF THE EUROPEAN STARTUPS
WORKING ON GROUNDBREAKING TECHNOLOGY.
THIS IS “BLOOMBERG TECH.” ♪ CAROLINE:
BLOOMBERG AND FOUNDERS FORMED JOINT FORCES TO HIGHLIGHT THE
EUROPEAN COMPANIES AND FOUNDERS AIMING TO HAVE AN IMPACT ON A
GLOBAL SCALE CRATING A LIST OF 25 EUROS STARTERS TO WATCH.
WE HAVE JUST BEEN DISCUSSING SPACE WITH YOU L.A.
DRIVE INTO THE FIRST ONE FEMALE LEAD AND LOOKING AT SPACE RIGHT?
>> A FASCINATING COMPANY. FRANCO GERMAN FRENCH FOUNDER
WITH HEADQUARTERS IN GERMANY FUNDING FOR BOTH COUNTRIES
PRINT IT’S A RARITY THIS INDICATION ESPECIALLY SINCE THE
U.S. ELECTION AND ELON MUSK’S PROMINENCE IN POLITICS THERE’S A LOT MORE URGENCY WE DO HAVE
ALTERNATIVES TO SPACEX IN EUROPE.
THEY ARE TRYING TO BUILD THE REUSABLE CAPSULE LIKE THE
STARLINK DRAGON SYSTEM. THIS HAS BEEN AN AREA AND
CERTAINLY THE TERM THAT’S TALKED ABOUT IN POLITICAL
CIRCLES AND INVESTING CIRCLES IS SOVEREIGNTY AND THE
EXPIRATION COMPANIES IS THE STARTUP THAT PROMISES THIS
EUROPEAN SOVEREIGNTY. >> WHEN WE THINK EUROPE WITH
INCREASINGLY TALKED ABOUT MISTRAL. WHAT ARE YOU DOING, WHAT YOU
LEARNING AND WHAT IS THE INTEREST FOR INVESTORS NOT JUST
IN EUROPE BUT AROUND THE WORLD. IT’S A FASCINATING COMPANY IT’S
BEEN AROUND FOR MOST A DECADE WORKING PRIMARILY WITH DRONES
FOR RECONNAISSANCE SURVEILLANCE IT’S HAD THIS BIG SUCCESSFUL
FROM WHAT WE CAN TELL DONE PRETTY WELL AS SERVICING
UKRAINE MOSTLY VIA THE GERMAN MILITARY’S WITH SHIPPING A TON
OF THESE UNITS. PRETTY ACTIVE IN UKRAINE PAID A
LOT OF COMPANIES HAVE BEEN ACCUSED OF BEING TOURISTS IN
UKRAINE SINCE THE WAR BROKE OUT. IT SEEMS LIKE THEY ACTUALLY
HAVE LEGITIMATE PRODUCTS THEY ARE USED ON THE FRONTLINE. ED:
THANK YOU VERY MUCH. WE TURN TO OUR VC SPOTLIGHT
PRE-NOTABLE CAPITAL AT THE FOREFRONT OF SOME OF TECH’S
MOST INFLUENTIAL COMPANIES HOPING — HELPING TO GUIDE 11
OF ITS PORTFOLIO COMPANIES FOR AN IDEA TO AN IPO.
FOR MORE GLENN SOLOMON JOINS US. IT’S A NICE WAY TO THINK ABOUT
IT FROM IDEA TO IPO BUT THAT’S THE HISTORY OF SILICON VALLEY.
THAT’S WHAT EVERY FOUNDER SETS OUT TO DO.
AMONG THOSE 11 WHAT ARE YOU MOST PROUD OF, WHAT WAS THE
STEEPEST ARC WOULD YOU SAY? >> GREAT TO BE HERE.
WE REALLY BUILT OUR BUSINESS AROUND FOCUSING ON THE FOUNDER
AND I THINK THE PRIMARY LESSON WE’VE LEARNED FROM THE
SUCCESSES WE HAVE HAD IS IF WE SERVE FOUNDERS WELL IF WE
PROVIDE THEM WITH UNIQUE EXPERIENCE AND SUPPORT THEM,
STARTING COMPANIES IS REALLY HARD AND BUILDING THEM IS EVEN
HARDER. IF WE FOCUS ON FOUNDERS WE WILL
DO OK. IT’S BEEN A WINNING FORMULA FOR
US. ED: SHOWING YOU SOME OF THE PORTFOLIO COMPANIES THESE ARE
LONG-STANDING WELL-KNOWN NAMES NOT JUST AMONGST THE IMMUNITY
BUT AROUND THE WORLD NOW BECAUSE OF THEIR CUSTOMER BASE.
