AI Selloff, Apple vs. OpenAI & the Future of Defense Tech | Bloomberg Tech 7/13/2026

ANNOUNCER: BLOOMBERG TECH IS LIVE FROM THE HEART OF SILICON VALLEY WITH ED LUDLOW IN SAN FRANCISCO. ED: BLOOMBERG TECH." AI STOCK RALLY SPILLS OVER. PLUS, APPLE AND OPENAI'S RIVALRY ENTERS THE COURTROOM WITH APPLE SELLING A SWEEPING TRADE SECRET LAWSUIT AGAINST THE CHATGPT MAKER. AND WE ARE JOINED BY BRENDAN CARR TO TALK REGULATING SPACE AND PALANTIR CO-FOUNDER JOEL LUNSFORD ALE ON AI TO DEFENSE TECH. WALL STREET HAS BEEN RATTLED BY A SELLOFF IN CHIPMAKERS AGAIN ORIGINATE FROM THE TRADING SESSION IN SOUTH KOREA. SAMSUNG, THE KOSPI, SK HYNIX. SK HYNIX SUFFERS ITS BIGGEST ONE-DAY DROP ON RECORD. SAMSUNG ALSO SINKING SHARPLY. THAT WEAKNESS SPILLING INTO THE U.S. SESSION WITH SK HYNIX'S NEWLY LISTED ADR'S BUT ALSO LOOKING AT THE CHIP STOCKS UNDER PRESSURE, SO JUST THE SECOND TRADING SESSION AFTER SK HYNIX'S RECORD-BREAKING USA VIEW, INVESTORS ARE QUESTIONING WHETHER THE AI RALLY SIMPLY RAN TOO FAR TOO FAST. THE LAST THING THAT YOU AND I WROTE ABOUT HEADING INTO THE WEEKEND, THE QUESTION FUNDAMENTALLY IS HAS AI CHANGED THE MEMORY BUSINESS? IS IT NO LONGER CYCLICAL? TODAY'S SELLOFF, MAYBE SOME OF THOSE QUESTIONS ARE BEING RAISED. WHAT WAS THE NET CONCLUSION THAT THEY HAD FROM SK HYNIX SELLING ADR? >> I THINK THE NET CONCLUSION THAT WE HAVE IS CERTAINLY THE MEMORY COMPANIES LIKE SK HYNIX AND MICRON ARE TRYING TO LEVERAGE INTEREST IN AI TO MAKE THEIR MARKET LESS CYCLICAL WHICH IS TO SAY THERE'S BEEN SUCH A SHORTAGE OF MEMORY CHIPS THAT THE CUSTOMERS THAT NEED THEM AND THEM DESPERATELY, SO THEY'VE BEEN ASKING FOR MULTIYEAR DEALS. SK GROUP CHAIRMAN AND SK HYNIX CEO WERE TELLING US LOOK, THIS IS NOT REALLY A CYCLICAL BUSINESS WHEN SOMEBODY COMES TO YOU AND A BUNCH OF YOUR CUSTOMERS SIGN DEALS THAT GO OVER MANY YEARS AND WE DON'T EXPECT SUPPLY TO CATCH UP WITH DEMAND ANYTIME SOON. SO CERTAINLY THOSE COMPANIES ARE TRYING TO FIGURE OUT WAYS TO MAKE THIS LESS CYCLICAL. ED: THE ADRS ARE DOWN 6%. I THINK IT WOULD BE REALLY HELPFUL JUST TO SET THE SCENE AND EXPLAIN THE FIELD. THERE ARE JUST THREE NAMES REALLY IN MEMORY, AND THE SITUATION RIGHT NOW IS THAT DEMAND FAR OUTPACES THE ABILITY TO SUPPLY. IN ANY MARKET THAT IS A PRETTY HEALTHY POSITION TO BE IN. >> SURE. SK HYNIX KIND OF PIONEERED USING A TYPE OF MEMORY CALLED HBM FOR THE CRITICAL AI TRIPS -- CHIPS SOLD BY NVIDIA. AND THERE ARE NOT ENOUGH OF THOSE. EVERYONE IS SEEKING MORE AND MORE OF THOSE SO IT HAS MADE THESE THREE MEMORY VENDORS MUCH MORE CENTRAL TO THE AI MARKET. AT THE SAME TIME, WHILE NVIDIA DRAMATICALLY DOMINATES THE AI CHIP SPACE, WE ARE SEEING SOME SMALLER, NEW COMPETITORS AS WELL AS LARGER COMPETITORS LIKE GOOGLE AND DIFFERENT TYPES OF CHIPS ARE IN SOME CASES USING OTHER KINDS OF MEMORY. THE OTHER QUESTION I THINK IS IF THE CHIPS ARE SUCH A BOTTLENECK THAT THEY ARE HOLDING EVERYTHING UP, DO WE SEE ANY SORT OF INNOVATION, ANY WAY THAT COMPANIES DEVELOP TO EITHER USE LESS OF IT OR TO USE SOMETHING DIFFERENT? AT A CERTAIN POINT BEING ABLE TO USE SOMETHING OTHER THAN THE THING YOU CAN'T GET ENOUGH OF COULD BECOME A HUGE BENEFIT VALUE IN A WAY TO LEAD THE MARKET IF YOU ARE A COMPANY THAT CAN FIGURE THAT OUT. SO THAT OVER THE LONG-TERM ALSO BECOMES THE PRESSURE. IF SUPPLY IS SO SHORT FOR SO LONG, THERE IS A STRONG INCENTIVE TO FIGURE OUT A WAY TO DO IT DIFFERENTLY OR USE LESS OF IT. WHETHER THAT IS POSSIBLE, WE WILL SEE. ED: THANK YOU VERY MUCH. LET'S TAKE A LOOK AT TODAY'S BIG NUMBER. $4.4 TRILLION. THAT'S THE COMBINED VALUE OF TSMC, SAMSUNG AND SK HYNIX. THREE TECH STOCKS DRIVING OUTSIZED RETURNS AND EMERGING MARKETS. HERE IS WHAT HAPPENED OVERNIGHT. INVESTORS ARE LOOKING TO ROTATE OUT OF THAT. THOSE THREE NAMES KIND OF HAVE THE WOODLAND WAITING EMERGING MARKETS INDICES, LOTS OF EVIDENCE THAT BIG FUNDS ARE LOOKING AWAY IN OTHER AREAS OF THE EMERGING MARKET ECONOMY, ENERGY, GAMING AND THOSE THREE NAMES MAY BE HAVING SOME OF THE SHINE WHERE OFF. OUR NEXT GUEST BELIEVES A CORRECTION IN CHIP STOCKS IS ALREADY UNDERWAY. AND TECH INVESTORS SHOULD BRACE FOR A DEEPER DROP. CORRECTION, TECHNICAL CORRECTION BUT ALSO PSYCHOLOGICAL. YOU SAW THIS COMING, WE TALKED ABOUT IT IN RECENT WEEKS. JUST REFLECT ON WHAT YOU SAW PARTICULARLY IN KOREA AND WHAT THAT IS TELLING YOU. >> EXACTLY, WE SEE A HUGE VOLATILITY ESPECIALLY THE MEMORY CHIPMAKERS AND WE CAN EVEN SAY MONTHS. AND WHAT WE SEE TODAY IS THAT THE LATEST FROM SK HYNIX IS SAID TO BE IN THE LATE U.S. LISTING. AND WHAT WE SAW IN THE KOREAN SESSION, THE 15% DROP IN SK HYNIX SHARE PRICE WAS PROBABLY DUE TO SOME PROFIT-TAKING BUT ALSO THE USUAL INVESTOR BEHAVIOR OF BUYING THE RIVER, SELL THE FAT. IT DOESN'T MATTER WHY BECAUSE WHAT WE SEE IS HUGE VOLATILITY AND IF YOU LOOK AT THE PRICE FOR TODAY WE DO SEE THAT CORRECTION IS ON THE WAY AND WE THINK THAT THE DOWNSIDE RISKS DO PREVAIL AS LONG AS VOLATILITY