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Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.
SpaceX delays Starship V3 launch due to technical issues; experts discuss the rocket's potential and SpaceX's multi-planetary ambitions.
Key Takeaways
- Technical setbacks can delay high-profile rocket launches despite advanced engineering.
- Starship V3 represents a transformative step in payload capacity and reusability for space travel.
- Human spaceflight and multi-planetary colonization remain core missions driving SpaceX innovation.
- SpaceX’s agile engineering approach enables rapid problem-solving and iterative design improvements.
- The upcoming IPO adds financial and operational pressure on SpaceX’s Starship program.
Summary
- SpaceX halted the Starship V3 launch seconds before liftoff due to a hydraulic pin failure on the launch tower.
- The launch delay comes shortly after SpaceX filed for a mega IPO, increasing scrutiny and caution.
- Starship V3 is a major upgrade aimed at achieving a 100 metric ton payload capacity and full reusability.
- The new launch pad in Texas and the reengineered rocket architecture mark a significant milestone for SpaceX.
- Experts highlight Starship's role in enabling affordable, large-scale space access, including lunar missions.
- The ultimate goal of Starship is to support human spaceflight and make humanity a multi-planetary species.
- Designs for human accommodations inside Starship are still evolving and have yet to be fully revealed.
- SpaceX’s engineering culture encourages rapid iteration and problem-solving with high responsibility for engineers.
- The program faces significant technical and operational challenges, but the team remains optimistic.
- SpaceX’s broader mission includes building infrastructure like Starlink and orbital data centers to support interplanetary life.
Full Transcript — Download SRT & Markdown
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Ed: This is "Bloomberg Tech." Starships were meant to fly, but script. SpaceX delays a critical task seconds before launch. Plus, we will discuss their plans of mega IPO with a SpaceX alumni and early investor. And we will look at earnings off of strong IPO growth.
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We sit down with an interview with Winston Cheng. Starship test flight script. It is sounding like we will not clear this issue today, so we will be standing down from the launch.
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Ed: SpaceX delaying a critical test of its massive Starship rocket after a pin tied to the launch tower mechanism failed to retract during the final countdown. The setback comes a day after the company formally filed for an IPO.
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Another attempt penciled for this Friday evening, but can you believe it, the tension, the drama, the anticipation?
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Lauren in one city, Ed Ludlow in another, and it is a piece of metal that stops us going. Do we know what happened?
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Lauren: From what Elon said, it sounded like it was a hydraulic pin that controlled the arm on the launch tower. He mentioned a quick disconnect.
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All these things need to move rapidly out of the way once the launch takes place so the rocket can clear the tower.
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It might seem small, pretty important. That is what makes rocket launches so exciting. One little piece of technology can go wrong and the whole thing gets stopped. It sounded like there were a number of other issues, something with the flame trench
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that had stopped the countdown at one point, too. This is all a new pad. A new rocket, a new launch pad.
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I think with this launch, they definitely want it to go well, given all the stakes surrounding their IPO and the filing they had this week. I would not be surprised if they were being a little extra cautious this time than they
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had with previous test missions.
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Ed: The new pad in Texas. This is a test flight but a brand-new architecture for Star flight.
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The hardware top to tail, the Starship spacecraft at the top. If you're looking at the Super Heavy booster on the bottom.
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Why is that important? Loren: The anticipation has been super high for this launch because it is the debut of the third iteration of Starship, what is known as Virgin Three or V3.
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This is supposed to be the one that achieves all of the dreams that Starship has laid out. It is supposed to get to that really massive payload capacity of 100 metric tons.
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It is also supposed to be optimized for total reuse, which is the ultimate holy grail that they want to achieve with Starship, being able to bring back both Starship and a Super Heavy booster intact so they can rapidly re-fly them
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again. This is the version that is supposed to do all of that. So, I think everyone is waiting on pins and needles to see if it will actually work as intended.
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Ed: The prior iterations, 34 tons of payload.
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They want to get 100 metric tons more. Loren Grush, please don't go far. Thank you.
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Let's get more on SpaceX and why a new reengineered, re-architectured Starship matters. She spent more than a decade at SpaceX, supported milestone missions, the company's first crewed mission to the International Space Station. I think you left prior to
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Starship really kicking off, but you understand why this matters. So, let's start with the V3.
