>> 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. ♪ CAROLINE: I'M CAROLINE HYDE. ED:
I AM ED LUDLOW IN SAN FRANCISCO AND THIS IS BLOOMBERG
TECHNOLOGY. CAROLINE:
MICROSOFT CLEARS THE FINAL HURL HURDLE IN ITS TAKEOVER OF
ACTIVISION. ED: PLUS, THE STICKING POINTS AND
THE STRIKES THAT HAVE SHUT DOWN HOLLYWOOD AND HOW AI CAN
TRANSFORM TINSELTOWN AS WE KNOW IT. CAROLINE: U.S. AVIATION RELATED AIDERS --
REGULATORS TO RETHINK HOW HELICOPTER PILOTS AND OTHERS
ARE TRAINED USING VIRTUAL REALITY.
ALL THAT AND MUCH MORE COMING UP AT FIRST WE WOULD CHECK IN
ON THE GLOBAL MARKETS. WE MANAGED TO SEE THE NASDAQ UP
WITH TECH ON THE HIGH SIDE. WE ARE TRYING TO DIGEST WHAT
INFLATION READINGS MEAN LAST WEEK AND WITH THE SLOWING
CHINESE ECONOMY MEANS FOR GLOBAL GROWTH AND WHETHER THE
U.S. CAN AVOID RECESSION AS JANET
YELLEN TOLD HIS EARLIER WE ARE LOOKING AT THE GOLDEN DRAGON
OFF BY 0.7%. STILL ABOVE 6% BUT RELATIVE TO
THE GROWTH WE USED TO SEE, DIALING BACK. LET'S MOVE IT ON AND HAVE A
LOOK AT WHAT'S HAPPENING WITH CRYPTO.
THE DOLLAR RISING OFF THE LOWS WE SAW LAST WEEK WITH BITCOIN
DOWN BY 0.4% GIVEN THE VOLATILITY WE ARE USED TO IN
THIS ASSET CLASS. IT'S ALL ABOUT THE MICRO DATA
IN TERMS OF STORIES TODAY FROM A MICRO PERSPECTIVE ON
COMPANIES. ED: GOOD MORNING, TECHNOLOGY.
THE WORLD OF ELECTRIC VEHICLES IS DOWN ABOUT'S 4%.
IT IS CUTTING PRICES ACROSS ITS RANGE OF FORD F-150 LIGHTNING
PICKUP TRUCKS. THE HEAVIEST CUT IS THE TRUCK
THAT IT SELLS TO COMMERCIAL FLEET OPERATORS AND CONTRACTORS.
IT'S TALKING ABOUT HIGHER CAPACITY FOR REDUCTION IN LOWER
COST FOR MATERIALS BUT IT'S NOT HELPING THE STOCK AND TESLA IS
UP 2.3%. IT STARTED PRODUCTION ON ITS
CYBER TRUCK OVER THE WEEKEND. JUST 2000 UNITS THIS YEAR BUT
1.8 MILLION ACROSS ALL OF ITS LINE AND GIVES YOU A SENSE OF
SCALE. MICROSOFT/ACTIVISION, THE SITUATION IS RIGHT NOW AS WE
SPEAK, THERE IS A HEARING AT THE COMPETITION ANTITRUST
TRIBUNAL IN THE U.K.. THEY ARE DECIDING AND ASK FOR
ALL THE PARTIES. THEY WANT TO STATE LEGAL SO
THEY CAN FIND A SOLUTION. THEY WANT TO FIND A WAY OF
MOVING FORWARD IN THE DEAL DEADLINE IS JULY 18.
IT'S NOW CRUNCH TIME, DOES THIS HAPPEN? ACTIVISION UP 3% BUT THE STOCK
IS SUGGESTING THERE'S CONFIDENCE WE ARE MOVING
FORWARD. CAROLINE: THAT TRIBUNAL IS ALL ABOUT.
KICKING OFF THE DISCUSSION WITH THE AGENCY TODAY.
IT'S DESPERATELY TRYING TO GET THIS DEAL DONE.
WE KNOW THE CLOCK IS TICKING ON JULY 18.
LET'S GET YOU MORE ON THIS. THE U.K. IS THE FINAL HURDLE? >> YEAH, IT'S DOWN TO THE WIRE.
TOMORROW, IF MICROSOFT DOESN'T CLOSE IT, THEY PAY $3 BILLION
AND IF THEY CAN CLOSE IT AND RISK FURTHER WRATH FROM U.K.
REGULATORS. THE MARKET SEEMS TO THINK THIS
IS CLOSING. I SAW A NOTE THAT THE WORD
IMMINENTLY IS BEING THROWN AROUND A LOT. THERE IS STILL THREE OR 4% DEAL
SPREAD. SOME PEOPLE THINK THERE IS
STILL A RISK SO DOWN TO THE WIRE. ED:
THE APPEALS TRIBUNAL IS LOOKING AT WHETHER TO ALLOW THE PARTIES
TO GO AWAY AND FIND SOME COMPROMISE BETWEEN THE TWO OF
THEM. THE U.K. CMA EXTENDED ITS REGULATORY
PROGRESS JUST PROCESS TO AUGUST 29 AND THERE STILL A TRIAL
SCHEDULED FOR JULY 28 SO SO MANY MOVING PIECES.
WHAT IS THE REQUEST HERE? WHAT IS IT MICROSOFT AND
ACTIVISION WANT TO HAPPEN IN BETWEEN THESE DATES? >> THEY WANTED TO CLOSE.
THEY ARE ASKING WHAT THE U.K. WANTS TO SEE.
WE SAW MICROSOFT OVER THE WE SAW MICROSOFT OVER THE WEEK AND
MAKE SOME CONCESSIONS. THEY WANT TO REMAIN ON THE
PLATFORM FOR THE NEXT 20 YEARS. THEY TRIED TO MAKE THIS
AGREEMENT PREVIOUSLY AND SONY IS THE ONE THAT PROJECTED IT.
IT'S AN INDICATOR THEY SEE THE WRITING ON THE WALL. SOME OF MY COLLEAGUES HAVE
REPORTED THAT MICROSOFT HAS CONSIDERED SELLING OFF SOME OF
ITS RIGHTS TO CLOUD GAMING IN THE U.K. WHICH WAS A CONCERN FOR
REGULATORS. WE COULD SEE SOME CONCESSIONS
LIKE THIS AND WHATEVER THAT LAST CLOSING DEAL IS, THEY
NEEDED TO GET TO THE FINISH LINE. CAROLINE:
HAVE WE SEEN MUCH LIKE THIS BEFORE?
