FROM THE HEART OF OR INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. 

CAROLINE: LIVE FROM LONDON AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. FULL COVERAGE OF TESLA'S DISAPPOINTING SECOND-QUARTER RESULTS. 

ED: GOOGLE INVESTORS AWAITING AN AI PAYOFF. WE BRING YOU THE DETAILS. 

CAROLINE: AN UPDATE FROM CROWDSTRIKE ON THE GLOBAL I.T. OUTAGE. A BIG FALL IN TESLA STOCK. 

ED: THE CHART ON THE SCREEN TELLS THE STORY. PRAY DOWN AROUND 12%, 13% IN THE SESSION INTRADAY. THAT WOULD BE THE BIGGEST DROP SINCE JANUARY 25.

ON A CLOSING BASIS, A DECLINE OF 12.5%. IT'S THE BIGGEST DROP GOING BACK TO SEPTEMBER OF 2020. A LOT OF ANXIETY AND MISUNDERSTANDING HERE. FOURTH CONSECUTIVE QUARTER OF EPS MISSING ESTIMATES, BUT A RECORD REVENUE QUARTER WHERE WE RETURN TO NEAR GROWTH THIS -- DESPITE THE ESTIMATE, WE SEE DECLINING GROWTH. I THINK ROBOTAXI IS AT THE HEART OF IT. CAROLINE: OF COURSE, THE DELAY BEING THE KEY WATCHWORD. HERE'S WHAT HE HAD TO SAY ABOUT THE DELAY ON THE ROBOTAXI. >> WE ARE LAUNCHING SOME IMPORTANT CHANGES. WE THINK WILL IMPROVE THE SORT OF ROBOTAXI AND THE MAIN THING WE WILL SHOW AND WE ARE ALSO GOING TO SHOW OFF A COUPLE OF OTHER THINGS.

CAROLINE:
CRAIG, IT WAS YOUR TEAM THAT BROKE DOWN THE FACT THERE WOULD
BE THIS DELAY IN ROBOTAXIS. THIS IS THE FUTURE OF THE AI
UNDERPINNING OF TESLA. WHY ARE WE SO WORRIED ABOUT
THIS RESULT? CRAIG: IT WOULDN'T NORMALLY BE A HUGE
CAUSE FOR CONCERN'S FOR AN EVENT TO BE PUSHED BACK BY ALL
OF TWO MONTHS. HOW MATERIAL IS THAT FOR THE
COMPANY EXCEPT ELON MUSK HAS REALLY LEANED INTO THIS BEING
THE WAY FORWARD FOR TESLA AND THE REASON YOU SHOULD OR SHOULD
NOT INVEST IN THE STOCK. SO THE SLIGHTEST DELAY OF THIS
EVENT TO SHOWCASE WHAT HE IS ESSENTIALLY BETTING THE COMPANY
ON AS THE COMPANY CONTINUES TO HAVE DETERIORATING EARNINGS IS
CAUSE FOR CONCERN ESPECIALLY IN

LIGHT OF THE MOVE IN THE STOCK
AND THE LEAD-UP TO THOSE EARNINGS.
THIS WAS A STOCK IT WAS REALLY BATTERED WHEN THEY LAST
REPORTED RESULTS AND HAS COME ROARING BACK OVER THE LAST FEW
MONTHS SO I'M NOT SURPRISED TO SEE THE SHARES DOING THIS. ED:
IT'S THE DELAY OF AN EVENT WHERE WE WOULD UNVEIL OR SEE
PUBLICLY FOR THE FIRST TIME A PURPOSE-BUILT ROBOTAXI.
THEY WENT SOME WAY TO EXPLAIN THE MANUFACTURING PROCESS, THIS
REVOLUTIONARY UNBOXED MANUFACTURING STRATEGY.
THE INFERENCES THAT WILL BE POST-2025.
AUTOMOTIVE GROSS MARGIN, TALK ME THROUGH WHERE THE SELL SIDE
IS FOCUSED ON THAT. CRAIG: THERE IS A REAL CONCERN NOT ONLY HAS TESLA CUT PRICES, BUT
IT'S CUT PRICES AND ONLY SEEN

SALES SHRINK.
IT MEANS YOU HAVE TO CONTINUE TO CUT COSTS. TESLA, TO ITS
CREDIT, HAS DONE THAT VERY CONSISTENTLY FOR YEARS, BUT
IT ALSO NEEDS PRODUCT TO REINVIGORATE SALES.
ELON MUSK HAS SPOKEN TO THE IMPORTANCE OF BEING ABLE TO
OFFER PEOPLE MORE AFFORDABLE EV'S IN ORDER FOR THEM TO BE
ADOPTED BY A WIDER SET OF CONSUMERS,
BUT HE REALLY HAS NOT BEEN WILLING TO SORT OF BACK THAT UP
WITH PRODUCT. WE HAVE SEEN THE CYBER TRUCK
ROLLOUT, BUT YOU HAVE TO PAY SIX FIGURES TO BUY THAT TRUCK.
WHERE IS THE MODEL TWO, AS PEOPLE LIKE TO REFER TO IT?
THE VEHICLE THAT WOULD BE CHEAPER THAN THE MODEL 3, AND
THAT'S A REAL CONCERN FOR FOLKS WHO ARE WILLING TO CREDIT HIM
WITH HIS VISION AND GIVE HIM

SOME TIME TO REALIZE ROBOTAXIS,
BUT HE NEEDS TO SORT OF DELIVER IN THE HERE AND NOW FOR MORE
AFFORDABLE ELECTRIC VEHICLES FOR TESLA TO GROW AGAIN. ED: GLOBAL AUTO EDITOR IN LONDON,
THANK YOU VERY MUCH. REACTION TO TESLA'S SECOND
QUARTER FROM AN INVESTOR, BUT THIS TIME A RETAIL OR
INDIVIDUAL INVESTOR. ALEXANDRA HOLDS THOUSANDS OF
SHARES OF TESLA AND HAS DONE SO SINCE 2020.
SHE SAID PREVIOUS CAREERS IN FINANCE AND IS AN INVESTMENT
ANALYST. WORKS AS A VISA CONSULTANT IN CALIFORNIA. ON X IS A PROMINENT VOICE IN
THAT LARGE BODY OF INDIVIDUALS WHO DO BACK ELON MUSK AND ARE
BULLISH ON TESLA'S LONG TERM.