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Why does it matter? It matters because people have been waiting, as Loren just alluded to. Everyone has been waiting for this next iteration to be operational, to be able to book a launch on Starship, and I think it will enable the next
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iteration of what we want to see as the space industry continues to grow and access to space continues to be easier, more affordable, etc., and we can take larger payloads.
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We can take more people to the moon, we can take lunar rovers, more quickly. Everyone has been waiting for that for a long time now.
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Ed: SpaceX's S1 went public and a main focus of it is that larger
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future payload you are talking about being orbital data center. But the core mission, the founding mission of SpaceX is to make humankind a multi-planetary species.
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We haven't on the show talked as much about the human payload. Sorry if that is not the kindest way of putting it.
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But the human payload element to it. How would that work in Starship? The idea is if you're going to go the distance, but even in the near term, the moon, it is Starship that is the best technology platform to get us
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there. Is that the idea? Caroline: That is -- Laura: That is the idea. Elon has talked many times and I am sure elsewhere in the public about the future goal of making humans a multi-planetary species.
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So, the ultimate goal of something like Starship is to make life interplanetary, to enable that future we want to see. As he said, we don't want to be like the dinosaurs and we don't want to go extinct on this
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planet. So, there are a lot of pieces that SpaceX needs to achieve to get there because the mission for SpaceX to be interplanetary, you have to have the building blocks of data centers, you have to have Starlink, you have to have all the things we've built to this
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point, and this is just the next piece of the puzzle.
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Ed: You were the senior mission operations engineer.
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You basically trained the crew and you oversaw and ran the Dragon spacecraft mission. SpaceX getting humans to the International Space Station or into space so far has been Falcon 9 with the Dragon capsule on top.
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I am now showing Starship V3 pictures right now. What people are finding hard to understand is within the design of those Starship spacecraft, different from putting a capsule on Falcon 9, how would that work?
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Where do the astronauts go? Laura: Laura: There have been lots of design iterations, and I'm not entirely sure where the design iteration is now.
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But from the last I saw, the Starship would take all the humans to the moon and there would be the complete payload, it would be geared towards humans.
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There would be toilets, the pods for people to live in while they are being transported to the moon.
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That is more the idea, I believe. So, that is something we still have yet to see until Starship is operational and many flights have taken place.
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I don't think we will know exactly the designs and I believe SpaceX is probably waiting to unveil that in the future versions.
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Ed: Could you try to take us inside SpaceX a little bit?
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Part of covering the almost launch of the 12th test flight is seeing the gathering of SpaceX staff and engineers, everyone who worked on the reengineering, the new architecture. When Elon Musk or the other leaders go to the team and say let's rip up the script, the
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blueprint, and start again, what is that process like to getting onto the pad? Laura: It is a challenge. In the industry, there is something called a challenge coin.
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You get a challenge coin if you work really hard on something. But it feels like there is a challenge coin on the line all the time.
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So, you are given somewhat interim -- insurmountable problems and you have to solve it. I think the difference most people are now noting is that within SpaceX and many startups you see in the industry today, you are given more
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responsibility to make decisions than you would have in a traditional large aerospace company. So, you're given a problem, you go and solve the problem to the best of your ability, then you come together, test the problem, that is why you are seeing quick iterations from
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Starship because the engineers are being pushed to continue to think outside of the box.
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You can't design something like Starship with the things that had been done in the past.
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Ed: Present day, you're the CEO of Upsilon Three. If you're trying to pull off a high-stakes operational testing manufacturing procedure, which I think Starship is right now, that is what you need.
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I think you are in a good place to tell us just how difficult is what SpaceX is trying to do right now with the Starship program? Laura: I think Loren alluded to this earlier, but there...
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♪ ED: SHARES OF LENOVO SOARING OVERNIGHT. THIS AFTER THE COMMITTEE REPORTED STRONGER GROWTH IN AI RELATED EARNINGS, OFFSETTING CHALLENGES -- YOU KNOW WHAT THE CHALLENGES ARE. RISING COMPONENT PRICES.
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WINSTON CHENG JOINS US FROM NEW YORK CITY. GREAT TO HAVE YOU ON THE PROGRAM.
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THANK YOU VERY MUCH FOR THE TIME. EVERYONE KNOWS LENOVO LEADING PC MAKER IN THE WORLD.
