FROM THE HEART OF WHERE MONEY AND POWER COMBINE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY, WITH CAROLINE HYDE AND DAN LUDLOW. ED: I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE HYDE IS OFF. COMING UP, WE HAVE FULL COVERAGE OF THE FIRST PRESIDENTIAL DEBATE AND DISCUSS THE STATE OF CRYPTO WITH THE FORMER REPUBLICAN PRESIDENTIAL HOPEFUL VIVEK RAMASWAMY. PLUS, WE BREAK DOWN APPLE'S BUSINESS IN CHINA. AND A NEW SURVEY SHOWS TESLA DESIGN CHANGES ARE CONFUSING CUSTOMERS AND UNDERCUTTING ITS QUALITY. WE DISCUSS THAT AND SO MUCH MORE THROUGH THE HOUR. HAPPY FRIDAY. LET'S GET RIGHT TO FINANCIAL MARKETS. THE S&P 500 AT AN ALL-TIME HIGH. IT IS BRIEFLY BREACHING THE

20,000 MARK FOR THE FIRST TIME.
YIELDS A LITTLE HIGHER. BITCOIN HAD A RISK-ON SENTIMENT.
SOFTER BY A PERCENTAGE POINT. THE MAIN FACTOR IN THE MARKETS
THIS MORNING IS NOT THE FIRST PRESIDENTIAL DEBATE, AT THE PCE
READING DECELERATING. THE PCE BEING THE FED'S
PREFERRED GAUGE OF INFLATION. THAT IS THE DISCUSSION ON THE
WEEK. I ALSO WANT TO TAKE A LOOK AT
ONE SPECIFIC NAME IN THE CONTEXT OF WHAT WE ARE ABOUT TO
TALK ABOUT, WHICH IS THE PRESIDENTIAL DEBATES, AND THAT
IS TRUMP MEDIA TECHNOLOGY GROUP. THIS MORNING, WE TRADED
SIGNIFICANTLY HIGHER. YOU CAN SEE WE ARE NOW DOWN
6/10 OF A PERCENT. THIS IS THE PARENT COMPANY OF TRUE SOCIAL. THIS IS A COMPANY
WITH TIES TO DONALD TRUMP.

LET'S GET A RECAP OF THE PRESIDENTIAL DEBATE HOSTED BY CNN. PRES. BIDEN: THERE IS MORE TO BE DONE. PEOPLE ARE STILL IN TROUBLE. MR. TRUMP: HE HAS DONE A POOR JOB AND INFLATION IS KILLING THE COUNTRY. IT IS KILLING US. PRES. BIDEN: THE PRICE OF GAS, THE PRICE OF HOUSING -- WE HAVE BEEN WORKING HARD TO DEAL WITH THOSE PROBLEMS. I WAS IN FRANCE FOR THE DAY AND I SPOKE TO ALL THE HEROES WHO DIED. -- I SPOKE ABOUT ALL THE HEROES WHO DIED. I WENT TO THE CEMETERY IN WASHINGTON. HE REFUSED TO GO THERE. HE TOLD ME, I DON'T WANT TO GO IN BECAUSE THERE ARE LOSERS AND SUCKERS. I SUN WAS NOT A LOSER OR A SUCKER. MR. TRUMP:

NOBODY HAS TAKEN BETTER CARE OF
OUR SOLDIERS THAN I HAVE. THE MONEY WE ARE SPENDING ON
THIS MORE -- IT SHOULD HAVE NEVER HAPPENED. I WOULD HAVE THE WAR SETTLED AS
PRESIDENT-ELECT. BEFORE I TAKE OFFICE ON JANUARY
20, I WILL HAVE THE WAR SETTLED. IF WE HAD A PRESIDENT THAT WAS
RESPECTED, HE WOULD HAVE NEVER INVADED UKRAINE.
ISRAEL WOULD HAVE NEVER BEEN INVADED IN A MILLION YEARS BY
HAMAS. YOU KNOW WHY? IRAN WAS BROKE WITH ME.
I WOULD NOT LET ANYBODY DO BUSINESS WITH THEM. PRES. BIDEN:
THE NATIONAL SECURITY COUNCIL TO NETANYAHU HIMSELF -- THE
ONLY ONE WHO WANTS THE WAR TO CONTINUE IS HAMAS. MR. TRUMP:
IN ROE V. WADE, YOU HAVE LATE-TERM
ABORTION.

DEPENDING ON THE STATE, YOU CAN
DO WHATEVER YOU WANT. WE DON'T THINK THAT IS GOOD.
WE THINK IT IS A RADICAL THING. WE THINK THE DEMOCRATS ARE
RETICLES, NOT REPUBLICANS. BUT SPAM, IT IS A TERRIBLE THING
YOU ARE DOING. THE VAST MAJORITY OF AMERICANS
SUPPORTED ROE AND SUPPORT ROE. THE IDEA THEY ARE AGAINST IT IS
RIDICULOUS. MR. TRUMP: I TOOK TWO TESTS, COGNITIVE
TESTS. I ACED THEM. I JUST WON TWO CLUB
CHAMPIONSHIPS. ED: KAILEY LEINZ JOINS US WITH MORE
FROM THE SEA. I WANT TO REDO THE HEADLINE OF THE MOST READ STORY
ON BLOOMBERG. BIDEN'S DISASTROUS DEBATE
ACCELERATES DOUBTS OVER THE CANDIDACY.
LET'S START WITH HOW POORLY

BIDEN IS PERCEIVED TO HAVE PERFORMED RELATIVE TO TRUMP IN THAT DEBATE. KAILEY: INCREDIBLY POORLY. LAWMAKERS, POLITICAL STRATEGISTS, SAYING THAT THIS MORNING JOE BIDEN, AN 81-YEAR-OLD, SHOWED HE IS AN OCTOGENARIAN PRESIDENT. THE WHITE HOUSE HAS SAID HE WAS BATTLING A COLD WHEN HIS VOICE WAS RASPY. AT ONE POINT, HE SAID THAT HE BEAT MEDICARE, NOT ADEQUATELY ARTICULATING HIS OWN POLICY, WHICH GAVE TRUMP OPPORTUNITIES TO ATTACK. DONALD TRUMP SEEMED MORE ENERGETIC, FOCUSED, UNCHARACTERISTICALLY SO. WORKING WITHIN THE FORMAT OF THIS DEBATE, WHICH WAS MICS CUT OFF, LACK OF A LIVE STUDIO

AUDIENCE, THINGS THAT WERE
THOUGHT TO HELP BIDEN MORE. THEY ACTUALLY TURNED OUT TO BE
ADVANTAGEOUS TO DONALD TRUMP. THAT SAID, DONALD TRUMP LIED
REPEATEDLY ON THINGS LIKE STATISTICS, LIKE THE LOWEST
BLACK UNEMPLOYMENT RATE. THAT HAPPENED DURING THE BIDEN
ADMINISTRATION. HE SAID THAT TARIFFS WOULD NOT
CAUSE HIGHER INFLATION, SOMETHING ALMOST EVERY
ECONOMIST WE SPEAK TO WOULD DISPUTE.
HE INSISTED HE DID NOT SAY THINGS HE HAS SAID ON TAPE
ABOUT THE OUTCOME OF THE ELECTION.
HE WAS NOT FACT CHECKED BY MODERATORS.
JOE BIDEN WAS STRUGGLING TO FACT CHECK HIMSELF AND
REPEATEDLY CALLED HIM OUT FOR LYING SEVERAL TIMES.
HE COULD NOT ARTICULATE WHAT

