October 15, 2025 • 42 mins
Bloomberg’s Caroline Hyde breaks down ASML’s earnings as the AI boom continues to fuel demand for its cutting-edge chip-making machines. Plus, deals to develop data centers just keep coming, among them Microsoft and UK startup NScale inking a fourth deal. And Apple updates its top-of-the-line iPad Pro and other products with its own in-house chip.
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hyde in New York
and Ed Lolow in San Francisco.
Speaker 2 (00:22):
Miss Bloomberg Tech coming up ASML says bookings for its
most sophisticated chip making machines remain resilient thanks to the
AI boom.
Speaker 3 (00:30):
That's a whirlwind of data center.
Speaker 2 (00:32):
News and Microsoft cutting a fourth deal. Then Scale among
others will break it all down, and Apple updates its
top of the line. I've had pro when other products
with its own in house chip first a SML the
maker of EUV equipment, the most sophisticated chip equipment that
then get sent to key partners around China but also
(00:53):
around Asia, and they're showing strong bookings. Let's get the
details of Bloomberg's equities reporter Henry Wren And what's so
important is it? The EUV Extreme Ultra Violet lithography machines
seem to be being still snapped up even as China
has to pull away eventually.
Speaker 4 (01:10):
Yeah, so thanks for having me and for this quarter,
which is the market focus. Is this EUV order's number
and has risen to the highest level since late twenty
twenty three, a huge plus for investors, and that's why
we've been seeing stock trading higher now. So we know
that actually mainland China investor chip makers they can't order
(01:31):
EUV tools directly. They can access a less advanced tool
called DUV. But it really is a sign that some
other chip makers, including Samsung in South Korea, including TSMC
in Taiwan, is stepping up, and to investors, it's an
early sign that this rapid increase in AI infrastructure is
(01:52):
actually translating to the orders that ASML has been seeing
so far in this quarter.
Speaker 2 (02:00):
Interesting is the dominance of Asia as the demand flow
us starting to pick up for ASML's equipment.
Speaker 3 (02:05):
But they're in the heart of the geopolitical tension right now.
Speaker 2 (02:08):
They must be exposed to concerns around rare earth metals,
let alone an ability to have to pull away from
selling into China.
Speaker 5 (02:16):
Yeah.
Speaker 4 (02:16):
Indeed, a lot of discussions on rare earth in the
morning as well, and ASML said that it has stacked
enough rare Earth's materials for at least several months because
realize that we realize that the market has a lot
of concerns regarding chip equipment makers reliance on those metals
because analysts said that although in terms of rare earths
(02:40):
the total material input for ASML, it just accounts for
a very small amount, but it's still a very critical
component for its most advanced EUV machines as you mentioned,
but also for its partners for example, because ASML works
with other partners for mirrors, for other components for uvs
as well, so it's a very important ingredient into the
(03:03):
EUV machines. But so far the company said that it
hasn't seen major impact.
Speaker 2 (03:08):
Most valuable European stock, Henry Ren, we appreciate the breakdown
on ASML. Let's stick with that very company in the
Broader AI conversation. Andrew gardners with us the City Research
how of European Technology Equity Research, and you have a
bio rating on a SML, you have a price target
of more than a thousand euros.
Speaker 3 (03:23):
What takes us there?
Speaker 6 (03:24):
Andrew, good morning, Thank you for having me. Yes, we
continue to be bullish on ASML, and I would say
you know this morning's results and the orders in particular
that you are highlighting with Henry just now are a
step in the right direction in terms of the potential
appreciation of this stock. I really think we've we've been
(03:44):
on a journey over the last year in terms of
resetting a base for twenty twenty six, and they have
confirmed this morning that you expectations are at a reasonable level.
They don't want to yet go so far as to
call out growth, but at least going to decline next year,
and I think that's removed one of the key uncertainties
(04:05):
for the stock, and that's helped to get us to
where we are today, just shy of nine hundred euros.
In terms of further appreciation from here, it's all about
the growth beyond twenty twenty six in my view, and
that really comes down to some of what you've been
alluding to with the demand coming from the artificial intelligence
players into the data center here. Clearly there's a lot
(04:29):
of momentum in terms of the news flow ASML management.
We're highlighting that just recently on the conference call. It's
not yet fully reflected in their order flow, but it's
something that we expect to come in the future quarters,
and so it's really that momentum that we'll drive the
stock higher.
Speaker 2 (04:46):
I love that you say that, Andrew, because I pulled
this part from your note, which I think was really
important for our viewers because in particularly say sml acknowledge
basically the momentum in the chip industry and market more Braorley,
but this is not yet reflected in firm orders, and
there's a growing disconnect in the industry between the mirriaud
of AICHIP deals being announced and the amount of spend
(05:06):
committed to these equipment companies.
Speaker 3 (05:08):
When will it show up?
Speaker 2 (05:09):
Are you really confident that it will show up, because
many are questioning the absolute financing of some of these orders.
Speaker 5 (05:18):
Yeah.
Speaker 6 (05:18):
I think it's a critical question for this space, as
it has been talked about already this morning on this program.
You're seeing all of these deals being announced by the
likes of Nvidia, open Ai committing to certain volumes at AMD,
in Nvidia, the memory companies, and yet ASML sure was
(05:41):
a healthy order intake of five billion euros, but nothing
too out of the ordinary for them. You know, certainly
they've had stronger quarters in terms of order intake. So
I do think given the lead times in particular, we
are going to see need to see orders pick up
in the coming quarters in order to support the future
demand that's been talked about by the artificial intelligence sector
(06:02):
in particular. For example, ASML, on the EUV tools that
you've already highlighted, their lead times are roughly twelve months,
So even if you're ordering today in the fourth quarter,
you're not going to get those tools until the fourth
quarter of next year, ramping production into twenty twenty seven.
So the lead times are quite long, and therefore the
supply chain needs to be prepared for that ramp to come.
Speaker 2 (06:26):
Andrew, you don't cover the stocks in particular, but if
you are thinking about an announcement coming from Nvidia saying
we're going to be there with thousands of chips ready
by twenty twenty six to be put into which have
a data center that open Air has just asked for, and.
Speaker 3 (06:39):
The AMD as well, do you think the backlog is.
Speaker 2 (06:42):
There that they've got them the inventory to be able
to sustain the twenty twenty six dates that we keep
getting from these companies.
Speaker 6 (06:50):
So in terms of thinking through the supply chain, you
take ASML as a critical supplier, the only one in
the world who can supply the EUV tools that necessary
for many of these chips. They are close to but
not quite fully booked for twenty twenty six deliveries. That
will be the case by the end of twenty twenty five,
(07:11):
given that twelve month lead time, and so really the
capacity that is already planned to be installed next year,
Sure there could be a little bit of upside, but
we're already getting close to the limits, and really, as
I described earlier, what you're playing for is the growth
into twenty twenty seven. SML management this afternoon here in
Europe commented on the fact that they don't have perfect
(07:34):
visibility because those orders aren't there yet, but they are trying.
They're acknowledging the growth in the industry, the demand that
is coming, and they're trying to prepare themselves and indeed
their suppliers to be able to make sure that they
are not going to be a bottleneck into future years.
Speaker 2 (07:49):
What was so notable about this quarter just gone that
they reported on for SML was the forty two percent
exposure still to China in terms of revenue. How much
smaller will that became lad eventually?
Speaker 6 (08:01):
Yeah, So they have called that out in terms of
the expectation for twenty twenty six and saying it's going
to decline significantly unquote into next year. I would say,
on a year to date basis through September, they're at
about thirty two percent of system sales into China. As
you point out, that was higher in the third quarter
at about forty two percent, So they're still generating very
(08:24):
strong business in China at the moment. They're just saying
given the extended level of spend this year, last year,
indeed the year before that, they think it should normalize
into the future. At the moment, though, with the restrictions
in the way that they are, the Chinese companies are
ordering what they can and so yeah, we'll just have
(08:45):
to see exactly how that pans out into twenty twenty six.
The lead times for the type of tools that the
Chinese customers are buying are not twelve months in the
way that they are for EUV They're much shorter, six months,
perhaps even less in some cases. So again, things could
as we look into twenty twenty six.
Speaker 2 (09:02):
Andrew, you cover ASML and the who's who of the
European hardware sector.
Speaker 3 (09:06):
We appreciate you being on the show today.
Speaker 2 (09:08):
Andrew Gardner of City Research, Apple updated this.
Speaker 3 (09:16):
Top of the line iPad pro.
Speaker 2 (09:18):
As well as this vision pro headset and the fourteen
inch MacBook Pro, rounding out a series of product refreshes,
all ahead of the crucial holiday shopping season that the
new products all use Apple's latest in house chip five.
US Consumer Tech editor Mark German joins us for more.
How impactful is it that they're going yet more and
more on their own supply chain, their own hardware.
Speaker 7 (09:39):
Well using in house chips, of course, is you know,
paramount to what Apple has been doing under Tim Cook
for the last you know, a decade and a half
or so. But in terms of these new products today,
this is probably the most minor set of Apple product
refreshes that I could remember in recent history. What they've
done here is essentially taking design from prior years, the
(10:01):
iPad pro design from last year, the MacBook Pro design
they've been using since twenty twenty one. Obviously, the Vision
Pro rolled out at the beginning of twenty twenty four,
and they put.
Speaker 5 (10:11):
New processors inside.
Speaker 7 (10:12):
So for the Vision Pro, going from the M two
to the M five, that is a size of a leap.
Speaker 5 (10:17):
The UI should be a bit smoother.
Speaker 7 (10:20):
The device is now more comfortable, but still thirty five
hundred dollars. So the fundamentals of the product have not
changed to any major extent the MacBook Pro. What they've
done here is they've split the line in terms of
rollout timing between the entry level and the high end.
