Tesla, Google Earnings, Exclusive Meta CEO Interview | Bloomberg Technology

Spotify Earnings Report

• The first of the "Magnificent Seven" companies, Spotify, has released its earnings report.
• Spotify's earnings have exceeded expectations, with both profit and margin exceeding forecasts.
• The company has raised prices and still managed to increase its subscriber base, indicating pricing power.
• Spotify has focused on profitability over subscriber growth, cutting costs and increasing profits.
• Despite concerns about the podcasting business, Spotify has continued to grow its customer base, particularly in India and Southeast Asia.
• Spotify has reigned in spending on podcasting and is investing in audiobooks.
• Spotify's strategy is to be a neutral distributor of podcasts, rather than creating its own content.
• The podcasting industry is vibrant, with many licensing deals being made.
• Spotify is benefiting from ad revenue generated by podcasts they don't pay for, as they use deals to attract listeners.

SAP's Cloud Business Transformation

• Christian Klein, CEO of SAP, highlights the company's focus on cloud business transformation and its role in helping customers like ExxonMobil transition to renewable energies.
• SAP's cloud revenue growth is strong, and the company is leveraging AI to attract new customers to its cloud business.

Tesla's Focus on Full Self-Driving (FSD)

• Tesla's car sales have slowed down due to factors like weather and tariffs, leading the company to shift its focus to Full Self-Driving (FSD).
• Experts believe FSD is an immature product and requires significant improvements in data quality and underlying systems.
• Tesla's reliance on AI vision for FSD, unlike other companies that use sensors, makes it a unique but risky approach.
• The long-term bet on FSD is based on the potential for Tesla to gain a significant market share by offering a driverless car experience.
• The discussion focuses on Tesla's vision of an AI-powered future, specifically the development of a robotaxi service.
• While robotaxis are seen as a key part of Tesla's vision, they are considered a difficult route due to the need for extensive data and a sophisticated AI system.
• The speaker highlights the legal advantages of robotaxis over Tesla's Full Self-Driving (FSD) system, as Tesla would be fully responsible for any accidents involving a robotaxi.
• The speaker argues that Tesla's energy business, while performing well, is not the driving force behind the company's high valuation.
• The speaker believes that the success of FSD is crucial for Tesla to achieve its desired valuation, as it could potentially increase the company's market share and profitability.
• The speaker acknowledges the possibility that another company might achieve full autonomy before Tesla, which could significantly impact Tesla's valuation.

Alphabet's Earnings and AI Focus

• The discussion also touches upon Alphabet's earnings, highlighting the company's focus on search, cloud, and AI, as well as the rejection of Google's billion-dollar offer for Wiz.

Meta's Open-Source AI Model

• Meta has released the largest open-source AI model, LLAMA 3.1, with 405 billion parameters.
• Mark Zuckerberg believes this model will be used by startups, enterprises, and governments to train smaller, custom AI models.
• Zuckerberg emphasizes that Meta's philosophy is not to create one dominant AI but rather to empower millions of creators to build their own AI models.
• He sees this as a way for people to interact with AI in a more personalized and creative way.
• Zuckerberg acknowledges that Meta has faced criticism but believes that open-source AI allows for scrutiny and encourages improvement.
• He believes that Meta's scale and existing chatbot integration across its platforms give it a strong position in the AI race.
• Mark Zuckerberg believes that Meta's new chatbot, Llama 3.1, will be the most used chatbot in the world by the end of the year.
• Zuckerberg acknowledges that Llama 3.1 is not as advanced as some other AI models, but he says Meta is working to close the gap.
• Zuckerberg defends Meta's decision to make Llama 3.1 open-source, arguing that it makes the technology safer and more secure.
• Zuckerberg believes that open-source development is essential for innovation and that it is the best way forward for AI.
• Zuckerberg is committed to seeing the AI wave play out and believes that the next major platform will not emerge for another 10-15 years.
• Emily Chang, the Bloomberg Technology host, found Zuckerberg to be more comfortable in his own skin than she has seen him in the past.
• Zuckerberg's wife was present during the interview, and Chang noted that Zuckerberg has a lot of energy.

StartUp Wiz Rejects Google's Takeover Offer

• StartUp Wiz, a cybersecurity company, has rejected Google's takeover offer and is instead pursuing an IPO.
• This decision is a blow for Google, which has been trying to strengthen its cloud security offerings to compete with Microsoft and Amazon Web Services (AWS).
• StartUp Wiz's technology would have enhanced Google's cybersecurity capabilities, particularly in detecting cyber threats across various cloud platforms.
• The acquisition would have been a significant deal, exceeding $23 billion, and would have dwarfed previous Alphabet acquisitions.
• Regulatory concerns, particularly antitrust scrutiny, played a significant role in StartUp Wiz's decision to pursue an IPO.
• StartUp Wiz believed it could build more value as an independent company and was concerned about potential regulatory hurdles in the U.S. and other regions.

