'Bloomberg Technology' Full Show (06/26/2023)

from the heart of where Innovation money and power Collide in Silicon Valley and Beyond this is Bloomberg technology with Caroline Hyde and Ed Ludlow [Music] I'm at Ludlow in San Francisco Caroline hides off today this is Bloomberg technology coming up on the program IBM's 4.6 billion dollar deal for aptio we'll speak to the company's Chief commercial officer about the acquisition is Big Blue goes on a buying spree seven deals this year plus Aston Martin and Lucid strike a deal shares of the company surge after the luxury names join forces on the future of electric vehicles we'll bring you the details and we get the outlook for tech stocks and crypto with stonex group Chief strategist Catherine Rooney Vera let's get a state of play when it comes to markets really quickly we're coming off the biggest weekly decline in technology shares since March that week where the banking crisis was unplaying in the session right now NASDAQ 100 is softed by three tenths of one percent there's a big focus on the macro on economics and what central banks around the world will continue to do in the face of inflation some outperformance in the US listed shares of Chinese technology company is look at the Golden Dragon up by eight tenths of one percent we're hovering around three point seven percent on the U.S 10-year yield there was a move into bonds Thursday Friday last week at the expense of Technology shares and then Bitcoin holding above 30 000 US dollars per token in terms of single movies it's all about IBM it's getting a bit of a boost we're up kind of a percentage point there or there's about on IBM shares it's all about 4.6 billion dollar deal for aptio seventh of the year it kind of fits in with IBM's hybrid Cloud strategy I want to get quick analysis and reaction on this deal from Bloomberg intelligence senior technology analyst anirag Rana anurag do you think this is a smart move by IBM I think we might be having some trouble with anorag right now but what we can do is we can pivot and we get the inside scoop on what's happening with this deal I want to bring an IBM Chief commercial officer Rob Thomas rob you kind of heard the Preamble there this is kind of a move that matches what you've done with red hat hybrid Cloud strategy but just give us the why on when you went shopping for actio and thanks for having me great to be with you cios CEOs and CFOs are all trying to deal with technology complexity and Technology spending think of appdeo as a virtual Command Center to understand your technology spend your Cloud spend and your labor spend I would say timing's everything is there a better time to have software that can do that type of analysis I don't think so every company is thinking about how do I optimize my spend on technology reduce complexity I think this is perfect time for what's happened in the market you're taking azio from Vista Equity Partners what role did Robert Smith play in this Rob was he very active in negotiations and can you give me a sense of how he financially benefits from what is an all-cash deal right yeah I think only only they can answer the the returns question we've been partners with aptio for a couple years and so this is not a new management team it's not a new company to us we've been working with them for a number of years now they were founded in 2007 and What attracted us to this space is that it's recurring revenues it's software these are Big focuses for IBM it's an attractive growth rate it has all the attributes that we look for in a deal and because we were users of the product and because we've been Partners we've got a pretty good idea of what it could do which is what made this the right time Rob what does the deal tell us about strategy going forward seventh deal there's a lot of emphasis on the kind of buying spree will you continue to be active in m a we are always active and open-minded about M A like you say it's the seventh deal of the Year mix of Consulting and software and we're always looking for how to accelerate our strategy around how hybrid cloud and AI as you may be aware in may we announced our generative AI platform Watson X so we're thinking about what are capabilities that we could bring into that another thing that was interesting about appdeo is they collect data that represents 450 billion dollars of I.T spend we think that is very unique in terms of how we can then help clients together to optimize and manage their spent we are we're kind of calling this m a Monday there are some other deals out there as well but it's been quiet you know in Tech at least 2023 so far do you see yourselves as being opportunistic therefore in that sense taking advantage of kind of the lack of activity out there I think you always have to be patient and you have to run a discipline process to your point if you look at the market over the last couple years we've gone through adjustments around interest rates so for a time it was hard to figure out deals that would make sense as we look at our financial model and what we want to do but we're open-minded that that will start to change and this is a good example where we saw the right equation for a deal but we'll continue to look really in the areas that we're focused on hybrid cloud automation data cyber security sustainability these are the areas that we're investing in aggressively of those which is the priority you know a lot of emphasis right now in the field of artificial intelligence generative AI as well do you see yourselves prioritizing that I think it's hard to pick one priority because if you don't get back to aptio this is about our thesis around automation which started nearly two years ago where