Google's AI Updates and Tesla's Sales Expectations | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE I BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED LUDLOW, HE'S OFF. THIS IS "BLOOMBERG TECHNOLOGY." GOOGLE UNVEILS A HOST OF UPDATES TO ITS AI PRODUCTS. WE WILL BREAK DOWN WHAT CAME
FROM THE COMPANY'S CLOUD COMPUTING CONFERENCE. JUST LET ME BE HEADED FOR ANOTHER SALES DECLINED BACK TO BACK -- TESLA MAY BE HEADED FOR ANOTHER SALES DECLINED BACK TO BACK. WE WILL HEAR FROM THE FORMER CEO OF TESLA. GM'S RESUMES ROBOTAXI TESTING. LET'S GET TO WHAT THE MARKETS ARE TELLING US. WE HAD AN ABOUT TURN WHEN HE CAME TO THE OVERALL EQUITY MARKET PERFORMANCE. WE ARE TRADING LOWER SINCE 10:00 A.M., WITH A BIT OF A SELLOFF, AND THE NASDAQ IN
PARTICULAR DOWN .4%. WE ARE SEEING BUYING AHEAD OF THE ALL-IMPORTANT CPI PRINT AS SOON AS TOMORROW. CRYPTO ON THE DOWNSIDE, OFF 3.3%.
RISK AVERSION, SELLING IN THE MARKET. WE'VE ALSO GOT BREAKING NEWS A MICRO PERSPECTIVE. I WANT TO MOVE ON TO WHAT IS HAPPENING ON BOEING.
BREAKING NEWS AND DELIVERIES FOR THIS PARTICULAR COMPANY. TRADING OFF BY .4% ON BOEING. BESIEGED BY ISSUES AMID A CATASTROPHIC INCIDENT IN JANUARY.
THIS IS WHERE WE SEE THE FIRST QUARTER OF SALES FOR BOEING BE WHAT WE THINK IS THE WORST WE HAVE SEEN ALL THE WAY BACK TO 2021. PEOPLE ARE SEEING A SLOWING OF PRODUCTION OF 737 MAXES. THEY NEED TO MAKE SURE THE SUPPLY CHAIN IS READY AND THEY ARE MANAGING TO ENSURE EVERYTHING IS SAFETY FIRST FOR BOEING MORE BROADLY. LET'S DIG INTO THE STORY BECAUSE IT HAS A TECHNOLOGY ELEMENT. BROOKE SUTHERLAND IS WITH US, I'M PLEASED TO SAY. LET'S GET TO THE DELIVERIES
FROM BOEING. THEY ARE POOR. WE PROBABLY EXPECTED IT. BROOKE: WE DID COME AND IT IS A GOOD STORY, BAD STORY FOR BOEING. DELIVERY NUMBERS ARE NOT WHAT THEY WANT THEM TO BE AND WHAT THEY ARE CUSTOMERS WANT THEM TO BE, BUT THIS IS THE RESULT OF THE COMPANY TAKING THE TIME TO GET TO THE BOTTOM OF THE QUALITY-CONTROL ISSUES.
THE FAA HAS KEPT GOING -- CAPPED BOEING'S PRODUCTION RATE. THEY ARE NOWHERE NEAR THAT PACE RIGHT NOW AND IT IS GOING TO SLIP EVEN FURTHER BECAUSE THEY ARE TRYING TO DIAL BACK ON THE CONCEPT OF TRAVELED WORK. WHAT THAT MEANS IS PUTTING A PRIORITY ON MOVING THE PLANE THROUGH THE PRODUCTION PROCESS EVEN IF YOU DON'T HAVE ALL THE PARTS AND THE QUALITY-CONTROL ISN'T WHERE IT SHOULD BE. BOEING IS MOVING AWAY FROM THAT AND ARE TAKING A STEP BACK AND TRYING TO DRILL INTO SAFETY AND THE ENGINEERING PROCESSES. THAT IS A GOOD THING IN THE LONG RUN BUT IT IS NOT GOING TO SHOW UP IN THE DELIVERY NUMBERS IN THE SHORT TERM. CAROLINE: LET'S REAFFIRM WHAT THE DELIVERY NUMBERS ARE. 83 JETS DELIVERED IN THE FIRST
QUARTER, LOWEST SINCE 2021. 29 JETS IN MARCH WERE SOLD, AND THAT IS 24 737 MAXES. IT SHOWS THE IMPORTANCE OF THIS PARTICULAR MODEL AND THEY WERE BOOKING 113 GROSS ORDERS IN MARCH, AND ONLY TWO CANCELLATIONS. IS ANY OF THE SPRING OF DEMAND FOR THE 737 MAX? -- IS ANY OF THIS PUTTING OFF TO MEN FOR THE 737 MAX? BROOKE: I DON'T THINK IT IS, BECAUSE YOU HAVE A DUOPOLY.
IF YOU ARE AN AIRLINE AND YOU NEED PLANES, YOU REALLY ONLY HAVE ONE OPTION IN THE SHORT-TERM TERM, AND THAT IS BOEING. THAT SHOWS HOW IMPORTANT THIS AIRPLANE IS AND HOW IMPORTANT IT IS THAT BOEING GET THIS RIGHT AND GETS TO THE BOTTOM OF WHAT THE QUALITY-CONTROL ISSUES ARE. THEY ARE LOSING MARKET SHARE TO AIRBUS. AIRBUS HAS BEEN ABLE TO PULL
ADD IN THE NARROWBODY JET MARKET. YOU ARE NOT SEEN DEMAND FALL OFF A CLIFF FOR BOEING. THAT DOES PROVIDE SUPPORT, BUT ALSO ENCOURAGEMENT FOR THE COMPANY TO FIGURE THIS OUT AND GET CUSTOMERS THE JETS THEY WANT TO BUY. CAROLINE: LET'S JUST DIG INTO AIRBUS BECAUSE WE ARE ANTICIPATING DELIVERIES. IT WAS UNDER PRESSURE MORE THAN THE FRENCH BENCHMARK TODAY.
WHAT ARE WE SEEING IN TERMS OF ULTIMATE ECONOMIC SENTIMENT HITTING AIRBUS AND BOEING? IS THERE ANY TECH ANGLE WE CAN WE EVEN? -- WEAVE IN? BROOKE: AIR TRAVEL DEMAND HAS HELD UP PRETTY WELL EVEN IN THE INFLATIONARY ENVIRONMENT. YOU ARE SEEING STRONG DEMAND FOR AIR TRAVEL, AND BOTH BOEING AND AIRBUS HAVE A DEMAND PROBLEM -- SORRY, A SUPPLY PROBLEM, NOT A DEMAND PROBLEM. THE ONUS IS ON THEM TO CHURN OUT THESE AIRPLANES AND GET THEM TO CUSTOMERS. CAROLINE: LOVE HAVING YOU ON, BLOOMBERG
OPINION COLUMNIST BROOKE SUTHERLAND ON THE LATEST DELIVERY NUMBERS. THE SCHEDULER BREAD-AND-BUTTER, BECAUSE GOOGLE IS HAVING -- LET'S GET TO OUR BREAD-AND-BUTTER, BECAUSE GOOGLE IS UNVEILING A HOST OF UPDATES RUN ARTIFICIAL INTELLIGENCE OFFERINGS, TRYING TO SHOW HOW THIS TECHNOLOGY IS ENTERPRISE-READY AFTER SOME PRETTY OBVIOUS MISHAPS EARLIER THIS YEAR WHEN IT CAME TO CONSUMER USE. GOOGLE IS TRYING TO SHAKE OFF WHAT HAS BEEN HAPPENING EARLIER IN THE AIR WHEN IT COMES TO GEMINI APPLICATION ACROSS IMAGE GENERATION.
