From Mahard where Innovation of Money and Power Collie in Silicon Valley, Nbon. This is Bloomberg Technology with Caroline Hyde and ed Luod love.

From Mahard where Innovation of Money and Power Collie in Silicon Valley, Nbon. This is Bloomberg Technology with Caroline Hyde and ed Luod love.

No from New York and San Francisco. This is Bluemberg Technology.

No from New York and San Francisco. This is Bluemberg Technology.

ARM.

ARM.

It's interested in Intel's product division, but Intel turns down. ARMS advances and.

It's interested in Intel's product division, but Intel turns down. ARMS advances and.

China stocks in the US are set for their best week since twenty twenty two, and money is green.

China stocks in the US are set for their best week since twenty twenty two, and money is green.

When it comes to database and nuclear build out. US Energy Secretary Grandhome supports the USAI efforts to expand even with foreign investment, and bring you her perspective. But first we start with the latest chip story. ARM. We understand approaching Intel about potentially buying the chip makers product division, only to be told that the business isn't for sale, according to a source who points out that ARM didn't express interest in Intel's manufacturing operations. Now representatives representatives both ARM and Intel declined comment. Let's break it all down, Bloomberg Intelligence senior analyst Manley saying, the rationale here for a company that designs chips is what Mandy.

When it comes to database and nuclear build out. US Energy Secretary Grandhome supports the USAI efforts to expand even with foreign investment, and bring you her perspective. But first we start with the latest chip story. ARM. We understand approaching Intel about potentially buying the chip makers product division, only to be told that the business isn't for sale, according to a source who points out that ARM didn't express interest in Intel's manufacturing operations. Now representatives representatives both ARM and Intel declined comment. Let's break it all down, Bloomberg Intelligence senior analyst Manley saying, the rationale here for a company that designs chips is what Mandy.

Well. So when you think about you know, Armed, they provide the IP blocks, they don't design or manufacture their chips, and in this case, look, Intel has a lot of IP within the company, it's tied to the X eighty six architecture. Obviously ARM has a different architecture.

Well. So when you think about you know, Armed, they provide the IP blocks, they don't design or manufacture their chips, and in this case, look, Intel has a lot of IP within the company, it's tied to the X eighty six architecture. Obviously ARM has a different architecture.

But when you think about you.

But when you think about you.

Know, alterra side or any other business that's adjacent, that's where you know, ARM may be interested in acquiring some of that instruction set or adjacent clients, whether it's FPBA or something along those lines.

Know, alterra side or any other business that's adjacent, that's where you know, ARM may be interested in acquiring some of that instruction set or adjacent clients, whether it's FPBA or something along those lines.

That will be my guest the mandate we resrate that according to this Bloomberg ARMS approach to Intel was rebuffed.

That will be my guest the mandate we resrate that according to this Bloomberg ARMS approach to Intel was rebuffed.

But it's the same logic with Qualcomm.

But it's the same logic with Qualcomm.

Right, they've had success on ARM based processes, why go to X eighty six. I note your colleagues had interesting research overnight as well that let's say Intel gets even deeper into distress and they start looking at options. How's ARM going to finance such a thing?

Right, they've had success on ARM based processes, why go to X eighty six. I note your colleagues had interesting research overnight as well that let's say Intel gets even deeper into distress and they start looking at options. How's ARM going to finance such a thing?

Well, I mean, look at ARMS valuation.

Well, I mean, look at ARMS valuation.

It's creating almost fifty percent above Intel's marketcap. And look when you do this some of the parts. Obviously, Intel has got a lot more businesses that they could divest, but in the case of ARMED, their stock is currently at probably the best premium within the semi space. So it could be stark. I would imagine, you know, it will be a buyout of some of the portion of Intel's business.

It's creating almost fifty percent above Intel's marketcap. And look when you do this some of the parts. Obviously, Intel has got a lot more businesses that they could divest, but in the case of ARMED, their stock is currently at probably the best premium within the semi space. So it could be stark. I would imagine, you know, it will be a buyout of some of the portion of Intel's business.

So clearly we're talking about a.

So clearly we're talking about a.

Much smaller pie within Intel that ARM is interested in. In the case of Qualcom, I mean they were us said at least based on the rumors in the bulk of Intel's business. So I think it's a different transaction if you are looking at ARM versus Pollcom here and.

Much smaller pie within Intel that ARM is interested in. In the case of Qualcom, I mean they were us said at least based on the rumors in the bulk of Intel's business. So I think it's a different transaction if you are looking at ARM versus Pollcom here and.

All of this, as we say, thus far has just been people familiar, particularly with the Qualcom as you called it rumor, but we call reporting. I'm interested in Mandy more broadly about how benefits in any scenario here or not, as the case may be. What if Intel went with a Qualcom, for example.

All of this, as we say, thus far has just been people familiar, particularly with the Qualcom as you called it rumor, but we call reporting. I'm interested in Mandy more broadly about how benefits in any scenario here or not, as the case may be. What if Intel went with a Qualcom, for example.

Well, in the case of ARM, I mean they are at a four billion dollar run rate when you look at in VideA, you know, over one hundred billion dollar in data center revenue built on ARM designs. So clearly ARMED has to find a way to expand into adjacent categories without really competing with their customers, which in this case are the likes of with Video and Apple. So that's where I think the IP blocks are probably the right way for them to expand into new categories. And I don't think they are getting into design or chip manufacturing. I mean that I won't be very well received in the market.

Well, in the case of ARM, I mean they are at a four billion dollar run rate when you look at in VideA, you know, over one hundred billion dollar in data center revenue built on ARM designs. So clearly ARMED has to find a way to expand into adjacent categories without really competing with their customers, which in this case are the likes of with Video and Apple. So that's where I think the IP blocks are probably the right way for them to expand into new categories. And I don't think they are getting into design or chip manufacturing. I mean that I won't be very well received in the market.

Mandeep Intel seventy percent revenue product, about thirty percent manufacturing away from approaches to takeover. There is a plan that Gelsinger outlined. What does Bloomberg Intelligence make of that plan?

Mandeep Intel seventy percent revenue product, about thirty percent manufacturing away from approaches to takeover. There is a plan that Gelsinger outlined. What does Bloomberg Intelligence make of that plan?

Well, not all pieces of the plan are viable, and that's where you know, doing foundry manufacturing for chips that are outside of Intel is so hard because they have that like everyone has that perception that Intel will end up competing with their customers.

Well, not all pieces of the plan are viable, and that's where you know, doing foundry manufacturing for chips that are outside of Intel is so hard because they have that like everyone has that perception that Intel will end up competing with their customers.

That's why the likes.

That's why the likes.

Of you know, Nvidia or any server chip maker, it's very hard to convince them to use Intel's fabs. So that's where the foundry businesses where all the struggles are. I do think the PC business will come back because X eighty six still has a mode and when there is a PC repairs se that's the one part of the business that will recover nicely. So I'm betting on the PC side. We just have to figure out how to catch up on the server side, and obviously on the foundary side, they really need to partner with hyperscalers to improve the margin profile.

Of you know, Nvidia or any server chip maker, it's very hard to convince them to use Intel's fabs. So that's where the foundry businesses where all the struggles are. I do think the PC business will come back because X eighty six still has a mode and when there is a PC repairs se that's the one part of the business that will recover nicely. So I'm betting on the PC side. We just have to figure out how to catch up on the server side, and obviously on the foundary side, they really need to partner with hyperscalers to improve the margin profile.

