Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live from coast to coast with Caroline Hide in New York and Eva Low in Sent Francisco.
This is Bloomberg Tech coming up.
Tesla proposes an unprecedented one trillion dollar pay package for Elon.
Musk plus Broadcom surges on earnings and a big new AI chip customer who we report is Open Ai.
And we speak with Qualcom CEO Cristiano amon As. The company partners with BMW to provide its automated driving brains.
But first we check out these markets, which are volatile to say the least. As we head towards this weekend, people taking money off the table. Look, we bought into the stock market throughout this training day and actually earlier in trade today. But in the Nazak one hundred now rolling up over a bit ed we pull back on some of the week's losses. We're now down eight ten percent on an Asbak one hundred over the course of five days, but remember we were shut on Monday, so
that factors in the Friday sell off too. More broadly, we think of a macro picture a week labor market, and we'll dive into that, but for now, look at the individual movers, which you've got.
Yep, our top story, Tesla is up two and a half percent. The board proposing a compensation package for Elon Musk one trillion dollars is the headline. It is over ten years, It is against multiple high bar milestones, both operational and financial, and there are some safeguards in there as well, additional safeguards to keep Elon Musk focused on Tesla.
Let's get out of Bloomberg's Dana Hole.
Who covers Tesla and leads our coverage of Elon Musk.
And that's where I want to start.
What are the milestones operational and financial Danna that Elon Musk and Tesla have to hit if he's going to get to the full one trillion package.
Yeah, So it's twelve tranches, and to sort of unlock a tranch, there's two components. Market cap, which is basically it's in half trillion dollar increments. So to reach the first one, it's a two trillion dollar market cap, and then everyone after that is by half a trillion. But it's operational milestones that include things like number of optimist robots, number of robotaxis in deployment, cumulative car sales FSD take rate, and these are very aggressive, very hard to meet milestones.
Tesla is nowhere close to them right now. But this is what the board thinks is going to motivate Elin to really dig in and really go guns blazing for this sort of AI robotics future that he recently outlined and masterplanned Part four.
And perhaps what really motivates him is twenty five percent ownership of the company. What's interesting and what motivates investors is his dedication, particularly moving away from politics, which seems to be one of the key points here in what the voters, what the investors are going to have to vote on. But it's also about thinking about succession. I was interesting and the eleventh and the twelfth Trane Donna.
Yeah, I mean clearly, you know, Musk has been the CEO of Tesla since two thousand and eight, and at some point they need to come up with a real succession plan. And I think that the committee worked very hard over the past seven months to kind of make it clear to investors that they are always talking about secession plans and that whenever the time comes from us to step down, they want his involvement in choosing a successor.
But this package is designed to keep Elon focus for the long haul and to really motivate him and give him that kind of like dopamine hit that he likes of kind of you know, swinging for the fences and doing crazy things that no one thought were possible.
Donna, very quickly, how does this package compare with the twenty eighteen package being disputed in the courts?
So if twenty eighteen was a moonshot package, this one really could be thought of as a Mars shot. And if you actually, you know, command f the proxy, there's a there's a reference to a Marsh shot in one of the footnotes. Because the numbers are so high, the milestones are I mean, we're not just talking billions anymore, we're talking trillions in marketcap. But remember Elon Musk has always talked about wanting Tesla to be the most valuable company in the world. This is a pay package that
incentivizes him to get there. And if he gets their shareholders, we'll also get there, which is why I think you're going to see a lot of investors support this package.
Dana, How question is with the course supported once again, but really interesting take on this one trillion potential payday. Let's get more from someone who used to be on the board, and then we now push forward to the future of Tesla with Steve Wesley from the Wesley Group. You are indeed the founder managing partner. Steve, I'm really interested as to some of these milestones. Yes, it's about
market capitalization is extraordinary. But to get twenty million cars on the road, to get ten million of those with FSD, to get one million robots one million robot taxis is that realistic?
Well?
I think that should be awesoully hard for tough that to do. And again I support incentive based pay packages for CEOs, and the pay package sounds astronomical, but so are the milestones to get it type. He's got a double market cap just even to get the first milestone.
And I understand what they're doing.
