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Leaving having made his speech following signing of the bill worth some ninety five billion dollars in aid to Ukraine, of course, to Israel as well as the Indo Pacific. Within that, of course is also the ban or diverst of TikTok. Now Biden is saying that the US is actually going to start sending military aid to.
Ukraine within hours.
He also goes on to say than regarding Israel, then it must make sure that the US has provided aid reaches Gaza. Let's get more of this with Klie lines for more and first the aid.
Klie, what did you make of this speech from Biden.
Well, he clearly Caroline was trying to convey that this aid package was just as much about US national security interests as it was about the interests of our allies. He said that repeatedly, specifically on the subject of Ukraine. The idea that Russia initially thought it could break the will of the Ukrainian people, then it thought it could break the will of NATO and the United States.
And that resolve still stands.
In the words of Vladimir of President Biden, he said, we bowed no one, certainly not Vladimir Putin. And as you say, Caroline, he does indicate that within hours we
will see starts of this aid moving toward Ukraine. On the subject of Israel, not only was he talking about the defense it could provide Israel in terms of air defenses, making sure that they can withstand a future attack like the one Iran attempted just ten days ago, but he also made the point to talk about humanitarian aid, the idea that this will provide aid to Palestinian people, and he had pretty sharp words for Israel.
They must make.
Sure all of this aid reaches the Palestinians in Gaza without delay, going on to say he wants to see the hostages that still remain in Hamas's hands returned and a cease fire deal reached. It was also interesting that he pointed out what this bill did not contain, which of course, was any measures on border security. There had been with the supplemental Aid package, a border deal that was struck earlier this year between bipart negotiators in the
Senate in the White House. It ended up going nowhere in Congress and part in the face of opposition from former President Donald Trump and he made sure to call that out. As we know, though, while border measures were not in it, there were a number of other measures that were that don't relate directly to aid to allies, including the seizure of frozen Russian assets, which yes, can be used to fund Ukraine's war effort. But then of course also that TikTok Divestit Turbil Keayley.
One other area of importance to our audience as well Bloomberg Technology is Indo Pacific Taiwan in particular a part of this bill in the context of semiconductor electronics infrastructure. Just explain the parameters of the bill that relate to that region.
Yeah, this is a much smaller amount of money ed than the money that's being provided to Ukraine or Israel, to the tune of about sixty plus billion dollars in Ukraine's case, twenty billion dollars plus humanitarian aid in Israel's case. The Taiwan portion was much smaller, around nine billion dollars. And it actually is more broadly about the Indo Pacific, not Taiwan individually, although Taiwan certainly represents a big chunk of this and that kind of speaks to this idea
that this in national security interest. They are trying to combat many different fronts and many different theaters Russia on the one hand in Ukraine, of course, the threat from Iran and Iranian proxies in the Middle East, but then also the ongoing threat in China, and making sure that there is security given the importance of Taiwan not only to the US in terms of symbolism and representation of a democracy and wanting to maintain that, but then also
of course the security in that region, given it is vital in terms of the supply chain, but also there are concerns with other US allies and others in the region, like the Philippines in regard to the South China Sea. So that is why you see it more broadly be the Indo Pacific region that was also addressed and talked about a lot less when we were discussing this legislation.
Kaylene, when we think about Asia, when we think about China e Also I think that at the moment of President Biden speaking on this signing of the bill, show too. The CEO of TikTok also put out his own statement, actually using another social media platform of x to post his video response saying no, this bill is a disappointing moment outline.
Thus follow what this means the TikTok.
Well, it was interesting to listen to the language of show Choo in this video, Caroline, because of course, what this legislation actually does is say TikTok will be banned in the US if it is not divested within the requisite timeline, which is actually nine months, with the possibility of a three month extension, should a sale process already be underway, if TikTok or byte Dance specifically were to move ahead with the sale of its US division byte Dance,
though specifically TikTok does not indicate that they are going to do so, so Chu said, we will keep fighting for these rights in court. He said, the facts in the Constitution are on our side and that they expect to prevail, basically just signaling that this is going to
be a protracted legal battle over this issue ahead. And despite what lawmakers may say that they want to see TikTok continuing to operate in the US, they just want it in US hands rather than in the hands of a Chinese company that could be shared data with the Chinese Communist Party. Shoultchu seems like he begs to differ
on that he said in this video. Make no mistake, this is a ban and a band on you and your voice, which is one of the issues that opponents of this legislation specifically pertaining to TikTok had around First Amendment rates and the idea that this could maybe be in violation of those content creators who are trying to
use this platform to share their voice. Obviously, those concerns did not prevail over the wider concerns that proponents of this legislation had about the data security of Americans and potential Chinese manipulation of the content that they are seeing on this platform.