Of their business.

Of their business.

Bloomberg Intelligence analyst man Deep Singh, thank you very much. Now sticking with semiconductors, Tokyo Electron seeks to build a team of chip engineers in India to better ride the Modi government's push for more semiconductor manufacturing. In an exclusive interview with Bloomberg, Tokyo Electron CEO said the company plans to hire and train local engineers in or around twenty twenty six, with their first task to provide technical services to Tata Electronics. He also spoke about where he sees AI demand going in the years to come.

Bloomberg Intelligence analyst man Deep Singh, thank you very much. Now sticking with semiconductors, Tokyo Electron seeks to build a team of chip engineers in India to better ride the Modi government's push for more semiconductor manufacturing. In an exclusive interview with Bloomberg, Tokyo Electron CEO said the company plans to hire and train local engineers in or around twenty twenty six, with their first task to provide technical services to Tata Electronics. He also spoke about where he sees AI demand going in the years to come.

Listen to this.

Listen to this.

Demo. A.

Demo. A.

I think the market has just crossed the threshold of the second phase of AI. Our projection is that overall chip demand will double in the next five year is to a trillion dollars in twenty thirty, boosted by artificial intelligence as well as augmented reality, virtual reality and autonomous driving.

I think the market has just crossed the threshold of the second phase of AI. Our projection is that overall chip demand will double in the next five year is to a trillion dollars in twenty thirty, boosted by artificial intelligence as well as augmented reality, virtual reality and autonomous driving.

Meanwhile, Chinese equities kept their biggest weekly rally since two thousand and eight. Well they burst of trading that overwhelmed the Shanghai Stock Exchange, underscoring a shift in investor sentiment of course, after Beijing ramped up its economic stimulus, and the shift has been felt in Chinese stocks in the US as well, where they're set for their best week since twenty twenty two. Bloomberg's Emini Grafeo joins US for more. Now we're seeing some real risk on Is there a fomo trade going on here? As David Tepp has been outlining.

Meanwhile, Chinese equities kept their biggest weekly rally since two thousand and eight. Well they burst of trading that overwhelmed the Shanghai Stock Exchange, underscoring a shift in investor sentiment of course, after Beijing ramped up its economic stimulus, and the shift has been felt in Chinese stocks in the US as well, where they're set for their best week since twenty twenty two. Bloomberg's Emini Grafeo joins US for more. Now we're seeing some real risk on Is there a fomo trade going on here? As David Tepp has been outlining.

I think there absolutely is, But we have to remember that when you kind of zoom out here, a lot of these US listed Chinese stocks are still in negative territory on a one to three and five year basis, something like you know, Black Rocks, China, ETF. It's still a negative territory. But at least for this week, it's been an incredible week. And you do have David Tepper coming in saying he's going longer on China stocks after the both monetary and fiscal stimulus. He said he's snapping up shares of Ali Baba and by Do on valuation still being low even after these weeks like double digit gains in these stocks, and we're also one of the most read stories quant hedge funds in China have shorted that have shorted Index futures have seen heavy losses this week. If you look at a chart of the CSI three hundred index and what it's done this week literally a horizontal line or a vertical line up, and that has really kind of hammered these quant hedge funds that have been going short these funds.

I think there absolutely is, But we have to remember that when you kind of zoom out here, a lot of these US listed Chinese stocks are still in negative territory on a one to three and five year basis, something like you know, Black Rocks, China, ETF. It's still a negative territory. But at least for this week, it's been an incredible week. And you do have David Tepper coming in saying he's going longer on China stocks after the both monetary and fiscal stimulus. He said he's snapping up shares of Ali Baba and by Do on valuation still being low even after these weeks like double digit gains in these stocks, and we're also one of the most read stories quant hedge funds in China have shorted that have shorted Index futures have seen heavy losses this week. If you look at a chart of the CSI three hundred index and what it's done this week literally a horizontal line or a vertical line up, and that has really kind of hammered these quant hedge funds that have been going short these funds.

But it's been an incredible week. Yeah, that is vertical life crazy, look at that.

But it's been an incredible week. Yeah, that is vertical life crazy, look at that.

Indeed, Bloomberg Technology loves charts, Emily Graffeo loves charts.

Indeed, Bloomberg Technology loves charts, Emily Graffeo loves charts.

But why is it so crazy?

But why is it so crazy?

I mean, what is the factors behind the volatility?

I mean, what is the factors behind the volatility?

I guess you know to the upside in the case.

I guess you know to the upside in the case.

Well, so earlier this week, we had kind of the Chinese government coming in finally after kind of refusing to bring in stimulus, and they brought in stimulus not just on the fiscal side, but also on the monetary side, and it continued all week. Just earlier in the week, we had seen that the Chinese central banks kind of pull back the reserve requirements for banks, so on both the monetary and the fiscal side. It was a stimulus that investors had been not seeing all year, and that's why you had seen those stock market losses all year and now when you look at the CSI three hundred, the mainland shares, they've erased all the losses for the year. So it's all around been kind of investors reacting to the macro news. And now it seems like there's kind of this momentum trade as the quant hedge funds that were short get kicked out, we're seeing a little bit of a short squeeze. I mean, I think that chart just speaks for itself.

Well, so earlier this week, we had kind of the Chinese government coming in finally after kind of refusing to bring in stimulus, and they brought in stimulus not just on the fiscal side, but also on the monetary side, and it continued all week. Just earlier in the week, we had seen that the Chinese central banks kind of pull back the reserve requirements for banks, so on both the monetary and the fiscal side. It was a stimulus that investors had been not seeing all year, and that's why you had seen those stock market losses all year and now when you look at the CSI three hundred, the mainland shares, they've erased all the losses for the year. So it's all around been kind of investors reacting to the macro news. And now it seems like there's kind of this momentum trade as the quant hedge funds that were short get kicked out, we're seeing a little bit of a short squeeze. I mean, I think that chart just speaks for itself.

About the momentum.

About the momentum.

We'll have to see if it continues, because there have been some kind of like surprise rallies that don't always hold up. And the markets are off next week for the holiday, so good point.

We'll have to see if it continues, because there have been some kind of like surprise rallies that don't always hold up. And the markets are off next week for the holiday, so good point.

Great context. Also context is reten investors are interesting in the Chinese space.

Great context. Also context is reten investors are interesting in the Chinese space.

Yeah, and they've been crushed at least just looking at the ETF flows. I go back to MCCHI. That's the ticker of the Blackrock China ETF, which we've seen flows into, and oftentimes in ETF world, the flows follow the performance, so people see these big rallies and then they flow in and they kind of miss the top of that trade. So we've seen that happen in this particular ETF just over the years and again it's still down on the year, two year.

Yeah, and they've been crushed at least just looking at the ETF flows. I go back to MCCHI. That's the ticker of the Blackrock China ETF, which we've seen flows into, and oftentimes in ETF world, the flows follow the performance, so people see these big rallies and then they flow in and they kind of miss the top of that trade. So we've seen that happen in this particular ETF just over the years and again it's still down on the year, two year.

Five year basis.

Five year basis.

So even though there's a big rally today, I think a lot of investors have been in the trade for a while are still feeling like this is not good enough.

So even though there's a big rally today, I think a lot of investors have been in the trade for a while are still feeling like this is not good enough.