THE TRUTH OF THE MATTER WAS.
IT WAS A DIFFICULT NIGHT FOR JOE BIDEN.
THERE IS A LOT OF TALK IN WASHINGTON, INCLUDING WITHIN
THE AQUATIC PARTY, AS TO WHETHER HE CAN GO FORWARD AS
THE NOMINEE. ED: THE PLACEMENT OF THE DEBATE AS
WELL AS THE WORDS JOE BIDEN ON GOOGLE TRENDS IS INTERESTING.
UNSURPRISINGLY, ALL OF THE NAMES INVOLVED ARE TRENDING ON
THE PLATFORM FORMERLY KNOWN AS TWITTER.
WE HAVE WOKEN TO A WORLD THIS MORNING PERHAPS DIFFERENT TO
WHAT WE EXPECTED. WE ARE DEBATING PRESIDENT
TRUMP' AS CANDIDACY AND WHAT MIGHT HAPPEN NEXT.
IT IS A LONG WAY TO GO TO THE NEXT DEBATE IN SEPTEMBER.
WHAT ARE YOU HEARING IN WASHINGTON, D.C.? KAILEY:
THERE IS AN IDEA, CONSIDERING

THIS WAS A VERY EARLY DEBATE --
IT HAPPENED IN JUNE BEFORE TRUMP OR BIDEN ARE OFFICIALLY
THE NOMINEES. THEY ARE STILL PRESUMPTIVE NOMINEES.
THERE ARE QUESTIONS ABOUT WHETHER THERE MIGHT BE AN OPEN
CONVENTION. THAT IS A DECISION ONLY
PRESIDENT BIDEN IS ABLE TO MAKE. THE DELEGATES PLEDGED TO HIM
HAVE TO REMAIN SO UNLESS HE DECIDES TO DROP OUT OF THE RACE
AND ALLOWS THEM TO CAST THEIR VOTES FOR SOMEONE ELSE.
THAT IS A DECISION THAT THE PRESIDENT AND THOSE CLOSE TO
HIM, INCLUDING JILL BIDEN, WILL HAVE TO MAKE.
THAT IS A CONVERSATION HAPPENING IN WASHINGTON.
A NUMBER IN THE SPIN ROOM FOR THE BIDEN CAMPAIGN THOUGHT THIS
COULD BE SOMEONE WHO WAS THE

NOMINEE INSTEAD OF HIM --
GOVERNOR NEWSOM, WHO WAS SWARMED AFTER THE DEBATE.
HE SAID JOE BIDEN IS GOING TO BE THE NOMINEE.
OTHER POTENTIALS LIKE GRETCHEN WHITMER SAID THE SAME WITHIN
THE LAST 24 HOURS. IT IS A DIFFICULTY THE
DEMOCRATIC PARTY AT-LARGE IS FACING AS DONALD TRUMP DOES
SEEM TO BE EVEN FURTHER AHEAD IN THIS RACE. ED: WHAT I SEE ON SOCIAL MEDIA
BEYOND THE MEMES AND ENDLESS CLIPS IS A FRUSTRATION FROM
AMERICAN VOTERS THAT THEY DID NOT LEARN ANYTHING.
THERE WAS NO ANSWER TO MANY OF THE QUESTIONS POSED. THIS IS GOING INTO A
PRESIDENTIAL CAMPAIGN. KAILEY: FREQUENTLY, THEY DID NOT ANSWER
THE QUESTIONS DIRECTED AT THEM

AND CHANGE TO ENTIRELY DIFFERENT SUBJECTS. YOU SAW SOCIAL MEDIA IN A TIZZY.
DEMOCRATS EXPRESSING DESPERATION WITH THE
PERFORMANCE OF JOE BIDEN. THIS CALLS INTO QUESTION HOW
THE U.S. ENDED UP WITH THESE TWO AS
CANDIDATES. WE KNOW THAT VOTERS ARE UNHAPPY.
THEY ARE HOPING FOR ANY OTHER CHOICE. IT IS WHY YOU ARE
SEEING THIRD PARTY CANDIDATES LIKE RFK JUNIOR.
THERE IS A LOT OF FRUSTRATION. VOTERS HEARING ABOUT ISSUES
THAT WE HEARD THAT JOE BIDEN WAS PLANNING TO HIT ON, LIKE
ABORTION -- AT ONE POINT, TALKING ABOUT ABORTION SPIRALED
INTO A STORY ABOUT IMMIGRATION AND A WOMAN WHO WAS MURDERED,
AND IT GOT VERY CONFUSING AT

TIMES.
IT WAS DIFFICULT FOR POLICY TO BREAK THROUGH FOR EITHER OF
THESE CANDIDATES. DONALD TRUMP WAS ASKED
REPEATEDLY IF HE WOULD ACCEPT THE RESULT OF THIS ELECTION, NO
MATTER WHAT THE OUTCOME WAS. HE WOULD NOT GIVE A STRAIGHT
YES OR NO ANSWER. ED: THAT IS KAILEY LEINZ OUT OF
WASHINGTON, D.C. GREAT TO HAVE WITH YOU AFTER A
LATE NIGHT FOR YOU. A SURPRISE FOR MANY AS THE
WORLD WOKE UP THIS MORNING. WE WILL KEEP THE CONVERSATION
GOING, BECAUSE WE WILL BE JOINED BY VIVEK RAMASWAMY FOR
HIS TAKE. THE VIC RAMASWAMY IS CLOSE TO
THE TRUMP TEAM, AND ADVISING ON SOME AREAS OF TECHNOLOGY.
THIS IS BLOOMBERG TECHNOLOGY.

ED: LET'S BREAK DOWN THE
PRESIDENTIAL DEBATE FROM LAST NIGHT WITH VIVEK RAMASWAMY.
HE JOINS ME NOW FROM ATLANTA. GOOD MORNING TO YOU.
WE ARE A TECHNOLOGY SHOW. I HAVE WANTED TO ASK YOU TO
COME ON FOLLOWING THE DEBATE BECAUSE OF YOUR BACKGROUND,
BECAUSE OF THE REPORTING OF YOUR RELATIONSHIP WITH FORMER
PRESIDENT TRUMP AND THE TRUMP CAMPAIGN TEAM.
WE SHOULD TALK ABOUT LAST NIGHT. THE FLOOR IS YOURS.
YOUR REACTION TO THAT DEBATE? VIVEK:
I WAS IN ATLANTA LAST NIGHT. I AM BACK TO MY HOME IN
COLUMBUS TODAY. THIS WAS SAID FOR THE UNITED
STATES OF AMERICA, TO SEE THE CURRENT PRESIDENT, JOE BIDEN,
AND THE MENTAL STATE THAT HE IS ACTUALLY IN.
IT WAS A LOT OF JOKE TALKING

ABOUT DRUG TESTING.
HE LOOKED LIKE HE HAD A LOBOTOMY. THAT IS A SAD THING. WHEN YOU THINK ABOUT THE
COUNTRY WITH LEADERS LEADING COMPANIES IN THE PRIVATE
SECTOR, TO SEE THE PERSON WHO IS LEADING THE FEDERAL
GOVERNMENT BE AS HE WAS YESTERDAY IS REALLY AN
INDICTMENT OF THE MODERN DEMOCRATIC PARTY. ED:
MAY I JUMP IN? IT IS INTERESTING THAT YOU RAN
AS A PRESIDENTIAL CANDIDATE FOR THE REPUBLICAN PARTY. YOU ARE REPRESENTING FORMER
PRESIDENT TRUMP, BUT YOU STARTED SPEAKING ABOUT PRESIDENT
BIDEN'S PERFORMANCE. MANY FRUSTRATED THAT WE DID NOT
HEAR ANY ANSWERS TO THE QUESTIONS POSED FORMER
PRESIDENT TRUMP ABOUT WHAT HE WOULD DO IF REELECTED, WHAT
SOME OF HIS POLICY PLATFORMS

WERE.
WHAT DID YOU LEARN ABOUT WHAT FORMER PRESIDENT TRUMP MIGHT
DO, WERE HE TO BE REELECTED TO THE WHITE HOUSE? VIVEK:
I THINK THE NUMBER ONE MOST SALIENT THING ABOUT THE DEBATE
WAS THE SURPRISE OF BIDEN'S PERFORMANCE, WHICH IS WHY I
COMMENTED ON IT IN RESPONSE TO YOUR QUESTION.
I AGREE. IT IS MORE IMPORTANT TO TALK ABOUT THE POLICY VISION OF
WHO IS LIKELY TO BE THE NEXT PRESIDENT, WHO IS DONALD TRUMP.
HE TALKED ABOUT THE REVIVAL OF AMERICAN SUCCESS.
THE FACT OF THE MATTER IS PRESIDENT TRUMP DEMONSTRATED
THAT DESPITE BEING A MEMBER OF A DIFFERENT ECONOMIC CLASS THAN
MOST AMERICANS, AS A BILLIONAIRE, HE IS STILL
SOMEONE WHO UNDERSTANDS THAT PRICES HAVE GONE UP, WHAT WAGES
HAVE REMAINED FLAT.

