ASML Outlook Weighs on Global Tech | Bloomberg Technology Full Show 10/16/2024
>> FROM WHERE THE HEART OF INNOVATION, MONEY, POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG "TECHNOLOGY" WITH CAROLINE HYDE AND ED LUD LUDLOW. KATIE: LIVE FROM NEW YORK IN SAN FRANCISCO THIS IS WHROOMBERG TECHNOLOGY. COMING UP, SHARES SINK FURTHERER AS THE C.E.O. ADDRESS THE CHIP MAKERS’ SHOCK.
ED: WE SPEAK TO DONALD TRUMP ABOUT GOOGLE. THE FORMER PRESIDENT SAYS IT’S IMPORTANT TO KEEP THE COMPANY INTACT. KATIE: NEXT GENERATION -- KROIB NEXT GENERATION NUCLEAR. MORE ON MA’AMSON’S INVESTMENTS IN CARBON FREE CHECK CRUCIAL TO THEIR A.I. ENERGY NEEDS. FIRST TO THE CHIP SECTOR. ED: DOWNWARD PRESSURE ON SEMICONDUCTOR STOCKS AND CHIP EQUIPMENT MAKERS GLOBALLY HAS BEEN A STORY FOR THE PAST 24 HOURS. IN ASIA, INTO THE EUROPEAN SESSION, IT NOW HAS CONTINUED INTO THE UNITED STATES.
THE PHILADELPHIA SEMICONDUCTOR INDEX IS HIGHER, .4% AND IT’S THOSE TWO NAMES, ASNL, BUT BUT ALSO NOTE IT’S EUROPEAN TRADING SHARES ARE STILL UNDER PRESSURE, DOWN 5%. CONTINUING FROM THE SAVAGE SELLOFF OF MONDAY -- OF TUESDAY. INTEL IS INTERESTING. THINK ABOUT THE STORY HERE. ASML IS A CHIP EQUIPMENT MAKER WHO BUYS CHIP MAKING EQUIPMENT WHILE INTEL HAS THAT FOUNDRY BUSINESS.
ON THE STOCKS IT MAKES SENSE IN THE CONTEXT OF WHAT WE ARE WORRYING ABOUT INTEL MIGHT BE LOWER. WE NEED TO UNDERSTAND WHAT’S HAPPENING HERE. LET’S GET MORE WITH BLOOMBERG’ CHAM WHO IS IN AMSTERDAM. START WITH SOMETHING AND CLEAR SOMETHING UP.
THEY PUT THEIR EARNINGS OUT EARLY. THAT CONFUSED EVERYONE. THE C.E.O. HAD TO ADDRESS IT ON THE INVESTOR CALL. WHAT DID HE SAY? >> THE RESULTS FOR SCHEDULED FOR TODAY BUT THE COMPANY PUBLISHED THEM EARLY YESTERDAY EVENING BY MISTAKE. THEY DIDN’T SAY MUCH, BUT THEY BLAMED IT ON A TECHNICAL ERROR IN THE STATEMENT YESTERDAY. AND TODAY THE C.E.O.
APOLOGIZED IN AN ANALYSTS CALL ABOUT THE RESULTS. HE SAID THIS WAS VERY UNFORTUNATE. THEY LOOK LESS THAN 456 THE ORDERS THAN ANALYSTS ESTIMATED IN THE THIRD QUARTER. THEY ALSO CUT GUIDANCE FOR NEXT YEAR. THE RESULTS WERE AN UNPLEASANT
SURPRISE FOR ANALYSTS. THE MARKET REACTION WAS AMPLIFIED BY THE COMPANY RELEASING THE RESULTS A DAY EARLIER THAN SCHEDULED. CAROLINE: THEY ARE STILL SINKING BETWEEN THOUGH THE C.E.O.
HAS SPOKEN OUT. HOW DID HE EXPLAIN THE CUT TO GUIDANCE, BOOKINGS DRAMATICALLY UNDER WHERE ANALYSTS THOUGHT? >> ANY WEAKNESS IN AMSL ORDERS OFTEN SIGNALS STRUGGLES FOR THE WIDER CHIP SECTOR. THEY ARE THE MARKET LEADER FOR LITHOGRAPHY MACHINES IN THE WORLD.
WE CAN CALL IT A CHIP BELLW BELLWETHER. THEY ARE SITING A FEW DELAYS IN CONSTRUCTION AROUND THE WORLD AS AN EXPLANATION WHY THE RESULTS WERE BAD. THEY SEE WEAKENING GROWTH IN CHINA FOR THEIR OLDER MACHINES DUE TO COMBINATION OF SOFTENING COMMAND AND POSSIBILITY OF FUTURE EXPORT CONTROLS FROM WASHINGTON. ALSO KEEP IN MIND THAT INTEL IS -- THEIR BIGGEST CUSTOMER IN THE U.S. AND IT’S CUTTING EXPENSES AND RESTRUCTURING PUSH. THAT’S NOT HELPING THE
SENTIMENT, EITHER. THEN YOU HAVE DELAYED FACTORIES OF INTEL IN GERMANY AND POLAND. WHILE MEMORY CHIP MAKERS SUCH AS SAMSUNG AND OTHERS ARE BEING CAREFUL WITH THEIR SPENDING. ALL THESE CUTS ARE AFFECTING DEMAND FOR ASML MACHINES. ED: IF YOU ARE JUST JOINING U. THE WORLD’S MOST IMPORTANT
MAKER OF THE MACHINES THAT MAKE CHIPS HAD REALLY UGLY EARNINGS AND UGLY GUIDANCE. WHAT WAS EXPLAINED IS THE BACK STORY OF EARNINGS THAT CAME OUT EARLY AND A SURPRISE. LOOK AT THE TWO DAY CHART. 16% DECLINE IN AMSTERDAM YESTERDAY. 5% TODAY. THAT ANXIETY, CAROLINE, WAS
AROUND THE WORLD. ASIAN SESSION, EUROPEAN. WE HAVE CHILLED OUT A BIT IN THE U.S. SESSION. WHAT WE ARE WORRIED ABOUT IS THE INVESTMENT CYCLE. WHAT DID ASML TELL US ABOUT THEIR OWN INVESTMENT PLANS? >> YEAH. THE BIG MISS IS A SIGNAL THAT THE CHIP INDUSTRY’S WEAKNESS IS SET TO CONTINUE. THEY SAID WELL INTO 2025. THEY DID SAY ASML WILL SLOW
THEIR SHORT-TERM INVESTMENT PLANS TO MATCH THE MARKET IN TODAY’S CALL. BASICALLY WE CAN ALSO SAY THAT IT’S IMPORTANT TO MENTION THAT THE CHIP INDUSTRY’S EXPERIENCING SOME UNEVEN TIMES. IN AREAS SUCH AS ARTIFICIAL INTELLIGENCE ACCELERATORS, COMPANIES LIKE NVIDIA, CAN’T KEEP UP WITH THE COMMAND. IN OTHER SECTORS INCLUDING AUTO MOTIVE AND INDUSTRIAL, IT’S A WROA LONGED -- PROLONGED SLUMP WITH CUSTOMERS CUTTING BACK ORDERS. THEY MENTIONED WEAKNESS IN THIS. CAROLINE:
THE QUOTE OF THE ENTIRE CALL IS TODAY WITHOUT A.I. THE MARKET WOULD BE VERY SAD. WE THANK YOU SO MUCH. STAY WITH SEMICONDUCTORS. QUALCOMM SAID TO WAIT UNTIL AFTER THE U.S. ELECTIONS WILL IT WILL PUT IN
AN OFFER FOR INTEL. ACCORDING TO SOURCES. WHAT ARE YOUR SOURCES SAYING? >> WHAT WE ARE HEARING IS THAT THIS IS GOING TO BE A VERY COMPLICATED DEAL IF IT DOES HAPPEN. THE BAR IS VERY HIGH TO GET SOMETHING OVER THE LINE. AND THERE ARE HUGE IMPLICATIONS ON THE POLITICAL FRONT. THIS IS NOT JUST YOUR AVERAGE M&A DEAL WHERE YOU ARE THINKING ABOUT ANTITRUST. THERE ARE GEOPOLITICAL ONES.