Bloomberg's Emily Graffair bringing us crazy charts. Thank you, Happy Friday.

Bloomberg's Emily Graffair bringing us crazy charts. Thank you, Happy Friday.

I want to keep the discussion going with City Index senior analysts Fionas and Kota, And it's kind of simple story, right, Chinese governments, stimulus and those kind of more downtrodden consumer facing Chinese technology companies react, particularly the ADRs. How many phone calls have you had across your desk this week about China and that corner of the market.

I want to keep the discussion going with City Index senior analysts Fionas and Kota, And it's kind of simple story, right, Chinese governments, stimulus and those kind of more downtrodden consumer facing Chinese technology companies react, particularly the ADRs. How many phone calls have you had across your desk this week about China and that corner of the market.

Ah, huge. I mean that's been the main story this week.

Ah, huge. I mean that's been the main story this week.

It's followed on as well, obviously from the Federal Reserve the previous week, so we've quickly swung attention over to China and as you said, those ADRs.

It's followed on as well, obviously from the Federal Reserve the previous week, so we've quickly swung attention over to China and as you said, those ADRs.

I mean, we've seen some phenomenal moods.

I mean, we've seen some phenomenal moods.

Just take for example JD dot Com that's up thirty four percent this week, up nine percent today. I mean, we've seen some really strong moods and the market's been when investors have been keen to pick up on those, especially given the sort of downbeat mood that they had been.

Just take for example JD dot Com that's up thirty four percent this week, up nine percent today. I mean, we've seen some really strong moods and the market's been when investors have been keen to pick up on those, especially given the sort of downbeat mood that they had been.

Towards China prior to this week.

Towards China prior to this week.

You know, there's really had been that sense that Beijing wasn't going to get its act together to really.

You know, there's really had been that sense that Beijing wasn't going to get its act together to really.

Pull out that that bazooka type.

Pull out that that bazooka type.

Sized a stimulus that the market was actually looking for. And this week we actually got a sense that perhaps that's actually going to be happening.

Sized a stimulus that the market was actually looking for. And this week we actually got a sense that perhaps that's actually going to be happening.

That's what we've seen.

That's what we've seen.

I mean, the big question here, I think now is is this a stabilization move or is this something that we're going to see you know, the Chinese authorities really support going through the rest of the year.

I mean, the big question here, I think now is is this a stabilization move or is this something that we're going to see you know, the Chinese authorities really support going through the rest of the year.

If you're just joining us here on Bloomberg Technology, our top tech story today is a Bloomberg report that arm made an approach to Intel that Intel rebuffed, all according to a single source. When you woke up to that news this morning, Fiona, what was your reaction, Well.

If you're just joining us here on Bloomberg Technology, our top tech story today is a Bloomberg report that arm made an approach to Intel that Intel rebuffed, all according to a single source. When you woke up to that news this morning, Fiona, what was your reaction, Well.

I mean Intel's definitely been in the news, hasn't it this week? I mean, you know what, this is a stock that's really down in the doldrums. It's really been struggling. It's obviously been approached by several suitors and.

I mean Intel's definitely been in the news, hasn't it this week? I mean, you know what, this is a stock that's really down in the doldrums. It's really been struggling. It's obviously been approached by several suitors and.

This is just the latest now.

This is just the latest now.

I mean, it all seems a little bit murky and unknown where this might be going as far as we know that there, it's not moving forward yet. But I think, you know, if we consider what's happened to the valuation of Intel, obviously down in the dumps right now, and it doesn't really look like the turnaround plan is really going to do the job that it needs to.

I mean, it all seems a little bit murky and unknown where this might be going as far as we know that there, it's not moving forward yet. But I think, you know, if we consider what's happened to the valuation of Intel, obviously down in the dumps right now, and it doesn't really look like the turnaround plan is really going to do the job that it needs to.

So that does mean that Intel remains vulnerable.

So that does mean that Intel remains vulnerable.

We're showing a long term year to day hhart down fifty two percent. I want to take that step back, Fiona, because it is extraordinary that the icon, one of the icons of chip making, would ever be being discussed as an acquisition or merger target, Intel, of all names. Fiona, how much does that sharpen your investors' minds that this current move of AI is so swift you've got to be on top of it.

We're showing a long term year to day hhart down fifty two percent. I want to take that step back, Fiona, because it is extraordinary that the icon, one of the icons of chip making, would ever be being discussed as an acquisition or merger target, Intel, of all names. Fiona, how much does that sharpen your investors' minds that this current move of AI is so swift you've got to be on top of it.

Yeah, that's a really good point. And I mean, you know, if we just think.

Yeah, that's a really good point. And I mean, you know, if we just think.

About where Intel was compared to for example, it's appears, you know, it was always the riding high, the strong horsemen, and that's no longer the case.

About where Intel was compared to for example, it's appears, you know, it was always the riding high, the strong horsemen, and that's no longer the case.

And it has been a relatively rapid decline.

And it has been a relatively rapid decline.

This year as you pointed out, you know, fifty percent of its value lost, and at the same time we've seen a huge rally in the valuations of those more AI focused stocks, and so that just really highlights that point that, you know, this AI trade, it's a rapid moving one and you have to be on the ball with it. And you know what I think as Intel's just lost the edge as far as its tech edge is concerned. It's just losing the ball there, and that really obviously hasn't helped the share price at all.

This year as you pointed out, you know, fifty percent of its value lost, and at the same time we've seen a huge rally in the valuations of those more AI focused stocks, and so that just really highlights that point that, you know, this AI trade, it's a rapid moving one and you have to be on the ball with it. And you know what I think as Intel's just lost the edge as far as its tech edge is concerned. It's just losing the ball there, and that really obviously hasn't helped the share price at all.

Therefore, your clients, do they want single name exposure, do they want to be stop players in this market? Stop pickers, or do they want to go broader? They don't want to have index exposure so they don't get caught out if the wind turns.

Therefore, your clients, do they want single name exposure, do they want to be stop players in this market? Stop pickers, or do they want to go broader? They don't want to have index exposure so they don't get caught out if the wind turns.

Yeah, do you know we have seen a lot of preferential preference towards index stocks just for exactly inducey is sorry, just for that reason, in order to be able to mitigate risk. There is always that concern of being caught out. Now, obviously there are some favorites where our traders and our investors are sort of, you know, happy to go into the single stocks, but more broadly speaking, we have seen.

Yeah, do you know we have seen a lot of preferential preference towards index stocks just for exactly inducey is sorry, just for that reason, in order to be able to mitigate risk. There is always that concern of being caught out. Now, obviously there are some favorites where our traders and our investors are sort of, you know, happy to go into the single stocks, but more broadly speaking, we have seen.

More of a focus on.

More of a focus on.

Indices and that also allows for when we sort of move towards rotations. You know, I think, particularly with what's going on with China this week and what we've seen of those concerns in the US previously about sort of you know, moving towards the potential hard landing in some cases with the weaker than expected job later at the start of the summer.

Indices and that also allows for when we sort of move towards rotations. You know, I think, particularly with what's going on with China this week and what we've seen of those concerns in the US previously about sort of you know, moving towards the potential hard landing in some cases with the weaker than expected job later at the start of the summer.

You know that idea that we might see rotation.

You know that idea that we might see rotation.

If you're in an index, that does allow you to benefit from those rotations potentially out of tech into EM's assets or out of tech into for example, more defensive stocks.