They want to get must one hundred percent focused on Tesla. But the big question is still, how do you get Tesla back on a growth trajectory. It's got two years of flat growth here. They've got to get permitting for full self driving in San Francisco and Austin first, Thanks first, and then they've got to start selling humanoid robots. Must have said they're going to shoot for five thousand this year.
That feels a little aspirational, but whatever it takes to kick the company into a higher gear, that's what shareholders should be looking for.
Steve Sectional page A fifty one of the proxy. If I bring it up and you allow me to read it to you, the board receives assurances that Mosk's involvement with the political space would wind down in a timely manner. The one of the reasons that Caroline and I wanted to get you on the show is you did sit on Tesla's board for three years. You've been a controller of a state in California. How do those provisions come about? How do you interpret it?
But look, I think there's two things going on.
Musk is saying, look, I want to be wildly incentivized if I do great things for shareholders, and I think shareholders I think the board is saying, okay, fair enough, we're going to have to set awfully highest standards. And that's not just going to be performance standards for selling more cars, for getting full self driving and really showing the promise of AI and Tesla and he's also going to have to really make the humanoid robot proposition real.
I think if he does those things, he deserves a big pay package.
If you've touched on something else.
The board clearly wants to see him focused on Tesla, and that probably means less politics, less forcus on some of the other properties that are already doing extraordinarily well. So you can see why the board constructed it as they did. Let's see if shareholders support it. I have a hynch state will and the big question is it's going to be game on for Tesla. Kenny hit these right.
Why gundation scores Within the operational goals, there is the target to produce one million humanoid Optimus robots. There is to build the Robotaxi fleet to one million vehicles. But there is still a goal in there, Steve to produce and sell and deliver twenty million electric vehicles to consumers. In other words, Tesla's historic bread and butter. That seems
to contradict like the big picture vision for AI. You know, in a world where Tesla operates a prietary ride hailing app, he's still being asked to deliver tens of millions of vehicles directly to the consumer.
And you put your finger on the lich fit here as always. What I love about this is what I suspect and I don't know about back to Elon wants is an audacious, big target, because that's what gets ISS adrenaline going great. What I think the board is pushing for is, hey, don't forget. You've got to sell a lot of electric and autonomous vehicles and competition's coming. So let's come back to the real world for a minute. Volkswagen unveiling twenty nine thousand dollars eighty two next week
in Europe. That's going to be hugely competitive. BYD Europe sales up two hundred and twenty five percent. Well, Tesla Europe sales are down fifty percent, cyber truck sales down fifty percent. Now Forward's coming out with a thirty thousand dollars competing truck, and in China, competition's huge. And now not only is BYD rocketing up with more EV sales for gly Star Wish a new ten thousand dollars EV
in China, biggest selling car in China. There's competition coming from all sides, and I think this is the board's way of saying, hey, don't forget, you still have to sell a lot of cars if you want anywhere you're this size of governess, it's not.
Going to be easy.
Yeah, Steve, So if you're on the board and as an investor, how does he turn around the bread and butter the selling of cars.
Well, again, that's we've talked about that one a lot. Everybody is going to be coming out with a twenty to twenty five thousand dollars car. Tesla has been late in getting that to market. They need to do it. Here's the point that people really need to get.
Their arms around.
We're reaching cost parody for evs this year. Now people are going to say, hey, what's going to happen in Q three? I can tell you in Q three EV sales are going to be up in the US because everybody's rushing to still get that last government credit and then it's going to go away. A lot of people say me, o, my, is that going to crush the industry? Absolutely not. What you should understand. The average EV price dropped fourteen thousand.
Dollars in twenty twenty five.
EV's are soon going to be cheaper than internal combustion vehicles and that's going to continue for the rest of our lives.
Steve.
Later in the program, we're going to go deep on the shareholder initiated proposal for Tesla to invest in Xai. But if you look across the broad package, would you please kindly assign what chances you give that shareholders will vote in favor of all of those provisions at the November annual meeting.
Well, look, it's hard to note. It's the biggest pay package in history by far. But again they've attached the goals to such high numbers where they're trying to create.
A weird win.
I have a hunch the shareholders are going to support this. I think what they really want to see is the two things you've pointed out, one musk dropping back from politics and focusing fully on Tesla into getting back to the reality of selling more cars, getting full regulatory approval for autonomous driving.
Those are the goals ahead of him. I hope he gets them.
