Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive from coast to coast with Caroline Hide in New York and Eva low in Sent Francisco.
This is Bloomberg Tech coming up.
The White House says Apple will commit to spend another one hundred billion dollars on domestic manufacturing.
Plus, we speak with AMD CEO Lisa Sue on the back of the company's earnings.
And Bloomberg reports Open aiyes in talks for a potential insider share sale that would value the company at five hundred billion dollars extraordinary valuations.
I turn my attention to the companies that are already public and already reporting earnings ed and actually I'm on the downside. They're all in the red at the moment. Quickly wit through what AMD is up to down the worst. It's October twenty twenty four. This is the China concerns, the idea of when we're going to seem I three or eight actually getting into the hands of Chinese customers, non enough charity. We dig into that with Lisasu a little.
Bit in the show.
Because remember the earnings did beat on expectations thirty two percent growth and revenue. I'm looking at Disney also beating, but again there is a concern perhaps around age old entertainment movies about TV that didn't manage to live up to expectations, held back some of those profitability growth targets. We're looking at Disney off by three percent, uber also by two point four percent.
It too be It too actually.
Said they're going to be doing twenty billion dollar buy back, but they're going to have to invest in autonomous and maybe that's the insecurity here, Ed, But what do you got?
Okay, let's get to that Apple news.
The stocks actually just come off session highs, but it's on track for its biggest jump since early May. One hundred billion dollars in additional investment in US manufacturing and supply chain. But here's the thing, that's all coming from the White House. So let's get out to Washington, DC and bloombergs Tyler Kendall, who joins us from the White House as we wait for I guess the Apple side of what's happen happening?
But Tyler, what do we need to know?
Yeah?
Hey, Ed, Well, the White House says that this one hundred billion dollar investment pledge is expected to go towards a new manufacturing program that would in theory bring more of Apple supply chains to the US, and the official says that this brings the cumulative investment from Apple to six hundred billion dollars. Because, as you well know and mentioned, this bill A builds on a previous five hundred billion
dollar pledge from the company over four years. But with that pledge we saw some really specific investment angles, including that some of it would go towards building a factory in Texas that holds AI servers. Part of it would go towards twenty thousand jobs in the US really focused
on training as well as research and development. Now, our reporting indicates that while this investment is substantial, it likely falls short for the full production shift that this White House really wants to see, though it is worth pointing out twenty four percent of Apple suppliers are based in the US already, the most of any country. Still, well, we'll have to see if it's enough for President Trump to perhaps give some sort of a reprieve when it
does come to the company. We know that the CEO team, Tim Cook, has been lobbying for some sort of carve out here, considering that earlier this year, President Trump had threatened a twenty five percent tariff ed if Apple did not move production to the United States.
Amid all of this, of course, is that threat on Apple exclusively, but also there's threats on high tariff for India, where they've been shifting some of their supply chain to Tyler. As we know, it is incredibly difficult, if not nigh on impossible for them to really bring production of the iPhone to the United States. Do you think that that's starting to curry favor or at least appreciation in the administration.
Right Well, today we saw really an escalation when it did come to India rate. President Trump now posing an additional twenty five percent tariff over India's imports of Russian energy supply, which would bring the tear freight on that country up to fifty percent. They're expected to be stacked on top of each other. That additional rate to go into effect in the next twenty one day, So we'll have to see if there's some sort of negotiation that
happens here. It is clear though that the administration is going to like this investment. The White House is already out touting it because they really want to start to see these funds coming in. And if you look at all the unique deals perhaps that we've gotten from our training partners so far, a lot of them do ultimately have to do with investment funds. And the second thing that I'll also put on your radar is that we are expecting those sector specific tariffs to come down soon.
This administration has said we can see them as soon as next week when it comes to chips. But really important to keep in mind that the Section two thirty two investigations, yes, are into semiconductors, but they're into the entire supply chain, which means that we could really see some wide ranging impacts.
That's far.