REMAINS THIS HIGH. ED: IT WAS ONLY FRIDAY THAT SK HYNIX BROKE THE RECORD FOR A FIRST-TIME U.S. SHARE SALE. THEY ARE JUST UNDER 150 RIGHT NOW. THE FIRST QUESTION I ASK IS WHEN ARE YOU GOING TO SELL MORE? LISTEN TO HIS ANSWER. >> I AM CONFIDENT THE DEMAND WILL GROW. FIRST THING IS THAT WE HAVE TO KEEP THE STOCK PRICE STABLE AND HOPEFULLY IN THE LONG RUN, WE CAN HAVE MORE UPSIDE POTENTIAL. ED: S K WANTED TO SEE SOME STABILITY BEFORE THEY CAME BACK FOR MORE, BUT THE TIMING OF THIS IS SO INTERESTING BECAUSE THERE HAS BEEN VOLATILITY IN PLAY. >> WE ALSO SEE A LOT OF SPECULATION, SO SPECULATIVE RIGHT NOW, AND LEVERAGED ETF'S WERE TRADING THESE FUNDS, SO WE SEE UP THE DOUBLE-DIGIT PERCENTAGE UP AND DOWN IN THE KOREAN CHIPMAKING STOCKS EVERY SINGLE DAY. THE PRICE STABILITY COULD BE REACHED BUT WITH THAT WOULD ALSO COME THE LESS SPECULATIVE NATURE OF THE PRICE ACTION WHICH WOULD ACTUALLY LEAD TO STABLE, SUSTAINABLE GAINS. AT THE CURRENT PRICES I DON'T THINK THAT WOULD BE POSSIBLE. AGAIN, THE KEY HERE IS STABILITY OF THE PRICES AND THIS IS WHY WE ARE WATCHING EVERY SINGLE DAY THE VOLATILITY THAT WE HAVE AND WE ARE FAR, FAR FROM THE LEVELS THAT WE COULD CALL STABLE RIGHT NOW. ED: OVERALL, ARE THEY BEARISH ON THE TECHNOLOGY SECTOR? >> BULLISH, ESPECIALLY IN THE LONGER RUN. IN THIS BULLISH FEELING IS ALSO SHARED BY OUR BIG INSTITUTIONAL CLIENTS. THEY SAID THERE ARE RISKS THAT MANY ARE ALSO POINTING OUT REGARDING THE HIGH VALUATIONS IN TECHNOLOGY STOCKS, ESPECIALLY THE CHIPMAKERS IN THE VALUATION GAP, BUT THE TECHNOLOGY STOCKS THAT COULD EVENTUALLY HELP THEM GAIN EVEN MORE AND SQUEEZE MORE JUICE AT THE U.S. MARKETS, BUT ALSO THE GEOPOLITICAL UNCERTAINTIES AND THE RISING BORROWING COSTS IN ENVIRONMENTS. SO THE SHORT TERM IS THERE, BUT THEY ARE LOOKING TO BUY THE TIPS EACH TIME NASDAQ GOES DOWN BECAUSE THIS IS EXACTLY WHAT THEY THINK IS GOING TO HAPPEN. NOT ONLY THAT TECHNOLOGY WILL BENEFIT, BUT AI PRODUCTIVITY GAMES WILL ECHO THROUGH INDUSTRIES AND WILL HELP INDICES AND THE ECONOMY GROW BIGGER, FASTER AND MORE STABLE. ED: THANK YOU VERY MUCH, INDEED. WE ARE ALSO LOOKING AT THE U.S. LISTED SHARES SOFTER, SEVEN TENS OF 1%. THE TAIWANESE SHARES MODESTLY HIGHER. JUNE SALES ROSE 68% YEAR ON YEAR. WHAT THE STREET DID WAS PUT THAT INTO ITS MODEL FOR THE MONTH OF JUNE AND TRIED TO WORK OUT WHERE THEY THINK THE JUNE QUARTER WAS. BLOOMBERG'S CALCULATIONS ARE THAT TSMC SALES JUMPED 36% AND THERE IS A LOT OF AI SPENDING MOMENTUM. U.S. SHARES MODESTLY LOWER. REMEMBER, TSMC REDUCES -- RELEASES QUARTERLY EARNINGS THIS THURSDAY. COMING UP, REGULATORS LIKE THE FCC ARE BECOMING A BIGGER PART OF THE PICTURE WHEN IT COMES TO THE SPACE RACE. FCC CHAIRMAN BRENDAN CARR JOINS US NEXT. THIS IS "BLOOMBERG TECH." ♪ ED: THE SEATTLE SEAHAWKS ARE ABOUT TO GET A NEW OWNER. A GROUP THAT WILL PURCHASE THE SUPER BOWL CHAMPIONS, FEEDING OUT REPORTED BIDDERS AND FORMER BOSTON CELTICS OWNER. THE DEAL VALUED AT $9.6 BILLION IS EXPECTED TO SET AN NFL RECORD. REGULATORS ARE INCREASINGLY SHAPING AMERICA'S SPACE RACE. THE FCC DECIDES WHO GETS ACCESS TO SPECTRUM, APPROVE SATELLITE COMMUNICATION SYSTEMS AND IS NOW CONFRONTING THE NEXT FRONTIER OF THE SPACE ECONOMY FROM ORBITAL DATA CENTERS TO DIRECT TO DEVICE CONNECTIVITY. JOINING US NOW IS FCC CHAIRMAN BRENDAN CARR TO DISCUSS THE FUTURE OF SPACE COMMUNICATION SPECTRUM, WIRELESS POLICY BEFORE RETURN TO SOME OF THE MAJOR MEDIA ISSUES FACING THE COMMISSION. CHAIRMAN CARR, THANK YOU SO MUCH FOR BEING BACK ON BLOOMBERG TECH. SHALL WE START WITH THE MORE NASCENT AREA OF THE BUSINESS PLAN? WHICH IS ORBITAL DATA CENTER. I THINK A LOT OF VALUE TO THE AUDIENCE AND TO AMERICANS IS COULD YOU JUST EXPLAIN HOW THE SEC REGULATE ORBITAL DATA CENTER? WHY IT HAS A ROLE IN OVERSIGHT OF HOW MUCH MATERIAL WILL BE IN ORBIT ABOVE THE EARTH? >> AT THE SEC AND FRANKLY ALL ACROSS THE TRUMP ADMINISTRATION, WE ARE FOCUSED ON TWO THINGS. ONE, WE WANT TO MAKE SURE THAT CONSUMERS ARE RIGHT AWAY FEELING A DIFFERENCE IN THEIR LIFE AND RIGHT AWAY WE ARE FEELING THAT IN THE CONDUCTIVITY FRONT WHEN SPEEDS ARE UP, PRICES ARE DOWN, COMPETITION IS INTENSIFYING. BUT THE SECOND PIECE GOES TO YOUR QUESTION WHICH IS WHAT ARE THE FUNDAMENTAL REGULATORY CHANGES WE CAN DO TO PAY OFF CONSUMERS IN THE LONG RUN? A LOT OF THAT HAS TO DO WITH THE EMERGING SPACE ECONOMY. WE ARE SEEING MANY, MANY MORE THINGS GO INTO ORBIT, WHETHER IT IS ALL OF THIS NEW GENERATION OF LOWER ORBIT SATELLITES OR DATA CENTERS, SO THE FCC HAS A ROLE TO PLAY TO MAKE SURE THAT EVERYONE HAS THE SPECTRUM ACCESS THEY NEED IN ORDER TO LAUNCH THOSE, BUT EVEN THINGS LIKE ORBITAL DEBRIS AND THAT HANGING OFF OF THE A LOT OF THE AUTHORIZATIONS AND CORE THAT IS IN CONJUNCTION WITH A BROADER GROUP OF REGULATORS AS WELL. ED: WHEN SPACEX OR ANOTHER PLAYER COMES TO THE FCC SEEKING APPROVAL TO DEPLOY DATA CENTERS INTO ORBIT, WHAT ARE THE CONSIDERATIONS BY WHICH