SpaceX's AI Push, Uber's Next Move and Zoox's Milestone | Bloomberg Tech 8/5/2026

>> "BLOOMBERG TECH" IS LIVE FROM THE HEART OF SILICON VALLEY WITH ED LUDLOW IN SAN FRANCISCO. ED: THIS IS "BLOOMBERG TECH," SPACEX'S FIRST EARNINGS REVEALED MASSIVE AI SPENDING AND AMBITIOUS STARLINK EXPANSION. 100 BILLION DOLLARS ANNUAL REVENUE RUN RATE BY YEAR-END. WE SPEAK WITH THE UBER CEO WHO JOINS US TO DISCUSS THE COMPANY'S EARNINGS AND ITS ROBOTAXI AMBITIONS AND MORE ROBOTAXI TALK AS WE ARE JOINED BY THE CEO OF ZOOX. SPACEX FIRST EVER QUARTERLY EARNINGS. THE STOCK IS DOWN. IT STARTED TRADING JUNE 12 BUT IT IS MUCH FURTHER BELOW ITS IPO PRICE OF 135 DOLLARS A SHARE. A LOT OF STORIES AND A LOT OF NUMBERS, BUT TODAY'S BIG NUMBER, ONE TRILLION DOLLARS. THAT IS HOW MUCH ELON MUSK EXPECTS SPACEX REVENUE TO HIT IN 2030. LAUREN COVERING ALL THINGS SPACE, JOINING US NOW. LET'S GO OVER THE QUARTER THAT WAS. WHAT THE STORIES WERE IN SPACEX'S FIRST-EVER EARNINGS AND EARNINGS CALL. >> I THINK IT PAINTS A PRETTY SIMILAR PICTURE. REVENUE IS UP, BUT IT IS STILL A CASH BURNING BUSINESS. OF THE THREE SEGMENTS, THE ONE THAT IS THE ONE BRINGING IN THE NUMBERS IN THE MOMENT IS THE CONNECTIVITY SEGMENT, THE STARLINK SEGMENT. THE SPACE SEGMENT WHAT THEY HAVE BUILT THEIR BUSINESS ON, ROCKET LAUNCHERS, THAT IS MAKING SOME GAINS IN TERMS OF REVENUE BUT STILL HOLDING RELATIVELY STEADY AND THEN THE NEWLY ACQUIRED AI SEGMENT, THAT IS REALLY THE BIG SOURCE OF THE CASH BURN FOR THE COMPANY. THE SPACEX CFO MENTIONED WE CAN EXPECT TO SEE CAPITAL EXPENDITURE ON PAR WITH WHAT WE SAW THIS QUARTER FOR THE NEXT FEW QUARTERS. ED: THERE IS A LOT OF DISCUSSION OF STARSHIP CENTRAL TO THE FUTURE AMBITIONS THE COMPANY HAS , BUT WHAT DID WE LEARN ABOUT IT, WHAT DID ELON MUSK AND TOGETHER EXECUTIVE SAY? LOREN: THE MORE SURPRISING BEDSTEAD COME DURING THAT EARNINGS CALL AND A LOT OF BOLD CLAIMS WERE MADE ABOUT SOME OF THE THINGS WE MIGHT SEE IN THE FUTURE FOR INSTANCE STARSHIP AS YOU MENTIONED, HE SAID THAT STARSHIP WOULD BE LAUNCHING ONCE A DAY BY THIS TIME NEXT YEAR. ALSO THE HEATSHIELD, THERE IS SKEPTICISM ABOUT WHETHER IT WOULD HOLD UP AND MAKE IT A FULLY REUSABLE AND RAPIDLY REUSABLE ROCKET. JUST A REMINDER, STARSHIP HAS LAUNCHED TWICE THIS YEAR ON TEST FLIGHTS SO TO REACH A LAUNCH A DAY BY NEXT YEAR, THAT IS A BIT OF AN EXPONENTIAL INCREASE. [LAUGHTER] A LOT BIG CLAIMS. WE WILL SEE HOW THEY HOLD UP, BUT THAT IS WHAT ELONG IS KNOWN FOR. WE KNOW HE LIKES TO PUSH THE LIMIT AND SET BIG EXPECTATIONS TO CHALLENGE PEOPLE TO MEET THEM. ED: WHAT WERE THE OTHER BITSY WOULD PICK OUT HAVING A NIGHT'S SLEEP ON IT? WITH A BIT OF TIME TO THINK, WHAT DO WE NEED TO KNOW? LOREN: SURE, THERE WAS ANOTHER MOMENT THAT STARLINK WOULD BE THE MAJORITY OF THE WORLD'S INTERNET IN THE NEXT FEW YEARS. AGAIN, I'M NOT SURE ABOUT THAT ONE. I DID TAKE NOTICE OF WHEN THE PRESIDENT OF SPACEX TALKING ABOUT STARLINK MOBILE AND HOW THEY ACTUALLY THINK THEY ARE GOING TO BE ABLE TO ACQUIRE A LOT OF THE CUSTOMERS THAT THE MAJOR TELECOM SERVICERS LIKE VERIZON, AT&T, AND T-MOBILE HAVE. IT SPOKE TO THEIR AMBITIONS FOR EXPANDING THAT SERVICE. I THINK THERE IS SPECULATION ABOUT WHETHER THEY WILL HAVE TO BRING IN GROUND-BASED COMPONENTS , SOMETHING SHE DID MENTION. I DON'T THINK IT IS OUT OF THE REALM OF POSSIBILITY BUT I THINK IT WILL TAKE A LOT OF INVESTMENT ON THEIR END TO MAKE IT HAPPEN. AS WE HAVE SEEN, THEY ARE NOT AVERSE TO PUTTING IN A LOT OF CAPEX. ED: WE ARE GOING TO GO DEEPER ON SPACEX MOBILE LATER IN THE HOUR. LET'S STAY WITH SPACEX. A BUY RATING ON THE STOCK FROM DEUTSCHE BANK. BUT CUT THE STOCK PRICE TO 230 FIVE DOLLARS. IN THE SHORT-TERM, IT IS THE BUSINESS OF CLOUD SERVICES LEASING, RENTING COMPUTE CAPACITY TO THIRD PARTIES THAT SEEMS TO HAVE THE MOST MOMENTUM RIGHT NOW. >> YES. AND YOU PROBABLY NOTICED THEY ANNOUNCED ANOTHER DEAL, ANOTHER CUSTOMER UNDISCLOSED. THE CLOUD BUSINESS BY OUR ESTIMATES PROBABLY CAN AND DECEMBER RUNNING AT A $40 BILLION