One hundred billion dollar extra commitment adds one hundred and twenty billion dollars in terms of market cap to Apple on the day, Tyler Kendall, thank you. Let's check in on other companies now. Earnings Disney lower after the media company reported third quarter revenue actually coming in slightly below expectations but highlighting strength and streaming and the sparks business bugs.
Felix Jullett joins us for more look, they were ever so slightly amiss in terms of general revenue growth of just two percent, But it really seems to be the old school part of the business they let them down.
Yeah, the traditional part of the business in terms of you know, the movie studio, the cable and broadcast channels are all you know, continuing to show decline and that you know has been offside someone by the growth in streaming and parks, which have been very strong.
Felix.
Uh.
Streaming is many parts. But listening to Bob Iiger on the Cool Sports, I just want to recap his position on ESPN because I think it's worth discussion.
Listen to this.
We're building ESPN into the pre eminent digital sports platform with our highly anticipated Director consumer sports offering launching on August twenty first, and there are just announced plans with the NFL that will expand ESPN's programming and content offerings for fans.
August twenty first, not far away.
Like how big a piece of the strategy is sports and streaming and combination?
Oh, a huge part of the strategy. I mean, they want to grow their advertising revenue and streaming. To do that, you need live events. There's nothing bigger in live events than the NFL. This deal with the NFL that they announced today, NFL gets a stake in ESPN and ESPN gets control of some of the NFL's media properties, including the Red Zone NFL Network, and also crucially, we'll get more NFL games as part of this package. That's huge. It's going to help them in terms of growing their
advertising business. And at the same time they announced the deal today with TKOSWWE, the Wrestling Network, they're going to get a bunch of big live events, including in WrestleMania. Again, that too is going to bolster this new ESPN product and get more people watching it at particular times, which will help them with advertisers.
Is there going to be any regulatory concern around this about just the big getting to a bigger in the world of sports.
I mean, yeah, I think that this is going to have to get regulatory approval. As we've seen with Paramount, that can cause a lot of problems in this current environment with the Trump administration, So that is a concern, But I think you know, what they're trying to do is again just build up. You know, they've been talking about this direct to consumer ESPN product for years now. This is a huge launch. It's been a long time in the making and to come out with news that
you're going to have more NFL games, more WWE. I think that's what they're trying to drive the excitement around at the moment.
Felix, you learn when you cover technology earnings in particular, sometimes it's what they don't say that drives stories. And I'm sorry to even ask this, but what's the latest on Bob Eiger?
Like is he going to be there.
Forever and ever infinity or do they have some plans in place for what happens next?
Yeah, I mean, the succession issue with Disney never quite goes away. You know, it's been the focus of investors long time. They bodged it the last time Bob came back. They have to get it right this time. You know, there's been endless speculation about who that's going to be. Looks like the internal candidates are really getting narrowed down. But you know, again, TBD, that's all the next chapter of Disney and they have to really stick the landing this time.
Welcome to our global audience across Bloomberg television and radio. We're joined by AMD CEO Lisa Sue. And it was such an interesting quarter to look back at Data Center in particular CPU strength, not just accelerators, strong AI outlook on accelerators, gaming PC, and then some concern about the future of the China business. But Caroline and I Lisa have talks for quite a while now about AMD as
the best performing chip stock so far this year. I wondered if we start by just asking what in the quarter changed for a MD what the kind of biggest move forward was, do you think.
Yeah, absolutely so. First of all, Ed and Caroline, great to be here with you. We always, you know, look at these things and say, when we have a business where all of our businesses are actually performing extremely well, it's a good it's a good place to be.
So we had a very.
Strong first half of the year, you know, second quarter up thirty two.
Percent year over year.
We're guiding to a third quarter you know, up twenty eight percent.
And underneath that what you see is.
You know, first of all, data center business is doing extremely well. Our server CPUs are continuing to gain share in cloud and in enterprise. One of the things that we're seeing with AI is the AI investments from the largest hyperscalers are actually pulling you know, both GPU and CPU revenue, you.
Know, which is good for us overall.
