Tech at Davos and Coinbase in Court | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: I'M IN SAN FRANCISCO AND CAROLINE HYDE IS OFF THIS WEEK, THIS IS BLOOMBERG TECHNOLOGY. FULL COVERS FROM THE WORLD ECONOMIC FORUM AS TECH HEAVYWEIGHTS CONTINUE TO DESCEND ON DAVOS. WE HEAR FROM THE CEOS OF CISCO, QUALCOMM AND MORE. THE SEC AND COINBASE FACE-OFF ON CRYPTO AUTHORITY AFTER SUING THE EXCHANGE LAST JULY. WE WILL BRING THE LATEST FROM THE TRIAL.
ANTHROPIC IS AN LYING -- ANALYZING IMAGES AS IT SEEKS TO CATCH UP WITH BIG COMPETITORS. LET'S FOCUS ON THE TECHNOLOGY SECTOR IN FINANCIAL MARKETS. THE STORY OF THE WEEK CONTINUES TO BE FED SPEAK AND WHAT WE ARE SEEING IS TRADERS PAIR BACK THEIR EXPECTATIONS FOR A FED RATE CUTS IN 2024 AND HOW THAT MANIFESTS ITSELF AS A LOSS OF RED WITH UNDERPERFORMERS IN THE TECHNOLOGY SECTOR. THE NASDAQ 100 HAS A NUMBER OF TECHNOLOGY SHARES BUT LOOK AT THE CHINA INDEX.
CHINESE TECHNOLOGY COMPANIES UNDERPERFORMING. BITCOIN KIND OF CAUGHT UP IN HIS RISK OFF MENTALITY, PULLING BACK TOWARDS 42,000 U.S. DOLLARS PER TOKEN. TESLA CONTINUES TO BE A DRIVER TO THE DOWNSIDE. THAT IS A STOCK THAT IS DOWN BY 2.7% WITH PRICE CUTS ON MODEL
Y IN EUROPE, NETHERLANDS, FRANCE, GERMANY AND OTHER MARKETS PULLING BACK ON THE PRICE WHICH THEY JUST CONFIRMED IN THE LAST HOUR OR SO. APPLE IS UNDER CAP -- UNDER PRESSURE, DOWN ONE PERCENTAGE POINT. THEY HAVE A FAILURE IN COURT TO APPEAL THE ORIGINAL COURT OF APPEALS DECISION BUT DATA OVERNIGHT IN THEIR POSITION AGAINST SAMSUNG AND THE GLOBAL MARKET. ALPHABET CONTINUES TO BE UNDER PRESSURE. THE STORY WITH ALPHABET HAS BEEN ONE OF LAYOFFS.
THE SEC AND COINBASE ARE SQUARING OFF IN COURT TODAY AS THE CRYPTO EXCHANGE ARGUES THE REGULATOR IS THE AUTHORITY AFTER THE REGULATORS SUED THE SEC IN JUNE FOR OPERATING AS AN ILLEGAL SECURITIES EXCHANGE. SONALI BASAK SAT DOWN WITH BRIAN ARMSTRONG TO DISCUSS THE LEGAL BATTLE AHEAD. >> WE WORK WITH REGULATORS ALL OVER THE WORLD AS WELL AS IN THE U.S. I'M A REASONABLE PERSON TO GET
ALONG WITH THAT UNFORTUNATELY, THE SEC UNDER THIS CHAIR HAS TAKEN A REGULATION BY ENFORCEMENT APPROACH INSTEAD OF CREATING A CLEAR RULEBOOK THAT CAN ALLOW THIS INDUSTRY TO BE BUILT IN THE SAFE AND TRUSTED WAY. ED: JOINING US NOW IS SONALI BASAK OUT OF NEW YORK. I THINK THERE IS A LOT OF EYEBALLS ON THIS ON A LOT OF ANTICIPATION ON THE BATTLE BETWEEN COINBASE AND S.E.C..
GIVE ME THE BASICS. SONALI: THE BASICS WAS THAT YOU HAD THE SEC IN THE MIDDLE OF LAST YEAR SUE COINBASE, SAYING THEY HAD OPERATED AS AN UNREGISTERED EXCHANGE AND BROKER. THEY ALSO TARGETED MORE THAN A DOZEN ASSETS LISTED ON THE EXCHANGE, SAYING THEY WERE LISTED AS UNREGISTERED SECURITIES. THE FIGHT BACK FROM COINBASE SAYS THEY SHOULD BE DISMISSING IT AND THEY FILED A MOTION TO DISMISS AND WE ARE GOING THROUGH THE PROCESS NOW BUT THIS COULD BE A LONG PROCESS. COINBASE IS REALLY FIGHTING A LOT OF DEFINITIONS PARTICULARLY THE IDEA OF ALL OF THESE ASSETS BEING UNLISTED SECURITIES AND THE MEANING OF AN INVESTMENT CONTRACT VERSUS INVESTMENT ON ITS OWN. A LOT OF THIS LAWSUIT GOES
AROUND THE IDEA OF THE SEC OVERSTEPPING ITS REACH AS MANDATED BY THE LAW. WE WILL SEE HOW THIS GOES ON BUT THERE IS A CHANCE THIS COULD TAKE WEEKS OR MONTHS. IT COULD GO WELL INTO THE NEXT YEAR OR SO DEPENDING HOW THE JUDGES RULE. THIS COPE -- COULD GO INTO DISCOVERY BUT THE REASON IT'S HIGHLY WASHED BY THE INDUSTRY IS BECAUSE IT FUNDAMENTALLY GETS DOWN TO THE HEART OF THE SEC JURISDICTION OF THE CRYPTO INDUSTRY AS WELL AS WHAT IS AND ISN'T A SECURITY WHEN IT COMES TO ALL THESE TOKENS LISTED ON THESE EXCHANGES. ED: THAT IS ONE YOU WILL BE WATCHING CLOSELY. I'M SURE WE WILL DISCUSS 24 HOURS FROM NOW. LET'S GO TO DAVOS AND WHAT'S
HAPPENING IN SWITZERLAND. THE CISCO CEO SAT DOWN WITH JONATHAN FERRO TO DISCUSS CISCO'S TRANSITION TO BEING A SOFTWARE COMPANY AMID AN AI BOOM. >> THERE IS STILL MORE TO DO. THERE IS STILL MORE SOFTWARE ASSETS WE CAN BUILD ORGANICALLY. AT THE SAME TIME WITH THE AI EXPLOSION, WE ARE SIGNIFICANT RECIPIENT OF THE INFRASTRUCTURE INFRASTRUCTURE UNDER THE GP USE AS WELL AS IN THE ENTERPRISE. OUR HARDWARE BUSINESS WHICH IN SOME CASES HAS SUBSCRIPTIONS ASSOCIATED WITH IT, WE THINK BOTH OF THEM CAN ROW OVER THE NEXT FEW YEARS. JONATHAN: DO YOU THINK INVESTORS ARE
