Apple’s Big AI, Siri and Software Launch

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This is Bloomberg Tech coming up all eyes on apples developer conferences. The Iphonemaker is set to unveil a revamped series. We'll be live from Kupertino plus in video and sk Heinez they partner up on next generation AI memory chips with a multi year deal and SpaceX gets ready to go public.

Will discuss what to.

Expect from this week's record breaking IPO. But at the moment we turn our attention to what the markets are up to and look a reprieve from the sell off we saw on Friday.

Now we're having the best day in.

About a month for the Nastak one hundred, but remember Friday, we had the worst day in a year for this benchmark, as technology just saw a real sell off, anxiety that maybe we'd run too far, too fast, particularly in the world of hardware and chips. Well, today we've bounced back on the socks. We're up six point four percent, but that's just clawing back some of the losses we saw on Friday. After its benchmark had its worst day since

So let's talk about what.

We therefore could see in terms of a refueling on this stock when they start to infuse AI a little bit better. Bloomberg Apple, and of course Consumer Tech Managing editor Mark German is alongside our own ed Ludlower adds over in Kubatino, we're luckily to go into La for our man of the moment. When it comes to all Apple reporting as well, Mark Gum and we start with you. Look, you've been reporting intricately on what we're going to be getting in terms of Siri.

Is it going to live up to the hype?

I think if you look at the features from AI standpoint on Apple devices right now, you basically have two subsets of features. You have Apple Intelligence, which are the on device models, the cloud models, things like writing tools, things like more advanced notifications, and then you have Siri. I would say both of those buckets are subpar compared

The headline mark's going to be the standalone app right where Siri goes from a place where you have a feature a single voice command gives a single result to a multi step task within an app that will follow you from iOS to mac os, etc. Give us the specifics that you've been reporting on how this revamp Seri will work in practice.

Yeah, I mean, I think more broadly, it's Siri moving from a voice assistant where you can ask it questions and get an answer to being an always on copilot

My interact with Bloombo's Mark German are about to get a whole more exciting. Digitally speaking, bluebos Mark German leads our coverage of Apple and also consumer technology. Let's go deeper.

I think it's all about the value that is pertinent to me as a consumer, and so I think what the app does, as Apple is so focused on devices, allow me to take the experience I have with see across the multiple devices that I have. And Apple is quite unique because at the end of the day, they are the manufacturer that has consumers that own so many different devices. So they must be catering very carefully to that. I don't want to feel like I'm getting a different

I wrote about that today in the Tech in depth about this idea that whatever's going on with the smartphone market, even if Apple absolutely nails this, it won't change the situation this year. Memory pricing is basically Android that's weighing on the smartphone market anyway. But there is this idea that the next phase of Siri follows me in the installed device space, from my coos to my macOS. How important is that?

It's very important because I think that is what is going to be physically lock customers in. And I know that there's always a bit of a cringe when we say lock because when we think about regulators and so we'll be interesting to see what happens to see her in Europe as a point as a thought, but I do think that having the ability to have my experience carry across all my devices is what consumers at the end of the day one, because that's the true value.

The next phase of Siri also longer term, either does or doesn't drive switches. So one thing that people keep saying to me is there's a lack of education about how an everyday person might use Siri anyway. You know, they might be an Android user and say, okay, wow, I like the look of Siri, but what do you see out in the world.

I really struggle to think our AI as a as a switcher mechanism because people are still lockingto an ecosystem, and I think that if you're looking at the models one week, one is ahead and the other one the following week, it's pretty much parity, and it will boil down to how does it show up within the device. Apple has always been really careful of putting attention where

Apple shares up two and a half percent in the moment and are very close to overtaking Alphabet, the parent of Google, is the best performing mag seven stock this year.

You know last year this time last year we were talking about with consumers are not walking into a store to asking for AI. I think it's still like that, but consumers are already placing their preference in what chatbot agent, whatever you want to call it, they use every day. So there's definitely more pressure on Apple to deliver something that is comparable to chat, ubt or cloud.

And in a year's time, you and I can sit down again and ask whether a multi step task version of Siri that has a agentic capability moves lead or Caroline and mis and ac mil a AC principle. Analyst, President of Creative strategies, has such grasp on what's happening in consumer technology.

