Discover the Perfect Estimation Bill Format for Higher Education

Estimation bill format for Higher Education

[Music] Bloomberg audio Studios podcasts radio news from the heart of where Innovation money and power Collide in Silicon Valley and Beyond this is Bloomberg technology with Caroline Hyde and Ed L low [Music] live from New York this is Bloomberg technology coming up Apple is developing an AI server chip ing to reports and it's doing it with broadcom details this hour plus the valuation of SpaceX goes to new heights reaching $350 billion after an Insider deal and Nvidia AMD and Intel invests in a startup bringing light to chips we sit down with the CEO later this hour but first let's check in on these markets and currently we are continuing to see some optimism around the NASDAQ 100 what 1.4% on the day crypto as well once again above the $100,000 level $1,532 is where we trade so risk on across the board we look at some of the points contributors when you look under the hood of the NASDAQ 100 it's interesting to once again just be seeing some of the key stocks being on the move of Apple which has continued to have a very good November and into December we see where apple and broadcom trade on the back of that report that apple is indeed looking to be creating its own AI server chips designed especially for artificial intelligence and it's working with broadcom this is all on the chips networking technology it's all being reported by the information we'll bring you so much more on that in a moment but let's get back to the context of the markets the geopolitics after that yelling interview by David gura Anna Ran's with us Chief investment officer at ca's investment advisory services and look we've got a risk on feel we're once again seeing Nvidia on the upside you're saying apple on the green alphabet on a tear is this the way that we should be Trading uh good morning um there's certainly a lot of excitement and AI has transformed a lot now the the the trouble with China Nvidia happens to be on the cros here is it's not about Nvidia it's not even about the US that's all about China it's a little bit of a noise um but when I say that AI has transformed we're talking about Apple and broadcom Amazon is also designing its own chips there's a lot to be excited about so the excitement of AI is no longer really a dream um as it had been 2023 and 2024 going into 2025 I think we have a lot more to look forward to but when you've had more than 100% gain in an name like Nvidia over the course of 2024 when you've got record highs on the likes of Google alphabet the parent company today can you really be juicing these stocks any further Anna well you know so some of this is about the tech names some of it is about relative Val valuation right so the the question really in our minds as as asset allocators is where would assets go if we take a look at the global economy um and other areas of the global markets as well as some of the old economy stock names here the even the fundamentals don't look as exciting and they're not the ones that are driving Innovation and so it there's it's hard to get excited about other areas so it you know you could see a lot of assets still driving into Tech names the other thing more thing is a lot of the political changes I mean Lena Khan it looks like she is out coming in is Andrew Ferguson a lot of the the hurdles that happen to be there in not only the m&a market but Tech as well in terms of antitrust that seems to be removed so it's not necessarily about where the valuations are just for Tech it's relative valuation as well as what will the environment be like although the Trump announcement for doj has made many people worry for alphabet and yet alphabet continues to be at a record high are you not in any way given pause on the antitrust side of things for that particular name or others yeah that that particular name I think it's well on its way so I don't think necessarily alphabet will fit into that bill but I'm talking about the general environment uh for m&a and as well as Tech now one you know to your point there are it's not all you know roses here um there is this aspect of freedom of speech and I don't know how that's going to be defined in 2025 for Tech especially for social media platforms and that remains to be seen so it's not all roses but certainly a lot of hurdles have been removed what about the spreading out from the mag 7 and some of these winning Trump trades we think of the palente and the Teslas of this world will that broaden out we keep hearing that it'll broaden out is it going into other parts of the AI ecosystem energy for example yeah so I think we have to see Ai and other Tech you know advancement actually make it into these old economy names or even other Tech names that are a little bit not not so much chip based right and I think we'll need to see more Innovation on that and really where the rubber hits the road how AI would actually impact these industries and until then it still feels like we're running on fumes here and that's probably why it hasn't broughten out yet but we'll see in 2025 if there's a difference yeah you were saying you started this conversation by saying there's a lot to look forward to in 2025 we still ring our about what the killer application of generative AI is other than Gemini 2.0 on my phone or the ability to have basically an analyst next to me every time I want to research is that enough in terms of the return on investment I don't think so um you know we got a glimpse of it in 2024 where you know all this hype about Ai and how these Big Max 7 companies are investing in AI was simply enough to get the the price up but then we started to look for our on them