Apple Loses Another AI Exec, Amazon’s Prime Day Weakness | Bloomberg Tech 7/8/2025

Apple Loses Another AI Exec, Amazon’s Prime Day Weakness | Bloomberg Tech 7/8/2025

AI-Generated Summary

“Bloomberg Tech” covers a range of significant developments in the technology and financial sectors. Amazon Prime Day is underway but has seen a 14% drop in sales, attributed to tariff uncertainties and reduced discounts. Significant talent shifts are occurring in the AI industry, with Meta poaching top AI engineers from Apple, including a key executive for over $200 million. This move underscores the intense competition for AI expertise and Meta’s commitment to leading in AI innovation. Meanwhile, President Trump has set August 1 as a firm deadline for reciprocal tariffs, emphasizing no extensions. Apple faces challenges in AI development, with investors expressing concerns about its lagging AI capabilities compared to rivals like Meta and Microsoft. CoreWeave’s $9 billion acquisition of CoreScientific aims to boost AI infrastructure, highlighting the growing demand for scalable data centers and compute power. The show also discusses broader market trends, including the impact of tariff policies on tech companies, the AI race, and investor perspectives on tech stocks. Additionally, Nothing, a hardware startup, is challenging big players like Apple with its new smartphone designed to promote less usage and focus. This summary captures key insights into the dynamic interplay between technology, market trends, and geopolitical factors shaping the industry.

📜 Full Transcript

>> “BLOOMBERG TECH” IS LIVE
FROM COAST-TO-COAST. WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO.
IT WAS ON RYAN DAY KICKS OFF, ALREADY SPENDING DOWN 14% —
PRIME DAY KICKS OFF, ALREADY DOWN 14%.
AND WE WILL SIT DOWN WITH MICHAEL INTRATOR.
WE TAKE YOU TO THE PUBLICLY TRADED MARKETS. FLAT ON THE NASDAQ 100 AND WHY?
CLARITY COMING FROM PRESIDENT TRUMP IN TO THE SOCIAL POST
SAYING AUGUST 1 IS THE DEADLINE AND IT WILL NOT BE EXTENDED FOR
THE IMPACT TO BE FELT OF RECIPROCAL TARIFFS.
A LOT OF NEGOTIATIONS STILL TO TAKE PLACE.
ALSO ON WHAT IS HAPPENING ON THE INDIVIDUAL STOCK LEVEL. APPLE AND META. APPLE IS DOWN. META IS SUCKING AI TALENT WITH
PROMISES OF TENS OF MILLIONS OF DOLLARS IN TAKES A TOP
EXECUTIVE , A TOP AI ENGINEER FROM APPLE.
WE’VE ALREADY GOT SOME THOUGHTS FROM LEAD INVESTORS SUCH AS CAP
PARTICULAR LOOKING — LISTEN TO WHAT SHE THOUGHT — SUCH AS
CATHIE WOOD. LISTEN TO WHAT SHE THOUGHT. >> AUTONOMOUS DRIVING IS AN AI
PROJECT, THE LARGEST ON EARTH, WE BELIEVE IT.
SO LOSING THE TALENT IT HAS AND AS I UNDERSTAND, IT LOST ANOTHER ONE TODAY TO MARK
ZUCKERBERG’S TOP 50. THEY HAVE HAD A LOT OF TROUBLE
IN THIS REGARD. I THINK THE BURDEN OF PROOF IS
ON THEM. CAROLINE:
AND SHE LEARNED THAT FROM OUR OWN MARK GURMAN WHO BROKE THE
STORY. DIG INTO WHO HE IS AND WHAT HE
HAS LEFT. >> HE IS THE DISTINGUISHED
ENGINEER AND MANAGER OF THE COMPANY’S APPLE FOUNDATION
MODELS. WE TALKED ABOUT THE AIA FEATURES AND COMPANIES BUT HOW
DOES IT GENERATIVE AI WORK? LARGE LANGUAGE MODELS.
THESE ARE THE TECHNOLOGY. ALL OF THE COMPANIES ARE RACING
TO GET THE BEST ENGINEERS IN THE WORLD TO DEVELOP THESE
MODELS. HE IS KNOWN AS PROBABLY THE
BEST OF THE BEST. HE WAS THE MOST RESPECTED AI AT APPLE AND
THE MOST RESPECTIVE EXECUTIVE AT APPLE IN ONE OF THE MOST
RESPECTED MODEL ENGINEERS IN THE ENTIRE ARTIFICIAL
INTELLIGENCE RESEARCH COMMUNITY. THIS IS A MASSIVE SWING.
AS BIG AS A HIGHER IT IS FOR META, A BIGGER LOSS FOR APPLE.
THIS WAS ONE OF THE GUYS HOLDING EVERYTHING TOGETHER.
WE HAVE KNOWN THEIR AI FEATURES HAVE BEEN STRUGGLING AND MODELS
HAVE BEEN STRUGGLING, A LOT OF BACKBONE ON WHY THEY HAVE BEEN
STRUGGLING BUT IT IS A BIG LOSS. IN ORDER TO GET HIM, THEY HAD
TO OFFER HIM A MULTIYEAR PACKAGE WORTH SOMEWHERE NORTH
OF $200 MILLION. CAROLINE: THAT IS AN EXTRAORDINARY AMOUNT
AND PAINTS THE PICTURE OF THE COMMITMENT COMING FROM MARK
ZUCKERBERG. TALK ABOUT THE MORALE LEFT AT
APPLE. MORE MIGHT LEAVE. MARK: I AM TOLD THERE ARE MORE LIKELY
TO LEAVE. HIS TOP ENGINEER LEFT A COUPLE
WEEKS AGO FROM THE FOUNDATION MODELS TEAM AND OTHERS LIVING
AS WELL. THIS CERTAINLY IS THE BEGINNING
OF WORK DEPARTURES. APPLE DOES NOT COMPENSATE IN
THE WAY AS OPENAI OR META AND WITH THIS HAS DONE IS RAISED
THE IDEA WITHIN APPLE THAT THEY ARE GOING TO NEED TO START
PAYING MORE TO RETAIN THESE PEOPLE AND SO FAR HAVE SHOWN A
RELUCTANCE TO DO SO. I AM TOLD THEY DID NOT DO A
COUNTER OFFER TO KEEP THEM. AND WHEN YOU’RE GETTING WITH A
$200 MILLION, THERE IS NOT MUCH YOU CAN DO.
AT LEAST THE PAY PACKAGES FROM META ARE NEARING WITH THE CEOS
OF THE BIGGEST COMPANIES ARE GETTING, AND YOU CAN’T DO THAT
FOR A SINGLE MANAGER OR ENGINEER. CAROLINE: SO MUCH. LET’S GET THE INVESTOR TAKE.
JED ELLERBROEK IS WITH US. I WANT TO GO BROADER.
THE COMMITMENT WE ARE SEEING FROM CERTAIN COMPANIES, TAKE
META BUT ALSO MICROSOFT AND GOOGLE AND THE HYPERSCALERS TO
INVEST WITH SUCH CERTAINTY IN WINNING THE SUPER INTELLIGENCE
RACE. IS THIS WHAT YOU WANT TO BE
HEARING AND SEEING? JED: I THINK IT IS BIG MONEY
COMPETITION AND TAKES DEEP POCKETS TO ATTRACT THE
ENGINEERING TALENT, TO GET THE COMPUTE POWER.
THE BIG COMPANIES ARE FLEXING THEIR MUSCLES AND SHOWING GREAT
COMMITMENT AND SEEING DEMAND SIGNS THAT THE EFFORT IS
WORTHWHILE AND I THINK IT IS GOING TO CONTINUE AND WE ARE
GOING TO GET A GOOD INDICATION OF THAT IN A FEW WEEKS WHEN
MICROSOFT REPORTS THE FISCAL EARNINGS AND WILL ANNOUNCE
CAPEX INTENTIONS FOR THE NEXT FISCAL YEAR.
