Chip Stocks on Track for Best Quarter Ever

Summary

Bloomberg Tech Podcast Summary – "Chip Stocks on Track for Best Quarter Ever"

Date: June 30, 2026
Host: Ed Ludlow (with contributions by David Westin and other Bloomberg correspondents)
Main Theme:
A sweeping review of the historic rally in semiconductor stocks, with focus on the underlying AI boom, volatility within the sector, the shifting technology and political landscape, and implications for investment, international relations, and tech workforce trends.

---

Episode Overview

This episode dissects the record-breaking performance of semiconductor stocks, particularly driven by the global AI infrastructure buildout. It also explores supply chain bottlenecks, regulatory developments between the US, Taiwan, and China, and the growing importance of memory, power, and networking companies. The episode closes with coverage on changing US immigration policies and their impact on the tech sector, plus key business moves by Comcast and SpaceX.

---

Key Discussion Points & Insights

1. Semiconductor Surge: The SOX Index Rally

• Historic Quarter: Philadelphia Semiconductor Index (SOX) is up 86% in Q2, nearly doubling year-to-date.

  "The SOX is now on track for its best quarter on record ever." (David Westin, 02:37)

• AI Boom as Core Driver: Ongoing AI-driven capital expenditure is fueling demand for GPUs, memory, and data center infrastructure.
  • Notable volatility remains: stocks often swung 6% in a single day, despite no fundamental changes.

  “Just yesterday the SOX at one point fell 3%, then reversed course and ended up 3%.” (Ryan Vlastelica, 03:28)

2. From Compute to Memory: Next-Gen Winners

• Industry Shift: The early AI chip rally centered on Nvidia and GPUs; focus has now shifted to memory and storage companies like Micron, Sandisk, Western Digital, and Seagate.

  • Micron’s Blockbuster Earnings: Micron’s gross margin hit 85%, outpacing even Nvidia.

    “Micron posted a gross margin of 85%. I think that’s ... 10 points higher than what Nvidia is. I mean, that’s just phenomenal.” (Rob Farmer, 10:04)

• Supply Bottlenecks & Demand Outlook:

  “There simply are not enough memory chips being made to meet all this demand ... demand is likely going to stay elevated for really the foreseeable future. Probably into 2027, maybe into 2028.” (Ryan Vlastelica, 04:39)

3. Wider Infrastructure: Beyond Chips

• Data Center Buildout: The AI gold rush now benefits not only memory manufacturers, but companies in electricity generation, networking, cooling, and power supply.

  • US seen as a leader due to low-cost, reliable power.
  • Liquid cooling and network switches listed among critical future growth areas.

  “The base level of infrastructure is electricity ... That's where we're going to see tremendous demand.” (Rob Farmer, 07:36)

• Correlations:

  • Capex from hyperscalers (Google, Amazon, Microsoft) is a strong forward signal for continued robust demand in memory and other adjacent categories.

4. Valuations and Market Caution

• Some chip stocks look expensive by traditional metrics (e.g., Intel, ARM), whereas others (Micron) may look “cheap”—but this can be a sign earnings are peaking.

  “A company like Micron looks pretty cheap, but historically, that's been a bad time to buy it because that signals it’s more near peak earnings. But ... is this actually peak earnings or is this cycle very different?” (Ryan Vlastelica, 06:12)

---

Regulatory & Geopolitical Developments

5. Super Micro’s Taiwan Office Raided

[13:04]

• Taiwanese authorities have raided Super Micro’s Taiwan office amid allegations of smuggling Nvidia chips to China, possibly violating US export controls.
  • For now, only documentation falsification can be prosecuted, but Taiwan is considering criminalizing high-end chip exports to China under US pressure.

  “The US has been pressuring Taiwan to match the US rules ... Taiwanese authorities are considering criminalizing the act of exporting these high-end chips to China.” (Maimon Lowe, 13:04)

6. US Lobbying Industry: Forced Split Between US Defense and Chinese Tech

[14:13]

• Major Washington lobbying firms are dropping Chinese clients like Alibaba and Tencent due to new regulations—firms must choose between representing Chinese tech giants or US defense contractors.

  “The lobbying companies have reached a time for choosing here. ... They’re having to drop the Chinese companies instead.” (Lobbying Industry Expert, 14:59)

7. Tech Supply Chain Tensions

• Apple lobbying for Trump administration approval to purchase chips from blacklisted Chinese supplier CXMT, amid rising memory costs.
  • Criticized by Senator Tom Cotton:

  “Using blacklisted Chinese chips would be a grave mistake for Apple.” (Senator Tom Cotton via David Westin, 17:39)

---

Private Market Innovation

8. Etched: A Challenger in AI Inference Chips

[29:03]

• Startup Spotlight: Etched emerges from stealth with $800M in funding, targeting inference (the application, not training, of AI) with a “rack-scale” chip system—focus: lower power, higher throughput.
  • Tech Innovations: "Low voltage inference" reduces power costs, can fit more users per chip; "cluster scale memory" for rapid inter-chip communication.
  • Impressive Backers: Jane Street, TSMC’s Venture Tech Alliance among investors.
  • CEO Gavin Abbati:

  “To go ahead and take a bet like this... you need to be very first principles driven, understand the tech very, very deeply...” (Gavin Abbati, 30:57) “Around half of our platform team is from Nvidia.” (Gavin Abbati, 34:10)

---

SpaceX IPO & Telecom Fallout

9. SpaceX’s Blockbuster IPO: Korean Bank Shut Out

[23:19]

• $1 Billion Mix-Up: Mirae Asset Securities of Korea failed to submit formal orders despite collecting $1B in “indications of interest,” so got zero allocation in SpaceX IPO.

  “They thought that's all they had to do, except ... you need to actually show up with an order book.” (Bailey Lipschultz, 23:51)

• SpaceX Revenue Projections: Potential 800% revenue growth by 2030 ($160B), AI/data center contracts to be key driver.

  “That swing is really what brings SpaceX into profitability.” (George Ferguson, 21:46)

• Telecom Stocks Down: AT&T, T-Mobile, and Verizon under pressure amid speculation of SpaceX/Charter partnership disrupting consumer mobile market.

---

US Immigration Policy and the Tech Workforce

10. Supreme Court Rejects Birthright Citizenship Restrictions

[37:31]

• Keeps pathway open for children of tech workers on visas to gain citizenship, maintaining critical talent flow.

  “This is a win for stability ... had the decision gone a different way ... what other reinterpretations would have been possible?” (Hebrew Band, 42:26)

11. Visa Sponsorship Plummets

• Portion of entry-level tech jobs offering visa sponsorship drops to 2.3% (was above 10% in 2023).
  • Tech sector losing foreign student interest; 17% drop in enrollment, $1B negative economic consequence cited.

