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We're Innovation, Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
I'm Caroline Hyde and Bloomberg's world headquarters.
In New York, and I'm Ed Ludlow live at CS Las Vegas. This is Bloomberg Technology.
Coming up on the show.
Full coverage from CS in Las Vegas. With Then we sit down with the CEO's of Qualcom, of mobili and we're here from a cito of Mercedes on Generator AI in Auto's Plus the CS underway. Amazon reveals it's new streaming feature to rival Apple's Airplay. Details on that ahead, and Bitcoin it hovers just below that forty seven thousand dollars mark, all ahead of the all important SEC decision on the spot Bitcoin ETF that we anticipate all that and so much more coming up first.
Ed, you are live on the ground.
And it must all feel like it's about artificial intelligence.
Yeah, it's AI everything, but you know the name Consumer Electronics Show. The range of companies here that are bringing substantive news about AI is really interesting, from beauty to big box right. Walmart CEO Doug McMillan, one of the keynote speakers. I'll be speaking to the Nasdaq CEO Adina Freeman about the impact of AI on financial markets over
the next twenty four to forty eight hours. Look at some of the stocks of these companies, because we're already seeing moves, for example in video based on the CS announcements they're making.
Yeah, maybe even Amazon Driving Train because of its announcement as well. But the cars still front and center. It always has felt like cars have encroached on the tech space of late.
Yeah, there is a heavy presence of the automotive sector here, particular focus on technology that ranges from AI and perhaps advanced driver's system. It's an autonomy right through to the next generation of battery electric vehicles. That's going to be the discussion here throughout this hour. Really heavy automotive scene underpinning it AI.
I mean, we've got to get to what's happening on the ground in CS and you've got a key special guest for us.
Yeah, let's get right to our first interview Mercedes CTO Marcus Schaeffer, and as we discuss Mercedes starting their announcements focused on AI and Marcus I don't know what to make of this. You're calling it a virtual assistant. It is part generative AI tool, it's part cockpit. Explain the virtual assistant to us and what you've announced this morning.
Well, I would call AI a real game changer, and at this moment in time, from most they dispense. So AI is used in several instance, it's grading a car much faster, riding cold, but AI these days is helping us really to put the car in a different light. So the car is no longer a vehicle just takes you from A to B. It's somebody who can talk to And that's.
Exactly basic that how does it work? How do I interact?
So it's about the human machine interface actually, and it used to be knobs and buttons in the past, and it was voice signals phrases that you were using. Now at the present time, we're using actually even jet GPT in some instances in US cars, but that's more a one way dialogue. But now with the virtual system AI and the in house software, we're enabling a dialogue. So
this enables a fully intelligent car and intelligent conversation. So the car appears in a completely different context and that's what the user is already experiencing participating in our chet GIPT beta program. So the use of voice control and voice interaction with a car is just rising traumatically by a more intelligent conversation with a car. And that's exactually what this virtual system that we are creating with the
help of AI and in house software is enabling. So this changes the relation between you, the customer and the car dramatically.
Marcus, who built the underlying technology Mercedes, or you worked with an AI developer like open Ai.
Well, the key is that's our understanding. We developing our own in house software. We call it Mercedes Spence Operating System MBOs. It's called MBOs. So this is the foundation, this is a basis. This is a chip to cloud architecture. So we're defining the chip level, we're defining the base like middleware. We're defining our clouds. So we own the cloud, the Mercedespence Intelligent Cloud. So it's a complete three hundred
and sixty decreased system. And within this system, we're having partners, so we're using partners for AI modules, data access, and so we're partnering here partially. When it comes to the virtual Assistant, but partially the software is written in house in order to be in control of the result towards the customer and the data privacy.
Just very quickly, if I'm a Mercedes customer, do I purchase Virtual Assistant or does it come as part of a broader software suite.
Well, the idea is that we provide a complete entertainment package. So it's not only the virtual system model lines or across all model lines. So it's ultimately about the customer experience, and the Virtual Assystem is just an enabler and intelligent enabler that opened up the world of entertainment for Benz customer. So you purchase a whole package of entertainment. It's video, it's audio. We just announced yesterday partnership with Audible Podcast.