Character she so does the perfect person to have out

More on that next, more on what these.

Markets are up to look Jensen warn himself saying, maybe you should start buying the dip. Well, we're up two and a half percent if people buy the Dipper, the.

NASA one hundred.

We sort of hard the worst day in a year on Friday today the best day in a month.

This is a prem bag tech in Video and sk Heinex.

They are partnering on next generation AI memory chips. They're deepening ties, as is the South Korean chip maker really is battling with Well Samsung in its home market in this booming memory focus. Now the companies have signed a multi year deal spanning chip design and manufacturing for more prenom Vexine King, who covers all things semiconductors, joins us.

I mean from a technical perspective, the way that memory interacts with these processes that in video makes is becoming increasingly important. If you want performance to improve, then that interface, that way that that information gets conveyed has to get better at the rate at which the processor gets better. So it makes sense that they'll start talking to each other at an early point on the technical side of things. And that's what we think is going on in terms

Tactical moves now, there's moves in the market more broadly when you look at the run up that we saw after a sell off on Friday, but in particular I'm looking at Intel today in now it seems as though there's a reporting coming out of the information that maybe Intel could be a manufacturer of choice going forward for TPUs, for alphabets, chips. How much are we seeing these companies just having to rely on other manufacturing partners in TSMC, Yeah.

I mean, as we reported last week, you'll remember de Wi Wooh's story that TSMC is doing its best to add as much capacity as it possibly can, but really isn't keeping up with the booming demand on the leading edge. So of course, if you're Google, if you're anybody, you're you're looking at potential alternatives. Intel has said, hey, we're going to be great again. We're going to have manufacturing

Take us back to Samsung, how much of it is a headache? If it feels though Jensen is sort of anointing sk Heinex in this way.

Well, there are a couple of things. I mean, Samsung is the largest memory chip maker, They've always dominated this market, they have the largest capacity. But Skhynix was smart in terms of their early shift towards focusing on this market on AI basically related memory, and so therefore it make sense for Jensen to kind of bat his eyelids at SKA to get them to continue to sort of advance the art and to force some song to respond to

Batting his eyelids, You've always got the best terms of phrase, Ian King, Thank you so much. Meanwhile, let's stay in

A forty two percent collapse in a triple.

Leverage career, etf fears of a deeper down term they were spreading far. We'll return to that story in a moment. But another story we're watching is Son might win freed. He's taking his bed for freedom directly to the White House. Do you remember him, the FTX co founder formally applied for a presidential pardon more than two years after being convicted any multi billion dollar collapse of his crypto empire.

Yes, he was sentenced to twenty five years in prison. But over the past eighteen months or so, we've seen him launch this pretty aggressive campaign to reshape his public image and to get in the good graces of the president. He's been using a social media platform interviews with conservative media outlets to really push his arguments for why he deserves clemency and say things that are favorable to the president.

Okay, what therefore could be landing if a tool We've heard any discussion around the White House administration that it might be allowing SBF to do that, Well, it was quite the opposite.

The President said in an interview with The New Times in January that he had no plans to pardon SBF. Yet SBF has a bitted an application anyway. And I think a lot of people are getting inspiration from Trump's embrace.

Of his clemency authority.

So he's issued more than sixteen hundred grants of clemency since the start of his second terms, and sixteen hundred to thright. And many of those are white collar defendants and figures in the crypto industry like Sam Bankman Freed.

And some of those are going.

Through the formal channels through the Department of Justice, but others are going through less traditional channels, hiring lawyers and lobbyists and consultants who have ties to Trump's inner circle to try and get their cases heard and in front of the White House. So what we're seeing with Sam, he's making these arguments, pointing out the sense of injustice he feels, but also trying to remake his.

Public image a little bit.

We'll see how this one rings out in the White House today. We thank you very much, indeed, but he makes Evbany Morrison on all things, Sam aguan Fried look Aside from FTX, let's look at what shares a Bitcoin

Keep on buying bitcoin.

But they are back buying today and that's giving some confidence back to the market. We're up three and a half percent as we see strategy that artist formerly known

This is Bloomberg.