So the high end machines with higher end versions of
the M five chip that won't come out until early
(10:41):
next year, and then of course the iPad pro that
got a gigantic upgrade with the M four version last year.
So this is about just bringing up to the latest
processor in terms of upgrades. Very unlikely that anyone should
or will upgrade if they have the last generation versions
of those products, but ahead of the holiday season and
they keep everything humming.
Speaker 2 (11:01):
So if we want something really new, we have to
think about the new home devices eventually coming on tap.
There's a great story on the terminal about where these
are coming from. It seems as though they're leaning less
on China all at the same time as Tim Cooks
trying to say he's going to invest more in the country.
Speaker 5 (11:16):
Yeah, both can be true.
Speaker 7 (11:17):
They're going to up their investment in China, but at
the same time, for some newer products they're going to differentiate,
they're going to diversify. They're working with BYD obviously known
as a electric car maker predominantly in Asia. They also
do mass manufacturing. They've been doing some final assembly for
Apple for some iPads over the last year or so.
(11:41):
They're going to do these new devices. Why is that interesting?
Typically when Apple rolls out an entirely new product category,
they start with China. This time around, they're starting with Vietnam,
where they already, like I said, make some iPads. They
make the vast majority of Apple watches and air pods
for the US market, and they also make.
Speaker 2 (11:58):
Some home podsloomg's Mark German always with the latest, We
so appreciate it. Meanwhile, in China, a fatality involving Shaomi's
SU seventy and v saidan when it's renewed. Scrutiny on
flush door handle designs bystanders were unable to open the
doors for the vehicle to rescue a suspected drunk driver
during a collision, who died when the vehicle burst into flames. Now,
(12:21):
flush door handles they've recently come under scrutiny globally, Tesla
now facing an investigation after the Bloomberg reported incidents related
to the door design, and Rivian also saying they'll be
redesigning their handles in an upcoming future model. For more,
Bloomberg's Creatudel joins us and your team have been so
on top of what has become a global concern about
the design of door handles in the latest evs.
Speaker 8 (12:42):
Yeah, and the big concern here, I feel like in
these issues of crashes and battery fires is particularly the
troubles that people are having with getting into these vehicles
from the outside. Yes, there are issues with mechanical releases
that are different from inside the inside the vehicle and
(13:02):
different from the typical way you get out of the vehicle.
But what's really I think alarming for people and particularly
for first responders, is if these door handles are built
from the outside to where they just aren't operable when
the low voltage battery fails or sort of you know,
purposely goes out of commission to sort of prevent against
(13:24):
these battery fires. You're just not able to get into
the vehicle without bashing through a window or some other means.
And so to have built a vehicle where the external
door handles are inoperable without low voltage battery, that's just
a problem and sort of on its face a concern
for regulators.
Speaker 2 (13:43):
Well, why we might see a rush of buying many
hammers and cutters to go inside vehicles At the moment, Craig,
which the latest purchase I've just made, It might be
focused on the regulatory pushback, and you're seeing China in
particular looking for feedback open comment by November twenty ten,
November the twenty second. But what else are we expecting
Chinese regulators to do here?
Speaker 8 (14:03):
Yeah, I think it's interesting that you know this is
this has been spurred. This rulemaking and this soliciting of
views from the industry got underway because there was a
similar incident back in March, also involving a Gaomi vehicle.
Speaker 5 (14:18):
Uh.
Speaker 8 (14:19):
And so we've seen the regulator in China move pretty
quickly here in terms of you know, there was an
incident that got a lot of attention, there's this second incident,
and I think interestingly we may see some manufacturers not
necessarily wait for the regulator to change the rules. I
think Linda LUs a story about this latest incident out
(14:39):
today goes into this idea that you know, some manufacturers
already are changing their their door handled designs to take
into account that this is a concern. And I think
one of the things that we've seen in China's car
market is just the level of competition is so intense
that any way you can sort of sell your cars
being incrementally better from different performance aspects, including safety. You're
(15:03):
going to jump at that opportunity.
Speaker 3 (15:05):
Zeker jumping at it.
Speaker 2 (15:06):
The nine exports utility vehicle already going back to an
old school kind of handle and a return to common
sense is for one consultancy called it.
Speaker 3 (15:14):
Blooms Creatudell. Thanks so much.
Speaker 2 (15:17):
Now coming up, we're going to be talking all things quantum.
Speaker 3 (15:19):
The CEO of d Wave joins us. This is Bloomberg Tech.
Speaker 2 (15:46):
News out of Europe from d Wave, which develops quantum
computing systems. Today the company announced an agreement with the
Swiss Quantum Technology to deploy a D wave advantage to
quantum computer in Europe. It's expanding access to the technology.
Glue DA CEO Alan Ratz joins us now from Lake Como,
which of course very close to Switzerland. In Italy where
the announcement comes from. Alan, what does it mean to
(16:09):
be deploying this right.
Speaker 3 (16:10):
Here right now?
Speaker 9 (16:12):
So we are going to be deploying an advantage to
quantum computer here in the region. And it will be
available to researchers, scientists, businesses in Italy to basically explore
how to make the best use of quantum computers. This
is a part of the Q Alliance which was announced yesterday.
(16:37):
The WAVE is a founding member of the Q Alliance
and that's all about bringing quantum to Italy and support
of their Digital Transformation initiative.
Speaker 2 (16:45):
Let's talk about the FOY four hundred plus cubit advantage
shoe system. What can it do that is more sophisticated
than classical computers today.
Speaker 9 (16:56):
Alan So, our four four hundred cubit advantage to quantum
computer is arguably the largest and most powerful quantum computer
in the world. At over four thousand cubits. We have
almost ten times more cubits than anybody else and with
respect to the power of the processor, we recently published
(17:17):
in Science a paper showing that we are able to
compute properties of materials on our quantum computer in minutes
that it would take nearly a million years to compute
on the fastest supercomputers in the world. So this is
literally computing properties that can't be computed classically. This is
(17:40):
what everybody in the quantum industry has aspired to, namely,
the ability to do something important and useful on a
quantum computer that can't be done classically, and this advantage
to quantum computer has achieved that goal.
Speaker 2 (17:54):
I believe you solved a physics problem on the behavior
of magnetism, particularly in certain solids. What's interesting is a
ton of phrase arguably, Alan, Why is it only arguably
the most powerful at the moment? How is your technology
differing or or still try to measure itself out versus
others out there.
Speaker 9 (18:11):
Yeah, so when it comes to the ability to perform
a computation on a useful problem that can't be solved classically,
we have the only quantum computer in the world that
is capable of doing that today. I use the word
arguably in the context of largest when I talked about
(18:33):
four four hundred cubits, and the reason why I did
that is because DWave quantum computers today are what's called
annealing quantum computers. Everybody else in the industry is pursuing
a different approach called Gate model quantum computers, and while
they have many fewer cubits, the nature of the cubits
is a little different between annealing and gate model. So
(18:57):
we believe that at four thousand and four one hundred
and knealing cubits, we are significantly larger than anybody else
because all these other gate model systems have tens to
a few hundred cubits. But there is an academic debate
around the difference between the cubits.
Speaker 2 (19:14):
What's interesting is you are making and generating real revenue.
Speaker 3 (19:18):
It's small, but it's there.
Speaker 2 (19:20):
But the market capitalization of yours and many other quantum
computing companies has just gone so far up into the
right Allen, is the promise and hope being shown up
in reality from orders because this is Europe taking a
ten million euro step forward.
Speaker 3 (19:35):
What about other deals?
Speaker 9 (19:38):
Yeah, So we announced at the end of last year
that we had sold a quantum computer to the Ulick
Supercomputing Center in Germany. They purchased that system to connect
it to their Jupiter exoscale supercomputer to explore new AI workflows.
(19:58):
And then earlier this year we announced that we had
signed a memorandum of understanding with Yansai University and Incheon
City in South Korea for the acquisition of a quantum
computer there. And we have frankly a number of other
countries and research centers that are interested in acquiring our
(20:21):
quantum computers as well, and that's just with respect to
purchasing of the quantum computers. Our quantum computers today are
also used commercially in support of a broad array of
business applications. For example, North Wales Police is using us
to compute the best way to forward place police vehicles
(20:43):
to be able to arrive at incidents in a timely fashion.
These customers use us over the cloud, so we have
both a cloud based business and an on premise.
Speaker 3 (20:55):
Business North Wales UK or Australia.
Speaker 5 (20:59):
UK.
Speaker 2 (21:00):
Fascinating, absolutely fascinating. Thank you very much for data, Alan Barats.
It's learning about the European focus that you seem to
be having with the business in particular US based company
and the new announcement out of lake Como.
Speaker 3 (21:11):
We wish you well over their d Waceo. Welcome back
to Blue Beg Tech. Let's tack in on these markets.
Speaker 2 (21:22):
Because we are trading higher once again, new AI deals,
AI compute deals helping push up then as that one hundred,
we're at one point two percent. Amid some of the
geopolitical risks, we continue trading higher. Let's go onder the
hood and look, what's really moving from a points perspective.
Speaker 3 (21:37):
We know about the AIRSMEL numbers, we.
Speaker 2 (21:38):
Know about the optimism that chip equipment is still selling strong.
Speaker 3 (21:41):
Well, let's have a look.
Speaker 2 (21:42):
At AMD and indeed in video both of them getting
some more mighty price target raises over at HSPC today
more than eight percent. In fact, AMD is your leader
in terms of points moves on the Nasdaq one hundred.
Speaker 3 (21:54):
Again, this hope that yet.