PLUS RUN RATE, WHICH IS MUCH HIGHER THAN NOW AND GENERATING THE BULK OF REVENUES. WE FEEL REALLY GOOD ABOUT THAT TRAJECTORY GOING INTO YEAR END. ED: LET'S GET TO WHAT YOU JUST MENTIONED, WHICH IS THERE WAS A DISCLOSURE OF THE CLOUD BUSINESS IN THE CURRENT PERIOD. LET'S LISTEN TO THE CFO BRETT JOHNSON. >> IN THE FIRST FEW WEEKS OF THE THIRD QUARTER WE HAVE CONTRACTED ADDITIONAL CLOUD SERVICES REVENUE THAT BEGIN STARTING IN OCTOBER OF THIS YEAR. WE BELIEVE THIS PUTS US ON A TRAJECTORY INCLUDING CONTRIBUTION FROM CURSOR TO REACH $100 BILLION OF ANNUAL REVENUE RUN RATE BY THE END OF THIS YEAR. ED: SO, THIS IS SPACEX. THERE ARE THREE BUSINESS SEGMENTS SPACE AI, CONNECTIVITY. BRETT WAS PUSHED ON WHAT THE BIGGEST CONTRIBUTORS TO THE $100 BILLION ARR WAS. EDISON: WE CAN DO SOME ROUGH MATH AROUND IT. AS I JUST MENTIONED WE CAN PROBABLY PRETTY EASILY GET TO THE $40 BILLION. YOU HAVE OTHER PARTS OF AI, YOU HAVE GROK, X, THE ADVERTISING BUSINESSES. YOU PUT THESE PIECES TOGETHER, YOU ADD ON CURSOR. I THINK BLOOMBERG HAS EVEN REPORTED IT IS RUNNING AT A VERY FAST GROWTH RATE. YOU PUT THAT ALTOGETHER. WE THINK YOU COULD PROBABLY GET TO SOMETHING LIKE $60 BILLION RUN RATE, NOT TOO FAR FROM DECEMBER. IF YOU ARE AT 60 COMING TO ME THE REST OF BUSINESSES TO DO SOMETHING LIKE 35% TO 40%. SO WE BELIEVE IN THAT $100 BILLION ARR -- AAR. ED: A LOT OF THE RESEARCH I'VE BEEN READING HAS BEEN ON THE ORBITAL DATA CENTER SIDE AND A BIG PIECE OF THE TECHNOLOGY NEWS WITH THAT SPACEX HAS TO CUT -- DECIDED TO GO WITH NVIDIA AND THEIR ARCHITECTURE. THAT DID SEEM IMPORTANT. WHAT DID YOU MAKE OF THAT AND THE STATEMENT THAT NEXT YEAR THEY WILL START LAUNCHING THAT ORBITAL DATA DESIGN? EDISON: I THINK THERE ARE TWO ANGLES. THE MORE NEAR-TERM, WHICH IS WE NEED TO DEPLOY SOME PROTOTYPES. AND DEPLOYING THE PROTOTYPES I WOULD SAY, IT IS JUST THE BEGINNING. WE NEED TO GET THEM UP THERE AND PUT THEM TO WORK. THE REAL QUESTION IS HOW DO WE SCALE THIS UP? TO DO THAT WE REALLY NEED TO INCREASE THE VOLUME AND REDUCE THE COST OF SOLAR, ALSO UP THE RADIATOR. I DON'T WORRY TOO MUCH ABOUT NEXT YEAR, CAN WE DEPLOY SOME PROTOTYPES. THE MUCH MORE DIFFICULT PART IS THE COST AND SCALE OF DOING THIS AND THAT WILL BE THE TRUE TEST AS OPPOSED TO GETTING A COUPLE UP THERE. ED: ELON MUSK SAID HE HAS PULLED FORWARD HIS EXPECTATION AND THAT THERE IS A NONZERO CHANCE THAT IF IT HAPPENS IN 2029. ARE YOU ABLE TO MODEL FOR THAT? EDISON: I WOULD FRAME IT LIKE THIS, WE HAD A FORECAST OUT THERE ON BLOOMBERG THAT IS MUCH LOWER THAN THAT. I THINK THE WAY TO FRAME IT IN THE CONTEXT OF STOCK IS TO GET A MUCH HIGHER STOCK VALUE YOU DO NOT NEED TO HIT $1 TRILLION BY 2030. IF BY SOME CHANCE YOU DO THE STOCK IS WORTH SIGNIFICANTLY MORE THAN WHAT IT IS RIGHT NOW. WE ARE PROBABLY MODELING A THIRD OF THAT. ED: ELON MUSK SAID IT. $351 BILLION FOR THE FULL YEAR. ALL OF THE FUTURE IS PREDICATED ON STARSHIP WORKING AND ITS RAPID REUSABILITY. HOW DID YOU DIGEST THE UPDATES FROM THE CALL? EDISON: I THINK IT IS BASICALLY ON TRACK WITH OUR EXPECTATIONS. WE ARE EXPECTING IT PROBABLY FLIES 15, 20 TIMES NEXT YEAR. IF YOU TRIANGULATE 1000 SATELLITES, 50, 60 SATELLITES PRELAUNCH, YOU PROBABLY GET INTO THAT REALM SO YOU CERTAINLY NEED TO CATCH THE SECOND STAGE, YOU NEED TO ADDRESS SOME OF THE HEATSHIELD CONCERNS SO IN TERMS OF THE OPERATIONAL CADENCE OF THE STARSHIP, IT IS TRACKING ROUGHLY WHAT WE ARE MODELING AND WE WILL SEE HOW THAT GOES. ED: EDISON YU OF DEUTSCHE BANK, GREAT TO HAVE YOU BACK ON THE SHOW. THAT IS SPACEX, THERE ARE SO MANY OTHER TECHNOLOGY EARNINGS. AMD, DISAPPOINTING, THIS TOP DOWN 7%. PARAMOUNT SKYDANCE, PROFITS SURGING, BUT QUESTIONS ABOUT THE WARNER BROS. DISCOVERY DEAL. WE WILL GET THAT HALFWAY THROUGH THE PROGRAM. DISNEY IS HIGHER AS STREAMING AND PARK STROKE PROFIT. THEN THERE IS UBER. GROSS BOOKINGS, BUT A REALLY BIG DISCUSSION ABOUT THE PLANS FOR THE ROBOTAXI BUSINESS GOING FORWARD AND THAT IS WHERE WE WILL FOCUS. COMING