THE FCC DECIDES APPROVAL? >> THE FIRST THING FOR US AS WE WANT TO GO MUCH MORE QUICKLY. WHAT WE CALL THE BUILD AMERICA AGENDA. AND A KEY PIECE OF THAT IS BOOSTING AMERICA'S SPACE ECONOMY. IT USED TO BE WE WOULD GET ONE OR TWO OR THREE A YEAR OF INDIVIDUALIZED, THE SPOKE CUSTOMER REVIEWS AND WHAT WE ARE FUNDAMENTALLY CHANGING IS AN ASSEMBLY-LINE MINDSET. IN FACT WE ARE GOING TO VOTE THIS MONTH TO CHANGE HOW WE RUN OUR OPERATIONS SO THE OBJECTIVE CRITERIA, IF YOU HIT THOSE YOU SHOULD EXPECT MUCH FASTER FCC APPROVAL. IN FACT WE CUT THE BACKLOG DOWN BY ABOUT HALF. BY ABOUT HALF, MOVING MUCH FASTER. WE ARE GIVING PEOPLE OBJECTIVE CRITERIA TO HIPS SO WE CAN END UP IMPROVING HUNDREDS OF THOUSANDS OF APPLICATIONS, WHEREAS BEFORE OUR PROCESSES WOULD TAKE US MONTHS OR YEARS TO DO A HANDFUL OF THAT. ED: AWAY FROM ORBITAL DATA CENTERS, BIG FOCUS IS WIRELESS NETWORKS IN THE CONTEXT OF SPACE. PRIOR ITERATIONS OF THE FCC LOOKED AT A FOURTH NATIONAL WIRELESS NETWORK WITH ECHOSTAR. I THINK I'M RIGHT IN SAYING THAT YOU WERE CRITICAL OF PRIOR APPROACHES TO THAT FUTURE MARKET. WHAT HAS HAPPENED IN THE INTERIM IS THAT THE FCC HAS HANDED SOME OF THOSE SAME LICENSES TO SPACEX FOR STARLINK. WHAT DO WE INTERPRET THROUGH THAT MECHANISM? BRENDAN: YOU ARE RIGHT, THERE WAS A MINDSET SO YEARS AGO THAT SAID WE HAD TO HAVE FOUR SEPARATE, STAND-ALONE MOBILE WIRELESS PROVIDERS LET ALONE MANY OTHER COMPETITORS WE HAVE IN THE BROADER CONNECTIVITY MARKET. PEOPLE SAID IF YOU DIDN'T HAVE FOUR CAR PRICES WOULD RISE FOR CONSUMERS OR SPEED WOULD SLOW DOWN. WE HAVE NOT SEEN THAT AT ALL. WE HAVE COMPLETED THE PROCESS OF ACQUIRING DISH ECHOSTAR, EXITING THE MARKET WHEN IT COMES TO WIRELESS, AND CONSUMERS BENEFIT FROM LOTS OF PRESS COMPETITION. IT'S A GREAT TIME FOR CONSUMERS. IT'S ALSO A GREAT TIME FOR COMPANIES BECAUSE WE ARE TAKING THE UNNECESSARY COSTS OUT OF THE SYSTEM. WHETHER IT IS PERMITTING REFORM, ALLOWING THEM TO RETIRE THESE OLD COPPER NETWORKS THEY HAD TO SUBSIDIZE IN ADDITION TO THEIR NEW NETWORKS. THIS OLD VIEW OF HAVING FOUR MORE THIS PROVIDERS OR THE SKY WOULD FALL, WE DIDN'T BUY, AND THE EVIDENCE IS COMING IN THAT THIS NEW THEORY IS CORRECT. ED: YOU TOLD BLOOMBERG LAST WEEK THAT YOU HAVE NOT HAD SUBSTANTIAL CONVERSATIONS WITH SPACEX ABOUT THEIR WIRELESS AMBITIONS, SUBSTANTIAL CONVERSATIONS. HAVE YOU HAD ANY CONVERSATIONS OF ANY DEGREE OF SUBSTANCE WITH SPACEX ABOUT IT? BRENDAN: I DON'T THINK MUCH. IF I WOULD HAVE NOT USED FOR SUBSTANTIAL, I WOULD HAVE AVOIDED THOSE FOLLOW-UP QUESTIONS. ONE OF THE THINGS WE ARE REALLY EXCITED ABOUT IS THIS NEW EMERGING TREND TOWARD DIRECT TO SOUL TECHNOLOGY, WE CAN GO STRAIGHT FROM ONE OF THESE LOW EARTH ORBIT SATELLITES TO A HANDHELD. STARLINK IS DOING THAT, WE HAVE FACILITATED THEM GETTING SPECTRUM TO DO IT. WE WON EVERY SINGLE COMPETITOR IN THIS AREA TO DO WELL. ED: OVER ALL THE FCC HAS DONE A QUITE LARGE BODY OF WORK TO COME UP WITH SOME REGULATORY FRAMEWORK FOR DIRECT TO DEVICE. THE ACCUSATION IS MAYBE THEY WERE TO SOME TOWARD SPACEX. YOU HAVE ALSO DENIED SEVERAL OF THEIR REQUESTS. HOW ARE YOU GOING ABOUT BUILDING OUT THAT FRAMEWORK? BRENDAN: A COUPLE OF THINGS, ON DIRECT TO SO IN PARTICULAR, OUR VIEW IS TO HAVE TWO OR THREE FACILITIES BASED PROVIDERS IN THAT SEGMENT SO THE UNITED STATES CAN LEAD THE WORLD AND THAT. IT'S REALLY IMPORTANT TO PRESIDENT TRUMP. THAT THE U.S. LEADS WHEN IT COMES TO THIS EMERGING TECHNOLOGY, AND WE ARE IN GOOD POSITION TO DO THAT. THERE ARE ALWAYS STORIES ABOUT THE FCC TAKING ACTION TO BENEFIT STARLINK OR SPACEX, IT RESULT IN MORE CLICKS, BUT WE ARE ELECTING EVERY SINGLE OPERATOR OR BUSINESS IN THE SPACE ECONOMY. WE ARE TAKING ACTIONS THAT BENEFIT AMAZON, MANY SMALLER PROVIDERS AS WELL. AST, SPACEX, AS WELL. THERE ARE MANY COMPANIES IN THE SECTOR BENEFITING FROM OUR NEW MINDSET AT THE FCC, WHICH IS TO GO FASTER WITH THESE APPROVALS. ED: WE ARE LIVE ON BLOOMBERG TELEVISION AND RADIO. THIS IS "BLOOMBERG TECH" SPEAKING WITH FCC CHAIRMAN BRENDAN CARR. THERE'S ALSO A TECHNICAL CONSIDERATION WITH SPECTRUM. WHY IS IT IMPORTANT FOR A DIRECT TO DEVICE PROVIDED TO HAVE EXCLUSIVE SPECTRUM USE AMONGST EVERYTHING ELSE HAPPENING OUT THERE? BRENDAN: IT'S A VERY EFFICIENT WAY TO OPERATE TO HAVE YOUR OWN SPECTRUM. WE HAVE BEEN VERY OPEN TO SPECTRUM DEALS. WE HAVE HAD ABOUT $130 BILLION OF DEAL FLOWS GO THROUGH THIS ADMINISTRATION ACROSS THE BOARD. WE ARE MOVING HARD ON SPECTRUM AS WELL, NOT JUST DIRECT TO SELL. WE ARE VOTING TO CREATE 160 MEGAHERTZ OR NEW SPECTRUM FOR MANY BAND OFFERINGS AND WHAT IS CALLED THE C BAND, WILL CREATE WHAT WE ARE CALLING A SUPER BAND, 440 MEGAHERTZ WIDE CHANNEL FOR MEN THEN SPECTRUM FOR 5G, 6G . YOU ARE RIGHT ON THE SATELLITE SIDE AS WELL. SPACEX HAS ACCESS TO 65 MEGAHERTZ OF SPECTRUM THAT THEY CAN USE FOR DIRECT TO SOUL. AMAZON IS LOOKING TO PURCHASE GLOBALSTAR WHICH ALSO HAS SPECTRUM, COULD BE USED FOR DIRECT TO