Marvell, Google Deepen Ties in AI Chip Race | Bloomberg Tech 8/19/2026

>> "BLOOMBERG TECH" HIS LIVE FROM THE HEART OF SILICON VALLEY, WITH ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECH." MARV L AND GOOGLE EXPAND THEIR PARTNERSHIP FOR CHIP DEVELOPMENT, GIVING THE SEARCH GIANT THE RIGHT TO BUY AS MUCH AS $12 BILLION IN STOCK. SK HYNIX PLANS TO BUY BACK $29 BILLION OF SHARES AND RETURN MORE PROFITS FOR INVESTORS TO STABILIZE ITS STOCK AFTER FALLING MORE THAN 50% IN TWO MONTHS. AND ESTRADA FREEZES $100 MILLION -- AND A STARTUP RAISES $100 MILLION TO BRING NUCLEAR FUSION ENERGY TO THE U.S. TECHNOLOGY STOCKS ARE UNDER SOME A MODEST PRESSURE. THE BIG CATALYST IN MARKETS THIS MORNING WAS THE TREASURY STEPPING IN WITH A PLAN TO BOOST BUYBACKS OF LONGER-DATED BONDS. YIELDS COMING DOWN ACROSS THE CURVE AND ON THE 10-YEAR IN THIS CASE, CHIP STOCKS LOST MOMENTUM AND UNDERPERFORMING IN THAT CASE. ONE OUTLIER IN THE STORY OF THE CHIP SECTOR IS MARVELL, GIVING GOOGLE THE RIGHT TO BUY MORE THAN $12 BILLION OF STOCK. IT IS ABOUT A DEEPER AGREEMENT FOR COOPERATION ON SHIPS, CHIP DESIGN ACROSS A NUMBER OF FACETS. MARVELL CONTRACT FOR ITS-- ON T RACK FOR ITS BEST DAYS IN JUNE. LET'S GET MORE WITH IAN KING OUT OF SAN FRANCISCO. THIS IS CUSTOM SILICON ANYWAY. MARVELL IS ANOTHER NAME THAT GOOGLE IS LOOKING TO TO DIVERSIFY THE CHIPS IT HAS ACCESS TO. IAN: THE DEVIL IS IN THE DETAILS. IF YOU READ THE LIST OF PRODUCTS THAT MARVELL MIGHT POSSIBLY BE MAKING FOR GOOGLE, KIND OF THE BACKUP SINGERS IN THE BAND. THERE IS ONE IMPORTANT THING IN THERE, THE AI ACCELERATOR. THIS IS THE TYPE OF CHIP THAT NVIDIA MAKES. IT IS THE CORNERSTONE OF NVIDIA' SPRODUCT -- ED: MINA. IA-- LINEUP. IAN: AND THIS PERHAPS SHOWS THAT GOOGLE IS BECOMING MORE AMBITIOUS ABOUT ITS CHIP EFFORTS. ED: WE KNOW ABOUT GOOGLE TPU, WHICH GOOGLE HAS WORKED ON WITH BROADCOM. BROADCOM TAKES THE CHIP TO PRODUCTION. DOES MARVELL DO THE SAME THING? IT IS A PARTNER, BUT GOOGLE WOULD OWN THE IP OF THE CHIP. IAN: THESE TWO COMPANIES, MARVELL AND BROADCOM, ARE THE ABSOLUTE LEADERS. WHEN YOU HAVE A BRIGHT IDEA, WE NEED OUR OWN SHIP TO DO THIS THING, WE DON'T KNOW HOW TO DO IT, SO YOU GO TO THEM AND THEY PACKAGE IT ALTOGETHER AND THEY TAKE IT TO GET IT MANUFACTURED FOR YOU. ED: I'M NOT GOING TO ASK YOU THIS QUESTION UNFAIRLY, BUT CIRCULAR FINANCING? THIS ARRANGEMENT IS BASICALLY A WARRANT TO GIVE GOOGLE THE RIGHT TO BUY STOCK, ALONG WITH IN PARALLEL A TO DESIGN MULTIPLE DIFFERENT CHIPS. IAN: TWO WAYS TO LOOK AT THIS. FROM THE PERSPECTIVE OF THE CHIPMAKERS, WE ARE GIVING INVESTORS MONEY, A VALID CUSTOMER BECAUSE IT EXPANDS OUR BUSINESS AND IS A GOOD USE OF OUR RESOURCES. THE OTHER WAY TO LOOK AT THIS IS, HOLD ON A MINUTE, IF THIS IS SUCH A GOOD DEAL, WHY ARE WE GIVING THEM BACK TO OUR CUSTOMERS? ED: THIS IS SOMETHING WE ARE SEEING WITH A NUMBER OF NAMES IN THE CHIP SPACE. IAN KING, THANK YOU VERY MUCH. LET'S STICK WITH THE MARVELL IN ALPHABET STORY. MATT'S ETF THAT HE OVERSEES, ALPHABET IS THE NUMBER THREE HOLDING, I THINK. THIS IS THE DIVERSITY OF SELECTING STORY--SILICON STORY, FINDING CHIPS ANYWHERE YOU CAN STORY. AS SOMEONE FOCUS ON TRACKING ALPHABET, HOW DO YOU INTERPRET IT? >> THANKS FOR HAVING ME PUT IT IS AN OPPORTUNITY ACROSS THE BORDER TO MAKE SURE YOU ARE HAVING SUPPLY. THAT IS WHAT GETS DOWN TO THE NUTS OF IT, MAKING SURE THAT YOU HAVE GOT TONS OF DEMAND OUT THERE AND YOU HAVE GOT TO MAKE SURE YOU CAN MEET SUPPLY AND HAVE A BROAD-BASED SUPPLY CHAIN IS GOING TO BE HELPFUL IN THE LONG RUN. ED: MATT, YOU SUBSCRIBE TO THE FIVE-LAYER CAKE THESIS OF AI. HOW DO YOU FEEL ABOUT THE CIRCULAR FINANCING QUESTION IN THIS CASE? MATT: YEAH, NO, I THINK IT'S IMPORTANT, IT'S A KEY DEBATE OUT THERE, WHETHER OR NOT THIS AI FINANCING ECOSYSTEM IS TRULY BUILDING SOME GENUINE CAPACITY, OR IF WE ARE JUST RECYCLING CAPITAL TO SOME DEGREE. ONLY TIME IS GOING TO TELL. FOR US, CASH FLOWS AND ROIC WILL BE IMPORTANT TO WATCH GOING FORWARD. ED: I'M LOOKING AT THE COMPOSITIONAL OF THE ETF. THERE IS THE FIVE-LAYER THESIS. PUT SEMICONDUCTORS ARE STILL AN IMPORTANT PART PROPORTIONATELY. WHAT IS YOUR THINKING THERE? MATT: YEAH, LOOK, I THINK THE AI OPPORTUNITY IS BROADENING ACROSS ALL FIVE LAYERS. VALUE CREATION WILL EXTEND ACROSS THE MEGA CAPS INFRASTRUCTURE IMPLEMENTATION INTO REAL-WORLD APPLICATIONS. CONCENTRATION COULD LIMIT THE EXPOSURE TO THE FULL AI OPPORTUNITY SET. WE HAVE BEEN ADVOCATING FOR A BARBELL APPROACH TO MAKE SURE YOU ARE MAINTAINING