So there are many many ways that entertainment in the mercedspense is taken to the next level through the Virtual Assistant.
Marcus, you are entering a key battleground with drive pilots level three California and Nevada at first, and customers will be able to start taking delivery download of this early twenty twenty four. What has demand been like? Can you tell me how many Mercedes customers will be able to use drive pilot on roads in those states. Twenty twenty four, Well.
We started offering a level three drive pilot in Germany last year, so we have quite some experience in Germany and the interest in purchasing the drive Pilot with the S class and the EQS is really really high in Germany. So now we're starting in the market here in Nevada and in California. Customers will receive the first cars and the interest is absolutely high. But this is a game changer.
This is an absolute new.
Game knowlogier for revenue as well as technology. Will you make it work vanguards from it?
Technologically, it's a game changer because responsibility moving from level two cars to level three cars changes from the driver to the vehicle and that's a fundamental paradigm shift that's happening here supported by technology. So there's lighter technology in the car, cameras, radars, a software stack, an intelligence software stack, and intensive for work with the authorities here in the
US to get it certified. So it's a huge technology stack and package that we're offering the customers here with a benefit that you are unable to perform side activities while you're driving, so off the road and hands off the steering wheel for the first time. Right, this is the only vehicle in the market so far.
You raise a good point on certification. A big news story of the last week has been the recall in name only of all Tesla vehicles on autopilot in China, and the regulator said, you need to do more to get the driver focused on the road, more alerts. Do you think you'll avoid a soft recall like that? Are you confident that once drive pilot is rolled out here in the United States and later China, that it will just be able to exist in the marketplace.
I believe you can never rule out that you were running into a recall. But on the other hand, we're doing everything in the forefield to avoid this and making sure this is a reliable system. So the intensive work, extensive work with the authorities over a couple of years with DMVNITZA and many authorities in the country to explain the system to them and the boundaries of the system.
What the system can.
Do and what the system cannot do is so essential, and to explain it in detail also to the customer. So it's an education process that has happened over the last two years three years in the country here making sure customers and the legislator understand the boundaries of the system here, and I think it's very important to distinguish being a level two system, a driver a system system
and an automated drive. Pilots the lowest and it's so essential for the customers that they understand what the system is able to do and what they can do what they cannot do in order to avoid what we call mode confusion. So you should never confuse your customer what the system is able to do. That's why we clear distinguished this is a level two car driver systems takes a lot of load from you, but you always have to have your hand in the steering wheel and you
are in charge. But in level three you give the responsibility to the machine and that's a fundamental change. With the benefit you can perform side activities, watching movies and doing other things in the car legally.
Marcus Schaefer, Mercedes Chief Technology Officer CTO, good to catch up here at CES. Caroline Ba's you in New York.
Love the nuances when it comes to tech within the autosphere. Meanwhile, coming up, we're going to be continuing that coverage from cs next up the Mobile I co You do not want to miss our conversation coming up next. Meanwhile, just keep an eye on what's happening with the shares of your brown left. Today we go from autodiscussion to the
discussion around flexible working and indeed gig working. The pushback is on, of course once again the federal government really trying to look at how we are protecting employees whether contractors are indeed full time employees or not. You can expect, of course, the Chamber of Commerce and I need some of these companies to push back against the.
Latest labor law that has just dropped. Today, we're still.
Up on the high side, lift up more than percentage point, uber more than two percent, so no great investor concerns at the moment.
This is Bloomberg Technology.
Welcome back to cs LAS Vegas. Our next interview Mobilized CEO am Noon Shashua, the technology company announcing a range of news items to do with advanced driver assistance and actually amnon you literally right now are announcing a new one DXP, an operating system for aid AS. What is it? Explain how it works?
Well, it's good to be here, ed always good to see you, the expered to driving experience to the platform. There is a natural tension between the need of his supplier to skill I'll create to one system that fits all right, and the need of the customer the car maker to differentiate, try to make something that is unique to its own driving experience. And the way that this has been handled so far is let's provide the car maker with libraries with API calls and let the car
maker build their own system. And this doesn't look that, it seems to.