CELL TECHNOLOGY. YOU ARE SEEING A LOT OF PLAYERS IN THE SPACE LOOKING TO OBTAIN THEIR OWN SPECTRUM RIGHTS SO THEY CAN STAND ALONE AND OFFER THAT SERVICE IN COMPLEMENT TO EXISTING CONNECTIVITY SERVICES. ED: JUST BEFORE THE SHOW STARTED, BLOOMBERG BROKE THE STORY THAT A GROUP OF A DOZEN STATES IS POISED TO BLOCK THE PARAMOUNT SKYDANCE WARNER BROS. DEAL. THEY WERE PRIOR REPORTING THAT VARIOUS ATTORNEYS ACROSS THOSE STATES WERE PREPARING FOR THAT ANYWAY. I KNOW THAT THE FCC HAS A NOMINAL ROLE TO LOOK AT THE FOREIGN FINANCING OF SUCH A DEAL, BUT I HOPE YOU APPRECIATE ME ASKING YOU WHAT THE LATEST IS THERE, YOUR REACTION TO THE ANTITRUST SUIT? BRENDAN: IT IS HARD TO SEE LEGITIMATE ANTITRUST ACTION, BUT I LEAVE IT TO THE EXPERTS TO WEIGH IN ON THIS. I THOUGHT IT WAS INTERESTING THAT THERE WAS A STATEMENT ATTRIBUTED TO THE CALIFORNIA ATTORNEY GENERAL WHO SAID THEY WOULD NOT SUE IF PARAMOUNT AGREED TO SPIN OFF CNN. IT IS HARD TO CONCEIVE OF A COMPETITION ANTITRUST THEORY THAT TAKES YOU ALL THE WAY UP TO THE POINT WHERE OWNING OR NOT OWNING CNN IS PART OF THAT BROADER GROUP AS A LEGITIMATE LINE THAT ANTITRUST OR COMPETITION LINE WOULD DROP. WE HAVE A PIECE WITH HIS BACK TO SOME OF THE FOREIGN INVESTMENT. WE ARE RUNNING A STANDARD PROCESS ON THAT, HAVE NOT MADE A FINAL DECISION ON THAT YET. ED: IN RECENT INTERVIEWS, YOU'VE ALSO BEEN ASKED OF COURSE ABOUT DISNEY. YOU HAVE SAID YOU HAVE NOT MADE A DECISION ABOUT WHETHER TO PULL DISNEY'S BROADCAST LICENSES OVER VARIOUS DIVERSITY AND INCLUSION PRACTICES. AGAIN, REMIND US OF THE FCC'S REMIT IN THAT AREA, WHAT IT WOULD TAKE FOR YOU TO LOOK AT A POTENTIAL ACTION? BRENDAN: WITH RESPECT TO DISNEY IN PARTICULAR, THE FCC HAS THREE PROCEEDINGS GOING ON, THREE BUCKETS OF ISSUES. ONE STARTING IN MARCH OF 2025, I WROTE A LETTER TO DISNEY LEADERSHIP RAISING CONCERNS ABOUT SOME OF THEIR PRACTICES INCLUDING WHAT WE CALL INVIDIOUS FORMS OF DEI DISCRIMINATION. EVIDENCE THEY MAY HAVE BEEN DISCRIMINATING WITH RESPECT TO PAY OR COMPENSATION, WORKPLACE OPPORTUNITIES BASED ON RACE, GENDER, PROTECTIVE CHARACTERISTICS. THERE IS A ROLE FOR THE FCC THERE. WE HAVE ROLES ON EEO POLICIES ON DISCRIMINATION. WE HAVE BEEN DOING SOME LETTERS OF INQUIRY, OUR VERSION OF SUBPOENA. OUR VIEW WAS THAT DISNEY WAS BEING DISINGENUOUS IN THE WAY IT WAS RESPONDING TO THE FCC'S INQUIRIES. WE TOOK THE NEXT STEP IN OUR ENFORCEMENT ABILITIES, WHICH IS TO CALL IN ALL OF DISNEY'S BROADCAST LICENSING FOR EARLY RENEWAL. DISNEY HAS TO APPLY AND DEMONSTRATE THEY HAVE BEEN OPERATING IN THE PUBLIC INTEREST. THERE HAVE BEEN PETITIONS TO DENY THE RENEWAL OF THOSE DISNEY STATIONS. THE FCC IS LOOKING AT ALL OF THAT CAREFULLY NOW. WE HAVE NOT MADE A FINAL DECISION, BUT AT THIS POINT, DISNEY IS ATTACKING TO DEMONSTRATE THAT IT SHOULD GET THOSE LICENSES RENEWED. WE WILL SEE WHAT THE RECORD SHOWS. A SEPARATE ISSUE GOING ON WITH DISNEY RIGHT NOW WITH RESPECT TO "THE VIEW" THEIR CLAIMS OF IT BEING A BONA FIDE NEWS PROGRAM. WE HAVE THOSE PROCEEDINGS GOING. MORE BROADLY, WE ARE TRYING TO HOLD ALL BROADCASTERS ACCOUNTABLE TO THEIR PUBLIC INTEREST STANDARD. WE HAVE ISSUED SIMILAR ACTIONS WITH RESPECT TO A NUMBER OF OTHER BROADCAST. FOR YEARS, PEOPLE TOOK THE IDEA THAT BROADCAST TV SHOULD BE TREATED LIKE CABLE OR PODCAST OR NEWSPAPER, BUT THAT IS NOT WHAT THE COMMUNICATIONS ACT AND CONGRESS SAID. WE WANT TO MAKE SURE ALL BROADCASTERS ARE LIVING UP TO THEIR PUBLIC INTEREST OBLIGATIONS. ED: FCC CHAIRMAN BRENDAN CARR, THANK YOU FOR JOINING US. APPLE AND OPENAI'S RIVALRY HAS ENTERED THE COURTROOM. APPLE FILED A TRADE SECRET LAW SUIT, ALLEGING IT ENCOURAGED FORMER EMPLOYEES TO BRING CONFIDENTIAL INFORMATION AND UNRELEASED HARDWARE AS A RAMPED UP ITS OWN DEVICE AMBITIONS. OUR APPLE MANAGING EDITOR MARK GURMAN IS WITH US. THROUGHOUT THE WEEKEND, YOU HAVE WRITTEN ABOUT WHAT THIS MEANS, THE LATEST PIECE FROM YOU IS WHAT IT MEANS FOR OPENAI'S HARDWARE REALLY THINK. WHAT DO WE NEED TO KNOW? MARK: IN MY VIEW, THIS WILL PUT TO A HALT THE IDEA THAT APPLE EMPLOYEES WHO ARE RIGHT NOW CONSIDERING JOB OFFERS FROM OPENAI, CONSIDERING APPLYING TO OPENAI, THEY WILL THINK TWICE ABOUT IT. IF THEY DON'T END UP GOING TO OPENAI, THE COMPANY LEADERSHIP IS NOT GOING TO BE PLEASED WITH THEM. IF THEY DO LEAVE, THEY WILL OPEN THEMSELVES UP TO ALL SORTS OF SCRUTINY AND POTENTIALLY BEING DRAGGED INTO LITIGATION DOWN THE ROAD. CERTAINLY A LOT OF RETHINKING OVER THERE. ED: THIS WAS OPENAI'S STATEMENT. WE HAVE NO INTEREST IN OTHER COMPANIES TRADE SECRETS. A DEFENDANT NAMED BY APPLE, FORMERLY AT APPLE, NOW OPENAI'S HARDWARE CHIEF. MARK: HE WAS THE VP OF PRODUCT DESIGN UNTIL 2024, SO ONE OF THE MOST SENIOR PEOPLE AT APPLE, GREETED THIS COMPANY WITH A FEW OTHER FOLKS. HE IS ALLEGEDLY TELLING PEOPLE TO BRING COMPONENTS OVER TO JOB INTERVIEWS. APPLE PRESENTS HIM AS THE RINGLEADER HERE, SO TO SPEAK. WE WILL SEE WHAT HAPPENS IN COURT ONCE