CORE EXPOSURE TO INCUMBENTS, WHILE ALSO ADDING THE EDGE BENEFICIARIES. I THINK IT IS REALLY GOING TO HELP CAPTURE MULTIPLE PHASES OF GROWTH AND REALLY ELONGATE THE CYCLE FOR INVESTORS OUT THERE. EVEN IN THAT ONE SPOT ON THE INFRASTRUCTURE, CHIP SEMI, WE WANT TO MAKE SURE WE ARE BROADENING OUR EXPOSURE THERE. LOOKING AT NVIDIA, BROADCOM, ADI. WE HAVE A LOT OF ESPRESSO JUST INSIDE THAT ONE LAYER OF THE AI CAKE---WE HAVE A LOT OF EXPOSURE JUST INSIDE THAT ONE LAYER OF THE AI CAKE FROM THAT PERSPECTIVE. ED: TALKING ABOUT THE LARGE COURT ETF, YOU TALK ABOUT THE HOLISTIC PORTFOLIO APPROACH. THERE IS MORE THAN JUST THOSE CHIP NAMES. WHERE IS THE NEXT PHASE YOU NEED TO BE FOCUSED? MATT: AS THE AI INFRASTRUCTURE BUILDOUT, IT HAS BEEN RAPID, CAPITAL INTENSIVE. THAT HAS BENEFITED THE HYPERSCALERS AND THE INFRASTRUCTURE LAYER. AS THE BUILD PROGRESSES, SPENDING IS GOING TO INCREASE. I THINK INDUSTRIALS IS A REALLY INTERESTING AREA WHERE YOU WILL START TO SEE SOME OF THAT. THERE IS A LOT OF INVESTORS THAT ARE SEEKING EXPOSURE THAT COMBINED SECULAR AND CYCLICAL CHARACTERISTICS. INDUSTRIALS CAN TAKE CARE A LOT OF THAT. THERE IS A LOT OF AI USE CASES THAT ARE SPREADING ACROSS CAPITAL GOODS AND DIVERSIFIED INDUSTRIALS. IT'S SIGNIFICANT, IT'S EXPANDING. THEY ARE DOING THAT WITH ENHANCED PRODUCT DESIGN ENGINEERING. FACTORY AUTOMATION. YOU THINK ABOUT LABOR PRODUCTIVITY. THEY ARE USING PREDICTIVE MAINTENANCE SERVICES. THERE IS DYNAMIC PRICING MODELS THAT ARE GOING TO HELP A LOT. ED: IN A FEW MINUTES TIME WE'RE GOING TO TALK WITH THE TEAM ABOUT THE MOMENTUM IN ANTHROPIC FOR THE THIRD DAY IN A ROW. THERE WAS A REALLY INTERESTING POINT IN YOUR NOTES ABOUT SALESFORCE, THE IDEA THAT SOMETIMES SOFTWARE OR TECHNOLOGY IS ENTRENCHED, AND GETTING PEOPLE TO CHANGE THEIR HABITS IS HARD. YOU SEE SALESFORCE AS BEING IN A PRETTY GOOD SPOT, AND THE IDEA THAT BESPOKE SOLUTIONS FROM FRONTIER LABS THAT WILL COME FROM THEM, YOU ARE NOT SO SURE. MATT: THEY ARE FULLY EMBEDDED WITH THEIR CUSTOMERS, THEY HAVE GOT GREAT ACCESS TO CUSTOMER DATA, THEY HAVE GOT THE OPERATIONAL SCALE. I THINK YOU ARE GOING TO SEE AI ONLY ENHANCE THE PRODUCT SAID. THINKING ABOUT WHAT IS GOING ON WITH AGENT FORCE, THEY ARE WELL-POSITIONED TO BE ABLE TO NOT ONLY KEEP THOSE CLIENTS THAT THEY HAVE RIGHT NOW, BUT THE PRODUCTS ARE GOING TO GET BETTER, FULLY EMBEDDED INSIDE THEIR CUSTOMERS. I THINK IT IS THE ACCESS TO DATA, IF THEY CAN KEEP THAT THEY WILL BE IN A VERY GOOD POSITION TO PRODUCE SOME REALLY GOOD RESULTS GOING FORWARD. ED: MATT, WHAT I DON'T SEE IN THE ETF IS ANY OF THE MEMORY NAMES. WHY? MATT: YEAH, NO, THAT'S -- MICRON IS AN INTERESTING EXAMPLE OF THAT. IT'S A NAME THAT WE HAVE KICKED THE TIRES ON. WE ARE TRYING TO BUILD PORTFOLIOS OF HIGH QUALITY COMPANY'S THAT ARE FOR SOME REASON INDIVIDUALLY PRICE RELATIVE TO LONG-TERM GROWTH PROSPECTS. WE LOOK AT A LOT OF CASH FLOWS. CASH FLOWS CAN DRIVE THE TRUE VALUE OF THE COMPANY. MICRON OVER THE LAST FIVE YEARS, THEY HAVE HAD SEVERAL QUARTERS WITH NEGATIVE FREE CASH FLOW, AND THAT IS KEPT US AWAY. ED: I THINK I'M RIGHT IN SAYING THAT THE ETF, SLIGHT PERFORMANCE YEAR-TO-DATE. WHAT ARE THE MAIN DRIVERS FOR YOU RIGHT NOW? MATT: ONCE AGAIN, IT GETS BACK TO THE COMPANY'S ABILITY TO GENERATE THE CASH AND WHAT THEY ARE DOING WITH THE CASH AT THE END OF THE DAY. WE WANT TO UNDERSTAND WHAT THE COMPANIES ARE DOING. THEY ARE INVESTING IN EMERGING GROWTH OPPORTUNITIES. AND THEN FINALLY, THEY ARE SHAREHOLDER-FRIENDLY. IN THAT ORDER. WE ARE LONG-TERM INVESTORS AND WE HAVE A DISCIPLINED APPROACH AND WE'RE FOCUSED ON THE FUNDAMENTALS. ED: MATT WHITMER ENDING US ON MEMORY, SHAREHOLDER FRIENDLY, AND CASH. LET'S TALK ABOUT SK HYNIX. THE COMPANY IS MAKING A MAJOR MOVE TO WIN BACK INVESTORS AFTER A SHARP SLIDE IN SHARES, UNVEILING A $29 BILLION SHARE BUYBACK PLAN WHILE PLEDGING TO RETURN MORE OF ITS FREE CASH FLOW TO SHAREHOLDERS. LET'S BRING IN BLOOMBERG EXECUTIVE EDITOR FOR TECH PETER ELSTROM. THIS IS MORE ABOUT THE KOREAN-LISTED SHARES, BUT IT IS AN EFFORT TO STABILIZE THE STOCK . IT IS MULTIFACETED. WHAT IS SK DOING? PETER: THAT'S RIGHT. AS YOU MENTION COME SK HYNIX IS TALKING ABOUT BUYING BACK $29 BILLION IN STOCK, 40 TRILLION WON. THERE ARE A COUPLE OF AREAS TO LEAD IN. FIRST OF ALL, THE TIMING. OFTEN WHEN COMPANIES ANNOUNCE THESE BUYBACKS, THEY TALK ABOUT OVER A YEAR, TWO YEARS. SK HYNIX IS TALKING ABOUT BUYING BACK THESE SHARES BY MID-NOVEMBER. $40 BILLION -- $429 BILLION BEING ALLOCATED VERY