Apple's Chip Partnership, Sky High Valuation for SpaceX

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The Heart where Innovation, money and power. Collie in Silicon Valley, nbon This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

Live from New York. This is Bloomberg Technology. Coming up.

Apple is developing an AI server chip, according to reports, and it's doing it all. Broadcom details this hour, plus the valuation of SpaceX goes to new heights, reaching three hundred and fifty billion dollars after an insider deal, and Nvidia, AMD and Intel invest in a startup bringing light to chips. We sit down with the CEO later this hour, but

Is this the way that we should be trading it?

Good morning, There's certainly a lot of excitement and AI has transformed a lot.

Now the.

Trouble with China and VideA happens to be on the cross here is it's not about Nvidia, it's not even about the US. It's all about China. It's a little bit of a noise. 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 over AI is no longer really a dream as it had been twenty twenty three

But when you've had more than one hundred percent gain in a name like in Video over course of twenty twenty four, 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 on?

Well, you know, so some of this is about the technames, some of it is about relative VALUEUA. Right, So the question really in our minds as asset allocators is where would assets go if we take a look at the global economy and other areas of the global markets as well as some of the old economy stock names here, even the fundamentals don't look as exciting, and they're not the ones that are driving innovation, and so it's hard to get excited about other areas.

So it you know, you could see.

A lot of US is still driving into tech names. The other thing, one more thing is a lot of the political changes. I mean, Lena Khan, it looks like she is out coming in as Andrew Ferguson. A lot of the hurdles that happened to be there in not only the M and 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 worrying 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 particular name, I think it's well on its way. So I don't think necessarily Alphabet will fit into that film.

But I'm talking about the general environment.

For M and A and as well as tech. Now, you know, to your point there are it's not all you know roses here. There is this aspect of freedom of speech, and I don't know how that's going to be defined in twenty twenty five 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 seven and some of these winning trump trades we think are the palanteers 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, advancements 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

Yeah, you were saying that you still had this conversation by saying there's a lot to look forward to in twenty twenty five. We still wring our hands about what the killer application of general to AI is other than Gemini two point zero on my phone or the ability to have basically an analyst next to me every time I want to research. Is that in US in terms of the return on investment.

I don't think.

So, you know, we got a glimpse of it in twenty twenty four, where you know, all is hype about AI and how these big MAC seven companies are investing in AI. Was simply enough to get the price up. But then we started to look for ROI on them, and I think the market may be looking for a little bit more in twenty twenty five, so we're going to have to see something a little bit more concrete.

To come prison's dilemma or indeed innovation focus. Anna Rathman, we thank you Ceva's Investment Advisory Services CIO. Let's just talk about some of those names we just referenced a little bit more, Tesla, Broadcom.

But also Nintendo. These are just a few.

Of the global stocks to watch in the coming year. It's all according to Bloomberg Busessweek. Analysts at Bloomberg Intelligence track some two thousand companies from a variety of industries, and they've identified fifty 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 Palenteer there.

That, 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 Palenteer obviously has some AI connections as well as it's a defense contractor co founded by Peter Teel Trump is going to be president, you know, there's a case there that maybe they'll do better Tesla. Of course, Elon Musk having the ear of the President elect is a good sign. But with both of those stocks, there is a sense that they are very highly valued, perhaps relative to where their actual revenue is and what their business prospects are. You know, Palenteer is not a leading

So that's the tension there.

The interesting shift that we've seen is maybe a slight pullback on chip companies. A lot of the exuberants in twenty twenty three, twenty two, for 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 according to the information. But Broadcon and micro 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, it 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 GBT becomes.

A hugely transformative thing or not.

Micron's interesting because it's in the memory business, not a not a direct participant in the AI market, although it just signed this deal with the Biden administration to get a huge subsidy for 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 that looked at in the United Kingdom, Nintendo as well. Where else are we looking in terms of our consumer focus.

Yeah, entertainment is interesting. Nin Hendo, the big story there is the switch to that's the new version of their console, which is very popular but is getting long in the tooth.

