OpenAI Linked Stocks Fall on Report It Missed Targets

Summary

Bloomberg Tech Podcast Summary

Episode: OpenAI Linked Stocks Fall on Report It Missed Targets
Date: April 28, 2026
Hosts: Caroline Hyde (New York), Ed Ludlow (San Francisco)
Key Guests/Commentators: Seth Figman (Bloomberg Tech Editor), Anurag Rana (Bloomberg Intelligence), Tiffany Wade (Columbia Threadneedle Investments), Carmen Reinecke (Bloomberg Equity Reporter), Dave Lee (Bloomberg Opinion), Evan Rogers (True Anomaly CEO), Peter Ahlstrom (Asia Tech Editor), Shell CEO

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Episode Overview

This episode dives into the Wall Street Journal’s recent report that OpenAI missed both its revenue and user growth targets, triggering a sell-off in stocks with exposure to OpenAI. The conversation spans the ripple effects across tech and infrastructure stocks, the competitive AI landscape, implications for IPOs, and the broader market’s need for clearer evidence of AI demand. Additional segments cover regulatory drama involving China and Silicon Valley, a close-up on the defense tech startup True Anomaly, and a substantial M&A deal by Shell focused on energy security.

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Key Discussion Points & Insights

1. OpenAI’s Missed Targets & Market Fallout

• [02:24–05:24] Wall Street Journal reports OpenAI missed financial and user targets for 2025 and running behind on 2026 monthly revenue.

  • Stocks Impacted: Oracle, CoreWeave, NeoCloud, and other companies with OpenAI-linked exposure are selling off. Notably, Oracle is OpenAI’s primary infrastructure partner.
  • Investor Concerns: The main anxiety centers on revenue growth falling short of expectations, potentially forcing OpenAI to scale back its massive infrastructure commitments and sending shocks through the entire AI ecosystem.
  • Quote:

    “If OpenAI has to rethink the hundreds of billions of dollars that it plans to spend…that could have ripple effects for a lot of these partners.”
    — Seth Figman (Bloomberg Tech Editor), [04:52]

• OpenAI’s Response:

  • The company pushed back via a statement to Bloomberg, claiming their “business is firing on all cylinders” with strong growth, but provided no specifics.
  • Quote:

    “They’re saying their business is firing on all cylinders, right now, with strong growth in their nascent advertising efforts.”
    — Seth Figman, [04:52]

2. IPO Prospects and Ecosystem Effects

• [05:24–06:55] The disappointing numbers jeopardize OpenAI’s IPO timetable and raise questions about continued infrastructure investment.
  • Competitive Pressure: Google and Anthropic’s rapid progress is cited as a possible reason for OpenAI missing growth targets.
  • Valuations, Spending & Growth: OpenAI has been bullish about growing to $100 billion in annual revenue, but current growth seems likely too slow to justify $600 billion in projected infrastructure spend.
  • Quote:

    “If their business is not where they want it to be, that’s going to add pressure for them to maybe delay [the IPO] …”
    — Seth Figman, [05:39]

  • Investors now seek real “evidence of demand,” beyond CapEx announcements.

    “We actually now do need evidence of demand. … What we don’t have is what’s coming out the other side.”
    — Ed Ludlow, [06:55]

3. Cloud and Compute Demand Dynamics

• [07:25–10:16]
  • AI Demand Remains Robust: Anurag Rana of Bloomberg Intelligence stresses that cloud infrastructure demand remains strong, with other players (Anthropic, Google) able to pick up any slack if OpenAI scales back.
  • Oracle Most Exposed: Oracle could be especially vulnerable to pullbacks from OpenAI, given its $300+ billion commitment; Amazon Web Services may benefit as newer agreements shift demand.
  • Quote:

    “Even if things were really fine with OpenAI and there were no changes, there could be transfer of that demand from Oracle to potentially Amazon’s web services.”
    — Anurag Rana, [08:16]

  • The AI compute arms race continues, but the “more compute = better model” paradigm may be changing as models and applications evolve.

4. Competitive Landscape: Alphabet/Google vs. OpenAI vs. Anthropic

• [10:52–14:18]

  • Stock Divergence: Google-exposed stocks have outperformed OpenAI-exposed ones, reflecting recent perceptions of product supremacy (Gemini models) and shifting market sentiment.
  • Anthropic’s Momentum: Anthropic has been gaining significant market share, partly due to successful enterprise products and faster product launch cadence.
  • OpenAI’s Headwinds: OpenAI’s exclusivity deal with Microsoft may have slowed enterprise adoption, though it has recently been renegotiated.
  • Quote:

    “Anthropic…with their cloud code product has been a massive hit so far this year. OpenAI was a couple of months behind…Their exclusivity agreement with Microsoft may also have been a bit of a headwind to enterprise adoption.”
    — Tiffany Wade (Columbia Threadneedle), [12:26]

• Key Metrics for AI Leaders:

  • Tiffany Wade identifies user growth and enterprise adoption as the metrics for model providers, and accelerating cloud revenue as the key indicator for infrastructure providers.

    “It seems like Anthropic is leading…their focus on enterprise demand has clearly been a benefit.”
    — Tiffany Wade, [14:18]

5. Market Sentiment & Infrastructure vs. Software

• [14:52–15:34]
  • The “hardware and infrastructure wins, software still anxiety-ridden” narrative is expected to continue through 2026, though some pullback in overheated semiconductor stocks is anticipated.
  • Investors are closely watching upcoming hyperscaler earnings to gauge ongoing AI-related CapEx and software monetization.

6. Bloomberg Equity Perspective on Sell-Off & Broader Implications

• [30:32–32:36]
  • Carmen Reinecke highlights that the sell-off is affecting any stock tied to OpenAI, with renewed worries about circular financing and underperformance compared to Alphabet-linked equities.
  • Upcoming earnings for the “four biggest hyperscalers,” Apple and Qualcomm could swing markets dramatically depending on AI growth signals.