FULLY INTERNALIZED? >> I THINK THEY HAVE INTERNALIZED THE MESSAGE BUT I THINK THIS TRANSITION TO SOFTWARE SHOULD GIVE US MORE PREDICTABILITY AND LESS VOLATILITY. WE'VE SEEN THAT COME INTO PLAY BUT WE STILL PROBABLY HAVE TOO MUCH. WE BEEN REWARDED FOR WHAT WE'VE ACCOMPLISHED. AS WE CONTINUE TO DO THAT AND
DELIVER, YOU WILL SEE THAT IN THE FUTURE. JONATHAN: EVERYONE WANTS TO BE A PART OF THE AI STORY. WHAT SURPRISED ME LAST YEAR IS HOW QUICKLY IT BECAME REAL. IT WASN'T JUST A STORY COMPANIES WERE SELLING, THEY WERE MONETIZING IT AND THE GROWTH WAS EXPONENTIAL IN SOME CASES. CAN YOU WALK US THROUGH WHERE YOU ARE SEEING REAL TANGIBLE GROWTH NOW OFF THE BACK OF WHAT'S DEVELOPING? >> I TOLD MY TEAM YOU CANNOT ESPOUSE ABOUT AI UNLESS YOU FOLLOW UP WITH SOMETHING TANGIBLE. THERE IS SO MUCH NOISE IN THE SYSTEM. WE ARE BUILDING THE
INFRASTRUCTURE THAT WILL SUPPORT UNDERPINNING THE AI NETWORKS. THAT'S HAPPENING TODAY AND WE ARE RUNNING PILOTS NOW AND WE ARE WORKING ON A LOT OF DESIGN AROUND FUTURE INTEGRATED STACKS WE WILL TAKE TO THE ENTERPRISE TO HELP THEM DO IT. WE ARE LOOKING AT HOW WE CAN DELIVER BETTER CUSTOMER EXPERIENCE AND LEVERAGE JENI I WHICH EVERY COMPANY SHOULD BE DOING. WE ARE BUILDING SECURITY ASSISTANCE AS AN EXAMPLE TO HELP CUSTOMERS NAVIGATE THE SECURITY TOOLS YOU HAVE AND MAKE SENSE OF A LOT OF IT MORE RAPIDLY. WE ARE DOING THE SAME IN
COLLABORATION AND'S TRANSCRIBING MEETINGS SO THERE IS A LOT OF STUFF GOING ON NOW. I THINK SOME OF THE GREATEST APPLICATIONS, WE HAVE NO IDEA WHAT THEY ARE YET. ED: THAT WAS THE CISCO CEO CHUCK ROBBINS BUT ANOTHER STORY WE ARE TRACKING IS QUANTUM COMPUTING CREATING A CYBERSECURITY ARMAGEDDON. THE ANSWER IS YES ACCORDING TO ONE EXECUTIVE. QUANTUM COMPUTERS WHICH
ACCELERATE PROCESSING POWER BY PERFORMING CALCULATIONS IN PARALLEL RATHER THAN SEQUENTIALLY WILL MAKE EXISTING ENCRYPTION SYSTEMS OBSOLETE. SPEAKING IN DAVOS, THE GENERAL IBM SEES THE QUANTUM YOUR COMING IN BY 2030. IT'S AN EXCITING NASCENT TECHNOLOGY. COMING UP, WE WILL TALK ABOUT THE STATE OF THE GLOBAL SUPPLY CHAIN AMID THE CRISIS AND WHAT'S HAPPENING IN THE RED SEA.
WE WILL HAVE THE CHIEF INDUSTRY OFFICER AT EVER STREAM ANALYTICS. WE ARE WATCHING SHARES OF FUJITSU. $1 BILLION OF VALUE WIPED OUT FROM FUJITSU OVERNIGHT AFTER THE COMPANY'S EUROPEAN CHIEF SAID THAT FIRM HAD A MORAL RESPONSIBILITY TO PROVIDE COMPENSATION FOR A SCANDAL THAT HAPPENED IN THE U.K. THIS WAS GLITCHES IN THE JAPANESE TECH COMPANIES SYSTEM BETWEEN 1999 AND 2015 WHICH LED TO THE WRONGFUL CONVICTION FOR THEFT AND FALSE ACCOUNTING OF SOME POST OFFICE STAFF. IT'S AN INTERESTING AND COMPLEX
STORY SO CHECK IT OUT ON BLOOMBERG.COM AND THE BLOOMBERG TERMINAL BUT THE MARKET IMPACT OF THOSE COMMENTS IS COMPLETELY CLEAR. THIS IS BLOOMBERG TECHNOLOGY. >> YOU CAN'T PREDICT HOW LONG THIS WILL LAST BUT I THINK YOU WILL SEE THE MARKET STABILIZING AND A GUEST TO A RELATIVELY NORMAL PRICING ENVIRONMENT VERSUS LONG-TERM HISTORICAL AVERAGES. IT WILL BE HIGHER THAN IT'S GOING TO BE OF THIS HADN'T HAPPENED BUT I THINK THE WORLD WILL RECOVER. ED: YOU CANNOT PREDICT HOW LONG THE IMPACT WILL LAST BUT WE ARE DOING EVERYTHING WE CAN ON BLOOMBERG TO TRACK THAT IMPACT IN REAL-TIME. THAT WAS RYAN PETERSON OF FLEX
PORT THE OTHER DAY FOR HIS OUTLOOK FOR THE SUPPLY CHAIN IMPACT AMID THE RED SEA CRISIS. WE ARE FROM THE CEO OFMAERSK WHO SAID THIS WILL TRANSIT IN A FEW MONTHS. WE HAVE THE CHIEF INDUSTRY OFFICER RIGHT NOW AND EVER STREAM ANALYTICS.
YOU ALSO HAVE THE LATEST DATA. AROUND $200 BILLION WORTH OF GOODS OR VOLUME OF GOODS HAVE BEEN DIVERTED TO NEW ROUTES BECAUSE OF THE RED SEA. EXPLAIN THAT DATA AND THAT MATH TO US. >> THANK YOU FOR HAVING ME TODAY. WHEN WE LOOK AT THE CURRENT SHIPPING DECISIONS, A LOT OF COMPANIES HAVE DECIDED TO TAKE THE LONGER ROUTE.