GOOD MORNING TO YOU. WELCOME TO BLOOMBERG TECHNOLOGY. THE MOST IMPORTANT TAKEAWAY FROM EARNINGS FOR YOU, PLEASE. >> THANK YOU FOR HAVING ME. FOR ME, THE MOST IMPORTANT WAS ACTUALLY THAT WE ARE MOVING INTO THIS NEXT PHASE OF TESLA'S GROWTH, AND ALL THE MARKERS WE HAVE LAID THERE ARE STILL THERE AND ARE MOVING AHEAD AT THE SAME TIME AND WITH THE SAME VIGOR THAT ANTICIPATED. AS A RETAIL INVESTOR, I ACKNOWLEDGE THE MARKET, AND YOUR TYPICAL AUDIENCE PROBABLY DOESN'T HAVE THE SAME LARGE TIME HORIZON THAT WE HAVE, BUT FOR US, IT IS REALLY AS A RETAIL INVESTOR JUST ANOTHER BUYING OPPORTUNITY. WE WERE AT THESE PRICES AT THE BEGINNING OF THE MONTH. WHEN WE GOT THE DELIVERY AND PRODUCTION NUMBERS, THE SHARE

PRICE WAS ABOUT AT THE SAME LEVEL. WHEN YOUR CHANNEL BROKE THE
NEWS THAT THE ROBOTAXI EVENT WAS GOING TO BE DELAYED BY TWO
MONTHS, WE WERE ALREADY A LITTLE BIT HIGHER.
THAT'S WHERE WE SAW THE FIRST FLUCTUATIONS IN THE STOCK
PRICES. NOW IT'S CONFIRMED FOR OCTOBER
10, SO IT IS A MERE TWO MONTHS. YOUR COLLEAGUE IS COMPLETELY
RIGHT. IT IS NOT A LONG DELAY, AND
THERE ARE TECHNICAL REASONS FOR IT, BUT I ALSO THINK TESLA WANTS
TO BE READY AND SURE TO SHOW WHATEVER IS NECESSARY TO
CONVINCE THE MARKETS, THE RETAIL INVESTORS ABOUT AUTONOMY,
AND THAT BEING THE CRUCIAL PART TO TESLA'S FUTURE. CAROLINE: CAN YOU SELL TO US A LITTLE BIT
MORE, CONFIRM HOW YOU

UNDERSTAND FULL SELF-DRIVING. A FOCUS ON AI TO EVENTUALLY BECOME SOME ROBOTAXI FLEET WHERE SUDDENLY WE HAVE A RIDE-HAILING APP OUT OF TESLA'S. HOW DOES THAT BECOME TO BEAR IN A GOOD USE EFFICIENT BUSINESS STRATEGY WAY FOR YOU? ALEXANDRA: WE DON'T HAVE TESLA'S MODEL YET. THAT IS WHAT'S GOING TO BE THE QUINTESSENTIAL OF OCTOBER 10. WHAT I WANT TO BRING FORWARD IS MY INTERPRETATION FROM FORMER SPEECHES OF ELON AND THE TESLA TEAM. SO THIS MAY NOT BE THE CORRECT VERSION BUT FOR ME IT SEEMS CLEAR THERE WILL BE A THREEFOLD BUSINESS MODEL. ONE, TESLA'S OWN FLEET MEANING CARS THAT ARE EITHER ALREADY IN TESLA'S POSSESSION, PEOPLE

HANDING BACK THEIR LEASES OR WHATEVER ELSE INVENTORY THEY HAVE IN THEIR OWN FLEET. THAT ARE GOING TO OPERATE AUTONOMOUSLY AND BE STRATEGICALLY PUT IN CITIES IN SPOTS WHERE THEY WILL HAVE THE BEST YIELD OF A ROBOTAXI BUSINESS. COULD BE AIRPORTS, SHOPPING MALLS, WHATEVER. THAT'S PROBABLY TO BE TRIED OUT AND FOUND OUT HOW IT'S CAN OPERATE. THAT'S ONE PART OF IT. THE SECOND PART IS OWNERS LIKE ME CAN PARTICIPATE AND CAN ENROLL THEIR CARS INSTEAD OF STANDING HERE IN FRONT OF MY HOUSE. IT CAN TRAVEL AROUND THE DAY AND PICK UP CLIENTS AND BRING THEM TO THE PLACES THEY WANT TO BE BROUGHT TO. THAT'S GOOD TO BE A REVENUE SHARING MODEL. THE THIRD ONE IS GOING TO BE THE PURPOSE BUILT ROBOTAXIS. ED:

WHICH IS WHY THE DATA OF
UNVEILING IT WAS IMPORTANT. I WANT TO THINK ABOUT THE SELL
SIDE FOR A SECOND. ONE OF TESLA'S BIGGEST BULLS IS
MOVING TO THE SIDELINES AFTER EARNINGS.
I'M TALKING ABOUT PETE. HE'S DOWNGRADED TESLA TO
NEUTRAL AND IS WRITING THIS STOCK ISN'T -- IS AT THE TARGET
PRICE TRADING AT 50 TIMES THEIR 2026 ESTIMATES.
THEY SEE LIMITED AND UNRELIABLE VALUATION UPSIDE, ETC. WE HAVE YOU ON THE PROGRAM AS A
RETAIL OR INDIVIDUAL SHAREHOLDER, HOW CLOSELY DO YOU
FOLLOW THOSE FUNDAMENTAL ANALYSES THAT THE SELL SIDE
MAKES. ALEXANDRA: HE IS FRENCH, I LIVED A LOT IN
FRANCE, I LOVE HIS ACCENT AND

THE WAY HE'S DOING IT. I LIKED HOW HE FORMULATED HIS
POST BECAUSE HE WAS NOT SAYING HE DOWNGRADED TESLA.
THERE WAS SOMETHING BIZARRE ABOUT IT. LET'S PUT THAT ASIDE.
HE DOES NOT SEE IN THE NEXT 12 MONTHS MAJOR DEVELOPMENTS THAT
COULD BRING THE STOCK HIGHER. THAT'S WHY THEY ARE PUTTING IT
TO NEUTRAL. I COMPLETELY DISAGREE.
WE ARE HAVING ROBOTAXI DAY AND ALSO OCTOBER Q3 NUMBERS. AND
THEN WE WILL MOVE INTO 2025 WITH A LOT OF ANNOUNCEMENTS.
THREE OF THEM. WE WILL HAVE THE MODEL TWO, THE
CHEAPER VERSION OF THE TESLA BE PRESENTED IN EARLY 2025.
WE WILL HAVE PRODUCTION OF OPTIMISTS AT THE END OF 2025. SO
THERE'S A LOT OF THINGS.

HAPPENING. HE REFERRED TO ENERGY AT ITS
20% PART OF THE PROFIT OF TESLA, BUT IT'S ABOUT 17% ONLY.
THERE IS MUCH MORE MARGIN IN ENERGY.
IF YOU WANT TO TALK ABOUT ENERGY REVENUES AND PROFITS,
BECAUSE THEY ARE NOT LIKE A CAR IMMEDIATELY CONSUMED AT THE
MOMENT OF SALES. THEY ARE OVER TIME.
WHEN YOU SELL ENERGY, YOU GET IN THE REVENUES AND PROFITS IN
INSTALLMENTS, SO THERE IS A LOT OF WAITING REVENUES AND WAITING
PROFITS ALREADY THERE, AND THERE'S MUCH MORE TO COVER THAT,
AND AM SURPRISED PIERRE DID NOT TAKE CARE OF THAT. CAROLINE: I'M GLAD YOU BRING UP THE OTHER
PARTS, THERE'S ALSO THE DOJO SIDE OF THINGS.
MANY ARE TRYING TO UNDERSTAND THE LOGIC THERE.
TAKE A LISTEN TO WHAT ELON SAID

