Bloomberg Audio Studios, podcasts, radio news.

Bloomberg Audio Studios, podcasts, radio news.

From Mahart where innovation, money and power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

From Mahart where innovation, money and power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

Live from New York and San Francisco. This is Bloomberg Technology, and it's M and a Monday. AMD to buy server maker z T Systems, and it's to fight back against Nvidia in the data center space.

Live from New York and San Francisco. This is Bloomberg Technology, and it's M and a Monday. AMD to buy server maker z T Systems, and it's to fight back against Nvidia in the data center space.

General Motors slashes software jobs after a big push to bolster its digital prowess.

General Motors slashes software jobs after a big push to bolster its digital prowess.

We have the Bloomberg exclusive.

We have the Bloomberg exclusive.

And sports streaming platform Fubo continues to surge after rivals were blocked from launching the Venue sports service a week before rollout.

And sports streaming platform Fubo continues to surge after rivals were blocked from launching the Venue sports service a week before rollout.

Let's get right to that AMD deal.

Let's get right to that AMD deal.

One piece of M and a four point nine billion dollar deal to acquire server maker ZT. It's the best performing stock on the Philadelphia Semiconductor Index again of almost three percent.

One piece of M and a four point nine billion dollar deal to acquire server maker ZT. It's the best performing stock on the Philadelphia Semiconductor Index again of almost three percent.

But it was actually a pretty.

But it was actually a pretty.

Slow snart start with that news breaking this morning.

Slow snart start with that news breaking this morning.

What's this about?

What's this about?

It's about AMD's move into being a systems vendor, which reminds us of another big name in that space.

It's about AMD's move into being a systems vendor, which reminds us of another big name in that space.

Carra It does in King's Person who covers MD in video of course, which is the elephant in the room that AMD is trying to tackle here.

Carra It does in King's Person who covers MD in video of course, which is the elephant in the room that AMD is trying to tackle here.

Yeah, no, that's absolutely right. In Video has basically made it easier for all of its big customers to adopt these systems. If you need a server, we'll give you a server design. If you need networking, we'll give you networking. We'll bundle everything together. We'll do a lot of the engineering for you to split this open. Now what AMD is saying, hey, we can do that too. Here are some engineering capabilities that we've taken a hold of them, and come and News argue.

Yeah, no, that's absolutely right. In Video has basically made it easier for all of its big customers to adopt these systems. If you need a server, we'll give you a server design. If you need networking, we'll give you networking. We'll bundle everything together. We'll do a lot of the engineering for you to split this open. Now what AMD is saying, hey, we can do that too. Here are some engineering capabilities that we've taken a hold of them, and come and News argue.

We've used these numbers before, but they're worth recounting. AMD will probably do four point five billion dollars of AI accelerator sales this year, while in Video will do one hundred billion dollars. And that gives you a sense of where we're at. But on AMD side, M and A is becoming a bit of a tool and a theme. This is a second deal in a number of weeks and months. What are they trying to add.

We've used these numbers before, but they're worth recounting. AMD will probably do four point five billion dollars of AI accelerator sales this year, while in Video will do one hundred billion dollars. And that gives you a sense of where we're at. But on AMD side, M and A is becoming a bit of a tool and a theme. This is a second deal in a number of weeks and months. What are they trying to add.

Yeah, it's all of these sort of engineering capabilities that go beyond their core competence, which is to design chips. They're basically saying, we will give you whether it's the software, the models, the designs of the actual servers themselves will give you. These things will help you to adopt our chips. It's a facilitator if you like, and it's really what n Video is doing.

Yeah, it's all of these sort of engineering capabilities that go beyond their core competence, which is to design chips. They're basically saying, we will give you whether it's the software, the models, the designs of the actual servers themselves will give you. These things will help you to adopt our chips. It's a facilitator if you like, and it's really what n Video is doing.

Systems vendor, you did a good job in your first answer, But what does that mean in reality in the real world when we talk about training AI models with high performance GPUs, what does that look like?

Systems vendor, you did a good job in your first answer, But what does that mean in reality in the real world when we talk about training AI models with high performance GPUs, what does that look like?

You have to think about a day center as not a room full of computers, but as a computer. It's almost like one entity in itself with all of the chips and all of the servers all connected tightly together, to all of the memory, to all of the networking. Putting all of that together is extremely difficult if you want it to work efficiently. So that's really what we're talking about here. There are only a few companies that can do that. Obviously, the Dells and the hps want to offer that expertise as well, but that is the sort of area that AMD is trying to step into.

You have to think about a day center as not a room full of computers, but as a computer. It's almost like one entity in itself with all of the chips and all of the servers all connected tightly together, to all of the memory, to all of the networking. Putting all of that together is extremely difficult if you want it to work efficiently. So that's really what we're talking about here. There are only a few companies that can do that. Obviously, the Dells and the hps want to offer that expertise as well, but that is the sort of area that AMD is trying to step into.

Let's just talk about z t ZT systems. However, US Brits are going to say it on the show. It's a New Jersey based company. What do they keep, what do they sell off? Who are the executives who come over?

Let's just talk about z t ZT systems. However, US Brits are going to say it on the show. It's a New Jersey based company. What do they keep, what do they sell off? Who are the executives who come over?

Yeah, no, that's a good question, and there's a lot of confusion on the call this morning as to what exactly is going on. Company that has about ten billion in revenue. That revenue is primarily from selling hardware. The manufacturing operations that produce that high where are going to be sold by AMD? AMD just wants about a thousand engineers and those engineering leaders who basically show their customers how to better implement AMD based systems. So there's going to be a big breakup, and you know, AMD is not going into the business of making servers.

Yeah, no, that's a good question, and there's a lot of confusion on the call this morning as to what exactly is going on. Company that has about ten billion in revenue. That revenue is primarily from selling hardware. The manufacturing operations that produce that high where are going to be sold by AMD? AMD just wants about a thousand engineers and those engineering leaders who basically show their customers how to better implement AMD based systems. So there's going to be a big breakup, and you know, AMD is not going into the business of making servers.

We talked about this being m and a Monday.

We talked about this being m and a Monday.

There are some other big deals happening across different industries.

There are some other big deals happening across different industries.

But how quisitive is Lisa Sue at this point?

But how quisitive is Lisa Sue at this point?

Well, they put that in the release. They said, look, we've spent you know, a billion dollars or so in the last twelve months on acquiring capabilities that they're going to make us a better company. And I think it's reflective of the market that they're trying to push further and further into They've got more money these days. Right, They're a very solid company. That's doing well. They're solidly profitable, have been for years, and the revenues are growing. So she's trying to use that financial clout to basically make a company stronger.

Well, they put that in the release. They said, look, we've spent you know, a billion dollars or so in the last twelve months on acquiring capabilities that they're going to make us a better company. And I think it's reflective of the market that they're trying to push further and further into They've got more money these days. Right, They're a very solid company. That's doing well. They're solidly profitable, have been for years, and the revenues are growing. So she's trying to use that financial clout to basically make a company stronger.

And in the time we've been speaking, AMD has just hit a session high up three point four percent this Monday morning.

And in the time we've been speaking, AMD has just hit a session high up three point four percent this Monday morning.

Glomosi and King, thank you very much.

Glomosi and King, thank you very much.