Speaker 2 (21:55):
More AI compute needs means more desire for their chips,
and they are making an indent on the likes VideA,
but in VideA could go high to the tune of
what an eight trillion dollar company is what HSBC is
currently outlining or one hundred and eighty one as we speak,
up nine ten percent on the day. Let's dig into
that particular report a little bit more and just the
AI further more broadly with Bloomberg executive reporter Ryan Lastelica
(22:17):
and Ryan they are seeing significant market cap accretion.
Speaker 3 (22:22):
To invidea on what over at HSBC.
Speaker 10 (22:25):
Well, it's not going to come as a surprise of
many people, but they are touting the growth potential of
artificial intelligence. Specifically, they see the total addressable market of
these AI chips expanding beyond the hyperscalers, which are the
major Nvidia customers right now, Microsoft, Amazon, Alphabet, Meta, and
so forth, and really sees that expanding beyond them into
other parts of the economy. So as this continues to grow,
(22:48):
they see in Vidia's earnings continue to grow and eventually
leading it to the market cap you said before, I
think it was about nearly eight trillion dollars, so certainly
a significant jump from where it.
Speaker 5 (22:59):
Is right now.
Speaker 2 (23:00):
That the most bullish when it comes to the overall
analyst recommendations ran how much you're seeing portfolio managers echoing
that sort of well further and excitement, because we've had
a lot of talk of bubbles just yesterday with discussing
them all.
Speaker 5 (23:15):
Hm.
Speaker 10 (23:16):
Yeah, So I do hear some people talking about, you know,
having a certain amount of skepticism, can this continue to
go on the way it has been going on? But
even when I ask them specifically, do you see maybe
new competition threats from A and D or Broadcom just
given some of the deals that those companies have announced
this past week, they still continue to like in Vidia.
They still see it as the market leader. It continues
to have a dominant market share in the market for
(23:38):
these GPUs, so no one is very barre. I think
there is one analyst on Wall Street right now who
has a cell equivalent rating on Invidia, but other than that,
people are pretty positive about it. I'd also note that
as it continues to grow, the multiple has been coming
in a little bit, so these are not the kind
of dot Com era multiples that you know, some of
the bubble concerns might be indicating. These are certainly a
(24:01):
little bit above their medium term average, but certainly not
at the level set would be you know, real nosebleed.
Speaker 2 (24:07):
Bloomberg's round plus Selca thank you so much for the breakdown.
Let's talk more about the AI compute demand right now,
because it's time for talking tech and Microsoft data center
builder developer en Scale, Well, they've.
Speaker 3 (24:18):
Just reached a fourth.
Speaker 2 (24:19):
Deal, this time to build a site in Texas with
power capacity of much as two hundred and forty megal watts.
Speaker 3 (24:24):
The UK startup.
Speaker 2 (24:25):
Says the site will have over one hundred thousand new
in video chips. The GB three hundred is scheduled to
open in the third quarter of next year. Plus an
investment consortium including black Rocks Global Infrastructure partner, Abu Dab's MGX,
Microsoft and Video, and many more.
Speaker 3 (24:40):
I'm gree to buy Aligned data centers for forty billion dollars.
Speaker 2 (24:43):
This is the first deal for that partnership that the
investors established a year ago to invest heavily in AI
data centers and energy, and Coreyeve is partnering with startup
poll Side to develop a massive data center complex.
Speaker 3 (24:55):
In West Texas.
Speaker 8 (24:56):
Now.
Speaker 2 (24:57):
The site will be powered using local natural gas and
is expected to generate as much as electricity for hooverd APT.
Let's talk more about all this AI investment news. Thomas Martin's,
with their senior portfolio manager at Global Investments, got north
of three billion dollars in assets under management.
Speaker 3 (25:12):
Thomas, is this a bubble?
Speaker 11 (25:15):
Well, thanks for having me on your program. And of
course that is the question that people are asking when
things like this just go you know, parabolic, to use
a word that captures the imagination. People wonder, you know,
how long can this go on, and they start comparing
it to the past. We don't believe that it's a bubble.
(25:36):
The underlying factor and force is the usefulness that can
be gotten from these AI models.
Speaker 5 (25:45):
And we're only at the very very beginning of that.
Speaker 11 (25:49):
You know, companies are having varying degrees of success at
implementing these and the compute.
Speaker 5 (25:55):
Power that's needed is prodigious.
Speaker 11 (25:57):
It's already been said, and all of these deals really
articulate various aspects of what is going on with bringing
this kind of compute to the folks and companies.
Speaker 5 (26:11):
That need it.
Speaker 2 (26:11):
But Thomas, what fundamental data you're looking at that shows
productivity and revenue.
Speaker 3 (26:17):
Will be there?
Speaker 11 (26:19):
Well, that's kind of the rub is that that data
is not really there yet in a way that you
can put your finger on it and count on it.
And I think that's why you're getting some of this questioning.
So a lot of what's going on is betting on
the future that problems are going to be solved and
(26:41):
this is going to be productive, and you see that
in the beginning parts of what's going on. Just anybody
as a consumer who is using AI to just ask
it questions about anything can see the improvement.
Speaker 5 (26:56):
But that's not what really is going to drive it.
Speaker 11 (26:58):
It's going to be very complex things driven by businesses
and agents and automation that is still very much to
come and which will require more chips than we have
and more connectivity that we have.
Speaker 5 (27:14):
So the need for that compute is gigantic.
Speaker 2 (27:17):
Mid supply chain headaches and more is and anxiety around
China whether or not can keep buying some chips the
US makes more broadly whether we'll get the rare earth
metals that are needed for a lot of the supply chain. Thomas,
how do you factor in the risks of geopolitical.
Speaker 11 (27:32):
Well, they're very significant. And the issue with the rare
earths and the magnets that they go into is that
when you have one country like China that possesses a
very high level call it seventy eighty percent depending on
what we're talking about, of that, they have a lot
(27:52):
of leverage to be able to shut that down if
they want to or to extract from the markets. And
they know they have that power, and so does the
United States. So if they decide that they're going to
start using that and escalating, it will take a bigger
escalation to kind of resolve that. I think what the
(28:13):
markets are looking at is the opportunity is so great
that that will not be allowed to happen.
Speaker 2 (28:18):
Look, you have been managing money for a long time,
I mean even just twenty fourteen over at Global and
I think Thomas, you are kind of talking a narrative
where we have to believe, you have to ultimately have
hope that this all comes to bear. Is that kind
of the narrative You have to talk to your own
clients about that. Ultimately, there aren't that many tangible fundamental
(28:40):
data points you can use.
Speaker 3 (28:41):
You just have to use a product and know how much.
Speaker 2 (28:43):
What productive it's made you as an individual, even if
you're not paying for it.
Speaker 11 (28:47):
Yeah, concepts are very difficult, and they're very easy to
get excited about and to capture the imagination. But where
you really get the where the rubber meets the road, right,
is are they actually being used? And if you point
back to the Internet and to connectivity back then with
the laying of fiber et cetera and the switches that
(29:09):
got ahead of itself and it wasn't really implemented. It
was easy to imagine, but the implementation took a long
time to get to where we are now. But where
we are now is absolutely using all of those things
and is enabling this revolution and.
Speaker 5 (29:29):
This one is just happening a lot faster.
Speaker 11 (29:33):
And so yes, you have to believe, but of course
you have to look for proof, and in the third
quarter earnings and as we go forward, that's what everybody
is going to be looking for. But these deals that
you just talked about our concrete evidence that real money
is being put to work by a diversified number of
(29:54):
very sophisticated and well capitalized players.
Speaker 3 (29:57):
Real money of money.
Speaker 2 (30:00):
To Thomas Martin's senior portfolio manager at glow World Investments,
great speaking with you. Now, let's talk about billionaire Filanginis
Mackenzie Scott reducing her stake in Amazon by forty two
percent over the past year, according to regulatory filings that
was on Tuesday, the latest disclosure from the end of September,
so she now holds eighty one point one million shares,
was down fifty eight million from a year earlier. Scott
(30:23):
had ended up with about four percent of the tech
giant after her twenty nineteen divorce from Amazon founder Jeff Bezos.
Coming up, Salesforce pushes its Agentaki experience in this year's
Dreamforce conference or on that next This is Bloomberg Tech.
Speaker 12 (30:56):
We love agent Force and we're investing huge amounts Force
huge amouse. But listen to this, we've gone fast with
the agent Force, and we have gone with any other technology.
Speaker 2 (31:10):
Salesforce CEO mart Beni are speaking yesterday at their Dreamforce
twenty twenty five conference, during which Salesforce revealed it's AI
customer service tools saves its own company one hundred million
dollars a year. Who makes Brodie Ford covered this story
and joins us now, And that's basically the sales pitch.
We're using it, we're saving.
Speaker 13 (31:27):
Yeah, should do it too, right, But to me, the
fact that they're leaning so heavily on internal implementation, internal savings,
it could be a bit of a red flag, right.
I mean, traditionally companies like to lean on their customer stories.
And it kind of brings us back to the whole
question of the moment, which is which companies benefit from
the AI boom in the enterprise? Is it the old
(31:48):
school leaders like Salesforce, Is it the young ones like
Open Ai? Right now, the anxiety is towards companies like Salesforce.
Speaker 2 (31:56):
The question also the moment is any of this making
real productive gains for other companies? And we've heard time
and time again the n MIT report the ninety five
percent of pilots aren't working.
Speaker 3 (32:06):
How is Salesforce able to combat that narrative?
Speaker 13 (32:08):
Yeap, Yeah, there's this huge gap right now where a
lot of people anegotally will say AI has made my
own life much more effective. I can use chat GPT
for all these things and it's great in the enterprise.
There is just still this big.
Speaker 5 (32:20):
Gap right now.
Speaker 13 (32:22):
And so Salesforce is saying that, look, we have new
features all the time. We're making it easier for her
to use pricing wise and all these other ways, and
here's how you can adopt. But still adoption has been
a little more tepid than most would have thought maybe
two years ago.