7. OpenAI vs. Elon Musk Lawsuit

• [33:24–37:27]
  • The trial between Elon Musk and OpenAI over the latter’s for-profit shift is underway.
  • Dave Lee (Bloomberg Opinion) contends the trial is a win for Musk as it keeps a cloud over OpenAI’s IPO prospects and exposes distractions and financial “baggage.”
  • Baggage includes: renegotiations with Microsoft, cancellation of non-core projects (e.g., SOAR video app), and overall lack of profitability until at least 2030.
  • Quote:

    “What this case is doing at the very least is putting a cloud over OpenAI’s own efforts to go public themselves…”
    — Dave Lee, [33:55]

8. China’s Regulatory Reach & US-Chinese Firms Response

• [26:19–29:18]
  • China is intervening in big deals post-closure, such as forcing Meta to undo a completed acquisition. This is reshaping how Chinese-rooted tech founders structure businesses, often isolating US and Chinese units to avoid regulatory backlash.
  • Example: CEO of MirrorMind is strictly separating Chinese and US operations for data/code.

9. Spotlight: True Anomaly’s $650M Raise for Space Defense

• [37:52–42:53]
  • CEO Evan Rogers explains the nature of modern space warfare and True Anomaly’s focus on highly maneuverable “Jackal” vehicles for US Space Force, designed to surveil and counter adversary satellites, especially from China.
  • The Pentagon’s changing procurement gives startups more opportunities.

10. Shell’s $13.6B Canadian Energy Deal Amid Tight Global Markets

• [46:54–55:15]
  • Shell CEO discusses the logic for acquiring Canadian oil and gas producer ARC Resources, aiming for energy security and production growth through 2035, driven by high demand (partly due to AI/data center growth).
  • Global energy supply is described as “tight,” with OPEC’s influence shifting and supply disruptions ongoing.

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Notable Quotes & Memorable Moments

• “If OpenAI has to reduce in any form its commitments to infrastructure spending, it could have ripple effects for the wider landscape.”
  — Seth Figman, Bloomberg Tech Editor [03:52]

• “We actually now do need evidence of demand...What we don’t have is what’s coming out the other side.”
  — Ed Ludlow, Host [06:55]

• “Even if things were really fine with OpenAI...there could be transfer of that demand from Oracle to potentially Amazon’s web services.”
  — Anurag Rana, Bloomberg Intelligence [08:16]

• “Anthropic…with their cloud code product has been a massive hit...OpenAI was a couple of months behind in releasing their products.”
  — Tiffany Wade [12:26]

• “Space is now a war fighting domain.... The foundation of combat capability is intelligence.”
  — Evan Rogers, True Anomaly CEO [39:50]

• “The markets are tight…We’re talking about demand curtailment in certain areas. We’re talking about fuel switching. This is profound.”
  — Shell CEO [51:50]

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Key Timestamps for Important Segments

• [02:24–05:24]: OpenAI financial and user growth misses reported by WSJ
• [04:52]: Seth Figman on ripple effects for partners
• [05:24–06:55]: IPO implications and AI competitive environment
• [07:25–10:16]: Anurag Rana on cloud demand, impact on Oracle, AWS
• [12:00–14:18]: Tiffany Wade on AI stock divergence and competitive positioning
• [30:32–32:36]: Carmen Reinecke on equity sell-off, circular financing fears
• [33:24–37:27]: Dave Lee on Elon Musk lawsuit and OpenAI’s “baggage”
• [37:52–42:53]: Evan Rogers/True Anomaly on space defense, US-China space race
• [46:54–55:15]: Shell CEO on major M&A deal and global energy supply crunch

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Tone and Style Highlights

The hosts maintain an incisive, fast-moving and analytical tone typical of financial and tech news coverage. Guests contribute expert, occasionally candid industry analysis (“soap opera in Silicon Valley”), while the reporting is closely tied to market sentiment and real-time stock reactions.

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Bottom Line for Non-Listeners

This episode is essential listening for anyone tracking the AI investment cycle, infrastructure ramifications, and the evolving competitive landscape. The OpenAI news is portrayed as a potential inflection point for AI’s immediate monetization narrative—casting doubt, at least temporarily, on the “infinite demand” story driving much of tech’s recent gains. The episode is rich in expert perspectives, market context, and direct, quotable commentary from leading analysts and industry insiders.

Transcript

[Deloitte Representative]

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[Bloomberg News Intro/Outro]

Bloomberg Audio

[Bloomberg Tech Reporter/Anchor]

Studios Podcasts Radio News.

[Bloomberg Tech Anchor]

Bloomberg Tech is live from coast to

[Deloitte Representative]

coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.

[Bloomberg Tech Host]

This is Bloomberg Tech Coming up Open Air Link Stock slump after the Wall Street Journal reported that the company failed to meet its own sales and user targets.

[Bloomberg Tech Reporter/Anchor]

Plus, a jury has been selected for the trial between some Altman and Elon Musk, who claims Open Air abandoned its founding mission. Arguments begin today and Late Night host

[Bloomberg Tech Host]

Jimmy Kimmel has defended comments he made that prompted President Trump to call for him to be fired. We head to Hollywood for the latest.

[Bloomberg Tech Reporter/Anchor]

First we head to these markets and they are under pressure yes, geopolitical tensions still loom large and we think a lot about Iran and the Strait of Hormu. But we also think about what's currently happening in the sell off related to techniques off by one and a quarter percent on the NASDAQ 100 worst day in a month. Why you're going to get to those details. It's all Open Air related.

[Bloomberg Tech Host]

Yep. Look at this board. These are the SoftBank US listed shares that have tens of billions of dollars of exposure to Open Air, Core Weave, Clear Neo cloud exposure to OpenAI. Oracle, the primary infrastructure partner for OpenAI. The journal reporting that OpenAI missed its own metrics, financial ones for 2025 and contem simultaneously. Caro the user number is not where they want it to be.

[Bloomberg Tech Reporter/Anchor]

It's not. And this is all reporting from the Wall Street Journal. We want to dig into that. Bloomberg Tech Editor Seth Figman what is the biggest anxiety for investors? Is it that they're not yet at a billion users have been hoped by investors thus far? Is it more the revenues that aren't hitting internal targets? What is it about this reporting?

[Bloomberg Tech Editor Seth Figman]

You know, I'd say probably more the revenue side of things. Ultimately, the slide company is still growing pretty fast, but if they fall short of their own expectations, even by a modest amount, it might affect the wider ecosystem. As a reminder, as we've reported hoping it has increasingly set itself up at the center of this complex web of investments from chip suppliers and cloud providers. And if it has to reduce in any form its commitments to infrastructure spending, it could have ripple effects for the wider landscape.

