From Marhart where Innovation, Money and power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed.
Ludlove live from San Francisco. This is Bloomberg Technology coming up full markets, courage ahead as stocks push higher amid fading recession fears, plus Warner Brothers plunges after a nine point one billion dollar right down and after spending nearly sixty days in space, NASA is working on a contingency plan to bring the star Liner crew home. Let's get right to financial markets, and I'm looking at them as that one hundred on a four day basis, it's interesting
what's happening in the long run. That's actually Warner Brothers Discovery. So let's go there. Then that's a nice story for the day. We're down nine point three percent, nine point four percent. Look, the story is really clear. Nine point one billion dollar write down on the legacy TV networks. And the issue with that, or the story with that, is traditional linear TV is not valued as it was when Warner Brothers merged with Discovery because everyone's gone to streaming.
Let's bring in Bloomberg's Hannah Miller, who's been covering the story and Hannah, it's a big number, it's overshadowed earnings and things aren't going particularly well. Give me the specifics of the write down and the reasons behind it. Yeah.
So, basically, what CEO David Zaslav discussed on the earnings car was that things have drastically changed in the media landscape. Valuations are different, market conditions are different, and this is a more realistic value for their traditional TV networks, and this is a signal to other major media companies to maybe take a look at their own traditional TV holdings and see if they too are of valued.
I want to really focus on the technology story within it, which I think is everyone went to streaming and so they were left with properties that just weren't worth what they were at the time. The other issue for Warner Brothers Discovery, of course Hannah has been now down eleven percent in the session, is what happened with sports rights and MBA. That was a point of discussion. Just update us on what's going on.
Yeah, So what happened with Warner Brothers was that they missed out on a seventy six billion dollar deal to get media rights for NBA games starting for the twenty twenty five to twenty twenty sixth season. They are now suing the NBA alleging breach of contract. That lawsuit was mentioned briefly during the call, with Zaslov saying that they are confident in their position and it's in the hands of lawyers right now.
Bloomberg's Hannah Miller a really interesting story, big market move. Thank you for keeving us up to date on it. Now let's get back to financial markets and bring in Sarah ketro Causeway, CEO, Fundamental Portfolio Manager. About forty nine billion dollars of assets under management, and we're trying to work out in aggregate what's going on. And as that one hundred has been an interesting index to track this week, the sort of anxiety of Monday faded on a weekly basis.
We're still soft to eight tens to one percent. You've got concerns about growth. Then we've got some economic data this morning that makes us feel that maybe recession risks are fading and we have a clearer picture on the FED. When you woke up this morning, Sarah, what was your picture of financial markets?
Well, it was about the same as it was yesterday, which is reasonably optimistic and that's a function of again so much liquidity added to the US and global economies during, during, and after the pandemic, and much of this is still working through the system. But we have still a very strong consumer in the US. It's labors holding up, wages are holding up. There isn't no reason to panic, even
though markets do that from time to time. So we're looking forward to some good earnings from our companies and for those, for example in technology where they depend on industrial production to be well placed.
Thank you for bringing it back to technology. This is Bloomberg Technology after all. I mean, it's interesting you go to earnings. The story was really clear from the hyperscalis in particular right the commitment to capital expenditures for AI infrastructure. Maybe in Microsoft's case, you learn the lesson that you just don't miss street estimates in this environment. How selective are you being within that group of hyperscalers or other names that we're so focused on around the AI story.
Well, the AI story is like and this has been well encapsulated on our website. Bar Our Workflolow, manager for Telecommunications, Media and Technology, Brian Show and that there are three cycles and this first one building is all about the building basic building blocks, meeting semiconductors, and you certainly saw that n Nvidia boom, but the memory semiconductor stocks have had a big run too, as they should, they've had to pull back.
They're very interesting.
And then to your point about the hyperscalers, they're absolutely critical in the next phase, which is delivery, so we need them to build out the cloud infrastructure. And they're also this is true of the ones that we as value investors prefer, like Alphabet and Meta. They're benefiting from their use of AI as they get more customer engagement and a hyperscaler like Alphabet. Not only do they have tremendous they can look forward to in phase three the deployment.
Getting enterprises on cloud.
They enterprise must have massive cloud access because they have so much compute needs with the data.
Monday was a global market event in the sense that it started in the Asian session, went to Europe and then to the United States, but it also shone a light on Taiwan and Korea those markets, and when I was looking at your holding, Samsung really jumps out. You have a particularly strong view on Samsung. Explain the thesis there and where it sits in your holdings.