If you're in an index, that does allow you to benefit from those rotations potentially out of tech into EM's assets or out of tech into for example, more defensive stocks.

If we find that the data goes the wrong way, well.

If we find that the data goes the wrong way, well.

Data going the right way. On CPI today, City Index Senior Analyst Fiona Sincotta, thank you for joining us. Coming up, Morale at Germany's largest company is plunging as it goes through a major restructuring plan. Details on SAPNX. This is Blue Meg Technology. An internal survey shows how morale has plunged at Germany's most valuable company, SAP. Only thirty eight percent of employees have full trust in the software firm, but you never know it as a shareholder look. The stock a surge to a record high this year. Bloomberg's Jake Ridinski joins us for more. So, what is grinding on the employees?

Data going the right way. On CPI today, City Index Senior Analyst Fiona Sincotta, thank you for joining us. Coming up, Morale at Germany's largest company is plunging as it goes through a major restructuring plan. Details on SAPNX. This is Blue Meg Technology. An internal survey shows how morale has plunged at Germany's most valuable company, SAP. Only thirty eight percent of employees have full trust in the software firm, but you never know it as a shareholder look. The stock a surge to a record high this year. Bloomberg's Jake Ridinski joins us for more. So, what is grinding on the employees?

Jake Well, I think.

Jake Well, I think.

Part of what since shares soaring is the fact that they've dot this massive restructuring plan going on at SAP that's going to affect about one in ten of workers. So you can imagine if you're being forced to be either retrained or potentially laid off, you'd not be a.

Part of what since shares soaring is the fact that they've dot this massive restructuring plan going on at SAP that's going to affect about one in ten of workers. So you can imagine if you're being forced to be either retrained or potentially laid off, you'd not be a.

Pick that the management's doing doing a great job. This is this is the lowest we've We've been tracking this number for about three years, and this is the lowest since twenty twenty one, So it's it's clear that, you know, employees are quite worried about their future at I say, despite the really high share price.

Pick that the management's doing doing a great job. This is this is the lowest we've We've been tracking this number for about three years, and this is the lowest since twenty twenty one, So it's it's clear that, you know, employees are quite worried about their future at I say, despite the really high share price.

The restructuring was announced in January, and like all software companies around the world, it's a pivot to AI.

The restructuring was announced in January, and like all software companies around the world, it's a pivot to AI.

I guess there might be.

I guess there might be.

A cultural difference between where I am in Silicon Valley and where you are in Germany and Europe. And is it stock comp like if the stock is doing what we're showing on the screen, are don't the employees happy? Because they're going along for the ride.

A cultural difference between where I am in Silicon Valley and where you are in Germany and Europe. And is it stock comp like if the stock is doing what we're showing on the screen, are don't the employees happy? Because they're going along for the ride.

Well, this is a survey of kind of the rank and file employees. So I think a lot of these guys are not not really getting getting much in the way of conversation from from the strange spit share prices, so that also, I imagine would influence how they feel about the company. Maybe maybe you see the company's share pace storing and piguing. Why am I not getting a raise?

Well, this is a survey of kind of the rank and file employees. So I think a lot of these guys are not not really getting getting much in the way of conversation from from the strange spit share prices, so that also, I imagine would influence how they feel about the company. Maybe maybe you see the company's share pace storing and piguing. Why am I not getting a raise?

Invokes Jake Ridinsky. Great to have you on from Germany, Thank you very much.

Invokes Jake Ridinsky. Great to have you on from Germany, Thank you very much.

On Thursday, I caught up with Energy Secretory Jennifer Grahholm in Washington at a conference hosted by the Special Competitive Studies Project. I asked her about well Open AI CEO Sam Altman's efforts to raise a lot of money overseas for costly AI infrastructure projects in the United States and if there should be any concerns. Here's what she had to say.

On Thursday, I caught up with Energy Secretory Jennifer Grahholm in Washington at a conference hosted by the Special Competitive Studies Project. I asked her about well Open AI CEO Sam Altman's efforts to raise a lot of money overseas for costly AI infrastructure projects in the United States and if there should be any concerns. Here's what she had to say.

Money is green, but I do think it's important to have you know, what's the access I guess for those who are funding two very sensitive IP right, I mean these advanced chips are you know, the g pus for AI can be used for a variety of things, and we want them to be used in the right way, and so does the funder Does that mean you get access to the IP that's a question. But but we want these data centers built in the US, as I mentioned, So however they get funded, as long as that there's some boundaries on it, I think it's perfectly fine.

Money is green, but I do think it's important to have you know, what's the access I guess for those who are funding two very sensitive IP right, I mean these advanced chips are you know, the g pus for AI can be used for a variety of things, and we want them to be used in the right way, and so does the funder Does that mean you get access to the IP that's a question. But but we want these data centers built in the US, as I mentioned, So however they get funded, as long as that there's some boundaries on it, I think it's perfectly fine.

Money is green. However, I followed up by asking if there's any more regulation of AI in general needed his her response.

Money is green. However, I followed up by asking if there's any more regulation of AI in general needed his her response.

It's about national security, but it's also about competition, right. We want to we want to lead the world in in AI, and we are and we want it to stay that way, and so we don't want to, you know, we don't want to create constraints on that. However, we recognize that un constrained AI could also be used in a very negative way, and so we want to we want to channel that in the right direction.

It's about national security, but it's also about competition, right. We want to we want to lead the world in in AI, and we are and we want it to stay that way, and so we don't want to, you know, we don't want to create constraints on that. However, we recognize that un constrained AI could also be used in a very negative way, and so we want to we want to channel that in the right direction.

Sticking in the realm of hardware and AI, Meta unveiled new models of its Quest headset and Meta Connect on Wednesday, but also it's augmented reality glass is called Ohryan.

Sticking in the realm of hardware and AI, Meta unveiled new models of its Quest headset and Meta Connect on Wednesday, but also it's augmented reality glass is called Ohryan.

I sat down with metas CTO.

I sat down with metas CTO.

Andrew Bosworth to discuss the technology behind those glasses and how the company plans to expand on it.

Andrew Bosworth to discuss the technology behind those glasses and how the company plans to expand on it.

Listen to this.

Listen to this.

We already have the next two products in development based on the technology we developed for Oryan, and we think this is just a proof of how exciting the future is going to be as these technologies become consumer ready.

We already have the next two products in development based on the technology we developed for Oryan, and we think this is just a proof of how exciting the future is going to be as these technologies become consumer ready.

You may or may not guess, so you know, speak some of the team and know that that's part of the origin story. My understanding is that this is a future behavioral change that humans have to make right right now. I have a smartphone, I have a laptop, and that's the price point you want to come in at. One day a Ryan or its next generation sibling will be priced to the high end laptop PC.

You may or may not guess, so you know, speak some of the team and know that that's part of the origin story. My understanding is that this is a future behavioral change that humans have to make right right now. I have a smartphone, I have a laptop, and that's the price point you want to come in at. One day a Ryan or its next generation sibling will be priced to the high end laptop PC.

What is that price point?

What is that price point?

And is you know, give me something here, you know, will I be coming back to Menlo in ten years and finally looking at it in a consumer form or is it something more real than.

And is you know, give me something here, you know, will I be coming back to Menlo in ten years and finally looking at it in a consumer form or is it something more real than.

That long before ten years. Yeah, I think we're more than one year away, less than ten years away. But we have a very clear line of sight to a consumer product.

