July 24, 2025 • 42 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the details and response to the Trump administration’s AI Action Plan. White House Office of Science and Technology Policy Director Michael Kratsios and White House Senior AI Policy Advisor Sriram Krishnan join them. Plus, Tesla warns of “rough quarters ahead,” and Google plans to raise its capital expenditure by $10 billion to meet AI and cloud demand.
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide.
Speaker 2 (00:16):
In New York and Ed Lovelow in San Francisco.
Speaker 3 (00:22):
This is Bloomberg Tech coming up. President Trump signed executive
orders to boost AI development in the US. We'll dig
deeper with White House officials Michael Kratzios and Shari ram Krishnan.
Speaker 2 (00:33):
Plus we get back to big tech earnings, but Tesla
and Alphabet's results, Tesla sliding after Musk's warning for the
quarters to come.
Speaker 3 (00:41):
And Intel's next on the docket. We'll discuss what to
expect from the ship maker's results and it's turnaround efforts.
Later today the ED.
Speaker 2 (00:48):
First, we check in on these markets that are once
again at record highs. We're focusing in on what has
really been the uplift, feel good factor of the fact
that the trade deal starts to roll in Japan. All
eyes on Europe and we look at the naz currently
up quarter of percent if you're looking at the Nazbak
one hundred, but it had been a new record highs.
We're seeing it on other benchmarks as well, and I
know you're digging in to the key contributors to the
(01:09):
upside and the downside in terms of points.
Speaker 3 (01:12):
Yeah, let's go on the downside. Tesla is the earning
story on track for its biggest drop since the first
week of June, a period of transition, and the core
business suffering. Alphabet is AI fueled growth but at a
greater cost, raising capex later in the show, going deep
on both those names and Nvidia in this session is
pushing fresh record highs. Jensen one front and center of
(01:33):
yesterday's Winning the AI Race summit, but sprinkled within that
a warning from the President about how closely he's looking
in a video Let's get out to Bloomberg's Michael Shephard
here in Washington.
Speaker 4 (01:44):
D C.
Speaker 3 (01:45):
The executive orders of the fresh bit action by this
president to enact his AI action plan, a standing ovation
for Jensen one, and within it a warning, so to speak.
Speaker 5 (01:56):
Well that's raded.
Speaker 4 (01:57):
In this he we saw President Donald Trump embrace artificial
intelligence is a pillar of his economic and national security agendas,
and with it we saw him practically throw his arms
around Jensen Wang himself during the event, singling the Nvidia
CEO out for praise, really for the company's prowess in
(02:17):
making the AI chips that power this new and transformative technology.
But he did sprinkle a warning in there before going
on to praise Jensen. He let it slip that he
had thought about trying to break up in Video, which
would be a startling and very much a market shaking move,
and yet he said that he was talked out of
(02:38):
it by AIDS, who pointed to the company's importance and
how it had taken years to develop that pre eminence,
and if the US government had gone after Nvidia, it
would be really hard to walk that back.
Speaker 2 (02:50):
Mike Shepherd on the latest out of that AI Action
Plan event and let's get more analysis, more people in
the room. Michael Kratzios is one of them, Director of
the White House Officer Science and Technology Policy, and it
was let's just start such an enthusiastic welcome embrace of
AI written large, Michael, I got to get your take.
It was perhaps jovial in nature coming from the President
(03:12):
of the United States, But what did you make of
the fact that him, once upon a time considered even
thinking of breaking up and video.
Speaker 6 (03:20):
I think it was a tremendous day for the country
and for AI more broadly. We definitively turned the page
on what the last administration had tried to do to
really hamper this industry and chocolate with a high level
of regulation that didn't allow it to fully spread its wings.
What was tremendous about the event yesterday was not only
the President's speech, but the participation that the Vice President
(03:41):
himself and five Cabinet secretaries. This was a big moment
for the American I industry and it really showed how
committed this administration is to ensuring continued American dominance in
this critical technology.
Speaker 3 (03:52):
Mister Crisis, you helped to write this document and form
the policy alongside the advisors David Sachs and Shri Krishnan,
who will be on the program later today. What I
got from Corporate America is that they feel the action
plan is actionable. It's heavily rooted in deregulation and expediting permits.
(04:12):
Of the twenty three pages, which section do you think
gets enacted by this administration?
Speaker 7 (04:17):
First?
Speaker 6 (04:18):
Well, we are racing ahead on all of them. I
think the one piece that you didn't mention, which I
think is also very critically important, is this focus on
exporting American AI. This idea that we want the entire
world to be running on American artificial intelligence stack. That is,
our cloud, our chips, our algorithms, all of that needs
to be exported and packaged to the world so that
(04:40):
we become the ecosystem of choice globally. And that is
something that Secretary Lutnik and Secretary of State Rubio have
been tasked to work on and put together for the country.
So between that and our very ambitious agenda on the
actual infrastructure of empower it's going to power this, there's
a lot of work for us to get done in
the next few months.
Speaker 3 (05:00):
MISSUS crisis. What's the rulemaking process from here for exporting chips?
In particular, the way that your colleague, mister Lutnik put
it was that the administration is comfortable with large clusters
going to third parties foreign countries, but American company access
to that stack would be part of the evaluation process.
(05:21):
Do we get a successor to the diffusion rule? Have
you started drawing up some guidelines?
Speaker 6 (05:27):
So that's being handled by BIS and Secretary Lutnik at Commerce,
But generally speaking, what we're going to be doing and
through the executive order of the President signed the Department
of Commerce is tasked to work with American industry to
create AI packages. These are packages that we then can
work with the State Department to go out and export
around the world. And part of that, because Commerce will
(05:48):
be at the table when these packages are being created
with our great chip companies and our algorithm companies and
our model companies, we'll be able to have packages which
we believe will be able to make it through the
xport control restrictions of a commerce department and make them
actually extraordinarily viable and very interesting and very appealing to
lots of countries around the world who all are racing
and very excited to have AI and deliver AI for
(06:09):
their people.
Speaker 2 (06:10):
And boy are the US companies racing for AI. The
investment that we hear coming from Alphabet, for example, opping
by another ten billion in terms of capital expenditure. These companies,
though a huge Alphabet potentially facing a breakup. We hear
about Judge Meta in August. We also know that Meta
itself is also being analyzed. Will these companies always be
(06:31):
allowed to be huge if the AI innovation is the win?
Speaker 6 (06:36):
You know, that's not something that I particularly focus on
or look at. I think you have to talk to
the Department of Justice and others. But to be honest,
I think we are very blessed in the United States.
We have the greatest technology companies in the world that
are delivering the greatest products in the world that citizens
of the world all want to use. If you just
look at the numbers of usage for a large language
model builders, it's absolutely incredible. The entire world wants to
(06:58):
run American rails, and we need to make sure that
the regulations are out of the way to make sure
that we can get it out there, not only to Americans,
but also globally.
Speaker 2 (07:06):
And I thought what was really interesting was the comments
coming from President Trump while announcing the AIX and signing
executive orders, was one of copyright and almost trying to
push back on this need to be compensated. If you're
someone who's made the works that the ultimate models have
been trained upon, what do you make of copyright and
will that be in legislation?
Speaker 6 (07:25):
Yeah, you've burned a good point. In the President's speech,
the President discussed the importance of being able to use
materials in the training of these models, and this is
something that is going back and forth and discussed a
lot globally. And I think we're excited to kind of
see where that all plays out. Ultimately speaking, what we
want to do is be able to allow training to
happen here in the United States, and that's something that's
(07:46):
being sorted.
Speaker 2 (07:46):
Out in the courts.
Speaker 3 (07:48):
Mister Cratsios, why is the issue of visas and immigration
of talent not included in the action plan?
Speaker 6 (07:56):
Well, we talk a lot about the importance of the
people that are going to make the AI ecosystem thrive.
And one thing that was very unique and special about
this report, which actually doesn't get talked a lot about
when it comes to the I ecosystem is the importance
of actual builders in how we build out the infrastructure
for AI. When we think of the people that we
need to make AI succeed, we need HVAC people, we
(08:18):
need electricians, we need all these amazing careers that we'll
be able to actually build these massive data centers for
the American people. So this report touches on that, and
it also brings up the point that we need great
talent and great Americans to be able to work on
this technology.
Speaker 3 (08:34):
The way that mister Jensen Wong has put it time
and time again is that more than fifty percent of
the world's AI researchers are from China or currently in China.
And if you look at recent newsflow, and I know
that you do, mister Kratzios, all of these members of
talent that are moving from Apple to Meta or Google
to Meta in its Superintelligence lab our ivor first generation
(08:56):
immigrants from somewhere around the world, but including China, do
you acknowledge that the administration needs to come up for
a plan to attract talent from outside of this country
to fuel the AI industry.
Speaker 6 (09:10):
Here America is already the place where the best and
brightest people from around the world want to come live,
work and study. And we are blessed with that, and
we continue to have amazing legal pathways for the greatest
thinkers and minds and engineers to come work in the
United States. Where I spend a lot of time thinking
about is how we can make sure that we have
more native born American talent succeeding and being employed by
(09:33):
our great technology companies. The percentage of Americans that are
now pursuing high end STEM degrees has been declined precipitously
over the last twenty years. That is something that is
a curve that we need to change. We need more
Americans pursuing high end PhDs and things like artificial intelligence
and computer science and engineering, and that's something that we're
going to work very hard on.
Speaker 2 (09:51):
Michael. Also, what's included is well the focus on reskilling, retraining,
and helping states and companies do that. There's enough there
to support what is going to be a true upheaval
in the labor market.