Well, you're correct, and Samsung is one of our in both our International and Global fund, one of our largest holdings. And the reason why is it Samsung trades it very reasonable multiples. It's trading somewhere around book value. Either could get to one and a half times book. But they're a major player in memory semiconductors and the need for memory as AI compute expands goes up multifold, so memory
demand rising Inexora belief, which is great for Samsung. In d RAM they compete with Skae, Heinex and mic and Samsung's on the CUSP we think of a major breakthrough and high bandwid memory, so they will be able to provide the more advanced memory chips. And all this emphasis on high bend with put some pressure on regular DRAMs, so there's some shortages.
We'd like to see this.
So the supply demand balance is very much in favor of less supply and more demand.
Good for pricing. So Samsung's well placed their plus in.
This phase three of delivery they've got or in phase two in deployment. There they are with mobile phones that'll be AI enabled, so those Galaxy phones should fly off the shelf. They have other consumer electronics, they're in foundry and display, like Samsung has it all.
It's really interesting to hear you outline that we've done quite a lot on the show about high bandwidth memory and that if there's going to be this ramp and expansion of AI accelerator driven growth, you have to have the corresponding high bandwidth memory. But we've not discussed as much with the investor base. Sticking with chips, you also are interested in some of the more cyclical areas automotive industrial. I look at some of the names that are outside
the United States, Infinian renaissance over in Japan. Why is it that you like that area?
Well, automotives.
Maybe there's been a slowing of auto sales, but the SAR doesn't matter as much as the content That matters. Chip content, and these automotive related semiconductors and Samsung and rhanasas Samsung, German NASAs Japan are experts.
In that area.
So we're expecting them.
To see again content growth overwhelm or be more important than overall auto sales borrowing a recession, and we're not expecting one anytime soon. But they're also very strong in industrial chips and to see that in industrial automation and then think about data center and the need for power regulation. They're both really well placed there and those stocks have fallen some thirty plus percent over the last one month.
In the case is Rhanasus, so the value is there as well, so you get the under valuation and the growth upside. It's a great combination.
Sarah Ketterer. Of course, where it's really good to have you here on Bloomberg Technology. Thank you for joining us and that focus on chips in particular. Okay, coming up on the show, we're going to be joined by the next Door CEO, Nivtalia on the company's earnings, but also this overhaul of Nextdoor the social network. Next that's next. Next? What who shares of Bumble? Have you seen?
This?
Dating is over? The stock is down the most on record, are a really severe cut to its outlook. There are some specific or idiosyncratic factors relating to Bumble and its properties within that, but it's a pretty grim look for the data environment or apt base dating and you look at the stop year to date down more than sixty percent. It's a name that will continue to track. This is
Bloomberg Technology. Okay. Next doors second quarter revenue beat analyst estimates, and the company projected stronger than expected sales growth, pointing to improvements in the company's AD technology as a key driver of sales, and it's CEO announced plans for a quote complete transformation of Nextdoor's core social network. Delighted to say that the CEO near rev Talia, is here with us on set in San Francisco. This is interesting. Let's go through the financial stuff and then we'll get into
the platform itself. It's kind of high single digits growth on the user base side, and then you talked a lot about where the AD growth is, but just the fact is behind both of.
Pieces of growth.
Sure, why is that happening?
Yeah, thank you for having me, by the way, it's great to be here with you, Ed, And let me just go through the numbers very quickly, because we had a very solid and productive quarter. So on the revenue side, we grew eleven percent year over year, so the first time in a few quarters that we're returning to double digit guests that.
We feel really good about.
On the user side, over forty five million weekly active users. That represents eight percent year over year growth and then on the bottom line a loss of six million dollars, which represents twenty three points of adjustitebat margin improvement. So on all three of those vectors, we feel very good about our performance in Q two, and we also announced that we raised guidance for the rest of the year.
So solid execution and we're looking towards the future now for the real potential of the company.
So let's define complete transformation. You know there's been change a next Door, a change with you, A.
Complete transformation of leadership.
Yes, complete transformation leadership in a return, But what is it that you think that the actual platform will get to advertising? The actual platform needs to be different or do differently.