WHAT’S HAPPENING RIGHT NOW IN FOUNDING COMPANIES AND BACKING
OF THE EARLIER STAGES. IT IS NOT JUST AI BUT
EVERYTHING TO DO WITH THAT INFRASTRUCTURE. GLENN: WE ARE FOCUSED ON
INFRASTRUCTURE PRECISELY FOR THIS REASON.
WE SEE AGENTS AS THE NEXT WAVE OF AI HAVING A HUGE IMPACT ON
COMPANIES LARGE AND SMALL ON ALL INDUSTRIES.
AGENTS ARE COMING INTO COMPANIES AND THESE ARE
NONHUMANS WHO ARE HELPING WITH BUILDING SOFTWARE, HELPING WITH
OTHER FUNCTIONS LIKE SALES, LIKE CUSTOMER SUPPORT AND
SUCCESS. THEY ARE EVEN GETTING INTO
THINGS LIKE HELPING WITH SECURITY AT HR AND FINANCE.
IT’S REALLY THROUGHOUT ORGANIZATIONS WE ARE SEEING
AGENTS PLAY A MAJOR ROLE. JUST LIKE HUMANS THEY NEED
INFRASTRUCTURE. HUMAN BEINGS AS EMPLOYEES NEED
INFRASTRUCTURE TO BE SUCCESSFUL AND SO DO AGENTS.
THEY NEED TO BE MONITORED. THEY NEED TO MAKE SURE THEY ARE
ACTUALLY DOING WHAT YOU WANT THEM TO DO SO THAT’S WHERE WE
ARE FOCUSING. THE OPPORTUNITY IS QUITE LARGE
AND WE ARE SEEING QUITE A BIT OF ACCELERATION FOR COMPANIES
FOCUSED IN THE AREA. >> NOTABLE CAPITAL THE NAME IS
STILL RELATIVELY NEW. BOUGHT ABOUT A YEAR AGO.
AND THEN WHAT YOU’RE DOING NOW LOOKING AT U.S.
ISRAEL LATIN AMERICA EUROPE, WHERE IS THE HIVE OF ACTIVITY
FOR YOU. IT FEELS AS IF THE U.S. JUST NOMINATE — DOMINATES FROM
GENERATIVE AI PERSPECTIVE? >> AI IS CENTRAL. I WILL SAY WHILE SILICON VALLEY
IS THE CENTER OF THE UNIVERSE AS IT RELATES TO INNOVATION
PARTICULARLY AROUND AI THERE ARE A WHOLE WEB OF GLOBAL
FOUNDERS, FOLKS IN ISRAEL AND EUROPE, LATIN AMERICA WHAT
BINDS THEM TO US AND GETS THEM EXCITED IS THAT WE REALLY BUILT
OUR BUSINESS AROUND HELPING THEM BUILD GLOBAL COMPANIES AND
IF YOU WANT TO BUILD THE GLOBAL TECHNOLOGY COMPANY YOU NEED TO
START IN THE U.S.. WE ARE HELPING ENTREPRENEURS IN
THE U.S. AS U.S. CITIZENS OR IMMIGRANTS
FIRST-GENERATION FOLKS OUTSIDE THE U.S., ALL BUILDING FOR THE
U.S. MARKET. THEY MAY BE BUILDING THEIR
PRODUCTS, ENGINEERING PRODUCT AND STAFFING THOSE FUNCTIONS
OUTSIDE THE U.S.. BUT WHEN IT COMES TO GO TO
MARKET THEY ARE FOCUSED ON BUILDING IN THE U.S.
AND THAT IS MORE NOTABLE TRYING TO DISTANCE OURSELVES FROM THE
FIELD AND THEY THINK WE ARE DOING A GOOD JOB. CAROLINE:
HOW IS THE TALENT POOL. IS THAT KEEPING YOUR FOUNDERS
UP AT NIGHT THINKING ABOUT THE SCALE OF IMMIGRANT TALENT AND
SOME OF THE PRESSURE BEING PUT ON IT IN THE UNITED STATES AT
THE MOMENT. IS THAT A WORRY OR CAN YOU KEEP
THE BASES MORE GEOGRAPHICALLY SPLIT? >> I THINK THE TALENT MARKET
TODAY IN THE TECHNOLOGY IS COMPLEX.