UNTIL THAT DECISION WAS MADE, SOME OF IT WAS HALTED BEFORE GOING A LONGER ROUTE. THE VOLUME OF TRADE THAT HAS BEEN DELAYED BUT HAS NOT STOPPED AT AROUND $200 BILLION. COMPARE THAT TO THE TRAFFIC JAM OF THE PANAMA CANAL THAT WAS AROUND $270 BILLION AS OF THE LATEST DATA AND COMPARED TO THE SOUTH CHINA IT SEE TRADE IN THE EARLY VOLUME OF $5 TRILLION TO GIVE YOU SOME PERSPECTIVE. THERE IS SOMEWHAT OF A TRAFFIC JAM BUT NOT NECESSARILY A CHOKEPOINT AT THIS TIME FOR ECONOMIES AROUND THE GLOBE. ED:
I SPOKE TO A SOURCE AT TESLA AT THE END OF LAST WEEK IN THE WAY THE SOURCE EXPLAINED IT TO ME WAS THAT TESLA HAD TO DIVERGE SHIPS THAT WERE CARRYING COMPONENTS DESTINED FOR ITS EARLY IMPLANT. IT'S NOT THAT THOSE COMPONENTS WON'T GET THERE AT ALL, THEY WILL JUST TAKE LONGER TO GET THERE. YOU WOULD'VE SEEN THE REPORTS THAT AS A RESULT, THEY WILL HAVE SOME DOWNTIME IN THAT PLANT TO MAKE UP FOR THE SHORTFALL IN PRODUCT. THERE IS ALSO BECAUSE CONSIDERATION AND HOW MUCH A TECHNOLOGY COMPANY HAS TO PAY TO MOVE THOSE GOODS. WHAT ARE YOU SEEING ON THAT SIDE? >> WE ARE LOOKING AT A COST INCREASE FROM THE PERSPECTIVE OF THE LOGISTICS BURDEN. IN COMPARISON AND MAY BE COUNTERINTUITIVE, THE CURRENT ROUTE THROUGH THE SUEZ CANAL WITH THE INCREASED RATES AND INSURANCE AND THE COST OF THE CANAL IS MORE EXPENSIVE THAN THE LONGER ROUTE.
AT THE SAME TIME, WE ARE LOOKING AT TWO WEEKS LONGER OF TRANSIT AND GIVEN SUPPLY CHAIN'S OPERATING HIGHLY EFFICIENTLY ESPECIALLY IN THE AREA WHERE AFTER NORMALIZATION, COST MANAGEMENT HAS TAKEN THE PRIORITY IN THE OVERALL MANAGEMENT. WE ARE LOOKING AT JUST IN TIME ENVIRONMENTS BEING ESTABLISHED. TWO WEEKS IS THE UNDERLYING FACTOR FOR SOME OF THOSE PRODUCTION CLOSURES AT SUZUKI, VOLVO IT'S ONLY A COUPLE OF DAYS SO THEY HAVE MANAGED IT QUITE EFFICIENTLY. VOLKSWAGEN IS NOT ANNOUNCED ANY OF IT AND TESLA HAS ANNOUNCED AROUND TWO WEEKS OF A PRODUCTION STOP AREA WE CAN ALSO LOOK AT HOW THOSE INVENTORY MANAGEMENT SYSTEMS ARE ESTABLISHED TO PRE-PANDEMIC KPI'S. ED: THANK YOU FOR THE REAL-TIME DATA IMPACT.
LET'S GO BACK TO DAVOS. THE QUALCOMM CEO SPOKE WITH JONATHAN DARROW ABOUT -- JONATHAN FERRO IN ANOTHER KEY MARKET, CHINA. >> BUSINESS EQUITY WITH CHINA ACTUALLY INCREASED AS WE DIVERSIFIED. OUR COMPANY NOT ONLY ENTERED PHONES BUT PCS AND CARS.
WE EXPANDED OUR RELATIONSHIPS WITH CHINA. HERE'S MY SIMPLE ANSWER TO THE QUESTION -- ANY COMPANY THAT HAS A LEADING TECHNOLOGY PRODUCT AND IS A PRODUCT THAT BECOMES VERY IMPORTANT FOR THE DIGITAL TRANSFORMATION OF MANY INDUSTRIES LIKE AUTOMOTIVE AND OTHERS, YOU WILL HAVE A FUNCTION OF GDP. I THINK WE HAVE BEEN SO FOR IN A STABLE PLACE. WE HAVE TO MONITOR THE SITUATION LIKE EVERY OTHER COMPANY. I WILL CONTINUE TO BELIEVE THAT STRONG COMMERCIAL RELATIONSHIPS BETWEEN AMERICAN ENTERPRISES IN OUR CHINESE CANCER -- COUNTERPARTS WILL BE A THING THAT COULD BRING STABILITY TO THE RELATIONSHIP. ANNMARIE: DOES THE MONITORING GET MORE
CHALLENGING IF PRESIDENT WINS BACK THE WHITE HOUSE YEAR? >> WE ARE JUST FOCUSED ON OUR TECHNOLOGY AND WE WANT MARKETS WHERE WE CAN SELLER TECHNOLOGY. AT THE END OF THE DAY, ONE IMPORTANT THING TO UNDERSTAND IS CERTAIN TECHNOLOGIES ARE GLOBALLY INTERCONNECTED. YOU WILL HAVE CUSTOMERS IN DIFFERENT LOCATIONS IN EUROPE AND JAPAN THAT WILL HAVE BUSINESS IN CHINA AS WELL AND YOU WANT TO BE A GLOBAL SUPPLIER TO THEM. JONATHAN: QUALCOMM IS VERY HAPPY WITH
THAT. I WANT TO TALK ABOUT THE DIRECTION OF TRAVEL AND THE GLOBAL ECONOMY. FOR A CHIPMAKER, DO YOU THINK IT COMES TO THE POINT WHERE THEY HAVE TO CHOOSE A SIDE OR PICK A COUNTRY WHERE EITHER WE WILL SUPPLY CHINA FOR EUROPE AND AMERICA? HOW CLOSE ARE WE TO THAT MOMENT? >> I DON'T THINK WE ARE AT THIS POINT. IT'S ONE OF THOSE THINGS THAT IF IT CHANGES, I THINK COMPANIES HAVE TO ADAPT. WE HAVE SEEN THAT SOME INDUSTRIES HAVE TO FACE THAT. IN SOME INDUSTRIES, THAT'S THE REALITY FOR DIFFERENT REASONS WHETHER IT'S A CLOUD COMPANY OR SOCIAL MEDIA COMPANY.