Speaker 2 (32:38):
And looking at the share price that tepid adoption, it's
pretty painful. Stock is down twenty eight percent so far
this year. And still Dreamforce is a dream and they've
got Metallico and they got Zimboon and they're throwing all.
Speaker 3 (32:49):
The money at the situation.
Speaker 2 (32:51):
How is that reading for those in San Francisco and
more broadly.
Speaker 13 (32:54):
I mean, Salesforce is a cash flow monster. Right Let's
say that they aren't able to capitalize in this next wave.
They're still making tons of money, but the question is
are they losing the mind share are they losing the
growth potential for this new investment wave? And investors can't
decide every six months the narrative changes right now, application
leaders like them, like Adobe, even like a service Now
(33:17):
they're a bit in the penalty box right and so
so far Benioff hasn't been able to convince them otherwise.
But there is an analyst day today, and you know,
maybe we'll tomorrow be able to say, actually, they're doing great.
Speaker 2 (33:30):
Yeah, I mean we've just had SAP, You've got Oracle
talking up. But it's a particular event at the moment.
Can you steer as as to who of the new
guard they're almost worried about.
Speaker 13 (33:39):
Yeah, who of the new guard? It's the AI native
workplace tools. I mean, I would even throw a chat
GBT into this. I would throw people using anthropic models
and coding their own apps. I mean, what's so interesting
is that there aren't a lot of super clear competitors
this point. But it's more the conceptual idea that a
company like Salesforce will is the center of gravity for
(34:01):
so long and enterprises and that maybe that paradigm is changing.
It's not a tangible competitor yet, but it's this kind
of creeping anxiety.
Speaker 2 (34:10):
I mean, while Salesforce is trying to get itself integrated
within chat ept and doing that success to see who
uses it in the product in begs, Brodie Ford is
always breaking it down brilliantly. Look as Salesforce works to
sell its agent Force experience, the next guest says customers,
I'm not really ready for it yet, and quote Salesforce
knows it, Rebecca Wetteman, Why allow our CEO principal analyst
joins us. Now, what's you'll read on Dreamforce and Agent Force?
(34:32):
Is it being adopted?
Speaker 14 (34:34):
Hey, Caroline, great to be here, Thanks for having me.
So I'm here in San Francis great Dreamforce and I
will tell you that there's a lot of talk about
the agentic enterprise and what that means for customers, and
what we saw yesterday was exactly what With all due
respect to Brody, we're talking about the need to show
real customer adoption with real recognizable brands talking about real
(34:55):
business results.
Speaker 3 (34:56):
And I think what we've seen.
Speaker 14 (34:57):
With AI is we went from sort of the fear
of missing out in the beginning to what we're calling FOMU,
the fear of messing up. Now customers are really concerned
because they experimented on those big projects that you talked
about that didn't necessarily yield results.
Speaker 2 (35:11):
And so are they more willing to experiment with a
non trusted partner that's already part of their overall spend
from an internal software basis, or are they more willing
to go out on a limb and try the new
recruits that are coming intens of startups.
Speaker 14 (35:26):
All we definitely heard from Salesforce customers yesterday was that
trusted partner is really important. But I think we're probably
seeing the biggest innovator's dilemma that we've ever seen in tech.
Salesforce knows and when I was talking to Mark about
this yesterday, we talked about it.
Speaker 3 (35:42):
They have to.
Speaker 14 (35:43):
Bring all of those customers along, which means not just
innovating and driving the latest and greatest in AI technology,
but really providing those safety nets, providing that guidance, providing
those examples of customers like them who have achieved real
business success with AIS.
Speaker 3 (36:00):
Can you brag about that are making that sort of leap?
Speaker 14 (36:03):
Well, I've talked to probably twenty or thirty Agent forced
customers from small to large organizations across multiple verticals that
have really achieved success today. The poster children yesterday were
folks like Pepsi Williams and Sonoma Pandora Dell. So really
across both consumer brands and more tech brands, would you say,
(36:26):
really focused on how they're delivering success today?
Speaker 2 (36:29):
I compare and contrast what you've learned at some of
the other big bring together moments that we've had. You've
been over an SAPs, You've also been an Oracles AI world.
Speaker 3 (36:40):
Is there s reality that they're.
Speaker 2 (36:43):
Vindicating the overall market capitalization of these companies and the
AI bubble narrative that's brewing.
Speaker 14 (36:49):
You know, I think that the challenge is customers don't
want to be educated, they want to be successful, and
those vendors that are really able to show and not
tell how they're our customers are achieving AI success today
are ultimately going to be the ones that win.
Speaker 2 (37:06):
Can I can I ask a little bit about what
your view is from the what that you're doing with customers,
with people as to whether too much money is being
thrown at this for the amount of productivity games we're
getting in the heir now.
Speaker 14 (37:18):
You know, I think we've seen a lot of folks
sort of dip their toe in the pool and get
incremental results. They really need to be comfortable diving in
to get those kind of exponential benefits that we're talking about,
and most folks simply aren't there yet.
Speaker 3 (37:32):
So how are they getting that?
Speaker 14 (37:35):
Well, it's it's like I talked with Mark about yesterday.
The vendors have to bring customers along and that's not
about delivering the latest innovation, which is important. It's about
providing those baby steps to help them get there, to
help them understand what the payback is, to help them
understand what the business cases, to help them focus their
efforts not on that shiny AI object, but on the
(37:57):
one that's likely to deliver the most real value for theiranization, Rebecca.
Speaker 2 (38:01):
Is an organization doing enough wholesale change in terms of
interlacing human resources, people management with the CTO and the
technical sides of the business to actually implement this right now?
Speaker 3 (38:13):
Well, no, Caroline, the short answer is no.
Speaker 14 (38:15):
I mean, we see fewer than twenty percent of companies
have a policy on the use of AI today, and
fewer than ten percent have training and reskilling in place,
not just to train people on how to use AI effectively,
but how to train them for what their future job
is going to look like, and that's going to be
a key part of.
Speaker 2 (38:31):
This moving forward to is there a standout company that
you think has been taking its clients along and helping
them edicate at the pace you think is necessary.
Speaker 3 (38:42):
Who's doing the best job today?
Speaker 14 (38:44):
Yeah, Again, if we go back to the narrative that
you have to show them, not tell them. In terms
of being able to show actual customers receiving results with
a gentic AI today, Salesforce is way out ahead.
Speaker 3 (38:59):
Rebecca Whiteman Balois.
Speaker 2 (39:01):
We thank you very much being an optimism optimistic voice
when it comes to the agentic dream ever at Salesforce. Meanwhile,
coming up Weimo and it plans to launch its driver
US ride hailing service in London next year. We'll have
all those details. That's next. There's bloombg tech.
Speaker 15 (39:29):
M.
Speaker 2 (39:38):
Weimo is planning to launch its driveris ride hailing service
in London next year, marking its second international expansion and
it's first in Europe, whom most Natalie Lung covers the
gig economy for US and joins US. Now what's interesting
is they're not going to be partnering with Uber and Lyft.
Longer term here, they're going to have their own app offering.
Speaker 15 (39:55):
Yes, Wymore is going to work with an Uber backed
company Move. They were found in Africa and they used
to do vehicle financing and now expanding globally. They're going
to manage these fleets for Weimo and they actually were
gonna planning to raise you know, more than three hundred
billion dollars at like two billion valuations according to report
(40:15):
by colleagues last month. So there's real business here for
fleet companies like Move.
Speaker 2 (40:22):
But London seems to be welcoming with open arms. Both
we got Weimo and also Uber seems to be on
a similar flight path right in terms of having robotaxis
in London.
Speaker 15 (40:33):
Yeah, so what happened was earlier this year the UK
government moved forward their regulatory framework to pilot these autonomous
vehicle trials to next year. So both companies are eyeing
sort of that same timeline.
Speaker 2 (40:45):
What's interesting do you go back to the days when
Uber was first coming into London and the backlash from
black cabs over there at the time. Are we anticipating
lobbying or is it the government just so wants to
be all welcoming to innovation right now.
Speaker 15 (40:59):
That's really part of what's need to be done and
what needs to be seen as these trials go on.
As these trials start, you know, what does the community,
how how do they respond and how do you know regulators?
You know sort of consider all you know, all kind
of voices from different.
Speaker 3 (41:15):
Of course, it's not Waym's first rodeo.
Speaker 2 (41:17):
They've been piloting and successfully unrolling in plenty of cities already.
Speaker 3 (41:23):
What is it?
Speaker 2 (41:23):
How are they going to do it in London? How
will we see that integration into the ecosystem.
Speaker 15 (41:28):
So they're starting with a very small fleet of vehicles
around a one hundred square mile radius in London and
so in the coming months and so this will sort
of lay the groundwork for when they launch it commercially
next year.
Speaker 2 (41:41):
And I think were broadly, how are they doing elsewhere?
I mean, you said, this is the second international destin.
Speaker 15 (41:45):
Nice, and so the first international city was in Tokyo.
They're currently still testing with the local app and local
taxi company. They haven't launched commercially yet. But in the
US we've seen different launch approaches, whether it's launch exclusively
on the Uber app in Austin and Atlanta or on
their own app in San Francisco, in LA So we're
(42:06):
seeing different approaches.
Speaker 2 (42:07):
They're trying horses for courses, robotaxis for courses.
Speaker 3 (42:10):
Bloomberg's Natalie Lang, we appreciate it.
Speaker 15 (42:12):
Now.
Speaker 3 (42:12):
That does it for this edition of Bloomberg Tech.
Speaker 2 (42:14):
Remember to keep checking these markets, AMD and Video on
a high. We get an upgrade for HSBC on both
of these stocks.
Speaker 3 (42:20):
But don't forget to check out.
