Tesla’s China Approval and Paramount’s CEO Ousting | Bloomberg Know-how

>> FROM THE HEART OF WHEREINNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY, THISIS “BLOOMBERG TECHNOLOGY,” WITH CAROLINE HYDE AND EDLUDLOW. CATHERINE: I'M CAROLINE HYDE ATBLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED: I'M ED LUDLOW.CATHERINE: COMING, TESLA GETS TENTATIVEAPPROVAL FOR A DRIVING SYSTEM IN CHINA. ED:PARAMOUNT EXPECTED TO OUST ITS CEO AHEAD OF EARNINGS.CATHERINE: SOFI SHARES DROP AFTER Q2GUIDANCE FAILS.

MARKETS, CAUTIOUSLY UP ON THENASDAQ AT THE MOMENT, .3%. BIG WEEK. WE'VE GOT THE FED, ALLIMPORTANT CLAIMS, JOBS DATA ON FRIDAY.WE ARE SEEING A 10-YEAR YIELD OF DIVING BACK FOUR OR FIVEBASIS POINTS AHEAD OF THE FEDERAL RESERVE AND WHERE WESEE THE ECONOMY AND THE INTEREST RATE ENVIRONMENT GOING.NOTABLY, A LOT CAPTURING THE ATTENTION IN JAPAN AT THEMOMENT. SOME OF THE TRAINING IS GOINGTO BE MORE MUTED, BUT WITH THE YEN IT'S BIG VOLATILITY OVERTHE DOLLAR-YEN, WHICH GOES.

HIGHER. WAS IT JAPANESE BOJINTERVENTION? THEY REMAIN MUM ON THE SUBJECT.BITCOIN, DOWN AGAINST THE U.S. DOLLAR BY 1.25% WITH A RISK OFFYIELD MORE GENERALLY AND ETF FROZEN.WHAT ARE YOU LOOKING AT ON THE MICRO? ED:TESLA, WHICH IS A BIG, ALMOST SURPRISE STORY.JUST A FEW TENTHS OF A PERCENT AWAY FROM ITS BIGGEST JUMPSINCE JANUARY OF 2020 TWO. SIMILAR TO THE GAINS WE SAWAPRIL 24.

FULL SELF DRIVING IN CHINAACCORDING TO A BLOOMBERG SOURCE. TWO SUBSETS OF THAT.A PARTNERSHIP WITH BAIDU ON INCOME MAPPING, SPECIFICALLYFOR THE CHINA MARKET, AND AN AGREEMENT OVER DATA PRIVACY ORTERMS ON DATA PRIVACY THAT WOULD ALLOW IT TO MOVE FORWARDWITH FSD. BIG REACTION IN THE MARKET.ELON MUSK WENT TO CHINA OVER THE WEEKEND AND MET WITH THEPREMIER, A SURPRISE SEVEN DAYS AFTER HE BAILED ON INDIA.THERE'S A LOT TO UNPICK IN THIS ONE AND IT'S A MOVE HIGHER INTHE TESLA STOCK.

CATHERINE:BLOOMBERG, OF COURSE, ALL OVER THIS STORY.IT WAS A SURPRISE AND IT LOOKS AS THOUGH THE MEETING FOR FRUIT.WHAT DOES IT MEAN FOR THE ROBOTAXI AUTONOMOUS VEHICLEFUTURE THAT HE PAINTS? >> WE HAVE TO SEPARATE OUTROBOTAXI AND WHAT TESLA CALLS. DRIVING.THE NOMENCLATURE HAS BEEN A MISNOMER.IT IS A DRIVER ASSISTANCE SYSTEM.WHEN YOU ACTIVATE IT, YOU ARE IN CONTROL OF THE VEHICLE ANDARE RESPONSIBLE FOR SUPERVISING.

IT. IF YOU DO GET INTO A CRASH, TESLA HAS SHOWN A TENDENCY TOTURN AROUND AND BLAME YOU, THE DRIVER.THERE IS A BIG DIFFERENCE BETWEEN THIS SYSTEM THAT TESLACALLS FSD AND THE ROBOTAXI THAT MUSK HAS MANAGED TO GET WALLSTREET EXCITED ABOUT, DESPITE THE FACT THAT HE'S BEEN TALKINGABOUT IT AS A CONCEPT SINCE 2016 AT LEAST. THIS IS A BIGDEVELOPMENT IN THE SENSE THAT FSD, FOR ALL OF ITSSHORTCOMINGS, AND THE PROGRESS THAT HE TO BE MADE TO BE MOREWIDELY USED AND ACCEPTED, IT'S.

BRINGING MORE INCREMENTALREVENUE BUT ONLY IN CERTAIN MARKETS.SOMETHING THEY CAUSE — CHARGE FOR.IF YOU CAN MAKE ARRANGEMENTS TO GET INCREMENTAL REVENUE OUT OFCUSTOMERS IN CHINA, IT COULD BOOST BUSINESS THERE AT A TIMEWHEN IT COULD SORELY USE A LIFT. ED: BEST AS I CAN TELL, YOU HAVEBEEN COORDINATING OUR TEAMS IN CHINA, THE U.S., AND EUROPE.EXPLAIN THE CHRONOLOGY OF WHAT HAPPENED.THERE WERE MULTIPLE STAGES TO ARRIVE AT THIS?.

CRAIG:WE HEARD RUMBLINGS THAT WAS GOING TO MAKE THIS — HE WASGOING TO MAKE THIS TRIP AND LO AND BEHOLD WE WAKE UP TO THEIDEA THAT YES, HE'S LANDED. IT WAS SURPRISING IN THE SENSETHAT TESLA DOESN'T EVEN HAVE A PRESENCE AT THE BEIJING AUTOSHOW. IT GOT UNDERWAY LAST WEEK, BUTCERTAINLY IT WAS A TIMELY VISIT IN THE SENSE THAT THERE WERE ALOT OF GOVERNMENT OFFICIALS IN TOWN FOR THE SHOW.THE AUTO INDUSTRY HAS BEEN A BRIGHT SPOT FOR THE CHINESEECONOMY.

THE CHINESE RELATIONSHIP WITHTESLA HAS BEEN REALLY POSITIVE. IT'S A SUCCESS STORY, EVEN WITHTHE CHALLENGES THEY'VE HAD LATELY WITH CONTINUING THEIRMOMENTUM IN CHINA. CAROLINE:MARKET SHARE ERODED TO NONE OTHER THAN BYD, THE LOCALCOMPETITOR. REMIND US OF THE DEALS THATHAVE HAD TO BE DONE WITH CHINESE PLAYERS, ULTIMATELY, TOBE ABLE TO GET THE GRANTING. CRAIG:THE KEY ONE FLAGGED BY ED IS WITH BAIDU.IT'S BEEN INTERESTING BECAUSE.