UP, UBER'S CEO DARA KHOSROWSHAHI JOINS US TO DISCUSS THE COMPANY EARNINGS AND HIS ROBOTAXI AMBITIONS. THIS IS "BLOOMBERG TECH." ED: LET'S TAKE ANOTHER LOOK AT SHARES OF UBER, DOWN 6% ON TRACK FOR ITS BIGGEST DROP SINCE NOVEMBER. GROSS BOOKINGS FOR THE CURRENT QUARTER ARE EXPECTED TO BE BETWEEN $58.25 BILLION AND $60.25 BILLION. HUBER SAID IT FACES SOME INTERNATIONAL HEADWINDS PARTICULARLY IN BRAZIL AND THE NEXT FOCUS, ROBOTAXI. CEO DARA KHOSROWSHAHI IS BACK WITH US ON "BLOOMBERG TECH." THE GROSS BOOKINGS OUTLOOK, A NUMBER OF STORIES WITHIN IT. I WOULD ALSO NOTE RIDER ACTIVITY SEEMS TO BE INCREASING. HELP US UNDERSTAND THOSE DATA POINTS. DARA: YES, THE GROSS BOOKINGS RESULTS WE HAD UP 22% IN THE QUARTER WERE ACTUALLY VERY HEALTHY AND REPRESENTED QUARTER ON QUARTER ACCELERATION, MOBILITY BUSINESS, THE DELIVERY BUSINESS ACTUALLY ACCELERATED QUARTER ON QUARTER AS WELL. SO THE BUSINESS CONTINUES TO GROW AT PRETTY EXTRAORDINARY RATES AT SCALE. WE ARE DOING OVER 300 MILLION TRIPS PER WEEK. IT DROVE REALLY STRONG PROFITABILITY AS WELL. THE THE PRESSURE WE TALKED ABOUT WAS IN BRAZIL, WHICH CAUSED A TRIP TO FOR THE QUARTER. THAT WAS ABOUT COMPETITION IN THE FOOD DELIVERY SPACE. IN BRAZIL WE HAVE A LOT OF MOBILITY RIDERSHIP THAT ARE TWO WHEELERS. THERE IS A BIG WAR GOING ON IN FOOD DELIVERY, AND THAT TOOK AWAY SOME OF OUR TUBULAR DRIVERS -- OUR TWO WHEELER DRIVERS. IT REALLY HAS NO EFFECT ON US WHATSOEVER. THE GUIDANCE WE GAVE FOR FORWARD GROSS BOOKINGS GROWTH IS VERY CONSISTENT WITH THE GUIDANCE WE GAVE LAST WATER, AND -- LAST QUARTER, AND HOPEFULLY WE WILL MEET AND BEAT THOSE KINDS OF EXPECTATIONS. ED: IS THERE ANYTHING TO DISCUSS ON THE HEALTH AND BEHAVIOR OF THE CONSUMER YOU ARE SEEING GOING INTO THE SECOND HALF OF THIS YEAR? DARA: ALL SIGNS POINTED TO A HEALTHY CONSUMER. WE LOOK AT BOTH OUR OF AND DELIVERY BUSINESS IN TERMS OF THE GROWTH OF THOSE BUSINESSES. WE LOOK AT OTHER INDICATIONS. ARE CONSUMERS TRADING DOWN AND EATING AT MORE AFFORDABLE RESTAURANTS? OR ARE EATERS LEAVING LESS TIPS, OR RIDERS LEAVING LESS TIPS? WE DON'T SEE ANY SENSE WHATSOEVER OF A CONSUMER SLOWDOWN. THE CONSUMER REMAINS OF STRONG. ON THE LABOR FRONT, OUR DRIVER EARNINGS, WE GOT OVER 10 MILLION NOW EARNERS AROUND THE WORLD. THAT CONTINUES TO BE VERY HEALTHY. IN THE U.S., DRIVER EARNINGS ARE UP 8% ON A YEAR ON YEAR BASIS. PEOPLE TALK ABOUT THE K-SHAPED ECONOMY, BUT WE THINK BOTH SIDES OF THE K CONTINUE TO BE VERY HEALTHY. RIGHT NOW ALL SIGNS POINT TO THE SAME GOING FORWARD. ED: LET'S TAKE THE DRIVER OUT OF IT FOR A MOMENT AND TALK ABOUT ROBOTAXIS. YOU KIND OF EXPLAINED THE PLAN FOR THE REST OF THE YEAR, TO GET INTO MORE CITIES THROUGH DIFFERENT PARTNERSHIPS AND DIFFERENT METHODS. LET'S START WITH THAT. ARE YOU WANTING TO SEE THE TEAM ACCELERATE ON THAT DEPLOYMENT? DARA: DEFINITELY. . WE ARE IN SEVEN CITIES ALREADY WITH A NUMBER OF PARTNERS. WE WANT TO REVIEW AND WORK WITH ALL THE ECOSYSTEM PARTNERS, JUST LIKE WE WANT EVERY SAFE HUMAN DRIVER ON OUR PLATFORM, WE WANT EVERY SAFE ROBOT DRIVER ON OUR PLATFORM. WE ARE WORKING WITH THE ENTIRE ECOSYSTEM TO ACCOMPLISH THAT. WE ARE SEVEN MARKETS NOW. BY THE END OF THE YEAR AND WE WILL BE IN 15 MARKETS. WE SEE A LOT OF ADVANCEMENTS AS IT RELATES TO OUR PARTNERS. SOUKS GOT GREAT APPROVAL FROM THE NHTSA TO RUN THERE REALLY INNOVATIVE AND COOL ROBOT VEHICLES AS WELL. WE GOT APPROVAL FOR WAVE TO START TESTING OPERATIONS IN LONDON AS WELL. NVIDIA, WHO IS A HUGE PARTNER OF OURS RELEASED THE PHYSICAL AI MODEL. THE ECOSYSTEM AROUND EV CONTINUES TO MOVE FORWARD -- AV CONTINUES TO HAVE FORWARD, AND WE ARE HOPING THAT ECOSYSTEM ACCELERATE THROUGH OUR PARTNERSHIP, THROUGH INVESTMENTS, THROUGH DANA COLLECT FOR A NUMBER OF PARTNERS, AND ULTIMATELY CARLOS UTILIZATION OF THESE VEHICLES -- COMMERCIALIZATION OF THESE VEHICLES. ED: ON X ZOOX, NOW THEY CAN CHARGE A FARE. WHEN DOES THAT MANIFEST ON THE UBER APP? WHEN WILL A ZOOX BE AVAILABLE ON THE UBER APP WITH A FARE ASSOCIATED? DARA: