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This is Bloomberg Technology with Caroline Hyde and Ed.
Ludlow, live from London and San Francisco. This is Bloomberg Technology, coming up the first of the Magnificent seven.
Gear up to report results.
We've got you covered, plus whiz walks away from Google's twenty three billion dollar offer.
Details ahead, and we bring you our exclusive interview with Meta CEO Mark Zuckerberg.
Spotify up twelve percent in the session, subscribers paid, subscribers up twelve percent year on year. There's a lot of focus from the street on all of the cost saving measures that they took and the bottom line, but let's
stick with the Spotify story. The company releasing those two Q earnings this morning, bringing Bloombergs, Lucas Shaw, Lucas Leeds screen Time, which is our coverage of the entertainment industry and all things streaming, and Lucas we are so back streaming is back taught me through Spotify.
Yeah, both Netflix and Spotify having very good earnings. Look, Spotify is finally starting to look like a profitable business. I think that's what investors are excited about. They had both profit and margin. That was a head of expectations, I believe, and perhaps most notably for them, they raised prices and still beat on their premium subscriber edition. So it feels like their ability to raise prices now and going forward will be very strong, which is good news.
For everyone looking at it.
You know, they've done what Wall Street wanted, which is cut costs and start living profits, and.
They have really focused in on the profitability over and above, perhaps more broadly just subscriber growth in totality lucas there was a little bit of weakness on the bigger, larger number of those that aren't just paying premium.
Yeah.
I mean they've I've been surprised over the last couple of years at their ability to continue to grow their customer base, not just premium but the free. They've had a lot of success in India and Southeast Asia, which is I think part of how they've done it. But they've looked, they've they've rained in the spending on podcasting. They are investing a fair amount in audiobooks, and I think there's some skepticism still as to how exactly that will sort itself out.
But it's a company and it's a product that people really like.
They're not canceling. Spotify has pricing power, and I think that though there have been concerns about how that business would look, it's starting to feel like a company that investors can rely on.
Lucas, This might be a little out of left field, but I'm still really focused on podcasts. I just find the industry to be so vibrant. If you track the newsflow, a lot of like individual names doing licensing deals for themselves their own properties Spotify. Do they have anything to say about that?
Well, Look, Spotify is now content to be a neutral distributor of podcasts, right. They spent a bunch of money buying podcast networks, funding originals, kind of securing exclusive rights to shows because they use those to those podcasts and those deals to bring people in and to get people listening to.
Podcasts on Spotify. That is now happening.
Spotify feels less of a need to pay for people and feels like it can, you know, just benefit from from ad sales from shows that it doesn't control or pay for it.
So sweetish Juggernaut, Lucas Shaw we so appreciate you bring us.
All things Spotify.
Meanwhile, sticking with results out of Europe and it's SAP. See Christian Kind join Bloomberg to weigh in on his company's results.
Just take a listen.
We are not only focusing on moving customers to the cloud. We look into their business model transformation. So when you talk about SEP, it's all about how can you correctually quote your business. I mean, take take x on Mobile, one of our largest the customers now in the cloud. They are moving towards the new blanagies and our software is key for that. Or when you talk about the
resiliency of supply chains, we infuse AI. We are connecting your supply chain with this operations of thousands of your suppliers and that's why SEP is so well in these days.
Let's bring in Blimberg Sonia in for more on this and Sonia shares the record high.
Is it all about AI? Yes?
AI definitely plays a key role in SAP financial performance and business development. We've seen some good growth on the cloud revenue and also the backlock seems very healthy, so we can expect a lot more of the growth to come later this year.
And in the.
Coming months as the AI had a significant role in attracting new customers as well as incentivizing the shift from the on premise solution to the more lucrative cloud business.
On your end out of Europe. Thank you very much. Another tech company that's reporting today, Tesla. Let's discuss what to expect with Drin Hanley Warren, Capital CEO and head of research and getting myself organized, putting my posts in for the blog that will run later today. And I think a big focus is going to be FSD and Hang, You've got a particularly interesting.
View on that.
Why you watch the FSD so closely.
Because the car Selle data are very transparent, and it's obvious that the car sales has hit a war, whether whether in California, in China, in Europe. So in California the data are very transparent. Cells down twenty four percent year over year in Q two and California being twenty five percent of.