You know, augentic AI actually requires lots and lots of compute going forward. We're also seeing strength in you know, PCs as well as gaming. Our products are extremely well positioned, whether you're talking about you know, consumer or commercial. And then we're also seeing you know, some improvement in the embedded side of our business as you know, that is also you know, going to I would say, return to
growth in the second half of the year. So we've seen a lot of positive signals over the last ninety days in terms of, you know, what the market needs from computing and sort of the investment and things. You know, there are some questions about China, of course, which you know we can certainly talk about.
Well, let's talk first about the AI accelerator outlook, because actually from analysts to investors, to develop a community, when we say that you're coming on the show, we get questions from all quarters. You had said that the AI accelerator business will grow to the tens of billions, and what I'm kind of seeing is people just want granularity from Lysia a little bit like when does that happen and when does it happen? And you talked about the hyperscalers.
But what's the growth pathway to tens of billions in accelerator revenue?
Yeah, absolutely, ed, So let me give you a few important markers. So what we said is the second half of the year, our growth would be primarily driven in the data center by accelerators. We launched a new product just in June I three fifty five product. It's extremely competitive. We really like how we stack up in terms of total cost of ownership for inferencing and training workloads. Customers
really like that product. That's driving some of our second half growth, and certainly when we talk about our sequential growth into Q three, that's being primarily driven by that accelerator capability.
And now when you.
Extend forward, you know I've said that the AI TAM for accelerators and data center will be over five hundred billion over the next couple of years. You know, we expect to get a large portion of that new accelerator TAM and that's how we get to tens.
Of billions of dollars.
Very key is also, you know, we've accelerated our roadmap and so we are on an annual cadence and next year we'll have yet a new capability with our four hundred series, which will bring full rack level solutions, which will be another giant step forward in terms of capability for you know, AI solutions. So I think that's the roadmap and path for the next couple of years. We're
really excited about the traction. We're getting lots of customer validation saying hey, you're on absolutely the right path, and you know we're making strong progress towards those goals.
Lisa, the granularity there was demanded time and time again on that earning score with analysts was around China though, and I know it's so hard to give because in many ways, as m I threeh eight, it's depending on the licenses from the US government.
How are those discussions going with.
The US government. How quickly do you think they can get through the backlog?
Yeah, Caroline, definitely.
Look, you know, I know people always want precision, and what I will give you is exactly how things are playing out from our standpoint. I think we've seen an
improvement over the last ninety days. You know, ninety days ago, you know, we did not expect to believe to shift to be able to ship to China because of some of the regulations I think this administration, the Department of Commerce, the government has actually been very open to trying to find the right balance between national security and ensuring that we have AI USAI technologies proliferated across the world. So
we think that's a great balance. We now know that we have a number of licenses that are under review. We've been given good indications that those are moving through the review process, and we will certainly inform everyone when the licenses are granted. But given that it's hard to predict exact timing, just given all of the things that are in front of the government at the moment, we thought the right thing to do right now is just say, hey,
let's not include that in the third quarter revenue. But even with that, we're growing twenty eight percent year over year, which is fantastic growth rate. And if you asked me, you know what we've learned in the last ninety days, We've learned that the demand is even stronger in the second half of the year. And we necessarily, you know, thought maybe just a few months ago.
And analysts really cooperated and thought it was right that we should see such caution perhaps and not show up in the numbers. But Lisa, I'm interested in the inventory that you had been very clear about the eight hundred million dollar knock on the fact that you couldn't access China for a while. I know that most of those manufacturing hadn't been complete, but do you think you can unwind that eight hundred million how much you think can you bring that back to bear?
Well, we certainly expect that once licenses are approved, that we will restart our supply chain and get those in place. We do have, you know, a bit of time that it takes to complete those, but we would expect to be able, you know, to ship some of those products as licenses are approved. And you know, again the exact
timing will depend on when licenses are approved. But I again would hope that we don't get caught up in something that I would say is moving actually in the right direction and really see like the overall business is doing extremely well. Right when I look at data center growth, when I look at client and gaming growth, and really the return to growth in the embedded those are the key aspects to really understand about where the business is today.
Lisa.