LATER IN VEGAS. ZOOX WILL LOOK TO MAKE THEIR VEHICLES AVAILABLE ON UBER AND THE ZOOX APP AS WELL. ED: A LOT OF PEOPLE WANT TO UNDERSTAND WHAT IS HAPPENING WITH THE RELATIONSHIP WITH WAYMO. THERE WAS A CHANGE OF PLANS IN PHOENIX, BUT HOW CONFIDENT ARE YOU ABOUT RENEWING NONEXCLUSIVE CONTRACTS WITH WAYMO? I THINK YOUR AGREEMENT WITH THEM IN AUSTIN AND ATLANTA RUN THROUGH 2028, AND THEN YOU HAVE TO WORK OUT WHERE TO GO FROM THERE. DARA: THE DEPLOYMENT IN PHOENIX WAS A REALLY SMALL DEPLOYMENT, LESS THAN 10 CARS. SO THAT IS NOT MATERIAL IN ANY SHAPE OR FORM. WE WILL CONTINUE TO WORK WITH WAYMO. IT HAS BEEN A STRONG PARTNERSHIP GOING FORWARD INTO '28 AS WELL. OUR PHILOSOPHY HAS ALWAYS BEEN WE DON'T WANT TO BE DEPENDENT ON ONE PARTNER ONE WAY OR THE OTHER. OF COURSE WE WOULD LOVE TO CONTINUE THE RELATIONSHIP WITH WAYMO, BUT THEN YOU HAVE PARTNERS LIKE ZOOX, WAVE, AND THEN WE ARE NOT DEPENDENT ON ANY SINGLE PLAYER TO KEEP DRIVING AND GROWING THIS ECOSYSTEM. ED: WE ARE LIVE ON BLOOMBERG TELEVISION AND RADIO. THIS IS BLOOMBERG TECH SPEAKING TO UBER'S CEO. YOU JUST SAID YOU DON'T WANT TO RELY ON ANY ONE PARTNER. IF WE ACCEPT THAT WAYMO IS THE COMMERCIAL ROBOTAXI LEADER IN THE U.S. IN TERMS OF DEPLOYMENTS, BUT THE REST OF THE FIELD -- OF THE REST OF THE FIELD, WHAT DO YOU THINK WILL BE THE MOST COMPETITIVE AGAINST WAYMO? DARA: I THINK THERE WILL BE MULTIPLE WINNERS. THIS MARKET IS SO EARLY IN ITS DEVELOPMENT. I COMPARE IT TO THE FOUNDATION MODEL SPACE. THREE OR TWO YEARS AGO THEY WERE LIKE, OPENAI WILL RUN AWAY WITH IT, THEY WILL BE THE ONLY GAME IN TOWN, THEN IT TURNED INTO ANTHROPIC AND CLAUDE WILL CONQUER THEM ALL. NOW YOUR SEE XAI AND SPACEXAI COMING IN WITH GROK AND CURSOR BEING A GREAT COMBINATION AS WELL. YOU HAVE GOOGLE COMING INTO GEMINI. THEY WERE LATE IN THE GAME, BUT DEFINITELY IN THE GAME. NVIDIA RELEASING OPEN AND SUPPORTING THAT ECOSYSTEM, SO THERE IS GOING TO BE NO SINGLE WINNER HERE. WAYMO IS IN THE LEAD RIGHT NOW, BUT THERE ARE GOING TO BE MANY PLAYERS AS PART OF THIS ECOSYSTEM, AND WE WILL HELP THE ECOSYSTEM OVERALL COMMERCIALIZED BECAUSE ULTIMATELY WE HAVE THE DEMAND AND WE CAN BRING MORE RIDES TO THOSE CARS AND MONETIZES VEHICLES IN A WAY NO ONE ELSE CAN. ED: TO DRIVE EARLY ADOPTION, IT IS IMPORTANT THE ROBOTAXI FIRMS PRICE LOWER? DARA: NO, PRICING IS SUPERSTRONG AND DEMAND IS SUPERSTRONG AS WELL. WHEN YOU GET THE PRODUCT IN MARKET, 20% OF SEARCH NOW IS DRIVEN BY AI, AV IS LESS THAN 5% OF OVERALL TRIPS AT THIS POINT. ADOPTION WILL TAKE TIME, BUT WE LOOK FORWARD TO MAKING IT AVAILABLE ON THE UBER APP ALL OVER THE WORLD. ED: LATER IN THE HOUR WE WILL SPEAK WITH THE ZOOX CEO, SO STICK AROUND FOR THAT. AI SAFETY BACK IN THE SPOTLIGHT AFTER OPENAI AND ANTHROPIC'S MODELS TOOK "UNSANCTIONED ACTIONS." WE HAVE THE DETAILS NEXT. THIS IS "BLOOMBERG TECH." ED: CITADEL IS CASHING IN ON WALL STREET'S BIGGEST AI HEDGE FUND BLOW UP CITADELS FLAGSHIP MILLINGTON FUND SURGED 5.9% IN JULY AFTER -- YOU KNOW WHAT? I'VE LOST MY VOICE. SAVE ME FOR A SECOND. >> LET'S GET TO TALKING TECH RIGHT AWAY. MONOLITH MANAGEMENT, ONE OF MUGSHOT AI'S EARLY BACKERS -- MOONSHOT AI'S EARLY BACKERS, IS LOOKING TO RAISE MORE FUNDS. IT HAS SINCE EMERGED AS ONE OF CHINA'S MOST PROLIFIC VENTURE BACKERS. OPENAI AND ANTHROPIC'S AI MODELS CARRIED OUT UNSANCTIONED ACTIONS DURING A SAFETY TEST, INCLUDING HACKING A WEBSITE AND TRYING TO INJECT HARMFUL CODE INTO SOFTWARE. THAT IS ACCORDING TO THE U.K. GOVERNMENT'S AI SECURITY INSTITUTE, WHICH SAYS IT IS THE FIRST TIME IT SEES RISKS AROUND AUTONOMY AND DECEPTION MANIFEST THIS CLEARLY IN THE REAL WORLD. I HOPE YOU GOT SOME WATER OUT THERE. ED: LET'S TRY THAT AGAIN. ANOTHER STOCK WE ARE WATCHING HIS SHOPIFY. ABSOLUTELY SURGING. AT ONE POINT IN THE SESSION UP THE MOST SINCE 2015. CONTINUES TO HIT TOPLINE GROWTH ABOVE 60%. THAT IS THE DIRECTION OF TRAVEL FOR THIS NAME. IT IS ONE WE COVER LESS IN THE E-COMMERCE SPACE, BUT CONTINUES TO HAVE A LOT OF