All comes is Investors are becoming more nervous about some Nvidia downside tech profits are slowing. Tangible results from investments in AI remain to be seen. Americprice Financial private wealth advisor Jason Betts discusses the investor's view. And we've talked about how the market in some ways is treading water. In the first instance, the Jackson Hole this Friday, but actually August twenty eighth and in video earnings is a macro level event.

All comes is Investors are becoming more nervous about some Nvidia downside tech profits are slowing. Tangible results from investments in AI remain to be seen. Americprice Financial private wealth advisor Jason Betts discusses the investor's view. And we've talked about how the market in some ways is treading water. In the first instance, the Jackson Hole this Friday, but actually August twenty eighth and in video earnings is a macro level event.

How do you approach that?

How do you approach that?

I mean, the first thing I'll say is, you know, there's a saying that the devil's in the details, and right now the devil is in the data as far as the market is concerned, and that's actually refreshing in my opinion. We've seen a fair amount of market complacency through much of this year. Obviously, we saw the route here at two and a half three weeks ago between you know, weaker tech guidance, between the very lackluster jobs report which carried over in the Monday, with the young carry trade exacerbating all of that, the market through a temperate tantrum. We've seen the data improve here a bit, actually seen some pretty good data over the past couple of weeks, and the market he's.

I mean, the first thing I'll say is, you know, there's a saying that the devil's in the details, and right now the devil is in the data as far as the market is concerned, and that's actually refreshing in my opinion. We've seen a fair amount of market complacency through much of this year. Obviously, we saw the route here at two and a half three weeks ago between you know, weaker tech guidance, between the very lackluster jobs report which carried over in the Monday, with the young carry trade exacerbating all of that, the market through a temperate tantrum. We've seen the data improve here a bit, actually seen some pretty good data over the past couple of weeks, and the market he's.

Clearly reacted positively to that.

Clearly reacted positively to that.

So moving forward, everyone's going to have their eyes as you said before on Jackson holl They're gonna have it. We're gonna have our eyes on just just the rest of the tech earnings here as well. So I'll have my eyes on that and other than that's pretty much business as usual.

So moving forward, everyone's going to have their eyes as you said before on Jackson holl They're gonna have it. We're gonna have our eyes on just just the rest of the tech earnings here as well. So I'll have my eyes on that and other than that's pretty much business as usual.

In the first part of the earning season. The capital expenditures data from the Hyperscalers was a clear story. The bit that's less clear is the top line growth in all of the Hyperscaler's customers.

In the first part of the earning season. The capital expenditures data from the Hyperscalers was a clear story. The bit that's less clear is the top line growth in all of the Hyperscaler's customers.

Does that worry you?

Does that worry you?

Do you sort of analyze that part of the market.

Do you sort of analyze that part of the market.

Yeah, I mean there's always going to be a concern about when valuations seem like they might be stretched, and we're always going to be keeping a sharp eye both on top line and and net earnings. So again, I'm gonna have our eyes on all that. I think right now that we were in a position where, you know, if I would encourage clients to take a look at their portfolio and look under the hood and look carefully for any over concentrates in both the tech space as well as the AI space. Investors have gotten away from that over the past couple of years, and they've actually been rewarded for that. And just because you've been rewarded for it over the last year or two doesn't mean that you should you should continue to not do it. So I would encourage investors right now to really look under the hood. Anything that's a high flyer, that's that's making up too much of a concentration of portfolio, consider trimming it, regardless of what we see with data unfold moving forward.

Yeah, I mean there's always going to be a concern about when valuations seem like they might be stretched, and we're always going to be keeping a sharp eye both on top line and and net earnings. So again, I'm gonna have our eyes on all that. I think right now that we were in a position where, you know, if I would encourage clients to take a look at their portfolio and look under the hood and look carefully for any over concentrates in both the tech space as well as the AI space. Investors have gotten away from that over the past couple of years, and they've actually been rewarded for that. And just because you've been rewarded for it over the last year or two doesn't mean that you should you should continue to not do it. So I would encourage investors right now to really look under the hood. Anything that's a high flyer, that's that's making up too much of a concentration of portfolio, consider trimming it, regardless of what we see with data unfold moving forward.

Well, broadly, should you be selling down technology when we're still only about five percent off of the record highs than as that one hundred.

Well, broadly, should you be selling down technology when we're still only about five percent off of the record highs than as that one hundred.

I mean, I think that if we just look at valuations as a whole, you know, these tech stocks sold off twenty to thirty percent, and a lot of them at those levels, we're still trading at sixty times earnings. So now we're bucked back almost to the all time you know, back to the all time highs or five percent below that we need to see, in my opinion, continued strong, very strong earnings and overall data for that trajectory to continue, in my opinion. Otherwise, I think we're going to start to see some hangover effect and we're going to start to see, in my opinion, maybe a market that gets a little bit more sobered on this AI trade because for me, now we just we're treating it like it's going to be basically a money trade and we're not paying attention to any of the expenses or what are the costs, what are the taxation regulation, consolidation competition, what's that going to look like, what's that going to do to net profits? So Yeah, so that I guess that's really all I have to say about that.

I mean, I think that if we just look at valuations as a whole, you know, these tech stocks sold off twenty to thirty percent, and a lot of them at those levels, we're still trading at sixty times earnings. So now we're bucked back almost to the all time you know, back to the all time highs or five percent below that we need to see, in my opinion, continued strong, very strong earnings and overall data for that trajectory to continue, in my opinion. Otherwise, I think we're going to start to see some hangover effect and we're going to start to see, in my opinion, maybe a market that gets a little bit more sobered on this AI trade because for me, now we just we're treating it like it's going to be basically a money trade and we're not paying attention to any of the expenses or what are the costs, what are the taxation regulation, consolidation competition, what's that going to look like, what's that going to do to net profits? So Yeah, so that I guess that's really all I have to say about that.

Okay, Jason, I'm reading between the lines that you feel there's hype here in AI. So if you want to remain committed in technology, but you don't want to remain so committed on certain AI high flyers, is there any where to put it?

Okay, Jason, I'm reading between the lines that you feel there's hype here in AI. So if you want to remain committed in technology, but you don't want to remain so committed on certain AI high flyers, is there any where to put it?

Yeah?

Yeah?

And this is I mean, this is going to be ironic, but I say this because their valuations are also appear to be stretched, and our only you know, they're only probably about five percent off their highs, and that would be just cybersecurity, but the difference being, in my opinion, much clearer picture moving forward on tangible earnings. So we know there's bad guys that are going to continue to get better regardless of whether the AI trajectory moves at this kind of what I think is a perfect case scenario is what the market is pricing in right now. So if that happens, we're going to need a lot more cybersecurity. And if it doesn't happen, the bad guys are still going to be out there working hard and getting better. And so I think for a long term place, cybersecurity is probably the strongest. And also if things get a little a little shaki or weird, might be actually a bit more defensive in the technology space at this.

And this is I mean, this is going to be ironic, but I say this because their valuations are also appear to be stretched, and our only you know, they're only probably about five percent off their highs, and that would be just cybersecurity, but the difference being, in my opinion, much clearer picture moving forward on tangible earnings. So we know there's bad guys that are going to continue to get better regardless of whether the AI trajectory moves at this kind of what I think is a perfect case scenario is what the market is pricing in right now. So if that happens, we're going to need a lot more cybersecurity. And if it doesn't happen, the bad guys are still going to be out there working hard and getting better. And so I think for a long term place, cybersecurity is probably the strongest. And also if things get a little a little shaki or weird, might be actually a bit more defensive in the technology space at this.