Work, okay, so you're basically going to yours basically in saying here is an operating system.
So that there are kind of two extremes. What we separated is what is universal and what is unique universal, say, for example, perception.
Perception is universal.
Why because there isn't any differentiation to do with understanding the environment, right, A BMW vehicle or UNDI vehicle or an AUDI vehicle to understand the environment the same way. So there's no differentiation there. HMI and control. Clearly that's in the territory of the car maker to differentiate.
Especially if you have a highest speck car response.
Yeah exactly. But then comes the big thing in the middle, the big elephant, which is called driving policy. This is all the decision making the car makes and the car needs to do in order to merge into traffic. When you're doing a hands free experience, now decide to change lane, when to change line, how to negotiate with other with other road users, the breaking profile, the comfort versus the safety type of balancing. There's lots and lots of you know,
heavy AI. There lots of validation, you know, huge amount of data for training, and this is something that so far has been difficult to separate into something that you can just give a library to the car maker. So what we created we create an operating system that separates driving policy into the universal part, which Mobili does as kind of the substrate, all the all the difficult AI, all the difficult AIE parts, and then the unique parts.
That is a set of code that we provide of course reference code to the carmakers that controls every aspect of the driving experience.
Right, they customize this the OS relative to the model that they're trying SEA.
It's just like writing an app on an iPhone.
Just like writing app on an iPhone, you're going to make any money from this.
Well, it allows us to scale. How so so because you know, we're talking about very complex systems. You are not just the front facing camera, you know, basic aidas. These are systems with eleven cameras and radars, heavy compute and scaling this from carmaker to carmaker is a challenge because these are complex systems. This DXP allows us to
scale easily. From our point of view, we're creating one system that kind of fits all, but from the point of view of the car maker, the full control of changing the driving experience to whatever they desire.
Let's talk about this, and we have to in the context of last week. You gave a sales outlook for this year overall below Wall Street estimates, but you basically said first quarter sales will be down fifty percent year on year. Why because customers built up inventores they've paused ordering to work through the back rone. A question that the street had is why didn't you see that coming a bit sooner.
Look, this is the dark side of having long term commitments. You know, during the COVID the years we're talking about three years, we sold ninety nine million chips. Or during these three years we had to give long term commitments to our material suppliers, and we had to ask for long term commitments from our customers.
The Tier one supplies.
Long term commitments is a year and a half going forward, and it's difficult to kind of forecast a year and the half to do accurate forecasting. So we felt very secure that we have, you know, foreign purchase orders a year and a half ahead. Well, what it turns out that you know, customers, the Tier ones, they gradually built up.
Inventory severe inventory.
Well you know, it's about seven percent of what we shipped in three years, so it's not that severe, but two three percent a year. But you know, it was kind of under the rug. We didn't see it. We didn't see it coming. And now the first quarter of twenty twenty four, all this inventory is going to be used and then the remaining years as growth the second quarter or third quarter, fourth quarter is the natural growth of alas.
Returning to grave. And you're seeing very quickly evidence that the inventories are now being worked through in first So.
The first quarter, the invanty is going to be depleted and then we're going back to normal.
Okay. The other piece of news is Mahindra you are going to provide a desk tech for their next gen cars. Give me some numbers. What does that look like over the coming years.
Well, we have ADAS tech in India with Mahindra and Prime models in Prime models suv models and it turned out to be very successful. You know that the demand is about three times four times what they forecasted in India, so there is kind of a strong sense of desire for safety in India. What's interesting with this particular pr is not that it's regular aid US. It's our latest model, the Supervision eleven cameras around the car, hands free driving.
And you wouldn't expect India to be one of those, you know, territories that will go and adopt such a system. And it shows that in India, you know, our new roads are being built, new highway roads are built being built, and the kind of safety that these systems provide there is a strong need for them. And India is a huge growth territory. So it's not only China.
You also announced a deal with it unnamed automaker. I know you won't name them. The question our audience has for you is who is the lied our supplier on these deals when I posted you coming on. They all said, ask amnon, who's the lied oar supplier.