Nextdoor has an amazing opportunity. We want to be the essential neighborhood network because we think local is so core to everyone's life. It's so important that we have rich local lives, and that is the opportunity for Nextdoor as a consumer internet company. But our potential is not reflected today in the quality of our product. So when we talk about complete transformation, we're talking about making the product so good that every time our users and advertisers visit.
They're delighted.
We have an extremely high bar, very high expectations, and so it seems a little over the top to say complete transformation. But we're setting our sites extremely high because we think we can reach that potential.
There will be loads of people watching the program bloom, both technology audience, who who might be on next Door. My wife and I bought our first home in March of this year.
Ninety million verified neighbors.
But that's my point that we were used for a specific neighborhood and we wanted to learn about what was going on. That makes sense to go to next door, But I still look at scale, you know, compared to other social media platforms, quite small. How do you take it to another order of magnitude greater bring in people for the first time.
It's a great question. So Nextdoor has been around for fourteen years and as I mentioned, almost ninety five million verified neighbors in eleven countries around the world, So yes, we have some good scale. Primarily Nextdoor has been known for utility, so we.
Call ourselves a social media.
Product, but it's really about solving your everyday problems around local You have a home, it's one of your most important financial assets, and you want to protect that you want to make sure that you feel safe, you want to make sure that you're happy at home, and so Nextdoor primarily has been used around things like I need a babysitter, Okay, I need a plumber. I want to make sure that my home is kept up to date.
I want to feel safe in a crisis, whether it's natural disaster, whether there's a spate of crime, I've lost a pet. These are really important use cases that people rely on nextdoor for every single day. But we typically thought we talk about weekly active users. Now the other social media services that you're talking about, they typically talk.
About daily active uses.
So the question for us is what can we do to ensure that we are delivering value to our users on a daily basis, not just lost pets and service providers and times of crisis, which are absolutely indispensable and Nextdoor can be a lifeline, but on a daily basis, how can we make your local life better.
That's the part of the story being investment in ad technology sort of improving the value against that use best ne rev Tellier, next Door CEO and co founder, thank you so much. Let's stick with earnings. Retail trading Darling Robin Hood extended its growth into the second quarter despite a drop off in crypto activity. The company reporting five billion dollars in net new deposits as it expands it's products pipeline. Robin Hood, co founder and CEO of lad Tenev,
joined Bloomberg Open interest earlier this morning. Listen to this.
We shared in the earnings call that July volumes were about twenty percent higher than what we reported across June. August has continued very much the same one billion in net deposits in the first week. About half a billion of that came this Monday, and the overnight session for twenty four hour market on Sunday night was about three x a typical day. So twenty four hour markets have just been ripping and customers tend to be buying the dip.
They're more buyers than sellers, which we think is a really good sign for the health of the retail market.
We saw on Monday morning vlad as the market's kind of tanked and there was a lot of fear out there. Some of the more traditional, your more traditional competitors have problems with logins, and obviously it makes customers very angry, especially if they want to get in there and buy the dip when it's at five percent and it could lose opportunity any minute that goes by. How did your technology hold up during during those those shutdowns on other platforms.
Our technology is strong. You know, We've made a lot of investments. We were fortunate not to have any issues of a significant nature when all of the competitors were down and a lot of customers were actually looking to Robinhood and we've we've had challenges in the past, no doubt about that, but that's hardened the company, hardened the infrastructure and now when we see high volumes, were ready
for it. So we were happy to see customers moving to Robinhood and kind of pointing to us as one of the most reliable platforms doing during this recent bout of volatility.
That was robin Hood. See I've lad Now coming up from the show, Joe ben Bevitt, CEO of Joby, joins us to discuss ev toll expansion in that company's earnings. That conversation coming up next. This is Bloomberg Technology time for Talking Tech and first stup defense tech startup and a reil has raised one point five billion dollars in a new funding round, valuing the company at fourteen billion dollars.
Andreel says it plans to spend hundreds of millions of dollars on a new facility to ramp up manufacturing of rockets, underwater vehicles, and other autonomous weapons. Plus, Microsoft and Palenteer are set to combine their government cloud computing and AI tools in an effort to sell software to US defense
and intelligence agencies. As part of the agreement, Pananteer will integrate its products with microshofts Azure cloud services and allows open AI implementation into tools that are meant for confidential use. And Meta sold ten point five billion dollars of investment grade bonds, boosting the company's cash pile as it spends heavily on AI. According to Bloomberg Data, the deal is the company's largest ever debt sale to date. Meta made its bond debut back in twenty twenty two, selling ten
billion dollars. All right, let's stick with earnings. Joby reported after the closing bell on Wednesday, there's some important news about Dubai. I'm delighted to bring in Joe ben Bevitt, CEO of Joby, and I just want to get right to that Dubai project. You and I have spoken so many times over the years where I ask you, when are we going to see a joby fly and where, and it seems like you're closer to answering that absolutely.
