From Marhard. We're Innovation, Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Love Love.
I'm Caroline Heinderlumberg's world headquarters in New York and I met Ludlow in San Francisco.
This is Bloomberg Technology coming up.
Full earnings coverage ahead.
We've got Qualcom, the ches popping after chip maker is providing an upbeat forecast, singing the mobile phone slump.
It's easing and sticking with smartphones. We'll push your head to earnings from Apple, which a duo to come out after the bell today.
And we'll have the latest in the trial of Sam Magunfried as Jura's begin deliberations today.
But first, let's check in on these markets and.
The feel good music after the Federal Reserve and that feeling that the Fed is basically perhaps done with the real fast and few pace of rate heights really dials into a desire to buy these stocks in the particularly in the tech space. We're up five straight days on then, now's that one hundred best winning streets since we sinceince about August of last year.
And indeed we're seeing.
S and P five hundred having its best day since August on the day, so overall at one point three percent. We're seeing All country World Index basically European stocks pushed higher, so tooed in Asia we're having our best day in one months, it would seen. We're up one point six percent, best day on the All Country World Index since the
beginning of the year. And I'm looking at the US thirty year as we see that sort of desire to be buying into bond markets because yields are likely falling because maybe the Federal Reserve doesn't have to keep on hiking into this particular macro economy. We're down some nine basis points on the longer end. We were down much further earlier on today, And love quick look at what's happening in the world of crypto, because this is.
An interesting one.
The dollar is down because we're not anticipating such a hawkish FED, but those bitcoins, so that just shows that there's really some pulling away from this particular risk asset. At the moment, we're off by some two percent, so thirty four thousand still heading above that all important sort of thirty four thousand dollars level, but notable that we've got a little bit of caution in that particular space.
What are you looking at in the micro.
There are many many technology earnings to pass over, and the first is Peloton interesting because they gave a guidance for revenue for the rest of the year there was pretty weak. They're having trouble converting free users of their app into paid subscribers. They were really down after Earning's hit. Now they're up significantly eleven percent. Growth is coming, they say in the market, clearly buying it another p Palenteer also upgrading its profit outlook for the full year twenty three,
also slightly upgrading its revenue expectations. The story AI Palenteer's and AI sorry you and I've hit all year long. Now the financials are starting to show that four straight quarter of profit also up eighteen percent. Then after market we get Apple. We know what's coming. Four straight quarter of sales declined. You have to go about two decades for Apple to have a slump like that. But we get some insight into how the iPhone fifteen is doing, so we get about nine days worth of sales in
that September quarter. The main one I'm looking at right now is quite forecast for the current period of revenue nine point one to nine point nine billion dollars a big range, but at the midpoint of that range you're well above analyst expectations. Is for sales. The thinking it signals that things were recovering in the smartphone market. So let's get more on that cloud coom story and bring
in congen Sibani or Bloomberg intelligence. That's the guidance. What do you read into that congent about the smartphone market globally?
Thanks Ed, I mean, coming into the quarter, it was pretty clear that the smartt phone market had hit its bottom. Customers have been clearing out inventory for a few weeks now, but what was not clear was what to expect in terms of the speed and size of the market snapback, especially in the Android market in China, which is sort of which was sort of holding back the start of the recovery for Qualcom, and there was this build up anxiety around if we are going to have brace for
another disappointment. So it was a sile of relief to see signs of green shoots over there, especially from their better one Q guidance and a couple of data points to valid it was the twenty five percent sequential revenue growth from the Chinese Android OEMs, and them confirming that they will keep the majority share at Samsung twenty four launch.
All of this, though, is at a time where Christiana Armon is trying to diversify away from really the all in on the mobile space.
How is that working?
How is that bearing fruit when you're looking at connected devices, when you're looking at automotive for example.
Look, the a PC is really a call option for them.
Specifically in terms of street estimates, the numbers right now don't even attribute much revenue coming from this business, and even by Qualcom's own commentary, they don't expect PC revenue to start contributing significantly under twenty twenty five. So the discussion right now around PC is more related to adding to the sentiment around this rather than the fundamentals.
The good thing for them, though, is if they have any.
Success, no matter what the size, it will all be upside from the current numbers.