Moment, Jason, do you include crowd strike in that?

Moment, Jason, do you include crowd strike in that?

Can't talk about individual names unfortunately, but I would just say as a whole you know, would say cybersecurities.

Can't talk about individual names unfortunately, but I would just say as a whole you know, would say cybersecurities.

You know, in my opinion is it's a pretty big thing.

You know, in my opinion is it's a pretty big thing.

It sounds like everything we've discussed so far right that it's the economic data that ties all of this together, and so your action relating to technology sector depends on that day. But why because of your view of what the FED will it won't do?

It sounds like everything we've discussed so far right that it's the economic data that ties all of this together, and so your action relating to technology sector depends on that day. But why because of your view of what the FED will it won't do?

So I think I think what I heard was just asking about, you know, regarded to the FED and what it will up will not do. My personal opinion is that regardless of what the FED does. First off, I think we're going to get a quarterbase right, We're gonna get twenty five basis points in September. I think it's kind of funny that that not funny in a good way necessarily, but that you know, a few weeks ago we had calls for emergency rate cuts and definitely fifty bases points, and then you know, all of a sudden, the sky was no longer falling. All of a sudden, the data wasn't as bad as it seems. And so, you know, regardless of what the FED does, I don't think the Fed. I think the FED does twenty five bases points and we may see more. I think we're gonna get a better uh, we're gonna have a better idea about that obviously after Friday.

So I think I think what I heard was just asking about, you know, regarded to the FED and what it will up will not do. My personal opinion is that regardless of what the FED does. First off, I think we're going to get a quarterbase right, We're gonna get twenty five basis points in September. I think it's kind of funny that that not funny in a good way necessarily, but that you know, a few weeks ago we had calls for emergency rate cuts and definitely fifty bases points, and then you know, all of a sudden, the sky was no longer falling. All of a sudden, the data wasn't as bad as it seems. And so, you know, regardless of what the FED does, I don't think the Fed. I think the FED does twenty five bases points and we may see more. I think we're gonna get a better uh, we're gonna have a better idea about that obviously after Friday.

But regardless of the fed's movement.

But regardless of the fed's movement.

I'm not convinced that necessarily has a huge impact on stocks over the short over the short term.

I'm not convinced that necessarily has a huge impact on stocks over the short over the short term.

Amer of Price Financial Private Wealth of Jason Bett's some calls there, We thank you for it now. British tech entrepreneur Mike Lynch, of course, the CEO of software firm Autonomy, as was, is among the people missing after a super yacht sunk off the coast of Sicily and Italy. Scorne into a source, one person has died. Six others, including four UK nationals, are missing US after the fifty six meter bog called Bayesian sank this morning near Porticello.

Amer of Price Financial Private Wealth of Jason Bett's some calls there, We thank you for it now. British tech entrepreneur Mike Lynch, of course, the CEO of software firm Autonomy, as was, is among the people missing after a super yacht sunk off the coast of Sicily and Italy. Scorne into a source, one person has died. Six others, including four UK nationals, are missing US after the fifty six meter bog called Bayesian sank this morning near Porticello.

It's all according to Associated Press.

It's all according to Associated Press.

Ninch's wife, Angela Bacaraz is among those rescued.

Ninch's wife, Angela Bacaraz is among those rescued.

The person said, ed.

The person said, ed.

Okay, coming up on the show, GM is laying off more than one thousand software engineers.

Okay, coming up on the show, GM is laying off more than one thousand software engineers.

Will have all the details next.

Will have all the details next.

And Apple is working to make another key component in house.

And Apple is working to make another key component in house.

But is the investment worth it?

But is the investment worth it?

We'll discuss this is Bloomberg Technology. General Motors is cutting more than one thousand software engineers as the automaker moves to lean up its software and services organization. That, according to a source, with more than six hundred of these layoffs to happen in Michigan.

We'll discuss this is Bloomberg Technology. General Motors is cutting more than one thousand software engineers as the automaker moves to lean up its software and services organization. That, according to a source, with more than six hundred of these layoffs to happen in Michigan.

Bloomberg's Detroit Burreier chief.

Bloomberg's Detroit Burreier chief.

David Wells broke this story and joins us, Now, you've written a lot about GM's big push into software and services, and it seems, David, like they're kind of peeling that back a bit.

David Wells broke this story and joins us, Now, you've written a lot about GM's big push into software and services, and it seems, David, like they're kind of peeling that back a bit.

Yeah.

Yeah.

I think this's the bigger picture here is they're peeling back on a lot of these big technology bits, and they kind of understand the bigger context here. You have to go back a few years to their investor day presentation when they said they were going to double revenue of the company about twenty thirty and that was with electric vehicles, autonomous vehicles, and these software related services. And they never really explained what those were exactly, nor did they really give examples. But with the electric Chevy Blazer, we saw that they had things they could you charging and plan it on your route. They had their own version of car Play actually sort of a competitor or replacement for it, and this group developed stuff like that as well as a system that would control the car breaking, battery management, all of it. And you know, they didn't say this. What they said is they want to streamline the group so they can move faster. But I have to think that with them deling some of their electric vehicle production, canceling at least one EV, maybe more, and with the slowdown in autonomy, that maybe they just don't need as many of these people because they aren't going to be doing quite as much as they thought they were when they hired them all.

I think this's the bigger picture here is they're peeling back on a lot of these big technology bits, and they kind of understand the bigger context here. You have to go back a few years to their investor day presentation when they said they were going to double revenue of the company about twenty thirty and that was with electric vehicles, autonomous vehicles, and these software related services. And they never really explained what those were exactly, nor did they really give examples. But with the electric Chevy Blazer, we saw that they had things they could you charging and plan it on your route. They had their own version of car Play actually sort of a competitor or replacement for it, and this group developed stuff like that as well as a system that would control the car breaking, battery management, all of it. And you know, they didn't say this. What they said is they want to streamline the group so they can move faster. But I have to think that with them deling some of their electric vehicle production, canceling at least one EV, maybe more, and with the slowdown in autonomy, that maybe they just don't need as many of these people because they aren't going to be doing quite as much as they thought they were when they hired them all.

Sometimes we were showing the statement from GM, which basically confirms the broad idea of cuts, that doesn't sort of quantify them. Does GM have a business yet? David's selling software and services, you know, it is a big focus of the pure play EV names, but also the legacy OEMs as well. How much money can you make selling updates?

Sometimes we were showing the statement from GM, which basically confirms the broad idea of cuts, that doesn't sort of quantify them. Does GM have a business yet? David's selling software and services, you know, it is a big focus of the pure play EV names, but also the legacy OEMs as well. How much money can you make selling updates?

Essentially, they don't have much of a business.

Essentially, they don't have much of a business.

And they've had on Star for years, which does it has had some concierge services and navigation and that sort of thing over the years, and they do still make money off of on Star, and they've tried certain things with linking up their drivers to Starbucks or other vendors like that. But if they still make any money off of that, it's negligible. It's something they do want to build. Then the whole idea behind this what they used to call Ultify. Now it's just their internal software system was to control the entire car, not give control of that to Apple or Google or anybody else, mostly Apple being the one they wanted to avoid because if there was money to be made off of services, they'd be able to do it. And they still may, but it's just not something that's really generating revenue now because it's so new, and it looks like they're going to be raining and in a bit interesting that.