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I WONDERED IF WE COULD GO DEEPER INTO WHAT AI REVENUES LOOK LIKE FOR LENOVO. TO FIND THEM AND WE CAN EXTRAPOLATE OUT WHAT THE STORY IS HERE. WINSTON: WE ARE WELL KNOWN FOR OUR PC GIVEN OUR DOMINANCE IN THE
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SPACE FOR MANY YEARS. WE ARE MORE THAN A PC MAKER. WE HAVE THE MOST COMPLETE PORTFOLIO IN TERMS OF DEVICES, FROM PCS TO TABLETS TO SMARTPHONES.
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AS THE MOST COMPLETE PORTFOLIO AT SCALE ON THE GLOBAL BASIS, NON-IOS BASIS. THAT SERVES AS THE FOUNDATION FOR AI DEVICES GOING FORWARD IN TERMS OF OUR PRODUCT PORTFOLIO SET. WE HAVE OUR HYBRID STRATEGY THAT ENABLES US TO HAVE FROM
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THE POCKET TO THE CLOUD. YOU ARE SEEING THAT GAINING IN TERMS OF OUR INFRASTRUCTURE BUSINESS IN THE LATEST QUARTER.
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THE COMPUTER CAPABILITY THAT IS NOW BEING USED FOR INFRASTRUCTURE FROM AI TRAINING TO AI INFRASTRUCTURE. ED: THE SHARES ALSO MASSIVE PERFORMANCE TODAY.
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I APPRECIATE YOU ARE THE CFO. MAYBE YOU DON'T KEEP A CONSTANT EYE ON THE SHARE PRICE BUT THE BIGGEST JUMP SINCE 2008.
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IT HAS TO TELL YOU SOMETHING. DO YOU ATTRIBUTE THAT TO THE APPRECIATION YOU ARE GETTING FOR THE INFRASTRUCTURE BUSINESS?
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WHAT DO YOU THINK THE MARKET IS SEEING NOW THAT IT HAS NOT BEFORE? WINSTON: WE ARE NOT DEFINED BY ONE QUARTER. WE ARE IN FOR THE LONG HAUL.
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THE AI OPPORTUNITY IS ALSO FOR DECADES TO COME. WE ARE DEFINING THIS AS THE AI DECADE FOR LENOVO.
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WE ARE IN THE FIRST YEAR AND YOU CAN SEE THE RESULT OF THAT FOCUS. IN TERMS OF OUR CAPABILITIES, WE ARE INVESTING FORWARD 10 YEARS.
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OUR ABILITY TO PRODUCE AT SCALE ON A GLOBAL BASIS FOR BOTH ON THE DEVICE SIDE AND ALSO INFRASTRUCTURE SIDE IS UNIQUE TO LENOVO. WE CAN SERVE HYPERSCALERS AND ENTERPRISES ON THAT BASIS. OUR PORTFOLIO SET WITH THE IBM HERITAGE WHEN HE MADE THE ACQUISITION IN 2015 GIVES US A
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SOLID FOUNDATION TO BE ABLE TO SERVE THE AI COMPUTER CAPABILITIES TODAY GIVEN THE HIGH PERFORMANCE COMPUTE GENETICS WE HAVE WITH OUR INDUSTRY LIQUID COOLING TECHNOLOGY AS WELL. ED: ON MONDAY, I WAS WITH JENSEN HUANG IN LAS VEGAS. VERA RUBIN COMING LATER THIS
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YEAR. WE WERE SPEAKING WITH ONE OF YOUR PEERS, MICHAEL DELL. I WAS TRYING TO UNDERSTAND FROM THEM THE STORY FOR THE PC IN A WORLD WHERE WE ARE SHIFTING TO INFERENCE AND ALSO AGENTIC AI. CAN YOU GIVE ME EVIDENCE OR
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DATA THAT THE MORE COMMONPLACE USE OF AI AGENTS ACTUALLY DRIVES ENTERPRISE KNOWLEDGE, WORK, ACQUISITION OF NEW PCS AT SCALE?
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WINSTON: WE SEE THE AI PC DEMAND STRONG IN ITS INCREASING IN TERMS OF OUR PORTFOLIO.
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REVENUES TODAY IS ABOUT 30% OF TOTAL REVENUES IN THE LAST QUARTER. AI PC'S ARE BIG COMPONENTS OF THAT.