The final question that we have on China, if I may, is something that we've also discussed quite often with Video and Jensen. One which is the idea that in the interim period you just outlined, China's domestic chip makers have made some progress on their own accelerators. Does a m D make an assessment of that of how performance a comparable Huawei or other Chinese accelerator is relative to them?
I three hundred family.
And of course, I mean, look, it's a very competitive market out there. At the end of the day, everybody wants AI computing, Like AI computing is the foundation for you know, all the great things that we know that AI can add to, you know, businesses and you know, sort of.
The overall capability.
So yes, we're always looking at the competitive environment. That being the case, you know, I think we are well positioned.
Overall.
Our roadmap for the rest of the world is very strong, and we think is just getting stronger as we go forward, and as it relates to China, it's something that we have to work through with the administration, but as I said, we've had very close conversations and we're making good progress there. So from that standpoint, you know, I think the overall
competitiveness of our AI roadmap has never been stronger. And we're excited about what we can deliver across you know, AI GPUs as well as you know, our our CPU franchise and all of the rest of our portfolio.
This is Bloomberg Tech Live on Bloomberg Television and Bloomberg Radio, and we're speaking with AMD CEO Lisa Sue Strong in PC Strong in server particularly CPU. Is that an a m D capturing market share story or is that just a rebound in demand generally story?
Lisa Well, I.
Think it's both.
Ed.
I think the demand is is good. I think the demand patterns are better. But clearly we're very, you know, very competitive with our products. I think we have leadership CPUs in both.
Server and client.
We've shown significant traction in cloud as well as enterprise, and I think going forward you're going to see, you know, enterprise customers want the best solution out there, and that is.
You know, a m D for computing and gaming.
Nisa so Strong. I'm interested into the nuance of pull forward because you said on the call that you didn't see a whole lot of pull forward. Are people trying to get ahead of tarifs and price increases, but did you see any.
You know, very little Caroline.
I think what we look at mostly is not just what we're selling in to customers, but we actually look at what's being sold out at end customers, and what we're seeing being you know, really transferred to end customers is good demand. I mean, people are refreshing their data centers, which is very positive. Right We're in a place where computing is important, and so we're seeing strong refresh cycles
on the data center side. We're seeing strong pull through of our of our solutions in the enterprise in PC, and then from a gaming standpoint, again, we have a very strong product cycle. So you know, there's it's always hard to tell exactly what the impact of the current tariffs are, but I would say that that's the smaller part of the impact on our business. The larger part is just strong products, you know, very good traction from customers.
And looking at a stronger second half.
Of the year, a stronger second half of the year where you take some market share from Nvidia, Lisa, how are you seeing that grow out and the ability to compete with the next ranger chips.
Well, we are very bullish on our overall roadmap capability. I think the second half of the year as a number of customers. You're really you're broadly adopting AMD.
Lisa, I have a question from our audience, if that's okay, a viewer of Bloomberg Tech and as you know, like loads of AMD employees, your peers, technology industry.
People want to hear what you have say. I'm just going to read it to you.
Can Lisa, please explain AMD's winning and gaming consoles. But AI is where the margins are. Now, what's the plan to make a MD indispensable to the next open AI and not just cost effective alternative? I think to invideor is what they're saying well ed?
The best way to say that is for you know, those of you who know us as a company, you know we execute extremely well.
You know, our roadmaps are strong.
We're very excited about all of the progress that we've made.
You know, I three hundred was an excellent product. M I three point fifty is you know, a big increase above that, and then our next generation is also and the key for us, if you look at our history, our history is doing what we say we're going to do, delivering to customers, delivering total cost of ownership and with that, you know, being a great partner, and so from that standpoint, I think you can be very confident that we have a strong roadmap and we're going to.
Execute on it well.
And you know, our largest customers want to have a dependable and good partner.