Speaker 6 (10:05):
I think we can get it done, and I think
the Secretary of Labor and many other secretaries are very
excited about driving these programs forward. As I talked to
builders that are building out Stargate, they're saying that somewhere
between twenty five or fifty states is where they have
to bring in electricians and other folks in to actually
work on these projects. And that's something that we need
to fix. That's a curve that we need to bend
(10:25):
and get more people being able to work on these
actually high paying, very efficient, great jobs for Americans and
be able to allow them to participate in the revolution.
Speaker 3 (10:34):
Miscristus very quickly. The plan includes a provision to contract
only with developers using non bias models. The President brought
the issue up also talked about woke in the context
of models. Explain why that was included. Please, we have
thirty seconds.
Speaker 6 (10:49):
The President has been very clear from day one about
trying to remove Marxist DII ideology from the federal government,
and a big part of that is making sure that
the models and the technology that we actually perture and
spend taxpayer dollars on does not support these types of ideologies.
And that's why you're going to see changes in the
way that we procure AI models to make sure that
we eliminate this.
Speaker 3 (11:12):
Michael Kratzius, Director of the White House Office of Science
and Technology Policy, Grateful to have you back on the
show after a busy twenty four hours here in d C.
Thank you know coming up. Elon Musk warns of rough
quarters ahead, following one of Tesla's worst stretches since I
first started producing EB So we're going to go to
that next. This is Bloomberg Tech.
Speaker 8 (11:33):
We probably could have a few rough quarters and I'm
not saying it well, but we could Q four, Q one,
maybe Q two. But once you get to autonomy at
scale in the second hand of half of next year something.
By the end of next year, I think the I'll
(11:54):
be surprised if the economics, I'm not very compelling.
Speaker 2 (12:00):
As a CEO. Elon Musk there on the earnings call
yesterday has discussed the results. The share prices reaction is stark.
William Stein is with US managing director and senior analyst
at Truest Securities. Was there anything about this autonomy promise
that is enough to make up for the ugly fundamental
picture in the here and now? William?
Speaker 9 (12:17):
Oh?
Speaker 10 (12:18):
Sure, if you take a very long term view and
look at the track record of this remarkable human being
and the team that he's been able to assemble, they've
done some just really amazing things with new technology in
automotive and certainly in AI, and it's moving more in
that direction. So one can, you know, certainly take that
(12:40):
very much optimistic view on the long term. However, the
short term clearly sounds worse.
Speaker 3 (12:48):
William. On the earnings call, you asked a question about
the more affordable model. What happened was Lars interjected, I
think it's Lars when I checked the tape and said
we're not going to talk about and then Elon interjected
and said, it's just a model. Why I've checked the
tape so many times it's just a model. Why why
(13:09):
is it that important that he answered you a question?
And where does it fit into robotaxi? Please?
Speaker 10 (13:15):
So I don't think it's so relevant to Robotaxi. But
this lower cost vehicle is something they've promised for a
while that is supposed to be a half step between
what they're doing now and what they promised at the
last analyst day, which would be a significantly cost reduced car,
(13:36):
a smaller form factor, and a different architecture entirely. What
he talked about yesterday, or what I asked him to
talk about, was give us more detail on this interim
thing that you said you were making in the first
half of this year. You reiterated that in the press
release and on the call, But we're all scratching our
heads where is it? And his saying that the form
(13:57):
factor looks like a model, why, from my perspective, that
is not surprising at all. I was trying to draw
out from him some details as to what the architecture
is going to look like and to what degree the
cost is going to come down as a result of
the new innovations he's bringing.
Speaker 2 (14:13):
Yeah, he didn't.
Speaker 4 (14:14):
Bite on that.
Speaker 2 (14:15):
We've got no clarity and ultimately the interjection of a
new cheaper model is what's meant to perhaps drive sales
in the next second half and the next future year.
If we're not getting that clarity, are we just going
to get canibalization? If it looks and feels like a.
Speaker 10 (14:30):
Model, why, I think that's a very smart point you're making.
And the way that I'm thinking about this is, remember,
there are some consumer tax credits that are going away.
There are also regulatory tax credits or regulatory credits that
revenue is going to decline from that. I see an
(14:53):
incremental reduction in the cost and therefore the price that
they can charge customers as perhaps maintaining volumes at this
level of growing them a little bit. I don't think
this is going to be even a significant evolution in
the story.
Speaker 3 (15:11):
William Stein from Turier Securities, thank you very much, recapping
One of the questions posed on the call. Google parent
Alphabet was also about with this earnings last night, the
company said demand for AI products boost sales and now
requires an extreme increase in capital spending. Schweeder Cajeria, managing
director of Global Internet at Wolf Research, joins us I
put the earnings transcript through various generative AI tools. And
(15:35):
the answer I got out Schwetter was AI fueled growth
at a higher cost. Does that summit for you?
Speaker 10 (15:42):
I think so.
Speaker 11 (15:43):
First of all, thanks for having me ed. I think so.
There's just a tremendous amount of focus on AI, and
the conclusion here from the earnings is that AI related
investments are showing are bearing fruit, not only in search,
which is their bread and butter, but also in cloud,
(16:04):
where revenue grew significantly higher than where expectations were. So
fundamentals are getting stronger for Google, They're showing it, and
they're justifying with greater gap xpend so that they can continue.
The durability is justified.
Speaker 2 (16:22):
We'll see whether Ed was putting into notebook ILM and
making it into a podcast shreutter. But I am interested
as to why this is negative for Amazon. Your note
is so interesting. Ultimately, think that this is a beat
across the board. You think this is a good news
story for METSA but not for Amazon.
Speaker 11 (16:36):
Well, I think it is a positive. I should have
been a little bit clearer in my note, just to
be you know, a little bit more upfront. In the
second quarter, I think it would be positive for Amazon.
With the cloud numbers, we're pretty strong for Google, and
there's not a ton of reason to think Amazon also
wouldn't have seen benefits of demand. The incremental negative pieces
(16:57):
that Google also commented on applied demand remaining tight and
so the capacity constraints. They are not out of the woods.
And one of the key focus areas for investors was
whether we'd see acceleration in AWS revenue growth in the
back half, and as early as the third quarter. We
may not see that just yet. It could be pushed
into Q four or beyond.
Speaker 3 (17:19):
One of your self psych colleagues had a know oubt
that basically said Google's hand has been forced by open
AI and open hours commitment to spend also in the
talent domain. How honest do you feel Alphabet or Google
were about the pressures they're facing to spend their way
into a situation or out of a situation.
Speaker 11 (17:38):
Well, I think that there's a growing amount of pressure
and that is pretty well documented across these you know,
across what Mark Zuckerberg is saying and what is actually happening.
But the benefit with Google is also that they do
also have the advantage of the infrastructure of the Deep
Deep Mind Research group of some of the best engineers
(18:00):
that are out there. So not only a high bay package,
but also who you work with, how how innovative you
work is all that also matters. I do think that
there was some truth behind what Sundar was saying that,
you know, the retention levels are kind of where they
want want to be.
Speaker 2 (18:19):
Schwider Cojuria of Wolf Research is always great to get
your notes and your expertise on the show. Thank You Now.
Another company out with earnings, Service Now. The company says
it's these strong outlook for revenue growth in the third
quarture as customers adopts AI software tools. I spoke with
Service Now CEO Bill McDermott. You're out to the company's
savings on labor with the help of its own AI.
Speaker 12 (18:40):
We're slowing down the hiring in jobs that are quite
frankly soul crushing jobs. I mean, just think about like
it support. You know, ninety seven percent of standard software
automatically generated by AI now, and the pressure on supporting
function and people has been cut in half. Customer support
(19:04):
eighty percent of the customer inquiries in cases now are
fully managed by agentic AI. And think about security and
risk management in real time. All the patchwork and the
change management is done by agents now. And the same
is true go to market. You know, think about people
that talk to customers. There's no prep work anymore. Their
AI teammate is doing that for them at service now,
(19:27):
So the speed of the company has accelerated dramatically. The
supporting cast of the sole crushing work is now being
done by agents. They work hard twenty four by seven.
You don't have to pay them, and they don't need
any lunch, and they don't have any healthcare benefits, so
they're very affordable. And that really complements all workforce. So
we're still hiring, but we're hiring less in those supporting functions.
(19:51):
And I suppose that's going to happen to all well
run companies. And I say that because we now need
to think about how you've run a core operation on service. Now,
how you change the way you run your business processes.
Speaker 7 (20:05):
It could be ordered a cash, procure to pay.
Speaker 12 (20:07):
Hire to retire, designed to product. These are all processes
that go across functions and we need to have those
twentieth century ORG charts obliterated. We now need to work
in teams. Teams need to work across processes and the
agents need to be the best friend to humans. And
if we do this right, the GDP of the world
(20:28):
will go up. Companies will outperform not just on the
op X costs, takeout and productivity, but they will be
building new horizons, new business models, and new dreams on
the service now platform. And we're excited.
Speaker 2 (20:42):
Service Now CEO Bill McDermott. Now, let's just shift to
IBM shares briefly because they are down pretty significantly day
of their lows. But actually spoke with Avin Krishna yesterday,
the CEO of IBM. He had been pretty upbeat about
his revenues, thinking it was of high quality, felt good
about the product. He also felt good about federal spending
and had been a key question mark. They think that
this is an opportunity that they want to modernize and
(21:04):
leverage technology within the federal government and there are opportunities
and they want to compete for that business. It is
time now for talking tech and first up, more fallout
from Microsoft's SharePoint floor Now. Hackers have compromised several entities
in South Africa, including the National Treasury. As according to
cybersecurity firm ICE Security, South Africa's National Treasury has said
(21:24):
it's seeking help from Microsoft after identifying malware on its network.
