From Marhart.

From Marhart.

We're Innovation, Money and Power Collie in Silicon Valley, Nbon.

We're Innovation, Money and Power Collie in Silicon Valley, Nbon.

This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.

Now from London in San Francisco. This is Bloomberg Technology coming up. Full coverage of Tesla's disappointing second quarter results.

Now from London in San Francisco. This is Bloomberg Technology coming up. Full coverage of Tesla's disappointing second quarter results.

Flask Google investors still waiting for an AI payoff.

Flask Google investors still waiting for an AI payoff.

We bring you the details and an.

We bring you the details and an.

Update from CrowdStrike on the global IT outage. But Ed, we get straight to it. A big fall in Tesla stock.

Update from CrowdStrike on the global IT outage. But Ed, we get straight to it. A big fall in Tesla stock.

Yeah, I mean the chart on the screen tells the story right. We're down around twelve percent thirteen percent in the session intraday. That would be the biggest drop since January twenty fifth on a closing basis, a decline of about twelve half percent I think is the biggest drop going back to September of twenty twenty. There's a lot of anxiety in the misunderstanding here. Fourth consecutive quarter of EPs missing estimates, but a record revenue quarter where we return to urine year growth. Despite the estimate we would see a declining growth. There's a lot to pass over. I think robotaxis at the heart of it.

Yeah, I mean the chart on the screen tells the story right. We're down around twelve percent thirteen percent in the session intraday. That would be the biggest drop since January twenty fifth on a closing basis, a decline of about twelve half percent I think is the biggest drop going back to September of twenty twenty. There's a lot of anxiety in the misunderstanding here. Fourth consecutive quarter of EPs missing estimates, but a record revenue quarter where we return to urine year growth. Despite the estimate we would see a declining growth. There's a lot to pass over. I think robotaxis at the heart of it.

Carric Yeah of course, the delay being the key watchword. Here's a Musk had to say about the delay of the robotaxi.

Carric Yeah of course, the delay being the key watchword. Here's a Musk had to say about the delay of the robotaxi.

I wanted to make some important changes that I think would improve the big the sort of the robotaxi. That think that I think that were the main thing that we're going to show and we're also going to show up a couple of other things.

I wanted to make some important changes that I think would improve the big the sort of the robotaxi. That think that I think that were the main thing that we're going to show and we're also going to show up a couple of other things.

We turned to Craig Trudell because Craig, it was your team, It was Ed plus your team that broke down the fact that there would be this delay in robotaxis. This is the future of the AI underpinning of Tesla. Why are we so worried about this quarter's results?

We turned to Craig Trudell because Craig, it was your team, It was Ed plus your team that broke down the fact that there would be this delay in robotaxis. This is the future of the AI underpinning of Tesla. Why are we so worried about this quarter's results?

Yeah, I think you know, it wouldn't normally be a huge cause for concern for an event to be pushed back by all of two months. I mean, you know how material is that for the company, except you know, Elon Musk has has really leaned into this being you know, the way forward for Tesla, and you know the reason why you should or shouldn't you know, invest in the stock, and so the slightest delay of you know, this event to showcase you know what he's essentially betting the company on as the company continues to have deteriorating earnings, is you know, cause for concern, especially in light of the move and the stock and the lead up to these earnings. This was a stock that was really battered when they last reported results and has come roaring back over the last few months. So right, I'm not surprised to see the shares doing this.

Yeah, I think you know, it wouldn't normally be a huge cause for concern for an event to be pushed back by all of two months. I mean, you know how material is that for the company, except you know, Elon Musk has has really leaned into this being you know, the way forward for Tesla, and you know the reason why you should or shouldn't you know, invest in the stock, and so the slightest delay of you know, this event to showcase you know what he's essentially betting the company on as the company continues to have deteriorating earnings, is you know, cause for concern, especially in light of the move and the stock and the lead up to these earnings. This was a stock that was really battered when they last reported results and has come roaring back over the last few months. So right, I'm not surprised to see the shares doing this.

And we underscore it's the delay of an event where we were going to unveil or see publicly for the first time, a purpose built ROBOTAXI actually debt Gray. They went some way to explain the manufacturing process. It's going to be this what they call revolutionary unboxed manufacturing strategy, but the inference is that that will be post twenty twenty five, right, Automotive Gross Margein taught me through where the cell side is focused on that.

And we underscore it's the delay of an event where we were going to unveil or see publicly for the first time, a purpose built ROBOTAXI actually debt Gray. They went some way to explain the manufacturing process. It's going to be this what they call revolutionary unboxed manufacturing strategy, but the inference is that that will be post twenty twenty five, right, Automotive Gross Margein taught me through where the cell side is focused on that.

Yeah, there's a real concern here that you know, not only has has Tesla cut prices, but it's cut prices and only seen sales shrink and so uh, that means you have to to continue to cut costs, which you know, Tesla, to its credit, has has done that very consistently for years, but it also needs a product to reinvigorate sales, and you know, Musk has has really you know spoken to the importance of being able to offer people more affordable evs in order for them to you know, be adopted by a wider, you know set of consumers. But he really has not you know, been willing to to sort of back that up with with product we've we've seen you know, the cyber truck roll out, but you got to pay six figures to buy that truck. You know, where is the model too, as people like to refer to it, the vehicle that would be cheaper than the Model three.

Yeah, there's a real concern here that you know, not only has has Tesla cut prices, but it's cut prices and only seen sales shrink and so uh, that means you have to to continue to cut costs, which you know, Tesla, to its credit, has has done that very consistently for years, but it also needs a product to reinvigorate sales, and you know, Musk has has really you know spoken to the importance of being able to offer people more affordable evs in order for them to you know, be adopted by a wider, you know set of consumers. But he really has not you know, been willing to to sort of back that up with with product we've we've seen you know, the cyber truck roll out, but you got to pay six figures to buy that truck. You know, where is the model too, as people like to refer to it, the vehicle that would be cheaper than the Model three.

And that's a real.

And that's a real.

Concern for folks who you know, are willing to credit him with his you know vision and give him, you know, some time to you know, realize robotaxis. But he needs to sort of deliver in the here and now more affordable electric vehicles for Tesla to grow again.

Concern for folks who you know, are willing to credit him with his you know vision and give him, you know, some time to you know, realize robotaxis. But he needs to sort of deliver in the here and now more affordable electric vehicles for Tesla to grow again.

Bloomber's cry Tudew Global Auto's editor in London, thank you so much. Let's get reaction to Tesla's second quarter from an investor, but this time a retail or.

Bloomber's cry Tudew Global Auto's editor in London, thank you so much. Let's get reaction to Tesla's second quarter from an investor, but this time a retail or.

Individual investor.

Individual investor.

Alexandra Metz aka Tesla Booma Mama holds thousands of shares of Tesla and has done so since twenty twenty. She's had previous careers in finance and as an investment analyst, but now works as a visa consultant in California and on x, the social platform owned by Mask. Is a prominent voice in that large body of individuals who do back elon Mask and a bullish on Tesla's long term Alexandre, good morning to you, Welcome to Bloomberg Technology. The most important takeaway from earnings of the earning score for you.

Alexandra Metz aka Tesla Booma Mama holds thousands of shares of Tesla and has done so since twenty twenty. She's had previous careers in finance and as an investment analyst, but now works as a visa consultant in California and on x, the social platform owned by Mask. Is a prominent voice in that large body of individuals who do back elon Mask and a bullish on Tesla's long term Alexandre, good morning to you, Welcome to Bloomberg Technology. The most important takeaway from earnings of the earning score for you.