Can general want to take into some of your analysis you published last night that's about China. The landscape for smartphones in China has changed in terms of where the chips are coming from and also planning for the future. Based on what Qualcom told us, what do you read into the Chinese market for that name?
Yeah, I mean again, like I said, it was the one thing that was holding back the strong recovery like we're seeing in PCs versus not seeing in smartphone. So there is good signs that the Chinese android OEMs are now pulling in and building on that inventory.
So that's good for Qualcomm.
The other factor there is the uncertainty about Huave possibly gaining share, So we still have to wait and see how this plays out. But right now with them getting Apple back and again getting a lot more content and Android OEMs, as long as this market keeps coming back, it's going to be a double tail wind for Qualcomm.
Conjohn Savani and we thank you so much for Blue meg Intelligence and all things Qualcom and indeed China. Perfect segue there for in to our next discussion because he just mentioned Apple there, he mentioned Huawei. That's talking about Apple's reporting results after the battle. Well, he hate to walk us through what to expect is Bloomberg's Mark German and Mark a lot of people anticipating that China is going to play a big role in this set of numbers.
I want to really focus in.
I wish we had a replay of something Kunjan said when he first started the discussion. He noted that the Qualcom expectation for sales from Chinese handset makers our way up.
I was preparing for Apple earning yesterday.
And a headlined cross on the terminal during the pual foam RaaS that said, Chinese phonemaker sales connected to Qualcom are anticipated to be up a third in the current quarter where they were just up a third. That's good news for Qualcomb if you think about it, that's not very good news for Apple. To answer your question, obviously, Qualcomm makes a lot of the CPUs and chips that go into Android phones, a lot of the ones developed by Chinese manufacturers.
But Apple makes their own chips. Right, If Qualtcom sales are.
Going way up in China the handset makers there, something's got to give, right, So that answer here's your question. I think about what's going on with Apple in China. We may be in for a little bit of a dip there because Hawkom is taking share from somewhere, right, So I think that's something to look out for.
For sure.
There's the financials backward looking at what happened in the fiscal court had just gone and then you listen to what Tim Cook and Eddie Q will say about the future. The iPhone fifteen went on sale September twenty second, Right, that gives about nine days of sales in the quarter that they'll book. But in that time they've raised services prices. We had all those details on the next generation Mac
and M three chips. What moves the needle mark outside of iPhone towards the end of the year and into twenty four.
Yeah, I think it's wearables.
I think it's stocking stoppers potentially like the lower end Apple watches in the AirPods.
I think that is going to probably.
Result in a lot of the momentum you're going to see from Apple in the holiday quarter. Obviously, the iPhone fifteen pro is going to do exceptionally well. You know, Apple has a pretty easy cart for the iPhone fifteen, Right, this is a redesigned phone, titanium, that new look, that new material, that new three and animator chip. That's what
sells consumers. And the good news for Apple is it doesn't seem that they have any major production hiccups this time around last year you had a minor iPhone update with the iPhone fourteen, right, you had major shipment delays and major shipment constraints that you don't have this year. So you should see some nice growth on the iPhone despite the situation potentially occurring in China. So I'm looking
for positivity for sure on the iPhone. In fact, if you look at Wall Street expectations for the previous quarter, the iPhone is one of the only business from Apple that we're expecting growth in the other two and this is very surprising given everything.
We just discussed. Is Greater China.
Wall Street is anticipating two billion dollars of year over year growth in the China business, right, going from about fifteen billion and change to about seventeen billion in just that Greater China region. So you know, it appears even if the iPhone does slow down in China, they're they're going to make up for the iPhone sales and other regions, and they're going to make up for.
The iPhone China with other products.
The Apple Watch is certainly growing in popularity in China. It's become a really big deal there. Even the Mac right, these higher priced, more luxurious Macs those are becoming bigger sellers in China. So no matter what's happening to the iPhone, I think based on what Wall Street is saying that they are going to make.
Up for it.
So we want to thank you Marghum and all things Apple as we anticipate those numbers off the bell. I mean while coming up, Look, Canadian e commerce firm Shopify talking earning there two beating estimates for the third quarter.
Shares they rally hard.