It's been wonderful spending time with you, Lisa sou Amd CEO. We thank you very much time now for talking tech. First up, soft Bank shares they're actually higher on the news that open Ai is set to sell shares at a five hundred billion dollar valuation insider shares. As a company, of course it has a big investment in but the news reversed an earlier fall in the Japanese company stock after it brought to net income that missed analyst expectations. Meanwhile,
the US has charged two Chinese nationals. We're sending it tens of millions of dollars worth of advanced AI chips to China, violating export restrictions. Now the defendants allegedly sent sensitive technology from Nvidia, including h one hundred AI accelerators. Lawyers for the pair couldn't be immediately located for comment. And this mountain traversing robot dog is causing shares of Chinese robotics companies to climb, but the mechanical dog is
from startup Unitary. China has been showing off its robotics prowess in a lot this year, including with running and kickboxing humanoids and a favorite of yours.
Yeah, coming up, Matt Romberg, CEO of gaming creation platform Unity, going to talk about that company's earnings. We're going to talk more about the mobile gaming space, in particular what the dev community has been really focused on. This is Bloomberg Tech. Welcome back to Bloomberg Tech. I'm taking a look at AMD largely to just recap the conversation we
just had with cly to Sue. The stock came off session lows during the course of that conversation talking about clear demand, particularly from hyperscalers in the AI accelerator market. They do think that they can shift some of that China specific AI accelerated inventory Carrow that they had written down. That's one of the responsors she gave to you. PC demand is very strong and they're taking market share. Was a very clear signal. We'll continue to track it. It's
bouncing around a lot going on. Apple continues to push higher one hundred billion dollars additional investment in US according to the White House later today, we expect to hear more. The stock's now up five and a half percent. That's a big jump. Shopify is up nineteen and a half percent. It's now become Canada's biggest company by market cap. It is taking e commerce market share and absolutely barm storming print from that company. And then super Micro is down
twenty one percent. Simple Story told us that in fiscal twenty six they would get thirty three billion dollars sorry, in sales. They previously told us forty billion. Everyone's going, well, what's going on? You know, it's just not as strong as they had previously told us.
We have more ends.
Yeah, and we've got more big slumps. Actually this time, let's check out snapshares plunging after reporting second quarter sales that fell short of Wall Street. The expectation said, Look, the company blamed a technical issue with its ad buying tools that basically set price points too low. The glitch has now been fixed. But let's break down the numbers of the outlook with jasmin Enberg where poased to welcome
a back VP and principle analyst and eMarketer. This is such a self inflicted wound and the market doesn't seem to be well forgiving them for it.
Yeah, absolutely, I mean it really was a dismal quarter for a SNAP, and even before it reported its earnings, I was saying that it wasn't looking great for the company, and that had less to do with the economic uncertainty and tariffs, which of course it had warned about at the end of Q one, and more to do with foundational structural issues within its AD platform and its ability
to monetize. Now, I obviously could not have predicted that it would have an ad glitch in Q two that would result in the deceleration and growth, but I think that really does point to these longer term, more deeper challenges that it has within its business model. I do think in a different context, investors might have been just a little bit more forgiving, though probably not much more
forgiving because they tend to be with Snap. But you know, STAP hasn't working very hard for quite some time on revamping its AD platform focus really on direct response, and I think they're getting frustrated. They're getting impatient because the results, while sometimes there's progress, it's mostly been inconsistent. And then if you take the larger context of meta and reddits blowout earnings.
For Q two. It makes it really hard.
For Snap to shift responsibility to macro conditions or headwinds and leaves very little room for mistakes.
I mean, well said, why they consistently deliver is daily active users, unless we forget there's almost half a billion of them. But what's interesting is they're trying to move away perhaps some more volatile ad side of it to subscription is that working well.
Snapchat Plus has been and continues to be a bright spot for Snap. And one of the things that that says to me is that while Snap still struggles to roll out features for advertisers that they like and need, they certainly know how to bring features to consumers that
they like and that they're willing to pay for. I do think going forward, diversification of its revenue streams in general is just going to be so much more important for Snap, and Snapchat Plus continues to drive a lot of its revenue growth, especially considering the fact that while its monthly active user base showed really strong signs of progress in terms of going getting toward that one billion dollar or one billion user goal that it has, we saw a lot of weakness in North America, which is
Snap's core market and where it makes most of its money. And that also means then that Snap is going to be more reliant on international markets going forward to monetize via ads, and that's extremely challenging or more challenging because it's harder to make money there. And again, the weakness in North America points to structural problems.