Please well, thank you ED for having me. For me, the most important was actually that we're moving on into this next phase of Tesla's growth, and all the markers that we have laid there are still there and are moving ahead in the same timeline with the same vigor then anticipated. So as a retail investor, I mean I acknowledge that the market and your typical audience probably doesn't have the same large time horizon than we have, but for us, it is really as a retail investor, just another buying opportunity. Also, do remember we were at these prices at the beginning of the month, right when we got the delivery and production numbers. The share price was about at the same level when your channel broke the news that the Robotech Seed Day Taxi event was going to be delayed by two months. We were already a little bit higher. That's where we saw first fluctuations in the stock price. Well, now it is confirmed for October tenth, so it is a mere two months. Your colleague Greg is completely right. It is not a long delay, and there are technical reasons for it. But I also think you know, Tesla wants to be ready, wants to be sure to show whatever is necessary to convince the market, the retail investors about autonomy and that being the crucial part to Tesla's future.

Please well, thank you ED for having me. For me, the most important was actually that we're moving on into this next phase of Tesla's growth, and all the markers that we have laid there are still there and are moving ahead in the same timeline with the same vigor then anticipated. So as a retail investor, I mean I acknowledge that the market and your typical audience probably doesn't have the same large time horizon than we have, but for us, it is really as a retail investor, just another buying opportunity. Also, do remember we were at these prices at the beginning of the month, right when we got the delivery and production numbers. The share price was about at the same level when your channel broke the news that the Robotech Seed Day Taxi event was going to be delayed by two months. We were already a little bit higher. That's where we saw first fluctuations in the stock price. Well, now it is confirmed for October tenth, so it is a mere two months. Your colleague Greg is completely right. It is not a long delay, and there are technical reasons for it. But I also think you know, Tesla wants to be ready, wants to be sure to show whatever is necessary to convince the market, the retail investors about autonomy and that being the crucial part to Tesla's future.

Can you con well sell to us a little bit more?

Can you con well sell to us a little bit more?

Confirm to us how you understand full self driving, the focus on AI to eventually become some robotaxi fleet where suddenly we've got to ride hailing app out of Tesla's How does that become to bear in a good use, efficient business strategy way for you?

Confirm to us how you understand full self driving, the focus on AI to eventually become some robotaxi fleet where suddenly we've got to ride hailing app out of Tesla's How does that become to bear in a good use, efficient business strategy way for you?

Well, I have mine model and I'm very happy to share it with us, but we don't have Tesla's model yet. Right. That is what is going to be the quintessence of October tenth. So what I'm going to bring forward is my interpretation from former speetures of Elon and the Tesla team, So this may not be the current version, but for me, it seems very clear there's going to be a threefold business model. One Tesla's own fleet, meaning cars that are either already in Tesla's possession, people handing back their leases or whatever else, you know, inventory cars, whatever else they they have in their own fleet that are going to operate autonomously, and that are going to be strategically put in cities at spots where they will have the best yield of a robotaxi business could be airports, could be shopping malls, whatever I mean. That's probably to be to be tried out and found out how it's gone up right, So that is one part of it. The second part is that owners like me can participate and can enroll their cars. Instead of standing here in front of my house, it can just you know, travel around the day and pick up clients and bring them to the places they want to be brought to. And that's going to be a revenue sharing model. And then the third one is going to be the purpose built robotaxis. So those are the ones.

Well, I have mine model and I'm very happy to share it with us, but we don't have Tesla's model yet. Right. That is what is going to be the quintessence of October tenth. So what I'm going to bring forward is my interpretation from former speetures of Elon and the Tesla team, So this may not be the current version, but for me, it seems very clear there's going to be a threefold business model. One Tesla's own fleet, meaning cars that are either already in Tesla's possession, people handing back their leases or whatever else, you know, inventory cars, whatever else they they have in their own fleet that are going to operate autonomously, and that are going to be strategically put in cities at spots where they will have the best yield of a robotaxi business could be airports, could be shopping malls, whatever I mean. That's probably to be to be tried out and found out how it's gone up right, So that is one part of it. The second part is that owners like me can participate and can enroll their cars. Instead of standing here in front of my house, it can just you know, travel around the day and pick up clients and bring them to the places they want to be brought to. And that's going to be a revenue sharing model. And then the third one is going to be the purpose built robotaxis. So those are the ones.

Alexander, right, which is why the date of availing and seeing it was important. Just real quick, I want to think about the cell side for a second. One of Tesla's biggest balls is basically moving to the sidelines after earnings. I'm talking about New Streets.

Alexander, right, which is why the date of availing and seeing it was important. Just real quick, I want to think about the cell side for a second. One of Tesla's biggest balls is basically moving to the sidelines after earnings. I'm talking about New Streets.

Pf fer agree.

Pf fer agree.

He's drapped, downgraded Tesla to neutral and is writing that the stock is at the target price they had trading at fifty times their twenty twenty six estimates. They see limited and unreliable valuation upside, etc. Now we have you on the program, retail or individual shareholder, how closely do you follow those kind of fundamental analyzes that the sales side make.

He's drapped, downgraded Tesla to neutral and is writing that the stock is at the target price they had trading at fifty times their twenty twenty six estimates. They see limited and unreliable valuation upside, etc. Now we have you on the program, retail or individual shareholder, how closely do you follow those kind of fundamental analyzes that the sales side make.

And characters like Pierre Well I form.

And characters like Pierre Well I form.

A peer a lot his French. I've lived a lot in France, so I love him. I love his accent, I love the way he's doing that. I think at this point he's wrong, And actually I liked how he formulated his post because he was not saying that he downgraded Tesla, but that Newstreet did it. So there was something.

A peer a lot his French. I've lived a lot in France, so I love him. I love his accent, I love the way he's doing that. I think at this point he's wrong, And actually I liked how he formulated his post because he was not saying that he downgraded Tesla, but that Newstreet did it. So there was something.

Bizarre about it.

Bizarre about it.

But let's put that aside.

But let's put that aside.

He doesn't see in the next twelve months major developments that could bring the stock higher. That's why they are putting it to neutral, I completely disagree. I think we're having in October, on October tenth, the ROBOTEXI Day. We'll also have in October obviously Q three numbers, and then we're going to move into twenty twenty five with a lot of announcement, actually three of them. We will have the model too, how Craig called it, the cheaper version of a Tesla be presented in early twenty twenty five. Will have production of Optimus at the end of twenty twenty five.

He doesn't see in the next twelve months major developments that could bring the stock higher. That's why they are putting it to neutral, I completely disagree. I think we're having in October, on October tenth, the ROBOTEXI Day. We'll also have in October obviously Q three numbers, and then we're going to move into twenty twenty five with a lot of announcement, actually three of them. We will have the model too, how Craig called it, the cheaper version of a Tesla be presented in early twenty twenty five. Will have production of Optimus at the end of twenty twenty five.

So there is a.

So there is a.

Lot of things happening. And he actually differ referred to energy being and it's already twenty percent part of the profit of it's about seventeen percent. Only there is much more margin and energy. I mean, if you want to give me a minute to talk about energy revenues and profits, because they are not like a car immediately consumed at the moment of sales. They're actually over time because when you sell energy, you actually get in the revenues and get in the profits in installments. And so there is a lot of waiting revenues and waiting profits already there, and there is much more to come. And I'm very surprised that Pierre didn't take care.