A conversation with the president Harley Finkelstein, that's coming up next. This is Bluemberg technology, discipline, cost cutting, that's just one of the factors that helps Shopify see positive results in their third quarter. The Canadian based e commerce platform shop says it's report showcase the durability of its business model, revenue, earnings per share, they beat estimates and then some joining
us now on how the strategy is playing out. Harley Finkelstein, president of Shopify, And look, clearly investors love the numbers today. We're seeing the shares rally hard. Harley, how sustainable is that? That level of discipline but also showing growth into the next fiscal quarter.
Yeah, thanks for having me on the show.
Caroline and Ed look.
We later at a very deliberate vision to balance both operational ambition, which we certainly have a lot of, but also the financial discipline. And the results speak for themselves.
We are delivering top land growth and profitability. Q three GMV, which of course is the proxy for how well the merchants are doing on Shopify, was up twenty two percent to fifty six billion, Revenue was up to twenty five percent to one point seven billion, and as you pointed out, we have cash flow of north of two hundred and seventy million now with every quarter ticking up. That cash flow is a percentage of revenue, and Q four is
expected to keep this trend going. One of the other things that I don't think is getting covered, but is very exciting to us, is that more of the largest and most hord and brands on the planet are joining Shopify, like Ted Baker and Tom's and LVMH's, Puuci and Quicksilver and Billabong.
And it's a really great for us.
It's a great story, but it's a story of balancing both growth and profitability simultaneously. And that's because we have a new shape of the company, which is far more focused on our main quest and things that are most important.
Highly on that new shape and those brands that you're talking about. How much of that focuses into the outlook. There's an accusation out there from some on the street that you guys are a little bit conservative with the outlook and maybe you could do a bit more.
Yeah, well, look, I think we are as a company firing up all cylinders, both horizontally and vertically. On the vertical side, obviously, Shopify is known to be the entrepreneurship company, the place where millions of small businesses go to start
businesses and grow those businesses. But we also have this incredible effort around enterprise commerce whereby some of the largest companies some of those I mentioned, but you know, companies like Spanks for example, and Glossier for example, and the Mars Company for example, and Blackenedncker.
All come into Shopify as well.
At the same time, one of the other metrics that we really think a lot about is our product attach rate, and that really is a proxy for the usage of our products and platform buyer merchants. That's over three percent, so that means more merchants are taking more of our products, whether that's things like capital or shipping, or payments or even audiences for example. We like that, we like being the center of the business for these millions of stores, and.
You managed this way bigger players and keep those smaller players at the same time as increasing pricing. I'm interested in how you are thinking about monetization going forward.
Holly.
Yeah, montation is something that we certainly in the last year and a half or so, I have been spending a lot more time thinking about. I've been at Shopify now for over a third of my life, almost fourteen years now, and we really never change pricing. We made our first change last year to our basic plan, which most merchants are using. We increased it by about a third, by but thirty three percent, and we saw very little pushback.
And that sort of suggests to us that the value to cost ratio of Shopify is so far in the side of value, and so as we think about changing pricing across other products or even other plans, we want to be deliberate about it, but we believe that we still have an opportunity to increase pricing in the future.
Holly, quickly, what's the AI story for Shopify?
Yeah, Well, look, I think we are actually uniquely positioned to harness the power of AI. We think that particularly small businesses and entrepreneurs will really benefit from these tools. But unlike other generator of AI products, are AI product which is called Shopify Magic One. It's designed specifically for commerce and retail. But also it's not just one feature,
one product. What we've done is we've embedded across all of our features and all of our workflows so that more people can start businesses and more people can be a lot more successful. And merchants are finding it to be really valuable. They spend more time making their products and less time doing some of the administrative tasks, which frankly, AI is really good at.
Holly Finklestein, president of Shop five, Always greats. Catch up, Thank you.
Welcome back to Bloomberg Technology. I'm Caroline had in New York and.