Well, if I tell you, it may kind of indicate who is this Western Oh yem right. But you know we won seventeen models both Supervision and Chauffeur. This is a great win for our it's all coming out in twenty twenty six. It's actually also drive the Robotaxi.
It's a huge it's a huge deal for us.
I think overall, when you look at Supervision platform, we have now thirty car models three zero when we started only with two car models a year ago.
I'm not sha share nobile. I CEEO. So good to catch Thank you, thank you at C.
Yes time now for talking tech.
First up, India's Z Entertainment Beaus reportedly missed the deadline to pay Walt Disney's India unit for the rights to televise cricket matches now Blue. Both sources say Z didn't pay a two hundred million dollar installment fee to Disney Star it it was due to a shortage of cash. Z and Disney Star entered that agreement at one point four billion dollar packed in August to broadcast the cricket
games until twenty twenty seven. Meanwhile, JD dot COM's Dada Nexus says it's investigating suspicious practices that led to a discrepancy in its revenue outlook.
A routine audit found.
That Dudda may have overstated both sales and support costs i AM rough one hundred and forty million dollars, triggering a forty six percent job in its share price. Independent advisors will assist in the review of the situation. Plus Judipa Networks rising the most nearly twenty years. That's after the Wall Street Journals said that the company was in
merger talks with the Hewlett Packard Enterprise. Now reports say that HPA would would acquire Juniper for about thirteen billion dollars representatives when both companies did not comment on the matter.
Now, let's just briefly return.
To what's going on at CS the conference there and there are going to be some big announcements from tech's biggest players.
One of them is Amazon.
It's already been unveiling its new video streaming features similar to that of Apple Airplay. Joining us to break down why this is important, Spencer, SOAPA, so already you can do Google or Android cast you can do Apple Airplay, Why does Amazon want to offer this optionality to Spencer.
Yeah, so Amazon's playing a little bit of catch up here, and the key thing is that Amazon doesn't have a smartphone, so that's why it comes at in kind of a weak position. But It's realized people are using Prime Video and they want to stream Prime Video on another device, They're going to have to do that through either an Android phone or an iOS device, and so Amazon's recognizing you has to have its apps and functions operate that
way on devices that it doesn't make. So right now you'll be able to date us today is you'll be able to stream Prime Video from an iOS or Android device onto like an EGO show, and that in months you'll be able to do it on a player TV and that sort of thing. But they're realizing is that people's devices need to be able to talk to.
One another, and.
That you need to be able to stream for one device your phone where you get the signal, onto another device where you want to watch it.
It's called matter casting.
Now already we know that some of these big tech companies have been trying to agree on the ways and where you can do this sort of technology but what's what's so hard about it? How hard did Amazon have to work? Briefly, Spencer, Well, we know.
That they had to negotiate with Apple and Google and those things can be kind of tense, you know, hard to find a win win, and a lot of times these companies want to be in like kind of a walled garden where they control everything.
Yeah, Spencer Soper, I know you're a busy guy. You're about to make that flight out to Las Vegas yourself. We really appreciate you bringing us that particular story.
This is Blueberg Technology.
Welcome back to blue Meg Technology. I'm Caroline Hyed in New York Ed. He's over there in Las Vegas. We'll be about to see us in a moment. But let's have a look at what's happening in the markets right now, because we are actually seeing a little bit of a recovery. We had seen some concerns around tech, particularly when it came to the chip stocks from she delve into in a moment, But now it's like one hundred currently recovering. We're only about twenty three points. That's less than to
tents of a percent. Nevertheless, there is int cautious holding into the Nasdaq tenure.
Yield currently seeing a bit of a bid.
We're off by one two basis points across the curve in facts and buying into that three year auction that we're anticipating. But the direction of travel for bond markets really does stick tech. Perhaps what happens with overall equity markets as well. We're all wondering where the Federal Reserve goes.
