The Election And Big Tech

From Mahard.

We're Innovation, Money and Power Collie in Silicon Vallet NBN.

This is Bloomberg Technology with Caroline Hyde and Ed lud.

Love now from New York and San Francisco. This is Bloomberg Technology in selection day and the tech policies and implications that you need to know about. On the last day of voting.

Class Palenteer shares jump as it posts record profit and made unwavering AI demand and Apple.

I's smart glasses. We discussed the internal study code named Atlas as it follows Snap and Meta's lead. But first we check in on these markets as people head in person to the polls. We're currently up nine ten percent on the NASDAK. Big tech leading the charge today in Vidiar Tesla on the higher side, and really it is big tech that also drives from an earnings perspective. And what are you watching on the.

Micro Yes, straight to Palenteer shares up twenty three percent in the session, on track for their biggest jump since February of this year, trading at an all time high. What's astonishing, It's like out of nowhere. This is a company with one hundred and fourteen billion dollar market gap and it's all on revenue in the court have gone a little more than seven hundred million dollars, but the narrative incredibly clear, unwavering AI demand from corporate America and

You, Yeah, I mean the government segment growing forty percent here in the US, and it is on the back of, you know, some connection that they have found with implementing llms. I mean, everyone is looking have ways to deploy, you know, whether it's GPT, Gemini or Meta Lama, and to Palenteer's credit, they found the right pivot when it comes to integrating the data the ontology that they have with these llms.

What's interesting, of course, your note that you put out is saying, perhaps there was a rush to spend budget that was happening from the US government perspective, from your mind's eye. Therefore many have they diversified enough to ensure that they've got the private sector where they want it to be.

Yeah, I mean, look, we are in an environment of heightened geopolitical tensions and that has traditionally benefited talent.

Heer.

I'm a little leary of you know, their momentum on the international side, given its still thirty percent plus of their business, and that's where you see a tapering of growth, given how controversial the CEO can be at times. And look, when it comes to software companies, you want to show recurring revenue. That's why the cloud names have fetched, you know, premium multiples over the year. Palentier currently trades at a

Technically, the shares a riverboard if you're looking at the relative strength index mandate. It's saying of BlueBag intelligence brings us the fundamentals there. But look, let's get back to what the day is. It is Election day, it is here in the US, and the polling continues to show

Well, really, this is going to come down to turn out that probably will surprise no one. But with the margins this type consistently in polling, it really is going to be about who can convince voters to get off the couch today and vote for them. No longer is it about convincing them to vote for either Donald Trump or Kamala Harris, but instead to get them to vote at all. And I would keep in mind that millions

Kaylee, thank you for your reporting. Just incredible command of the data, which is so important in this tight race. Both candidates kind of had closing pitches or remarks last night. Where do we leave things in both the Trump camp and the Harris camp.

Well, we heard similar things from Kamala Harris, which is that she wants to essentially turn the page on what she is referred to as a dark era in American politics for the past decade in which Donald Trump has been involved in presidential campaigns over what has now been three cycles. She reiterated she wants to chart a new way forward for Donald Trump. He is basically trying to

Bloomberg's Katie Lynes, thank you very much. Let's get the market's perspective and bringing in Anna Ruthman of CBIZ Investment Advisory Services. Equity markets are higher, big tech, well megacap tech stocks are kind of leading the way voting is underway. What does that tell you, Anna?

If anything, I think the markets are ready for this election to be over and for some of the uncertainties that have been present and leading up to this day to be over. And I think there's a lot of excitement about that. But depending on who wins and depending on what Washington looks like, there are some issues that may be facing tech. And that's on the regulatory side. So if I'm taking a look at what might be lying ahead, I mean, of course these things can change.

Because we have a case while.

Trump was president between twenty sixty and twenty twenty, everybody remembers time order and at serprise, right.

So just real quick, we're kind of zeroed in on this presidential race. But of course the composition of Congress will have an impact, and I think in particular about if you're talking about regulation artificial intelligence, but also electric vehicles, right, the standing impact of the IRRA and any changes that might ad that. How do you model for that? Please?