And they've had on Star for years, which does it has had some concierge services and navigation and that sort of thing over the years, and they do still make money off of on Star, and they've tried certain things with linking up their drivers to Starbucks or other vendors like that. But if they still make any money off of that, it's negligible. It's something they do want to build. Then the whole idea behind this what they used to call Ultify. Now it's just their internal software system was to control the entire car, not give control of that to Apple or Google or anybody else, mostly Apple being the one they wanted to avoid because if there was money to be made off of services, they'd be able to do it. And they still may, but it's just not something that's really generating revenue now because it's so new, and it looks like they're going to be raining and in a bit interesting that.

Of course, to stop the money flowing to Apple, they took executives from Apple, was it, David Richardson and another joining to help lead the software team. Maybe they're thinking about just doing all of this more with less.

Of course, to stop the money flowing to Apple, they took executives from Apple, was it, David Richardson and another joining to help lead the software team. Maybe they're thinking about just doing all of this more with less.

Well, they are, certainly, and GM has described it basically as a streamlining. And look, there are times when companies launch into some big initiative like this and they just hire too many people and they realize once they kind of get into the meat of it, that they've just they can develop what they need without so many of them. And this is a pretty significant cut though more than a thousand people, most of them being in Michigan. It's quite a group to trim out.

Well, they are, certainly, and GM has described it basically as a streamlining. And look, there are times when companies launch into some big initiative like this and they just hire too many people and they realize once they kind of get into the meat of it, that they've just they can develop what they need without so many of them. And this is a pretty significant cut though more than a thousand people, most of them being in Michigan. It's quite a group to trim out.

If it's just streamlining, well, said David Welch.

If it's just streamlining, well, said David Welch.

Thank you, and let's turn our attention to Apple at the moment because it's Hardware Technologies group, the chip builders behind the company's in house processes, is working on a new critical component. The payoff may not be seen for years. Right now, iPhones use cellular modems built by Qualcom. It's a reliable, best in class chip for basically most of the global smartphone The strength thought in the in to Com. Apple hopes to have a better in house replacement for more writing about it is reingbods Mark German And this is a longer term bet.

Thank you, and let's turn our attention to Apple at the moment because it's Hardware Technologies group, the chip builders behind the company's in house processes, is working on a new critical component. The payoff may not be seen for years. Right now, iPhones use cellular modems built by Qualcom. It's a reliable, best in class chip for basically most of the global smartphone The strength thought in the in to Com. Apple hopes to have a better in house replacement for more writing about it is reingbods Mark German And this is a longer term bet.

When will the payoff come?

When will the payoff come?

Why have they shifted away from Qualcom in the long term?

Why have they shifted away from Qualcom in the long term?

Now, this is an interesting one. The project to develop their own cellular modem really started because they were upset with how much Qualcom was charging them. The royalty fees that Qualcom had been charging Apple for years is something that the company is simply not used to. Apple typically gets the best bang for their buck. They typically are the ones that are the more controlling in the supplier relationships. But that sort of was spun on its head with Qualcomm, and Apple really had no choice but to work with Qualcomm because if Apple wanted to move to five G, there really was no other game in town other than the chip maker from San Diego, And so that was really the start back in twenty eighteen when they started working.

Now, this is an interesting one. The project to develop their own cellular modem really started because they were upset with how much Qualcom was charging them. The royalty fees that Qualcom had been charging Apple for years is something that the company is simply not used to. Apple typically gets the best bang for their buck. They typically are the ones that are the more controlling in the supplier relationships. But that sort of was spun on its head with Qualcomm, and Apple really had no choice but to work with Qualcomm because if Apple wanted to move to five G, there really was no other game in town other than the chip maker from San Diego, And so that was really the start back in twenty eighteen when they started working.

On this modem.

On this modem.

Development ramped up around twenty twenty. They acquired Intel's modem group for about one billion dollars twenty nineteen to really jumpstart that development. But it's interesting because unlike the move to Apple in house processors in the Mac, unlike the move to Apple in house processors for earbuds, for smart watches, for set top boxes, the modem from Qualcom is actually best in class. At this point, You're not going to bring better performance to the table than Qualcomm, and if you do, this is not something that can be noticed by the consumer.

Development ramped up around twenty twenty. They acquired Intel's modem group for about one billion dollars twenty nineteen to really jumpstart that development. But it's interesting because unlike the move to Apple in house processors in the Mac, unlike the move to Apple in house processors for earbuds, for smart watches, for set top boxes, the modem from Qualcom is actually best in class. At this point, You're not going to bring better performance to the table than Qualcomm, and if you do, this is not something that can be noticed by the consumer.

So the bet here.

So the bet here.

Is that this is going to save costs and then maybe five years from now, over time, being able to shrink that modem down to an Apple sized chip to put it on the same motherboard and the same SoC The system on a chip is the existing Apple components. Maybe you can shrink down the internals of the phone to add other new features to create new form factors. So it's a mix of costs now and hopefully new designs later.

Is that this is going to save costs and then maybe five years from now, over time, being able to shrink that modem down to an Apple sized chip to put it on the same motherboard and the same SoC The system on a chip is the existing Apple components. Maybe you can shrink down the internals of the phone to add other new features to create new form factors. So it's a mix of costs now and hopefully new designs later.

Mak You also went back to the idea of a table top robot in this week's power On. Just explain that the basic design we don't have a visual right that. I think it's in base terms worth telling the Bloomberg Technology audience what it is they're planning to bring to us.

Mak You also went back to the idea of a table top robot in this week's power On. Just explain that the basic design we don't have a visual right that. I think it's in base terms worth telling the Bloomberg Technology audience what it is they're planning to bring to us.

So, Apple's next big thing is robotics, and the first robotics device you're going to see from Apple is going to be a tabletop robot. It's essentially a gigantic iPad screen connected to a robotic arm or a robotic conneck, and the display can move to follow your head movements. If I'm on a FaceTime call with someone and that other person begins speaking that's in the room with me, the display can know that it's them speaking and tilt towards them. If you are on a FaceTime call with someone else, and let's say that person on the other line is nodding their head or making various head movements, that screen will be able to follow the head movements of that other person. You'll be able to tell the device to look at you, and it will all turn towards you and so this is a robotics exercise. The company's aiming to get down to a price of around one thousand dollars. The big picture here is that Apple's trying a lot of new stuff, right, and I think one day we're going to be having more in depth discussions about mobile robots similar to the Amazon astro. I think the idea of Apple getting to humanoid robots is also a real possibility a decade from now.

So, Apple's next big thing is robotics, and the first robotics device you're going to see from Apple is going to be a tabletop robot. It's essentially a gigantic iPad screen connected to a robotic arm or a robotic conneck, and the display can move to follow your head movements. If I'm on a FaceTime call with someone and that other person begins speaking that's in the room with me, the display can know that it's them speaking and tilt towards them. If you are on a FaceTime call with someone else, and let's say that person on the other line is nodding their head or making various head movements, that screen will be able to follow the head movements of that other person. You'll be able to tell the device to look at you, and it will all turn towards you and so this is a robotics exercise. The company's aiming to get down to a price of around one thousand dollars. The big picture here is that Apple's trying a lot of new stuff, right, and I think one day we're going to be having more in depth discussions about mobile robots similar to the Amazon astro. I think the idea of Apple getting to humanoid robots is also a real possibility a decade from now.

Blimberg's Mark Gumman terrific.

Blimberg's Mark Gumman terrific.