First, thank you so much for inviting me. I'm here in our flight test facility in Marina, California. It's amazing to be with you on Dubai. We're so excited. We're sprinting to the across the line where we've got incredible support, a six year exclusive in Dubai to provide Eric taxi service, and our target is to launch that service by the end of next year. Really really pleased with the progress that we're making, and again, thank you for being having us today.
Joe Ben. You know I'm really interested in the business model long term. You know that I also take a microscope to your financials, your losses and sort of cash burner at pace with the streets expectations. Just explain the timeline of how that changes and when you start becoming meaningfully revenue generating.
Yeah, so thank you.
We are executing exactly to plan, and we have a very rigorous financial discipline. We are methodically ramping our production. We just announced that we had rolled the third aircraft off our pilot manufacturing line, and we have the fourth
and fifth coming along quickly behind. We're going to have four aircraft in our flight test program as we're driving certification, and we've completed the first three stages of certification with the FA and we're now working on the fourth stage where we've announced that we're thirty seven percent complete there, so as we move into commercialization, we can begin to generate meaningful revenues and reduced the cash burn on the company.
So very very pleased with progress.
Joe Ben, Is America moving fast enough on EV toll America?
Absolutely, We're We have incredible bipartisan support in Washington, d C. And this last year we were invited to New York where we were able to fly our air taxi in New York City from the Wall Street Helipad.
It was, you know, dream come true for me.
I've been working on this for many, many years and seeing the age of clean, quiet, emissions, free propuls aircraft being able to fly in a city like New York is really exciting. We have an incredible partnership with Delta Airlines and we're working to build with the port authority to build best in class infrastructure at New York and LaGuardia or New York JFK and Loguardia.
So, Joe Ben, when does that happen? The ability to take one of your evy toll from Wall Street to an airport in the real.
World, it's coming very soon.
Again, we're making great progress with the port authority on the permitting of those take off and landing locations connected to the Delta hubs. You can get off your Delta flight and onto a Jobe flight very seamlessly, and you can be in a matter of minutes into Manhattan. So we think this is a really exciting opportunity and it's coming very very soon, really paced by the speed at which we can get that infrastructure built.
Joe Ben Bevitt CEO, Joe be great to have you back here on Bloomberg Technology. Thank you. Now. Coming up on the show, we are joined by Andrew Baielecki, the co founder and CEO of Klavio, to discuss that company's earnings, which were also released after the closing bell on Wednesday. This is Bloomberg Technology. Welcome back to Bloombag Technology. Ed Ludlow in San Francisco. I want to show you a
chart that maybe you didn't know you needed. This shows normalized performance going back to nineteen ninety nine, with Nvidia going in one direction in this session and Monster Beverage Corp. Going in the other direction. The point being that Innvidia has once again overtaken Monster is the best performing stock on the S and P five hundred this century, which is an important data point. But I'd also say this courtesy of Dan Curtis, our terminal data editor, that think
about Jensen One, the CEO of Nvidia. He has a three point five percent stake in Nvidia. He could buy all of Monster Beverage Corp. And every single share and still have enough money left over to go out and buy another chip company, or even if he wanted Lululemon. Some size and scope of the scale of Nvidia, not just its performance on a percentage basis, but how it's overtaken some of the wildest stock stories we've seen, which one of them was until this session, Monster Beverage. Let's
turn back to the earning story. Klaviy O, the software company, reported earnings after the closing bell on Wednesday. Co founder and CEO Andrew Bieleeki joins us now for more and my goodness, Andrew, look at your stock up twenty seven point two five percent, thirty five percent growth on pretty decent customer growth. Where would you like to start. This is the best day for your stock since you went public.
Yeah, well, thanks for having us, and thanks to Clavio's around the world for a great quarter, really delivering for our customers and partners. You know, I'm really excited about the one hundred and fifty thousand plus now businesses that we serve. We had a bunch of great brands in the quarter, Barstool Sports, Hersonal supply Company, and we're really what makes Clevio special is we're helping businesses take control
of their relationships with consumers and then drive revenue. And I think when you know the economic environment is a little uncertain, software like clevieo becomes a must have.