WE HAVE NOT BEEN IN THIS SPACE SO IS SOMETHING WE WILL HAVE TO WORRY ABOUT ON THE FUTURE. ANNMARIE: WHAT INDUSTRY WILL BE THE BIGGEST AREA OF GROWTH FOR YOU? >> WE ARE VERY PLEASED AS TO WHAT'S HAPPENING WITH AUTOMOTIVE. WE ARE NOW WORKING WITH VIRTUALLY EVERY CAR COMPANY IN THE COMPUTING SPACE. SOMETIMES IT GOES ALONGSIDE ELECTRIFICATION WHICH IS EXCITING. IT WILL BILL -- BUILD REVENUE
FOR QUALCOMM OVER TIME. WE ARE ENTERING THE PC SPACE WHICH IS EXCITING. WE JUST BUILT THE FASTEST PROCESSOR FOR ANY LAPTOP. WE THINK THAT COULD BE A GREAT OPPORTUNITY FOR US. ED: THE QUALCOMM CEO. ANOTHER KEY CONVERSATION FROM DAVOS. THE LOOMING PRESIDENTIAL I SENT IN THE U.S.
THIS YEAR WILL FACE RISKS WITH THE RISE OF ARTIFICIAL INTELLIGENCE. LEADERS IN AI WEIGHED IN THIS WEEK ON THE MATTER AT DAVOS. THEY TOOK THE THREAT OF ARTIFICIAL INTELLIGENCE ON ELECTIONS SERIOUSLY. THERE WAS A SPLIT ON WHETHER THEY THOUGHT A MAJOR DISRUPTION WAS LIKELY. COMING UP, WE STICK WITH AI AS ANTHROPIC IS COMING UP WITH NEW TOOLS. MAYBE SOMETHING MORE VISUAL, WE WILL DISCUSS THAT NEXT.
THIS IS BLOOMBERG TECHNOLOGY. ED: A FEDERAL APPEALS COURT DENIED THE LATEST CHALLENGE FROM TO A SPECIAL COUNSEL DEMAND FROM DONALD TRUMP'S TWITTER ACCOUNT. THE NONDISCLOSURE ORDER WAS RECEIVED AS PART OF A SEARCH WARRANT FOR CRIMINAL INVESTIGATION INTO TRUMP'S ATTEMPT TO OVERTURN THE 2020 ELECTION. OPENAI IS NOW WORKING WITH THE PENTAGON ON A NUMBER OF PROJECTS INCLUDING CYBERSECURITY CAPABILITIES AND VETERAN PROJECTS DEPARTING FROM THE STARTUPS EARLIER BEEN ON PROVIDING ITS AI TO MILITARY.
NEW INITIATIVE WILL EVALUATE AND CERTIFY AI PRODUCTS IS COPYRIGHT COMPLIANT. THE STAMP OF APPROVAL IS CONDUCTED BY THE NONPROFIT TRADE FORMED BY THE FORMER VICE PRESIDENT OF AUDIO STABILITY. THE WORLD OF A ICED ART UPS, ANTHROPIC IS WORKING ON A FEATURE THAT WOULD GIVE ITS CHATBOT THE ABILITY TO ANALYZE IMAGES ACCORDING TO UNPLUG THE WORDING CONTAINED IN THE CODE OF THE COMPANY'S WEBSITE. THIS TOOL COULD WIDEN THE PRODUCTS APPEAL TO USERS AND HELP THE COMPANY CATCH UP WITH COMPETITORS.
LET'S BREAK IT DOWN WITH THE BEST PERSON POSSIBLE, RACHEL METZ, AI REPORTER. I HEAR ABOUT ANTHROPIC ALL THE TIME AS NUMBER TWO BEHIND OPENAI. THIS TAKES IT FROM TEXT TO THE IMAGE DOMAIN, WHAT DID YOU LEARN? >> I LOOKED AT SOME OF THE CODE YOU WOULDN'T SEE IF YOU WERE ON THE WEBSITE ITSELF CHATTING WITH CLAUDE BUT IT'S EASY AND ANYBODY CAN DO THIS BY USING SOME TOOLS THAT CHROME AND ENABLES. I LOOKED AT THE CODE THAT IS USED FOR THE WEBSITE AND IT INDICATES THEY MAY BE WORKING ON AN IMAGE ANALYSIS FEATURE. IT SAYS THERE ARE THINGS LIKE CHAT WITH IMAGES, MORE BUILDINGS BY AN ORC ATTACKED -- FIGHT AN ARCHITECT. ED: THAT PUTS ANTHROPIC INTO A BATTLEGROUND WITH WHO? >> OPENAI AND WITH GOOGLE.
THERE ARE AN INCREASING NUMBER OF WATER ARE CALLED MULTIMODAL MODELS. THESE LARGE LANGUAGE MODELS CAN TAKE IN A TEXT PROMPT FROM A PERSON BUT ALSO AN IMAGE AND MAYBE AN IMAGE PLUS WORDS AND GIVE YOU A RESULT DESCRIBING THE IMAGE. YOU COULD GIVE IT AN IMAGE OF A DOG AND SAY WHAT KIND OF DOG IS THIS OR WHAT KIND OF PLANTS IS THIS OR WHAT KIND OF ANIMAL? ED: RACHEL METZ WHO ANALYZE THE COMPANY WEBSITE AND THEIR UNDERLYING CODE IN THAT REPORTING. THANK YOU VERY MUCH. APPLE'S IPHONE HAS DETHRONED SAMSUNG DEVICES TO BECOME THE BEST-SELLING SMARTPHONE SERIES OVER THE COURSE OF 2023.
SAMSUNG IS GEARING UP FOR ONE OF ITS MOST ANTICIPATED PHONE LAUNCH IS IN YEARS LATER ON. LET'S BRING IN MARK GURMAN FOR MORE ON THE SMARTPHONE BATTLE. THIS WAS SOMETHING THAT TIM COOK REALLY LEANED INTO IN THE LAST EARNING PARTICULAR IN CHINA. THEY FELT THEY WERE THE BEST-SELLING HANDSET SO HOW SIGNIFICANT IS THIS THAT APPLE DETHRONED SAMSUNG OVER THE COURSE OF 2023? >> CERTAINLY A VICTORY GIVEN EVERYTHING GOING ON, IT'S A BIG DEAL. I THINK THEY GOT A LITTLE BIT OF A BOOST ON IPHONE SALES ACROSS 2023 BECAUSE OF THE PRODUCTION HICCUPS AT THE END OF THE CALENDAR YEAR OF 2022. IF YOU REMEMBER, RIGHT AFTER THE 14 WROTE LAUNCH, APPLE HAD TO PAUSE PRODUCTION FOR SEVERAL WEEKS DUE TO CHINA'S EXISTING COVID PROTOCOLS WHICH HAD TO SHUT DOWN FOXCONN AND THE PERIPHERAL FACTORS. USE OF THE SALES AND THOSE UNIT
SHIPMENTS HOLD OFF UNTIL THE CALENDAR TURNED WHEN THE ISSUE WAS RESOLVED. THEN YOU COMBINE THAT WITH THE SUCCESS OF THE IPHONE 15 PRO OUT OF THE GATE. THIS IS GOOD NEWS FOR APPLE. I THINK SAMSUNG HAS TRIED TO DIVERSIFY THEIR SMART PHONE LINE. THEY HAVE THE FLAGSHIP PHONES WHICH ARE THE PHONES THAT ARE BEING INTRODUCED TODAY, THE GALAXY S SERIES AND THE GALAXY FULD SERIES IN THE GALAXY FLIP SERIES. THEY SEGMENTED THEIR SMART PHONE MARKET WITH EVEN HIGHER PRICE PHONES AND WELL OVER TIME, YOU WILL ULTIMATELY SEE A SHIFT TO FOLDABLE'S. I THINK IT COULD BE THE
MAJORITY SHARE OF THE SMARTPHONE MARKET. FOR NOW, THAT SEGMENTATION HAS CREATED A SHIPMENT ISSUE FOR SAMSUNG BECAUSE OF THE HIGH PRICES. FOR NOW, APPLE IS ON TOP OF THE FIRST TIME SINCE THE IPHONE 4 IN 2010. IT'S INTERESTING THE NEWS COMES
AS SAMSUNG IS ABOUT TO MAKE A SIGNIFICANT ANNOUNCEMENT WITH THEIR NEW 24 SERIES LATER TODAY. ED: THANK YOU. A VICTORY FOR APPLE WITH THE SHARE STILL UNDER PRESSURE IN RECENT SESSIONS. WE WILL HAVE AN UPDATE ON THE TECH LANDSCAPE WITH THE LATTICED CEO, SARAH FRANKLIN.