It's tak crypto because Bitcoin and actually the wider crypto market, they're not saying some sharp losses this month, even as global stocks are pushed back towards record highs. Now Look, bitcoin has been falling roughly ten percent in the month of August, and with the same period though global stocks. If you look at the MSCI inex, it's up more than one percent, Gold is all time highs. Even the global bond gauge is up nearly two percent. So why the lagging lumotion? Ai Bassek is here for more. It's supplies side, right, This is a potential for government sales.

It's tak crypto because Bitcoin and actually the wider crypto market, they're not saying some sharp losses this month, even as global stocks are pushed back towards record highs. Now Look, bitcoin has been falling roughly ten percent in the month of August, and with the same period though global stocks. If you look at the MSCI inex, it's up more than one percent, Gold is all time highs. Even the global bond gauge is up nearly two percent. So why the lagging lumotion? Ai Bassek is here for more. It's supplies side, right, This is a potential for government sales.

There were a.

There were a.

Lot of overhangs into the summer. If you think about it. But the other problem here is what is the next catalyst. If you got about the beginning of the year that drove bitcoin to new record highs included that spot bitcoin ETF, and now you do see financial advisors at least thinking of or starting to adopt comfort and investing in those spot bitcoin ETFs.

Lot of overhangs into the summer. If you think about it. But the other problem here is what is the next catalyst. If you got about the beginning of the year that drove bitcoin to new record highs included that spot bitcoin ETF, and now you do see financial advisors at least thinking of or starting to adopt comfort and investing in those spot bitcoin ETFs.

Maybe they'll buy the dip.

Maybe they'll buy the dip.

Seriously, there has not been enough dip buyers here to bring us back to those record highs. We're floating below sixty thousand. Still, there are a few things going on when you talk about the supply side here. There was a news in recent days Arkham Intelligence finding that the US government has moved about six hundred million worth of confiscated bitcoin from Silk Road over to a coin base wallet. Now, the question is are they selling those bitcoin off or not. The question becomes especially interesting when you think about Donald Trump's proposal here to create a national Bitcoin.

Seriously, there has not been enough dip buyers here to bring us back to those record highs. We're floating below sixty thousand. Still, there are a few things going on when you talk about the supply side here. There was a news in recent days Arkham Intelligence finding that the US government has moved about six hundred million worth of confiscated bitcoin from Silk Road over to a coin base wallet. Now, the question is are they selling those bitcoin off or not. The question becomes especially interesting when you think about Donald Trump's proposal here to create a national Bitcoin.

Reserve that would therefore be backed by confiscated bitcoin. Remember, the US.

Reserve that would therefore be backed by confiscated bitcoin. Remember, the US.

Has twelve billion worth, we're only talking about six hundred million more recently, the question is whether they're actually selling it. But yet, I will go back to this issue here of what is the next catalyst at what point, do people buy not sell?

Has twelve billion worth, we're only talking about six hundred million more recently, the question is whether they're actually selling it. But yet, I will go back to this issue here of what is the next catalyst at what point, do people buy not sell?

What would cause them too?

What would cause them too?

Real Questionale this just bitcoin or the market broadly?

Real Questionale this just bitcoin or the market broadly?

The market broadly, you do have bitcoin and other assets. Top one hundred Digital assets recently dropped on August fifth to the worst level since November of twenty twenty two.

The market broadly, you do have bitcoin and other assets. Top one hundred Digital assets recently dropped on August fifth to the worst level since November of twenty twenty two.

All of the DNC gets started.

All of the DNC gets started.

By the way, there's a lot of questions about whether the Harris administration would be tough on bitcoin. So interesting days.

By the way, there's a lot of questions about whether the Harris administration would be tough on bitcoin. So interesting days.

Ahead such a PROTIONALI Bassett because that's exactly what we're talking next.

Ahead such a PROTIONALI Bassett because that's exactly what we're talking next.

The DNC in Chicago.

The DNC in Chicago.

This blom Meg Technology. Welcome back to blouem Meg Technology. I'm Caroline heid in New York and.

This blom Meg Technology. Welcome back to blouem Meg Technology. I'm Caroline heid in New York and.

I met Ludlow in San Francisco.

I met Ludlow in San Francisco.

Let's talk about the DNC end because it is kicking off as Kamala Harris is kind of riding a wave of momentum. Meanwhile, Republicans they're working to leverage that advantage with voters by attacking.

Let's talk about the DNC end because it is kicking off as Kamala Harris is kind of riding a wave of momentum. Meanwhile, Republicans they're working to leverage that advantage with voters by attacking.

Her new economic agenda.

Her new economic agenda.

I want to discuss what to expect in this week, in particular, Kitty Lines is there. I'm interested Katie as we think about well from a tech perspective, with thinking about crypto and AI, but well broadly what are generally be waiting to hear from the DNC.

I want to discuss what to expect in this week, in particular, Kitty Lines is there. I'm interested Katie as we think about well from a tech perspective, with thinking about crypto and AI, but well broadly what are generally be waiting to hear from the DNC.

Well, this is certainly going to be defined by energy and enthusiasm, as the Democratic Party really has been reinvigorated by the candidacy of Kamala Harris. As it was just four weeks ago that President Biden decided to no longer seek reelection and she became the Democratic nominee that is already official thanks to a virtual roll call that happened earlier this month. So really this week is all about ceremony and the pomp and the circumstance and really trying to unite the party around her.

Well, this is certainly going to be defined by energy and enthusiasm, as the Democratic Party really has been reinvigorated by the candidacy of Kamala Harris. As it was just four weeks ago that President Biden decided to no longer seek reelection and she became the Democratic nominee that is already official thanks to a virtual roll call that happened earlier this month. So really this week is all about ceremony and the pomp and the circumstance and really trying to unite the party around her.

Now President Biden himself.

Now President Biden himself.

Will be speaking this evening in a speech that may be part about his legacy but also pitching it forward to the kind of president he believes the person he chose as Vice President Kamala Harris could be. He will then be getting out of town, but we're going to have, of course, a number of other high profile Democrats speaking throughout the week, with Tim Walls, presidential nominee, speaking Wednesday, and then culminating in Harris's address on Thursday. The question will be how much that address really is about policy. We're starting to get more on policy from her. She of course, outlined her economic agenda last Friday in North Carolina. Already it is being met by criticism by Republicans, even some economists, and Donald Trump over this weekend was trying to characterize her as Comrade Kamalist, suggesting some of the policies, including when it comes to price gouging, could be seen as communists more so than capitalists. So certainly you're going to see those kind of attacks coming from the other side of the aisle this week, while the Democratic side of the isle is going to be here in Chicago trying to reinforce their candidate that does have some momentum coming into this is. New polling, including one from The Washington Post, ABC and IPSOS this weekend, shows her leading Trump nationally by four points, forty nine percent to forty five percent.

Will be speaking this evening in a speech that may be part about his legacy but also pitching it forward to the kind of president he believes the person he chose as Vice President Kamala Harris could be. He will then be getting out of town, but we're going to have, of course, a number of other high profile Democrats speaking throughout the week, with Tim Walls, presidential nominee, speaking Wednesday, and then culminating in Harris's address on Thursday. The question will be how much that address really is about policy. We're starting to get more on policy from her. She of course, outlined her economic agenda last Friday in North Carolina. Already it is being met by criticism by Republicans, even some economists, and Donald Trump over this weekend was trying to characterize her as Comrade Kamalist, suggesting some of the policies, including when it comes to price gouging, could be seen as communists more so than capitalists. So certainly you're going to see those kind of attacks coming from the other side of the aisle this week, while the Democratic side of the isle is going to be here in Chicago trying to reinforce their candidate that does have some momentum coming into this is. New polling, including one from The Washington Post, ABC and IPSOS this weekend, shows her leading Trump nationally by four points, forty nine percent to forty five percent.