and I think the market may be looking for a little bit more in 2025 so we're going to have to see something a little bit more concrete but that is where I think that that that these tech companies are running really hard because this is about market share and this is about running to see who the first mover is for capturing that first mover Advantage because if they don't they will lack behind they know that and so I'm looking forward to the Innovation that is to come prison dilemma or indeed Innovation Focus Anna rman we thank you investment advisory Services CIO let's just talk about some of those names we just referenced a little bit more Tesla broom but also Nintendo these are just a few of the global stocks to watch in the coming year it's all ing to Bloomberg Business Week analysts at Bloomberg intelligence track some 2,000 companies from a variety of Industries and they've identified 50 that are worth watching closely many of them of course are tech companies let's bring in Bloomberg's Max chafkin who's been pouring over all of this let's start with the Trump trade we're just mentioning paler there it is up 300% Tesla is been phenomenal growth since Trump came into the administration what are the analysts thinking there yeah with both of those stocks you have a trump trade and sort of a general Vibes AI thing going on and those two things feeding into one another so so paler obviously has some AI connections as well as it's a defense contractor co-founded by Peter teal Trump is going to be president you know there's a case there that maybe they'll do better uh Tesla of course Elon Musk uh having having the ear of the president-elect is a good sign but with both of those stocks there is a a sense that they are very highly valued perhaps relative to where their actual revenue is and what their business prospects are you know paler is not a leading AI company it isn't it isn't as far ahead as Google or open AI or something like that Tesla talks a lot about self-driving cars but they have not sold a self-driving car so you have some challenges there so that's that's the tension there the interesting shift that we've seen is maybe a slight pullback on chip companies a lot of the exuberance of 2020 2024 has been factored in broadcom today gets a lift higher because we think that it's going to be working for apple on its server AI chips ing to the information but broadcom and microm being referenced yeah yeah broadcom's interesting it's one of a handful of companies that can try to compete with Nvidia it is directly and has directly benefited from this extreme exuberance in AI now in the chip world of course has a more direct benefit to AI I mean they are selling you know chips or intellectual property that is being used whether or not chat PT becomes a hugely transformative thing or not mikron is interesting cuz it's in the memory business not not a direct uh participant in the AI Market although it just uh signed this deal with the Biden Administration to get a a huge subsidy for a a chips plant and Chip companies in general have done pretty well so that's another one to keep an eye on this is a global focus and so we think of content ITV being looked at in the United Kingdom Nintendo as well where else are we looking in terms of our consumer Focus yeah entertainment is interesting Nintendo uh the big story there is the switch 2 that's the new version of their uh their console which is is very popular but getting long in the tooth two other names I want to flag one is Fox you know the we've been reading a lot about the Murdoch drama you know Fox is actually done okay considering the you know the general declines in uh TV consumption linear TV consumption and so on um and and the other one is IMAX uh the the sort of large screen movie theater format again that's a challenging industry movie theaters have are going through transition on the other hand these James Cameron movies The Avatar movies are bought into IMAX and have been doing well so so that's something that could work in their favor Max chafkin amazing how you've managed to pull through so many of the stocks for us we love it on those top 50 to [Music] [Applause] watch apple and broadcom stocks on the move today after we understand that apple is working with broadcom to develop its server chips designed specifically for artificial intelligence now the latest report is coming from the information Bloomberg's Mark Gman joins us on well you've been reporting this out for a long time that Apple will be delivering delivering AI chips of its own the Nuance here we're learning exactly who's doing it yeah the interesting thing is this morning Apple announced that iOS 18.2 which is the the latest version of iOS 18 with a lot of the new Apple intelligence features is actually going to be available today I would anticipate it's going to be available for download around uh 1: p.m. Eastern 10: a.m. Pacific and apple intelligence is interesting because you have a lot of models that run on the device itself right those capabilities can actually be processed on the phone the iPad the Mac uh independently but in some cases they need to go to the cloud things like writing tools things like summarizing text in some cases summarizing articles and for that you need your own server infrastructure and so for what Apple has done uh is they've created tweaked versions of the M2 Ultra chip they shipped a couple of years ago and the M4 chip they begun shipping this year to actually be cloud-based servers to do that AI processing and so what this report today is saying is that there's a new generation version of that chip uh in development for launch about two years from now which makes sense they they are continuing