The US ED sales.
In China it's down seven percent. That's on top of very aggressive promotions.
In Europe, it's a different story.
There's a terriff.
Coming up now, the Chinese may car going to Europe starting dismals will face twenty percent increase in terror. So at this cross current, Tesla all of a sudden pivoted its story from EB sales to FSD. Essentially, FSD is a story of Okay, you buy a car, I give you a driver. So that's supposed to be a differentiation for Tesla car to you know, get more share in
the market. But it is argue, after speaking extensively to the researchers in the field as well as the competition's AI effort, that you know, it's a very immature product.
It takes time to get.
A higher quality data, probably a rework of the underlying narrow AI system and waiting for more GPU cluster for this to work.
Full self driving has actually been something both said and I'm in with a lot lucky enough to be able to do so. But why do you think the underlying technology, the overall scale of investment the Tesla needs to make it's so much larger than the market is factoring in because this is always the long term bad that Tesla is an AI play.
Yep, because a Tesla's AI vision is a little bit different from everyone else. Everyone else in the industry relies on sensors in addition to the underlying AI software. But Tesla wants to differential yourself as a unique play in autonomus AI therefore markets as the anti end vision only AI play. But if you talk to people in the in the area, they'll tell you that it's a very difficult route because it needs a lot more expensive data input and it requires a much more expensive AI system
to truly get you to L five. So now you how there's a very big operation domain design and you have limited hardware tour, but you want to achieve L five. So that's a very very tall order.
Speaking of hardware, we were just showing some of the things at the top of mind for retail investors. Right they have a platform, say dot com, they can vote or up vote their questions. What's missing from that is Robotaxi. How critical is it that ehlon mask gives us a date a new date for the Robotaxi unveil.
Well, Robotaxi, it's just the one manifestation of its vision only e t e Ontonama's AI. But Robotaxi in fact is easier to achieve than a be SE because there's no one behind the wheel. So in terms of the legal liability, it's much crystal clear. So if Robotaxi gets into trouble, it's Tesla that's going to fully compensate and financial legally responsible for the accident as opposed to FSD.
As long as it's not for the autonomous and the Tesla doesn't claim one hundred percent legal responsibilities, you know it's it's the insurance company needs to underwrite that risk. That's why you see lots of waymows on the street in selective cities. But there's no Tesla Robotaxi because it requires a different sort of like hardware integrate, hardware software and AI program integration.
Tesla doesn't have that.
We used to perhaps being patient on Elon's promises.
He's pushed back Robotaxi. He pushed back Optimus just in the last day or so.
Does that matter in the longer term if we are seeing a vision of AI. Look, this is also an energy company that does relatively well.
Well. It's sure energy does extremely well, but energy is not something you give it one hundred times surprise to earning racial right, So I mean the stock is at two hundred and fifty. The company is supposed to make two dollars and fifty cents this year, so effectively you are giving it one hundred and ten price to earning racial Okay, so FSD story will get this to you know where the company where Elon Musco want the stock
to go. So the mass is this, So FSD will allow the penetration to go up to thirty percent of all cars. So in the US, so USL is about eighteen million cars, So that gives you six million cars for Tesla because it's given you a car, give you a driver, so people will buy it for forty five
thousand dollars. And then the company makes ten percent profit margin and you give thirty times a price to earning to that kind of a run rate to normalize the earning, just like you give to Apple that gives you two trillion valuations. That's the story they want to tell to the investigation and pacify them.
Be true.
It might not be true.
It might be somewhere else get there first, and Tesla's not. But if you give it twenty percent probability, that gives you significantly less market evaluation than too Trilia.
Well said Johan Hanley Warren, Capital CEO and head of Research.
As we try to.
Vindicate that ninety three times future earnings.
That is the valuation of Tesla.
Look at what's happening with Alphabet, because it's not just Tesla out after the bell, Google's parent company is as well.
We're up five tens percent.
Not only are you focusing on search, cloud and AI, we're also thinking about the wiz rejection of Google's twenty three billion dollar offer.
We we'll be talking about that later in the show as well.
Ed.
All right, coming up, we bring in Bloomberg's Emily Chang for more on that exclusive interview with Meta CEO and founder Mark Zuckerberg.
As next, this is Bloomberg Technology.