THINK THAT PART REALLY LANDED.
I WISH THE DEBATE HAD GONE INTO GREATER DEPTH ON POLICY. IF BIDEN HAD SHOWN UP WITH
GREATER MENTAL ACUITY, HE MIGHT HAVE HAD THAT OPPORTUNITY.
THAT STOPPED THE DEBATE FROM BEING AS USEFUL AS IT COULD.
WHAT WE LEARN FROM THIS AND THE COMMON NATION OF SPEECHES THAT
PRESIDENT TRUMP HAS GIVEN -- ECONOMIC GROWTH IS A CORE
OBJECTIVE. THAT IS NOT A LEFT OR RIGHT
LEANING MESSAGE. ECONOMIC GROWTH IS A WORTHY
OBJECTIVE, FROM BRINGING DOWN THE TAX INTO DRILLING FOR OIL
AND NATURAL GAS AND INCREASING THE SUPPLY OF ENERGY TO BRING
DOWN COSTS. THOSE ARE CORE ISSUES THAT I
THINK MATTER NOT ONLY TO BUSINESS OWNERS AND
ECONOMICALLY MINDED VOTERS

IT MATTERS TO ALL VOTERS,
THAT WAS ONE OF THE MORE POWERFUL THINGS THAT CAME OUT
OF LAST NIGHT. WAS A DISCUSSION OF THE ECONOMIC VISION FOR THE
LAST FOUR YEARS. ED: MAY I POINT OUT WHAT YOU SENT
ON PRICES AND WAGE INFLATION? IS THAT PRICES HAVE GONE UP, BUT
WAGES HAVE REMAINED FLAT. THAT IS NO LONGER TRUE.
WE SAW INFLATION IN MAY DOWN FRACTIONALLY,
BUT WAGES WERE UP 0.7%. I JUST WANT TO GET THE LATEST
DATA OUT THERE. VIVEK: LET ME COMMENT IN DIRECT
RESPONSE TO YOU. YOU ARE A NUMBERS GUY.
I LIKE THAT. AS I BELIEVE YOU WELL KNOW,
INFLATION IS CUMULATIVE. THAT IS THE INFLATION RATE.
BUT INFLATION OVER THE COURSE OF THE LAST SEVERAL YEARS,
LOOKING AT MANY CONSUMER GOODS.

AND PRODUCTS WERE UP MORE THAN 50% SINCE THE TIME BIDEN TOOK OFFICE. HOW MUCH DOES A CARTON OF EGGS COST? HOW MUCH IS YOUR ELECTRIC BILL? THOSE ARE HIGHER THAN WHEN JOE BIDEN TOOK OFFICE. WAGES HAVE NOT GONE UP AT THE SAME RATE. I DON'T WANT TO PLAY VERBAL JIU-JITSU OVER LAST MONTH'S NUMBERS. THOSE ARE IN DISPUTE WILL FACTS. MOST AMERICANS WHO PAY THOSE BILLS ALREADY HAVE AN UNDERSTANDING OF THAT. I THINK THAT WILL BE A GUIDING FORCE. ED: YOU AND I BOTH AGREE ON ONE THING, WHICH IS ABOUT TECHNOLOGY AND POLICY BEING INTERESTING. YOU MENTION TECHNOLOGY AND OIL. ONE OF THE THINGS I REPORTED IS THAT YOU ACTED AS ALMOST AN INTERMEDIARY BOTH BETWEEN FORMER PRESIDENT TRUMP AND ELON

MUSK.
IT SEEMS AS THOUGH THE FORMER PRESIDENT AND ELON MUSK
SPEAKING OR HAVE SPOKEN. WHERE DO YOU SEE THEM FINDING
MIDDLE GROUND IF PRESIDENT TRUMP WERE TO RETURN TO THE
WHITE HOUSE? VIVEK: I RESPECT THE TWO OF THEM
INDIVIDUALLY AS PEOPLE WHO HAVE SUCCEEDED IN THIS COUNTRY
THROUGH THE PRIVATE SECTOR. I THINK WE ALL SHARE A BELIEF
THAT WE NEED MORE OF THOSE VOICES IN AMERICAN POLITICS,
DRIVING CHANGE, NOT AS PROFESSIONAL POLITICIANS, BUT
PEOPLE WHO LOOK AT POLITICAL PROBLEMS THROUGH THE LENS OF AN
ENTREPRENEUR AND BUSINESS LEADER, OBJECTIVELY.
I THINK THAT IS A BASIS FOR THE FRIENDSHIP WITH BOTH OF THEM.
THE REALITY IS ONE OF THE THINGS WE ARE ALL ROOTING FOR
IS NOT ONLY ECONOMIC

REVITALIZATION OF THE U.S., BUT
A REVITALIZATION OF INNOVATION IN THE UNITED STATES OF AMERICA.
I THINK WE HAVE SEEN A DECLINE IN THE RATE OF INNOVATION IN
THE U.S. THAT IS ULTIMATELY OUR COMPETITIVE ADVANTAGE IN THE
END, IS THE INNOVATIVE SPARK OF STARTING THE GREATEST COMPANIES
KNOWN TO MANKIND, GENERALLY HERE IN THE UNITED STATES.
THAT HAS BENEFITS OF CREATING JOBS AND CREATING WEALTH, BUT
IT IS ALSO THE FOUNDING SPARK OF AMERICAN EXCEPTIONALISM.
OUR FOUNDING FATHERS WERE THE LIKES OF THOMAS JEFFERSON, NOT
ONLY WROTE THE DECLARATION OF INDEPENDENCE -- HE INVENTED THE
SWIVEL CHAIR AND THE POLYGRAPH TEST. REGIMENT FRANKLIN. I
THINK OF ELON MUSK AS A MODERN

GERMAN FRANKLIN, WHO INVENTED THE LIGHTNING ROD, IN THE FRANKLIN STOVE. THESE WERE ALSO PEOPLE WHO LED THE COUNTRY POLITICALLY AND SET IT INTO MOTION. I THINK WE HAVE A CHANCE TO REVIVE THAT 1776 KIND OF SPIRIT. I THINK THERE IS A ROLE FOR A MODERN WASHINGTON, A MODERN JEFFERSON, A MODERN BENJAMIN FRANKLIN. IN MANY WAYS, PRESIDENT TRUMP IS STEPPING UP TO BE THE MODERN GEORGE WASHINGTON. ELON MUSK REMINDS ME OF BENJAMIN FRANKLIN. WE FOUND COMMON CAUSE IN OUR LOVE OF THIS COUNTRY TO REVITALIZE THIS FOUNDING SPIRIT, EVEN THOUGH EACH OF US HAVE HAD OUR OWN SUCCESSES SEPARATELY IN THE PRIVATE SECTOR. I AM BIASED.

I HAVE A VIEW THAT WE NEED MORE OF THOSE PEOPLE STEPPING UP AND DEFINING THE FUTURE OF OUR POLITICS. ED: CAN I ASK VERY QUICKLY AS A MATTER OF CHECKING -- HAVE YOU SPOKEN TO THE FORMER PRESIDENT SINCE LAST NIGHT? VIVEK: I HAVE NOT SPOKEN TO HIM SINCE LAST NIGHT, NO. ED: THE REASON I ASK IS ABOUT YOUR ROLE WITH HIM, HIM DIRECTLY AND ALSO HIS TEAM. ONE OF THE AREAS OF REPORTING FOCUS HAS BEEN DISCUSSIONS YOU MAY HAVE HAD WITH HIM AROUND CRYPTO AND THE ROLE CRYPTO MAY PLAY IF FORMER PRESIDENT TRUMP RETURNS TO THE WHITE HOUSE. CAN YOU TELL ME A BIT ABOUT THAT AND THE CONVERSATIONS YOU HAVE HAD? VIVEK: THAT STARTED AFTER I LEFT THE RACE.