HOW FIT FOR PURPOSE IS IT FROM AN ENTERPRISE PERSPECTIVE? >> YEAH, HI, HAPPY TO BE HERE. GOOGLE IS FRAMING THESE ANNOUNCEMENTS AS THIS IS CLOUD POSSIBLE MOMENT IN ENTERPRISE, AND IT SAYS THAT THE SAME RISKS THAT WERE AROUND FOR THE CONSUMER PRODUCT ARE NOT REALLY THERE FOR ENTERPRISE CUSTOMERS, BECAUSE MARKETERS, CLOUD CLIENTS HAVE A LOT MORE CONTROLS OVER THE OUTPUTS. GOOGLE HAS SAID IT IS PROVIDING UP TO 19 FINE-TUNED CONTROLS FOR PEOPLE WHO USE ITS ENTERPRISE PLATFORM. WITH THAT LEVEL OF CONTROL YOU
CAN MAKE SURE THAT THE IMAGES AND OUTPUTS THAT THE AI IS GENERATING ALIGNS WITH YOUR BRAND'S IMAGE. CAROLINE:, IT'S REALLY INTERESTING EARLIER TODAY WE WERE LOOKING AT HOW BEST BUY IS INTEGRATING GENERATIVE AI, GOOGLE A PARTNER FOR THEM. WHO ARE THE KINDS OF BUSINESSES WHO ARE ADOPTING GOOGLE, USING GOOGLE CLOUD TO ENSURE THEY HAVE THE COMPUTER POWER TO BUILD GENERATIVE AI SYSTEMS THEMSELVES? DAVEY: IT'S A LOT OF STARTUPS.
GENERATIVE AI STARTUPS IN PARTICULAR. ONE BIT OF NEWS THAT CAME OUT TODAY IS THAT GOOGLE IS CONTINUING TO SIGN UP WITH THESE KINDS OF CUSTOMERS FOR ITS CLOUD PLATFORM. LAST YEAR IN AUGUST, GOOGLE SAID IT HAD SIGNED UP UP TO 70% OF AI UNICORNS. TODAY THEY ARE SAYING THAT FIGURE IS UP TO 90% OF GENERATIVE AI UNICORNS USING ITS CLOUD COMPUTING SERVICES NOW. CAROLINE: INTERESTING THAT EVERYBODY IS FOCUSING ON THAT PARTICULAR AREA.
I WANT TO KNOW HOW GOOD IT IS, DAVEY. THIS HAS BEEN THE PERENNIAL ISSUE. MANY HAVE FELT EVEN THOUGH THEY WERE AT THE VERY ITERATIONS OF GENERATIVE AI, IT WAS BECAUSE OF THE WORK AND THE R&D GOOGLE DID THAT GOT US TO WHERE WE ARE TODAY, BUT THEY HAVE LOST MARKET SHARE AND MIND SHARE TO THE LIKES OF OPENAI. DAVEY: ABSOLUTELY. GOOGLE SAYS THERE ARE A COUPLE OF THINGS THAT DIFFERENTIATES ITSELF FROM THE COMPETITION.
ONE THING THAT IS PRETTY UNIQUE TO THEM IS THAT THEY HAVE GEMINI 1.5 PRO, THAT IS UNDERLYING A LOT OF THESE AI OFFERINGS FOR ENTERPRISE. THAT MODEL HAS THE LONGEST CONTEXT WINDOW, GOOGLE SAYS, OF ANY AI MODEL. IT CAN PROCESS UP TO ONE MILLION TOKENS AT A TIME. TOKENS ARE WORDS OR PIECES OF WORDS. THAT MEANS MARKETERS CAN UPLOAD AUDIO FILES, PHOTOS, IMAGES, VIDEOS, POTENTIALLY THOUSANDS OF THEM. AND THAT WILL BE THE BASIS FROM
WHICH THE AI GENERATES NEW CONTENT. ANOTHER THING THAT GOOGLE SAYS IS UNIQUE TO THEM IS THAT THEY ARE MORE OPEN AND TO OTHER CLOUD COMPUTING PLATFORMS, AND THOMAS KOREAN, WHO WE SPOKE TO A HEAD OF THE ANNOUNCEMENTS TODAY, DIDN'T NAME ANY SPECIFIC COMPETITORS, BUT THAT SEEMED TO BE REFERRING TO OPENAI. ONE THING THAT HE EMPHASIZED WAS GOOGLE CLOUD WANTS ENTERPRISE CUSTOMERS TO BE ABLE TO CHOOSE A PLATFORM, NOT AN AI MODEL.
WITHIN ITS PLATFORM, IT MAKES AVAILABLE A BUNCH OF DIFFERENT MODELS INCLUDING ANTHROPICS AND METAS, AND DEVELOPERS CAN PICK AND CHOOSE WHAT AI MODELS THEY WANT TO USE. CAROLINE: ALL OF THIS COMES BACK TO CHIPS, DAVEY, AND IT LOOKS LIKE GOOGLE IS FOCUSING ON IN-HOUSE CHIPS. IT IS NOTABLE THAT NVIDIA'S DOWN ON THE DAY AND BLOOMBERG INTELLIGENCE SAYS THERE IS A DEEPENING ELATION SHIP BETWEEN.COM AND ALPHABET. WHAT DO YOU MAKE OF THE CHIP MOVE? DAVEY: YEAH, GOOGLE HAS LONG BEEN WORKING ON ITS OWN CHIPS, BUT ESPECIALLY WITH THE DEMAND INCREASING FOR AI COMPUTING POWER, THIS IS SOMETHING THAT THEY CAN KIND OF BRING -- GET THEIR EXPERIENCE AND BRING IT TO BEAR ON THIS EFFORT. ONE OF THE ANNOUNCEMENTS TODAY WAS THAT GOOGLE WAS ROLLING OUT ITS OWN ADVANCED CHIPS, AND HOPEFULLY THAT WILL HELP IT TO COMPETE WITH THE LIKES OF NVIDIA AND OTHER CHIPMAKERS. GOOGLE'S CLOUD STRATEGY -- ITS
AI STRATEGY ON THE HOLD APPEARS TO BE LET'S HAVE OUR FINGERS IN EVERY POT AND KEEP PUSHING THE BALL FORWARD ON AI TO MAKE SURE WE REMAIN RELEVANT AFTER HAVING LAID THE GROUNDWORK FOR A LOT OF THE AI INNOVATIONS THAT WE SEE TODAY THAT ARE BEING USED ACROSS ALL SORTS OF COMPANIES INCLUDING OPENAI. CAROLINE: THE EVENT CONTINUES. DAVEY ALBA, WE THANK YOU FOR BRINGING US ALL THE LATEST OUT OF A KEY CLOUD EVENT FOR GOOGLE. COMING UP, TESLA'S FORMER CEO AND COFOUNDER SAID IT WOULD BE A SHAME IF THE EV MAKER SCRAPS PLANS FOR A CHEAPER CARPET WE WILL GET HIS TAKE ON THAT AND EEEV TRANSITION OR BROADLY.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TESLA ONCE UPON A TIME HAD A PRETTY GOOD CEO, MARTIN EBERHARD. HE WAS ONE OF THE TRUE FOUNDERS OF THE COMPANY.