Speaker 2 (42:21):
Our podcast Digest all the AI data center news on
your terminal, as well as online on Apple, Spotify, and iHeart.
Speaker 3 (42:28):
This is Bloomberg
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hyde in New York
and Ed Lolow in San Francisco.
Speaker 2 (00:22):
Miss Bloomberg Tech coming up ASML says bookings for its
most sophisticated chip making machines remain resilient thanks to the
AI boom.
Speaker 3 (00:30):
That's a whirlwind of data center.
Speaker 2 (00:32):
News and Microsoft cutting a fourth deal. Then Scale among
others will break it all down, and Apple updates its
top of the line. I've had pro when other products
with its own in house chip first a SML the
maker of EUV equipment, the most sophisticated chip equipment that
then get sent to key partners around China but also
(00:53):
around Asia, and they're showing strong bookings. Let's get the
details of Bloomberg's equities reporter Henry Wren And what's so
important is it? The EUV Extreme Ultra Violet lithography machines
seem to be being still snapped up even as China
has to pull away eventually.
Speaker 4 (01:10):
Yeah, so thanks for having me and for this quarter,
which is the market focus. Is this EUV order's number
and has risen to the highest level since late twenty
twenty three, a huge plus for investors, and that's why
we've been seeing stock trading higher now. So we know
that actually mainland China investor chip makers they can't order
(01:31):
EUV tools directly. They can access a less advanced tool
called DUV. But it really is a sign that some
other chip makers, including Samsung in South Korea, including TSMC
in Taiwan, is stepping up, and to investors, it's an
early sign that this rapid increase in AI infrastructure is
(01:52):
actually translating to the orders that ASML has been seeing
so far in this quarter.
Speaker 2 (02:00):
Interesting is the dominance of Asia as the demand flow
us starting to pick up for ASML's equipment.
Speaker 3 (02:05):
But they're in the heart of the geopolitical tension right now.
Speaker 2 (02:08):
They must be exposed to concerns around rare earth metals,
let alone an ability to have to pull away from
selling into China.
Speaker 5 (02:16):
Yeah.
Speaker 4 (02:16):
Indeed, a lot of discussions on rare earth in the
morning as well, and ASML said that it has stacked
enough rare Earth's materials for at least several months because
realize that we realize that the market has a lot
of concerns regarding chip equipment makers reliance on those metals
because analysts said that although in terms of rare earths
(02:40):
the total material input for ASML, it just accounts for
a very small amount, but it's still a very critical
component for its most advanced EUV machines as you mentioned,
but also for its partners for example, because ASML works
with other partners for mirrors, for other components for uvs
as well, so it's a very important ingredient into the
(03:03):
EUV machines. But so far the company said that it
hasn't seen major impact.
Speaker 2 (03:08):
Most valuable European stock, Henry Ren, we appreciate the breakdown
on ASML. Let's stick with that very company in the
Broader AI conversation. Andrew gardners with us the City Research
how of European Technology Equity Research, and you have a
bio rating on a SML, you have a price target
of more than a thousand euros.
Speaker 3 (03:23):
What takes us there?
Speaker 6 (03:24):
Andrew, good morning, Thank you for having me. Yes, we
continue to be bullish on ASML, and I would say
you know this morning's results and the orders in particular
that you are highlighting with Henry just now are a
step in the right direction in terms of the potential
appreciation of this stock. I really think we've we've been
(03:44):
on a journey over the last year in terms of
resetting a base for twenty twenty six, and they have
confirmed this morning that you expectations are at a reasonable level.
They don't want to yet go so far as to
call out growth, but at least going to decline next year,
and I think that's removed one of the key uncertainties
(04:05):
for the stock, and that's helped to get us to
where we are today, just shy of nine hundred euros.
In terms of further appreciation from here, it's all about
the growth beyond twenty twenty six in my view, and
that really comes down to some of what you've been
alluding to with the demand coming from the artificial intelligence
players into the data center here. Clearly there's a lot
(04:29):
of momentum in terms of the news flow ASML management.
We're highlighting that just recently on the conference call. It's
not yet fully reflected in their order flow, but it's
something that we expect to come in the future quarters,
and so it's really that momentum that we'll drive the
stock higher.
Speaker 2 (04:46):
I love that you say that, Andrew, because I pulled
this part from your note, which I think was really
important for our viewers because in particularly say sml acknowledge
basically the momentum in the chip industry and market more Braorley,
but this is not yet reflected in firm orders, and
there's a growing disconnect in the industry between the mirriaud
of AICHIP deals being announced and the amount of spend
(05:06):
committed to these equipment companies.
Speaker 3 (05:08):
When will it show up?
Speaker 2 (05:09):
Are you really confident that it will show up, because
many are questioning the absolute financing of some of these orders.
Speaker 5 (05:18):
Yeah.
Speaker 6 (05:18):
I think it's a critical question for this space, as
it has been talked about already this morning on this program.
You're seeing all of these deals being announced by the
likes of Nvidia, open Ai committing to certain volumes at AMD,
in Nvidia, the memory companies, and yet ASML sure was
(05:41):
a healthy order intake of five billion euros, but nothing
too out of the ordinary for them. You know, certainly
they've had stronger quarters in terms of order intake. So
I do think given the lead times in particular, we
are going to see need to see orders pick up
in the coming quarters in order to support the future
demand that's been talked about by the artificial intelligence sector
(06:02):
in particular. For example, ASML, on the EUV tools that
you've already highlighted, their lead times are roughly twelve months,
So even if you're ordering today in the fourth quarter,
you're not going to get those tools until the fourth
quarter of next year, ramping production into twenty twenty seven.
So the lead times are quite long, and therefore the
supply chain needs to be prepared for that ramp to come.
Speaker 2 (06:26):
Andrew, you don't cover the stocks in particular, but if
you are thinking about an announcement coming from Nvidia saying
we're going to be there with thousands of chips ready
by twenty twenty six to be put into which have
a data center that open Air has just asked for, and.
Speaker 3 (06:39):
The AMD as well, do you think the backlog is.
Speaker 2 (06:42):
There that they've got them the inventory to be able
to sustain the twenty twenty six dates that we keep
getting from these companies.
Speaker 6 (06:50):
So in terms of thinking through the supply chain, you
take ASML as a critical supplier, the only one in
the world who can supply the EUV tools that necessary
for many of these chips. They are close to but
not quite fully booked for twenty twenty six deliveries. That
will be the case by the end of twenty twenty five,
(07:11):
given that twelve month lead time, and so really the
capacity that is already planned to be installed next year,
Sure there could be a little bit of upside, but
we're already getting close to the limits, and really, as
I described earlier, what you're playing for is the growth
into twenty twenty seven. SML management this afternoon here in
Europe commented on the fact that they don't have perfect
(07:34):
visibility because those orders aren't there yet, but they are trying.
They're acknowledging the growth in the industry, the demand that
is coming, and they're trying to prepare themselves and indeed
their suppliers to be able to make sure that they
are not going to be a bottleneck into future years.
Speaker 2 (07:49):
What was so notable about this quarter just gone that
they reported on for SML was the forty two percent
exposure still to China in terms of revenue. How much
smaller will that became lad eventually?
Speaker 6 (08:01):
Yeah, So they have called that out in terms of
the expectation for twenty twenty six and saying it's going
to decline significantly unquote into next year. I would say,
on a year to date basis through September, they're at
about thirty two percent of system sales into China. As
you point out, that was higher in the third quarter
at about forty two percent, So they're still generating very
(08:24):
strong business in China at the moment. They're just saying
given the extended level of spend this year, last year,
indeed the year before that, they think it should normalize
into the future. At the moment, though, with the restrictions
in the way that they are, the Chinese companies are
ordering what they can and so yeah, we'll just have
(08:45):
to see exactly how that pans out into twenty twenty six.
The lead times for the type of tools that the
Chinese customers are buying are not twelve months in the
way that they are for EUV They're much shorter, six months,
perhaps even less in some cases. So again, things could
as we look into twenty twenty six.
Speaker 2 (09:02):
Andrew, you cover ASML and the who's who of the
European hardware sector.
Speaker 3 (09:06):
We appreciate you being on the show today.
Speaker 2 (09:08):
Andrew Gardner of City Research, Apple updated this.
Speaker 3 (09:16):
Top of the line iPad pro.
Speaker 2 (09:18):
As well as this vision pro headset and the fourteen
inch MacBook Pro, rounding out a series of product refreshes,
all ahead of the crucial holiday shopping season that the
new products all use Apple's latest in house chip five.
US Consumer Tech editor Mark German joins us for more.
How impactful is it that they're going yet more and
more on their own supply chain, their own hardware.
Speaker 7 (09:39):
Well using in house chips, of course, is you know,
paramount to what Apple has been doing under Tim Cook
for the last you know, a decade and a half
or so. But in terms of these new products today,
this is probably the most minor set of Apple product
refreshes that I could remember in recent history. What they've
done here is essentially taking design from prior years, the
(10:01):
iPad pro design from last year, the MacBook Pro design
they've been using since twenty twenty one. Obviously, the Vision
Pro rolled out at the beginning of twenty twenty four,
and they put.
Speaker 5 (10:11):
New processors inside.
Speaker 7 (10:12):
So for the Vision Pro, going from the M two
to the M five, that is a size of a leap.
Speaker 5 (10:17):
The UI should be a bit smoother.
Speaker 7 (10:20):
The device is now more comfortable, but still thirty five
hundred dollars. So the fundamentals of the product have not
changed to any major extent the MacBook Pro. What they've
done here is they've split the line in terms of
rollout timing between the entry level and the high end.
So the high end machines with higher end versions of
the M five chip that won't come out until early
(10:41):
next year, and then of course the iPad pro that
got a gigantic upgrade with the M four version last year.