I LEFT THE RACE AFTER THE IOWA
CAUCUS AND BEFORE THE NEW HAMPSHIRE PRIMARY. IN NEW HAMPSHIRE, I BEGAN MY
CONVERSATIONS WITH DONALD TRUMP ABOUT WHY IN MY CAMPAIGN I HAD
BEEN OPPOSED TO A CENTRAL-BANK DIGITAL CURRENCY.
IN ONE OF THE THINGS THAT IMPRESSED ME ABOUT PRESIDENT
TRUMP WAS HIS INTELLECTUAL CURIOSITY ABOUT THAT ISSUE.
I HAVE MET A LOT OF POLITICIANS, INCLUDING
REPUBLICANS, WHO DO NOT KNOW THE FIRST THING ABOUT WHAT IT
ACTUALLY MEANS. BUT THEY PRETEND LIKE THEY DO.
DONALD TRUMP WAS THE OPPOSITE OF THAT. HE SAID, WHAT IS THAT?
AND ONE OF THE BEST ARGUMENT FOR WHY THEY ARE SUPPORTING IT
-- I THOUGHT THAT WAS THE MARK OF A GOOD LEADER WHO WANTED TO
UNDERSTAND THE BEST ARGUMENTS

FOR THE OTHER SIDE.
LATER ON, HE SAID FROM THE CAMPAIGN STAGE AT AN EVENT -- I
FEEL COMFORTABLE SHARING IT. AFTER CAREFUL CONSIDERATION
AND STUDY OF THE ISSUE, HE CAME OUT WITH HIS OPPOSITION TO A
CENTRAL-BANK DIGITAL CURRENCY, AND HE EXPLAINED WHY.
THE FLIPSIDE IS WHAT YOU MIGHT FAVOR DECENTRALIZATION AND
ALTERNATIVE OPTIONS FROM PEOPLE JUST STAYING TETHERED TO THE
DOLLAR, OF THE FED ACCOUNTABLE, HAVING OTHER OPTIONS IN THE
MARKETPLACE OF ALTERNATIVE CURRENCIES.
THERE HAVE BEEN A NUMBER OF PRODUCTIVE CONVERSATIONS HE AND
I HAVE HAD. ONE OF THE THINGS I LOOK AT
THIS FOR -- I DO NOT LOOK AT CRYPTOCURRENCY AS A SECTOR.
I LOOK AT THE FIRST PRINCIPLES OF THE UNITED STATES OF
AMERICA, FOUNDED ON COMPETITION.

AND CHOICE AND FINANCIAL
FREEDOM. I THINK THOSE PRINCIPLES ARE
WHAT MOTIVATED MY INTEREST IN THESE ISSUES IN THE CAMPAIGN.
I THINK THAT IS ALSO WHAT HELPED A LOT OF MY CONVERSATION
WITH PRESIDENT TRUMP. LET US LOOK AT WHAT IS RIGHT
FOR AMERICA, NOT ONE SECTOR OR ANOTHER.
I LOOKED AT THE KINDS OF POLICIES THAT ALLOW AMERICA TO
REMAIN THE BEACHHEAD OF INNOVATION, RATHER THAN PLAYING
FROM BEHIND. ED: ONE ITEM ON THE IDEA THE
PRESIDENT HAS THE ABILITY TO BLOCK ANYONE FROM DOING CBDC
--THE FED HAS SAID MANY TIMES IT IS NOT GOING TO INTRODUCE
ONE UNLESS MANDATED BY CONGRESS. THAT IS THE FED'S POSITION ON
THAT. I WANT TO TALK TO YOU ABOUT
ARTIFICIAL -- VIVEK:

CLOSING ON THAT, THERE IS ADVOCACY, AND THE EXECUTIVE BRANCH SPONSORS LEGISLATION THAT GOES TO CONGRESS. THAT IS HOW THINGS WORK IN WASHINGTON, D.C. IT IS CLEAR ABOUT THE POSITION, AND DONALD TRUMP ADOPTED THE RIGHT POSITION. ED: I WOULD LIKE TO TALK ABOUT ARTIFICIAL INTELLIGENCE, AND I APPRECIATE THAT THIS WAS NOT A QUESTION POST LAST NIGHT. AT ANY OF THE POLICY QUESTIONS POSED WERE NOT REALLY ANSWERED BY EITHER PARTY. WHEN FORMER PRESIDENT TRUMP WAS IN OFFICE, WE WERE NOT TALKING ABOUT THE IDEA OF AN EXISTENTIAL THREAT FROM A LARGE LANGUAGE MODEL AND HUNDREDS OF PARAMETERS. WE WERE NOT TALKING ABOUT THE NEED TO REGULATE AI. FORMER PRESIDENT TRUMP DOES NOT HAVE THE EXPERIENCE OF THAT.

DO YOU THINK HE HAS THE ACADEMIC STUDY? GOING INTO OFFICE, IF HE WERE TO REGAIN THE WHITE HOUSE, IT WOULD BE AN ISSUE TO CONSIDER. VIVEK: I DO WISH THIS HAD BEEN A TOPIC AT THAT DEBATE AND EVEN THE REPUBLICAN PRIMARY DEBATES, WHERE THIS ISSUE DID NOT COME UP. IT FALLS OUTSIDE OF TRADITIONAL BOUNDARIES. HIS PRESIDENT TRUMP GOING TO CLAIM TO BE A DOMAIN EXPERT? NO, AND THAT IS WHAT I LOVE ABOUT HIM. I THINK HE IS GOING TO BE ABLE TO SET RATIONAL POLICY THAT ALLOWS THE U.S. TO BE A LEADER IN INNOVATION. AT THE SAME TIME, IT ACKNOWLEDGES A DIFFERENT RISK FROM DIFFERENT TYPES OF GENERATIVE AI. ONE OF THE THINGS THAT MAKES A LOT OF SENSE AS A FIRST STEP--

RATHER THAN SOME CENTRAL
GOVERNMENT BUREAUCRACY, TREATED THE SAME WAY YOU TREAT OTHER
SECTORS. IN THE SAME WAY, YOU ARE A
CHEMICALS MANUFACTURER AND CANNOT DUMP SOMEONE ELSE'S
RIVER -- IF YOU ARE THE DEVELOPER OF AN ALGORITHM THAT
HAS UNPREDICTABLE NEGATIVE EFFECTS, YOU ARE LIABLE FOR
THOSE EFFECTS. A SICK PRINCIPLES OF THE LAW WE
ALREADY USE ELSEWHERE -- BASIC PRINCIPLES OF THE LAW WE
ALREADY USE ELSEWHERE, USED IN THIS NEW DOMAIN.
THIS IS THE SAME QUESTION THAT CAME UP THE LAST TIME WE
DISCUSSED THIS. I HAVE SEEN IN PRESIDENT TRUMP
INTELLECTUAL CURIOSITY. SOMEONE WHO HAS BEEN AN
EXECUTIVE. SOMEONE WHO IS STILL INTELLECTUALLY WITH IT ENOUGH
TO GO DEEP ON THE DETAILS.