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AS AI TRAINING DEVELOPS AND MORE AI CAPABILITIES ARE BEING ENHANCED, MORE PEOPLE WILL USE AND CONSUME AND INTERACT WITH AGENTS THROUGH THEIR DEVICES. THE UPGRADE FOR BETTER AND MORE HIGHER PERFORMANCE DEVICES WILL BE A NECESSARY PART OF THAT
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JOURNEY. YOU SEE THAT WITH THE LIKES OF THE OPENAI AND OTHERS HAVING PARTNERSHIPS WITH EITHER FROM A STAFFING PERSPECTIVE OR STRATEGIC PERSPECTIVE WITH DEVICE MAKERS. WE ARE SEEING THAT IN TERMS OF DIALOGUES WITH THE AI COMPANIES AND THEIR DESIRE TO WORK WITH
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US FROM A GO TO MARKET PERSPECTIVE. ED: WHAT IS THE TRUTH OF WHAT IS HAPPENING WITH MEMORY?
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HOW SEVERE IS THAT AS A BOTTLENECK? WINSTON: THIS INCREDIBLE SPEND AND DEVELOPMENT OF AI IN TERMS OF INFRASTRUCTURE IS DRIVING THE COMPONENT SHORTAGES.
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NOT ONLY IN MEMORY BUT ALSO IN TERMS OF CPU AND GPU DEMAND. I THINK THAT WOULD BE MULTIYEAR OPPORTUNITY IN TERMS OF THAT DEMAND. AT THE SAME TIME THE INDUSTRY NEEDS TO CATCH UP IN TERMS OF THE SUPPLY CHAIN TO SATISFY THE
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DEMAND. THAT IS CAUSING THE SUPPLY AND DEMAND AND BALANCES IN THE MEMORY PRICES TO GO UP.
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ON THE INFRASTRUCTURE SIDE, WE ARE ABLE TO PASS THROUGH THAT DEMAND BECAUSE THAT IS WHERE THE STRONG DEMAND IS IN TERMS OF THE PRICING. ON THE DEVICE SIDE I THINK THE LOWER END YOU ARE STARTING TO SEE IN TERMS OF THE FIRST
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QUARTER NUMBERS THAT THOSE THAT CANNOT GET SUPPLY HAVE SEEN THEIR MARKET SHARES DECLINE. ED: WHAT YOU JUST OUTLINED -- BEAR WITH ME -- HOW MUCH ARE YOU NEGOTIATING WITH YOURSELF?
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YOU HAVE DIFFERENT BUSINESS LINES. THEY BOTH NEED TO COMMON COMPONENTS HIGH-BANDWIDTH MEMORY. YOU NO ON THE SERVICE SID E, THAT IS WHERE THE DEMAND IS.
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WHAT ABOUT MY PC BUSINESS? DO YOU HAVE TO MAKE A CHOICE OF WHERE YOU PRIORITIZE? WINSTON: GREAT QUESTION BUT I THINK WHAT SUPPLIERS APPRECIATE WITH US IS THAT WE HAVE THAT GLOBAL BEFORE LEO. WE HAVE THE MOST COMPLETE
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PORTFOLIO FROM PC TO TABLET TO SMARTPHONE. THAT GIVES THEM THE FORECASTS NECESSARY AS LONG-TERM PARTNERS.
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WE HAVE THE DEMAND FORECAST FROM THE SERVER SIDE AS WELL. FROM THAT PERSPECTIVE IF WE ARE A STRATEGIC PARTNER FOR SUPPLIERS IN TERMS OF THAT ACCURACY OF THE FORECAST. WE NEED TO SUPPLY IN TERMS OF SATISFYING OUR LONG-TERM LENOVO
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FRIENDS IN TERMS OF THE THINKPAD WHICH IS SO WELL LOVED IN THE MARKET. WE NEED TO MAKE SURE THERE IS ENOUGH SUPPLY GOING TO THAT DEMAND AS WELL. ED: WINSTON CHENG, GREAT TO HAVE YOU ON "BLOOMBERG TECH." COMING UP, AURA FILES CONFIDENTLY FOR THE U.S.
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PUBLIC LISTING -- OURA. THIS IS BLOOMBERG TECH. ♪ HARDWARE IS VERY ATTRACTIVE. YOU CAN'T BUY CODE ATOMS. YOU CAN'T SOME OF THEM INTO EXISTENCE.
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FOR OURA, STEERING THE WAY WE HAVE, IT'S ACTUALLY BEEN REALLY ADVANTAGEOUS. INVESTORS SAY WE ARE SO GLAD YOU ARE NOT IN THE SOFTWARE SPACE.