On the EB side?

Sure, on the EB side, I think there is there's what we established as what Congress would want, right, But so if you have a democratic sweep it's going to look one way. If you have a Republican sweep, it's going to look another way. But I think American people have sort of spoken through sales. I mean, if we look at Tesla for example, I mean, Tesla did really well, but in terms of volume, sales was down.

Right.

If you look at.

Ford and GM, their EV sales were down. So I don't know if Washington is going to continue to demand, depending on who, especially for the Democratic Party, continue to demand that kind of regulation, but the American people might just not be for it. So I'm not entirely sure if it's going to shake out the way we might project.

Tesla.

Of course, one of the leading points contributors to the NASDAC on the day at least Anna the leading is in Nvidio, And I just want to ask you a little bit more about the semiconductor industry and what you're trying to factor in in terms of future policy there, whether it be with China, whether it be building here in the US.

Yeah, I think with AI, that's the national security bit that I was talking about before. I think the building here in the US, it's going to take a very long time. So I think that we're not going to see that tomorrow or next year, or frankly even in the next four years, whoever is.

The president, what Washington might look like.

So I think with Nvidia and AI, the chips and the important export controls, that's going to be a big topic probably for the next ten to fifteen years.

Have you been worried in any way about potential change? Of course, when it comes to the subsidies, the support here in the US for the chip sector building in the US, has that changed any of your investment assumptions?

It doesn't worry us.

I mean again, this is going to take a long time. It actually makes us excited because it actually takes the risk of relying too much on Taiwan and South Korea and it brings it in here. But now that also then you have to question is that going to increase the cost of production here because it is essentially a little more expensive to make things here, And that actually opens up the door to other discussions here that may not be tech related per se, but everyone who uses.

Tech and indeed monetary US see related if we are indeed talking about inflationary pressure. Anna Rathman, so good to have you on this day. Ciba's investment advisory services. Meanwhile, we want to keep an eye on other chip related stocks today because the key contributor to the downside in terms of points on the nurse at one hundred is

Okay, coming up from the show details and the survival of Elon Musk's million dollars sweet steaks, that's next. This is Bloomberg Technology, a legal win for Elon Musk as a Pennsylvania judge rejected a request to halt his daily one million dollar sweep stakes, which is run by Mosqu's pro Donald Trump America pack Bluebers Crystal match on the ground for us and Chris, I think we've covered this over the course of a number of days or weeks, and at the heart of it was what is the

The judge had a six hour hearing with the DA of Philly, Larry Krasner on the stand for a few hours and the treasurer of the pack, and almost immediately after decided rejected the DA's request for an immediate order that would have halted the pack. He didn't explain its reasoning. He said he's going to put out an order an opinion momentarily.

That will explain its reasoning. But the DA has.

Intended that the giveaway violated state lottery laws and also on consumer protection laws because it wasn't protecting the confidential personal information of the people who won the prize the pack. He contended that it actually wasn't a lottery at all. It was actually these people were given employment contracts for their time as spokespersons for the pack, and they kind of said they were being put through the ringers, so

Leads us precisely where Chris, because I suppose there's more transparency on actually what this is all about and sort of paid spokespeople. But ultimately we're off the hope from a legal perspective for the most part.

Now, the DA continue to pursue damages, and he made it clear that he was going to seek more money. I mean, this is an emergency injunction motion. So and for the most part, like you said, it's kind of moot that the giveaway is over. They they're weren't going to give away any more money. So Elon last week tried to get this move to federal court.

This is why it took so long.

The GA only filed this dude a week ago, and as were supposed to have you hearing on Thursday. That get canceled when Elon tried to move it to federal court and then it got punting back to state court. So for the most part, this lawsuit is kind of over for the moment, and Elon was kind of victorious, even though oftensibly, you know, he lost his attempt to move it out of court.