ATTRACT THE BEST PEOPLE AND MAKE THE RATIONAL POLICY DECISION, NOT THE IDEOLOGUE. WHEN IT COMES TO AI, BUT UNDERSTANDING OF THE FACTS -- I DO HAVE CONFIDENCE IN HIS ABILITY. ED: WE HAVE A SHORT TIME, AND I WANT TO MAKE THE MOST OF IT. HAVE YOU BEEN ASKED TO SUBMIT DOCUMENTATION FOR VETTING FOR A POTENTIAL CANDIDATE POSITION IN THE EVENT OF A TRUMP WHITE HOUSE? VIVEK: WE HAD A LOT OF CONVERSATIONS ABOUT THE FUTURE. I HAVE NOT BEEN ASKED TO BE THE VICE PRESIDENT. NEVER IT IS, I'M GOING TO LOOK AT THE NEXT IMPACT OF THE COUNTRY, MAKING SURE THE TERM IS THE BEST IT POSSIBLY CAN BE. I'M SURE WE ARE GOING TO SEE THE STRONGEST TICKET NOT JUST OF THE CENTURY, THAT OF MY

LIFETIME.
HAVE A UNIQUE OPPORTUNITY IN THIS COUNTRY.
WE HAVE HAD A LOT OF THIN ICE ELECTIONS.
THIS COULD BE A REAGAN IN 1984 STYLE LANDSLIDE. MINORITIES, HISPANICS, BLACKS,
YOUNG PEOPLE, READING A NEW COALITION IN THIS COUNTRY THAT
IS PRO-AMERICAN AND GOES BEYOND THE BOUNDARIES OF THE
TRADITIONAL REPUBLICAN PARTY. THAT IS WHAT I AM ROOTING FOR.
ED: I AM OUT OF TIME. I NEED TO ASK YOU ABOUT
BUZZFEED, BUT ALSO THE IDEA -- I AM TOLD OF YOUR INTEREST IN A
MEDIA COMPANY. THIS HAS BEEN REPORTED, YOUR
STATEMENT. WHAT DO WE NEED TO DO? VIVEK:
I AM THE SECOND LARGEST CLASS A SHAREHOLDER AT BUZZFEED.
THIS IS A COMPANY THAT STRUGGLED AND FAILED FOR
REASONS I STILL THINK ARE

FIXABLE.
PEOPLE DO NOT KNOW WHAT THE BRAND STANDS FOR.
I THINK THEY HAVE A HISTORIC OPPORTUNITY TO DO WHAT MANY IN
THE MAINSTREAM MEDIA HAVE AN OPPORTUNITY TO DO -- ILL A
BRAND CENTERED ON TRUST AND THE PURSUIT OF TRUTH.
WE ARE A PLATFORM FOR ALL VOICES -- IT DOESN'T MATTER,
ACROSS THE CULTURAL SPECTRUM. USE THAT TO DEFINE A COHERENT
AND POWERFUL BRAND THAT I THINK AUDIENCES ARE HUNGRY FOR.
ESPECIALLY YOUNGER AUDIENCES TODAY THAT ARE SICK AND TIRED
OF YESTERDAY'S LEGACY MEDIA. THEY WANT TO TRUST CONTENT
READERS. I HAVE GIVEN THEM A CONTEXT OF
THE LETTER I SENT TO THE BOARD. I ALSO PROPOSED TO JOIN THE
BOARD WITH A STRATEGY THAT I HOPE WILL CREATE THE VALUE.

ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M ED LUDLOW. IN AN INTERESTING POSITION UP FOR A FIFTH STRAIGHT DAY, RECOVERING UNDER THE RADAR. IT IS A NAME WE HAVE HAD CONCERN ABOUT WITH REGARDS TO VALUATION. WE HAVE DEBATED WHETHER THE AR STRATEGY WITH APPLE IS UNDERSTOOD BY INVESTORS OR IF THEY HAVE GIVEN THE STOCK TOO MUCH CREDIT ABOUT AI OR TOO LITTLE. WHAT IS DRIVING TRADING IS DATA AROUND CHINA THAT JUST SHIPMENTS UP 40% IN MAY, CONTINUING SHORT-TERM RECOVERY AFTER A TOUGH FIRST THREE MONTHS OF THE YEAR WHERE SALES WEREN'T GREAT AND DOMESTIC HEADSET MAKERS WERE TAKING MARKET SHARE. WE ENTERED A TIME OF YEAR IN CHINA THAT'S THE KEY MARKET FOR ALL ELECTRONICS PROVIDERS

MAKERS WHERE THEY DID A LOT OF
DISCOUNTING. SPECIAL HOLIDAY SALES AND
THINGS LIKE THAT. THE STOCK, INTERESTING, OVER A
FIVE-DAY BASIS, ITS LONGEST STREAK SINCE JUNE 8, THE END OF
AN EIGHT-DAY WINNING STREAK. IT IS ON THE VERGE OF RETAKING
THE CROWN OF WORLD'S MOST VALUABLE COMPANY THAT IT LOST
TO MICROSOFT AND BRIEFLY NVIDIA. LET'S BRING IN BLOOMBERG'S MARK
GURMAN, THE PERFECT CORRESPONDENT.
IT IS OFFICIAL DATA WE HAVE CRUNCHED THE NUMBERS ON.
I AM TRYING TO EXTRAPOLATE A STORY OUT OF IT.
IS IT A RECOVERY? MARK: DEFINITELY.
THE FIRST COUPLE MONTHS OF 2024 YOU SAW IPHONE SHIPMENTS
DECLINED SIGNIFICANTLY IN CHINA.

AROUND SPRINGTIME, INTERESTING
THINGS HAPPENED. APPLE STARTED OFFERING
PROMOTIONS ON HIGHER-END IPHONE MODELS, AND RETAIL CHANNELS FOR
IPHONES ONLINE STARTED OFFERING DISCOUNTS.
THERE ARE SEVERAL SHOPPING HOLIDAYS IN CHINA THAT OFFER
DISCOUNTS FOR NOT ONLY THE IPHONE BUT SEVERAL DIFFERENT
PRODUCTS. YOU HAVE SEEN AN UPTICK IN
SALES. BASED ON DATA OFFICIALLY FROM
CHINA, YOU SAW 40% GROWTH IN THE LAST MONTH OR SO, QUITE
SIGNIFICANT FOR APPLE. THE SMARTPHONE MARKET IS
GROWING STRONGLY IN CHINA RIGHT NOW. IT'S NOT JUST APPLE. IT IS WOBBLY AND OTHER CHINESE
PHONE MAKERS. APPLE WAS THAT CHINA WAS A REAL
CONCERN FOR INVESTORS IN APPLE EARLIER THIS YEAR AND LAST YEAR,
AND WITH THE SALES UPTICK, THOSE

CONCERNS ARE BEING MITIGATED.
IT'S HAPPENING AT A GREAT TIME FOR APPLE. SUMMERS ARE USUALLY THE SLOW
SEASON FOR IPHONE SALES, GIVEN IN ANTICIPATION OF NEW MODELS
IN SEPTEMBER. YOU ARE SEEING A STRONG UPTICK
IN THE CURRENT IPHONES IN THE MONTHS LEADING TO THE NEXT
IPHONES. THEN YOU WILL GET ANOTHER BIG
PUSH COME SEPTEMBER AND OCTOBER WHEN THE NEW IPHONES ROLLOUT.
RIGHT NOW THINGS IN CHINA FOR APPLE IN TERMS OF THE IPHONE
ARE AS GOOD AS THEY HAVE BEEN IN SEVERAL MONTHS. ED: LET'S TALK ABOUT THE BIG
PICTURE STRATEGY IN CHINA. YOU REPORTED JUNE 21 APPLE WAS
HALTING ITS AI ROLLOUT IN EUROPE BECAUSE IT WAS CONCERNED
ABOUT THE REGULATORY

ENVIRONMENT THERE.
BY COMPARISON, DO WE HAVE A GOOD SENSE OF WHAT THE AI
ROLLOUT WILL BE IN CHINA, AND WHETHER IT MIRRORS WHAT THEY
PLAN TO DO IN THE U.S.? MARK: AS YOU KNOW, THERE ARE THREE
FACETS TO APPLE INTELLIGENCE. THERE IS AN ON-DEVICE LARGE
LANGUAGE MODEL FOR MINOR TASKS LIKE NOTIFICATION AND
PRIORITIZATION. THERE'S A CLOUD COMPONENT THAT
IS ALSO RUN THROUGH APPLE FOR MORE ADVANCED THINGS LIKE
WRITING TOOLS, SUMMARIZING INFORMATION. THEN THE THIRD IS THE CHATBOT,
THE FEATURE THAT WILL BE MOST EXCITING TO A LOT OF PEOPLE.
IN THE U.S., YOU GET OPENAI AS A PARTNER, BUT
IN CHINA, YOU WILL NEED ANOTHER PARTNER.
IF THEY HAVE TALKED TO ALIBABA AND SOME OTHERS.
BUT THEY DON'T HAVE AN