LAST NIGHT. WE WILL DOUBLE DOWN ON DOJO AND WE DO SEE A PATH TO BEING COMPETITIVE WITH NVIDIA. AND I THINK WE KIND OF HAVE NO CHOICE BECAUSE THE DEMAND FOR NVIDIA IS SO HIGH. CAROLINE: NVIDIA SHARES DOWN AS IS MOST OF THE MARKET TODAY BUT SOME SAYING MAYBE THERE'S A LACK OF DEMAND WILL COME FROM TESLA GOING FORWARD. WAS THAT A SURPRISE THAT THEY'RE GOING TO BE RAMPING UP DOJO BECAUSE THEY ARE WORRIED ABOUT THE SUPPLY SIDE? ALEXANDRA: THANK YOU SO MUCH. IT IS FUNNY BECAUSE OVER THE LAST FIVE OR SIX YEARS, THAT WAS ONE OF THE TOPICS IN THE EARNINGS CALL. SHALL I DO IT, SHALL I NOT. IT WAS A DANCE AND ABOUT SIX MONTHS AGO WE DID A WHOLE

TIMELINE OF NONCOMMITTAL WE.
WOULD LIKE TO DO A, BUT WE ARE NOT SURE. DON'T BET ON IT.
IT'S NOT SO CLEAR YET. THIS IS THE FIRST TIME ELON
CLEARLY SAID WE HAVE NO CHOICE, WE WILL DOUBLE DOWN ON IT AND
DO IT. THIS IS FABULOUS NEWS. THE SUPERCOMPUTERS ARE SO FAR
AHEAD AND WILL MAKE THE WHOLE TESLA INFRASTRUCTURE, THE WHOLE
DIGESTION OF VIDEOS AND OUTPUTS SO MUCH MORE PROFITABLE RATHER
THAN PURCHASING THE NVIDIA CHIPS. CAROLINE: --
ED: I WANT TO ASK, WOULD YOU VOTE IN FAVOR OF TESLA INVESTING IN X
AI PER THE POLE AND EXCHANGE LAST NIGHT. ALEXANDRA:
THANK YOU VERY MUCH. I APPRECIATE ALL OF THOSE.
I WOULD VOTE FOR IT, BUT NOT

UNCONDITIONALLY.
YOU KNOW, HOW I LIKE DOING THE ANALYSIS OF THINGS.
WE JUST HAD NEWS THAT OPENAI WILL PROBABLY PRODUCE ANOTHER
$5 BILLION LOSS THIS YEAR. I THINK THESE AI COMPANIES NEED
TO BE THOROUGHLY ANALYZED. IN PRINCIPLE, I LOVE IT AND
UNDERSTAND WHY IT'S A SEGREGATED ENTITY FROM THE
START. THOSE ENGINEERS DON'T WANT TO
BE IN A MEGA CAP COMPANY. THEY WANT ALL THE UPSIDE OF A SMALL
START-UP. SO, IT'S NEEDED TO BE SET UP THAT WAY. BUT ALSO, I
FULLY UNDERSTAND TESLA NEEDS ALL THIS INPUT, AND TESLA HAS
$30 BILLION OF CASH LINES. SO, INVESTING 5 BILLION COULD BE A
GOOD IDEA. >> THAT WAS A SCREEN GRAB OF
THE POLE, NOT ANY MEMBER OF THE BLOOMBERG TECHNOLOGY TEAM.
INVESTOR IN TESLA, RETAIL

SHAREHOLDER THANK YOU.
EARLIER THIS MONTH, IT WAS REPORTED ELON MUSK HAD PLEDGED
TO DONATE 45 MILLION DOLLARS A MONTH TO A SUPER PAC SUPPORTING
TRUMP'S PRESIDENTIAL CAMPAIGN. ON TUESDAY, HE CONFIRMED ON X HE
WOULD MAKE DONATIONS. HOWEVER, AT A MUCH LOWER LEVEL THAN WHAT
HAD BEEN REPORTED. HE DID NOT SAY HOW MUCH HE HAD
CONTRIBUTED. CAROLINE: WELL DONE FOR CLEARING THAT UP.
LET'S CHECK IN ON THESE MARKETS. THE NASDAQ OFF BY 2.6%.
WE ARE TRADING AT THE LOWEST SINCE JUNE THE 11TH.
WHY ARE WE LOWER? A WORRY THAT AI ISN'T REAPING THE REWARDS IN
THE HERE AND NOW, SO WE DIVE INTO THAT.
WHAT IT TELLS US IF INVESTORS AND SEEN US ABOUT AI AND
REWARDS.

WEALTH ENHANCEMENT GROUP JOINS US. THIS IS BLOOMBERG TECHNOLOGY. ♪ CAROLINE: ALPHABET SHARES FALLING AFTER THE GOOGLE PARENT SUNK MORE RESOURCES INTO DRIVING TO OUTMATCH RIVALS IN ARTIFICIAL INTELLIGENCE, FUELING SPENDING HIGHER THAN ANALYSTS HAD BEEN EXPECTING. THE CFO WANTING TO SOUND SOME REASSURANCE ON THE CALL, SAYING WE ARE SEEING THE BENEFIT OF OUR STRENGTH IN AI, AS WE GENERATED AI SOLUTIONS FOR CLOUD CUSTOMERS. THERE'S NO QUESTION CUSTOMERS ARE TURNING TO US AS THEY ARE BUILDING OUT THEIR CAPABILITIES. LET'S DISCUSS THIS. PORTFOLIO MANAGER OF WEALTH ENHANCEMENT GROUP, YOU HOLD SHARES OF ALPHABET, THEY ARE DOWN THE MOST SINCE FEBRUARY.

REVENUE IS UP SOME 15%, EARNINGS-PER-SHARE JUMPING 31%, BUT IT SEEMS TO BE THIS IDEA OF PLUNGING $13 BILLION PER QUARTER INTO AI THAT'S THE REAL WORRY. THANKS FOR HAVING ME. IN TERMS OF GOOGLE, WE THOUGHT IT WAS A PRETTY SOLID QUARTER. WE HAD STRENGTH IN REVENUES, AT A SEARCH, AND CLOUD WAS PRETTY STRONG. THE $13 BILLION THAT IS BEING SPENT ON CAPEX AND THE 25 BILLION SPENT SO FAR YEAR-TO-DATE, YOU TAKE THAT AND SAY IT WILL BE 50 BILLION FOR 2024, GOOGLE STILL HAS $80 BILLION OF NET CASH ON THEIR BALANCE SHEET, SO I THINK THE SPEND IS WARRANTED, THE INFRASTRUCTURE IS REALLY NEEDED. THEY NEEDED TO DO IT FOR THE CLOUD GROWTH TO BEGIN WITH.

