President Trump Announces Apple and Intel Chip Collaboration

22:22And so that is probably the biggest shift I've seen out of this conflict, which is really looking at and accelerating how to get to more producible capabilities quickly. And we've got maybe a half dozen or more different programs that have initiated out of that.

22:41Ed Ludlow:Brian, we just have 30 seconds. You've said Arsenal 2 could be built outside of the United States. Big market for you is Australia. Taiwan is a big factor in Andrew's guiding mission. Are those realistic locations? Yeah, I mean, we have, I think the reality in the world is that our allies are going to look to have more control over their production and supply of weapons. I think that's correct. And I think production capacity for the allied nations is a contribution in and of itself. And so I think for the administration, they want the allies to be prepared to contribute. So the idea that they are also producing and contributing to the allied stockpiles is hugely advantageous.

23:25I think that's been a very consistent message from the administration. We've seen immense support for that. Where we put it exactly, we have a factory up and running in Sydney, Australia, making Ghost Shark. And then we're constantly evaluating the right way to help any given country on what they need, how they want us to work with their local partners and industry. And so it's a very nuanced process. But the reality is we think of allied production as a critical dimension of providing that deterrence that we're here to do.

23:53Ed Ludlow:And our CEO, Brian Shim. Microsoft is cashing in on China. Unlike its competitors, the AI cloud maker is selling its Azure cloud models to Chinese tech companies, including TikTok parent ByteDance, which is on track to spend a billion as Microsoft's top client. Blumos Matt Day has more. So there's the idea that this is atypical, right, doing business in China full stop. But in the AI domain, what are the models that Microsoft is able to sell into that market? So Microsoft, because of its longstanding partnership with OpenAI, has some unique ability to sell products and determine the terms under which it sells products.

24:28We understand there's been some friction between Microsoft and OpenAI over Microsoft sales in China, but they can list some of their biggest models.

24:35Ed Ludlow:Is this big business for Microsoft, Matt? We said a billion dollars potentially, but where does that stack up against the rest of its revenues? A big number, but not hugely significant to Microsoft at a global scale. They said China accounts for something like a percent and a half of their revenue. So not super significant, but the company is internally talking about Microsoft being the only place where you can get top model companies on the U.S. West Coast and the Chinese East Coast. So they think it's a big deal internally. So this is according to our reporting and sourcing. Other Chinese tech companies are in the mix here, but what have the companies said about it officially?

25:11So they haven't said much. They have said all these companies develop their own models. I think the lesson here is companies tend to use just about everything. Folks are developing their own models if they have the scale and also accessing whatever they can. And in the case of some of Microsoft's customers in China, they're tapping into models from Singapore or other cloud regions.

25:30Ed Ludlow:Lumbos, Matt Day, very important report. Thank you very much. The big technology story out there today is Intel and Apple, the president of the United States saying on Truth Social, there's an agreement between the two for Apple to work with Intel on domestic chip manufacturing here in the US. Neither company has commented that Intel shares trading now at a fresh record high. Apple has actually paired most of its advance. It's up four tenths of a percent, have been up one and a half percent. Would also note that Apple's current CEO, soon to be executive chair, Tim Cook, gave an interview to the Wall Street Journal last night saying that Apple will have to raise prices because of where commodities memory is at right now.

26:11Ed Ludlow:Maybe that's a factor, not clear. We'll continue tracking the stories. There's a bigger story in technology and markets. For years, one of the most reliable fuels for the massive big tech rally was steady share buybacks. The AI race is proving so expensive that repurchase programs are kind of evaporating. Bloomberg's Michael Rain joins us from New York to explain this shift. And like there's two parts of it. It's like CapEx is expensive, impacts the share buyback program, but also like loads of companies are issuing new equity, new stock. Explain it all. Yeah, it's really just an amazing paradigm shift for these stocks.

26:49You know, when you think about it, Alphabet, Google alone over the previous five years had bought back something like$280 billion in their own stock. Now they're going the opposite direction, planning to sell about$85 billion worth of shares to help fund this CapEx. And I really, you know, it is fascinating because these buybacks were really a driver of the market for a long time. But it really kind of exposes the notion that, yes, shareholders, investors are happy when they hear about buybacks. They're happy to have a new buyer of the stock and shrink that share count. boost EPS, but at the same time, it really does signal that maybe these companies didn't have something better to spend this money on.