[Bloomberg Tech Host]

I'm just going to go through what the Journal reported. Chat GPT missed its annual revenue target in 25. It missed its internal full year revenue goal and then for 26 monthly revenue targets are behind. And the big one probably is the billion figure for GPT users. Again, all Wall Street Journal reporting. And I note that in that story there is a pretty strong statement from both Sarah Fry, the CFO and CEO Sam Altman. What, what's the logic here of why we see all these stocks react? It's just their partners or what?

[Bloomberg Tech Editor Seth Figman]

Yeah, I think that they're partners and ultimately if OpenAI has to rethink the hundreds of billions of dollars that it plans to spend in the next five to ten years on data centers and chips, that could have ripple effects for a lot of these partners. Now I will say you alluded to some pushback here. We're also hearing directly from Opening Eye in a statement that they're saying their business is firing on all cylinders, quote unquote. Right now with strong growth in their nascent advertising efforts on the consumer side as well as with their enterprise product. Now, they're not spelling out their financial details. Neither is the wall.

[Bloomberg Tech Reporter/Anchor]

All of this though puts the question of the IPO in the balance as well. And just the rush to be able to raise more funds publicly, does that matter in this context, particularly if we are seeing that it questions whether they're going to be able to finance that going forward for more compute?

[Bloomberg Tech Editor Seth Figman]

I think it certainly matters in probably a couple of different ways. One, if their business is not where they want it to be, that's going to add pressure for them to maybe delay a little bit longer before going public. But two, if the question here is why are they not where they want to be, it seems likely that it's because of the pressure they're facing from Google and Anthropic, the lack of which also so wants to go public as soon as this year. So if it's facing off against a possibly ascendant rival, that's going to make it even that much harder to pitch.

[Bloomberg Tech Host]

Wall street set for part of the open air story and in the Wall Street Journal's reporting and others reporting is this concern that Sarah Fryer has revenues aren't growing at the same pace. That justifies all the spending. And when you're going to ipo, that's a bit worrying if you're going to put that in front of investors. What do we know in that standpoint?

[Bloomberg Tech Editor Seth Figman]

Yeah, I mean look what this company has publicly said is I think last year they were around $13 billion in revenue as of February after they announced the mammoth funding round, they said that they were generating $2 billion in revenue a month. So you can do the math there. It's still a fast growing company, but in order to justify $600 billion in interest spending, which is what they've said, you need to be growing a bit faster than that. And Sam Altman has previously sounded quite bullish on the prospects to grow this business quite Fast, up to $100 billion of revenue in the coming years. If that's going to happen at a slower pace, they might need to rethin their data center, build out plans.

[Bloomberg Tech Host]

Bloomberg. Seth Fikaman, thank you. Bloomberg Intelligence. Out with the react Senior tech analyst Anuragrana writing that if open air sales were to miss as reported by the Wall Street Journal, it could have an impact across the entire infrastructure ecosystem. Anurag joins us now. What's so interesting about this, like the Market's response is oh, we actually now do need evidence of demand. Right. We know about the infrastructure spend that data we've got. What we don't have is what's coming out the other side. How are you computing that?

[Bloomberg Intelligence Analyst Anurag Rana]

So when we look at the entire cloud infrastructure demand, I mean that still remains very solid. Whether that's transferred from Open Air to anthropic, that is the big story that we are discussing here is whether this promise that OpenAI has made to Oracle, to Amazon, to Microsoft to go, we've, you know, how good is that promise over the long term? And I think that's the contention point. But frankly if you, if you were to put that aside, the demand for cloud infrastructure remains extremely strong right now and partially driven by anthropic and all the coding tools that we have seen over the last six months.

[Bloomberg Tech Reporter/Anchor]

What's so interesting is core, we've have come out with a statement from a spokesperson saying all we see is more demand than there is supply when it comes to compute. Right now that exactly leans into where you see Anorac. So if there was one player pulling back, there's immediately enough demand to fill that supply.

[Bloomberg Intelligence Analyst Anurag Rana]

See for somebody like Corvette, absolutely. They can backfill it with because they have agreements with metal, they have agreements with Microsoft. So I mean given their scale, it's not a big deal. And I would say the same thing for both Amazon and Microsoft because they have enough backlog coming from other places. The thing is over here, Oracle is the one where Open Air has the largest commitment, which was $300 billion plus. Now this is where you would see that how will that number shape up in the coming years? You know, I would argue that even if things were really fine with Open Air and there were no changes, there could be transfer off that demand from Oracle to potentially Amazon's web services. Because when OpenAI and Oracle signed that deal, Amazon was not in the picture. Amazon recently got included in the, in the pie and they say, and you know, OpenAI made 100 billion plus commitment with them. So you know, if they're going to cut back somewhere, I think the, my gut instinct is it's going to come more from Oracle than anybody else.

[Bloomberg Tech Reporter/Anchor]

And we see the share price reaction in Oracle today, of course, course, along with everyone else. Anurag, can I just go back to one area that has been reported is that Open I had turned to its own investors saying the reason we can stay ahead and perhaps fend off competition like an anthropic is we've got more compute Is that a winning formula for these labs right now?

[Bloomberg Intelligence Analyst Anurag Rana]

So that is the traditional mindset that the more compute that you have, the better your model is going to be. So far that trick has been working in a sense. That mod, that concept of, you know, you could say scaling laws have been working. I just don't know how that shapes up in the next iteration of model. And how big of a clusters do you need to train them and run

[Bloomberg Tech Reporter/Anchor]

out with the react out with the Bloomberg intelligence. We so appreciate it. Let's get broader market perspective now. Tiffany Wade's here with us. Columbia Threadneedle Investment Senior Portfolio Manager it's interesting how much the market reacts to this particular reporting. Is there reason to have anxiety that companies are good for the compute demand right now?

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

I think we're going to see that the compute demand continues to persist. There's so much demand and it's not just from anthropic and open air. It's really across the economy that we're seeing demand for more processing power. So I expect the spending is going to continue. But I get why we're seeing some of the stock reactions on a news report like this, especially across the tech and the semi space where these stocks have been up almost 40% over the last month. So it kind of makes sense that we're seeing them take a breather on a bigger bit of a negative news report. But I don't think that we're going to see that the story for infrastructure, you know, spang demand has cracked.

[Bloomberg Tech Host]

Tiffany, I'm right in saying that Alphabet, parent of Google, is one of your, your top holdings, one of your top names, right?

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

Yes.

[Bloomberg Tech Host]

What we've looked at is obviously the chaos in the moment. There's a big move in the session, but this is a longer term chart and it shows that Alphabet exposed stocks have massively outperformed open air exposed stocks. We can get into the different definition of each, but what does that chart tell you about your own thesis and conviction on Google?