AGREEMENT IN PLACE THERE, AND UNTIL THEY CAN GET AN AGREEMENT FOR THIRD-PARTY CHATBOT INTEGRATION, THEY WON'T BE ABLE TO ROLLOUT APPLE INTELLIGENCE IN A MEANINGFUL WAY. I WOULD EXPECT THAT TO COME TOGETHER SOMETIME BY THE MIDDLE OF NEXT YEAR. ED: APPLE HAS RAISED ITS FRIDAY GAIN AND IS FLAT BUT UP ON THE WEEK. COMING UP ON BLOOMBERG, WE ARE JOINED BY ALLIE LOVE TO DISCUSS THE TECHNOLOGY AT M&A MARKET. TAKING A SHORT BREAK, THIS IS BLOOMBERG TECHNOLOGY. CHECK OUT OUR PODCAST+ ON THE TERMINAL END ONLINE. THIS IS BLOOMBERG. ED: THE FORD -- FIRM KLEINER PERKINS ANNOUNCED TODAY RAISED MORE THAN $2 BILLION FOR TWO

NEW FUNDS.
THE FIRST $825 MILLION DOLLARS FUND WILL TARGET YOUNG STARTUPS.
THAT ANOTHER $1.2 BILLION FUND WILL BE ALLOCATED TOWARDS A LATER STAGE FUND. KLEINER PERKINS WILL LOOK FOR STARTUPS LEVERAGING AI FOR GROWTH.
NOW LET'S LOOK AT THE STATE OF THE TECH M&A MARKET. ALY LOVE FROM PLIMPTON JOINS US FOR MORE. IT'S BEEN AN INTERESTING FEW WEEKS IN THE WORLD OF M&A. WHEN I SPEAK TO VENTURE CAPITALISTS, THEY MIGHT BE MORE UPBEAT THAT SOME OF THEIR LATER STAGE VENTURE-BACKED COMPANIES ARE MORE LIKELY TO BE ACQUIRED THAN GO PUBLIC. THERE IS ENERGY THERE. IS THAT SOMETHING YOU SEE FROM YOUR DESK? ALY: THAT'S EXACTLY RIGHT.

THERE IS A LOT OF OPTIMISM IN
THE MARKET RIGHT NOW. WHEN YOU LOOK AT THE LAST
THREE-FOUR YEARS, THERE WAS A MASSIVE UPTICK IN 2021 AND
2022 THAT DROPPED OFF PRECIPITOUSLY, WITH VALUES
DROPPING IN THE END OF 2022 AND ALL OF 2023, AND TO SOME EXTENT
THE BEGINNING OF THIS YEAR. WE HAVE THREE MAJOR GROUPS OF
ACQUIRERS THAT WOULD ACQUIRE VENTURE-BACKED TECHNOLOGY
COMPANIES: PRIVATE EQUITY, TRADITIONAL
TECHNOLOGY ACQUIRERS, AND WHAT I REFER TO AS NONTRADITIONAL
TECHNOLOGY ACQUIRERS (OLDER INDUSTRIES). LOOKING AT PRIVATE EQUITY, THE
RISE IN INTEREST RATES MADE THEM NERVOUS.
GOING BACK IN HISTORY, PRIVATE EQUITY IS USED TO OPERATING AT
DOUBLE-DIGIT INTEREST RATES.

HAVE THEY DUSTED OFF THE OLD PLAYBOOK? REMINDED THEMSELVES, HOW DO WE DO THIS AGAIN? ABSOLUTELY. THEY HAVE BECOME INCREASINGLY ACTIVE IN THE FIRST TWO QUARTERS OF THIS YEAR. A LOT OF TRADITIONAL TECH ACQUIRERS SAT OUT THE FIRST COUPLE OF YEARS OF THE BOOM. THEY DID NOT WANT TO SPEND CASH AT THAT LEVEL. ED: I WANT TO JUMP IN AND ASK ABOUT THE MECHANICS OF IT, USING CASH. I, PARTICULARLY, UNDERSTAND THE PRIVATE EQUITY SIDE OF THE EQUATION. THERE IS ALSO A LITTLE BIT OF A PSYCHOLOGICAL SIDE TO ANY TRANSACTION. YOUR FIRM IS ON BOTH SIDES OF THE TABLE, BUYER AND SELLER. WHAT ARE THE ATTITUDES NOW TO SITTING DOWN AND HASHING OUT A DEAL? ALY:

ONE THING WE WORK WITH CLIENTS.
NOW A LOT ON IS BOTH FOR TRADITIONAL AND NONTRADITIONAL.
TECHNOLOGY ACQUIRERS, UNDERSTANDING THE MINDSET OF.
FOUNDERS AND BOARDS. THESE ARE COMPANIES THAT WERE.
TWO INDIVIDUALS IN A GARAGE THAT HAVE GROWN TO MULTIBILLION.
DOLLAR COMPANIES AND ALONG THE WAY UNDERPAID THEMSELVES.
THEY HAVE NOT BOUGHT HOUSES. THEY HAVEN'T GOTTEN MARRIED.
THEY HAVEN'T AND CHILDREN. THEY HAVE NOT GONE ON VACATION.
ANY BUYER THAT LOSES SIGHT OF THAT DOES NOT UNDERSTAND THE.
COMPANY THEY ARE BUYING. ED: SOMETHING INTERESTING IS.
HAPPENING IN NONTECHNOLOGY COMPANIES AS WELL.
THE IDEA THAT WORLD OF AI, AS.

WE JUST DISCUSSED THE NEW KLEINER PERKINS FUND. YOU HAVE TO HAVE SOME SORT OF AI TOOL. YOUR INVESTOR BASE, YOUR EMPLOYEES WON'T BELIEVE YOU OR THEY WILL LEAVE. I SEE THAT IN ALL SECTORS. OIL AND GAS, UTILITIES, EVEN CONSTRUCTION SAYING, WE HAD BETTER BUY A SOLUTION HERE. THAT MUST BE A BOON TO BUSINESS TO YOU. ALY: RIGHT. YOU HAVE TWO THINGS GOING ON. FIRST, SPEAKING SPECIFICALLY TO AI, IT'S A MISCHARACTERIZATION TO SAY THAT'S A LOT OF AI M&A ACTIVITY. THERE AREN'T ENOUGH AI PLATFORM COMPANIES. WERE THERE TO BE CONSOLIDATION. A LOT OF COMPANIES DO SOMETHING ELSE. THEY DO SUFFER SECURITY. MAYBE THEY ARE AN HR PLATFORM OR FINTECH COMPANY.

ARE THEY ADDING AI TO WHAT THEY
DO TO IMPROVE THEIR PRODUCTS? ABSOLUTELY.
THE PRODUCTS ARE GETTING FASTER, SMARTER, AND ARE MORE
ATTRACTIVE TO THEIR CUSTOMER BASE. BUT THEY AREN'T
FUNDAMENTAL AI PLATFORMS. ON THE FLIPSIDE, WE ARE SEEING A
LOT OF, AS YOU SAID, NONTRADITIONAL TECHNOLOGY
ACQUIRERS COME DEEPER INTO THE TECH SPACE.
ANOTHER AREA WHERE THEY ARE DOING THAT IS SEPARATE SECURITY.
AT THE BEGINNING OF THE PANDEMIC, EVERYBODY MIGHT
REMEMBER A MASSIVE PIPELINE HACK ON THE EASTERN SEABOARD.
IT WOKE UP OIL AND GAS COMPANIES TO SAY, WE HAVE NOT
INVESTED ENOUGH IN TECHNOLOGY, CYBERSECURITY, AND PROTECTING
INFRASTRUCTURE. A LOT OF COMPANIES, IN THEORY,
COULD BUILD CYBERSECURITY.