27:32Now they do as far as spending all this capex to build out the data centers. And investors, for now, are happy that there's a better plan for all this cash that they generate. Time will tell if that stands the test of time, and these investments prove to be positive returns on investments. But for now, the market's happy with it. Obviously, the chipmaker stocks are thrilled about it. And we're really just in awe of a major paradigm shift in how these companies manage their stock float.

28:05Ed Ludlow:Bloomberg's Michael Reagan. Thank you very much indeed. Following the blockbuster public debut of SpaceX, investors are welcoming a massive distribution event that is pumping fresh liquidity back into private markets like the VCs needed that big IPO. It comes at a critical inflection point as a historic wave of multi-billion dollar AI model companies prepare potentially to cross that IPO threshold. Joining us now is Matt Whitiler, head of late stage growth at Wellington Management. What a time to be you and on your desk. Should we start with SpaceX? You know, to so many participants in this market, it presages this great IPO year.

28:52Ed Ludlow:Is that what you expect? I think that's exactly right. If you rewind the clock and you look back to just March of this year when I was last here with you, we were talking about the fact that the first of the big ones to go out will be SpaceX and that this year's activity will be driven by the mega cap private companies that are now going public. And we had that in SpaceX. And again, if you rewind the clock and we think about the conversation you and I had back in March, We were talking about the fact that we believed, I believe that SpaceX would perform well. And I think we're sitting here today, not quite a week into their trading, saying, oh, SpaceX is performing as expected.

29:29Ed Ludlow:Mr. Reagan just raised some really interesting points, which is like, it's not just IPOs. Generally, this market could be flooded with equity. It's not universal that it's a good time to go public. I spoke to Ali Godzi, the Databricks CEO, very recently. Here's his take. Three mega IPOs that have been rumored. One of them happened. you know, so letting those kind of go through the system and see how that sort of plays out and things stabilize a little bit. I stand by what I said. I think for most other companies, you know, it's probably best to wait it out. You know, I think Wellington's on the cap table of Databricks, right?

30:03Ed Ludlow:But that's one view, right? There's so much will happen that Databricks might not for that reason. Yeah, there's a lot in the pipe. There's a lot coming down. But I think what the precipice tipping point will be for the next batch of companies will be how these first three, the three mega ones that we talk about, how they perform. And I believe the subsequent two that are coming will likely perform very similar to SpaceX, which is with a lot of enthusiasm, not just from retail investors, but also from institutional investors. And I think that is the setup that the next batch of companies, maybe a Databricks as an example, would be looking for before they decide to come to the market.

30:44Ed Ludlow:Just purely as case studies, if Anthropic and OpenAI go next, what they've said in their limited ability to speak publicly is an IPO is the only mechanism to raise capital at the levels they need. Find that really confusing because they both did such ginormous private rounds so recently. The private market seems very willing to support that growth. The private market is. There's just not sufficient capital to support the capital intensity, as we were just hearing about, of these model companies in perpetuity. And the private markets do not offer enough liquidity for the investors in these businesses to ultimately get liquid without ultimately going public.

31:25And to put that in kind of understandable terms, the private market transacts in a full year what the public market transacts in a week. And so the volume of liquidity available to public market companies is dramatically different to what's available on the private side.

31:45Ed Ludlow:How much are private market investors in these leading frontier labs now needing to model for and take into account political risks? I'm talking, of course, about the administration's intervention in certain use of technology. But it's not just the U.S., right? We're talking about jurisdictions like the EU. I think that it is a factor that people are now starting to incorporate in their thinking for how some of these technologies will evolve. And I think it's a big open question mark as to what the future of the model builders, as an example, looks like with respect to regulatory action. But what I do feel confident is I do feel confident that it is in everybody's interest, the model builders themselves, as well as the governments to support and ultimately enable this.

32:29Because if we, if the United States or China or the governmental agencies are not promoting this, we will be left behind and we will give up the advantages that are accruing to the top builders today. So I think it will resolve. It's a question of how it resolves.

32:45Ed Ludlow:Matt, I'd really appreciate your insight here, even if the answer is no. how closely did you read the SpaceX prospectus, the story they were trying to tell, and then extrapolate out to how that might apply to everyone else, open AI, anthropic data bricks? You know, it was so interesting to see their TAM numbers and how they see the world in the very distant future. I would say that SpaceX is unique and SpaceX is unique because Elon Musk is unique. And so when I think about the SpaceX story and I think about the market cap that SpaceX is currently trading at, I think people are willing to, for Elon, say, I believe in your vision of the future and I believe you, Elon, can deliver on that vision.