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

Yeah, I think we're seeing the divergence here in the charts really happen according to the competitiveness of the models that have been released by both companies. Right. So Google for a while was being perceived as a bit of a loser because their models were maybe not as good as what we were seeing come out of OpenAI and anthropic. And that changed last year when they released some of their newer Gemini models and then they were seen as more of a winner. And I think that caused some of that divergence in the performance between those, those baskets of Stocks that are linked to Google and that are linked to Open Air and certainly this continues to sort of push that narrative around how competitive are open AI models versus the competitors.

[Bloomberg Tech Host]

Let's bring it back to today's top story. Stocks that have an association with Open Air are selling off pretty hard on the basis that the Journal reported it missed prior year financial targets internal and it's still not where it wants to be on chat CBT users. It seems like now we do need some more evidence of demand on a longer term basis. We're not just focused on the CapEx input. Is that where your head's at? Tiffany?

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

I think that's right. I don't think the demand overall is slowing. We're seeing amazing numbers coming out of Anthropic. They've taken up their revenue targets significantly over the course of the year. There could be a couple of things that are causing Open Air to grow a little bit slower and part of it could be that they're losing a bit of market share to Anthropic. Anthropic with their cloud code product has been a massive hit so far this year. Open Air was a couple of months behind in releasing their Codex product products. Their exclusivity agreement with Microsoft may also have been a bit of a headwind to enterprise adoption. But yesterday that agreement was renegotiated. So we might see some more opportunity for Open Air on some of the other cloud providers as more models become available elsewhere. So I think we might see some of those proof points around the growth given just, you know, having the ability to sell this Codex product across more platforms and also the ability to sell their models across across wider array of models across us and then also across the Google Cloud platform.

[Bloomberg Tech Reporter/Anchor]

And that proof point comes in earnings. I mean we're all just holding our breath for this week to really see how much capital expenditure continues to come from these mega players.

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

Yeah, well I don't think we'll know the answer for OpenAI specifically this week, but we'll certainly see if the demand continues to hold up. I think we'll be watching very closely to see the revenue growth and potentially continued sort of acceleration in revenue growth for the cloud services providers and then also what they have to say about capex plans. It's likely that we'll continue to hear the companies say that they're capacity constrained which may lead to increased CapEx expenditures for the year.

[Bloomberg Tech Host]

Tiffany, let's put the academic side of this to one side. AI is developing. AI is potentially good for the world. This is Bloomberg. We do business. So what's the metric by which we set the world order of who is leading in the field? OpenAI anthropic Alphabet meta xi how do you establish a rank?

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

I think some of the things we're looking for are certainly user growth when we're thinking about the model providers. So at the moment it seems like Anthropic is leading. Also their focus on enterprise demand has clearly been a benefit for them versus open air. Shifting demand towards enterprise or their focus towards enterprise later on and then for the cloud providers are really looking for that extension. Acceleration in the revenue for the cloud businesses is an indicator that demand continues to grow and that they're starting to generate some good returns off of the spending that they are committed to.

[Bloomberg Tech Reporter/Anchor]

From your perspective, the hardware, you opened this up by saying no wonder we perhaps get a pullback because the market has run so high. But is it for 2026? Hardware wins, infrastructure wins, software is still at play and still an anxiety ridden space right now.

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

I think we're going to see that continue to be the playbook for the year. I wouldn't be surprised if we took a little bit of a breather on some of the semiconductor stocks I mentioned. They're up almost 40% over the last month, so potentially quite crowded here going into the rest of earnings. But I think that that narrative probably continues for the rest of the year where we're seeing very good demand, very good backlog for all of the hardware companies. And these questions continue to linger about sort of the business model for, for software and SaaS gas companies.

[Bloomberg Tech Host]

Tiffany Wade of Columbia, Fred Needle. It's been a robust, timely and very useful conversation. Thank you very much. Now coming up, President Trump is once again criticizing late night host Jimmy Kimmel and calling for him to be fired. We can have the details of that next. In the meantime, President Trump is speaking in Washington where he's welcoming King Charles the Third at the White House. Let's listen.

[Bloomberg Tech Anchor]

Where are the two great leaders met? Was called the Prince of Wales, the very title that His Majesty the King held longer than any other individual in British history. And he held it with great pride and respect. It said that when Prime Minister Churchill first met this future king many decades ago, he was so impressed he made the statement. He is so young to think so much and so well. And the bust of your great Prime Minister rests proudly again in the Oval Office. We're very proud to bring it back. We brought it back. Throughout His Majesty's life, the world has witnessed that. That same thoughtfulness which first struck Britain's greatest prime minister. His Majesty's intellect, passion and devotion have been long, really a long blessing, blessing to the British people, but not only to his own country, but to the cherished bond between the United States and the United Kingdom. And I am very certain that it will continue that way long into the future. In a few hours, His Majesty will stand in the heart of the United States Capitol as the very first British king ever to address a joint session of the United States Congress. So he's going to be addressing Congress, said, I'm going to be watching. I was thinking of going, but they said, I don't know, that might be a step too far.

[Bloomberg Opinion Columnist Dave Lee]

I would love to go.

[Bloomberg Tech Anchor]

It's not supposed to be protocol, but I would love to be with you. But there, the direct descendant of King George III will speak to the direct successor of the very body that gathered in Independence hall on July 4, 1776. If John Adams and George Washington or the king's fifth great grandfather could see that sight, they might be absolutely shocked. But probably only for a moment. Surely they would be delighted that the wounds of war healed into the most cherished friendship. Think of that very, very long ago, difficult war. And yet those wounds did indeed heal into the most cherished of friendships, most cherished. They would be moved beyond words to know that the soldiers who once called each other Redcoats and Yankees became the tommies and the GIs who together saved the free world as brothers in arms and brothers in eternity. And nobody fought better together than us. If they could see us today.

[Deloitte Representative]

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[Lucas Shaw, Bloomberg Screen Time Lead]

I agree. Hateful and violent rhetoric is something we should reject. I do. And I think a great place to start to dial that back would be to have a conversation with your husband about it. Because,

[Bloomberg Tech Host]

by the way,

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I also should

[Bloomberg Asia Tech Reporter]

point out, Donald Trump is allowed to

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say whatever he wants to say.

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As are you and as am I.

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As are all of us.