I THINK WE WILL SEE ANOTHER BIG INCREASE. PROBABLY A DOUBLE. CAROLINE:
WITH YOUR MORE THAN TWO DECADES EXPERIENCE MANAGING MONEY IN
LARGE CAPS, IS APPLE ONE YOU HAVE TO VIEW IN A DIFFERENT
MANNER AND THE WAY THE COMPANY SEES FUTURE GROWTH? JED: APPLE IS A DEFENSIVE TECH
BUSINESS FOR INVESTORS. IT IS NOT A DYNAMIC GROWTH
BUSINESS AND HASN’T BEEN FOR SOME TIME AND WANT TO BE IN THE
FUTURE. THEY ARE BEHIND IN CAKE — AI
CAPABILITIES AND TALENTS AND RESOURCES, AND THAT IS A
CONCERN FOR INVESTORS. I THINK OF IS INTERESTING THAT
A WEEK OR TWO AGO WHEN WORD GOT OUT THAT APPLE WAS CONSIDERING USING ANTHROPIC AND AI OPEN —
OPENAI MODELS ON THE PHONE, THE STOCK WENT UP.
THE MARKET LIKED APPLE DEEMPHASIZING ITS OWN RESEARCH
EFFORT. CAROLINE: SO PIVOT TO THE COMPANIES THAT
ARE COMMITTED AND BUILDING LARGE LANGUAGE MODELS.
YOU THINK AMAZON IS A WINNER, WHY? JED: I DO. THE AWS CLOUD COMPUTING
BUSINESS IS WELL-POSITIONED TO RIDE THE WAVE OF AI SPENDING.
ENTERPRISES ARE DEPLOYING AI TOOLS ON THEIR CLOUD PLATFORMS AND I THINK THAT AWS, AZUE, AND
ORACLE ARE DOING WELL. CAROLINE: THE FUTURE OF MORE HURDLES WHEN
IT COMES TO ACCESSING CHIPS, THINKING OF ORACLE INVESTING IN
MALAYSIA. WE UNDERSTAND FROM REPORTING AT
BLOOMBERG THAT MAYBE THE ADMINISTRATION WILL MAKE IT
HARDER TO GET THE NVIDIA CHIPS INTO COUNTRIES LIKE THIS
WITHOUT LICENSES GOOD I’M INTERESTED MORE BROADLY ON HOW
THE TECH GIANTS NAVIGATING THE CURRENT TRADE ENVIRONMENT.
WE HAVE THE CURRENT HEADLINE THAT AUGUST 1 IS WHERE
PRESIDENT TRUMP IS STICKING. JED:
I THINK HE SAID THE OPPOSITE MORE OR LESS YESTERDAY.
HARD TO TAKE STOCK IN ONE DAYS WORTH OF COMMENTS FROM HIM.
THE TECH COMPANIES HAVE INCREDIBLE ADVANTAGES.
BALANCE SHEETS ARE STRONG, PRODUCING CASH FLOW, AND THEY
HAVE ALL OF THE AI CAPABILITIES WE LISTED EARLIER.
THEY ARE READY TO FLEX THE MUSCLES AND PIVOTS AND ADJUST.
I HATE THAT THEY ARE REALLY WELL-POSITIONED TO SUCCEED.
AI IS A BIG MONEY GAME. CAROLINE:
IS IT WHEN YOU WANT TO COMMIT MORE MONEY TO?
WE ARE IN RECORD HIGHS? JED: FOR SOME OF THEM, THE ANSWER IS
YES. META EVALUATION IS HIGHER THAN
NORMAL. THAT IS WHEN YOU DON’T NEED TO
RUSH AND DO IT RIGHT NOW BUT OTHERS ARE FAIRLY COMPELLING.
AMAZON IS OUR PERSONAL FAVORITES.
MICROSOFT IS AT A HUGE RUN-UP IN THE LAST MONTH AND A HALF.
MAYBE NO NEED TO RUSH ON THAT ONE.
NVIDIA IS PRETTY COMPELLING, EXCEPTIONALLY STRONG
COMPETITIVE POSITION WITH THE GPU CHIPS.
THEY JUST SENT OUT THE FIRST ONE INTO THE WILD NEXT WEEK.
IT WILL BE AN INCREDIBLY COMPELLING PRODUCT FOR
HYPERSCALERS TO PUT IN. YOU CAN PUT MORE CONFIDENTLY
INTO BUSINESSES WITH THE AI. CAROLINE:
LAST QUESTION, IS IT ALL ABOUT AMERICAN EXCEPTIONALISM HERE
STILL? JED: YEAH, IT IS SUCH AN INTERESTING
INVESTING ENVIRONMENT TODAY. WE HAVE A FAIRLY MODERATE
GROWTH U.S. ECONOMY, WITH AN AI REVOLUTION
ON THE SIDE THAT IS VERY COMPELLING AND WILL CONTINUE
FOR QUITE SOME TIME, BOTH THE INVESTMENT AND THE INFERENCE
DEMAND, SOFTWARE DEPLOYMENT OF THESE TOOLS. I THINK THAT THE OUTLOOK FOR
U.S. STOCK MARKETS AND FOR TECH STOCKS IN PARTICULAR IS PRETTY
BRIGHT. CAROLINE: MICHELLE: –JED ELLERBROEK, GREAT TO GET
YOUR PERSPECTIVE. TRADING IN LONDON ARE DOWN BY
.8%, PROFIT FELL FOR THE FIRST TIME FOR SAMSUNG AND PLUMMETED
56%. THIS IS ABOUT THE CHIPMAKER NOT
MANAGING TO WIN BUT HAVE THE HIGH-BANDWIDTH YET.
THIS IS THE BOTTOM AND SOME INVESTORS FEELING THAT WAY.
AND NOTABLY KEEPING AN EYE ON HOW THEY PERFORM OTHER EARNINGS.
COMING UP, PRESIDENT TRUMP UNVEILS A WAVE OF LETTERS,
AGAIN THREATENING KEY TRADERS WITH HIGH TARIFFS.
THIS IS “BLOOMBERG TECH”. ♪ CAROLINE:
WEDNESDAY WAS THE ORIGINAL TARIFF DEADLINE, BUT LESS THAN
A HANDFUL OF AGREEMENTS ARE READY TO ANNOUNCE AND PRESIDENT
TRUMP IS NOW STAYING — SAYING THE NEW AUGUST 1 DEADLINE WILL
NOT BE EXTENDED. LET’S GET TO KAILEY LEINZ.
HE IS TRYING TO TELL US HIS COMMITMENT TO THIS ONE. KAILEY:
HE WAS ASKED IF IT WAS A FIRM DEADLINE YESTERDAY AND HE SAID
FIRM BUT NOT DEFINITE. HE IS TRYING TO COURSE CORRECT
WITH THE TRUTH SOCIAL POST SAYING THAT ON AUGUST 1 TARIFFS
WILL START BEING PAID. HE SAID THERE IS NO CHANGE AND
THERE WILL BE NO CHANGE. INITIALLY HE SUGGESTED THERE
WOULD NOT BE A CHANGE TO THE JULY 9 DATE EITHER AND THAT IS
THE ACTION HE SIGNED YESTERDAY TO EXTEND IT FROM JULY AT NINE
TO AUGUST 1 FOR VARIOUS TRADING PARTNERS THAT WE DON’T HAVE
TRADE DEALS WITH YET. YESTERDAY WROTE 14 LETTERS AND
SENT THEM TO THE HEADS OF 14 DIFFERENT COUNTRIES OUTLINED
THE TARIFF RATE THEY WILL PAY IN THE ABSENCE OF A DEAL
RANGING FROM 25% FOR COUNTRIES LIKE JAPAN AND SOUTH KOREA, OF
THE 40% FOR COUNTRIES LIKE MYANMAR AND LAOS.