PART OF WHY INTEL OR QUALCOMM WOULD WANT TO WAIT BEFORE BRINGING ITS FORMAL OFFERS TO HAVE CLARITY ABOUT WHAT THE ANTITRUST LANDSCAPE WILL LOOK LIKE. WHAT THE GEOPOLITICAL ONE LOOKS LIKE. THE U.S.-CHINA RELATIONS IN PARTICULAR ARE VERY IMPORTANT IN THE SEMICONDUCTOR INDUSTRY AND A DEAL LIKE THIS. ED: MICHELLE, THE OTHER PART OF THE REPORTING IS THE SOURCES TOLD US QUALCOMM SOUNDED OUT REGULATORS IN CHINA.
WHAT DID YOU LEARN? MICHELLE: WHAT WE ARE HEARING THIS IS SOMETHING THAT WOULD HAVE BEEN DONE VERY INFORMALLY AT THIS POINT. CHINA HAS NOT WEIGHED IN ON WHAT IT THINKS OF THE DEAL. IF QUALCOMM DOES COME FORWARD WITH ITS FORMAL OFFER, IT WILL ALL HINGE ON THOSE U.S.-CHINA
RELATIONS. THE U.S. HAS INVESTED EFFORT -- MADE A VESTED EFFORT TO MAKE SURE IT IS A NATIONAL PLAYER IN CHIP MAKING AND THAT IT IS NOT AS RELIANT ON CHINA. CHINA WILL HAVE SAY OVER A DEAL LIKE THIS.
IF THOSE RELATIONS ARE PROBLEMATIC, THEN THEY COULD TRY TO GET IN THE WAY OF IT. IT’S A BIG CONSIDERATION. ED: BOTH QUALCOMM AND INTEL DECLINED TO COMMENT ON THE REPORTING. THANK YOU VERY MUCH. INVESTOR FOCUS ON CHIPS WILL CONTINUE AFTER THE BELL BECAUSE TSMC WILL REPORT ITS EARNINGS. PORTFOLIO MANAGER BACK ON BLOOMBERG "TECHNOLOGY." TSMC. THE TIMING, ACCIDENTAL TIMING OF ASML, IT IS IMPORTANT TO THINK ABOUT HOW QUICKLY TSMC COMES. IT’S A CONTINUATION OF THE STORY, RIGHT? THE INVESTMENT CYCLE INTO A.I., FRANKLY, AND WHETHER WE
CONTINUE TO SEE INVESTMENT IN CHIP EQUIPMENT MAKING EQUIPMENT, AND THE CHIPS THEMSELVES. JOANNE. JOANNE: CLEARLY TSMC HAS RELEASED MONTHLY NUMBERS. WE HAVE A GOOD INDICATION THEIR RESULTS WILL BE SOLID AND LED BY A.I. THE ASML NEWS IS MORE ABOUT I THINK CHINA. PARTICULARLY THE PULL FORWARD IN CHINA FOR SOME OF THAT EQUIPMENT AHEAD OF INCREASINGLY SEVERE REGULATIONS AGAINST A -- ASML SHIPPING THERE. 40% OF THEIR BUSINESS COMES OUT OF CHINA. THE FACT THAT ASML DID
ACKNOWLEDGE THAT A.I. CONTINUES TO BE STRONG. BUT ELSEWHERE THINGS ARE WEAKER COULD REFLECT A NUMBER OF THINGS. STARTING WITH INTEL AND ITS PLANS TO DELAY SOME ITS -- AND CANCEL SOME OF ITS OVERSEAS PROJECTS FOR EXAMPLE. CAROLINE: DIG IN TO HOW SAD AS THE C.E.O. OF ASML CALLED IT THE REST OF THE MARKET IS WITHOUT A.I.
JOANNE: WE HAVE HEARD FROM PLENTY OF THE ANALOG CHIP MAKERS LIKE TEXAS INSTRUMENTS THAT IT’S WEAKENING AND THEY DON’T KNOW. WE DON’T KNOW HOW SOFT THIS IS GOING TO BECOME. HASN’T GOTTEN SEVERE YET. THE LAST TIME WE HEARD FROM THEM. ON THE OTHER HAND, WE ALSO HAVE HEARD THAT INVENTORIES HAVE CLEARED IN OTHER MARKETS FOR SEMICONDUCTORS LIKE INDUSTRIALS. WE ARE STARTING TO SEE A PICKUP THERE.
IT’S REALLY HARD TO READ ASML’S COMMENTS ABOUT ORDERS INTO THE BROADER SORT OF AWAY FROM THE LEADING EDGE CHIP BUSINESSES. LIKE ANALOG OR MICROCONTROLLERS. THAT REALLY IS A SIGN, THOSE COMPANIES ANALOG AND MICROCONTROLLERS, TELL US MORE ABOUT THE BROADER ECONOMY. WE KNOW THE U.S. ECONOMY IS DOING WELL. WE ARE SEEING RECOVERY IN INDUSTRIAL. IT’S SORT OF HARD TO TELL WHAT ASML MEANS. HOW MUCH OF IT IS CHINA?
HOW MUCH OF IT IS INTEL PUSHING OUT ITS PLANS? IT’S ACTUALLY NOT A STRAIGHTFORWARD READ AS SOME PEOPLE THINK. CAROLINE: LET’S GIVE THE NUANCE THERE. YOU ARE SO GOOD AT DOING THAT. THIS COMES IN THE CONTEXT OF THE BREAKING NEWS ON MONDAY THAT MAYBE WE WILL SEE YET MORE AND MORE -- LIMITATIONS ON EXPORTS FROM THE U.S.
AND AROUND THE WORLD TO CHINA. NVIDIA CHAIPS, FOR EXAMPLE. WHY WAS N VIDEO SO SOLD OFF YESTERDAY IF IT’S NOT AROUND A. SNIRKS HOW MUCH OF AN IMPORTANCE IS CHINA-U.S. TO SOME THESE VALUATIONS? JOANNE: G NVIDIA SHOULDN’T HAVE SOLD O OFF ON THE NEWS YESTERDAY PARTICULARLY ANSWER SSML SAID IT HAS NOTHING TO DO WITH A.I. N VIDEO IS A BIG COMPONENT OF MANY E.T.F.’S.
WHEN YOU SELL A LOT OF THOUGH THE MONEY FLOWS OUT EVERYTHING IN THEM GETS SOLD. THAT WAS A BIG DRIVER FOR NVIDIA. COULD YOU SEE SOME FOLKS SAYING LET ME GET A LITTLE BIT LESS TO THE SEMICONDUCTOR SPACE OVERALL. GIVEN HOW IT’S RALLIED THAT COULD HAVE BEEN A DECISION MADE ON DIVERSIFICATION. I THINK IT’S THE E.T.F.’S. ED: REMIND US WHICH OF THESE NAMES YOU LIKE AND HOLD. WHICH YOU DON’T. WHY? JOANNE:
WE ARE NOT INVOLVED IN ASML, NOR DO WE LIKE INTEL HERE BECAUSE OF ITS SIGNIFICANT CHALLENGES. WE DO LIKE NVIDIA. WE CONTINUE TO LIKE A NUMBER OF PLAYERS IN THE A.I. SPACE, INCLUDING BROADCOME. OVERALL I THINK THAT THE ECONOMICALLY EXPOSED COMPANIES LIKE TEXAS INSTRUMENTS, WE OWN THAT FOR CLIENTS. I OWN IT MYSELF. I THINK IS A GOOD PLACE TO BE GIVEN HOW STRONG THE U.S.