HE SAYS TESLA SHOULD RETHINK ITS PLANS TO SCRAP THE LOW-COST ELECTRIC CAR REPORTED OF LATE, THAT THE COMPANY NEEDS TO FOCUS ON COSTS. HE SAT DOWN WITH HASLINDA AMIN IN HONG KONG, AND STARTED ON WHETHER OR NOT THE EEEV TRANSITION IS SLOWING DOWN. MARTIN: I DON'T THINK THAT IS TRUE. MAYBE TESLA IS SLOWING DOWN.
THE AUTO INDUSTRY HAS SLOWED DOWN IN THE LAST YEAR OR TWO, PARTICULARLY THE U.S. HASLINDA: IN TERMS OF TESLA'S BREAKNECK GROWTH, IT IS DONE AND DUSTED? MARTIN: LOOKING AT ONE SMALL DOWNTURN, MAYBE IT IS OVER, MAYBE IT IS NOT, IN SOME WAYS IT DOESN'T REALLY MATTER BECAUSE THE EV PHENOMENON HAS TAKEN OVER THE ENTIRE AUTO INDUSTRY. WE SEE WHAT IS COMING OUT OF CHINA LIKE CRAZY THE NEXT SEVERAL YEARS.
KOREAN EV'S ARE AMAZING. EVEN IN THE U.S. THERE MAKING EV'S STILL. HASLINDA: THE CURRENT GROWTH PACE IS THE NEW NORMAL? MARTIN: WITH THE PLAYERS WILL BE, NOT EVERYBODY WILL SURVIVE. I THINK TESLA PROBABLY WILL. HASLINDA: DO YOU BUY THIS E SPIN THAT TESLA IS IN BETWEEN TWO GROWTH WAVES? MARTIN: MAYBE THAT IS ONE WAY TO LOOK AT IT. I THINK IT'S A SHAME, THEY
MIGHT -- IT SEEMS LIKE A BETTER MARKET THAN THE GIGANTIC TRUCK THEY MAKE. HASLINDA: WHY DO YOU THINK TESLA IS SO RELUCTANT NOW, AND WHY HAS IT BEEN SO DIFFICULT AND SO SLOW TO GET TO THE CHEAPER VERSIONS OF THOSE EV'S? MARTIN: IT'S A NEW TECHNOLOGY AND IT IS DIFFICULT TO DRIVE IT PRICE DOWN. THE PROFIT OF -- HIGH-END LUXURY CARS IS MUCH HIGHER AND IT IS EASIER TO MAKE MONEY IN THAT SPACE.
WHEN YOU MOVE TO LOWER-PRICED MARKETS, YOU NEED THE ABILITY TO BUILD AT A DIFFERENT LEVEL. HASLINDA: SO WHERE IS TESLA GOING WRONG, OR WHERE SHOULD TESLA BE FOCUSING ON TO GET TO WHERE IT NEEDS TO GET YOU IN TERMS OF CHEAPER MODELS? MARTIN: TESLA NEEDS TO BE FOCUSED ON COST. IT IS TO BE FOCUSED ON COST INSTEAD OF TECHNOLOGY FOR THE SAKE OF TECHNOLOGY. HASLINDA: DOESN'T NEED NEW TALENT, INITIATIVES? MARTIN: OH, I DON'T THINK SO. THEY WILL MANAGE JUST FINE. HASLINDA: IN TERMS OF TESLA'S FUTURE 10, FIVE YEARS DOWN, WHERE DO YOU SEE TESLA? IT COULD BE CONCENTRATING ON EV'S, BUT OTHER PROJECTS AS WELL. HOW DO YOU SEE TESLA IN TERMS
OF GROWTH? MARTIN: WHAT I WOULD LIKE TO SEE IS TESLA SUCCEEDING TO MAKE EV'S INTO THE FORESEEABLE FUTURE. I WOULD LIKE TO SEE THEM CONTINUE TO MAKE EV'S. WHETHER THEY DO IT OR NOT IS NOT MY SAY. HASLINDA: YOU WERE WITH VOLKSWAGEN FOR QUITE SOME TIME.
TWO YEARS AFTER YOU LEFT TESLA. YET WHEN IT COMES TO THEIR EV STRATEGY, THEY'VE NOT BEEN ABLE TO REPLICATE WHAT TESLA HAS DONE. WHY IS THAT? MARTIN: LET'S JUST SAY INNOVATOR'S DILEMMA. VOLKSWAGEN HAS BEEN VERY
SUCCESSFUL, MORE SUCCESSFUL THAN ANY OTHER COMPANY MAKING GASOLINE AND DIESEL CARS. IT IS HARD FOR A COMPANY LIKE THAT TO PUSH TECHNOLOGY TO SUGGEST PEOPLE BUY CARS OTHER THAN THE ONES THAT HAVE BEEN MAKING THE MONEY FOR YEARS. CAROLINE: THE FORMER TESLA CEO MARTIN EBERHARD, ALONG WITH OUR OWN HASLINDA AMIN. LET'S COME FULL CIRCLE WITH WHAT TESLA IS AT THE MOMENT AND HEADED FOR PERHAPS VEHICLE SALES DECLINING IN ANOTHER QUARTER. AFTER A SURPRISING -- AFTER
SURPRISING INVESTORS WITH THE DROP IN THE FIRST THREE MONTHS OF THE, ACCORDING TO ANALYSTS SUCH AS ROBERT BAIRD, CRAIG TRUDELL IS HERE TO SUM UP WHAT IS THE NARRATIVE. WE ALMOST FRONT RUN THIS WITH THE STOCK MOVE. BEGINNING OF THE YEAR WE SUCH TESLA CAN SIGNIFICANTLY UNDERPERFORM. NOW THAT IS STARTING TO BE BORN OUT IN DELIVERY NUMBERS. WHO THINKS THE DECLINE IS GOING TO BE CONTINUING? >> THE IDEA THAT ROBERT BAIRD, AS YOU MENTIONED, EXPECT THE SECOND QUARTER TO BE ANOTHER DECLINE, JUST LOOKING AT THE CHART WE HAVE ON THE TERMINAL WITH THAT STORY, IT DOESN'T SPEAK TO THIS IDEA THAT THERE WILL BE AT LEAST IN HIS ESTIMATION A BIT OF A TAKE UP JUST FROM THE SEASONABLY LOW FIRST QUARTER. TO HIS POINT, THE COMPARISON
FROM YOUR GOES TOUGHER, AND AS YOU MENTIONED, EARLIER THIS YEAR THE STOCK WAS UNDERPERFORMING BECAUSE WE KEPT HEARING ANALYST AFTER ANALYST TALK ABOUT THIS IDEA OF THE OUTLOOK FOR SALES WASN'T THAT GREAT. LO AND BEHOLD, THE COMPANY COMES IN WAY BELOW ANALYST EXPECTATIONS. THIS SORT OF LEADS PEOPLE THE SECOND-GUESS THEIR ASSUMPTIONS FOR THE COMPANY THROUGH THE REST OF THE YEAR. CAROLINE:
THERE IS THIS GREAT STREET RAP, BLOOMBERG SUMMARIZING WHAT ALL THE ANALYSTS HAVE BEEN SAYING, AND MANY HAVE AND WANTING TO TALK ABOUT THE ROBOTAXI FOCUS VS. THE CONCERN OF NO LONGER HAVING THE MODEL TO A CHEAP CAR. WHAT DO YOU MAKE OF THE VIEWS OF THE ROBOTAXI? CRAIG: I THINK THE SKEPTICISM IS BORNE OUT JUST FROM THE YEAR AFTER YEAR PATTERN OF MUSK TALKING ABOUT ROBOTAXIS BEING JUST AROUND THE CORNER. I THINK WE ARE COMING UP ON THE FIVE-YEAR ANNIVERSARY OF MUSK HOLDING THE FIRST TESLA AUTONOMY DAY. I REMEMBER COVERING THIS AND WATCHING MUSK TALK ABOUT THIS IDEA THAT BY THE MIDDLE OF 2020 HE WAS SAYING THE MILLION TESLAS ON THE ROAD WERE GOING TO BE CAPABLE OF TURNING INTO ROBOTAXIS, AND THAT PEOPLE WOULD BE EVEN ABLE TO FALL ASLEEP IN THEIR CAR. THAT IS NOT COME TO PASS. THE EXPECTATION THAT TESLA IS GOING TO BE ABLE TO DELIVER A FULLY SELF-DRIVING VEHICLE, I THINK WALL STREET IS GOING TO NEED TO HAVE SOME SHOW THERE. CAROLINE:
FOR NOW, 20BUYS ON THE STOCK, 14 SELLS. CRAIG TRUDELL, GREAT TO HAVE YOU WRAPPING IT UP. GENERAL MOTORS'S CRUISE BUSINESS IS READY CHOOSING TESTING OF THEIR ROBOTAXIS IN PHOENIX. AFTER GROUNDING ITS FLEET LAST YEAR, REMEMBER THE COMPANY IS SET TO ANNOUNCE AND BEGIN TESTING AS EARLY AS TODAY.