Upcoming Earnings Reports and Crypto ETFs

• The video discusses the upcoming earnings reports of several companies, including Tesla, Google, and Meta.
• Investors are watching to see if Tesla will continue its recent downward trend, and what Google will say about its plans for robotaxis.
• Texas Instruments' stock price has increased by 3%, while XP has shown some weakness.
• The video also discusses the approval of the first U.S. ETFs investing directly in Ether.
• Bloomberg's Katie Greifeld, an expert in crypto markets, believes that the launch of these ETFs is a good test for wider interest in crypto markets beyond Bitcoin.
• The trading volume for the Ether ETFs has been impressive, with BlackRock's ETHA ETF seeing $50 million in volume after the first hour.
• While the volume is impressive, it is not at the same level as the Bitcoin ETFs.
• Winter View Trading projects annualized inflows of $4.8 to $6.4 billion for the Ether ETFs in the first year, which is considered impressive for a new ETF in a new category.
• The video discusses the challenge of marketing Ether to a non-crypto audience, as Bitcoin is often described as "digital gold."
• Caroline, a newsletter based in Europe, notes that Europe already has exchange-traded notes related to Ether.
• The segment discusses the challenges of staking cryptocurrencies, with the speaker mentioning that it can limit returns.

CrowdStrike Outage and Venture Capital

• The conversation then shifts to CrowdStrike CEO George Kurtz, who is set to testify before Congress regarding a recent software update issue.
• The U.S. Department of Transportation has also opened an investigation into Delta Airlines due to ongoing flight cancellations and delays caused by the CrowdStrike outage.
• The segment also mentions the arrest of Brian Kim, founder of a company whose shares have fallen due to allegations of market manipulation.
• The segment then transitions to a discussion about venture capital, highlighting Iconic Capital's recent $5.7 billion fundraise for a new venture focused fund.

New System for Industrial Productivity

• The segment features an interview with Chris Welty, CEO and co-founder of a company focusing on industrial productivity with AI and 3D products.
• Welty discusses the challenges of automation in warehouses and how his company aims to create a simple and user-friendly solution.
• The interview concludes with Welty highlighting the company's work with Albertsons, emphasizing the wide range of problems their technology can solve.
• The company is focused on moving materials in the supply chain using a steel lattice structure and a three-dimensional moving mechanism.
• This approach is more efficient and simpler than traditional methods using conveyors.
• The company believes that their approach is complementary to humanoid robotics, as humans are better suited for manipulation and reasoning tasks, while their system is designed for moving heavy materials.
• The company acknowledges that humanoid robotics is a complex problem with many challenges to be solved, and they are focusing on a more immediate and practical solution for the supply chain.
• The company's founder previously worked on the Tesla Optimus program, which aimed to develop humanoid robots for manufacturing, but ultimately decided to focus on a different approach due to the complexity and time required to develop such robots.
• Chris, the CEO of a company developing a new system, is aiming to execute quickly and efficiently. He plans to raise $78 million in funding and launch the system to a few customers within the next two years.

Electric Boat from Startup Arc

• Ed, a Tesla alumni, took a trip on an electric boat from startup Arc. The boat, called Arc Sport, is fully electric and built for water sports. It can reach speeds of up to 40 miles per hour and has a surprising intuitive drive-by-wire system.
• The Arc Sport has a battery pack that is almost double the capacity of the Tesla Cybertruck, providing four to six hours of driving time. It is priced at $258,000, comparable to gas-powered boats from brands like Mastercraft.
• The direct consumer sales model allows Arc to spend more on design and experience, offering upscale sound systems and plush seating. The boat can charge to 80% in 45 minutes and is expected to be shipped later this year.

U.S. Approach to AI Competition with China

• Emily Chang and Mark Zuckerberg discussed the U.S. approach to AI competition with China. Mark believes that the U.S. should not lock down AI development but instead thrive on open and decentralized innovation.
• Mark Zuckerberg, CEO of Meta, believes the U.S. should maintain a perpetual lead in AI technology, even if it means being five to ten years ahead of China.
• Emily Chang, Bloomberg Technology reporter, interviewed Mark Zuckerberg and discussed the importance of China in the global tech landscape.
• Apple's COO Jeff Williams and Micron's CEO visited Beijing, highlighting the importance of the Chinese market and supply chain despite political tensions.
• Mike Shepard, Bloomberg Technology's politics and technology correspondent, emphasized the significance of China as a consumer market and production hub.
• Caroline, a Bloomberg Technology reporter, questioned the effectiveness of the U.S.-China Business Council in facilitating business amidst geopolitical tensions.
• Shepard explained that the U.S. government has implemented export restrictions on advanced technology, particularly semiconductors, to curb China's access to AI development.
• The U.S.-China Business Council's meetings with high-ranking Chinese officials, including the Vice Premier and Foreign Minister, demonstrate China's desire to maintain business ties with the U.S. despite political differences.
• The U.S. is trying to limit China's access to advanced technology, particularly in the semiconductor industry.
• The U.S. is leaning on its allies, such as the Netherlands, to restrict the sale of chipmaking machinery and spare parts to China.
• The Netherlands is pushing back against the U.S. efforts, showing reluctance to escalate restrictions on technology exports to China.
• The U.S. is also looking to Japan for support in limiting China's access to advanced technology.