QUICKLY. THIS MAY JUST BE THE BEGINNING OF THEIR RETURNING CASH TO SHAREHOLDERS. THERE MAY BE MORE BUYBACKS IN THE FUTURE. WHAT THEY SAID IS THEY ARE GOING TO INCREASE THE AMOUNT OF CASH THAT THEY RETURN TO SHAREHOLDERS IN ONE FORM OR ANOTHER TO MORE THAN 50% OF THEIR FREE CASH FLOW. WE DID THE MATH ON THAT. SK HYNIX IS MAKING A PHENOMENAL AMOUNT OF MONEY RIGHT NOW. THAT COULD TOTAL SOMETHING LIKE $170 BILLION OVER THE NEXT TWO YEARS. THEY ARE MAKING A LOT OF CASH BECAUSE OF THESE INCREASES IN THE PRICES OF MEMBERSHIP. ED: THEY WOULD ALSO SAY POST- BUYBACK THEY WOULD CANCEL THE SHARES. WHEN THEY DID THE ADR'S, THEY ISSUED MORE STOCK, WHICH UPSET. INVESTORS--WHICH UPSET KOREAN INVESTOR VERSE FELT LIKE THEY WERE GETTING DILUTED. THEY ARE EXPANDING IN KOREA DOMESTICALLY. AS THE SK GROUP CHAIR TOLD ME, THEY HAVE AMBITIONS IN THE UNITED STATES AS WELL. PETER: RIGHT, RIGHT. YEAH, YOU RAISE A GOOD QUESTION, WHY WITH A RAISE THIS MONEY IN THE UNITED STATES THROUGH THE ADR'S AND DISH IT OUT IN KOREA? FIRST OF ALL, THERE WAS A BIT MORE BULLISHNESS IN THE AI MARKET A FEW WEEKS AGO. WHEN YOU TALK ABOUT THEIR LISTING THERE AND THEY WERE ABLE TO RAISE MONEY. THEY ALSO WANT TO GLOBALIZE THEIR INVESTOR BASE AND GET U.S. INVESTORS AND MAKE IT EASIER FOR U.S. INVESTORS TO BUY INTO THEIR SHARES IN PARTICULAR. ALSO, THERE IS A MISMATCH IN VALUATIONS RIGHT NOW. ADR'S IN THE U.S. TRADE AT A HIGHER MULTIPLE THAN THE KOREAN SHARES. EFFECTIVELY WHAT SK HYNIX IS DOING IS THEY HAVE SOLD SHARES AT A HIGHER MULTIPLE IN THE UNITED STATES AND THEY ARE BUYING BACK LOWER-COST SHARES IN KOREA. THEY ARE TAKING ADVANTAGE OF THIS ARBITRAGE TRADE, WHICH WE HAVE TALK ON THIS SHOW BEFORE, INDIVIDUAL INVESTORS ARE NOT ABLE TO CONNECT TO THAT ARBITRAGE BECAUSE OF TECHNICAL REASONS. THERE IS A CAP ON WHAT THEY CAN CONVERT. BUT SK HYNIX IS ABLE TO PROCEED WITH THAT. ED: PETER ELSTROM WILL BE BACK LATER IN THE HOUR AND WE WILL TALK ABOUT THE BIG STORIES FROM ASIA TECH LATER ON. COMING UP, AHEAD OF ITS POTENTIAL MAKE IPO, ANTHROPIC'S CREDIT FACILITY IS SET TO EXCEED 10 BILLION DOLLARS. THIS IS "BLOOMBERG TECH." ED: ALPHABET PAID JUST UNDER 7% TO BORROW LONGER DATED FUNDS IN ITS DEBUT AT AUSTRALIAN DOLLAR BOND OFFERING. ITS HIGHEST EVER. UNDERSCORING HOW HYPERSCALERS ARE FACING RISING COST TO FINANCE THEIR AMBITIONS. THEY SOLD $3.9 BILLION OF DEBT WITH THE YIELD ON THE 20-YOUR CROTCH. THE RISING COSTS ALSO UNDERSCORED A GLOBAL TREND OF SURGING BORROWING COSTS AS LONG A GOVERNMENT BOND YIELDS ARE AT MULTI-DECADE HIGHS. ANOTHER TOP STORY IS TOPS ARE GOING PUBLIC. ANTHROPIC'S REVOLVING CREDIT FACILITY IS ANTICIPATED TO RISE ABOVE ITS $10 BILLION TARGET. THAT WOULD BE A SUBSTANTIAL INCREASE OVER A 2.5 BILLION DOLLARS FIVE-YOUR FACILITY ANTHROPIC SECURED LAST YEAR. SOURCES SAY DISCUSSIONS ARE STILL ONGOING. IT'S REALLY INTERESTING HERE. BASED ON OUR REPORTING, ANTHROPIC IS REPORTING, WANTING TO EXTEND THE FACILITY. IT IS THE BANKS TRYING TO GET IN PLACE FOR A POTENTIAL IPO THAT I FIND MOST INTERESTING. EXPLAIN THAT. SRIDHAR: IT'S BECOME THE REALITY OF MODERN-DAY IPOS. THE BALANCE SHEET HAS BECOME SUCH A CRITICAL COMPONENT. ANYTIME A COMPANY IS LOOKING TO GO PUBLIC AND BANKS ARE ANGLING TO FIND A PUBLIC OFFERING, THEY WILL TRY TO SHOW EVERY BIT OF SUPPORT THEY CAN FOR THE COMPANY , TO SHOW THEY ARE COMMITTED TO IT, MAKE SURE THEY SNAG AN IMPORTANT ROLE IN THE IPO. AS I STARTED REPORTING, ANTHROPIC IS TRYING TO RESPOND -- EXPANDED CREDIT FACILITY. THE FEEDBACK WE ARE HEARING FROM THE BANKS IS THERE IS A LOT OF INTEREST, A LOT OF PEOPLE WANT TO SIGN UP. WHAT IS THE FINAL AMOUNT THAT ANTHROPIC WILL END UP IS NOT CLEAR. WHAT THEY WILL CAP AND THAT IS NOT CLEAR. WHAT IS CLEAR IS THERE IS CERTAINLY ENOUGH DEMAND, WILLINGNESS FOR ANTHROPIC TO BE ABLE TO ANNOUNCE A NEW REVOLVING CREDIT LINE THAT COULD BE IN EXCESS OF $10 BILLION, IF THEY WANTED IT. EVERY TIME YOU HEAR HEADLINES ABOUT REVOLVING CREDIT LINE, THERE IS SOME LEVEL OF CONCERN, WHY IS THE COMPANY TAKING ON NEW BORROWING? IT'S IMPORTANT TO UNDERSTAND THIS IS NOT NEW BORROWING, THIS IS LIQUIDITY, NOT LEVERAGE. THIS IS CASH RESERVES TO IMPRESS PUBLIC MARKET INVESTORS. TO SHOW THE COMPANY CAN WITHSTAND ANY KIND OF FINANCIAL SURPRISES. THAT IS A SHOW OF CONFIDENCE. THAT SHOW OF CONFIDENCE IN THE LEAD OF THE PITCHING TO MARKET INVESTORS ON WHAT COULD POTENTIALLY BE ONE OF THE BIGGEST, IF NOT THE BIGGEST IPO OF ALL TIME. ED: $10 BILLION IS A LOT, AND PEOPLE SEE THE WORD