  “We're seeing basically an acceleration of the talent drain.” (Hebrew Band, 43:33)

  • Tech companies lobby for fewer immigration barriers. Ongoing brain drain raises long-term competitiveness concerns.

---

Media Moves

12. Comcast to Split NBCUniversal and Sky

[47:04]

• Move aims for strategic flexibility after failed Warner Brothers bid; reflects trend away from conglomerates to focused “pure plays.”
  • Chairman Brian Roberts staying on, unclear in what role.

---

Other Global and Market Headlines

• Tencent Ramps Up Buybacks: To counter 33% stock value loss since Oct., aiming to reassure investors amid skepticism on AI revenues. (27:51)
• AI Boom = Hong Kong IPO Wave: Apple supplier Lux Share leads, targeting $3.1 billion raise.
• Chinese Tech Sector Lags: MSCI China Index down 15% for the year.

---

Memorable Quotes

• “This has become a historic rally driven by one question: How long can the infrastructure spending boom last?”
  (David Westin, 03:04)

• “There simply are not enough memory chips being made to meet all this demand.”
  (Ryan Vlastelica, 04:39)

• “Micron posted a gross margin of 85%. I think that's … 10 points higher than Nvidia.”
  (Rob Farmer, 10:04)

• “We're basically seeing an acceleration of the talent drain.”
  (Hebrew Band, 43:33)

---

Notable Timestamps for Key Segments

| Segment | Topic & Speakers | Timestamp | |---------------------|------------------|-----------| | SOX rally & volatility | David Westin, Ryan Vlastelica | 02:36-07:03 | | Memory becomes bottleneck | Ryan Vlastelica, Rob Farmer | 04:19-10:49 | | Super Micro Taiwan raid | Maimon Lowe | 13:04-14:11 | | Lobbying industry split | Lobbying Industry Expert | 14:58-17:13 | | Etched startup interview | Gavin Abbati | 29:03-34:23 | | SpaceX IPO/Korean bank miss | Bailey Lipschultz | 23:19-25:24 | | Immigration Supreme Court ruling | Tyler Kendall, Hebrew Band | 37:31-46:52 | | Comcast split-up discussion | Kelsey Griffith | 47:04-50:18 |

---

Tone & Takeaways

The episode maintains Bloomberg Tech’s sharp, analytical tone with rapid-fire updates, expert guests, and actionable market insights. The key takeaway is that while AI is driving unprecedented profits and market enthusiasm for semiconductor and infrastructure stocks, significant uncertainties remain—across supply chains, valuations, global politics, and human capital. The intersection of technology, regulation, and geopolitics is more pronounced than ever.

---

For full interviews and stories, visit bloomberg.com or find Bloomberg Tech Podcast on all major platforms.

Transcript

[EY Consulting Narrator]

You have invested in artificial intelligence. Maybe you have pilots or even proofs of concepts that show real promise. The next opportunity is scaling that success across the business. At EY Consulting, we help organizations redesign how work gets done so innovation can move beyond the nascent stage. By addressing architecture, operating models and governance, we help AI deliver real, lasting value at scale. When AI fits how you actually work, that is EY Consulting Introducing B of A Rewards A new way to reward your every ambition it all starts with a Bank of America checking account and grows from there. You get cash back deals on brands you know and love, plus a credit card rewards bonus helping you earn more rewards on things you buy every day. Join B of A Rewards today for rewards tailored to your lifestyle. What would you like the power to do? Bank of America Open or enroll your [e-mail] B of A Rewards bank of America Corporation all rights reserved.

[Chase Sapphire Reserve Advertiser]

When you own your own business, you own every decision. Now own the card that rewards you for it. Chase Sapphire Reserve for Business is a pay in full card that elevates your travel experience and offers premium benefits that will take your business to the next level. Sapphire Reserve for business offers 8x points on all purchases through Chase Travel, 3x points on social media and search engine advertising, airport lounge access and more. Chase Sapphire Reserved for business it's the card that gives back all you put in. Learn [e-mail] reserve business chase for Business make more of what's yours. Accounts subject to credit approval restrictions and limitations apply. Cards are issued by JPMorgan Chase Bank NA member FDIC

[Ed Ludlow]

Bloomberg Audio Studios Podcasts Radio News. Bloomberg Tech is live from the heart of Silicon Valley with Ed Ludlow in San Francisco.

[David Westin]

This is Bloomberg Tech. Coming up, chip stocks are headed toward their best quarter ever, but recent swings are making investors concerned about the durability of the AI boom. Plus, Taiwan raids the offices of Super Micro as part of an investigation into the alleged smuggling of Nvidia chips into China and $1 billion misunderstanding leaves Korean investors empty handed in the blockbuster space X ipo Everything is about semiconductors at

[Bloomberg Tech Host]

the moment in the here and now.

[David Westin]

The NASDAQ 100 is higher and there is outperformance in chip stocks on the stocks today's session, but also over the last three months. We have to zoom out. The SOX is now on track for its best quarter on record ever. With the final trading day of June and the second US the stocks is up 86% over the last three months. It's also up almost 100 100% year

[Bloomberg Tech Host]

to date, I would make the point they're only halfway through the year. We'll see where we net out when the year ends.

[David Westin]

Even after recent swings, this has become a historic rally driven by one question. How long can the infrastructure spending boom last?

[Bloomberg Tech Host]

Let's get out to Bloomberg Tech Equity reporter Ryan Vlastelica. You've been writing about this on the Bloomberg and the main point being that

[David Westin]

we're on track for the biggest quarter ever on the stocks.

[Bloomberg Tech Host]

But there have been swings, there has been volatility. What do we need to know?

[Ryan Vlastelica]

Hey, yeah, so this has been a very volatile quarter for stocks, although the general move has been not just up, but dramatically up. But just to give you a sense of the volatility, just yesterday the stocks at one point fell 3%, then a reverse course and it ended up 3%. So a 6 percentage point swing within a day. And this isn't coming on any kind of fundamental change in the outlook. People are really having you a lot of debates right now about how long is this AI capex going to stay at the level that it's been for the past few years, and it's not just at this level, but it's been accelerating. How much longer can we continue to expect that kind of spending acceleration going forward? And if it starts to slow down, does that mean that we're actually at peak earnings right now? And when, if that's the case, what is the outlook for the stocks, especially following the move that we've had.