Wesley a former Tesla board member now of Wesley Group and somebody with a command of the world of electric vehicles.
Thank you very much.
Now coming up shares a broadcommer surging today after news breaks that an unnamed customer deal from the call.
Well, it's open AI. That's next, Cary, what are you looking at?
I'm looking at the broader markets actually end look, maybe it feeds into anxiety around in video's command of the key hyperscalers and the growth that they see in terms of their own chip provision, training and inference. We're down four percent on in video. The socks are still up four ten percent thanks to Broadcom, but more broadly we're risk off. That's after the macro data. This is Bloomberg Tech.
Taking a look at the shares of broad coom up eight and a half percent of times in the session, reaching an all time high after posting record revenue. Bloomberg then reported that a new customer broadcord So working with the design and produce an artificial intelligence accelerator from twenty twenty six onwards is open AI. That's something that could challenge in video. Let's bring in Bloomberg Intelligence analyst Cunjensabani.
As normal Hocktan does not name, he alludes to this a six customer on the call, and when you publish your research, research and reaction, that's where you looked at A six and AI revenue.
Why focus there.
I mean that is the center skate story right now. Look, before this announcement, they were still the majority share owner of the A six accelerator landscape, and with this announcement now their share is actually going to increase if you can believe that. So right now they are the number
two AI semi company after Nvidia. When you think of the revenue size of AI revenues, I mean, just for comparing, contrast, right their air revenue now is running or going to be done, almost bigger than an entire data center revenue of the number two GPU provider in AMD. So they're
increasing their share at an unprecedented rate. Not just adding new customers and new revenue streams, were also increasing the unit volumes at the existing customers, so gaining share at existing customers and as well as adding more customers.
I mean a ten billion future backlo on coming from open AI is nice conngent, But compare and contrast Nvidia and broadcme for us because many want to mainly compete, but really, are we seeing this as an alternative this custom silicon or is it an and rather than an all?
At this point it is an end. Look, it's a lot more nuanced than just saying that the A six from Broadcom are going to kill in media. You know, the use case is really limited to say ten top ten global hyperscalers now, no doubt today these step top ten represent the largest spenders when it comes to accelerators. But the compute demand from these top ten today is so much more. It's not coming at the cost of
Nvidia GPUs. The bare case thesis is yes, in the future, as these customers keep improving their own chips, gen after gen keep improving their software, they could become sellers of the computer based on their own chip, the case study being the AWS and Anthropic deal.
However, there's still a major huge.
Market of enterprises sovieign customers Neo clouds, which still makes sense to be exclusively on the GPU's likes of Nvidia.
Qunjian Savani is always great to get your takes in your analyst from Blueberg Intelligence, we thank you. Look Alphabet actually a broad On customer. Let's talk about Alphabet right now, because.
Breaking news from the EU.
Google will be fined almost three billion euros that's three and a half billion dollars by the European Union because it's being ordered to stop favoring its own advertising technology services. Now this comes hot on the heels of the fact that Google seem to only get a slap on the wrist when it comes to its monopoly of search coming from Judge Meta. Here in the United States, the dog ed is still looking at ad tech.
Will we see the EU find.
Implicate on that perspective, because it seems as though there is a concern coming that it's got too much control.
It's not just a fine, you know, the European Union's now saying to Google that it needs to stop favoring its own ad technology platforms. And if you remember back in twenty twenty three, under the previous Competition Commissioner Margaret the vest there they had been warned that they needed to stop doing this, and over the term of Vesta's tenure within the European Commission, she went after Google on billions of euros of fine. So they have sixty days
to respond. Google's statement is this is unfair.
Coming up in conversation on the jobs market, we're gonna be speaking ed with Sarah Franklin, that's is CEO, on the state of the tech labor markets. After that pretty woful number coming from non time payrolls. That's a Blomberg Tech US August payrolls out earlier today and again of just twenty two thousand jobs, another downward revision in the previous month, and unemployment rising to four point three percent.
Bloomberg International Economics and Policy editor Michael McKee breaks down those numbers with a little bit of a tech slant for US.