Bitcoin just down about seven ten percent and the moment we're gonna be delving into bitcoin in a moment, but just caution and maybe treading water ahead of what's the all important spot, Bitcoin ETF that we hope, well the market anticipates might be signed off as soon as tomorrow
forty seven hundred and ninety one. Move into some of the individual movers that we're looking at individual stocks that are on the move, and we really have been seeing in particular, I think this is the wrong one here, but I was looking at what was happening in the chip stocks in particular, and we are seeing the socks had been showing some under pressure, but overall seeingle recovery in chip stocks, even after Samsung told us, of course,
of their revenue fall for offerittability fall and ultimately a worry about the slump continuing in chips and memory and what that means to be overall tech recovery, Unity software interesting one Pokemon Go. You might have play it and my son's pretty addicted, but look overall they're having to share jobs. We saw that after the bell being announced. We actually saw some recovery in the stock yesterday.
But now it turns south.
Eighteen hundred jobs or so on the block when it comes from this particular company, MicroStrategy, and look at some.
Of the individual movers.
When it comes to crypto and we are under a little bit of selling pressure, we receive perhaps just a pause in the run up of bitcoin prices. Remember they were eclipsing forty seven thousand yesterday. Today we just pull back to that forty six thousand dollar handlef for bitcoin. We're of by two and a half percent for micro Strategy, which of course holds an awful lot of e OG of the crypto space. Then let's talk about bitcoin. Let's talk about the spot bitcoin ETF and what it means
to the rest of the market. Ayakontorovich is a busy person right now. Fractal Co CEO and co founder and You've been in this space for a long time and I'm interested. So what this ultimately means if we get the sign off January.
Tenth, Absolutely, it's a pretty big move. It's going to be fifteen years after the initial genesis block of bitcoin, and what we expected is actually a rotation from GBTC Spot Bitcoin as well as the future into the ETF because not only is it cheaper, but also from a custody and security perspective, it's going to be a lot safer in terms of risks.
You have bn Y Mellon who's the admin for over.
Half of the ETF today, and what you'll see also is instead of paying ten plus percent for the future's carry rate, you're going to pay an applied cost of roughly twenty bits in fees, which again is a lot like cheaper. So you'll likely see the CME basis collapse, which we expect to be trading under darbid.
So ultimately people get out of the futures because it's expensive, they go to the Spot Bitcoin ETF and we're.
Looking at sort of a whole raft of inflows.
What it ultimately means, will it be five to ten billion in the first week of trading. What sort of scale and of adoption do you anticipate, ia, I think.
You know the market is priced anywhere between one to two billion. You saw standard charter that said they expect anywhere between fifty to one hundred.
Billion within you know, twenty twenty four a loan. It really depends.
But I say, you know today you still have open interests. That's the highest it's ever been on the CME. Though institutions are very much long Bitcoin, and because it is so expensive but also very difficult to trade on the CME directly today, whether it's through an FCM or it's through your broker, we do expect to see that migrate over to the spot etf which will just inherently be easier to trade con fractal.
Of course, your business that you're building is all about trying to make trading liquidity, the whole use case of this new asset class easier. I'm interested as to what sort of scale of adoption you see for retail, Like a lot of this is about institutional buying, a lot of it so about whether or not I can get out on my pension.
Exactly.
And so you know, the conversations we've been having even we always talk about the stander run up or the conversations that people have in Thanksgiving when they're home with their families, and really the realistic thing is, up until now people couldn't purchase this easily in their four to one K in their I raise, and now this unlocks this entire market, which is over six trillion just in the ETF market alone in the United States. The RIA market is also massive specific in the US, and the
fees for this is also relatively low. We're seeing a competition of fees as well. And aside from just your dad, your grandparents being able to purchase US, we've also seen a lot of narratives Bitcoin narratives on chain around surrounding companies that are BTC specific also have a run up into this news.
It's interesting, isn't it The way in which the SEC has been trying to play this. There's been lots of anticipation and perhaps reporting that they.
Didn't want to make a king maker.
It sort of happened with the Future's Bitcoin ETF where prochees just got ahead of the rest of the pack. How do we decide which particular offering you go for? Is this going to be like a rush of marketing to decide which particular well, whether you go to Fidelity, whether you use are all the different vuying of spot bitcoin atf sire.