[David Westin]

Phase one of the AI wave of

[Bloomberg Tech Host]

this decade at least was in video. Right. And if you, if you expanded that GPUs and compute right now, what's driving this is memory and storage.

[David Westin]

Could you just explain a little bit

[Bloomberg Tech Host]

the biggest contributors to the rally that we've seen in chip stocks overall.

[David Westin]

Yeah.

[Ryan Vlastelica]

So I'd say the real story this year has been in particular Micron, but also Sandisk, Western Digital, Seagate, all of these companies that are involved in memory and storage. People are really starting to appreciate how central this is when you're building out data centers. And these companies have seen astronomical growth, including Micron with I believe it was just last week that its report came out and it talked. And again, extremely robust forecast really pointing to how they see visibility for a really extended period of time. This is a real change from the way Micron and other companies like this have historically operated where they were far more cyclical moving on consumer trends, including like phones, PCs, video game consoles, that kind of thing. What we've seen Apple come out and they're increasing their prices for phones and iPads and so forth. Microsoft came out and said it's going to raise the price for the Xbox because of higher memory. This has really been the story right now. This has really been the bottleneck in the AI trade. There simply are not enough memory chips being made to meet all this demand. Which means that demand is likely going to stay elevated for really the foreseeable Future. Probably into 2027, maybe into 2028. I've say maybe as early as 202030 is when this is really going to start to change.

[Bloomberg Tech Host]

Ryan, the biggest question in technology and in markets is always what happens next. Is there any sense from strategists and analysts of whether the stocks continues on this amazing trajectory for the balance of 2026?

[George Ferguson]

Mm.

[Ryan Vlastelica]

Well, I will say that most people are very confident about the fundamental story. So they do expect the CapEx to continue. They expect the demand to remain extremely. The question of course is really how much will that continue to translate to the stocks the way they have been? I think there's a little bit more skepticism about that. Some of these stocks, including intel, including arm, they are very expensive on traditional valuation metrics. A company like Micron looks pretty cheap, but historically that's been a bad time to buy it because that signals it's more near peak earnings. But again, you go back to the question of is this actually peak earnings or is this cycle very different than historical ones? And we're not anywhere near that kind of peak yet. So as far as what's going to happen, obviously nobody knows. It seems hard to imagine that we'll see another, what, 90% move over the next three months. But of course, you know, all that remains to be seen. But certainly this is where the momentum is in the market right now.

[Bloomberg Tech Host]

Bloomberg's run for Celica. Thank you very much indeed.

[David Westin]

I doesn't run on chips alone.

[Bloomberg Tech Host]

As hyperscalers continue ramping up capital spending, investors are increasingly looking beyond the likes of Nvidia to the company supplying, yes, the memory, but also networking, cooling and

[David Westin]

power needed to support the build out.

[Bloomberg Tech Host]

Joining us now is Rob Thumbel, senior portfolio manager at Sort of Capital. Just to recap, the Philadelphia Semiconductor Index

[David Westin]

is likely to have its best quarter

[Bloomberg Tech Host]

ever, 86% gain over three months. Rob, what does that signal to you?

[Rob Farmer]

Well, I think that the, you know, the story is still here. It's intact debt and it's going to continue growing and we continue to see capex spending growing and we've got an infrastructure active ETF that we've designed to capture exactly what you said, the infrastructure, that's where there's the opportunity and that includes things like Ryan and you were talking about like, like memory. But, but the base level of infrastructure is electricity and that's where we're going to see tremendous demand for electricity going forward. The US has got a competitive advantage in terms of being able to provide low cost electricity. And so we see lots of opportunities in memory and storage, but also in a really basic commodity which is electricity.

[Bloomberg Tech Host]

I'm wanting to understand, at least from

[David Westin]

your perspective, Rob, how direct the correlation

[Bloomberg Tech Host]

is between growing capital expenditure and the sort of outlook for let's say memory just to keep it more focus. If capital expenditures from the hyperscalers continue to go up, then the recipients of that Capex memory names in particular, you would expect them to have the sort of sense similar continued trajectory.

[Rob Farmer]

Yeah, I think that's a simple way to look at it. I think it's an accurate way to look at it. I think if, if capital spending continues to grow at 2030, 40% annualized growth rates, well then I think you can expect, you know, where that money going? Well, it's going into the infrastructure. So I think you can expect infrastructure memory storage to grow, Demand to grow 20, 30% liquid cooling network switches, all, all of that infrastructure. That's really essential for, for, for, for AI to continue to operate. Well, the growth rate will mirror really what capital spending does.

[David Westin]

Rob, one of the, one of the

[Bloomberg Tech Host]

many reasons we've enjoyed having you on Bloomberg Tech is you're looking at this much more holistically, right? What goes into a data center. And right at the top of the conversation we said it's more than memory, networking, power, cooling. Right now, you know, as you plan for the balance of 26, where are

[David Westin]

you positioning yourself based on your belief

[Bloomberg Tech Host]

of the main beneficiaries of this datacenter

[Rob Farmer]

build out well inside the data center. It's more, we're probably more positioned on the memory side because of what, what you were talking about with Ryan. I mean if you look at the Microns, what the earnings Micron posted, it's very clear that the market is, is undersupplied from memory.

[Lobbying Industry Expert]

Right?

[Rob Farmer]

I mean Micron posted a gross margin of 85%. I think that's 10%, 10 points higher than, than what Nvidia is. I mean, I mean that's, that's just phenomenal. Right. And the memory market as Ryan highlighted, just continues to grow. So we continue to see substantial growth in the, in the earnings and the cash flow of companies like Micron and the other memory names. Now don't forget though, the base level though of energy and electricity. That's, that's, that's probably the base level of the five layer cake that, that, that Jensen Huang likes to talk about. We have a lot of exposure to that, that as well. Energy is our, is our, our expertise I guess in the past and we still see energy, electricity being a real critical driver of this trade going forward as well.

[David Westin]

Just very quickly Rob, before we let

[Bloomberg Tech Host]

you go, SK Hynix is coming to the US capital markets with a US listing for ADRs.

[David Westin]

How would you respond to that bearing in mind that the SK has what,

[Bloomberg Tech Host]

57% market share, something like that of high bandwidth memory at present.

[Rob Farmer]

Well, as investors in infrastructure we welcome new entrants or new companies that we can buy. Right. And SJ Hynix will be at the top of the list to take a look at. We've been looking at that company obviously and have the ability to buy it internationally. But, but to buy it on a, buy it as an ADR may make it more attractive for us. We'll take a very close look at it though because it is part of that infrastructure that you were mentioning earlier and it's really critical and it's something that, that we're trying to capture for investors.