Plus Amazon's Prime Day plan if at fires. The company's
extended Prime Day sales were men to give more time
for customers to browse, and z Shopers compared prices. Many
went to Walmart, the sales at the retailer growing twenty
four percent, and Elon Musk's Neuralink is expected to implant
(21:44):
chips into twenty thousand people by the year twenty thirty one,
generating at least a billion dollars in annual revenue. That's all,
according to documents reviewed by Bloomberg, Neuralink has raised one
point three billion dollars for investors and is now valued
a nine billion according to Pitchbook. Welcome back to Bloomberg Tech.
(22:05):
Let's check on these markets because there are at new
record highs and as that one hundred up three tenths
of a percent. Yes, there are key moves to the downside.
Tesla being one of the men on the upside, with
the in video once again crushing it to a new
record high more than four trillion dollars in market cap.
We are up on the cross the benchmark today hope
about that European trade deal to fueling some risk on sentiment.
Move though to a company that has no risk on sentiment,
(22:28):
in fact, following the most in a year, down sixteen percent,
SD micro Franco, Italian chip maker. Now I'm looking at
the ADRs traded here in the US, but it was
damn Similarly in Europe. This is after their numbers showed
a surprise operating loss instead of a profit. The every
structuring costs, but also big exposure to the automotive sector
like Tesla one of the key clients, and they're seeing
some slowdown margins also not looking good for the third quarter.
(22:50):
We've had that from NXP and of course Texas Instruments.
To add.
Speaker 3 (22:55):
AI developers and chip makers are rallying behind President Trump's
AI action. Yesterday I caught up with AMD CEO Lisa Sue,
who said the efforts to bring semiconductor production to the
US were strategically important, but come at a higher cost.
Listen to this.
Speaker 13 (23:11):
I think the AI action plan absolutely helps this notion
of bringing up the resources that are necessary, whether it's
regulatory or power or you know, just ensuring that there's
a view that this is a priority. And if it's
a priority for the administration, it'll be a priority for
the industry. And you know, it kind of coalesces all
of the aspects that are necessary. So it's still hard work.
(23:32):
I don't want to say that you know, we can
do this, you know quickly. It's still multi years.
Speaker 3 (23:38):
But you will move some chips from Arizona this year.
Speaker 13 (23:40):
I think you said absolutely, we're going to start manufacturing
this year, and we're going to add to it as
we go forward.
Speaker 3 (23:45):
One of the things you addressed on stage was the
idea of the relative price comparison for a semiconductor made
here in the United States versus abroad. There is a
marginal degree of greater expense. I think you said it
was less than twenty percent, more than five percent, somewhere
high double digits. But if you are building the broader
high performance compute system in the United States, does it matter?
(24:07):
I mean, how do you approach the sort of economics
of it.
Speaker 13 (24:10):
I think the economics of it are we have to
consider the just resiliency in the supply chain. I think
we learned that, frankly ed from the pandemic. You know,
the idea that you think about your supply chains, not
just by the lowest cost, but also about reliability, about
resiliency and all those things. I think that's how we're
(24:31):
thinking about US manufacturing. And yes, it will be a little.
Speaker 2 (24:34):
Bit more expensive.
Speaker 7 (24:35):
You know.
Speaker 13 (24:35):
Frankly, some of the work that has been done to
encourage semiconductor investment has been helpful. But when you really
average it across everything else that you need to build
this computing infrastructure, I think it's a very good investment
for us to make to assure that we have you know,
American manufacturing and resiliency.
Speaker 3 (24:56):
The AI Action Plan will be followed by action, you know,
executive orders from the President and other pieces of specific policy.
What is left to do, to your mind, what is
it actually that needs to be enacted, either from a
supply chain point of view or your ability to sell
your technologies around the world.
Speaker 2 (25:16):
Well, what I really like.
Speaker 13 (25:17):
About the AI Action Plan is I actually believe it's
quite actionable. So there are lots of things in there
where when we look at it, it's a perfect blueprint
for public private partnership. And you know, we're going to
be active with the administration to try to help shape
some of those conversations about you know what should be exported,
what an open ecosystem looks like. How do we ensure
(25:38):
that AI for science is front of mine. You know,
we're very active with the Department of Energy on you know,
the entire national lab infrastructure which can really help accelerate
AI in the country. So yeah, we're ready to go.
Speaker 3 (25:52):
That was a m d CEO Lises who speaking to
me at the AI summit in DC yesterday. Let's talk
more about the impact of this new USAI policy framework,
the AI Action Plan. Irene Soliman, headed AI Research and
Policy for Hugging Face, was in the room yesterday now
in the room with us here in the DC studio,
And you know, I haven't got it with me now.
(26:13):
But when I printed out the twenty three page document,
I turned page one and in the indexing open source
and open weight was so high up, which was a
surprise to many people. For hugging face that that clearly
is a good result.
Speaker 9 (26:27):
Absolutely, it's not just for hugging face, it's for the
community at large. It's time that the US gets back
to its roots of open source and what that means
for the future of innovation.
Speaker 2 (26:36):
Why is open source, I mean so important to the
future of innovation and this so called race of US
versus China.
Speaker 9 (26:44):
So much of what has started this AI boom today
is really the foundation of open science, the original papers
that created the kinds of transformers that we're seeing today,
and there's something in that report for everybody. So we're
really looking forward to the next generation of manufacturing, to
the and to the many areas of science where we're
(27:08):
seeing where we're seeing more development through open source and
open science.
Speaker 2 (27:13):
It's not just language models.
Speaker 9 (27:15):
There's many communities that rely on sharing and with community work.
Speaker 3 (27:21):
What Lisa Su was talking about there was an involvement
in forming policy from her perspective. How involved has hugging
face bin with this administration? And you know we had
mister Kratzios on the show earlier. True Round Christian will
be we on just after you are these conversations you
were involved in as this document was written up.
Speaker 9 (27:41):
We were lucky to engage deeply with this administration. I
will say that we are we are a little tech
and we've also appreciated the attention that this administration has
given to little tech. With our two hundred plus team.
Speaker 3 (27:52):
One of the interviewes ide yesterday was with SBA director
Kelly Leffler, who said the same thing that you know,
her interpretations of heard domain is that this is written
with a view to how it impacts main street companies
of all sizes as they kind of get to grips
of using AI. Why is that important?
Speaker 2 (28:10):
Well, so much of.
Speaker 9 (28:11):
AI, I think it's easy to overlook those hobbyists. Part
of what our platform wants to encourage is the kind
of person who's just been toying with AI in their rooms, who.
Speaker 2 (28:20):
Really wants to skill up.
Speaker 9 (28:21):
We talked a little bit yesterday and today about training
and deployment. We want everybody to be able to ensure
that they can contribute to AI because everybody is affected
by it.
Speaker 2 (28:31):
That's what's so important. Perhaps more about the AI evaluation
ecosystem as well. I know that's something that you prioritize
a lot at Hugging Face and you think about ultimately
the societal implications that US talk about how they support
the labor market. But I'm interested in the note on
bias or potential bias or what ultimately they see as
bias within some of the large language models and how
that's adopted by federal government in the US. I mean,
(28:54):
how have you interpretated that, Yes, so the AI.
Speaker 9 (28:59):
Ecosystem is really a thriving area for research for development.
I'm sorry, I'm unable to hear some of that question.
If you could repeat that.
Speaker 2 (29:08):
Caroline, can you hear me now? Ed do you jump in?
Speaker 9 (29:14):
Oh?
Speaker 3 (29:14):
Jump in? We have some You know, it's a technology
show where sometimes the technology fails just a little. You
heard Lisasu talk about science the application of AI. She
meant in I think infrastructure, but in energy for example.
One of the panelists I believe you listened to with
Jake Lucerrarian from Gecko, heavy emphasis on how AI can
(29:35):
help the energy industry boost its output. You're also interested
in the science application. You came away reading the document
and the President's speech feeling what about that domain.
Speaker 9 (29:47):
A huge part of AI, of course, is going to
be energy. The energy was high yesterday, and as the
plan says, it's only going to get higher, we're seeing
it hugging fased. People really using actually smaller models to
enhance their workstream. Some of the most downloaded models are
energy efficient. As we scale up our infrastructure, people need
to rely on what is easy to deploy.
Speaker 3 (30:07):
There is a heavy emphasis on exporting the American technology
stack or simply exporting American AI. That's the bit of
the open source debate that I really want to understand
from you, because at the same time, this administration frames
this as competition. America wants to lead with its commercial
leadership of AI against China in particular, as much as
(30:30):
it wants to foster an open source ecosystem.
Speaker 7 (30:33):
Are both achievable.
Speaker 9 (30:35):
One of the biggest takeaways that we have from this
action plan is this US tech stack. So there's not
just this race for the frontier, this race for AGI,
there's really this race for the global ecosystem. A huge
part of open source and open weights is what people
are able to locally deploy, and this is the emphasis
on the American tech stack. We need the US to
(30:58):
develop more of those open weight and light weight models.
Speaker 3 (31:01):
Are in Finally, you were in the room, and you know,
some people were taken a back a little bit, But
about who was in the room, the mix of policy makers,
leaders in your industry, What was it that was most
discussed in between the panels? You know, what is it
that you exchange views on with your peers.
Speaker 9 (31:17):
It was a mix, it was It was a huge
variety of people in that room. Which is who needs
to be a part of this AI conversation. Some of
the conversations we were having is about the next areas
that we're excited about. We're looking forward to the next
generation of manufacturing, towards robotics, towards what we can be
doing to make sure that AI is being deployed in
every sector in a meaningful way.