So this is about just bringing up to the latest
processor in terms of upgrades. Very unlikely that anyone should
or will upgrade if they have the last generation versions
of those products, but ahead of the holiday season and
they keep everything humming.
Speaker 2 (11:01):
So if we want something really new, we have to
think about the new home devices eventually coming on tap.
There's a great story on the terminal about where these
are coming from. It seems as though they're leaning less
on China all at the same time as Tim Cooks
trying to say he's going to invest more in the country.
Speaker 5 (11:16):
Yeah, both can be true.
Speaker 7 (11:17):
They're going to up their investment in China, but at
the same time, for some newer products they're going to differentiate,
they're going to diversify. They're working with BYD obviously known
as a electric car maker predominantly in Asia. They also
do mass manufacturing. They've been doing some final assembly for
Apple for some iPads over the last year or so.
(11:41):
They're going to do these new devices. Why is that interesting?
Typically when Apple rolls out an entirely new product category,
they start with China. This time around, they're starting with Vietnam,
where they already, like I said, make some iPads. They
make the vast majority of Apple watches and air pods
for the US market, and they also make.
Speaker 2 (11:58):
Some home podsloomg's Mark German always with the latest, We
so appreciate it. Meanwhile, in China, a fatality involving Shaomi's
SU seventy and v saidan when it's renewed. Scrutiny on
flush door handle designs bystanders were unable to open the
doors for the vehicle to rescue a suspected drunk driver
during a collision, who died when the vehicle burst into flames. Now,
(12:21):
flush door handles they've recently come under scrutiny globally, Tesla
now facing an investigation after the Bloomberg reported incidents related
to the door design, and Rivian also saying they'll be
redesigning their handles in an upcoming future model. For more,
Bloomberg's Creatudel joins us and your team have been so
on top of what has become a global concern about
the design of door handles in the latest evs.
Speaker 8 (12:42):
Yeah, and the big concern here, I feel like in
these issues of crashes and battery fires is particularly the
troubles that people are having with getting into these vehicles
from the outside. Yes, there are issues with mechanical releases
that are different from inside the inside the vehicle and
(13:02):
different from the typical way you get out of the vehicle.
But what's really I think alarming for people and particularly
for first responders, is if these door handles are built
from the outside to where they just aren't operable when
the low voltage battery fails or sort of you know,
purposely goes out of commission to sort of prevent against
(13:24):
these battery fires. You're just not able to get into
the vehicle without bashing through a window or some other means.
And so to have built a vehicle where the external
door handles are inoperable without low voltage battery, that's just
a problem and sort of on its face a concern
for regulators.
Speaker 2 (13:43):
Well, why we might see a rush of buying many
hammers and cutters to go inside vehicles At the moment, Craig,
which the latest purchase I've just made, It might be
focused on the regulatory pushback, and you're seeing China in
particular looking for feedback open comment by November twenty ten,
November the twenty second. But what else are we expecting
Chinese regulators to do here?
Speaker 8 (14:03):
Yeah, I think it's interesting that you know this is
this has been spurred. This rulemaking and this soliciting of
views from the industry got underway because there was a
similar incident back in March, also involving a Gaomi vehicle.
Speaker 5 (14:18):
Uh.
Speaker 8 (14:19):
And so we've seen the regulator in China move pretty
quickly here in terms of you know, there was an
incident that got a lot of attention, there's this second incident,
and I think interestingly we may see some manufacturers not
necessarily wait for the regulator to change the rules. I
think Linda LUs a story about this latest incident out
(14:39):
today goes into this idea that you know, some manufacturers
already are changing their their door handled designs to take
into account that this is a concern. And I think
one of the things that we've seen in China's car
market is just the level of competition is so intense
that any way you can sort of sell your cars
being incrementally better from different performance aspects, including safety. You're
(15:03):
going to jump at that opportunity.
Speaker 3 (15:05):
Zeker jumping at it.
Speaker 2 (15:06):
The nine exports utility vehicle already going back to an
old school kind of handle and a return to common
sense is for one consultancy called it.
Speaker 3 (15:14):
Blooms Creatudell. Thanks so much.
Speaker 2 (15:17):
Now coming up, we're going to be talking all things quantum.
Speaker 3 (15:19):
The CEO of d Wave joins us. This is Bloomberg Tech.
Speaker 2 (15:46):
News out of Europe from d Wave, which develops quantum
computing systems. Today the company announced an agreement with the
Swiss Quantum Technology to deploy a D wave advantage to
quantum computer in Europe. It's expanding access to the technology.
Glue DA CEO Alan Ratz joins us now from Lake Como,
which of course very close to Switzerland. In Italy where
the announcement comes from. Alan, what does it mean to
(16:09):
be deploying this right.
Speaker 3 (16:10):
Here right now?
Speaker 9 (16:12):
So we are going to be deploying an advantage to
quantum computer here in the region. And it will be
available to researchers, scientists, businesses in Italy to basically explore
how to make the best use of quantum computers. This
is a part of the Q Alliance which was announced yesterday.
(16:37):
The WAVE is a founding member of the Q Alliance
and that's all about bringing quantum to Italy and support
of their Digital Transformation initiative.
Speaker 2 (16:45):
Let's talk about the FOY four hundred plus cubit advantage
shoe system. What can it do that is more sophisticated
than classical computers today.
Speaker 9 (16:56):
Alan So, our four four hundred cubit advantage to quantum
computer is arguably the largest and most powerful quantum computer
in the world. At over four thousand cubits. We have
almost ten times more cubits than anybody else and with
respect to the power of the processor, we recently published
(17:17):
in Science a paper showing that we are able to
compute properties of materials on our quantum computer in minutes
that it would take nearly a million years to compute
on the fastest supercomputers in the world. So this is
literally computing properties that can't be computed classically. This is
(17:40):
what everybody in the quantum industry has aspired to, namely,
the ability to do something important and useful on a
quantum computer that can't be done classically, and this advantage
to quantum computer has achieved that goal.
Speaker 2 (17:54):
I believe you solved a physics problem on the behavior
of magnetism, particularly in certain solids. What's interesting is a
ton of phrase arguably, Alan, Why is it only arguably
the most powerful at the moment? How is your technology
differing or or still try to measure itself out versus
others out there.
Speaker 9 (18:11):
Yeah, so when it comes to the ability to perform
a computation on a useful problem that can't be solved classically,
we have the only quantum computer in the world that
is capable of doing that today. I use the word
arguably in the context of largest when I talked about
(18:33):
four four hundred cubits, and the reason why I did
that is because DWave quantum computers today are what's called
annealing quantum computers. Everybody else in the industry is pursuing
a different approach called Gate model quantum computers, and while
they have many fewer cubits, the nature of the cubits
is a little different between annealing and gate model. So
(18:57):
we believe that at four thousand and four one hundred
and knealing cubits, we are significantly larger than anybody else
because all these other gate model systems have tens to
a few hundred cubits. But there is an academic debate
around the difference between the cubits.
Speaker 2 (19:14):
What's interesting is you are making and generating real revenue.
Speaker 3 (19:18):
It's small, but it's there.
Speaker 2 (19:20):
But the market capitalization of yours and many other quantum
computing companies has just gone so far up into the
right Allen, is the promise and hope being shown up
in reality from orders because this is Europe taking a
ten million euro step forward.
Speaker 3 (19:35):
What about other deals?
Speaker 9 (19:38):
Yeah, So we announced at the end of last year
that we had sold a quantum computer to the Ulick
Supercomputing Center in Germany. They purchased that system to connect
it to their Jupiter exoscale supercomputer to explore new AI workflows.
(19:58):
And then earlier this year we announced that we had
signed a memorandum of understanding with Yansai University and Incheon
City in South Korea for the acquisition of a quantum
computer there. And we have frankly a number of other
countries and research centers that are interested in acquiring our
(20:21):
quantum computers as well, and that's just with respect to
purchasing of the quantum computers. Our quantum computers today are
also used commercially in support of a broad array of
business applications. For example, North Wales Police is using us
to compute the best way to forward place police vehicles
(20:43):
to be able to arrive at incidents in a timely fashion.
These customers use us over the cloud, so we have
both a cloud based business and an on premise.
Speaker 3 (20:55):
Business North Wales UK or Australia.
Speaker 5 (20:59):
UK.
Speaker 2 (21:00):
Fascinating, absolutely fascinating. Thank you very much for data, Alan Barats.
It's learning about the European focus that you seem to
be having with the business in particular US based company
and the new announcement out of lake Como.
Speaker 3 (21:11):
We wish you well over their d Waceo. Welcome back
to Blue Beg Tech. Let's tack in on these markets.
Speaker 2 (21:22):
Because we are trading higher once again, new AI deals,
AI compute deals helping push up then as that one hundred,
we're at one point two percent. Amid some of the
geopolitical risks, we continue trading higher. Let's go onder the
hood and look, what's really moving from a points perspective.
Speaker 3 (21:37):
We know about the AIRSMEL numbers, we.
Speaker 2 (21:38):
Know about the optimism that chip equipment is still selling strong.
Speaker 3 (21:41):
Well, let's have a look.
Speaker 2 (21:42):
At AMD and indeed in video both of them getting
some more mighty price target raises over at HSPC today
more than eight percent. In fact, AMD is your leader
in terms of points moves on the Nasdaq one hundred.
Speaker 3 (21:54):
Again, this hope that yet.
Speaker 2 (21:55):
More AI compute needs means more desire for their chips,
and they are making an indent on the likes VideA,
but in VideA could go high to the tune of
what an eight trillion dollar company is what HSBC is
currently outlining or one hundred and eighty one as we speak,
up nine ten percent on the day. Let's dig into
that particular report a little bit more and just the
AI further more broadly with Bloomberg executive reporter Ryan Lastelica
(22:17):
and Ryan they are seeing significant market cap accretion.