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YOU ARE A HARDWARE PROVIDER. ED: TOM HALE GETTING PERHAPS A PREVIEW OF HOW THE WEARABLE MAKER WILL PITCH INVESTORS IN THEIR IPO.
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A WEEK LATER, OURA FILES CONFIDENTIALLY TO GO PUBLIC. LET'S SPEAK TO OUR CONSUMER TECH EDITOR DANA WALDMAN.
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WE REPORTED THIS CITING A SOURCE OF THE FILED CONFIDENTIALLY. I THINK THE COMPANY SAYS, YES, WE FILED CONFIDENTIALLY. IN A REPORT THERE WAS MORE DETAIL. THERE IS SOME SERIOUS BANKS WORKING WITH THE COMPANY. THIS SEEMS VERY REAL. DANA:
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ABSOLUTELY. THIS IS AN ALL-STAR LIST OF BANKS. GOLDMAN SACHS WAS THE FIRST ON THE LIST. WE DON'T KNOW THE EXACT TIMING, JUST AT THE COMPANY EXPECTS TO GO PUBLIC LATER THIS YEAR.
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OTHER DETAILS ARE MISSING LIKE WHAT THE PRICE WOULD BE WHEN IT HITS THE STOCK MARKET. ED: THE BLOOMBERG TECH AUDIENCE IS THINKING, IT IS NOT LOOKING AS FRESH AS YESTERDAY -- ED IS NOT LOOKING AS FRESH AS YESTERDAY.
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HISTORICALLY, ACTUALLY MOST WEARERS ARE WOMEN. THEY HAVE A STORY FOR THE MALE CATEGORY WHICH IS LONGEVITY.
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LAST OCTOBER THEY RAISED MONEY IN AN INTERESTING VALUATION IN THE PRIVATE MARKETS. HOW MUCH MOMENTUM DOES OURA HAVE RIGHT NOW? DANA: BLOOMBERG PUBLISHED THE STORY TOWARDS THE START OF THE YEAR SAYING THIS WOULD ESSENTIALLY BE THE YEAR THAT SMART RINGS WENT MAINSTREAM.
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THIS COMING IPO PUTS AN EXCLAMATION POINT ON THAT. OURA HAS SEEN SALES RISING AND RISING AND IT'S REMARKABLE THAT IT STARTED OUT AS A NICHE HARDWARE CATEGORY.
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ONE WE HAVE HAD TO SPELL OUT FOR A WHILE. WE MAKE IT TO A POINT WHERE IT IS WIDELY UNDERSTOOD WHAT A SMART RING IS.
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IT MIGHT NOT JUST BE SOMETHING THAT A MAJORITY FEMALE AUDIENCE WEARS BUT A BROADER AUDIENCE TAKES TO. ED: WHAT ABOUT, WELL, THE CEO? WHAT HAS BEEN HIS ATTITUDE TOWARDS THE FUTURE OF THIS COMPANY REAL QUICK? DANA: JUST THAT IT IS A REALLY VIABLE KIND OF PRODUCT THAT CAN REACH
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A REALLY WIDER AUDIENCE. UNTIL NOW IT HAS BEEN COMPARED TO SMART WATCHES, ESPECIALLY THE APPLE WATCH.
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TOM HAIL WOULD SAY THE RING CARVES ITS OWN LIGHT. IT IS FOR PEOPLE WHO WANT SOMETHING COMPLETELY DIFFERENT.
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NOT THE DISTRACTIONS OF NOTIFICATIONS OR A SCREEN ON THE REST BUT JUST SOMETHING ZEROED IN ON HEALTH AND FITNESS TRACKING. I THINK OURA, LIKE A LOT OF OTHER COMPANIES ARE TRYING TO NOT JUST TRACK YOUR STEPS, YOUR EVERYDAY FITNESS, BUT BECOME SOME SORT OF AUXILIARY
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PREDICTOR OF YOUR OVERALL HEALTH. ED: DANA WOLLMAN WITH THE OURA STORY, THANK YOU VERY MUCH.
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WAYMO HALTED SERVICE IN FIVE CITIES AMID SEVERE WEATHER OVER CONCERNS THE ROBOTAXIS MAY ATTEMPT TO DRIVE ON FOOTED ROADS. STORMS SWEPT THROUGH ATLANTA ON WEDNESDAY DURING WHICH AN UNOCCUPIED WAYMO VEHICLE DROVE AND GOT STUCK IN A FLOODED ROAD. DEEPSEEK SENIOR MANAGEMENT TOLD
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POTENTIAL INVESTORS THE START UP A AI RESEARCH OVER SHORT-TERM MONETIZATION. THAT'S ACCORDING TO SOURCES.