ECONOMY IS AND HOW MUCH OF A RECOVERY ARE SEEING IN INDUSTRIALS. INTEL, FACES HUGE CHALLENGES TO CATCH UP IN MANUFACTURING. AND IT JUST DOESN’T HAVE THE EXPERTISE TO DO FOUNDRY WORK. IT’S A BIG CHALLENGE FOR THEM TO BUILD A LIBRARY IT CAN BUILD OTHER TYPES OF CHIPS FOR. THE QUALCOMM IF IT GOES THROUGH, WE SUSPECT MORE ORANTED TOWARDS QUALCOMM TRYING TO ACQUIRE THE DESIGN SIDE.
THAT COULD GIVE INTEL A MASSIVE CASH INFUSION TO SAIRVET MANUFACTURING SIDE AND MAKE THE INVESTMENTS THAT ARE NECESSARY. WE THINK THAT’S SUCH A LONG WAY OFF AND SO UNCERTAINTY WE DON’T THINK -- UNCERTAIN WE DON’T THINK INTEL IS THE PLACE TO BE. CAROLINE: WE THANK YOU. WHAT FORMER DONALD TRUMP HAD TO SAY ABOUT TECH REGULATION. IN A COMBINATION WITH JOHN.
ED, YOU ARE WATCHING A STOCK RELATED TO THIS. ED: I AM WATCHING TRUMP MEDIA TECHNOLOGY DJ.T., UP ALMOST 10%. THERE IS A LITTLE WRITING ABOUT THIS ON THE TERMINAL THIS MORNING. SOME PEOPLE SAY THE TRUMP TRADE IS THE DOLLAR RATES TIED TO INFLATION. OTHERS JUST SAY IT’S D.J.T. POINT OUT IT WAS DOWN SIGNIFICANTLY YESTERDAY. IT’S UP SIGNIFICANTLY TODAY.
THERE’S VOLATILITY. BUT THE TIMING’S CURIOUS BASED ON THE FASCINATING INTERVIEW YOU ARE ABOUT TO HEAR. PLEASE DON’T GO ANYWHERE. IT’S BLOOMBERG "TECHNOLOGY."
JOANNE: FORMER PRESIDENT DONALD TRUMP SET DOWN WITH BLOOMBERG EDITOR IN CHIEF OWN TUESDAY FOR A WIDE RANGING INTERVIEW FOCUSED "ON THE ECONOMY," HIS SUPPORT OF TARIFFS, HIS VIEWS ON THE FEDERAL RESERVE, AND FUTURE OF TECH REGULATION. HERE’S WHAT HAD HE TO SAY ABOUT THE POTENTIAL BREAKUP OF GOOGLE. >> GOOGLE HAS A LOT OF POWER. THEY ARE VERY BAD TO ME. THEY ONLY HAVE BAD -- IF I HAVE 20 GOOD STORIES AND 20 BAD STORIES, EVERYONE’S ENTITLED TO THAT, YOU’LL ONLY SEE THE 20 BAD STORIES. AND I CALLED THE HEAD OF GOOGLE THE OTHER DAY AND I SAID, I’M GETTING A LOT OF GOOD STORIES LATELY, YOU DON’T FIND THEM IN GOOGLE. I THINK IT’S A RIGGED DEAL.
I THINK GOOGLELE IS RIGGED JUST LIKE OUR GOVERNMENT. >> YOU WOULD BREAK THEM UP? >> I’D DO SOMETHING. YOU HAVE TO HAVE -- I GIVE THEM CREDIT. THEY HAVE BECOME SUCH A POWER. SUCH A POWER. YOU GOT TO GIVE THEM CREDIT FOR THAT. HOW THEY BECAME A POWER IS REALLY THE DISCUSSION. AT THE SAME TIME IT’S A VERY DANGEROUS THING.
WE WANT TO HAVE GREAT COMPANIES. WE DON’T WANT CHINA TO HAVE THESE COMPANIES. RIGHT NOW CHINA IS A FRIEND OF GOOGLE. RIGHT NOW -- CHINA IS A VERY POWERFUL, VERY SMART GROUP OF PEOPLE, WILL I TELL THAT YOU. >> CHINESE TECH COMPANY AT THE MOMENT. TIKTOK. YOU INITIALLY WANTED TO BAN TIKTOK.
NOW YOU LIKE IT APPARENTLY FOR SOME REASON TO DO WITH FACEBOOK. THERE IS A DECISION COMING UP, IF YOU BECAME PRESIDENT, IT’S CHINESE PARENT WOULD HAVE TO SELL IT. JANUARY 19. WOULD YOU FORCE THEM TO DO THAT? >> I ORIGINALLY HAD IT ALL DONE AND I SAID TO CONGRESS. YOUR DECISION. I SAID I’M NOT GOING TO PULL ANY STRINGS, NOTHING.
YOUR DECISION. YOU MAKE IT. BUT I HAD IT ALL DONE. I SAID YOU MAKE IT. AND THEY DECIDED NOT TO MAKE T I DIDN’T CARE IF THEY MADE IT OR NOT. TO ME IT WAS A FLIP OF A COIN. YOU HAVE OVER -- YOU HAVE SOME
REAL FIRL AMENDMENT PROBLEMS. >> YOU TALKED ABOUT CHINESE TECHNOLOGY, THE NEED TO DEFEND TENSE AGAINST IT. TIKTOK AND THE THREAT. AMERICAN CHILDREN, AND THINGS LIKE THAT.
WHY DO YOU NO LONGER SEE -- >> I THINK IT IS A THREAT. FRANKLY I THINK EVERYTHING’S A THREAT. THERE IS NOTHING THAT’S NOT A THREAT. BUT SOMES YOU HAVE -- SOMETIMES YOU HAVE TO FIGHT THROUGH THE THREATS. LIKE GOOGLE, I’M NOT A FAN OF GOOGLE. THEY TREAT ME BADLY. BUT IF YOU -- ARE YOU GOING TO DESTROY THE COMPANY BY DOING THAT? IF DO YOU THAT ARE YOU GOING TO DESTROY THE COMPANY? WHAT CAN YOU DO WITHOUT BREAKING IT UP IS MAKE SURE THAT IT’S MORE FAIR. ED: THAT WAS FORMER PRESIDENT
DONALD TRUMP WITH BLOOMBERG EDITOR WHY CHIEF JOHN. LET’S REVIEW THE INTERVIEW WITH BLOOMBERG’S MIKE SHEPHERD WHO LEADS OUR COVERAGE WITH THE INTERVENTION BETWEEN TECH AND POLITICS. HE STOPPED SHORT OF SUGGESTING A BREAKUP OF GOOGLE. HE WAS FIRMER ON TIKTOK. WHAT ELSE DID YOU LEARN ABOUT HIS POTENTIAL POLICY PLATFORM GOING FORWARD IN TECH? >> I THINK ONE OF THE BIGGEST TAKE AWAYS FROM THAT IS HE’S TRYING TO MAINTAIN FLEXIBILITY. HE TRIED TO LEAVE DOORS OPENED
ON BOTH COMING DOWN ON GOOGLE. BUT ALSO MAYBE FINDING SOME WAY TO PLAY BOTH ENDS AGAINST THE MIDDLE SO HE DOESN’T HAVE TO GO TO REALLY UNRAVELING WHAT HE WAS HAILING DURING THE CONVERSATION WITH JOHN AS A GREAT POWER. HE REALLY POINTED TO GOOGLE’S MARKET CLOUD AS SOMETHING IN A WAY TO ALSO BE ADMIRED AND SOMETHING THAT GIVES US A GEOPOLITICAL ADVANTAGE WITH CHINA. WE DO HAVE ONE SIGNAL ON -- FROM HIS CAMP THAT THERE COULD BE A CONTINUATION OF THIS VIGOROUS ANTITRUST ENFORCEMENT. THAT IS HIS RUNNING MATE, J.D. VANCE.