So so on it being a must have, it's also interesting to look who's on the other side of the table for you. You added, like in the call to Sampsonite, for example, why does a company like Samsonite need clavier?
Yeah, So what Clavio Software does is we help pull all of a business's data together. So take Samsonite, you know, one of the largest luggage travel companies in the world. We help them organize that data and then deliver personalized experiences across a variety of channels from email to SMS
to mobile messaging. And because of how well C connects with the other systems inside of an organization, and a lot of the advanced capabilities, including a lot of the AI features we've released in the last few months Clavio AI. You know, those two factors are why businesses are choosing to work with us.
Because we're a revenue engine.
I like to look at geography as well, and it's really interesting that the Emia region was continues to kind of be a a drive a few Why why is that such engagement in Europe and the Middle East and Africa.
Yeah, So, you know, over the last few years, we've you know, we're executing our strategy really well. We've done a lot of expansion into Europe and with that, we launched our products and a lot of our you know, documentation. We've added you know, we went beyond English into French. We formally launched in the French region and now we've established that playbook.
It happened.
You know, we launched in Q two.
We really like the growth we're seeing, and now we're going to take that same playbook and use it across the rest of Europe and then extend that around the rest of the globe into Asia and other parts of the Americas.
And what we've known for a long time.
Is there are businesses using Klavio in over eighty countries, but we're trying to build a product experience that's really native to them and so doing things like expanding our SMS capabilities. We've more than doubled the number of countries where we now support text messaging.
We have plans to grow that.
So really excited about the growth we're seeing international in Europe in particular.
Andrew, you're a Boston based company with fewer than two thousand employees. What's the talent story for you right now? Particularly in terms of AI and headcount. Many companies are actually cutting certain areas to reallocate to areas of growth like AI. What's your strategy?
Well, so, from a you know, from a technology standpoint, we are very much believers in using artificial intelligence, both for our customers and in for us. So we've seen good productivity gains from using AI across Klavio, and we invest our own some of our own engineering resources and doing that. But in terms of our headcount strategy, we're global business, so we look for the best.
Talent around the world, you know.
I know we started in Boston, but we have offices now in Denver, in San Francisco, and London and Sydney, and we're planning to open more over the next few quarters. So we look for folks that are really ambitious, we say high slope. They want to be learners, and wherever that talent is, we want them to, you know, come join forces with us.
Andrew Bielecki, CEO of Clavio, and again Clavio up more than twenty seven percent, best days since going public in September. Thank you. All right, let's talk a little bit more about Europe and tech. Semens posted week sales and a drop in new orders for its factory automation business, though it did record a jump in software demand in the third quarter. Bloombers Guy Johnson our Semen CEO Roland Bush. Where the strength to the company's bottom line is coming from. Have a listened to this.
It was driven basically by another very strong quarder of smart infrastructure. Our electrical business grew by twenty one percent, but he also had a very strong softer business. Underlying the softer business was very strong, but we also had a couple of winds.
Large wins.
They don't repeat in that size again, but this helped quite a bit also in drive our top line in bottom line as well.
So some fully loppy numbers this time around, which probably aren't you have there? You have those stock to your guidance for the full year, given what you've just said, given what you see in the world at the moment, how predictable is the business though right now?
Well yes, we indeed we confirm our guidance our full year outlook for the growth we will end up at the lower end though, and we also confirm on our EPs guidance the heads name holds true for our businesses regarding the IVC their profitability for the full year on the lower end, for the SI on the upper end. So coming to the predictability, it's really a there are.
The biggest element which we have here is that over the last three years the automation business was growing tremendously fast and this ended up in quite a bit of stocking in our distribution channels, and this stocking effect has to go down. You have to be stock on the one side and the market has to pick come on the other. This is the unpredictability. How fast does that go?
When will the market pick up? We see a certain light in chemical industry also in China, which is a leading indicator, but this is not really the momentum we need in order to really go there. Therefore, we still have a muted market for automation. It is temporary effect, structural. We believe this market keeps on going because there's a demand for higher automation and digitalization in the whole industry.