THEY GO THROUGH DISCOVERY. WHAT I'M HEARING IS OPENAI IS STILL ON TRACK TO ANNOUNCE THE FIRST DEVICE THIS YEAR, SHIP IN 2027. WE WILL SEE WHAT ENDS UP HAPPENING. ED: MARK GURMAN, THANK YOU VERY MUCH. IT IS HALF TIME. COMING UP, JOE LONSDALE, PELLETIER CO-FOUNDER WILL JOIN US. IT WILL BE A WIDE-RANGING CONVERSATION. WE WILL GO PRETTY MUCH FOR THE REST OF THE SHOW. THERE ARE LOTS MORE NEWS STORIES AND MARKET MAKERS TO CHECK INTO. DON'T GO FAR. THERE IS MORE TO COME. THIS IS "BLOOMBERG TECH." ♪ ED: WELCOME BACK TO BLOOMBERG TECH. IT IS THE SECOND DAY OF TRADING FOR SK HYNIX'S ADR'S. AN AI-STOCK FUELED ROUTE ON MONDAY. EQUITY REPORTER HAS THE LATEST FRESH INTERVIEW WITH SK GROUP CHAIR CHEY. HE WANTED PRICE STABILITY IN THE ADR'S AND HAVE NOT QUITE GOT IT. WHAT ARE YOU LOOKING AT? >> THE ROUT IN SOUTH KOREA'S MARKET HAS SPILLED OVER INTO THE U.S. WITH SK HYNIX ADR'S DOWN. THE SOUTH KOREAN STOCK HAS FALLEN MORE THAN 30% AND IT ACTUALLY BROUGHT THE COMPANY'S MARKET CAP BELOW A KEY $1 TRILLION LEVEL THAT IT HIT AFTER A BLISTERING RALLY IN MEMORY STOCKS THAT WE'VE ALSO SEEN IN THE U.S. MARKETS. WE HAVE SEEN SK HYNIX DIP BELOW THAT LEVEL. ALSO WEIGHED ON SAMSUNG, BROUGHT THAT BELOW THE KEY MARKET CAP LEVEL. AND WE SEE MORE PAIN IN THE UNITED STATES AS WELL. NOT ONLY ARE WE SEEN SK HYNIX ADRS, BUT SHARES OF MICRON, WESTERN DIGITAL, SANDISK ALL FAL L. THE NASDAQ 100 IS DOWN. WE ARE SEEING A LOT OF PAIN COME OVER FROM THAT SOUTH KOREAN MARKET ROUT. ED: THANK YOU VERY MUCH. ALARM BELLS ARE RINGING IN WASHINGTON OVER CONCERNS THAT CHINESE FIRMS ARE TRAINING THEIR AI ON U.S. MODELS. THIS PROCESS KNOWN AS DISTILLATION CAN BE A COST-EFFECTIVE WAY TO MAKE NEW MODELS THAT PERFORM NEARLY AS WELL AS ADVANCED SYSTEMS BUT ON CERTAIN TASKS. MAGGIE EASTMAN HAS BEEN WRITING ABOUT THESE CONCERNS AND THE LATEST EDITION OF BLOOMBERG BUSINESSWEEK. THE MOST RECENT FLAG ON THIS FROM THE U.S. SIDE COMES FROM ANTHROPIC. TELL US ABOUT THAT. MAGGIE: ABSOLUTELY. ANTHROPIC SENT A LETTER TO THE WHITE HOUSE AND SEVERAL SENATORS ESSENTIALLY ACCUSING ONE OF ITS BIGGEST CHINESE COMPETITORS, ALIBABA, OF USING THIS TACTIC OF DISTILLATION WHICH IS HIGHLY TECHNICAL. AS WE NOTE IN THIS FEATURE PIECE, A LOT OF RESEARCHERS IN THE U.S. ALSO USE THIS TECHNIQUE. IT IS A BIT OF A THORNY PROBLEM FOR WASHINGTON TO TRY TO SOLVE, BUT THERE HAVE BEEN EARLY EFFORTS. ED: THROUGH LEGISLATION, THROUGH EXECUTIVE ORDER? WHAT IS THE MECHANISM THAT THE ADMINISTRATION IS LOOKING AT. MAGGIE: FOR NOW, THE WHITE HOUSE HAS RELEASED A MEMO SPECIFICALLY OSTP, THE WHITE HOUSE OFFICIAL SIGNED THIS MEMO ESSENTIALLY SAYING THE TRUMP ADMINISTRATION WAS GOING TO WORK TO SHARE MORE INFORMATION WITH THE CLOSE WEIGHT AI COMPANIES. ESSENTIALLY, THE U.S. WILL BE SHARING INFORMATION TO HELP THEM FIND USERS WHO ARE IMPROPERLY DISTILLING AND CRACKDOWN ON THAT ACTIVITY. THE AI COMPANIES WANT MORE ACTION FROM THE U.S. AND CURRENTLY PUSHING AND LOBBYING FOR SOME PROTECTION SO THAT THEY CAN SHARE MORE INFORMATION WITH EACH OTHER WITHOUT HAVING TO WORRY ABOUT ANY ANTITRUST PROSECUTIONS. ED: MAGGIE EASTLAND, THANK YOU. LET'S STICK WITH THE AI RACE AND HOW INVESTORS ARE APPROACHING IT. THE COFOUNDER OF PALANTIR IS HERE. WELCOME TO BLOOMBERG TECH. YOU HAVE SET A NUMBER OF TIMES THAT YOU BELIEVE THE U.S. IS STILL LEADING IN THE AI RACE BUT THERE ARE A NUMBER OF FACTORS TO CONSIDER. PARTICULARLY ON BIOTECH WHICH WE WILL GET TO LATER. TAKE THAT AND RUN WITH IT. YOUR CURRENT ATTITUDE TO THIS MARKET. JOE: YOU WERE JUST TALKING ABOUT DISTILLATION. CHINA HAS BEEN VERY GOOD AT DOING WHATEVER THEY CAN TO COPY AND STEAL OUR IP AND TRADE SECRETS.THIS IS NO DIFFERENT . WE ARE SIGNIFICANTLY AHEAD IN A WORLD WHERE THE AGENTS ARE DOUBLY CAPABILITIES EVERY FEW MONTHS. THAT'S A VERY LARGE GAP, WHICH MEANS WE ARE AWARE ARE HEADED IN CYBER AND OTHER CRITICAL AREAS THAT WILL ALLOW US TO COMPETE WITH CHINA. IT IS A GREAT SPOT WE FIND OURSELVES IN. I THINK IT IS ALMOST SILLY TO EXPECT WE CAN STOP THEM FROM STEALING. IT WILL BE UP TO THESE COMPANIES TO FIGURE OUT HOW TO STOP THESE ATTACKS. ED: YOU'RE A VENTURE INVESTOR BUT ALSO A ENTREPRENEUR, FOUNDER. IT IS INTERESTING TO READ REMARKS FROM PALMER LUCKEY SAYING STOP PATTERNING THINGS -- PATENTING THING, BECAUSE THEN IT BECOMES VULNERABLE TO THEFT. JOE: YOU ARE JUST EDUCATING OUR ADVERSARIES.. THE PATENT OFFICE IS COMPLETELY BROKEN. YOU WILL HAVE IN CHINA -- IN BIOTECH, YOU KIND OF HAVE TO PATENT CERTAIN THINGS. YOU DON'T WANT SOMEONE ELSE TO BE ABLE TO SELL THAT MOLECULE, BUT CHINA WILL WITHIN 24 HOURS, SOMEONE IN CHINA WILL SEE A NEW TARGET, THEY WILL SEE THE RESULTS AND START THEIR OWN PROGRAMS. EVEN FILE OTHER PATENTS THAN SELF -- THEMSELVES. SIMILAR BUT DIFFERENT IN THE WHOLE THING IS A MESS RIGHT NOW. ED: YOU ARE VERY FOCUSED ON BIOTECH IN THE CONTEXT OF U.S. VERSUS CHINA. WHO HAVE SOME STRONG FEELINGS. WHAT IS THE CORE OF YOUR