Lot of things happening. And he actually differ referred to energy being and it's already twenty percent part of the profit of it's about seventeen percent. Only there is much more margin and energy. I mean, if you want to give me a minute to talk about energy revenues and profits, because they are not like a car immediately consumed at the moment of sales. They're actually over time because when you sell energy, you actually get in the revenues and get in the profits in installments. And so there is a lot of waiting revenues and waiting profits already there, and there is much more to come. And I'm very surprised that Pierre didn't take care.

Of that, alex I'm really glad Alexandre that you bring up the other parts of just the cars, the optimist side of things, the energy side of things. There's also the dojo side of things, and many trying to understand the logic there.

Of that, alex I'm really glad Alexandre that you bring up the other parts of just the cars, the optimist side of things, the energy side of things. There's also the dojo side of things, and many trying to understand the logic there.

Just take a listen to what Elo said last night.

Just take a listen to what Elo said last night.

We are going to double down on dojo and we do see a path to being competitive with in video with with dojo, and I think we kind of have no choice because.

We are going to double down on dojo and we do see a path to being competitive with in video with with dojo, and I think we kind of have no choice because.

The demand for in videos.

The demand for in videos.

So I.

So I.

In video shares down, as is most of the market today. But some saying, look, because maybe this is a lack of demand that's going to come from Tesla going forward. Was that a surprise ultimately that they're really going to be ramping up dojo because they are worried about the supply side.

In video shares down, as is most of the market today. But some saying, look, because maybe this is a lack of demand that's going to come from Tesla going forward. Was that a surprise ultimately that they're really going to be ramping up dojo because they are worried about the supply side.

I'm so pleased you're bringing this up, Carolina, Thank you so much. Well, it is actually funny because over the last five six years, dojo was always one of those topics in the earnings call, so shall I do it?

I'm so pleased you're bringing this up, Carolina, Thank you so much. Well, it is actually funny because over the last five six years, dojo was always one of those topics in the earnings call, so shall I do it?

Shall I not?

Shall I not?

And I do not?

And I do not?

It was really going It was a dance and I've actually done about a six months ago, a whole timeline of non committal. We would like to do it, but we're really not sure. Don't bet on it. Dojo is really not so clear yet. This is the first time that Elon clearly said we actually have no choice. We're going to double down on it. We're going to do it.

It was really going It was a dance and I've actually done about a six months ago, a whole timeline of non committal. We would like to do it, but we're really not sure. Don't bet on it. Dojo is really not so clear yet. This is the first time that Elon clearly said we actually have no choice. We're going to double down on it. We're going to do it.

And this is a.

And this is a.

Fabulous news because Alexis supercomputers are so far ahead and will make will make the whole Tesla infrastructure, the whole digestion of videos and output so much more profitable, rather than purchasing the Nvidia chips.

Fabulous news because Alexis supercomputers are so far ahead and will make will make the whole Tesla infrastructure, the whole digestion of videos and output so much more profitable, rather than purchasing the Nvidia chips.

Alexandro, we're running out of time.

Alexandro, we're running out of time.

We have a lot to get to, so I want to ask, would you vote in favor of Tesla investing in Xai per the poll in the Exchange last night.

We have a lot to get to, so I want to ask, would you vote in favor of Tesla investing in Xai per the poll in the Exchange last night.

I love that you did the yes. Thank you very much. I appreciate all of those. So we're close to sixty nine percent, which is always a fun number, isn't it. Yes, I would actually vote for it, but not unconditionally, you know how I like doing the analysis of things. This morning, we just had news that Open Ai will probably produce another five billion dollar loss this year. I think these AI companies need to be thoroughly analyzed in principle.

I love that you did the yes. Thank you very much. I appreciate all of those. So we're close to sixty nine percent, which is always a fun number, isn't it. Yes, I would actually vote for it, but not unconditionally, you know how I like doing the analysis of things. This morning, we just had news that Open Ai will probably produce another five billion dollar loss this year. I think these AI companies need to be thoroughly analyzed in principle.

I love it.

I love it.

I completely understand why it was a segregate identity from the start. Elon reeksplain yesterday those engineers don't want to be in a mega cup company. They want to have all the upside of a small startup, so it needed to be set up that way. But also I fully underscerent that Tesla needs groc needs all this input, and Tesla has at the moment thirty billion dollars offer a cash line, so investing five billion into XI could be a good idea.

I completely understand why it was a segregate identity from the start. Elon reeksplain yesterday those engineers don't want to be in a mega cup company. They want to have all the upside of a small startup, so it needed to be set up that way. But also I fully underscerent that Tesla needs groc needs all this input, and Tesla has at the moment thirty billion dollars offer a cash line, so investing five billion into XI could be a good idea.

Okay, that was a screen grab of the poll, not any member of the Bloomberg Technology team voting yes on it. Alexandra Mehd's investor in Tesla, retail shareholder, thank you now.

Okay, that was a screen grab of the poll, not any member of the Bloomberg Technology team voting yes on it. Alexandra Mehd's investor in Tesla, retail shareholder, thank you now.

Some other news.

Some other news.

Earlier this month, it was reported the Elon Musk had pledged in an eight forty five million dollars a month to a super pack supporting Trump's presidential campaign. On Tuesday, Musk confirmed on x that he would be making donations, however, at a much lower level than what had been reported. He did not say how much he had contributed.

Earlier this month, it was reported the Elon Musk had pledged in an eight forty five million dollars a month to a super pack supporting Trump's presidential campaign. On Tuesday, Musk confirmed on x that he would be making donations, however, at a much lower level than what had been reported. He did not say how much he had contributed.

Carol, well done for clearing that up.

Carol, well done for clearing that up.

Meanwhile, let's check in on these markets and NASLAK currently off by two point six percent. The worst daysis July seventeenth. We are training at the lowest as juloon the eleventh. Why are we lower? A worry that AI just isn't reaping the rewards in the here and now. So coming up we dive into that. We take a look at Alphabet's earnings. What it tells us if investors antsiness.

Meanwhile, let's check in on these markets and NASLAK currently off by two point six percent. The worst daysis July seventeenth. We are training at the lowest as juloon the eleventh. Why are we lower? A worry that AI just isn't reaping the rewards in the here and now. So coming up we dive into that. We take a look at Alphabet's earnings. What it tells us if investors antsiness.

About AI and its rewards.

About AI and its rewards.

Ioko Yoshioka's with US well founded Enhancement Group.

Ioko Yoshioka's with US well founded Enhancement Group.

This is bluebig technology.

This is bluebig technology.

Alphabet shares falling after the Google parents sunk more resources thirteen billion dollars worth. They expect into driving to outmatch rivals in artificial intelligence, fueling spending higher than analysts have been expecting. CFO Ruth Porat wanting to sound some reassurance on the call with media yesterday, saying quote, we are seeing the benefit of our strength in AI AI infrastructure as we generative AI solutions for cloud customers. There is no question customers are turning to us as they are building out the capabilities.

Alphabet shares falling after the Google parents sunk more resources thirteen billion dollars worth. They expect into driving to outmatch rivals in artificial intelligence, fueling spending higher than analysts have been expecting. CFO Ruth Porat wanting to sound some reassurance on the call with media yesterday, saying quote, we are seeing the benefit of our strength in AI AI infrastructure as we generative AI solutions for cloud customers. There is no question customers are turning to us as they are building out the capabilities.