Katie, the principle difference between what's happening this week in DNC and R and C is that we have the ticket.

Katie, the principle difference between what's happening this week in DNC and R and C is that we have the ticket.

Right Harris Waltz.

Right Harris Waltz.

But all the areas of unknown or surprise that make each of the days exciting or something specifically to tune in.

But all the areas of unknown or surprise that make each of the days exciting or something specifically to tune in.

For, well, there always is room for surprise that I think we've come to learn that in this election cycle in particular, as many of us have been surprised on quite a few many occasions. What could be more uncertain about this convention in particular is the degree to which protests over the war in Gaza could be disruptive. We've already started to see them here in Chicago. There were some last night that were causing quite some issues with traffic, especially for me as I tried to get to the hotel, and there are more planned throughout the duration of the week. The question is going to be to what extent that remains outside of the actual convention itself, and to what extent may bleed into the actual United Center where the proceedings are taking place, how disrupted they would meet could be, whether or not there would be there could be any violence. We haven't had reports of that yet, but certainly that is something we're keeping a close eye on, as that is one of the very tangible divisions within this Democratic Party. While it has been able to really unite around Harris to a large extent, especially when we're thinking about party leadership sitting lawmakers, there does remain that deep division within the Democratic electorate itself, as evidenced by the fact that some delegates were showing up here in Chicago as uncommitted because many voters and states, including Michigan, decided to elect a vote for uncommitted or at the equivalent, over President Biden over protest of that ongoing war between Israel and Hamas kayleie.

For, well, there always is room for surprise that I think we've come to learn that in this election cycle in particular, as many of us have been surprised on quite a few many occasions. What could be more uncertain about this convention in particular is the degree to which protests over the war in Gaza could be disruptive. We've already started to see them here in Chicago. There were some last night that were causing quite some issues with traffic, especially for me as I tried to get to the hotel, and there are more planned throughout the duration of the week. The question is going to be to what extent that remains outside of the actual convention itself, and to what extent may bleed into the actual United Center where the proceedings are taking place, how disrupted they would meet could be, whether or not there would be there could be any violence. We haven't had reports of that yet, but certainly that is something we're keeping a close eye on, as that is one of the very tangible divisions within this Democratic Party. While it has been able to really unite around Harris to a large extent, especially when we're thinking about party leadership sitting lawmakers, there does remain that deep division within the Democratic electorate itself, as evidenced by the fact that some delegates were showing up here in Chicago as uncommitted because many voters and states, including Michigan, decided to elect a vote for uncommitted or at the equivalent, over President Biden over protest of that ongoing war between Israel and Hamas kayleie.

That's a key talking point.

That's a key talking point.

Are there any technology elements that we should be keeping eye on for audience in particular? I mean, we're always thinking about what the crypto viewpoint might be from a Harris ticket, but any other areas.

Are there any technology elements that we should be keeping eye on for audience in particular? I mean, we're always thinking about what the crypto viewpoint might be from a Harris ticket, but any other areas.

H well, certainly there is an element here of questioning what kind of crypto policy Kamala Harris could adopt. There was a Crypto for Harris virtual event that happened just last week that even the Senate Majority Leader Chuck Schumer took part.

H well, certainly there is an element here of questioning what kind of crypto policy Kamala Harris could adopt. There was a Crypto for Harris virtual event that happened just last week that even the Senate Majority Leader Chuck Schumer took part.

And we've spoken with.

And we've spoken with.

A big crypto advocate in Congress, Congressman WYLEYE. Nicol of North Carolina, who has said he is actively involved in pushing the campaign to be more o, been to the innovation in the industry can offer. That has been the case under the Biden administration, but we have seen this campaign in general really embrace technology, especially social media we've seen a lot of those kind of viral meme aspects of this campaign showing up much more for the Harris ticket than the Trump Vance one, and I would note we're seeing that in the advice as well. The Harris campaign has annowed three hundred and seventy million dollars of advice between Labor Day and the election. Election two hundred million of that is digital advertising in particular, so really venturing into that realm beyond just your traditional TV ads. As for any other technology policy, we're going to be looking to hear more of that throughout the course of the week, but we could probably expect that the speech Harris will give on Thursday night is going to be much broader strokes than getting into really specific policy recommendations or platform.

A big crypto advocate in Congress, Congressman WYLEYE. Nicol of North Carolina, who has said he is actively involved in pushing the campaign to be more o, been to the innovation in the industry can offer. That has been the case under the Biden administration, but we have seen this campaign in general really embrace technology, especially social media we've seen a lot of those kind of viral meme aspects of this campaign showing up much more for the Harris ticket than the Trump Vance one, and I would note we're seeing that in the advice as well. The Harris campaign has annowed three hundred and seventy million dollars of advice between Labor Day and the election. Election two hundred million of that is digital advertising in particular, so really venturing into that realm beyond just your traditional TV ads. As for any other technology policy, we're going to be looking to hear more of that throughout the course of the week, but we could probably expect that the speech Harris will give on Thursday night is going to be much broader strokes than getting into really specific policy recommendations or platform.

Most Katie Lions, another very busy week for you on the ground, and we'll tune in each day, Thank you very much. Now, the Democratic ticket is set to address a number of key themes. Kaylee went through some of them at the DNC this week. One of them is labor unions. From Apple and Amazon to Samsung and Tesla. Recent unionization efforts have been hitting the tech sector. I'm going to break it all down with Bloomberg Industry Group reporter Ian cole Gren. And actually a recent spark point probably was the complaint or enforcement complaint by the UAW in reaction to that Musk and Trump spaces. You know, that's the scene setter here, right, Ian, that this is a focus on both sides of this election race.

Most Katie Lions, another very busy week for you on the ground, and we'll tune in each day, Thank you very much. Now, the Democratic ticket is set to address a number of key themes. Kaylee went through some of them at the DNC this week. One of them is labor unions. From Apple and Amazon to Samsung and Tesla. Recent unionization efforts have been hitting the tech sector. I'm going to break it all down with Bloomberg Industry Group reporter Ian cole Gren. And actually a recent spark point probably was the complaint or enforcement complaint by the UAW in reaction to that Musk and Trump spaces. You know, that's the scene setter here, right, Ian, that this is a focus on both sides of this election race.

It's certainly one of the big ones, and it is one of the tools that the UAW and unions as a whole are using to divide themselves from Trump and who they see as Trump allies like Elon Musk. This was certainly not an expected complaint, and it had the effect of really changing the Teamsters and some other middle of the road unions from being sort of ambivalent about Trump and maybe willing to entertain his side hear him a little bit, to being fully against Trump.

It's certainly one of the big ones, and it is one of the tools that the UAW and unions as a whole are using to divide themselves from Trump and who they see as Trump allies like Elon Musk. This was certainly not an expected complaint, and it had the effect of really changing the Teamsters and some other middle of the road unions from being sort of ambivalent about Trump and maybe willing to entertain his side hear him a little bit, to being fully against Trump.