CREDIT FACILITY, REVOLVING CREDIT LINE, AND WONDER ABOUT IT. DO WE KNOW WHERE THE RANKING ON BANKS IS RIGHT NOW WITH ANTHROPIC, THE PLAYERS ADJUSTING FOR POSITION? SRIDHAR: LIKE SPACEX, WHERE HE GOT A LIST OF THE EXPANDED ROSTER OF BANKS IN THE IPO, THIS LIST HAS REMAINED TIED UP. CLOSER TO THE IPO, YOU CAN BE REST ASSURED, THIS LIST WILL EXPAND. THEY ARE KEEPING THE INFORMATION TIGHT FOR NOW. AS WE GET CLOSER TO THE PUBLIC OFFERING, PUBLIC LISTING, IN THE FINAL LINEUP, YOU WILL SEE A MUCH BIGGER LIST OF BANKS THAT COULD GO OVER 10 THANKS, IF NOT MORE. ED: THIS IS ONE OF THE MUST READS ON THE BLOOMBERG THIS MORNING. SRIDHAR NATARAJAN, THANK YOU. WHEN IT COMES TO SETTING THE RULES FOR AI, MANY CEOS HAVE BEEN ACCUSED OF OVERSTEPPING. THE CEO OF WORLD LABS, THE SO-CALLED GODMOTHER OF AI WEIGHED IN ON THE ISSUE ON THE LATEST EPISODE OF "THE CIRCUIT" WITH EMILY CHANG. >> SOME OF THE MOST POWERFUL CEOS AND AI HAVE BEEN ACCUSED OF HAVING GOT COMPLEXES BECAUSE THEY SEEM TO KNOW WHAT IS BEST FOR HUMANITY. WHAT DO YOU THINK OF THAT TERM? >> IT IS DANGEROUS FOR ANY INDIVIDUAL TO THINK THAT THEY KNOW BETTER THAN ANYBODY ELSE. AS A CEO, ENTREPRENEUR, OUR FOUNDING PREMISE IS, WE ARE HERE TO CONTRIBUTE TO SOCIETY AND TO EMPOWER PEOPLE. IT IS NOT OUR POSITION TO MAKE EVERY SINGLE DECISION FOR PEOPLE. >> ISN'T THAT THE PATH THAT WE ARE ON? THESE ARE REALLY POWERFUL PEOPLE. >> I THINK IT IS TOO EARLY TO TELL. I AM NOT BEING NAIVE, I KNOW WHAT YOU ARE TALKING ABOUT. I ALSO HAVE MY CONCERNS. I DON'T THINK HAVING A GOD COMPLEX IS CONSTRUCTIVE, AND I WOULDN'T WANT TO DO IT MYSELF. BUT WE HAVE A DEMOCRATIC SOCIETY. THIS IS ANOTHER REASON WHY CIVIL SOCIETY SHOULD NOT GIVE UP ON AI. WE NEED THE VOICES, THE COLLECTIVE GOVERNANCE, BUT LET'S NOT THROW THE BABY OUT WITH THE BATHWATER. THE GOVERNANCE SHOULD NOT BE LET'S STOP AI BECAUSE THIS IS A TECHNOLOGY THAT CAN DISCOVER CURES FOR DISEASES, CAN EMPOWER STUDENTS AND TEACHERS, TO HELP OUR ELDERLY. THAT IS THE BABY HERE. RIGHT NOW, WE ARE IN A VERY MESSY PERIOD. THIS IS ALSO WHY I FEEL PERSONAL RESPONSIBILITY TO SPEAK THE TRUTH, I BELIEVE, AS A SCIENTIST, EDUCATOR. ED: THAT WAS THE WORLD LABS CEO SPEAKING WITH EMILY CHANG. YOU CAN FIND THE FULL EPISODE ON YOUTUBE AND ON THE TERMINAL, OR WATCH TONIGHT ON BLOOMBERG TV AT 6:00 EASTERN. COMING UP, BIG TECH BREAKS OUT THE CHARM OFFENSIVE. WILL IT BE ENOUGH TO WIN OVER LOCAL RESISTANCE TO MILLIONS OF DOLLARS OF DATA CENTER PROJECTS? WE HAVE THE STORY NEXT. THIS IS "BLOOMBERG TECH." ♪ ED: LET'S GO TO NEW YORK WHERE YAHAIRA ANAND IS STANDING BY. YAHAIRA: TICKPICK IS EXPLORING A FEATURE THAT WOULD ALLOW YOU TO SEND EACH OTHER MONEY IN DIRECT MESSAGES. A MOVE SIGNALING THE APP'S EXPANSION INTO FINANCIAL SERVICES. THE EVIDENCE OF THE FUTURE WHICH IS ALREADY AVAILABLE IN SOUTHEAST ASIA AS TIKTOKK WAS FOUND INSIDE OF THE CURRENT VERSION OF THE PLATFORM'S AMERICAN IPHONE APP. AMAZON IS PLANNING TO EXPAND ITS DRONE DELIVERY OPERATIONS TO AT LEAST FIVE MORE STATES IN THE COMING MONTHS. THE DRONES WILL BEGIN DELIVERY PACKAGES IN SEVERAL NEW MARKETS INCLUDING CHICAGO AND ATLANTA. WITH THE EXPANSION EVENTUALLY REACHING NEARLY 500 U.S. CITIES AND TOWNS. THAT IS A SIXFOLD INCREASE FROM ITS CURRENT FOOTPRINT. A ICLOUD COMPANY NEBIUS IS SET TO BE PRICING THE SALE OF $4.5 BILLION IN CONVERTIBLE BONDS WEDNESDAY, TODAY, AFTER THE CLOSING BELL. SOURCES SAY THE FIRM'S MARKETING THE BONDS MATURING IN 2030 WITH A ZERO TO HALF A PERCENT COUPON, 40 TO 45% CONVERSION ON THE PREMIUM. ED: THANK YOU. BIG TECH IS TURNING ON THE CHARM, SPENDING ON UPBEAT ADS, DONATING TO LOCAL CHARITIES, AND MAKING NEW CONCESSIONS, ALL TO WIN OVER LOCAL COMMUNITIES WHO ARE CONCERNED ABOUT THE DATA CENTER BUILD. BRODY FORD, A PART OF THE TEAM THAT DUG INTO THIS, ANOTHER MUST READ ON THE BLOOMBERG TODAY. THERE IS A DATA POINT THAT JUMPS OUT TO ME. IN THE FIRST THREE MONTHS OF THE YEAR, 100 $30 BILLION WORTH OF DATA CENTER PROJECTS WERE BASICALLY PUT ON HOLD OR DISRUPTED BY LOCAL RESISTANCE. MORE THAN ALL OF LAST YEAR. TAKE THAT, AND TOLD ME THE STORY. BRODY: I HAVE BEEN SHOT, EVERY COUPLE OF MONTHS, IT FEELS LIKE THE DATA CENTER OPPOSITION JUST KEEPS GROWING. IT'S BECOME THIS REALLY BIPARTISAN ISSUE THAT CUTS ACROSS A BUNCH OF DIFFERENT IDEOLOGIES. FOLKS ARE EFFECTIVELY WORRIED IT WILL MESS UP THEIR POWER, THEIR WATER, OR THEY'RE JUST UPSET ABOUT AI, AND THIS IS THE MOST TANGIBLE THING THEY CAN FIGHT. AND FIGHT THEY HAVE BEEN. 75 DATA CENTER PROJECTS