IT IS SOMETHING THAT ALL THE
HYPER SCALARS ARE CONTINUING TO DO IN 2024, AND INVESTORS ARE
ASKING WHAT IS THAT RETURN ON INVESTMENT AT SOME POINT.
IN 2025. ED: WHEN I WAS ON THE PHONE WITH
RUTH, I ASKED HER IF SHE WOULD GIVE A REVENUE RATE NUMBER. YOU
PROBABLY REMEMBER LAST QUARTER. SHE SAID I'M NOT GOING TO DO THAT
BECAUSE WE WILL ADDRESS IT ON THE ANALYST CALL. THEY SAID YEAR-TO-DATE THEY HAD
BILLIONS OF DOLLARS OF REVENUE FROM AI INFRASTRUCTURE AND
GENERATIVE AI. I'M CURIOUS FOR AN INVESTOR
LIKE YOU, WHY WAS THAT NOT ENOUGH IF IT WAS SO GOOD FOR
AMAZON TO GIVE A NUMBER LIKE THAT A FEW MONTHS AGO? AYAKO:
I THINK IT IS ON THE SPENDING

SIDE. HISTORICALLY, WE HAVE SEEN COMPANIES THAT SPEND MORE ON CAPEX HAVE LESS ON THEIR FREE CASH FLOW TO SPEND ON MONEY BEING RETURNED TO SHAREHOLDERS. THAT'S PROBABLY THE REASON WHY THE STOCK IS SELLING OFF A LITTLE BIT TODAY. BUT OVER THE LONG TERM, VALUATION FOR GOOGLE IS NOT EXTREME. IT STILL HAS A -- IS A QUALITY COMPANY AND HAS A GOOD BUSINESS MODEL. I THINK IT'S ATTRACTIVE AT THIS LEVEL. CAROLINE: WHAT IS SO INTERESTING IS IT FEELS AS THOUGH ALPHABET AND TESLA ARE JUST SHAKING ALL OF OUR CONCERNS ABOUT THE AI HIKE AND THE FACT THIS ISN'T GOING TO BE HUGELY REVENUE-GENERATING IN THIS QUARTER OR THE NEXT. HOW IS YOUR PATIENCE FOR AI TO PAY OFF, WHETHER IT'S ALPHABET

OR NVIDIA OR SOME OF THE OTHER
NAMES, IN THE HOPE THAT AI IS BECOMING A PROFITABLE REALITY.
AYAKO: I THINK IN THE BROADER SCHEME
OF THINGS, IF THIS SELLOFF IN TECHNOLOGY SHARES ACROSS ALL OF
TECH, I THINK IT'S A HEALTHY THING FOR MARKETS.
WE ARE SEEING THE BROADENING OUT OF MARKETS WE'VE BEEN
TALKING ABOUT FOR SO LONG, AND YOU ARE SEEING OTHER AREAS OF
THE MARKETS PICK UP THE SLACK, WHICH IS GREAT TO SEE.
I THINK FOR AI, SUNDAR PICHAI SAID IT IN TERMS OF TAKING TIME.
IT'S ALL GOING TO TAKE TIME, AND WHEN WE LOOK BACK AT THE CLOUD
AND THE GROWTH OF CLOUD, THAT ALSO TOOK TIME.
MICROSOFT AZURE AND GOOGLE CLOUD WERE ALL BEING BUILT
YEARS AND YEARS AGO, AND WE ARE

JUST STARTING TO SEE THAT BENEFIT. THEY ARE STILL GROWING AT 25% PLUS RATES. SO I THINK THAT AI IS PROBABLY ON A SIMILAR TRAJECTORY. IT'S JUST NOT GOING TO BE IN A STRAIGHT LINE. ED: WAYMO 50,000 PAID RIDES A WEEK SO ALPHABET PUTS ANOTHER $5 BILLION INTO IT. YOUR REACTION TO THAT. >> I THINK AS TESLA IS PUTTING MONEY INTO THE ROBOTAXI SIDE OF THINGS, I THINK AUTONOMOUS DRIVING CARS ARE SOMETHING THAT IS A LONG-TERM GROWTH DRIVER FOR MANY OF THESE COMPANIES, WHETHER IT BE GOOGLE OR TESLA OR EVEN NVIDIA IN TERMS OF THE OVERALL CHIPS THAT WILL BE INSTALLED IN MANY OF THESE CARS. SO I THINK IT IS, AGAIN, ANOTHER LEG THAT MAY BE AGAIN TAKE MORE

TIME, THAT INVESTORS DON'T ALWAYS HAVE THE PATIENCE FOR. BUT IT ISN'T ANOTHER GROWTH AVENUE FOR MANY OF THESE STOCKS. ED: PORTFOLIO MANAGER AT WEALTH ENHANCEMENT GROUP, THANK YOU. COMING UP, WE ARE JOINED BY ALEX, CEO, ON BUILDING EASY-TO-CAROLINE. TODAY, FOR OUR AI IN ACTION SEGMENT, LET'S BRING IN THE CEO OF STAINLESS, A COMPANY DEDICATED TO BUILDING A PLATFORM FOR HIGH-QUALITY, EASY-TO-USE APIS BY DEVELOPING SOFTWARE DEVELOPMENT KITS. THE COMPANY RECENTLY CLOSED A 3.5 MILLION SEED ROUND. WHAT PROMPTED YOU ARE BUILDING IN DOING THIS, AND YOU'VE TAKEN IT BROADER. HOW DIFFERENT IS IT CREATING SDKS OVER AND AI COMPANIES PAY HOW MUCH MORE DIFFICULT?

IT'S A GREAT QUESTION. THERE'S A LOT OF TECHNIQUES WE USE AT STAINLESS THAT ARE SIMILAR TO THE TECHNIQUES WE USED ON AN POWERED STRIPE. A LOT OF THINGS ARE DIFFERENT. FOR ONE THING, WE NEED TO SUPPORT A BROADER VARIETY OF API DESIGN PATTERNS, AND THAT'S TRUE FOR JUST BUILDING A PLATFORM THAT CAN SUPPORT ANY COMPANY TO BUILD A GREAT DEVELOPER EXPERIENCE. IT INCLUDES AI AND NON-AI COMPANIES. FOR COMPANIES LIKE OPENAI, ANTHROPIC, A WIDE VARIETY OF OTHER COMPANIES WE SUPPORT, WE HAVE TO GO DEEPER TO HELP DEVELOPERS REALLY TAKE FULL ADVANTAGE OF THE FULL POWER OF THESE APIS. THEY ARE MUCH MORE ADVANCED, RICHER WITH THINGS LIKE STREAMING AND CALLING. AND THAT REQUIRES A LOT MORE EXPERTISE THAN EVEN FINTECH.

APIS LIKE STRIPE. ED:
A TEAM OF 10 WITH $3.5 MILLION IN THE BANK.
HOW ARE YOU IN A GROW YOUR BUSINESS? ALEX: GREAT QUESTION. WITH COMPANIES LIKE OPENAI,
ANTHROPIC, CLOUD FLARE EVEN USING OUR SDKS AND A BUNCH OF
SMALLER COMPANIES RECOGNIZED IN SILICON VALLEY'S LEADERS IN API
FIRST STRONG DEVELOPER EXPERIENCE. WE'VE SEEN A LOT OF
INBOUND INTEREST. AND SO I AM VERY GLAD WE'VE INVESTED IN
BUILDING STRONG PLATFORMS FOR SCALING OUT SDKS FOR A LARGE
NUMBER OF COMPANIES BECAUSE IT'S ENABLED US TO KEEP OUR
TEAM SMALL, FOCUSED, AND HIGHLY SKILLED WHILE SERVING A LARGE
NUMBER OF API COMPANIES. CAROLINE: STAINLESS. ED: THANK YOU. COMING UP ON
BLOOMBERG TECHNOLOGY, WE WILL BE

JOINED BY THE FOUNDER AND CEO
OF CHECK POINT SOFTWARE TECHNOLOGIES. AND OF COURSE,
THAT'S HOT ON THE HEELS OF THE COMPANY'S EARNINGS AND THE
BIGGEST I.T. OUTAGE PROBABLY IN HISTORY THAT
IMPACTED HIS INDUSTRY. I THINK THAT'S AN UNDERSTATEMENT. STAY WITH US. WE WILL BE RIGHT
BACK. THIS IS BLOOMBERG TECHNOLOGY. ED: WELCOME BACK TO BLOOMBERG
TECHNOLOGY. CAROLINE: CAROLINE HYDE RIGHT HERE IN
LONDON. LET'S CHECK IN ON THESE MARKETS
BECAUSE WE HAVE HAD PLENTY TO DIGEST WHEN IT COMES TO
ALPHABET AND TESLA. OTHER COMPANIES POSTED EARNINGS,
AND SOME ARE GIVING SOME RELIEF. TEXAS INSTRUMENT'S UP 5/10 OF A
PERCENT.