ELON MUSK HAS BEEN ON THERECORD FOR YEARS NOW SAYING THAT TESLA DOESN'T NEED MAPS.IT'S A CRUNCH. IF YOU FORGIVE A CAR UPON, FROMTHIS STANCE, IT'S NOT NECESSARY. IN CHINA, FOR YOU TO OFFERTHESE KINDS OF SYSTEMS, YOU NEED TO HAVE A PARTNERSHIP WITHA MAPPING AND NAVIGATION COMPANY AND IT JUST SO HAPPENSTHAT THE COMPANIES ABLE TO OFFER THOSE SERVICES ARECHINESE. IN TERMS OF HOW THEY CONTROLTHE ELECTRIC VEHICLE BATTERY MARKET, IN THE MORE INFANTYEARS OF THE EV INDUSTRY FOR.

CHINA, IT REALLY WAS SUCCESSFULIN HELPING TO KIND OF BUILD UP WORLD DOMINATING COMPANIES LIKECAT L. THEY ARE LOOKING TO KIND OFREPLICATE THAT PATTERN WITH COMPANIES THAT PLAY A CRITICALROLE IN THESE DRIVER ASSISTANCE SYSTEMS THAT ONE DAY MAY BEABLE TO SUPPORT FULLY TAKING THE HUMAN DRIVER OUT OF THEEQUATION. ED: WHAT IS SO INTERESTING IS THATBAIDU IS SO CONFIDENT IN THE DOMAIN OF DEVELOPING AUTONOMOUSTECHNOLOGY. THE STOCK IS ON TRACK FOR ITSBIGGEST JUMP SINCE JANUARY OF.

2022. PERCEIVED GOOD NEWS, MORENUANCED VIEWS IN THE MARKET ABOUT WHAT HE'S DOING HERE. >> ELON MUSK SAW THEOPPORTUNITY TO SAY LET'S GO IN THERE, I WANT TO DO THIS.YOU HAVE SEEN THE CLASHES BETWEEN THE U.S. AND CHINA.HE'S TRYING TO PUT A FOOT IN BOTH SIDES TO SAY I HAVE GOTTHIS TECHNOLOGY. HE HAD THE PREMIUM BRAND ANDSUDDENLY THE EV'S STARTED TO GET LESS EXPENSIVE AND TESLALOST SHARE. TO ME THIS IS A WAY OF SAYINGI'M GOING TO CHANGE THE MATH.

FOR MYSELF AND IF I CAN BESUCCESSFUL IN THIS, MAYBE I GET TO BE THE OUTLIER. ED: THAT WAS SARAH HUNT, EARLIER ON”BLOOMBERG SURVEILLANCE.” WE HAVE A STRONG PIECE ON THETERMINAL RIGHT NOW SAYING HOLD ON — A WEEK AGO ELON MUSK WASSUPPOSED TO GO TO INDIA AND HE BAILED.NOW HE'S GONE STRAIGHT TO CHINA. HE SHOWS US THE POWER DYNAMICSAND THE SKILL IN ALL OF THIS, NAVIGATING GEOPOLITICS.CAROLINE: YEAH — CRAIG:YEAH, THAT HAS BEEN MUTUAL.

BACKSCRATCHING FOR YEARS NOW.TESLA WAS THE FIRST INTERNATIONAL FOREIGN CARCOMPANY TO BE ALLOWED TO OPERATE IN CHINA WITHOUT HAVINGTO READ TO A JOINT VENTURE WITH A LOCAL MANUFACTURER.IT WAS A HUGE WIN FOR ELON MUSK AND SOMETHING THAT HE FOUGHTFOR FOR YEARS. THE CONSTRUCTION OF THE PLANTFOR TESLA WAS RECORD TIME. EXTREMELY TIMELY IN THE SENSETHAT MUSK WAS REALLY RAMPING UP THE MODEL 3, TRYING TO REMODELY OUT. THEY WERE ABLE TO KEEP THEPLANT RUNNING EVEN DURING.

PANDEMIC, WHEN OTHER PLANTS INCHINA HAD A DIFFICULT TIME OPENING BACK UP FROM THEINITIAL SHUTDOWN. SO, CHINA HAS VERY MUCHSUPPORTED TESLA WHEN TESLA NEEDED IT MOST. WE ARE SEEINGU.S. COMPANIES PULL BACK A BIT FROM CHINA, MAYBE AT LEAST DERISK ALITTLE. APPLE DID THAT IN INDIA. A SIMILAR MOVE.IT'S CLEAR THAT MUSK DOESN'T SEE THE — URGENCY TO DO THAT.ED: TERRIFIC REPORTING, THANK YOUSO MUCH.

ANOTHER STORY CLOSE TO THISONE, U.S. AUTO SAFETY REGULATORS INVESTIGATING THE FORD A BLUECRUISE ASSISTANCE DRIVER FEATURE AFTER A PAIR OF FATALCRASHES INVOLVING THE TECHNOLOGY. THE OFFICE OF DEFECTINVESTIGATION OPENED A PRELIMINARY EVALUATION AFTERRECEIVING NOTICE OF TWO SUVS THAT COLLIDED WITH STATIONARYVEHICLES. WE WILL CONTINUE TO TRACK THATONE. CAROLINE: NOTABLE. COMING UP, LOOK, GOT TO TURNOUR ATTENTION TO ANOTHER KEY.

STOCK ON THE MOVE. PARAMOUNT, ANNOUNCING ITS OWNCEO OUSTING, POTENTIALLY, A HEAD OF A POTENTIAL PURCHASE OF THEBUSINESS. WE WILL BRING YOU MORE.THIS IS “BLOOMBERG TECHNOLOGY.” ED: TALKING TACTIC, THE SUPREMECOURT REJECTED AN APPEAL FROM ELON MUSK OVER THE SO-CALLEDTWITTER SITTER, OVERSEEING SOCIAL MEDIA POSTS ABOUT TESLA.WITHOUT COMMENT THEY REFUSED TO HEAR CONTENTIONS ON THE ACCORDTHAT HE SIGNED INTO THOUSAND 18 THAT HE SAYS NOW VIOLATES HISCONSTITUTIONAL FREE-SPEECH.

RIGHT . WE WILL TRACK THAT ONE. THE APPLE IPAD HAS BEEN HIT BYTHE DIGITAL DOMINANCE CRACKDOWN, ADDED TO A LIST OFBIG TECH PRODUCTS AND SERVICES HIT BY THE RULES.IT MEANS THAT APPLE HAS SIX MONTHS TO MAKE SURE THAT THEIRTABLET ECOSYSTEM COMPLIES WITH A RAFT OF PREEMPTIVE MEASURESUNDER THE DIGITAL MARKETS ACT. DAVID ELLISON HAS OFFEREDCONCESSIONS, AS WELL AS THE REDSTONE QUESTION, TO MAKEPOSSIBLE CONTROL OF PARAMOUNT GLOBAL MORE APPEALING.THE SKY DANCE BID WAS DESCRIBED.