DELAYED IN JUST THREE MONTHS. WE HAVE TO REMEMBER, THERE IS SO MUCH MONEY TIED UP IN EACH OF THESE CENTERS IN MANY CASES, EVEN A SIX-MONTH DELAY CAN MEAN SOMETHING PRETTY MATERIAL FOR THESE COMPANY'S EARNINGS. TECH COMPANIES WERE USE TO JUST WALKING INTO CITIES AND GET TAX INCENTIVES. THEY HAVE REALLY HAD TO CHANGE THEIR TONE AND PUT ON THAT SMILE. ED: YOU DETAILED CASE STUDIES IN MICHIGAN, GEORGIA, BUT THERE IS ONE CASE STUDY, PROJECT JUPITER, ORACLE'S PROJECT IN NEW MEXICO. WHAT DO WE NEED TO KNOW? BRODY: ASK ANYBODY ABOUT ORACLE, IT IS LARRY ELLISON, IT IS WHEN AT ALL COST, THEY ARE NOT NICE. NOW ALL OF A SUDDEN, ORACLE IS SPONSORING RODEOS AND ARCHAEOLOGICAL PARKS BECAUSE THEY ARE GOING ON THIS CHARM OFFENSIVE, SAYING ORACLE WILL BE A GREAT NEIGHBOR AND THE DATA CENTER WILL BE IN GOOD THINGS FOR NEW MEXICO. THEY HAVE COMMITTED SERIOUS AMOUNTS OF MONEY TO LOCAL ORGANIZATIONS, HAD TO PUT ON A PR CAMPAIGN LIKE I'VE NEVER SEEN ORACLE DO IN MY YEARS COVERING THE COMPANY. ED: THAT IS A BIG PROJECT, 2.40 FIVE GIGAWATT FACILITY, 300 BILLION DOLLAR COMPUTING DEAL WITH OPENAI. IT IS A MUST READ ON WHAT IS HAPPENING IN DATA CENTERS AHEAD OF THE MIDTERMS IN THE COUNTRY. COMING UP IN THE PROGRAM, IS THE AI CHIP CRUNCH FINALLY MAKING ITS WAY FROM DATA CENTERS INTO THE BRITISH SHOPPING BASKET? WE WILL SPEAK WITH YAEL SELFIN, CHIEF ECONOMIST AT KPMG ON CHIP INFLATION. HALFTIME HERE IN SAN FRANCISCO. A LOT MORE TO COME IN THE PROGRAM. STAY WITH US. THIS IS "BLOOMBERG TECH." ED: WELCOME BACK TO BLOOMBERG TECH UP YOUR DID AT TODAY'S BIG NUMBER, 460%. THAT IS HOW MUCH UNITREE ROBOTICS SHARES SURGED DURING ITS SHANGHAI TRADING DEBUT. JOINING US IS PETER ELSTROM. THIS WAS A BIG MOMENT FOR HUMANOID ROBOTICS, A BIG MOMENT FOR THE PUBLIC MARKETS, AN ASTONISHING NUMBER FOR THE FIRST DAY OF TRADING. GIVE US EVERYTHING WE NEED TO KNOW. PETER: UNITREE ROBOTICS IS ONE OF SEVERAL HUMANOID ROBOTICS MAKERS WITHIN CHINA. IT IS THE FIRST TO GO PUBLIC AND RAISE MONEY FROM THE PUBLIC IN THE CHINA MARKETS. THEY TEND TO HAVE THESE BIG FIRST-DAY PUMPS, BUT EVEN BY THOSE STANDARDS THIS IS A BIG ONE, 460%. THE MARKET CAP OF THE COMPANY IS NOW AROUND $50 BILLION. THIS COMPANY WAS FOUNDED BY A 36-YEAR-OLD. HE'S BECOME QUITE A CELEBRITY WITHIN CHINA, WITHIN THE CHINA TECH CIRCLES IN PARTICULAR. HE'S SEEN AS ONE OF THE NEW GENERATION OF TECH UP AND COMERS AFTER JACK MA AT ALIBABA. THIS IS QUITE A STRONG DEBUT FOR THEM. THE CHINESE ROBOTICS COMPANIES ARE GAINING MOMENTUM AT THIS POINT. YOU SEE A LOT OF STATE SUPPORT FOR THESE COMPANIES. YOU SEE SOME OF THE PHYSICAL FEATS THEY HAVE BEEN ABLE TO DO. THEY HAVE ROBOT COMPETITIONS. THIS WEEKEND THERE IS A ROBOT CONFERENCE WHERE WE WILL SEE SOME NEW TRICKS. ED: A LOT OF THE HEADLINES ARE ABOUT THE CHINESE HUMANOID THAT CAN DO BACKFLIPS, AS WE ARE DEMONSTRATING ON SCREEN. THE FIGURE THAT STRIKES ME IS PRODUCTION TO DATE, 18,000 UNITS AS OF JULY. THIS SEEMS REAL. IT SEEMS LIKE THEY ARE SHIPPING TO THE REAL WORLD. PETER: THERE ARE TENS OF THOUSANDS OF UNITS BEING SHIPPED BY UNITREE AND SOME OF THEIR DOMESTIC COMPETITORS. WE RECENTLY DID A MARKET REPORT ON THE MARKET SHARE AND THERE IS SOMETHING LIKE 95% OF THE HUMANOID ROBOTICS BEING REPLACED -- BEING PRODUCED IN THE WORLD ARE BEGINNING PRODUCED BY CHINESE COMPANIES AT THIS POINT, BUT IT IS EARLY DAYS. TENS OF THOUSANDS OF HUMANOID ROBOTS IS NOT MANY COMPARED TO WHAT WE EXPECT TO SEE IN THE FUTURE. ELON MUSK TALK ABOUT HOW EACH PERSON SHOULD HAVE AT LEAST TWO OF THEM IN THE FUTURE. TESLA WILL COMPETE IN THIS MARKET TOO, BUT WHAT WE SEE WITH THE UNITREE DEBUT AND MORE IPOS FROM THESE COMPANIES IN THE FUTURE IS THAT THEY ARE GAINING A LOT OF MOMENTUM IN CHINA AT THIS POINT. THEY NOT ONLY HAVE A MARKET THAT IS READY FOR THEM, THEY ALSO HAVE A SUPPLY CHAIN THAT ALLOWS THEM TO MANUFACTURE THESE AT SOME KIND OF VOLUMES. ED: UNITREE 'S BLOCKBUSTER DEBUT HIGHLIGHTS THE GROWING APPEAL OF CHINA'S ONSHORE MARKETS. WHAT DOES THAT MEAN FOR HONG KONG AS IT COMPETES FOR LISTINGS, INVESTORS AND LIQUIDITY? BLOOMBERG'S MINMIN LOW PUT THAT QUESTION TO THE HKEX CEO. >> IT IS A COMPETITION BETWEEN HKEX AND THE FEWW STOCK EXCHANGES ON THE CHINESE MAINLAND. I SEE OUR RELATIONSHIP QUITE DIFFERENTLY. IT IS COMPLEMENTARY. ON THE FACE IT SEEMS WE ARE COMPETING. THAT IS PROBABLY BASED ON THE ASSUMPTION THAT A COMPANY CAN ONLY IPO ONCE IN THEIR LIFE. YOU HAVE PICKED IT UP IN MANY OF YOUR PREVIOUS REPORTS, THAT IS A GROWING TREND OF COMPANIES