Bloomberg Technology 03/26/2024

Baltimore Bridge Collapse

• A cargo ship crashed into the Francis Scott Key Bridge in Baltimore, causing a collapse and prompting a search and rescue mission.
• The collapse could impact the supply chain and economies, but the full extent is yet to be determined.
• Denny Fish of Janus Henderson Investors believes the economic impact may be less severe than during the COVID-19 pandemic due to alternative ports.

Technology

• NVIDIA's stock price has surged, but much of the gains have already occurred, and its earnings multiple remains reasonable.
• NVIDIA's new Blackwell GPU focuses on price-performance and power consumption for data center deployment.
• The data center business is estimated to be worth $250 billion per annum, with growth rates of 20% to 25%.
• Inference workloads are expected to surpass training workloads, presenting a significant growth opportunity for NVIDIA.
• China's iPhone shipments fell by 33% in February, impacting Apple's demand in a key market.
• The Chinese government is pushing for domestic semiconductor usage in server designs, potentially affecting Apple's supply chain.
• Recent antitrust concerns surrounding Apple, including lawsuits and regulatory probes, have raised investor concerns about its monopoly power.
• Google pays Apple between $20 and $25 billion annually for placement on the iPhone, highlighting the potential impact of antitrust actions on both companies.
• Alibaba has called off its planned IPO for its logistics arm due to waning interest and unfavorable market conditions.
• Alibaba will instead buy up all the remaining stock held for $3.75 billion, reflecting its commitment to its logistics business.
• Sunshine, a startup focused on automating mundane tasks, has launched a new AI product that includes features such as a photo-sharing app and an events website.
• The AI technology used by Sunshine analyzes various signals to determine whether a photo is share-worthy.
• Sunshine utilizes both its own technology and APIs provided by large vendors in the AI space.
• The target audience for Sunshine's AI product is primarily the creator community and industry.
• Marissa Mayer, co-founder and CEO of Sunshine, discusses the company's focus on photo sharing and event planning.
• Mayer expresses her positive assessment of OpenAI's new governance model and the direction it is headed in.

Business and Finance

• Alibaba's planned breakup into six companies has not materialized, leading to questions about the company's future direction.
• Adam Neumann, the former CEO of WeWork, has submitted an offer to buy back the bankrupt company for over $500 million.
• Neumann's plan for WeWork 2.0 is unclear, with two possible options: renegotiating leases to reduce costs or restarting the hype train.
• DroneUp, a drone delivery company, has unveiled its "ecosystem" platform, which integrates ground, air, and software products for last-mile delivery.
• DroneUp claims its technology can significantly reduce labor costs and scale quickly, making it more affordable for retailers.
• The company has signed up top retailers and plans to roll out its system and next-generation drone in the next quarter.
• Elon Musk's Starlink terminals have been identified being traded and activated illegally on the black market.
• Starlink's widespread availability has led to its use in war-torn regions and countries under U.S. sanctions, where there are no operational agreements between SpaceX and the local governments.
• The scale of illegal use is significant and has been reported in various countries, including Yemen, Sudan, and potentially Russia.
• Starlink's growth is crucial to SpaceX's financial stability and Musk's long-term goal of reaching Mars with the Starship rocket.
• Dany Garcia, the powerhouse behind Dwayne "The Rock" Johnson's brands, discusses her role in managing his social media presence and ensuring the success of his various companies.
• Garcia emphasizes the importance of social media in reaching a global audience and building a direct relationship with consumers.
• Garcia explains the merger between the XFL and USFL, which resulted in the first female sports league owner, and highlights the benefits of leveraging powerful ownership groups to accelerate growth and success.
• Garcia is continuing to focus on sports and is doing research in that area.
• The company will continue to grow Seven Bucks Productions and expand its media slate.
• Garcia sees the 360 approach they have brought to the USL as a blueprint for how they will look at other investments happening in sports.

Government and Regulations

• Florida Governor Ron DeSantis signs a law that restricts social media usage for children under 14 and requires parental permission for those up to age 16.