AS A BEST AND FINAL OFFER ONSUNDAY. THE PARAMOUNT BOARD IS STILLUNDECIDED ABOUT ENTERING THE DEAL WITH ELLISON GIVEN THEOPPOSITION FROM OTHER INVESTORS. CAROLINE:THERE'S A LOT TO CONSIDER AND CHRIS HAS BEEN REPORTING ON ITALL WEEKEND. WE UNDERSTAND THE BOARD ISWONDERING IF THEY ASKED THE CURRENT CEO OF PARAMOUNT, AHEADOF EARNINGS COMING OUT AFTER THE BELL TODAY, AMID THE SALESPROCESS. CHRIS: THE SITUATION WAS DESCRIBED ASBEING VERY FLUID, WHICH IS I.

THINK AN UNDERSTATEMENT.WE ARE REASONABLY CERTAIN THE COMPANY WILL ANNOUNCE EARNINGSTHIS AFTERNOON, BUT BEYOND THAT, YES, THEY ARE EXPECTED TOSAY GOODBYE TO THEIR CEO, BOB BAKISH , REPLACING HIM WITH AMANAGEMENT COMMITTEE ON AN INTERIM BASIS.SKY DANCE, THAT WOULD BE A CHANGE OF CONTROL FOR THECOMPANY AND THAT WAS THEIR BEST AND FINAL OFFER YESTERDAY DAVIDELLISON, THE OWNER OF SKY DANCE, OFFERING HISCONTRIBUTION IN TERMS OF BUYING PARAMOUNT STOCK AT A PREMIUMFOR WHAT IT'S TRADING AT TODAY.

APPEASING THE SHAREHOLDERS.REDSTONE IS ALSO APPARENTLY MAKING CONCESSIONS ALLOWING THENONVOTING SHAREHOLDERS TO WEIGH IN ON A DEAL, SOMETHING THATTHEY DON'T HAVE TO DO BUT IT IS SORT OF BEST PRACTICE INSECURITIES LAW THESE DAYS. SO, A WHOLE LOT GOING ON. ED: YOU HAVE OUTLINED THE MECHANICSOF THE DEAL, BUT GIVE US THE RATIONALE AS TO WHY.WHY ARE WE TALKING ABOUT SOMEONE CHANGING THE DEAL WITHPARAMOUNT? WHAT’'S GOING ON? CHRIS:THE TRADITIONAL TV BUSINESS IS.

IN TROUBLE, PEOPLE LEAVING FORSTREAMING SERVICES. ADVERTISING HAS BEEN IN DECLINE.YOU WILL SEE A PICKUP THIS QUARTER BECAUSE OF THE SUPERBOWL. THE STREAMING BUSINESS THAT ISTHE FUTURE IS STILL LOSING MONEY.ALTHOUGH THE LOSSES ARE COMING DOWN A BIT, STILL IN THEHUNDREDS OF MILLIONS OF DOLLARS. IT'S A QUESTION AS TO WHETHERTHEY WILL EVER STOP. SO, WHEN YOUR MAIN BUSINESS ISLIKE THAT, THE MOVIE BUSINESS BEING A PROBLEM OVER THE LASTYEAR, A CHALLENGE GETTING.

PEOPLE BACK TO THEATERS.PRETTY MUCH EVERY LEG OF THEIR BUSINESS IS IN SOME SORT OFPERIL. THAT IS WHY THE STOCK IS NOWAND THEY ARE CONSIDERING ALL OPTIONS. ED: ALL RIGHT, CHRIS, REALLYAPPRECIATE HAVING YOU UP FROM L.A. SO FAR, SHARES OF SOFI AREFALLING. WE WILL SPEAK TO THE CEO.ANOTHER STOCK ON THE MOVE. CAROLINE:IT'S IN FRANCE, ALL ABOUT CONTENT GETTING SPLIT INTO FOURUNITS.

SALES ROSE IN THE FIRST ORDERFOR THE FRENCH MEDIA COMPANY. THIS IS “BLOOMBERG TECHNOLOGY.” CAROLINE:SOFI COME OUT WITH EARNINGS, LOOKING STRONG TODAY, BUT THEFORECAST IS WHAT PEOPLE ARE WARNING OTHERS ABOUT. ADJUSTED NET REVENUE DOWN,THERE. WE WANT TO DIG INTO THAT NUANCEWITH ANTHONY NOTO. YOUR FULL-YEAR GUIDANCE WASRAISED IN YOU ARE FEELING POSITIVE ABOUT HOW YOU ARESTEALING — STEERING THE.

COMPANY AT AN INFLECTION POINT,BUT WHY IS THE SECOND ORDER ABOVE EXPECTATIONS?WHAT CAN YOU ADD TO WHAT WE ARE SEEING RIGHT HERE, RIGHT NOW?ANTHONY: GREAT FIRST QUARTER, IT'S INLINE WITH THE TRANSFORMATION THAT WE TALKED ABOUT, OURCOMBINED TECH PLATFORM FINANCIAL SERVICES BUSINESS,GROWING 54% YEAR-OVER-YEAR, COMBINING THE FLAT REVENUE.THAT WAS A PART OF THE PLAN. WE HAD OUR SECOND CONSECUTIVEQUARTER OF POSITIVE EPS, IN ADDITION TO GROWING BOOK VALUEON A TANGIBLE BASIS PER SHARE.

BY 60%, POTENTIALLY.WE GUIDED THE FULL YEAR, AS YOU MENTIONED, ABOVE NOT JUST OURBEAT BUT OUR PRIOR GUIDANCE. THAT'S A POSITIVE OVERALLOUTLOOK. WE HAD NOT USUALLY GIVE THECURRENT QUARTER AND AT THE END OF 2024 WE GAVE THE FULLGUIDANCE FOR Q1, NOT Q2. BECAUSE WE ARE TAKING ACONSERVATIVE VIEW ON LENDING, LENDING WILL BE DOWNSEQUENTIALLY IN Q2, WHILE OUR TECH PLATFORM FINANCIALSERVICES REVENUE WILL HAVE STRONG YEAR-OVER-YEAR GROWTHWITH STRONG SEQUENTIAL GROWTH.

AND CONTINUED PROFITABILITY ASWELL. WE FEEL GOOD ABOUT THE BUSINESSTRANSFORMATION WE HAVE MADE OVER THE PAST SIX YEARS.GROWING REVENUE THAT'S FLAT IS A REAL TESTAMENT TO THEDIVERSITY OF OUR BUSINESS. YOU CAN'T FEEL GREAT ABOUT THESHARE REACTION — CAROLINE: YOU CAN'T FEEL RIGHT ABOUT THESHARE REACTION. ANTHONY: YOU CAN'T REACT TO THOSE DAYTODAY. WE ARE HAPPY WITH THE TREND.WE ARE TAKING A CONSERVATIVE VIEW ON LENDING, PRUDENT GIVENTHE UNCERTAIN ENVIRONMENT.