FRANCE WARNED IT WOULD ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. CHECKING ON THE MARKETS BUT THE THEMES ARE FAMILIAR. THE MARKET HAS BEEN CUTTING ITS BETS FOR FED RATE CUTS IN 2024, PULLING BACK ALL WEEK LONG. THERE WILL BE A LOT OF FED
SPEAK IN THE LANGUAGE IS CAREFUL ABOUT WHEN AND TO WHAT EXTENT WE WILL SEE RATE CUTS. WHY DO WE CARE? WE CARE BECAUSE THAT DISCOUNTS FUTURE TECH FLOAT -- FUTURE CASH FLOWS PROTECT. THE NASDAQ 100 IS SENSITIVE TO THE RATE ENVIRONMENT.
24 HOURS AGO, THE MEGA CAPS WERE GIVING US SOME GAINS. 24 HOURS LATER, THEY CONTINUE TO SEE DOWNWARD PRESSURE. THEY ARE ALL DOWN AROUND ONE PERCENTAGE POINT OR MORE. WHAT JOINS THEM? OF LATE, THERE ARE A FEW ANALYST NOTES THAT PUT INTO DOUBT SOME OF THE GROWTH TRAJECTORY OF THESE CUSTOMER -- OF THESE COMPANIES.
WHAT THEY HAVE IN COMMON IS THAT THERE ARE LAYOFFS IN THE WORKS OR HAVE TAKEN PLACE. YOU MAY HAVE A SENSE OF DÉJÀ VU BECAUSE WE START 2020 FOR TALKING ABOUT BIG TECH LAYOFFS. IF I JUMPED IN MY TIME MACHINE, I WOULD START 2023 TALKING ABOUT BIG TECH LAYOFFS AS WELL. MORE EMPLOYEES ARE FEEL FULL -- ARE FEARFUL OF LOSING THEIR JOBS AND LESS CONFIDENT TO QUIT EVEN IF EXPECTATIONS ARE NOT MET. . IT ALSO SAYS AI SKILL DEVELOPMENT IS QUICKLY BECOMING A PRIORITY FOR COMPANIES AND STAFF. SARAH FRANKLIN IS THE CEO OF LATTICE WHICH PUT OUT ITS OWN REPORT TAKING THE PULSE OF HR TEAMS ACROSS THE COUNTRY.
ALL OF THAT IS TO SAY IN TECH IN PARTICULAR, THERE IS UNCERTAINTY IN THE JOBS MARKET? >> IT IS CRAZY WITH THE JOB MARKET HAS GONE THROUGH IN THE LAST FEW YEARS. YOU CITE INCREDIBLE SURGEON HIRING AND THEN MASSIVE CORRECTION. IT MAKES SENSE PEOPLE ARE FEEL FROM -- OR FEEL -- ARE FEARFUL.
I'M HAPPY TO SAY THAT WE ARE SEEING MORE STABILIZATION, MORE RETURN TO NORMALCY, MORE BACK TO BASICS, MORE BACK TO FUNDAMENTALS. IF YOU LOOK AT THE NUMBERS, LAST YEAR, WE WERE LOOKING AT 167,000 LAYOFFS IN BIG TECH. THAT'S 15 TIMES NORMAL AND WE ARE BACK TO THIS PRE-COVID RANGE. HOPEFULLY, PEOPLE CAN BREATHE A SENSE OF FRESH AIR. ED: WHAT MANY TECHNOLOGY EMPLOYEES
FAILED TO UNDERSTAND AND THEY VOICE THIS ON SOCIAL MEDIA IS THAT THAT WAS THE START OF 2023. BIG TECH WAS PULLING BACK BECAUSE OF OVER EXUBERANCE IN HIRING IN 2023. THE SAME LOGIC IS APPLYING NOW SO THEY ARE ASKING, WHY DID WE GET THROUGH THIS LAST YEAR? DID TECH RIGHT SIZE ENOUGH AND THE ANSWER SEEMS TO BE NO. >> WHAT YOU'RE SEEING NOW IS BACK TO BASICS AND PERFORMANCE MANAGEMENT. COMPANIES CARE ABOUT MANAGING THEIR PEOPLE AND THEIR PERFORMANCE AND THEY ARE MAKING SMART BUSINESS DECISIONS. THIS IS A NORMAL PART OF BUSINESS. WE WERE BACK TO LEVELS PRE-COVID THAT WERE BELOW THAT
NOW. IT'S STILL BUSINESS WHICH IS HAVING CHANGE AND PEOPLE ARE MANAGING THEIR PERFORMANCE BUT IT'S NOT THE MASSIVE LAYOFFS YOU SAW IN 2023. ED: I WANT TO KNOW THE DATE EIGHT YOU HAVE, WHAT ARE THE THREE KEY TAKEAWAYS YOU LEARN FROM THAT EXERCISE? >> WE LEARNED THAT HALF OF THE COMPANIES ARE SAYING THEY THINK THEIR TEAMS WILL BE BACK TO PRE-COVID LEVELS. WE ARE SEEING THIS SHAKE OUT IN THE DATA.