CRUISE HAS BEEN IN TALKS WITH OFFICIALS IN METROPOLITAN AREAS WHERE IT RAN CARS. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: A DEVELOPMENTAL STAGE COMPANY COMMITTED TO BRAIN-IMPACT TECHNOLOGY AS COMPLETED ITS FIRST SURGERY. IT'S A DEVICE THAT CAN BE USED FOR MAPPING AND TARGETING BRAIN AREAS COMMIT USED TO TREAT A RANGE OF NEUROLOGICAL CONDITIONS.
JOINING US IS THE COO, DAVE ROWE CONGRATULATIONS ON THE SURGERY THAT I UNDERSTAND OCCURRED AS RECENTLY AS YESTERDAY. I WANT TO GET YOUR PERSPECTIVE ON HOW BIG A SEISMIC SHIFT THIS IS FOR YOU. >> I THINK IT'S A TREMENDOUS, TREMENDOUS ACCOMPLISHMENT FOR THE COMPANY. I ALSO THINK FOR THE FIELD. WHAT PATIENTS HAVE BEEN DEALING WITH THAT UNDERGO THE SURGERIES IS THEY HAVE HAD TO COME IN FOR AN INVASIVE DIAGNOSTIC SURGERY WHERE THE SURGEON TRIES TO LOCATE THE PROBLEMATIC AREA IN THE BRAIN AND THEN THERE IS PATIENT -- AND THEN THOSE PATIENTS WOULD BE SENT HOME AND RESCHEDULED FOR A THERAPEUTIC SURGERY WHERE ANOTHER DEVICE WOULD HAVE TO BE PLACED TO REMOVE THE TISSUE. WHAT WE ARE ABLE TO DO WITH THIS TECHNOLOGY IS USE THE SAME DEVICE TO DO BOTH IN THE SAME HOSPITALIZATION, WHICH WE THINK WILL CUT DOWN ON HOSPITALIZATION SURGERIES FOR THE PROCEDURES.
WE THINK THIS IS A MAJOR ACCOMPLISHMENT. CAROLINE: PUTTING CHIPS OR OTHER DEVICES WITHIN THE BRAIN, THE OXYGEN SEEMS TO HAVE BEEN SUCKED OUT OF THE ROOM BY COMPANIES SUCH AS NEURAL LINK. BUT THE CONTEXT AROUND THIS -- HOW LONG HAS THIS BEEN HAPPENING ? HOW LONG HAVE WE BEEN PUTTING ITS OF EQUIPMENT, DEVICES INTO THE BRAIN, IS TO ENSURE WE KNOW WHAT IS GOING ON THERE? DAVE: FRACTIONALLY MANY, MANY YEARS. IT IS NOT NEW FOR BRAIN MAPPING AND EVEN COMPANIES LIKE NEURALI NK, PUTTING BCI DEVICES IN PATIENTS TO HELP THEM MOVE A COMPUTER MOUSE BY JUST THINKING. THAT HAS BEEN DONE FOR QUITE A LONG TIME. I THINK THE ELOQUENCE OF HOW THEY ARE DOING IT NOW AS MUCH, MUCH DIFFERENT, BY USING WIRELESS SYSTEMS OR LESS INVASIVE SYSTEMS WHERE YOU ARE ABLE TO PLACE THE DEVICES THROUGH A BLOOD VESSEL. THAT IS WHERE THE ADVANCEMENTS
HAVE COME RECENTLY. CAROLINE: YOU ARE PUTTING ELECTRODES IN THE BRAIN. CURIOUS WHAT THE DIFFERENT PRODUCTS ARE YOU ARE DEVELOPING ON WHAT THEY ACTUALLY DO. DAVE: THE ELECTRODES WE HAVE ON THE GOAL OF THE COMPANY WAS TO BE ABLE TO USE THE SAME DEVICE TO DO MAPPING AND STIMULATION, ANOTHER THERAPEUTIC TREATMENT FOR CONDITIONS LIKE PARKINSON'S DISEASE AND EVEN EPILEPSY.
BUT REALLY WHAT EXCITES ME ABOUT THE FUTURE OF THIS TECHNOLOGY IS NOT JUST THE THINGS THAT COMPANIES LIKE NEURALINK ARE TRYING TO ACCOMPLISH, TO HELP PEOPLE THAT ARE PARALYZED. I THINK THE NEXT WAVE OF UTILIZATION FOR DEVICES LIKE OURS IS TO BE ABLE TO DELIVER NEW GENE THERAPIES AND DRUGS AND DELIVER THEM PRECISELY TO THE PART OF THE BRAIN THAT IS CAUSING THE ISSUE FOR PATIENTS, AND THEN BE ABLE TO SIMULTANEOUSLY MONITOR THE EFFICACY. OTHER INDICATIONS WHICH I THINK, AGAIN, WILL BE BIG OPPORTUNITIES ARE ALZHEIMER'S, PRIMARILY, THAT ALSO CONDITIONS LIKE SEVERE DEPRESSION. SCIENTISTS HAVE FOUND AREAS OF THE BRAIN THAT CONTROL EMOTIONS, AND THERE HAS ALSO BEEN SOME REALLY EXCITING WORK DONE BY THE MAYO CLINIC ON IMPROVING SHORT-TERM MEMORY USING ELECTRODES LIKE THIS FOR ALZHEIMER'S PATIENTS. CAROLINE: WE ALWAYS WISH THE FUTURE WAS SOONER THAN IT CURRENTLY IS.