HE’S PREVIOUSLY EXPRESS ADD FAVORABLE VIEW OF HOW -- EXPRESSED A FIERVEL VIEW OF HOW THE HEAD OF THE F.T.C. HAS -- THAT COULD GIVE US A CLUE OR SIGNAL THERE. JOANNE: MANY ARE WONDERING ABOUT THE SIGNAL ABOUT MMA AS WELL T FEELS AS THOUGH WITH AN ANTI-COMPETITIVE PERSPECTIVE THAT MIGHT BE TOUGH. MIKE: I THINK RIGHT THERE.
ALSO ON TIKTOK ONE OF THE STIPULATIONS UNDER THE NEW LAW IS THAT THE APP BE SOLD. THE QUESTION IS, WOULD THIS REALLY VALUABLE ASSET INTO THE MARKET SOMEPLACE. HERE IN THE INTERVIEW TRUM IS REALLY PLAYING BOTH ENDS AGAINST THE MIDDLE. HE DID NOT SAY FOR SURE THAT HE WOULD ENFORCE THE NEW LAW THAT PRESIDENT JOE BIDEN SIGNED AT THE END OF APRIL AS PART AFTER LARGER FOREIGN AID BILL.
AND LIKEWISE IN YOUR CONVERSATION WITH OUR COLLEAGUE, MICHELLE DAVIS, WE SAW SIGNS IN OTHER COMPANIES, QUALCOMM IN PARTICULAR, THAT THEY HAVE RESERVATIONS ABOUT MAKING ANY KIND OF MOVE BEFORE THEY KNOW HOW THIS ELECTION IS SHAPING UP BECAUSE THE ENVIRONMENT COULD ACTUALLY BECOME VERY DIFFERENT WHEN IT COMES TO REGULATION. JOANNE: MIKE SHEPHERD, WE APPRECIATE IT. THANK YOU. COMING UP, WE’LL TALK TO THE HEAD OF DIGITIZATION FOR KYIV IN UKRAINE. HE’S AT OUR CITY SUMMIT IN MEXICO CITY. THIS IS BLOOMBERG "TECHNOLOGY." ED: DAY TWO OF BLOOMBERG’S CITY LAB SUMMIT IN MEXICO CITY. OVER 500 MAYORS AND POLICYMAKERS, INCLUDING THOSE FROM KYIV UKRAINE, FOUR MILLION IS BEING PROVIDED BY BLOOMBERG PHILANTHROPIES FOR DIGITAL PROJECTS IN UKRAINE. KYIV IS A CITY USING A.I.
FOR URBAN PLANNING, TO SAN FRANCISCO MAINT INDECENCY AND SECURITY. THE CITY OF KYIV UKRAINE ADVISOR TO THE MAYOR AND HEAD OF DIGITALIZATION OLEG POLOVYNKO JOINS US. WHAT IS IT YOU HOPE TO ACHIEVE WITH ALL YOUR PEERS THERE IN ATTENDANCE? OLEG: HELLO, EVERYONE. THANK YOU FOR HOSTING ME. DEFINITELY UKRAINE NOW AND THE CITY OF KYIV IS THE MOST CHALLENGEABLE TIME. WE DOING OUR BEST AND USING DIGITALIZATION TO HELP OUR RESIDENTS ACHIEVE SERVICES FROM THE CITY. AND USE IT IN CONVENIENT AND COMFORTABLE WAY. JOANNE: HOW DIFFICULT IS IT TO
IMPLEMENT TECHNOLOGICAL INNOVATION AT THIS MOMENT IN A MOMENT OF WAR? OLEG: FIRST OF ALL WE HAVE OUR SUPER OUTREACH, 3.9 MILLION USERS. WE HAVE 3.6 RESIDENTS. IT’S NOT ALL RESIDENTS. BUT THE REFUGEES FROM OTHER REGION WHO CAME INTO KYIV ALREADY DOWNLOADED IT. THE MAIN GOAL OF THIS APPLICATION IT PROVIDES INFORMATION TO OUR USERS TO HELP THEM FIND BOMB SHELTERS, HEATING, ANY HELP AND SERVICES WHAT THEY NEED IN THE CITY WHEN THEY ARRIVE. WHEN THEY LEAVE THERE. WE FACE ELECTRICITY OUT RANGE.
IN THIS MOMENT CITIZENS HAVE TO KNOW HOW TO SURVIVE IN THE CITY. SO THEY USE OUR APPLICATION FOR THAT. JOANNE: I CAN IMAGINE THE MENTAL HEALTH SPORT -- CAROLINE: THE INFORMATION YOU ARE ABLE TO GIVE. WHAT ABOUT FUTURE INVESTMENT WHERE ARE YOU ALLOCATEING? IS IT ABOUT THE HELP OF GENERATIVE A.I. WITHIN THE SUPER APPS TO BE SOME HELP WITHIN MENTAL HEALTH DISCUSSIONS? IS IT ABOUT MORE LOGISTICAL INFORMATION? WHAT ARE YOU TALKING ABOUT? OLEG: WHAT WE ALREADY PROVIDE IT’S ABOUT TRANSPORTATION, IT’S ABOUT SAFETY, CIVIL DEFENSE FUNCTION. BUT YOU UNDERSTAND THAT THE
RESIDENTS OF THE CITY TWICE PER DAY MISSILE ATTACK ALARMS. AND THEY ARE REALLY TIRED ABOUT ALL OF THAT. THAT’S WHY BLOOMBERG PHILANTHROPIES WE NOW DEVELOPING THE PROJECT IN MENTAL HEALTH AREA WHICH HELPS TEST YOURSELF IN THE APPLICATION. AFTER THAT PROVIDE ADDITIONAL RECOMMENDATIONS AND SERVICES WHICH HELPS YOU IMPROVE YOUR MENTAL HEALTH. ADDITIONAL A.I. TECHNOLOGY HELPS US TO MAKE SERVICES AND PROVIDE SERVICES FOR RESIDENTS MORE EFFICIENTLY.
PROVIDING ADDITIONAL SERVICES, MAKING RECOMMENDATIONS. ED: VERY QUICKLY, WHICH AREA OF YOUR CITY DO YOU NEED TO MODERNIZE THE MOST? OLEG: EXCUSE ME? ED: WHICH AREA OF YOUR CITY DO YOU NEED TO MODERNIZE FIRST? OLEG: AREA WHAT WE ARE COVERING THIS AS A CIVIL DEFENSE. THIS IS A TRANSPORTATION. THIS IS SELF-TESTING AND SELF-IMPROVEMENT OF THE RESIDENTS. CAROLINE: SO GOOD TO HAVE SOME OF YOUR TIME. HEAD OF DIGITALIZATION. OWE OLEG POLOVYNKO. HOW AST SPACE MOBILE IS TAKING ON SPACEX TO OFFER A CELLULAR BROADBAND NETWORK FROM SPACE. WE’LL TALK TO THE COMPANY’S
PRESIDENT. CAROLINE: WELCOME BACK TO BLOOMBERG "TECHNOLOGY" I’M CAROLINE HYDE IN NEW YORK. ED: I’D ED LUDLOW IN SAN FRANCISCO. CAROLINE: WE ARE TRYING TO DIGEST THE SHOCK ANNOUNCEMENTS OF ASML WHICH MANAGED TO PUMMEL SOME OF THE CHIP SECTOR YESTERDAY. TODAY WE SEE A LITTLE REPRIEVE. WE SEEM TO FLIP-FLOPPING BETWEEN GAINS AND LOSSES ON THE NASDAQ 100 MORE BROADLY. DRILL INTO SOME OF THE
INDIVIDUAL MOVERS. DESPITE THE C.E.O. COMING OUT TO EXPLAIN THE NUMBERS, ASML IS STILL UNDER PRESSURE. IN TERMS OF ITS A.D.R.’S TRADED IN THE UNITED STATES. SEE ASML UNDER PRESSURE. INTERESTINGLY THE CHIPS SECTOR MORE BROADLY IS BOUNCING BACK. NVIDIA IN THE GREEN. THIS ISN’T AN A.I. STORY. A.I. REMAINS THE BRIGHT SPOT. THE SAD SPOT IS THE CONSUMER
TEIXEIRA, P.C. VOLUME, SMART PHONE. THAT’S WERE YOU EAPPLE UNDER PRESSURE BY 1.4%. ED: NEWS FROM THE AEROSPACE SECTOR. AIRBUS IS JOINING BOEING IN COST CUTTING MEASURES. THE EUROPEAN PLANE MAKER WILL
CUT UP TO 2,500 JOBS IN THE DEFENSE AND SPACE DIVISION. THAT’S EQUIVALENT ABOUT 7% OF THE WORKFORCE. THE COMPANY DECIDED IT NEEDS TO STEP UP TO ADAPT TO WHAT IT CALLED AN INCREASINGLY DIFFICULT SPACE MARKET.