33:28And I would say that is a relatively unique place in the market. There are not many other entrepreneurs or CEOs I can think of who could go out and tell a story that's five, ten years out in the future and get credit for that story today. So I think when you think about the model builders going out as the next generation or the next IPO candidates, I think those companies will more likely trade on fundamentals than maybe where SpaceX is trading today, which is, again, a little bit of the Elon magic dust around ability to convince the world that he will be the person who gets us into the future.

34:02Ed Ludlow:Let's talk about that in the future, then, when you come back. Trading on the numbers, not the names, if those AI companies go public. Matt Withheiler, head of late stage growth at Wellington. Thank you so much. Now, coming up, as the AI race shifts from model to infrastructure, Rumble's betting big on compute. Rumble. Yes, that's right. CEO Chris Pawlowski joins us next. This is Bloomberg Tech.

34:34Support for the show comes from Public. Lately, it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades, and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth. On Public, you can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts? Yep. High-yield cash? Yes, again. They even have direct indexing. Indexing. Public has modern design, powerful tools, and customer support that actually helps.

35:09Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market. Add paid for by Public Holdings. Brokered services by Public Investing. Member FINRA SIPC. Advisory services by Public Advisors. SEC Registered Advisor. Crypto services by ZeroHash. All investing involves risk of loss. See complete disclosures at public.com slash disclosures. Bro, from the show last night to this drive, why is it never chill? Cause this is our life. Backstage, on the road, it's loud, messy, real. And that's the best part. Whole crew, no plan, just moving.

35:46Good thing Nissan builds for that kind of chaos. Not just test tracks, real life scenes. Late nights, road trips, all of it. That's why it holds up. Nissan was ranked number one in initial quality among mainstream brands by JD Power. Yeah, you can tell. 2026 Nissan Rogue built for what really happens. For J.D. Power 2025 U.S. Initial Quality Study Award information, visit jdpower.com slash awards. Awards based on 2025 model year, newer models may be shown. Ask yourself, what are your best people spending their time on right now? Expense reports, receipt chasing, month-end close that takes weeks.

36:23You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically, so your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF.

36:46Ed Ludlow:The story's still here. The AI boom is fueling an intense race for the infrastructure behind it. Rumble, best known as a video sharing and cloud services platform, is looking to capitalize on that trend through its acquisition of Northern Data and the launch of Quake AI, a new platform combining cloud, compute and AI infrastructure. Joining us now is Rumble CEO, Chris Pavlovsky. There is a lot here. Let's unpack it all. So the company is going to change its legal name to Rum Group. This is based on the close of the acquisition of Northern Data. Let's go back to the genesis of the idea, like why you did this, what the opportunity was.

37:28Well, in 2013, but it was in 2021 where we took on our first investment. And that was, I guess, around March, April of 2021. And the idea was that we had to build our own infrastructure. And we did that over the last four to five years, we built our entire infrastructure for Rumble to sit on. and with all that being said, we have all this excess capacity for the video platform. So it was actually in 2021 when we went public as a SPAC under ticker RUM that we said that we had three core pillars to the business. One was going to be the advertising platform, one was going to be the video platform and one was going to be infrastructure as a service.

38:12And it is now at this point in time where we launched Rumble Cloud back in 2024 Now with the acquisition of Northern Data, we really kind of put a jetpack on that infrastructure as a service business. And we're ready to take on the world on cloud with Quake AI. So that's kind of been the genesis of what we've done. It's going to be our largest business unit going forward, the cloud side. So we're really excited to really step on the gas on the AI compute as a service and all the other services that we offer.

38:45Ed Ludlow:Can we expand on that a little bit? So there's two core businesses, right? The video platform that we know is Rumble and then Quake AI, the infrastructure business. And you just said that that will be the larger part. How has the kind of growth trajectory changed here? Why is it that it is the bigger part? And what does the outlook look like? Yeah, so actually, Northern Data just released a couple days ago that they increased their outlook to 170 to 190 million euros for the full year this year. So that's increased. But when you add on top the video platform, you add on top the deal that we just announced a couple of weeks ago with Together AI, and then you add on top the increased outlook with Northern Data, it starts to look fundamentally much different than it looked in the last couple of years.