Speaker 2 (31:39):
Irene Sleiman, head of AI Research and Policy at Hunting Place,
joined to have you on now coming up, President trumpnveil's'
AI road map has been talking about throughout. Sharam Christian
is going to be joining US White House Senior Policy
Advisor for AI. You Jos us to discuss next. This
is blumbed tech.
Speaker 13 (32:03):
I think the AI Action Plan is actually extremely well done.
President Trump knows that small business is big business.
Speaker 10 (32:09):
It amounts to shock therapy for American competitiveness and the
AI industry.
Speaker 14 (32:14):
I think the key component is it's very much all
about energy. The fear right now before this action plan
was that we weren't doing enough, and so what's exciting
is that the action plan is addressing this head on
with permitting as well as a call to arms.
Speaker 6 (32:28):
I think the third pillar around making sure that we
are expediting the export of our American AI stack. That
is really core to our mission at Armada.
Speaker 13 (32:37):
Well, what I really liked about the AI Action Plan
is I actually believe it's quite actionable.
Speaker 3 (32:44):
That's just what a few of the AI leaders had
to say yesterday in Washington about President Trump's AI Action
Plan here with more in the administration's AI rollout. Is
one of the people that helped formulate write that policy
in that document, Shariram Krishnan, White House Senior Policy Advisor
for AI, to get it here in person in Washington,
d C. There was a point towards the end of
(33:06):
that sequence of comments about exporting the American technology stack,
exporting chips in particular. Your colleagues in the cabinet, mister Lutnik,
for example, talked about this at length on stage. Are
we going to get a set of rules and how
will we decide the volume and specificity of the types
(33:27):
of chips that we can sell, particularly into China?
Speaker 7 (33:31):
Thank you Ed for having me here. I think you
know you're going to work on that. I think if
you look at the executive order that President Trump signed,
which is about America setting the standard, what you're going
to see is we're going to work closely with our
friends in commerce, especially in BIS and what we're going
to figure out is what those policies are going to be.
(33:52):
But the metap point here is President Trump said was
very clear we need America to set the standard for
how AI is being used globally, from chips to models,
to every part of the stack. And what we have
seen over the last six months, be it with Huawei
on the chip side, or be it with models like
deep Seak, we have competition, and yesterday's plan sets a
(34:16):
very clear note that we need to be making sure
that our standards exist worldwide.
Speaker 3 (34:21):
I read all twenty three pages as many times as
I could. I think twenty three on the version I have,
but we can agree to disagree. There's a heavy emphasis
on deregulation and permitting that we get to the onshoring
component for exporting American AI. What is it tangibly? What
action will be taken to open that up, be it
(34:41):
on the software end or the hardware end of the stack.
Speaker 7 (34:44):
Yes, So if you prison, Trump signed three executive orders
yesterday and one of them deals exactly with this. And
what we're going to do is we're going to work
with industry to come up with a gold standard for
what the American stack should be. And there's going to
be a process how we figured this out, and then
we're going to try and make sure that when we
(35:04):
work with our partners and our allied countries that they
are using our stack instead of the competitions.
Speaker 2 (35:10):
So many would look at the four point two trillion
dollar market capitalization of Nvidia and wonder doesn't need any
more help in exporting its tech stack right now? How
much more support does an AMD or an Nvidia need.
Speaker 7 (35:24):
You think, Well, the way we look at it is
we want America to win. We want American GPUs and
American models to be used. And Nvidia and AMD happened
to be great American companies along with many many others,
and so our job is to create the playing field
where company where Jensen or I saw doctor Lisa Sue
(35:47):
earlier can go sell their products worldwide.
Speaker 2 (35:51):
Let's talk about that team. Because there were some absences,
Let's say it we would think that Intel would be
a company about some imported on its earnings. There would
be integral to manufacturing here in the US, TSMC from
abroad coming in and putting money to work here in
the United States as well. What we do we interpret
by those who weren't in the room.
Speaker 7 (36:12):
I'm not sure I would read too much into that.
I think if you look at yesterday's event, it was
amazingly well attended. We had industry leaders from across the stack,
from the semi conductor space to energy, do AI models
to AI applications, and as you said, you know, we
really want American semi conductor industry to win, and you
(36:33):
saw today's event being extremely well represented.
Speaker 3 (36:35):
When it came to that, you have advised the President
and collectively as a group, looked at policy, but there
was a moment that we have to address yesterday where
the President, after making various people stand up, said that
he had looked at breaking up in video, but then
came to understand how crucial they were to the American
technology stack and that his aid so basically said to him,
(36:57):
Jensen's great. Can I ask you, did you ever discussed
with the president the idea of breaking up in video
and why that was included in his speech.
Speaker 7 (37:06):
I wasn't in that meeting with the president, but I
think what the President was referring to is that Nvidia
has just done a phenomenal job in building products and
applications and GPUs that the world is using and that
they are so ahead of the curve. So if you
listen to the second part of what the President said,
he talked about how it's going to take several years
for people to catch up with them. And I think
(37:28):
that's one of the pieces that's put America in this
poll position when it comes to the GPUs that everybody
in the world wants to get access to.
Speaker 3 (37:35):
We appreciate the clarity stream open source, very prominent, very
high up in the AI Action Plan. Why that's something
you're particularly focused on as well.
Speaker 7 (37:45):
Yes, And this is an issue nearer and dearer to
my heart. And this is something which I think the
Biden administration got totally wrong, where they tried to basically
scare people about open source. We believe that open source
is the integral part of innovation, of how academic research
is done, how you get little tech to innovate quickly
(38:06):
and be on a level playing field. And we think
America should win. And you know the first day when
I took this job, we had Deep Sea come out
and really, you know, send a signal that America wasn't
actually leading in open source at the time, and we
believe that needs to be rectified. And that's why in
the action plan we send a very strong signal that
(38:26):
open source or open weights America is going to have
a leadership position.
Speaker 2 (38:29):
Another thing near in dat to your heart is pro wrestling,
and it feels like we're in a wrestling match between
China and the US, and I'm really interested as to
how you navigate the rules of that wrestling match. For example,
China gives US rare earth metal access in return, we
give them some H twenties. But how does Vidio navigate
if China stops and chokes that will they have to
(38:49):
be limited in H twenty How do they get certainty
in this environment?
Speaker 7 (38:54):
Well, first of all, if you're talking for wrestling, let's
speak clear. We are the face. We have the baby
face who's going to alt go over for all of
you pro wrestling fans. But look, you know the way
we think about it is we want the American tech
stack to win. One of the metrics I talk about
is every token that is inferenced worldwide, we want it
(39:15):
to be on an American GPU or using an American model.
How many our quarterllion tokens there are, and when it
comes to the head twenty, I think the way we
think about it is we would much rather have Nvideo
or AMD be the GPU of choice rather using Huawei
or somebody else's And that's how we see it.
Speaker 2 (39:35):
In video is a babyface as a fan favorite. I
love it. Sharam krish Nan has been great having time
with you. Thank you, White House Senior policy advisor for AI.
Back to earnings now and looking after the closing bell today,
it's Intel's turn reporting second call to earnings and giving
its new leadership a chance to update investors on the
(39:57):
company's opposed turnaround efforts. For more Meg's in King joins us, Now,
I just want to reflect for a moment on the
numbers we're expecting. I know, we've got a chart to
show it.
Speaker 11 (40:05):
All.
Speaker 2 (40:05):
These are woeful, like one cent for earnings per share.
You were singling out the revenue number.
Speaker 5 (40:12):
Yeah, that revenue number below twelve billion, if that's what
they come in at, is going to be probably the
second or arguably the worst total that they've had in
more than a decade. You know, they're clearly at the
bottom or bouncing along the bottom at the moment, and really,
you know, it's difficult to describe how far things have
(40:34):
declined in terms of where this.
Speaker 2 (40:36):
Company used to be and where the anxiety does up is.
Actually this is reflecting some pulling supposedly, even ahead of
tariff implications, people actually rush to do orders. So what
does nip Bhutan need to signal here?
Speaker 5 (40:49):
Yeah, No, you're absolutely right, even if they have a
good quarter, the glingering concern will be well, it's not
going to continue because of what's going on in the
market right now. Yeah, I mean, it's all about the
diagnosis and the prescription. Really, what is this company going
to do going forward to change this momentum to solve
(41:12):
all of the issues that we know? It's he and
that's what investors really want to hear from him.
Speaker 2 (41:17):
How much more can he cut? Because that has been
the initial prescription. Hasn't it been just delayer? Get management
speaking more clearly to those underneath to be able to
be more efficient. But they can even pull that string
so far.
Speaker 5 (41:31):
Yeah, No, that's a very good point, Caroline, that yes, great,
cutting costs helps, and you know, we need a cultural
shift within the company to be more lean, to be
more adaptive and flexible in this difficult situation.
Speaker 2 (41:45):
We're in.
Speaker 5 (41:45):
All of that message resonated, but the fundamental problem there
is that you can't cut your way to growth, right.
You can only grow by having better products and more customers.
And we don't know how they're going to do that
yet and what people really want to hear.
Speaker 2 (42:01):
And we've got a minute left in but just thinking
of what the AI action plan means for them, they
were absent in the room yesterday. Are we anticipating any
sort of federal help for them to build a manufacturing US?
Speaker 11 (42:13):
Yeah.
Speaker 5 (42:13):
I mean what they've said is what the plan we
had isn't going to work. We can't catch in video
with our current products, so we're going to have to
come up with a different plan as to how we
can cash in on this massive opportunity. Obviously that in
video is grasping with both hands, and the answers will
think about it and we'll come back to you so
(42:33):
bad time. We want to really hear what they're.