In both Crystal Match on the latest we thank you now look Silicon Valley Heavyweights such as in Noamusque. It made a significant impact on this year's US election. But our next guest says, text involvement began long before the twenty twenty four decision. Let's bring in no like technology and geopolitics. A fellow at the Harvard Belfa Center, you

Hi, Caroline, Yes, our current age of tech really began in the nineteen eighties with the arrival of the desktop computer, and then in the nineteen nineties e commas took off, and now we're in sort of the third act of this age in terms of AI and of course the space phrase. But from the very start, from the nineteen eighties Silicon Valleys players, many of whom are still the

I suppose what potentially has changed here is that one of them might well take a very leading role in men illustration if indeed Trump does get in and talking about Elon Musk. But moreover, it's sort of we're getting more transparency about their roles. Is that because of the way they're self identifying, or is that because of the age of social media we able to find these things out.

I think it's because, well, we have people like Elon Musk being sort of particularly flamboyant in terms of their approach. I mean with the million dollar lottery, where there's been so much focus on the million bucks. But actually I think it's great to have that because we are now seeing the power of tech, which was sort of previously

Your research, have you found specific evidence that an endorsement from a technology leader like Musk, or an appeal from leaders in technology to actually go out and vote translates to that action by the electorate in the voting base.

I think it does have some impact. The very first Silicon Valley election was took place in nineteen ninety two when Clinton actually went out to woule Silicon Valley because he wanted to the Democrats to be seen as a pro business, pro tech party, and the endorsement that Silicon Valley gave him just I think three weeks ahead of that election did actually help in terms of shifting the mood somewhat. But of course, at that point he was

Now, do you believe that technology is a priority for both campaigns in this election?

Yes, absolutely, And I think that when we have candidates competing for Silicon Valley votes and endorsements, it means that actually it's a win win for Silicon Valley irrespective of whether it's Trump or Kamala Harris who ends up in the White House.

I think just broadly, we need to just think about ultimately whether the electorate do you think has that transparency, that knowledge that with endorsements, with hitting the campaign trail, there might well be positives for the companies that they run in the later half of the administration.

I think all of us are becoming much more aware of the power of big tech. I mean, we've now been living in the age of Tech for the last forty years, so I think, yes, the electorate is beginning to pay more attention and when we have people like Mask making the kind of statements they do, in a way, he's helped add to the need for more transparency and has made that the process more transparent. In fact, inadvertently.

Like Technology and Geopolitics Research Fellow at the Belfa Center of the Harvard Kennedy School, thank you, welcome.

Back to BLUEMG Technology. I'm Karine Hyde in New.

York and I'm ed Loveo in San Francisco.

It's going to quick check on these markets. We of course see people lining up, willing and wanting to be able to cast their votes today at the election polls. I'm looking at the na's that one hundred up more than one percent. In fact, we're seeing big tech leading the charge Bitcoin on the higher side as well. So see now as some sort of proxy as many feel for potentially a Trump administration coming in and one that has shown significant support of cryptocurrencies here in the United States.

A story that broke late last night. Predictions betting platform Polymarket has been paying US based influencers to promote election betting on the site, even though it's barred from letting anyone in the country use the tool to place wages, including on today's presidential race. Bloomberg's Margie Murphy broke the story and joins us, now, what did you learn?

Yeah, so, I think a lot of people may have seen polymarket across the social media. There's just been a flurry of memes and graphics showing Carmela versus Trump with a landslide to Trump. And so we were we'd heard that Polymarket had been reaching out to US based social media influences saying, look, we'll pay for you know, we

Let's talk about whether or not it is indeed trades they want, or whether or not Polymarket predictions betting platform also brings data for many. Is their counter argument that they just want eyeballs people to come to the service, even if in the US you're barred from making any particular back right.