THANK YOU FOR PAINTING EXACTLY WHAT NEUROONE IS DOING. WE THANK YOU FOR THE TIME. COMING UP, WE HAVE GOT TO BE TALKING ABOUT SOMETHING IN THE FUTURE OF BITCOIN. WE WILL DISCUSS THAT WITH RENA SHAH, COMING UP NEXT.
MEANWHILE, LET'S KEEP A CLOSE EYE ON WHAT IS HAPPENING WITH A FRENCH KURT -- FRENCH COMPANY, CURRENTLY UNDER PRESSURE. IT HAS A HEAVY DEBT LOAD. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I'M CAROLINE HYDE IN NEW YORK. WE DID GET A TURN IN THE EQUITY MARKET AND WE ARE UNDER PRESSURE BY .4% ON THE NASDAQ 100.
THINKING OF NVIDIA AND META-, SELLING OFF EVEN AS WE SEE BOND YIELDS COMING DOWN. THE ALL-IMPORTANT CPI PRINT COMING TOMORROW. ACROSS THE CURVE WE ARE SEEING A LITTLE BIT OF DIP BUYING. GOOD POINT UNDER PRESSURE AS RISK ASSETS --BITCOIN UNDER PRESSURE AS RISK ASSETS SELLOFF.
68,923. MOVING TO INDIVIDUAL MOVERS, TESLA ACTUALLY MANAGING TO BE ONE OF THE BIGGEST CONTRIBUTORS TO THE NASDAQ 100 TODAY. MANY ARE TRYING TO DIGEST WHAT THE ANNOUNCEMENT IN AUGUST SURROUNDING THE ROBOTAXI INNOVATION IS GOING TO MEAN FOR A COMPANY THAT IS PULLING BACK ON CHEAPER OFFERINGS AND TRYING TO READ THE ROOM ON WHERE TESLA IS GOING AND HOW MUCH THEY HAVE BEEN SOLD OFF ALREADY. CISCO IS GETTING AN UPLIFT FROM CERTAIN ANALYSTS. GALAXY DIGITAL TRADED OVER IN CANADA. OFF BY 18%. THEY ARE RAISING MONEY, $125 MILLION OF IT, AN ALL-STOCK DEAL BUYING UP THE OVERALL STOCK AND TRYING TO PUT IT TOWARDS WORKING PURPOSES AND CONTINUING TO KEEP ON FEELING BUSINESS.
WE'RE OFF SIGNIFICANT LEON THE BACK OF THAT SUPPLY. KEEP AN EYE ON CRYPTO NAMES AS CRYPTO IS UNDER PRESSURE. WE HAVE SEEN CRYPTO SELLING OFF TODAY. THE MOMENTUM HAS BEEN UP INTO THE RIGHT OF LATE, AND THAT IS BECAUSE WE HAVE HAD PLENTY TO TALK ABOUT FROM AN ETF PERSPECTIVE, BUT COMING UP IN A COUPLE WEEKS, THE BITCOIN HAL VING EVENT, WHICH HAS A HISTORY OF BOOSTING THE PRICE EVEN MORE. THERE ARE HOPES MORE GENERALLY THAT THE RECORD HIGH THIS YEAR MIGHT HAVE ROOM TO RUN. WHAT'S GOING ON? LET'S BREAK IT ALL DOWN AND WHAT THE HALVING MEANS.
>> ON THE HORIZON IS A PREORDAINED EVENT THAT WILL CHANGE THE BUSINESS OF BITCOIN FOREVER. IT'S CALLED THE HALVING. >> IT WILL BECOME MUCH MORE DIFFICULT FOR MINERS TO PRODUCE NEW COINS. >> AFTER THE HALVING, MARGINS WILL BE CUT BY 50%.
>> IT MIGHT BE GOOD FOR THE HOLDERS BUT NOT NECESSARILY FOR THE MINERS. >> SOME COMPANIES ARE FINDING WAYS TO DIVERSIFY. >> SOME COMPANIES THAT IN THE PAST WERE BITCOIN MINING HAVE SHIFTED TO TRAINING THESE BIGGER AI MODELS. >> THIS IS A MOMENT FOR BITCOIN THAT IS ARGUABLY ONE OF ITS BIGGEST EVER. >> 21 MILLION. THAT IS THE TOTAL NUMBER OF BITCOINS THAT CAN EVER EXIST. OVER 19 MILLION OF THOSE HAVE
ALREADY BEEN AWARDED. THE HALVING IS THE MECHANISM DESIGNED TO CREATE SCARCITY AND CONTROL BITCOINS LIMITED SUPPLY. IT HAPPENS EVERY FOUR YEARS, AND WHEN IT DOES, ALL FUTURE BLOCK REWARDS ARE CUT IN HALF. >> THE HALVING IS A NATURAL PHENOMENON IN BITCOIN THAT DISCIPLINES THE ENTIRE MARKET AND FORCES IT TO BECOME MORE EFFICIENT. CAROLINE: YOU CAN WATCH THE REST OF THIS EPISODE ON BLOOMBERG.COM . LET'S DIG INTO THE HALVING AND ECOSYSTEM WITH RENA SHAH, VICE PRESIDENT OF OPERATIONS AND PRODUCTS AT TRUST MACHINES. YOU BUILD APPLICATIONS FOR
BITCOIN, BROADENING OUT THE ECOSYSTEM. WHEN WE GO TO THE HALVING, HOW MUCH OF A FUNDAMENTAL LIFT WILL THIS BE? RENA: FIRST, THANK YOU SO MUCH FOR BRINGING ME ON TODAY. BITCOIN HALVING IS GOING TO HAVE A HUGE IMPACT ON BITCOIN MARKETS TODAY. WE ARE IN A VERY UNIQUE CYCLE BECAUSE WE ARE 10 DAYS AWAY FROM HALVING, WE ARE AT AN ALL-TIME HIGH ON THE SPOT ETF JUST CAME IN AMERICA. WHAT I AM SEEING IS THE SUPPLY WILL BE SHRUNK AND WE WILL HAVE LESS BITCOIN ENTERING IN AFTER APRIL 20. THE DEMAND IS AT AN ALL-TIME
HIGH FOR INSTITUTIONS COMING INTO BITCOIN. WHAT THIS MEANS IS THAT MORE PEOPLE ARE GOING TO BE LOOKING INTO BITCOIN TO TURN IT FROM A PASSIVE ASSET TO A PRODUCTIVE ASSET. THAT IS WHAT TRUST MACHINES IS ALL ABOUT, BUILDING REAL PRODUCTS THAT DO MORE WITH BITCOIN. CAROLINE: GO TO THE PASSIVE BIT, THOUGH. IN YOUR EXPERIENCE, IS IT TRUE THAT WE SEE MORE INSTITUTIONAL PLAYERS COME IN? OF LATE HAVE WE BEEN POWERED BY MORE RETAIL ACCESSING, SPOT ETF'S IN THE U.S. FOR EXAMPLE?