Speaker 2 (42:35):
Going to do, inking you'll be across those earnings later
after the bell. Thank you so much. Now, that does
it for this edition of Bloomberg Tech. Do not forget
to check out our podcast. Find it on the terminal,
as well as online on Apple, Spotify, and iHeart this
is Bloomberg
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide.
Speaker 2 (00:16):
In New York and Ed Lovelow in San Francisco.
Speaker 3 (00:22):
This is Bloomberg Tech coming up. President Trump signed executive
orders to boost AI development in the US. We'll dig
deeper with White House officials Michael Kratzios and Shari ram Krishnan.
Speaker 2 (00:33):
Plus we get back to big tech earnings, but Tesla
and Alphabet's results, Tesla sliding after Musk's warning for the
quarters to come.
Speaker 3 (00:41):
And Intel's next on the docket. We'll discuss what to
expect from the ship maker's results and it's turnaround efforts.
Later today the ED.
Speaker 2 (00:48):
First, we check in on these markets that are once
again at record highs. We're focusing in on what has
really been the uplift, feel good factor of the fact
that the trade deal starts to roll in Japan. All
eyes on Europe and we look at the naz currently
up quarter of percent if you're looking at the Nazbak
one hundred, but it had been a new record highs.
We're seeing it on other benchmarks as well, and I
know you're digging in to the key contributors to the
(01:09):
upside and the downside in terms of points.
Speaker 3 (01:12):
Yeah, let's go on the downside. Tesla is the earning
story on track for its biggest drop since the first
week of June, a period of transition, and the core
business suffering. Alphabet is AI fueled growth but at a
greater cost, raising capex later in the show, going deep
on both those names and Nvidia in this session is
pushing fresh record highs. Jensen one front and center of
(01:33):
yesterday's Winning the AI Race summit, but sprinkled within that
a warning from the President about how closely he's looking
in a video Let's get out to Bloomberg's Michael Shephard
here in Washington.
Speaker 4 (01:44):
D C.
Speaker 3 (01:45):
The executive orders of the fresh bit action by this
president to enact his AI action plan, a standing ovation
for Jensen one, and within it a warning, so to speak.
Speaker 5 (01:56):
Well that's raded.
Speaker 4 (01:57):
In this he we saw President Donald Trump embrace artificial
intelligence is a pillar of his economic and national security agendas,
and with it we saw him practically throw his arms
around Jensen Wang himself during the event, singling the Nvidia
CEO out for praise, really for the company's prowess in
(02:17):
making the AI chips that power this new and transformative technology.
But he did sprinkle a warning in there before going
on to praise Jensen. He let it slip that he
had thought about trying to break up in Video, which
would be a startling and very much a market shaking move,
and yet he said that he was talked out of
(02:38):
it by AIDS, who pointed to the company's importance and
how it had taken years to develop that pre eminence,
and if the US government had gone after Nvidia, it
would be really hard to walk that back.
Speaker 2 (02:50):
Mike Shepherd on the latest out of that AI Action
Plan event and let's get more analysis, more people in
the room. Michael Kratzios is one of them, Director of
the White House Officer Science and Technology Policy, and it
was let's just start such an enthusiastic welcome embrace of
AI written large, Michael, I got to get your take.
It was perhaps jovial in nature coming from the President
(03:12):
of the United States, But what did you make of
the fact that him, once upon a time considered even
thinking of breaking up and video.
Speaker 6 (03:20):
I think it was a tremendous day for the country
and for AI more broadly. We definitively turned the page
on what the last administration had tried to do to
really hamper this industry and chocolate with a high level
of regulation that didn't allow it to fully spread its wings.
What was tremendous about the event yesterday was not only
the President's speech, but the participation that the Vice President
(03:41):
himself and five Cabinet secretaries. This was a big moment
for the American I industry and it really showed how
committed this administration is to ensuring continued American dominance in
this critical technology.
Speaker 3 (03:52):
Mister Crisis, you helped to write this document and form
the policy alongside the advisors David Sachs and Shri Krishnan,
who will be on the program later today. What I
got from Corporate America is that they feel the action
plan is actionable. It's heavily rooted in deregulation and expediting permits.
(04:12):
Of the twenty three pages, which section do you think
gets enacted by this administration?
Speaker 7 (04:17):
First?
Speaker 6 (04:18):
Well, we are racing ahead on all of them. I
think the one piece that you didn't mention, which I
think is also very critically important, is this focus on
exporting American AI. This idea that we want the entire
world to be running on American artificial intelligence stack. That is,
our cloud, our chips, our algorithms, all of that needs
to be exported and packaged to the world so that
(04:40):
we become the ecosystem of choice globally. And that is
something that Secretary Lutnik and Secretary of State Rubio have
been tasked to work on and put together for the country.
So between that and our very ambitious agenda on the
actual infrastructure of empower it's going to power this, there's
a lot of work for us to get done in
the next few months.
Speaker 3 (05:00):
MISSUS crisis. What's the rulemaking process from here for exporting chips?
In particular, the way that your colleague, mister Lutnik put
it was that the administration is comfortable with large clusters
going to third parties foreign countries, but American company access
to that stack would be part of the evaluation process.
(05:21):
Do we get a successor to the diffusion rule? Have
you started drawing up some guidelines?
Speaker 6 (05:27):
So that's being handled by BIS and Secretary Lutnik at Commerce,
But generally speaking, what we're going to be doing and
through the executive order of the President signed the Department
of Commerce is tasked to work with American industry to
create AI packages. These are packages that we then can
work with the State Department to go out and export
around the world. And part of that, because Commerce will
(05:48):
be at the table when these packages are being created
with our great chip companies and our algorithm companies and
our model companies, we'll be able to have packages which
we believe will be able to make it through the
xport control restrictions of a commerce department and make them
actually extraordinarily viable and very interesting and very appealing to
lots of countries around the world who all are racing
and very excited to have AI and deliver AI for
(06:09):
their people.
Speaker 2 (06:10):
And boy are the US companies racing for AI. The
investment that we hear coming from Alphabet, for example, opping
by another ten billion in terms of capital expenditure. These companies,
though a huge Alphabet potentially facing a breakup. We hear
about Judge Meta in August. We also know that Meta
itself is also being analyzed. Will these companies always be
(06:31):
allowed to be huge if the AI innovation is the win?
Speaker 6 (06:36):
You know, that's not something that I particularly focus on
or look at. I think you have to talk to
the Department of Justice and others. But to be honest,
I think we are very blessed in the United States.
We have the greatest technology companies in the world that
are delivering the greatest products in the world that citizens
of the world all want to use. If you just
look at the numbers of usage for a large language
model builders, it's absolutely incredible. The entire world wants to
(06:58):
run American rails, and we need to make sure that
the regulations are out of the way to make sure
that we can get it out there, not only to Americans,
but also globally.
Speaker 2 (07:06):
And I thought what was really interesting was the comments
coming from President Trump while announcing the AIX and signing
executive orders, was one of copyright and almost trying to
push back on this need to be compensated. If you're
someone who's made the works that the ultimate models have
been trained upon, what do you make of copyright and
will that be in legislation?
Speaker 6 (07:25):
Yeah, you've burned a good point. In the President's speech,
the President discussed the importance of being able to use
materials in the training of these models, and this is
something that is going back and forth and discussed a
lot globally. And I think we're excited to kind of
see where that all plays out. Ultimately speaking, what we
want to do is be able to allow training to
happen here in the United States, and that's something that's
(07:46):
being sorted.
Speaker 2 (07:46):
Out in the courts.
Speaker 3 (07:48):
Mister Cratsios, why is the issue of visas and immigration
of talent not included in the action plan?
Speaker 6 (07:56):
Well, we talk a lot about the importance of the
people that are going to make the AI ecosystem thrive.
And one thing that was very unique and special about
this report, which actually doesn't get talked a lot about
when it comes to the I ecosystem is the importance
of actual builders in how we build out the infrastructure
for AI. When we think of the people that we
need to make AI succeed, we need HVAC people, we
(08:18):
need electricians, we need all these amazing careers that we'll
be able to actually build these massive data centers for
the American people. So this report touches on that, and
it also brings up the point that we need great
talent and great Americans to be able to work on
this technology.
Speaker 3 (08:34):
The way that mister Jensen Wong has put it time
and time again is that more than fifty percent of
the world's AI researchers are from China or currently in China.
And if you look at recent newsflow, and I know
that you do, mister Kratzios, all of these members of
talent that are moving from Apple to Meta or Google
to Meta in its Superintelligence lab our ivor first generation
(08:56):
immigrants from somewhere around the world, but including China, do
you acknowledge that the administration needs to come up for
a plan to attract talent from outside of this country
to fuel the AI industry.
Speaker 6 (09:10):
Here America is already the place where the best and
brightest people from around the world want to come live,
work and study. And we are blessed with that, and
we continue to have amazing legal pathways for the greatest
thinkers and minds and engineers to come work in the
United States. Where I spend a lot of time thinking
about is how we can make sure that we have
more native born American talent succeeding and being employed by
(09:33):
our great technology companies. The percentage of Americans that are
now pursuing high end STEM degrees has been declined precipitously
over the last twenty years. That is something that is
a curve that we need to change. We need more
Americans pursuing high end PhDs and things like artificial intelligence
and computer science and engineering, and that's something that we're
going to work very hard on.
Speaker 2 (09:51):
Michael. Also, what's included is well the focus on reskilling, retraining,
and helping states and companies do that. There's enough there
to support what is going to be a true upheaval
in the labor market.
Speaker 6 (10:05):
I think we can get it done, and I think
the Secretary of Labor and many other secretaries are very
excited about driving these programs forward. As I talked to
builders that are building out Stargate, they're saying that somewhere
between twenty five or fifty states is where they have
to bring in electricians and other folks in to actually
work on these projects. And that's something that we need
to fix. That's a curve that we need to bend
(10:25):
and get more people being able to work on these
actually high paying, very efficient, great jobs for Americans and
be able to allow them to participate in the revolution.