Just real quick, I appreciate what you said about the response investors have to Snap sometimes, like I just always remember, are they going up a lot or down a lot? But that speaks to lack of consistency. Like Meta showed us that all the stuff they've done around AI shaws up the core breading but of business.
Is Snap not experiencing something similar?
Yeah, I mean I think Meta showed us that you can send a lot of money on AI if your core business is doing well, and it truly is. I mean, Meta is a powerhouse. It continues to deliver on efficiency and effectiveness for advertisers. You know, Snap has been playing catch up to Meta in many ways, including in AI. You know, it doesn't have the same scale and resources that Meta has to build this powerhouse AI driven ad business,
but it certainly needs to do more work there. One thing I will say for Snap though, is you know, we saw an increase in SMB advertising small and medium sized businesses, and I do think that that is, you know, a direct result of its investments in AI in its ad platform, because these advertisers are generally drawn to places where it's easy to advertise, and that's you know, one of the impacts that AI has on advertising and these platforms.
Jasmine Enberg from me Marketer, thank you so much for joining us on the program. Let's stick with earnings and get out to gaming. Shares of Unity software actually now lower by almost nine percent. Blinking and miss it kind of situation. This morning, Caro, the stock had spiked after the company reported better than expected second quarter earnings.
Something's changed.
Let's talk it through with Unity CEO Matt Brumberg.
Well, help me.
There was a good response. You beat expectations. There's particular focus for you guys in the mobile gaming market. The stock is sort of reverse direction, is down eight percent.
Matt.
You'll read on that. Please.
Yeah, you know we're not stock investors or business builders, so you know, my answer to that is a little bit of who knows what we're really focused on is
building or growing and during business. And I think that when we look back on the second quarter twenty twenty five, the history is going to show that it was an inflection point for our turnaround, sort of the time when accelerated product development and delivering more for customers started to show up in a really meaningful way in our business.
And I think that's basically where we are.
I really appreciate having you on the show. I take a lot of interest in Unity because we recently have roadblocks. CEO David Zooki on the show of their own Earnings is probably more analogous in the gaming space to put you nearer to a roadblock. Maybe you disagree, but mobile gaming right now is a huge focus. How is that a driver for your business and a prioritype It's.
The biggest priority there is.
We're effectively the operating system for the mobile gaming business. Globally, seventy percent of the mobile games in the world are built on Unity, and eighty five of the top one hundred advertisers mobile game advertisers advertise with us. So what we've really seen in the last year or so of this turnaround is that when we make fundamental investments in delivering better product for that set of customers for the
mobile gaming business. That our business is lifting, and we've really seen that over the year, and we're actually really excited about investor reaction over the course of the year as well.
I'm going to go back to perhaps the stock reaction and what our own bloombag intelligence analysts have been saying that and forgive me, it's not always bathed in positivity because they say, look, this is a cuerential decline of your Create segment in the next quarter that suggests muted adoption of your Unity six offering. Just describe that. Is that something you're seeing seeing, Jenna.
I started, I think that's just incorrect.
UNI six is the fast most the fastest adoption of any version of you we've ever seen.
It's the most stable, it's the most performant. So we've been really really pleased by that.
Again, you're drawing into wondering about the stock I would just tell you it's much more likely to be the one hundred plus percent run up over the past year in anticipation what are sharply better results, and again it's a kind of inflection point in our business.
I would guess that has some more to do with those.
Dynams love that context, Matt, give us the context of the ad space, and you're encroaching a bit more on app love in space for example, how do you compete? How you seeing your self take market share or indeed app love and still being a really strong competitor.
Yeah, we don't really think about market share in this business. The way this business works is performance based. Mobile advertisers buy performance and they buy against their rows, their return on investment targets, and they will buy infinitely across that efficient frontier.
So as we deliver.
More value, customers will spend more money with us, and our business will grow.
And that's what's happening. This is a big.