We will continue to cover this very big TikTok story later in the hour of Bloombo's klie Lions.
Thank you very much.
The other big in top technology story is Tesla. Tesla shares are up twelve percent off session highs where they were up sixteen percent and on track for their biggest gain in.
Two years, more than two years.
Three key points from earnings Tesla is accelerating the introduction of lower costs affordable EV platforms. There is in second point, which is an absolute focus on AI and autonomous driving and must spell that out for Wall Street.
And the third point is.
That the first quarter was absolutely disastrous and investors are completely looking past it. Bloomberg's Dana Hole has been all over the Tesla story for seven days straight and she joins us, Now, let's start with what I think the market zeroed in on Dana, which is, affordable evs are coming sooner than we expected and not in the form that we expected.
Yeah, that was the big surprise, And there were sort of two things. The shareholder decks said that they were accelerating their more affordable plans, and then on the call itself, Musk was very bullish and said, well, we might even see these more affordable models by the end of this year. So that was a very big positive for investors that have been worried that Tesla's slumping sales are because they don't have a cheaper EV and you know, the market
is always very forward looking. I mean, there was a lot of negative sentiment going into this call. I think there's a sense now that maybe the shairs have hit the bottom. And Musk has been Tesla's CEO since two thousand and eight. He has been on every single earnings call that this company he's had, except for one he understands Wall Street psychology and he like pulled a rabbit out of a hat and has them focused on the bright future.
Yet again, yeah, not as bad as fed Dana. Can you just outline how they accomplished there? For what questions did he answer? What transparency did we get on this new platform meets current method of manufacturing to create suddenly a cheap of vehicle.
Well, to be clear that, I mean, the earnings print was terrible, but he he kind of focused it on, you know, on the future and and basically kind of knocked down this Reuter's story which had said that there is no more affordable car, that the more affordable.
Car is completely dead.
Tesla is now basically saying that they have been working all along on bringing more affordable cars to market and we're going to learn more about that on August eighth.
So that was a little bit that was still a little bit murky.
But I think the reason why the stock is reacting so positively is that he gave people hope that there is going to be more affordable models. But also he is just incredibly bullish on autonomy and he has been for quite some time.
But the way in.
Which he spoke, the confidence with which he spoke, and you know, he was basically saying, if you don't believe that we can solve this autonomous problem, you shouldn't be an investor in the spot in the stock was just kind of an indication as to how confident he is in the technology that Tesla has been working on for over a decade.
Now, let's show a bit of what Musk had to say about autonomy. You're exactly right. He spelled it out for Wall Street in no uncertain terms. This is the plan, it's AI, and it's autonomous driving, Donna. We did get some specifics, though, I think that we're trying to understand if we got clarity or any new information in the shareholder deck has built robotaxi and then on the call an explanation of how a robotaxi service would work. What did you learn?
Yeah, I mean, I think the big takeaway is like Tesla is coming for Uber. I mean, and they're they're they're you know, they're Robotaxi, which must also called the cyber cab, is like this combination Waymo slash Uber service that will be fully electric and fully autonomous, and I mean there's been some question as to how does this
like fit with the clean Energy mission. It does in that if you can utilize vehicles to be their most efficient and if the miles that are traveled are electric, then you are diverting a large amount of carbon from the atmosphere. And so you know, this is this has been kind of part of the plan ever since master Plan twenty sixty a master Plan Part two in twenty sixteen.
But the shareholder deck actually shows like the Tesla app and I mean they're very much talking about a service that sounds like it's going to come sooner rather than later.
Dnaho phenomenal reporting across the earnings with the podcast going deep into really well the focus of email it is your good, you mustpeak, take a rest.
We thank you so much. Let's go now. From an investor perspective, look, is this.
A time to be plowing into Tesla stocks? Certainly the market seems to be on the day Nazi Tangla's with our CEO CIO of Laffatanga Investments in the house in New York.
Thank you for joining us. Thank you, Caroline.