we've done deals around uh robotic process automation we've done deals around AI operations this is kind of the third piece to the puzzle so I wouldn't pick one or the other but certainly there's a lot happening in generative AI Watson X is about data it's about building models it's about models from IBM it's about AI governance so I would say all of those are potential spaces where today we're aggressively building but we would also look to partner potentially the final one on on the markets is there an advantage in going out into the private markets and doing deals with private business versus looking at some of the publicly traded peers of an actio it's really not part of our criteria when we're looking at deals we're looking more at strategic fit what's the Synergy as part of IBM where the ownership resides it really is not anywhere in our criteria because those are always just things you'll have to work through regardless of where a company sits Robin in this AI boom there's there's going to be increased Demand on the data center and compute side what are you seeing there in in the context of IBM in what terms of your need going forward as well I would say what's interesting what's happening in compute it's probably perfect for the strategy we sat down three years ago which is hybrid Cloud because with hybrid Cloud you can run your applications you can manage your data and you can do that across any Cloud so now clients with a hybrid strategy which I think is almost every client now they can choose the right price and right performance depending on what they want to do if you're in just one Cloud you don't have that flexibility so you have to deal with increasing compute costs something like that we think hybrid cloud is actually perfect for this moment because you can optimize your spend and the economics around how you deploy technology and yourselves in terms of capacity planning from the data center perspective how active are you being we're always thinking about what is coming next but I would say it's beyond the data center we announced with General Motors earlier this year work that we're doing around Linux on vehicles so think of that as as Edge Computing so I don't think it's just about data centers it's about compute can happen anywhere from Edge to public Cloud to private Cloud we're looking to deploy Capital smartly across any of those I think the street really likes the zapdio deal you know a lot being complementary of how it fits in with your existing hybrid Cloud strategy but if there's one takeaway you want to leave investors with and why we care about actio what is it what is it that you are sort of most excited about to get this deal closed on every client is trying to put more technology to work for their business and there's this old rule of thumb that says maybe 80 is about keeping the lights on 20 for innovation with aptio and IBM I think we can change that to free up more dollars for Innovation and that will be just the start of creating more Investments for hybrid Cloud for AI so this is really about unleashing Innovation ultimately IBM Chief commercial officer Rob Thomas thank you so much for your time on that 4.6 billion dollar deal thank you so coming up UK luxury car maker Aston Martin teaming up with its saudi-backed EV pair Lucid next and why the deals being heralded is a game changer as both companies aim to steer away from Financial woes this is Bloomberg [Music] thank you [Music] [Applause] Aston Martin banking on a new partnership with luxury electric car maker Lucid to help lead its growth in the EV Market Lucid will receive more than 230 million dollars in stock and cash in exchange for its battery components and other parts joining us to break things down Bloomberg Sean O'Kane who covers all things EV and Auto for us ad in Austin Texas I guess the best place to start Sean is what does Aston Martin get out of this uh they get a clearer path to making an actual EV this is something Aston Martin set at for a long time uh you go back more than half a decade they had actually partnered up with a Chinese technology company Le Echo um whose founder was making electric vehicles at the time and that project sort of went nowhere they almost got to the point of releasing that car the repeat e and then shelved it basically after uh Lauren stroll came in and they've been kind of stumbling around ever since he's been trying to write the ship there and raise money to uh to move them into this new world so this gives them really just a better a better view of something and honestly access to what is thought of as some of the sort of better powertrain components uh in an EV right now right you know Lou said you and I have covered this company for a long time now and lucid's always leaned into the idea that they are a technology leader right the energy density of the pack and yet you know Lucid can't get his own house in order from a production perspective um I I guess for Lucid what do they get out of it they become a supplier of parts yeah this is something of a return to form to them I mean remember this is a company that was founded up something like 15 years ago as a battery manufacturer and this you know ostensibly with the goal of becoming supplier uh as a Tifa and they were you know it took them a long time before they actually decided to go out and try to make their own car and come up with this Lucid brand and that has obviously sort of flipped things around and sort of eaten that original goal uh to some respects but now they're back in that role and it's something that they have talked about for a while I mean when they were trying to raise money when they were still private yeah they were talking just about