That long before ten years. Yeah, I think we're more than one year away, less than ten years away. But we have a very clear line of sight to a consumer product.

The price isn't clear to us yet.

The price isn't clear to us yet.

One of the big things going from a prototype like this is understanding what can we learn that allows us to simplify or what do we need to keep in future designs and that's going to control where the price lands. But we really want to get this into a price point of form factor that not just consumers use it, but developers want to build for it.

One of the big things going from a prototype like this is understanding what can we learn that allows us to simplify or what do we need to keep in future designs and that's going to control where the price lands. But we really want to get this into a price point of form factor that not just consumers use it, but developers want to build for it.

The breakthrough in technology is actually in a material silicon carbide that allows for all of this in the lenses.

The breakthrough in technology is actually in a material silicon carbide that allows for all of this in the lenses.

How does the supply chain look like a silicon carbide for somebody that wants to do consume attach.

How does the supply chain look like a silicon carbide for somebody that wants to do consume attach.

Yeah, silicon carbide was you know, the first place we looked for super high indexed glass that's refractive and that's really important for what we do for these lenses. I will say it's an incredibly difficult material to produce and to work with, and so we are also looking at multiple materials that we could use to replicate this functionality and again at a hopefully more competitive price point.

Yeah, silicon carbide was you know, the first place we looked for super high indexed glass that's refractive and that's really important for what we do for these lenses. I will say it's an incredibly difficult material to produce and to work with, and so we are also looking at multiple materials that we could use to replicate this functionality and again at a hopefully more competitive price point.

That was meta CTO Andrew Bosworth.

That was meta CTO Andrew Bosworth.

Welcome back to Bluebog Technology and Caroline Hyde in.

Welcome back to Bluebog Technology and Caroline Hyde in.

New York in San Francisco.

New York in San Francisco.

Quick check on these markets, because well, we have had a strong week not only for the NASDAK and the text talks, but also for some other risk assets. Bitcoin on Fire are up another five percent for the week, and we're seeing basically the highest since July of this year, but we're also seeing the highest of July this year for the NASDAK two three straight weeks of gains. Move on and have a look at what ultimately the risk on action means for individual names. Looking at micro strategy to the higher side. Add surprisingly with Crypto moving and managing to have a really good month of September in general, PDD extraordinary week, biggest move on record for these ADRs those names that are traded here in the United States. Of course, why well, all of that money being pumped into Chinese economy means good news for the Chinese stocks I signal one out here. Meanwhile, Intel on the downside now off by four tens percent, following the rest of the socks and the chip industry more broadly well, once again being sniffed around by various competitors or frenemies in the space. This time aren't potentially analyzing and being rebuffed according to sources, but Intel currently to the lower side. Ed what if you've got Let's.

Quick check on these markets, because well, we have had a strong week not only for the NASDAK and the text talks, but also for some other risk assets. Bitcoin on Fire are up another five percent for the week, and we're seeing basically the highest since July of this year, but we're also seeing the highest of July this year for the NASDAK two three straight weeks of gains. Move on and have a look at what ultimately the risk on action means for individual names. Looking at micro strategy to the higher side. Add surprisingly with Crypto moving and managing to have a really good month of September in general, PDD extraordinary week, biggest move on record for these ADRs those names that are traded here in the United States. Of course, why well, all of that money being pumped into Chinese economy means good news for the Chinese stocks I signal one out here. Meanwhile, Intel on the downside now off by four tens percent, following the rest of the socks and the chip industry more broadly well, once again being sniffed around by various competitors or frenemies in the space. This time aren't potentially analyzing and being rebuffed according to sources, but Intel currently to the lower side. Ed what if you've got Let's.

Go to another top story out of Europe.

Go to another top story out of Europe.

Amazon's four billion dollar investment pack with Aifirmanthropic was cleared by the UK's competition and Markets Authority, which has been increasingly hawkish on big tech. Let's go out to our tech editor in London, Amy Thompson, and the CMA explained their reasoning for letting this pass.

Amazon's four billion dollar investment pack with Aifirmanthropic was cleared by the UK's competition and Markets Authority, which has been increasingly hawkish on big tech. Let's go out to our tech editor in London, Amy Thompson, and the CMA explained their reasoning for letting this pass.

What was that reasoning, Amy, Yeah, it.

What was that reasoning, Amy, Yeah, it.

Was basically, the anthropic doesn't have enough of a market.

Was basically, the anthropic doesn't have enough of a market.

In the UK for them to have jurisdiction.

In the UK for them to have jurisdiction.

And we've kind of seen this with a few of the cases that they've taken on were I think they looked at UH Microsoft Inflection for example, and they came to a similar conclusion. So they're having a lot of look at these UH, these big tech slash AI deals, but there's not a whole lot of UH regulation happening.

And we've kind of seen this with a few of the cases that they've taken on were I think they looked at UH Microsoft Inflection for example, and they came to a similar conclusion. So they're having a lot of look at these UH, these big tech slash AI deals, but there's not a whole lot of UH regulation happening.

I guess that's a theme across here too. Amazon's investment is also being considered by the US FTC. How much is it giving these big tech companies polls?

I guess that's a theme across here too. Amazon's investment is also being considered by the US FTC. How much is it giving these big tech companies polls?

I mean, it's it's part of the same concern that we've seen from regulators UH not just in the UK, UH but in the US and Europe about the dominance that these UH big tech platforms have. And the latest iteration is a concern about I think what the CMA called UH web of connections UH with some of these buzzy AI startups and whether all of these connections we're seeing, uh, you know, Microsoft up and AI, uh Amazon anthropic, Google anthropic Microsoft inflection is uh hurting the market. But I don't think we've really seen anybody land a blow on big tech so far.

I mean, it's it's part of the same concern that we've seen from regulators UH not just in the UK, UH but in the US and Europe about the dominance that these UH big tech platforms have. And the latest iteration is a concern about I think what the CMA called UH web of connections UH with some of these buzzy AI startups and whether all of these connections we're seeing, uh, you know, Microsoft up and AI, uh Amazon anthropic, Google anthropic Microsoft inflection is uh hurting the market. But I don't think we've really seen anybody land a blow on big tech so far.

The FDC hasn't.

The FDC hasn't.

Really given an update since January. The UK's investigation into the Google anthropic relationship, you know, would appear to be based on the same premises as the Amazon one. The EU had to let the Open Ai Microsoft's deal go as well because I didn't qualify as a merger, you know. So you know, I don't think they've really landed a blow.

Really given an update since January. The UK's investigation into the Google anthropic relationship, you know, would appear to be based on the same premises as the Amazon one. The EU had to let the Open Ai Microsoft's deal go as well because I didn't qualify as a merger, you know. So you know, I don't think they've really landed a blow.

It begs the question then, about the pipeline for deals, either where you are in the UK and Europe or where I am in the States.

It begs the question then, about the pipeline for deals, either where you are in the UK and Europe or where I am in the States.

What is in the pipeline?

What is in the pipeline?

Amy, Oh, what is in the pipeline for deals? I mean, I think I think if you're a startup in Europe, for example, you're not sad to see results like this. You're you're happy to see big tech companies being able to come in and throw their weight around and give you billions of investment and give you some compute and give you access to chips, you know, but it does leave us with the same problem out in the UK and Europe that we've had for a while, which is, you know, our tech scene is still dominated by big US players.