Yes, Carol, it was not a good month for Donald Trump and his economic policies because job growth slowed tremendously and it has been soling for the last few months. You mentioned unemployment up seventy five basis points from July. It's starting to go higher and higher. But in terms of tech jobs, and I can see Ed rolling his eyes, going, what does it mean for tech? Tech's not special? Tech
lost a lot of jobs as well. There's not one tech category in the overall jobs report, but there's a lot of different ones in there, and I've pulled out a few to show what happened. In computer manufacturing twenty one hundred jobs lost. Semiconductor manufacturing thirty seven hundred jobs lost, computer systems designed that would be the software guys three three hundred jobs lost.
So some real.
Job losses for the people in tech. And the President foreshadowed it last night when he was asked about it at that dinner with tech company executives, and he said, yeah, maybe bad now, but just you wait, the Brooklyn guy or the Queen's guy, quoting the Brooklyn Dodgers, wait till
next year. In a year from now, he said, when these monstrous, huge, beautiful places, the palaces of genius, when they start opening up, you'll see, I think you'll see jobs numbers that are going to be absolutely incredible.
So we'll see if he is right. In a year.
My old eyes en roll Bloomberg's international economics correspondent Michael McKee with a Teconomic special breakdown of the latest jobs data from all in the State of the Labor Market. Sarah Franklin Lattice CEO joins us now lattus as about with a new State of the People report, and we come to you every job because of, like you know, the rich data that you have on your own technology platform.
But the most simple place to start is to say, look at Mike's reporting the breakdown of the latest jobs report, and say, is AI impacting any of the technology sector just yet?
The short answer is yes, we're seeing the impacts. We're seeing the job growth slow, we're seeing unemployment tick up. But what we're seeing really is transformation in the workplace. You're seeing every job is changing and every company is going through the transformational stage eliminating some of the roadwork but also investing in ways to increase effectiveness of their people.
Sarah, much of the transition has to be led by human resources.
But how much do.
You think the cuts come first and then the rehiring of different types of talent then comes, or are we seeing people just being asked to be more productive?
So with HR, it's an opportunity to be very strategic, and layoffs are really more like a fad diet. There's something where you get an immediate hit into the P and L, but the real work, the healthy habits, are not being implemented if you're not focusing on your workforce effectiveness and the habitual training that you have with all of your employees and the structures that you put in place.
We're going through change.
It's important to do this in a way that sets up companies for long term success, and that's what HR departments are really focused on today. When they're driving success with AI.
Talk about that success with Ai, Sarah, because that is something that's been questioned a lot in the last couple of weeks by this MIT report, people worrying the ninety five percent of pilots aren't delivering return on AI investment.
What have you heard from the people that hire.
Yeah, Caroline, it's so interesting because it's a headline that people have latched onto because there is fear. There's fear of what AI can do. And so when you can easily say this MIT report says that they're failing, that's easy to really embrace. But however, the reason the nuance in the report is that it's AI alone, not really when you look at AI that's set up properly, AI that's integrated well with systems, and so what it tells us is that we need to responsibly bring AI in.
You can't just set up AI and expect it to work. All of us that may buy an Alexa for our home, you can't just put it in your kitchen.
Expect it to dend the lights.
You need to set it up, configure it and understand how to use it. The same thing is true with AI, and so where AI is succeeding. It's when we have responsible practices, we have good integrations, and we have ethical usage of it.
So in your own survey and your own report, one of the things that struck me was the results around people's attitude towards maintaining work life balance. It talks to a bigger picture debate whether AI helps us and makes life easier in our daily work life so we can go and do more fun things outside of work. Is that really happening within the workplace or in any of the HR sectors that you track in.
There's definitely generational differences in the embracing of AI between Z millennials and what we're seeing though, is that AI whether it's freeing up time to have better work life balance or to do more strategic work. I don't think any of us want to do robotic work. We want to be able to focus on what makes us human, our creativity, our ingenuity, and this is what's so powerful that AI is enabling us to do.
One of the tropes that's going around at the moment is this nine ninety six culture. Dare I even reference the lift heavy, run far Marry Young eat eggs a steak, but Sarah more broadly, how much you see this culture being adopted by those who want to grind being shunned by those that have been in the workforce for a while.