everybody they almost partnered up with Ford at one point so this is something that I think it's been a long time coming for them uh Sean hold that thought President Biden speaking at the White House on the topic of Russia listening so convened our key allies on uh on a zoom call to make sure we're all on the same page it's critical that we're in a coordinated in our response and coordinated in what we to anticipate we agree they agreed with me that we had to make sure we gave Putin no excuse let me emphasize we gave Putin no excuse to blame this on the west or to blame us on NATO we made clear that we were not involved we had nothing to do with it this was part of a struggle within the Russian system I also talked to the length of President zielinsky of Ukraine will be keeping in contact with them I may be picking them later today early tomorrow morning to make sure we continue to remain on the same page I told them that no matter what happened in Russia we say it again no matter what happened in Russia we the United States would continue to support Ukraine's defense and its sovereignty and its territorial integrity he and I agreed to follow up and stay in constant contact I'm also in constant contact with our allies to maintain our coordination I'll be speaking with the head of state right after this meeting today and making sure we're on the same page I didn't get a chance to speak with one head of state yesterday we're going to keep assessing the Fallout of this weekend's events and the implications for Russia and Ukraine but it's still too early to reach a definitive conclusion about where this is going the ultimate outcome of all this remains to be seen But no matter what comes next I will keep making sure that our allies and our partners are closely aligned in how we are Reading and Responding in a situation it's important we stay completely coordinated and now I'd like to turn to today's announcement Begin by asking a question did you lay all that cable [Music] she's a Wonder Woman I was watching another room President Biden there speaking at the White House addressing the weekend's events in Russia where a group of mercenary forces uh marched essentially on Moscow the president saying that the U.S is prepared for a range of scenarios when it comes to Russia he has made it clear to the Russians that the US was not involved in the weekend's events and not involved in the situation in Russia but he has spoken with president zielinski of the Ukraine and the U.S will continue to support Ukraine Biden said that the outcome of the events in Russia remain to be seen he didn't give a sort of a hypothesis of what might happen and they are continuing of course to assess what's happening we will continue to track that story here on Bloomberg television all day long now coming up Japan's government unveiled a six billion deal to buy out and take Direct Control of the world leader in chip making this is Bloomberg [Music] [Music] [Music] [Applause] [Music] time for talking Tech first up education technology firm by juice begun damage control after losing its auditor and three board members in a week is billionaire founder reached out to investors to assure them that the Indian startup will finally release long-delayed financials and strengthen its accounting processes and Japan's government unveiled a 6.3 billion dollar deal to buy out and privatize jsr taking Direct Control of the world leader in chip making the move could help Tokyo expand its power over compounds essential for making Advanced semiconductors like those in missile control systems and Apple's iPhones plus jd.com aims to create what it calls an Innovative retail division for groceries China's number two e-commerce company plans to partner with seven fresh supermarket chain and group buying platform pin pin to deliver food to millions and Rivals similar business models like Alibaba and speaking of Alibaba the company planning to seek approval of its own grocery arm spinner off for listing from the Hong Kong Stock Exchange in two weeks this according to Hong Kong's Economic Times Bloomberg's Isabel Lee in New York with the latest tell me about this spin-off move hi Ted hi Ed I'm sorry I knew you were Ed we're good friends so this has been the subject of talks for a while now ever since the historic shake-up that Alibaba has gone through when it said that its big conglomerate will split into six baby Bubbas it was announced earlier this year so this is among the first in the pipeline so many were expecting it to be toward the end of this year and it might just come into fruition so it will list as early as two weeks which is July or August and it will go public in November so apart from this grocery spin-off we also have the logistics arm of Alibaba Tanya so that's also looking to go public next year if things go as planned uh Ted Ed You've Been Watching Ted lasso I know you have it's okay I'm not worried about this mistaken for Ted let's go back to the story we started on JD making a kind of obvious move right to take on Alibaba what's the latest there so that is interesting so JD had a big meeting last week and recently it said it will create an independent arm it will merge its seven fresh which is its grocery retail store with other units to create something like the Innovation retail that you said so I don't want to say it's meant to compete with alibaba's um grocery spun off but it does kind of look like that because to Alibaba it's kind of a lot of people compared to Sam's Club because it's interesting it has dine in it has delivery and it has grocery all in one and maybe that's what jd.com is looking to do as well especially because last year China's growth really didn't pan out as