ALSO FROM THE DATA, 167,000 LAST YEAR. TO 16,000 THE YEAR BEFORE. THIS IS VERY DIFFERENT IN TERMS OF WHAT YOU ARE SEEING YEAR-OVER-YEAR AND WE ARE BACK TO ABOUT 5000 THIS YEAR. WHAT WE ARE SEEING IS THE
NECESSARY MANAGEMENT OF PEOPLE AND THEIR PERFORMANCE. IT HELPS BUSINESSES BACK TO THE FUNDAMENTALS OF LOOKING AT EVALUATIONS AND PROFITABILITY. ED: WHAT WE REPORTED ABOUT APPLE WAS CURIOUS. THEY WERE SHUTTING DOWN IN SAN DIEGO THAT WAS FOCUSED ON AI AND SIRI AND IF YOU LOOK AT THE NEWS FLOW, AI SEEMS TO BE A REAL DRIVER OF HIRING RIGHT NOW BECAUSE THEY ARE LOOKING FOR SKILL SPECIFIC PEOPLE IN TERMS OF COMPUTER ENGINEERING. SOME OF THOSE JOBS PAY WELL. >> AI IS DEFTLY WHAT EVERYBODY IS DOING INTACT.
IT’'S ALL ABOUT INNOVATION AND HELPING EVERYONE MANAGE THEIR PEOPLE BETTER MANAGE THEIR BUSINESSES BETTER. PEOPLE THAT HAVE AI SKILLS ARE IN HUGE DEMAND. THAT IS WHY YOU SEE SO MUCH RE- SKILLING FOR AI WITH PEOPLE EMPLOYED IN MARKETING AND SALES AND HR, PEOPLE NEED TO UNDERSTAND HOW TO USE AI TO MAKE THEM BETTER AT THEIR JOB. ED: ON THE OTHERS OF THE DEBATE IS AI WILL REPLACE JOBS. DO YOU SEE EVIDENCE OF THAT SO FAR? >> NO EVIDENCE OF AI REPLACING JOBS.
WHAT YOU ARE SEEING IS AI IS HELPING US BE BETTER AND HELPING PEOPLE RISE TO THE LEVEL OF PERFORMANCE YOU WANT AS A LEADER WITHIN YOUR COMPANY. AI IS HERE TO HELP US AND IT'S OUR JOB AS LEADERS TO DEPLOY THESE TECHNOLOGIES IN A SAFE AND RESPONSIBLE WAY. ED: WE ARE TALKING ABOUT JOB SO CAN WE TALK ABOUT YOUR JOB? YOU IN THE ROLE, HOW HAS THAT BEEN AND GIVE IS THE BACKGROUND OF THE CHANGE, YOUR ADDITION TO THAT ROLE? >> I AM EXCITED TO BE CEO NOW OF LATTICE.
INCREDIBLE COMPANIES SOLVING THE PROBLEM EVERY LEADER IS FACING TODAY IS HOW TO MANAGE PEOPLE AND PERFORMANCE. I SAW THIS IN THE MARKET AND I WAS EXCITED TO TAKE THIS OPPORTUNITY. JACK IS INCREDIBLE VISIONARY. HE CREATED THIS COMPANY AND SCALED IT TO THE LEVEL OF THAT NOW AND NOT -- AND I COULDN'T BE MORE HUMBLE TO WORK WITH THE TEAM AND TAKE IT TO THE NEXT LEVEL. ED: THANKS FOR BEING HERE IN THE SAN FRANCISCO STUDIO. ANOTHER STORY WE ARE FOLLOWING, GOOGLE DEEP MINDSET IS TAKEN AT CRUCIAL STEP FOR MAKING ARTIFICIAL INTELLIGENCE AS CAPABLE AS HUMANS. IT INVOLVES SOLVING HIGH SCHOOL MATH PROBLEMS. THEY INTRODUCED A SYSTEM CALLED ALPHA GEOMETRY
THAT PROVES THEOREMS BETTER THAN PRIOR COMPUTER PROGRAMS. RESEARCHERS DESCRIBE THIS IS A MAJOR BREAKTHROUGH OF AN AI APPLYING REASONING AND PLANNING TASKS WHICH EVEN TODAY'S ADVANCED MODELS THUS FAR COULDN'T DO. COMING UP, AND ALL EUROPEAN COMMERCIAL CREW IS DUE TO LAUNCH THE SPACE STATION SOMETIME THIS WEEK. WE WILL HAVE DETAILS COMING UP NEXT AND WE ARE TAKING A LOOK AT SHARES OF UBER. THEY SHUT DOWN THE ALCOHOL DELIVERY SERVICE THEY ACQUIRED FOR $1 BILLION IN 2021 AT THE END OF MARCH. UBER SAID HIS FOCUS ON ITS UBER EATS STRATEGY IN HELPING CONSUMERS GET ALMOST ANYTHING FROM FOOD TO GROCERIES AND THAT INCLUDES ALCOHOL. THIS IS BLOOMBERG TECHNOLOGY.
ED: SPACE X IS SET TO LAUNCH THE FIRST ALL EUROPEAN COMMERCIAL CREW TO THE INTERNATIONAL SPACE STATION. LATER THIS WEEK, AXIOM SPACE AND NASSAR SET TO LAUNCH A CREW OF FOUR ON SPACE X'S FALCON NINE ROCKET. IT WILL BE THERE THROUGH -- THEIR THIRD CREW MISSION. THE LAUNCH HAD BEEN DO TO BE WEDNESDAY AFTERNOON BUT IT IS NOW MOVING TO THE BACKUP WINDOW OF THURSDAY AFTERNOON WHICH WE WILL TRACK.
THE DIRECTOR OF THE AEROSPACE SECURITY PROJECT IS HERE TO DISCUSS WITH THIS -- WITH US. YOU HAVE SO MUCH EXPERIENCE ACROSS PRIVATE AND PUBLIC SECTOR SPACE BUT LET'S START WITH ACXIOM. I HAVE ATTENDED THE EARLIER MISSIONS.
WHAT DOES THE CADENCE OF THE ACXIOM SPACEX PARTNERSHIP REPRESENT FOR YOU? >> IT'S GREAT TO BE HERE. THIS IS EXCITING FOR ME. ACXIOM SPACE IS A COMMERCIAL COMPANY. THIS IS THEIR THIRD MISSION TO THE INTERNATIONAL SPACE STATION. IS THE FIRST ALL EUROPEAN CREW. THERE'S A COUPLE OF BIG FIRSTS
HERE. FIRST ASTRONAUT FROM TURKEY, FIRST ASTRONAUT WITH THE EUROPEAN SPACE AGENCY, ACXIOM SPACES LOOKING AT GETTING TO TWO OF THESE LAUNCHES PER YEAR. THIS IS NOT THE GOVERNMENT BUT A COMMERCIAL SPACE COMPANY. ED: IF YOU LOOK AT THE CREW, THEY ARE ESSENTIALLY PERSONNEL FROM DIFFERENT EUROPEAN SPACE AGENCY'S. ACXIOM ALSO HAS THIS KIND OF TOURISM ELEMENT WHERE PRIVATE CITIZEN OR CIVILIAN CAN TAKE A FUTURE MISSION.