Is this reaction right, this increase in Tesla shares on the day when.
Ultimately the court had just gone was ugly.
Yeah, yeah, well, I agree with Dana.
Sorry for my voice.
All good, We'll give you a moment to clear it.
Elon gave investors what they wanted to hear. He's excellent at that, like any good founding CEO. But if you look under the hood and you have a long term perspective, we think this is a time when you want to add to the name, and we've been doing that. It's not just the autonomous drive, which by the way, they have three hundred billion miles driven in their their models, but also it's based on the megapack and the megapack
is growing at fifty percent a year. It's the most profitable division and we think can be worth more than the car business in the future. So and those are utility grade batteries. So I think that the company is pivoting. He's giving investors what they want to hear, and in three to five years is going to be a very different looking company. How interesting, because.
We are indeed going to be digging into the battery side of the equation. A little bit later in the show for the here and now, how cautiously. Do you add to a position like Tesla. How much do you see that the dipisorting more? Are you buying day in day out? Do you suddenly see a moment where you get that headlined? Do you then anticipate what happens in August? How do you build up a stake in.
Tesla for you slowly?
Yeah?
Yeah, I don't think you want to chase this stock. Ever, it's extraordinary early volatile. We were adding it in January of last year at one hundred and four dollars a share. It went up to two forty or two twenty. We sold some and we bought some back a little too early. But I think what you want to look for is I mean, you know, for most of us ROBOTAXI sound crazy. I commute a third of a mile every day and coming and going. I see away monk, because I live
in Scottsdale every single day. You can't go anywhere without seeing their ubiquitous and so being second to that market is not a bad thing. And I think I think Elon and the company has really been focused on improving that software and FSD software is pretty slick, and about fifty percent of Tesla drivers use it so the you know, the adoption rate will increase and the rest of us will come to the party at some point.
And Nancy, good morning, it is great to see you. I want to I want to scratch a bit deeper at that, because it is it is completely black and white for a Musk couldn't be more clear to investors. If you do not believe in the autonomous driving vision, don't be an investor. But what's interesting, I guess you know, for institutional professional investors like you, so many had an affordable ev at the heart of their ball thesis. Musk is basically saying, no, have autonomy at the heart of
your ball thesis. What's at the heart of your thesis with Tesla.
Yeah, a good point ed And you know, coming from San Francisco as you do, you probably don't see the volume of self driving cars that we see, but it's in our face every day in Arizona. So I think it's an important component of growth. Some say it's sixty percent of their number. What we're really focused on is the vertical integration of the company, the vertical integration of the megapac. I went to the factory. I think I
shared that with you not too long ago. It's compelling and I think as we you know, as we sort of grapple with green and renewables, you've got to have a way to store that. And Tesla is the industry leader, the low cost provider. So that's at the heart of our thesis. But we know that it's a story stock and you need EVS to come along and you need him to be correct on robo. But let's also stipulate he's never met his deadlines. He's directionally correct, but he's not on time.
Nancy Tangler's CEO and CIO Lappitanger Investments, couldn't think of a better person speak to you this morning.
Thank you.
Now, coming up the UK increases scrutiny of AI investments from Microsoft and Amazon and their impact on competition. Bring you the reporting next, This is Bloomberg Now.
The UK's antitrust watchdog, the CMA, is gathering information to determine whether the four billion dollar collaboration between Amazon and the A for amanthropic but that threatens competition in the United Kingdom, and also said it was looking at Microsofts partnership in mistral and with inflection AI with us. Some more Luma's Catherine and Gamel, and the CMA is not holding.
Back on this.
They're worried about this interconnected web. Spit it out for us.
Yes, So last week the CMA said it was worried about these interconnected waves of partnerships and investments into AI companies by the big tech firms.
They're worried that.
You know, the big tech companies are using these as covert merger opportunities to you know, really have influence over this emerging technology and companies. So today, off the back of that, they've opened three new probes and this adds to the probe that was already in the works of Microsoft's investment into open Ai.
Catherine very quickly. If the CMA moves forward, what are the repercussions.
Yes, so right now it's just an invitation to comment stage, and if they find out that this is a merger under their different terms, then it will go to a phase one.
So that'd be the first stage of the probe.
You know what, then seems it's more sedious and there's going to be substantial listening competition, it can go to a phase two probe and then obviously at that point in marriage of probes in the UK. You know, they can ask for divestments of certain things, or they can block them altogether and tell them to unwind it. So, I mean there's lots of different scenarios, but right now it's very much in the early stages.