Let's discuss all of this.

Let's discuss all of this.

Ioco Oshioka's with US put folio manager over at Wealth Enhancement Group. You hold shares of Alphabet they're down the most since February. Look, revenue up some fifteen percent, earnings per share jumping thirty one percent. But it seems to be this idea of plunging thirteen billion dollars per quarter into AI that is the real worry here.

Ioco Oshioka's with US put folio manager over at Wealth Enhancement Group. You hold shares of Alphabet they're down the most since February. Look, revenue up some fifteen percent, earnings per share jumping thirty one percent. But it seems to be this idea of plunging thirteen billion dollars per quarter into AI that is the real worry here.

Sure, hi Caroline, thanks for having me. You know, in terms of Google, we thought it was a pretty solid quarter. You know, we had strength in revenues out of UH search and YouTube, and you know, Cloud was pretty strong. Now, the thirteen billion dollars that is being spent on capax and the twenty five billion that's been spent so far your date, you know, you t you take that and you say it's gonna be fifty billion for twenty twenty four. You know, Google still has eighty billion dollars of net cash on their balance sheet, and so, you know, I think the spend is warranted. That infrastructure is really needed. They needed it to do it for the cloud growth to begin with, and so you know, it is something that all the hyperscalers are continuing to do in twenty twenty four, and investors are just asking, you know, what is that return on investment? At some point in twenty twenty five Oka.

Sure, hi Caroline, thanks for having me. You know, in terms of Google, we thought it was a pretty solid quarter. You know, we had strength in revenues out of UH search and YouTube, and you know, Cloud was pretty strong. Now, the thirteen billion dollars that is being spent on capax and the twenty five billion that's been spent so far your date, you know, you t you take that and you say it's gonna be fifty billion for twenty twenty four. You know, Google still has eighty billion dollars of net cash on their balance sheet, and so, you know, I think the spend is warranted. That infrastructure is really needed. They needed it to do it for the cloud growth to begin with, and so you know, it is something that all the hyperscalers are continuing to do in twenty twenty four, and investors are just asking, you know, what is that return on investment? At some point in twenty twenty five Oka.

When I was on the phone with Roofport, I asked her if she would give me a revenue run rate number like AWS. Did you probably remember last quarter? She said, I'm not going to do that because we'll address it on the Analyst school. On the Analyst CAOL, they said that year to date they had billions of dollars of revenue from AI infrastructure and generative AI.

When I was on the phone with Roofport, I asked her if she would give me a revenue run rate number like AWS. Did you probably remember last quarter? She said, I'm not going to do that because we'll address it on the Analyst school. On the Analyst CAOL, they said that year to date they had billions of dollars of revenue from AI infrastructure and generative AI.

And I'm just curious for like and investigate you why.

And I'm just curious for like and investigate you why.

Wasn't that enough If it was so good for Amazon to give a number like that a few months ago.

Wasn't that enough If it was so good for Amazon to give a number like that a few months ago.

I think it's on the spending side.

I think it's on the spending side.

I think historically we've seen that, you know, companies that spend more on capex just have less room on their free cash flow to spend on money being returned to shareholders. So, you know, that's probably the reason why the stock selling off a.

I think historically we've seen that, you know, companies that spend more on capex just have less room on their free cash flow to spend on money being returned to shareholders. So, you know, that's probably the reason why the stock selling off a.

Little bit today.

Little bit today.

But over the long term, you know, the valuation for Google is not extreme. It still is a quality company, it still has a good business model, and I think it's pretty attractive at these levels.

But over the long term, you know, the valuation for Google is not extreme. It still is a quality company, it still has a good business model, and I think it's pretty attractive at these levels.

What's so interesting is it feels as though Alphabet and indeed slightly Tesla are just shaking all of our concerns about the AI hype and the fact that this isn't going to be hugely revenue generating in this quarter.

What's so interesting is it feels as though Alphabet and indeed slightly Tesla are just shaking all of our concerns about the AI hype and the fact that this isn't going to be hugely revenue generating in this quarter.

Or the next.

Or the next.

How is your patience for AI to pay off? Whether it's alphabet or whether it's in video or some of the other names. I have just gone stratospheric and the hope that AI is becoming a profitable reality.

How is your patience for AI to pay off? Whether it's alphabet or whether it's in video or some of the other names. I have just gone stratospheric and the hope that AI is becoming a profitable reality.

Sure, So I think.

Sure, So I think.

In the broader scheme of things, you know, this sell off in technology shares across all of tech, I think it's actually a healthy.

In the broader scheme of things, you know, this sell off in technology shares across all of tech, I think it's actually a healthy.

Thing for markets.

Thing for markets.

We're seeing, you know, the broadening out of markets that we've been talking about for so long, and you're seeing other of the market sort of pick up the slack, which is great to see, you know. I think for AI, Sunder Pitch I said it in terms of taking time, it's all going to take time.

We're seeing, you know, the broadening out of markets that we've been talking about for so long, and you're seeing other of the market sort of pick up the slack, which is great to see, you know. I think for AI, Sunder Pitch I said it in terms of taking time, it's all going to take time.

And when we look back at.

And when we look back at.

The cloud and the growth of cloud, that also took time. I mean Aws, Microsoft Azure, and.

The cloud and the growth of cloud, that also took time. I mean Aws, Microsoft Azure, and.

You know, Google Cloud. We're all being built.

You know, Google Cloud. We're all being built.

You know, years and years ago, and we're just starting to see that benefit and they're still growing at you know, twenty five percent plus rates, and so, you know, I think that AI is probably on a similar trajectory. It's just not going to be in a straight line.

You know, years and years ago, and we're just starting to see that benefit and they're still growing at you know, twenty five percent plus rates, and so, you know, I think that AI is probably on a similar trajectory. It's just not going to be in a straight line.

Are ok.

Are ok.

Weimo fifty thousand paid rides a week, so Alphabet puts another five billion dollars into it.

Weimo fifty thousand paid rides a week, so Alphabet puts another five billion dollars into it.

Your reaction to.

Your reaction to.

That, you know, I think, just as Tesla is putting money into the robotaxi side of things, I think autonomous driving cars are you know, something that is a long term growth driver for many of these companies, whether be Google or Tesla or even Nvidia in terms of the overall chips that will be installed in many of these cars. So I think it's still again another leg that maybe you know, again take more time that investors don't always have the patients for, but it is another growth avenue for many of these stocks.

That, you know, I think, just as Tesla is putting money into the robotaxi side of things, I think autonomous driving cars are you know, something that is a long term growth driver for many of these companies, whether be Google or Tesla or even Nvidia in terms of the overall chips that will be installed in many of these cars. So I think it's still again another leg that maybe you know, again take more time that investors don't always have the patients for, but it is another growth avenue for many of these stocks.

Oko Yahia, portfolio manager at Wealth Enhancement Group, thank.

Oko Yahia, portfolio manager at Wealth Enhancement Group, thank.

You today for our AI and Action segment. Let's bring in Alex retre CEO of Stainless is a company dedicated to building basically a platform for high quality, easy to use APIs by building software development kits SDKs for AI companies like Open Ai and Anthropic Company recently closed a three and a half million seed round.

You today for our AI and Action segment. Let's bring in Alex retre CEO of Stainless is a company dedicated to building basically a platform for high quality, easy to use APIs by building software development kits SDKs for AI companies like Open Ai and Anthropic Company recently closed a three and a half million seed round.