Again getting back to there's a lot of fear. There's a fear that I'm not going to be relevant. There's a fear that my job may go away. And so a lot of this fear is driving the culture. And so what's most important right now is that everybody understands the urgency in scaling up themselves on AI and bringing AI skills into their workforce, not just the workforce of tomorrow, but the workforce of today. And so it's fear that
drives this lack of balance. And what we need to do as leaders is really help people understand that AI can be here to help us, It can give us superpowers, and it can really be a great way to us to transform our businesses and get back to growth.
So Frank can putting the realistic nature to the new work life balance or lat lere of CEO of Lattice, We appreciate it. Meanwhile, coming up or you a mosque, it doesn't seem to rest.
Will you be the first trillionaire? More on the Tesna CEO's pay package proposal. That's next.
This is blue Bag Tech. Welcome back to Bloomberg Tech. Let's take a look at the border markets. We do that from the flens of tech though, and that's that one hundred volatile day. At one point we saw that markets traded higher on the bad news being good news in terms of woful jobs data means the FED is going to cut. But now the market push is lower. We're off by tenhu percent. Maybe going to break back to the green. But vodataile day ed.
Some key stocks to watch great.
Yeah, So our top story is that Tesla's board is proposing a one trillion dollar conversation package for Elon Musk. I know that we don't normally do this, but like the stock's up three percent, a one sigma or one standard deviation move for this stock is nearer to five percent, and it kind of feels like a little bit unremarkable despite the fact that we're talking about a one trillion dollar compensation package. And of course the reality is that it's over ten years and there's a lot in there
to get through. So let's get to Bloemdog's Max chaft In, one of the team behind Bloomberg's Elon Inc.
Podcast.
And you know, I've spent four hours eating a three hundred page document and there's a lot in it. But there are these milestones and targets that Musk and Tesla need to hit to get to one trillion, which jumps out at you off the page when you saw them.
I Mean, the thing I think is most significant is there there are provisions in here about succession planning, about the idea that Elon Musk needs to come up with a you know, with a way to who's gonna oversee this company beyond him, which I think is really important.
And I think this trillion.
Dollar package reflects the fact that Tesla and Elon Musks are kind of inextricably linked, you know, for better or worse, for worse being of course the political blowback that has come from Musk's association with Donald Trump and his centrality to many of the more unpopular policies pursued by the Trump administration, but also the idea and many many Tesla investors, as you know ed see it this way that Elon Musk has some kind of special ability to see the future.
And that's what this is about.
This is a long long term bet on that relationship, while also acknowledging that at some time that at some point, hopefully for investors deep into the future, that that relationship will come to an end.
It's so interesting.
Investors, of course, agreed to the previous fifty six billion dollar pay package, and the judge that has overruled that and put it on pause was like, it's unfathomably large. Was part of her concern, as well as the board's role within it.
This time.
They've been very careful to try and make sure that the board seems independent, but they are giving in on what he wants, which is twenty five percent of ches.
Yeah, he's been out there for the last year and a half or so essentially campaigning for a bigger stake in the company. And you might ask yourself, well, that's kind of strange. How does a ceo who you know, there are many owners who are putting these stickers on their cars that say I bought this before he went crazy, A CEO who has in some ways lost a part of his customer base. How is he asking for a massive periods?
And I think the.
Answer is, like I said, investors think this is a bet on the future. It's not necessarily about cars about after this, it's about self driving cars. It's about Tesla as this massive robotic car though.
Yes, but Tronch eleven and Tronch twelve directly relate to Musk's participation right in a succession plan. Just going back to all of that, Bloomber's Matchchafkin for weeks, we'll be going through this compensation proposal, thank you very much. There's another side to it, in another story. A lot of the momentum behind a shareholder resolution for Tesla to potentially
invest in Xai came from retail investors. One of those that led the charge lobbying others in recent months is Alexandre Merz aka Tesla Bloomer Mama on x. Metz is a prominent figure in that group of retail investors who backed Tesla and Musk, a longtime Tesla investor and shareholder and joins us now. So it's included a shareholder initiated proposal for Tesla to invest in Xai.
Your reaction please great, very happy. Obviously we have worked one that for a while. Well now. It all started last year when another retail shareholder, Gully asked Elon whether that is possible at that point, obviously Xa's valuation was much lower. Elon had then responded that he would ask the board. He came back a couple of quarters later saying, this needs a shareholder vote, and then shareholders asked for a proposal to be included.
And you'll get to vote in November.
Alexandra, why is it important that you have skin in the game with Xai?