I'm Ed Ludlow in San Francisco. Carra quit check in on the markets, and as you know, this week we're checking in on the European close. Given the time difference, the stock six hundred Europe, which is our main gauge of European equities, on track for a fourth straight gain or has closed now and hit a four straight day of gains, which is its longest streak of winds going back to July. A lot of the trading was around what was happening with the Fed last night, even though
that's a different jurisdiction. Also the BOE, the Bank of England, keeping rates are unchanged and really talking down the prospect of further cuts. We just heard, of course on Bloomberg Television our interview with the Bank of England's governor. This is what the foot see one hundred looks like, up one point four percent on the day, Serling GBPUSD up to ten to four percent, and UK ten year yield soft for a little bit eleven basis points four point
three eight percent. One more day in the week. We'll review that European market close update, Caroline.
Meanwhile, let's just check in on how the US is performing.
And I have to say it was rallying in the UK and we've been rallying worldwide today on the back of macropolicy. The Federal of course looking like it's done, perhaps with its really hawkish viewpoint on where rates have to go. Now sack at one point three percent. I'm shining a light, and what on earth is happening with Peloton, because of course it is, you know, a volatile stock.
Nowaday is only worth five dollars when you're looking at it's per share price point twelve dollars, a twelve percent rally when we had been sinking hard after their numbers.
This is all is really.
They actually managed to beat in their fiscal first quart when it comes to revenue, when it comes to a bit darm when it comes to margin.
But there is a slightly weak look ahead in.
Terms of signaling what Bernstein is saying basically zero growth.
So there's a bare narrative there.
However, the first called Martin first quarter margins were particularly strong, says Bernstein.
Nevertheless, kind of co ingenuity.
For example of that particular analyst downgrading the stock to a price target of five versus eight dollars and cuts from a hold to a hold from a by So interesting narrative coming from Peloton. Bitcoin under pressure today even with the dollar weaker, So interesting selling of that particular with scasid d.
All Right, another earnings one. We're watching Airbnb. Let's bring in more, get more with Bloomberg's Natali learning Natalie, I'm looking at shares with down more than three percent. This is the story of the world economy catching up with Airbnb a little bit in terms of the outlook that they gave us.
Yes, So, in their fourth quarter outlook statement, they mentioned they saw some early volatility in the quarter. On their earnings call, they mentioned it was hard to pinpoint what exactly it was, but they pointed it to macro economic factors as well as political tensions.
Leslie, we sit here in New York and what's been so interesting is the regulatory pressure that Airbnb is coming under in this particular city. Do they speak to that narrative just how much the business model is kind of being uphended at the moment right.
Their take is that New York is like a smaller market right now for them, like around one percent of their revenue before the regulations kicked in. And their take is that over eighty percent of their top markets have been regulated. So they're still confident that with their business model, with supply of the listing still growing at a double digit rate.
What was interesting also about Airbnb and its leadership was they didn't have to sort of make those painful announcements of job cuts when everyone else was they managed to steer the business remain lean. Are they going to have to think about that a little bit more with macroeconomic headwinds, with geopolitical tensions, with the old regulatory headwind here in the US.
Right, a lot of analysts who have It's serrating at the highest number right now, and a lot of her are looking for long term growth catalysts, and this is why they are coming up with product updates to try to make the platform more reliable, getting continue hosting with them and also gets to continue booking with them.
So the response is really key here. You know, the pandemic era, that behavior of consumers has changed. Stays of twenty eight days or more in focus. But next week we think we're going to get all kinds of new products. What does the future look like for Airbnb and Natalie.
Right CEO Brian Cheskey says, they're laying the foundation for a lot of the new services that are coming out, whether it's using AI as a better matching service. All these updates are to you know, tell guests and hosts to keep you know, booking and using their platforms.
Won't keep an eye on how those product anounments do you transpond Natalie Lung, We thank you for the inside track on Airbnb. Meanwhile, we've got more on earnings, etc. Of course came out.
We want to bring in Punham, Gil from Bluebeg Intelligence and Punham.
I'm so fascinated with ETC's numbers because we just spoke with the president of Shopify feeling very resilient about where a consumer is managing to be and really show path to growth.
Why is etc.
Not managing to mimic that sort of consumer strength.
I think it's it's a little bit of a different story because we are seeing consumer spending slow down, consumers are making trade offs, so I think it's about more where are you finding what you want? We saw a good result out of Amazon, so you can't say that the consumer is down everywhere. But I think with Etsy. You know, when you think of Etsy, you think about gift giving, right, you think about what can you get
that's unique and different? But Etsy offers so much more than that that there just is an awareness for so I think it's about them continuing to build that awareness that's going to get more buyers onto the platform. They saw a really nice increase in sellers in the quarter. They were up about nineteen percent, which is encouraging. So people want to sell on Etsy. Small businesses want to sell on Etsy, but they still need.