Bloombergs Catherine Gemo out of London. Great reporting, Thank you. Coming up on the show, more on tech earnings with Dan Newman of the Future and Group. Big conversation coming up from San Francisco and New York City. This is Bloomberg Technology. Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.
I'm Caroline Hired in New York and let's get a quick check on these markets, because well we are thick and fast in earning season. We're also still trying to digest some big bond market action. Big sales of five year coming today after two year auction. Yes, then as that one hundred managing to push above that three tenths of a percent, and the moments are holding onto gains.
More broadly, as big tech wins out Teslo, we dug into interesting moves with the Japanese yen basically weakening to levels we haven't seen in two three decades, and we're expecting maybe some intervention as we break through this one five to five levels. So keep an eye on dollar
strength further versus Japanese yen. Bitcoin down versus the US dollar today we're off by two point four percent, so there is still some anxiety and risk assets more broadly, move on, have a little look at what's happening in terms of individual moves on the tech landscape now not totally tech, but a lot to do with tech is Boeing, and this is interesting as we suddenly take a leg lower into the red. It had been flying high more than four percent after earnings came in better than expected.
But then that headline, crucial headline, the seven eight to seven is going to be produced on just five jets per month.
That's a worry to investors.
Right now, Tesla just soaring up eleven percent after of course awful first quarter in terms of revenue and profitability, but pointing towards yet still a focus on those cheaper, more affordable cars.
I'm looking at Texas instruments.
This is why we're seeing the socks generally, the benchmark of Chips sucks all higher today, ups more than six percent really some optimism coming after the bell yesterday with its earnings spread across IBM.
Maybe there's a deal going on with IBM.
They're looking at hash you call, that's what's being currently dibated by the market. We'll get more on earnings after the well from IBM, and let's dig into some of those earnings.
Yeah, there's a lot of names. IBM is a key one after the bell. Meta is one that is absolutely huge and we haven't touched on yet. Let's get to the what to expect and bring in the future. From group CEO Dan Newman, I think let's start with Meta because everyone's talking about Meta in the AI context, huge run up in market cap, It is completely outperforming its social media peers because of AI. What are your expectations for the name?
Yeah, first of all, good to see you both ed in Carolina. It's always good to join the show. Meta has been on an incredible run and what it's recently been able to do both in the open source community with the new Lama models and of course being able to build on those models and apply them to their technology, has been nothing short of astounding.
You know, last year it was all about.
The company getting operationally in line, they made the cuts they had to make, they started growing. The market in the street really reacted well. Now it's can they continue that growth on a year over year basis, And they've had several continuous quarters of really great growth. But I
think they can do it. And I think they did get a boost with what's going on with TikTok as well, And I don't know that that will immediately come into effect, but I mean they are the biggest winner of that decision.
And so what the market really should.
Be is expecting is this company is gonna be talking all about AI today. They're gonna be talking about how that's going to create better experiences, and they have this really committed platform, and unlike search, which generative AI is going to disrupt, the reason people are on metas apps and on Metas platform is more about community. It's more about social and I think they're going to become the biggest winner in this in this AI boom.
When METSA is earning Statement's hit and on the core, I'm going to be looking for commentary around add pricing growth from AI and impressions. But it's a different AI story to Microsoft to Google.
That's that's next week.
But is there a commonality between those two names in this earning season that you're focused on.
Yeah, I think it's the ability to apply the AI technology that's being developed to driving that revenue, driving margin enhancement, creating stickiness on the platforms across the board. You know, we know that the search market is going to be disrupted attribution click through, but people spending time on social platforms AI is only making it stickier, which is going to give pricing power to Meta and you've got to
like that a lot. I also really love what they're doing in terms of building their own technology.
The company has become the open tech company.
I mean, who would have thunk that in the world of Apple and Meta that Apple was going to go closed and Meta was going to double down on going open. They're building these really robust, high fidelity models with Lama three, and then of course now it's Horizon.
They're doing it for AR and v are. They're basically saying we're going to.
Be the open platform for developing these next generation technologies.
So there's just a lot to like.
The one concern I do have is that on a year over year basis, they've grown so fast that this expectation.
From the street. They could have a great quarter and still miss.