people as expected so maybe they're banking on this year with this new thing they had a big meeting last week where they announced that it will create seven listed firms with Market values of at least 14 billion and this is probably one of the men I just was looking at the Hong uh the NASDAQ Golden Dragon China index earlier and there was out performance you know a lot of news flow related to the US listed shares of China Tech you know Alibaba JD I think there is a lot of focus on the health of Chinese Tech right now in alibaba's case what's the big one we're waiting on you know this restructuring we had the management changes what is it that investors are most focused on I think they're just really curious about how this will pan out because again this is Alibaba it's one of it's the first in China to do this ever since the intense Crackdown we've seen from the government where they were getting angry at Monopoly saying that they're being Reckless and all that so alibaba's big move was widely seen as kind of a response to the government it's hard to imagine that this happened just on their own especially with The Disappearance of Jack Ma so likely this is with the blessing of the government so that's what a lot of investors are looking for in China and outside how will this play out it's historic and maybe this will be the blueprint for other companies Ken JD followers can other big rivals of Alibaba probably follow it because this six baby Babas it's a lot of people were saying it may be good because it will make more Nimble companies they will have each SEO board of directors and probably increase Share value who knows the six baby Bubbas might even be bigger than the big Alibaba as we know big companies can move a bit slower so that's really what people are looking out for how this will play out down the line back news is about layout in New York thank you so much right coming up we're going to turn our attention to the markets and get the view from Catherine Rooney Vera of stonex group and her outlook for Tech and crypto I'm taking a quick look at shares as well of palantir this is the focus of the tech watch column this Monday morning we're soft to buy three tens of one percent so much hype around AI but they point out that if you look at the consensus recommendation that's the proxy ratio of hold buy and sell we're at a 2.41 out of five and that's the lowest among all the software names on the Russell 1000 software sub sector index also Tesla woof off by five percentage points Goldman the latest name to downgrade the stock to neutral from by citing the run-up in shares we're up more than 100 year today but also declining average selling prices for EVS that's the four finalists to my mind that we've tracked in the last week downgrading the stock I think Morgan Stanley among those as well DZ and also Barclays One stock to watch this is Bloomberg technology [Music] [Music] [Music] thank you [Music] foreign [Music] [Applause] welcome back to Bloomberg technology I'm at Ed Ludlow in San Francisco I want to get a quick check on the markets we've sort of seen declines accelerate particularly on the NASDAQ 100 we're now softer by a percentage point at session lows uh the story is that we're coming off the worst week for markets since March and there's a lot of Focus right now on the macro picture what the FED will or won't do in terms of moving towards rate cutting and the re-evaluation on the timing of that that impacts the tech sector higher rates discount the present value of future cash flows that's the story and it has been for a really long time some outperformance in semiconductor stocks the Philadelphia semiconductor index or socks up 8 10s or seven tenths of one percent and the U.S 10-year yield holding at around 3.7 Bitcoin still above 30 000 US Dollars remember the story Friday hitting its highest level in one year there are two movers to the downside that we're paying attention to the first being Tesla its declines also really accelerating Beyond five percent now Goldman downgrading the stock 2 neutral from by the recent run up in the shares we're up more than 100 year to date but also looking at other factors like the declining price of EVS Mark Delaney moving probably the four fan list in about a week to downgrade that stock and alphabet also downgraded at UBS to neutral from buy near-term monetization risks in the medium term talking about this pivot to generative AI in the context of search and what that will do in terms of impacting ad inventories that's all to say that we should zoom out and get more markets analysis and welcome Catherine Rooney Vera Chief Market strategist at stonex group what happened last week right you look at the NASDAQ 100 we have the biggest weekly decline since March the week where the banking crisis kind of unfolded Bitcoin hits a one-year High Friday what was driving both of those things well I'll also lines point to the Federal Reserve driving most of the market action and the expectation of additional right hikes right hikes being discounted after previous to that the market had wholeheartedly embraced the idea of rate Cuts being the next step for the Federal Reserve The Dot Plot shows that the FED is expecting two more hikes at 25 basis Points each but even today Ed the markets are not believing the fed and expecting one rate hike this week I think economic data are going to be clutch in terms of market movement going forward whether they the economic data from exam for example initial jobless claims core pce the super core index all of that coming out this week indicating whether or not the market is right or the FED has got it right so I think that's where where the markets are focused especially