that roll out of different chips they need uh specialized chips for for training data for inferring data for pushing data um and what broadcom is really good at is bringing that data in and out apple and broadcom have been working together uh for a number of years uh broadcom makes the combined Wi-Fi and Bluetooth chip inside of uh the iPhone and some of the other Apple devices broadcom uh is continuing to work with apple on what are known as radio frequency filters or RF filters despite the shift away from qualcom modem so this is just a continuation of the the Apple modem or the Apple broad clone partnership I should say in new generations of AI serers as it shows Apple's commitment uh to artificial intelligence and doing as much as possible in-house it's also committed to ensuring that we can get connectivity wherever we might be and you reported that out in terms of the Apple watch right and how you're going to be using satellite going forward yeah this makes sense as well uh back in 2022 with the iPhone 14 uh Apple launched a feature called uh emergency SOS over satellite so what that allowed you to do is the first advertisement for that uh so eloquently showed is if you're you know injured or trapped on a hike or in a remote area without cellular connectivity uh you could tap into into a satellite Network operated by global Star right you can send a text message to Emergency Services or file uh a a sort of a radar or an SOS to emergency services and they'll come find you uh they expanded that earlier this year with iosa to allow text messages over satellite to any iMessage content and so if you're a hiker you need to sort of bring your iPhone with you but they have this $800 Apple watch Ultra gear towards hikers and now they're going to update it about a year from now with its own satellite connectivity meaning you can leave the phone behind and still have that peace of mind of being able to reach emergency services and sort of stay on the grid while you're off the grid out of cellular range few Mark Gman great to have some time with you thank you all things Apple meanwhile let's shift to SpaceX and its investors have agreed to purchase as much as $1.25 billion of Insider shares following the company at a cool $350 billion it's ing to an email seen by Bloomberg Bloomberg's Katy rof joins us now you've been reporting out this valuation for a while and we get confirmation and in fact it seems as though a lot of people didn't really want to be selling up their shares that's right actually Elon Musk even tweeted a confirmation of this so uh we had reported last week that you know they were close to finalizing the $350 billion valuation a world record for a private valuation that has now been finalized uh my colleague Lauren grush obtained a document confirming our scoop and yeah it's a 85 a share which is a significant uptick from $112 a share that you were talking about just about a month ago all of this optimism is allowing people who've been long-term holders of SpaceX to cash out do we have any idea of who those people are because as you say SpaceX has been buying back some of the shares but not as many as they' had anticipated to be able to sure so um you know it's up a 100 billion you know from where they were talking a month ago um there's been a surplus of demand because um you know first of all elon's ties to Trump um and you know Trump's election are seen as valuable to some of these shareholders and then also SpaceX had a successful rocket launch um last month and so both of these things contributed to the perceived value a lot of these private companies aren't necessarily valued based on clear-cut metrics but just where Supply meets demand and often often it's based on a vision for the future but yes it's apparently they had excess uh they didn't have enough Sellers and so they had to raise the price to to match supply and demand the greatest American success is what Jared isman who is of course the NASA name this NASA Chief pick from Trump is calling SpaceX today KJ rof we so appreciate it thank you so much coming up G vanova CEO Scott Strat is going to be joining us for more on how the is meeting the power needs required to put AI into action this is Bloomberg [Music] [Music] [Applause] technology a looming problem facing the AI boom is how the new technology will be powered and the race is on to meet that anticipated demand one of the key players G venova the company is developing new technologies to provide reliable affordable low carbon electricity that it hopes will produce the sort of power that can put AI in action here to talk about it g vanova CEO Scott strk thank you so much for being here with us thanks for having me on the back of an invest event and you are outlining really the demand that you're going to be seeing from AI can you just put that into context how much is going to be increasing the load you bet I mean AI is one of many factors that's driving to really the first time in 25 years certainly in the US we're seeing real load growth it's AI it's the electrification of Transportation electrification of homes but also us manufacturing are all playing roles that are really leading to a substantial increase in load growth right now that's we're seeing in a number of our businesses we're seeing it in in substantial increase in orders for gas power right now we're seeing it in Grid infrastructure equipment and then working with the hyperscalers going back to that question on how we decarbonize this increased load growth that's very clearly coming this decade so to decarbonize is it all about nuclear is it all about Innovations there you set aside what $5 billion in terms of R&D you bet it's really going to be a little