And I think you have to keep that into perspective that they've had six tremendous quarters in a row.
At some point that music's going to stop.
I think we're gonna be asking that question about Nvidio later this quarter as well.
Yeah, with such a huge market capitalization increase on meta, can they live up to it? But Dan, in that breath, we did hear ed mention Microsoft.
And Google Alphabet.
Both of those are cloud names too, and I want to just spoken on the cloud name that's coming after the bell today because IBM of course big ideal on hybrid cloud on prem of course in and then bringing it to the cloud where your data was going to be stored. I'm interested in what you make of all this rumor around deal with Hawshi call Movady.
What a you're expecting from the numbers.
Yeah, IBM's a really interesting one because I've been very fond of their the growth and the strategy. I've spent time with Arvin Krishna and he's really doubled down on hybrid cloud and AI. It's not trying to be a hyper scale hyperscale cloud provider like an AWS.
It's really saying we want.
To be the enterprise cloud provider and we're going to double down on AI. And where's that coming through really with their Watson X products. So Watson X on a quarter to quarter basis has seen its numbers double the last couple of quarters, and you're still talking hundreds of millions of dollars. But this platform has a lot of what you know, the enterprises need. It's the data strategy and management, and it's also the governance and compliance.
We hear so much.
From these big cloud providers about issues and risks related to how data is trained and how people.
Are consuming it.
IBM has really leaned in on that governance, and I think large enterprises are giving the company a look and saying we need someone that can really manage our data. So I'm expecting that number from Arvind and CFO Jim Cavnaw to be a big focus today. Having said that, you know you asked about the Microsoft Googles. I mean, look, those two have been the fastest growing two clouds.
I expect that to continue.
Google came off a really positive cloud next they're building out their own Silicon they're vertically integrating. And the one thing I'll say is, whether it's Open Ai, whether it's Gemini and Vertex, all these large cloud providers are finding that people are building on more than one cloud, and AI has been the driver that's finally brought this multi cloud strategy to life.
I just want to go back to what you're saying almost with Meta, being like they can still have a great quarter but miss the very heavy expectations. More broadly, we have seen this market near record highs still because of this aipay, this euphoria. Do you really put stock in the fact that these companies can live up to the high expectations of this quarter.
I'll tell you what the entire market is on stilts that these quarters need.
These companies need to live up to the expectation.
There really is so much troubling economic data out there, whether it's this sticky inflation, whether it's higher interest rates, whether it's concerns about elections, you got, you know, geopolitical issues around the world, and right now AI has been the propellant of this industry. In Vidia's numbers will create probably more concern than even these, But look, if Microsoft and Google have a tough quarter and to.
Some extent Meta too, people are going to start to be.
Alarmed of whether or not this AI growth is going to accelerate to this multi trillion dollar opportunity the near term because with higher rates you've got to discount long term cash flows. You have to look against the value of growth the forward multiples. But AI has kind of enabled us to all oversee it because Microsoft's Open AI is accelerating, Google's AI is accelerating, Metas AI is accelerating. So I actually think that this week and then next week, with a couple.
Of the you know, the Amazons and the apples.
That are going to follow, well, if these don't come out well, Caroline, I actually am concerned that this could be what drives the next leg down. But having said that, I am optimistic that these companies are going to get more clear and prescriptive as to how AI is driving growth and how it will continue to drive growth, productivity, and efficiency because people want to see earnings.
Yeah, I want to see the proof that this is working. Daniel Newman, great to have you back the Future and Group.
Thank you. Meanwhile, let's just turn our attention to the future of entertainment.
The industry there could well depend on reaching a truly worldwide audience, and so Netflix is doubling down on those global ambitions.
Blomeg Original's host and Many.
Chang sat down on Netflix's chief content officer, that's Beloma Bajaria for close to look at the entertainment chance a global strategy.
Just take a listen.
I have had lots of jobs in Hollywood and linear networks and studios, and I think there was a really domestic focus and then you sell later. After the fact that you sell, you can tell your title internationally. We're a Horble service and we're in one hundred and eightty countries, so we were always going to do storytelling, you know, locally in that way. So that's always just been a big part of our business in two thirds of our members around sid anyway.
Right, Well, that was my next er, like is it paying off? Yes, that I say, it's also.
Understanding that people in different countries. It's also the investment in local storytelling right to spend time in those places, not have a Western lens on what that is and understand each you know, local kind of creative ecosystem and so be close to the storytelling.