as you highlighted on the technical or the or the technology sector which has been the foremost front-runner of this rally that we've seen year to date Catherine what does the FED need to see in that data to move from hiking to pausing to eventually cutting rates there has to be irrefutable evidence that the labor market is rolling over there has to be a clear Trend not just this data dependency focused on one or two months a clear Trend with regard to the super core which is what the FED most looks at X shelter of course which seems like it's going to start a trend lower but there really has to be Trends with regard to getting to the two percent core pce Target this is a Fed that has grappled with credibility remember the Fiasco with regard to transitory inflation over running the the easing policy for uh for I think went long in the tooth by about a year so I think the markets could be disappointed Ed with regard to the fed's propensity to uh you know prop up economic growth versus inflation I think this is a Fed that really needs to claw back some inflation-fighting credibility and more likely than not will hike or hold rates at a terminal rate I estimate of 525 but more likely 550 for an extended period of time longer than what the market is currently discounting that in itself is negative for stocks negative four cyclicals negative for interest rate sensitive sectors which technology certainly is on that note we're showing the NASDAQ 100s year-to-date performance up 35 or so a big part of that story was just a few single names and it was all AI related so when you look at the breadth of the market how do you see investors offsetting that AI hype driving us to the upside and then the FED risk to the downside well the short term if you believe that the market has further upside which is certainly could if we get a very good inflation data showing that the fed maybe doesn't have to go so long or so much higher for longer then you could get additional upside and if you want to play that trade ad I think that you would want to look at the laggard so you see this Divergence between the NASDAQ and small caps then you could play the laggard such as small caps financials or energy my perspective over the course of the next uh six to 12 months however is that we should be disproportionately overweighted on defensive sectors which have not had seen a significant run up year to date that has been of course in favor of technology and as you mentioned in this very narrow breadth of the s p 500's recent surge so I would say look at defensives in this in in U.S equities and specifically look in rates I mean you could look at the twos 10 steepener play in the treasury curve holds up position in gold in cash I mean even Bloomberg had this beautiful chart you guys put out where it showed that you know high grade bonds earnings yield and three month T Bill are all pretty much within a range of 20 to 30 basis points so I think the risk reward favors being defensive defensive over chasing the market another beautiful chart that we've been looking at recently is is near-term Bitcoin what happened on Friday what is the driver behind Bitcoin right now I think a lot of people put emphasis right A lot of people put emphasis on the Black Rock filing June 15th that happened others point to sort of longer term indicators around well all the chaos is out the way now we can all move on with our lives but for you what is driving that that risk asset I think we may have some technical issues with Catherine Rooney Vera it's a m a Monday it is a Mayhem Monday but we thank you for your time stonex Chief strategist interesting conversation in the market is coming up we're going to talk about guess what generative AI is impact but on the retail space we're going to go from the public markets to the private markets to talk with M13 partner Lizzie Francis all things VC in our VC Spotlight that is next this is Bloomberg [Music] thank you [Music] [Applause] all right back to that m a Monday Vibe databricks has agreed to buy generative AI platform Mosaic ml for about 1.3 billion dollars the company said in the statement today that struck the deal with the goal of making generative AI accessible to all organizations so they can build with their own tools and their own data the acquisition expected to close July 31st let's dive deeper into AI how it's playing out in the VC space and in the context of the consumer Lizzie Francis partner and head of operations at M13 has 900 million dollars or so in assets under management so Lizzy everything is at the intersection of everything else but but for you how do you see the World Tech consumer and now generative AI good morning Ed thank you so much for having me on today yeah it's just an incredibly exciting time for Innovation across the board with AI but there's no sector that is more ready or ripe for transformation than retail and I think what we're seeing is that in the last decade or so Commerce has had an unbelievable Tailwind at its back and particularly the adoption of digital for consumers post covid moving online means that Brands and retailers have to meet consumers in multiple places now and consumers are expecting a great experience and so what that means is AI can actually impact that in two really critical ways the first is it can improve productivity in very rote ways for very complicated retail businesses and on the consumer side it can actually Delight consumers by allowing Brands and retailers to think about ways that they can better personalize consumer experience and create exciting ways for consumers to remove pain points for them but also display and show products and services in ways that they have not seen before and