I think at the end of the day, it always comes down to the comfort of the individual user and you.
Know, the access that they have. If the overhead is.
Going to be really high in terms of changing opening new accounts, they're probably not going to be I want to use it. And so we're seeing one in terms of access. You know, is it already sitting in someone's four one k it's the ra already exposed to that specific broker. The second is the competition around the flease.
So you saw Blackrock adjusts down to twenty bits, you're seeing bit wise at twenty four arc and Venac at twenty five and then all the way up to grayscale one and a half percent, and so you know that's also a big portion of it as well. Realistically, I think when you look at the exposure Blackrock has in the specific market, it's a no brainer that they probably have the overhead in terms of just being able to access a wider market.
Meanwhile, people have been in the crypto space is still looking to trade I don't know. You provide infrastructure, whether it's clear and settling sort of margin on digital assets. They're not just looking to play in bitcoin, they want old coins as well. What does the spot bitcoin ETF mean for eight for Solana, for some of the smaller old coins, the mean coins.
Even Yeah, so I will be honest, you know, the the all coin market has been lagging tremendously into this move. This is the lowest level of eth BTC that we've seen over the last year, and so it's really going to be interesting now to see, you know, what's the narrative around the eth ETF once BTC is approved. And also we've seen clients trade ethe the eight future into the approval tomorrow, assuming that there might be an eth
ETF coming next. On the more esoteric alts we've seen around the bitcoin narrative, you have stax st x, which is small contract on bitcoin, ordinals.
And thor chain bruin.
All of these are built on bitcoin and then also seen a price appreciation into the move with the CTF.
I am we thank you for carving out a little bit of time. Order is a pretty hectic week. I'm sure I can.
Tarovich, we thank you so much factal co CEO co founder. We always love having you in the show. Meanwhile, coming up, we're going to continue our CEES coverage. We're going to sit down with Qualcom CEO Cristiano am On. You do not want to miss that conversation. Whether it's of course the chips that have been used within auto's, whether it's in the latest VR AR. We're going to have a conversation across the bold. This is Bloomberg Technology.
Welcome to our Bloomberg television and radio audiences worldwide. We are live at cs Las Vegas and we're talking to the CEO of Qualcom, Cristiano among Cristiano, good to see you, Good to see it. There is a flood of wide ranging news and announcements, but I actually want to start on your updated XR chip. This is a processor that you are going to put into headsets, mixed reality headsets
that will take on the Apple Vision Pro. And I just want you to talk about how confident you are that you will take on the Apple Vision Pro and at what end of the market you're going to help support.
Look, we have been a big believerance spaceship computing, and I think the arge in two It's another instance of what we have been doing generation after generation again four K, especially computer on Eachi. But most important is we've been driving how to bring scale. You see some of the partnerships we have with Meta, what were they doing with.
The Quest series? We're working and announced.
I think a while ago that we're working with Sansung and Google. You saw some devices being announced from Sony. I think that's a great opportunity, and the key thing is can you get that to a scale with the performance and the price point that we excite developers.
I think it's a great opportunity.
On the scale point, there is a feeling that Apple will come in with Division Pro or a next generation at a lower price point and just take the market based on the demand you've had for XR two plus. Is that going to be the case? So no, I think you.
Have to look at this in a different way. I think Apple is doing a great job. I think what they done with Division Pro it's great. If you look at the device and to bring it to scale. All that it's going to do is to ignite the developer ecosystem. At the end of the day, those computing platforms and developers creating content the more that you have more content, and that content that they're going to help create is going to be available on.
Other platforms as well, and vice versa.
It's about creating the next special computing platform.
It's a great opportunity.
We're still in the early growth stage of this market.
You have been to many cess I have been to a few. It's always hard to find the common theme. But this year there is clearly a common theme, which is AI. And you and I have talked in the past about on device AI use, particularly in the cell phone or smartphone context. This year, the PC seems to be the battleground. What is cloudcom doing AI on PC?