Competitive space with some of the largest, most competitive players in the world operating in it, and we're really excited about our ability to compete and not just now but in the future.
I'd love to end by talking just very quickly about developers and the creator community. Like one of the big issues in the end market the app store, Apple or Google is revenue split and just what you're doing to incentivize the creators, but also like bring everyone with you if you're growing at that click.
Yeah.
I mean, we are the tools that those folks use to build their experiences and then operate those business for years and years in life service. So when we deliver better, more effective tools, for example, to your point, to help them monetize commerce in a native way, for example, and help them acquire users more efficiently, and that business grows.
So we're a partner in that growth.
With them at Bromberg, CEO of Unity, it's great to have some time with you.
Bloomberg's reporting that open ai is in talks for a potential share sale for current and former employees that would put the company at a five hundred billion dollar valuation.
That's the chart right there.
The move would boost open AI's price tag, according to sources, which is previously at three.
Hundred billion dollars.
Bloomberg's Shringafari broke the story and it's with us now. The mechanism actually doesn't even really matter. It's an insider share sale that sets this valuation of five hundred billion dollars. But it feels like just yesterday that we broke the story on the last three hundred billion dollar valuation. Tell us about the jump, tell us about what we're hearing from sources is going on.
Yeah, I mean it's a significant jump in valuation, more than two thirds of the last price tag, you know, the last round that we reported on finalized in March, led by soft Bank. Since then, we've seen strong user and revenue growth as we've reported, but again, this price tag would put open a eye in a new league as one of the most highly valued private companies out there.
If this sale were to go.
Through, extraordinary. How it eclipses even the owner of TikTok over in China and well ahead of close second is sort of SpaceX here in the US. What's interesting is we're getting so many updates to the product itself for the world as well, Shoen. We're seeing how they're getting in offering chatchipt to federal offerings with just one dollar. They're trying to open source a little bit more. Does this just build up the idea that this is going to be the winner?
I think it's still too early to say in the AGI race, who, if anyone, will be the definitive winner, but I will say this is an This has always been a rapidly moving field, and I think the past few months have been especially fast. We are seeing new releases from open Ai this week. We have the open Source model that just dropped, and it's widely expected that their more major model update, GPT five is coming soon.
On top of that, you know, if you look to the left and right, we have Anthropic also released an update to its model, also in talks to have a new round of funding that would more than double their past valuation from just earlier this year.
So I think this is.
Really a sign that the ai market continues to grow, and it does raise questions about are these valuations justified? And I think that depends on how bullish you are on the genai market as a whole.
Sharen, reading your report, there's a lot of detail here. I mean, for one important point is we understand why open ai is doing this right with the secondary The timing is because the talent wars and Sam Altman has this workforce that he has to keep happy.
Right, So, as we reported, one of the reasons why Opening Eye wants to do this secondary share cal wight makes sense is that it gives employees an opportunity to essentially cash out. If you're working at Meta, which is aggressively By the way, there's this fierce talent war going on right now right and Meta has poached several prominent open ai employees if they want to retain these employees.
You know, people want to be able to liquidate their shares and this provides current informer employees a potential way to do that.
Sharan KAfari, thanks so much for the update on open Ai. Now let's get back to the public markets where Uber is already out with its earnings, but after the bell we get plenty more Lyft, Door, Dash, Airbnb. There is one woman who covers them all, Natalie Lung. You've got a busy day. Let's talk about Uber because it's actually trading lower. Is that more about how father shares had run into this or the worry about sort of the spending or capex on autonomous here.
It's a little bit of both. Definitely, there's a lot of excitement going into the earnings today, which was mostly a beat, But there was a small miss in the core ride share business by Uber, and that was really offset by the strong performance of the delivery units.
So there's a lot for us to look at.
In terms of what it means for consumer spending and investors. Was also excited to hear more about the autonomous strategy in the company.
It's a twenty four hour period that's like the super Bowl for Natalie Lung. In the gig economy and at based tech company space, you're super busy, as Karen said, But what always happens You get Uber and then you get Lyft. And there's obviously some read across. What are the expectations for the smaller of the two.