WITH IT AS IT BECOMES MORESTABLE, WE WILL BE MORE AGGRESSIVE WITH LENDING.GIVEN THE UNCERTAINTY IN THE LAST SIX MONTHS ON RATES. ED:GOOD MORNING. A LOT OF THE QUESTIONS WE GOTFROM THE AUDIENCE FOR YOU WERE ABOUT THE CAPITAL THAT YOURAISED AND YOUR STRATEGY GOING FORWARD.A LOT OF INTEREST IN THAT. I'M NOT CURE WHY THE PEOPLEWANT TO KNOW, BUT THAT IS THE QUESTION. ANTHONY:I THINK THAT PEOPLE MISUNDERSTAND THE SHARE COUNT.FIRST, WE ISSUED A CONVERTIBLE.

NOTE.1.2 5% INTEREST. IT ALLOWED US TO REDEEM A PREFERRED SECURITY,PAYING 12.5 PERCENT INTEREST. THAT WILL PROVIDE SAVINGS FORUS TO. WE HAVE ALREADY NOTICED THEHOLDERS OF THAT PREFERRED INSTRUMENT BEING REDEEMEDSOONER THAN EXPECTED. WE ALSO BOUGHT BACK AN EXISTINGCONVERT TRADING BELOW FACE VALUE ACCRETIVE TO BOOK VALUE.IT WAS BASICALLY NEUTRAL ON TANGIBLE BOOK VALUE PER SHARE.THERE WAS A PERCEPTION THAT IT'S DILUTED. IT'S NOT.I THINK THERE WAS A.

MISUNDERSTANDING ON THE CIRQUEOUT IN THE FUTURE. ED: MY COLLEAGUE AT BLOOMBERGINTELLIGENCE HAS A CLEAR THESIS FOR YOU GUYS, BRILLIANT APPONE-STOP SHOP THAT TARGETS YOUNG PROFESSIONALS.THAT IS WHAT THEY THINK. BUT THE STORY REALLY IS THISHIGHER INTEREST RATE FOR LONGER ENVIRONMENT NARRATIVE.HOW DOES THAT THESIS WORK IN THAT RATE ENVIRONMENT? ANTHONY:YOUR COLLEAGUE SAID IT WELL, WE SHOULD CONSIDER HAVING THEM ASONE OF OUR SPOKESPEOPLE. HIGHER FOR LONGER WILL CREATECHALLENGES FOR FINANCIAL.

INSTITUTIONS. IT'S A RISK-BASED CAPITAL RATIORELATIVE TO WHERE WE HAVE TO OPERATE FROM A REGULATORYSTANDPOINT WITH PLENTY OF LIQUIDITY. AS WE SAID TODAY, A REGIONALBANK WAS CHALLENGED AND WE BENEFITED FROM STRONG DEPOSITOF , RECORD GROWTH IN DEPOSITS. 90% OF OUR DEPOSITS WERE FROMDIRECT DEPOSIT CUSTOMERS, WE ARE THEIR PRIMARY ACCOUNT ANDIT'S VERY STICKY. WE WILL PUT STRESS ON THEBALANCE SHEETS OF OTHERS THEY.

ARE NOT HEDGING APPROPRIATELYDELAYED WE DO. WE HEDGE THE LOANS SO THEYDON'T HAVE THAT INTEREST RATE EXPOSURE AND CAN MATCH WHAT WEARE GIVING AS THE APY FOR MONEY MEMBERS AGAINST THE OFFERSTHEY HAVE TO MAINTAIN HIGHNIM AND WE HAVE A PLATFORM NOT TIEDTO INTEREST RATES. IN THE FINANCIAL SERVICESBUSINESS, WE HAVE THE INVEST PLATFORM GROWING NICELY ASANOTHER SOURCE OF DIVERSIFIED REVENUE FOR US. CAROLINE: WE ARE A TECHNOLOGY THAT WANTSTO GO INTO THE SPECIFIC, BUT.

WHY ARE YOU MORE CAUTIOUS ONTHE U.S. ECONOMY? WHY ARE YOU SAYING 5% IN EXCESSOF UNEMPLOYMENT WITH INTEREST RATE CUTS THAT YOU HAVE HALVED? ANTHONY: OUR BALANCE SHEET HAS GROWNQUITE MEANINGFULLY. AS WE CAME INTO 2024, OURCHOICE WAS COULD BECOME UP WITH OUR OWN EXPECTATIONS FOR 2020FOUR AND USE CONSENSUS? THE PLANNING STANCE THAT WETOOK WAS THAT THERE WOULD BE ONLY FOUR RATE CUTS.THE MARKET FACTORED IN SIX AT THE TIME.WE TOOK A PLANNING STANCE ON.

UNEMPLOYMENT THAT HAD BEEN MORETHAN 5%. THE MARKET WAS WELL BELOW THAT.WE TOOK A STANCE THAT WAS MODEST ON CONTRACTION.HERE WE SIT TODAY THREE MONTHS LATER IN THE MARKET IS ONLYFACTORING IN ONE TO TWO RATE CUTS, SO I'M THANKFUL THAT WETOOK A CONSERVATIVE STANCE AND STILL HAVE A CONSERVATIVESTANCE . I COULDN'T FEEL BETTER ABOUTTHE UNDERLYING TRENDS AND STRATEGY OF OUR BUSINESS, BUTWE ARE NOT IN AN ENVIRONMENT WHERE ANYONE HAS A STRONG ORHIGH CONVICTION LEVEL ON WHERE.

THE RATES WILL BE AND THERE ISSTILL A DEBATE ABOUT RATE CUTS WHATSOEVER.WE CANNOT PUT THE BUSINESS AT RISK HOPING THAT WE CAN FIGUREIT OUT, SO WE ARE HEADED TO A CONSERVATIVE POINT OF VIEW. ED: WE ARE SHORT ON TIME, BUTYOU'RE MOVING AWAY FROM THE STUDENT LOAN REFI TRADEMARK ISTHIS. WHY? ANTHONY: THE STRATEGY WAS TO CREATE AONE-STOP SHOP FOR FINANCIAL SERVICES NEEDS.NO ONE WAS PROVIDING ALL THE PRODUCTS THAT YOU WOULD NEED.SO, WE OFFER HOME LOANS,.