bit of all the above I mean there's going to be a lot of decarbonization of gas over the course of the next decade that's with hydrogen that's with carbon capture as an example we have a running direct air capture plant right now that we'll be able to Parlay similar technology on our gas turbines over time nuclear is definitely important we have 65 nuclear plants with our technology running today in the US we can operate those plants and provide more electrons this decade we also have what will be the first small modular reactor that will get commission this decade in 2029 that will become a bigger part of the hyperscale or demand cycle into the 2030s and we're excited about that so there's a lot of plays here it's interesting people have been hand ringing about in the last decade how much China has invested in nuclear and how the US ultimately hasn't yeah have you been been talking about this for a while and now everyone's come to the same realization or certainly The activity's Accelerated considerably in the last call it 24 months I mean I remember sitting in the room at cop 28 in Dubai with over 20 heads of States saying we need to Triple the nuclear capacity in the world between now and 2050 and the the sentiment towards nuclear certainly coming that way both whether it be with business or with government it seems like this is going to be our time for nuclear and we're excited about what we can do to help make that a reality is there a opportunity cost that where where are people not looking it's interesting that there was perhaps some weakness in the wind area of your business the analysts are calling out why that well I think the wind industry at large is one that's still going through more of a maturation process industrializing the product at scale relative to gas relative to nuclear that just have longer legacies stronger Supply chains stronger safety and quality cultures in those Supply chains in totality but the reality is when you talk about these different power generation Technologies and what people are missing frankly it comes back to the grid because regardless of which Technologies are going to power this load growth we need to make a massive investment in the Grid in the years to follow and that's both the physical grid and how the grid thinks and works and grid software and those are big parts of what we're investing into right now is that you is that alongside the government does this have to be public private Partnerships we do stand for public private Partnerships for sure I mean these are Big electrical equipment systems that have been built over a hundred years with public private Partnerships playing important role roles and that will continue but a lot of the Innovation needs to come from us so we can't wait for the government so we're investing considerably in Grid software as an example I mean does that impact profitability though longterm the investors the analysts that you're invested day were loving the long-term future for margin growth yes but they were in the near- term a little bit worried about the narrowing of the margin Target is that because you are having to put money into R&D we are investing we're going to grow our research and development 20% in 2025 and we're doing that because the Market's telling us that there's real opportunity to yield a return on that investment over time the amount of electricity that's going to be needed in the next two decades probably can only be compared to the period of time after World War II W it's substantial it's important for both economic growth and frankly it's important for stability in the world so yeah we're investing into the future but we're doing it with high confidence that we're going to yield a return on that investment you generate about 25% of the world's electricity what does the US look like compared to everywhere else where in the US are you having to really focus in on we uh it really is an all the above theme right now I mean we're building out our manufacturing facility for gas turbin in Greenville South Carolina we're investing into our nuclear facility in Wilmington North Carolina we're also building the largest onshore wind turbine to sell in Upstate New York so really throughout the us we're building stronger local manufacturing to serve a growing Market not just for the us but candidly so that as we make these Innovative Investments we can also export that technology for the world both for economic development there but also for peace wow big thoughts G vanova CEO Scott straik really great to have you in on the thanks for having me now it's time for talking Tech first up the chip that powers huawei's latest Flagship smartphone is not so different from the one that set off alarm bells in Washington a year ago ing to a device tear down done by Tech insights the discovery suggests Huawei is still about 5 is behind industry leader tsmc in terms of Technology plus Swedish payments group clab bank has been fined $45 Million by the nation's Financial watch log for failing to follow anti-money laundering rules and the authority found quote significant deficiencies at the company but clar points out that this was routine review and was not related to actual cases of money laundering and China's top markets Watchdog summoned PDD Executives to order the company to fix its refunds first policy which actually allows customers to claim refunds without returning their goods the decision comes as a growing number of small Merchants argue the practice really hurts their bottom [Music] [Applause] line welcome back to bloom technology I'm Caroline Hy in New York let's get you a quick check on these markets because the NASDAQ pushes higher risk assets go higher as we