[Bloomberg Tech Host]

Okay, Rob Farmer of Tortoise Capital, somebody that is let's say across the data center from top to tail. Thank you very much indeed. Now coming up, Super Micro's Taiwan office is raided as authorities investigate alleged illegal exports to China. Those are the US listed shares of Supermicro and they are down almost 5% over a two day basis. We'll track it. This is Bloomberg Tech.

[David Westin]

Bloomberg's David Westin joins us now for

[Bloomberg Tech Host]

an important clarification on an earlier story. David?

[David Westin]

Yes, thank you. Just a short time ago we reported off of an NPR report that Justice Samuel Alito had resigned from the Supreme Court United States. That was off of npr. NPR since then has said they retract that statement. I don't know what happened. The Supreme Court has said they have made no announcement on the subject. So that report was in error. The Samuel leader Supreme Court justice has resigned from the Supreme Court the United States and we will keep you posted.

[Bloomberg Tech Host]

David Westin, thank you very much indeed. Turning back to tech, the battle over AI chips is moving beyond Washington and Beijing. Taiwanese authorities are investigating the alleged smuggling

[David Westin]

of super microservers containing in video chips to China. Underscoring the growing focus on enforcing U.S. export controls.

[Bloomberg Tech Host]

Bloomberg's Maimon Lowe reports.

[Maimon Lowe]

Sources have told us that Taiwanese authorities have raided the residences of six individuals as well as the sites of three affiliated companies, including Super Micro's office in Taiwan, as well as one of its distributors, Albatron Technology, and a Taiwanese data center operator, Chief Telecom. Now, this is part of an ongoing probe looking into the alleged smuggling of Super Microservice containing in various chips to China. Now, that's in violation of U.S. export control rules, but it's not in violation of local laws in Taiwan. But the US has been pressuring Taiwan to match the US rules, and we know the Taiwanese authorities are considering criminalizing the act of exporting these high end chips chips to China. For now, though, the only legal recourse is to find existing rules, such as falsifying documentation, for example, to charge any alleged chip smuggling case. Investigation is ongoing and supermicro has said that they will work closely with law enforcement. Minlo, Bloomberg News, Hong Kong.

[Bloomberg Tech Host]

Bloomberg's Men Menlo reporting.

[David Westin]

Washington's lobbying industry is feeling the impact

[Bloomberg Tech Host]

of the US China tech rivalry.

[David Westin]

Some of the capital's biggest lobbying firms

[Bloomberg Tech Host]

are cutting ties with Chinese tech giants,

[David Westin]

including Alibaba and Tencent, as new US

[Bloomberg Tech Host]

restrictions force them to choose between representing Chinese companies or American defense contractors. Bloomberg's Ted man joins us for more. TED it was really interesting to get into this. I learned a lot about kind of what happens in the hallways of the nation's capital.

[David Westin]

But let's start with the sort of

[Bloomberg Tech Host]

crux of what we're reporting.

[David Westin]

There is a whole industry and a

[Bloomberg Tech Host]

lobbying industry that basically now feels it can't represent some of the biggest tech companies in China.

[Lobbying Industry Analyst]

That's right.

[Lobbying Industry Expert]

The lobbying companies have reached a time for choosing here. They have to decide whether to continue to represent those companies or in so doing, they would have to forego working with companies that work with the Pentagon. And that's just too big a slice of the book of business for those major firms. And so they're having to drop the Chinese companies instead. This is something that has been building for more than a year and then they're finally at the deadline now where they had to drop those companies.

[David Westin]

Historically, sort of how effective are the tech lobbyists on on getting the government of the day to to make decisions

[Bloomberg Tech Host]

or take action that's in their favor? I mean, this administration in particular has

[David Westin]

had sort of a range of what

[Bloomberg Tech Host]

they would call hawkishness on China.

[David Westin]

The export or not to export chips

[Bloomberg Tech Host]

has kind of been at the heart of that.

[David Westin]

But I think it would be really

[Bloomberg Tech Host]

valuable to the audience to kind of understand how this is typically worked in practice.

[Lobbying Industry Expert]

Yeah, I mean, I think that the, the lobbying has been very aggressive over the years and there is a range of views here. It's also, it's the current administration, but there's a range of sort of hawkishness in Congress too, where even during the Biden administration you had some in Congress and in that administration and this one who wanted to take a harder line and basically as someone was quoted saying in our story, you know, basically stop this practice where you'd have a lobbyist coming in on behalf of a Chinese company, talking to a senator or talking to an executive branch official and then turning around and advocating on behalf of an American company or a vendor to the Pentagon. And so for a range of people in the administration and also in Congress, that just seemed like, just too brazen to them. And so this is where there's finally some teeth being applied to the law that already created this list at the Pentagon. It was a blacklist that didn't really have a lot of ramifications before now and now it really does. It's going to cost real money to these firms, but they're going to have to choose. And as we're seeing, the biggest firms are deciding to drop those Chinese clients because just the math doesn't add up.

[Bloomberg Tech Host]

Bloomberg's head man, thank you very much indeed. Another story. Apple is reportedly seeking the Trump administration's

[David Westin]

approval to buy memory chips from blacklisted

[Bloomberg Tech Host]

Chinese chip maker cxmt. The Financial Times says the company has

[David Westin]

been lobbying US Officials as it looks

[Bloomberg Tech Host]

to offer set rising memory costs, a

[David Westin]

move that's already drawing criticism from lawmakers.

[Bloomberg Tech Host]

Senator Tom Cotton of Arkansas warning on

[David Westin]

quote using blacklisted Chinese chips would be a grave mistake for Apple. Doing so would risk long term shareholder value, the privacy of their customers and

[Bloomberg Tech Host]

the security of this country.

[David Westin]

Coming up, how a costly mix up shot more than $1 billion in Korean demand out of the Space X IPO. The details next.

[Bloomberg Tech Host]

This is Bloomberg Tech.

[EY Consulting Narrator]

You have invested in artificial intelligence. Maybe you have pilots or even proofs of concepts that show real promise. The next opportunity is scaling that success across the business. At EY Consulting, we help organizations redesign how work gets done so innovation can move beyond the nascent stage. By addressing architecture, operating models and governance, we help AI deliver real lasting value at scale. When AI fits how you actually work, that is EY Consulting.

[IBM Narrator]

So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a Global workforce of 300,000 can use AI to fill their HR questions. Resolving 94% of common questions, not noise Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business.

[Public.com Advertiser]

IBM support for the show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk. Monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent and not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

[Public.com Legal Disclaimer]

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors LLC SEC registered advisor complete disclosures [e-mail] disclosures and Houston has checked your suit parameters.