Amy, Oh, what is in the pipeline for deals? I mean, I think I think if you're a startup in Europe, for example, you're not sad to see results like this. You're you're happy to see big tech companies being able to come in and throw their weight around and give you billions of investment and give you some compute and give you access to chips, you know, but it does leave us with the same problem out in the UK and Europe that we've had for a while, which is, you know, our tech scene is still dominated by big US players.

Amy Thompson really on top of the European tech side. We thank you. Meanwhile, five Tran, a data movement company which helps power open AIS products, is announcing it just to past three hundred million dollars in annual recurring revenue, up from two hundred million in twenty twenty three, but also striking new deals and relationships with some KEYAI players. CEO five trans George Fraser, joins us. Now let's just dwell on the numbers. Thus far six and a half thousand businesses around the world you now serve doing exactly what George.

Amy Thompson really on top of the European tech side. We thank you. Meanwhile, five Tran, a data movement company which helps power open AIS products, is announcing it just to past three hundred million dollars in annual recurring revenue, up from two hundred million in twenty twenty three, but also striking new deals and relationships with some KEYAI players. CEO five trans George Fraser, joins us. Now let's just dwell on the numbers. Thus far six and a half thousand businesses around the world you now serve doing exactly what George.

Yeah, very nice to be with you. So what via trend does is simple. On the outside, our customers are businesses that use tools like Salesforce, like Azure, like Oracle, like Workday like SAP, lots of tools to run their businesses. And what five Trend does is we gather all that data together in one place and they're able to use it to understand what's happening in their business, how their customers are using their product, optimize supply chains, all kinds of things. But the crux of what fivetrend does is it gets all your data in one place.

Yeah, very nice to be with you. So what via trend does is simple. On the outside, our customers are businesses that use tools like Salesforce, like Azure, like Oracle, like Workday like SAP, lots of tools to run their businesses. And what five Trend does is we gather all that data together in one place and they're able to use it to understand what's happening in their business, how their customers are using their product, optimize supply chains, all kinds of things. But the crux of what fivetrend does is it gets all your data in one place.

And that is pretty helpful for large language models. I'm assuming how does it benefit open Ai?

And that is pretty helpful for large language models. I'm assuming how does it benefit open Ai?

Yeah, so open ai is a great five trend customer. They're a very comprehensive use case. We centralize data about all aspects of open AI's business from all kinds of data sources, and the primary thing they do with it is use it to understand how people are using their products and guide the next generation product development.

Yeah, so open ai is a great five trend customer. They're a very comprehensive use case. We centralize data about all aspects of open AI's business from all kinds of data sources, and the primary thing they do with it is use it to understand how people are using their products and guide the next generation product development.

George Witch, executive or leader at open Ai, did you negotiate the partnership with We.

George Witch, executive or leader at open Ai, did you negotiate the partnership with We.

Work with a lot of people at open Ai. We have a Slack channel with them where there's and activities. Sometimes it's a little hard to tell, you know, who is whose counterparty. I joke that I am the chief customer support agent of the open ai account. I'm in there every week. But there's a lot there's a lot of people at opening that.

Work with a lot of people at open Ai. We have a Slack channel with them where there's and activities. Sometimes it's a little hard to tell, you know, who is whose counterparty. I joke that I am the chief customer support agent of the open ai account. I'm in there every week. But there's a lot there's a lot of people at opening that.

We work with.

We work with.

I don't know who would be the one that I would name.

I don't know who would be the one that I would name.

So the reason I ask is you explained how the sort of contract relationship works and how the data works. But as you will have seen the reporting, you know Mira Marati has decided to leave and there's consideration about a transfer for a nonprofit with a for profit subsidiary to a B corp. As a company doing business with open Ai, what does that make you think?

So the reason I ask is you explained how the sort of contract relationship works and how the data works. But as you will have seen the reporting, you know Mira Marati has decided to leave and there's consideration about a transfer for a nonprofit with a for profit subsidiary to a B corp. As a company doing business with open Ai, what does that make you think?

I think we're going to continue to have a great relationship. I think open Ai is a great company. I think they've had a complicated history because the their their product took off so explosively, unlike anything that's ever happened before. We saw it because we were replicating data for them back then. We saw their account go to the go to the moon in data volumes. So I think it's it's very exciting everything that's happening in open Ai. There's some drama that has come with it, but I think from where I said, the people I interact with they're navigating it very well.

I think we're going to continue to have a great relationship. I think open Ai is a great company. I think they've had a complicated history because the their their product took off so explosively, unlike anything that's ever happened before. We saw it because we were replicating data for them back then. We saw their account go to the go to the moon in data volumes. So I think it's it's very exciting everything that's happening in open Ai. There's some drama that has come with it, but I think from where I said, the people I interact with they're navigating it very well.

What are their accounts are going to the moon?

What are their accounts are going to the moon?

George, some big some big customers that have been growing with us a lot recently. For example, LVMH. We were just talking about what's going on in Europe a moment ago on the previous segment. So LVMH is a big customer. There a different kind of use case. They're mostly centralizing data from earps from SAP in order to do supply chain optimization and things like that. But that's another great example of a big customer right now.

George, some big some big customers that have been growing with us a lot recently. For example, LVMH. We were just talking about what's going on in Europe a moment ago on the previous segment. So LVMH is a big customer. There a different kind of use case. They're mostly centralizing data from earps from SAP in order to do supply chain optimization and things like that. But that's another great example of a big customer right now.

Yes, we've been covering that company during the show today. On your ar R growth, it's really interesting companies like yours, it's year on year quite to jump. What did you have to do to get there? A big sort of hiring effort on the sales team. What is the kind of cost of that revenue growth?

Yes, we've been covering that company during the show today. On your ar R growth, it's really interesting companies like yours, it's year on year quite to jump. What did you have to do to get there? A big sort of hiring effort on the sales team. What is the kind of cost of that revenue growth?

You know, in the last year, Like a lot of technology companies, the last couple of years, we have discovered rediscovered efficient growth and so the headcount of five Tran has not grown a ton in the last couple of years. We've been able to grow the revenue and grow the number of customers and do more with more or less the same amount of people at the company. I think it's just it's a lot of hard work by the team. It's a lot of word of mouth out there in the market that five Tran works. Five Tran solves what can be a very ugly problem for companies of getting their data from all these systems wrangled together, and I think that's what's driving our growth.

You know, in the last year, Like a lot of technology companies, the last couple of years, we have discovered rediscovered efficient growth and so the headcount of five Tran has not grown a ton in the last couple of years. We've been able to grow the revenue and grow the number of customers and do more with more or less the same amount of people at the company. I think it's just it's a lot of hard work by the team. It's a lot of word of mouth out there in the market that five Tran works. Five Tran solves what can be a very ugly problem for companies of getting their data from all these systems wrangled together, and I think that's what's driving our growth.

I mean speaking to of vcs George, and a lot of them will say. The hard thing is to understand how long these customers are locked in for, how repeatable this sort of growth is, to decide really where the return on aim vestment is coming, George, of this run rate, do you think it will increase a similar sort of level.

I mean speaking to of vcs George, and a lot of them will say. The hard thing is to understand how long these customers are locked in for, how repeatable this sort of growth is, to decide really where the return on aim vestment is coming, George, of this run rate, do you think it will increase a similar sort of level.