get that inflationary pressure coming in as anticipated 0.3% on the CPI print month over month we are currently up 1.6% and really some of the big Tech magnificent 7 G lead us higher going to the individual movers we have got some record highs out there across the board and a large part that is on alphabet once again four straight days of gains the biggest winning 4-day streak that we've seen since back to March 2023 enthusiasm around the quantum Innovation being seen with a willow Quantum chip but add on to that g Gemini 2.0 being released today Innovations in AI all of this seems very much a virtuous circle despite those antitrust overhangs so we're higher on alphabet move into some of the individual stories as well on the and we've been looking a lot at the chip makers and the News coming out of the information really just iterating a little bit of what Mark Gman had already been reporting that yes apple is looking an AI focused server chips and who do they turn to well longtime partner broom we're up some 6.3% on the back of broom and lastly I'm just looking at Super Micro the volatility remaining around that particular name after of course they did get that extension to be giving their financials to the NASDAQ by February let's just talk a little bit more about on the private side and the chip question a little a little bit more as well IR Labs has just raised $155 million in its latest funding round the likes of Nvidia AMD Ventures Intel Capital the three big chip companies basically using what is their next technology they're specializing in using light to transfer data between chips reducing bottlenecks is hoped in AI chip technology IAB CEO Mark Wade joins us now I just want to get the context for our viewers what exactly is going on here how does photons how does ultimately light help reduce the bottlenecks in chips at the moment yeah well first Caroline thanks for having us here I'm excited to be here and talking with you uh I think the way to think about this is everyone's familiar with and have been tracking all the Innovations coming out and exciting applications happening in AI uh but the AI application has really broken the back of existing Computing infrastructure and we've seen a lot of innovation happening on the compute side so people like Nvidia building gpus and we've seen how these gpus get deployed in in huge AI data center uh deployment so thousands tens of thousands of of uh gpus but you have to connect all of those gpus together so now we're at a point to where the uh the bottlenecks are happening and how you connect these gpus together and start to drive to higher performance uh overall systems you know driving uh uh model growth uh more interactive AI models uh and these bottlenecks right now show up as lower performance higher costs and drive a lot of cost pressure in the AI application and the soft software level that's built on top of it so we're really looking to bring the optical Innovation to solve that uh interconnect bottleneck how quickly are we talking about hearing in the next couple of years mass production yeah I think uh you know we're bringing a low-level Innovation uh to this to the high volume semiconductor world and products in this space always take a few years to get to high volume in in the product Cycles are a few years long so the way to think about where we're at right now and and what differentiates bits is we have a chip that we ship today so it's uh an optical chip it's got 100 million transistors on it it's got thousands of optical devices and we've really brought a level of integration and performance that's never been seen before but we're shipping in the in the tens of thousands of units whereas the market demand is tens of millions so the work that we still have to do over the next few years along with our partners uh and our strategic investors so uh Nvidia AMD Intel but also very importantly the high volume Coss manufacturers global foundaries tsmc uh Intel Foundry we're working on bringing this uh uh forward and scaling it 1,000x in the next few years so think of this as still a couple years away yeah Mark who are you currently shipping to in what form is it already being used yeah so we're uh shipping across a number of the customers uh that we strategically work with uh um and how they're using it right now is is one making sure that the core technology works so we've invented a new technology uh and so it before you commit to deploying that in high volume you have to kick the tires say okay there's some new elements here there's Innovation that we've done does it actually work how is it yielding how is it uh behaving in terms of reliability and so a lot of our customers are consuming these thousands and tens of thousands of Parts uh to really prove out that this technology is is poised to scale into the millions so that's how people are using it today when you think about Nvidia AMD Intel all of them face Frenemies in some ways work with each other but in many ways work to compete they're willing to all work very equally to get access to your technology yeah I think the way to think about this is uh everyone's realizing that a transition towards a new scale of optical Technologies and Optical products uh is very important for all of their uh uh future uh deployments in products so we've always viewed this in what we're doing as a broadly deployed and ubiquitous uh technology so uh uh yes you're right the semiconductor world is is notorious for friendly engagements you know your suppliers your partners sometimes you're competing I think that's just how this world Works uh and ultimately it's it rewards those who innovate uh generation after generation and we're on the Forefront of of