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THE START UP IS IN THE FINAL DISCUSSIONS OVER OF FUNDING DEAL THAT COULD PUSH THE VALUATION TO ABOUT $45 BILLION BEFORE THE INVESTMENT. THE EU WILL PROPOSE TEMPORARILY LIFTING SANCTIONS ON A MAJOR CHINESE CHIP SUPPLIER AFTER AUTOMAKERS WARNED OF IMPENDING SUPPLY CHAIN CHAOS IF THE BAND
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IS NOT REMOVED -- BAN IS NOT REMOVED BUT IT WOULD REQUIRE APPROVAL BY THE 27 MEMBER STATES.
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THE CFO OF ZOOM MICHELLE CHANG ON THE WAY. IT IS BLOOMBERG TECH. ♪ ED: WELCOME BACK TO BLOOMBERG TECH.
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THIS IS WHAT MARKETS LOOK LIKE RIGHT NOW. THE BIG PICTURE STORY IS NOT THAT.
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QUANTUM STOCKS GETTING A BIG BOOST. WE SAW A MASSIVE GAIN IN THOSE SAME NAMES YESTERDAY. THE STORY IS THE U.S.
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LIKE THE COUNTRY AND THE GOVERNMENT PUTTING $2 BILLION TO SECURE AMERICAN LEADERSHIP IN THE SYSTEM.
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AFTER A BIG JUMP YESTERDAY THEY ARE SEEING GAINS INTO THE DAY. WE WILL GO MACRO LATER IN THE SHOW. I THOUGHT IT WAS A DECENT CHART. ONE OF THE MOST READ HIS STORIES, THE S&P 500, THE BENCHMARK EQUITIES INDEX OF THE
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WORLD IS UP OR AN EIGHT STRAIGHT WEEK, BEST RUN OF GAIN SINCE 2023. AT THE END OF 2023 WE SAW THE INDEX END THE YEAR WITH NINE STRAIGHT WEEKS OF GAIN.
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WE TALK ABOUT MARKET CAP GAIN SINCE THE WAR IN IRAN STARTED, IT IS TECH THAT ACCOUNTS FOR A BIG PART OF THAT RALLY.
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SOMETHING EVERYTHING IS CLICKING ON IT IS A STORY BY BLOOMBERG'S BRODY FORD. SALESFORCE IS BASING -- SALESFORCE IS MAKING FLASHY PROMISES ABOUT ITS AGENTIC CAPABILITIES TO WIN OVER THE SKEPTICS ABOUT HOW IT CAN COMPETE AGAINST AI BUT THERE IS AN ISSUE WITH SALESFORCE
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CLAIMS. THEY ARE ASPIRATIONAL. BRODY FORD IS HERE WITH US WILL STOP A LOT OF TRAFFIC ON THIS STORY.
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THERE ARE CHARTS AND DATA HERE. WHY IS THIS ASPIRATIONAL AND HOW ARE WE DEFINING THAT? BRODY: WE'VE ALL SEEN FLASHY AI MEMOS AND IT IS LIKE IS THIS REAL AND WE TOOK THAT SIMPLE QUESTION AND APPLIED IT TO ONE OF TAX LOUDEST MARKETERS, SALESFORCE.
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THEY HAVE SHOWN AI AGENT FUNCTIONALITY HANDLING CUSTOMER SERVICE BY ITSELF AND IN A LOT OF CASES WE TRIED IT OUT AND IT IS NOT THERE YET. IT IS ASPIRATIONAL.
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THESE COMMERCIALS SO SHOW THE FUTURE VISION OF WHAT THEIR CUSTOMERS HOPE TO IMPLEMENT AND IT UNDERSCORES THAT GETTING AI ONLINE IS DIFFICULT AND A LOT OF COMPANIES ARE WORKING ON IT AND IT WILL BE A BIT OF A SLOG TO GET THIS STUFF ONLINE IN
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MANY CASES. SALESFORCE WILL TALK ABOUT THE NUMBER OF CUSTOMERS SIGNED UP TO AN AGENTIC PRODUCT. THE QUESTION IS IS THAT COMPANY USING IT YET? DOES IT EXIST IN THE REAL WORLD?