So the argument is the poly Market spokesperson said to us, ninety nine percent of people are just coming to the website to view it as a news source for them, and you know, only one percent actually plays trades. And that's interesting because the way that it's been shown on social media the way that influencers explain to us how they were asked to present themselves. It's very much like polling data. So when you look at these social media posts,

Meanwhile, the ads are viewers, whether they were voting on Trump or Harrison, telling them, don't trust the polls. Trust the market's fascinating story. Go read it, Margai Murphy. We thank you on all things poly markets. Meanwhile, in a presidential campaign marked by what seems amplified devisive rhetoric and rumors, many are working to combat misinformation. Separate fat from fiction. Danielle Lee Thompson so the Center for an Informed Public,

Good morning, Carolyn, thank you for having me on the show. The truth is, when you're online on social media on election day, it's like trying to drink water from a fire hydrant. There are so many feelings, so much on circuit certainty, so much speculation about what is going on, that it's actually very hard to get a true sense a signal and the noise on a day like today.

Danielle. We've reported on this program in recent days about how, for example, US cybersecurity officials are trying to re establish some trust with the voting base. Have you any sort of data research study that tells us how in this election, literally today in twenty twenty four, misinformation and voter distrust will be a factor relative to elections in the past.

Absolutely, So something that we have to understand that is unique about this election in general is that so much of the American public is primed to mistrust election results on the Republican right, so we think of it as kind of like the three c's right now, there are people out there who have convinced the American public that this election won't be safe, although it overwhelmingly by officials

In twenty twenty, I was in Arizona election in tech or the integrity of voting systems was the issue. Then, what is the issue now today?

No?

Twenty four.

We've seen a couple of themes emerge in during early voting and during today some of those were around alleged fraudulent voter registration forms. Some of them are alleged glitches in machines that are being extra one small problem being extrapolated into a larger conspiracy theory. So those are some issues that we've seen and that we will continue to see. But it's important to remember that these issues tend to have remedies, and that's a good thing.

Talking of remedies, you're looking and researching into misinformation and then trying to convert it into policy. Is their future policy that can help tackle this going forward?

It's a good question. Today we mostly focus on gathering different types of data sets of how rumors spread on platforms that is going to inform policy change, whether that is internal to tech organizations or to government organizations, or also to all the different election officials and boards of elections around the country who want to gain the trust and keep the trust of the American public. So that's what we're focused on today, is getting that data to help those solutions later.

Danielle Lee Thompson of the University of Washington, thank you very much. Now coming up here on the program, why election interference fears could linger, We speak with a former chief of staff of the Cybersecurity and Infrastructure Security Agency, Kiss and Todd, the snacks, the Spoonberg technology.

Voters heading out to the polls, top of mind is security and alleviating fears of election interference for what could be a hotly tested outcome. Joining us to discuss is Kiss and Todd, former chief of staff for the Cybersecurity and Infrastructure Security Agency, also now president of Creative Agency wander Us and we rely and go to your CASO and cyber readiness expertise here because we understand the misinformation concerns. We were just talking about them with our previous guest.

We are safe.

So while elections themselves are political, election security is not. Election security is national security, and our election officials, our election infrastructure stakeholders have never been more prepared to administer a safe, secure, and resilient election. What's important to note is that after the twenty sixteen election, elections themselves became critical infrastructure, which means that we determined, as a federal government with industry that elections are critical to how we

Can you give us exact details of I mean, resuls is one thing, but actual practices, ways in which we know and can trust in the systems that exist.

So first of all, we have to look historically.

So since the beginning of twenty twenty three, the federal government has worked closely with state and local officials to conduct physical assessments of election systems. Importantly, to run almost two hundred exercises that prepare these individuals and these communities in these regions for different scenarios that may come into play. It's also important to note that elections are not connected to the Internet, therefore giving it a different level of resilience.

Kissen. Last night, US intelligence agencies issued a joint statement that in our reporting we say is unprecedented. Warning the adversaries, Russia being at the forefront of it, has stepped up efforts to disrupt this election, calling on your experience and your time in relevant agencies. Why is that significant, Well, what we know is.

That our foreign adversaries are absolutely conducting malign influence operations that have two real goals. The first is to undermine the confidence of Americans in our democracy and the second is to sow discord, to just pit Americans against one another when there's actually nothing there. But what is critical about this election is we're seeing the federal government work across agencies to put out these joint announcements and to

Through cybersecurity. What are the biggest vulnerabilities that a voter today, of all days, might face throughout the day. Where is this manifesting itself for everyday people.