Different Today, Meta unveiled the largest open source AI model ever, Lama three point one. The company is also updating is Meta AI service because.
Being built as a rival to chat Gipt. In an exclusive interview with Blum.
Magsemi Chang, Meta CEO and founder Mark Zuckerberg opened up about his strategy why believes it's superior to competitors like open AI and Google.
Just take a listen.
So you're releasing Lama three point one in this family of models big and small, including the biggest open source model ever four hundred and five billion parier ors.
What is that jump unlock?
I actually think the main thing that people are going to do, especially because it's open source, is to use it as a teacher to train smaller models that they use in different applications. If you just think about like all the startups out there, or all the enterprises or even governments that are trying to do different things, they probably all need to at some level build custom model for what they're doing. And it's really hard to do that with closed systems out there, whether that's open AI
or Gemini, Google's thing or whatever. And this is like gets to a pretty core part of our philosophy is we don't believe there's.
Going to be like one AI to rule them all.
Our vision is that there's going to be millions or just billions of different models out there, So.
Not one god, but many. Is that the way to think about it?
Well, I don't think they're gonna be gods, but I do think that to some degree, if you if you're like an organization, you think you're going to create like this one super intelligence that does have this feel to me of like people trying to create a god. And that's just I find that both the wrong way to look at it, but just also very unappealing. You know, there's almost two hundred million creators on our platforms. They all are trying to build their community. People want to
interact with them. There aren't enough hours in the day. Like, I want to make it that every single one of them can easily train like an AI version of themselves that they can like they can make it what they want. So it's almost like a kind of artistic artifact that they're putting out there for their community that allows their community and interact with them, but also gives them control over how that interaction happens.
Facebook, and you have been blamed for a lot of things. Whether you agree or not, why should we trust you with AI?
Well, it's a loaded question.
We have gotten blamed for a lot of things, and I mean, look, I take our role in all this stuff seriously, and I think we've tried to handle all this as well as possible.
I'm not sure that it's all.
Been fair, but like I'd like to think that we're an important and relevant company, so I think the scrutiny is generally healthy. One of the defining things around open source is that anyone can scrutinize the work, and because of that, I think it just puts a lot of pressure to make sure that the quality of the work that you're doing gets better really quickly.
That was Bluebag's Emily Kang in her exclusive interview with metas CEO and founder Mark Zuckerberg, and I'm delighted to say that Emily joins me here on set in San Francisco. It was so well timed the interview. It's critically important. I think back to the last earnings call where zuckerbog basically said we think MESI could be the world's leading AI company, leading AI company, but he's coming from behind a little bit. You did some catching up with him in that conversation.
Absolutely, and you know, you know, the scale of Facebook, Instagram, WhatsApp is incredible. So Meta Ai their chatbot is already embedded across all of those products and Oculus as well, and you can use it as.
A standalone chatbot.
But he says hundreds of millions of people are going to be using this by the end of the year, in fact before the end of the year, which he believes what makes it the most used chatbot in the world. So in just a few months. It's, you know, potentially
going to be eclipsing chat Ept. Now we talked a little bit about the level of intelligence of these latest models, and he admits he still believes there's a gap between LAMA three point one and the most advanced models out there, but they're already working on LAMA for and he says they're closing that gap when that update comes out.
Emily, as you were mentioning in what he termed eluded question, but look, he's used to criticism, but there's been a little criticism about the fact that this is open source and the quote unquote danger that that brings. How is he responding to that element of things?
Look, I think broadly, and this is what he's been saying now for many months. Open source is more safe, is more secure. You've got all of these people around the world building on it, using it. If they see something wrong, Meta is going to get called out on it.
He said, and we'll fix it.
And the question is, though, what's in it for Meta? It's not that there's nothing in this for them. If the industry builds on this and it becomes an industry standard, then Meta has more sway in how the industry evolves, so he's saying, look, this is.
More safe, this is more secure.
But yes, this is also better for us. In fact, he believes it's safer than the closed sources approaches of open AI or Google because what's happening under the hood there you can't necessarily see when something goes wrong. And what's really interesting is, you know, without open source, he says, I couldn't have built Facebook. This is a deep seated part of his philosophy that he's had for twenty years.