Let's bring in Alex And you know what prompted you? You were building and doing.

Let's bring in Alex And you know what prompted you? You were building and doing.

This over at Stripe basically, and you've taken it broader. How different is it creating SDKs APIs over overt AI companies?

This over at Stripe basically, and you've taken it broader. How different is it creating SDKs APIs over overt AI companies?

How much more difficult?

How much more difficult?

It's a great question. There's a lot of techniques that we use today. It's stay in lists that are similar to the techniques that we that I developed a Stripe empowered stripes stks, but a lot of things are different. For one thing, we need to support a much broader variety of API design patterns. And that's true for just building a platform that can support any company to build a great developer experience for their s API. That includes AI and non AI companies, but for companies like opening I and Thropic and wide variety of other AI companies that we support, we actually have to go a lot deeper to help developers really take full advantage of the full power of these APIs. They're much more advanced, they're richer with things like streaming and function calling, and that requires a lot more STK expertise. And then even fintech API is like.

It's a great question. There's a lot of techniques that we use today. It's stay in lists that are similar to the techniques that we that I developed a Stripe empowered stripes stks, but a lot of things are different. For one thing, we need to support a much broader variety of API design patterns. And that's true for just building a platform that can support any company to build a great developer experience for their s API. That includes AI and non AI companies, but for companies like opening I and Thropic and wide variety of other AI companies that we support, we actually have to go a lot deeper to help developers really take full advantage of the full power of these APIs. They're much more advanced, they're richer with things like streaming and function calling, and that requires a lot more STK expertise. And then even fintech API is like.

Straight, you're a team of ten with three and a half million dollars in the bank, Just talk to me about how difficult it is out there.

Straight, you're a team of ten with three and a half million dollars in the bank, Just talk to me about how difficult it is out there.

How you're going to grow your business?

How you're going to grow your business?

Yeah, great question. You know, with companies like open Ai Andthropic cloud Flare even using our SDKs, and a bunch of smaller companies that are recognized within Silicon Valley as leaders in API first strong developer experience using our product, we've seen a lot of inbound interest and so I'm very glad that we've invested in building a strong platform for scaling out SDKs for a large number of companies because it's enabled us to keep our team small, focused and high skill while serving a large number of API companies.

Yeah, great question. You know, with companies like open Ai Andthropic cloud Flare even using our SDKs, and a bunch of smaller companies that are recognized within Silicon Valley as leaders in API first strong developer experience using our product, we've seen a lot of inbound interest and so I'm very glad that we've invested in building a strong platform for scaling out SDKs for a large number of companies because it's enabled us to keep our team small, focused and high skill while serving a large number of API companies.

Stainless CEO Alex Raptre in Today's AI and Action, thank you very much. Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.

Stainless CEO Alex Raptre in Today's AI and Action, thank you very much. Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.

Calon hid right here in London at the moment, and let's check in on these markets because we've had plenty digest when it comes to Alphabet and Tesla. But look, there are other companies that posted earnings and some of them well giving us some relief.

Calon hid right here in London at the moment, and let's check in on these markets because we've had plenty digest when it comes to Alphabet and Tesla. But look, there are other companies that posted earnings and some of them well giving us some relief.

Texas Instruments up five tenths of a percent.

Texas Instruments up five tenths of a percent.

Maybe that glot the inventory glut is coming to an end. We've got some reassuring signs that we're meeting expectations for the forecast. Really, it seems to be the revival is under the way in key markets. Look, there's still pressure on automotive in industrial, but maybe that's sort of the bottoming of that IBM three tens percent lower as we expect their numbers of course, coming out after the bell today, consulting likely to be a little bit weaker.

Maybe that glot the inventory glut is coming to an end. We've got some reassuring signs that we're meeting expectations for the forecast. Really, it seems to be the revival is under the way in key markets. Look, there's still pressure on automotive in industrial, but maybe that's sort of the bottoming of that IBM three tens percent lower as we expect their numbers of course, coming out after the bell today, consulting likely to be a little bit weaker.

Can software make up for it?

Can software make up for it?

Are we going to eke out that one percent revenue growth that many are anticipating? Service now likely to see some twenty twenty one percent growth in revenue and indeed in earnings. How much again, are we starting to see appetite for artificial intelligence? Generative AI really managed to buoy some their software sales at the moment when companies are strapped for IT spending. I just want to take it on a gear, though, and look at what's happening with a story that just won't go away. For CrowdStrike in particular, we're currently seeing it off by twenty five percent over the last five training days. Look, we've finally got some sort of answer to why this happened. The massive global IT outage was a bug in a quality assurance tool the company uses to check updates for mistakes. Basically, it allowed flawed data to go out to customers, causing last week's meltdown, and the meltdown and stock continues.

Are we going to eke out that one percent revenue growth that many are anticipating? Service now likely to see some twenty twenty one percent growth in revenue and indeed in earnings. How much again, are we starting to see appetite for artificial intelligence? Generative AI really managed to buoy some their software sales at the moment when companies are strapped for IT spending. I just want to take it on a gear, though, and look at what's happening with a story that just won't go away. For CrowdStrike in particular, we're currently seeing it off by twenty five percent over the last five training days. Look, we've finally got some sort of answer to why this happened. The massive global IT outage was a bug in a quality assurance tool the company uses to check updates for mistakes. Basically, it allowed flawed data to go out to customers, causing last week's meltdown, and the meltdown and stock continues.

Let's just get a little bit of detail.

Let's just get a little bit of detail.

Katrina Manson is with us, and we've all been waiting for further details. Can you give us the nuancewers to well, ultimately, why this is so unique, how this qualities assurance step failed.

Katrina Manson is with us, and we've all been waiting for further details. Can you give us the nuancewers to well, ultimately, why this is so unique, how this qualities assurance step failed.

Can you even get the words out because it is so complicated and so detailed, And what we've now got is five days later, the preliminary incident report. Now this right in the small print takes us to what cybersecurity experts are saying is a welcome, detailed, transparent report, but it is still early days as they do. What they're saying is their root cause analysis, and.

Can you even get the words out because it is so complicated and so detailed, And what we've now got is five days later, the preliminary incident report. Now this right in the small print takes us to what cybersecurity experts are saying is a welcome, detailed, transparent report, but it is still early days as they do. What they're saying is their root cause analysis, and.

Let me read it to you.

Let me read it to you.

Due to a bug in the content validata, one of the two template instances past validation despite containing problematic content data. What that means is exactly as you said, the testing process for making updates in some way failed to flag an error. So that's two things. If one there was an error and to the testing process to find it also had a problem, and because CrowdStrike is so instrumental to what's called endpoint detection response, really protecting computers. In this case, Microsoft Windows computers, eight point five million of them, according to Microsoft, experienced the blue screen of death that affected hospitals, airports, retail, airlines. They're still getting back on their feet, some of these companies, they're trying to do automated fixes.

Due to a bug in the content validata, one of the two template instances past validation despite containing problematic content data. What that means is exactly as you said, the testing process for making updates in some way failed to flag an error. So that's two things. If one there was an error and to the testing process to find it also had a problem, and because CrowdStrike is so instrumental to what's called endpoint detection response, really protecting computers. In this case, Microsoft Windows computers, eight point five million of them, according to Microsoft, experienced the blue screen of death that affected hospitals, airports, retail, airlines. They're still getting back on their feet, some of these companies, they're trying to do automated fixes.