MAYBE THAT GLUT IS COMING TO AN
END. SIGNS. WE ARE MEETING EXPECTATIONS FOR THE FORECAST.
REALLY, IT SEEMS TO BE THE REVIVAL IS UNDER THE WAY. HE
MARKET. SO, THERE'S PRESSURE ON AUTOMOTIVE AND INDUSTRIAL, BUT
MAYBE THAT IS THE BOTTOMING OF THAT.
IBM LOWER AS WE EXPECT THEIR NUMBERS COMING OUT AFTER THE
BELL TODAY. CONSULTING LIKELY TO BE LOWER.
ARE WE GOING TO EKE OUT ONE PERCENT REVENUE GROWTH THAT
MANY ARE PARTICIPATING -- ANTICIPATING. 21% IN EARNINGS. HOW MUCH ARE WE SEEING APPETITE
FOR ARTIFICIAL INTELLIGENCE. GENERATIVE AI REALLY MANAGED TO
BUOY SOME OF THEIR SOFTWARE WHEN COMPANIES ARE STRAPPED FOR
SPENDING. LET'S LOOK AT WHAT'S HAPPENING
WITH THE STORY THAT WON'T GO

AWAY FOR CROWDSTRIKE. IN PARTICULAR, WE ARE SEEING IT OFF BY 25% OF THE LAST FIVE TRADING DAYS. WE FINALLY GOT SOME SORT OF ANSWER TO WHY THIS HAPPENED. THE MASSIVE GLOBAL I.T. OUTAGE WAS A BUG IN A QUALITY ASSURANCE TOOL THE COMPANY USES TO CHECK UPDATES FOR MISTAKES. IT ALLOWED FLAWED DATA TO GO OUT TO CUSTOMERS, CAUSING THE MELTDOWN. THE MELTDOWN IN THE STOCK CONTINUES. GET A LITTLE BIT OF DETAIL. KATRINA MANSON IS WITH US, AND WE'VE BEEN WAITING FOR FURTHER DETAILS. CAN YOU GIVE US THE NUANCES TO ULTIMATELY WHY THIS IS SO UNIQUE, HOW THIS QUALITY ASSURANCE STEP FAILED? KATRINA: IT IS SO COMPLICATED AND SO DETAILED.

WHAT WE'VE NOW GOT IS FIVE DAYS LATER, THE PRELIMINARY INCIDENT REPORT. THIS RIGHT IN THE SMALL PRINT TAKES US TO WHAT CYBERSECURITY EXPERTS ARE SAYING IS A WELCOME DETAILED, TRANSPARENT REPORT. BUT IT IS STILL EARLY DAYS AS THEY ARE DOING THE ROOT CAUSE ANALYSIS. LET ME READ IT TO YOU. DUE TO A BUG IN THE CONTENT VALIDATOR OF THE TWO INSTANCES PAST VALIDATION CONTAINING PROBLEMATIC DATA. THE TESTING PROCESS FOR MAKING UPDATES IN SOME WAY FAILED TO FLAG AN ERROR. ONE, THERE WAS AN ERROR AND THE TESTING PROCESS TO FIND IT ALSO HAD A PROBLEM. BECAUSE CROWDSTRIKE IS SO INSTRUMENTAL TO ENDPOINT DETECTION RESPONSE, REALLY PROTECTING COMPUTERS IN THIS CASE LIKE HER SOFT WINDOWS COMPUTERS, 8.5 MILLION OF THEM.

ACCORDING TO MICROSOFT, EXPERIENCE THE BLUE SCREEN OF DEATH THAT AFFECTED HOSPITALS, AIRPORTS, RETAIL AIRLINES. THEY ARE STILL GETTING BACK ON THEIR FEET. SOME OF THESE COMPANIES TRYING TO DO AUTOMATED FIXES AND THEY ARE STILL IN RECOVERY MODE. AT THE SAME TIME TRYING TO SHARE 120 WRONG AND PROMISING THERE WILL BE FIXES. ED: THE MESSAGE FROM CROWDSTRIKE IS WE WILL MAKE SURE TECHNOLOGICALLY SPEAKING WE KNOW WHAT HAPPENED. BUT AS YOU AND I WROTE ABOUT EARLIER IN THE WEEK, WE STILL ARE LEARNING ABOUT HOW SYSTEMIC THIS ISSUE WAS, ABOUT HOW CENTRAL CROWDSTRIKE IS TO AN IMPORTANT SUPPLY CHAIN. WHAT WAS THE LATEST ON THAT FRONT? KATRINA: IT COMES DOWN TO THAT SINGLE POINT OF FAILURE.

AS WE SPEAK TO EXPERTS IN THE
AREA, IT BECOMES CLEAR SOME OF THE THINGS THAT PROTECT PEOPLE
ARE ALSO VERY CLOSELY NESTLED INSIDE THEIR SYSTEMS. SO, IF SOMETHING GOES WRONG WITH THAT
AND EVERYTHING, ANOTHER ONE OF THE SINGLE
POINTS OF FAILURE THAT HADN'T BEEN NOTICED, CAUGHT, AND
EXAMINED. WE WILL EXPECT TO HEAR FROM NOT
ONLY CYBERSECURITY COMPANIES TRYING TO GET MILEAGE OUT OF
THIS AND TRY TO TAKE CUSTOMERS, BUT ALSO FROM THOSE WHO LOOK
AT CYBER DEFENSE IN THIS COUNTRY AND WORRY THERE ARE
SIMPLY TOO MANY HOLES. ED: HOLD THAT THOUGHT.
THE TRINA WITH THE LATEST REPORTING ON CROWDSTRIKE.
OTHER COMPANIES IN THE SPACE, LET'S STICK WITH CYBERSECURITY
AND BRING IN THE FOUNDER AND

CEO OF CHECK POINT SOFTWARE TECHNOLOGIES, WHICH JUST RELEASED ITS SECOND-QUARTER RESULTS, BEATING EXPECTATIONS AND ANNOUNCING A NEW INCOMING CEO. YOU ARE IN THE GAME ALSO ENDPOINT SECURITY. TO START, WHAT'S THE LAST SEVEN DAYS OR SO BEEN LIKE FOR YOU? AND YOUR COMPANY, INCOMING AND OUTGOING, IN YOUR RESPONSE TO WHAT HAPPENED WITH CROWDSTRIKE? GIL: WE HAVE BEEN WATCHING IT AND SUPPORTING CUSTOMERS AND HELPING IN WHAT WE CAN HELP. IT'S NOT A CYBERSECURITY BUG, IT'S A SOFTWARE BUG. BUT IT SHOWS US HOW DEPENDENT US IN SOFTWARE CAN TAKE THE WORLD UP AND DOWN. AND IT'S ALSO A VERY STRONG, WE NEED THIS QUICK AUTOMATIC UPDATES AND THE CYBER RISKS THAT ARE INVOLVED BECAUSE THESE QUICK UPDATES ARE SUPPOSED TO HELP SOLVE.