Now what's interesting is that, well, Tesla's certainly Elon Musk not the only technology name that has seen movement for unionization, maybe pushed against it in some way. But I'm thinking what Apple store workers in Oklahoma City. They're given the union leader's permission to call a strike if talks don't go well. What ultimately has been technology sentiment towards unions, unionization, organized labor.

Now what's interesting is that, well, Tesla's certainly Elon Musk not the only technology name that has seen movement for unionization, maybe pushed against it in some way. But I'm thinking what Apple store workers in Oklahoma City. They're given the union leader's permission to call a strike if talks don't go well. What ultimately has been technology sentiment towards unions, unionization, organized labor.

Well, it's been a little bit mixed. Traditionally, the technology sector has not been in favor of unions, has been rather against unions in seeing them as an impediment to the kind of startup, move fast break things, innovate quickly culture that has defined Silicon Valley and its successes. But increasingly workers, as you noted, are turning to unions to solve some of the more top down kind of quality of life problems that workers started seeing in some of these businesses, especially as you've noted in Apple stores in the retail front that a really started in the pandemic when many workers who I've talked to and have spoken publicly felt like they weren't being listened to by their bosses.

Well, it's been a little bit mixed. Traditionally, the technology sector has not been in favor of unions, has been rather against unions in seeing them as an impediment to the kind of startup, move fast break things, innovate quickly culture that has defined Silicon Valley and its successes. But increasingly workers, as you noted, are turning to unions to solve some of the more top down kind of quality of life problems that workers started seeing in some of these businesses, especially as you've noted in Apple stores in the retail front that a really started in the pandemic when many workers who I've talked to and have spoken publicly felt like they weren't being listened to by their bosses.

We set the scene in it's that we think this issue boarding will be discussed at the DNC. But is someone covering the beat. Do you have a real sort of sense of the Harris policy? Is there something codified you can say, Okay, this is what Harris's policy platform will be in this election race.

We set the scene in it's that we think this issue boarding will be discussed at the DNC. But is someone covering the beat. Do you have a real sort of sense of the Harris policy? Is there something codified you can say, Okay, this is what Harris's policy platform will be in this election race.

Well, certainly there are plenty of open questions right now to see if Harris really will pick up the torch from Biden and being, as he described that, the most pro union president in history. Many unions agree with that sentiment, and it's notable that they really, unions, i mean really stuck with Biden until the very bitter end. There was not one major union that came out against Biden, even privately, as far as we know, told him.

Well, certainly there are plenty of open questions right now to see if Harris really will pick up the torch from Biden and being, as he described that, the most pro union president in history. Many unions agree with that sentiment, and it's notable that they really, unions, i mean really stuck with Biden until the very bitter end. There was not one major union that came out against Biden, even privately, as far as we know, told him.

To drop out of the race.

To drop out of the race.

That said it. They were also very quick to back Harris, rallying around her as the next best choice. They noted that she shared a labor White House Labor task Force that Biden had convened. That's true. It's a little bit debatable how much that actually did for unions and how much of it is just for show. But they're sort of taking her at her best word right now that she is going to be as pro union as Biden was. Of course, one thing we're going to be watching closely is the constant tension between some of these big Silicon Valley donors who tend to give to Democrats and then this more organic worker organizing. The Democrats say they'refore on paper, but can conflict with some of their best interests in the moment.

That said it. They were also very quick to back Harris, rallying around her as the next best choice. They noted that she shared a labor White House Labor task Force that Biden had convened. That's true. It's a little bit debatable how much that actually did for unions and how much of it is just for show. But they're sort of taking her at her best word right now that she is going to be as pro union as Biden was. Of course, one thing we're going to be watching closely is the constant tension between some of these big Silicon Valley donors who tend to give to Democrats and then this more organic worker organizing. The Democrats say they'refore on paper, but can conflict with some of their best interests in the moment.

In Culgren putting it delicately, for US remag Industry Group.

In Culgren putting it delicately, for US remag Industry Group.

We thank you.

We thank you.

Meanwhile, it's time been talking tech. First up Lime is entering the Japanese market.

Meanwhile, it's time been talking tech. First up Lime is entering the Japanese market.

Look.

Look.

It's the Uber backed scooter company and it's launching its services today in Tokyo with two hundred scooters and forty charging ports to San Francisco based startup of course, and it's entering a pretty growing market, putting itself against the likes of Tokyo based Loop, which controls ninety percent of the domestic market. Meanwhile, Elol Musk's X is going to.

It's the Uber backed scooter company and it's launching its services today in Tokyo with two hundred scooters and forty charging ports to San Francisco based startup of course, and it's entering a pretty growing market, putting itself against the likes of Tokyo based Loop, which controls ninety percent of the domestic market. Meanwhile, Elol Musk's X is going to.

Close operations in Brazil.

Close operations in Brazil.

The announcement marks the latest step in a showdown between Musk and Brazil Supreme Court Justice, who is spearheading efforts to combat fake news hate speech. While operations in the country will be shutting down, though the service will remain available. And Africa's empty N Group posted its first loss since twenty sixteen, and the country's largest wireless carrier by revenue, has reported a loss of four hundred and fifty.

The announcement marks the latest step in a showdown between Musk and Brazil Supreme Court Justice, who is spearheading efforts to combat fake news hate speech. While operations in the country will be shutting down, though the service will remain available. And Africa's empty N Group posted its first loss since twenty sixteen, and the country's largest wireless carrier by revenue, has reported a loss of four hundred and fifty.

Million dollars in the six months through June.

Million dollars in the six months through June.

This is as the evaluation of the Nigeria and NARRA crimped income. MTN has about seventy seven million customers in Nigeria and derives about a third of its earnings from the nation. It is time to discuss investing trends, but we're going to hone in on the gaming world, of course, following that use of Epic Games launching a new mobile storefront after four years, the legal tug of war with Apple and Google over their app store practices, joining us now with a deep dive Menlo Ventures partner Amy Wu who of course leads gaming consumer blockchain investments for the firm, And it's.

This is as the evaluation of the Nigeria and NARRA crimped income. MTN has about seventy seven million customers in Nigeria and derives about a third of its earnings from the nation. It is time to discuss investing trends, but we're going to hone in on the gaming world, of course, following that use of Epic Games launching a new mobile storefront after four years, the legal tug of war with Apple and Google over their app store practices, joining us now with a deep dive Menlo Ventures partner Amy Wu who of course leads gaming consumer blockchain investments for the firm, And it's.

Always great to have you on the shoot. So much, what did you make of it?

Always great to have you on the shoot. So much, what did you make of it?

I mean, after four long years, how much is Epic had to give back, like let go in terms of market share by taking on this battle.

I mean, after four long years, how much is Epic had to give back, like let go in terms of market share by taking on this battle.

I mean, the casts are very large.

I mean, the casts are very large.

In addition to the you know, hundreds of millions of dollars of legal fees, they also gave up mark ashare because in the last four years you saw, you know, Call of Duty mobile I think has something like two hundred and fifty million downloads, several billion dollars in revenue, and so it's really exciting I think for everybody, Tim Sweeney, the developer community, also their investors to see them back in the in the mobile platform, but they've still got long ways to go.

In addition to the you know, hundreds of millions of dollars of legal fees, they also gave up mark ashare because in the last four years you saw, you know, Call of Duty mobile I think has something like two hundred and fifty million downloads, several billion dollars in revenue, and so it's really exciting I think for everybody, Tim Sweeney, the developer community, also their investors to see them back in the in the mobile platform, but they've still got long ways to go.