Look, we're incredibly excited and we feel kind of what we have been saying is validated if we look at all of the other companies all announcing on device AI,
something we've been talking for more than a year. If you look what we did at Snapdragon Summit, we're now Exceleite, which right now is the king of all device AI computing platform for the PC has an integrated total seventy five top stre operations per second, and we started to see what Microsoft is doing other companies doing this is exciting.
Just to put in.
Perspective, we have over thirty different AI models been ported to the Snapdragon platform preparing for.
This on device AIPC, and it's going to change user experience, it's going to change productivity.
Look at the number of CEOs talking about how they investing in this, and when you run on a device, it's more secure and you have context and you have privacy.
So, as an example, has been talking about the promise of chips that power aim PC for quite a long time and it kind of hasn't materialized until now. When I posted on x and asked our audience, what are you most excited about from a technology gadget perspective twenty twenty four. To be fair, many people replied and said
Snapdragon elite. So what does snap Dragon look like in the real, real world this year twenty twenty four, How many consumers can actually sit at their laptop or PC and do something of interest.
Oh, you're going to be able to do a lot.
So maybe just put a perspective on Excelle because there's a lot of excitement. We're very happy that a number of designs is going to launch together with the new version of Windows is going to have on device copilot, and there's so many things you'll be able to do from be able to have a computer now.
That's going to predict your every moment.
You're going to have copilot when you talk about the Windows ecles system across all the different applications, and there's a number of other use cases. When you think about visual models, language models, they're being developed.
They're very exciting, and I think.
That that's happen on PC, that's.
Happening on phones, that's going to happening on cars as well.
To our Bloomberg television and radio audience worldwide relive in Las Vegas at CES and we're speaking to Christiano Raman, CEO of Cloudcom. Let's set a baseline and say there is still some weakness in the global smartphone market right What functionality in this AI era is going to bring the consumer back to start the upgrade cycle to get smartphone growth like we've seen in prior cycles.
So that's a great question. As far as the weakness.
I think we did say in the last Learning score that the correction and the inventory correction is behind us right now. So we're excited about the market being stable, and then it leads to exactly this point that you bring up what is going to create a new upgrade cycle that people want to buy a new phone. And we're one hundred percent convinced is what's happening right now with JENAI on the phone the way you need to
think about it. We have been accustomed to the experience that you have a platform or the OS platform on top of the computer, you have the apps, and you go in and you touch it. But now on of the OS you're going to have those models. They're trying to predict your every move and it's going to bring not only efficiency, but new use cases.
And we've seen that.
We've seen that with automatic translation, we're seeing that with web summarization.
We're seeing that with ability.
To create content, and they did content in real time, content that didn't exist before using visualization models and many more.
And something as simple as texting is going.
To have context that will allow the AI to bring information that you may want to share, you may want to schedule, all part of the experience. I'm believing the next user experience is going to be based on Jenny I on the phones, and we're optimistic that we can start to see devices as early this year with those capability.
So in earliers this year. With that in mind, what is your twenty twenty four global smartphone call outlook?
Difficult to make a call of the total market. I think we're just happy that the market is now stable. The correction is behind us. Let's see what our partners can launch. Stay tuned, for example, what Samsung is going to announce soon. I think there's a lot of excitement about the Snapdragon h Entry automotive.
You are very bullitional automotive, and you've tried to position the company to diversify the company. The automotive is a key pillar. Ten percent of revenue is kind of the target twenty twenty six end of decade nine billion of sales. What data hits your desk that tells you you're on track for that?
Oh, we're on track.
I think what we had said, we're going to get to four billion fort milestone, and then we're going to get to the nine billion the end of the decade. I think we're ahead of those targets. What is really showing traction is the number of OEMs that are being working with Welcome and how we continue to add to the pipeline of design. I think what's resonating the car industry is transforming to a digital industry.
Well, come plain, Sorry to interrupt with same questions with the smartphone or PC. What is the functionality If I'm a customer, end user, that's going to change my mind about buying this vehicle that has something it doesn't have today that you a contributed.
Well you already seen that.