MOMENTUM. IT IS AN ASTONISHINGLY BUSY EARNINGS PERIOD. WITH MY VOICE BACK IN FULL FORCE, THIS IS WHAT IS TO COME, MORE EARNINGS. WE WILL BREAK GROUND THE PRINTS FROM AMD -- DOWN THE PRINTS FROM AMD AND DISNEY. EVERYBODY TAKE A BREATH. AT IS HALFTIME AND SAN FRANCISCO, THE BEAUTIFUL CITY. DON'T GO FAR. WE WILL BE BACK. THIS IS "BLOOMBERG TECH." ED: WELCOME BACK TO "BLOOMBERG TECH," THIS IS WHAT TECHNOLOGY MARKETS LOOK LIKE THIS MORNING. SPACEX. THERE HAS BEEN LIMITED RIPPLE EFFECT, THE DOWNWARD PRESSURE ON THE CARRIERS THAT WE WILL TALK ABOUT LATER OWN OF THE PROGRAM. A LITTLE BIT OF UPSIDE ON NVIDIA AFTER THE ELON MUSK NAME CHECK. AMD REPORTED BETTER THAN REPORTED THE SECOND-QUARTER EARNINGS. A BIG FOCUS ON THE OUTLOOK OF SALES IN THE THIRD QUARTER, $13.3 BILLION, PLUS OR -$300 MILLION. WHY AREN'T THEY DOING BETTER? A LOT OF THE CALL FOCUSED ON WHAT DO YOU MEAN THAT THE BUSINESS FOR THE DATA CENTERS WILL MORE THAN DOUBLE? IT SEEMED LIKE THE STREET WANTED SPECIFIC SIZE AND SCOPE. IAN: ABSOLUTELY. EVERYBODY KIND OF KNOWS THEY ARE GOING TO DO WELL SO ARE WE GOING TO EXPECT THE DATA CENTER BUSINESS TO MORE THAN DOUBLE, WHAT DO YOU MEAN MORE THAN? 60% MORE THAN, 2% MORE THAN? ED: WHAT IS NVIDIA DOING IN TERMS OF GROWTH AND IS AMD CLOSING THE GAP? ITS LATEST GENERATION ACCELERATOR, THAT IS NOT SHOWING UP YET. IAN: THERE IS A LOT OF FOCUS ON THIS ACCELERATOR AND AMD HAS SAID THIS IS BETTER THAN WHAT NVIDIA HAS AND HAS GOING. WHEN IS IT GOING TO BE THERE? WHEN IS IT GOING TO KICK IN? YOU JUST GET IT OFF THE LOADING DOCK AND PLUG IT IN. THIS IS THEIR ATTEMPT TO HEAD THAT OFF AT THE PASS. ED: WHAT IS THE CPU STORY? IAN: THERE IS SO MUCH DEMAND FOR CPU'S RIGHT NOW. WHAT IS OLD IS NEW AGAIN. WE SAW A HUGE RUN-UP IN THE INTEL CPU BUSINESS. THEY ARE TAKING SHARES, BUT PEOPLE WANT MORE. ED: PARAMOUNT POSTED A SURPRISE SURGE IN SECOND QUARTER PROFITS PROVING ITS COST-CUTTING SKY DANCE MERGER CONTINUES TO PAY OFF. CEO DAVID ELLISON SAID THEY ARE MOVING FORWARD WITH THE WARNER BROS. DEAL. >> WE REMAIN HIGHLY CONFIDENT THIS TRANSACTION WILL CLOSE AND WE ARE PREPARING FOR A SUCCESSFUL CULMINATION ONCE IT DOES. IF YOU TAKE A STEP BACK AND LOOK AT WHERE WE ARE TODAY, WE RECEIVED APPROVALS FROM 65 REGULATORS REPRESENTING 65 COUNTRIES AROUND THE WORLD, INCLUDING THE UNITED STATES FEDERAL GOVERNMENT, CANADA, EUROPEAN UNION, CHINA, AND MANY MORE. ED: SHARES ARE UP 2% OR SO. NOTHING THAT MUCH TO WRITE HOME ABOUT IN TERMS OF SIZE AND SCOPE EVERY WHAT IS THE STORY? CAN A MILLER IS WITH US. SURPRISED PROFIT, THERE SEEMED TO BE A LOT OF FOCUS ON WHAT IS GOING TO HAPPEN WITH WARNER BROS.. >> DAVID ALLISON MENTIONED ON THE EARNINGS CALL THAT HE IS INTERESTED IN PURSUING AN OUT-OF-COURT SETTLEMENT POTENTIALLY. EVEN THOUGH THIS TRIAL IS NOW SCHEDULED FOR MARCH, THINGS COULD CHANGE. ED: HOW IS PARAMOUNT'S BUSINESS DOING? I'M TRYING TO THINK WHAT ARE THE TOP HITS I ASSOCIATE WITH THEM? WE HAVE BEEN THROUGH THE SKY DANCE THING. IT SEEMS LIKE THAT MERGER HAS GONE WELL. >> YES, WE SAW STRENGTH FOR THE STREAMING PLATFORMS, THEY HAD A BIG HIT WITH DUTTON RANCH. ED: LOVE DEAD. HANNAH: THE UFC FIGHT DID VERY WELL IN TERMS OF VIEWERSHIP SO THEY DID HAVE SOME WINS IN STREAMING. ED: I LOVED ALL OF THEM, DUTTON RANCH, MARSHALL'S, YELLOWSTONE. HANNAH MILLER OWN OF THE ENTERTAINMENT BE. -- BEAT. DISNEY IMPRESSED INVESTORS WITH PROFIT SURGE FUELED BY ITS STREAMING SERVICE BUT ALSO THEME PARKS. SHARES UP 2.5%. A BUY RATING ON THE STOCK. THERE WAS A LOT OF FIGHTING TALK FROM THE CEO THAT DISNEY IS DOING BETTER THAN ITS PEERS. DID THEY GIVE THE DATA POINTS THAT EVIDENCE THAT? >> WE ARE SEEING A REALLY STRONG PERFORMANCE FOR THIS QUARTER, WE ARE SEEING STRONG EXPERIENCES IF WE LOOK AT THE GLOBAL GAS GROWTH. WE ARE SEEING STRONG OCCUPANCY FOR DISNEY ADVENTURE. THEY HAVE TRIED TO RAISE THEIR GUIDANCE TO THE HIGHER END. FOR THE ENTERTAINMENT SIDE THEY HAVE MANAGED TO RATE -- RELEASE TOY STORY FIVE THIS QUARTER WHICH RESONATED