CONCERN? JOE: OBVIOUSLY, WE WORK IN DEFENSE, HEALTH CARE AND OTHER AREAS. BIOTECH IS A VERY EXCITING RIGHT NOW BECAUSE AI WILL ALLOW US TO CURE A LOT OF DISEASES. IT IS ALREADY MAKING BIG BREAKTHROUGHS. IT IS ONE OF THE MOST EXCITING NEW AREAS BUT SICK -- CHINA HAS SUCCESSFULLY BEEN STEALING OUR SECTOR OVER THE LAST SEVEN YEARS. WE'VE GONE FROM BEING THE VAST NEW VAST MAJORITY OF THERAPEUTICS AND NEW DRUGS AND NOW CHINA HAS COME UP TO WELL OVER ONE THIRD, IN SOME CASES MORE THAN A HALF. THEY ARE BASICALLY TAKING OVER THE SECTOR. IT WOULD BE ONE THING IF THEY ARE PURELY DOING THIS ON A COMPETITIVE BASIS. PEOPLE ARE REALLY TALENTED AND DOING IT COMPETITIVELY, THAT IS FAIR. IT IS NOT LIKE THAT. IT IS TAKING U.S. FIRMS, INVESTORS AND GETTING THEM TO DO THINGS CHEAPER AND BETTER. IN CHINA, IT IS STEALING THINGS USING THE PATENT OFFICE, USING PHD FOR PEOPLE THAT COME OVER HERE AND SEND THINGS BACK. IT IS A VERY ACTIVE RAPE OF THE SECTOR AND EXCESSIVE BY THE FACT THE FDA IS SLOW. IN CHINA, IF YOU WANT TO TAKE A DRUG TO A PHASE ONE TRIAL, AND SOME PLACES YOU CAN DO IT RIGHT AWAY, AND IN SOME PLACES IT IS 90 DAYS. IN THE U.S. COME OVER 700 DAYS. WE HAVE TO ACCELERATE THIS IF WE ARE GOING TO COMPETE. ED: I THINK YOU WROTE RECENTLY THAT AMERICA NEEDS TO BEAT CHINA AND UNLEASHED YEARS. HOW IS YOUR ACTIVITY REFLECTING THAT? WHAT IS IN THE PORTFOLIO THAT YOU THINK YOU ARE SUPPORTING TO ENABLE THAT? JOE: THERE IS SO MUCH EXCITING STUFF GOING ON. WE HAD GREAT NEWS THE LAST COUPLE OF WEEKS. GOING THROUGH PHASE ONE PHASE II AND PHASE THREE, AND THE DATA WAS SO STRONG THAT GOT THROUGH IT A LITTLE FASTER THAN NORMAL. ABLE TO DO BONE MARROW GRAFTS . THIS ALSO HAS LOTS OF POTENTIAL APPLICATIONS AGAINST AUTOIMMUNE DISEASES LIKE MULTIPLE SCLEROSIS. THERE'S A LOT OF OTHER STUFF WE ARE DOING WITH AI AND ANTIBODIES, ANTIBODY PLATFORMS. JUST A LOT OF NEW DISCOVERIES BEING MADE. THE PROBLEM IS IF WE HAVE A NEW DISCOVERY MADE, WE ARE CONFIDENT IT WILL SAVE A LOT OF LIVES BUT IF WE INVEST IN IT AND CHINA GOES FASTER, IT STOPS HER ABILITY TO INVEST. I WANT THE ABILITY TO MAKE PROFITABLE INVESTMENTS OR BUSINESSES ARE MADE IN THE U.S. AND NOT SENT TO CHINA. ED: WE MADE HER AN INTERESTING POINT ABOUT OVERSIGHT. WE HAD THE FCC CHAIRMAN BRENDAN CARR TALKING ABOUT REGULATING SPACE. IN THIS CASE, IT IS THE FDA AND HOW MUCH YOU FEEL THE FDA SHOULD HAVE DIRECT OVERSIGHT OF HOW AI IS USED IN THAT FIELD. JOE: I THINK THERE'S A SPECTRUM HERE. I AM NOT SOME KIND OF RADICAL THAT WANTS A NARCO CAPITALISM AND NO GOVERNMENT. EUROPE HAS GONE WAY TOWARDS SAFETY-ISM, A CULTURE OF PROCEDURE IS AWARE NOTHING GETS DONE AND EVERYONE ATTACKS NEW THINGS. ED: YOU MEAN THE REGULATORY PERSPECTIVE? JOE: NONE OF THE BOTTLE CAPS COME OFF AS THEIR BIG INNOVATION. EVERYTHING IS VERY SLOW AND THEY'VE HAD FAR FEWER BIG WINS BECAUSE OF THAT. THAT IS OBVIOUSLY A FAILURE CASE. I'M NOT ARGUING TO GO ALL THE WAY TO NO REGULATION, BUT RIGHT NOW FDA IS VERY SLOW, VERY UNACCOUNTABLE. IT IS LIKE A MAFIA THAT IF YOU CRITICIZE IT TOO MUCH, THEY MIGHT DECIDE TO MAKE YOU WAIT A YEAR. IT IS UNACCOUNTABLE, UNCHECKED POWER. WE SHOULD NOT HAVE THAT IN A FREE SOCIETY. WE SHOULD HAVE MULTIPLE BODIES THAT CAN COMPETE AND HELD ACCOUNTABLE TO GO FASTER. ED: LET'S GO BACK FROM THE FOCUS OF THE VERTICAL OF BIOTECH TO AI IN AMERICA BROADLY. WHERE DO YOU SEE AMERICA'S BIGGEST ADVANTAGE RIGHT NOW? JOE: OUR BIGGEST ADVANTAGE IS THAT WE ARE STILL, LIKE THE MOST FREE SOCIETY WITH PROPERTY RIGHTS AND CHECKED POWER, AND THE ABILITY TO HAVE WHAT WE CALL CREATIVE DESTRUCTION. WHEN WE COME UP WITH THE NEW TECHNOLOGY, THIS A LOT OF NEW POSSIBILITIES FOR HIGHER PRODUCTIVITY IN EVERY INDUSTRY WITH THIS AI WAVE. IT IS CHANGING HOW INDUSTRIES WORK. WE DO HAVE IN SOME AREAS TOO MUCH REGULATION, BUT WE STILL HAVE A SOCIETY UNLIKE CHINA WHERE IT WILL BE MUCH EASIER TO REDO OUR INDUSTRIES AND SHIFT UP IN A WAY THAT ARE MUCH MORE PRODUCTIVE. NOT ONLY ARE WE AHEAD IN AI, WE ARE ALSO AHEAD IN DEPLOYING IT TO A BUNCH OF AREAS FOR ED: LATER, WE WILL ZERO IN ON DEFENSE TECH. YOU COFOUNDED PALANTIR IN 2003. JOE: THAT'S RIGHT. ED: TAKE THAT EXPERIENCE SPECIFICALLY TO AI, SOFTWARE SIDE. HOW DOES THIS ADMINISTRATION FACILITATE SUCCESS DIFFERENTLY TO PRIOR ADMINISTRATIONS? WHAT IS YOUR EXPERIENCE PRESENT DAY 2026 VERSUS WHAT IT WAS LIKE WHEN YOU GUYS STARTED PALANTIR AND TRYING TO GET THIS INTO THE REAL WORLD, SOFTWARE ITSELF? JOE: DEFENSE IN AMERICA IS NOT A VERY PARTISAN THING WHICH IS GREAT. THIS IS NOT A QUESTION EVEN ABOUT THIS ADMINISTRATION, WHICH IS DOING A GREAT JOB, BUT THAT SHIFT IN THE MINDSET OF THE PENTAGON WHICH HAS BEEN REFLECTED OVER THE LAST SEVERAL YEARS. YOU HAVE SEEN THAT VOLUNTEER AND SPACEX AND ANDURIL BROKE THROUGH AND WHEN THEY DID AND SHOWED BETTER SOLUTIONS, IT WAS 10 TIMES BETTER THAN BEFORE, THE ADMIRALS, GENERALS LEARNED WE CANNOT KEEP GIVING THESE GIANT