I mean, you wrote to checks for them when you were at a previous VC lightspe benchres I believe that if they had been like a focus of yours, do you still think that this is the company that you should be riding a wave on.

I mean, you wrote to checks for them when you were at a previous VC lightspe benchres I believe that if they had been like a focus of yours, do you still think that this is the company that you should be riding a wave on.

Is Fortnite's still dominant enough?

Is Fortnite's still dominant enough?

Where else do you want to be sort of allocating to in this environment?

Where else do you want to be sort of allocating to in this environment?

Well?

Well?

Right now, I think that you see Epic Games, they're very much trying to expand their audience, right with a launch of UEFN last year at GDC, they're really trying to expand beyond their young shooter audience into something more general, competing against roadblocks, and so I think those are.

Right now, I think that you see Epic Games, they're very much trying to expand their audience, right with a launch of UEFN last year at GDC, they're really trying to expand beyond their young shooter audience into something more general, competing against roadblocks, and so I think those are.

Really smart moves.

Really smart moves.

You know, obviously Tim has been fighting the mobile battle for a while. I think it's exciting to see them come onto that platform, especially when they have games like Guys that are really conducive.

You know, obviously Tim has been fighting the mobile battle for a while. I think it's exciting to see them come onto that platform, especially when they have games like Guys that are really conducive.

To more of a mobile audience.

To more of a mobile audience.

And so I think that also in games, you know, we're looking at mobile there's been a little bit more emine activity in the mobile game sector. We're looking at the intersection of AI and games right now, some pretty exciting things have been happening. You know, Leonardo AI got acquired by by Canva recently. That's more in the tooling space. A lot of game des we're experimenting with using them, and so we are really actively investing in that space.

And so I think that also in games, you know, we're looking at mobile there's been a little bit more emine activity in the mobile game sector. We're looking at the intersection of AI and games right now, some pretty exciting things have been happening. You know, Leonardo AI got acquired by by Canva recently. That's more in the tooling space. A lot of game des we're experimenting with using them, and so we are really actively investing in that space.

Amy, It's great to have you back on the program. I mean, you make a really good point, which is on the developer side of the community. In our coverage, we kind of emphasize that this is about the consumer having options to access, But what does it mean for a marketplace for developers when there are more than one or two platforms in which you can access mobile games in particular?

Amy, It's great to have you back on the program. I mean, you make a really good point, which is on the developer side of the community. In our coverage, we kind of emphasize that this is about the consumer having options to access, But what does it mean for a marketplace for developers when there are more than one or two platforms in which you can access mobile games in particular?

I think it.

I think it.

Actually I think, you know, I think Tim Sweeney is seen as a full hero to a lot of indie developers, and choice and choice of platforms to launch games into is just better for developers, right Having multiple competitors, they can you know, negotiate better pricing, et cetera. Before it's just Apples thirty percent you know fee app store, and so I think this is a very much positive. But I think, you know, Epic had to go through a lot of hoops just to get their their storefront launched in you know, currently EU, not the US yet, I think Android globally, and so again they're sort of at the forefront fighting this fight and it's going to be benefiting developers worldwide.

Actually I think, you know, I think Tim Sweeney is seen as a full hero to a lot of indie developers, and choice and choice of platforms to launch games into is just better for developers, right Having multiple competitors, they can you know, negotiate better pricing, et cetera. Before it's just Apples thirty percent you know fee app store, and so I think this is a very much positive. But I think, you know, Epic had to go through a lot of hoops just to get their their storefront launched in you know, currently EU, not the US yet, I think Android globally, and so again they're sort of at the forefront fighting this fight and it's going to be benefiting developers worldwide.

Amy as you outline you were previously an investor in Epic, they have this goal or Tim has this goal one one hundred million new installs in.

Amy as you outline you were previously an investor in Epic, they have this goal or Tim has this goal one one hundred million new installs in.

Quite a tight time period.

Quite a tight time period.

Just reflecting on your knowledge of the company and that leadership team, like is this a win for them?

Just reflecting on your knowledge of the company and that leadership team, like is this a win for them?

Like how are they doing now?

Like how are they doing now?

They're certainly putting a lot of capital at work. You know, they're privately held business, and so Tim can be a lot more aggressive. And you know, when you launched UEFN and their sort of user generated content marketplace, I would say they had the most advantageous payout of any so any platform, you know, better than Roadblocks at the time. And so that is again really great for developers, but I think that they have a long way to go in terms of future parody with roadblocks. Also, the just the discovery algorithms, right, because you have to remember the Epic community primarily like shooting games.

They're certainly putting a lot of capital at work. You know, they're privately held business, and so Tim can be a lot more aggressive. And you know, when you launched UEFN and their sort of user generated content marketplace, I would say they had the most advantageous payout of any so any platform, you know, better than Roadblocks at the time. And so that is again really great for developers, but I think that they have a long way to go in terms of future parody with roadblocks. Also, the just the discovery algorithms, right, because you have to remember the Epic community primarily like shooting games.

And so to really expand their.

And so to really expand their.

Audience to a much more general audience has to be baked into their algorithms as well. In terms of discovery, and so they're working on all of that and I think developers are patiently waiting for it, but you know, the patient is finite patients fighting.

Audience to a much more general audience has to be baked into their algorithms as well. In terms of discovery, and so they're working on all of that and I think developers are patiently waiting for it, but you know, the patient is finite patients fighting.

What's interesting is you would saying how you're looking at the AI scene within gaming, and much has been said as to how ultimately we'll suddenly have you generated content so much more to be able to be built in, But I mean whether or not games will be building themselves, that's much more. You led the latest run in anthropic, How are you studying cee AI and gaming really start to lead to efficiencies or not?

What's interesting is you would saying how you're looking at the AI scene within gaming, and much has been said as to how ultimately we'll suddenly have you generated content so much more to be able to be built in, But I mean whether or not games will be building themselves, that's much more. You led the latest run in anthropic, How are you studying cee AI and gaming really start to lead to efficiencies or not?

Is it still a long term bet?

Is it still a long term bet?

Yeah, my partner Metmorphy led them. Thus it's the largest for Menlo and we're really excited about So I think, you know, code generation is a pretty exciting application of generative AI lms, and so that could potentially be applied to game making as well. And I think the challenge, and I think we saw this with the blockchain cycle, is that ultimately consumers care less about the technology. They want to play something fun, and so we have to prove an AI needs to prove that it can not only generate code, but generate it in a way that's actually quite creative in something that consumers want to play.

Yeah, my partner Metmorphy led them. Thus it's the largest for Menlo and we're really excited about So I think, you know, code generation is a pretty exciting application of generative AI lms, and so that could potentially be applied to game making as well. And I think the challenge, and I think we saw this with the blockchain cycle, is that ultimately consumers care less about the technology. They want to play something fun, and so we have to prove an AI needs to prove that it can not only generate code, but generate it in a way that's actually quite creative in something that consumers want to play.

And I think that is still you know, proof is out. We haven't seen anything quite yet.

And I think that is still you know, proof is out. We haven't seen anything quite yet.

There's a lot of really interesting attempts more and I would say low fidelity two D games, but you know, I am we're very actively looking at a lot of the teams that are trying to push that technology in the absolute sort of the farthest it can it can go in or to generate games.