That was seman CEO Roland Bursch. Now coming up on Bloomberg Technology, we're joined by SNAs Coro, former NASA executive, to discuss the plans that are being hatched between NASA and SpaceX to return the astronauts that have been stuck in orbit after complications on that star Liner test mission. Really interesting conversation ahead. This is Bloomberg Technology. This is Bloomberg Technology, and you're looking at a live shot of
the principal room. Check out our Bloomberg Technology podcast. You can find it on the terminal Apple Spotify and iHeart this is Bloomberg. Okay, so we have an update on the Boeing Starliner test mission. NASA is working with Elon Musk's SpaceX on a plan to return the two astronauts back to Earth in February twenty twenty five after technical complications caused them to be stuck in orbit for about
two months on the International Space Station. NASA is going to make a final decision in mid August on whether to deploy this backup plan. I want to bring in an expert who knows the inner workings of the Space Agency. Isna Ozo Okuro, former NASA Executive White House Assistant Director
for Space Policy. Enjoins US now and as an a The extension of that plan is that there is a crew mission going up in September with SpaceX, and then maybe the two astronauts currently on ISS could hitch a ride back February of twenty twenty five, which seems a really long time away. Just your reaction to where we are right now that are backup plans needed?
You know?
The great thing about this backup plan is that we have it, because if we didn't, then I think that there would be, especially when you look at the global geopolitical environment, I think that we would have a much harder time if we didn't have this option. So it's great that we have this option. I think that's the first and most important thing. And it's important that America has two options to vary humans.
Safely to space.
What I do see also is NASA Boeing and SpaceX prioritizing human safety first, as they should, so that's equally important.
There is reporting out there about NASA officials or teams within NASA sort of not being one hundred percent aligned on what the best plan was to do is best. You can just help our audience understand how NASA works. You know, now in this era of space, we have commercial partners, you know, leading the activity, but NASA still has a central role.
Absolutely well.
The astronauts are at NASA employees, they are NASA astronauts, and these companies have contracts with NASA. So NASA has a responsibility to review and authorize decisions because at the end of the day, the buck stops with them. And so if you step back a few weeks ago, there was a task that was consulted and what they're about twenty six of the twenty seven jets that were fired, and the goal was to ensure that these thrusters were
working properly, and we're meeting performance requirements. And now the team is going back and analyzing that data. So there are two reasons.
They can really go either way.
One could say, well, you know, we've analyze the data and we think that this Boeing aircraft can come back with the astronauts or without the astronauts. And then there is another reasoning, which is that SpaceX is really the way to go. So either way, what you see within the agency is that there are people and this is
good when you have disagreement. And now they have a bit more time, given the SpaceX mission that's going up in September, to analyze the data further, and then they will make a decision and based on the performance of the thrusters, the performance of this helium leak that they are monitoring, and they will make a call mid August based on all the information they have available, and they will obviously make a decision that includes the prioritizes human
safety first, that prioritizes a safe landing, and that also builds confidence in the system.
That's what I want to ask about as an A, because we just showed the chart of Boeing spending on the star Liner project and it's been well reported the cost overruns, the delays. How to your mind, de NaSTA and Boeing as partners now go back out and bring public confidence in the program going forward when it works.
And that's what that's the point. We're trying to get to a point where it will work and there is confidence that's built in the system so that it can ferry humans, and then the public will have confidence in
the system. But we have to get it to work first, and which is why the analysis of these firing tests that were conducted recently have to be completed, but NASA will not will not make a decision until they are they have conducted a thorough analysis and believe that the data provided moves them in one direction or another.
As an A, also a senior fellow at the Harvard Belfa Center. The other big piece of talk right now in the industry is China and it's satellite constellation ambitions. Might they do something similar to starlink And if they were to, how does that work? The competition for space the proximity of a US run constellation to a Chinese constellation. Your thoughts on that isn't it?
You know what is great about this question and the scenario is that we are already living it. Before the SpaceX constellation went up, we had smaller constellations, but we still had constellations in space. And then a mega constellation was put up by US commercial company, which gave us a leverage to understand and to plan for what it would look like if a strategic competitor, in this case a nation like China put up constellations of their own.
So through the constellation that we have up there put up by SpaceX, we have been able to have discussions and even remediations to radio astronomy issues, to night sky issues based on what the satellites can see or what they prevent us from seeing from here on Earth. We have had conversations about orbital debris, which is the amount of junk that is left in space. Now we've had conversations about space sustainability and figure it out policy and
engineering solutions to all of these issues. And so I think that we are actually in a better place as the United States to prepare the best we can for this consolation, because we have an example up there today. If we didn't, then I think we would be in a completely different place. However, that doesn't mean that we can plan entirely, as you say, for what will happen.