GETTING LISTED ON BOTH THE HONG KONG MARKET AS WELL AS THE ASIAN MARKET. SOME OF THEM HAVE CHOSEN TO DO A SHARE LISTINGS FIRST AND THEN HONG KONG FOR AN H S HARE. REGARDLESS OF HOW COMPANIES WANT TO SEQUENCE IT, WHAT THEY ARE PURSUING WHEN THEY DECIDED TO LIST ON BOTH MARKETS IS EXPANDING THEIR SHAREHOLDER BASE. MINMIN: LESS THAN A YEAR ON YOU ARE LOOKING AT MAKING ADJUSTMENTS. CAN YOU TELL US MORE ABOUT THESE ADJUSTMENTS? >> LET ME TELL YOU ABOUT OUR INDEX BUSINESS AND WHY WE ARE DOING IT. WE THINK AS MORE FOCUS TURNING BACK TO OUR MARKET, THERE IS A STRONG DEMAND FOR INVESTORS TO WANT TO GET ACCESS TO THESE INDICES SO THAT THEY CAN HAVE BETTER BENCHMARKING WHEN REFERENCING. AND THEREFORE, FIRST OF ALL WE BELIEVE HONG KONG AS A MARKET WILL BENEFIT FROM A BIGGER VARIETY OF INDICES, AND THEREFORE IT GIVEN HOW CLOSE WE ARE TO THE MARKET WE DO BELIEVE WE ARE IN A UNIQUE POSITION TO DEVELOP. MINMIN: HOW DO YOU DIFFERENTIATE FROM THE EXISTING BENCHMARKS LIKE THE HANG SENG? BONNIE: IT IS QUITE DIFFERENT, I WOULD SAY. THE NAMES SUGGEST THE HKEX TECH 100 INDEX. THE UNDERLYING IS 100 STOCKS. WE DELIBERATELY MAKE IT IN A WAY SO THAT IT IS MORE DIVERSE, WHICH WE BELIEVE IS MORE REPRESENTATIVE OF THE MAKEUP OF OUR MARKET. ED: THAT WAS HKEX CEO BONNIE CHAN SPEAKING WITH MINMIN LOW. THIS MORNING WE WENT LOOKING FOR CHIPFLATION IN BRITAIN AND MAY HAVE FOUND A FEW BREADCRUMBS. THE BIG CORPORATE WAS ENERGY BILLS -- CULPRIT WAS ENERGY BILLS RATHER THAN AI, BUT PERSONAL COMPUTER PRICES JUMPED 5.9% FROM A YEAR AGO, THEIR FASTEST RISE IN AT LEAST A DECADE. LET'S GET MORE WITH YAEL SELFIN AT KPMG. WE WERE LOOKING FOR CHIP INFLATION. DOES THIS JUMP IN PC PRICES FOR YOU CONSTITUTE CHIPFLATION? YAEL: I THINK WE NEED TO LOOK AT IT MORE BROADLY BECAUSE ULTIMATELY WE ARE SEEING HIGHER COSTS OF AI MORE GENERALLY. WE WOULD HAVE PROBABLY SEEN SOME OF IT POTENTIALLY IN THE INCREASE IN SERVICES INFLATION, OR AT LEAST THE CORE. IT IS THE INFLATION THAT IS POSSIBLE. WHEN IT COMES TO THE ACTUAL PRODUCTS AND THE CHIP INFLUENCE, THAT IS SOMETHING WE SHOULD NOT OVERESTIMATE. THOSE PRODUCTS REPRESENT A RELATIVELY SMALL PORTION OF THE INFLATION BASKET, AND SECONDLY THAT INCREASE ALSO REPRESENT A HIGHER QUALITY MOST OFTEN, WHICH IS ACCOUNTED FOR WHEN YOU LOOK AT MEASURING INFLATION. ED: ONE OF THE THINGS WE TRY TO ANTICIPATE WAS THE IDEA THAT THE U.K. ECONOMY HAS TO IMPORT EVERYTHING FROM CONSUMER ELECTRONICS TO THE COMPUTE THAT GOES INTO DATA CENTERS. HOW MUCH IS THAT A FACTOR, THE STRUCTURE OF THE ECONOMY IN THE U.K. FROM IMPORT/EXPORT PERSPECTIVE? YAEL: THE MOST IMPORTANT PARTS OF THE ELEMENT IMPACTED INFLATION THIS MONTH, BUT NOT JUST THIS MONTH'S HOUSEHOLD ENERGY COSTS. WE HAD A CAP INCREASED AT THE START OF JULY. THAT WAS A 13% INCREASE IN ENERGY COSTS FOR HOUSEHOLDS ESSENTIALLY, JUST LOOKING AT PARTICULARLY THE COST OF GAS. THAT WAS REALLY THE KEY DRIVER OF THE NUMBERS THIS TIME AROUND. ED: WHAT IS FASCINATING ABOUT THE CONVERSATION WE ARE HAVING ABOUT U.K. INFLATION DATA AND HAVING AN ECONOMICS DISCUSSION WHERE I THINK I CAN ASK YOU ABOUT SOFTWARE, BECAUSE WHERE AI INFLATION IS MOST PRONOUNCED IN SOME RESPECTS IS THE PRICING OF FRONTIER MODELS. IS THAT SOMETHING THAT AN ECONOMIST IN THE U.K. HAS TO MODEL FOR? YAEL: WE ACTUALLY GOT AN INDEX OF THE COST OF AI, LOOKING AT DIFFERENT MODELS. WE PUT THEM ALTOGETHER. THERE'S A BIG DISPARITY BETWEEN THE COST OF DIFFERENT MODELS ESSENTIALLY WHAT IT MEANS IS INCREASINGLY COMPANIES WILL NEED TO DIFFERENTIATE WHICH MODELS ARE USED FOR DIFFERENT ACTIVITIES IN ORDER TO TRY AND CONTROL THAT INCREASE IN COSTS OF AI. ED: IN THE UNITED STATES, ONE OF THE STORIES THAT CAME OUT OF CAPITAL EXPENDITURES AT THE HYPERSCALERS IS CAPEX GOES UP BECAUSE THE COST ENVIRONMENT ALSO GOES UP. THERE IS LABOR INFLATION, CONSTRUCTION MATERIALS INFLATION, ALL ASSOCIATED WITH THE DATA CENTER BUILDOUT. IS THAT REFLECTED IN THE U.K. ECONOMY AS WELL? YAEL: I WOULD SAY WHAT WE HAVE SEEN IN THE ECONOMY AND MORE BROADLY IN EUROPE IS QUITE DIFFERENT TO THE U.S. THE SCALE THAT YOU SEE IN THE U.S. HAS NOT REACHED EUROPE SO FAR, SO THE PRESSURE ON RESOURCES LIKE ENERGY AND WATER TO SOME DEGREE IS NOT A SIGN AS WHERE YOU ARE. ED: LET'S LOOK TO THE FUTURE. IS IT LIKELY THAT CHIPFLATION SHOWS UP IN THE U.K. ECONOMY OR IN EUROPE? AND IF SO, WHERE WOULD THAT BE MOST PRONOUNCED? YAEL: I WOULD SAY IT IS LESS LIKELY TO BE THE MAJOR CAUSE OF INFLATION IN THE U.K. OR EUROPE. WHERE IT IS GOING TO BE MORE