What is the future as you see it?
Because according to this pay package, it is still twenty million cars on the road.
It is still FSD.
Oh, it is still cars. It is still fic D. That is Tesla's bread and butter. But every Tesla now and Ed knows because he drives one already has groc in the car. And Groc is the Xai product of the large language model that is used, derived from x former Twitter communication and conversations, and the strongest, in my view, a large language model there.
Is, Alexandra, I did use FSD on the ways work this morning. I only used GROP during the journey. The skeptic would say, Xai is burning through cash. It is a company facing massive rivalry with open Ai and Anthropic. It can't stand on its own two feet. This would be Tesla bailing out XAI. How do you feel about that?
Not at all.
I mean, honestly, we had recent reports from Elon saying that XAI doesn't need any current cash. The question is obviously at what price, And the shareholder proposal the way it is proposed, does kick it back a little bit to the board to find the right valuation, because when we lobbied for this shareholder inclusion, we kept it very generic. There is a clear definition, and I think the board has clearly said they don't want to have the responsibility
of the basic decision. They are not recommending it or four against it. This is shareholders deciding by themselves whether they want XII or not. In my view, I think it will be a fantastic financial investment. I also see the synergies between XII and Tesla just growing with the gods even more. But it is coming down to real shareholder democracy, shareholders deciding whether this investment has to be done or not.
Last time, the courts exerted their power over what shareholders did sign off, and at that time the judge discussed that it was fathomable amount of money that was being offered to Elon Musk and that the board didn't have enough independence. What do you make of this current pay package proposal in that respect?
I mean, first of all, we're in Texas, We're not in Delaware anymore. And then let me just quickly address Delaware that judgment if it stands in appeal, and we will know in a couple of months. There is in October fifteenth the hearing, and then we'll probably know by January February whether it stands or not. But if that judgment stands, Tesla has in the current proxy now also a shareholder vote on whether they want to have a plan be in place for the twenty eighteen package to
be fulfilled. So if that Plan B becomes necessary, because Delawarre's courts don't understand what our shareholder interest is. But so if that happens, it will actually cost us billions and billions more, probably fifty to sixty billion more than what it initially cost us in twenty eighteen. So I don't see how that would be in any favor to
US shareholders. The package will live Plan A or Plan B. But such the question is, will we get it the cheap way, the twenty eighteen way, or we will have to pay sixty billion more because a judge ruled against.
Us, and eventually maybe one trillion if you hit an eight and a half trillion dollar market capitalization and then some key operational target.
And will be happy to pay.
I can tell you that because if he gets it, we got it.
Alexander Metz wellenf Investor Services is great to have you back on the show.
Coming up, we'll talk.
To the guy position to be the Silicon Valley candidate for California governor. Tech founder Ethan Agowell joins us this will bring their tech. President Trump welcome top tech leaders to the White House yesterday to discuss AI and the dinner. CEOs reiterated their pleasures to invest hundreds of billions in the United States, while Trump said chip makers that didn't build in the United States would face substantial tariffs.
Just take a listen chips and so many conductors. There will be putting tariffs on companies that aren't coming in. We'll be putting a tariff very shortly, probably are hearing. We'll be putting a fairly substantial teriff, or not that high, but fairly substantial tariff, with the understanding that if they come into the country, if they're coming in building planning to come in.
It will not be a tiff.
We continue with technology and politics.
Startup founder Ethan Agoole is aiming to position himself as the Silicon Valley candidate in a run for California governor. The two times startup founder has raised money from VC firms like Andresen Horowitz in the past. Now he's looking to win votes with his tech Forward campaign pitches. Ethan Agowyle joins US Now, this is early in a cycle. It seems there will be a crowded field of many
political heavyweights, likely others from the technology industry. What chances do you really have of being governor of California.
There's a lot of other candidates that are running, mostly from southern California, most of whom are politicians. My view is, if you are generally happy with the way things are going in California, you have lots of other options. If you are looking for a systematic reset and a complete change.
I present a different opportunity, a.
Different opportunity that leans into maybe Krypto being an ability to pay your taxes. You're leaning into DMV apps, for example, But at the same time, a load of our team can't get into work today because the bar is down. So I'm interested as to what the infrastructure perspective is here.
Yeah, hey, hey Caroline, good to see you.