The market for what we do is enormous. Most data centralization is do it yourself. It's not mostly other companies that we compete with, its internal pipelines that people build themselves and convincing them that they don't have to do that anymore. So the total market for centralizing data in the way that we do is tens of billions of dollars. So in principle we have the ability to grow at a high rate for decades. There are challenges, there are things we need to make better about our products, there are things we need to execute better on, but we believe that the ceiling for us is very high.

The market for what we do is enormous. Most data centralization is do it yourself. It's not mostly other companies that we compete with, its internal pipelines that people build themselves and convincing them that they don't have to do that anymore. So the total market for centralizing data in the way that we do is tens of billions of dollars. So in principle we have the ability to grow at a high rate for decades. There are challenges, there are things we need to make better about our products, there are things we need to execute better on, but we believe that the ceiling for us is very high.

George Fraser, CEO of five trand really appreciate you being here on bloomber Technology doing business with some very interesting names in the world's tech Now coming up our conversation with tech entrepreneur Alexis Ohanian of seven seven six and his latest investment is in the field of sports. Really interesting one that's next. This is Bloomberg Technology. Alexis o'hanian. You know him as an entrepreneur, a tech titan, an investor, and now more than ever a heavyweight in supporting female athletes, once invested in Angel City Football Club and now betting big on professional track and field with his company AFLOSS. Here's Alexis on how Athlos seems to be lucrative for athletes.

George Fraser, CEO of five trand really appreciate you being here on bloomber Technology doing business with some very interesting names in the world's tech Now coming up our conversation with tech entrepreneur Alexis Ohanian of seven seven six and his latest investment is in the field of sports. Really interesting one that's next. This is Bloomberg Technology. Alexis o'hanian. You know him as an entrepreneur, a tech titan, an investor, and now more than ever a heavyweight in supporting female athletes, once invested in Angel City Football Club and now betting big on professional track and field with his company AFLOSS. Here's Alexis on how Athlos seems to be lucrative for athletes.

Ten percent of all the revenue spent four AFLOS. So that's broadcast, that's tickets, that's merchant, it's hot dogs, goes indoor pool and is divided evenly among every one of the thirty six women who lines up to compete tonight. And that's in addition to the record breaking person. And it's just the start. And so how long will it take? I don't know, but I believe this sport, it's the original professional sport. This sport can and should be as big outside of the Olympics as it is during. And if we can do that, then there's no reason why we can't have purses and prizes that well.

Ten percent of all the revenue spent four AFLOS. So that's broadcast, that's tickets, that's merchant, it's hot dogs, goes indoor pool and is divided evenly among every one of the thirty six women who lines up to compete tonight. And that's in addition to the record breaking person. And it's just the start. And so how long will it take? I don't know, but I believe this sport, it's the original professional sport. This sport can and should be as big outside of the Olympics as it is during. And if we can do that, then there's no reason why we can't have purses and prizes that well.

As Alexis, and yet track and Field stars are underpaid. You know, that is kind of commonly held belief. And then I think about a lot of what you just touched on. So take Angel City FC. My relationship with Angel City is I have a friend that plays in the squad, Megan Reid.

As Alexis, and yet track and Field stars are underpaid. You know, that is kind of commonly held belief. And then I think about a lot of what you just touched on. So take Angel City FC. My relationship with Angel City is I have a friend that plays in the squad, Megan Reid.

Right, That's how I was exposed to them.

Right, That's how I was exposed to them.

But I also was exposed through Apple TV. I don't see the same level with track and Field on the streaming platforms.

But I also was exposed through Apple TV. I don't see the same level with track and Field on the streaming platforms.

What does a.

What does a.

Media deal not yet? But what does a media deal for track and field look like?

Media deal not yet? But what does a media deal for track and field look like?

Well, I think we got phase one from our friends at Box to Box, who produced a show called Sprints that captivated us on Netflix. And when we looked at partners for Athletis, remember this is today, it's just one event happening yearly. We want it to be the biggest spectacle of the sport of entertainment. We got DJD Nice, We've got Megnae Stallion performing. This is going to be one of the best events any New York sports fan will have been to. That that was our goal, and when we looked at streaming partners, we said, Okay, this is a global sport. The fan base is everywhere. They want access, so we need to make it accessible. So we wheeled and deal with different partners who understood that was our goal, and we were able to get to a place where, yeah, you can watch on an ESPN plus awesome. You can also watch it on x you can watch it on YouTube, you can watch it on his own and so access, especially globally was so important. But again this is still phase one. I'm going to tell you a much different story come Monday morning, because we have a re air on ESPN two on Sunday. Exactly the number of people who watched, who tuned in, who tweeted, who posted, who talked about it, and those are the numbers. That's the first step is to say, look, here is the thing. What if we invested real money outside of the Olympics into one of these track events?

Well, I think we got phase one from our friends at Box to Box, who produced a show called Sprints that captivated us on Netflix. And when we looked at partners for Athletis, remember this is today, it's just one event happening yearly. We want it to be the biggest spectacle of the sport of entertainment. We got DJD Nice, We've got Megnae Stallion performing. This is going to be one of the best events any New York sports fan will have been to. That that was our goal, and when we looked at streaming partners, we said, Okay, this is a global sport. The fan base is everywhere. They want access, so we need to make it accessible. So we wheeled and deal with different partners who understood that was our goal, and we were able to get to a place where, yeah, you can watch on an ESPN plus awesome. You can also watch it on x you can watch it on YouTube, you can watch it on his own and so access, especially globally was so important. But again this is still phase one. I'm going to tell you a much different story come Monday morning, because we have a re air on ESPN two on Sunday. Exactly the number of people who watched, who tuned in, who tweeted, who posted, who talked about it, and those are the numbers. That's the first step is to say, look, here is the thing. What if we invested real money outside of the Olympics into one of these track events?

Will people show up?

Will people show up?

Will people tune in? I think they will because these women are no less excellent when the Olympics end, right and so putting them on the stage, giving them this high profile attention, I think they'll deliver.

Will people tune in? I think they will because these women are no less excellent when the Olympics end, right and so putting them on the stage, giving them this high profile attention, I think they'll deliver.

An exos Hanian of seven seven six. Now, DirectTV and Dish are said to be in advanced talks to merge in a move that will create the largest US PayTV provider. According to sources, the agreement could be announced as soon as the coming days. For more by Michelle Davis joins US. Now, why combine eleven million subscribers on one side eight million on the other.

An exos Hanian of seven seven six. Now, DirectTV and Dish are said to be in advanced talks to merge in a move that will create the largest US PayTV provider. According to sources, the agreement could be announced as soon as the coming days. For more by Michelle Davis joins US. Now, why combine eleven million subscribers on one side eight million on the other.

So this is a deal that's been a really long time coming. The two of these companies attempted this merger more than twenty years ago, regulators blocked it, and it seems like now the stars or the planets are aligning for them because the world has changed so much in the past twenty years. The way that you and me view content has changed completely. It used to be twenty years ago that PayTV was the thing, you know, cable satellite Now streaming as we all know, has really taken over, and so a deal like this is really about survival for these two comppanies.

So this is a deal that's been a really long time coming. The two of these companies attempted this merger more than twenty years ago, regulators blocked it, and it seems like now the stars or the planets are aligning for them because the world has changed so much in the past twenty years. The way that you and me view content has changed completely. It used to be twenty years ago that PayTV was the thing, you know, cable satellite Now streaming as we all know, has really taken over, and so a deal like this is really about survival for these two comppanies.