CAROLINE: STICK WITH SPACE. AST SPACE MOBILE IS BUILDING THE FIRST ONLY CELLULAR BROADBAND NETWORK FROM SPACE. WORKING WITH GIANTS LIKE AT&T, GOOGLE, VERIZON, AND MORE. THAT’S THE BIGGEST COMPETITOR TO SPACEX IN THE DIRECT TO SELL BUSINESS. TO DISCUSS THIS IS PRESIDENT SCOTT WISNIEWSKI WHO JOINS US IN THE STUDIO. MANY ARE TRYING TO WORK OUT HOW REALISTIC.
YOU HAVE SLIGHTS IN THE SPACE. THERE ARE MORE TO BE BUILT. PLENTY MORE. HOW ARE YOU ON THIS JOURNEY? SCOTT: WE HAVE BEEN AT THIS -- THANK YOU FOR HAVING US. WE HAVE BEEN AT THIS FOR SEVEN YEARS. NOW NETWORK IS PURPOSE BUILT FOR THE SPACE BASE CELLULAR BAND OPPORTUNITY.
WE HAVE BEEN WORKING WITH MANY OF THESE OPERATORS FOR OVER FIVE YEARS NOW. YOU MENTIONED A FEW. WE HAVE MANY MORE ABROAD AS WELL. SO FOR US THE FIRST STEP WAS TOE LAUNCH THESE FIRST FIVE COMMERCIAL SATELLITES. WE’LL HAVE MORE TO COME
STARTING IN Q1, 125. OUR GOAL IS TO GET ABOUT 45 TO 60 IN THE US TO US PROVIDE 24/7 COMMERCIAL SERVICE TO YOUR PHONE WITH NO MODIFICATION. ED: THANKS FOR COMING ON BLOOMBERG "TECHNOLOGY." YOUR ABILITY TO SERVE THE WORLD DIRECTLY CORRELATES TO THE CONSTELLATION IN ORBIT FROM THAT PERSPECTIVE EXPLAIN TO US THE TIME LINE FOR EXPANSION BUT YOUR ABILITY TO SERVE THOSE MARKETS ON EARTH. SCOTT:
WE IMPORTANTLY ARE LOW EARTH ORBIT NETWORK, MEANS WE ARE GLOBAL. THAT’S A PROBLEM AND THAT YOU NEED MANY SATELLITES. ONCE YOU ARE OPERATIONAL YOU CAN SERVE MANY MARKETS. THAT’S WHY WE PUT TOGETHER THIS NETWORK OF 45-PLUS PARTNERSHIPS GLOBALLY WITH THE MOBILE NETWORK OPERATORS. WHO COVER COLLECTIVELY OVER 2.8
BILLION SUBSCRIBERS. THAT NETWORK IS SOMETHING WE WANT TO BUILD QUICKLY, OUR PARTNERS DO. WE ARE GOING TO START DOING BAIT WHY SERVICE WITH THE FIRST FIVE SLIGHTS, 30-PLUS MINUTES A DAY AS SOON AS WE COMMISSION THE SATELLITES HERE IN ORBIT FROM THERE WE ARE VERTICALLY INTEGRATED WHICH IS VERY IMPORTANT FOR WHAT WE ARE DOING. BASED IN TEXAS. WE HAVE OUR KEY HUBS HERE IN
THE UNITED STATES. IN ADDITION TO BEING PUBLICLY TRADED AND BASED HERE. FOR US GETTING THAT FACTORY AT FULL SPEED WE BELIEVE OUR CAPACITY IS UP TO SIX SATELLITES A MONTH. THESE ARE BIG SATELLITES. VERY SPECIALIZED FOR THIS APPLICATION. WE ARE GOING TO BE BUILDING THOSE RAPIDLY. WE ARE IN PRODUCTION FOR THE NEXT 17. ED:
THAT IS INTERESTING. CAROLINE AND I WERE ROCKET LAB FRIDAY FOR A SPECIAL SHOW. WHAT I FOUND SO FASCINATING ABOUT THAT IS THAT THEIR LIMITING FACTOR IS NOT THEIR ABILITY TO BUILD ROCKETS AND LAUNCH, IT’S THE CUSTOMERS SENDING THINGS UP. WHAT IS YOUR LIMITING FACTOR? IT SOUNDS LIKE YOU CAN BUILD. IS IT YOUR LAUNCH PROVIDER? WHAT’S THE LIMITS ON GROWTH? SCOTT: FOR US GOING BACK TO BEING VERTICALLY INTEGRATED WE CONTROL MOST OF THE INPUTS TO THE SUPPLY CHAIN AND MANUFACTURING. FOR US WE HAVE HAD A LOFT
SUCCESS SO FAR THIS YEAR RAISING CAPITAL. WE CONTROL THE MANUFACTURING AND SUPPLY CHAIN. AND WE HAVE GREAT PARTNERS, SOME OF WHICH YOU PUT UP ON THE SCREEN. WE BELIEVE THAT THE BALL IS LARGELY IN OUR COURT. STILL A LOT TO WORK THROUGH. BUT WE CONTROL MOST OF THE INPUTS OF PRODUCTION AND ABILITY TO DELIVER THE SERVICE. AND WE ARE IN A RACE TO GET IT UP TO ORBIT AS SOON AS POSSIBLE. CAROLINE: TALKING OF CAPITAL.
YOU ARE POTENTIALLY GOING TO SELL MORE STOCK. WE ARE UP 300% YEAR TO DATE. YOU HAVE BEEN THE BEST PERFORMING RUSSELL 2000 NAME. RECORD HIGHS. 1,300% UP FROM THE PREVIOUS LOW. 30% OF THE OUTSTANDING SHARES ARE SHORTED. WHAT DO YOU SAY TO THOSE SHORTS WHO ARE WORRIED ABOUT THE ATE TO MAKE THIS -- ABOUT THE ABILITY TO MAKE THIS DISCUSSION A REALITY? SCOTT: WE THINK WHAT WE HAVE IS HIGHLY DIFFERENTIATED TECHNOLOGY.
CAROLINE: LIKE SPACEX YOU ARE COMPETING AGAINST. SCOTT: WHAT WE ARE DOING IS DIFFERENT. CELLULAR BROADBAND FROM SPACE IS DIFFERENT FROM S.O.S. OR TEXTS. WE THINK WE ARE USEFUL TO THE OPERATORS WHO HAVE PARTNERED WITH US.