[Lucas Shaw, Bloomberg Screen Time Lead]

Because under the First Amendment, we have, as Americans, a right to free speech.

[Bloomberg Tech Host]

Jimmy Kimmel they're defending a joke he made last week that prompted President Donald Trump to call for ABC to fire the Late Night host. Let's get the details on this latest fight between Kimmel and the President with Lucas Shaw, who leads our Screen Time team out of L A and Hollywood. Where do we start, Lucas? I mean, there is a chronology to what happened over the last seven days. But the, the net result is that the President has called for Jimmy Kimmel to be fired.

[Lucas Shaw, Bloomberg Screen Time Lead]

Yeah, I mean we, we've, it feels a little bit like deja vu which, which Kimmel talked about on television last night. It was, it was, you know, six months ago, give or take, I think maybe seven, where you know, the, the, the chairman of the fcc, Brendan Carr, President Trump were calling for Kimmel to be fired by, by Disney and abc. Abc or calling on stations to come after Kimmel. But that's one of the big differences this time versus last time is, you know, Disney reacted very swiftly in part because some of the biggest local station owners which carry the ABC on their, on their local networks were asking for Kimmel to be fired or asking for him to be off the air because of comments he'd made at the time regarding Charlie Kirk.

[Bloomberg Tech Host]

Right.

[Lucas Shaw, Bloomberg Screen Time Lead]

You know, this time they, they aren't doing that. They've been pretty silent.

[Bloomberg Tech Host]

Lucas, in October, after that first dispute, you had an extended conversation with Kimmel on stage in Los Angeles at our screen time event for the Bloomberg Tech audience around the world that may not understand this. Right? They don't necessarily know Jimmy Kimmel. They may, they don't understand why the President is so engaged over what Jimmy Kimmel has to say. Just give us the basics of his show, its reach, why this is happening.

[Lucas Shaw, Bloomberg Screen Time Lead]

Look, Jimmy Kimmel hosts one of the three main late night talk shows on American broadcast tv. You've got the show on CBS by Stephen Colbert which is about to go away. You've got the show on NBC hosted by Jimmy Fallon and then Kimmel on abc. You know, he is not known or at least for most of his career was not known as a political comedian, but over the last several years has gotten far more outspoken on politics and has been a really frequent thorn in the side of President Trump. Trump does not like to get made fun of and is someone who stands still cares about late night television. And so they've had sort of public jousting again and again. And I think this time, you know, Disney didn't take Kimmel off the air. Kimmel was not, you know, he, he is finding a way to consistently tweak the President while also trying to not cross the line as he has done in the past.

[Bloomberg Tech Reporter/Anchor]

Kimmel did say he was sorry for what Trump, the First lady and everyone at the dinner, the, as a White House correspondent's dinner went through, but question whether really the joke was in any way relationship to them. What occurred over the weekend that is the context here, Lucas. How do we see therefore, maybe any friend and car comments coming further? Do you anticipate, are you bracing yourself for any further reaction?

[Lucas Shaw, Bloomberg Screen Time Lead]

Look, you made a crucial point, which is that Jimmy Kimmel made a joke that we can debate whether or not it was in good taste or not. But it was made prior to the incident at the White House Correspondent's Dinner over the weekend. So it's not like he was making light of that situation because the comments were edgy. They have been weaponized by the Trump administration once again to show that Kimmel is kind of a bad guy. Is it possible that FCC and that the FCC and Brendan Carr come after Kimmel or more specifically come after Disney and those ABC station licenses?

[Bloomberg Tech Reporter/Anchor]

Kind of.

[Lucas Shaw, Bloomberg Screen Time Lead]

Anything is possible. Brendan Carr has behaved in a manner that is unlike any FCC chair before. But I don't, we don't know yet what they're planning to do is we

[Bloomberg Tech Reporter/Anchor]

could show, as always across it. We appreciate you. China is moving from regulation to intervention in an unprecedented geopolitical power play. Xi Jinping is attempting to block a meta deal that has already closed. Bloomberg's Peter Ahlstrom has more on Beijing's move to exert extra territorial influence over Silicon Silicon Valley. Is that how it's being seen? Peter, I'm really interested in we understand how Matter and Manus yesterday we covered why that deal might be being getting pushed back from China, but how does it affect other companies that have been born in China and moved elsewhere?

[Bloomberg Asia Tech Editor Peter Ahlstrom]

Mm.

[Bloomberg Asia Tech Reporter]

Well, China for a long time has been able to exercise these regulatory powers that are far beyond what you would see in other countries. We know of course, about their crackdown on Jack Ma and Alibaba and the Ant Group group, for example. Probably the closest thing to what we're seeing right now with with Manus is when Didi the Ride hailing company, they're listed on the New York Stock Exchange and then actually had to reverse course and pull its listing. And so what they're trying to do here is quite similar in a lot of ways. They're trying to go to media, even though it's already closed this deal and get them to undo the acquisition of Manus. It's not clear how that would happen. As we talked about yesterday, the money has already been distributed to the shareholders of Mattis. It's not clear whether they can get those checks back and actually return them. And it's also not clear how they're going to undo some of the technology sharing that we've already seen. Manus has already shared a bunch of their technology with Metta at this point. So it's not clear that you can actually undo this and what it would mean to actually undo it at this stage of the process.

[Bloomberg Tech Host]

There is a case study, Miro Mind Peter, correct me if, if I haven't said that right, but this is a business that has a U.S. component and a Chinese component. And we've reported that the founder has looked at the mana situation and said, okay, I'm taking action in light of the latest policy position from China.

[Bloomberg Asia Tech Editor Peter Ahlstrom]

That's.

[Bloomberg Asia Tech Reporter]

That's right, yeah. And this is a sign of how Chinese entrepreneurs or entrepreneurs with their roots in China are now being very careful about this geopolitical divide between China and the United States in particular. So in this case, you said it exactly right. It's mirror mind. This is a founder, Chen, who was famous for starting a games company called Shanda. He's decided that he needs to quarantine the Chinese business and the US Business from each other. They've set up strict restrictions between those operations to make sure that they don't share data, they don't share code between the two operations. They can run them separately at this point point. And I think that's a sign more broadly for these Chinese entrepreneurs who are starting up a bunch of very, very interesting companies within the country at this point. Some of them in the past have looked to move to Singapore to perhaps distance themselves. That's actually what MAN has tried to do. But it's not clear that that's going to work unless you go to go to Singapore separately, start up your company separately there, and then don't leave anything behind in China.