I mean, look, first and foremost, I trust Californians, which is something that has been lost. Our politicians love telling us what to do. Infrastructure is a key part of the platform. What what's happening is Californians like people come here.
I mean Ed and I were just talking.
People come here because they want to live a great life, They want to enjoy the weather, they want to build something for their family. And that stopped happening because jobs aren't available here. You guys saw the jobs report this morning. Companies are leaving the state. Were overregulated. You can't build a house, you can't do anything without the government trying to get a piece of it or.
Try to tell you what to do. That's what politicians love to do.
So what we need is someone who understands the Californians themselves can be trusted, who actually likes Californians, and who actually wants them.
To realize their potential.
California is a state of massive potential and we're just not realizing.
It because of all this regulation.
Okay, let's bring up some of the policies that are on your platform, because I think that was Caroline's question. What is the specific proposal you have to fix infrastructure like BART, to fix housing, jobs creation in Silicon Valley, etc.
Yeah, it starts and ends with SEQUA. SEQUA is the California Environmental Quality Act. It was passed in the seventies when Reagan was governor, and it initially had some good ideas, but it's been leveraged and extorted to all help at this point where anybody can sue anybody to stop any construction from happening. And that's why you don't see modular construction happening in San Francisco. That's why you don't see construction happening in housing in LA. That's why there was
a water treatment facility in Huntington Beach. It was going to do fifty million gallons of drinkable water. It got stopped under SEQUA. There's six hundred thousand people that live up in Mendocino that are getting a pg and e pgne's plant is getting shut down.
They're not going to have access to.
Reliable power because the salmon and the eel are going to have trouble. I mean, these are just ridiculous things that are happening in California. I think that California humans should actually live well.
And if I'm going to jump in a you're basically saying I want to deregulate. Yes, very similar to what the Trump administration is proposing across a number of industries.
Yeah.
I don't think this is a democratic or Republican issue.
I think this is just common sense.
Like the reason California is losing half a million people is because the regulation is driving jobs out.
It's that simple.
Like other states like Arizona, they beg companies to come to their states to create jobs. California does everything it can to kick companies out. MASA Son announced that he's investing a trillion dollars in data centers. All of that money is going to Arizona. Why is it not coming to California. Whatever you think of Elon I mean we just talked about his pay package, whatever you think of
the guy. Tesla is based in California. They moved to Texas and they're creating twenty two thousand jobs in gigafactory there. Why are those jobs not in California. Are we shocked that people are leaving? Of course, not because there's no jobs here. It's it's really that simple in terms.
Of policy and how you work with an administration that perhaps the current governor is very much on TikTok, actively working against. I'm interested as to what you think the relationship of Silicon Valley and whether you think that it's a voting base. But we'll get behind you, because boy, they pro the administration, some.
Of them at the moment, it feels.
And you're running on a Democratic ticket.
I am running as a Democrat.
Thirty four percent of California voted for Trump, So the notion that California is a deep blue state is just not true. We're not ninety five five or ninety ten. We need to understand that the state has shifted. And again, I don't blame people. They're frustrated with what they're seeing.
So look, my view is, if you want to vote for somebody who's going to kind of keep things the same, there's a lot of smart candidates, just Katie Porter, Antonio Vilergrosa, et cetera, who are doing a good job in SoCal But if you are actually frustrated with what's happening, and you think the state can realize it's potential better.
That's where you come to me.
Where you want a little less regulation, a little less of government all.
Over over your back.
We are of course going to be inviting you, alongside other candidates to be joining us as the race heats up for California.
Governor Ethan Algois. We appreciate your time today, stay well.
Meanwhile, coming up Qualcom CEO Cristiano i'mon joining us to discuss the chip designers you partnership with BMW, deepening that relationship as it aims to improve self driving capabilities.
This is Bloomberg Tech.
Qualcomm Well, it's steering deeper into the auto industry, teaming up with BMW to debut it's new Snapdragon Ride Pilot. It's an automated driving platform design to be safety and driver assistance. The system is just being rolled out in the all new BMWIX three. Let's bring in Qualcom CEO Christiano, I'm on for more. You call it a revolutionary driver assistance system.
How is your software that different?
Look?
We are incredibly excited about what we did with BMW. There's been three years in development, focus on safety, and it's different for a number of reasons.