again all of that is powered by Ai and we're seeing really rapid transformation happening this year so when you think about potential uh portfolio companies that you're investing in in the context of consumer-facing companies or their technology are you looking for them to be sort of AI adjacent or AI native companies yeah it's a great Point Ed we're looking at both and I think what you'll you'll find is that there are companies being born that are powered by by Ai and then there's companies that are really leveraging AI for the application layer so the way that we're thinking about the future of Commerce at M13 and and what we're keenly interested in when it comes to investing is where will that transformation occur over the next 10 years and how can they have a how can it have a deep impact on the consumer and so for instance we've just recently invested in a company called Pietra which is a really fantastic One-Stop shop for entrepreneurs and Founders to both id8 new brands and products and then bring them to Market rapidly they're entirely powered by Ai and so what used to be a very long and cumbersome process to launch new products or Brands now just takes a matter of days right this in retail those of us who've been in it know oftentimes even internally when you're launching new lines of products that can take up for a year to both Ida then Source then QA and test now imagine all of that happening within days so Ed you could this weekend sign up on Pietra perhaps you want to launch a new mustache grooming brand and within days you could have both a fantastic brand a new design you could Source Products and bring it all to Market in days these are the types of businesses powered by a AI that are really where we're interested in investing you also have the application layer so imagine rebuy or Max retail two of our portfolio companies that are leveraging AI in very interesting ways rebuy is creating a more personalized experience for consumers when they shop so imagine for consumers now when they go shop at a brand or retailer they could have a totally new store or new experience every day that is personalized for them based on these large data sets that retailers and Brands can crunch in real time leveraging AI in ways that they could not before you know Lizzy we talk on this show Bloomberg technology every day about the energy that the AI has given all kinds of sub-sectors how is it impacted valuations in the consumer Tech space What are you seeing yeah it's really interesting what we're seeing so obviously this is not 2020 or 2021 anymore but we are seeing that pricing for AI even at the earlier stage is higher than it would be in other sectors or I should say companies that are powered by IAI or are AI driven and you know you can see that even in unicorns for this year the last five unicorns three of them are Ai and then obviously today has been quite a day for m a right when it comes to AI in the markets so both at the very earliest Asian later stage we're starting to see some some really healthy and Rich pricing for AI driven companies now having said that I think it's a really important moment in time for us to realize that much like the adoption of Commerce online or mobile or Cloud this is one of those moments in the market where we will see a really rapid pace of innovation in this particular sector and even though the pricing is Rich this is one of those moments when great companies are born and this is what we love to do invest at M13 invest in the very early stage of companies being born during interesting moments that will transform lives over the next decade or more so 1999 Rich pricing Google PayPal eBay these are transformative Brands and businesses that have driven tremendous value so I think that we'll continue to see this throughout the year and exciting to see again the rapid rate at which these businesses are being born what we've tried to do here on Bloomberg technology in our Venture Spotlight is us where the innovation's happening and where the checks are getting written you're coming to us from Los Angeles you know we associate LA with maybe the entertainment industry TMT and startup innovation in the gaming space is it more than that oh la is just a wonderful ecosystem for entrepreneurs and M13 is really happy and privileged to have our headquarters here in La there's deep roots in the community here Community here on the tech side over the last 20 years of entrepreneurs and Founders that have started great businesses it's a very close-knit community and one of the things we love and an inclusive community one of the things I love that we've seen over the last decade is we're producing more Engineers that are graduating out of our universities we're seeing that people love to be in a community that supports and nurtures each other at this very earliest stages and so I think what you'll find is that this convergence of community and technology and Venture dollars flowing into the very earliest stages with a diverse and interesting group of Founders across Commerce cheerpoint and media technology we will see many new brands being born here and many great new businesses to invest in when we cover consumer Tech and the program there's often an association with celebrity endorsement you know from a VC perspective or just a product perspective is that something that you're encountering as well I think there's always a great story to be told and I think yes and La lends itself to incredible celebrities who can share and amplify that story um you know and you're starting to see now that you didn't see 20 years ago that people realize they can quickly move to Market if they have a passion or conviction around a particular