Speaker 3 (22:22):
To invidea on what over at HSBC.
Speaker 10 (22:25):
Well, it's not going to come as a surprise of
many people, but they are touting the growth potential of
artificial intelligence. Specifically, they see the total addressable market of
these AI chips expanding beyond the hyperscalers, which are the
major Nvidia customers right now, Microsoft, Amazon, Alphabet, Meta, and
so forth, and really sees that expanding beyond them into
other parts of the economy. So as this continues to grow,
(22:48):
they see in Vidia's earnings continue to grow and eventually
leading it to the market cap you said before, I
think it was about nearly eight trillion dollars, so certainly
a significant jump from where it.
Speaker 5 (22:59):
Is right now.
Speaker 2 (23:00):
That the most bullish when it comes to the overall
analyst recommendations ran how much you're seeing portfolio managers echoing
that sort of well further and excitement, because we've had
a lot of talk of bubbles just yesterday with discussing
them all.
Speaker 5 (23:15):
Hm.
Speaker 10 (23:16):
Yeah, So I do hear some people talking about, you know,
having a certain amount of skepticism, can this continue to
go on the way it has been going on? But
even when I ask them specifically, do you see maybe
new competition threats from A and D or Broadcom just
given some of the deals that those companies have announced
this past week, they still continue to like in Vidia.
They still see it as the market leader. It continues
to have a dominant market share in the market for
(23:38):
these GPUs, so no one is very barre. I think
there is one analyst on Wall Street right now who
has a cell equivalent rating on Invidia, but other than that,
people are pretty positive about it. I'd also note that
as it continues to grow, the multiple has been coming
in a little bit, so these are not the kind
of dot Com era multiples that you know, some of
the bubble concerns might be indicating. These are certainly a
(24:01):
little bit above their medium term average, but certainly not
at the level set would be you know, real nosebleed.
Speaker 2 (24:07):
Bloomberg's round plus Selca thank you so much for the breakdown.
Let's talk more about the AI compute demand right now,
because it's time for talking tech and Microsoft data center
builder developer en Scale, Well, they've.
Speaker 3 (24:18):
Just reached a fourth.
Speaker 2 (24:19):
Deal, this time to build a site in Texas with
power capacity of much as two hundred and forty megal watts.
Speaker 3 (24:24):
The UK startup.
Speaker 2 (24:25):
Says the site will have over one hundred thousand new
in video chips. The GB three hundred is scheduled to
open in the third quarter of next year. Plus an
investment consortium including black Rocks Global Infrastructure partner, Abu Dab's MGX,
Microsoft and Video, and many more.
Speaker 3 (24:40):
I'm gree to buy Aligned data centers for forty billion dollars.
Speaker 2 (24:43):
This is the first deal for that partnership that the
investors established a year ago to invest heavily in AI
data centers and energy, and Coreyeve is partnering with startup
poll Side to develop a massive data center complex.
Speaker 3 (24:55):
In West Texas.
Speaker 8 (24:56):
Now.
Speaker 2 (24:57):
The site will be powered using local natural gas and
is expected to generate as much as electricity for hooverd APT.
Let's talk more about all this AI investment news. Thomas Martin's,
with their senior portfolio manager at Global Investments, got north
of three billion dollars in assets under management.
Speaker 3 (25:12):
Thomas, is this a bubble?
Speaker 11 (25:15):
Well, thanks for having me on your program. And of
course that is the question that people are asking when
things like this just go you know, parabolic, to use
a word that captures the imagination. People wonder, you know,
how long can this go on, and they start comparing
it to the past. We don't believe that it's a bubble.
(25:36):
The underlying factor and force is the usefulness that can
be gotten from these AI models.
Speaker 5 (25:45):
And we're only at the very very beginning of that.
Speaker 11 (25:49):
You know, companies are having varying degrees of success at
implementing these and the compute.
Speaker 5 (25:55):
Power that's needed is prodigious.
Speaker 11 (25:57):
It's already been said, and all of these deals really
articulate various aspects of what is going on with bringing
this kind of compute to the folks and companies.
Speaker 5 (26:11):
That need it.
Speaker 2 (26:11):
But Thomas, what fundamental data you're looking at that shows
productivity and revenue.
Speaker 3 (26:17):
Will be there?
Speaker 11 (26:19):
Well, that's kind of the rub is that that data
is not really there yet in a way that you
can put your finger on it and count on it.
And I think that's why you're getting some of this questioning.
So a lot of what's going on is betting on
the future that problems are going to be solved and
(26:41):
this is going to be productive, and you see that
in the beginning parts of what's going on. Just anybody
as a consumer who is using AI to just ask
it questions about anything can see the improvement.
Speaker 5 (26:56):
But that's not what really is going to drive it.
Speaker 11 (26:58):
It's going to be very complex things driven by businesses
and agents and automation that is still very much to
come and which will require more chips than we have
and more connectivity that we have.
Speaker 5 (27:14):
So the need for that compute is gigantic.
Speaker 2 (27:17):
Mid supply chain headaches and more is and anxiety around
China whether or not can keep buying some chips the
US makes more broadly whether we'll get the rare earth
metals that are needed for a lot of the supply chain. Thomas,
how do you factor in the risks of geopolitical.
Speaker 11 (27:32):
Well, they're very significant. And the issue with the rare
earths and the magnets that they go into is that
when you have one country like China that possesses a
very high level call it seventy eighty percent depending on
what we're talking about, of that, they have a lot
(27:52):
of leverage to be able to shut that down if
they want to or to extract from the markets. And
they know they have that power, and so does the
United States. So if they decide that they're going to
start using that and escalating, it will take a bigger
escalation to kind of resolve that. I think what the
(28:13):
markets are looking at is the opportunity is so great
that that will not be allowed to happen.
Speaker 2 (28:18):
Look, you have been managing money for a long time,
I mean even just twenty fourteen over at Global and
I think Thomas, you are kind of talking a narrative
where we have to believe, you have to ultimately have
hope that this all comes to bear. Is that kind
of the narrative You have to talk to your own
clients about that. Ultimately, there aren't that many tangible fundamental
(28:40):
data points you can use.
Speaker 3 (28:41):
You just have to use a product and know how much.
Speaker 2 (28:43):
What productive it's made you as an individual, even if
you're not paying for it.
Speaker 11 (28:47):
Yeah, concepts are very difficult, and they're very easy to
get excited about and to capture the imagination. But where
you really get the where the rubber meets the road, right,
is are they actually being used? And if you point
back to the Internet and to connectivity back then with
the laying of fiber et cetera and the switches that
(29:09):
got ahead of itself and it wasn't really implemented. It
was easy to imagine, but the implementation took a long
time to get to where we are now. But where
we are now is absolutely using all of those things
and is enabling this revolution and.
Speaker 5 (29:29):
This one is just happening a lot faster.
Speaker 11 (29:33):
And so yes, you have to believe, but of course
you have to look for proof, and in the third
quarter earnings and as we go forward, that's what everybody
is going to be looking for. But these deals that
you just talked about our concrete evidence that real money
is being put to work by a diversified number of
(29:54):
very sophisticated and well capitalized players.
Speaker 3 (29:57):
Real money of money.
Speaker 2 (30:00):
To Thomas Martin's senior portfolio manager at glow World Investments,
great speaking with you. Now, let's talk about billionaire Filanginis
Mackenzie Scott reducing her stake in Amazon by forty two
percent over the past year, according to regulatory filings that
was on Tuesday, the latest disclosure from the end of September,
so she now holds eighty one point one million shares,
was down fifty eight million from a year earlier. Scott
(30:23):
had ended up with about four percent of the tech
giant after her twenty nineteen divorce from Amazon founder Jeff Bezos.
Coming up, Salesforce pushes its Agentaki experience in this year's
Dreamforce conference or on that next This is Bloomberg Tech.
Speaker 12 (30:56):
We love agent Force and we're investing huge amounts Force
huge amouse. But listen to this, we've gone fast with
the agent Force, and we have gone with any other technology.
Speaker 2 (31:10):
Salesforce CEO mart Beni are speaking yesterday at their Dreamforce
twenty twenty five conference, during which Salesforce revealed it's AI
customer service tools saves its own company one hundred million
dollars a year. Who makes Brodie Ford covered this story
and joins us now, And that's basically the sales pitch.
We're using it, we're saving.
Speaker 13 (31:27):
Yeah, should do it too, right, But to me, the
fact that they're leaning so heavily on internal implementation, internal savings,
it could be a bit of a red flag, right.
I mean, traditionally companies like to lean on their customer stories.
And it kind of brings us back to the whole
question of the moment, which is which companies benefit from
the AI boom in the enterprise? Is it the old
(31:48):
school leaders like Salesforce, Is it the young ones like
Open Ai? Right now, the anxiety is towards companies like Salesforce.
Speaker 2 (31:56):
The question also the moment is any of this making
real productive gains for other companies? And we've heard time
and time again the n MIT report the ninety five
percent of pilots aren't working.
Speaker 3 (32:06):
How is Salesforce able to combat that narrative?
Speaker 13 (32:08):
Yeap, Yeah, there's this huge gap right now where a
lot of people anegotally will say AI has made my
own life much more effective. I can use chat GPT
for all these things and it's great in the enterprise.
There is just still this big.
Speaker 5 (32:20):
Gap right now.
Speaker 13 (32:22):
And so Salesforce is saying that, look, we have new
features all the time. We're making it easier for her
to use pricing wise and all these other ways, and
here's how you can adopt. But still adoption has been
a little more tepid than most would have thought maybe
two years ago.
Speaker 2 (32:38):
And looking at the share price that tepid adoption, it's
pretty painful. Stock is down twenty eight percent so far
this year. And still Dreamforce is a dream and they've
got Metallico and they got Zimboon and they're throwing all.