That was Netflix's Chief content of Sir Bella Bajaria now coming up what the TikTok bill could mean for creators and businesses they use the social media platform with LTK co founder and president Amber Ven's box. That ain't Amber, but I'm sure she'll appear momentarily Carrots.
So pick.
Meanwhile, let's just talk about another interesting story that's happening in terms of the destination of where certain companies are located.
Oracle's doing again.
They moved from California to Texas and now well a listener's moving Oracle to Nashville from Texas. Larry Alison making that decision because look, this is about a bet on the future of healthcare and provision of what he can do.
There are for a big deal. This is Bloomberg technology.
Let's get back to the legislation involving TikTok. Let's bring in Bloomberg's Alex Brinka. Alex are in the program we had that breaking news from show to the TikTok CEO basically saying in summary, whatever happens, we're not going anywhere. He really leaned on this idea that this was an issue of freedom of speech. You've written a really smart piece. In the last twenty four hour I was about the two hundred and seventy day timeline.
So the bill signed.
Into law, but there is a curious chronological occurrence relating to inauguration day post election.
Just explain you're reporting.
Yeah, So this bill gives two hundred and seventy days for byte Dance to separate from TikTok or else face a ban in the US, but there is a clause in there that allows the president at the time to extend that for an additional ninety days. Now, that two hundred and seventy day deadline ends up being on January nineteenth for the election savvy you'll know that's the day
before inauguration Day. So regardless of what happens in this presidential election, President Biden will be on the hook for deciding does TikTok and byte Dance get an additional extension if there is no divestitor at that point. It's an important distinction to make because of what we've seen out of the leading Republican candidate for president, Donald Trump. Trump is the man who did write the first executive order to ban TikTok in the US in twenty.
Twenty but these days he's changed his tune.
He's actually said he thinks TikTok should stay. So this kind of battle TikTok's had with DC has been very much pulled around by whichever administration is in power, and it seems with this happenstance timing that that is not going to change through this next election.
Such smart reporting throughout this week and on long weekend, Alex Brunka, we thank you so much for all the nuances surrounding TikTok. Now we want to get the perspective of the creator right now. Are they still really focusing in on TikTok, on the shop, the commerce offerings?
Joining us now?
I'm a Ven's Box, president and co founder of influencer shopping app and tech platform LTK.
You yourself, in many ways an influencer.
You're then building a business that supports influencers. What are the questions you're currently fielding? Are people turning away from TikTok amid the volatility the unknowns?
Right now, we're educating a whole new generation of creators of what's it like to live and future proof your business in the creator economy. We've seen this now we launched our business in twenty eleven. At that point we were talking about blogs and then you know, let's see next came Pinterest, and then Instagram and then Snap and tiptok. So I'm old enough to have lived through several several generations of platforms, and I see them now where they rise and then they maybe follow out.
A consumer favor.
Like to say, there's either an evolution of these platforms or a revolution. This is something that we have built for specifically at LTK. We're in kind of what i'd call the third chapter. So moving from that first chapter being blogs, second chapter social media, now third chapter where creators need to find a home base. What we've seen happen on TikTok, they've changed the paradigm for social media. It's no longer about building community, it's about interest based feeds.
So as a creator, I then.
Have to hook someone based on their interest and then bring them back to the home base. And so right now we are in an effort to make sure that our creators who have started their career on TikTok understand that this is expected, it's prepared for, and they have actionable next steps.
And that's really interesting and what I'm also wondering, is how many questions you're fielding on whether the influencer's role is to support one of their key platforms. What's been so notable is this time round, this sudden flurry of activity on the hill and it's.
Whizzing through Congress. We haven't heard much from the influencer base.
So too puts out a call to say, tell us your stories make it clear to lawmakers as to why this is so important.
Should you be fighting for TikTok?
Well, history also tells us that the platforms are ultimately misaligned to creators. I hate to have to say that, but it's true. The business models just don't work for a creator. They're taking usually one hundred percent margin on their ad revenue and not paying the creator. But the creator gets out of this. What I would still say, the symbiotic relationship is distribution and discoverability, and so a creator's loyalty is truly to their audience and not to
the platform. And that's what they're feeling right now is how do I make sure that my audience knows I'm here, I'm not going anywhere, and where they can find me because I want to conte you need to be in a relationship with them, because ultimately that is what I have to sell. It's the trust I have with that community, which means I have to have one.