Speaker 3 (10:34):
Miscristus very quickly. The plan includes a provision to contract
only with developers using non bias models. The President brought
the issue up also talked about woke in the context
of models. Explain why that was included. Please, we have
thirty seconds.
Speaker 6 (10:49):
The President has been very clear from day one about
trying to remove Marxist DII ideology from the federal government,
and a big part of that is making sure that
the models and the technology that we actually perture and
spend taxpayer dollars on does not support these types of ideologies.
And that's why you're going to see changes in the
way that we procure AI models to make sure that
we eliminate this.
Speaker 3 (11:12):
Michael Kratzius, Director of the White House Office of Science
and Technology Policy, Grateful to have you back on the
show after a busy twenty four hours here in d C.
Thank you know coming up. Elon Musk warns of rough
quarters ahead, following one of Tesla's worst stretches since I
first started producing EB So we're going to go to
that next. This is Bloomberg Tech.
Speaker 8 (11:33):
We probably could have a few rough quarters and I'm
not saying it well, but we could Q four, Q one,
maybe Q two. But once you get to autonomy at
scale in the second hand of half of next year something.
By the end of next year, I think the I'll
(11:54):
be surprised if the economics, I'm not very compelling.
Speaker 2 (12:00):
As a CEO. Elon Musk there on the earnings call
yesterday has discussed the results. The share prices reaction is stark.
William Stein is with US managing director and senior analyst
at Truest Securities. Was there anything about this autonomy promise
that is enough to make up for the ugly fundamental
picture in the here and now? William?
Speaker 9 (12:17):
Oh?
Speaker 10 (12:18):
Sure, if you take a very long term view and
look at the track record of this remarkable human being
and the team that he's been able to assemble, they've
done some just really amazing things with new technology in
automotive and certainly in AI, and it's moving more in
that direction. So one can, you know, certainly take that
(12:40):
very much optimistic view on the long term. However, the
short term clearly sounds worse.
Speaker 3 (12:48):
William. On the earnings call, you asked a question about
the more affordable model. What happened was Lars interjected, I
think it's Lars when I checked the tape and said
we're not going to talk about and then Elon interjected
and said, it's just a model. Why I've checked the
tape so many times it's just a model. Why why
(13:09):
is it that important that he answered you a question?
And where does it fit into robotaxi? Please?
Speaker 10 (13:15):
So I don't think it's so relevant to Robotaxi. But
this lower cost vehicle is something they've promised for a
while that is supposed to be a half step between
what they're doing now and what they promised at the
last analyst day, which would be a significantly cost reduced car,
(13:36):
a smaller form factor, and a different architecture entirely. What
he talked about yesterday, or what I asked him to
talk about, was give us more detail on this interim
thing that you said you were making in the first
half of this year. You reiterated that in the press
release and on the call, But we're all scratching our
heads where is it? And his saying that the form
(13:57):
factor looks like a model, why, from my perspective, that
is not surprising at all. I was trying to draw
out from him some details as to what the architecture
is going to look like and to what degree the
cost is going to come down as a result of
the new innovations he's bringing.
Speaker 2 (14:13):
Yeah, he didn't.
Speaker 4 (14:14):
Bite on that.
Speaker 2 (14:15):
We've got no clarity and ultimately the interjection of a
new cheaper model is what's meant to perhaps drive sales
in the next second half and the next future year.
If we're not getting that clarity, are we just going
to get canibalization? If it looks and feels like a.
Speaker 10 (14:30):
Model, why, I think that's a very smart point you're making.
And the way that I'm thinking about this is, remember,
there are some consumer tax credits that are going away.
There are also regulatory tax credits or regulatory credits that
revenue is going to decline from that. I see an
(14:53):
incremental reduction in the cost and therefore the price that
they can charge customers as perhaps maintaining volumes at this
level of growing them a little bit. I don't think
this is going to be even a significant evolution in
the story.
Speaker 3 (15:11):
William Stein from Turier Securities, thank you very much, recapping
One of the questions posed on the call. Google parent
Alphabet was also about with this earnings last night, the
company said demand for AI products boost sales and now
requires an extreme increase in capital spending. Schweeder Cajeria, managing
director of Global Internet at Wolf Research, joins us I
put the earnings transcript through various generative AI tools. And
(15:35):
the answer I got out Schwetter was AI fueled growth
at a higher cost. Does that summit for you?
Speaker 10 (15:42):
I think so.
Speaker 11 (15:43):
First of all, thanks for having me ed. I think so.
There's just a tremendous amount of focus on AI, and
the conclusion here from the earnings is that AI related
investments are showing are bearing fruit, not only in search,
which is their bread and butter, but also in cloud,
(16:04):
where revenue grew significantly higher than where expectations were. So
fundamentals are getting stronger for Google, They're showing it, and
they're justifying with greater gap xpend so that they can continue.
The durability is justified.
Speaker 2 (16:22):
We'll see whether Ed was putting into notebook ILM and
making it into a podcast shreutter. But I am interested
as to why this is negative for Amazon. Your note
is so interesting. Ultimately, think that this is a beat
across the board. You think this is a good news
story for METSA but not for Amazon.
Speaker 11 (16:36):
Well, I think it is a positive. I should have
been a little bit clearer in my note, just to
be you know, a little bit more upfront. In the
second quarter, I think it would be positive for Amazon.
With the cloud numbers, we're pretty strong for Google, and
there's not a ton of reason to think Amazon also
wouldn't have seen benefits of demand. The incremental negative pieces
(16:57):
that Google also commented on applied demand remaining tight and
so the capacity constraints. They are not out of the woods.
And one of the key focus areas for investors was
whether we'd see acceleration in AWS revenue growth in the
back half, and as early as the third quarter. We
may not see that just yet. It could be pushed
into Q four or beyond.
Speaker 3 (17:19):
One of your self psych colleagues had a know oubt
that basically said Google's hand has been forced by open
AI and open hours commitment to spend also in the
talent domain. How honest do you feel Alphabet or Google
were about the pressures they're facing to spend their way
into a situation or out of a situation.
Speaker 11 (17:38):
Well, I think that there's a growing amount of pressure
and that is pretty well documented across these you know,
across what Mark Zuckerberg is saying and what is actually happening.
But the benefit with Google is also that they do
also have the advantage of the infrastructure of the Deep
Deep Mind Research group of some of the best engineers
(18:00):
that are out there. So not only a high bay package,
but also who you work with, how how innovative you
work is all that also matters. I do think that
there was some truth behind what Sundar was saying that,
you know, the retention levels are kind of where they
want want to be.
Speaker 2 (18:19):
Schwider Cojuria of Wolf Research is always great to get
your notes and your expertise on the show. Thank You Now.
Another company out with earnings, Service Now. The company says
it's these strong outlook for revenue growth in the third
quarture as customers adopts AI software tools. I spoke with
Service Now CEO Bill McDermott. You're out to the company's
savings on labor with the help of its own AI.
Speaker 12 (18:40):
We're slowing down the hiring in jobs that are quite
frankly soul crushing jobs. I mean, just think about like
it support. You know, ninety seven percent of standard software
automatically generated by AI now, and the pressure on supporting
function and people has been cut in half. Customer support
(19:04):
eighty percent of the customer inquiries in cases now are
fully managed by agentic AI. And think about security and
risk management in real time. All the patchwork and the
change management is done by agents now. And the same
is true go to market. You know, think about people
that talk to customers. There's no prep work anymore. Their
AI teammate is doing that for them at service now,
(19:27):
So the speed of the company has accelerated dramatically. The
supporting cast of the sole crushing work is now being
done by agents. They work hard twenty four by seven.
You don't have to pay them, and they don't need
any lunch, and they don't have any healthcare benefits, so
they're very affordable. And that really complements all workforce. So
we're still hiring, but we're hiring less in those supporting functions.
(19:51):
And I suppose that's going to happen to all well
run companies. And I say that because we now need
to think about how you've run a core operation on service. Now,
how you change the way you run your business processes.
Speaker 7 (20:05):
It could be ordered a cash, procure to pay.
Speaker 12 (20:07):
Hire to retire, designed to product. These are all processes
that go across functions and we need to have those
twentieth century ORG charts obliterated. We now need to work
in teams. Teams need to work across processes and the
agents need to be the best friend to humans. And
if we do this right, the GDP of the world
(20:28):
will go up. Companies will outperform not just on the
op X costs, takeout and productivity, but they will be
building new horizons, new business models, and new dreams on
the service now platform. And we're excited.
Speaker 2 (20:42):
Service Now CEO Bill McDermott. Now, let's just shift to
IBM shares briefly because they are down pretty significantly day
of their lows. But actually spoke with Avin Krishna yesterday,
the CEO of IBM. He had been pretty upbeat about
his revenues, thinking it was of high quality, felt good
about the product. He also felt good about federal spending
and had been a key question mark. They think that
this is an opportunity that they want to modernize and
(21:04):
leverage technology within the federal government and there are opportunities
and they want to compete for that business. It is
time now for talking tech and first up, more fallout
from Microsoft's SharePoint floor Now. Hackers have compromised several entities
in South Africa, including the National Treasury. As according to
cybersecurity firm ICE Security, South Africa's National Treasury has said
(21:24):
it's seeking help from Microsoft after identifying malware on its network.