[NASA Narrator]

We are good to go. So with that Chris, you can open the hatch thermal cover.

[David Westin]

You're looking at pictures of NASA astronauts Chris Williams and Jessica Meir opening an

[Bloomberg Tech Host]

airlock on the International Space Station.

[David Westin]

The pair are replacing a wrist joint on the Canadarm2, a 17 meter long robotic arm that is essential to the ISS for tasks like grabbing cargo, carrying spacecraft before they dock. The works expected to keep the astronauts in the vacuum of space for more than six hours. Definitely not your average maintenance call.

[Bloomberg Tech Host]

Now turning to other things that are

[David Westin]

out of this world, let's take a look at today's big number. 800%. That's how much Space X's revenue could climb by 2030 based on a new

[Bloomberg Tech Host]

model from Bloomberg Intelligence.

[David Westin]

The main driver of that data center agreements with its XI unit still even as sales rise almost nine times those same by researchers say Space X is valuation could be brought down closer to Earth.

[Bloomberg Tech Host]

Let's talk to one of them. George Ferguson leads aerospace defense coverage for Bloomberg Intelligence.

[David Westin]

You've been keeping the deck and the

[Bloomberg Tech Host]

research updated so that's really interesting. You see top line Growth and the

[David Westin]

reason why is clear valuation being kept

[Bloomberg Tech Host]

in Earth's gravitational pull.

[David Westin]

What's the thesis?

[George Ferguson]

Yeah, I mean I think the thesis here really is there needs to be a lot of growth in order for Space X to sort of merge into valuations that are similar to the other hyperscaler peers like Microsoft, Amazon, you know, Google met those, those companies. So, you know, at the IPO price, we measured everything at the IPO price. SpaceX is very richly valued. And if you're so, if you're involved in it, it's all about this turning around the AI story, right? They've built these big Colossus 1 and Colossus to, you know, computer. Sorry, it's the names escape me here. The data center, sorry, a long day already and you know they're going to sell out some of that capacity and they need to build some of the advertising they've bought in some other businesses. I'm going to try to swing that business from 5 billion ish losses into something that's a little bit, you know, 4 billion profitable by 2030. And that swing is really what brings Space X into profitability. But the revenue at that, at that group is going to grow and be largely responsible for getting this company to $160 billion of revenue potentially we think in 2030. So that's core to I think the thesis around Space X right now.

[Bloomberg Tech Host]

Bloomberg intelligence analyst George Ferguson with the BI thesis on Space X, thank you very much to stick with Space X.

[David Westin]

And if you've ever felt left out,

[Bloomberg Tech Host]

spare a thought for Mirai Asset Sales securities.

[David Westin]

The South Korean firm was the Only

[Bloomberg Tech Host]

one of 23 underwriters to receive no stock in Space X's Mega IPO, no allocation at all. And Bloomberg reporting, it was all one big for the Korean asset manager, embarrassing mix up. Bloomberg's Bailey Lipschultz is with us. Try and explain it. There's basically a process that happens in the weeks before an IPO and there has been a misunderstood communication in that process.

[Bailey Lipschultz]

Yeah, we go back to May and all these banks were compiling orders or at least indications of interest. So when you're talking about tapping retail, promoting this across your retail channel, saying basically let us know if you're interested in buying Space X and how much you would want to buy where I did that. And they said, well, we have more than $1 billion of demand from these indication of interests. They submit that to Goldman Sachs, Morgan Stanley, the big banks running the initial public offering. And according to Bloomberg reporting, they thought that's all they had to do, except when you get closer to the launch and closer to the pricing dates in June, you need to actually show up with an order book. So according to our reporting, the bank never submitted actual orders on behalf of its clients. So more than $1 billion that was indicated in interest according to Marijuana, never actually was passed along formally to Goldman Sachs and Morgan Stanley. Therefore they get zero. It certainly was an interesting update and something a lot of people were questioning when we saw the initial distributions.

[Bloomberg Tech Host]

Bailey, real quick, there are serious repercussions for Mirai. What do we know about the fallout from this?

[Bailey Lipschultz]

Yeah, the regulators in South Korea are looking through what this ultimately could mean not only for the bank, but kind of for the entire distribution. It's something that I think we will see a formal kind of ruling, a formal investigation conducted. We remain to be it remains to be seen when that will come out. But that certainly that's top of mind again for the entire organization and really for everyone who's a retail trader in South Korea.

[Bloomberg Tech Host]

Bloomberg's Bailey Schultz with what is the most read story across Bloomberg today and no surprise linked to Space X. We're looking at shares of AT&T T Mobile and Verizon.

[David Westin]

In all three cases down significantly.

[Bloomberg Tech Host]

And for a second day, Bloomberg had

[David Westin]

reported June 26 that Space X and Charter Communications had held high level talks about partnering on a consumer mobile phone offering. And while not drawing too close, a direct or causal link like everything I'm

[Bloomberg Tech Host]

reading on the Bloomberg terminal is that the downward pressure on these carriers. Is the idea that Space X comes

[David Westin]

in if those reports from Bloomberg about

[Bloomberg Tech Host]

Space X working with Charter accurate and disrupts that space?

[David Westin]

Space X particularly in the context of Starlink, already has relationships with with a couple of those. So we'll continue to track that.

[Bloomberg Tech Host]

But it's interesting to see the level declines.

[David Westin]

It's half time in the show coming up, Gavin new batty of X Joint us his startup coming out of stealth taking on chip giants, low latency approach to AI inference, serious money being raised

[Bloomberg Tech Host]

out of the gate.

[David Westin]

Busy for two years until this point haven't said very much about what they're up to. This is Bloomberg Tech. Welcome back to Bloomberg Tech. Semiconductors, an outperformance of semiconductors is the

[Bloomberg Tech Host]

story particularly in public markets right now.

[David Westin]

The NASDAQ 100 is up more than a percentage point.

[Bloomberg Tech Host]

The Philadelphia semiconductor index is up 3%. But we've seen some big swings in recent sessions even with the overall rally of this week.

[David Westin]

The bigger picture point is we're in the last trading day of June and headed for the second quarter. And the Philadelphia Semiconductor Index, or sox, is on track for its best quarter ever. It gained 86% in the last three months. It is up almost 100% year to date, although we still have a half

[Bloomberg Tech Host]

of the calendar year to go.

[David Westin]

Who knows what happens next? In a little while, we're going to have a conversation about how private markets are viewing innovation in silicon and also great inference demand and what that's doing for chips. We have a lot of other tech

[Bloomberg Tech Host]

headlines to get through. Let's get out to New York where Bloomberg's your horror and and is standing by. Hi or hi.