DOCUMENTS WRITTEN BY RAYTHEON AND LOCKHEED AND OTHER PRIMES, THE FULL POWER TO BLOCK EVERYONE ELSE. WE HAVE TO SAY LET'S HAVE MORE OF A COMPETITION. LET'S LET IN NEW POSSIBILITIES. YOU ARE SEEING THAT CULTURAL SHIFT HAPPEN OVER THE LAST FIVE OR SIX YEARS. I HAVE FRIENDS LIKE THE UNDERSECRETARY, PEOPLE LIKE FEINBERG AND THE SECRETARY WHO ARE BEING BOLDER. YOU ARE SEEING THE CULTURE OF THE WHOLE PLACE HAS BEEN MOVING IN THE RIGHT DIRECTION FOR YEARS. ED: WE WILL RETURN TO THAT CONVERSATION ON DEFENSE TECH AND A LITTLE BIT. JOE LONSDALE STICKS WITH US. WE WILL BE RIGHT BACK. THIS IS "BLOOMBERG TECH." ♪ WE ARE BACK WITH JOE LONSDALE, MANAGING PARTNER AT 8VC. BIG RECENT NEWS IS THAT YOU RECENTLY CLOSED A $1.5 BILLION FUND, THE LARGEST TO DATE. I DON'T THINK YOU SO VERY MUCH MORE ABOUT THE FUND THEN WHAT IS IN THE POST ON THE SCREEN. TIME BEING, WHAT FOR? JOE: WE ARE IN THE MIDDLE OF THE MOST EXCITING INDUSTRIAL REVOLUTION IN A LONG TIME IN THE UNITED STATES. WE'VE HAD OUR BEST COUPLE OF YEARS EVER AT THE FIRM. THERE IS A LOT OF THINGS HAPPENING THAT ARE POSSIBLE NOW THAT WERE NOT POSSIBLE A COUPLE YEARS AGO IN THE ECONOMY. PALANTIR, AS AN EXAMPLE, BEFORE AI, WORTH 30 OR 40 BILLION DOLLARS. NOW, VALUED AT OVER THREE HUNDRED BILLION DOLLARS. THIS IS A 10 X BEAR WAVE THAT BIGGER WAY THAN ANYTHING WE HAVE SEEN BEFORE. WE HAVE COMPANIES ACROSS THE BOARD GROWING 5, 10 X ACROSS THE YEAR. IT IS REALLY FUN. ED: AT WHAT STAGE DO YOU PRINCIPALLY DEPLOYED OUT, HOW DO THINGS ACROSS YOUR DESK? I ALWAYS FIND THAT PART INTERESTING, HOW YOU FIND THEM. JOE: THIS IS OUR SEVENTH CORE FUND. 30% OF OUR MONEY GOES TO WAR THINGS THAT WE HELP FOUND AND BUILD OURSELVES. COMPANIES LIKE SARONIC, COMPANIES AND HEALTH CARE, LOGISTICS, OTHER AREAS AS WELL. WE USUALLY SEED SERIES A, B, WE ARE EARLIER SERIES INVESTORS. BUT WE COULD BE DOING 50 OF THAT FROM THE FUND. $1.5 BILLION FUND VENTURE TODAY. IT'S LIKE HAVING A $400 MILLION FUND A DECADE AGO IN TERMS OF HOW MUCH YOU DO, THE SIZE. IF SOMEONE WERE TO TELL ME 15 YEARS AGO, 1.5 BILLION DOLLAR FUND, THAT IS SO MUCH MONEY. NOW IT'S A REASONABLY SIZED VENTURE FUND. ED: I APPRECIATE THERE IS VALUE INDISCRETION, BUT WHAT DO THE LPS ASK YOU ABOUT, INTERESTED ABOUT NAI, WHAT THEY'RE INVESTING BECAUSE THEY WANT EXPOSURE TO SOMETHING SPECIFIC? JOE: IT IS ALWAYS UNCLEAR IF I'M ALLOWED TO BOAST OF WHAT WE DO, BUT IF YOU'RE HITTING THINGS OUT OF THE PARK -- WE ARE LUCKY ENOUGH TO WORK WITH PALMER LUCKEY, A LONG LIST OF THINGS THAT ARE WORKING VERY WELL IN OUR PORTFOLIO, BOTH IN DEFENSE, AI. COGNITION LAST YEAR, ONE THE MOST IMPORTANT AI COMPANIES. THREE ROUNDS SINCE WE GOT IN A YEAR AGO. THINGS THAT HAVE BEEN NO IN A YEAR. IT FEELS LIKE THE PACE HAS SPED UP. ONLY A CERTAIN NUMBER OF FIRMS ARE INVOLVED CONSISTENTLY IN A BUNCH OF THE TOP COMPANIES. YOU END UP BEING VERY OVERSUBSCRIBED. ED: SCOTT IS A REGULAR ON THE SHOW, YOU ARE A VISITOR TO SAN FRANCISCO. NEAR THE BROADWAY TUNNEL THERE IS A BUS STOP THAT SAYS DEVON, BUT IT WORKS BETTER NOW. JOE: IT KEEPS GETTING A LOT BETTER, IT'S REALLY GOOD. ED: HOW THESE COMPANIES, FROM A SMALL STARTUP HAD GROWN QUICKLY, BUT GOT THEMSELVES INTO THE CULTURE OF WHAT IS HAPPENING IN INDUSTRY. JOE: I AM WORKING WITH THESE ENTREPRENEURS. I AM 43 NOW, SO I HAVE TO WORK WITH DIFFICULT, YOUNG PEOPLE, WHICH I WAS 20 YEARS AGO. NOW THESE COMPANIES ARE GROWING TO BILLIONS IN REVENUE AND THREE OR FOUR YEARS. ONE OF THE ENTREPRENEURS WE ARE WORKING WITH OUR DUBLIN REVENUE EVERY QUARTER. -- DOUBLING REVENUE EVERY QUARTER. IT IS REALLY FUN. THIS IS STUFF THAT YOU COULDN'T HAVE DONE BEFORE. ED: YOU SAID YOU ARE COMING OFF OF THE BACKUP TO A VERY GOOD YEARS AT THE FIRM. WHAT DO THE EXITS LOOK LIKE? YOU TALK ABOUT RETURNS AS REALIZED THROUGH AN EXIT? JOE: THERE IS BOTH. WE ARE BIG INVESTORS IN XAI, SPACEX, HAPPY TO BE INVOLVED IN THAT. VERY BULLISH ON THAT, HOLDING ONTO THAT FOR A LONG TIME. ELON IS RIGHT, IT COULD BE BIGGER THAN THE ECONOMY OF THE EARTH. WE ARE INVESTED IN ALL SORTS OF THINGS AI THAT ARE LIKELY TO GO PUBLIC. WE HAVE OTHER THINGS THAT WE INVESTED IN THAT HAVE HIGH MARGINS. IT IS A SPECTRUM. I DON'T PLAN ON EXITING OUR VERY BEST DEFENSE POSITIONS FOR THE MOST PART. THESE ARE THINGS THAT YOU COULD EXIT, SELL THE ENTIRE AND A ROLL, SARONIC POSITION, BUT WE WILL NOT DO THAT FOR NOW. ED: I WANT TO ASK A MORE ACADEMIC QUESTION. EVERYONE IS THAT WE HAVE MOVED FROM SOFTWARE IT IN THE WORLD TO KNOW HARDWARE EATING THE WORLD. DOES THAT REFLECT WHERE 8VC IS CURRENTLY POSITIONED, OR DO YOU THINK THERE IS STILL A WORLD FOR BOTH AS AN INVESTOR? JOE: I AM FOCUSED ON HOW WE BRING MORE MANUFACTURING TO THE U.S., AND THAT WILL BRING MORE AI AND HARDWARE. WE HAVE A LOT MORE TO BUILD HERE. WE HAVE SOME OF OUR COMPANIES WORKING ON THAT PROBLEM. IN GENERAL WE ARE FOCUSED ON PRODUCTIVITY AND OUTCOMES. YES, HARDWARE IS IMPORTANT, BUT YOU HAVE A $5 TRILLION