RENA: IT'S A LITTLE BIT OF BOTH. ON THE INSTITUTIONAL SIDE MORE AND MORE ARE COMING IN BECAUSE THEY HAVE ACCESS TO BITCOIN. ON THE RETAIL SIDE WE ARE SEEING DEVELOPMENT OF BITCOIN THROUGH ORDINALS, AND IT IS CREATING A BRAND-NEW SUPPLY OF ARTISTS AND CREATORS WITH BITCOIN TO CREATE A NEW FORM OF ART. THIS IS A DIFFERENT RETAIL PHENOMENON WE ARE SEEING. CAROLINE: OK, DIFFERENT FROM THE NFT'S THAT WE LOVED TO TALK ABOUT A FEW YEARS AGO. WHEN YOU'RE THINKING OF A BITCOIN NETWORK, USUALLY SOMETHING YOU WERE EITHER GAMING IN SOME WAY, AND ASSET THAT YOU BET UPON, OR INDEED STORED VALUE. LARGELY THIS WAS SOMETHING THAT WASN'T BEING BUILT ON FROM THE SMART CONTRACT PERSPECTIVE. BUT YOU ARE TRYING TO CHANGE
THE NARRATIVE AROUND THAT MAKE IT MORE PRODUCTIVE. WHERE IS THE OBJECTION COMING FROM AN? WHAT ARE THE MOST LUCRATIVE FOR YOU? RENA: IF YOU WOULDN'T THINK OF BITCOIN IS A MARKET OPPORTUNITY, WE HAVE $1.3 TRILLION IN BTC AS AN ASSET CLASS. WE SURPASSED THE STORED VALUE, BUT WE ARE TRYING TO MOVE INTO THE MEDIAN EXCHANGE.
IF YOU ARE TO BUILD APPLICATIONS ON TOP OF BITCOIN LIKE LAYERS, LIKE DFI OR STABLECOINS OR ANYTHING UNDER THE SUN, YOU CAN HAVE A LARGER ECONOMY AS A FLYWHEEL ON BITCOIN. THINK ABOUT THIS -- ALL OF THE VALUE IS WHAT WE SEE ON THE SURFACE, BUT THE UNTAPPED POTENTIAL OF A $200 BILLION MARKET IS BELOW THE SURFACE, AND WE ARE SCRATCHING THE SURFACE. CAROLINE: LIKE WHAT? LIKE WHAT TECHNOLOGY, WHAT USE CASES? RENA: A LOT OF DIFFERENT USE CASES. BITCOIN IS HAVING A MOMENT, AND A LOT OF PEOPLE ARE THINKING ABOUT HOW TO SCALE BITCOIN BY CREATING NEW LAYERS LIKE WHAT ETHEREUM HAS WITH POLYGON. THIS MEANS I COULD HAVE SMART CONTRACTS WITH BITCOIN, MEANING THAT BTC-LADEN CAPITAL COULD BE DEPLOYED DIRECTLY INTO DEFI, RWA'S, TOKENIZED TREASURY BILLS. THE WORLD IS THE LIMIT ON THE
IDEA OF NEW PRODUCTS BEING BUILT ON BITCOIN, BUT USING THEM MOST SECURE AND STABLE BLOCKCHAIN AND ALL OF THE WORLD. CAROLINE: REAL-WORLD ASSETS A KEY FOCUS. I'M INTERESTED IN YOUR BUSINESS IN PARTICULAR. WHAT SORT OF REVENUE GROWTH ARE YOU SEEING? HOW ARE YOU MANAGING TO BRING IN MONEY AT THE COSTS INVOLVED? RENA: THERE IS ALWAYS COST OF DOING ANY SORT OF BUSINESS. THERE IS NO SECRET IN THAT.
OUR PRODUCT LINES ARE VERY DIVERSIFIED. ONE OF OUR PRODUCTS IS THE LEADING BITCOIN, WE HELP AMERICANS AND PEOPLE ALL OVER THE GLOBE GET ACCESS TO BITCOIN AND SECURE IT SAFELY AT HOME. ANOTHER PRODUCT WE ARE BUILDING IS A LITTLE BIT REVOLUTIONARY AND VERY NEW. WE ARE BRINGING THE WEB 2 FUNCTIONALITY OF A TLD, A DOMAIN, AS A PASSPORT INTO WEB 3 AND BITCOIN, MEANING I TAKE MY DIGITAL IDENTITY EVERYWHERE WE GO. CAROLINE:
FEELS LIKE WE NEEDED TO GET YOU WANT TO DIG INTO MORE ABOUT MY NEW DIGITAL IDENTITY. RENA SHAH, PLEASE TO SPEND TIME WITH YOU, VICE PRESIDENT OF OPERATIONS AND PRODUCTS AT TRUST MACHINES, FASCINATING ACROSS THE CRYPTO SPHERE. WATCHING SHARES OF INTEL. LET'S KEEP AN EYE MORE BROADLY OF THE CHIPMAKERS AS WE SEE A BIT OF A SELLOFF THAT IS HAPPENING. WE ARE SEEING A SPIKE HIGHER IN THE WORLD OF INTEL RIGHT NOW, ALMOST MANAGING TO TRADE FLAT ON THE DAY. THIS AS WE SEE AN ANNOUNCEMENT -- THEY ARE UNLEASHING ENTERPRISE AI, OPEN SYSTEMS ENERGY. THIS IS INTEL'S VISION 2024,
BREAKING DOWN THE PROPRIETARY WALLS TO BRING CHOICE TO ENTERPRISE-GENERATIVE AI MARKETS PIT COMING ON THE SAME DAY AS GOOGLE'S ANNOUNCEMENTS AND TEAMING UP WITH BROADCOM. WE ARE SEEING THE RELEASE OF NEW AI HARDWARE TO COMPETE WITH NVIDIA. NVIDIA UNDER PRESSURE TODAY. THIS IS "BLOOMBERG TECHNOLOGY." TUNE INTO "BLOOMBERG CRYPTO" AT NOON. THIS IS BLOOMBERG. ♪
CAROLINE: INVESTING IN PRIVATELY HELD COMPANIES CAN BE DIFFICULT FOR RETAIL INVESTORS, BUT DESTINY TECH 100 IS TRYING TO CHANGE THAT. IT HOLDS SHARES OF PRIVATE TECH STARTUPS -- THINK OPENAI, DISCORD. IT TRADES PUBLICLY ON THE NEW YORK STOCK EXCHANGE UNDER THE TICKER DXYZ. BUT THE INVESTMENT OR PRIVATE, ILLIQUID, AND THE FIRM PLANS TO EXPAND HOLDINGS IN 100 STARTUPS. THE RETURNS FROM THE
INVESTMENTS CAN BE DISTRIBUTED TO SHAREHOLDERS AS A DIVIDEND OR REINVESTED BACK INTO THE FUND. IT HAS BEEN INCREDIBLY VOLATILE. PAUSED SEVERAL TIMES A DAY FOR TRADING, HAVING RISEN 800% THE LAST FEW TRADING DAYS. WE WANT TO GET BACK TO INVESTING IN THE SECONDARY MARKET. A PARTNER AT THE ADVENTURES -- AT FIAT VENTURES, WHERE YOU ADVISE SCALE AND BRING TO BEAR FINTECH COMPANIES IN PARTICULAR. THE SECONDARY MARKET IS SOMETHING YOU HAVE BEEN KEEPING AN EYE ON. WHAT DO YOU THINK OF IT?