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IS THERE ANY DATA ON THAT? BRODY: I DID NOT FIND ANY HARD DATA. WILLIAMS-SONOMA LUXURY RETAILER, THEY HAVE BEEN IN KEYNOTES, THEY HAVE BEEN IN COMMERCIALS, AND SOME OF THE MORE ADVANCED FUNCTIONALITY THEY HAVE SHOWN ON STAGE, I SPOKE WITH THEM AND THEY SAID
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HOPEFULLY IT IS UP BY THE HOLIDAYS. YOU MIGHT BE PAYING AND IT TAKES A WHILE. ED: YOU DID CHAT WITH MARC BENIOFF. WHAT DID HE SAY? MICHELLE: -- BRODY: HE SAID THIS KIND OF MARKETING IS NORMAL. THE CUSTOMERS ARE NOT CONFUSED
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AND IT IS PROPERLY DISCLOSED. I'M NOT SURE IF IT IS TRUE ALL CUSTOMERS WOULD UNDERSTAND THAT COMMERCIAL MEANS IT IS NOT ACTUALLY FUNCTIONAL IN THE WAY IT SHOWS. ED: WHAT DOES SALESFORCE DO? WE WILL SAY THAT FOR ANOTHER
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TIME. LET'S LOOK AT SHARES OF ZOOM, ANOTHER NAME MOVING TO THE UPSIDE ON A STRONG SET OF NUMBERS AFTER THE COMPANY RAISED ITS FULL-YEAR FORECAST FOR ADJUSTED EARNINGS AND REVENUE PROMPTING UPGRADES AND HIGHER PRICE TARGETS AT RBC AND BAIRD.
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A LITTLE WHILE SINCE WE TALKED ABOUT ZOOM. MICHELLE CHANG, THE ZOOM CFO, JOINS US NOW.
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I LOVE GETTING INTO THE ZOOM STORY. WHY NOW A STRONG SET OF NUMBERS? WHAT WAS IT IN THE FISCAL QUARTER YOU SAW THROUGH THE NUMBERS? MICHELLE: THANKS FOR HAVING ME. IT IS GREAT TO BE HERE AND TALK ABOUT THE STOCK. WHAT WE DELIVERED YESTERDAY HAS
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BEEN WHAT WE HAVE BEEN WORKING ON AND DELIVERING CONSISTENTLY OVER THE LAST SEVERAL QUARTERS. THIS IS NO LONGER JUST THE MEETINGS COMPANY. YESTERDAY'S EARNINGS WAS ANOTHER GREAT EXAMPLE OF US WORKING TOWARDS THAT.
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CLEARLY SHOWING AI IS MONETIZING . CLEARLY SHOWING OUR INFLECTION AND GROWTH WHICH IS WHAT INVESTORS WANT FROM US AND DOING IT WITH GREAT PROFITABILITY AS WELL.
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ED: THIS IS A SINCERE QUESTION EVEN IF IT MIGHT COME ACROSS AS FAR-FETCHED. IF I'M INVITED TO A MEETING AT SOME POINT AND IT IS NOT ZOOM, IT MIGHT BE WEBX, IT MIGHT BE THE TOOL OF ANOTHER LARGER TECH
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COMPANY. WHAT IS YOUR PITCH TO THAT BUSINESS THAT THEY SHOULD STILL BE THINKING ABOUT USING ZOOM?
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CLEARLY THERE IS A WORLD WHERE THERE ARE OPTIONS. THERE IS A WORLD WHERE PEOPLE ARE NOT USING ZOOM? MICHELLE: I WOULD SAY A COUPLE YEARS BACK THE PITCH WAS BEST QUALITY.
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WHEN YOU CANNOT AFFORD TO HAVE THE MEETING GO DOWN, YOU WANT THE RELIABILITY, YOU WANT THE QUALITY, YOU WANT THE INNOVATION. ZOOM IS IN A VERY DIFFERENT PLACE WHERE A LOT OF WHERE WE ARE GOING AS A COMPANY IS THIS
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CONCEPT OF A SYSTEM OF ACTION. WHAT WE CAN SEE INSIDE THE COMPANY, WHAT WE CAN SEE OUTSIDE THE COMPANY WITH THINGS LIKE CUSTOMER EXPERIENCE AND THE POWER OF WHAT IT LOOKS LIKE WHEN AI GETS IN BETWEEN THOSE THINGS.