The buyer growth.
We need to see more buyer growth. We need to see buyers want different things from Etsy, not.
Just the gifts Panama. I was reading your outlook on Etsy last night, and one of the things you talk about is something Caroline and I have discussed with every commerce company in the world, which is personalization. Why will that help them address the issues you just outlined Because.
When you go online, you have an endless aisle. You go to a store, you walked the aisle where you know you'll find what you want. But when you go online, list goes on and on and on forever. So the ability to personalize for any company and really give the consumer more of what they want than just everything, is
going to help drive conversion. Online conversion is just low single digits, so people browse more online than they buy, and the ability to personalize, the ability to cater to their needs is really going to help drive that conversion higher.
I mean, I'm kind of amazed that people don't realize the breadth of things you can get on Etsy.
I'm just thinking producers.
Reminding us of the Taylor Swift and the Beyonce getting your glitter and your silver ahead of time. Everyone was turning to an Etsy at that particular moment. I think of how much Halloween must be a push forward for makers on Etsy.
What do you think?
What do you want to see from leadership here? Basically to market themselves.
I think they need to just invest in marketing. They need to get the word out there that Etsy has a lot more. You know, think about the home category that they talked about. We are seeing people invest back in their homes. You know, they took a pause after the pandemic, but now you're thinking, you know, can I upgrade something in my home because it's too expensive to
upgrade out of my home into a new one. So you're seeing stuff like that plan and at C sells a lot of home but that's not where you go for your home stuff. Right now, You've got a Wayfair, you got to Amazon, You've got to target Walmart.
Et cetera.
Interesting, it's saying that Shopers are focused on essentials less on discretionary. That's the macro impact. Punam Goyle love speaking with you. Thank you from Bloomberg Intelligence.
Meanwhile, coming up, we'll get the latest from the trial and Juan sam magmuin Freed. DURAS they're beginning their deliberations today.
We're going to be joined by a rock Change Association CEO Chris Smith about well the overall impact on the cryptospace ed.
YEP more earnings as well paypower as a mover to the upside boosted its profit outlook. Remember this is the first earnings that Alex Chris is overseeing as CEO. They announcement you see FO Jamie Miller who joins from ERTs and Young. They also received a subpoena from the SEC relating to their work in dollar denominated stable coin and in the regulatory filing say they're complying with the SEC. So that's going to be a story track which shares
up almost five percent. This is Bloombog Technology. With the FTX trial now wrapped up, DURAS are beginning deliberation on Sam Bankman Freed's fate right now today. What does it mean for the crypto industry? What does it mean for Sam Bankman Free. That's bringing Kristensen Air, CEO of the Blockchain Association for kind of the bigger picture on what's going on here? But first of all, okay, the jury
is away deliberating. Yes, the closing argument from Sam Bankman, Freed's attorney was that he has been painted unjustifiably so as a villain. And Bloomberg has this piece today that there were six opportunities where he was given a choice tell the truth or double down, and the prosecution says he doubled down. What are you makable of that?
Yeah?
I mean, I think the evidence is incredibly compelling. It seemed that every time Sam got in trouble, instead of confronting that trouble, he was like a gambler in Vegas and ended up doubling down again. And unfortunately he was apparently getting that money from customer fund.
So, you know, very interesting.
I think, a dramatic trial. I'm very curious to see what verdict the jury returns. It sounds like some speculate that could happen even as soon as today. But you know, I think from the crypto industry perspective, we're very eager to see this chapter closed. We feel like people are unfairly conflating the entire industry with one man in one company, when really this is a story about a krook, not a story about crypto, and so we're excited to move forward.
But yes, certainly been an entertaining, an interesting trial, something I think they'll make movies on.
This is very much an innocent until proven guilty situation. It is a jury trial after rule, but in the event survivor outcome. Has this series been damaging to the goals of the Blockchain Association because you essentially want the underlying technology that supports crypto to be mainstream globally.