[Bloomberg Tech Host]

Right.

[Bloomberg Asia Tech Reporter]

So it's a tricky situation overall for these entrepreneurs.

[Bloomberg Tech Host]

Bloomberg's Peter lstr, who's the executive editor leading our coverage of Asia Tech, thank you very much.

[Bloomberg Tech Reporter/Anchor]

Welcome back to Bloomberg Tech. We check in on these markets which are under pressure. Nasdaq 100 having the worst day in a month at the moment as big tech pulls back and we'll get into the reasoning around that. But one key stock that's on the downside, of course, European born. But US traded Spotify off by 12% having its worst day since 2023. This after earnings come in lackluster according to Bloomberg Intelligence. Second quarter gross margin forecast implies a very modest expansion from the fiscal first quarter and they say it's going to fuel concerns that AI Music is taking market share. Let's talk more about AI because that is what's seeing tech under pressure today, not the geopolitical Overhang. But what's happening with OpenAI? Reporting from the Wall Street Journal that it's missing internal targets for growth on user base, for growth on revenues and it tugs down the ecosystem that surrounds OpenAI. Oracle, its infrastructure player, down by 4%. ARM holdings with its relationship with SoftBank up by more than 8% even over even the electricity infrastructure that's meant to be going into future compute, it's down by 5%. Ed, this is a broad reaction.

[Bloomberg Tech Host]

Okay. Bloomberg is equity reporter Carmen Reinecke is with us. I mean how broad? Right. You know, we've looked very closely at Oracle and its exposure to OpenAI. The NeoCloud's Core Weave, an obvious example, carriage touched on power. Does it go beyond that in the market this morning?

[Bloomberg Equity Reporter Carmen Reinecke]

Yeah, I mean I think we're seeing kind of any stock that's really linked to Open Air under pressure this morning and really the reason behind that is that there's concerns if they're not meeting these targets, are they going to be able to meet the sort of myriad period of commitments that they've made with other companies through all the deals that they have. It's really bringing back those fears around circular financing that we saw kind of at the beginning of the year and investors have maybe started to overlook a little bit as maybe they've shifted to looking at capex and return on investment for some of this spending. So we're seeing really broad based pressure here. It's also important to note, I think that Open Air linked stocks have understood performed those linked to Alphabet. So that's the other thing here. There's just more competition in this space overall that's putting pressure on OpenAI and investors are really taking note of that comment.

[Bloomberg Tech Reporter/Anchor]

It's interesting that OpenAI have come back forcefully in own statements to Bloomberg saying they're firing on all the cylinders. What's interesting is all cylinders going to be firing in earnings coming up later this week to show where the capital expenditure is there, whether more broadly the compute story is there, even if it's being reshuffled around some of the lms.

[Bloomberg Equity Reporter Carmen Reinecke]

Yeah, definitely. I think investors were already looking at these reports coming up, especially all the hyperscalers on Wednesday with a high level of scrutiny. And I think this raises the bar, right? We're looking at CapEx. We want to see, I think that spending is still happening, but any pullback would be an issue. And then on the flip side, the return on investment, like what these companies are seeing from all this spending is just going to be paramount.

[Bloomberg Tech Host]

What next? Carbon? I mean it's weird, but for the first 32 minutes and 30 seconds of the show, we haven't mentioned that there are trillions and trillions of dollars of market cap reporting earnings imminently. And that could turn the entire tech market on its head.

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

Exactly.

[Bloomberg Equity Reporter Carmen Reinecke]

I mean, we have a huge slate of reports that are coming up later this week. I mean, Wednesday, again, we get the four biggest hyperscalers. We get Apple, Apple on Thursday. Qualcomm's in the mix as well. So there's so much money in the market coming from AI that's tied to AI and we're going to get results from these companies this week. And investors have been reacting very strongly, sort of pricing in either the very best case scenario or the very worst case scenario. I think, as we can see today with how the market, these tech stocks are moving. So these, these reports coming up are going to be, be so important and they're going to swing the entire market. So we're really just waiting to see what, what happens. I think it's an 80 second spread on Wednesday that we get four of the biggest companies in the story reporting. So it's going to be, it's going to be a really fun day.

[Bloomberg Tech Reporter/Anchor]

Brace. Brace. Bloomberg's Carmen Reineke, thank you very much indeed. Let's turn to other Open Air news right now making headlines today. A jury has been selected for the trial between the firm and Elon Musk, who claims that the company OpenAI, abandoned its founding mission as a nonprofit. Arguments begin today, but regardless of the outcome, Bloomberg opinion reporter Dave Lee says it's a win for Musk. Dave, you're with us now. And in many ways, is it the distraction that ends up winning for Xi and Elon Musk here?

[Shell CEO]

Right.

[Bloomberg Opinion Columnist Dave Lee]

I think if you're Elon Musk, you're looking at Open Air and thinking there's a competitor that reduces Musk's own chances of capturing more of the AI market. We know Space X is looking to go public very, very soon, and Xi, the company, is part of that. And what this case is doing at the very, very least is putting a cloud over OpenAI's own efforts to go public themselves, as this is overhanging them. There's a chance if it really goes against OpenAI, they'll have to unwind their Force Profit business and go back to the nonprofit structure that they originally set up in which Elon Musk says he's seeking to create OpenAI. Of course, say, you know, Elon Musk is being disingenuous. He wants to be Rich from AI as well. He was behind a for profit restructuring for OpenAI and that this is just a ploy to slow them down. Well, it's a ploy that is already working and could get more effective depending on how the court ends up up ends up seeing it.

[Bloomberg Tech Host]

Okay, the title of your column is Open Air is Shedding Baggage. Now it needs a jury's help. Dave Lee, what baggage? Just be a bit more specific.

[Bloomberg Opinion Columnist Dave Lee]

Where do you begin? I mean, look, we've seen today this issue of having user and revenue growth issues. But one of the things that's been affecting Open Air recently is this idea that it's doing too many things and that it's, and it's some of this dealmaking has tied it in knots. So, for example, on Monday we saw that OpenAI had renegotiated an already renegotiated deal with Microsoft over Compute, over access to Frontier models. That's a good bit of baggage to get out of the way because it brings some clarity to their deal with Microsoft, which has kind of gone sour over the last couple of years. Other baggage includes what the company was calling Sidequest. So we saw it closed down. Soar, the video app that was kind of popular but was really expensive to run, didn't really seem to have much in the way of generating enough revenue to make it worth it through OpenAI. These are all little things that Sam Altman, I think, in his sheer enthusiasm to try and do everything. And now as the company prepares for an ipo, seen as distractions, seen as strains on the balance sheet. You know, this is a company that's going to show that even though is going to be losing money for quite some time up until at least 2030 is the projection right. They've got to be shown to be reining in some of those costs to at least be heading in the right direction. The biggest bit of baggage, or one of the largest piece of baggage I say, is this trial though, which is why, as I said, they need, they need a jury's help with some of this.