Two other names I want to flag. One is Fox.

You know that we've been reading a lot about the Murdoch drama. You know, Fox has actually done okay considering the you know, the general declines in TV consumption, linear TV consumption and so on. And the other one is IMAX. The losser 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.

Chaff can Amazing how you've managed to pour through so many other stocks for us.

We love it on those top fifty to.

Watch Apple and Broadcom stocks on the move today after we understand that Apple is working with Broadcom to develop its own service it's designed specifically for artificial intelligence. Now, the latest report is coming from the Information Bloomberg's Mark German joins us on, Well, you've been reporting this out for a long time that Apple will be 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 eighteen point two, which is the latest version of iOS eighteen and 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 one pm Eastern ten am 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 independently, but in some cases they need to go to the cloud. Things like writing tools, things like summarizing texts in some cases summarizing articles, and for that you need your own server infrastructure, and so for what.

Apple has done is they've created tweaked.

Versions of the M two ultra chip they shipped a couple of years ago, and the M four chip they've become chipping 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 in development for launch about two years from now, which makes sense. They are continuing that rolled

Broadcom is continuing.

To work with Apple on what are known as radio frequency filters or RAF filters, despite the shift away from paucom modems.

So this is just a continuation.

Of the Apple modem or the Apple Broadcom partnership, i should say, and new generations of AI servers. It shows Apple's commitment 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.

Back in twenty twenty two with the iplone fourteen, Apple launched a feature called Emergency SOS over Satellite. So what that allows you to do is the first advertisement for that so eloquently showed is if you're injured or trapped on a hike or in a remote area without cellular connectivity, you could tap into a satellite network operated by Global Star. Right, you can send a text message to emergency services or file a sort of a radar or an SOS to

And so if you're a hiker, you need to sort of bring your iPhone with you.

But they have this eight hund dollars Apple Watch all trin your towards hikers, and now they're going to update it about a year from now with its own satellite connected. Are you meaning you can leave the phone behind and still have that peace of mind 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 Gllman, 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 a much as one point two five billion dollars of insider shares, founding

That's right.

Actually Elon Musk even tweeted a confirmation of this. So we had reported last week that you know, they were close to finalizing the three hundred and fifty billion dollars valuation, a world record for a private valuation, that has now been finalized. My colleague Laurin Gresh obtained the document confirming our scoop and yeah, it's one hundred and eighty five a share.

Which is a significant optic from one hundred and twelve dollars a share that we 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 it, SpaceX has been buying back some of the shares, but not as many as they'd anticipated to be able to.

Sure, so you know, it's up one hundred billion. You know, from where they were talking a month ago. There's been a surplus of demand because you know, first of all, Elon's ties to Trump up and you know, Trump's election are seen as valuable to some of these shareholders. And then also SpaceX had a successful rocket launch 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. They didn't have enough sellers, and so they had to raise the price to match supply.

In the band, the greatest American success is what Jared Eisigman, who's of course the NASA name. This NASA chief pick from Trump is calling SpaceX today, KG Ruth. We so appreciate it, Thank you so much. Coming up, ge even Over, CEO Scott strat Sik is going to be joining us for more on how the company is meeting the power needs required to put AI into action.

This is bloembag technology.

A looming problem placing 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 even Over, the company's developing new technology to provide reliable, affordable, low carbon electricity that it helps produce the sort of power that can put AI in action. Here to talk about it. Geeve and o A CEO Scots Trasik, thank you so much for being here with Chill and thanks for having me.

On the back of an investment 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 manufacturers that's driving to really the first time in twenty five 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

So do you decarbonize? Is it all about nuclear? Is it about innovations? There you set aside what five billion dollars in terms of R and 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 sixty five nuclear plants with our technology running today in the US, we can operate those plants in provide more electrons this decade. We also have what will be the first small modular reactor that'll get commissioned this decade in twenty twenty nine. That will become a bigger part of the hyperscale or demand cycle into the twenty thirties, and we're.

Excited about that. So there's a lot of plays here.