Plus Amazon's Prime Day plan if at fires. The company's
extended Prime Day sales were men to give more time
for customers to browse, and z Shopers compared prices. Many
went to Walmart, the sales at the retailer growing twenty
four percent, and Elon Musk's Neuralink is expected to implant
(21:44):
chips into twenty thousand people by the year twenty thirty one,
generating at least a billion dollars in annual revenue. That's all,
according to documents reviewed by Bloomberg, Neuralink has raised one
point three billion dollars for investors and is now valued
a nine billion according to Pitchbook. Welcome back to Bloomberg Tech.
(22:05):
Let's check on these markets because there are at new
record highs and as that one hundred up three tenths
of a percent. Yes, there are key moves to the downside.
Tesla being one of the men on the upside, with
the in video once again crushing it to a new
record high more than four trillion dollars in market cap.
We are up on the cross the benchmark today hope
about that European trade deal to fueling some risk on sentiment.
Move though to a company that has no risk on sentiment,
(22:28):
in fact, following the most in a year, down sixteen percent,
SD micro Franco, Italian chip maker. Now I'm looking at
the ADRs traded here in the US, but it was
damn Similarly in Europe. This is after their numbers showed
a surprise operating loss instead of a profit. The every
structuring costs, but also big exposure to the automotive sector
like Tesla one of the key clients, and they're seeing
some slowdown margins also not looking good for the third quarter.
(22:50):
We've had that from NXP and of course Texas Instruments.
To add.
Speaker 3 (22:55):
AI developers and chip makers are rallying behind President Trump's
AI action. Yesterday I caught up with AMD CEO Lisa Sue,
who said the efforts to bring semiconductor production to the
US were strategically important, but come at a higher cost.
Listen to this.
Speaker 13 (23:11):
I think the AI action plan absolutely helps this notion
of bringing up the resources that are necessary, whether it's
regulatory or power or you know, just ensuring that there's
a view that this is a priority. And if it's
a priority for the administration, it'll be a priority for
the industry. And you know, it kind of coalesces all
of the aspects that are necessary. So it's still hard work.
(23:32):
I don't want to say that you know, we can
do this, you know quickly. It's still multi years.
Speaker 3 (23:38):
But you will move some chips from Arizona this year.
Speaker 13 (23:40):
I think you said absolutely, we're going to start manufacturing
this year, and we're going to add to it as
we go forward.
Speaker 3 (23:45):
One of the things you addressed on stage was the
idea of the relative price comparison for a semiconductor made
here in the United States versus abroad. There is a
marginal degree of greater expense. I think you said it
was less than twenty percent, more than five percent, somewhere
high double digits. But if you are building the broader
high performance compute system in the United States, does it matter?
(24:07):
I mean, how do you approach the sort of economics
of it.
Speaker 13 (24:10):
I think the economics of it are we have to
consider the just resiliency in the supply chain. I think
we learned that, frankly ed from the pandemic. You know,
the idea that you think about your supply chains, not
just by the lowest cost, but also about reliability, about
resiliency and all those things. I think that's how we're
(24:31):
thinking about US manufacturing. And yes, it will be a little.
Speaker 2 (24:34):
Bit more expensive.
Speaker 7 (24:35):
You know.
Speaker 13 (24:35):
Frankly, some of the work that has been done to
encourage semiconductor investment has been helpful. But when you really
average it across everything else that you need to build
this computing infrastructure, I think it's a very good investment
for us to make to assure that we have you know,
American manufacturing and resiliency.
Speaker 3 (24:56):
The AI Action Plan will be followed by action, you know,
executive orders from the President and other pieces of specific policy.
What is left to do, to your mind, what is
it actually that needs to be enacted, either from a
supply chain point of view or your ability to sell
your technologies around the world.
Speaker 2 (25:16):
Well, what I really like.
Speaker 13 (25:17):
About the AI Action Plan is I actually believe it's
quite actionable. So there are lots of things in there
where when we look at it, it's a perfect blueprint
for public private partnership. And you know, we're going to
be active with the administration to try to help shape
some of those conversations about you know what should be exported,
what an open ecosystem looks like. How do we ensure
(25:38):
that AI for science is front of mine. You know,
we're very active with the Department of Energy on you know,
the entire national lab infrastructure which can really help accelerate
AI in the country. So yeah, we're ready to go.
Speaker 3 (25:52):
That was a m d CEO Lises who speaking to
me at the AI summit in DC yesterday. Let's talk
more about the impact of this new USAI policy framework,
the AI Action Plan. Irene Soliman, headed AI Research and
Policy for Hugging Face, was in the room yesterday now
in the room with us here in the DC studio,
And you know, I haven't got it with me now.
(26:13):
But when I printed out the twenty three page document,
I turned page one and in the indexing open source
and open weight was so high up, which was a
surprise to many people. For hugging face that that clearly
is a good result.
Speaker 9 (26:27):
Absolutely, it's not just for hugging face, it's for the
community at large. It's time that the US gets back
to its roots of open source and what that means
for the future of innovation.
Speaker 2 (26:36):
Why is open source, I mean so important to the
future of innovation and this so called race of US
versus China.
Speaker 9 (26:44):
So much of what has started this AI boom today
is really the foundation of open science, the original papers
that created the kinds of transformers that we're seeing today,
and there's something in that report for everybody. So we're
really looking forward to the next generation of manufacturing, to
the and to the many areas of science where we're
(27:08):
seeing where we're seeing more development through open source and
open science.
Speaker 2 (27:13):
It's not just language models.
Speaker 9 (27:15):
There's many communities that rely on sharing and with community work.
Speaker 3 (27:21):
What Lisa Su was talking about there was an involvement
in forming policy from her perspective. How involved has hugging
face bin with this administration? And you know we had
mister Kratzios on the show earlier. True Round Christian will
be we on just after you are these conversations you
were involved in as this document was written up.
Speaker 9 (27:41):
We were lucky to engage deeply with this administration. I
will say that we are we are a little tech
and we've also appreciated the attention that this administration has
given to little tech. With our two hundred plus team.
Speaker 3 (27:52):
One of the interviewes ide yesterday was with SBA director
Kelly Leffler, who said the same thing that you know,
her interpretations of heard domain is that this is written
with a view to how it impacts main street companies
of all sizes as they kind of get to grips
of using AI. Why is that important?
Speaker 2 (28:10):
Well, so much of.
Speaker 9 (28:11):
AI, I think it's easy to overlook those hobbyists. Part
of what our platform wants to encourage is the kind
of person who's just been toying with AI in their rooms, who.
Speaker 2 (28:20):
Really wants to skill up.
Speaker 9 (28:21):
We talked a little bit yesterday and today about training
and deployment. We want everybody to be able to ensure
that they can contribute to AI because everybody is affected
by it.
Speaker 2 (28:31):
That's what's so important. Perhaps more about the AI evaluation
ecosystem as well. I know that's something that you prioritize
a lot at Hugging Face and you think about ultimately
the societal implications that US talk about how they support
the labor market. But I'm interested in the note on
bias or potential bias or what ultimately they see as
bias within some of the large language models and how
that's adopted by federal government in the US. I mean,
(28:54):
how have you interpretated that, Yes, so the AI.
Speaker 9 (28:59):
Ecosystem is really a thriving area for research for development.
I'm sorry, I'm unable to hear some of that question.
If you could repeat that.
Speaker 2 (29:08):
Caroline, can you hear me now? Ed do you jump in?
Speaker 9 (29:14):
Oh?
Speaker 3 (29:14):
Jump in? We have some You know, it's a technology
show where sometimes the technology fails just a little. You
heard Lisasu talk about science the application of AI. She
meant in I think infrastructure, but in energy for example.
One of the panelists I believe you listened to with
Jake Lucerrarian from Gecko, heavy emphasis on how AI can
(29:35):
help the energy industry boost its output. You're also interested
in the science application. You came away reading the document
and the President's speech feeling what about that domain.
Speaker 9 (29:47):
A huge part of AI, of course, is going to
be energy. The energy was high yesterday, and as the
plan says, it's only going to get higher, we're seeing
it hugging fased. People really using actually smaller models to
enhance their workstream. Some of the most downloaded models are
energy efficient. As we scale up our infrastructure, people need
to rely on what is easy to deploy.
Speaker 3 (30:07):
There is a heavy emphasis on exporting the American technology
stack or simply exporting American AI. That's the bit of
the open source debate that I really want to understand
from you, because at the same time, this administration frames
this as competition. America wants to lead with its commercial
leadership of AI against China in particular, as much as
(30:30):
it wants to foster an open source ecosystem.
Speaker 7 (30:33):
Are both achievable.
Speaker 9 (30:35):
One of the biggest takeaways that we have from this
action plan is this US tech stack. So there's not
just this race for the frontier, this race for AGI,
there's really this race for the global ecosystem. A huge
part of open source and open weights is what people
are able to locally deploy, and this is the emphasis
on the American tech stack. We need the US to
(30:58):
develop more of those open weight and light weight models.
Speaker 3 (31:01):
Are in Finally, you were in the room, and you know,
some people were taken a back a little bit, But
about who was in the room, the mix of policy makers,
leaders in your industry, What was it that was most
discussed in between the panels? You know, what is it
that you exchange views on with your peers.
Speaker 9 (31:17):
It was a mix, it was It was a huge
variety of people in that room. Which is who needs
to be a part of this AI conversation. Some of
the conversations we were having is about the next areas
that we're excited about. We're looking forward to the next
generation of manufacturing, towards robotics, towards what we can be
doing to make sure that AI is being deployed in
every sector in a meaningful way.
Speaker 2 (31:39):
Irene Sleiman, head of AI Research and Policy at Hunting Place,
joined to have you on now coming up, President trumpnveil's'
AI road map has been talking about throughout. Sharam Christian
is going to be joining US White House Senior Policy
Advisor for AI. You Jos us to discuss next. This
is blumbed tech.