PRONOUNCED IS THOSE COMPANIES AND SERVICES THAT ARE HEAVIER USERS ESSENTIALLY. IT WOULD BE MAINLY SERVICES THAT ARE HEAVIER USERS. ED: IT'S NOT OFTEN THAT WE DISCUSSED MONETARY POLICY ON THIS PROGRAM. NOR DISCUSS U.K. MONETARY POLICY. BUT HOW CONSCIOUS IS THE BANK OF ENGLAND IMPACTS OF AI WHEN THEY PRESENT THEIR VIEW OF THE ECONOMY AND REVIEW AND DECISION OF MONETARY POLICIES? YAEL: IT IS FAIR TO SAY THIS IS NOT ONE OF THE THINGS WE ARE LOOKING AT THE MOMENT. WHAT THEY ARE LOOKING AT IS INFLATION EXPECTATIONS. THEY ARE WORRIED ABOUT THE STATE OF LABOR MARKET, THE PRICES IN IRAN AND HIGHER ENERGY COSTS THAT ARE POTENTIALLY MORE IMPACTFUL IN EUROPE THAN THEY ARE IN THE U.S. AND THEY ARE WORRIED ABOUT HOW THAT WILL BE TRANSMITTED, AND WHETHER WE WILL SEE A FURTHER EXHILARATION IN INFLATION SIMILAR TO WHAT WE SAW AROUND 2022. AI ON ITS OWN IS NOT SOMETHING THEY WOULD LOOK AT A LOT IN THESE STAGES COMPARED TO OTHER THINGS THAT WOULD WORRY THEM MORE. ED: WE WENT LOOKING FOR CHIPFLATION IN THE U.K.. I DON'T KNOW THAT WE FOUND IT. YAEL SELFIN, KPMG VICE CHAIR CHIEF ECONOMIST. COMING UP, WE WILL SPEAK WITH THE CEO OF FUSE BUT THE STARTUP'S LATEST FUNDING ROUND END OF THE PATH TO COMMERCIALIZING NUCLEAR FUSION. THIS IS BLOOMBERG TECH. START UP FUSE HAS RAISED $100 MILLION TO HELP ITS GOAL OF BRINGING COMMERCIAL FUSION ENERGY TO THE U.S. AND ITS ALLIES. ITS FACILITY IN ALBUQUERQUE, NEW MEXICO AND IT SAYS IS THE FIRST NEW RADIATION TESTING FACILITY IN THE U.S. IN DECADES AND IS PREPARED TO SERVE CUSTOMERS. JC BTAICHE, THE FOUNDER AND CEO IS WITH US. REALLY INTERESTING ROUND. WE WILL GET INTO WHAT THE CAPITAL IS NEEDED FOR, WHAT THE CHALLENGES FOR THE TECHNOLOGY IS, BUT LET'S START BY INTRODUCING THE AUDIENCE TO FUSE. WHAT IS THE TECHNOLOGY YOU ARE WORKING ON, AND WHY IS YOURS DIFFERENT? JC: THANKS FOR HAVING ME, GREAT TO BE HERE. FUSE IS A MISSION TO ACCELERATE THE RAILS TRANSITION TO FUSION ENERGY WHILE ALSO SAFEGUARDING HUMANKIND. WE THINK THE FUTURE OF FUSION IS DEPENDING ON BUILDING NEW GENERATORS AT RAPID SCALE. JUST LAST WEEK WE ANNOUNCED THAT WE BROKE A RECORD AND COMMERCIAL FUSION WITH NEUTRON YIELD WHICH IS ESSENTIALLY THE USEFUL BYPRODUCT OF THE FUSION GENERATOR. THE WAY THAT WE ARE DIFFERENT, THERE ARE TWO MAIN POINTS. FIRST, WE ARE COMMERCIALIZING TECHNOLOGY THAT HAS BEEN -- RECEIVED DECADES OF INVESTMENT, BILLIONS OF DOLLARS FROM THE U.S. NATIONAL LABS, SECURITY COMMUNITY. WE ARE COMMERCIALIZING IT. SECOND, THE FUSION GENERATORS ARE USEFUL TODAY TO PRODUCE RADIATION THAT IS USED TO SAFEGUARD THINGS LIKE ELECTRONICS, MATERIALS, IN THE CASE OF RADIATION EVENTS THAT COULD BE NATURAL FROM OUTER SPACE OR HOSTILE, HUMAN MADE RADIATION. WE HAVE FUSION GENERATORS THAT ARE OPERATING TODAY, SERVICING CUSTOMERS. WE ARE EXCITED TO CONTINUE BUILDING THE PATH TOWARD BETTER GENERATORS, MORE COST-EFFECTIVE, AND CONTINUE TO INCREASE THE ENERGY EFFICIENCY. ED: YOU HAVE A ONE TERAWATT FUSION DRIVER, TITAN, AND THEN YOU HAVE WHAT YOU CALL THE MOST EFFICIENT NEUTRON PULSE. NOW YOU HAVE 100 MILLION DOLLARS. WHAT IS THE DEVELOPMENT OF THOSE TECHNOLOGIES, WHERE ARE YOU FOCUSED RIGHT NOW? JC: WE ARE CONTINUING TO BUILD MORE GENERATORS. FUSION, THERE'S BEEN A LOT OF SCIENTIFIC PROGRESS BUT NOW IT IS A RACE TO COMMERCIALIZATION. THAT WAY YOU COMMERCIALIZE SOMETHING LIKE FUSION TECHNOLOGY, YOU HAVE TO BUILD A LOT OF GENERATORS. WE ARE ACCELERATING THE RATE OF DEVELOPMENT, CONTINUING TO BUILD MORE GENERATORS FASTER AND ALSO MORE COST EFFECTIVELY. THIS ROUND IS HELPING COMMERCIALIZE SOME OF THE GENERATORS WE HAVE ALREADY BUILT. WE ARE STARTING TO HOST CUSTOMERS AT OUR FACILITIES THAT ARE ESSENTIALLY USING THOSE GENERATORS TO TEST ELECTRONICS AND OTHER MATERIALS UNDER THOSE CONDITIONS. JUST YESTERDAY, WE GOT A LICENSE FOR A NEW GENERATOR IN ALBUQUERQUE, AND MEXICO, WHERE OUR NEW FACILITY IS, WHERE WE ARE TRYING TO PREPARE FOR THE CUSTOMERS AS SOON AS NEXT MONTH. ED: I HAVE ALSO COME ACROSS A LOT OF SKEPTICISM, DIFFERENT TIMELINES FOR WHEN THIS BECOMES A MAINSTAY AT SCALE. BEYOND 2030. WHAT HAS CHANGED IN YOUR ABILITY TO MOVE FASTER, THE ATTITUDE OF THIS COUNTRY TO THE TECHNOLOGY IN RECENT MONTHS AND YEARS? JC: WHEN YOU LOOK AT WHAT HAS HAPPENED IN THE RECENT FEW YEARS, THE U.S. HAS BUILT AN AMAZING FUSION INFRASTRUCTURE IN THE LATE 1990'S AND EARLY TO THOUSANDS AT THE END OF THE COLD WAR. SINCE THEN, IT'S BEEN A FEW DECADES WE HAVE NOT BUILD NEW LARGE-SCALE FACILITIES. MEANWHILE IN CHINA, THEY