It's definitely interesting. He understands why there's been pushback, why some people see him as this sort of unlikely champion of open source, given how Meta and Facebook and its platforms have evolved. But he really doubled down that this is the best way forward.
There is Mark Zuckerberg, the gold chain wearing new haircut, MMA fighting man, and then there is Mark Zuckerberg at the helm of a critically important company. You spent time with him at his home in Tahoe. I did what did you learn about either of those characters?
I learned how they relate to each other. Okay, and you know, he just seems you know, I've met him many times of the years I've interviewed him before, he just seems more comfortable in his own skin than I've than I've ever seen it. He also taught me how to wakesurf. You know, Zuck has all these side quests. Wakesurfing is one of them, and you know, we talked about how he just has so much energy.
These things keep him focused.
Priscilla, his wife, was there as well.
She's like, I prefer when he's doing all these.
Other things because he just has so much energy to burn off. But my main takeaway was that he's not going anywhere. If you think about Jeff Bezos, you know who left Amazon, Larry and Sergei who left Google. There are all these major tech founders who have since stepped back from their companies. Mark Zuckerberg isn't going anywhere. He said, Look,
I want to see this AI wave play out. You know, it's ten or fifteen more years before the next platform is going to emerge, and I'm going to be around for that.
Emily Chang can't wait to see more of the interview.
We thank you so much.
Tune in to this exclusive interview with Mark Zuckerberg online or on Bloomberg TV tonight it's six thirty pm Eastern time.
We've got some breaking news for you. Apple.
A foldable iPhone may be released in twenty twenty six. This is according to the information. We're currently at session highs on Apple stock on the back of that. Potentially it could fold width wise like a calmshell, according to people familiar, and it would make it similar look to that Samsung Galaxy X flip z flip in fact, was released all the way back in twenty twenty on Apple shares. This is blue mere technology. Big news in cybersecurity. The
startup Whiz has rejected Google. The company has turned down that Alphabet twenty three billion dollar takeover offer, sticking instead to its plans for an IPO. According to a memo that Bloomberg has seen, the move marks a blow for Google, of course, which has tried to catch up to Microsoft and Amazon on shoring up its security offerings for its
cloud services. Or please to bring in Dona woman for more and Dana talk to us about why this was so integral to compete with Microsoft, asure to take on the other competitors in aws in the space of cloud.
So Wiz would have rounded out Alphabet's cybersecurity offerings. Company had already acquired Mandy in a couple of years ago for a little over five billion, and Wiz would have just rounded out the portfolio with a real focus on detecting cyber threats in various cloud platforms. It plugs into a number of major existing platforms, including Microsoft, Azure, Amazon
Web Services. And these are Google's alphabets major competitors in the cloud space, and it is an area where as much as Google is one of the major known names, it does still trail Microsoft and Amazon in that major critical space.
You know, part of the even trusting part of our reporting, according to sources, is that the leaders at Whiz are also conscious about the regulatory environment antitrusts.
What do we understand there, Donna.
Smith indeed would have been a really risky deal for Google had it.
Had had the agreement gone through.
Rather, had Wiz agreed to an acquisition Google, It's already facing various regulatory challenges on everything from its search business to its advertising tools, and probably even a much smaller acquisition would have drawn some regulatory scrutiny. And we're talking
a twenty three billion dollar acquisition. This would have dwarfed previous alphabet acquisitions, certainly even the Mandiant one that I just mentioned, which was about five and a half billion, and it would have been a huge risk indeed, which according to our reporting, was one factor that the Whiz team considered in choosing to IPO instead of being acquired, that not only did it feel that it could build more value as an independent company, but had some concerns
about whether it could even get past those regulatory hurdles in the US and possibly elsewhere.
I think bugs Dona Wellman, thank you. Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco, and.
I'm Carine Hyde in London for the week.
The World of crypto and ETFs regulators approved the first US ETFs investing directly in ether. That's according to filings and statements from various asset managers.
Now trading is imminent.
So let's bring in Bloomberg's Katie Greifeld, friend of the show, friend of mine, expert in all things cat meme related, but also ETF's critically likes crypto. I think that why this story is so interesting we've been talking about so much, is that it's a good test for wider interest in crypto markets.
Right you're exactly right. Demand beyond bitcoin.