bringing Optical Innovation and Optical products to the broad market so that's how we view it and we see our partners really working closely and well with us to to realize that Vision you came out of Academia MIT lab was where a lot of this was born Mark what about the profitability the business model for you and what layer are you getting paid yeah that's a great question uh part of the Innovation here is that we're bringing the power of fabulous semiconductor design which is done phenomenally well in in the world of cosos and electronics and and companies like Nvidia AMD but we're bringing a photonic element to that so we get paid at the chip level so we ship a known good Optical IO chiplet so it's a silicon ship that we ship to our customers and they integrate that chip into their multi- chip packages gpus CPUs in the future switches memory interfaces so this really becomes a a a ubiquitous largely deployed kind of proliferation of optical Technologies and we sell a chip and at the moment who makes those chips is global foundaries Intel and you're talking to tsmc will we just see all of those three be the ones that bring you to mass production by 2026 that's right I I think the other thing to latch on to here is that uh the the high volume uh Leading Edge foundaries are getting involved so global foundaries Intel foundaries tsmc they've all made public statements about what they're doing in photonics and and we're working closely with all of them uh and we're excited about how this is coming together and yes we need that scale of of manufacturing to deliver to the tens and hundreds of millions of units uh that the market is demanding a few years in the future I lab CEO Mark Wade really appreciate your time on the funding round meanwhile just shift our attention to GM shutting down its Cruise Robo taxi division citing High development costs and reputation risks GM will merge cruise into its operations focusing on developing advanced Safety Systems and offering autonomous driving as a feature on future models the company says the decision will save the company over a billion dollars in annual costs coming up what's in store for the IPO Market heading into 2025 Wesley Chan with us co-founder and managing partner at fpv ventures this is blo technology [Music] [Applause] after potential IPO filings from companies like planner like service Titan what's the outlook for Tech IPOs heading into the next year how long will these AI valuations remain so he Wesley Chan is with us co-founder and managing partner of fpv Ventures who got a lot of thoughts on both sides of the equation we are getting excited for potentially IPOs to reopen particularly as we see a new Administration everyone's talking about more Pro business is that going to happen I think so I mean everybody's very excited about 2025 especially going to 2026 if more interest rates fall you'll see a lot of people pump more money in the markets and like you might have a wonderful season of IPOs we're still waiting it out right now it hasn't happened you know service Titan has filed we're hoping in fingers crossed that that does really well and you know I think that will open up the doors for more people to to want to come out to the market there's been some bitter pills to swallow on the progress for example a clor in the Hy days of 2021 the valuation is much different but it has improved from recent years what does that speak to in terms of where the valuations will lie when we come to the public market they'll still be down from the last couple of years you have to remember that we had zero interest rates so people had an outrageous amount of money in the markets with the pandemic and the stimulus people just pumped money in the IPOs as if it was everything was great and I think what you'll see in in the next couple years is only the best companies will sort of come out at the beginning and that those best companies will get valuations that are are reflective of their being unique and being exceptional are those best companies always going to have to be generative AI adjacent or no you know no I hope not right like you know I think there a lot of great that are waiting I'm um I've been involved with canva for almost uh for almost 11 years and they're they do use some AI as part of their product offering but you know canvas started out as a tool for everybody to use to be to be more productive and you know nobody sees them as an AI company quite yet and you know everybody's talking about their possibility of iping in the next couple of years so you'll see a lot of great companies come out well they all come out in the United States if indeed they are we're seeing Indian listings for example pick up for local companies or is it all about coming to the US I think if a Founder where no matter where in the world you are you know a lot of them tell me it's their dream to IPO in the US so you know you'll see the best one's IPO here that's where all the capital is and where people are excited about having their listings people are exuberant though also about m&a picking up I mean many would say there's still limitations on the Magnificent 7 to really make too many Acquisitions but is that going to be a more furtive area of of of exit at least I I hope so but I'm skeptical of it we have a couple issues with m&a the first being that you a lot of a lot of it was blocked you know saw this morning that we had another one uh that was kind of blocked this Kroger Albertson's one um we might have a new Administration we might have a new FTC that be will be more more lenient towards allowing some of these m&as through but right now it's a the m&a market is for most part shut down especially for folks in tech companies