HE DID SAY OF THE COUNTRIES WOULD LIKE TO OPEN FINANCIAL
MARKETS, ELIMINATE — ELIMINATE TARIFFS AND NONE TARIFFS, COULD
BE RENEGOTIATED. THE PRESIDENT ALSO IS SAYING
ADDITIONAL LETTERS WILL BE SENT TODAY, TOMORROW AND FOR THE
NEXT SHORT PERIOD OF TIME. WE EXPECT TO GET NEWS ON NEW
TARIFF RATES SET ON VARIOUS COUNTRIES AND WE CAN SEE NEWS
ON DEALS. OUR UNDERSTANDING IS THAT DEALS
ARE GETTING CLOSER FOR INDIA, TAIWAN AND THE EUROPEAN UNION.
IT IS NOT CLEAR WHEN THEY MAY BE ANNOUNCED AND HOW ROBUST
THEY WILL BE AND WHETHER IT IS JUST TRADE FRAMEWORK WE ARE
TALKING ABOUT KNOWING THAT THE ADMINISTRATION HAS PUT TOGETHER
TO WORK ON THESE AND A STRUGGLE TO MAKE PROGRESS IN A LOT OF
ARENAS, NOT ONLY BECAUSE OF THE TARIFF RATE COUNTRIES COULD PAY
OVERALL BUT ALSO SECTORAL TARIFFS, EXISTING LIKE THOSE ON
AUTOS AND THE STEEL AND ALUMINUM.
BUT ALSO ONES THAT HAVE BEEN THREATENED AND OPENED SECTION
230 TWO INVESTIGATIONS, LIKE SEMICONDUCTORS AND
PHARMACEUTICAL COMPANIES. — SECTION 232 INVESTIGATIONS,
LIKE SEMICONDUCTORS AND PHARMACEUTICAL COMPANIES.
CAROLINE: LET’S TALK TO MICHELLE GIUDA.
YOU ARE IN THE TRUMP ADMINISTRATION FROM 2018-2020.
THE BIG PICTURE WE NEED TO REMIND OURSELVES IS WHAT THE
ULTIMATE GOAL IS HERE. YES, THEY MIGHT HAVE TO PUSH
BACK DEADLINES BUT THE AIM IS TO HAVE FAIRER TRADE.
ARE WE GETTING TO THAT POINT? MICHELLE:
THE BIG PICTURE IS VERY IMPORTANT.
TARIFFS ARE A TOOL THAT ARE A MEANS TO AN END OF A VERY BIG
OBJECTIVE, AND THAT IS FOR AMERICA TO BOTH DESIGN AND
PHYSICALLY BUILD THE TECHNOLOGY INFRASTRUCTURE THAT WILL BE THE
BACKBONE OVER THE FREE WORLD IN THE NEXT CENTURY.
IN ORDER TO DO THAT, WE HAVE TO BUILD AND IN SOME CASES REBUILD
CRITICAL INDUSTRIES AT HOME AND WE HAVE TO REBALANCE THE TRADE
ECOSYSTEM IN ORDER TO DO THAT. THE CURRENT SYSTEM
DISINCENTIVIZES OUR LEADERSHIP IN CERTAIN AREAS AND IT
PUNISHES PRODUCTION AT HOME AND ULTIMATELY EXPORT LEADERSHIP IN
IMPORTANT INDUSTRIES TO COUNTRIES OVERSEAS.
THAT CAN’T BE THE CASE IF WE ARE GOING TO LEAD IN THE NEW
TECHNOLOGY ERA. I WILL GIVE YOU A GOOD EXAMPLE.
FOR THE AI REVOLUTION TO HAPPEN, WE HAVE TO BUILD A LOT
OF DATA CENTERS. IN THE PIPELINE AT THE END OF
2024, 52 MILLION SQUARE FEET OF DATA CENTERS WE HAVE TO BUILD
IN THE UNITED STATES. YOU KNOW HOW MUCH DEAL THAT
REQUIRES? BILLIONS AND BILLIONS OF
DOLLARS OF STEEL. HOW GREAT FOR THAT TO BE BUILT
BY AMERICAN COMPANIES WITH AMERICAN WORKERS RATHER THAN
FROM ARTIFICIALLY CHEAP STEEL FROM INTERNATIONAL PARTNERS
OVERSEAS. THAT IS WHAT IS AT STAKE,
AMERICAN LEADERSHIP AND CRITICAL INDUSTRIES AND IT WILL
BE GOOD FOR US AND OUR ALLIES. CAROLINE:
MANY WOULD SAY TAKING OUT OF CHIPS AND LOOKING AT DEFENSE OR
INDEED LOOKING AT MAGNETS AND ELECTRIC VEHICLES AND
ELECTRIFICATION OF THE ECONOMY IN THE UNITED STATES, WE NEED
MORE CLARITY ON ULTIMATE DEMAND. WE ARE HEARING TIME AND TIME
AGAIN FROM THE DEFENSE TECH STARTUPS THAT THEY NEED THE
D.O.B. TO BUY AND COMMIT. WE HEAR TIME AND TIME AGAIN WE
CAN’T START EXTRACTING RARE EARTH THAT WE DON’T HAVE ACCESS
TO IN THE UNITED STATES BECAUSE THERE IS NOT CLARITY ON WHETHER
THE ENERGY FIELD WILL TRANSITION THE WAY THEY THOUGHT
AND PARTICULARLY WITH THE BIG BEAUTIFUL BILL SEEMING TO DROWN
OUT SOME OF THAT ELECTRIFICATION.
HOW DO THEY GARNER CLARITY AND SECURITY? MICHELLE:
WHEN IT COMES TO CLARITY AND CERTAINTY, I DON’T THINK THERE
WAS ANYTHING MORE CERTAIN THAN THE FACT THAT TARIFFS WERE
COMING WHEN DONALD WAS REELECTED PRESIDENT.
IT WAS THE CORE PILLAR OF HIS FIRST ADMINISTRATION WHEN I WAS
THE ASSISTANT SECRETARY. FAIRLY RECIPROCAL TRADE WAS A
COURT MESSAGE WE WERE COMMUNICATING TO EVERY TRADING
PARTNER. AND YOU CAN GO BACK TO 1988.
THERE IS AN INTERVIEW THAT DONALD TRUMP DID WITH OPRAH
WINFREY TALKING ABOUT HOW HE WOULD REVAMP U.S.
FOREIGN POLICY AND IN THAT HE TALKS ABOUT ASKING OUR ALLIES
TO PAY THEIR FAIR SHARE AND HE FOCUSES ON ALLIES BECAUSE THEY
ARE MUCH EASIER TO TALK TO THAN OUR ENEMIES AND HE HAD LET’S
WHAT COUNTRY, JAPAN AND SAYS THEY ARE DUMPING CARS AND VCRS
INTO THE AMERICAN MARKET AT THE SAME TIME THEY ARE MAKING IT
HARD FOR AMERICANS TO DO BUSINESS.
THIS IS BEEN A LONG TIME COMING. WE ARE TRYING TO REBALANCE A
TRADE SYSTEM THAT HAS EXISTED FOR 50-AND 80 YEARS IN SOME
CASES ACROSS 90 COUNTRIES. IT WILL TAKE TIME.
SOME DEADLINES WILL BE PUSHED AND IT WILL BE MESSY.