They're still in recovery mode.

They're still in recovery mode.

At the same time, they're trying to share what went wrong and promising that there will be fixes.

At the same time, they're trying to share what went wrong and promising that there will be fixes.

The message from crowdstrikes like, look, we're going to make sure technologically speaking that we know what happened and prevent it happening again. But as you write, and I wrote about earlier in the week, we still are learning about how systemic this issue was, about how central CrowdStrike is to an important supply chain.

The message from crowdstrikes like, look, we're going to make sure technologically speaking that we know what happened and prevent it happening again. But as you write, and I wrote about earlier in the week, we still are learning about how systemic this issue was, about how central CrowdStrike is to an important supply chain.

What's the latest on that front.

What's the latest on that front.

I think this comes down to exactly that the single point of failure. As we speak to customers, as we speak to experts in this area, it really does become clear that some of the things that protect people are also very very closely nestled inside their systems, and so if something does go wrong. It has tremendous potential to affect everything. This is another one of those single points of failure that simply hadn't been noticed, caught, examined, and I think we will expect to hear from not only as cybersecurity companies trying to make mileage out of this potentially and perhaps trying to take customers, but also really from those who look at cyber defense in this country and worry that there are simply too many holds.

I think this comes down to exactly that the single point of failure. As we speak to customers, as we speak to experts in this area, it really does become clear that some of the things that protect people are also very very closely nestled inside their systems, and so if something does go wrong. It has tremendous potential to affect everything. This is another one of those single points of failure that simply hadn't been noticed, caught, examined, and I think we will expect to hear from not only as cybersecurity companies trying to make mileage out of this potentially and perhaps trying to take customers, but also really from those who look at cyber defense in this country and worry that there are simply too many holds.

Katrina hold that thought bloombergs Katrina Manson with the latest reporting on CrowdStrike. Other companies in the space, Let's stick with cybersecurity and bring in Gil Schwed, founder and CEO of Checkpoint Software Technologies, which just release its second quarter results beat expectations and also announce a new incoming CEO. And Gil, we will get to that, I promise. But you're in the game also of endpoint security.

Katrina hold that thought bloombergs Katrina Manson with the latest reporting on CrowdStrike. Other companies in the space, Let's stick with cybersecurity and bring in Gil Schwed, founder and CEO of Checkpoint Software Technologies, which just release its second quarter results beat expectations and also announce a new incoming CEO. And Gil, we will get to that, I promise. But you're in the game also of endpoint security.

To start.

To start.

What's the last seven days or so been like for you and your company incoming and outgoing in your response to what happened with CrowdStrike.

What's the last seven days or so been like for you and your company incoming and outgoing in your response to what happened with CrowdStrike.

So, like everybody else, we've been watching it and supporting customers and helping in what we can be helped. It's not a cybersecurity bug. It is a software bag that shouldn't have happened. But it shows us how dependent us in software that can take the world up and down. And it's also a very strong We need a very tight balance between these quick automatic updates and the cyber risks that are involved, because these quick updates are supposed to help solve vulnerabilities, and unfortunately, every week versus dozens of vulnerabilities that are discovered in companies, and we really need these quick updates to stop these attackers.

So, like everybody else, we've been watching it and supporting customers and helping in what we can be helped. It's not a cybersecurity bug. It is a software bag that shouldn't have happened. But it shows us how dependent us in software that can take the world up and down. And it's also a very strong We need a very tight balance between these quick automatic updates and the cyber risks that are involved, because these quick updates are supposed to help solve vulnerabilities, and unfortunately, every week versus dozens of vulnerabilities that are discovered in companies, and we really need these quick updates to stop these attackers.

So gil have you changed anything?

So gil have you changed anything?

Has the industry changed anything architecturally speaking, that would mean that this cannot happen and become the single point of failure.

Has the industry changed anything architecturally speaking, that would mean that this cannot happen and become the single point of failure.

Again, I think we are learning, I mean the entire industry, and again I don't want to exclude us. We need to learn how to create this balance between quick updates on one hand and avoiding vulnerabilities, which is also very very important, and I think that's a lesson that the entire world needs to learn.

Again, I think we are learning, I mean the entire industry, and again I don't want to exclude us. We need to learn how to create this balance between quick updates on one hand and avoiding vulnerabilities, which is also very very important, and I think that's a lesson that the entire world needs to learn.

Kil I appreciate it. Early in this process. There are questions about the future of firewalls, and I want to ask you about whether there's going to be the sort of architectural shift in cyber security in the landscape. Our analysts at Bloomberg Intelligence talk about a move to agent loss delivery and security from agents, like in the case of endpoint security provided by CrowdStrike.

Kil I appreciate it. Early in this process. There are questions about the future of firewalls, and I want to ask you about whether there's going to be the sort of architectural shift in cyber security in the landscape. Our analysts at Bloomberg Intelligence talk about a move to agent loss delivery and security from agents, like in the case of endpoint security provided by CrowdStrike.

Big picture, how do you see that playing out.

Big picture, how do you see that playing out.

In the last thirty years. Again, I'm in this business for thirty one years, and I think we've kind of invested the network cyber security part of things. With the Internet, there's always again, there's dozens of technologies, even hundreds of technologies. The two biggest one are the network security and the endpoint technology, and I think we need both. I mean, it would be easy for me to say everybody will shift to the network. Many times people we'll say the other around. But at the end of the day, we need both the end point security and the perimeter security, and each one of them compliments each other. And still with all of that, we're still facing a lot of cyber risks. They're just growing.

In the last thirty years. Again, I'm in this business for thirty one years, and I think we've kind of invested the network cyber security part of things. With the Internet, there's always again, there's dozens of technologies, even hundreds of technologies. The two biggest one are the network security and the endpoint technology, and I think we need both. I mean, it would be easy for me to say everybody will shift to the network. Many times people we'll say the other around. But at the end of the day, we need both the end point security and the perimeter security, and each one of them compliments each other. And still with all of that, we're still facing a lot of cyber risks. They're just growing.

Unfortunately, there is.

Unfortunately, there is.

So much to talk about with your company and your industry kill because you, of course have managed to bat expectations in your earnings. You're seeing the revenue growth as it had been anticipated. You've got a new CEO coming in but also we've got M and A not happening, potentially happening.

So much to talk about with your company and your industry kill because you, of course have managed to bat expectations in your earnings. You're seeing the revenue growth as it had been anticipated. You've got a new CEO coming in but also we've got M and A not happening, potentially happening.

Google and Wiz for example.

Google and Wiz for example.

Some of the interpretation is with your new CEO coming in nadav Zaverira, that maybe you'll do more M and A then maybe you could be beefing up pursuing deals.

Some of the interpretation is with your new CEO coming in nadav Zaverira, that maybe you'll do more M and A then maybe you could be beefing up pursuing deals.

Do you agree first, I hope so, I definitely hope that we'll do more M and as we've been doing two a year in the last few years. But we can do more and we can do bigger ones. And I do think that what happening between with and Google is actually very interesting. A amazing company built a very fast leadership in the cloud security space, and I think the fact that they want to remain stand alone and build a large companies something that we can all admire because it will take so many many years to get to the same financial numbers that we got with this. I mean rumor is about wed deal.

Do you agree first, I hope so, I definitely hope that we'll do more M and as we've been doing two a year in the last few years. But we can do more and we can do bigger ones. And I do think that what happening between with and Google is actually very interesting. A amazing company built a very fast leadership in the cloud security space, and I think the fact that they want to remain stand alone and build a large companies something that we can all admire because it will take so many many years to get to the same financial numbers that we got with this. I mean rumor is about wed deal.