[Bloomberg Tech Reporter/Anchor]

Well, they've got the jury, they have opening statements. In fact, Sam Alvin and Greg Brotman were at the court yesterday, which was a surprise to some. We are expecting a lot of other previous and current OpenAI executives to take the stand.

[Tiffany Wade, Columbia Threadneedle Investment Senior Portfolio Manager]

Right?

[Bloomberg Opinion Columnist Dave Lee]

Yeah. I mean, what OpenAI has been a soap opera in Silicon Valley. You had Sam Altman forced out briefly back after a weekend. You've had staff leaving, starting their own companies. Anthropic, of course, is one of those. Miramarati has started her own company. She was formerly open. I having some of this laid out on the stand is going to be one wonderful for people like us. I feel it's gonna be very uncomfortable for some of those really sort of at the center of this. There's a lot of egos here. There's a lot of, you know, bad blood I think between some of these former colleagues. But that's what happens, you know, when you're at the center of what for the last couple of years I think we can say is one of the most exciting and talked about companies in the world. So plenty to enjoy. We've got a couple of weeks, a few weeks of it to enjoy starting today.

[Bloomberg Tech Host]

That was that is Bloomberg opinion columnist Dave Lee. We haven't worn him out just yet. Now coming up on the show, space startup True Anomaly raises a new funding round, a big one, as it aims to speed up production of its orbital defense tech. When I talk to the CEO next, this is Bloomberg Tech,

[Bloomberg Tech Reporter/Anchor]

True Anomaly. It's close to $650 million Series D funding round, valuing the company at 2.2 billion. Now the space startup is among a dozen companies recently named to work on interceptors for the Golden Dome missile defense shield as well. True Anomaly CEO Evan Rogers joins us. It's been a busy few days.

[Bloomberg Tech Editor Seth Figman]

It's been very busy.

[Bloomberg Tech Reporter/Anchor]

Let's focus on the funding round first. Where do you deploy that capital? What really injects the growth for the business?

[Bloomberg Asia Tech Editor Peter Ahlstrom]

We're really stepping up alongside Guardians in the Space Force. The Space Force is budget in FY27 is expected to be 72 billion. That tells you a lot about the kinds of capabilities the United States Space Force needs to build to counter China and Russia. We are investing in the staff and the products and the infrastructure that's necessary to come alongside Guardians to build combat capability for space warfare.

[Bloomberg Tech Reporter/Anchor]

Let's talk about your products. What makes you unique, distinct and additive to the others? Because it's ferocious out there in the world of defense tech. It's a really hot space.

[Bloomberg Asia Tech Editor Peter Ahlstrom]

So I served 10 years in the Air Force and then transitioned into the United States Space Force. And what I saw from the defense industrial base is a focus on dual use technologies. And there's good reason for that. But because space is now a war fighting domain, it's very clear that the operational concepts for space warfare necessitate dedicated space warfighting systems. They have a completely different performance envelope than commercial capabilities. They're quite literally going to get shot at. And so our focus is on clean sheet design to deploy operational concepts into the domain. So Jackal, for example, our first product is a clean sheet space to space engagement platform. It's not designed to do anything else other than protection and surveillance of the domain.

[Bloomberg Tech Host]

Evan, we're very excited about this domain. Right. Space is a war fighting domain, the technology you're doing. But I'm going to try and bring it back down to earth a little bit for the Bloomberg Tech audience. So Jackal, you mentioned it's a highly maneuverable vehicle. It moves around other satellites in orbit. Bit explain the basics of that. Right. Our audience are tuning in and going, okay, so space is a warfighting domain. You make vehicles that are in space and it moves around other satellites, take it from there.

[Bloomberg Asia Tech Editor Peter Ahlstrom]

That's right. Our adversaries deploy into orbits that we don't necessarily have capabilities in. For example, geosynchronous orbit, which is 22,000 miles from the surface of the earth, is a long way for a ground based telescope to be able to really characterize what our absolute adversaries are doing. So we need systems that have the maneuverability, the fuel, the acceleration to be able to chase those targets down and take pictures of them. The first, the, the foundation of combat capability is intelligence. And so the first order of business is to really understand what our adversaries are up to in space. And Jackal is purpose built to go after highly maneuverable targets.

[Bloomberg Tech Host]

Evan, who's the counterpart to True Anomaly? Does China have a company or a competence in the same domain that you think about?

[Bloomberg Asia Tech Editor Peter Ahlstrom]

China doesn't have necessarily a company that's focused on space warfighting, but their entire military industrial complex is blended with their commercial, their commercial manufacturing infrastructure. So everything that China does really for civil or for war, for commercial, has military applications. And we're starting to see that particularly in their intelligence platforms. China over the last several years has deployed about 20, 1300 spacecraft into low Earth orbit. About 500 of those are intelligence platforms. Those intelligence platforms are designed to track terrestrial forces, so maritime forces, aviation systems, and ground capabilities. So there's really, it's very difficult for the United States to maneuver globally without China seeing where we're going.

[Bloomberg Tech Reporter/Anchor]

Let's talk about the United States a bit, because you build exclusively from what I understand for the United States, States government. Will that expand? Will there be others that you want to serve here?

[Bloomberg Asia Tech Editor Peter Ahlstrom]

Right now we focus on the United States because that's where, that's where the problem is and also where there are substantial budgets focused on space superiority. But we're starting to see our allies build the rhetoric and build the policy to support space warfighting. The uk, France, Japan in particular are really leaning forward into space warfighting. They have their own dependencies on space capabilities companies but the budgets need to follow where we are happy to partner with our allies but, but the budgets are really not following and there's a focus on nationalized capabilities.

[Bloomberg Tech Reporter/Anchor]

The budgets have been there, but some would still say perhaps the spending on smaller companies by the, by the Pentagon still somehow needs to be shown a little bit more. You really confident that the spending will be there for you? I mean already you've been announced on Friday day to be part of Golden Day.