AT THE END OF THIS, IF AMERICAN CAN COME OUT LEADING AND
CRITICAL INDUSTRIES, THAT WILL GIVE A REALLY GOOD AT CERTAINTY
TO OUR BUSINESSES IN THE LONG TERM. CAROLINE:
DO WE HAVE THE TALENT TO THE MANUFACTURING HERE,
SPECIFICALLY LOOKING AT MAKING SOME THAT ARE TOUGHER? MICHELLE:
I WOULD SAY YES, AND WE WOULD BENEFIT FROM ALL OF THE
BRILLIANT TALENT FROM ACROSS THE WORLD. THE INSTITUTE IS THE LARGEST IN
THE COUNTRY COME GRADUATE TO MORE ENGINEERS THAN ANY OTHER
TOP UNIVERSITY IN THE COUNTRY. IT IS ENGINEERING EXCELLENCE
AND THAT TALENT IS READY FOR NATIONAL SECURITY JOBS AND
COMMERCIAL INDUSTRIES AND DEFENSE INDUSTRIES THAT WILL
MATTER TO OUR LEADERSHIP IN THE 21ST CENTURY.
THE SAME IS TRUE IN MANY PLACES OF THE COUNTRY.
WE HAVE THE TALENT BUT WE NEED TO INCENTIVIZE THE ECONOMIC AND
TRADE LANDSCAPE IN ORDER TO LET THEM FLOURISH. CAROLINE: MICHELLE GIUDA, GREAT TO CATCH
UP WITH YOU. COMING UP, AMAZON PRIME DAY HAS
KICKED OFF BUT SHOPPERS MIGHT NOT SEE THE HEAVY DISCOUNTS
LIKE YEARS PRIOR. MORE ON THAT NEXT.
THIS IS “BLOOMBERG TECH”. ♪ CAROLINE:
TIME NOW FOR TALKING TECH. FIRST UP, YOUR SENSITIVE DATA
WILL BE SAFER AFTER A JUSTICE DEPARTMENT WILL TAKES PLACE
AFTER THE END OF A 90 DAY GRACE PERIOD.
COMPANIES MUST COMPLY TO THE SAFEGUARD OF BOTH TRANSFERS OF
SENSITIVE DATA FROM COUNTRIES WITH NATIONAL SECURITY RISK,
CHINA AND IRAN. ANTITRUST CASE SETTLED AGAINST
SAMSUNG ALLEGING THEY WERE CONSPIRING WITH GOOGLE AND
LOCKING AMAZON BY DEFAULT. GOOGLE REMAINS A DEFENDANT ON
SEVERAL NON-ANTITRUST CASES. SOME BRANDS AND CONSUMERS ARE
SITTING OUT ON AMAZON PRIME DAY AS PRESIDENT TERMS TRADE WAR
RATTLES SENTIMENT. SOME ARE UNABLE TO OFFER
DISCOUNTS DUE TO TARIFFS. SOME SHOPPERS ARE PLANNING TO
SKIP PRIME DAY ALTOGETHER. IT IS ALREADY FALLEN 14% IN
EARLY HOURS COMPARED TO 2024. LET’S GET THE INSIDE TRACK.
IT IS IT ABOUT TARIFFS? SPENCER: TARIFFS ARE A KEY FACTOR.
THIS IS THE FIRST PRIME DAY SINCE TRUMP LIBERATION DAY
TARIFFS. IT CREATED, EVEN THOUGH A LOT
OF TARIFFS ARE ON AGAIN AND OFF AGAIN BUT A CLOUD OF
UNCERTAINTY THAT HAS FORCED BUSINESSES TO BE CAUTIOUS.
HOW MUCH INVENTORY DO WE HAVE, DO WE REALLY WANT TO DISCOUNT
IT THAT DEEPLY IF WE WANT TO PROTECT FROM TARIFFS DOWN THE
ROAD. THAT IS ALL WEIGHING DOWN ON
PRIME DAY. CAROLINE: WHY IS THERE SUCH AN EXTENDED
PERIOD AND WHAT WILL THEY ULTIMATELY OFFER? SPENCER: PRIME DAY IT STARTED AS ONE DAY
WHEN THEY STARTED IN 2015 AND IT GRADUALLY GOT LONGER.
IT WAS TWO DAYS LAST YEAR AND NOW FOUR DAYS THIS YEAR.
A LOT OF THE COMPETITORS LIKE WALMART HAS A SIXTH DATE SALE
AND TARGET HAS A WEEKLONG SALE THAT AMAZON IS LIKELY LOOKING
AT THOSE AND SAY LET’S EXTEND THE NUMBER OF DAYS AND PREVENT
US FROM LOSING THE SALE TO A LOT OF THE COMPETITORS,
ESPECIALLY COMPETITORS LIKE WALMART AND TARGET. THE APPETITE IS STRONG FOR
EVERYDAY ESSENTIALS, THINGS LIKE SNAP PACKS FOR LUNCHBOXES
AND AMAZON NEEDS TO FIGHT THEM ON THE GROCERY AISLE AS MUCH AS
FOR ELECTRONICS. CAROLINE: WHEN YOU THINK OF ELECTRONICS,
YOU THINK OF CHINA. MORE BROADLY, HOW HAVE THE
COMPANIES THAT YOU SPEAK THAT SUFFER AMAZON NAVIGATING THE ON
AGAIN, OFF AGAIN FEELING AROUND TARIFFS? SPENCER: FOR PRIME DAY, APPLE IS GOING
HARD ON DISK, DEEP DISCOUNTS. I SPOKE WITH A CRAZY COUPON
LADY WHO TRACKS THE DEALS AND THEY USE BLACK FRIDAY LASHER AS
A BENCHMARK AND THEY SEE APPLE GOING LESS THAN SOME OF THE
BLACK FRIDAY DEALS A YEAR AGO. THEY TALK ABOUT THE AIRPODS
THAT WERE DISCOUNTED BUT YOU CONTRAST WITH APPLE’S OWN LIKE
THE DISCOUNTS ON ECO SPEAKERS WERE SOFT. YOU SEE THE COMPANY’S REACT
DIFFERENTLY TO THE TARIFF SITUATION. CAROLINE:
THE QUESTION IS HOW THE SHOPPER IT REACTS.
IT BRILLIANT TO HAVE YOU. COMING UP, SPEAKING WITH MICHAEL INTRATOR UNDER THE $9
BILLION PURCHASE OF CORE SCIENTIFIC. THAT IS NEXT.
THIS IS “BLOOMBERG TECH”. ♪ CAROLINE:
WELCOME BACK TO BLOOMBERG TECH. A CHECK ON THE MARKETS.
BEING KNOCKED AROUND BY THE CHAIR HEADLINES, THE LATEST
FROM PRESIDENT TRUMP IS THAT AUGUST 1 IS HARD AND FAST AND
YOU WILL SEE THE RECIPROCAL TARIFFS ON THAT DATE.
WE ARE OFF BY .1%. TESLA AND NVIDIA UP.
AMAZON DRAGS AS PRIME DAY IS OFF TO A SLOW START.
GOOGLE IN THE RED. THE S&P OFF BY 3.8 PERCENT THIS
WEEK AS WE GET A KEY DOWNGRADE FROM GUGGENHEIM.
OPEN IRA OPTIMIZATION — OPENAI OPTIMIZATION RISK AND WORRY
ABOUT THAT. KEEP AN EYE ON THAT COMPANY
WHICH HAS RALLIED HARD AFTER IT WILL BE ENTERING THE BIG DOGS.
LET’S TAKE A LOOK AT SHARES OF COREWEAVE AND CORE SCIENTIFIC.
THEY ARE INQUIRING CORE SCIENTIFIC IN A $9 BILLION ALL
STOCK DEAL. CURRENTLY UP BY 2.4%.
ALL OF THIS IS ABOUT BOOSTING INFRASTRUCTURE TO MEET THE
INSATIABLE AI DEMAND COULD WE WILL GET THE INSIDE TRACK WITH
MICHAEL INTRATOR, THE CEO, HOT OFF OF THE HEELS OF THIS DEAL.