DO WE ULTIMATELY ALWAYS GET DOWN TO THE WIRE WHEN IT COMES
TO THESE REGULATORY HEADACHES AND WHEN WE HAVE SUCH CLEAR-CUT
DATES? >> I DON'T THINK SO BECAUSE
WHAT'S DIFFERENT HERE IS THE REGULATORS ARE CHALLENGING
THESE MERGERS. WE HAD A REGULATORY IN THE U.S.
THAT WOULD ALLOW MOST MERGERS TO GO THROUGH. IT'S ON CARESS TICKLY -- IT'S
AN UNCHARACTERISTICALLY WILD RIDE FOR MERGERS. ED:
WE ALWAYS ASSUME THIS GOES SMOOTHLY SO WHAT HAPPENS OF IT
DOESN'T. WE WILL SAVE THAT FOR TOMORROW,
THANK YOU VERY MUCH. STICKING WITH TECH MEDIA AND
TELECOMS, WE WILL TALK ABOUT EIGHT NIGHTS SWIFTLY CHANGING
THE WEIGHT HOLLYWOOD OPERATES WITH TALKS IN THE ACTOR AND
WRITER'S STRIKE. YOU ARE WATCHING SHARES OF
PARAMOUNT. THIS IS WHERE MISSION IMPOSSIBLE DEAD RECKONING PART
ONE HAS MISSED THE MARK AGAINST ESTIMATES OVER THE WEEKEND,
DOWN 4%. THERE WAS CONFIDENCE OF THE
OPENING WEEKEND THAT IT WOULD BE A SUCCESS. THE DATA IS $56.2 MILLION THIS
WEEKEND IS NOT WHAT WE WANTED TO SEE WITH SHARES DOWN FOUR
PERCENT. THIS IS BLOOMBERG TECHNOLOGY. ED: HOLLYWOOD ACTORS AND WRITERS
CONTINUE TO STRIKE, DEMANDING PAY INCREASES AND RESIDUALS ON
STREAMING AND ASSURANCES THAT THEIR WORK WITH MY PEOPLE
REPLACED THE ARTIFICIAL INTELLIGENCE.
LET'S GIVE -- BRINGING MORE. YOU BEEN OUT ON THE STREET AND
TRACKING ON THE GROUND THESE STRIKES, ARE THEY CLOSE TO
GETTING WITH THEY WANT? >> IT DOESN'T SEEM THAT WAY.
THE ACTORS JUST WENT ON STRIKE MID TO LATE LAST WEEK.
I DON'T EXPECT INTENSE NEGOTIATIONS THIS WEEK. I MAY HEAR DIFFERENT AS I TALK
TO MORE SOURCES IN A WEEK BUT AT THIS POINT, I THINK MOST
FOLKS ARE EXPECTING THIS WILL DRAG INTO THE NEXT MONTH AT THE
ABSOLUTE EARLIEST. CAROLINE: HOW IMPORTANT IS IT THEY GET
THEM BACK TO WORK POST LABOR DAY? >> IN THE SHORT-TERM, NOT A TON.
IT WILL IMPACT THE RELEASE OF SOME MOVIES BECAUSE THEY CAN'T
DO PROMOS WITH STUFF COMING OUT IN JULY AND AUGUST. THEY WILL
NOT BE ON THE TALK SHOWS AND DOING PODCASTS.
MOST TV NETWORKS WILL BE FINE. AUGUST IN SUMMER IS KIND OF
SLOW AND STREAMING SERVICES HAVE BANKED A LOT OF
PROGRAMMING FOR THE NEXT SEVERAL MONTHS WOULD DON'T
THINK YOU WILL SEE DRAMATIC IMPACT RIGHT AWAY.
WHERE IT STARTS TO HURT IS IF THIS DRAGS ON CERTAINLY INTO
SEPTEMBER, THEY WILL HAVE A LOT OF COMPANIES THAT ARE LOOKING
AT A PRETTY BARE SLATE NEXT YEAR IF THEY CANNOT FINISH WORK
ON PROJECTS OR CANNOT START WORK AND YOU WILL HAVE PEOPLE
MAYBE MOVE MOVIES BECAUSE THEY DON'T WANT TO RELEASE SOMETHING
THEY CAN'T USE THE STARS TO PROMOTE. ED: HOLLYWOOD HAS FOUND THE PERFECT
VILLAIN AND ARTIFICIAL INTELLIGENCE.
THIS IS WRITTEN IN A NEWSLETTER -- EXPLAIN THE AI VILLAINY AT
THE HEART OF THIS ACTORS STRIKE BECAUSE IT HAS ALREADY COME UP
IN THE WRITER STRIKE. >> IT'S IMPORTANT TO NOTE THAT
THINGS LIKE RESIDUALS BEING PAID FOR RERUNS AND MINIMUM
SALARIES AND BEING REWARDED, THOSE ARE THE MEAT AND POTATOES
ISSUES THAT ARE MOST IMPORTANT TO RESOLVE BUT AI HAS BECOME
SOMETHING WHETHER IT'S WRITERS OR ACTORS AND EVERYONE IS A
LITTLE SCARED BECAUSE THEY ALREADY FEEL AS IF STREAMING IS
THE ONSET OF HURTING THEIR PAY AND GIVEN CORPORATIONS TOO MUCH
POWER. THEY CAI IS AN EXISTENTIAL
THREAT TO HOLLOW OUT THE MIDDLE AND LOWER CLASS WHICH IS NOT
LIKE YOU WILL USE ARTIFICIAL INTELLIGENCE TO REPLACE MARGOT
ROBBIE OR BRAD PITT OR THE SINGLE GREATEST SCREENWRITER IN
THE WORLD BUT YOU COULD SEE ARTIFICIAL INTELLIGENCE REDUCE
THE AMOUNT OF WORK THAT PEOPLE HAVE OR ELIMINATE MUCH SMALLER
ROLES THAT COULD BE REPLICATED WITH A COMPUTER. FOR A WRITER, YOU CAN CAI COME
UP WITH AN IDEA AND A WRITER CAN WRITE AN ADAPTED SCREENPLAY
AND GETS PAID LESS. THERE IS A LOT OF ANXIETY AND
UNCERTAINTY BECAUSE NOBODY KNOWS WHERE THIS GOING.