STUDENT LOANS, PERSONAL LOANS,IN SCHOOL LOANS, CHECKING AND SAVINGS, INVESTING, INSURANCE,SMALL TO MEDIUM BUSINESS LOAN GENERATION, AND THE TECHPLATFORM BUSINESS. THE STRATEGY WAS ALWAYS ABOUTBUILDING A ONE-STOP SHOP FOR YOUR FINANCIAL SERVICESBUSINESS NEEDS RESULTING IN A DIVERSIFIED BUSINESS ALLOWINGUS TO MAKE CHOICES ABOUT WHAT WE GROW AND WHAT WE TAKE ACONSERVATIVE VIEW ON. ED: ANTHONY NOTO, GREAT TO CATCH UPAND HAVE YOU BACK ON THE PROGRAM.COMING UP, HONG KONG IS NEXT IN.

LINE TO LIST A BATCH OF CRYPTOETS. THOSE DETAILS, NEXT. STAY TUNED, WE'LL BE RIGHT BACK.LOOK A LOT, BUSY MONDAY, BIG WEEK AHEAD. THIS IS “BLOOMBERG TECHNOLOGY MORGAN:AFTER A YEAR AND A HALF BREAK, APPLE IS FINALLY READY TORELEASE NEW VERSIONS OF THE IPAD. APPLE WILL RELEASE A NEW VERSION OF THE IPAD PRO, ANDUPGRADE TO THE IPAD ALE — AIR, AS WELL AS A NEW PENCIL STYLUSAND KEYBOARD KIT.

THE IPAD PRO WILL GET THEBIGGEST UPGRADE OF ALL, ADDING AN LED DISPLAY TO THE IPAD FORTHE FIRST TIME, THE SAME CRYSTAL SCREEN TECHNOLOGY USEDIN THE IPHONE X SINCE 2017. THE IPAD PRO WILL ALSO GET THEM3 CHIP, THE SAME PROCESSOR USED SINCE MARCH. THE IPAD AIR WILL GET THE M2CHIP FROM 2022 AS WELL AS A 12.9-INCH SCREEN OPTION.THAT MEANS THE MID TIER RANGE WILL GET A BIGGER DISPLAY SIZEFOR THE FIRST TIME. THE MAGIC KEYBOARD, WHICHINTEGRATES THE KEYBOARD AND.

TRACKS THAT INTO AN IPAD CASE,WILL GET A NEW ALUMINUM FRAME, MAKING THE IPAD PRO MORELAPTOP-LIKE WHILE IN USE. I AM MARK GURMAN, THIS IS POWERON. EMILY: WELCOME –ED:WELCOME BACK TO “BLOOMBERG TECHNOLOGY.”I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE: I AM CAROLINE HYDE. WE WORK HAS MANAGED TO KIND OFBANKRUPT THE DEAL. WE UNDERSTAND THE ALL-IMPORTANTMEETING TODAY, APRIL 29, COMING THE EXIT DEAL.NEWMAN IS OBJECTING, SAYING IT.

IS A FAILED PLAN.NEWMAN HAD OFFERED TO BUY WE WORK, BUT IT WAS REJECTED.THE FACT THAT THEY HAVE BASICALLY GOT A $4 BILLIONINSECURE DEBT THAT IS A KEY ISSUE, LIMITING ISSUE HERE MOREBROADLY, BUT IT LOOKS AS THOUGH A DEAL HAS BEEN CUT, BUT ADAMNEUMANN IS NOT INVOLVED. LET'S GET A MARKET CHECK.THEY ARE TENTATIVELY HIGHER. WE GOT THE FED, THE DOLLARSTILL LOWER VERSUS JAPANESE YEN, A BIG MARKET MOVE, ANDMAYBE WE SEE SOME BOJ INTERVENTION THAT HAS SO FARREMAINED SILENT FROM JAPAN, AND.

IT IS INDEED MUTED AMID AHOLIDAY TRADING SESSION. LET'S LOOK AT WHAT IS HAPPENINGON INDIVIDUAL NAMES. I WANT TO SHOW WHAT HAPPENED INEUROPE, BECAUSE THEY JUST FINISHED TRADING IN EUROPE,ATOS OF 18%, THE FRENCH GOVERNMENT POTENTIALLY STEPPINGIN WITH A BED FOR THE I.T. COMPANY — BID FOR THE I.T.COMPANY. IT HAS TO AVOID INSOLVENCYITSELF COME UP MORE THAN 18%. SES, THE TWO FUNDS WE COULD SEEWHEN IT COMES TO ALL-IMPORTANT VIEWS ON THE COMING TOGETHER OFSES AND INTEL.

WHEN WE ONCE AGAIN THINK ABOUTA MERGER IN THESE SATELLITE BUSINESSES, THE DEAL FAILED INPREVIOUS ATTEMPTS TO COMBINE, BUT WE COULD POTENTIALLY SEE AREVIVAL OF DISCUSSIONS. DOWN FROM 10%.REMEMBER, INTERCEPT IS PRIVATE. MICROSTRATEGY IS DOING ALLRIGHT, AND IT HAS DONE PARTICULARLY WELL AFTER BEING ASORT OF PROXY FOR BITCOIN. 11 296, AND WE WILL TALK MOREAFTER THE BELL. SOME OF CHINA'S TOP ASSETMANAGERS ARE IN FINAL PREPARATIONS TO BEGIN TRADINGTOMORROW.

BLOOMBERG'S KAILEY GREIFELDJOINS US FOR MORE KID WHAT IS INTERESTING FOR HONG KONG ISAUSTRALIA ANALYZE THE OPTION. THIS IS A THEME. KAILEY: IT IS DEFINITELY A THEME.TAKE A LOOK AT HONG KONG, FOLLOWING THE U.S.BLUEPRINT, WE HAVE A FEE WAR BEFORE IT LAUNCHED.WE ARE TALKING ABOUT A TRIO OF ISSUERS HERE, HARVEST, SO YOUHAVE CHINA, AMSI, AND HARVEST ANNOUNCE THEIR FEES IN JUST AFEW DAYS, AND TURNED SARAH ACTUALLY CAME OUT AND WAVETHEIR FEE.

60 BASIS POINTS, THEY AREWAVING THAT FOR THE FIRST FOUR MONTHS OR SO.COMPARE THAT TO HARVEST, THEY ARE GOING AHEAD WITH A FEEWAIVER, VERY POPULAR IN THE U.S. AFTER SIX MONTHS, THEY WILLCHARGE .3%. THAT IS OUR LOW WATERMARK. CHINA ANC ON THE HIGH SIDE, 99BASIS POINT, SO A BIT EXPENSIVE, BUT WE WILL HAVE TOSEE HIM OF WHAT WE SAW IN THE U.S.MARKET WAS EVEN THOUGH YOU HAVE THOSE FEES CUT INTO THE LAUNCH,ACTIVE LUNCH, YOU HAD A LOT OF.