>> I'VE BEEN KEEPING A CLOSE EYE ON THIS BECAUSE WE WORK WITH PRIVATE COMPANIES. I THINK WHAT WE HAVE SEEN OVER THE LAST 24 MONTHS IS THIS SHIFT FROM A MOMENTUM MARKET INTO A FUNDAMENTALS MARKET. A LOT OF COMPANIES THAT WERE HIGHLY, HIGHLY VALUED A COUPLE YEARS AGO HAVE REALLY BEEN A DORMANT IN THE PRIVATE MARKET. THERE HAVEN'T BEEN A TON OF
IPO'S, THERE'S BEEN A LOT OF COMPANIES BUILDING, OPTIMIZING, TRYING TO BECOME PROFITABLE DURING THIS DOWNTIME. WHAT THAT HAS CREATED IS A LOT OF REALLY INCREDIBLE OPPORTUNITIES IN THE SECONDARY MARKET, BUT AT THE SAME TIME SOME NOT SO EXCITING SECONDARY MARKET OPPORTUNITIES. AND THAT IS MAINLY BECAUSE DEPENDENT ON WHERE THE PRIVATE MARKET SITS, THERE IS ALWAYS MASSIVE TRENDS AND THINGS THAT DRIVE OVERVALUATION, MASSIVE ROUNDS. WHAT WE ARE SEEING IN THIS MARKET, IN THE SECONDARY MARKET, IS THE REALLY EDUCATED BUYERS ARE MAKING SOME SMART DECISIONS, BUT IT IS STILL VERY EASY TO GET CAUGHT UP IN THE HYPE OF WHAT THESE TRENDS ARE. CAROLINE:
ARE YOU TRYING TO TELL ME THAT OPENAI ISN'T A GOOD DEAL ON THE SECONDARY MARKET? DREW: I CAN'T TELL YOU WHAT THE NUMBER IS FROM THE OPENAI STANDPOINT, BUT THE OPPORTUNITY OPENAI HAS HAS A NUMBER ON THEIR HEAD THAT THEY NEED TO GROW INTO. THE EVALUATIONS PUT OUT THERE ARE NUMBERS THEY EXPECT COMPANIES TO GROW INTO. WHEN YOU THINK ABOUT IT, YOU ARE BETTING ON THE FUTURES OF A COMPANY VERSUS THESE OTHER ONES THAT HAVE DONE REALLY WELL AND HAVE STAYED REALLY QUIET, AND BECAUSE THEY ARE NOT PUBLIC, THE INFORMATION ON THEIR SUCCESS ISN'T AS WIDESPREAD. YOU NEED TO BE INCITED TO UNDERSTAND WHERE THE VALUE SITS IN THE SECONDARIES. CAROLINE: A CAUTIONARY TALE TO INVESTORS
WHO NEED TO BE DOING MORE DIGGING RATHER THAN THE MOST HYPED NAME ACROSS HEADLINES OR ON SOCIAL MEDIA. HOW DO YOU GET THE INSIDE? DREW: I THINK THERE IS A NUMBER OF THESE DIFFERENT COMPANIES RIGHT NOW THAT ARE RINGING TOGETHER THESE CONSORTIUMS A DIFFERENT PRIVATE COMPANIES FOR SOME ARE ON THE PUBLIC MARKETS, OTHERS ARE BUILDING DIFFERENT COMPANIES TO ROLL OUT DIFFERENT PACES. YOU NEED TO ATTACH ITSELF TO THE RIGHT MINDS THAT ARE LEADING THIS CHARGE, WHILE AT THE SAME TIME YOU KIND OF NEED TO KNOW THE RIGHT PEOPLE. I KNOW A NUMBER OF INCREDIBLE COMPANIES THAT ARE NOT QUITE PUBLIC YET, AND THAT IS THE NATURE OF ME BEING IN SAN FRANCISCO AND ANOINT A NUMBER OF DIFFERENT PEOPLE -- KNOWING A NUMBER OF DIFFERENT PEOPLE. YOU NEED TO NOT ONLY KNOW
WITHIN YOUR NETWORK BUT YOU NEED TO STAY CLOSE TO PEOPLE THAT ARE LIVING AND BREATHING THIS EVERY DAY. IF YOU DON'T, YOU WILL GET CAUGHT UP IN THE HYPE CYCLE A PRIVATE COMPANY STORY IN THE PUBLICATION MARKET, THAT IS THE GREATEST STORY EVER BEEN TOLD, BECAUSE YOU DON'T HAVE TO WORK UNDERNEATH THE KIND OF PUBLIC-MARKET SCRUTINY OF HOW YOU REALLY TALK ABOUT YOUR BUSINESS TO THE WORLD. YOU CAN'T GET CAUGHT UP IN THE HYPE BECAUSE IT CAN REALLY HURT IF YOU ARE TRYING TO LEAN INTO THE SECONDARY SPACE. CAROLINE:
OK, LET'S GO FOR REAL VS. HYPE. WHERE HAS THE REAL WORK BEEN DONE FROM A FINTECH PERSPECTIVE? IS IT WHERE SOME OF THE COMPANIES HAVE BEEN DOUBLING DOWN ON GENERATING REVENUE AND PROFITS, GERARD SAVED?-- DARE I SAY? DREW: THERE ARE BIG OPPORTUNITIES FOR THE SECONDARY STANDPOINT IN THE DIRECT-TO- CONSUMER SPACE. WHAT HAPPENED IN THE TRANSITION TO FUNDAMENTALS IS A LOT OF PEOPLE WROTE OFF THE REALLY LARGE CONSUMER PLACE IN FINTECH. DON'T GET ME WRONG, SOME ARE
DOING VERY WELL. SOME ARE DOING BETTER THAN YOU COULD EVER IMAGINE. CAROLINE: IS THERE A DISCERNING TREND AS TO WHICH ONES ARE DOING BETTER? DREW: YEAH, WELL -- IN TERMS OF TRENDS, THIS IS INFORMATION THAT IS NOT WIDELY AVAILABLE. HOWEVER, WHAT'S HAPPENED IS WHAT WAS HAPPENING -- WHAT WAS HAPPENING BEFORE HIS WE WERE IN THE MIDDLE OF A BRAND WAR. IT WAS A NUMBER OF DIFFERENT NEOBANKS AND CONSUMER FINTECHS THAT WERE COMPETING TO HAVE THE BIGGEST BRAND, AND THEY WERE SPINNING A TON OF MONEY ON -- SPENDING A TON OF MONEY ON FACEBOOK AND INSTAGRAM. WHEN THE MONEY SHIFTED TO THE FUNDAMENTALS MARKET, HOW DO WE MAKE IT THERE WERE JUST A COMPANY BASED OF INTERCHANGE? HOW CAN WE GET MORE PRODUCTS IN FRONT OF OUR USERS AND MAKE RECOMMENDATIONS DRIVEN BY AI THAT WILL HELP IMPROVE THEIR FINANCIAL HEALTH AND FINANCIAL LIFE? AND BUILDING INTERNALLY TO BUILD ADDITIONAL PRODUCTS TO DRIVE REVENUE AND BUILD GROWTH CHANNELS WITHIN THE EXISTING NETWORK TO MAKE IT SO WE CAN DRIVE MORE PROFITABILITY AND REVENUE AND DRIVE MORE VALUE TO THE END USER? WHAT'S BEEN HAPPENING FROM A PRIVATE MARKET PERSPECTIVE IS THESE ENGINES THAT WERE ONE NOTE HAVE GREETED MULTIPLE ENGINES WITHIN THE BUSINESS TO CREATE LONG-LASTING VALUE. CAROLINE:
WE MIGHT WELL GET A PUBLIC IN EXIT FROM A KEY FINTECH. BUY NOW, PAY LATER SHIP IS WHERE THEY ARE WRAPPED UP. THEY ARE TALKING AN INTERESTING GENERATIVE AI GAME. IS THAT GOING TO BE AN OPENING FOR OTHER COMPANIES THAT YOU ARE CURRENTLY ADVISING AND TAKING STAKES AND? WILL THERE BE MORE FINTECH COMPANIES GOING PUBLIC? DREW: THERE WILL BE MORE FINTECHS GOING PUBLIC. WE ARE TALKING ABOUT A COHORT THAT IS BEEN AROUND THE LAST 15 YEARS. CAROLINE: OLD. DREW: A LOT OF THESE FOLKS WERE HOPING YOU GO PUBLIC A COUPLE YEARS AGO.