[Youri Horowitz]

Hi, Ed.

[Ed Ludlow]

It's time now for talking tech. First up, Tencent is going on the offensive. After a $300 billion wipeout, the Chinese tech giants is ramping up share buybacks to support a stock that's lost a third of its value since October. The move comes as investors demand proof that Tencent's massive AI pivots can generate real world revenue. Plus, the global AI boom is fueling a massive fundraising wave in Hong Kong, with companies looking to raise more than $6 billion through new listings. Leading the charge is Apple supplier Lux Share, the world's largest maker of AirPods. The company is aiming to raise up to $3.1 billion in what would be Hong Kong's biggest IPO of the year. And while Hong Kong's IPO market is booming, it's been a much tougher year for Chinese tech. The sector is on track for its worst underperformance against global markets since 2001, with the MSCI China Index down 15% this year. Analysts say weaken consumer spending and a lack of homegrown hardware leaders have left China trailing the global rally.

[Bloomberg Tech Host]

Ed, all right, let's get to private markets.

[David Westin]

Startup Etched is emerging from stealth with an eye towards taking on chip heavyweights. Like in video is the industry shifts

[Bloomberg Tech Host]

from training AI models to running them. Inference. The company's raised $800 million in funding

[David Westin]

out of the gate, including backing from

[Bloomberg Tech Host]

the likes of Jane street and TSMC linked firm Venture Tech Alliance. CEO Gavin Abbati joins us now. You have introduced a rack scale system. Very interesting, interesting split memory design. Very focused on inference.

[David Westin]

We'll get into all the money you

[Bloomberg Tech Host]

raise and what you've been doing quietly for two years. But could we start on the system?

[David Westin]

What is etched? What is it?

[Bloomberg Tech Host]

What is it pitching?

[Gavin Abbati]

Well, as just building Rackscale inference systems really to go and unveil both our funding and two of our core technologies that make the tech Work what we call low voltage inference and cluster scale memory. When you think about inference, you think about pre fill and decode. Yes, that is reading in all the input data and producing out those decode tokens.

[Bloomberg Tech Host]

We're just showing an image of the system on the screen. The rack scale inference system, what is it we're looking at? Break it down for us.

[Gavin Abbati]

So right here you see one of our racks. This thing comes preassembled with 32 of our chips in it for our first gen product. And what you have is our cluster scale memory tactical of linking those chips. And this technology allows for very low latency communication between chips. And that then allows one chip to read and use the HBM and SRAM memory of other chips in its system.

[Bloomberg Tech Host]

You have a very interesting story. You've clearly been busy for a couple of years, but you've raised a significant amount of money from a very interesting list of backers. Just reflect on that for a minute. I mean how have you been able to to convince a Jane street of the effectiveness of the technology and why raise capital at that level?

[Gavin Abbati]

Well, I think if you look at our backers, they are extremely technical. To go ahead and take a bet like this on somebody like myself and my co founders, you need to go ahead and be very first principles driven, understand the tech very, very deeply and see why the market is going to be so big and why this technology is fundamentally better. And our backers like Jane street and Better Check alliance have big chip teams and they get it.

[Bloomberg Tech Host]

We had reported, I think that that money was raised at around a $5 billion valuation. But what's astonishing is, you know, with respect, the brief history of the company. Right. How long when did you come up with the idea?

[David Westin]

What was that first couple of years

[Bloomberg Tech Host]

of trying to get set up like?

[Gavin Abbati]

Well, it took a lot of work to get to this point. We're at a spot today where we have the rack scale inference systems running and we have this tech proven out. And while this not a low valuation, the fact that we have the tech to back it up I think makes it make sense.

[Bloomberg Tech Host]

I'm really interested by the specifics of the system on the program of late. Just by way of example, you know, the pitch of Cerebras is its insulation from what's happening in high bandwidth memory because it doesn't rely on hamburger high bandwidth memory. SRAM is what they have configured. How does that work for Edge and its system?

[Gavin Abbati]

Well, for us we're able to go ahead and get more out of the same volume of HBM and one of the ways we do it is a tech we call low voltage inference. We want to be able to use the same HBM in the same SRAM to run way, way more tokens for more users. But the bottom, like here typically is power. You look at a gpu, it thermally throttles. You cannot fit more compute onto that same chip. So what we do is we lower the voltage a lot. We run under half the voltage of typical Nvidia GPUs and as a result we're able to get very large power savings. And that in turn means you can have more users on the same chip and get more mileage out of your same HBM bandwidth.

[Bloomberg Tech Host]

If you think about the economic benefits for the customer, the user, then you would pitch this as being superior on essentially a dollar per token basis.

[Gavin Abbati]

Absolutely. We think about this as economies of scale. You can go have more infrastructure that allows you to go ahead and get a much lower cost per user. And as the models get bigger, that cluster scale memory deck is going to give more and more of an advantage.

[Bloomberg Tech Host]

The world we're in is that, you know, for some time we've been talking about better performing systems coming for Nvidia architecture. Right. Nvidia still has a technical monopoly in the market.

[David Westin]

What does the pathway look like for you to scale?

[Bloomberg Tech Host]

And is there anything you can say about sort of real world workloads that are being run on your systems, real world revenues that you're already able to point to as evidence that this will be out there in a meaningful way?

[Gavin Abbati]

Well, we are running some benchmarks and we are seeing best in the world performance, performance. But what gets me really excited outside

[Bloomberg Tech Host]

of the lab environment though, we've had

[Gavin Abbati]

some customers test the system. But what gets me really excited on this is production that to make a big difference you have to build a lot of these products. And we have a world class platform in production.

[Bloomberg Tech Host]

That explains the capital that you raised.

[Gavin Abbati]

It's a key part of it. The team is such a massive part of our story. Around half of our platform team is from Nvidia. We're lucky to have some of the best, including our VP who ran Nvidia's Digestion HG team.

[Bloomberg Tech Host]

Gavin Batty introducing to us CEO of raising a lot of money after two very quiet years building a low voltage inference system. Come back. Thank you very much indeed. Now coming up on the show, the US has long been a top destination for talented immigrants. But increasingly restrictive immigration policies are changing, changing the corporate landscape. We have a few stories next. This is Bloomberg Tech.