Yes, absolutely, and we're trying to get public policy makers in Washington to understand the technology so that we can get the appropriate regulatory framework in place. And I think absolutely, without question, this case and this trial has been damaging
to the industry. I think the good news though, is in the past year since these events went down, we have seen leaders across the crypto industry from other leading companies, We've seen entrepreneurs, we've seen individual members of the community.
They've really taken an interest in working in Washington and talking with policymakers, and so what used to be just sort of Sam Bateman free going around and taking up a lot of the time that has been replaced with a much broader, more diverse set of individuals in the crypto ecosystem, and those actually have the right values, that are building things, that believe in the power of decentralization, and they aren't just here to make a bunch of money.
So they can give it away.
At least that's a sam stated motive.
Some of the.
Voices that are now speaking to regulators, well, one of them might be over at PayPal at the moment. We understand, of course, that the SEC is looking into their view on stable coins in particular.
How are you seeing that sort of discussion bear out at the moment.
We know that Gary Gensler is pretty well cynical, shall we say, about the space, But what are the other people in the room at the moment saying?
Yeah, No, that's an interesting question, Caroline. I mean, we don't know a whole lot about what the SEC is asking PayPal about its new stable coin business, only that they are asking questions, so it's a little bit unclear. You know, typically the SEC does not have jurisdiction over stable coins because stable coins are not securities. But we are seeing right now is a lot of discussion on Capitol Hill about what is the right regulatory framework for
stable coins. Both in the Trump administration and in the Biden administration, we had reports from the President's Working Group that recommended ideas for regulatory framework. This summer, we saw Patrick McHenry pass a bill through his committee that would
provide a regulatory framework for stable coins. And I do think there's a very good chance that before perhaps not the end of this year, but before the end of this Congress, that we do see stable coin legislation move forward, because this is an issue that everyone agrees needs to be addressed. But it's not the role of Gary Gensler to regulate stable coins. He's a securities regulator and stable coins are not securities.
Wow Hill debate that CFPB, the Consumer Financial Protections Bureau, also overlooking these sorts of movements from big companies towards accessing crypto at large by a consumer base. What about the ETF's conversation as well. I mean, ultimately that's what's sort of been driving bitcoin the og of the crypto space. Are we anticipating as soon as this end of this
year that we will get US sport bitcoin ETF? And how much do you think that will be like loathed when we still have this slightly colouled over the whole space.
Yeah.
No, I mean I think we're already starting to see some price action in the markets on anticipation of a bitcoin ETF. You know, we had a very important moment over the summer where the SEC lost a case that it acted in an arbitrary and capricious manner by not moving forward with a spot bitcoin ETF. You know, much thanks to Gray Scale and our legal team for all of the hard work that they put in to get to get that ruling. And so I think what we
have now are multiple applications. These applications have deadlines where the SEC has an opportunity to extend them, but most of these deadlines are coming up in January. So I think it's highly likely in the next couple of months that we will get a Bitcoin spot a spot bitcoin ETF approved, And I think that there are a lot of investors that are eager to be able to access exposure to bitcoin through their typical brokerage platform.
There was one tangible example of blockchain technology use out of London this morning, HSB A frankly one of the biggest billion banks in the world, using distribute distributed ledger excuse me to to prove that tokenizing ownership of gold works. Did you see that and if so, how does that make you feel?
Is it really I didn't see that particular story, but I know there are a lot of people looking right now to figure out how can we tie these real world assets to blockchains, because they can be an incredibly efficient way for tracking information. And so the key kind of becomes, how do you connect that asset, the digital
asset to the real world asset. But there are a lot of people that are exploring exploring this place right now, and I think there are a lot of opportunities for upgrading the infrastructure for tracking a lot of things we do in the traditional investment space.
A lot of people still talking about that underlying technology. Blockchain Association CEO Christma Smith, thank you so much for joining us on this day.
Meanwhile, and you're sticking with a crypto.