SOLUTIONS.
BUT SOME OLDER INDUSTRIES AREN'T EQUIPPED TO DO THAT. SO,
THEY GO BY THEM WHOLESALE. THEY BUY A COMPANY TO CREATE A
PRODUCT JUST FOR THEM. THAT IS WHAT A LOT OF
INDUSTRIES ARE DOING. IT COULD BE OIL AND GAS OR
AGRICULTURE. TO SOME EXTENT, BANKING IS
BEHIND THE BALL FOR SOME OF THESE TECHNOLOGIES. ED:
WHAT YOU JUST SAID ON CONSOLIDATION WAS VERY
INTERESTING. IT ALMOST CONTRADICTS WHAT WE
HAVE BEEN HEARING. WHAT I WROTE ABOUT A FEW WEEKS AGO. BASED ON COMMENTS FROM HOOKING
FACE, A PLATFORM THAT HOSTS LARGE OF -- LOTS OF LARGE
LANGUAGE MODELS PROVIDERS. SMALLER PLAYERS HAVE RUN OUT OF
CASH. IT'S AN EXPENSIVE ENTERPRISE.
YOU SEEM TO BE SAYING AT THE

PLATFORM LEVEL THAT IS NOT HAPPENING BECAUSE THERE AREN'T ENOUGH PLATFORM LEVEL PROVIDERS NOW. GIVE ME MORE ON THAT? ALY: TO BE CLEAR, THERE IS A TON OF INVESTMENT GOING INTO AI AND AR PLATFORM COMPANIES 100%, AND YOU SEE THAT WITH THE KLEINER PERKINS FUND THAT WAS JUST ANNOUNCED. BUT YOU AREN'T SEEING EXITS. THERE AREN'T ENOUGH COMPANIES TO BE CONSOLIDATION. ABSOLUTELY, THERE ARE SOME, NOT TO THE VOLUME YOU SEE IN OTHER SUBSECTORS OF TECHNOLOGY. ED: ALY, LOVE GREAT TO HAVE YOU ON THE PROGRAM. LET'S LISTEN IN ON THE FIELD OF CLIMATE TECHNOLOGY AND HOW AI CAN HELP. WE WILL BRING IN COHEAD OF VENTURES AT ENTERPRISE, A FIRM FOCUSED ON CLIMATE SOLUTIONS WITH $1.4 BILLION OF CAPITAL TO PLAY WITH.

FROM THE M&A PERSPECTIVE, I HAVE HAD THEMATICALLY SPECIALIZED VC'S. THE SHOW IN RECENT WEEKS AND MONTHS AND SAY PRETTY GOOD OUTLET FOR US. BECAUSE THEY EITHER PROVIDE A PRETTY CLEAR TECHNOLOGY PLATFORM TO A BIGGER BEAST IN THE ENERGY FIELD, FOR EXAMPLE. WHAT DID YOU MAKE OF HER COMMENTS? LIKE I SORT OF AGREE. I THINK WE ARE SEEING GROWING INTEREST FROM TRADITIONAL INDUSTRIAL COMPANIES LOOKING FOR DIGITAL TECHNOLOGIES AND POCKETS OF GROWTH. FRANKLY IN OUR SPACE, THE SOFTWARE MEETS CLIMATE INTERSECTION BRINGS BOTH DIGITAL TECHNOLOGIES AND GROWTH POCKETS THAT A LOT OF TRADITIONAL BUYERS ARE BRINGING. THE INTEREST IS NOT EXCLUSIVE TO AI COMPANIES. MAYBE IT IS CATALYZED. I AGREE A LOT OF AI SPECIFIC COMPANIES ARE EARLY IN THEIR

JOURNEY STILL. THERE IS NO DOUBT THAT TECH-
DRIVEN GROWTH IS ATTRACTIVE. COMPANIES ARE LOOKING FOR
PRODUCTS TO BUILD ON DEPLATFORMS AND TALENT.
NEXT GENERATION TO HELP THEM PULL FORWARD TO WHERE THE
TRANSITION IS ACTUALLY GOING. ED:
I DON'T THINK IT IS A SURPRISE TO OUR AUDIENCE THAT WE HAVE A
VENTURE CAPITALISTS SPECIALIZING IN ENERGY OR
CLIMATE TECHNOLOGY TALKING ABOUT AI. WE NEED TO UNDERSTAND HOW MUCH
IS HYPE AND HOW MUCH IS ACTUAL IMPACT.
I WAS A BATTERY AND TV REPORTER FOR A LONG TIME.
THERE ARE LOADS OF EXAMPLES WHERE SOFTWARE MAKES A VERY
FUNDAMENTAL DIFFERENCE. TAKE THAT AND GIVE ME CASE
STUDIES OF WHERE YOU ARE SEEING AI ABOUT YOUR PORTFOLIO
COMPANIES OR THE INDUSTRY AT

LARGE. >> YES, ABSOLUTELY.
I THINK AI IS ALREADY HAVING A BIG IMPACT IN OUR SPACE.
IN TWO PRIORITY WAYS. ONE, IT IS VERY COMPUTATIONALLY
INTENSIVE AND IT DEMANDS HUGE AMOUNTS OF POWER, ELECTRICITY
TO GIVE RISE TO THE COMPUTER. IT'S A HUGE STORAGE -- SEARCH
IN THE POWER LOAD OF OUR WORLD. ENERGY CONSUMPTION WILL GROW 7%
YEAR ON YEAR OVER THE NEXT SEVERAL YEARS, AND THAT IS A
HUGE DRAW FOR POWER. IT'S A HUGE DRAW FOR POTENTIAL
AI APPLICATIONS. AI APPLICATIONS. AR IS ENABLING A WIDE SET OF
OPPORTUNITIES TO ACCELERATE THE ENERGY TRANSITION.
WORKFLOW AUTOMATION CAN HELP REDUCE SOFT COSTS, OR GENERATIVE
TOOLS CAN HELP IMPROVE THE DEVELOPMENT AND DEPLOYMENT OF
RENEWABLE PROJECTS. FOR EXAMPLE, BATTERIES.
YOU MENTIONED THEM.

WE HAVE A COMPANY IN OUR PORTFOLIO THAT CAN USE AI ENGINES TO CALIBRATE HOW BATTERIES WILL AGE AND DEGRADE OVER TIME. SO, WE CAN BETTER PREDICT BATTERY BEHAVIOR. WE CAN BETTER PREDICT PERFORMANCE. WE CAN BETTER PREDICT DETAILED INSIGHTS INTO THE STATE OF CHARGE, CAPACITY, TO MAKE SURE WE CAN USE RESOURCES MORE EFFECTIVELY AND APPROPRIATELY AT SCALE. ED: I'M SURE YOU WATCHED THE PRESIDENTIAL DEBATE LAST NIGHT. INFRASTRUCTURE HAS BEEN AT THE HEART OF PRESIDENT BIDEN'S POLICY PLATFORM FOR THE LAST 3.5 YEARS. HOW HAS IT MANIFESTED IN THE REAL WORLD? FOR YOU AND THE AREAS YOU INVEST IN? JUAN: THE INFLATION REDUCTION ACT IS AN INFRASTRUCTURE BILL.

IT PULLED THE FUTURE FORWARD IN DIFFERENT WAYS. AT ENERGIZE, WE DON'T SEE A SHIFT IN POLITICAL POWER AS A PARTICULAR THREAT TO THE ENERGY TRANSITION. WE SEE THAT TRAIN IS UNDERWAY AND THE COMPANIES WE ARE INVESTING IN ARE ACCELERATING THAT. IT MAY CHANGE A LITTLE BIT. THE PACE. THE DIRECTION IS NOT REALLY CHANGING. FOR ME, IT COMES DOWN TO ECONOMICS. THE TRANSITION TECHNOLOGY THAT IS VIABLE TODAY, WIND, SOLAR, BATTERIES, THEY HAVE COME DOWN ON A COST DRAMATICALLY OVER THE LAST 10-15 YEARS AND THAT WILL CONTINUE. WE INVESTED UNDER REPUBLICAN AND DEMOCRATIC PRESIDENTS AND EITHER WAY THE TRAIN HAS REALLY LEFT THE STATION. WE THINK THE DIRECTIONAL ARROW OF PROGRESS WILL CONTINUE TO