VULNERABILITIES. AND EVERY WEEK, DOZENS OF VULNERABILITIES ARE DISCOVERED IN COMPANIES, AND WE NEED THESE QUICK UPDATES TO STOP THESE ATTACKERS. CAROLINE: HAS THE INDUSTRY CHANGED ANYTHING ARCHITECTURALLY, SPEAKING, THAT WOULD MEAN THIS CANNOT HAPPEN AND BECOME A SINGLE POINT OF FAILURE AGAIN? GIL: I THINK WE ARE LEARNING. I DON'T WANT TO EXCLUDE US, WE NEED TO LEARN HOW TO CREATE THIS BALANCE BETWEEN QUICK UPDATES ON ONE HAND AND AVOIDING VULNERABILITIES, WHICH IS ALSO VERY IMPORTANT. AND I THINK THAT'S A LESSON THE ENTIRE WORLD NEEDS TO LEARN. ED: I APPRECIATE IT IS EARLY IN THIS PROCESS. THERE WERE QUESTIONS ABOUT THE FUTURES OF FIREWALLS, AND I WANTED TO ASK IF THERE WOULD BE THIS

ARCHITECTURAL SHIFT IN CYBERSECURITY AND LANDSCAPE. OUR ANALYST AT BLOOMBERG INTELLIGENCE TALK ABOUT A MOVE TO AGENTLESS DELIVERY OF SECURITY LIKE IN THE CASE OF ENDPOINT SECURITY PROVIDED BY CROWDSTRIKE. BIG PICTURE HOW DO YOU SEE THAT PLAYING OUT? GIL: IN THE LAST 30 YEARS, I'VE BEEN IN THIS BUSINESS FOR 31 YEARS AND WE'VE KIND OF INVESTED IN NETWORK CYBERSECURITY. THERE'S ALWAYS AGAIN DOZENS OF TECHNOLOGIES EVEN HUNDREDS OF TECHNOLOGY. THE NETWORK SECURITY AND THE ENDPOINT TECHNOLOGY. I THINK WE NEED BOTH AND IT WOULD BE EASY FOR ME TO SAY EVERYONE WILL SHIFT TO THE NETWORK MANY TIMES PEOPLE SAY THE OTHER ROUTE BUT AT THE END OF THE DAY WE NEED BOTH THE ENDPOINT SECURITY AND PERIMETER

SECURITY AND EACH ONE OF THEM COMPLEMENTS EACH OTHER, AND STILL WITH ALL OF THAT, WE ARE FACING A LOT OF CYBER RISKS. >> THERE IS SO MUCH TO TALK ABOUT WITH YOUR COMPANY AND INDUSTRY. YOU, OF COURSE, HAVE MANAGED TO BEAT EXPECTATIONS IN YOUR EARNINGS. YOU ARE SEEING THE REVENUE GROWTH AS IT HAD BEEN ANTICIPATED. ALSO, WE'VE GOT M&A NOT HAPPENING POTENTIALLY HAPPENING, GOOGLE AND WIZ, FOR EXAMPLE. SOME INTERPRETATION IS WITH YOUR NEW CEO THAT MAYBE YOU WILL DO MORE M & A, THAT YOU COULD BE BEEFING UP PURSUING DEALS? GIL: FIRST, I DEFINITELY HOPE WE CAN DO MORE. WE HAVE BEEN DOING TWO A YEAR IN THE LAST TWO YEARS, BUT WE CAN DO MORE AND BIGGER ONES.

I DO THINK WHAT'S HAPPENING IS ACTUALLY VERY INTERESTING. IT'S AN AMAZING COMPANY BUILT VERY FAST LEADERSHIP IN THE CLOUD SECURITY SPACE. AND I THINK THE FACT THEY WANT TO REMAIN STANDALONE AND BUILD A LARGE COMPANY IS SOMETHING WE CAN ALL ADMIRE BECAUSE IT WILL TAKE THE MANY YEARS TO GET TO THE SAME FINANCIAL NUMBERS WITH THESE. 
CAROLINE: WE REALLY WANT TO TALK ABOUT JUST HOW MUCH YOU CONTINUE TO BE INNOVATING OVER IN THE SPACE. COME ON BACK, CURRENTLY CEO OF CHECK POINT SOFTWARE TECHNOLOGIES HANDING OVER THOSE REIGNS, HE REMAINS AS FOUNDER. 
ED: A LOT MORE IN THE NEWS, HACKERS HAVE LEAKED INTERNAL DOCUMENTS STOLEN FROM WINOS HOLDINGS -- FROM LEIODDOS HOLDINGS. THEY SERVICE THE LIKES OF THE PENTAGON AND NASA.

A COMPANY SPOKESPERSON SAID THE LEAK STEMS FROM A PREVIOUSLY DISCLOSED BREACH, AND THAT NO EFFECT ON THEIR NETWORK OR ANY SENSITIVE CUSTOMER DATA. PLUS, META HAS REMOVED OVER 63,000 ACCOUNTS IN NIGERIA LINKED TO SCAMMERS. THE PARENT COMPANY OF FACEBOOK SAID THEY REMOVED ACCOUNTS USING THE SOCIAL MEDIA PLATFORM TO BLACKMAIL AND SEXUALLY EXTORT USERS. THE MASS REMOVAL TOOK PLACE AT THE END OF MAY, SIX WEEKS AFTER A BLOOMBERG ARTICLE DETAILED THIS. SHARES OF NETEASE ARE CLIMBING. IT GETS SET TO LAUNCH ITS MOBILE GAME. ACCORDING TO GOLDMAN SACHS, AGAIN, PUBLISHER IS EXPECTED TO GENERATE SALES OF 880 MILLION FROM THE GAME OVER ITS FIRST 12 MONTHS. THEY SAY 40 MILLION PEOPLE HAVE ALREADY PRE-REGISTERED FOR THE