Obviously, the Spot bitcoin ETFs HA started trading in January. We're a wild success, really blue pass expectations. We have seen eight spot ether ets speaking trading in the US today and these are expected not to not draw as much interest. But trading volume so far has been pretty impressive. Over three hundred million in trading volume so far today.
But if you take a lot a look.
At Blackrocks Ether ETF in particular, the ticker there is ETHA. Volume after the first hour was about fifty million dollars maybe a we'll get to two hundred million by the end of the day. Just for contexts, Blackrocks Spot Bitcoin ETF did about a billion dollars on its first day of trading, so impressive, but not quite Bitcoin levels.
It was never going to be Bitcoin levels, was it, Katie. Can you just mark us up to what we all anticipated and whether or not the flows are good enough for what the market needed to see.
So if you take a.
Look at what the consensus is right now. There was an interesting note from winter Mute trading. For example, typical analyst projections translate into annualized inflows about four point eight to six point four billion dollars for these Ether products. That's in the first year, which again is not nothing for a new ETF debut, especially in a new category. That's pretty impressive. But it's just that the Bitcoin ETFs received so much enthusiasm. Net inflows of seventeen billion dollars
even with the outflows that you've seen from GBTC. There's some pretty difficult comps there. But again, it'll be interesting to see how these develops, whether financial advisors in particular will embrace these. There's a lot of question about how do you market ether?
Bitcoin is digital gold? What's the sales pitch for.
Ether to a non crypto audience. Those are some of the questions that need to be answered.
Oil Silver, We've heard it all, Katie Greifeld atf Queen.
We appreciate it.
It's time now for talking tech and first up, CrowdStrike CEO George Kurtz is set to testify before Congress. A US House committee is called on the Executive for questioning after last week's Box software update that caused global computer outstages worldwide. Additionally, the US Department of Transportation is open in investigation and into Delta as it continues to see
major flight cancelations and delays from the CrowdStrike outage. Despite rivals return to normality plus shares a CACAU falling in South Korean as authorities have arrested its founder, Brian Kim over alleged market manipulation. The billionaire internet entrepreneur was taken into custody after hours of deliberation on fears of quote evidence, destruction and flight Kim and CACAU spokespeople deny the allegations.
Okay, coming up here on Bloomberg Technology, We're gonna have to take a.
Look at the world of AI and robotics, and that's through the company. Mitra CEO Chris Walty joins us next on the company's launched This is Bloomberg Technology.
Talking mention now.
Iconic Capital, an investment firm known for well managing the fortunes of Silicon Valley's elite I, said it has raised five point seventy five billion dollars for a new venture focused fund, and yet another example of the continued concentration of dollars in a handful of big VC firms.
This year of a seven billion dollars went.
To a group of funds at Andrews and Horowitz another three billion dollars to Norwest Venture Partners ed.
What have you got now?
Mitra is a company focusing on industrial productivity with AI but also three dimensional robotics and just today launched with seventy eight million dollars in total financing through a Series B. We're delighted to be joined by the CEO and co founder, Chris Walty, who's also a former Tesla materials engineer who helped build what was Tesla bott Now optimists, we'll get to that this is interesting. It's not necessarily a crowded field, but I'd say we've had several startups on the show
focusing in the field of robotics. What is specific about your technology and your ambitions on how it's used in the real world.
Sure, morning, thanks for having me on the show. Appreciate it.
Yeah, I mean the challenge is is that, you know, ninety percent of warehouses today have no meaningful automation, so there's.
A product market fit gap.
At Tesla, we experienced some of the challenges with the current state of automation. We endeavor to make something extremely simple, user friendly, and the more simplistic we could make the system the more cost effective and universal and flexible the solution could be, and.
The more people want to use it. You've got fortune one hundred customers already. Albertson's, for example, what is it that the robotics are solving for them already?
What is it that robucks is not solving for them? Well, if you look at the traditional state.
Is solving for them? What is the positive? What are you finding that is already the application?
Chris?
Oh, sure, what is it we are solving?
Yeah, So we're focused on moving material at the palette level.
It's the bread and butter supply chain.
Almost everything you see around you has been in a palette at one point, and we're doing that a much more simple and an efficient way through the use of just two products. It's really a steel ladder structure and a bot that moves in full three dimensions, which allows you to basically use software to define how your warehouse operates versus traditionally using mechanisms like conveyors and elevators in that sort.