FOLLOW BETTER PRODUCTS AND BETTER ECONOMICS, AND BETTER SOCIAL OUTCOMES AROUND THE WORLD. ED: I THINK OF THE BAY AREA AND SILICON VALLEY AS THE HOTBED OF ENERGY AND CLIMATE-RELATED TECHNOLOGY. IS THAT THE CASE? JUAN: THERE'S A LOT OF INNOVATION OUTSIDE SILICON VALLEY FOR CLIMATE. CLIMATE IS A GLOBAL OPPORTUNITY. THE TALENT TACKLING THE CLIMATE CHALLENGE IS GLOBAL. WE SEE A LOT OF INNOVATION IN EUROPE, SPECIFICALLY WHERE THE POWER DYNAMICS AND ENERGY INFRASTRUCTURE IS VERY DIFFERENT. WE SEE A LOT OF OPPORTUNITY TO INVEST OUTSIDE OF SILICON VALLEY, AND WE REALLY LIKE TO BE TOAST TO CUSTOMERS. BEING IN THAT MIDWEST HEART OF INDUSTRY IS IMPORTANT TO US. ED:

JUAN LUDOON -- MULDOON GREAT.
HAVE YOU ON THE PROGRAM. COMING UP, A NEW SURVEY SHOWS
TESLA NO LONGER STANDS ABOVE OTHER ELECTRIC VEHICLES IN
QUALITY. THAT'S BECAUSE OF SPECIFIC HEAD
SCRATCHING DESIGN CHANGES. ED: TWO STORIES IN THE NEWS.
MICROSOFT NAI’'S $13 MILLION PARTNERSHIP THAT DEFRAY FACE
SCRUTINY. UNITED NATIONS ANTITRUST
WATCHDOGS SET TO ASK RIVALS ARE TO CUSTOMERS ABOUT THE COMPANY
THINK THAT EXCLUSIVITY BECAUSE -- CLAUSE UNDER WHICH MICROSOFT
AZURE IS THE SOLE CLOUD PROVIDER FOR OPENAI.
NO FORMAL INVESTIGATION HAS BEEN OPENED YET.
AND A RAIN AI RECRUITS AND APPLE EXACTLY AT THE STARTUP
BACKED BY SAM ALTMAN EMPLOYED.

AN APPLE CHIP EXECUTIVE THAT
ONCE LED HARDWARE ENGINEERING. RAIN AI IS HOPING TO DESIGN A
NEW TYPE OF SEMICONDUCTOR SPECIFICALLY FOR ARTIFICIAL
INTELLIGENCE. ACCORDING TO THE JD POWER'S
INITIAL QUALITY STUDY, TESLA NO LONGER STANDS ABOVE OTHER
ELECTRIC VEHICLES IN QUALITY BECAUSE OF HEAD-SCRATCHING
DESIGN CHANGES ON ITS CARS, SUCH AS REMOVING THE TURN SIGNAL
STOCKS. I WANT TO BRING IN MY FRIEND
AND COLLEAGUE BLOOMBERG'S CUES, NOT IN THE BYLINE ON THIS ONE.
I FOUND IT SO INTERESTING TO READ.
SO MUCH OF THE TESLA ORIGIN STORY WAS ITS TECHNOLOGY WAS
GREAT. IT WAS A GREAT PRODUCT. THEY HAVE MADE TWEAKS ON
SPECIFIC MODELS. I THINK MODEL X AND S AFTER A
CERTAIN YEAR.

THAT HAVE NOT GONE DOWN WELL
WITH TESLA OWNERS. >> IT DID START IN 2021 WITH S
AND X, AND NOW IT HAS MIGRATED TO THREE-HIT INTO MAINSTREAM
BUYER. THE MAINSTREAM BUYER DOES NOT
LIKE GIVING UP TURN SIGNAL STOCKS.
ELON IS TRYING TO GO STOCK-FREE. YOU LEARN THE TERMS, MOVES
THE TURN SIGNAL STOCK AND THE WINDSHIELD WIPER STOCK ON THE
OTHER. ALL THOSE MIGRATED TO BEING
BUTTONS ON THE STEERING WHEEL. ED:
AS REGULAR VIEWERS OF BLOOMBERG TECHNOLOGY KNOW, I HAVE A MODEL
Y THAT I PAY FOR MYSELF. IT HAS THE STOCKS. I OBSERVE THE SCREEN IN THE
MIDDLE, THERE ARE NO DIALS OR BUTTONS ON THE --.
I SPEND A LOT OF TIME LOOKING AT THE SCREEN, READING THE JD
REPORT. I THINK THAT WAS A BIG

POINT MANY OF THE RESPONDENTS
MADE AS WELL. KEITH: YES, ABSOLUTELY.
JD POWER SAID, THE AUTHOR OF THE STUDY TOLD ME THAT THE
CONSUMER'S REPORT. THEY HAVE MUCH MORE EYES OFF THE ROAD
TIME BECAUSE THEY ARE HUNTING AROUND FOR THESE ORDINARY
FUNCTIONS. IT'S NOT HIGH-LEVEL TECHNOLOGY
THAT PEOPLE ARE LOOKING FOR. THEY JUST WANT TO BEEP THE
HORN BECAUSE SOMETHING HAPPENED IN FRONT OF THEM AND THEY
CAN'T FIND IT. ED: WE WANT TO GET INTO THE HISTORY OF TESLA
AND FULL SELF-DRIVING. WERE TO ELON MUSK'S MIND YOU WILL
NOT NEED TO PAY ATTENTION ANYWAY. YOU HAVE COVERED THE
INDUSTRY A LONG TIME. YOU HAVE WRITTEN BRILLIANT PIECES
THAT THE PRODUCT LEVEL.

HOW IMPACTFUL ARE THESE REPORTS.
IT DOES THE AVERAGE CONSUMER PICK IT UP AND GO, THIS WILL
INFORM WHETHER OR NOT I GET A TESLA? KEITH: ABSOLUTELY. JD POWER AND CONSUMER REPORTS,
THOSE TWO MEASURES CARRY THE MOST WEIGHT WITH CONSUMERS.
YOU CAN SEE IT IN AUTOMAKER ADVERTISING.
JD POWER IS ONE OF THE PREFERRED BRANDS.
TESLA HAS ALWAYS BEEN THE HIGHEST RANKED EV.
NOW THE OTHER EV'S, RIVIAN, LEGACY AUTOMAKERS HAVE CAUGHT
UP WITH TESLA PRIMARILY BECAUSE OF THESE RUDIMENTARY FUNCTIONS
THAT HAVE BEEN PUT ON THE STEERING WHEEL AND TAKEN AWAY
FROM MUTUAL LOCATIONS. ED: IN THE STORY THERE IS A CHART
OF PROBLEMS PER 100 VEHICLES. IT'S ALSO A QUALITY SURVEY.
CAN WE TALK ABOUT THE QUALITY

PART OF THE DISCUSSION? KEITH: YES. QUALITY IS DEFINED IN A COUPLE WAYS. ONE IS THE THINGS THAT BREAK THAT DON'T GO WELL. ALSO QUALITY IN THE SURVEY NOW REFLECTS WHEN CONSUMERS ARE HAVING TROUBLE OPERATING. IT MIGHT BE FUNCTIONING AS DESIGNED. BUT IF THE DRIVER CAN'T FIGURE OUT HOW TO USE IT, THAT IS A QUALITY PROBLEM. THAT IS WHAT IS SHOWING UP ON TESLA HERE. THE BUTTONS WORK IF YOU CAN FIND THEM. WEIRD, BUT CAN YOU FIND THEM IN AN EMERGENCY. -- CAN FIND THEM. BUT CAN YOU FIND THEM IN AN EMERGENCY SITUATION? IF YOU ARE IN A ROUNDABOUT IN THE MIDDLE OF IT, IN YOUR STEERING WHEEL IS UPSIDE DOWN, YOU DON'T KNOW WHAT ARROW TO PUSH. ED: BLOOMBERG'S KEITH NAUGHTON, GREAT TO CATCH UP ON BLOOMBERG

TECHNOLOGY. THAT IS IT FOR THIS EDITION. CHECK OUT THE PODCAST. WHAT AN EPISODE. HAPPY FRIDAY TO EVERYBODY AROUND THE WORLD.

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