It's interesting people have been handwringing about in the last decade how much China has invested in nuclear and how the US ultimately hasn't. Yeah, have you been talking about this for a while, and now everyone's come to the same realization.

All Certainly, the activities tolerated considerably in the last call it twenty four months. I mean, I remember sitting in the room at COP twenty eight in Dubai with over twenty heads of states saying we need to triple the nuclear capacity in the world between now and twenty fifty. In the sentiment towards nuclears certainly coming that way, both

Is there an opportunity cost that where are people not looking? It's interesting that there's perhaps some weakness in the wind area of your business that 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 in 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, and 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 one hundred years with public private partnerships playing important 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 and grid software as an example.

I mean, does.

That impact profitability the long term? The investors, the analysts that you're invested in, 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 and D.

We are investing.

We're going to grow our research and development twenty percent in twenty twenty five, 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 Two.

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 and return on that investment.

You generate about twenty five percent 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.

It? Really isn't all the above theme right now.

I mean, we're building out our manufacturing facility for gas turbines in Greenville, South Carolina. We're investing into our nuclear facility in Wilmington, North Carolina. We're also building the largest onshore wind turbine the cell and 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, Jie Vanhova, CEO, Scott Strazik.

Really great to have you in.

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.

According to a device teardown done by Tech Insights and Discovery suggests Huawei is still about five years behind industry leader TSMC in terms of technology plus Swedish payments group Karnabank, has been fined forty five million dollars by the nation's financial watchdog for failing to follow anti money laundering rules, and the authority found quote significant deficiencies at the company, but Karna points out that this was routine review and

The decision comes as a growing number.

Of small merchants argue the practice really hurts their bottom line. I'll come back to Blue Meg Technology and Caroline Hide in New York. Let's get you in a quick check on these markets because the NASZAQ, which is higher risk assets go higher as we get that inflationary pressure coming in as anticipated zero point three percent on the CPI print month of the month, we are currently up one point six percent, and really some of the big tech Magnificent seven names lead us higher.

Go into 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 and gains the biggest winning four day street that we've seen since back to March twenty twenty three.

Enthusiasm around the.

Quantum innovation being seen with the Willow quantum chip, but add on to that Gemini two point zero being released today, innovations in AI, all of this seems very much a virtuous circle, despite those antitrust overhangs. So we're hire on Alphabet move into some of the individual stories as well on the day, and we've been looking a lot at the chip makers in the news coming out of the

Yeah, well, first, Caroline, thanks for having us here. I'm excited to be here and talking with you. I think the way to think about this is everyone's familiar with and I've been tracking all the innovations coming out and exciting applications happening in AI. 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.

How quickly are we talking about hearing in the next couple of years mass production?

Yeah?

I think you know.

We're bringing a low level innovation to the high volume semiconductor world, and products in this space always take a few years to get to high volume. In the product cycles are a few years long. So the way to think about where we're at right now and what differentiates us is we have a chip that we ship today. So it's an optical chip. It's got one hundred million transistors on it, it's got thousands of optical devices. Now we've really brought a level of integration and performance that's

Mark, who are you currently shipping to? In what form? Is it already been used?

Yeah, so we're shipping across a number of the customers that we strategically work with, and how they're using it right now is one making sure that the core technology works. So we've invented a new technology, and so before you commit to deploying that in high volume, you have to kick the tires and say, okay, there's some new elements here, there's innovation that we've done. Does it actually work, how's

So that's how people are using it today.

When you think about Nvidia, AMD, Intel, all of them fierce 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 everyone's realizing that a transition towards a new scale of optical technologies and optical products, it's very important for all of their future deployments in products. So we've always viewed this and what we're doing as a broadly deployed and ubiquitous technology.

So, yes, you're right.

This mac conductor world is notorious for frenemy engagements. You know, your suppliers, your partners. Sometimes you're competing. I think that's just how this world works, and ultimately it rewards those who innovate generation after generation. And we're on the forefront 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 realize that vision.

It 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?

Great question.