GAME. CAROLINE: YOU LOVE A BIT OF GAMING. COMING UP, WE HAVE BLOOMBERG'S LIST OF 10 AI STARTUPS TO WATCH THIS YEAR. MEANWHILE, KEEP AN EYE ON CERTAIN SHARES. AT&T ADDING FAR MORE MOBILE PHONE SUBSCRIBERS, FEWER CUSTOMERS CANCELING, MANY ADDING SERVICES TO THEIR BROAD TO THEIR PLANS. T-MOBILE DOWN MORE THAN 1%, 4.9 BILLION DOLLARS IN A JOINT VENTURE WITH THE PRIVATE EQUITY FIRM KKR. THIS IS BLOOMBERG TECHNOLOGY. SPOTIFY AND I HEART RATE THIS IS BLOOMBERG. ED: BLOOMBERG IS OUT WITH ITS SECOND ANNUAL LEADERBOARD OF AI STARTUPS, THE BOOM AND AI INNOVATION IS LED TO TENS OF BILLIONS OF DOLLARS FUNNELED INTO AI COMPANIES IN THE FIRST

PART OF THIS YEAR ALONE.
THESE TEND STARTUPS. YOU SEE HERE ARE SOME OF THE BIGGEST
AND BEST FUNDED TO BE WATCHING RIGHT NOW.
LET'S BRING IN ONE OF THE CO-AUTHORS AND ONE OF THE
ASSEMBLERS OF SUCH A LIST. THE TOP 10, RACHEL METZ. LET'S
START WITH METHODOLOGY. SOME OF IT IS OBVIOUS.
OPENAI AND COMPLEXITY SUPER INTERESTING.
HOW DID YOU PUT THIS TOGETHER, RACHEL?
SOME OF IT IS A LITTLE BIT OF THINKING OF WHAT WE THINK
SHOULD BE ON THIS LIST. IT SHOULD BE POINTED OUT. THIS IS
NOT A RANKED LIST. SO IT'S NOT ONE THROUGH 10.
IT'S ARBITRARILY LIST IT ON THE LIST. BUT A LOT OF IT IS RELATED
TO THEIR VALUATION, HOW MUCH MONEY THEY'VE RAISED. AND BUZZ,
WHICH IS A HARD FACTOR TO PIN.

DOWN, WHICH IS KIND OF UP TO
YOUR OPINION. CAROLINE: DWELLING ON A COMPANY LIKE SUE
KNOW, MANY OF US HAVE HEARD OF THE OTHER PLAYERS, BUT IT IS AN
MASSACHUSETTS-BASED $500 MILLION VALUATION, BUT NOTHING
IN COMPARISON TO OPENAI. WHY WOULD YOU PICK THIS
GENERATOR? RACHEL: IT'S ONE OF A COUPLE COMPANIES
ON THIS LIST THAT WE -- MAY SOUND SURPRISING AT FIRST,
BECAUSE IT HASN'T RAISED A TON OF MONEY AND IT'S NOT WORTH A
TON. BUT IT HAS GOTTEN A TON OF ATTENTION IN GOOD WAYS AND BAD,
FROM PEOPLE THAT ARE USING IT TO MAKE THESE VERY COMPLICATED,
SOUNDING SONGS, GENERATING MUSIC THAT JUST WASN'T POSSIBLE,
UNTIL QUITE RECENTLY WITH AI.

IT'S ALSO DRAWN THE IRE OF THE VERY FAMOUSLY LITIGIOUS MUSIC INDUSTRY. THE BIGGEST REPERTOIRE RECORD LABELS IN THE WORLD SUED THEM RECENTLY, CLAIMING IT USED SONGS, COPYRIGHTED SONGS UNLAWFULLY IN ITS TRAINING DATA. CAROLINE: LET'S GO GEOGRAPHICALLY. I BRING UP A CAMBRIDGE-BASED COMPANY. THESE ARE LARGELY U.S.-BASED, WHETHER THEY BE IN NEW JERSEY OR IN SAN FRANCISCO. BUT THERE IS ONE CANADIAN, ONE FRENCH. IS IT HARD TO FIND INTERNATIONAL WINNERS RIGHT NOW? RACHEL: THERE IS AN INCREASING NUMBER OF STRONG INTEREST IN COMPANIES ALL AROUND THE WORLD. WE RELIED ON SOME OF OUR BLOOMBERG TECHNOLOGY REPORTERS IN OTHER PARTS OF THE WORLD TO HELP US FIGURE OUT WHO IN YOUR

GEOGRAPHY IS MOST IMPORTANT.
THIS YEAR TO GIVE A SENSE OF HOW HARD IT WAS TO FIGURE OUT
WHO SHOULD BE ON THIS LIST, THIS YEAR WE ADDED AN
ADDITIONAL SIX COMPANIES THAT ARE ONES WE THINK PEOPLE SHOULD
KEEP AN EYE ON, AND A NUMBER OF THOSE ARE OUTSIDE THE U.S..
NEXT YEAR THOSE MIGHT BE ON THE TOP 10. ED:
I LOOK AT THE LIST AND HOW MANY OF THE NEWS HEADLINES AND
STORIES FOR THOSE COMPANIES ON THE SHOW LIKE SUPER FOCUSED ON
THEIR FUNDRAISING. I'M A USER OF CHATGPT AND HAVE
PLAYED A BIT WITH PERPLEXITY. HOW MUCH WAS THE SORT OF
REAL-WORLD USE OF THE TECHNOLOGIES THOSE COMPANIES
ARE MAKING PART OF YOUR DECISION IN SAYING THESE ARE
THE TOP 10. RACHEL: THAT'S SOME OF IT.
I THINK OPENAI IS AN EASY

COMPANY TO PUT ON A LIST LIKE THIS BECAUSE YOU SEE IT ACHIEVING IN THE MULTIPLE DIFFERENT AREAS. WE WERE LOOKING AT, IT HAS BRAND RECOGNITION, AND IT CLEARLY HAS CORPORATE USERS AND CONSUMERS THAT ARE INTERESTED IN THE COMPANY. IT'S RAISED A TON OF MONEY OVER TIME AND WORTH A LOT OF MONEY. SOME OF THESE COMPANIES IT WAS LIKE A COMBINATION OF FACTORS THAT THEY MIGHT NOT HAVE BEEN ON THEIR EVERY SINGLE ONE. AND IT'S TRUE SOMETIMES IT'S HARD TO GAUGE IF YOU ARE ENTIRELY ENTERPRISE FOCUSED. DON'T KNOW WHO A TON OF YOUR CUSTOMERS ARE, FOR INSTANCE, BECAUSE A LOT OF COMPANIES ARE EITHER STILL EXPERIMENTING WITH AI AND NOT REALLY USING IT IN DAILY PRACTICES, OR THEY MIGHT NOT WANT TO BE SUPER PUBLIC.