Techs Elon Musk wants to build the infrastructure for AI in space and he's asking investors to help pay for the rocket, satellite and now AI company wants to raise around seventy five billion dollars in what will be the largest IPO in history.

Spacexs are is probably our greatest commercial space company hands down.

It will enable the next iteration of what we want to see as the space industry continues to grow.

This isn't just a space story anymore. After folding in Musk's AI startup Xai earlier this year, investors buying into SpaceX are also buying into the future potential of grock AI models and Musk's vision for massive computing infrastructure. That ambition comes with a hefty price tag. New filing shows SpaceX's AI business, as in XAI, lost nearly six billion dollars last year and billions at the start of this year as money poured into computing power and infrastructure to

What people need to realize about this company is it's the It isn't just a little bit of ahead of the entire launch industry on planet Earth. It's orders of magnitude ahead.

And now Wall Street once in Goldman, Sachs, Morgan, Stanley and JP Morgan leading more than twenty banks working on the offering, and Musk negotiated record low fees, But the IPO also raises big questions like whether investors are comfortable bedding not just on must original vision, but making humanity a multiplanetary species and getting to Mars, but on a future combining rockets, AI, and social media into one sprawling empire.

And so what we're buying is the next you know, the global economy, you know, two doto and three dot zero as we look at buying into into SpaceX.

If that happens, SpaceX could redefine what the modern public company looks like on Earth and in space.

Let's get more what to expect this week with Bloomberg's IPA reporter Bailey Lipschualtz, who might already feel a bit exhausted to be honest, And every Thursday is sort of when we understand its technical kind of price. Fridays when it's going to trade. Is there a sense of the amount of demand for this right now?

We already reported on Friday it was oversubscribed. What that really just means is they've already corralled more than seventy five billion dollars of orders.

So kind of mixed feelings.

I talk to some people and they say, well, that's obvious these Normally this is a deal, they kind of comes together quite quickly. Skeptics are like, well, why isn't it three or four times over subscribe already? That's where a normal deal would be. You got to keep in mind, it's a seventy five billion dollar deal. So the fact that right now there's well north of seventy five billion dollars of orders from institutions at least gives you some sense of kind of what the next few days will

Let's talk about what the decision was to fast track for some NASA Russell not for the S and P five hundred, and does.

That impact the level of demand in anyway? I think it impacts the expectation.

The big thing we reported and kind of broke out on Friday in the wake of that SMP news was not only does this mean the timeframe will not be truncated to six months versus twelve months as of now the s and P five hundred is holding kind of pat on the company needing to be net income positive. What that really does mean is, at least according to these sales side notes we've been able to get our hands on, that's something that might not take place until

Aly Lipschaltz, as I say, racing for this week. Meanwhile, we want to bring you some other breaking news across the Bloomberg terminal and the moment. The leader of Israel has been saying he's going to hold a press conference, and here comes.

Some other news out of it.

He's ready Prime Minister and Lettinyahu's saying that Israel is holding fire in Iran for now, but he's told President Trump, then Israel has a full right to self defense as we currently speak. Look, Iran has ended its current strikes against Israel, we understand according to FARS reporting after both nations earlier traded attacks.

We'll keep you abreast of what's happening there.

But coming up, we return to tech and we're going to be speaking to Paul Hudson, a software developer and creator of.

Hacking with Swift.

He's here in Coopertino with us as all eyes on WWDC. The developers take on the Apple event, what this means for Siri, what this means for foldable phones, what this means for developers and for your use.

Of this technology going forward. This is Bloomberg Tech.

With respect to the stock price, everybody should be very excited they can now buy stock at a cheaper price. And it's absolutely true that the future of AI is very bright. It is completely it is a foregun conclusion that AI will be infrastructure for the world.

Jensen Wong, CEO of Nvidia, there welcome back to Bloomberg Tech, and of course he was addressing the selloff that we've seen into Asian trading this morning. He was over in Seaul but today the bounce back is real. Clearly, he says, by the dip and the market listens, we're up two

Let's talk about the anxiety.

What's pushing through the market, Semiconductor on AI, infrastructure, Marcus Primus round Vastellika joins us now and look, is this just a typical bounce back after some.