THEY FEEL THE STUDIOS HAVE NOT MET THEM HALFWAY. CAROLINE:
WE THANK YOU, BRILLIANT COVERAGE.
LET'S THINK ABOUT HOW WE COULD SEE SOME SORT OF INEQUITABLE
FEATURE OF HOW AI AND THE WORKERS TEAM TOGETHER. WE ARE DELIGHTED TO WELCOME A
PARTNER AND YOU ARE STEEPED IN THE WORLD OF AI AND HOW
MOVIEMAKING AND CREATION COME TOGETHER. YOU ARE BACKED BY SOME OF THE
PREVIOUS CEOS OF THE STUDIOS AND YOU WORK WITH WARNER BROS.
AND YOU BEEN THINKING ABOUT SPINOFFS, WHAT DO YOU THINK
ARTIFICIAL INTELLIGENCE WILL DUE TO CONTENT CREATION? >> I THINK ARTIFICIAL
INTELLIGENCE IS REFERRED TO AS AUGMENTED INTELLIGENCE.
IT'S ACTUALLY A DEMOCRATIZING FORCE TO ALLOW FREE AGENTS OF
ALL KIND TO BE ABLE TO PRODUCE WORK AT A LARGER QUANTITY AND A
QUICKER PACE THAN THEY EVER DID BEFORE. IT'S REALLY EXCITING TO BRING
CHARACTERS TO LIFE AND USING TECHNOLOGY SUCH AS DEEPFAKES
LIKE ONE'S VOICE, BRINGING CHARACTERS TO LIFE THAT WOULD
OTHERWISE HAVE BEEN RETIRED. O THERE'S THE NEWBI WAN KENOBI
SERIES ON DISNEY PLUS WHICH IS A WAY OF USING JAMES EARL
JONES' VOICE BUT THERE WAS A LICENSE TO USE COME A DEEPFAKE
USE OF HIS BIT VOICE TO BE RE-CAST AS DARTH VADER IN THAT
PROGRAM WHICH I THOUGHT WAS TRULY A MAGICAL EXPERIENCE, TO
RE-IMMERSE. CAROLINE:
THAT MAGIC MUST COME AT A COST AND DO YOU THINK MOVIE STUDIOS
WILL BE ABLE TO GET THEIR HEAD AROUND WHERE THAT COST
EVENTUALLY GOES? CAN THEY SEE AROUND CORNERS?
ARE THE WRITERS GOING TO BE RECOMPENSED IN THE RIGHT WAY? >> THAT IS A SEPARATE
CONVERSATION FROM THE CORE TECHNOLOGY. COMPENSATION AND REVENUE SPLIT
ARE ABSOLUTELY SOMETHING THE NIGHT DON'T THINK THE
TECHNOLOGY ITSELF WILL BE A RALLYING CRY FOR MANY PEOPLE
OUT THERE. I THINK BACK AND SPLITS, USING
ONE'S LIKENESS AND BEING ABLE TO LEVERAGE THAT LIKENESS AND
EXCITING WAYS IN COLLABORATION WITH THE IP OWNER, THESE ARE
THINGS THAT ABSOLUTELY NEED TO BE HANDLED. I THINK IN THE SAME WAY M
THATP3'S CHANGED THE MUSIC BUSINESS AND CREATED NEW
OPPORTUNITIES, THERE WAS A LOT OF FEAR THAT ACCOMPANIED THE
ONSET OF THAT NEW TECHNOLOGY AT THE BEGINNING. AUGMENTED REALITY IN THE FUTURE WILL HELP IP'S BEING LEVERAGED
ON THIS. IT'S A CONVERSATION THAT NEEDS
TO BE HAD. I DO WANT TO SAY I THINK THE
TECHNOLOGY ITSELF IS A VERY POSITIVE THING.
THAT'S WHERE WE STAND. ED: YOUR FUND IS BACKED BY CEOS,
EXECUTIVES WHO SPEND A LOT OF TIME IN STUDIOS.
WHO SIDE OR YUAN? -- WHOSE SIDE ARE YOU ON? >> I'M ON THE SIDE OF THE
TECHNOLOGY. I THINK IT'S AN EXCITING THING
AND IT WILL CHANGE LIVES IN A VERY POSITIVE WAY.
THE BUSINESS MODEL AROUND IT IS ABSOLUTELY SOMETHING I THINK
THE STUDIO EXECUTIVES ABSOLUTELY MUST FIGURE OUT.
FAIRNESS AND EQUAL COMPENSATION IS A VERY IMPORTANT ASPECT OF
THE CONVERSATION. ED: ONE OF THE COMPANIES WE TRACK
HIS RUNWAY, TEXT TO VIDEO ON THIS PROGRAM.
IF THERE CONCEPT ON TECHNOLOGY PROVES TO BE A VALUE ADD TO
MAKING FILMS AND THE ACTORS WHO ARE STRIKING WILL BE CONCERNED,
DO YOU SEE A SITUATION WHERE WE FIND A RESOLUTION WHERE THE
ACTORS ARE HAPPY AND WE KEEP INVESTING IN TECHNOLOGY THAT
CAN POTENTIALLY DISPLACE JOB? >> YEAH, I THINK RUNWAY IS
PROBABLY ONE OF THE MOST EXCITING THINGS TO HAPPEN SINCE
WE BEEN FOLLOWING ARTIFICIAL INTELLIGENCE OVER THE LAST FEW
YEARS. IT'S TRULY AMAZING WHAT YOU
BEEN ABLE TO SEE OUT THERE WITH SOME OF THE PIZZA HUT AND PEPSI
AND BUDWEISER COMMERCIALS GENERATED ENTIRELY BY TEXT TO
VIDEO. I THINK THAT WHEN YOU SEE IT WITH PEOPLE WITH SEVEN FINGERS AND IT'S SOMETHING THAT LOOKS
LIKE HOW RUDIMENTARY AN EARLY IT IS WITH THIS TECHNOLOGY.