REDUCTIONS AS WELL. ED: ON THIS PROGRAM, WE LOVECOVERING CITIES AROUND THE WORLD PURE HONG KONG IS CLEARLYCONSIDERING THIS IMPORTANT, BUT IN ACTUALITY, IT IS A SMALLMARKET, YOU KNOW. GIVE US THE NUMBERS. KAILEY:IT IS A SMALL MARKET. THAT IS IMPORTANT TO NOTE.WHEN YOU LOOK AT HONG KONG, THE TOTAL A UM IS ABOUT $47 BILLION.IF YOU TAKE A LOOK AT THE SUITE OF U.S.ESPYS, BITCOIN, ETF'S, THEY ARE ALREADY ABOVE THAT.WHEN YOU THINK ABOUT THE IMPACT.

TO BITCOIN, OF COURSE, PROBABLYNOT TOO MEANINGFUL FROM AN INFLOWS PERSPECTIVE, BUT WHENIT COMES TO SENTIMENT, WHICH IS WHAT POWERS BITCOIN, IT COULDBE MEANINGFUL. ED: BLOOMBERG'S KAILEY GREIFELD, WELOVE HAVING YOU ON THE SHOW. THANK YOU VERY MUCH.LET'S GO FROM CRYPTO BACK TO ENTERTAINMENT WITH PARAMOUNT'SBOARD CONSIDERING REMOVING BOB BAKISH. I WANT TO TALK WITH BLOOMBERG'SGEETA ARUNATHAN. WHAT YOU THINK THE CATALYST IS,GEETA? GEETA:.

I THINK IT IS BASED ON THISWEAKENING OF THE ELEPHANT DEAL. ONE IS THERE'S AN ELEPHANT WHOOWNS US GUIDANCE MEDIA NOW PROPOSING TO BUY A BLOCK OFSHARES AT A PREMIUM TO MAKE IT MORE PALATABLE FOR INVESTORS,AND I THINK FINALLY, SHERRY REDSTONE, THE ONE WHO KIND OFCALLED ALL THE SHOTS AT PARAMOUNT, SHE FINALLY OPENEDFOR WHAT IS THE MAJORITY OF MINORITY VOTERS, SO SHE ISLETTING THE NONVOTING SHAREHOLDERS HAVE A SAY INWHETHER THIS TRANSACTION SHOULD GO THROUGH.THAT IS REALLY CRITICAL,.

BECAUSE THERE HAS BEEN SO MUCHBACKLASH AGAINST THE SKY DANCE DEAL, BECAUSE A LOT OF THENONVOTING SHAREHOLDERS HAVE SAID IT WILL DILUTE THEM, ANDIT REALLY ONLY BENEFIT, YOU KNOW, SKY DANCE AND OF COURSESHELLEY REDSTONE. CAROLINE: ONE OF THE KEYS HAVE BEENAERIAL INVESTMENTS, AND THEY HAVE IN PUTTING OUT LETTERSAYING WE ARE WORRIED ABOUT THE WAY THIS HAS BEEN EXECUTED, THEPREMIUM AND THE MERGE OF WHAT IS HAPPENING IN SKY DANCE, BUTALSO THEY WERE TROUBLED BY THE LOOMING DEPARTURES OF FOURPARAMOUNT BOOT DASHBOARD.

MEMBERS.IS THIS, FROM A GOVERNMENT'S PERSPECTIVE, IF YOU SEE THEBOARD POTENTIALLY GETTING RID OF THE CEO, A TRANSITION FORTHE CURVES? GGEETHA: RICE, HADLEY, GATES & –GEETHA: YEAH, THIS IS UNUSUAL. YOU HAVE BOB, WHO HAS BEEN THECEO OF THE COMPANY FOR QUITE A WELCOME EVER SINCE VIACOM ANDCBS WERE MERGED COMPANY KIND OF HAS TAKEN CHARGE, AND HE HAS ITHINK DONE A FAIRLY GOOD JOB, ALTHOUGH SOME PEOPLE WOULD PAYTHAT, YOU KNOW, GETTING INTO THE CEILING BUSINESS WAS NOT AGOOD IDEA TO BEGIN WITH.

THAT IS BECAUSE, YES, THEY HAVESUCCESSES, SUBSCRIBERS, BUT THEY HAVE LOST A TON OF MONEY,THEY HAVE LOST ABOUT FIVE BILLION DOLLARS, AND A LOT OFPEOPLE SEEM TO THINK THAT IT IS BECAUSE OF A MISSTEP OR WAS AMISSTEP BY BOB BAKISH. THERE'S A LOT OF CONFUSIONRIGHT NOW, GETTING RID OF BOB BAKISH DEFINITELY CHALLENGESTHE S STATUS QUO. BOB BAKISH WAS AGAINST THE DEALWITH SKY DANCE. CAROLINE: WOW. IT LOOKS AT THE BIT IS EVOLVINGVERY QUICKLY ON THE DAY, AND WE WILL BE LOOKING WITH YOU AGAIN.

MEANWHILE, COMING UP, IT TAKING A LOOK AT A NEW KIND OFCOLLEGE, CALLED THE FOUNDERS FUND. EASTERN TIME, BLOOMBERG ETF IQ.THIS IS BLOOMBERG. ♪ ED: AN ONLINE ALTERNATIVE TO COMMUNITY COLLEGES, TRYING TOTACKLE ALL KINDS OF PROBLEMS, ONE OF THEM BEING STUDENT LOANDEBT IN THE UNITED STATES, AND IT CAUGHT THE ATTENTION OFFOUNDERS FUND, THE NEW.

EXTENSION ROUND IN THE PLATFORM.DISCLAIMER, SOMEONE WITH A BLOOMBERG LP IS ALSO INVESTEDIN THEM. JOINING US ARE TRAE STEPHENS ANDANOTHER. YOU PAID $77,000 FOR THE COURSEAND ARE BRINGING AN EMPLOYMENT OPPORTUNITY FOR VERY TALENTEDINVESTORS, WHICH RAISES THE QUESTION, WHY DO YOU NEED $23MILLION MORE? TADE:YEAH, THANKS FOR HAVING ME. A LOT OF THEM ARE LOOKING FORGIG WORK, AND WHAT WE DO AT CAMPUS IS WE ALLOW THEM TOTEACH, BRING ACCESS TO PEOPLE.

WHO HAVE NEVER ACCESS TO THISQUALITY OF EDUCATION BEFORE, AND AS YOU POINTED OUT, THEFEDERAL GOVERNMENT DOES PAY FOR A LOT OF THE TUITION WITH THEGRANTS. ED: ONE OF THE LEARNING FROMRESEARCH AND LOOKING INTO THE SYSTEM OF OUR BRIGHTESTACADEMICS AND TEACHERS ARE PRETTY POORLY PAID IN THISCOUNTRY. TRAE, I KNOW YOU. THIS ONE IS INTERESTING.WHY ARE YOU FOCUSED ON EDUCATION?THIS IS VERY SPECIFIC CASE STUDY IN EDUCATION. TRAE: YEAH.I WOULD NOT SAY WE ARE FOCUSED.