WELL AND HELPED PUSH UP CUSTOMER PRODUCTS. ED: LET'S LISTEN A LITTLE BIT TO WHAT THEY SAID ABOUT THE ENTERTAINMENT BUSINESS, THE STREAMING BUSINESS, AND WHAT IS IN THE PIPELINE. >> OUR ABILITY TO OUTPERFORM OUR PRIOR CONSOLIDATED FISCAL Q3 GUIDANCE DESPITE THE MIXED BOX OFFICE PERFORMANCE DEMONSTRATES THE STRENGTH OF OUR DIVERSIFIED ENTERTAINMENT MODEL. I WOULD BE REMISS IF I DID NOT CONGRATULATE EVERYONE ON THIS WEEKEND'S RECORD-BREAKING OPENING FOR SPIDER-MAN. ED: IT'S INTERESTING, SPIDER-MAN DID BREAK RECORDS, BUT HE TALKS ABOUT THE BOX OFFICE BEING MIXED. HOW MUCH IS DISNEY JUDGED BY THOSE THEATRICAL RELEASES AND SUCCESSES? HELENA: I WILL SAY DISNEY'S GREATEST COMPETITIVE ADVANTAGE IS WHAT I WILL CALL THE IP FLYWHEEL. IT HAS ONE OF THE MOST MONETIZE-ABLE IP BASE. TOY STORY 5 HAS BEEN SUCCESSFUL, SO THEY MIGHT WATCH IT IN CINEMA, THEN GOES TO DISNEY+ TO WATCH THE ENTIRE FRANCHISE AND MAY BE VISIT THE CREWS TO INTERACT WITH THE IP AND BY RELATED MERCHANDISE. THE BOX OFFICE HAS BEEN MIXED. STAR WARS AND ALSO THE LIVE-ACTION MOANNA, BUT THEY ARE ABLE TO ESCALATE THAT OUTSIDE OF THE THEATER AND BRING IT TO THE IP AND RELATED MERCHANDISE. VERY FEW COMPANIES CAN MONETIZE ACROSS SO MANY TOUCH POINTS AND THAT IS WHAT MAKES DISNEY SO UNIQUE. ED: THERE WAS A CONTRIBUTION FROM PARKS PARTICULARLY TO PROFIT. I THINK IT IS TRADING 13 TIMES FORWARD 12 MONTH EARNINGS AND I'M STILL ASKING THE QUESTION, IS DISNEY A TECHNOLOGY COMPANY FOCUSED ON STREAMING OR DO WE STILL CONTINUE TO MODEL IT BASED ON THE PARKS AND OTHER PHYSICAL BUSINESSES? HELENA: YOU CAN'T REALLY SAY THEY ARE STREAMING COMPANY BECAUSE THEY ARE STILL SEEING STRONG EXPERIENCES AND THEY ARE TRYING TO INVEST VERY HEAVILY FOR LOTS OF EXPANSION PIPELINES SO WE ARE SEEING WALT DISNEY WORLD, WHILE DISNEY LAND, AND NEW DISNEY ABU DHABI. THEY ARE BUYING MORE CRUISE SHIPS BY 2031. THIS WILL DRIVE LONG-TERM REVENUE SO I THINK IT WOULD BE UNFAIR TO CATEGORIZE THEM AS A STREAMING COMPANY, IT IS MORE LIKE A COMPANY THAT HAS COMPETING STRATEGIES IN ITS IP. ED: IT IS STILL EARLY DAYS IN THE JOSH D'AM ARO ERA AT DISNEY. HELENA: I THINK HE IS THE RIGHT PERSON. BOB IGER BEFORE HE LEFT SAID JOSH IS READY AND HE HAS MORE THAN READY TO BRING THE COMPANY IN THE CORRECT DIRECTION. THEY HAVE ALREADY MANAGED TO FIX THE MANY PROBLEMS THEY USED TO HAVE. AND PREVIOUSLY NOT STREAMING AS PROFITABLE, PARKS HAVE COME DOWN, STILL GENERATING STRONG CASH FLOW. ED: WHAT IS THE NEXT CATALYST? WHAT HAPPENS IN THE BALANCE OF THE YEAR FOR DISNEY THEY WERE WATCHING MOST CLOSELY? HELENA: THEY JUST ANNOUNCED THEY ARE DOING A COLLABORATION WITH TIKTOK, BECAUSE DISNEY HAS ALWAYS BEEN PROTECTIVE OF ITS IP USAGE. THIS IS ACKNOWLEDGING CUSTOMER BEHAVIOR HAS CHANGED AND THEY ARE TRYING TO EMBRACE THE CHANGES. BECAUSE THEY SPEND SO MUCH TIME ON TIKTOK AND YOUTUBE SHORTS, THEY ARE TRYING TO EMBRACE THE NEW TRENDS AS WELL. USERS WOULD CLICK ON TO DISNEY+ TO CLICK ON SPECIFIC CONTENT AND CLOSE IT. TIKTOK MANAGED TO CONVINCE HER USERS TO OPEN MULTIPLE TIMES A DAY SO IF THEY ARE ABLE TO DRIVE THAT KIND OF TRAFFIC INTO DISNEY PLUS, CUSTOMERS ARE LESS LIKELY TO CANCEL. ED: HELENA WANG, PHILIPS SECURITIES. KEN GRIFFIN'S SIT IN DALLAS CASHING IN ON THE BIGGEST AI HEDGE FUND BLOW UP FUND SEARCHED 5.9% AFTER BUYING MOST SITUATIONAL AWARENESS IS. THE DEAL HELPED LIFT WELLINGTON'S GAINS TO 12% UNDERSCORING CITADELS ABILITY TO PROFIT FROM MARKET TURMOIL. MANY AI HEDGE FUNDS WERE HIT BY THIS. COMING UP, ZOOX WILL SOON START CHARGING FOR ITS RIDES IN LAS VEGAS, MARKING A MILESTONE FOR THE ROBOTAXI COMPANY IN THE INDUSTRY. WE WILL SPEAK WITH THE CEO. THIS IS BLOOMBERG TECH. ZOOX WILL START CHARGING FOR RIDES IN LAS VEGAS NEXT WEEK, MARKING A BIG COMMERCIAL MILESTONE AND THE COMPANY AND THE FIRST FOR A STEERING WHEEL FREE ROBOTAXI IN THE U.S. THE ZOOX CEO JOINS US. CONGRATULATIONS. THIS IS SOMETHING I HAVE BEEN QUESTIONING YOU ABOUT FOR YEARS. YOU ARE ALLOWED TO CHARGE A FARE