[Public.com Advertiser]

Support for the show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip manually sweeping idle cash Putting on a hedge on Public you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

[Public.com Legal Disclaimer]

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors, LLC. SEC registered advisor complete disclosures [e-mail] disclosures

[Lobbying Industry Analyst]

whether you're planning a big tech event, launching a new campaign, or just stocking up on team gear, finding the right promotional products makes all the difference. 4imprint offers thousands of options from on trend apparel and premium drinkware to tech totes and giveaways so you can find the right fit for any audience, purpose or budget. You can customize it all. Your logo, your message, your look and many items come with no setup charge to help you save. And if you're really watching the bottom line, you'll find standout choices at every price point so you can make a real impact while staying on budget. Plus, you'll get expert help, fast turnaround times and their 360 degree guarantee. So you can be four imprint certain your order will arrive on time and look exactly right. Whatever your goal, 4imprint makes it easy to find your perfect promo match. Explore the possibilities [e-mail] for Imprint for certain these days it seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, Secure any agent. Okta secures AI Today the Supreme Court

[David Westin]

rejected President Trump's planned restrictions on birthright

[Bloomberg Tech Host]

citizenship invalidating a central plank of his immigration agenda.

[David Westin]

The court saying the executive order couldn't be squared with the Constitution's 14th Amendment,

[Bloomberg Tech Host]

which guarantees citizens citizenship to virtually everyone

[David Westin]

born on U.S. soil.

[Bloomberg Tech Host]

Bloomberg's Washington correspondent, Tyler Kendall is standing by outside of the Supreme Court. What do we need to know?

[Tyler Kendall]

Well, just to underscore the point that you made about how this really does reject a central pillar of President Trump's immigration agenda, I was in this very spot back in April when President Trump became the first sitting US President in modern history to ever attend all oral arguments in person. That is how critical the administration viewed this policy to its broader agenda. But ultimately, the decision isn't surprising, right? We got these signals from the justices during oral arguments that this was how this case was going to go. In fact, President Trump himself had indicated that he didn't think that the justices were going to go his way. But as you mentioned, it really does come down to that executive order that President Trump signed on his very first day in office, which sought to restrict automatic birthright citizenship to those with at least one parent who is a US Citizen or green card holder, which meant that newborn children of parents that are on temporary visas would not be able to be eligible. But the justices ultimately looked at those five keywords of the citizenship clause under the 14th Amendment, which says that if you are born in the United States and, quote, subject to the jurisdiction thereof, then you are a US Circumstance citizen. These justices sided with that longstanding legal precedent. And Ed, as you well know, it could have very broad ranging impacts for the nearly 255,000 children of undocumented immigrants that are born in this country each year.

[Bloomberg Tech Host]

Bloomberg's Tyler Kendall, thank you very much.

[David Westin]

The US has long been a top

[Bloomberg Tech Host]

destination for talented immigrants.

[David Westin]

In fact, two thirds of its tech

[Bloomberg Tech Host]

workers in Silicon Valley are foreign born.

[David Westin]

While the US has spent decades relying

[Bloomberg Tech Host]

on top tier talent from nations like India and China, increasingly restrictive immigration policies are changing the calculus. Bloomberg Originals did a deep dive.

[Bloomberg Originals Narrator]

This story is all about the American dream. It used to be that coming to the US Was this beacon of opportunity for skilled immigrants who wanted to pursue their fortune. And in turn, the US Received all the innovation that comes with having top talent. But now, with all the administration chaos and the visa back and forth, that calculus is changing.

[Immigration Expert]

The trend we're seeing is that immigrant workers who feel like they've done everything right to stay in this country are now wondering if the country wants them at all. This could affect the competitive advantage that America's held for decades. Each year the government issues 400,000 F1 visas for foreign students who want to come to an American university. At the same time, they offer 85,000 H1B visas for international talent that want to come and work at American companies. The H1B visa has been seen as the most viable way to secure a green card and eventually have a life

[Bloomberg Originals Narrator]

in the US Two thirds of tech workers in Silicon Valley are foreign born. Even though the US Is now a powerhouse of the AI fueled economy, it's reliant for years and years and years on a lot of skilled immigrants coming from countries like India and China.

[Immigration Expert]

Making matters more complicated for skilled immigrants, the Trump administration is flip flopping on immigration policy.

[Bloomberg Originals Narrator]

All the 50 skilled immigrants that we spoke to, that was a sticking point for them. That was a moment where the path that they had charted would not be possible anymore.

[David Westin]

You can read and watch the Full

[Bloomberg Tech Host]

report on bloomberg.com more on immigration. So after the Supreme Court officially struck down President Trump's signature restrictions on birthright citizenship this morning, with implications for the

[David Westin]

future US Tech workforce, which relies heavily

[Bloomberg Tech Host]

on immigrant immigrant talent, as was just

[David Westin]

outlined, new data by handshake shows the share of entry level jobs offering visa sponsorship has been plummeted to just 2.3% this year.

[Bloomberg Tech Host]

Joining us now to break down what is at stake and what is happening, Hebrew and the partner with Ericsson Immigration Group. Welcome back to Bloomberg Tech. I want to start with the Supreme Court decision, if I may. You know, as many would point out, those in the technology industry from all around the world come to the United States. It's in part for their careers, right, to seek a job in the technology

[David Westin]

sector, but also with the hope that,

[Bloomberg Tech Host]

you know, if they have a family here, it offers a future to their family. I would just ask, you know, based

[David Westin]

on your client base, your experience working

[Bloomberg Tech Host]

as an attorney in the field, what, what you make of the decision by the Supreme Court this morning.

[Hebrew Band]

So I think that this is going to be good news for the tech industry, the health care industry, financial services, these are all industries that rely very heavily, heavily on workers from countries that are heavily represented in the H1B and the L1 pipelines in particular. So I think that first and foremost, this is a win for stability. The last 18 months have involved a tremendous amount of change. And I think that, you know, had the decision gone a different way, then the immediate question that would have occurred to a lot of business leaders is if the court was willing to go that far, what other reinterpretations would have been possible? And so you know, with the uncertainty itself being arguably economically damaging, I think that, again, this is a win for stability and continuity people.

[David Westin]

I want to go back to that

[Bloomberg Tech Host]

data, the handshake data, that the share of entry level jobs offering visa sponsorship has plummeted to just 2.3%. You can see, based on that, that chart, the visual alone, that, you know, in 2023, we were above, above 10%.

[David Westin]

What does that data tell you about the impact of policy?

[Hebrew Band]

I mean, I think that we're seeing basically a acceleration of the talent drain, right? We're already seeing brain drain. Foreign job seeker interest in the United States is at a six year low. There are estimates that there has been a 17% drop in enrollment on the part of international students. The economic consequences of that foreign student enrollment drop is by some measures quantified to be over $1 billion. And so I think what this is demonstrating is again, the fact that interest is starting to be directed elsewhere, but that you cannot divorce the overlap between the immigration policies as well as their downstream economic effects. And a lot of these trends are starting to have economic impact on, you know, U.S. workers and the U.S. labor forces as well.