Fears and loathing built in on Friday?

I think there's a good portion of that. In today's trading, I saw a lot of people talking about we were really overdue for a pullback, especially in the semiconductor sector, which has been so strong this year. I believe at one point it had nearly doubled best year since nineteen ninety nine, if I'm not wrong, so I think a lot of people were really saying this kind of momentum is really unsustainable. So it's not surprising to see a

It's notable that actually deals are still coming thick and fast.

Now.

We're also hearing of moves being made by Amazon and deal thinking driving up Corning shares seven percent at one point, and they've signed.

A multi billion dollar agreement.

To supply optical fiber cable connectivity solutions. That really this is still a story of picks and shovels of ar infrastructure of the build.

Out right and absolutely, and I think most people agree that there's just not enough supply on the market to meet all of this demand, which is something that speaks to the idea that we're going to continue seeing this kind of growth and demand over a longer term period. People are thinking that if you look at some of the memory and storage companies, which are another real momentum area of the market this year, they should continue to

Man, Plastelica, He's always telling us about those trends. We

Yeah, Apple's up two percent ahead of WWDC and WWDC is the Developers conference. This is a conversation around software. Paul Hudson's a software developer also the founder and creator of Hacking with swift, but basically is a place where you train people to go and develop apps for the Apple ecosystem. Simple as that. Let's start with this, does Siri become a platform right to discuss?

Well, well, exactly, I'll take a commercial I needs so ideally, what helps you today is ways us to expose so much of our apps data directly to Siri. So Rana saying oh hey, siriy do this behind the scenes for developers, we provide data too Siri, and it's intelligently. Apple Intelligence takes care of four of us and talks to users and handles that integration together for us. That's the kind of dream for today.

Hopefully.

The point from Apple's perspective is that Siri becomes genuinely useful.

Yes, I'll take that, Yes, even smarter.

You know, it goes from a place where it is a feature single voice prompt own mum, bone mum to multi step tasks. When you're building applications for iOS mac os, what are the factors and considerations around how good or not Siri is actually right?

So right now, as you'll know, Seal will often say I didn't understand that, or could you repeat that? Or which bedroom lights do you mean, we kind of want to bypass that and get to things that you just care about. But there are fifty different ways users can ask for the same thing. We don't want to worry about that. That's kind of Apple's problem to figure out, and so hopefully they can expose some great APIs today. We feed with our data, feed with our code behind the scenes.

Privacy is interesting, right. The Bloomberg reporting is that it is Google's Gemini. Yeah, in part, that is the model underpinning this new iteration of sery. What are the considerations around that for you in your community?

It's obviously critical for us. It's Apple's long standing branding thing is privacy is Apple, and we all buy into that too. We're all behind that one hundred percent of the way. Last year's big announcement for AI from Apple was on device fully private AI epic.

We went wild for that.

So this year, can it be powered by Apple's private cloud compute, which is genuinely research level breakthrough stuff for handling private AI? Is it that or is it somewhere in Google's headquarters at the google Plex. We're gonna find out.

So if you would prefer the former, the one hundred percent, and why is that better for a developer?

It's not trust Google, but I definitely trust Apple. I see, I definitely trust Apple to take care of users privacy first. And for years we all believe in to the same thing. That's our first port of call. It'll be done by them, privately, by them, owned by them, maybe Google's hardware, perhaps Google's Gemini, but hosted by Apple would be the dream. We're going to find out.

Reading the Bloomberg reporting that the thing that resonates with me is that Siri is across os. So if I you know, we have a standalone Sirie app, that's one of the headlines. But I start a project, right, not just a single to us at a project on my iPhone. It can carry over to the MacBook. Is that a factor in when you are a developer for either iOS or mac ows, So now you're more capable of going across the suite.

So from a developer's perspective, nearly all the money is still making iPhone apps interesting, and I think Apple would rather see a wider spread. Maco West Watch ostvs Visions as well, and so if they can blur those lines even more, it'd be great. I mean, they have these things like the Universal Control where your iPad and your Mac control by the same mouse cursor. It's done something,

What do you make of John Turners, who is a hardware guy historically?