As an Azokoro, it's great to have you back on Bloomberg Technology. Thank you, former Nasser executive and as I said, currently a fellow at the Harvard Belfa Center. Coming up on the show, Apple is working on its smallest desktop computer yet. We have that Bloomberg reporting coming up next. This is Bloomberg Technology. Apple is planning a new version of the Mac Mini that will be its smallest desktop
computer yet. This is part of a broader overhaul of the Mac line with AI Focus Chips, bringing in bloomboas Mark German, who of course broke the story and the focus here is M four and bringing M four him. Just explain the basic details of what you've reported.
Yeah, So the Mac COMMINEE, last revamped in twenty ten under received jobs, now about fifteen years later, is getting another redesign. That's a really big delta in between new designs, and this is essentially because of these new processors. An iPad pro in a box.
They're able to.
Shrink this down into something that is about the size of an Apple TV set up box, so something probably smaller than four by four inches.
This is going to be a very popular computer.
This is probably going to be marketed as the smallest desktop computer ever made, not only by Apple but by any computer company.
And this is going to have a supremely powerful chip.
The M four pro chip is going to have even better graphic source power, even better AI processing, even better CPU performance than the M four and the new iPad pro. So this is going to be very exciting to macfans and coming later this year.
The ideas outline to us by opening bag sources are really interesting. What I'd try to understand, and Apple didn't comment on the story, of course, is where the Mac Mini or Mac kind of sits within the lineup of Apple products. Who's the buyer heir Mark?
Yeah, this Mac Mini is going to be for people who want to hook up a computer to their TV.
You know, there's some.
People who connect Macs to their TVs in their living rooms or in their office.
That's going to be a big year space.
But also someone who has a desktop at home and wants to do laptop s work, so the same amount of work you would do on a desktop, So web browsing.
Email, photo editing, and video editing. You'll be able to do that with this machine and hook it up to any monitor you have.
It comes standalone, a keyboard, no mouse, don't drag that in the box.
So this is going to be a pretty modular machine.
Bloomberg's Mark German with another exclusive piece of reporting, thank you, okay. For years, the likes of Google and Open Ai have been racing to build ever bigger and costlier AI models using a tremendous amount of online data. Think chatbots like chat gpt, which can handle a wide range of complex queries. But some startups are now betting on a different strategy, small language models, automating a more limited set of data day corporate tasks without requiring as much data. Bloombog's Rachel
Mets has been writing about exactly this. So you've heard of the large language model, now is the time of the small language model. What is a small language model?
Small language model is kind of what it sounds like, right. A large language model is treaming on a ton of data, often gathered from all over the Internet and used for a range of tasks.
Chat GBT people.
Might use it to write Shakespeare's sonnets about ice cream, or they might use it to summarize meeting notes, you know, like a very diverse range of tasks that are related to human language. These small models are trained on a much smaller, more refined set of data. And the idea is that for a lot of companies, and lets be clear, companies are really the customers for a lot of these large language models. They're the ones with lots of money, right, and AI companies want them to pay for them.
They're going to need them for specific things.
And maybe one thing that they are really good at, something related to coding, perhaps a chatbot that's very focused on tax prep questions for instance. So the hope by a lot of these companies is that these models will be more energy efficient, and they will be more focused, and they will basically just be more helpful in general.
Who is leading the way in small language models? It kind of seems like an old question, but every time a very cutting edge large language model comes out, we cover it as news on the show. Do we have a sense of like who's focused on that area?
Yeah, So we have actually like a pretty big range of companies that are involved in this. There are a couple startups that are very focused on this. I spoke with one called rcai. They are totally focused on customizing open source small models and customer so they customize them for customers, including a company called Guild which used it to make a career coaching chatbot so they could scale up more than they could do with their human career coaches.
Socana Ai is a company that's in Japan that's working on this. And then also the big tech companies have increasingly been releasing these small versions of their larger flagship models like Opening I recently released or O Mini.
Bloomberg's Rachel mets on small language models a new term for daily use here on the show. That does it for this edition of Bloomberg Techno, lots of recap. Don't forget to check out our podcasts. You know where to find it on the Bloomberg platforms, the terminal as well as online and Apple, Spotify and iHeart will show you some beautiful pictures in just a moment. And for now, this is Bloomberg Technology