Yeah, we got some news sticking with crypto sentiment around coinbase, which is rising with the long anticipated debut of a bitcoin etf appearing in ant This has been fueling expectations for a widespread increase in demand and prompting some investors to disregard the uncertainty which we've been talking about surrounding the largest US crypto exchange, even as the SEC lawsuit filed earlier this year continues to clown coinbases out look time for Talking Tech and first up into It is
winding down personal finance app Mint and pushing users to shift to credit Karma, a similar service that the company acquired in twenty twenty. Mint will no longer be available at the start of twenty twenty four, and its team
and product features are being moved within Credit Karma. And Google's vice president of Search testified about the company's AI efforts that the Justice Department's antitrust trial against the search giant and disputed suggestions that the company rushed to release its AI chatbot Bard earlier this year in order to
beat Microsoft's offering. Plus, the UK Summit on AI Safety is wrapping up, with AI leaders debating over how much to focus on the supposed existential risks of AI, highlighting those broader tensions in the tech community as lawmakers propose regulation and safeguards. Prime Minister Richie Sunak will be leading talks on the final day of the summit before a conversation with Elon Musk later today gosh, that was a lot to take on board.
Carolina, and let's get more from the AI summit. Mark Bergen joins US now from London, and there has been this tension about immediate threats of AI versus long term and many they're trying to say, look, it's not actually about the risks, it's about the models that are in development and analyzing where they go in the next year. But ultimately, what are some of the takeaways from this summer?
What have they actually progressed on.
I mean, one of the major takeaways we saw yesterday the speech from the Karma US Commerce Secretary followed by Vice Minister of China sharing the same stage, agreeing on very broad terms with the kind of that all the
countries put out around these catastrophic harms. But at least that's a symbolic and sort of diplomatic victory here for the UK and for the summit, the fact that they could bring together the US and China where they have clearly desperate views on the geopolitics involved with AI and the US and certainly has has talked about China's AI development as being a sort of military threat.
It's interesting we're going to debate a little bit more about who was there and whether or not they were being mobbed or not. It seems as though there's some talk that Ranning in a musk was mobbed and he held court with delegates, but also.
And other times were sitting and listening and taking all.
In some of the discussions around AI and the control of AI. How how has basically the corporate side of the conversation gone.
Mark, It's funny, I meationed Elin.
I mean you said, like the UK has put him out as a as an interesting figurehead and sort of the shining big CEO that they got. I mean there's a debatable certainly his company is involved artificial intelligence, but he's definitely not one of the leaders building these large language models that were all paying attention to, and that frankly is sort of this frontier AI that the conference
is meant to be about. And then we saw, you know, the benefit here is they get the Elon halo attached to that and a lot of attention, and then the side is that, you know, the the other side of Elon is his tweet that he put out I think it is less than an hour ago, right, this sort of cartoon that was I only interpreted as a criticism of the conference itself.
Well must tweeting a meme shock there is some mechanics of things to come. This evening Musk and Prime Minister sun Act just quickly woke us through what we're expecting.
I mean, you know, Elon has talked a lot about sort of what we what we've paraphrases is the doom doomsayer version of AI or at the existential risk. He was one of the notable signatories on this letter earlier this year about slowing down the advancement. I do and very curious to seeing one of the conversations that's happening kind of on the fringes of the event and even at the event itself.
Meta has made this claim. This their chief scientist.
And then we had a really fascinating interview with with Google's deep Minds demos about this idea that there's this regulatory capture that the biggest companies are basically saying, regulate us and only us, so the smaller companies can compete. And I imagine that Elin will have and certainly have an opinion on that, and probably likely I would say that there is some regulatory capture involved Bergen.
I'm sure you'll be tuning in some of those conversations going on on X in a minute, and we thank Mark can I. Meanwhile, we've got news relating to musks other ventures, Ryan.
Yeah, and also via social media posts. Starlink, the space based internet service offered by SpaceX, has it cash flow break even. According to Elon muscle Man and SpaceX CEO posted the financial update to his social media platform chs for meerly known as Swiss, who also shares this. Starlink has launched a majority of all the satellites cumulatively from Earth by next year, Kara, And this just shows the proyus they've made. But investors want to know, a are
they going to make money on Starlink? Apparently so when will they spin it off in an ipo?
And still what the most valuable private company out there?
Big time? Yes, still the most valuable, and we've been reporting based on these tender rounds the valuation edging above one hundred and fifty billion, which is crazy quite a lot.
Meanwhile, that does it for this edition of Bloomberg Technology.
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