Speaker 3 (32:49):
The money at the situation.
Speaker 2 (32:51):
How is that reading for those in San Francisco and
more broadly.
Speaker 13 (32:54):
I mean, Salesforce is a cash flow monster. Right Let's
say that they aren't able to capitalize in this next wave.
They're still making tons of money, but the question is
are they losing the mind share are they losing the
growth potential for this new investment wave? And investors can't
decide every six months the narrative changes right now, application
leaders like them, like Adobe, even like a service Now
(33:17):
they're a bit in the penalty box right and so
so far Benioff hasn't been able to convince them otherwise.
But there is an analyst day today, and you know,
maybe we'll tomorrow be able to say, actually, they're doing great.
Speaker 2 (33:30):
Yeah, I mean we've just had SAP, You've got Oracle
talking up. But it's a particular event at the moment.
Can you steer as as to who of the new
guard they're almost worried about.
Speaker 13 (33:39):
Yeah, who of the new guard? It's the AI native
workplace tools. I mean, I would even throw a chat
GBT into this. I would throw people using anthropic models
and coding their own apps. I mean, what's so interesting
is that there aren't a lot of super clear competitors
this point. But it's more the conceptual idea that a
company like Salesforce will is the center of gravity for
(34:01):
so long and enterprises and that maybe that paradigm is changing.
It's not a tangible competitor yet, but it's this kind
of creeping anxiety.
Speaker 2 (34:10):
I mean, while Salesforce is trying to get itself integrated
within chat ept and doing that success to see who
uses it in the product in begs, Brodie Ford is
always breaking it down brilliantly. Look as Salesforce works to
sell its agent Force experience, the next guest says customers,
I'm not really ready for it yet, and quote Salesforce
knows it, Rebecca Wetteman, Why allow our CEO principal analyst
joins us. Now, what's you'll read on Dreamforce and Agent Force?
(34:32):
Is it being adopted?
Speaker 14 (34:34):
Hey, Caroline, great to be here, Thanks for having me.
So I'm here in San Francis great Dreamforce and I
will tell you that there's a lot of talk about
the agentic enterprise and what that means for customers, and
what we saw yesterday was exactly what With all due
respect to Brody, we're talking about the need to show
real customer adoption with real recognizable brands talking about real
(34:55):
business results.
Speaker 3 (34:56):
And I think what we've seen.
Speaker 14 (34:57):
With AI is we went from sort of the fear
of missing out in the beginning to what we're calling FOMU,
the fear of messing up. Now customers are really concerned
because they experimented on those big projects that you talked
about that didn't necessarily yield results.
Speaker 2 (35:11):
And so are they more willing to experiment with a
non trusted partner that's already part of their overall spend
from an internal software basis, or are they more willing
to go out on a limb and try the new
recruits that are coming intens of startups.
Speaker 14 (35:26):
All we definitely heard from Salesforce customers yesterday was that
trusted partner is really important. But I think we're probably
seeing the biggest innovator's dilemma that we've ever seen in tech.
Salesforce knows and when I was talking to Mark about
this yesterday, we talked about it.
Speaker 3 (35:42):
They have to.
Speaker 14 (35:43):
Bring all of those customers along, which means not just
innovating and driving the latest and greatest in AI technology,
but really providing those safety nets, providing that guidance, providing
those examples of customers like them who have achieved real
business success with AIS.
Speaker 3 (36:00):
Can you brag about that are making that sort of leap?
Speaker 14 (36:03):
Well, I've talked to probably twenty or thirty Agent forced
customers from small to large organizations across multiple verticals that
have really achieved success today. The poster children yesterday were
folks like Pepsi Williams and Sonoma Pandora Dell. So really
across both consumer brands and more tech brands, would you say,
(36:26):
really focused on how they're delivering success today?
Speaker 2 (36:29):
I compare and contrast what you've learned at some of
the other big bring together moments that we've had. You've
been over an SAPs, You've also been an Oracles AI world.
Speaker 3 (36:40):
Is there s reality that they're.
Speaker 2 (36:43):
Vindicating the overall market capitalization of these companies and the
AI bubble narrative that's brewing.
Speaker 14 (36:49):
You know, I think that the challenge is customers don't
want to be educated, they want to be successful, and
those vendors that are really able to show and not
tell how they're our customers are achieving AI success today
are ultimately going to be the ones that win.
Speaker 2 (37:06):
Can I can I ask a little bit about what
your view is from the what that you're doing with customers,
with people as to whether too much money is being
thrown at this for the amount of productivity games we're
getting in the heir now.
Speaker 14 (37:18):
You know, I think we've seen a lot of folks
sort of dip their toe in the pool and get
incremental results. They really need to be comfortable diving in
to get those kind of exponential benefits that we're talking about,
and most folks simply aren't there yet.
Speaker 3 (37:32):
So how are they getting that?
Speaker 14 (37:35):
Well, it's it's like I talked with Mark about yesterday.
The vendors have to bring customers along and that's not
about delivering the latest innovation, which is important. It's about
providing those baby steps to help them get there, to
help them understand what the payback is, to help them
understand what the business cases, to help them focus their
efforts not on that shiny AI object, but on the
(37:57):
one that's likely to deliver the most real value for theiranization, Rebecca.
Speaker 2 (38:01):
Is an organization doing enough wholesale change in terms of
interlacing human resources, people management with the CTO and the
technical sides of the business to actually implement this right now?
Speaker 3 (38:13):
Well, no, Caroline, the short answer is no.
Speaker 14 (38:15):
I mean, we see fewer than twenty percent of companies
have a policy on the use of AI today, and
fewer than ten percent have training and reskilling in place,
not just to train people on how to use AI effectively,
but how to train them for what their future job
is going to look like, and that's going to be
a key part of.
Speaker 2 (38:31):
This moving forward to is there a standout company that
you think has been taking its clients along and helping
them edicate at the pace you think is necessary.
Speaker 3 (38:42):
Who's doing the best job today?
Speaker 14 (38:44):
Yeah, Again, if we go back to the narrative that
you have to show them, not tell them. In terms
of being able to show actual customers receiving results with
a gentic AI today, Salesforce is way out ahead.
Speaker 3 (38:59):
Rebecca Whiteman Balois.
Speaker 2 (39:01):
We thank you very much being an optimism optimistic voice
when it comes to the agentic dream ever at Salesforce. Meanwhile,
coming up Weimo and it plans to launch its driver
US ride hailing service in London next year. We'll have
all those details. That's next. There's bloombg tech.
Speaker 15 (39:29):
M.
Speaker 2 (39:38):
Weimo is planning to launch its driveris ride hailing service
in London next year, marking its second international expansion and
it's first in Europe, whom most Natalie Lung covers the
gig economy for US and joins US. Now what's interesting
is they're not going to be partnering with Uber and Lyft.
Longer term here, they're going to have their own app offering.
Speaker 15 (39:55):
Yes, Wymore is going to work with an Uber backed
company Move. They were found in Africa and they used
to do vehicle financing and now expanding globally. They're going
to manage these fleets for Weimo and they actually were
gonna planning to raise you know, more than three hundred
billion dollars at like two billion valuations according to report
(40:15):
by colleagues last month. So there's real business here for
fleet companies like Move.
Speaker 2 (40:22):
But London seems to be welcoming with open arms. Both
we got Weimo and also Uber seems to be on
a similar flight path right in terms of having robotaxis
in London.
Speaker 15 (40:33):
Yeah, so what happened was earlier this year the UK
government moved forward their regulatory framework to pilot these autonomous
vehicle trials to next year. So both companies are eyeing
sort of that same timeline.
Speaker 2 (40:45):
What's interesting do you go back to the days when
Uber was first coming into London and the backlash from
black cabs over there at the time. Are we anticipating
lobbying or is it the government just so wants to
be all welcoming to innovation right now.
Speaker 15 (40:59):
That's really part of what's need to be done and
what needs to be seen as these trials go on.
As these trials start, you know, what does the community,
how how do they respond and how do you know regulators?
You know sort of consider all you know, all kind
of voices from different.
Speaker 3 (41:15):
Of course, it's not Waym's first rodeo.
Speaker 2 (41:17):
They've been piloting and successfully unrolling in plenty of cities already.
Speaker 3 (41:23):
What is it?
Speaker 2 (41:23):
How are they going to do it in London? How
will we see that integration into the ecosystem.
Speaker 15 (41:28):
So they're starting with a very small fleet of vehicles
around a one hundred square mile radius in London and
so in the coming months and so this will sort
of lay the groundwork for when they launch it commercially
next year.
Speaker 2 (41:41):
And I think were broadly, how are they doing elsewhere?
I mean, you said, this is the second international destin.
Speaker 15 (41:45):
Nice, and so the first international city was in Tokyo.
They're currently still testing with the local app and local
taxi company. They haven't launched commercially yet. But in the
US we've seen different launch approaches, whether it's launch exclusively
on the Uber app in Austin and Atlanta or on
their own app in San Francisco, in LA So we're
(42:06):
seeing different approaches.
Speaker 2 (42:07):
They're trying horses for courses, robotaxis for courses.
Speaker 3 (42:10):
Bloomberg's Natalie Lang, we appreciate it.
Speaker 15 (42:12):
Now.
Speaker 3 (42:12):
That does it for this edition of Bloomberg Tech.
Speaker 2 (42:14):
Remember to keep checking these markets, AMD and Video on
a high. We get an upgrade for HSBC on both
of these stocks.
Speaker 3 (42:20):
But don't forget to check out.
Speaker 2 (42:21):
Our podcast Digest all the AI data center news on
your terminal, as well as online on Apple, Spotify, and iHeart.
Speaker 3 (42:28):
This is Bloomberg
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