39:34Mind you, we have grown quite a bit. It was in 2021 and 2022, we were like sub 10 million of revenue. So we posted over$100 million in the last year. And now when you add all these assets together and you add everything that we've put together, it's going to be fundamentally a much different business going forward here in the rest of 26 and 27 and beyond.

40:00Ed Ludlow:You said in the statement that you'll give further details about products and then also how you brand this. But what can you say about different business lines? I get Quake AI's infrastructure, but what areas are going to be new for you? What is it that you're going to be able to sell other than the big cluster of H200s that you've got? Yeah, so we have that big cluster. But what's really exciting for me is the unmonetized properties that we have. We have 180 megawatts just outside of Atlanta, Georgia, that is completely unmonetized right now. We have over 200 megawatts of unmonetized assets that we're looking to monetize.

40:39as fast as possible. So our first goal is to get these things monetized. And as you know, like the latest generation chips out there, you're seeing companies make roughly 10 million annually on a megawatt. So the fact that we have over 200 megawatts of unmonetized assets, that's something that we want to jump all over as fast as possible and get those monetized in 27 and 28.

41:06Ed Ludlow:I just know that the stocks kind of pushed a little higher, a gain of about 4 % during the course of our conversation. Chris Pavlovsky of Rumble, really appreciate you being on the show. Thank you so much. A year ago, President Trump's eldest son stood in Trump Tower and introduced the T1, a gold-colored U.S.-made smartphone from Trump Mobile. The device is finally out and maybe not living up to all its promises. Bloomberg's Dana Wallman, our consumer tech editor, joins us. And the team, as we can see in the video, has had its hands on the T1. The main takeaways, please. Yes. So the phone is out.

41:44It's real. It does not quite live up to the pitch. For what it's worth, not exactly gold, mustard colored, and we think really not made in the U.S. Other sites have done teardowns of the device, and it appears to be an exact match for an HTC device. That's the Taiwanese brand. a certain model that came out about two years ago. And it's a serviceable phone. It's a mid-price, mid-range Android phone. And in some ways, the specs are actually quite decent. In some ways, not. The camera performance in particular lags. But there are better options at this price range. And worth noting that the software support is one of the biggest just areas of uncertainty.

42:26It ships with Android 15. And most Android phone makers are already on Android 16. This week, Android 17 started rolling out to certain devices. So that's actually one of the biggest points in the review, is if you're going to just now buy a new device that you might be holding in your hands using for a few years, don't you want the security of the assurance of, A, having the most recent up-to-date software and knowing that it will continuously be updated while you own the device?

42:55Ed Ludlow:Bloomberg's tech editor, Dana Wallman, thank you so much. sticking with phones, Apple is preparing a second generation iPhone Air set to debut next spring. Sources say the prototype has a second rear camera and the company's working to improve the battery life. The new Air will run on a version of the A20 Pro processor. That's the same chip coming to this fool's iPhones. Shares of Take-Two pushing a lot higher, trading at their highest level in about a month, for gain of 5 % on the day. The parent company of Rockstar Games announced it would begin taking pre-orders for Grand Theft Auto 6 next week.

43:34Ed Ludlow:The highly anticipated game has already been pushed back twice, causing hits to the company's stock price. The pre-order date and the release of the final cover art suggests it won't face another delay. I don't want to jinx it. That's the read. The game is scheduled to launch this November. number sticking with entertainment let's take a look at today's big number over 160 million dollars that's the amount toy story 5 is expected to bring in at the box office this weekend the new installment is tracking to have the best debut of the pixar franchise and it's not the only blockbuster expected to pull audiences to cinema this weekend let's bring in bloomberg's felix gillette on the screen time team toy story 5 what do we need to know jesse's origin story we've already got light year and uh you know it's it's basically more fun it's part of this packed schedule for the summer i think if you're a theater owner you're finally breathing the sign of relief uh it's probably the best summer lineup that hollywood has rolled out uh since pre-pandemic days and toy story is a big part of it i watched the mandalorian two days ago with my wife and we were one the two of only three people in that room so i get the box office weekend what else is on deck apart from Toy Story.