WE ARE GOING TO PROVIDE A SERVICE THAT’S VERY IMPORTANT TO THE CONSUMER. WHEN OUR PHONE DOESN’T WORK IT WEIGHS HEAVY IN OUR POCKET. WE THINK DEMAND FOR OUR SERVICE ARE SIGNIFICANT. AND WE ARE PUSHING AS FAST AS WE CAN. OUR STOCK HAS PERFORMED WELL ON
THE BACK OF OUR SUCCESS THIS YEAR. FOR US WE HAVE TO PRODUCE FOR OUR SHAREHOLDERS AND CUSTOMERS. WE ARE EAGLETORY DO THAT. ON THE CAPITAL SIDE, WE HAVE ANNOUNCED SUCCESS OF THE U.S. GOVERNMENT AS A CUSTOMER.
AND PREPAYMENTS WITH WITH MANY OF OUR TOP -- PAYMENTS WITH MANY OF OUR TOP PROVIDERS, CUSTOMERS, WHO GET INITIAL ACCESS TO THE NETWORK. FOR US THE STOCK HAS PERFORMED WELL. WE ARE OFFICIAL IN 2025 AND 2024 AND PLAN TO STICK WITH THAT. ED: SORRY, PUSHING MY LUCK WITH TIME. THE TEAM KNOWS I’M EXCITED
ABOUT THIS AREA. EXPLAIN HOW IT WORKS FROM A REVENUE PERSPECTIVE. IF I USE MY PHONE IN MY POCKET, YOU’RE PARTNERING WITH THE CARRIER AT&T. IT’S YOUR CONSTELLATION AND TECHNOLOGY. YOU NEED TO SPLIT WHO IS MAKING MONEY IN THE TRANSACTION. EXPLAIN THAT VERY QUICKLY, PLEASE. SCOTT:
OUR ORGANIZATIONS PRINCIPAL FROM THE BEGINNING HAS BEEN A REVENUE SHARE. WE PROVIDE A SERVICE THAT’S UNIQUE, SUPPLEMENTAL TO THE COVERAGE THAT OUR PARTNERS PROVIDE, AND IT’S A SERVICE THAT WILL BE PROVIDED THROUGH THAT PARTNER. FOR US OUR ORGANIZING PRINCIPAL HAS BEEN REVENUE SHARE WAWFL OUR CUSTOMERS. THERE ARE MANY WAYS TO GO TO MARKET THAT ARE VERY INTERESTING. WE’LL BE FLEXIBILITY BY MARKET.
AT ITS CORE WE WANT TO DRIVE NEW REVENUE, NEW GROWTH, HELP OUR CUSTOMERS REDUCE CHURN BY MAKING THEIR SERVICE MORE VALUABLE N THAT PROCESS WE SHARE THE REVENUE. CAROLINE: WHEN YOU HIT THOSE TARGETS, SCROIP SCROIP, THANK YOU FOR YOUR TIME. ED: CHECK OUT THIS TERMINAL. S.M.L. HAS LOST ITS PLACE AS EUROPE’S TECH COMPANY TO SOFTWARE S.A.F. THE DUTCH CHIPMAKER’S SHARES PLUNGING. S.M.L. LOST ABOUT $65 BILLION IN MARKET COMPANY CAP IN THAT SESSION. ONLY BOOKED ABOUT HALF THE
ORDERS THE AN ALESES WERE EXPECTING IN Q3. AIRBNB ANNOUNCED NEW FEATURE TO MANAGE THEIR RENTALS. THE IDEA FOR HOSTS TO RESOURCE AND COORDINATE GUESTS LOGISTICS. THEY HOPE THE NEW FEATURE WILL BOOST LITTINGS. PARAMOUNT’S THREE CO-C.E.O.’S WILL GET PAID EVEN IF THEY ARE NOT THE BOSS. THEY’LL RECEIVED THEIR ANNUAL
CASH BONUSES EVEN IF THEY ARE REPLACED. PARAMOUNT IS IN THE PROCESS OF MERGING . CAROLINE: WE’LL BE TALKING ANOTHER OF YOUR FAVORITES.
JASON CHAPMAN, CONVOY CO-FOUNDER ON THE STATE OF THE GAMING INDUSTRY. AND INVESTMENTS. THIS IS BLOOMBERG "TECHNOLOGY." CAROLINE: YOU ARE LACKING AT A LIVE SHOT OF THE PRINCIPAL ROOM. CHECK OUT THE PODCAST, FIND IT
ON THE TRMAL, AS WELL AS ON ONLINE AT APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG. ED: KONVOY ESTIMATES THE GAMING MARKET REACHED $188 BILLION THIS YEAR. WITH V.C. FUNDING IN GAMES REACHING $517 MILLION SO FAR. FOR MORE ON THAT LANDSCAPE INCLUDING THE IMPACT OF A.I., KONVOY CO-FOUNDER AND MANAGING
PATTER IN JASON CHAPMAN JOINS US. FIND IT INTERESTING WE CAN GET INTO THE HEALTH OF THIS INDUSTRY A LITTLE BIT. BUT THE SHEAR SIZE OF THE OVERALL INDUSTRY. THE SIZE, 188. WHY IS THAT IMPORTANT?
JASON: THANK YOU. THANK YOU FOR HAVING ME. GAMING IS THE MOST SIGNIFICANT PORTION OF THE ENTERTAINMENT MARKET TAITD. WE ARE LARGER THAN LINEAR TV, LARGER THAN MOVIES, MUSIC. MANY CASES SOME OF THOSE INDUSTRIES COMBINED. GAMING HAS CONTINUED TO GROW. ITS PROVEN ITS RECESSION RESILIENT. IT’S BEEN TESTED AND TRIED IN ABOUT EVERY WAY, SHAPE, AND FORM. WE ARE PLEASED TO SEE THAT FUNDING IS NORMALIZED.
LAST SIX QUARTERS WE ARE SEEING ROUGHLY AROUND $500 BILLION TO $600 BILLION INVESTED QUARTERLY BASIS INTO GAMES. WE SEE NO REASON THAT WILL STOP. THAT PAIRED WITH INTEREST RATES DRIVING DOWN. OPEN UP THE I.P.O. MARKETS. BULLISH ON A 2025 FOR GAMES. CAROLINE: GIVEN THE SIZE, SHEAR SKATE OF THE OVERALL INDUSTRY, HOW MUCH DOES THE CHUNK OF CHANGE GET. IS IT SYNONYMOUS TO THE EXTENTS OF ITS SIZE. JASON: IF YOU LOOK AT LARGER VENTURE,
THERE’S ABOUT $50 MILLION TO $60 MILLION INVEST ADD QUARTER. WE ARE SEEING ABOUT $500 MILLION TO $#00 MILLION IN GAMES. IT IS A SIGNIFICANT PORTION. IT’S MORE STABLE. I THINK YOU SEE LESS FLASH IN THE PANS AS YOU ARE SEEING RIGHT NOW A COUPLE YEARS AGO. THIS YEAR YOU ARE SEEING IN A.I. GAMING IS STEAD I. WE ARE PLEASED TO SEE THAT. WE ARE EXPECTING TO SEE --
CONTINUED INTEREST RIDING OUT THIS YEAR AND BLEED INTO 2025. CAROLINE: I WANT TO TRY OUT IF WE CAN GET ALL THREE ON THE SCREEN FOR A MOMENT. WE HAD SUCH A FUN CONVERSATION LAST WEEK, THURSDAY, WE ARE IN L.A. WE WERE DISCUSSING THE INDUSTRY MORE BROADLY WHEN IT COMES TO GAMING.
WE HAD A LEGEND FROM BLIZZARD JOIN THE SHOW HAS A NEW STUDIO. THERE IS STILL A FOCUS ON WHEN IT COMES TO DEVELOPMENT OF GAMES AND HOW HARD IT IS. JASON: TALKING ABOUT MIKE. LAST NIGHT I WAS AT AN EVENT WITH LOADS OF DEVELOPERS IN THE ROOM. THE REASON I’M SO FIXATED ON JASON’S $1 # 8 BILLION NUMBER IT IS IT’S GETTING BIGGER.
