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One of the.
Biggest news that we had this morning was learning that Michael and Susan Dell are making a six point twenty five billion dollar donation to jumpstart investment accounts for twenty five million US children. The act of philanthropy from the co founder of Dell and his wife will apply to children ten and under who aren't already eligible for government money, with Dell saying she expects to reach eighty percent of
US children in that age range. The move builds on the Investor America initiative out of the White House, which made me know as the President push to financially cushion young Americans. Joining us right now around the desk is Caroline Hidge. She is the co host of Bloomberg Tech, and she brings us right now the CEO of Dell, Michael.
Dell, a historic moment. Michael, Welcome to Bloomberg Compound. Interest the eighth one of the world, some would say, and you're giving it with two hundred and fifty million US kids each getting a job start of two hundred and fifty dollars, Why is this the right act of philanthropy for you?
Well?
You know, our foundation has been focused on children since the beginning, and when this Investment America Act was passed earlier this year, you know, we saw it as a platform for companies and families and communities and philanthropists to contribute to these accounts. And as you probably know, you know, the government is giving one thousand dollars to every newborn in an.
Account that will essentially go in the S and P.
Five hundred and compound over time, and when they're you know, the child's eighteen, it becomes like an IRA can be used for education, to start a business, to start a family, for continued savings, to buy a home. And so what Susan and I wanted to do was help out some of the kids that weren't included in the government program. And so the kids that are tended under that live in zip codes where the median income is one hundred and fifty thousand dollars or less that aren't in the
government program. So I think ages two to ten, we're going to give twenty five million of those children two hundred and fifty dollars each in their account. And we hope that you know this, you know, it inspires them and gives them hope and opportunity and prosperity. I've spoken
with a number of other philanthropists. I believe you'll see some other significant gifts, and we know many companies are going to match the government's contribution, as Dell Technologies is certainly doing, and a number of companies.
Have already announced.
So we're super excited about what this can become over time as these accounts grow to be something significant.
Tell us about that.
Tell us about how you are calling on companies like you to match what many are calling the Trump accounts, but also will those match what you're now doing for two to ten ten year olds, maybe ten year olds and above. Have you filled it many calls?
Well, you know, we just announced this this morning.
I did speak with a number of philanthropists in the weeks leading up to our announcement, and you know, well, I won't speak for them. We'll let them make their own announcements and then they could be designed in a different way. I think you'll see some people adopting particular
states or you know, particular communities. And in fact, we started with the idea of doing this only in the state of Texas, but then we decided to do it nationally, So there can be many varieties and alternatives here, but we do think that this will be catalytic and that more philanthropists and companies will will join us over time. And again, this is a platform for the future of these children.
Is it a platform for more giving from philanthropies or from billionaires such as yourself via government. It's extraordinary turn of events that here you work working directly with the Treasury, Michael. We've also seen Timothy Mellon at one point offering to help cover the costs of US troops during the government shutdown. Will more people be pushed and think it's right to work through the federal government.
Well, I would say, we're not working through the federal government.
We are giving two hundred fifty dollars directly to twenty five million children.
And this is being executed. I think we've just had a technolog knowledgy issue there. But Michael, this are being executed by the Treasury. When you think about how the process has been, you hope that I understand going to be seamless. It's going to be process is going to be swift. How quickly do you think it'll be in the hands of those children and indeed will it be in alignment with the Trump accounts? So July of next.
Year, Yeah, so.
On July fourth or I think fifth, actually because the fourth is a holiday of next year, every parent will be able to claim the account for their child that's eighteen and under.
And originally those those accounts will be.
You know, held in custody by a custody bank, and then eventually you'll be able to choose your bank or your you know brokerage that you know holds the account for you and it's the property of the child.
What banks, what asset managements have you been talking to? How do you think from an infrastructure perspective this would work?
Michael right. I have not been having the conversations with the banks. I actually a number of.
Them have told me that they're interested in being the banks to hold these accounts. I think it'll be you know, all the major banks, and you know, the parents will be able to choose which ever their favorite bank or you know stock brokerages.
What's so interesting is this has bipartisan supporters. We understand from Netta's being met just yesterday, asking Cory Booker as well as Ted Cruz asking those to come alongside you for corporates too.
That's right. I've spoken with that's right.
I spoke with Senator Booker last night about this. I spoke with Senator Cruz about this earlier today, and there is completely bipartisan support.
For this idea. It's not a political initiative.
This is about investing in children, and we think that's the smartest investment that we can make.
Michael, why do you think it wasn't picked up earlier than this since twenty twenty one shout out to Brad Gerstner is almost his idea, this initiative. Why did it take this administration this time?
It's a great question.
Brad did tell me about this in twenty twenty one. We talked to the prior administration about it. I think it's hard to get legislative action like this done, but now it's the law, and so here we are, and so we have a great opportunity for the future to build on this platform.
You really have been focused on education and on kids, Michael in your philanthropic work. You're also a man very focused on the world of artificial intelligence.
What's the life going to.
Be like for these kids going forward? Do you think how much will they be allocating their money, how much will they be allocating their time?
What does the work we look like do you.
Think, Well, there could be lots of you know, debates about that.
You know.
What I would say is that I would encourage kids and parents and educators to focus on the critical thinking skills and being able to analyze problems without the assistance of technology, but also use technology as a as a
resource and as a tool. You know. At the heart of this debate really is as we get new and better tools, are we doing more work and solving more problems, you know, and discovering new science and progressing further in the world, growing the economy, or are we doing the same amount of work with just fewer people because we have the tools you can put me down for economic
growth and prosperity as a result of these tools. Certainly there will be challenges and dislocations, and retraining is certainly required. But from what I'm seeing, I think this is largely going to result in some really great outcomes. But yeah, again it's it's not guaranteed success because of new technology that.
Dissipation Michael, whose responsibility is that is that big text responsibility to retrain to reskill to help at least pay for it. Is it government's responsibility education?
I think it's a.
Collective responsibility that we all have. I think every company has to reskill its workforce. I think the education system has to adapt and build the new skills and capabilities, and you know there's a role for all of us to play in that.
And excuse me for this pivot, Michael, but of course many want to understand. Of course the focus on infrastructure from a money perspective here to kids. There's also the focus on the fact that stocks have to go up into the right in the longer term for this to benefit those children. What do you think about a concern about an AI bubble and there's really reaping rewards from a productivity perspective, or are we in some sort of bubble or circular finance concern?
For you, certainly markets do fluctuate, and you know that well on Blueberg as you report about it every every single day. Long term, we think, you know, you know, invests these accounts in the s and P.
Five hundred is a very good way.
To compound over time for these children. When I look at what's going on today in the enormous buildout in AI. What I see is a lot more demand than supply for the ingredients.
And certainly, you know in our.
Business and many of the companies in this enormous buildout business is very good because there's an enormous demand for what these models are creating, which effectively is intelligence. And if you now have a tool that you know causes everyone in your company to have fifteen more IQ points in their daily work, well that's something you probably want as much as you can get. And so there's enormous
demand here. I think next year will be in a situation, very likely where the demand exceeds the supply in any of the critical ingredients that go into the most advanced systems that we're building.
Well, you're certainly building something extraordinary. On this Giving Tuesday, twenty five million children two hundred and fifty dollars each six point twenty five billion dollars being philanthropically given by yourself and Susan Dell. We thank you so much, Michael dal for joining us today.
Thank you, thank you.
We think the smartest investment we could make is in our children.