44:52Ed Ludlow:And do you need to watch Toy Story 1 through 4 first? You should, just for the fun of it. Okay. But you don't have to. What else do we have? I mean, there's a new Spider-Man movie, the new Minions movie, new Christopher Nolan movie, Odyssey's coming out, Moana, live action, you know, Supergirl. There's really a packed lineup. And in addition to all the big studios, you're also getting a lot of help this year from some of the smaller players, There's A24 with back rooms, you know, some of these YouTube creators that are coming out with these low budget horror movies that are doing terrifically.

45:27And, you know, even Amazon chipping in with Project Hail Mary. All of it's adding up to a very strong summer lineup.

45:35Ed Ludlow:OK, Bloomberg's Felix Gillette, thank you so much. Now, before we go, the New York Knicks ticker tape parade is underway. Let's go over to City Hall Plaza in New York, where Bloomberg's Randall Williams is standing by. tell the Bloomberg Tech audience absolutely everything that is going on that they need to know and what the vibe is right now in New York City.

45:59This, Ed, is a basketball party unlike anything I've ever seen. New York City's been waiting 53 years to party like they're partying right now, all the way up down the street, all the way here to City Hall. And so when you think about what the Knicks mean to this culture, you think about Rucker Park, you think about Dykeman, these street courts that have birthed so many street stars in basketball, and now you think about the Knicks today, Jalen Brunson, Carl Anthony Towns, Jose Alvarado, New Jersey and New York hometown kids. There is not a story you could write better, and for what it means for the NBA.

46:34The NBA has been taking a beating in previous years in terms of the conversations about TV ratings. Everyone's been saying, oh, you know, the league is down, the league is down. Well, the Knicks played the San Antonio Spurs, they beat them in five, and the ratings were up. They were up so high that they were on par with some of Michael Jordan's numbers in terms of not quite as high as Michael Jordan's numbers, just right below it. And so when you think about that for the NBA, the NBA is elated. Jalen Brunson is elated. They're going to be here right behind me at City Hall giving all their speeches.

47:03And that's going to be a wrap on the NBA season. Next week will be the NBA draft, and we'll go into the summer league. But the NBA is thrilled. The New York Knicks are thrilled. And of course, New York City basketball fans are having the time of their life.

47:16Ed Ludlow:Bloomberg's Randall Williams live outside New York City Hall. Bloomberg Tech audience says, why are you covering basketball? I remember 2018 and 2022 when the Warriors won and the tech sector in Bay Area going wild. So New York City would do that for you as well. That does it for this edition of Bloomberg Tech. More live pictures, New York City, Knicks Parade. Our top stories in the markets. Intel is up trading at a record high because the president of the United States said on Truth Social that it has an agreement with Apple to bring chip manufacturing for the iPhone maker back to the United States.

47:50Ed Ludlow:SpaceX down 8%,$177 a share. But remember, this is only the fifth day of trading since the Blockbuster IPO that priced at$135 a share. And its valuation is still out of this world. This is a story that won't go away, but we are a long way from the lockup period fully expiring. So we're going to track the mechanics of it. Remember, it's a short trading week in the United States. Friday is a holiday for some and many. So recap today's show on the podcast. You know exactly where to find it. On the Bloomberg platforms, the terminal and online. Apple, Spotify, iHeart. What a week. This is Bloomberg Tech.

48:32Why is it always chaos when we link up? Cause nobody plans anything bro. Good thing the Rogue's ready like that. For real. Rain, dirt, whatever. Available all wheel drive. Five modes. We still outside. And they got some kick too. That turbo? Torque is crazy. The most in its class. It moves moves. Rogue doesn't mess around and peep the space. Merch on merch. Gear. Mics. All of it fits. Load up. We out. 2026 Nissan Rogue. Built for all of it. Auto Pacific Segmentation, 2026 Rogue vs. Latest in-market competitors in the ex-SUV mainstream mid-sites class, excluding electrical vehicles based on manufacturer websites.

49:12Ask yourself, what are your best people spending their time on right now? Expense reports, receipt chasing, month-end close that takes weeks. You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically, so your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF. Aging is real, and so are the benefits of adding vital proteins, collagen, peptides to your daily routine. New vital proteins, collagen, sparkling water.

49:50Your daily glow up now in three fresh flavors. Strawberry blossom, lemon, lime, and blood orange. improved skin health in as little as 30 days thanks to collagen peptides cheers to that or go with our classic collagen peptides so you can stay vital stay you visit vitalproteins.com to learn more and where to buy these statements have not been evaluated by the food and drug administration this product is not intended to diagnose treat or prevent any disease