WHY FULLY INTEGRATED? EXPLAIN IT. MICHAEL:
THANK YOU FOR HAVING ME. THE CLOUD MARKET AT LARGE IS
GOING TO THIS INCREDIBLE INFLECTION POINT WHERE THE
SCALE OF WHAT NEEDS TO BE BUILT AND THE TYPE OF INFRASTRUCTURE
THAT NEEDS TO BE BUILT, THE SOFTWARE THAT IS REQUIRED TO
BUILD IT, ALL OF THOSE THINGS ARE CHANGING IN A GENERATIONAL
WAY. WHEN WE HAVE TALKED ABOUT OUR
COMPANY, AND I HAVE NOT BEEN SHY ABOUT THIS, I BELIEVE THERE
IS AN OPPORTUNITY TO INTEGRATE SO THAT YOU CAN DELIVER THE
BEST SOLUTIONS TO YOUR CLIENTS THAT ARE THE LARGEST, MOST
SOPHISTICATED CONSUMERS OF THIS INFRASTRUCTURE.
EARLIER THIS YEAR YOU SAW US MOVE UP THE STACK WITH THE
ACQUISITION WHERE WE PROVIDE AN EXTENSION ON THE SOFTWARE THAT
WE HAVE. OUR SOFTWARE IS REALLY FOCUSED
ON ORCHESTRATION AND MONITORING OF THE GB USE AS YOU MOVE UP
THE STACK — GBUS AS YOU MOVE UP CLOSER ON THE STACK AND IF
YOU ARE DOWN YOU ARE IN THE DATA CENTERS AND REQUIREMENTS. CAROLINE:
PEOPLE VIEWED AS BEING MORE ABLE TO BRING THE PROFITABILITY
OF THE PROFITABILITY TO BEAR BUT MANY WORRY, AND THERE IS A
DOWNGRADE ON THE STOCK AND THEY SEEMED POSITIVE ON THE
LONG-TERM IDEA OF CORE SCIENTIFIC PURCHASE BUT THE
VERTICAL DATA CENTER PROVIDED CHANGES THE VALUE STRUCTURE.
WHY GO DOWN THE STACK WHEN PERHAPS IT IS IT MORE
PROFITABLE? MICHAEL: I WOULD TAKE ISSUE WITH THAT
ASSESSMENT. CAROLINE: LET’S DO THAT. MICHAEL:
THERE ARE ENORMOUS OPPORTUNITIES FOR US TO CAPTURE
MARGIN BY IN SOURCING THE INFRASTRUCTURE COMPONENT OF IT.
NUMBER TWO IS I THINK THAT IN A MARKET THAT IS AS DYNAMIC AS
THIS MARKET IS, THE ABILITY TO HAVE OR PHYSICAL CONTROL OVER YOUR ABILITY TO BUILD AND MORE
CONTROL OVER YOUR ABILITY TO DELIVER INFRASTRUCTURE IS
ENORMOUSLY VALUABLE TO A COMPANY LIKE OURS.
WHAT WE ARE DOING BY INTEGRATING WITH CORE
SCIENTIFIC, A COMPANY WE KNOW VERY WELL.
WE HAVE VERY LONG-STANDING RELATIONSHIP WITH THEM.
OUR FIRST CONTRACT WAS IN 2018. CAROLINE:
YOU TRY TO BUY THEM FOR A BILLION LAST YEAR, RIGHT?
MICHAEL: WE DID TRY TO BUY THEM. AND IN THAT YEAR WE HAVE
EXPANDED OUR RELATIONSHIP WITH THEM AND WE CONTINUE TO THINK
AS THEY CONTINUE TO THINK THAT THE INTEGRATION OF THE TWO
COMPANIES IS NET POSITIVE FOR BOTH INVESTOR GROUPS AND OVER
TIME WE BELIEVE THAT WILL BECOME INCREDIBLY CLEAR TO THE
INVESTING PUBLIC AT LARGE. CAROLINE: LET’S TALK AT THAT. WE NEED TO SEEK MATERIAL MARGIN
AND GROWTH BENEFITS. WHAT TIMEFRAME ARE YOU SEEING
THAT? MICHAEL: WHEN YOU INSERT A DATA CENTER
AND YOU HAVE A HOSTING CONTRACT WHERE YOU ARE BUILDING YOUR
INFRASTRUCTURE, IS IMMEDIATE. AS SOON YOU ACQUIRE THEM, YOU
HAVE MOVED THE CONTRACT WITH WHICH YOU ARE PAYING THEM ON A
MONTHLY BASIS INTO INTERNALIZING .
YOU WILL SEE EMERGENT IMPACT ASSOCIATED WITH US PURCHASING
THEM AS SOON AS THIS DEAL CLOSES.
ONCE AGAIN, I TAKE ISSUE WITH THE ASSESSMENT THAT THIS IS NOT
GOING TO BE EMERGENT ACCRETIVE. IT WILL BE FOR THE COMBINED
COMPANIES BUT I ALSO THINK IT WILL BE INCREDIBLY CONSTRUCTIVE
FOR OUR ABILITY TO MEET THE DEMANDS OF THE CLIENTS AND WHAT
GETS LOST IN THIS DISCUSSION SOMETIMES IS THAT YOU HAVE A
GROUP OF CLIENTS THAT ARE MOVING SO INCREDIBLY FAST TO
BUILD INFRASTRUCTURE AT ENORMOUS SCALE THAT THEY
REQUIRED TO DELIVER ARTIFICIAL INTELLIGENCE TO THE WORLD.
OUR ABILITY TO CONTROL OUR DESTINY IN TERMS OF HOW WE
BUILD, WHERE WE BUILD AND WHEN WE GO BY INTEGRATING THE TWO
COMPANIES, WE ARE MAKING HUGE STRIDES. CAROLINE:
AND YOU GET 1.3 GIGAWATTS OF THE POWER IN THE DATA CENTERS.
TALK ABOUT THE OPENAI, 4.5 IS WHAT THEY HAVE PROMISED IN THE
LONGER TERM. IS THAT ACHIEVABLE, THE MEASURE
OF SCALE IN POWER NECESSITY? MICHAEL: IT IS. IT IS GOING TO TAKE A LOT OF
INVESTMENT. IT IS GOING TO TAKE A LOT OF
THOUGHT AROUND HOW YOU DO THAT AND THAT LEANS BACK INTO THE
IDEA THAT YOU WANT TO VERTICALLY INTEGRATE SO YOU CAN
DO IT IN THE MOST EFFICIENT, EFFECTIVE WAY? CAROLINE:
WHAT IS THE HARDEST WORK? MICHAEL:
THERE IS A LOT OF HARD WORK. THE INTEGRATION OF TWO
COMPANIES IS ALWAYS CHALLENGING THE ABILITY TO CONTINUE TO EXTEND OUR CAPACITY TO DELIVER
INFRASTRUCTURE IS ENORMOUSLY CHALLENGING. JED:
IS ENERGY — CAROLINE: IS ENERGY A BOTTLENECK? MICHAEL:
IT IS. IN THE CORE SCIENTIFIC
PORTFOLIO, THAT POSITIONS US TO JOINTLY BE ABLE TO DELIVER
INFRASTRUCTURE ON THE LARGER SCALE.
WHEN YOU LOOK BACK OVER THE LAST SEVERAL MONTHS, WE GET A
$12 BILLION CONTRACT FOR JUST UNDER 12.
IF YOU SAW THE $30 BILLION CONTRACT.