Part of the innovation here is that we're bringing the power of fabulous semiconductor design, which has done phenomenally well in the world of SEAMAS and Electronics and companies Liken, Vidia, 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 IoT 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

Sell it chip At the moment, who makes those chips is Global Foundries, 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 twenty twenty six.

That's right.

I think the other thing to latch onto here is that the high volume, leading edge foundries are getting involved. So Global Foundries, Intel, Foundries, TSMC, they've all made public statements about what they're doing in photonics, and we're working closely with all of them, and we're excited about how this is coming together. And yes, we need that scale of manufacturing to deliver to the tens and hundreds of millions of units that the market is demanding a few years in the future.

I allowed CEO Mark Wade, really appreciate your time on the funding round. Meanwhile, just shift our attention to GM shutting down its Cruise Robotaxi division, setting high development costs and reputational risks. GM will merge crews into its operations, focusing on developing advanced safety systems and offering autonomous driving as a.

Feature of future models.

The company says the decision will save the company over a billion dollars in annual costs coming up was in store for the ibo market heading into twenty twenty five? Wesley Chants with US co founder and managing partner at FPV Ventures.

This is Bloomberg Technology.

After potential IPO filings from companies like Klana, like Service Titan, what's the outlook for tech IPOs heading into the next year. How long will these AI valuations remain so heavy? Wesley chan is with US co founder and managing partner at fpvv Eventures. We've 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 twenty twenty five, especially going to twenty twenty six. If more interest rates fall, you'll see a lot of people pump more money in the markets and 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, so that does really well, and you know, I think that will open up the doors for more people to want to come out into the market.

There's been some bit of pills to swallow on the progress. For example, a Klana in the heady days of twenty twenty one, 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.

So 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 the next couple of 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.

And those best companies always going to have to be generative AI adjacent RD you know, I hope.

Not right Like you know, I think there are a lot of great companies that are waiting.

I'm I've been involved with Canada for almost for almost eleven years, and 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 pro to be more productive, and you know, nobody sees them as an AI company quite yet. And you know, everybody talking about their possibility of IPO in the next couple of years. So you'll see a lot of great companies come out.

Will they all come out in the United States? If indeed they are that. We're seeing Indian listings, for example, pick up for local companies or is it all about coming to the US.

I think if you're a founder, no matter where in the world, do you or you know a lot of them tell me it's through dream to IPO in the US, so you know you'll see the best ones IPO here. That's where all the capital is and where people are excited about having their listenings.

People are exuberant.

They're also about M and A picking up. I mean, many would say there's still limitations on the Magnificent seven to really make too many acquisitions. But is that going to be a more furtive area of exit at least?

I hope so, but I'm skeptical of it. We have a couple issues with M and A. The first being that you know, a lot a lot of it was blocked. You know you saw this morning. Then we had another one that was kind of blocked on this Kroger Albertson's one. We might have a new administration, we might have a new FTC that will be more more lenient towards allowing some of these m and as through, But right now it's the M and A market is for most part shut down, especially for folks and 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've been tempted by some of these secondary market activities. It seemed to be the area of giving certainly investors and employees liquidity.

You know, there's a lot of activity helpening happening there, but 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 was 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 two thousand and four.

And you know, you have one great or two.

Great or three great companies IPO and the market will start blooming again. We sought first then well Google when things were shut down after Enron and after the first recession in.

The dot com bust.

So you know, the history doesn't quite repeat itself. But boy doesn't rhyme a lot does rhyme?

Does the never ending wall of money going towards general to AI startups continue.

We're already seeing it stop a little bit right.

You know, there were a lot of it E been flows and with a lot of general of AI startups that were doing video models or doing you know, the first stage. A lot of them can't raise money anymore. You know, they're calling companies I can and 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 serve occurs, start to become very popular, and I think those will have some value. We saw this in

You see, it's got a lot of money, as we 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 Jenai will start becoming very popular and have a lot of value in this could put moment.

Then there are a lot of zombies out there who are still clinging to unicorn valuations, but no one's quite ready to rip up the script and mark it down.