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MORE NOW I THINK WE HAVE MOVED TO A TANGIBLE AI VALUE. I HEARD THIS STORY EARLIER. THE TANGIBLE AI VALUE WE ARE ALREADY DELIVERING FOR OUR CUSTOMERS. ED: THE DATA POINT THAT JUMPED OUT AT ME IS THOSE USERS PAYING FOR
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THE AI COMPANION WILL ALMOST TRIPLE YEAR ON YEAR IN THAT PERIOD. WHAT IS BEHIND THAT?
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IT IS NOT JUST VIDEOCONFERENCING . IT IS PEOPLE SAYING I WILL USE THIS AS A WORKSPACE? MICHELLE: IT A GREAT QUESTION.
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WE SAID THAT OUR PAIN NOW WENT UP 184% -- OUR PAY NOW WENT UP 184%. IT STARTED OUT AS MEETING SUMMARIES.
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FOUR MONTHS AGO WE LAUNCHED SOMETHING CALLED MY NOTES WILL STOP THAT ALONE GREW IN FOUR MONTHS TO 1.5 MILLION.
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WHERE ZOOM IS GOING AS FAR MORE ABOUT THE MEETINGS LIFECYCLE. IT IS NO LONGER 30 MINUTES OR 60 MINUTES WE HAVE THAT HUMAN TO HUMAN CONNECTION WHICH WILL ALWAYS ENDURE IN AN AI WORLD BUT IT IS THE ENTIRE LIFECYCLE OF HOW YOU GET WORK DONE THAT
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BRINGS THE ZOOM VALUE TO OUR CUSTOMERS. ED: WE JUST HAVE ABOUT 45 SECONDS LEFT.
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EVERYONE KNOWS WHAT THE STORY OF ZOOM WAS IN THE COVID ERA. PRESENT-DAY HOW WOULD YOU SUMMARIZE THE ZOOM STORY?
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MICHELLE: IT IS NO LONGER JUST ABOUT MEETINGS. WE ARE RETAINING THAT ORIGINAL CUSTOMER LOVE WE ALWAYS HAD, THE PACE OF INNOVATION, THE SECURITY AND THE TRUST, ALL OF THE THINGS THAT MADE ZOOM ZOOM BUT WHERE WE ARE GOING IS ALL ABOUT SYSTEM OF ACTION.
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THE CONTEXT WE HAVE FROM ALL OF THE THINGS YOU DO INSIDE THE ORGANIZATION, THE OUTSIDE OF THE ORGANIZATION.
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WE ARE ABOUT TAKING THOSE CONVERSATIONS AND MOVING THEM TO COMPLETION BECAUSE WHEN WE KNOW WE DO WE ADD TREMENDOUS VALUE FOR OUR CUSTOMERS. YOU SAW THE RESULTS FOR US FINANCIALLY. WE ARE MAINTAINING PROFITABILITY , HIGH CASH FLOW GENERATION. WE ARE SUPER EXCITED ABOUT
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WHERE THINGS ARE GOING AT ZOOM. ED: FOR THE ZOOM USER THAT HAS THE SETTINGS WHICH DON, IF I GO LIKE THAT WERE LIKE THAT IT WILL APPEAR ON THE SCREEN.
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MICHELLE CHANG, ZOOM CEO, BACK ON BLOOMBERG TECH WILL STOP AN UPDATE ON THE SAGA AROUND THE STANDARD CHARTERED CEOS COMMENTS.
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HE TALKED ABOUT HOW AI WOULD IMPACT "LOWER VALUE HUMAN CAPITAL." HE STRUCK A MORE CONCILIATORY TONE IN A MEMO TO STAFF AND THEN HE DOUBLED DOWN ON A LINKEDIN POST, EXPLAINING THE BANK HAS FOR MANY YEARS INVESTED IN HELPING STAFF WHOSE ROLES HAVE BEEN UPENDED BY
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AUTOMATION SAYING "WE HAVE A RESPONSIBILITY TO HELP COLLEAGUES MOVE INTO HIGHER VALUE ROLES." THEN A COUPLE OF HOURS LATER WINTERS OFFICIALLY APOLOGIZED FOR HIS ORIGINAL COMMENTS IN ANOTHER LINKEDIN POST, WRITING HE RECOGNIZED HIS CHOICE OF WORDS HAD "CAUSED UPSET TO SOME
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COLLEAGUES AND FOR THAT I AM SORRY."
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