THE DEMAND IS VORACIOUS. CAROLINE:
IS IT JUST COME FROM MICROSOFT OR ROLE PLAYERS? MICHAEL:
DURING THE EARNINGS, YOU HEARD ME TALK ABOUT THE FACT THAT WE
ACTUALLY HAD A SECOND HYPERSCALER BEGIN TO COME ON
BOARD AND USE US AS A SOLUTION FOR BUILDING THE HIGHEST
QUALITY INFRASTRUCTURE AND DELIVERING COMPUTE.
YOU ARE STARTING TO SEE THE BROADENING OF THE CLIENT BASE
WHICH WILL BE A WORK IN PROGRESS FOR A LONG TIME
BECAUSE THERE IS CONCENTRATION WITH THE LARGE CONTRACTS. IT HAS BEEN AN INCREDIBLY
IMPORTANT — HAS BEEN INCREDIBLY IMPORTANT FOR THE
COMPANY AND THE INVESTORS TO SEE THE PROGRESS WE ARE MAKING
BRINGING ON MORE AND MORE NAMES ACROSS THE ENTERPRISE SPACE AND MORE NAMES ACROSS THE LABS AND
INCREASINGLY BUILDING OUR FOOTPRINTS AMONG THE CLOUDS.
IT HAS REALLY BEEN A GREAT INDICATION OF THE DEMAND FOR
THE PRODUCT WE DELIVER AND WE ARE POSITIONING OURSELVES TO BE
ABLE TO DELIVER IT FASTER AND LARGER. CAROLINE: I KNOW THE SHARE PRICE HAS
ROCKETED SINCE YOUR IPO EARLIER THIS YEAR.
BUT TO THE ACQUISITION PLAY, IT LOOKS LIKE YOU ARE EMBOLDENED
TO DO MORE. WHERE IS IT MOST IMPORTANT?
IS IT THE HIGHER IN THE STACK OR MORE ABOUT THE SOFTWARE?
MICHAEL: WE LOOK AT IT FROM A LONG-TERM
PERSPECTIVE AND THAT IS WHAT HAS ALLOWED US TO BUILD THE
COMPANY THAT IS BREAKING THE MOLD TO AN EXTENT IN TERMS OF
LAUNCHING THE AI CLOUD, A NEW CLUB THAT DOES NOT FIT INTO THE
HISTORY OF THE BIG THREE. THAT HAS BEEN BASED ON THE IDEA
THAT YOU ARE MAKING DECISIONS ABOUT WHAT IT TAKES TO DELIVER
THE HIGHEST QUALITY INFRASTRUCTURE AND PRODUCTS TO
YOUR CLIENTS. YOU WILL SEE US CONTINUE TO
BUILD UP THE STACK. THIS ACQUISITION OF CORE
SCIENTIFIC IS AN EXAMPLE OF GOING DOWN THE STACK.
WE HAVE OTHER DATA CENTERS WE ARE BUILDING AND IT IS PART OF
THE STRATEGY OF HOW YOU GET TO SCALE BECAUSE ONLY BY GETTING
TO SCALE ARE YOU RELEVANT IN THIS REVOLUTION THAT IS
OCCURRING WITHIN THE CLOUD SPACE.
THIS IS AN IMPORTANT BUILDING BLOCK AND A STEP FOR US TO BE
ABLE TO ENSURE WE ARE ABLE TO CONTINUE TO PARTICIPATE IN THE
SCALE BUILDING OF THIS INFRASTRUCTURE. CAROLINE: MICHAEL INTRATOR THANK YOU FOR
COMING ON TO CS. A PHONE DESIGNED TO BE USED
LESS. THE NOTHING DESIGN’S CEO IS UP
NEXT. THIS IS “BLOOMBERG TECH.” ♪ LET’S TAKE A QUICK CHECK ON TESLA SHARES BECAUSE WE ARE
TRYING TO MAKE UP SOME LOST GROUND TODAY AND ARE STILL
LOWER OVER THE COURSE OF THE LAST THREE TRADING DAYS.
ELON MUSK ANNOUNCED HE IS FORMING A NEW POLITICAL PARTY. CATHIE WOOD JOINT SOME ANALYSTS
CALL FOR THE BOARD TO GET INVOLVED TO ADDRESS HIS
POLITICKING AND WHETHER IT HAS HURT THEIR STANDING. >> WE HAVE BEEN DEALING WITH
CONTROVERSY AROUND ELON MUSK IN ONE FORM OR ANOTHER SINCE WE
FIRST BOUGHT THE STOCK WHEN THE COMPANY WAS FOUNDED IN 2014.
WE ON TESLA AND IT IS ONE OF THE TOP HOLDINGS IN THREE OF
OUR ETF’S, WE ARE WATCHING THIS LIKE A HAWK NO QUESTION ABOUT
IT. WITH THE EXPERIENCE OVER THE LAST 11 YEARS, WE TURN AROUND TODAY AND SEE TESLA IN TO THE
ROBOTAXI AGENT SUCCESSFULLY AND WE BELIEVE IT WILL SCALE MUCH
BETTER THAN MOST COMPETITORS. WE SEE SPACEX OWNING 90% OF THE
SATELLITES. NEURAL LEAK — NEURAL LINK
TRANSFORMING THE LIVES OF PEOPLE, PARTICULARLY WITH THE
ALS. SO IN OUR VENTURE FUND, FOLLOWING THEM CAREFULLY. ASK AI — XAI HIT IN FEBRUARY.
WE ARE VERY FOCUSED ON BARRIERS TO ENTRY, TECHNOLOGY, AND WE
BELIEVE THE MOATS THAT ELIN HAS BUILT AND THIS IS NOT JUST ELON.
HE IS ATTRACTING THE BEST IN THE BRIGHTEST TO HELP SOLVE
SOME OF THE WORLD’S BIGGEST PROBLEMS. AGAIN, WE DO TRUST
THE BOARD AND WE STAY OUT OF POLITICS. JONATHAN: WE WOULD LOVE YOUR OPINION ON
TESLA AND YOU MENTION PHENOMENAL COMPANIES DOING
PHENOMENAL THINGS. FOR TESLA, DO YOU BELIEVE ELON
CAN PURSUE HIS POLITICAL AMBITIONS AT THE SAME TIME
PURSUING THE BEST INTEREST OF TESLA SHAREHOLDERS? >> ONE OF THE ANNOUNCEMENTS HE
MADE RECENTLY IS THAT HE IS GOING TO OVERSEE SALES IN THE
U.S. AND IN EUROPE AND WHEN HE PUTS
HIS MIND ON SOMETHING, HE USUALLY GETS THE JOB DONE.
CAROLINE: THAT IS CATHIE WOOD THERE.
LET’S TALK ABOUT NOTHING. IT IS A HARDWARE STARTUP TAKING
AIM AT THE BIG SMART PHONE MAKERS LIKE APPLE AND SAMSUNG.
IT IS LUNCHING WITH A DESIGN TO BE USED LESS.
JOINING US IS CARL PEI, THE CEO. WHY DO WE NEED A SMART PHONE
THAT WE USE LESS? CARL: SMART PHONES USED TO BE THE
TOOLS THAT WERE SUPPOSED TO MAKE US MORE PRODUCTIVE, JUST
LIKE THE PERSONAL COMPUTER, A BICYCLE FOR THE MIND.
BUT TODAY ON SMARTPHONES, WE JUST KEEP SCROLLING AND WE
WANTED TO CREATE A PRODUCT THAT HELPED PEOPLE BEING MORE IN
FOCUS. IF YOU PUT THE PHONE DOWN YOU
CAN BE NOTIFIED ABOUT THE MOST IMPORTANT THINGS HAPPENING
WITHOUT ALWAYS CHECKING YOUR SCREEN.
FOR ME, SOMETIMES WHEN I HAVE TO RESPOND TO AN IMPORTANT
MESSAGE, I GO INTO MY SOCIAL MEDIA A LITTLE AFTERWARDS.