ABOUT WHAT SOFTWARE THEY ARE
USING. CAROLINE: RACHEL, YOU AND THE TEAM IS
ALWAYS DOING GREAT WORK. THANKS FOR BRINGING THIS TO US.
WE WILL DISCUSS THE IMPACT GEN Z AND SOCIAL MEDIA IS HAVING ON
POLITICS. HOW THE HARRIS CAMPAIGN HAS
EMBRACED THE VICE PRESIDENT'S RECENT SOCIAL MEDIA SPOTLIGHT.
THIS IS BLOOMBERG TECHNOLOGY. >> I AM SO VERY HONORED AND I
PLEDGE TO YOU I WILL SPEND THE COMING WEEKS CONTINUING TO
UNITE OUR PARTY, SO THAT WE ARE READY TO WIN IN NOVEMBER.
CAROLINE: VICE PRESIDENT KAMALA HARRIS
VOWING TO WIN THE ELECTION IN HER FIRST CAMPAIGN RALLY.
AFTER PRESIDENT BIDEN PULLED OUT OF THE RACE AND ENDORSED
HARRIS, ANY GEN Z VOTERS WERE

QUICK TO EMBRACE THE CAMPAIGN THROUGH MEMES, VIDEO EDITS OF THE VP THAT HAVE SINCE GONE VIRAL ON TIKTOK, INSTAGRAM. CEO FUTURE CAUCUS, A NONPARTISAN ORGANIZATION FOR YOUNG POLICYMAKERS, JOINING US NOW FOR WHAT HAS BECOME A MEAN FRENZY. SO QUICKLY PREVIOUS SPEECHES JUMPED UPON, BRAT SUMMER HAS BECOME, IS BRAT. THIS IS A MOMENT FOR GEN Z TO BE AWAKENED. WHY IS THIS HAPPENING SO EFFECTIVELY? >> I LOVE THIS AND THE FACT YOU JUST SAID ON BLOOMBERG. KAMALA IS BRAT IS AN INCREDIBLE TURN OF EVENTS. I THINK YOU DON'T HAVE TO BE A POLITICAL EXPERT TO KNOW THAT THE PAST FEW WEEKS, MONTHS, YEARS IN POLITICS HAVE FELT

EXHAUSTING.
THE RACE BETWEEN TWO PEOPLE, WHO WE HAVE SEEN THIS MATCHUP
BEFORE, HAS FELT STATIC. AND THIS MOMENT HAS INTRODUCED SOME
DYNAMISM, AND FRANKLY, SOME JOY BACK INTO WHAT IS A TENSE
POLITICAL MOMENT. SEEING THE VICE PRESIDENT'S
TEAM CAPITALIZE ON IT, BUT ALSO A LOT OF ORGANIC CONTENT FROM
RANDOM INTERNET USERS, SPEAKS TO THE SENSE OF JOY, I THINK, PEOPLE
ARE INFUSING BACK INTO THE CONVERSATION, WHERE IT REALLY
WAS LACKING. ED: DIRECTOR, PRODUCER, SAYING THEY
ARE ADDING CAROLINE, SAYING THAT TO THE SHOW REEL FOR 2024.
THE BENEFIT OF OUR GLOBAL AUDIENCE, AND I HAVE SEEN IT OF
COURSE AND ENGAGEMENT, EXPLAIN BRAT TO US. CAROLINE: CHARLI XCX IS BRAT.
SHE IS A NEW SONG, THAT'S ALL.

ABOUT BRAT SUMMER.
IT'S A FEMALE WHO IS QUICK TO LAUGH, WHO DOESN'T TAKE HERSELF
TOO SERIOUSLY, BUT GOES DEEP. PERHAPS ENJOYS PARTYING
SLIGHTLY. WHY LAYLA HAS THIS BEEN A
LEXICON THAT WILL BE DIFFERENT TO MOBILIZE GEN Z?
TO THE POINT, WE PERHAPS SEE TRUMP TO HIS CAMPAIGN'S EFFORTS,
THINKING ABOUT CRYPTO AS A WAY TO LINK TO MILLENNIAL OR
YOUNGER VOTERS. LAYLA: THE RACE REALLY WAS ABOUT AGE
FOR MONTHS, AND ULTIMATELY, PRESIDENT BIDEN MADE HIS
DECISION IN LARGE PART BECAUSE OF THIS PUSH TO MOVE TO
GENERATIONAL FUTURE THAT HE JUST WASN'T REPRESENTING, AND SO
THE WILLINGNESS TO LEAN IN TO SOMETHING THAT APPEALS SO DEEPLY
TO YOUNG PEOPLE, OR AT LEAST

SPEAKS THEIR LANGUAGE, I THINK.
IS -- PEOPLE FEEL HEARD, THEY FEEL EXCITED, AND I CANNOT
PREDICT THE FUTURE OR TELL YOU HOW IT WILL AFFECT THE VICE
PRESIDENT'S CAMPAIGN. IN PART, BECAUSE WE DON'T HAVE AN
OFFICIAL NOMINEE UNTIL THE CONVENTION NEXT MONTH. BUT I THINK ONE THING TO KNOW
IS SAVVY SOCIAL MEDIA USERS STILL NEED TO USE ANOTHER
PHRASE OF THE MOMENT, LIVE IN THE CONTEXT.
GEN Z MIGHT HAVE AN ABSURD SENSE OF HUMOR AND MIGHT REALLY
ENJOY THE SORT OF BUZZWORDS AND THESE TRENDING MEMES, BUT AT
THE END OF THE DAY, THEY ARE SERIOUS AND INFORMED ABOUT
POLICIES THEY CARE ABOUT. ED: MEMES ARE ALSO A TOOL FOR
RIDICULE AND MISINFORMATION.

GENERALLY, THIS CONVERSATION HAS BEEN ABOUT THE POSITIVE REACTION ON SOCIAL MEDIA. THERE IS NEGATIVE REACTION, AND THE CONTENT IN SUPPORT OF HER IS ALSO IN COMPETITION WITH CONTENT IN SUPPORT OF TRUMP AND J.D. VANCE. JUST EXPLAIN THE DYNAMIC OF THAT TO OUR AUDIENCE. LAYLA: SOCIAL MEDIA HAS ALWAYS BEEN A POWERFUL WAY TO RECLAIM NEGATIVE TERMS, NEGATIVE PERCEPTIONS, AND THAT CAN WORK IN A POSITIVE POLITICIANS' FAVOR IF THEY LEAN INTO IT. LOOKING AT PRESIDENT BIDEN WITH DARK BRANDON OR LAST ELECTION CYCLE WITH HELICAL DUTCH GUILDER CLEANSE MENTION OF DEPLORABLE'S AND THAT BECOMING A GALVANIZING CRY FOR TRUMP SUPPORTERS. I THINK OF POLITICIANS OR THEIR SUPPORTERS LEAN INTO SOME OF THE NEGATIVE MEMES, IT ACTUALLY

CAN BE REALLY POWERFUL FOR THEM.
THERE'S NO DOUBT IN MY MIND SOCIAL MEDIA IS BOOSTING
INFLAMMATORY CONTENT. IT CAN CONTRIBUTE TO WORSENING
POLITICAL POLARIZATION AND IS SOMETHING FUTURE CAUCUS HAS
WORKED ON BRINGING LAWMAKERS TOGETHER TO KNOW EACH OTHER AS
HUMANS ARE, NOT DIGITAL AVATARS. SOCIAL MEDIA HAS THE
POSSIBILITY TO ADD GASOLINE TO A POLARIZED MOMENT. CAROLINE: FOR NOW, SUMMER ARE FINDING THE
POSITIVE HUMOR SIDE, BUT THERE IS A SERIOUS SIDE TO IT.
WE HOPE TO BRING YOU BACK ON TO DISCUSS THE PROS AND CONS OF
EMBRACING SOCIAL MEDIA. WE APPRECIATE IT.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: LISTEN TO THE PODCAST ON THE
TERMINAL AS WELL AS APPLE.

Spotify and iHeart.
Chelsea Wrexham, this is Bloomberg.

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