We really want to talk about just how much you continue to be innovating over in this space and Gilschwared comeback. Of course, I currently SEEO checkpoints, software technologies handing over those remains here remains as founder though, and what have we got coming up?

We really want to talk about just how much you continue to be innovating over in this space and Gilschwared comeback. Of course, I currently SEEO checkpoints, software technologies handing over those remains here remains as founder though, and what have we got coming up?

Yeah, a lot more in the news time for Talking Tech.

Yeah, a lot more in the news time for Talking Tech.

First up, hackers have leaked internal documents stolen from Lead US Holdings. That's according to sources. Lead US is one of the largest IT service providers to the US government, servicing the likes of the Pentagon and NASA. A company spokesperson says the leak stems from a previously disclosed breach and had no effect on their network or any sensitive customer data. Plus Meta has removed over sixty three thousand accounts in Nigeria linked to scammers. The parent company of Facebook said they removed accounts who used its social media platform to blackmail and sexually extort its users. The mass removal took place at the end of May, but just six weeks after a Bloomberg article detailed the rise of sex shaution scams on apps like Instagram and Snap and shares of Netty's a climbing. The company saw its biggest intro day jump in over a month as it gets set to launch its mobile game, the Raka Blade Point Mobile. According to Goldman Sachs, the game publisher is expected to generate sales of eight hundred and eighty million from the game over its first twelve months. Nettie says forty million people have already pre registered for the game.

First up, hackers have leaked internal documents stolen from Lead US Holdings. That's according to sources. Lead US is one of the largest IT service providers to the US government, servicing the likes of the Pentagon and NASA. A company spokesperson says the leak stems from a previously disclosed breach and had no effect on their network or any sensitive customer data. Plus Meta has removed over sixty three thousand accounts in Nigeria linked to scammers. The parent company of Facebook said they removed accounts who used its social media platform to blackmail and sexually extort its users. The mass removal took place at the end of May, but just six weeks after a Bloomberg article detailed the rise of sex shaution scams on apps like Instagram and Snap and shares of Netty's a climbing. The company saw its biggest intro day jump in over a month as it gets set to launch its mobile game, the Raka Blade Point Mobile. According to Goldman Sachs, the game publisher is expected to generate sales of eight hundred and eighty million from the game over its first twelve months. Nettie says forty million people have already pre registered for the game.

Claren Now you love been a gaming ed.

Claren Now you love been a gaming ed.

Meanwhile, coming up, we'll have blue Eggs list of ten AI startups that you have to watch this year.

Meanwhile, coming up, we'll have blue Eggs list of ten AI startups that you have to watch this year.

That's coming up next.

That's coming up next.

Meanwhile, though, keep an eye on certain shares. More earnings AT and T added far more mobile phone subscribers now. Actually Wall Street analyst had expected in the second quarter, fewer customers canceling, many adding wireless services to their broad brand plans were up almost five percent.

Meanwhile, though, keep an eye on certain shares. More earnings AT and T added far more mobile phone subscribers now. Actually Wall Street analyst had expected in the second quarter, fewer customers canceling, many adding wireless services to their broad brand plans were up almost five percent.

T Mobile down more than one percent.

T Mobile down more than one percent.

Not their earnings splashing some cash for win nine billion dollars in a joint venture with a private equity firm that's KKR to buy five optic internet service provider Metronet.

Not their earnings splashing some cash for win nine billion dollars in a joint venture with a private equity firm that's KKR to buy five optic internet service provider Metronet.

This is Room Med Technology.

This is Room Med Technology.

Bloomberg is out with its second annual leader Board of AI startups. The boom and AI innovation has led to tens of billions of dollars funneled into AI companies in just the first half of this year alone. From Open Ai and Perplexity, Tosuno and many more. Of these ten startups you see here are some of the biggest and best funded to be watching right now. Let's bring in one of the co authors and one of the assemblers of such a list. It is here the top ten, Bloomboat Rangel Mets. Let's start with methodology. Some of it's obvious. Open AI and anthropic are way up there. Perplexity super interesting. But how did you and Sharene and Dina Bass put this together?

Bloomberg is out with its second annual leader Board of AI startups. The boom and AI innovation has led to tens of billions of dollars funneled into AI companies in just the first half of this year alone. From Open Ai and Perplexity, Tosuno and many more. Of these ten startups you see here are some of the biggest and best funded to be watching right now. Let's bring in one of the co authors and one of the assemblers of such a list. It is here the top ten, Bloomboat Rangel Mets. Let's start with methodology. Some of it's obvious. Open AI and anthropic are way up there. Perplexity super interesting. But how did you and Sharene and Dina Bass put this together?

Yeah, so we used well, some of it is a little bit of thinking, you know, of like what do we think should be on this list? It should be pointed out this is not a ranked list, so it's not like one one through ten, you know, it's just it's arbitrarily listed on the list.

Yeah, so we used well, some of it is a little bit of thinking, you know, of like what do we think should be on this list? It should be pointed out this is not a ranked list, so it's not like one one through ten, you know, it's just it's arbitrarily listed on the list.

But a lot of it is related.

But a lot of it is related.

To the evaluation how much money leaveries and also buzz, which is admittedly a hard factor to pin down.

To the evaluation how much money leaveries and also buzz, which is admittedly a hard factor to pin down.

That's kind of up to up to your opinion.

That's kind of up to up to your opinion.

Yeah, Like, let's dwell on like a company like Suno.

Yeah, Like, let's dwell on like a company like Suno.

Many of us have heard of the other players, but Sono it's Massachusetts based, it's five hundred million dollar evaluation. Oh, but nothing in comparison to open Ai. But why would you pick this particular AI music generator?

Many of us have heard of the other players, but Sono it's Massachusetts based, it's five hundred million dollar evaluation. Oh, but nothing in comparison to open Ai. But why would you pick this particular AI music generator?

Yeah, Ason, it was one of a couple of companies on this list.

Yeah, Ason, it was one of a couple of companies on this list.

That may sound a little surprising at first because it hasn't raised a time money.

That may sound a little surprising at first because it hasn't raised a time money.

It's not worth a ton of money.

It's not worth a ton of money.

But it has gotten a ton of attention in good ways and bad both from people that are using it to make these very complicated sounding songs, kind of generating music that just wasn't possible until quite recently with AI. But it's also gotten the ire of the very famously litigious music industry. The biggest record labels in the world sued Suno and one of its competitors, Udo recently, claiming that it used songs copyrighted songs unlawfully in its training data.

But it has gotten a ton of attention in good ways and bad both from people that are using it to make these very complicated sounding songs, kind of generating music that just wasn't possible until quite recently with AI. But it's also gotten the ire of the very famously litigious music industry. The biggest record labels in the world sued Suno and one of its competitors, Udo recently, claiming that it used songs copyrighted songs unlawfully in its training data.

Let's go geographically, because I bring up a Cambridge based company. These are largely US based companies actually, whether they be in New Jersey or whether they be in San Francisco.

Let's go geographically, because I bring up a Cambridge based company. These are largely US based companies actually, whether they be in New Jersey or whether they be in San Francisco.

But there is what one.

But there is what one.

Canadian one French is it hard to find international winners Right now?

Canadian one French is it hard to find international winners Right now?