Speaker 13 (32:03):
I think the AI Action Plan is actually extremely well done.
President Trump knows that small business is big business.
Speaker 10 (32:09):
It amounts to shock therapy for American competitiveness and the
AI industry.
Speaker 14 (32:14):
I think the key component is it's very much all
about energy. The fear right now before this action plan
was that we weren't doing enough, and so what's exciting
is that the action plan is addressing this head on
with permitting as well as a call to arms.
Speaker 6 (32:28):
I think the third pillar around making sure that we
are expediting the export of our American AI stack. That
is really core to our mission at Armada.
Speaker 13 (32:37):
Well, what I really liked about the AI Action Plan
is I actually believe it's quite actionable.
Speaker 3 (32:44):
That's just what a few of the AI leaders had
to say yesterday in Washington about President Trump's AI Action
Plan here with more in the administration's AI rollout. Is
one of the people that helped formulate write that policy
in that document, Shariram Krishnan, White House Senior Policy Advisor
for AI, to get it here in person in Washington,
d C. There was a point towards the end of
(33:06):
that sequence of comments about exporting the American technology stack,
exporting chips in particular. Your colleagues in the cabinet, mister Lutnik,
for example, talked about this at length on stage. Are
we going to get a set of rules and how
will we decide the volume and specificity of the types
(33:27):
of chips that we can sell, particularly into China?
Speaker 7 (33:31):
Thank you Ed for having me here. I think you
know you're going to work on that. I think if
you look at the executive order that President Trump signed,
which is about America setting the standard, what you're going
to see is we're going to work closely with our
friends in commerce, especially in BIS and what we're going
to figure out is what those policies are going to be.
(33:52):
But the metap point here is President Trump said was
very clear we need America to set the standard for
how AI is being used globally, from chips to models,
to every part of the stack. And what we have
seen over the last six months, be it with Huawei
on the chip side, or be it with models like
deep Seak, we have competition, and yesterday's plan sets a
(34:16):
very clear note that we need to be making sure
that our standards exist worldwide.
Speaker 3 (34:21):
I read all twenty three pages as many times as
I could. I think twenty three on the version I have,
but we can agree to disagree. There's a heavy emphasis
on deregulation and permitting that we get to the onshoring
component for exporting American AI. What is it tangibly? What
action will be taken to open that up, be it
(34:41):
on the software end or the hardware end of the stack.
Speaker 7 (34:44):
Yes, So if you prison, Trump signed three executive orders
yesterday and one of them deals exactly with this. And
what we're going to do is we're going to work
with industry to come up with a gold standard for
what the American stack should be. And there's going to
be a process how we figured this out, and then
we're going to try and make sure that when we
(35:04):
work with our partners and our allied countries that they
are using our stack instead of the competitions.
Speaker 2 (35:10):
So many would look at the four point two trillion
dollar market capitalization of Nvidia and wonder doesn't need any
more help in exporting its tech stack right now? How
much more support does an AMD or an Nvidia need.
Speaker 7 (35:24):
You think, Well, the way we look at it is
we want America to win. We want American GPUs and
American models to be used. And Nvidia and AMD happened
to be great American companies along with many many others,
and so our job is to create the playing field
where company where Jensen or I saw doctor Lisa Sue
(35:47):
earlier can go sell their products worldwide.
Speaker 2 (35:51):
Let's talk about that team. Because there were some absences,
Let's say it we would think that Intel would be
a company about some imported on its earnings. There would
be integral to manufacturing here in the US, TSMC from
abroad coming in and putting money to work here in
the United States as well. What we do we interpret
by those who weren't in the room.
Speaker 7 (36:12):
I'm not sure I would read too much into that.
I think if you look at yesterday's event, it was
amazingly well attended. We had industry leaders from across the stack,
from the semi conductor space to energy, do AI models
to AI applications, and as you said, you know, we
really want American semi conductor industry to win, and you
(36:33):
saw today's event being extremely well represented.
Speaker 3 (36:35):
When it came to that, you have advised the President
and collectively as a group, looked at policy, but there
was a moment that we have to address yesterday where
the President, after making various people stand up, said that
he had looked at breaking up in video, but then
came to understand how crucial they were to the American
technology stack and that his aid so basically said to him,
(36:57):
Jensen's great. Can I ask you, did you ever discussed
with the president the idea of breaking up in video
and why that was included in his speech.
Speaker 7 (37:06):
I wasn't in that meeting with the president, but I
think what the President was referring to is that Nvidia
has just done a phenomenal job in building products and
applications and GPUs that the world is using and that
they are so ahead of the curve. So if you
listen to the second part of what the President said,
he talked about how it's going to take several years
for people to catch up with them. And I think
(37:28):
that's one of the pieces that's put America in this
poll position when it comes to the GPUs that everybody
in the world wants to get access to.
Speaker 3 (37:35):
We appreciate the clarity stream open source, very prominent, very
high up in the AI Action Plan. Why that's something
you're particularly focused on as well.
Speaker 7 (37:45):
Yes, And this is an issue nearer and dearer to
my heart. And this is something which I think the
Biden administration got totally wrong, where they tried to basically
scare people about open source. We believe that open source
is the integral part of innovation, of how academic research
is done, how you get little tech to innovate quickly
(38:06):
and be on a level playing field. And we think
America should win. And you know the first day when
I took this job, we had Deep Sea come out
and really, you know, send a signal that America wasn't
actually leading in open source at the time, and we
believe that needs to be rectified. And that's why in
the action plan we send a very strong signal that
(38:26):
open source or open weights America is going to have
a leadership position.
Speaker 2 (38:29):
Another thing near in dat to your heart is pro wrestling,
and it feels like we're in a wrestling match between
China and the US, and I'm really interested as to
how you navigate the rules of that wrestling match. For example,
China gives US rare earth metal access in return, we
give them some H twenties. But how does Vidio navigate
if China stops and chokes that will they have to
(38:49):
be limited in H twenty How do they get certainty
in this environment?
Speaker 7 (38:54):
Well, first of all, if you're talking for wrestling, let's
speak clear. We are the face. We have the baby
face who's going to alt go over for all of
you pro wrestling fans. But look, you know the way
we think about it is we want the American tech
stack to win. One of the metrics I talk about
is every token that is inferenced worldwide, we want it
(39:15):
to be on an American GPU or using an American model.
How many our quarterllion tokens there are, and when it
comes to the head twenty, I think the way we
think about it is we would much rather have Nvideo
or AMD be the GPU of choice rather using Huawei
or somebody else's And that's how we see it.
Speaker 2 (39:35):
In video is a babyface as a fan favorite. I
love it. Sharam krish Nan has been great having time
with you. Thank you, White House Senior policy advisor for AI.
Back to earnings now and looking after the closing bell today,
it's Intel's turn reporting second call to earnings and giving
its new leadership a chance to update investors on the
(39:57):
company's opposed turnaround efforts. For more Meg's in King joins us, Now,
I just want to reflect for a moment on the
numbers we're expecting. I know, we've got a chart to
show it.
Speaker 11 (40:05):
All.
Speaker 2 (40:05):
These are woeful, like one cent for earnings per share.
You were singling out the revenue number.
Speaker 5 (40:12):
Yeah, that revenue number below twelve billion, if that's what
they come in at, is going to be probably the
second or arguably the worst total that they've had in
more than a decade. You know, they're clearly at the
bottom or bouncing along the bottom at the moment, and really,
you know, it's difficult to describe how far things have
(40:34):
declined in terms of where this.
Speaker 2 (40:36):
Company used to be and where the anxiety does up is.
Actually this is reflecting some pulling supposedly, even ahead of
tariff implications, people actually rush to do orders. So what
does nip Bhutan need to signal here?
Speaker 5 (40:49):
Yeah, No, you're absolutely right, even if they have a
good quarter, the glingering concern will be well, it's not
going to continue because of what's going on in the
market right now. Yeah, I mean, it's all about the
diagnosis and the prescription. Really, what is this company going
to do going forward to change this momentum to solve
(41:12):
all of the issues that we know? It's he and
that's what investors really want to hear from him.
Speaker 2 (41:17):
How much more can he cut? Because that has been
the initial prescription. Hasn't it been just delayer? Get management
speaking more clearly to those underneath to be able to
be more efficient. But they can even pull that string
so far.
Speaker 5 (41:31):
Yeah, No, that's a very good point, Caroline, that yes, great,
cutting costs helps, and you know, we need a cultural
shift within the company to be more lean, to be
more adaptive and flexible in this difficult situation.
Speaker 2 (41:45):
We're in.
Speaker 5 (41:45):
All of that message resonated, but the fundamental problem there
is that you can't cut your way to growth, right.
You can only grow by having better products and more customers.
And we don't know how they're going to do that
yet and what people really want to hear.
Speaker 2 (42:01):
And we've got a minute left in but just thinking
of what the AI action plan means for them, they
were absent in the room yesterday. Are we anticipating any
sort of federal help for them to build a manufacturing US?
Speaker 11 (42:13):
Yeah.
Speaker 5 (42:13):
I mean what they've said is what the plan we
had isn't going to work. We can't catch in video
with our current products, so we're going to have to
come up with a different plan as to how we
can cash in on this massive opportunity. Obviously that in
video is grasping with both hands, and the answers will
think about it and we'll come back to you so
(42:33):
bad time. We want to really hear what they're.
Speaker 2 (42:35):
Going to do, inking you'll be across those earnings later
after the bell. Thank you so much. Now, that does
it for this edition of Bloomberg Tech. Do not forget
to check out our podcast. Find it on the terminal,
as well as online on Apple, Spotify, and iHeart this
is Bloomberg
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