[David Westin]

If you could give, give any case

[Bloomberg Tech Host]

study or just sort of illustrative example of if you're working for a technology company or you are representing somebody that's trying to secure a job in the tech sector in this country, like, what

[David Westin]

is the real world experience of those

[Bloomberg Tech Host]

two entities in securing a visa in this current environment?

[Hebrew Band]

I mean, there is a tremendous amount of scrutiny, there is a tremendous amount of vetting. The evidentiary burden is becoming increasingly more strict. And then when it comes to individuals who are from certain countries, the wait time before an individual can convert to a legal permanent resident of the United States is years and years, if not decades. And so, you know, this is not as simple as saying that foreign workers are taking jobs from US Workers. Foreign workers actually have to jump through a lot of hoops to be able to achieve their immigration goals. And had this decision gone the other way, I think that there would have been a segment of that high skilled foreign talent demographic that would have seriously, you know, rethought the decision to choose, you know, the United States as their permanent home.

[Bloomberg Tech Host]

What are the technology companies doing?

[David Westin]

Are they spending more to secure that talent?

[Bloomberg Tech Host]

Are they lobbying hard to have policy change?

[Hebrew Band]

I think companies just want to be able to hire who they want to hire. And when it comes down to finding the right talent, they're interested in onboarding that individual as quickly as possible, regardless of where that Individual is from the industries in which a lot of tech companies operate are becoming increasingly competitive. It always feels like it's a race to innovate all the time. And so companies just want to be able to hire without any sort of, you know, burden or hindrance so that they can remain competitive. And so when they hone in on a qualified candidate, they want to be able to do whatever it takes to be able to bring them on. The more barriers that are presented in a company, a US Company's ability to do that, the further advantage it creates for companies outside of the United States. States. And so, you know, what I've observed is that companies, while the overall demand for, you know, foreign talent has decreased slightly because companies seem to be hiring less in general, once they decide that there is a particular candidate that fits their need, they're really willing to do whatever it takes to be able to bring them on because the stakes are so high.

[Bloomberg Tech Host]

He Band Erickson Immigration Group on what's happening with the technology workforce with immigration policy and this morning's Supreme Court decision. Thank you very much indeed. Now coming up, media conglomerate Comcast has

[David Westin]

plans to split up NBC Universal and

[Bloomberg Tech Host]

Sky from the rest of its business. The spin off is meant to allow

[David Westin]

for more strategic flexibility.

[Bloomberg Tech Host]

Get more details next. This is Bloomberg.

[David Westin]

Tech. Media giant Comcast has plans to split

[Bloomberg Tech Host]

up NBC Universal and Sky, its European

[David Westin]

media unit, into standalone companies. The strategic move is intended to set the company up with more deals down the line.

[Bloomberg Tech Host]

And it comes after Comcast lost out on the bidding war for Warner Brothers months prior. Bloomberg's Kelsey Griffith has been all over it. I kind of have two big questions,

[David Westin]

which is why, you know, why split

[Bloomberg Tech Host]

up the company in that way?

[David Westin]

But also it kind of feels like

[Bloomberg Tech Host]

the era of the big conglomerates is kind of over.

[Kelsey Griffith]

That's right. I think we've seen Comcast sort of following this playbook that has come before them. We saw AT&T try the big media conglomerate strategy and, and they ended up selling off WarnerMedia a couple of years ago. So Comcast, it's their time now. They have decided that the market would prefer pure play media, pure play broadband companies. And that's the strategy that they're going to go forward with. I think one of the reasons that this might be strategic for them in the short term is that they don't want to see a bad broadband quarter weighing on an otherwise good quarter for, say, the box office or their theme park work. So that's potentially part of the thinking there.

[Bloomberg Tech Host]

I'm very interested in what happens to Brian Roberts, the chairman and co CEO of Comcast, somebody that I've tried to interview several times. I would love to speak to to him. So if you're watching Mr. Roberts, if this plan proceeds.

[Kelsey Griffith]

Yeah, so I got to speak with the executive team yesterday and they were telling me that Brian Roberts has no plans to retire anytime soon. He is going to take a step back from being co chairman or sorry co CEO of Comcast. We don't know yet what he is going to do in terms of his chairmanship role. Will he stick around as chairman of both of the split companies of just one of them? We're not sure yet. But he does say he plans to be in involved on some level, much in the same way that he has been in the past.

[Bloomberg Tech Host]

Kelsey, shifting to another story really quickly. A lot of the carriers are under pressure. You reported on the 26th Space X is talking with Charter and that seems to be account for some of that pressure.

[Kelsey Griffith]

Yes, this has been a really interesting thing to watch. About a year ago we saw Space X buy a lot of spectrum from EchoStar and at the time they were still saying they really just wanted to do this to boost their direct to sell offerings. Since then SpaceX has obviously gone through a massive IPO and it has started edging closer to potentially setting up plans for a standalone mobile carrier. And I think that's what's interesting about this report. This is the some of the first concrete evidence we've seen that this is potentially on the table.

[Bloomberg Tech Host]

The best. Kelsey Griffiths thank you much, very very much indeed. That does it for this edition of Bloomberg Tech. Really packed show. Lots to recap on the podcast. You know where to find it on the Bloomberg Terminal as well as online on Apple, Spotify and Iheart from San Francisco. This is Bloomberg Tech.

[Odoo Advertiser]

Running a business shouldn't feel like surviving a software group project. One app for accounting, another for inventory, another for sales and somehow none of them talk to each other. That's where Odoo comes in. An all in one business management software that brings every part of your business together from sales and accounting to inventory and marketing, all in one powerful platform. No messy integrations, no bouncing between tabs, and best of all, no spreadsheets. Stop managing software and start managing your business with one unified system. Try for free today at odoo.com iheartradio that's O D O-O-O.com iheartradio when you're

[Public.com Advertiser]

running a business, the best days are the ones where priorities stay on track for mid size and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering and claims experience. Learn more@the Hartford.com riskmitigation policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut as industries

[Youri Horowitz]

evolve faster than ever, companies need an environment that accelerates strategic growth, and Michigan delivers on that promise. From emerging startups to global enterprises, Michigan offers what executives make value most a resilient, innovative ecosystem, diverse communities that attract top talent and a quality of life that supports work life. Balance with our unified team Michigan approach businesses scale faster and compete at the highest level. Michigan Pure Opportunity Seize your opportunity at michiganbusiness.org.