See the good thing about tracking qualcom progress for us, it's less about the market size. It's more about gaining share and new models are a launching the technology. You can see some of the cars if you're going to go buy a car today, let's just say the Mercedes class, what GM is doing with their car line and many others. You have a fully immersive digital cockpit. You didn't have
that before. That's enabled by Snapdragon. Right now you have those beautiful screens that are immersive and it brings you a lot of information about the car the road. On top of that, you have safety and we have a vision that assisted driving needs to be in every car. For example, the announcement we did the show and a
portship with Bosh. We have now announced at the CS a central compute platform that you can have adas in a digital cockpit on the same silicon, which basically you can do that for premium cards.
Now bring it to enter a level car last market.
Those are going to be completely different changes in how you think about safety and how to think about your driving.
Christiana, we just have thirty seconds left. But where geographically is the automotive growth coming from?
Which markets for US is across the board, because you should think about us as new models, launcher or technology we gain share. We're working with all the Americans, all the Europeans, all the Koreans, all the Japanese, all the Chinese, so pretty much the entire automotive industry. I would be hard pressed to tell you a car company we're not working with car Comcia.
Christiana, I'm on live from cs Las Vegas.
Now.
Microsoft's thirteen billion dollar investment into open Ai look at Risk is a full blown investigation by the European Union and deals watchdogs. There After a mutiny of course that the chat GPT creator laid bare, there's really deep ties between the two companies, Samaltman and of course Satia Nadella. The European Commission said on Tuesday that it's examining whether Microsoft's involvement should be vetted under the block's Mersura rules, paving the way for a formal probe and even a
potential unwinding it's found to hamper fair competition. Meanwhile, let's look at another coming together. This one is the Matchmaker Match of course, company that is the parent company of many a dating app, Tinder. Hinge shares rising after a Wall Street Journal report said that Elliott Investment Management has actually built up a stake of about a billion dollars in the company. Ninbeg's Graham Star joins us now to
discuss as to what they are currently concerned about. Why are they building up why do they want to be pushing for.
Change a match So over the last four quarters, match which owns Tinder, the largest dating app in the world, has seen a consistent decline in paid subscribers, even though it's increased the average revenue per user. Elie other investors are likely to be concerned.
About that number.
There's been a lot of pressure on the company to increase that subscriber number. They've rolled out new subscription plans as well as new offerings to try and get new subscribers, new paid users. That's likely the goal for the year. Something I want to make clear is that there are no cell ratings on match Group or even a close competitor, Bumble, which has also seen a very similar decline over.
The last year.
Many would say this is a normalization, of course, like many a stock when absolutely gangbusters during COVID because we're all stuck at home, people dating using apps far more, and then a realization that maybe the way in which we date hasn't changed that much. But if they are trying to charge sixty dollars per user, if you're really active data, if they are trying to already change things up, and Bernard Kim taking over in terms of steering Tinder as well directly, and what can they really.
Do, do you think, Well, not just sixty dollars a month. Late last year they rolled out a five hundred dollars a month plan for Tinder as well, part of the same Mac withsition that they bought the League, which is again a very expensive dating app that is geared towards career minded individuals in twenty twenty two. It is this investment in different ways in which communities can develop, or
they can develop community focus dating apps. They also launch Archer, which is focused on queer and bisexual and gay men, as well as leaning into these other apps that they.
Own, add campaigns, pricing plans, ultra premium tiers. Is it just more now that the investor base just thinks, oh good, an activist investor might just start to drive.
Even more change or more view of the value of the parts of this business.
I think there's also a goal for consistency. The company has seen churn in its CEOs. It has not had a CEO for longer than two years. Bernard Kim has been CEO for less than two years at this point. He's now been CEO of Tinder. In addition to Match Group, the company's pricing plans see consistent churn, as you can see with analysts attribute to just generally high pricing plans.
Overall, I think.
What investors are looking for is consistency that the company can get more consistent, paid, active users.
We'll see if Elliott Management and Elliot Investment Management can help stay with that Graham style. Great to have you on, Thank you so much. Meanwhile, that does it for this edition of Bloomberg Technology. The CES coverage does not stop and continues tomorrow as well. Check it out on our podcast if you need to recap, this is Bloomberg technology.