Bloomberg Intelligence Podcast: "Zuckerberg Directs Pivot Away From Open Source AI At Meta" (Dec 10, 2025)

Episode Overview

This episode, hosted by Scarlet Fu and Paul Sweeney, leverages Bloomberg Intelligence analysts to break down the latest market news. The focus is on Meta's major strategic pivot away from open source AI, analysis of SpaceX's enormous upcoming IPO, a survey of AI's adoption in the C-suite, and earnings and trends from major consumer companies including Chewy and Cracker Barrel. The hosts are joined by Bloomberg’s Ed Ludlow, tech analyst Matt Bloxham, consumer analyst Diana Rosetopena, and food service analyst Michael Haylen.

Key Discussion Points

1. Meta’s Strategic Shift on AI: The Avocado Model (02:06–04:02)

• Meta's Pivot Explained

  • Mark Zuckerberg is taking a highly hands-on approach to AI initiatives, especially around foundational model releases.
  • Meta, previously a leader in open source AI, is likely to release its next major AI model, "Avocado," as closed source.
  • This shift is driven by the scale and resource demands of new models—open sourcing is no longer considered economically feasible for the largest systems.

• Rationale for Closing the Model

  • “In the earlier days when models were much smaller, Meta wanted workshopping among industry and academics worldwide. It worked. But... these models are so big, the resources required... are so severe that it's just not realistic to have an open source policy universally." — Ed Ludlow (02:40)
  • Open source will likely remain for some projects, but increasing investment means more proprietary releases to ensure business viability.

• Leadership and Advocacy

  • Alexander Wang, head of Meta's AI Lab, has been a proponent of closed source for key projects.

• Financial and Competitive Dynamics

  • “You have to make it a kind of for-profit exercise in order for the economics of training and then running the models to work.” — Ed Ludlow (03:19)

Notable Quote

• "They're committed to open source, but they're going to have to start looking at the reality of what it takes to build and train a model and then put it out into the real world in terms of who can use it." — Ed Ludlow (03:41)

2. SpaceX’s Blockbuster IPO Plans (04:02–06:16)

• IPO Overview

  • SpaceX is preparing for a 2026 IPO, targeting a $1.5 trillion valuation—poised to surpass the 2019 Aramco IPO as the largest ever.

• Funding Necessity

  • SpaceX needs $30–$40 billion in fresh capital for a major (unnamed) project, prompting the timing and scale of the IPO.

• Current Private Valuation

  • The company’s shares in a recent secondary tender were priced at $421 each, translating to a private market valuation north of $800 billion.
  • “SpaceX does this twice a year... But in this case, this would be the big one to kind of get fair market value ahead of an IPO.” — Ed Ludlow (05:51)

3. AI’s Corporate Adoption — Insights from BI’s C-Suite Survey (08:58–14:08)

• Survey Methodology

  • Bloomberg Intelligence polled 600+ C-suite executives globally on AI’s current role and outlook.

• Findings on AI Priorities

  • 36% say AI is their top strategic objective; 83% have AI within their top three priorities.
  • “AI is very much at the top of the C-suite agenda.” — Matt Bloxham (09:51)

• Motivations and Expectations

  • Top aim: Improving operational efficiency (47%)
  • Next: Boosting revenue (21%)
  • Headcount cuts are not a primary motivator, contrary to public fears.
  • 62% expect headcount to increase over the next three years due to AI (average projected rise: 4%).

• ROI, Roadblocks, and Uncertainty

  • Biggest concerns: unclear ROI, investment size, data quality and security.
  • “It's a bit too early to get an accurate read on that [ROI]... Most companies are still at a relatively early stage of... AI trials.” — Matt Bloxham (12:56)
  • The year 2026 is anticipated as a critical inflection point for corporate AI ROI realization.

Notable Quote

• "I think overall corporates see the need to invest more in staff to roll out their AI strategies in the coming years." — Matt Bloxham (10:56)

4. Retail and Consumer Sector Earnings: Chewy (16:45–21:46)

• Latest Results

  • Chewy beat expectations on sales and profitability but issued a conservative outlook due to projected slower household formation (pet adoption and retention).

• Growth Drivers

  • Emerging verticals: veterinary care, sponsored ads, Chewy Plus membership.
  • “They're focusing on gaining mid to high single digit sales growth over the next few years... they’re growing two times the size of the industry.” — Diana Rosetopena (18:32)

• Competition

  • Chewy matches Amazon and Walmart on price but differentiates with superior customer service expertise:
    • “If you call them and you have any questions about the food that you’re going to feed your dog, they are very knowledgeable compared to Amazon customer service. So that is like the edge that they have.” — Diana Rosetopena (20:26)

• AutoShip Program

  • Recurring delivery subscriptions are now 84% of Chewy's revenue and expected to keep climbing.
    • “It was like in the 70s and now it's 84 [percent]. So it's probably going to get to the 90s soon.” — Diana Rosetopena (21:26)

5. Restaurant Sector Snapshot: Cracker Barrel (24:27–28:41)

• Earnings and Challenges

  • Lowered guidance after underwhelming Q1; traffic remains down 10–11% after logo change controversy.
    • "They hadn't seen a bounce yet in their traffic post logo change controversy and everything that that went along with it." — Michael Haylen (24:54)

• Turnaround Strategy

  • Focus on operational improvements and customer engagement.
  • Emphasizing menu revitalization with “Southern favorites” and “twists on old classics.”

• Capex and Store Refresh

  • Scaling back on extensive remodels, opting for cost-effective refreshes (paint, floors, bathrooms) to avoid further customer alienation.

• Leadership Perspective

  • CEO Julie Masino retains position due to prior positive trends before the recent PR crisis: "Same store sales at the restaurants were up 5% in the August quarter." — Michael Haylen (28:26)

Notable Quotes & Timestamps

• Meta’s Open Source Pivot:

  • “It is just not realistic to have an open source policy universally.” — Ed Ludlow (02:59)

• SpaceX IPO:

  • “That cash is probably well north of $30 billion, maybe $40 billion... it would make it the biggest IPO of all time.” — Ed Ludlow (04:40)

• C-Suite on AI Priorities:

  • “AI is very much at the top of the C-suite agenda ... 36% of those polled said it was their top strategic priority and another 47% said it was within the top three.” — Matt Bloxham (09:51)

• AI Will Create, Not Cut, Jobs:

  • “62%... expect AI to lead to an increase in headcount over the next three years. An increase, not a decrease.” — Matt Bloxham (10:29)

• Chewy’s Competitive Edge:

  • “Where Chewy beats Walmart and Amazon is at their customer service.” — Diana Rosetopena (20:26)

Important Segment Timestamps

• [02:06] Meta pivots on AI, open vs closed source (Ed Ludlow)
• [04:02] SpaceX IPO plans and valuation (Ed Ludlow)
• [08:58] Corporate AI adoption survey analysis (Matt Bloxham)
• [16:45] Chewy earnings and sector trends (Diana Rosetopena)
• [24:27] Cracker Barrel’s performance and turnaround (Michael Haylen)

Conclusion

This episode provides in-depth market and company insights, with a focus on the disruptive influence of AI across industries, the high stakes in technology strategy at Meta, upcoming historic capital events (SpaceX IPO), and the evolving outlook for key players in retail and restaurants. The tone is analytical, data-driven, and offers direct insights from those shaping coverage on the front lines of tech and consumer markets.