Sony eight million dollars, I can't tell if that's quite a lot of money or not enough money to launch a product like this, scale it and put it into the real world.
You tell me it sounds like a lot, of course, but you know, you have to keep in mind that there's seven different engineering disciplines, and you know it's incredibly important to make the product reliable, scalable, et cetera. I mean, you know, automotive companies spend quite a bit of money on the manufacturing and the development to bring an electric
vehicle to market. Where essentially bringing a small electric vehicle that not only moves three thousand pounds in the horizontal plane but also moves it up and down.
Reliable, scalable, and with in a near term ideal of being useful. Now, what's so interesting is your background having been at Rivian but also at Tesla.
Look, we're about to get Tesla numbers, we're about to.
Fixate upon Optimus and once again a slight delay to its practical use cases. What was it like at Optimists and how did you decide that you had to do something different because perhaps of the delays there.
Yeah, my background at Tesla was a very interesting one. I had experienced both on the traditional warehouse side and trying to get material flow up and running for it to support Model three manufacturing. And then it was also asked and tasked to lead the Optimist program. You know,
humanoid robotics absolutely fascinating. Had a blast working on those problems and leading that team, But ultimately it's a bit of a ninth inning problem and there's innings four, five, six, and seven, et cetera that still need to be solved and for the next ten to fifteen years of my career, as well as the rest of the team that's joined us on this mission. We're really solving a very critical problem in supply chain with a very simple and direct form factor.
I guess philosophically, but also from an engineering perspective, why is the direction you're going better than the use case of a humanoid robots such as Optimus in the warehouse or manufacturing environment.
It's a great question. I don't know if one is better or worse than the other. I would say they're solving two very different problems, right. What's very unique about humans is their ability to manipulate and reason at the edge.
And that's where a humanoid robot is very powerful.
But when you look at what's moved around in a warehouse in a manufacturing facility, a lot of those that material weighs hundreds, if not thousands of pounds, and that's not something that a human really is designed to do. So you can think of what we're building at MITRA as something that's very complementary orthogonal to humanoid robotics or humans in general.
Okay, so you're going to work in line, sort of in a sophisticated manner to work alongside the future of an optimus.
You've got strategic investment.
I'm assuming you've already raised what's seventy eight million dollars in funding?
How expensive does this get? How many more rounds of funding do you need?
Chris, Yeah, I mean our it's unclear at this point. Our goal is to execute as quickly and as efficiently as possible. You know, the next two years will develop the system, invest in the team, and launch to a few more customers, and in that time you know that we'll be generating revenue and you know the funding environment in two years. Who knows what that will be like. But it's safe to say that funding can help accelerate the mission. It's not necessarily always required for a company to.
Exist, particularly if you're aiming to be revenue generating, maybe even profitability coming into your Lexicon micro CEO and co founder Chris Welty. Great experience that you have, great pushing us forward on what to expect.
How a robotic said, what have we got? Well?
From one Tesla alumni enterprise to another. A couple of weeks ago, I took a trip on a boat, an electric boat, and it's from startup ARC looking to launch later this year.
Here's what it's like.
This is the Arc Sport, a fully electric boat from Los Angeles based Ark, and it's built for water sports on lakes and wide rivers, but it can go in saltwater. So we got to test it out in the San Francisco Bay. We set off from Sorcelito Harbor and with Alcatraz and the Golden Gate Bridge coming into site, we took it up to full speed and we led a rip.
Ark Sport can get up to forty.
Miles per hour, but it has a surprisingly intuitive drive by wire system. The operating system also looks very similar to Tesla's in esthetic and functionality. Using front and rear cameras, you can see the front and check on the wakeboarder who's in the back, or make sure no passengers have fallen off.
Luckily, none of US did. The boat has five.
Hundred horse power from a two hundred and twenty six killer what hour battery pack. That's almost double the battery capacity powering Tesla's cyber truck. It's meant to give you a full day on the water about forty six hours of driving time. At two hundred and fifty eight thousand dollars, arc Sports price is comparable to gas power boats from names like Mastercraft, but the direct consumer sales model means
there's no dealer in the middle taking a cup. That means art can spend a little bit more on the design, the experience in the boat, upscale sound systems, and plush seating. It's also got a really cool frust jet system for docking up, and it can charge to eighty percent in like forty five minutes. The boat's designed by a team of former SpaceX and Tesla engineers, and it's shipping later this year to go after a two billion dollar market in twenty twenty four for wakeboats.