I THINK IT'S RIGHT TO THINK IT WILL BE REPLACING PEOPLE
BECAUSE YOU COULD ARGUE THAT THE REAL ENGINE BEING USED TO
SHOOT THE MAN TO LORI AND COULD DISPLACE CERTAIN CREWMEMBERS
WORKING IN VISUAL EFFECTS. IT'S SIMPLY PUTTING UP BETTER
CONTENT THAT AUDIENCES WANT. WHEN IT COMES DOWN TO RUNWAY IN
PARTICULAR, I THINK OF IT MORE AS AN EDITING AND STORYBOARDING
COMPONENT OF THE GREENLINING PROCESS.
I DON'T THINK IT IS IN A PLACE TO FULLY GENERATE A FILM
ANYTIME SOON THAT WOULD REPLACE EVEN THE MOST BASIC KIND OF
ROLES IN THE ENTERTAINMENT INDUSTRY.
IT'S JUST A STORYBOARDING COMPONENT TO GET IN TO THE
FINAL PROJECT, STEPPING LIKE HOW YOU WOULD USE ADOBE KIND OF
TOOLS TO PUT FORWARD FOR PRODUCER TO GET A GREEN LIGHT
IN THE FIRST PLACE. CAROLINE: YOU SAY YOU'RE ON THE SIDE OF
TECHNOLOGY. WHERE YOU SEE THE EXCITEMENT.
WHERE IS THE SILVER LINING TO SOME OF THE FEARS YOU ARE
LOOKING AT. YOU'RE LOOKING AT BACKING SOME
OF THOSE REVOLUTIONARY TYPES OF TECH.
WHAT COMPANIES INTEREST YOU? >> I THINK USING DEEPFAKE
TECHNOLOGY IS INCREDIBLY EXCITING FOR A MULTITUDE OF
APPLICATIONS, ENTERTAINMENT BEING ONE OF THEM.
BRINGING VOICES, CLONING VOICES AND BRINGING CHARACTERS TO LIFE
IS AN APPLICATION. THERE IS ANOTHER COMPANY THAT'S
OUT THERE DOING IT WITH DUBBING WHEN IT COMES TO INTERNATIONAL
LANGUAGE MODELS CALLED ANESTHESIA BASED OUT OF LONDON.
IT ALLOWED DAVID BECKHAM TO FILM A COMMERCIAL ONE TIME IN
ENGLISH AND HIS FACE AND VOICE WITH HIS AUTHORIZATION WILL BE
DUBBED INTO LOCAL LANGUAGES. I THINK THAT'S A VERY
INTERESTING APPLICATION FOR ADVERTISING.
ANOTHER REALLY INTERESTING APPLICATION THAT SPEAKS TO ME
IS IN THE GAMING INDUSTRY WHERE YOU CAN HAVE GENERATIVE AI AND
CHATGPT BE USED TO GENERATE ED: TIME FOR TALKING TECH.
CHINA'S TOP CHIPMAKER HAS RESIGNED A YEAR AFTER FORMALLY
ASSUMING HIS ROLE. THE LATEST HIGH PROFILE
DEPARTURE FROM A COMPANY THAT'S BEEN ROCKED BY U.S.
CHIPS SANCTIONED. TWO MAJOR CHINESE CHIP
EQUIPMENT MAKERS ARE PREDICTING A DOUBLING IN PROFITS AFTER THE
U.S. CLAMPED DOWN EXPORTS OF AMERICAN TECHNOLOGY.
THEY ARE BENEFITING FROM THIS SELF-SUFFICIENCY PUSH WITH
BEIJING THAT WEEK TO REPLACE FOREIGN TECH WITH LOCAL
AUCTIONS. -- OPTIONS. ALSO THERE WILL BE NEW CURBS ON
THEIR SALES TO CHINA AND SENIOR EXECUTIVES ARE TRAVELING TO
WASHINGTON NEXT WEEK TO LOBBY AGAINST RESTRICTING SALES ON
SEMICONDUCTORS IN CERTAIN CHIPS. CAROLINE:
LET'S TURN TO THEIR APPLICATION IN EV'S.
LET'S TALK ABOUT TESLA BECAUSE KENNETH PROTECTED LEAD IN THAT
MARKET OR IS ELON MUSK LOSING HIS HEAD START?
TESLA NUMBERS WILL, WEDNESDAY IN BLOOMBERG WENT TO RETAIL
INVESTORS WITH THE QUESTION. WE HAVE THE HIGHLIGHTS AND
BASICALLY WE ARE ASKING OUR AUDIENCE ON THE TERMINAL, DO
YOU HAVE FAITH THAT ELON MUSK AND TESLA CAN KEEP WINNING
AGAINST THE COMPETITION? WHAT REALLY IS THE INVESTOR
TELLING IS NOW ABOUT THEIR WORRIES FOR TESLA? >> THANKS FOR HAVING ME.
THAT WAS ESSENTIALLY THEIR BIGGEST QUESTION THAT WE ASKED
IN THE SURVEY. WHAT YOU THINK ARE THE BIGGEST
RISKS FOR TESLA IN THE NEXT TWO YEARS? THE RESOUNDING ANSWER WAS THE COMPETITION THAT'S COMING IN
FROM STARTUPS WHERE THERE IS GM'S AND FORWARDS, THAT'S WHAT
INVESTORS ARE WATCHING OUT FOR. THEY THINK THAT IS THE BIGGEST
RISK, ABOUT 50% OF THE 630 RESPONDERS WHICH IS A MIX OF
PROFESSIONAL AND REGIONAL INVESTORS SAY ARRIVALS OF THE
BIGGEST RISK FOR THE COMPANY AND THE SECOND THING IS ELON
MUSK HIMSELF. HIS BEHAVIOR AND THE
UNPREDICTABILITY HE BRINGS WITH HIS LEADERSHIP WHICH IS ALSO
SOMETHING TESLA CANNOT BE SUCCESSFUL WITHOUT IS SOMETHING
INVESTORS FLAGGED AS ONE OF THE BIGGER RISKS FOR THE COMPANY.
ED: A LOT OF COMPLAINTS, THE STOCK
IS UP 133% SO FAR THIS YEAR. 2/3 OF RESPONDENTS WANT ELON
MUSK TO DO WHAT? SPEND MORE TIME ON TESLA? >> YES, IT'S HAD A REALLY GREAT
RUN BUT IT'S QUITE FAR AWAY FROM THE 1.3 TRILLION MARKET
TOUCHED LAST YEAR. TESLA'S MARKET CAP IS HOVERING
AROUND 899 BILLION. PEOPLE WHO ARE BELIEVERS IN
TESLA THINK THIS CAN RUN MUCH FARTHER.