WHAT THEY HAVE DONE IS OPTIMIZE THE ENGINE THEY HAVE BEEN BUILDING. A REALLY INTERESTING 1 -- HOT TAKE, I DON'T THINK THERE GOING TO BE A LOT OF BUY-NOW, P AY-LATER BUSINESSES THAT REACH THE IPO SPACE. CAROLINE: TOO CROWDED? DREW: IT IS CROWDED, BUT AT THE SAME TIME IT IS A CAPITAL-, INTENSIVE BUSINESS FROM THE STANDPOINT OF, ON, YOU NEED TO MARKET IT AS A BRAND, MEANING I'M SELLING TO A BUSINESS AND TRYING TO OWN REAL ESTATE ON THE CHECKOUT PAGE.
WHEN US AS CONSUMERS LAND ON THE CHECKOUT PAGE, WE NEED TO FEEL CONFIDENT IN THAT BRAND FOR US TO GO INTO DEBT WITHOUT BRAND. THAT'S ONE PIECE. THE OTHER ONE IS IT'S A DEBT FACILITY. ONE THING WE HAVE SEEN IS THE DEBT FACILITY MARKET HAS TAKEN A BIG HIT IN TERMS OF THESE DEBT PROVIDERS PROVIDING RISK TO OTHER COMPANIES. I'VE SEEN THIS IN THE VERY
EARLY STAGE MARKET, I'VE SEEN IT IN THE HIGH MARKET. WHAT WE HAVE SEEN IS LIKELY THEY ARE SO FAR ALONG, WHAT THEY REALLY ARE IS AN UNDERWRITING TOOL. THEY ARE ABLE TO OFFER MICRO-LENDING OPTIONS FOR NO INTEREST AT ALL.
ALTHOUGH THEY DID JUST INPUT A LATE-FEE CHARGE. THERE ARE SOME THINGS THEY'RE ARE DOING TO OPTIMIZE. WE TALK ABOUT AI. THEY ARE POTENTIALLY LAYING UP 700 DIFFERENT FOLKS TO BRING CHATGPT IN AS THE CUSTOMER-SERVICE ARM OF THE BUSINESS, WHICH THEY ARE FRONT AND ADJUSTING TEST ON TO BE REALLY SUCCESSFUL. TO GET TO THAT STATE YOU HAVE TO RAISE BILLIONS OF DOLLARS. CAROLINE: WE WILL GET YOU BACK ON WHEN SOME OF THOSE GO PUBLIC.
DREW GLOVER OF FIAT VENTURES, WE THANK YOU FOR YOUR TIME. THE LATEST DETAILS ON ELON MUSK'S CONVERSATION ON X, BUT LET'S CHECK IN ON WHAT WE ANTICIPATED, AIRBUS'S DELIVERIES. AIRBUS HAS DELIVERED 63 AIRCRAFT IN MARCH, AND THEY STAND YEAR-TO-DATE 142 AIRCRAFT.
GROSS ORDERS WERE 137. 163 AIRCRAFT IN MARCH, A LITTLE MORE THAN BOEING WAS DOING IN MARCH. >> LAST YEAR IT WAS ABOUT CHIP SUPPLY. THIS YEAR IT IS STARTING TO TRANSITION TO A VOLTAGE TRANSFORMER SUPPLY. IF YOU LOOK OUT A YEAR OR TWO,
IT IS JUST ELECTRICITY AVAILABILITY. THOSE ARE THE CONSTRAINTS ON THE HARDWARE SIDE. CAROLINE: ELON MUSK TALKING ABOUT CHIP SUPPLY SHORTAGE IN THE AI SPACE.
TESLA AN AI PLAYER, BUT SO, TOO, IS GROK. HE WAS SPEAKING ON X YESTERDAY WITH THE CEO OF INVESTMENT MANAGEMENT, THE LARGEST SINGLE OWNER OF THE WORLD STOCK MARKETS. MUSK BEGAN THE LIVE DISCUSSION BY TALKING UP HOW WELL THE SERVICE WORKED.
PRETTY SOON THE AUDIO CUT OUT ON X, AND IT HAPPENED AGAIN AND AGAIN. GOODNESS, WE HAVE TO DIG INTO IT WITH MAX CHAFKIN. ASIDE FROM TECHNICAL GLITCHES, NEXT, WHAT WAS THE-- MAX, WHAT WITH THE KEY TAKE AWAY FROM THE CONVERSATION? >> ELON MUSK IN THIS CONVERSATION AND OTHER FORUMS HAS BEEN PENDING A VERY SUNNY PICTURE OF AI, PARTICULARLY AROUND TESLA AND GROK. IN ADDITION TO SAYING WE ARE GETTING PAST THE CHIP SHORTAGES, HE SAID THAT THEY ARE USING A HUGE NUMBER OF NVIDIA CHIPS ON THE NEXT VERSION OF GROK. I BELIEVE HE SAID 20,000 H 100 CHIPS. THAT'S AN INSANE AMOUNT OF MONEY. EACH OF THOSE CHIPS IS BETWEEN
$10,000 AND $15,000. THE REAL QUESTION IS HOW DOES GROK, ELON MUSK'S AI VENTURE, HOW DOES HE FINANCE IT? DOES HE RAISE OUTSIDE CAPITAL? DOES IT SOMEHOW GET CLOSER TO TESLA, CLOSER TO TWITTER, NOW CALLED X? I THINK THAT IS ONE BIG QUESTION, BECAUSE THESE LARGE LANGUAGE MODELS ARE NOT INEXPENSIVE TO TRAIN AND THEY ARE NOT INEXPENSIVE TO RUN. CAROLINE: ELON'S INTO DAMAGE CONTROL NOW? MAX: WE HEARD LAST WEEK SOME REALLY DISCOURAGING SALES FIGURES, WHICH MUSK KIND OF PREVIEWED. AND THEN YOU HAD A REPORT FROM REUTERS SAYING THAT THE MODEL 2, THE INEXPENSIVE ELECTRIC VEHICLE, WAS KILLED BY ELON MUSK.
ELON MUSK HAS DISPUTED THAT, BUT HE HAS IT SORT OF BEEN EDGING TOWARDS A CHANGE IN EMPHASIS, INNOCENCE SAYING, NO, WE ARE PRIORITIZING THE ROWBOAT TAXI--ROBOTAXI, THIS ALMOST MYTHICAL PRODUCT HE HAS BEEN TALKING ABOUT FOR ALMOST A DECADE, AND YET ON THE OTHER HAND DOES HOLD A LOT OF PROMISE -- PEOPLE REALLY BULLISH ON TESLA SEE THIS IS THE KEY TO JUSTIFYING THE EVALUATION. YOU CAN UNDERSTAND THE STRATEGY SHIFT.
2024-04-12 20:00