The technology secret source amber for TikTok seems to be algorithmic.
Right.
You've talked about interest based feeds and in a divest scenario, there's a lot of concern that algorithmically China might act. I don't expect you to weigh in on that, but I think there's a value you add in explaining to our audience how effective TikTok is algorithmically speaking in matching the content to its target audiences.
Incredibly effective. It's absolutely changed what it means to be a social media platform. Before this, you know, you didn't really think or talk about like explore pages or discovery pages. It was truly about finding someone that you like and then be a recommended another person, which was really more
about machine learning than about AI. When TikTok entered the scene, their algorithm is so far superior to what we're seeing on any other platform that you could log into the platform, actually not follow anyone, and have a feed that felt like it was absolutely one hundred percent created just for you like, this platform was made for you, and that's why we see if you look across on average where adults are spending their time, TikTok has almost an hour
a day on average for adults, and that's much greater than I think YouTube's in second place behind them, and then falling down behind her all of the other social media platforms.
So that is their secret sauce.
We know that.
Of course, in China there's legislation that they are actually not allowed to export their algorithms, and so in any sort of a divestature from what the Chinese government is saying, the algorithm would not come with.
The TikTok property amber very quick. If you can't use TikTok, what's the next best thing?
Ltk?
Our creators are creating there every single day. They're making it a place where they can connect with their audience. Again, the most important thing that a creator has is trust, and that's why we see that actually with gen z, they're three times more likely to trust a creator over an ad We now see that the vast joy the population now says that they shop from creators. And so, as a creator, if trust is what you're selling, how do you stay in touch with that audience every day.
The job that.
Social media was doing last year, they're not doing for you today. They're a discovery platform and so you've got to have a place where you're.
Growing your community.
Amber Ven's Box, President co founder of LTK, Thank you so much. Now, coming up on the show, we're going to be joined by Science Co CEO ilam Cadre for a discussion on EV batteries. This is Bloomberg technology EV industry top of mind after Tessa's earning. Science Co is a crucial player in all of that specialty. Keenalties Company about to break ground on a flagship site in Augusta, Georgia tomorrow.
It will serve as North.
America's largest capacity production facility for polyvinyl idin fluoride, a critical component of EV batteries, joining US Science Co CEO ilhum Cadri. The narrative from Tesla is demand on the EV side, low hybrids are interfering. Why is the chemical company specialize in important right now?
Yeah?
Well, hello and good morning.
Thank you for having me.
It's gonna be a great day tomorrow. Were groundbreaking in Augusta, one of the largest material and the largest material manufacturing sights, which is going to common stream in the next five years to cater more or less five million ev cars. We still believe that the long term fundamentals of the electrification in Americas are still there. We believe that more than thirty percent adoption will happen between now and twenty thirty in the world, it's going to be more than
half of the production's fleet will move to EV or hybrid. So, yeah, you are seeing some delays for good reasons, right, some softness in says, but you know it takes three years anyway to build the plant, and we believe in this electrification fueled by consumers by the giga factories. Ten are already in place, twenty seven are in construction, and our customers are demanding on shoring domestic manufacturing materials like ours to suppose the adoption and cost competitiveness.
Supply chain has been a constant headache for many. From your perspective, what is needed to ensure that we hate that level of adoptions of evy and hybrids over the next cost the five years.
You need cheaper cars, ev cars and hybrid cars, right, and you need this and the technology in batteries is going to enable that. Right, just a few years back, half of the cost of Tesla car used to be a battery. Now it's twenty fifteen percent. We're going to get it to a single digit. So our materials they offer more efficiency in the batteries, higher elexical density actually, and therefore more autonomy in driving.
Right, let's drive in eggs.
So I think the cost curve of the ivy and hybrid cars are gonna come down, like any new technologies, and we're an enablers today we commercialize the generation too lethium ion batteries. We are agnostics to technology. We go to LFPN, n C and others. But we are already working on generation four and five solid batteries, which gonna get even smaller batteries, cheaper, more affordable, safer.
Well, congratulations on breaking ground tomorrow. We look forward to having on the show sunce Co CEO doctor Elm Calder.
We thank you.
Wow, what a well when that does a decosition of bloom bang technology.
And we are in the thick of it.
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