When did these comput moments actually happen?

When they run out of cat We saw this first end of the dot com bust, right, A lot of companies had these crazy unicorn valuations because the market was unlimited and all of a sudden and one fell swoop after there was that big recession, the dot com bust happened, and all these companies almost in like a couple month period. When when could put overnight? And I think we'll see this with some of the Genai companies. The market will just say we don't have money for you for funding.

You'll see that business models.

Risks sort of play out and then all of a sudden, with no more cash being able to raise and the money being burned, they'll have.

To close the doors.

Where in the generator of AI stack are you talking about the application layer here rather than the foundational I think.

It's between the foundational models. Those folks have lots of funding, they have incumbents, unlimited compute power. You have the applications that are taking advantage of some of the new features and the new launches that are happening in the gen model, in the foundational models.

But there are a lot of companies in.

Between that we're 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.

Nicely, it's always great to get you straight to a on the show. As a chan co founder and managing partner at FPV Ventures when they look ahead for twenty twenty five.

Of course, Worsley 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 two point zero, saying it is twice as fast as its previous version and will power virtual agents that assist users then 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 it's Ai video product. Much more slowly though than open AI's rival Sara service, it's been.

Fueling concerns that it's falling behind.

The company announced the tool two months ago and 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 bout. We have a new intra day record being hit for Tesla. Keep an eye on the stock. We're currently up to two point seven seven percent, but at one point we're gaining three and a half percent to hit the first interday record since twenty twenty one.

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 gear is to TikTok, another one to focus in the Trump administration. It's currently offering users hundreds of dollars to spend time in the app, invite friends to join and purchase products on TikTok 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.

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 one hundred and one hundred and seventy 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 band goes into effect in just over a month.

So what is the idea? More people?

More the one hundred and seventy 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 White Dance.

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 the American Americans everyday life than in the American economy

And they're expanding in Europe as well, anasms in Spain and Ireland.

But how well is it doing?

Do we have any sense of how many people have been using TikTok Shop in the US.

So we know that TikTok Shop is why be popular here. We know that TikTok or Bye Dance, its parent company, had aimed to get users to spend seventeen point five billion dollars on the app this year. We know that they just had triple the Black Friday sales this year that they had last year, So we know that they're doing very well as far as outside the US. It just launched yesterday in Spain, so it's a little bit newer.

Throwing everything trying to gain those the US uses Alexandra Levine, thank you so much.

In 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've posted on

Yeah, the interesting thing here is that they're looking beyond Amazon. You know, Amazon for years has tried to clamp down on fake reviews. They've looked at scams where people were maybe like taking payments on PayPal and exchange for reviews on Amazon. And what's happening now is they're actually reaching out to people who've posted reviews on Amazon and asking, hey, what kind of relationship do you have with this brand or this product? What kind of videos are you posting

And what is the come upons 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, pursue civil penalties. That rule just took effect earlier this year. And then that's where like Amazon is still unclear exactly where it fits in. If they turn a blind eye

But then the other aspect of.

This is just that it's reaching beyond its site, is just kind of sending a message like be careful about those campaigns you run on TikTok or YouTube, trying to sell your Amazon products and bring maybe bring some of that back to Amazon where they prefer to have it.

Yeah, because advertising has been a really strong line of growth for them.

Yis exactly, and it's never Amazon has 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 TikTok and YouTube where people kind of are noodling around. Amazon's always been a place to spearfish, and so this is this a way for Amazon to maybe send a warning sign against those kind of campaigns with influencers on other platforms.

Spencer SOPA figing in on those influencers.

We appreciate it. Thanks so much. Now, 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 and P and the Nasdaq one hundred more broadly today it's about five point six percent. Why because well, the report's 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 server chips.

Who are they using to do that with Broadcom.

Up five and a half percent, so we see some big moves, some record highs across the board as well.

Keep a 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 Sopa. That does it for this edition of Blueberg Technology. Do not forget to check out the podcast. Find it on the terminal as well as online on Apple, Spotify, and iHeart This is Blueberg