Yeah, yeah, he's already already a massive celebrity. People are lining up for their John Selby's already. But you mean here in yeah now the last already. Yes, there was a Student Challenge winners meeting John Turners and they were all super psyche. They've had the John Turner's signatures and the badgers and stuff, so he's already superstar. I think it'd be swamp to do with more people. Look, Isy Hardware, Yes is Apple hardware. Yes, they're a hardware company, but

Let's send with something a little fun. This will be the year where we get the OS year iOS twenty seven. Right at OS twenty seven, Yeah, is that helpful naming for you.

Oh for sure.

Yeah, it makes it much easier my perspective. You can say you want to have OS twenty or whatever, and it's fine. I do hope we're going to see a mac OS name still, like you know Tahoe right now or Big sur A similar as rumors it might go away. Everyone enjoys that's fun. They have the crack marketing team Macaws, Weed or whatever, right and so hopefully we'll see a carry on.

I guess we'll find out Paul Hudson, software developer in the Apple ecosystem, but also of course the creator and founder of Hacking with Swift character.

Great conversation as always.

And meanwhile, we're taking it up and back to San Francisco, ED.

This is room beg tech. San Francisco's Kind Adventures.

Well, let's raised three hundred and fifty five million dollars in new funding, the latest deep tech robotics focused funds That kindd was early into the AI market. Remember back in twenty twenty two, a two hundred million dollar fund has now become a one billion dollar gross fair market value as of June twenty twenty sixth. The fresh capital now is coming as a firm's previous vintage has.

Hit the top one percent of its class. Let's get to San Francisco. Let's get to kind of venures.

Managing partner and founder Steve Jang, congrat Steve. Like you were an angel in Uber, you're still a man who thinks about being very.

Early in companies.

How is that going to look with this new raising of funds?

How early do you have to be in this market environment?

Yes, and thanks for having me back on Bloomberg. Great to see you. You know, early stage feels sometimes like a dwindling breed in this day and age of huge late stage pre IPO rounds. But we think it's absolutely not only still important, but actually even more important in this day and age of really fast growth and even

Zero to one and now we get the ones, and now we get the hundreds and the billions and the trillions. When we're thinking of SpaceX, which is also an AI company, when we think of what's coming in terms of anthropic and open AI, what does that mean for some of your portfolio companies, particularly when we've got a Perplexity for example, which immittedly at the beginning we were thinking was was one of those sort of like frontier models, But how are they thinking about this moment?

Sure, I think Perplexities transition is really telling of a lot of other companies in the space, like Cursor. You have frontier labs that are slowly moving into the application layer of AI, but also dealing with the compute constraints that they have today. I think on the demand side, which we're seeing booming right now. Demand is far outstripping supply on the data center and GPU compute side, and

So we can see where the focus is going.

Because we're only twenty twenty two and you went all in on AI. You're continuing to do it this latest round of funding. But it's interesting that I think of you as having.

Success from an IPO perspective, like from angel in Uber, to exit from combat is to exit when we think of Reddit and others, but also you've had success in M and A. Is that still going to be a playbook when we think of PLAAI for example, Yes.

I think what we're going to see over the next years a year or so is that we're going to have an IPO market with SpaceX and anthropic and open AI and data breaks really open up. But what we're also going to see is that a lot of these public companies are going to be very inquisitive, right And obviously, as an early stage investor, we want our companies to go all the way, stay independent, be founder led, and

Now.

You talk a lot about guiding and how you've been doing that for a long time and a lot of these big businesses is that what gets you in at the check level at the moment, because it feels with these megafunds who are raising billions and then coming down to want to pick out at the seed level too, how do you manage to get in and keep the hustle and the muscle.

Sure, you know, we think that early stage investing is very different from all other stages as a group in venture capital, and the reason why is that we're investing in founders first, and we're investing in a product vision. They may not even have a product det when we actually invest, and so we're helping them with product development, technology roadmap, building a team. All of these things are about getting to that first customer, that first traction and revenue.

Steve, it's great to catch up congratulations on the new funds. We're excited to see where you put them to work.

You likely have heard of it by now.

It's officially in marching towards a us IPO at the parent company of digital applications like Vimeo, like we Transfer. It's commanded a fourteen and a half billion dollar valuation in twenty twenty five.