WHAT YOU’RE SEEING IS AGENTS ARE TAKING JOBS IN ENTRY-LEVEL
AREAS. BUT I THINK THE OPPORTUNITY FOR
FOLKS EARLIER IN THEIR CAREERS AND RECENT GRADUATES IS TO
EMBRACE AND EXTEND WITH AI AND BECOME REALLY STRONG USERS AND
PROPONENTS OF TECHNOLOGIES LIKE THAT. THEY CAN MOVE FASTER AND ACTUALLY BE VERY SUCCESSFUL AS
EMPLOYEES IN TECHNOLOGY COMPANIES AND THAT’S WHAT WE
ARE SEEING. THERE’S REALLY A LOT OF
EXPERTISE IN THE BAY AREA BUT EXPERTISE IS DIFFUSING RAPIDLY
AND I THINK THE NEXT SET OF REAL INNOVATIVE COMPANIES IN AI
OVER THE COMING YEARS WILL BE GLOBAL IN NATURE. CAROLINE:
GREAT TO HAVE YOU ON, COME ON SOON WE HOPE.
COMING UP SPYING SCANDAL. ROILING THE HR SOFTWARE MARKET.
THE ACCUSATIONS IN THE UPCOMING COURT CASE NEXT.
THIS IS BLOOMBERG TECH. ♪ CAROLINE:
HR SOFTWARE MAKER SET TO MEET IN A CALIFORNIA COURT TO HASH
OUT THEIR DUELING CHARGES OF CORPORATE ESPIONAGE.
KATE CLARK HAS BEEN REPORTING THE ONGOING SAGA.
CAN YOU BRIEFLY GET US UP TO DATE WITH WHAT THEY ARE
ACCUSING EACH OTHER OF >> BOTH HAVE ACCUSED EACH OTHER OF
SPYING AND LAST WEEK BOTH AMENDED THE ORIGINAL LAWSUITS
TO ADD SOME MORE EXPLOSIVE CLAIMS. TO CATCH EVERYONE UP
RIPPLING WHICH IS A 6 BILLION START UP IS ACCUSING DEAL OF
HAVING A SPY FOR MONTHS TAKE INFORMATION FROM THEIR SLACK
AND SEND IT DIRECTLY TO THE CEO. ALL ALLEGED.
THIS IS TAKING PLACE KIND OF AROUND THE WORLD.
CAN YOU GIVE US A SENSE OF WHERE THESE ARGUMENTS ARE
HAPPENING AND THE CHARACTERS AND INDIVIDUALS INVOLVED? >> THE KEY PERSON AT THE CENTER
IS A MAN NAMED KEITH O’BRIEN WHO LIVES IN LONDON AND
ALLEGEDLY SPIED. THERE ARE ALSO PART OF THE
STORY YOU CAN READ THE TAKE PLACE IN DUBAI, SAN FRANCISCO
SO IT IS A GLOBAL SAGA. >> A GLOBAL SAGA WITH BIG VC’S.
WHAT IS THE VENTURE COMMUNITY MADE OF THIS.
WHAT HAVE OTHER FOUNDERS MADE OF THIS? KATE: MANY I SPOKE TO DEFENDED IT
SAYING THAT HIS SILICON VALLEY THERE ARE SPIES EVERYWHERE.
OF COURSE MANY OF THE INVESTORS ARE SAYING THIS IS CRIMINAL,
THIS SHOULD NEVER BE TOLERATED. SO IT IS NOT AS STRAIGHTFORWARD
AS YOU MIGHT EXPECT. >> THE QUESTION WE ASK
OURSELVES, WHAT HAPPENS NEXT. KATE: WE WILL SEE.
THEY FILED THE AMENDED COMPLAINT LAST WEEK AND HAVE
NOT SERVED RIPPLING YET WHICH IS WE WILL WAIT AND SEE AND WE
DON’T REALLY KNOW WHAT THAT MEANS.
BUT OTHERWISE THEY WILL DUKE IT OUT THIS SUMMER AND ARE
EXPECTED IN COURT THIS FALL. CAROLINE:
IN WHICH COURT AND WHERE? KATE: THEY HAVE VARIOUS LEGAL FILINGS
IN IRELAND, THERE IS A DELAWARE LAWSUIT AND ALSO LEGAL
EXCHANGES IN CALIFORNIA. >> IT’S A DEEPLY REPORTED PIECE
IN BLOOMBERG BUSINESSWEEK, KATE CLARK IT’S A MUST READ THAT
DOES IT FOR THIS EDITION OF BLOOMBERG TECH. CAROLINE:
YOU CAN FIND OUR PODCAST ON THE TERMINAL AND ONLINE.
FROM NEW YORK AND SAN FRANCISCO, A RATHER NICE NEW
LOOK TO THE SHOW. THIS IS “BLOOMBERG TECH.” ♪