A YEAR WAGE AND SERVICE INDUSTRY IN THE U.S. WE CAN MAKE THOSE OUTCOMES TWO OR THREE TIMES MORE PRODUCTIVE, THAT WILL BE A MULTI TRILLION DOLLAR WEALTH CREATION. HARDWARE IS IMPORTANT BUT I WOULD NOT IGNORE OUTCOMES FROM THESE OTHER INDUSTRIES THAT WE ARE TRANSFORMING NOW. ED: WE HAVE A STORY OUT OF EUROPE. HELSING HAS CLOSED A $1.8 BILLION AROUND, DEMONSTRATING INVESTORS CONTINUED INTEREST IN THE REGIONS DEFENSE FIRMS, ONGOING WAR IN UKRAINE. INVESTORS INCLUDE GOLDMAN SACHS, J.P. MORGAN CHASE. THEY SAY THE COMPANY REMAINS PREDOMINATELY EUROPEAN OWNED. LET'S FOCUSING ON DEFENSE TECH. I THINK YOU GUYS -- JOE: MY GOOD FRIEND JEANETTE WAS AN EARLY INVESTOR THERE BEFORE SHE WAS AT GC. WE ARE FANS OF THEM. ED: THE ECOSYSTEM IS A LOT OF PEOPLE THAT KNOW EACH OTHER. JOE: I'M LUCKY TO HAVE ALL OF THESE PEOPLE THAT HELP ME BUILD PALANTIR, OTHERS BUILDING AND RUNNING A LOT OF THESE DOZENS OF TOP COMPANIES NOW. IT DOES TEND TO COME FROM A SMALL NUMBER OF PLACES. ED: YOU TALKED A LITTLE BIT ABOUT HOW THERE IS NO PLANNED FOR SOME TIME TO GET OUT OF ANDURIL, SARONIC. SARONIC, IN THE HERE AND NOW, THERE WAS NEWS, CAN YOU EXPLAIN IT TO US? EXPLAIN WHAT THEY ARE DEMONSTRATING IN THE VIDEO? JOE: CENTCOM JUST PUT THIS OUT. I CAN ONLY SAY WHAT IS PUBLIC. THEY SAID THERE WERE THREE CORSAIRS INVOLVED IN THE ATTACK. THESE ARE UNMANNED DRONES. THESE WERE THE SAME ONES THAT SAVE THE PILOTS IN THE ST STATE OF HORMUZ. IN THIS CASE, THEY ARE BEING USED IN AN ATTACK. THERE ARE THREE OF THEM. IMAGINE WHAT YOU CAN DO WITH HUNDREDS OF THEM. ED: SARONIC IS THE BIGGEST POSITION, INDIVIDUAL COMPANY? JOE: WE HAVE QUITE A FEW LARGE POSITION BUT SARONIC WE COFOUNDED. ED: THAT IS WHAT YOU EXPLAINED, A FORMAT DIFFERENCE. JOE: 30% OF OUR MONEY GOES TO COMPANIES THAT WE BUILD. THEY BUILT AN AMAZING TEAM OF TOP TALENT IN AUSTIN, TEXAS. SO MANY PEOPLE IN AI, HARDWARE, PEOPLE THAT HAVE EXPERIENCE AT TESLA AND OTHER PLACES. IT IS ONE OF THE MOST IMPORTANT DEFENSE COMPANIES IN THE U.S. ED: COULD I ASK FOR YOUR ASSESSMENT ABOUT HOW SECRETARY HEGSETH HAS OR HAS NOT CHANGED THE RELATIONSHIP BETWEEN THE PENTAGON, DEPARTMENT OF WAR, HOW IT WORKS WITH STARTUPS ESSENTIALLY, NOT JUST THE PRIVATE SECTOR? JOE: IT'S BECOME MORE OBVIOUS TO THE LEADERSHIP AND THE PENTAGON THAT THE VERY TOP STARTUPS ARE WAY AHEAD OF THE PRIMES AND A BUNCH OF AREA. THEY HAVE SHIFTED THINGS. HE HAD BEEN BALD ABOUT THIS. TO FOCUS ON FAIR COMPETITION, TO LET OTHERS PROVE THEY CAN CREATE DESIGNS. WHAT WAS HAPPENING BEFORE, THE INCENTIVES WERE TO CREATE VERY EXQUISITE DESIGNS THAT WERE VERY EXPENSIVE. YOU MIGHT BE ABLE TO BUILD THE BEST THING IN THE WORLD BUT IT IS 100 TIMES MORE EXPENSIVE. BUT OTHERS HAVE DEMONSTRATED IS ACTUALLY THERE ARE DESIGNS THAT YOU CAN MAKE 1000 MORE FOR THE SAME COST AND MANY TIMES EVEN BETTER. ED: ONE OF THE THINGS THAT WE'VE BEEN TRACKING, DECLASSIFIED, A LOT OF IT STILL GOES TO LOCKHEED. BUT DO YOU SEE IT CHANGING, THE PROPORTION? JOE: PEOPLE DON'T REALIZE WE ARE STILL THE LITTLE KIDS IN SOME WAYS. IT IS GROWING FROM A SMALL BASE, GROWING QUICKLY, AND YOU ARE STARTING TO SEE VERY IMPORTANT CONTRACTS CHANGING THE NATURE OF WARFARE AND WHAT'S POSSIBLE WITH THE NEW COMPANIES. BUT THE VAST MAJORITY OF MONEY IS STILL CAPTURED BY THE PRIMES. THEY HAVE THESE CONGRESSIONAL DISTRICTS LOCKED DOWN WHERE THEY ARE PRODUCING THINGS IN 49 STATES, WHERE THEY AUTOMATICALLY GET THE CONTRACT EVEN IF THEIR STUFF SUCKS BECAUSE IT'S A JOB PROGRAM. SLOWLY, CONGRESS IS WAKING UP AND SAYING IT SHOULDN'T JUST BE ABOUT A JOBS PROGRAM. THERE ARE BAD GUYS IN THE WORLD. WE HAVE TOO MUCH DEBT IN THIS COUNTRY. ED: IN THE LAST 45 SECONDS COME THE NEXT FRONTIER IN DEFENSE TECH, THE SPECIALIST AREA THAT ARE MOST FOCUSED ON? JOE: THERE IS A LOT OF STUFF GOING ON WITH MASSIVE PRODUCTION OF DRONES OVER LAND, THE SEA, IN THE AIR WITH SO MANY COMPANIES, AND IN SPACE, AS WELL. HOW WE COUNTER THAT WITH NEW FORMS OF HIGH-POWER MICROWAVE, OTHER TYPES OF ELECTRONIC WARFARE, THERE ARE LOTS OF ADVANCES BEING MADE. REALLY IMPORTANT TO ENGAGE AND STAY AHEAD OF THE BAD GUYS. ED: JOE LONSDALE, COFOUNDER OF PALANTIR. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." ANOTHER LOOK AT MARKETS. THIS IS WHAT WE HAVE LOOKED LIKE FOR MOST OF THE MORNING SESSION. CHIP STOCKS LEADING THE OTHER CLIENTS. NOT AS SEVERE AS THEY WERE IN THE KOREAN TRADING SESSION. THEY PRICE OF THOSE ADRS AT 149. A REMINDER FOR THURSDAY, WE HAVE AN EXCLUSIVE CONVERSATION WITH RYAN COHEN, THE CEO OF GAMESTOP, WHICH WITHDREW A BONUS PLAN WHICH COULD HAVE PAID HIM $35 BILLION. SO THE COMPANY CAN FOCUS ON A BID FOR EBAY. THAT WILL BE AROUND 11:30 EASTERN TIME. A LOT TO RECAP ON THE SHOW, AN EXTENDED CONVERSATION WITH SEC CHAIR BRENDAN CARR, EXTENDED CONVERSATION WITH PALANTIR CO-FOUNDER JOE LONSDALE. FIND IT ON THE POD. WHAT A WAY TO START THE WEEK. SEE YOU TOMORROW. THIS IS "BLOOMBERG TECH." ♪