Now, according to its.

Filing Monday, the company banked over twenty seven point five million dollars in net income just for the first quarter. Coming up, we're going to go back to Copatino discussed with the co founders of Temo and Inclusive Planning app explicitly Magtech.

Live at Apple Park Cooper Tino. It is Apple WDC, and I still want to get more of the developer's perspective about what Apple being good AI means, about why a revamped sery is important. We're going to speak to TMO. In fact, we're going to speak to Melissa Ensori, CPO of Timo, one of the co founders, Ellen Larsan Olum, co founder and CEO of Temo, also iPhone App of the Year twenty twenty five. Great timing to have you

I think the way we always look at it is that we really are super excited about what Apple will be launching and announcing because that can help us support our users in what we actually want and what we basically really want to achieve our users is to take this cognitive load out of planning, make it feel more effortless, make it feel smart. And I believe that a lot of the updates that we are hoping to see could be able to sort of help us achieving that mission.

We can get into some of those very soon. Melissa, Let's go over the bit basics of TEMO. What is it for, who is it used by? And what I guess is your core competence in building it out.

So like Visual Planning App, where we have built AI into the product to support our users in making planning more smart and make it more adjustable. To the daily plans in real life.

The way that we have reported about what's coming with Siri, Helen is it goes from being single voice command with a single response to multi step task, you know, kind of similar to some of the things that the Temo is already doing. Do you see that as being maybe people use Syria instead of Temo or is there a kind of you talked a second ago about the traffic being driven to Temo. How do you see that happening?

I see that it's a very good like. What we also really like about integrating a lot with Apple technologies is that you can support the user sort of throughout the OS, so you don't necessarily have to go into the app to get the support you need, but you can actually maybe just speak to Siri, you can use shortcuts, you can use a lot of the sort of entire OS to interact with your favorite products and your favorite apps.

Timo has a very interesting user base. Melissa, how involved are Apple in that in the idea and talk a little bit as well. About within the community of users, how the app is designed for various neurodiverse.

Its users, so how Apple is involved in like working with Apple.

I mean, we love working with Apple.

I think Apple technology is also supporting a lot of like accessibility features throughout the system and that we have also used some of those in our app.

And yeah, so I think.

What we also really like is Apple has a strong fo focus on accessibility, and we really try to focus on the more sort of invisible disabilities you can say, or some of the things that it's not so clear that, for example, you need more organization and structure because your brain works in a different way that the norm, you

Path of just really quick you iPhone appter the year twenty five, big pitch of the new phase of sery is it follows you iOS to mac os. Does that open things up for you.

It definitely does.

I think it's also very much about reaching the users where they are, if it's on the phone.

If it's on your computer.

It's about getting the support you need throughout the day where you need it best. And I think Apple has a super strong focus on that as well.

So that's super exciting.

What do you want to hear most in this keynote? What is the thing that brings you here today? What do you want to hear?

I think some like super excited about some announcements on Apple Intelligence back to sort of we really believe there's a strong opportunity there to make that sort of smart planning, make it feel super effortless building this little personal assistant basically that we want to build with Timo that just understands everything about you and can support you in the best possible way.

Yea, Melissa Vertza, Sorry Assari, co founder CPO, Temo, Helen Last and Nolam CEO the co founder Timo twenty twenty Fine iPhone after the year.

Caroc had a great conversation ed doing such great work over and Koubatino, We thank you and you've got a long day ahead of you with Apple announcements. But that does it for this edition of Bloomberg Tech. And of course all eyes are also on the SpaceX IPO. You know that well and true for this week, which we learn is said to.

Be quote well oversubscribed.

Now that's according to sources who say the company plans on closing IPO books this Wednesday.

Post close.

We'll keep beating that drum until the IPO day. Of course, it starts training on Friday, and keep you posted all the latest as it prices out on Thursday. Now, don't forget to check out our podcast. You can find it on the terminal as well as online on Apple, Spotify, and iHeart. Let's recheck back on these markets because we are seeing a by the dip mentality across the Nasdaq one hundred across chips, in particular the socks bouncing back after Friday's really ugly sell off. It was the worst