WHERE DO YOU SEE THE MOST POTENTIAL? THE PRIVATE SECTOR BECOMES A SERVICE FOR INTERNATIONAL SPACE AGENCIES OR THE TOURISM ELEMENT? >> I WOULD ENVISION THEIR BUSINESS MODEL IS A BIT OF BOTH. WAS INTERESTING ABOUT WHAT'S HAPPENING IN THE COMMERCIAL SPACE ARENA IS THAT IT'S ALLOWING AN INCREASED ACCESS TO SPACE. BOTH BY NATIONS OR FOREIGN GOVERNMENTS THAT MAYBE COULDN'T AFFORD OR DIDN'T HAVE THE TECHNICAL CAPABILITY TO BUILD ROCKETS AND SPACE STATIONS THEMSELVES BUT ALSO FOR PRIVATE CITIZENS. IT WOULD HAVE BEEN UNFATHOMABLE
EVEN 10 YEARS AGO THIS MANY PRIVATE CITIZENS TO LAUNCH INTO SPACE AND SPEND A WEEK OR SO ON A SPACE STATION. IT'S PRETTY AMAZING. ED: ARE YOU ABLE TO REFLECT AT WHAT POINT YOU SUDDENLY REALIZE THAT SPACE X HAS CHANGED THE GAME FOR ACCESS TO LOWER ORBIT, HUMAN ACCESS TO SPACE? >> I WOULD HAVE TO SAY IT'S BEEN WITH THEM THE LAST COUPLE OF YEARS. LET'S LOOK AT LAST YEAR ALONE.
SPACE X WITH THEIR FALCON NINE SPACE LAUNCH VEHICLE I BELIEVE LAUNCHED 66 TIMES? THAT'S MORE THAN ONCE PER WEEK. I COME FROM A COMMUNITY WORKING IN THE U.S. NATIONAL SECURITY ENTERPRISE, MAYBE ONE LAUNCH PER MONTH. THE FACT THAT SPACE X IS GETTING DOWN TO LESS THAN ONE LAUNCH PER WEEK IS EXTRAORDINARY. PLUS, THEY HAVE ANNOUNCED PLANS OF 140 LAUNCHES WHICH IS WHAT THEY WANT TO DO GOING INTO 2024. BY MY ENVELOPE MATH, THAT'S TO-THREE LAUNCHES PER WEEK. THAT IS AN EXTRAORDINARY
CADENCE. SOME OF THAT IS HUMAN SPACEFLIGHT BUT A LOT OF THAT IS LAUNCHING COMMERCIAL PAYLOADS, THEIR OWN STERLING SATELLITES AND GOVERNMENT SYSTEMS WHETHER IT'S U.S. OR INTERNATIONAL. ED: IS SPACE X THE ONLY GAME IN TOWN? FOR HOW LONG WILL THEY BE? THE BIG STORY IN RECENT WEEKS HAS BEEN VULCAN. A LAUNCH SYSTEM WHICH YOU HAVE SOME EXPERIENCE WITH. YOUR REACTION TO THE ULA TEST? >> IT'S BEEN A WHILE COMING SO I WANT TO CONGRATULATE ULA FOR THE SUCCESSFUL LAUNCH LAST WEEK. ONE THING THAT GOT LOST IN THE
HEADLINES LAST WEEK BECAUSE THERE IS A MUCH FOCUS ON THE PEREGRINE LUNAR LANDER AND THE ISSUES THEY HAD AND ULTIMATELY HAS LED TO A FAILED MISSION, WHAT WAS LOST IN ALL OF THAT WAS THIS WAS THE FIRST TIME ULA WAS NOW ABLE TO FLY AN AMERICAN-MADE ROCKET ENGINE. UNTIL NOW, THEY HAVE BEEN RELYING ON A RUSSIAN ROCKET ENGINE. IT WAS CONGRESS BACK IN THE 2014-2015 TIMEFRAME AFTER RUSSIA INVADED CRIMEA THAT IT WAS SENATOR JOHN MCCAIN THAT SAID WE HAVE TO GET OFF THESE RUSSIAN ROCKET ENGINES. WE WILL NOT LINE THE POCKETS OF THESE RUSSIAN OLIGARCHS AND THE GOVERNMENT. WE HAVE FINALLY SEEN THE DEVELOPMENT OF AN AMERICAN ENGINE, THE BLUE ORIGIN BE-4 FOUR SUCCESSFULLY LAUNCHED ON VULCAN AND THAT LEADS TO GOOD COMPETITION ALL OVER. ED:
WHAT WOULD REPRESENT PROGRESS AND SUCCESS FOR YOU THIS YEAR? >> YOU GOT TO GET A COUPLE OF LAUNCHES UNDER THEIR BELT. ONE LAUNCH IS GOOD BUT THEY HAVE TO GET INTO A GOOD CADENCE OF LAUNCHES AND CARVE OUT THAT TECHNOLOGY. I BELIEVE THE U.S. DEPARTMENT OF DEFENSE HAS SAID WE WANT TO SEE TUMOR LAUNCHES BEFORE WE CAN FULLY CERTIFY THIS WITH GOVERNMENT PAYLOADS.
I WILL LOOK FOR REPEATABILITY AND CONSISTENCY. THAT'S AN AREA WHERE SPACE X WITH THEIR HUNDREDS OF LAUNCHES HAVE GOT THAT DOWN TO A SCIENCE. I WOULD LIKE TO SEE U MAKE SOMELA ED: HAVING YOU ON THE PROGRAM. CAN YOU TELL OUR AUDIENCE WHAT YOU BEEN WORKING ON AND WHERE THE FOCUS OF YOUR STUDY AND RESEARCH HAS BEEN LATELY? >> I LEAD THE AEROSPACE SECURITY PROJECT. THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES. I'M A SPACE NERD FROM EARLY IN MY YOUTH.
I LOVE WORKING THESE SPACE TOPICS. SOME OF MY FOCUSED AREAS HAVE BEEN ON SPACE SECURITY AND THE INCREASED COMMERCIALIZATION OF SPACE AND GREATER USE OF IT FOR NATIONAL SECURITY AND FOR ECONOMIC BENEFITS. THERE ARE GROWING CHALLENGES AND THE THREATS TO SPACE ARE INCREASING AND LOOKING AT WHAT CHINA IS DOING IN PARTICULAR WITH THEIR MILITARY AND NATIONAL SECURITY ARENA. THEY ARE ALSO MAKING SOME INTERESTING STRIDES ON THE COMMERCIAL FRONT. YOU CAN QUESTION WHETHER IT'S TRULY COMMERCIAL BUT THEY ARE MAKING SOME INTERESTING STRIDES I'VE BEEN WATCHING CLOSELY. ED: THE DIRECTOR OF THE AEROSPACE SECURITY PROJECT AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES, TERRIFIC TO HAVE YOU ON THE PROGRAM.