ON EDUCATION.WE DON'T DO A WHOLE LOT AT ALL IN ED TECH. ED:THAT IS WHAT I MEAN. TRAE: PETER IS KNOWN AS HAVING THISANTI-HIGHER EDUCATION PERSPECTIVE, WHICH LEADS TO THEFELLOWSHIP HE HAS TO STUDENTS TO DROP OUT OF COLLEGE ANDPURSUE SOMETHING ENTREPRENEURIAL.WHEN THIS KIND OF HIT THAT I HAVE NOT SEEN A LOT IN TEC ISTHIS IDEA THAT WE DON'T NEED A BUNCH OF STUDENTS GOING INTOMASSIVE DEPUTY AVERAGE STUDENT IN THE UNITED STATES GOING INTOHIGHER ED ED HAS DEBT OVER.

$20,000 BID I HAD OVER $100,000OF DEBT COMING OUT OF COLLEGE, AND THERE IS NO REASON FOR THIS.I THINK WHAT TADE AND THE TEAM AT CAMPUS IS DOING IS BRIDGINGTHAT OUT TO MAKE IT POSSIBLE FOR KIDS WHO WANT TO GO TOSCHOOL AFTER THEY FINISH HIGH SCHOOL AND DO AT MUCH LOWERCOSTS AND EXIT THEIR COLLEGE EXPANSION WITHOUT ANY DEBT.CAROLINE: TADE, WE GO BACK TO THE, WHYTHE NEED OF FUNDS? YOU HAVE CLEARED A MAN COMINGFROM STUDENTS, PERHAPS A BIT WHEN IT COMES TO THE COACHES,TO BE MENTORING, ADVISING.

WHERE WILL THE FUNDS BE PUT TOWORK? IS THIS ABOUT MARKET SHARE CAPTURE RIGHT NOW? TADE: YEAH.THE OPPORTUNITY IS JUST SO BIG. IF YOU LOOK EXTRA ALUMS IN THISCOUNTRY, IT IS $2 TRILLION. TO ACTUALLY SELL THIS ANDCREATE A WORLD-CLASS QUALITY EDUCATION AND SCARE THAT UP TOA LOT OF PEOPLE, IT IS GOING TO REQUIRE LOTS OF INVESTMENT.WE GIVE STUDENTS A LOT OF SUPPORT THAT MOST COMMUNITYCOLLEGES CANNOT AFFORD TO OFFER. EVERY STUDENT GETS A LAPTOP.WE DO AN INNER SPIT — INTERNET SPEED TEST, SO IF YOUR INTERNETIS TOO SLOW, WE WILL GET YOU.

INTERNET AT HOME.COACHES PLAYED A ROLE, LIKE THE ROLE MY MOTHER PLAYED FOR ME INCOLLEGE, LIKE MAKE SURE I'M SHOWING UP TO CLASS ON TIME,GETTING MY EXCITEMENT SENT — ASSIGNMENTS IN.THAT IS NECESSARY. I'M GRATEFUL TO TRAE AND THOSETHAT FOUNDERS FUND. CAROLINE: YOU HAVE NOT BEEN THAT FOCUSEDON EDUCATION, AS YOU CLEARLY ARTICULATE APPEARED WHY THISONE WHEN THERE ARE OTHER ONLINE COMPETITORS OUT THERE? TRAE:YEAH. THE IMPORTANT THING FOR US, ASIT IS WITH ALL COMPANIES, IS.

THAT WE ARE FOUNDER-BASED,FIRST AND FOREMOST, SO LESS THAN INVESTING IN CATEGORIESOR, YOU KNOW, SPECIFIC TYPES OF COMPANIES, WE ARE INTERESTED ININVESTING IN THE TOP FOUNDERS THAT ARE DOING THE MOSTINTERESTING THINGS, THE MOST NOVEL CONCEPTS.WHEN I ORIGINALLY MET TADE, NOT GENERALLY BEING INTERESTED INED TECH, I WAS BLOWN AWAY BY HIS VISION AND OWES MILLIEDECIDED TO BRING OTHER PEOPLE FROM THE FIND IN FRONT OF HIM,SAYING THIS GUY IS DIFFERENT FROM OTHERS WE HAVE SEEN IN THEED TECH SPACE, GETTING EXCITED.

ABOUT THE THING HE HAS SO MUCHPASSION FOR. ED: YOU DROPPED THE REFERENCE TOTHE GIG ECONOMY, SO I'M THINKING UBER AND OTHERPLATFORMS THAT DO FOOD DELIVERY, ETC. HOW WILL THE ? T — HOW WILL THAT PLAY OUT?TADE: PRINCETON, UCLA, MOREHOUSE, YOUHAVE YOUR ON-CAMPUS JOB THAT IS IN OFFICE, YOU LOVE IT, YOU GETTO MEET WITH STUDENTS, BUT OFTEN TIMES YOU ARE AN ADJUNCTPROFESSOR PETE I USED TO THINK, ADJUNCT IS LIKE MICHELLE OBAMATEACHING FOR FUN.

THAT IS REALLY RARE.THE MOST ADJUNCT OF RECENT GRAD SCHOOL GRADUATES WHO EARNED$40,000, 40 $5,000 A YEAR. SO WHAT WE DO IS YOU CAN TEACHIN ADDITION TO YOUR ON-CAMPUS JOB AT CAMPUS.EDU, AND WE PAYABOUT DOUBLE OF THE NATIONAL AVERAGE WAGE, ABOUT $8,000 ACLASS. FOUR ACADEMIC QUARTERS A YEAR,IF YOU TEACH THREE CLASSES A QUARTER WITH US, YOU ARE MAKING$96,000 IN ANNUAL INCOME, DOING WHAT YOU ARE GREAT AT AND WHATYOU LOVE DOING, TEACHING THESE STUDENTS WHO ARE SUPERAMBITIOUS AND SUPER TALENTED.

CAROLINE:WE WILL HAVE TO DIG AND MORE. FOUNDERS FUND PARTNER TRAESTEPHENS IS KEEPING WITH US, AND CAMPUS.EDU FOUNDER ANDCHANCELLOR, TADE OYERINDE, THANK YOU.MEANWHILE, WE'VE GOT THE TALKS THAT THERE WAS A SWEET NEW DEALFROM SKY DANCE OFFERED TO PARAMOUNT SHAREHOLDERS.WE UNDERSTAND IT IS $3 MILLION AND A CASH INCLUSION, REPORTEDBY THE “NEW YORK TIMES,” PAYING DOWN DEBT, BUYING BACKSTOCKS, SO MUCH UNRAVELING IN REAL-TIME ON PARAMOUNT.WE WILL BRING IT TO YOU.