CAROLINE: IS KEEPING YOU ENGAGED IN THE
PROCESS. IT LOOKS LIKE NOTHING ELSE ON
THE MARKET. WHAT SORT OF SCALE ARE YOU
GETTING TO? WHO IS BUYING IT? CARL:
WE ARE TARGETING A DIFFERENT BASE, WE ARE FOCUSING ON THE
YOUNG TRADERS. THIS YEAR WE ARE DOING A
BILLION IN REVENUE. LAST YEAR WE DID NORTH OF 500
MILLION, SO DOUBLING THIS YEAR. A GOOD START BUT A LONG WAY TO
GO. CAROLINE: WHAT ARE THEY TRADING IN FOR
BECAUSE THIS IS ANDROID. CARL: OUR USERS COME FROM ALL OVER
THE INDUSTRY. WE HAVE AIRBOATS AND
SMARTPHONES. FOR THE EARBUDS, MORE THAN HALF
OF THE USERS COME FROM IPHONE, WHICH IS SURPRISING TO US AND
OUR PHONES COME FROM ALL OVER THE MARKET.
WE DO SEE A LOT OF IPHONE USERS SWITCHING TO US. CAROLINE:
WHERE ARE THESE BEING MADE? CARL:
MANUFACTURER MOSTLY IN INDIA. WE DO HAVE A SITE IN CHINA AND
A NEW SITE COMING? CAROLINE: WHERE WILL THAT BE? CARL:
TO BE ANNOUNCED. CAROLINE: YOU ARE A MAN WHO HAVE BUILT
COMPANIES AND HAVE BUILT WELL IN CHINA AND ARE IN THE CHINESE
INDUSTRY MARKET YOURSELF. WE ARE SEEING THE PUSHBACK IN
AMERICA OF MANUFACTURING IN THE UNITED STATES.
WHAT YOU MAKE OF THE CAPABILITY TO GET THE SCALE OF TALENT IN
THE U.S.? CARL: IT IS NOT SOMETHING THAT WE
THOUGHT ABOUT. WE HAVE BEEN FOCUSED ON MARKETS
LIKE EUROPE AND INDIA AND MANUFACTURING IN INDIA, WE
STARTED EXPLORING HOW TO EXPORT FROM INDIA TO THE REST OF THE
WORLD COULD WE ARE EXPORTING FROM INDIA TO THE U.S. CAROLINE:
HOW HARD IS THAT WITH TARIFFS? CARL: IT IS OK.
I DON’T THINK THE TARIFFS ARE THAT BAD FROM INDIA. CAROLINE:
YOU DON’T THINK THAT A LITTLE BIT IT HIT FROM THE MORE
EXPENSIVE PHONE YOU HAVE NOW, WHY GO TO THE UPSCALE LEVEL?
YOU HAVE BEEN MORE MIDRANGE? CARL:
WE ALWAYS WANTED TO COMPETE ON THE FLAGSHIP LEVEL BUT WE HAD
TO BUILD THE CAPABILITIES BECAUSE WHEN WE SELL A PRODUCT
AT $800, PEOPLE EXPECT THE BEST CAMERA, SCREEN, BEST OF
EVERYTHING. BUILDING A SMARTPHONE COMPANY
IS HARD PAIRED ALL TYPES OF HARDWARE IS HARD BUT SMART ARE
PARTICULARLY HARD. WE FINALLY GOT TO A SPACE WHERE
ENGINEERING CAPABILITY IS AT THE LEVEL WHERE WE CAN TAKE A
SHOT AT IT. CAROLINE: YOU HAVE THAT WITH THE EXPENSE
BUILDING ONE PLUS PAID WITH NOTHING, HOW MUCH IS THEIR
FOCUS ON THE AI INTEGRATION? CARL:
WE ARE SUPER EXCITED ABOUT AI. WE ARE NOT FOCUSED ON THE LARGE
LANGUAGE MODELS BUT HOW TO APPLY. I.E.
BELIEVED TO WIN IN CONSUMER AND I — AI IS NOT OWN HARDWARE.
THE PHONE IS MOST IMPORTANT. IT HAS THE MOST SCALE, MORE
THAN 1.2 BILLION SMART PHONES ARE SOLD EVERY YEAR AND THE
MOST DEPTH IN TERMS OF WHAT WE DO ON OUR PHONES, WE DO
EVERYTHING. I THINK CONSUMER AI NEEDS SCALE
AND DEPTH BECAUSE WE WANT TO UNDERSTAND THE USERS AND
AUTOMATE THE SMARTPHONE USE AS MUCH AS POSSIBLE FOR THEM.
CAROLINE: TO DO THAT TO GET MORE MANUFACTURING FOOTPRINT, YOU
NEED MONEY. ARE YOU RAISING MONEY? CARL:
WE RAISE $250 MILLION SO FAR. WE HAVE BEEN RELATIVELY CAPITAL
EFFICIENT, A BILLION DOLLARS IN LIFETIME SALES AND SALES THIS
YEAR. WE ARE ALWAYS ENTERTAINING CONVERSATIONS BUT WE HAVE
NOTHING TO ANNOUNCE RIGHT NOW. PLEASE COME BACK. WE NEED YOU.
CAROLINE: LET’S GO TO PRESIDENT TRUMP, HE
HAS NOW IN A CABINET MEETING IN WASHINGTON. LET’S LISTEN IN.
PRES. TRUMP: YOU HAVE WORKED GREAT WITH THE
GOVERNOR AND IT IS TERRIFIC. YOU MIGHT WANT TO TELL A LITTLE
BIT ABOUT THE TRIALS AND TRIBULATIONS.
WE APPRECIATE THE WORK YOU HAVE DONE.
GOOD PEOPLE THERE AS FAST AS ANYONE HAS SEEN AND WE REALLY
APPRECIATE IT. >> I WANT TO THANK YOU FOR YOUR
LEADERSHIP. TEXAS AND THE PEOPLE OF TEXAS
ARE STRONG AND HAVE GONE THROUGH SOMETHING ABSOLUTELY
HORRIFIC. IT IS HEARTBREAKING TO WATCH
THESE FAMILIES SUFFER THE WAY THAT THEY ARE. AS SOON AS THIS FLASH FLOODING
EVENT HAPPENED, THE GOVERNOR HAS ACTIVATED HIS EMERGENCY
RESPONDERS. HIS EMERGENCY MANAGEMENT
DIRECTOR IS INCREDIBLE AND HAS IMMEDIATELY WORKED WITH THE
LOCAL FIRST RESPONDERS TO GET HELP AND HELP WITH THE.
WE DEPLOYED RIGHT AWAY AND YOU KNOW BECAUSE YOU AND I WERE
TALKING A LOT. WE HAD ASSETS OUT OF CUSTOMS
AND BORDER PROTECTION. OUR TEAMS WENT IN AND HELPED
WITH RESCUES AND CLEARING DEBRIS SO WE COULD GET ROADS
OPEN AND PEOPLE CAN GET THE HELP THEY NEED. WHEN I GOT THERE, AS SOON AS I
ARRIVED ON THE SITE GETTING A BRIEFING FROM EMERGENCY
RESPONDERS WAS HOW UNIFIED THEY WERE IN A FOCUSING ON THE FACT
THAT THEY WERE THERE TO SAVE LIVES AND RESCUE PEOPLE AND
FIND PEOPLE WHO WERE STILL ALIVE AND REUNIFY THEM WITH
THEIR FAMILY MEMBERS. WE AS A FEDERAL GOVERNMENT
DON’T MANAGE THESE DISASTERS. THE STATE DOES APPEAR WE
SUPPORT THEM AND THAT IS EXACTLY WHAT WE DID IN THIS
SITUATION. FEMA WENT TO AN ENHANCED LEVEL
IMMEDIATELY BUT AS SOON YOU SIGN THE MAJOR DISASTER
DECLARATION, WE WERE ABLE TO GET THEM RESOURCES AND DOLLARS
RIGHT AWAY, JUST LIKE YOU ENVISIONED THROUGH GRANTS TO
HELP THEM WITH CLEAN AND WE ARE STILL THERE AND FEMA HAS BEEN
DEPLOYED AND WE HAVE BEEN STREAMLINING IT LIKE YOUR
VISION OF HOW FEMA SHOULD OPERATE AND IT HAS BEEN A MUCH
BETTER RESPONSE TO HELP THEM GET THROUGH THIS SITUATION.