IT'S NOT JUST AN EV PLAY ANYMORE, IT'S AN AI PLAY.
THE SKY IS THE LIMIT WITH TESLA INVESTORS AND WE SAW 67% OF THE
SURVEY RESPONDERS SAID ELON MUSK NEEDS TO FOCUS MORE ON
TESLA. THERE WE HAVE IT. CAROLINE:
WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED:
LET'S GET A QUICK CHECK ON THE MARKETS.
THE NASDAQ 100 UP ABOUT HALF A PERCENTAGE POINT WE ARE COMING
OFF OF OUR BEST WEEK ON THE NASDAQ 100 SINCE MID JUNE. IT'S ALL ABOUT THE REBALANCING.
IT'S INTERESTING TO SEE GOLDMAN OUT WITH A NOTE SAYING THE
REBALANCING WILL NOT DO MUCH TO SOLVE THE CHALLENGE OF THE HIGH
CONCENTRATION OF TECH STOCKS ON THE NASDAQ 100, THAT THIS
DIMINISHING OF WEIGHTINGS WILL BE QUITE SMALL IN THE BIGGEST
NAMES. HOW OFTEN WE SAY THE NASDAQ 100?
TWO NAMES ARE RAISING PRICE TARGETS TO 350 DOLLARS PER
SHARE, BANK OF AMERICA AND J.P. MORGAN GIVING THAT PRICE TARGET
BUT BANK OF AMERICA TALKS ABOUT EARLIER IN THE MONTH OF JUNE
AND THE MOMENTUM AROUND THE REALITIES BEING SOMETHING TO
WATCH FOR THAT NAME. SPEAKING OF VIRTUAL REALITY, A
SMALL SWISS TECHNOLOGY STARTUP HAS BEEN CHOSEN TO RETHINK HOW
HELICOPTER PILOTS ARE TRAINED IN THE U.S. WITH VR HEADSETS.
THE FAA WILL EVALUATE THE TECHNOLOGY AND FLIGHT
SIMULATORS FOR THE FIRST TIME, TAKING DELIVERY OF SYSTEM FROM
ZURICH-BASED LOFT DYNAMICS. THE CEO JOINS US NOW FROM
ZÜRICH. WHAT'S THE SCALE OF THIS AGREEMENT?
HOW MANY UNITS DID YOU AGREE WITH WITH THE FAA? >> THANK YOU FOR HAVING ME. RIGHT NOW, THE FAA IS SCENTING
20 UNITS SO WE ARE BUILDING THEM SINCE 2016. THE CASE IS THAT WE ARE
IMPROVING THE VISUAL PROJECTION BY USING A VR HEADSET. THE TRADITIONAL FLIGHT
SIMULATORS ARE USING OLD TECHNOLOGY AND THEY ARE MISSING
PERCEPTION AND WE PROVIDED THE WHOLE THING WHICH HAS IMPROVED
AND BASED ON THAT, WE ALSO ARE MAKE IT THINK POSSIBLE FOR
PILOTS TO FLY CLOSE TO THE GROUND. IT IS ALSO ENABLING THE VISUAL
360 DEGREES AROUND A FULL PANORAMIC VIEW BECAUSE WE ARE
USING A VR HEADSET INSTEAD OF THE GIGANTIC DOME PROJECTIONS,
THE WHOLE THING IS SMALLER AND WE CAN MOVE IT MUCH MORE
DYNAMICALLY, IMPROVING THE FIDELITY LEVEL TO BE FULL-BLOWN
IN THE CART PIT. ED: HOW MUCH DOES A SINGLE SYSTEM
COST, THE HEADSET IN THE HOT COCKPIT RIG? >> IT'S BASICALLY REPLACING THE
TRADITIONAL SIMULATORS WHICH ARE AROUND 20 TIMES CHEAPER
THAN WHAT WAS THERE BEFORE. IT ALLOWS US TO PROVIDE MUCH
MORE SPACE FOR TRAINING TO ADDRESS THE PILOT SHORTAGE KIND
OF LIKE A NICE POSSIBILITY BECAUSE IT'S A MUCH SMALLER
FOOTPRINT. ED: WHAT'S INTERESTING ABOUT THIS
TECHNOLOGY IS IT'S ALREADY CERTIFIED IN EUROPE BY THE
EUROPEAN REGULATOR. IN THE U.S., THIS IS NOT FOR
CERTIFICATION. CAROLINE: HOW MANY HAVE YOU SOLD IN
EUROPE ALREADY? HAVE YOU SEEN A MARKET SHIFT OF
ROLLOUT? >> YEAH, WE QUALIFIED LAST YEAR 13 UNITS IN EUROPE.
WE HAVE TO QUALIFY EACH SINGLE DEVICE IN EUROPE.
IT'S REALLY TAKING OFF. PILOTS ARE TRAINING BUT ALSO
CHECKING ON THOSE UNITS. IT'S GOING UP MORE AND MORE,
REALLY TAKING OFF. WE ARE REALLY HAPPY THAT THE F8
-- THAT THE FAA IS LOOKING INTO THE NEW TECHNOLOGY.
THEY WILL PAVE THE WAY TO QUALIFY CAROLINE: CAROLINE:
IN THE U.S.. A FEW PUNS GOING ON CAROLINE:
THERE. CAROLINE:I'M INTERESTED IN WHAT AND HOW THEY
ARE TAKING OFF. IS IT ONLY ABOUT HELICOPTERS?
WHAT ABOUT NEW AREAS OF TECHNOLOGY AND THE FACT THAT WE
WILL HAVE A VERTICAL TAKEOFF AT SOME POINT? >> THE REASON WE WENT FOR THE
HELICOPTER IS THERE WAS A NEED IN THE MARKET.
THERE ARE A LOT OF SAFETY ISSUES AND MANY THINGS YOU
CANNOT DO AND THERE'S NO WAY TO TRAIN IN A SPECIFIC MANNER SO
THIS IS ONE REASON. THE SECOND REASON IS A HAVE --
IS A HELICOPTER IS FAR MORE DIFFICULT TO SIMULATE.