THIS IS “BLOOMBERG TECHNOLOGY.” CAROLINE:LET'S GO BACK TO THE SPOTLIGHT TODAY, FOUNDERS FUND, OURCONVERSATION ABOUT THE FOCUS ON THE FOUNDER. ELON MUSK TODAY, DO WE LOVE THEFACT THAT WITH HIS OTHER COMPANY, TESLA, HE HAS DEEPENEDTIES WITH CHINA, ONE OF THE KEY MARKET FOR HIM, BUT HOW DOES HESIT WITH FOUNDERS, THE U.S. MORE BROADLY, STILL SOMERELATIONSHIP WITH CHINA HAD OF THINGS WHEN — AT A TIME WHENWE ARE ALSO DISTANCING? TRAE:.

YEAH.THERE'S ALWAYS A GOOD REASON TO HAVE NUANCE, SO THERE'S A LOTOF DIFFERENT, YOU KNOW, THINGS THAT NEED TO BE TAKEN INTOCONSIDERATION WHEN YOU LOOK AT INTERACTING WITH EITHER THECHINESE MARKET VERSUS INTERACTING WITH THE CHINESEGOVERNMENT VERSUS INTERACTING WITH GOVERNMENT CONTROL OVERTHINGS THAT ARE IMPACTING U.S. CONSUMERS.I THINK OBVIOUSLY DIPLOMACY IS CRITICAL IN ALL OF THESESCENARIOS. ELON IS DOING WHAT HE NEEDS TODO FOR THE COMPANIES HE IS.

OPERATING IN THE COUNTRY THERE.CAROLINE: WHAT ABOUT THE CONSUMERRELATIONSHIP, WHEN IT IS A CHINESE-HELD BUSINESS IN THEUNITED STATES, TO DIVEST, TO PICK UP FOR ATLEAST ANOTHER NINE MONTHS? TRAE: I'M VERY CONCERNED.I'VE BEEN VERY PUBLIC IN EXPRESSING MY CONCERNS ABOUTTHE USE OF TIKTOK DOMESTICALLY. DURING THE COLD WAR, WE NEVERWOULD HAVE ALLOWED FOR A RUSSIAN COMPANY TO BUY “THE NEWYORK TIMES.” HAVING SOME SENSE FOR ADVERSARYCONTROL, KEY PATHWAYS FOR.

INFORMATION INTO OUR POPULACEIS SUPERCRITICAL, AND TIKTOK HAS DEMONSTRATED TIME AND TIMEAGAIN THAT THEY ARE NOT WILLING TO BE TRANSPARENT, THEY ARE NOTWILLING TO SHARE WITH US THE IMPORTANT INFORMATION WE WOULDNEED TO KNOW TO HAVE A LEVEL OF CONFIDENCE IN THEIR ABILITY TOSUPPORT THOSE TECHNOLOGIES BEING DEPLOYED IN THE UNITEDSTATES. CAROLINE: WE'VE GOT TO THINK ABOUT THEAI, ALL-ENCOMPASSING NARRATIVE HERE A LITTLE BIT, WHEN WE ARETALKING ABOUT ELON AND TESLA, YOU REFERENCE BAIDU, OF COURSE,ALSO TIKTOK OWNED BY BYTEDANCE,.

CHINA HAS ITS OWN INTEREST INALL OF THIS. ED: TO ME, THAT IS THE STORY, RIGHT?ALL OF THE STORIES THAT TESLA, CHINA, TIKTOK.CHINA IS WORKING ON THESE TECHNOLOGIES ITSELF, TO KILLEARLY IN GENERATIVE AI OR BUILDING LARGE LANGUAGE MODELS. — TWO BUILDING IN GENERATIVEAI OR BUILDING LARGE LANGUAGE MODELS GET HOW DO YOU BALANCEBETWEEN COLLABORATING AND PUTTING U.S. INTERESTS FIRST?TRAE: YEAH. I THINK THAT IS RIGHT.THE CCP IS VERY DIFFERENT THAN.

THE CHINESE PEOPLE OR THECHINESE MARKET. THESE THINGS ARE NOT ALWAYSINTRINSICALLY CONNECTED. THE THING THAT WE ARECONSTANTLY TRYING TO BALANCE, NOT ONLY INSIDE OF OURPORTFOLIO, BUT ALSO WHAT WE ARE DOING AT ANDURIL, A PORTFOLIOCOMPANY AND FOUNDERS FUND THAT I STARTED BACK IN 2017, IS TOFIGURE OUT WHERE WE NEED TO NOT ONLY DEVELOP BUT ALSO SUSTAINSTRATEGIC ADVANTAGE THAT WE ARE ABLE TO SET THE RULES OFENGAGEMENT FOR HOW THESE TECHNOLOGIES ARE ACTUALLY USEDIN THE FIELD.

THE MOMENT WE NO LONGER HAVECONTROL OF THE TECHNOLOGIES, THAT IS WHEN WE LOSE CONTROL OFTHE ABILITY TO REGULATE AND, YOU KNOW, KEEP THOSETECHNOLOGIES INSIDE THE BOUNDS OF LAW. ED: I'M GLAD YOU TALKED ABOUTANDURIL AND DEFENSE TECH, THERE HAVE BEEN MANY ARTICLES WRITTENABOUT YOU AND YOUR PLACE IN DEFENSE TECHNOLOGY.I WANT TO ASK YOU, IF YOU ARE SEEING SCIENCE, AT THE TOPLEVEL OF GOVERNMENT, SORT OF HAND-IN-HAND WITH SILICONVALLEY?.

YOU GUYS DOING REALLY WELL, SOGO AND DO IT. TRAE: I GUESS — WE ARE WORKINGREALLY HARD, I DON'T KNOW HOW ELSE TO SAY THAT HERE BEFORE IJOINED FOUNDERS FUND 10 YEARS AGO, I WAS DOING SALES ATPALENTIR, WHERE I SPENT THE PRIOR SIX YEARS OF MY CAREER.NO MATTER WHAT WE TRY, EVERY SINGLE ITERATION OF OUR SALESSTRATEGY WAS NOT WORKING, GOING TOO SLOW, RUNNING INTOROADBLOCKS. EVENTUALLY, WE FIGURED OUT AMODEL THAT WORKS, AND THE SAME CAN BE SAID FOR SPACEX.IT TOOK THEM YEARS AND YEARS TO.

FIGURE OUT HOW TO DO THIS, ANDTHE REALITY IS, GOING INTO THIS INDUSTRY BLIND, LIKE219-YEAR-OLDS WORKING IN A GARAGE — TWO 19-YEAR-OLDSWORKING IN A GARAGE, VERY DIFFERENT FROM BUILDING ASOFTWARE COMPANY. TRAE: FOUNDERS FUND — ED:FOUNDERS FUND'S TRAE STEPHENS, THANK YOU.THERE IS SO MUCH IN THE NEWS FLOW, IT IS A HUGE EARNINGSWEEK, GREAT GUEST ON THE SHOW. RECAP ON THE PODCAST. FROM SAN

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