ALL THE TEAM PEOPLE IN THAT ROOM WHO WERE DEVELOPERS WOULD TELL THAT YOU THEY ARE SUFFERING. LAYOFFS AT VIDEO GAME, PUBLISHERS AND DEVELOPERS ARE INCREASING. THE CRUNCH, THE CRUNCH YOU 23 KNOW WHAT THAT IS IS MORE REAL THAN EVER.
WHY IS THE INDUSTRY GETTING BIGGER? JASON: I THINK IT’S GETTING BIGGER BECAUSE PEOPLE WANT TO CONTINUE TO SPEND TIME NINT ACTIVE ENVIRONMENTS. IF YOU LOOK AT YOUNGER GENERATIONS THEY ARE SPENDING LESS AND LESS TIME WATCHING TV WHICH IS PASSIVE. THEY WANT TO BE IN AN ENVIRONMENT THEY KIMM PACT.
THAT’S TRUE. WHY IS THERE THE CRUNCH IN GAMES? PEOPLE TALK ABOUT THIS A LOT BECAUSE USERS ARE VERY DEMANDING. WE EXPECTS A LOT FROM OUR GAMES. WE HAVE BEEN SPOILED OVER THE YEARS. WE HAVE GREAT CREATE YIFTS PRODUCING HIGH QUALITY CONTENT WE ENJOY ON A DAILY AND WEEKLY BASIS. THAT’S NEVER GOING TO STOP. I THINK YOU ARE TALKING ABOUT THE LAYOFFS.
WE HAVE SEEN ABOUT 13,000 JOBS LOST IN THE GAMES INDUSTRY WE TRACKED FROM THE PUBLIC COMPANIES. IT’S LIKELY HIGHER IF YOU INCLUDE PRIVATE. WE EXPECT WE’LL SEE MORE. THAT’S A HEALTHY THING FOR THE INDUSTRY. I KNOW THAT’S HARD TO SAY AND HEAR. WE OVERHIRED DURING THE BOOM ERA. WE ARE GOING THROUGH A RIGHT
SIZING NOW. IT’S ENCOURAGING TO SEE EVEN IF THAT RIGHT SIZING OUR INDUSTRY CONTINUES TO THRIVE AND GROW. THAT IS AN ENCOURAGING REALITY FOR THOSE IN THE GAMES AND ONE WE’LL REMEMBER. CAROLINE: WHAT’S NOT HEALTHY AT THE MOMENT IS CHILD SAFETY. I KNOW I GOT A 7-YEAR-OLD AT HOME WHO IS DESPERATE TO BE ON ROADBLOCKS AND MINE CRAFT. I HAND HIM BOOKS ABOUT IT BECAUSE I’VE GOT TO GET MY SAFETY PRECAUTIONS IN GEAR. UNDERSTAND HOW I MAKE HIM SAFE
ONLINE BEFORE I LET HIM DO IT. HOW ARE YOU THINKING ABOUT WHAT’S HAPPENING VERSUS TIKTOK, CHILD SAFETY BILL, AND THINGS LIKE ROADBLOCKS. JASON: AS KIDS SPEND MORE AND MORE TIME ONLINE, I HAVE A LOT OF EMPATHY AS A PARENT MYSELF, YOU HAVE TO TAKE THAT SERIOUSLY IN EVERY WAY, SHAPE, AND FORM. WHEREVER THIS IS, AND WHEREVER IT IS, THAT’S WHERE YOU NEED TO PROTECT THE KIDS. WHEN WE ARE LOOKING AT THIS WE THINK ABOUT THIS IN A LOT OF DIFFERENT WAYS.
EVERY SINGLE GAMING FIRM HAS TO RECONCILE IF YOU COMMAND A KID’S TIME ARE YOU TAKING RESPONSIBILITY AND DIGITAL DAYCARE. WE HAVE INVESTED HEAVILY IN THE SPACE. ONE IS K.I.D., ACTUALLY ATTACKING THIS ISSUE STRAIGHT ON. WHICH IS TRYING TO PROMOTE AND ENSURE THAT THE COMPANIES ARE CLIENT WITH DIFFERENT REGULATIONS ACROSS THE GLOBE. THIS IS ONE OF THE HUGE
CHALLENGES FOR GAMES COMPANIES. I HAVE A LOT OF EMPATHY FOR THEM. WHEN YOU RELEASE A GAME, YOU RELEASE IT IN OVER 100 COUNTRIES.
TRYING TO STAY CLIENT AND ENSURE EVERY KID IS SAFE ACCORDING TO THE LAWS IS DIFFICULT. THAT’S WHY WE MADE THIS INVESTMENT EARLY. AND THEY CONTINUE TO THRIVE. WHAT YOU ARE HIGHLIGHTING WITH
ROADBLOCKS, THE HINDENBURG REPORT THAT CAME OUT WAS PRETTY INTENSE WITH THE ALLEGATIONS. I’D SAY TOWARDS A TWO SIDES OF THE HOUSE. ONE IS CHILD SAFETY. THE OTHER IS THEIR FINANCIAL METRICS. I’LL HONE IN ON CHILD SAFETY. THEY HAVE TO TAKE THIS VERY SERIOUSLY. IT’S SOMETHING THEY HAVE TO LOOK INTO.
UNTIL PROVEN OTHERWISE, I THINK THAT ROADBLOCKS HAS PROVEN TO BE A BEST IN CLASS DIGITAL PROPERTY. I WOULD LIKE TO THINK THEY CAN HANDLE THESE ISSUES HEAD-ON. CAROLINE: JASON CHAPMAN OF KONVOY, THANK YOU. DETAILS ON GOOGLE’S INVESTMENTS MEANT TO STAY ON TOP OF THE GROWING ENERGY NEEDS OF A.I.
THIS IS BLOOMBERG "TECHNOLOGY." CAROLINE: AMAZON SAYS ITS TEAMING WITH FINANCE YEAR KEN GRIFFIN TO MAKE A $500 MILLION INVESTMENT IN SMALL NUCLEAR REACTORS. HERE’S WHAT MATT SAID EARLIER TODAY.
>> AS THE WORLD CONTINUES TO MODERNIZE, DIGITIZE AS WE THINK ABOUT THE POWER OF GENERATIVE A.I., ALL OF THESE CAPE INTERS ARE LEADING TO THE COMMANDS DEMANDS OF MORE POWER. NUCLEAR IS AN INCREDIBLY IMPORTANT PART OF REACHING THAT CARBON ZERO GOAL FOR US. ED: WE’LL HEAR FROM MATT TOMORROW. HE JOINS US RIGHT HERE ON BLOOMBERG "TECHNOLOGY."
AMAZON IS NOT THE ONLY ONE. GOOGLE HAS GONE NUCLEAR. THEY ARE INVESTING IN THE DEVELOPMENT OF SEVERAL NUCLEAR POWER REACTORS ACROSS THE UNITED STATES. IT HOPES THE DEAL WILL HELP IT MEET THE GROWING NEED FOR ELECTRICITY TO FUEL A.I. HERE NOW MICHAEL TERRELL, SENIOR DIRECTOR OF ENERGY AND CLIMATE AT GOOGLE. I GUESS THE BEST STARTING POINT BECAUSE IT’S WELL DOCUMENTED THE TERMS OF THE DEAL, S.M.R.’S AND WHAT THEY ARE IS WHETHER IT MEANINGFULLY CHANGES THE TRAJECTORY OF MEETING A POWER NEEDS, BUT ALSO YOUR TARGETS FOR CLIMATE AS WELL. MICHAEL:
THE WORLD NEEDS MORE CARBON FREE ENERGY. THIS H HAS BEEN A 15-YEAR JOURNEY AT GOOGLE. IT’S OUR FIRST NEW ENGLAND LAR ENERGY DEAL. WE FEEL NUCLEAR IS A VERY IMPORTANT TECHNOLOGY FOR GOING CARBON FREE FOR OFFICES, DATA CENTERS, COMMUNITIES WHERE WE OPERATE BECAUSE IT’S AN ALWAYS ON CARBON FREE ENERGY RESOURCE.