WE'RE ALSO GOING INTO THE FIXED WING MARKET AS WELL TO MAKE SURE THE TOOLS ARE GOOD AND IN
EUROPE IT'S ALREADY QUALIFIED. ED: WHAT IS THE TECHNOLOGICAL
ADVANTAGE OR SUPERIORITY OF YOUR HEADSET RELATIVE TO WHAT
META IS DOING WITH QUEST OR APPLE WITH VISION PRO? >> THAT'S A GOOD QUESTION. AT THE END, WE ARE NOT BUILDING
OUR OWN HEADSET. THE KEY THING IS WHAT'S OUT ON
THE MARKET. THE CHALLENGE IS TO QUALIFY.
HAVING A HEADSET ON, YOU DON'T SEE YOUR HANDS AND HOW DO YOU
OPERATE THE COCKPIT SO WE HAD TO DO SPECIAL TECHNOLOGY THERE. HOW CAN WE PROVE TO THE
AUTHORITIES THAT EVERYTHING IS WITHOUT ANY TRAUMATIC
DISTORTION SO THERE IS A LOT OF WORK AND THINKING TO BE DONE.
AT THE END, THE PILOT CAN MAKE USE OF THE FULL TOOLS ED:
JUST LIKE THE AIRCRAFT. WHO IS BUILDING THE HEADSET FOR
YOU? >> WE ARE HEADSET AGNOSTIC
RIGHT NOW. WE USING -- WE ARE USING ONE
BRAND THAT HAS THE RESOLUTION. WE ALSO HAVE OUR OWN MODIFIED
CHIP WHERE WE CAN MEET THE REGULATION SPECIFICATIONS. FROM THAT POINT OF VIEW, IT'S A
VISUAL THING, A VISUAL DEVICE THAT WE ARE USING BUT WE HAVE
THE ADVANTAGE OF HAVING THE THREE DIMENSION AND COMBINING
WITH A LOT OF TECHNOLOGY THAT A PERSON SEES HIM WORSE -- HIM OR
HERSELF AS A PILOT DOING THE OPERATION AND CAN OPERATE THEM.
CAROLINE: I WANT TO UNDERSTAND THE SUPPLY
AND DEMAND. HOW MUCH ARE YOUR HEADSETS
REALLY NEEDED AT THIS MOMENT? HOW MUCH JACK WE KNOW THERE'S A
STRIKE SITUATION WITH PILOTS, CAN YOU RECORD -- RECTIFY THAT? >> LET ME TALK TO THE NARROW
MARKET WHERE WE ARE NOW. EVERY HELICOPTER PILOT HAS TO
DO ALL SIX MONTHS OF TECH WHICH IS NORMALLY BEEN JUMP -- DONE
ON REAL AIRCRAFT WHICH IS VERY DANGEROUS. 20% OF THE ACCENTS ARE
HAPPENING DURING TRAINING AND CHECKING.
THAT WILL MOVE COMPLETELY ONTO THE SIMULATOR. IT'S PER PILOT WHICH IS ALREADY
HAVING THE LICENSE. IT'S A 2-4 HOURS PER YEAR AND
DOING ADDITIONAL SAFETY TRAINING SO IT'S ABOUT EIGHT
HOURS PER PILOT. THAT'S ONE VERY SMALL AREA. IN BASIC TRAINING LIKE FOR THE AIRLINER, THERE ARE UP TO
100,000 CHECKS THAT CAN BE DONE THROUGH THE SIMULATOR. CAROLINE:
SIMULATION AND THIS TECHNOLOGY COST MONEY, RIGHT? ED:
YES IN THE NEXT QUESTION IS, DO YOU NEED TO RAISE MORE MONEY
SOON TO FUND THIS? >> RIGHT NOW, WE ARE IN A GOOD
POSITION. WE ALREADY HAVE CUSTOMERS AND
WE SHOULD BE GETTING FURTHER CUSTOMERS. THE DEPENDING ON HOW FAST IT'S
TAKING OFF IN THE U.S., WE NEED TO SCALE AS FAST AS WE CAN. LAY WE LOOK FORWARD TO HOW WE
GET THROUGH THAT JOURNEY. CAROLINE:
THANKS SO MUCH FOR JOINING US. MEANWHILE, A STORY WILL
CONTINUE TO WATCH, THE COFOUNDER AND FORMER COO OF
ALTICE HAS BEEN DETAINED IN PORTUGAL IN RELATION TO
CORRUPTION. THREE PEOPLE WERE DETAINED
DURING A SERIES OF RAIDS AND OFFICES ACROSS THE COUNTRY
RELATED TO A THREE YEAR INVESTIGATION. CAROLINE: A VENTURE CAPITAL FIRM
INVESTING IN STARTUPS, LAST YEAR, THE VC HOSTED A NEW FUN,
$52 MILLION WITH COMPANIES LIKE PAYPAL AND OTHERS. WE TALK ABOUT HOW THIS MONEY IS
BEING ALLOCATED IN THIS CURRENT ENVIRONMENT.
HOW ARE YOU LOOKING TO KEEP FINDING THE RIGHT COMPANIES TO
BACK DESPITE THE ECONOMIC HEADWINDS? >> THESE COMPANIES HAVE BUILT
IN MANY DIFFERENT ENVIRONMENTS. A LOT OF THESE FOUNDERS HAVE
NOT BEEN ABLE TO GET CAPITAL VENTURE FUNDING AND HAD TO GET
REVENUE FROM THEIR CUSTOMERS EARLY ON. THEY HAVEN'T BEEN IN THE
TRADITIONAL COMPANIES IN SILICON VALLEY AND DON'T COME
FROM FAMILY WEALTH OR IVY LEAGUE SCHOOL SO A LOT OF THEM
HAD TO GET REVENUE FROM THEIR CUSTOMERS AND GET REVENUE FROM
OTHER SOURCES. FOR US, I BELIEVE IT IS THEIR
TIME TO SHINE AND THIS IS A GREAT OPPORTUNITY TO HIGHLIGHT
THE STARTUPS. THEY WILL SUCCEED IN ALL
MARKETS BUT PARTICULAR THIS MARKET. CAROLINE: GIVEN THAT YOU HAVE BEEN OUT
THERE LOOKING AT THESE SMALLER COMPANIES SINCE 2019, IS IT
BUSIER IN THAT SPACE NO GIVEN THAT SOME OF THE BIGGER FUNDS
HAVE TO WRITE ENORMOUS CHECKS IN THIS SPACE? >> IT'S ALWAYS BUSY AND THIS
MARKET IS BEEN PARTICULAR BUSY BECAUSE THERE HAD BEEN A
SLOWDOWN IN THE GROWTH MARKET WITH INVESTORS AND IPOS.