I think there's an increasing number of really cool, strong inter staying companies all around the world. We actually relied on some of our Bloomberg technology reporders that are in other parts of the world to help us figure out who in your geography do you think is most important? And also this year to give a sense of how hard it was to figure out who should.

I think there's an increasing number of really cool, strong inter staying companies all around the world. We actually relied on some of our Bloomberg technology reporders that are in other parts of the world to help us figure out who in your geography do you think is most important? And also this year to give a sense of how hard it was to figure out who should.

Be on this list.

Be on this list.

This year we added an additional six companies that are ones we think people should also be keeping an eye on, and a number of those are from outside the US as well, So who knows next year those might be also on the top ten.

This year we added an additional six companies that are ones we think people should also be keeping an eye on, and a number of those are from outside the US as well, So who knows next year those might be also on the top ten.

You know, I look at the list and how many of the news headlines and stories for those companies we've covered on the show, like super focused on their fundraising, like you pointed out, But I'm a user of chat, GPT and GROCK, and I've kind of played a bit with perplexity how much was the sort of real world use of the technology. So those companies are making a part of your decision in saying, Okay, these are the top ten.

You know, I look at the list and how many of the news headlines and stories for those companies we've covered on the show, like super focused on their fundraising, like you pointed out, But I'm a user of chat, GPT and GROCK, and I've kind of played a bit with perplexity how much was the sort of real world use of the technology. So those companies are making a part of your decision in saying, Okay, these are the top ten.

That's absolutely some of it.

That's absolutely some of it.

I think Opening Eye is an easy company to put on a list like this because you see it achieving in like the multiple different areas that we were looking at. It has brand recognition, It clearly has corporate users. It also has consumers that are really interested in the company. It's also raised a ton of money over time, and it's worth a lot of money. But some of these other companies, it was more like it was a combination of factors, but they might not have been up there on every single one. And it's true that sometimes it is hard to gauge buzz if your entirely enterprise focused, right, like, we don't always know who a ton of your customers are, for instance, because a lot of companies aren't are.

I think Opening Eye is an easy company to put on a list like this because you see it achieving in like the multiple different areas that we were looking at. It has brand recognition, It clearly has corporate users. It also has consumers that are really interested in the company. It's also raised a ton of money over time, and it's worth a lot of money. But some of these other companies, it was more like it was a combination of factors, but they might not have been up there on every single one. And it's true that sometimes it is hard to gauge buzz if your entirely enterprise focused, right, like, we don't always know who a ton of your customers are, for instance, because a lot of companies aren't are.

Either still experimenting with AI and not.

Either still experimenting with AI and not.

Like really really using it in their daily practices, or they might not want to be super public about what software they're using.

Like really really using it in their daily practices, or they might not want to be super public about what software they're using.

Noted Rachel Metz. You and the team is always doing great work. Thanks for bringing it to us. We appreciate it.

Noted Rachel Metz. You and the team is always doing great work. Thanks for bringing it to us. We appreciate it.

I am so very honored, and I pledge to you I will spend the coming weeks continuing to unite our party so that we are ready to win.

I am so very honored, and I pledge to you I will spend the coming weeks continuing to unite our party so that we are ready to win.

In November, Vice President Kamala Harris there vowing to win the election in her first campaign rally, and after, of course, President Biden pulled out of the race and endorsed Harris.

In November, Vice President Kamala Harris there vowing to win the election in her first campaign rally, and after, of course, President Biden pulled out of the race and endorsed Harris.

Many gen Z voters were quick to.

Many gen Z voters were quick to.

Embrace the campaign through means, video edits or the VP that have well since gone viral on TikTok, on Instagram, on x Nayla Zaiden can talk us through the CEO of Future Caucus, a non partisan organization for young policymakers.

Embrace the campaign through means, video edits or the VP that have well since gone viral on TikTok, on Instagram, on x Nayla Zaiden can talk us through the CEO of Future Caucus, a non partisan organization for young policymakers.

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You join us now for more.

Basically, what has become a mean frenzy so quickly previous speeches jumped upon brat summer has become well, Kamala is Brat. This is a moment for gen Z to be awakened. Why is this happening so effectively?

Basically, what has become a mean frenzy so quickly previous speeches jumped upon brat summer has become well, Kamala is Brat. This is a moment for gen Z to be awakened. Why is this happening so effectively?

I love this and the fact that you just said on Bloomberg, come is Brat is just an incredible turn of events that history we're living through.

I love this and the fact that you just said on Bloomberg, come is Brat is just an incredible turn of events that history we're living through.

I think, listen, you.

I think, listen, you.

Don't have to be a political expert to know that the past few weeks, months, years in politics have felt exhausting. The race between two people who we have seen this matchup before has felt static, and this moment has introduced some dynamism and frankly, some joy back into I think what's otherwise a really tense political moment and seeing the vice President's team capitalize on it, but also just a lot of organic content from random Internet users really speaks to the sense of joy. I think that people are infusing back into the conversation where it really was lacking.

Don't have to be a political expert to know that the past few weeks, months, years in politics have felt exhausting. The race between two people who we have seen this matchup before has felt static, and this moment has introduced some dynamism and frankly, some joy back into I think what's otherwise a really tense political moment and seeing the vice President's team capitalize on it, but also just a lot of organic content from random Internet users really speaks to the sense of joy. I think that people are infusing back into the conversation where it really was lacking.

Leila on one sec director producer just telling me they're adding Caroline saying that to the show reel for twenty twenty four for the benefit of our global audience. Caroline and I have seen it, of course, and engage social media. Explain brought to us, Caroline, please, then we'll let Laila Way in.

Leila on one sec director producer just telling me they're adding Caroline saying that to the show reel for twenty twenty four for the benefit of our global audience. Caroline and I have seen it, of course, and engage social media. Explain brought to us, Caroline, please, then we'll let Laila Way in.

Well, Charlie XCX is Bratt, which has got this new song that basically is all about Bratt brat summer. And what is BRATCHI says, it's a kind of it's a female who's quick to laugh, who's doesn't take itself too seriously, but goes deep.

Well, Charlie XCX is Bratt, which has got this new song that basically is all about Bratt brat summer. And what is BRATCHI says, it's a kind of it's a female who's quick to laugh, who's doesn't take itself too seriously, but goes deep.

Perhaps enjoys partying slightly.

Perhaps enjoys partying slightly.

I mean, why, Layla, has this been a lexicon that's going to be different to mobilize gen z and to the point where we see perhaps Trump to his to his campaign's efforts thinking about crypto as the way to link to millennial or younger voters.

I mean, why, Layla, has this been a lexicon that's going to be different to mobilize gen z and to the point where we see perhaps Trump to his to his campaign's efforts thinking about crypto as the way to link to millennial or younger voters.

Yeah, well, you know, the race really was about age for months, and ultimately President Biden made his decision in large part because of this push to move to generational future that he just you know, wasn't representing, and so the willingness to lean into something that appeals so deeply to young people are at least sort of speaks their language. I think is people feel heard, people feel like excited, and I think I can't predict the future. I can't tell you how it will affect the vice president's campaign, in part because you know, we don't actually have an official nominee until the Nuns later next month. But I think one thing to know is that sebby social media users still need to to use another phrase of the moment, live in the context, right, So gen Z might have an absurd sense of humor, and they might really enjoy these sort of buzzwords and these trendy memes, but at the end of the day, they're serious and they're informed about policies they care about.