so where are you seeing for example a lot of the activity when you're all trying to get into deals is it that you're writing still the initial checks how much You' been tempted by some of these secondary Market activities that seem to be the area of giving certainly investors and employees liquidity you know there's a lot of activity happening happening there but my my taste has always been either first check in or on the series a and not doing these secondaries that's where you spot these founders with amazing talent and they'll probably go to IPO if they achieve what they want Google went to IPO I was there as a very early employee and I watched that reopen the public markets in 2004 and you know you have one great or two great or three great companies IPO and the market will start booming again we saw firstand with Google when things were shut down after Enron and after the first recession and the Doom bust so you know the history doesn't quite repeat itself but boy does it rhyme a lot does Rhyme does The NeverEnding wall of money going towards generative AI startups continue we're already seeing it stop a little bit right you know there were a lot of we we it ab and flows and with a lot of generative AI startups that were doing video models or doing uh you know the these first stage a lot of them can't raise money anymore you know they're calling companies like Canin saying please acquire us we're just out of cash so I think I think you're going to see that first wave start you know start start seeing their bubble pop and then you'll see a second wave of applications the ones that are changing how legal is done changing how insurance is done changing how Insurance underwriting sort of occurs start to become very popular and I think those will have some value we saw this in Mobile firsthand like you know a lot of the companies that were doing mobile infrastructure all went kaput you know very very quickly or they got bought as acquisitive uh m&a by Google or Apple and what you'll see is companies like gen that that are the incumbents in gen whether it's Google or Microsoft or open AI which is entirely almost funded by Microsoft sort of keep the line share because they have access to all the compute power's got a lot of money coming into has to be said but what you'll see is a lot of the application layers just like how Uber and Airbnb became the application companies for mobile the application companies for Gen will start becoming very popular and have a lot of value in this kaput moment look we there there are a lot of zombies out there who are still clinging to unicorn valuations but no one's quite ready to to rip up the script and Mark it down when did those put moments actually happen when they run out of cash we saw this first end in the do bust right a lot of companies had these crazy unicorn valuations cuz the market was unlimited and all of a sudden and one Fell Swoop after there was that big recession the Doom bus happened and all these companies almost in like a couple month period went went kaput overnight and I think we'll see this with some of the Gen companies the the market will just say we don't have money for you for funding they won't have a profitable business model just like how the e-commerce companies never made a dime they lost money on every transaction you'll see that business model you know risk sort of play out and then all of a sudden with no more cash being able to rais and the money being burnt they'll have to close the door where in the generative AI stack are you talking about the application layer here rather than the foundational so I I think it's between the foundational models those folks have lots of funding they have incumbent unlimited compute power you have the applications that are taking advantage of some of the the uh the uh the new features and the new launches that are happening in the Gen in the foundational models but there are a lot of companies in between that were using some of these models to do better videos or better writing tools that's where you're going to see a lot of a lot of wreckage Wesley it's always great to get you straight talking on the show Wesley Chan co-founder and managing partner at fpv ventures with a look ahead for 2025 of course Wesley used to work at Google let's talk about Google for a moment because it's debuted a new version of its Flagship AI model Gemini 2.0 saying it is twice as fast as its previous version and will power virtual agents that assist users now the new model can generate images and audio across languages can assist during Google searches and coding projects meanwhile Adobe also rolling out new features this one is AI video product much more slowly though than open ai's rival Sora service has been fueling concerns that it's falling behind the company announced the tool two months ago yet it remains in limited testing only accessible by a handful of creators meanwhile Sora made available to a wide audience just this week we await adobe's numbers after the [Music] [Applause] B we have a new intraday record being hit for t keep an eye on the stock we're currently up 2.77% but at one point we're gaining 3 and a half% to hit the first intraday record since 20121 the enthusiasm around Tesla of course since the new president-elect Trump was announced in early November being priced in meanwhile let's shift our gears to Tik Tok another one to focus in in in the Trump Administration is currently offering users hundreds of dollars to spend time in the app invite friends to join and purchase products on Tik Tok shop this is all part of an effort to expand the business as quickly as possible ahead of course a possible ban in the United States Bloomberg's Alexandra