A LOT OF EARLY STAGE COMPANIES ARE RAISING MORE CAPITAL. WE HAVE SEEN A LOT MORE BRIDGE
ROUNDS AND OTHER COMPANIES COME TO US SO IT'S DEFINITELY BUSIER.
I WILL SAY IT'S A CORRECTION THAT NEEDED TO HAPPEN IN THE
LAST TWO YEARS WERE AN ANOMALY. I'VE BEEN DOING THIS FOR EIGHT
YEARS SO IT'S NICE TO GET BACK TO REAL FUNDAMENTALS AND REAL
REVENUE. ED:
WHAT ARE THE MAIN FACTORS WHEN YOU ARE SITTING IN FRONT OF A
FOUNDER THINKING ABOUT INVESTING IN THE PRE-SEED STAGE?
>> MANY TIME, FREE REVENUE AND PRE-NAMES OR EARLY ON, A LOT OF
IT IS THE PEOPLE SIDE LOOK FOR FOUNDERS THAT UNDERSTAND THEIR
MARKETS AND A UNIQUE WAY. WE ARE NOT EXCLUSIVE ABOUT
WHERE WE INVEST IN THESE FOUNDERS THAT FIND THIS UNIQUE
OPPORTUNITY THAT MANY SEE IS IT NICH ARE GROWING. THE CONSUMER DEMOGRAPHIC IS
CHANGING AND IT'S WHERE TRADITIONAL CUSTOMERS LIKE
FINTECH COMPANIES DON'T TYPICALLY KNOW OR UNDERSTAND
HOW THESE CERTAIN COMMUNITIES WORK SO THESE FOUNDERS
UNDERSTAND IT BETTER THAN ANYTHING ELSE.
WE ARE LOOKING FOR THIS UNIQUE FACTOR AND FOUNDERS THAT
UNDERSTAND CERTAIN MARKETS WHERE OTHERS HAVEN'T LIVED OR
CHOOSE TO UNDERSTAND. VERY EARLY ON, WE LOOK TO SEE
WHAT THEY HAVE DONE WITH VERY LITTLE BECAUSE WE ARE THE FIRST
INSTITUTIONAL CHECK IN SO WE LOOK FOR THE PATH TO FAIL OR
THE PATH TO REVENUE AND THE PLAN TO GET THERE.
THAT IS NOW SOMETHING THAT MANY PEOPLE ARE LOOKING AT.
THE LAST TWO YEARS, IT WAS NOT SOMETHING THAT A LOT OF PEOPLE
LOOKED AT. IT WAS MORE MOMENTUM DRIVEN. ED:
WHAT'S GOING ON IN CHICAGO WHERE YOU ARE IN THE PRE-SEED
ENVIRONMENT? A LOT OF DEALS HAPPENING? >> YES, CHICAGO IS A GREAT
MARKET FOR THE MIDWEST. THERE IS A LOT MORE NEW YORK FUNDS
COMING TO MARKET. WHEN I STARTED THE FIRM, THERE
IS LITTLE PRE-SEED MONEY. WE ARE GROWING AND THERE IS A
LOT MORE FUNDS COMING TO MARKET. MY LARGEST INVESTOR WAS THE
REASON WHY WE ARE HERE. THEY ARE INVESTING IN A LOT OF
VC FUNDS LIKE OURS THAT COME FROM NOT TRADITIONAL VC
BACKGROUNDS TYPICALLY OR ARE LOOKING AT NEW MARKETS IN A
DIFFERENT WAY. THEY ARE ABLE TO GET THE FIRST
CHECK IN A DOUBLE DOWN ON INVESTORS LIKE US THAT CAN SEE
A DIFFERENT SPACE AND DRIVE ALPHA. CAROLINE:
YOU HAD SIX YEARS AT GOLDMAN AND YOU'VE BEEN TESTED IN THE
VENTURE SPACE BEFORE. YOU'VE WRITTEN A LOT OF CHECKS.
YOU ARE ALSO TRYING TO BUILD THAT DIVERSIFICATION BY
ALLOCATING TO LATINO FOUNDERS THAT MAYBE HAVE BEEN OVERLOOKED?
ARE THEY GETTING MORE OVERLOOKED? >> IT'S A TOUGH MARKET FOR ALL
BUT PARTICULARLY WOMEN AND MINORITIES.
IT'S BEEN HARD AND IT'S NEVER BEEN EASY BUT IT'S PARTICULAR
HARDER NOW. THE WAY WE THINK ABOUT IT IS WE
ARE LOOKING AT MARKETS FOR RETURNS, FIRST AND FOREMOST. I
AM LATINA AND WE REPRESENT 1% OF ALL CAPITAL VENTURE PARTNERS
IN THE UNITED STATES. I GREW UP IN A LOW INCOME
ENVIRONMENT THAT I BELIEVE IS OUR SUPERPOWER. WE IDENTIFY THESE OPPORTUNITIES
AND THIS IS 95% OF THE POPULATION.
IT'S GREAT TO GET FOOD FESTER AS PART OF YOUR BUSINESS BUT
THERE ARE SO MANY OPPORTUNITIES FOR STRAIGHT COMMUNITIES AND
WOMEN TO CREATE WEALTH IN A DIFFERENT WAY.
PEOPLE STINK -- STILL THINK WE ARE NICHE.
THE NUMBERS WE HAD, ONE OF -- ONE OF IT EVERY FOUR KIDS
TODAY'S LATINO WE ARE GETTING BETTER EDUCATION THAN THE
PREVIOUS EDUCATION AND WE HAVE ONE OF THE HIGHEST GDP'S TO
SPEND MONEY AND PEOPLE DON'T KNOW HOW TO TARGET US SO WE SEE
THAT AS AN OPPORTUNITY IN THE MARKET TO REALLY DRIVE RETURNS
BUT ALSO FOR US TO UNIQUELY UNDERSTAND THESE BUSINESSES.