I think the first one is one of the things.
You saw about BMW I x three it's the incredible range. So when you talk about assistant driving in autonomy, you need to put server class computing power in Intel's cars, and with Qualcom technology there's no compromise. You have all the computing power, but you still have efficiency on power consumption. You can get incredible range. The second thing is it's scalable. It goes into every tier car, so we're super excited about it.
Christiano, I've been studying the Snapdragon Ride pilot, the sec architecture, the software piece. This is highly analogous with the camera based system that Tesla has right with FSD. You just talked about it being scalable for that reason, did you benchmark against that?
So two different important parts.
First, the architecture is scalable, starting from basic level ADS all the way to multiple cameras and multiple sensors for you to do navigation on autopilot.
And urban environment and high wain environments.
That means it can scale to entry level AIDAS systems and entry level cars.
All the way to the full capabilities.
The other thing is has been certified now in sixty countries and going. It's launching and a lot of people will be able to see the performers. Actually, we're super excited for people to see how it performs. And one thing that is great about this we've done this with BMW, but it's available for the entire industry, every OEM we'll be able to use it and BMWN welcome. We want that and people will be able to see compare and I think that's a great opportunity.
You know, my question was one of sort of an academic one because it's the argument of a camera based only system from an economic standpoint versus also including.
Lidar and radar.
But you're super focused on the compute, not just performance but energy usage of the compute. Could you talk a little bit about how you engineered to that level.
Yes, I think the qualcom DNA ED is it's about efficient computing because we design all of our chips assuming there's a battery on the other side.
It's not plugged to the wall.
So I think you have the benefit of a lot of the QUALM energy efficiency compute, and you have the ability to get a lot of the computing power require in an architecture that's actually incredibly efficient from a turmo management and from a power management.
The second thing to fully.
Answer your par question is you do have the capabilities to do navigate on autopilot in urban and high environments even if you have complex sensors are cameras in radars.
Chris, you want to push us forward because your real focus on auto has been one of diversification of qualcom more broadly. Of course, the auto sector has its trials and tribulations. How much is this going to drive growth for you for the business in the longer.
Term, Caroline's a great question. Remember we talked about our pipeline of forty five billion dollars in automotive, which is kind of translating into revenue. We see quarter after quarter record revenue for Qualkon, especially because it's not about moving with the size of the market. Is moving into share as new cars or a lounge for technology. The pipeline is converting, and I look at this stack that we're launching on the SnapTag and right pilot with bmw IS.
We look at that as an opportunity for expansion. In the forty five billion pipeline, one third of that is ADS, and it's included of course the BMW project, but now other OEMs can use it, and that's going to be upside on the forty five billion pipeline.
Christiano last night that the President hosts a number of technology leaders at the White House. I believe you're invited but unable to attend. And his message is very simple, tariffs are coming specific to chips, but those that invest in America will be spared. How is FOLKOM thinking about that? You know, a lot of emphasis gets put on TSMC in Arizona, but is that like big enough to serve all of you.
Yes, it's unfortunate that we couldn't attend. We send a representative, but we had the big party in San Diego to Stadium for the forty universary of Qualcom.
And to your question, look, we're excited about that.
Remember we were a fabulous company, so we need a supply chain that is resilient and in America. We like the fact that TSMC, which is one of our suppliers and invest in America. We like the fact that Sansung, another one of our suppliers, investing in the America. And for Qualcom, this is exactly great news. We want diversification of manufacturing. We want more capacity in America, and we have.
Si Intel an option, Christiana, not an option today.
I think we would like Intel to be an option. They have been talking about moving to the next process technology, which they call it the one that comes after eighteen A. For us, we need a technology that has efficient power consumption. I think we just had this whole conversation on car. So if in the future Intel's ready for us, we'll be an option.
Right now. Our supplier's realitysm C and SASA.
Welcome CEO, Christianamon. It's great to have you back on Bloomberg Tech. Thank you very much.
Does it for this edition of Bloomberg Tech ed? What a week?
Yeah, huge headline, one trillion compackage Felon Musk. We have months to digest it. Don't forget check out the podcast. You know where to find it on Bloomberg Terminal and online on Apple Spotify at iHeart. A short week, but a big week from New York City in San Francisco.
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