LaVine brings us this story quite extraordinary some of the ways they're enticing new users I haven't seen this particular one before and I think what's so interesting is you know they've already have they already have 170 170 million Americans using the app that is more than half the American population it is more Americans than voted in our last election and this shows that they are still trying to get more as you said to just really maximize before this potential ban goes into effect in just over a month so what is the idea more people more the 170 million that already use it will be a bigger outcry if indeed we are going to see it banned or if they choose not to divest from bite darts absolutely the thought is that it's best to just do as much as they can and grab as much as they can to both increase the value of the company and also to make the app more deeply entrenched in in you know the American American's everyday life and in the American economy before this potentially comes to pass and so what you're seeing in this offer now when folks are opening up the app is that they are being offered up to $350 basically to spend in cash rewards on Tik Tock shop which is still one of the biggest bets for the company and one of the areas where they are trying to invest the most and they're expanding in Europe as well announcements in Spain and Ireland but how well is it doing do we have any sense of how many people have been using Tik Tok shop in the US so we know that Tik Tock shop is is is wildly popular here we know that Tik Tok or bite dance at paring company had aimed to get users to spend 17.5 billion dollars on the app this year we know that they just had uh triple the Black Friday sales this year that they had last year so we we know that they're doing very well as far as outside the US it just launched yesterday in uh in Spain so it's a little bit newer but I think what we can say looking at the US numbers is that all of the regulatory scrutiny really hasn't done much to dampen interest in the e-commerce arm of the platform throwing everything at trying to gain those us users Alexandra LaVine thank you so much from San Francisco sticking with shopping paid product reviews online which Merchants can use to gain a Competitive Edge they're under increasing scrutiny first it was a Government Camp down by the FTC back in August now Amazon itself is asking online Shoppers to provide information about product testimonials that they posted on Tik Tok or YouTube or Instagram clber Spencer soapa has done the Deep dive here and what Amazon is basically Under Pressure to really work out who's in shouldn't be paying such influence yeah the interesting thing here is uh that they're looking Beyond Amazon you know Amazon for years has tried to clamp down on reviews they've uh looked at scams where people were maybe like taking payments on PayPal and exchange for reviews on Amazon um and what's happening now is they're actually reaching out to people whove posted reviews on Amazon and asking hey what what kind of relationship do you have with this brand or this product what kind of uh videos are you posting on other sites like like Tik Tok and YouTube and Instagram and that's that's the interesting development here is Amazon looking Beyond its own platform uh for signs of this kind of of review abuse a and what is the comeuppence from the abuse and to whom that's a really good question we know that the FTC is looking to clamp down on this and they're saying they can go you know uh pursue civil penalties uh that rule just took effect earlier this year and and that that's where like Amazon is still unclear exact where it where it fits in if they if they turn a blind eye to it that would be difficult for them I think they have to show that they have some sort of proactive mechanisms to try to weed these things out to avoid culpability and then you know maybe help the FTC go to another Target which could be the actual review writer and the brand that's in in collusion but then the the other aspect of this is just that it's reaching Beyond its sight is just kind of sending a message like be careful about those uh campaigns you run on Tik Tok or YouTube trying to sell your Amazon products and and bring maybe bring some of that uh back to Amazon where where they'd prefer to have it yeah because advertising's been a really strong line of growth for them yeah exactly and it's never Amazon's never been very good at Discovery so a problem for them has been that Brands if they want to be discovered they try to get Discovery discovered on Tik Tok and YouTube where people kind of are noodling around Amazon's always been a place to spear fish and so is this is this a way for Amazon to maybe send a warning sign against those kind of campaigns with influencers on other platforms Spencer SOA digging in on those influencers we appreciate it thanks so much no let's just check in on what has been a key story a key move in the market today broadcom from a points perspective really adding to the S&P and the NASDAQ 100 more broadly today it's up 5.6% why because well the reports coming out of the information which basically build on the reporting from our own Mark German that apple is all in on building its own AI specific F server chips who are they using to do that with bracom up 52% so we see some big moves some record highs across the board as well keeping close eye on the likes of Google today alphabet the parent company and a new record high so to is Amazon we're just discussing with Spencer soapa that does it for this edition of Bloomberg technology do not forget to check out the podcast find it on the terminal as well as 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