Two hundred and.
Fifty eight thousand dollars shipping later this year. Maybe Emily Chang and Mark Zuckerberger got their eyes among.
Car Oh water sports.
Meanwhile, coming up Tech giants Apple and Micron. They're paying it a visit to China as the US ramps up chip cubs this blue bag technology.
I know, you've always been fascinated by China and you learn to speak Mandarin, and what do you know about where China is on.
AI and AGI?
I don't personally know a ton. There's this question, which is how should the US approach kind of AI competition with China. And there's one strain of thought which is like, okay, well, we need to like lock it all down. And I just happen to think that that's really wrong because the US thrives on just kind of open and decentralized innovation. I mean, that's the way our economy works. That's like
how we build awesome stuff. But I think the leading companies should work with the US government and make sure that our kind of national defense and things like that have sort of a perpetual first mover advantage on the leading technology in the world, so.
We win the AI wars this way.
I think there there's the question of what can you hope to achieve If you're trying to say, okay, should the US try to be five or ten years ahead of China. I just don't know if that's if that's a reasonable goal. So I'm not sure if you can maintain that. But what I do think is a reasonable goal is maintaining a perpetual six months to eight month lead by making sure that the American company is in, the American folks working on this continue producing the best AI system.
That was Bloomberg's Milie Chang in more of very exclusive interview with Mark Zuckerberg, or that you can tune into the exclusive interview with Mark Zuckerberg online or on Bloomberg TV tonight at six thirty pm Eastern Time. Let's keep the conversation going on China's US Chip Cubs Titan. Leaders from tech giants Apple and Micron paid a visit to Beijing.
I want to bring in Bloombergs Mike Shepherd, who leads our coverage at the intersection of politics and technology, Apple's COO Jeff Williams, and Micron CEO and president Sanjai Morotra go to Beijing. It tells us how important, despite the political backdrop, the market is and the supply chain is.
It really does and it was a great segue into our discussion. Now to hear from Mark Zuckerberg too, about the importance of China and this tension between the government here in Washington and with the industry around the world. Sees in the world's second largest economy, which is our opportunity both in terms of a large consumer market and also the importance of the productions apply chain lines that
are embedded in China as well. So, as you hear from Zuckerberg, and as you see in the visit of these two key executives, China is super important for their continued growth and development.
Basically, Mahotra and Williams, they're both part of this US China Business Council, right, And I'm kind of trying to understand how much you think that that sort of a council really achieves, how much they are able to get business done amid the tip for TAP from a geopolitical perspective, Well, it.
Does counter the tit for TAM. That's a great question, Carolyn, because you do see all these concrete actions emanating from the Biden administration in the form of export restrictions. These are measures aimed at curbing China's access to advanced technology, especially semiconductors needed the power of technology like artificial intelligence
that Mark Zuckerberg was just talking about. Now having this US China Business Council go and meet with very senior officials, including the Vice Premier Hi Lafeng and the Foreign Minister Wangi. These are important officials to meet and it carries some symbolism, and it allowed the Chinese to convey to the American business community at a very high level.
That look, we still need you.
We realize that politically there are some tensions, but we do not want to see this decoupling that some in Washington have been pushing for.
Just really quick, Mike, We can't get away from the US presidential election. But one strategy of the US is also to lean on its allies in respect to tech cubs in China. You know what's the chatter in that respect in DC.
Well, that's a great question, because right now what we're seeing is a little bit more reluctance in escalating those restrictions on technology. Even further, we've seen pushback from the Dutch and the Japanese against efforts by the US to get the makers of chip making machinery to dial back on servicing and the sending of spare parts to China for some of those machines used in the production of the fabrication of semiconductors.
All eyes on the Dutch, the Japanese, China, US Mike Sheppard is always across it all.
We so appreciate it. Thank you. And that does it for this very busy edition of Bloombog Technology.
Ed very global London, New York. We're even in Austria at one point. Check out the pod. Big shout out to the pod. Wherever you get your podcasts, Apple, Spotify and on iHeart. A lot still to come this week in earnings. This is Bloomberg Technology