ED: I’M VERY INTERESTED IN THE TECHNOLOGY. YOU KNOW I AM. I’M ALSO INTERESTED IN THE ECONOMICS AND MATH. ARE YOU ABLE TO SAY EVEN IF IT’S AN ESTIMATE KIND OF WHERE YOU SEE THE DOLLAR PER MEGAWATT HOUR BEING BY 2030, 2035 WHEN THESE COME ONLINE? MICHAEL: I CAN’T TALK ABOUT THE SPECIFICS OF THIS DEAL. WHAT’S INTERESTING ABOUT IT IS
IS WE DIDN’T DO A DEAL FOR ONE REACTOR. IT’S FOR A SERIES. WHAT WE CALL AN ORDER BOOK. THAT REPEATABILITY THOSE DRIVE DOWN COSTS. IT HELPS TO TAKE THE TECHNOLOGY TO SCALE FASTER. CAROLINE: YOUR FOCUS IS ELIMINATING
CARBON EMISSIONS BY 2030. DOES THIS GET YOU THERE? MICHAEL: THAT’S RIGHT, CAROLINE. WE HAVE A GOAL AS A COMPANY TO BE 24/7 CARBON FREE EVERYWHERE WE OPERATE, EVERY LOCATION, EVERY HOUR OF THE DAY. IT’S A HUGE CHALLENGE.
WE HAVE BEEN IN THIS SPACE FOR 15 YEARS IN TERMS OF DOING WIND AND SOLAR, LARGE DEALS. WE ARE ONE OF THE LARGEST CORPORATE PURCHASERS OF WIND AND SOLAR ON THE PLANET. WE SIGNED OVER 100 DEALS. WE KNOW TO GET TO CARBON FREE 24 HOURS A DAY, WE NEED MORE TECHNOLOGIES THAN JUST WIND AND SOLAR. THE WIND DOESN’T BLOW ALL THE TIME. THE SUN DOESN’T SHINE ALL THE TIME. WHAT’S GREAT ABOUT TECHNOLOGIES
LIKE ADVANCED NUCLEAR IS THEY PROVIDE A MORE ALWAYS ON RESOURCE. IT’S A VERY BIG PART OF OUR PATH TO 24/7 CARBON FREE ENERGY. CAROLINE: IT TAKES TIME. RIGHT NOW A.I. GENERATIVE A.I., THE TRAINING
OF IT IS IN THE HERE AND NOW. DO YOU HAVE THE ENERGY INFRASTRUCTURE NECESSARY TO SATISFY THAT DEMAND? MICHAEL: YES, WE DO. IT’S WHY WE ARE MAKING BIG BETS LIKE WE ARE ON NUCLEAR. WE ARE ALSO STILL BETTING BIG ON WIND AND SOLAR AND STORAGE. WE SIGNED OVER 34 GIGAWATTS OF
DEALS LAST YEAR. THE MOST WE HAVE EVER SIGNED IN A SINGLE YEAR. NOW WE ARE INKING NEW AGREEMENTS WITH UTILITIES TO DEVELOP A PORTFOLIO OF TECHNOLOGIES THAT CAN MEET OUR 24/7 CARBON FREE NEEDS.
WE ARE BOTH BETTING SHORT TERM AND LONG TERM. ED: I KNOW YOU WON’T GET ME A DOLLAR PER MEGAWATT, YOU DO EXPECT THE S.M.R.’S TO BE COMPETITIVE AND VALUE VERSUS SOLAR AND WIND AND THE OTHER TECHNOLOGICALS -- THROLGS YOU OUTLINED. MICHAEL: WE WOULDN’T DO THIS IF IT DIDN’T MAKE SENSE. HOW WE VALUE THESE APPROACHES
IS IS THE ALWAYS ON NATURE OF -- IT DELIVERS A LOT OF VALUE. YOU CAN PUT IT ANYWHERE. THAT AGAIN IS VERY GOOD FOR THE BUSINESS. ED: CAN I JUMP IN QUICK AND ASK YOU, YOUR JOB IS REALLY INTERESTING. YOU ARE RESPONSIBLE FOR THE ENERGY NEEDS. IF YOU’RE NOT CALCULATING THE COSTS PER MEGAWATT HOUR, DO YOU HAVE A CLEAR FIGURE IN YOUR HEAD ABOUT THE ENERGY NEED OVER A FIVE YEAR OR 10 YEAR HORIZON? MICHAEL: WE HAVE BEEN DOING THIS FOR 15 YEARS.
WE HAVE A GOOD SENSE HOW OUR DEMAND WILL GROW ANTI-PORTFOLIO AND RESOURCES WE NEED. WE ARE MAKING DECISION THAT IS MAKE SENSE FOR THE BUSINESS AND OUR GROWTH AS A COMPANY. WE FEEL WE ARE ON A GOOD PATH. CAROLINE: IT’S BUSY OUT THERE IN NUCLEAR. NEVER HAVE WE TALKED ABOUT IT MORE. IN THE AMAZON DEAL FOR EXAMPLE.
THESE ARE COMPANIES THAT WE HAVE NOT HEARD OF THE POWER AND PRIVATE X ENERGY. ARE THERE ENOUGH START-UPS, COMPANIES BUILDING WHAT YOU NEED RIGHT NOW TO PARTNER WITH? MICHAEL: IT REMINDS ME OF THE EARLY DAYS OF WIND AND SOLAR. WE WERE ONE OF THE PIONEERS IN SIGNING CORPORATE P.P.A. AGREEMENTS TO BUY THESE TECHNOLOGIES. THERE ARE NOW A LOT OF PLAYERS IN THE -- THERE WERE NOT A LOT OF PLAYERS IN THE EARLY DAYS.
NOW WITH THIS NEW SET OF TECHNOLOGIES WE’LL NEED TO GET TO 24/7 CARBON FREE ENERGY, IT’S NOT JUST NUCLEAR, IT’S LONG DURATION STORAGE. GREAT TO SEE PEOPLE GET IN THE GAME. THE MORE THE BETTER. I’D LIKE TO SEE MORE. ED: RUNNING OUT OF TIME, YOU WILL LOOK AT GEOTHERMAL. CAN YOU GIVE US A PROPORTION OF WHAT YOU SEE THE CONTRIBUTION OF NUCLEAR GEOTHERMOMETERLAL -- GEOTHERMAL AND CONSTITUTIONALAR.
MICHAEL: GEOTHERMAL WAS ONE OF THE FIRST WE DID. IN 202120 DO A PROJECT IN NEVADA. IT’S SCALED TO DEAL 25 TIMES BIGGER THAN THE ORIGINAL PROJECT.
WE HAVE EXPERIENCE IN DEALING WITH THESE NEW TECHNOLOGIES AND WE ARE SUPER EXCITED ABOUT THE POTENTIAL FOR NUCLEAR. ED: SENIOR DIRECTOR OF ENERGY AND CLIMATE AT GOOGLE. APPRECIATE YOU JOINING US ON BLOOMBERG "TECHNOLOGY."
CAROLINE: WHAT A WIDE RANGING EDITION OF BLOOMBERG "TECHNOLOGY." ALL FROM SPACE TO POWER TO S.M.L.’S. STILL NEED TO TRACK THAT. ED: KEEP YOUR EYE ON THE CHIPS SECTOR THROUGHOUT THE DAY. 24 HOURS IT’S BEEN WILD. RECAP ON THE PODCAST, YOU KNOW
WHERE TO FIND IT. AS WELL AS ONLINE ON APPLE, SPOTIFY, AND IHEART. THANK YOU NEW YORK TEAM AND EVERYONE HERE IN S.F. THIS IS BLOOMBERG "TECHNOLOGY."
2024-10-18 01:15