WE ARE STILL LOOKING FOR PEOPLE AND A LOTS OF LITTLE GIRLS AND
OTHER FAMILY MEMBERS THAT WERE CAMPING ALONG THE RIVER.
THEY WILL CONTINUE UNTIL THEY FIND EVERY SINGLE PERSON AND WE
WILL CONTINUE TO HELP THEM AND ASSIST THEM.
I WAS SURPRISED WHEN I GOT TO THE CAMP THAT DAY RIGHT AFTER
THIS HAPPENED THAT THE PARENTS THAT WERE THERE AND WERE
LOOKING FOR THEIR CHILDREN AND PICKING UP THEIR DOCTORS
STUFFED ANIMALS OUT OF THE MUD AND FIGHTING THEIR DOCTORS SHOE
THAT MIGHT BE LAYING IN THE CABIN AND JUST HUGGING AND
COMFORTING PEOPLE MATTERS A LOT. I AM EXTREMELY GRATEFUL FOR
GOD’S HAND IN THAT WHOLE SITUATION BECAUSE HUNDREDS AND
HUNDREDS OF PEOPLE WERE SAVED. AND THIS IS A TIME FOR ALL OF
US IN THIS COUNTRY TO REMEMBER THAT WE WERE CREATED TO SERVE
EACH OTHER. GOD CREATED US TO TAKE CARE OF
EACH OTHER AND WHEN WE DO THAT, WE ARE HAPPIER AND MORE
FULFILLED AND WE CAN WALK ALONGSIDE PEOPLE ON THEIR WORST
DAY AND HELP THEM GET THROUGH IT AND COME OUT THE OTHER SIDE
KNOWING THAT WE CAN CONTINUE TO LIVE A LIFE GOT HIS PURPOSE FOR
US. THEY ARE GRATEFUL FOR YOU. SEVERAL TIMES THE DAY AFTER THE
FLOODING YOU AND MONIA WERE ON — MELANIA WERE ON THE PHONE
WITH ME AND I APPRECIATE THAT. ON SUNDAY WHEN THE FAMILIES
WERE WAITING AT A CHURCH TO IDENTIFY THEIR CHILDREN’S
BODIES, FRANKLIN GRAHAM AND I CALLED IN AND PRAYED FOR THE
FAMILIES AND READ SOME SCRIPTURE WITH THEM.
HE WAS INCREDIBLE IN MAKING HIMSELF AVAILABLE TO THAT AS
WELL. HE WILL BE BACK IN A COUPLE OF
DAYS AND WE WILL CONTINUE TO DO ALL WE CAN.
THIS IS AN UNPRECEDENTED EVENT. THERE HAVE BEEN TRAGEDIES LIKE
THIS AROUND THE COUNTRY BUT EVERYONE IS UNIQUE AND
DIFFERENT SITUATIONS AND THE RESPONSE THE FEDERAL GOVERNMENT
HAS SUPPORTING THE STATE THROUGH THIS, I AM PROUD OF THE
PEOPLE THAT STEPPED UP AND IMMEDIATELY CAME.
THE COAST GUARD WHEN THEY CAME IN, THEY HAD A DIFFICULT TIME
GETTING THE AIRCRAFT IN AND IT LANDED AND HAD TO TRY SEVERAL
TIMES IN THE WEATHER TO GET IT IN AND DEPLOY.
WE HAVE HEARD ABOUT THE ONE COAST GUARD MEMBER THAT WAS
RESPONSIBLE FOR SAVING OVER 165 PEOPLE. BUT THAT ENTIRE CREW DID
INCREDIBLE WORK AND ALL OF THE FIRST RESPONDERS DID INCREDIBLE
WORK. I KNOW PEOPLE ARE GETTING TIRED
NOW BUT THEY ARE GETTING REINFORCEMENTS AND VOLUNTEERS
ARE SHOWING UP. I WANT TO COMMEND THE GOVERNOR
AND HIS TEAM FOR BEING THE LEADER’S AND THEY ARE SO
THANKFUL YOU ARE LETTING THEM MAKE THE DECISIONS AND MANAGE
THE RESPONSE LIKE IT SHOULD BE AN US SUPPORTING THEM WITH THE
RESOURCES OF THE FEDERAL GOVERNMENT.
WE HAVE ALREADY DEPLOYED DOLLARS TO THE STATE, MUCH LIKE
THE BLOCK GRANTS YOU TALKED ABOUT.
THEY ARE GRATEFUL FOR THAT. PRES. TRUMP:
THERE HAS NEVER BEEN A WAVE OUTSIDE OF A BREAKING OF THE
DAM. THIS WAS ALMOST A WAVE THAT ENDED UP 30 FEET HIGH OR MORE,
ACTUALLY. WITH A DAM YOU CAN UNDERSTAND
IT, BUT THIS APPROACHED ALMOST WITH THAT SPEED.
WHEN YOU SEE A DAM BREAK IT IS NOT A PRETTY SIGHT AND THIS IS
THE KIND OF THING THAT BUILT UP SO FAST AND IT HAPPENED TWO OR
THREE TIMES OVER THE YEARS BUT NOT TO THIS EXTENT.
TELL THEM WHAT YOU — WHEN YOU MET THE FATHER. >> I WALKED TO THE CABIN WERE
ALL OF THE LITTLE GIRLS DIED AND I WALKED OUT OF THE CABIN AND A GENTLEMAN SAID, THAT MAN
NEEDS A HUG. I SAID DO YOU WORK HERE AND HE
SAID NO, MY DAUGHTER WAS IN THERE AND I JUST FOUND HER BEST
FRIEND AND SHE HAD PASSED AWAY. HE FELL APART.
THE GRAVEL WAS THERE LOOKING FOR HIS GRANDDAUGHTER — THERE
WAS A GRANDDAD THEY’RE LOOKING FOR HIS GRANDDAUGHTER.
A WOMAN HELD ONTO THE GIRLS TRYING TO KEEP THEM ON THE
FLOODWATERS GOT HIT BY SOMETHING AND LOST TWO OF THE
GIRLS AND WASN’T ABLE TO HANG ON TO THEM AND WAS GOING TO
LIVE THE REST OF HER LIFE WHEN SHE WASN’T ABLE TO HANG ONTO
THE GIRLS. THE PARENTS PICKING UP THEIR
CHILDREN’S BELONGINGS IN THE MUD.
WHEN DAD SAID I KNEW 50 OF THE GIRLS HERE.
I KNEW THAT WAS MY DAUGHTER’S FRIENDS ADDRESS AND HE WAS
PICKING IT UP AND PUTTING IT IN A BAG TO RETURN TO HER PARENTS.
THE DIRECTOR WAS THERE COMFORTING PEOPLE WHO HAD LOST
HIS FATHER THE NIGHT BEFORE. HE WAS TRYING TO HELP THEM. THE STRENGTH OF PEOPLE IS
INCREDIBLE. I ASK THAT THEY HAVE ESCORTS OR
COUNSELORS WHEN THE PARENTS COME IN SO FROM WHEN THE POINT
THAT THEY CAME INTO THE CAMP