NOW. WHAT'S THE PLAN? >> EXCITING. STARTING THIS PHASE OF THE JOURNEY. WE START IN LAS VEGAS NEXT WEEK ON MONDAY. THEN WE HAVE SAN FRANCISCO COMING UP. WE HAVE HERBERT'S TO GET IN KILL -- PERMITS TO GET IN CALIFORNIA, ATLANTA AND THEN L.A., AND WE STARTED TESTING AND ALEX -- TESTING IN DALLAS AND PHOENIX. BRINGING WHAT WE THINK IS THIS DELIGHTFUL EXPERIENCE TO CUSTOMERS. ED: THERE IS GOING TO BE A BASE FARE, AND THE FINAL FARE GETS CALCULATED ON THE DISTANCE TRAVELED AND HOW LONG IT TAKES TO GET THERE, AND DEER ASSURANCE IT WILL PICK THE BEST ROUTE. PUT DOLLAR FIGURES BEHIND HOW IT COMPARES TO AN UBER OR LYFT DRIVEN BY A HUMAN. AICHA: THIS IS KNOWN IN THE INDUSTRY AS A CATEGORY OF FARE. ONE DECISION WE HAVE MADE, IT'S STILL EARLY IN THE JOURNEY, SO WHATEVER WE QUOTED YOU IN TERMS OF THE BEST ROUTE, THAT IS WHAT WE WILL CHARGE YOU. BASE FARE, TIME, DISTANCE TRAVELED. THERE ARE SOME SURCHARGES. THE AIRPORT IS NOT STARTING ON MONDAY, THE REST OF THE DESTINATIONS ARE. THERE IS A SURCHARGE FOR THAT. WE ARE ALSO OFFERING SOME DELIGHTFUL EXPERIENCES THIS YEAR. ED: THIS IS IN LAS VEGAS. AICHA: SO THERE MIGHT BE AN ADDITIONAL FEE FOR THAT DROP OFF. WHATEVER FEE WE TELL YOU WE WILL CHARGE YOU IS WHAT WE CHARGE YOU. IF WE TOOK A LITTLE LONGER OR THE ROUTE WAS LONGER, WE WILL NOT CHANGE THE PRICE. ED: WHAT WERE THE LEARNINGS FROM LAS VEGAS? ARE PEOPLE THAT ARE IN LAS VEGAS AND HAIL A ZOOX PREPARED TO PAY FOR IT? AICHA: WE ARE ABOUT TO FIND. ED: YOU MUST HAVE SOME INDICATION. AICHA: THE DEMAND HAS BEEN AWESOME. WE HAVE BEEN MONITORING FROM CUSTOMERS NOT JUST HOW THEY ENJOY THE EXPERIENCE, BUT WHAT THEY ARE WILLING TO PAY FOR IT. WE ARE CAUTIOUSLY OPTIMISTIC THAT THEY WILL BE HAPPY TO PAY FOR THIS EXPERIENCE, AND HOPEFULLY THAT WILL MODULATE A BIT OF THE WAIT TIMES YOU SEE IN LAS VEGAS RIGHT NOW. ED: CHARGING AFFAIR IS A BIG PIECE OF NEWS BECAUSE IT ALLOWS YOU TO PROGRESS COMMERCIALLY BEYOND R&D. REGULATORS SAID OVER THE NEXT TWO YEARS YOU CAN DEPLOY 5000 OF THE ZOOX ON PUBLIC ROADS. WHAT IS THE RAMP UP PRODUCTION AND DEPLOYMENT? AICHA: I HAVE A MEASURED APPROACH. YOU ARE LAUGHING. MEASURED APPROACH. ONE OF THE THINGS WE ARE LOOKING FORWARD TO WAS TURNING THE COMMERCIAL JOURNEY, BUT ALSO STARTING TO UNLEASH MORE ROBOTS. THEY WILL NOT COME ALL AT ONCE. WE WILL SLOWLY RAMP THE FLEET SIZE AT ALL LOCATIONS. WE THINK 5000 IS ONLY THE BEGINNING. ED: I DON'T KNOW WHICH CAMERA THE DIRECTOR WANTS, BUT I AM ALWAYS SMILING BECAUSE YOU ARE -- I AM SMILING BECAUSE YOU ARE ALWAYS CAUTIOUS AND DELIBERATE, MORE THAN OTHER CEOS WE HAVE HEARD IN THE LAST 24 HOURS. YOU HAVE UTILIZATION DATA IN LOTS OF CITIES. THERE IS NOT NECESSARILY A MATCH OF A SUPPLY OF THOSE VEHICLES TO THE DEMAND RIGHT NOW. AICHA: WE ARE VERY CONFIDENT IN THE UTILIZATION. IT CAN'T BE 100% BECAUSE WE HAVE TO PICK UP PEOPLE AND GO PICK UP THE NEXT CUSTOMER. THE INDUSTRY QUOTES AROUND 50%. WE ARE CONFIDENT WE WILL BEAT THAT. WE HAVE SEEN THAT FROM CUSTOMERS. ED: ZOOX IS OWNED BY AMAZON. HOW MUCH PRESSURE ARE YOU UNDER TO DELIVER SOME COMMERCIAL SUCCESS, BRING IN SOME REAL REVENUES AND MONEY? AICHA: A LOT LESS PRESSURE THAN I PUT ON MYSELF. HOW'S THAT? IT HAS BEEN A LONG JOURNEY. WE ARE CELEBRATING OUR 12TH ANNIVERSARY. WE'VE ALWAYS SAID WE ARE HERE TO BUILD A BUSINESS, WE ARE HERE TO DELIVER AN EXPERIENCE FOR PEOPLE, AND FRANKLY TO CHANGE HOW PEOPLE MOVE THROUGH SOCIETY. I HAVE ZERO COMPLAINTS LITERALLY. A LOT OF US HAVE BEEN WAITING A LONG TIME. TO FINALLY SIT HERE AND TALK ABOUT BUILDING THE BUSINESS AS OPPOSED TO THE PROGRESS OF THE TECHNOLOGY SCHEME. HAVING SAID THAT, SAFETY, FOUNDATIONAL. AND PERFORM WELL, THAT IS KEY. ED: YOU BUILD THE ZOOX HERE IN THE BAY AREA. AICHA: THE FACTORY IS GREAT. IT IS PRODUCING. IT IS NICE WE USED TO TALK ABOUT HOW MANY ROBOTS PER WEEK AND NOW WE ARE TALKING ABOUT HOW MANY ROBOTS PER DAY. IT IS CRANKING. THEY ARE READY TO GO. WE WILL START UNLEASHING THEM INTO MULTIPLE LOCATIONS. ED: THE