area obviously like Honest Company or other folks that have celebrity spokespeople you know if you're really passionate about something why not amplify and use your voice we have an incredible portfolio company at M13 called life force which has Tony Robbins behind it and you know being able to leverage Tony's Community as well and amplify the message and value proposition of Life Force that's an unbelievable opportunity so again I think all of these things make sense and we'll continue to see this scale and evolve over time Lizzie Francis partner in head of Ops at M13 coming to us from Los Angeles you know we don't do that as often on Venture Spotlight interesting conversation about the startup ecosystem there thank you so much for your time all right from consumer Tech to Rockets coming up why SpaceX has made over 1 000 changes to Starship we'll have all the details next this is Bloomberg [Music] [Music] [Applause] thank you there are really a tremendous number of changes between the last Starship play to endless one um but I mean well over a thousand um so I think the probability of this this next flight working is uh you know getting to orbit is much higher than the last one um you know maybe it's like 60 percent so that was Elon Musk speaking over the weekend on a Twitter spaces with Bloomberg's Ashley van saying SpaceX has a much better chance now after making over a thousand changes to Starship let's bring in Bloomberg's Lauren grash space reporter ah what a way to spend a Saturday morning but but what did we learn about these changes that SpaceX has made to Starship right so Elon highlight a few of those changes perhaps the biggest one that he talked about was that the SpaceX is going to implement something called hot staging so for non-rocket enthusiasts out there uh if you if you watch the last Starship launch they had a bit of a problem with the staging that's when the Starship the top of the vehicle separates from the super heavy booster it did not separate as planned during that flight and the vehicle started uh twirling out of control so in moving forward they're going to introduce something known as hot staging which sounds kind of interesting basically the engines on this Starship spacecraft which you can see in that video there on the top they're going to ignite while the super heavy booster is still attached and so they it's it's something that Russians have done with their vehicles before but it just means they're going to have to take some extra precautions to make sure that the top of that super heavy booster doesn't get scorched by those engines so that was probably one of the biggest things that we learned Elon also detailed some updates to the engines that they made if you remember are plenty of those engines on the bottom of the booster did flame out during the launch so hopefully that will prevent that from happening in the future kind of uh in case you missed it but we reported Friday afternoon myself and colleagues Julian tan and Katie roof that uh SpaceX is doing a tender basically selling employee shares or offering them valuing SpaceX 150 billion dollars you know the valuation keeps going up but what was interesting that we reported Lauren was the cash on the balance sheet about five billion dollars private company you get a sense of it's Financial Health but on the spaces after that must did talk about how much they're spending on the Starship program what did he say right he said that so far they've invested about 2 billion and he expects that to approach three billion dollars this year and it's it's no surprise it's probably no it is the most complicated uh program that SpaceX has implemented in date so when I would expect that number to continue to go up I guess what's the road map from here you know musk always misses his own self-imposed deadlines and timelines but what do we know about the roadmap for for more Starship launchers so I think he very much loves the number six I don't know if you've noticed but each time he gives an update it's six weeks away so there was no different during the spaces you think he said that the pad upgrade that they'll be doing to Starbase if you remember when they did launch uh they quite caused quite a bit of damage to the surrounding area and to their own launch pad when they when they launched but they're doing a bunch of pad upgrades he said the expects those to be done in approximately six weeks but just to remind you that he has said six weeks before in fact right after a Starship launched the first time he said they'd be launching again in four to six weeks so uh six weeks whether it's six weeks notice or six minutes notice Lauren grush I know I can always call on you for all things SpaceX Bloomberg's Lauren grash out of Texas there thank you so much that does it for this edition of Bloomberg technology don't forget to recap what has been an m a focus Monday we have our podcast wherever you get your podcast but it is on Apple Spotify I heart and of course on all of the Bloomberg apps and bloomberg.com we're one day into what's going to be a big week for the technology sector we think about the markets we're coming off the biggest drop for the NASDAQ 100 on a weekly basis since March we're thinking about the FED but there is some green shoots and there is some energy in the private markets we're seeing M A but what happens with Venture Capital we're going to continue that conversation a big one coming tomorrow as well you don't want to miss it this is Bloomberg technology

Channel: Bloomberg Technology

Views: 11,385

Keywords: Caroline Hyde, Ed Ludlow, Lizzie Francis, Rob Thomas, loren grush

Id: rQadCm9QPGs

Length: 43min 55sec (2635 seconds)

Published: Mon Jun 26 2023