Michelle, reading your story, it sounds like this is close, right close to getting over the line, at least from a sort of deal perspective.

Michelle, reading your story, it sounds like this is close, right close to getting over the line, at least from a sort of deal perspective.

What are you hearing about how it came together?

What are you hearing about how it came together?

So you know, it's been an off and on situation for more than two decades, but there are a couple of things that had to happen recently for it to be the perfect time for it to be coming soon. We're hearing that the deal could get announced as soon as Monday. Some of those things include, you know, TPG and AT and T both own Direct TV through a JV and as part of the deal that they struck a few years ago, there was a provision that said AT and T could not exit it's seventy percent stake until this past summer. And now that that has passed, it gives direct TV, you know, the corporate governance ability to do something like this. And on the dish side, Charlie Ergan, the billionaire who controls Dish Echo Star, he has been dealing with some issues on the dead side. He's spent a ton of money trying to buy Spectrum to build out the wireless business, and he has some big debt maturities coming due. And so the view is that all of this coming together at the same time could help solve both of these problems at once.

So you know, it's been an off and on situation for more than two decades, but there are a couple of things that had to happen recently for it to be the perfect time for it to be coming soon. We're hearing that the deal could get announced as soon as Monday. Some of those things include, you know, TPG and AT and T both own Direct TV through a JV and as part of the deal that they struck a few years ago, there was a provision that said AT and T could not exit it's seventy percent stake until this past summer. And now that that has passed, it gives direct TV, you know, the corporate governance ability to do something like this. And on the dish side, Charlie Ergan, the billionaire who controls Dish Echo Star, he has been dealing with some issues on the dead side. He's spent a ton of money trying to buy Spectrum to build out the wireless business, and he has some big debt maturities coming due. And so the view is that all of this coming together at the same time could help solve both of these problems at once.

EchoStar, TPG, AT and T the names behind some big stakes here. Do they remain committed to investing in the future business.

EchoStar, TPG, AT and T the names behind some big stakes here. Do they remain committed to investing in the future business.

So everything is still in flux, but Our understanding is that at this point it does sound like the stakeholders will remain stakeholders. There might be a way for some folks to take money off the table. DirecTV does generate a lot of cash flow for AT and T and TPG, so the assumption would be they would want to keep some of that, but you know, something like this would help them exit a bit if they wanted to sow.

So everything is still in flux, but Our understanding is that at this point it does sound like the stakeholders will remain stakeholders. There might be a way for some folks to take money off the table. DirecTV does generate a lot of cash flow for AT and T and TPG, so the assumption would be they would want to keep some of that, but you know, something like this would help them exit a bit if they wanted to sow.

Thanks for breaking it down and what you're looking at.

Thanks for breaking it down and what you're looking at.

More news in today's Talking Tech and First Up. Ireland has fined Meta nearly one hundred and two million dollars this after Meta notified the country's Data Protection Commission that quote inadvertently stored passwords of some users in its internal system without encryption or protection. Plus, game developer Virtuous is set to acquire a Japanese studio in the coming months as it plans to expand its presence in the country. According to its CEO, Virtuous is inactive talks with multiple studios, focusing on targets that have one hundred or fewer staff but a track record of reliability and TikTok owner Bike Dance is set to sign a ten point eight billion dollar loan. That's according to sources, About twenty lenders comprised of international and Chinese banks are said to be funding the deal, and it would mark the largest loan in Asia on record.

More news in today's Talking Tech and First Up. Ireland has fined Meta nearly one hundred and two million dollars this after Meta notified the country's Data Protection Commission that quote inadvertently stored passwords of some users in its internal system without encryption or protection. Plus, game developer Virtuous is set to acquire a Japanese studio in the coming months as it plans to expand its presence in the country. According to its CEO, Virtuous is inactive talks with multiple studios, focusing on targets that have one hundred or fewer staff but a track record of reliability and TikTok owner Bike Dance is set to sign a ten point eight billion dollar loan. That's according to sources, About twenty lenders comprised of international and Chinese banks are said to be funding the deal, and it would mark the largest loan in Asia on record.

Apple shares on the month continuing to outperform and from avoiding volatility despite growing concern around iPhone sales growth. Now a Bloomberg Intelligence survey has found that the iPhone sixteen did not excite consumers enough to warrant a smartphone super cycle, and sales growth will be just three percent year over year instead of previously projected five percent. Yesterday, analysts Morgan Stanley in UBS both noted that iPhone sixteen lead times are tracking lower than previous years discussed at all BLOMG Intelligence senior analyst Anna Ragrana, did these numbers catch you by surprise?

Apple shares on the month continuing to outperform and from avoiding volatility despite growing concern around iPhone sales growth. Now a Bloomberg Intelligence survey has found that the iPhone sixteen did not excite consumers enough to warrant a smartphone super cycle, and sales growth will be just three percent year over year instead of previously projected five percent. Yesterday, analysts Morgan Stanley in UBS both noted that iPhone sixteen lead times are tracking lower than previous years discussed at all BLOMG Intelligence senior analyst Anna Ragrana, did these numbers catch you by surprise?

Yeah.

Yeah.

I think the surprising factor was we thought it will at least match last year's refresh rate, but it's declined slightly. So when you look at it and you ask people, like, you know, how in the next twelve months, how many people are going to upgrade their phones?

I think the surprising factor was we thought it will at least match last year's refresh rate, but it's declined slightly. So when you look at it and you ask people, like, you know, how in the next twelve months, how many people are going to upgrade their phones?

And that number was somewhere around fifty five percent.

And that number was somewhere around fifty five percent.

Last year, it was around sixty the year before it was sixty four so every year we are seeing a decline in that number, which means people are keeping their phone for a longer period of time. Now, whether that's driven by cost or whether that's driven by the phone being much better than previous years, but you know, one would have thought with AI features you could have seen a slight bump in that.

Last year, it was around sixty the year before it was sixty four so every year we are seeing a decline in that number, which means people are keeping their phone for a longer period of time. Now, whether that's driven by cost or whether that's driven by the phone being much better than previous years, but you know, one would have thought with AI features you could have seen a slight bump in that.

ANARAG survey data has been a big focus for Apple investors recently. Could you kindly explain the methodology of the Bloomberg Intelligence survey for the iPhone sixteen and also kind of the breadth and depth of the data that you obtained.

ANARAG survey data has been a big focus for Apple investors recently. Could you kindly explain the methodology of the Bloomberg Intelligence survey for the iPhone sixteen and also kind of the breadth and depth of the data that you obtained.

Yeah, in this case, we go out and look at US consumers and see what kind of phone are they looking to buy, whether they are looking to buy the Promax phone or the prophone, what are the reasons they want to upgrade, how many of them want to upgrade, how many of them want to switch over? And one thing was clear, whether it was Android users or Apple users, both said that they're going to keep the phone for a longer period of time. Apple intelligence actually fell really low in the ranking of the reasons they want to upgrade. The reason still remains the same that the last few years, whether it's storage, processing, power or camera, which was in line with what we were expecting. Now, one reason for this could be that we haven't really seen the soft gare upgrade in terms of any UAI features that consumers are using. These phones are capable of doing it, but we don't have those features, and that will be launched over the next twelve months. So I think that sentiment could change as we see these features launch over the next year or so, and that.