ARE INVESTING ALMOST TWO TO ONE WHEN YOU FACTOR IN THE PURCHASE POWER. THEY ARE ALSO GRADUATING A FACTOR OF THOUSANDS MORE PHD'S IN THE UNITED STATES, SO THE RACE IS HOT OR HOW FAST CHINA IS BUILDING. LOTS OF FACILITIES. WHAT IS CHANGING IN THE U.S. NOW IS THERE A COMMERCIAL PRIVATE COMPANIES LIKE FUSE THAT ARE BUILDING WITH SILICON VALLEY SPEED, THE CULTURE, BUT WHILE HAVING REALLY CLOSE TIES AND DEEP EXPERTISE FROM THE NATIONAL SECURITY COMMUNITY. WE BELIEVE THIS INDUSTRY NEEDS MORE POWER GENERATORS MORE THAN POWER POINTS. THERE ARE LOTS OF COMPANIES OUT THERE, MAYBE BILLIONS OF DOLLARS IN GREAT PLANS, POWER POINTS, BUT WE ARE ACTUALLY BUILDING GENERATORS THAT WORK TODAY. WE NEED TO DO MORE BUILDING RIGHT NOW, BECAUSE THAT IS WHERE THE RACE IS GOING. YOU LOOK AT HOW MUCH CHINA IS INVESTING, IT IS QUITE DAUNTING. THE ONLY WAY THAT WE WIN IN THE U.S. IS IF WE BRING THE STARTUP CULTURE, HOW WE CAN GET THERE. ED: CHANNELING YOUR INNER ALEX KARP ON THE POWERPOINT. TELL US ABOUT YOUR BACKGROUND AND A TEAM THAT YOU PUT TOGETHER. JC: I STARTED A COMPANY AFTER COLLEGE ABOUT SEVEN YEARS AGO. I'VE BEEN DOING RESEARCH IN FUSION SINCE A PRETTY YOUNG AGE. WE GATHERED A TEAM OF EXPERTISE FROM SOME OF THE LEADING COMPANIES LIKE SPACEX, PALANTIR, TESLA, AS WELL AS OTHER FOLKS ON THE TEAM THAT COME FROM TOP PLACES, NATIONAL SECURITY COMMUNITIES, NATIONAL LAB, DEPARTMENT OF WAR, NATIONAL SECURITY LEADERS ACROSS THE UNITED STATES. WE ARE CONTINUING TO ADD MORE LEADERS FROM COMPANIES THAT HAVE ACTUALLY BUILT AND SHIPPED WHAT PEOPLE THOUGHT WERE IMPOSSIBLE AT THE TIME. FUSE, IN A WAY, IS TRYING TO COME TO THE NATIONAL SECURITY ADMINISTRATION, WHAT SPACEX HAS BECOME TO KNOW WHICH IS A COMMERCIAL PROVIDER OF CRITICAL TECHNOLOGY. THAT REQUIRES A LOT OF SKILL IN THE PRIVATE SECTOR. WE HAVE GATHERED AN AMAZING TEAM FROM SOME OF THE BEST COMPANIES. WE HAVE COMMERCIALIZED TECHNOLOGIES THAT WERE SEEN AS ALMOST IMPOSSIBLY HARD BEFORE THEY WERE DONE. ED: $100 MILLION RAISED. JC BTAICHE, FOUNDER AND CEO OF FUSE, THANK YOU FOR YOUR TIME. THE HISTORIC TRIAL CLAIMING META DESIGN FEATURES TO PROMOTE COMPULSIVE USE BY YOUNG PEOPLE CONTINUES IN OAKLAND. WE WILL HAVE THE LATEST, NEXT. THIS IS "BLOOMBERG TECH." ED: THE TRIAL ALLEGING META DECEIVE THE PUBLIC AND EXPLOITED CHILDREN ON ITS PLATFORMS IS UNDERWAY AGAIN TODAY. ATTORNEYS FOR THE 29 STATES SUING META CALL THEIR FIRST WITNESSES YESTERDAY. LET'S SUMMARIZE WHAT WE LEARNED IN DAY ONE OF THE PROCEEDINGS. >> THEY ONE OF PROCEEDINGS WERE OPENING ARGUMENTS, SO WE HEARD FROM BOTH SIDES LAYING OUT THE ROADMAP FOR WHAT WE CAN EXPECT FOR THE REST OF THE TRIAL. YOU ARE RIGHT, THE STATES CALLED THEIR VERY FIRST WITNESS, AND NAMES THAT MAY BE FAMILIAR FOR THOSE THAT FOLLOW META AND THIS YOUTH SAFETY QUESTION. HE A FORMER SAFETY RESEARCHER AT THE COUNTRY -- COMPANY WHO LEFT IN 2021 AND HAS SPOKEN BEFORE CONGRESS AND MANY OTHER TRIALS AGAINST META ABOUT HIS CONCERNS ABOUT SAFETY AND HIS EXPERIENCE RAISING THOSE SAFETY CONCERNS TO EXECUTIVES AT META. HE SAYS THEY DID NOT TAKE THEM SERIOUSLY WHEN HE TRIED TO ADDRESS THOSE ISSUES AND TELL THEM THEY NEEDED TO MAKE SOME CHANGES. HE WILL RETURN TO THE STAND TODAY TO CONTINUE TESTIFYING. ED: I THINK IT IS WORTH -- GIVEN WE HAVE A FEW WEEKS TO GO IN THE PROCESS -- THE LEGAL ARGUMENTS. THERE ARE STATE LAWS WHERE THE STATES ACCUSE A BREACH, AND THEN THERE IS A VERY SPECIFIC FEDERAL LAW VIOLATION THAT IS ALLEGED AGAINST META. >> THAT'S RIGHT. THERE ARE TWO CATEGORIES OF CLAIMS. THE FIRST OUR CONSUMER PROTECTION CLAIMS. THOSE ARE THE STATE-LEVEL CLAIMS COME ABOUT STATES TRYING TO SAY THAT META HAS BEEN A DECEPTIVE BUSINESS AND THEY HAVE MADE VIOLATIONS OF THIS STATE LAW. THEN THERE IS THIS FEDERAL CHILD PRIVACY ACT THAT THE STATE ALSO ALLEGE META VIOLATED HERE. THEY SAY THAT USERS UNDER 13 ON THE PLATFORMS, THAT IT WAS NOTABLY COLLECTING DATA FROM THOSE USERS IN VIOLATION OF FEDERAL LAW. TWO DISTINCT CATEGORIES HERE THAT SET THIS CASE APART FROM SOME OF THE OTHER ONES WE HAVE SEEN AGAINST META WHICH OUR PERSONAL INJURY CASES CLAIMING HARM TO A SPECIFIC INDIVIDUAL FOR THEIR EXPERIENCE ON THE PLATFORMS. ED: MADLIN MEKELBURG WILL CONTINUE TO FOLLOW THE TRIAL FOR THE NEXT SIX WEEKS OR SO. THANK YOU VERY MUCH. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." CHECK OUT THE PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS ONLINE AT APPLE, SPOTIFY, IHEART. IT'S A BIG WEEK IN T TECHNOLOGY. THIS IS "BLOOMBERG TECH."