For Lift, they're still expected to post double digit growth in the key metric of gross bookings and for this quarter in particular, we want to look at the third quarter outlook because it's the first time they're including the free Now business, which they completed the acquisition last week, and that will add business from new European markets such as UK and Germany. So that is something of interest for me.
Today doing in Europe and Germany and more broadly expansion their DoorDash has been making a bit of m and a over in the UK. It shares been on a tear this year, up fifty three percent. Where do we expect numbers for that company to go?
Yeah. Similarly, on the back of Uber's very strong delivery results, DoorDash is also expected to post nearly twenty percent growth on that top line as well. Their delivery deal has not closed yet, so might not be seeing those results there yet, but pretty strong spending on the US side is expected.
Let's complete the grand slam, the complete sweep and do Airbnb.
What are you looking for in that name?
Yeah, it's again. It's a first quarter where we'll see results from their newly relaunched Experiences and a Lacarte services business, which Branchaskey has said would add one billion in analyzed revenue for the company. So we will see the first results from there, as well as a broader sentiment on US travel.
One question I'd have is how does Natalie Lung do all of those earnings at the same time. Bloomberg's Natalie Lung busy evening for you ahead, Thank you very much.
Okay.
Apple shares are on the screen, and we're pushing towards session highs, up almost six percent now following the announcement that the White House says the iPhone maker will invest an additional one hundred billion dollars in the United States, Bloomberg's senior executive editor for Tech, Tom.
Jarles, is here.
It's a big number in isolation, sort of but it's also got to be taken in aggregate.
Absolutely.
Look, Apple spends a lot on these types of initiatives all the time. They have already been planning to spend hundreds of billions of dollars in the coming years. The Trump administration likes big, round, big honkin numbers, right, and this is a way for them to say, we've scored a victory. We are bringing manufacturing back to the United States. On Apple's part, making these pledges, throwing these numbers out there, and again, these are plans that this is money that
they do plan to spend. This is a good way for them to as as BI analysts have said so eloquently, softened dampen Trump's ire because they still do have a lot of their supply chain outside of the United States. Trump administration wants to say big US corporations are bringing
manufacturing back to the United States. This is the question that we need to ask, and we will be asking in the coming months and weeks, and that is how much of real production of the iPhone, how much of Apple's high end products is actually going to come to the United States versus China, versus India. That's the real question, Or is it stuff around the edges, And that's a question that we're going to be asking Apple to and a lot of other people are going to be asking Apple in the coming weeks.
Yeah, because Tom, the five hundred billion thus far that had already been announced, well, that was more about servers, that was actually about training, and that was in some ways we saw a little bit of the chunk of change. I think it was about five million being allocated to actually some rare earths as well. What are we actually anticipating as to how much, if any, can really be for the iPhone?
Right?
And some of this is also them committing to purchasing more from US suppliers. Again, this is part of their supply chain. They need these parts, they will be spending this, But will this be creating lots of jobs? Will people be manufacturing assembling these products in the US? Time will tell. Again, these companies like to they've already been planning to spend a lot of money and they're putting lots of big round numbers around them. And again it's an opportunity for
the Trump administration to claim victory. But if you're talking about server farms, if you're talking about buying from US manufacturers. If you're talking about training facilities, there's a big delta between that and actually putting together, piecing together these high end devices and moving that supply chain out of India and out of China. Look, it's in Apple's interest to
diversify their supply chain. No one is doubting that. So much of it is relying on China and that really bit them and a lot of other people, you know where during the pandemic and they really need to kind of diversify away from that.
President Trump doesn't particularly what I'm only diversifying into India. Bloomberg's Tom Jiles, great to have you. Thank you for the analysis that does it even this edition of Blomberg Tech and what a show.
Yeah, and jokes aside, like it's a really heavy earnings period. Still we move from the megacaps, but there's a lot of names giving numbers. We're learning a lot about the world of technology. Recap it on the podcast. You know where to find it on the Bloomberg terminal, as well as online on Apple, Spotify and iHeart from San Francisco and.
New York City. This is Bloomberg Tech.