ZOOX CEO BACK WITH US ON "BLOOMBERG TECH." THANK YOU VERY MUCH. NEWS CROSSING THE BLOOMBERG TERMINAL. SOURCES TELL BLOOMBERG THAT HACKERS LAUNCHED A WAVE OF SOPHISTICATED ATTACKS ON WALL STREET FIRMS AND IN RECENT DAYS, TARGETING INFORMATION SYSTEMS AT MAJOR MONEY MANAGERS, INCLUDING TWO SIGMA, CITADEL AND POINT 72. SEVERAL PRIVATE EQUITY FIRMS WERE ALSO TARGETED AS PART OF THE ASSAULT. THIS ACCORDING TO SOURCES. WE WILL KEEP DRAGGING THE STORY AND BRING YOU ANY DEVELOPMENTS AS WE GET THEM. COMING UP, SPACEX IS TAKING AIM AT THE TELECOMS GIANTS. WE LOOK AT THE COMPANY'S AMBITIOUS WIRELESS PLANS. THIS IS "BLOOMBERG TECH." >> REVENUE, I WILL TAKE A HIGH LEVEL TOP DOWN, THE BIG THREE IN THE UNITED STATES, AT&T, VERIZON AND T-MOBILE, ROUGHLY BETWEEN THEM $600 BILLION A YEAR. AND I ANTICIPATE US TO ACQUIRE QUITE A FEW OF THEIR CUSTOMERS, BECAUSE I THINK OUR SERVICE WILL BE BETTER. WE WILL ELIMINATE DEAD ZONES, LEVERAGING THE BASICALLY SATELLITES IN ORBIT. ED: THAT WAS THE SPACEX PRESIDENT SPEAKING ON YESTERDAY'S EARNINGS CALL, OUTLINING THE COMPANY'S WIRELESS AMBITIONS. BLOOMBERG INTELLIGENCE ANALYST GEORGE FERGUSON SAYS THE CONNECTIVITY BUSINESS SHOULD CONTINUE TO BENEFIT FROM STEADY GROWTH IN SUBSCRIBERS AND EXPANDING SATELLITE CAPACITY. GEORGE JOINS US NOW. BASICALLY THEY SAID WE ARE GOING TO COMBINE THE WORK THAT THEY HAVE DONE IN SATELLITE SPACE CONNECTIVITY TO STARLINK, DIRECT TO SELL WITH TERRESTRIAL INVESTMENTS, AND GO AFTER THE U.S. CARRIERS. HOW DO YOU REACT TO THAT? GEORGE: I WILL CAVEAT THE START OF HER DISCUSSION WITH JOHN BUTLER COVERS THOSE COMPANIES, AND WE HAVE TALKED SINCE THE EARNINGS. THOSE TERRESTRIAL CARRIERS, THE DISCUSSION AROUND IT SEEMED PRETTY AGGRESSIVE. THINK THEY TALKED ABOUT RUNNING MOST OF BROADBAND IN A DECADE. NEAR TERM WHEN WE DISCUSS THE TECHNOLOGY THEY HAVE, THE NEW SATELLITES ARE COMING OUT. THEY WILL BE BETTER. THERE IS STILL A BUNCH OF LATENCY BETWEEN SATELLITES AND TERRESTRIAL STATIONS. I REALLY FEEL LIKE THEIR BROADBAND SERVICE IS ONE THAT WI LL INITIALLY GET BUILT AROUND WHERE THERE ARE GAPS IN COVERAGE FOR TERRESTRIAL PROVIDERS. THEY HAVE TO IMPROVE THAT SERVICE DRAMATICALLY. THAT IS ONE OF THE REASONS WHY YOU ARE SEEING SO MUCH CAPEX IN R&D. I THINK IN ORDER TO GO AFTER THOSE MAJOR CARRIERS AND TAKE A LOT OF THAT MARKET SHARE AND REVENUE I THINK THEY WERE POINTING TO YESTERDAY, AND I WILL NOTE AS I CLOSE MY COMMENTS INITIALLY, I DON'T THINK THOSE CARRIERS WILL ROLL OVER AND GIVE ALL THEIR CUSTOMERS AWAY TO SPACEX. I THINK YOU HAVE A GOOD OLD-FASHIONED PRICE FIGHT ON YOUR HANDS. I AM NOT SURE YOU WILL GET EVERYTHING YOU THINK IT IS WORTH, EVEN IF YOU TRY TO CONQUEST ALL THEIR OTHER CUSTOMERS. ED: THE CEO SAID THEY WILL ACQUIRE THOSE CUSTOMERS. THE WORD ACQUIRE DOING A LOT OF WORK. SPACEX'S LOSSES GENERALLY OVERALL NARROWED IN PART BECAUSE THE CONNECTIVITY BUSINESS IS S TILL THE CASH COW. GEORGE: AGREED. ONE OF THE THINGS I HATE TO DO AS AN ANALYST IS LOOK AT SIX-MONTH CHUNKS, BUT I DECIDED TO DO IT ANYWAYS BECAUSE THE ECONOMY IS GROWING SO FAST. I MESSED AROUND WITH THAT A BIT. ONE, FIRST WE KNOW THAT SPACE, THE LAUNCH BUSINESS AND AI BOTH WERE LOSSMAKING. NEITHER RETURNED ANY TYPE OF PROFIT. THERE IS A LOT OF R&D GOING INTO BOTH OF THOSE BUSINESSES. EVEN WHEN YOU BACK THE R&D OUT OF LAUNCH, IT LOOKS ABOUT AS GOOD THIS YEAR AT MIDPOINT AS IT DID LAST YEAR. I THINK THE CONNECTIVITY BUSINESS, THEY GREW REVENUES 50%. THEY GREW PROFIT 46%. MARGINS, A LITTLE BIT DETERIORATED. IT IS OK. IT IS PERFORMING OK I THINK FROM A LONGER TERM. AI, THEY REALLY RAISED A LOT OF REVENUE. I THINK IT WAS LIKE 1.3 TIMES. BUT COSTS ROSE SIX TIMES. KIND OF HARD TO WIN AT THAT. ED: GEORGE FERGUSON OF BLOOMBERG INTELLIGENCE, THANK YOU FOR YOUR SERVICE LOOKING AT THE NUMBERS. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECH." TUNE IN TOMORROW WHEN WE SPEAK TO THE CEO OF WESTERN DIGITAL, TALKING HYPERSCALE INFRASTRUCTURE. THIS IS "BLOOMBERG TECH."