I worry less about cybersecurity. I worry more about just people's confidence in the system. There's never been a more important time for individuals for citizens to believe in the resilience of this nation, to believe in our ability to conduct safe, secure elections, and to be personally resilient. And each voter has accountability and responsibility in this moment to get the right information. State and local election officials are the trusted sources for information. If a voter has any

OK, bear with us. Former President Donald Trump is speaking in Palm Beach, Florida, where he's cast his vote.

In force, So we'll see how it turns out. But it seems that they have really shown up in force. I just got a call from Dan Patrick in Texas. He said, they've never seen anything like It's been great. Look regrets, you always have regrets. I can't think of any to be honest, to use her expression, I can't think of any Look. I ran a great campaign. I think it was maybe the best of the three. We did great in the first one. We did much better in the second one, but something happened and this was

Were in.

The possibility that you and Vice President Harris both might not get to two hundred and seventy electoral votes by the end of tonight.

It should never happen. A thing like that should never happen. This election should be over. They spend all this money on machines, and frankly, if they'd use paper ballots, it would be over by ten o'clock. And by the way, the paper ballots would cost eight percent. It would be eight percent of the cost. If they would use paper ballots, voter ID proof of citizenship and one day voting, it would all be over by ten o'clock in the evening.

Did you see a world where you don't declare victory tonight.

Yeah, I mean, I'm hearing the same things that you're hearing. I'm hearing states where I'm up by a lot, but they won't have a final number for a long time in terms of watching the results and so forth. So we're going to have a very special group of people, many of whom you know, and they'll be at Marlago. In addition, we'll have four or five thousand people at the convention center on the assumption I win. I mean, I don't know if something else happens. I don't know

So you have.

Thirteen thousand plus murderers allowed to roam in our country, I'm not going to be allowed to have to go. You have drug dealers, you have terrorists, you have a tremendous amount of people that should not be in our country. And we need strong borders in this country. And I think people are voting that. I think it's personally. I think it's a number one issue. We'll see how it pans out, but I think it's a number one issue.

Are you?

Are you done after this? I would think so. I would think, so, said said and very fulfilled. I think we're gonna have a very big victory today. Very good, thank you, Thank you. Start transition team. But I don't like talking about that until I find out how we do. I mean, well, it doesn't look we're not looking to do damage to a RAM. But they can't have a nuclear weapon, and say, you know, my terms are very easy. They can't have a nuclear op and I want to.

To win.

Campaign.

Are you more confident now than you were that you were.

My team? I'm very confident. And many of them are the same players, as you know, Susie. A lot of the people of the same players have been very good. Well. I think it's ridiculous. You know, Oprah, I was on her last show or one of her last shows and they picked the biggest people and all of that and made a big deal. And I'm actually I'm disappointed. I think Oprah has become a major divider in our country, and I think frankly should be She's be ashamed of herself.

Concerned that you didn't concede the election in twenty twenty when you lost, they're concerned that if you lost this election, you wouldn't concede again. What do you say to those people?

I think they're crazy. If I lose an election, if it's a fair election, I'm going to I'd be the first one to acknowledge it. And I think it's well so far, I think it's been fair. I think there's been a lot of court cases. Both sides are lawyered up. Thousands of lawyers are involved, you know, thousands, can you imagine? And part of that is because we have too complicated a process. If we had a piece of paper watermark you know that paper is more sophisticated now than computers.

Well.

I'd be honored to have him now, and I haven't spoken a hard about that, but look, if you think of it, he came in third, you know, and running for president, right, He ran a very good race. He had obstacles. The Democrats just really unfairly put obstacles up, and hence A Kennedy left the Democrat Party for the Republicans. There's a very smart Guy's are very carey guy. It's very popular too. We get up and introduce him, the place goes well. No, we love having them, and you

Thinks recap on the podcast. You know where to find it online on those platforms. Do on the Bloomberg ones as well. Thank you team in New York, Thank you team here in San Francisco. Get some rest because there's a lot more to come. This is Bloomberg Technology