COMING UP, WE WILL CHAT WITH A COMPANY'S PARTNERSHIP WITH STRIKE. LOOK AT THAT THING GO ACROSS THE WATER. THIS IS A BAY AREA STORY TO WATCH.
WE ARE ALSO LOOKING AT SHARES OFTSMC AND LOOKING AHEAD TO EARNINGS AND WE TRACK THE MONTHLY DATA WHICH SHOWS CONTINUED YEAR-OVER-YEAR DECLINES IN TERMS OF THE OUTPUT ON THE TOP LINE. QUESTION EVERYONE HAS HIS ACROSS THE BROAD SPECTRUM OF SEMICONDUCTOR COMPANIES, WHERE DO WE SIT IN THE DEMAND/SUPPLY BALANCE AND WHAT IS THE STORY WITH CERTAIN AND MARKETS? ED: ELECTRIC BOAT STARTUP NAVY IS PARTING WITH STRIPE TO FERRY EMPLOYEES TO WORK. IT'S ALREADY HOSTED PROFILE NAMES LIKE ELON MUSK ON ITS BOATS AND THE CEO JOINS US TO DISCUSS A BIG STEP FOR THIS STARTUP. YOU AND I HAVE SPOKEN A LOT ABOUT THE UNDERLYING TECHNOLOGY. IT'S A BATTERY ELECTRIC
HYDROFOIL BOAT AND THIS IS THE FIRST BIG COMMERCIAL DEPLOYMENTS OF WHAT ARE YOU DOING WITH STRIPE? >> WE ARE STARTING OFF WITH A PILOT PROGRAM AT STRIPE TO SHOW THEIR EMPLOYEES IN NORTH BAY -- FROM NORTHBAY TO THEIR HEADQUARTERS SO IT'S STARTING IN MARCH AND IT'S REALLY THE FIRST OF ITS KIND. IT HAS NEVER BEEN DONE. ED: IT'S ABOUT A 20 MILE TRIP POINT TO POINT. WHAT WITH THE EXPERIENCE BE FOR STRIPE EMPLOYEE IN THE MORNING, GETTING IT TO WORK IN THAT METHOD OF TRANSPORT? >> THE BIGGEST DISRUPTION I FEEL WE CAN BRING HIS TRANSPORTATION AND COASTAL CITIES WHERE WE ARE FRUSTRATED BY THE TRAFFIC AREA WHEN YOU THINK ABOUT TRAFFIC, IT'S MOSTLY DUE TO EMPLOYEES GOING TO WORK IN THE MORNING. THEY ARE DRIVING THEIR OWN CARS. THE NUMBER OF SUPER COMMUTERS, PEOPLE WHO ARE DOING A ROUND-TRIP IS QUITE HIGH. IT CAN TAKE ABOUT 1.5 HOURS EACH WAY.
INSTEAD OF THAT, LIKE GETTING STUCK IN TRAFFIC, YOU CAN BE ON A SMOOTH FOIL BOAT, YOU'RE LITERALLY FOUR FEET ABOVE THE WAVES SO YOU DON'T FEEL SEASICK. IT HAS WI-FI AND YOU WILL HAVE A DESK IF YOU WANT TO WORK. IT'S REALLY A MUCH MORE REFRESHING AND RELAXING WAY TO GET TO WORK AND NOT WORRY ABOUT DRIVING YOURSELF. AS A PART OF YOURSELF, YOU ARE REDUCING THE CARBON FOOTPRINT. IT'S TAKING A BUNCH OF CARS OFF THE ROAD. ED: LET'S TALK ABOUT THE TECHNOLOGY. YOU ARE DOING PRODUCTION IN THE
EARLY STAGES SO WHAT'S UNIQUE ABOUT NAVIA FROM THE DRIVETRAIN PERSPECTIVE ON THE DESIGN? >> 46% OF THE WORLD LIVES IN COASTAL CITIES. WE ARE TALKING ABOUT HOW WE ATTACK TRAFFIC PROBLEMS. COASTAL CITIES IN SAN FRANCISCO OR NEW YORK HAVE THIS BIG REAL ESTATE CALLED THE WATER. WE COULD NOT FIGURE OUT HOW TO BUILD A HIGH-SPEED BOAT THAT ARE COST-EFFECTIVE COST WISE AS WELL AS CONVENIENT, SMOOTH AND HAVE A GOOD RIDE QUALITY. ED: YOU HAVE CRACKED THAT?
>> THE TWO KEY PROBLEMS WE ADDRESS HIS OPERATIONAL COST OF RIDE QUALITY. HOW WE DO THAT IS ELECTRIC AND HYDROFOIL. HYDROFOIL IS LIKE AN AIRPLANE. WE HAVE WINGS UNDERWATER.
THE BOAT RISES ABOVE THE WATER AND IT HAS A LIFT. WITH ELECTRIC, IT'S QUIET AND IT'S SMOOTH SHE DON'T HAVE THIS GAS GUN SLING -- GAS GUZZLING ENGINE NOISE. SINCE YOU ARE NOT PUSHING WATER, YOU'RE MORE THAN 10 TIMES EFFICIENT THAN A TRADITIONAL GAS BOAT. THAT IS THE BIG DISRUPTION WHEN IT COMES TO COST. ED: THE BAY AREAS THE START SO WHERE DO YOU EXPAND? >> NEW YORK, SEATTLE, MIAMI, L.A., YOU NAME IT.
MANY AREAS IN THE U.S. BUT GLOBALLY, THE MARKET IS BIGGER. ED: THAT WAS THE NAVEA CEO RUNNING A PILOT IN THE BAY AREA. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
A BUSY WEEK SO FAR. CHECK OUT OUR POTENT -- OUR PODCAST. THERE IS A LOT GOING ON IN FINANCIAL MARKETS AND A LOT HAPPENING IN DAVOS.
IT'S A SHORT AND FINANCIAL MARKETS WEEK BECAUSE OF THE U.S. HOLIDAY. THE NEWS FLOW HAS BEEN RELENTLESS DRIVEN BY AI OR THE SUPPLY CHAIN IN THE RED SEA OR WHAT'S HAPPENING WITH BIG TECH AND LAYOFFS. EVERYTHING YOU NEED TO KNOW DAILY HERE IN BLOOMBERG TECHNOLOGY. FROM SAN FRANCISCO AND AROUND THE WORLD, THIS IS BLOOMBERG TECHNOLOGY.
2024-01-23 05:51