WE DON'T HAVE TO ASK IF OUR SPOUSE USES THE PRODUCT OR DO
RESEARCH ON THE MARKET, WE CAN GO IN THERE AND SOMETIMES WE
GET COMMENTS THAT THIS IS AN ALL WOMEN'S TEAM WHICH IS
FANTASTIC. WE ARE NOT EXCLUSIVE OR
INTENTIONAL SO WE CAN BRING A LOT OF DIFFERENT PERSPECTIVES ♪ ED: THE VIDEOGAME JUGGERNAUT
ROADBLOCKS -- ROBLOX IS SEARCHING FOR MORE DIVERSITY,
TELLING US THEIR EFFORTS HAVE NOT GONE FOR ENOUGH TO ADDRESS
THEIR CONCERN. SOME SAY THE MANAGERS
DISCOURAGE THEM FROM CONTINUING TO BRING UP QUESTIONS ABOUT
DIVERSITY WITH HIGHER UPS OR AT MEETINGS.
THIS IS THE RESULT OF THE MONTH-LONG INVESTIGATION INTO
THE TECH COMPANY. SOURCES TELL US B
THATUZUKI IS TAKING A HANDS-OFF APPROACH TO
DIVERSITY, WHAT HAVE WE LEARNED? >> ACCORDING TO 16 CURRENT AND
FORMER EMPLOYEES, WE'VE LEARNED THAT WHILE THE MAKEUP OF WOMEN
AT THE COMPANY IS ALIGNED WITH OTHER GAMING COMPANIES AT ABOUT
27% FEMALE, WOMEN AT THE COMPANY SAY DIVERSITY IS NOT
BEEN A PRIORITY FOR THE COMPANY CEO. MANY OF ALSO DESCRIBE
EXPERIENCES OF MARSHALL'S ASIAN THAT THEY HAVE THEMSELVES FELT
UNCOMFORTABLE WORKING AT ROBLOX. CAROLINE:
THE COMPANY HAS SAID ROBLOX IS CONCERNED WITH BUILDING A
DIVERSE WORKFORCE. THAT GOES AGAINST YOUR
REPORTING. WHY DO YOU THINK THEY HAVEN'T
BEEN DELIBERATE IN THIS MOMENT WHERE CULTURALLY, MANY ARE
TRYING TO FOCUS ON WHETHER OR NOT YOU ARE PROACTIVE OR NOT IN
SEEKING OUT DIVERSE TALENT TO WRITE TO THE TOP? >> THE GAMING INDUSTRY IN
GENERAL HAS VERY POOR NUMBERS WHEN IT COMES TO GENDER PARITY.
HALF OF GAMERS ARE WOMEN WHICH IS NOT REFLECTED IN THE MAKEUP
OF THESE COMPANIES INCLUDING PUBLICLY TRADED COMPANIES.
IF YOU ARE NOT ACTIVELY WORKING TO BOOST THESE NUMBERS
ESPECIALLY IF YOU ARE A COMPANY THAT'S EMPOWERED TO PAY A LOT
OF MONEY FOR TOP TALENT, THAT SHOWS THAT THE ISSUE HAS NOT
BEEN PRIORITIZED PARTICULARLY IF YOUR COMPANY HAS EXISTED FOR
20 YEARS. A LOT OF THESE GAMING COMPANIES
TAKE AN APPROACH WHERE THE BEST PEOPLE WILL SURFACE TO THE TOP
OF THE COMPANY. SOURCES SPEAKING WITH ME SAY
WHAT LOOKS LIKE THE BEST EMPLOYED ONE PERSON MIGHT NOT
REFLECT OTHER PEOPLE'S DEFINITION OF THE BEST EMPLOYEE.
ED: WHAT CHANGES WILL THEY MAKE? YOU REPORTED SOME STRUCTURAL
THINGS ABOUT THE HR DEPARTMENT THAT WILL HAVE TO CHANGE IN THE
SUMMER. >> ROBLOX HAS HIRED A GOOGLE
ENGINEER TO LEAD THIS DEPARTMENT AND IT MADE CHANGES
PRIOR TO THE ARTICLE COMING OUT AND HOPEFULLY, IT WILL CONTINUE
MAKING CHANGES IN ORDER TO BOOST DIVERSITY.
THAT HAS INCREASED THE PERCENTAGE OF WOMEN AT THE
COMPANY THE LAST COUPLE OF YEARS AND INCREASE THE
PERCENTAGE OF NONWHITE EMPLOYEES BUT WE ARE NOT AWARE
OF WHAT THE BREAKDOWN IS THERE. CAROLINE:
AMAZING PIECE, THANK YOU. WE'VE GOT BREAKING HEADLINES,
MICROSOFT CLEARS ANOTHER HURDLE AS THE U.K. COURT HOLDS THE U.K.
VETO CASE. THE MOVE COMES AS THE CM -- THE
CMA IS GIVING A SECOND CHANCE TO FIX CONCERNS AS THE U.K.
JUDGE SAYS HE WILL GIVE HIS REASONS FOR HOLDING THE CASE
LATER. EVERYONE'S BEEN WAITING FOR
BATED BREATH ON THIS. ED: THIS IS THE JUDGE GIVING A
CONDITIONAL ADJOURNMENT AND IT MEANS THE CMA AND MICROSOFT ARE
ON THE SAME PAGE WITH THIS. THEY CAN NOW GO AWAY AND WORK
OUT SOME COMPROMISES. SOURCES TELL US THAT ONE OPTION
MIGHT BE TO OFFER TO SELL OFF THE U.K.
CLOUD GAMING RIGHTS AND ALLOW THEM TO MOVE FORWARD.
JULY 18 IS THE MERGER AGREEMENT DEADLINE WHICH IS TOMORROW.
CAROLINE: DOES THIS ALLOW THEM TO GET
THERE? ED: THERE ARE SO MANY PROCEDURAL
THINGS HAPPENING IN THE FACT THAT THE CMA ALLOWED THEM TO GO
TO TRIBUNALS AND WORK IT OUT IN THE FIRST PLACE WAS A SURPRISE
SO WHO KNOWS? CAROLINE: ACTIVISION EXTENDING ITS OWN
SHARE PRICE, WE ARE AT A SESSION HIGH. WE WILL KEEP A CLOSE EYE ON
THIS.