[Bloomberg Asia Tech Editor Peter Ahlstrom]

There is a shift in the way that the Defense Department or rather the Department of War is acquiring systems and it really biases and creates an opening towards new companies like True Anomaly. They're focused on firm fixed price contracts, capital partnerships, long term contracts that allow for a rational roi. And that's an opening for True Anomaly to step into that gap and deliver capabilities. And we're truly unique in the marketplace. I mean space space warfighting is the one of the most rapidly growing areas of investment for, for the Department of War. 40 billion this year in spending, 72 billion this year, 20 billion of which is in space control is the highest growth market.

[Bloomberg Tech Host]

And we're stepping in Evan Rogers CEO True Anomaly $650 million series day $2.2 billion valuation. Thank you very much. All right Carrie, some news headlines as I'm talking tech.

[Bloomberg Tech Reporter/Anchor]

And first up, Hong Kong is betting on light. Shares of Light Intelligence skyrocketed 384% in their trading debut today, giving the company a market value of over $10 billion. With heavy backing from Alibaba and Temasek. The firm is aiming to revolutionize inference by using light instead of electricity to process data. Plus Eli Lilly is turning to artificial intelligence to design the next generation of medicine. The pharma giant has inked a deal worth up to 2 and 2.25 billion with AI startup Profluent to find new ways to edit DNA. That the deal is part of Lilly's growing investment in AI and the company has struck at least 15 AI related deals in the last five years. According to Bloomberg Intelligence and Manifest Oasis. The quote, A native law firm just closed a $60 million Series A at a $750 million valuation. The platform aims to help small firm lawyers automate the and shift towards outcome based pricing. Look, their mission is to make legal services, immigration, tax, for example accessible to all through AI. Investors include Mellow Ventures, Kleiner Perkins and First Round Capital.

[The Hartford Representative]

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[Bloomberg Tech Host]

Shell is entering what CEO saw on calls an inflection point. The company agreed to buy Canadian oil and gas producer Ark Resources for $13.6 billion, its biggest deal in more than a decade as it seeks to sustain output in the long term. Joining us now from London is Shell CEO while someone. The obvious question is why Canada and why now? But the way that a lot of people are looking at this while is, is the geopolitical bet on, on safe, safe energy supply, how much were you thinking about that?

[Shell CEO]

I'd start off by saying actually this is just an important point on the journey that we have been on. A journey that started over three years ago where we said we want to methodically transform the company and that's what we've been doing. And so the inflection point came that as we continue to deliver performance discipline simplification in Shell, we felt that it was time to look at more and more capital reallocation and we felt that we had earned the right to be able to grow. And so the announcement yesterday for Ark was essentially just a step in that, in that journey that we have been on. We had been looking at ARC for over two years and so that of course predated the Middle east crisis. I've particularly been attracted to multiple elements of arc. I mean first and foremost this is a liquid rich play, high quality resource, low cost, long duration in a terrific basin like the Montney Basin with low carbon intensity molecules. And so we like that piece of it, we like the synergies, the, the adjacent adjacency to our own assets and the integration into LNG Canada, our LNG project in Canada there. And then thirdly, we really like the people, we like the culture that they had developed over 30 years. And so this, this well predated the crisis. But of course always helpful to be able to have a diverse source, source of supply to meet the growing energy demands around the world.

[Bloomberg Tech Reporter/Anchor]

So a growing demand, does that mean you have a growing production, a growing supply into the 2030s with this additive deal?

[Shell CEO]

While Absolutely. So we had in the past guided to a 1% CAGR growth between now and 2030 for our oil and gas production. On the back of this deal we have guided to a 4% per annum CAGR. So a significant growth uptick between 2025 and 2030. But importantly as well it gives, gives a long duration growth platform. It allows us to add 150,000 barrels per day of liquids out in 2035. And the inventory we're talking about is well above 15 years of inventory into up to 25 years in certain areas. And so this is just an exciting growth platform that is underpinned in my mind with the liquids opportunity, but also with significant optionality for or the gas through our existing plant and possibly through a second phase of that development that we have in LNG Canada.

[Bloomberg Tech Host]

We will talk more about this deal, but it's been about 10 years since I last attended an OPEC meeting and this is a massive story. The UAE leaving opec. What's your reaction to that? But I think more importantly, what do you think it will do to global oil markets?

[Shell CEO]

Yeah, difficult to call. I mean, very, very early days. And of course I leave it to the UAE leaders and to OPEC to opine on it. What I would say is, you know, OPEC is roughly a third of the overall liquids production of the world. And undoubtedly demand for liquids continues to grow. And I mean by that oil condensate and so on and so forth. The most important influence of OPEC has typically been in who has the spare capacity and how do they choose to deploy that spare capacity. And so that will be, I think, the calculus that will have to be made in the coming, in the coming weeks, months and years for a company like ours. Of course, our focus has been on indeed diversifying production. We have production in OPEC countries and non OPEC countries, but also importantly, continuing to make sure that we look at new horizons to be able to grow our production. And that of course we do through both exploration and M and A deals like what we've done, for example, here in, in Canada. And so I think at the end of the day, what will be important will be supply, demand balances. We know that those are going to be tight for at least the coming months, if not at least the next year. Plus, given the closure on this industry markets, the question will be longer term, how does all that pan out? And I think that's too soon to call at the moment.

[Bloomberg Tech Host]

What is the environment that you close this deal in? How tight are global energy markets right now? We're thinking a lot on this program. Bloomberg talk about energy security, but Asia and Europe, it's hard to gauge the severity of how real a supply crunch is.

[Shell CEO]

The markets are tight. I will, I won't, I won't play down at all. You know, we're talking about 900 million barrels that have not been produced in the last couple of months. And that's been replaced by essentially stock drilled drawdown. We're now sort of starting to reach some, some relatively low levels. We're talking about demand curtailment in certain areas. We're talking about fuel switching. So this is, this is profound. And not just for oil by the way. It also plays in of course for LNG. 20% of the global LNG production comes from, from the Middle East. And all this is happening with the backdrop of sustained growth in energy demand of which to your point Ed, some of it is being of course contributed to by the growth in AI and technology demands.

[Bloomberg Tech Host]

Exactly.

[Shell CEO]

And so it is, it is indeed a tight situation. And this is why it's incumbent upon us, the energy sector, to continue to invest in all forms of energy to make sure that we are able to provide that energy to support multiple countries as they're looking to both grow in, in their own, in their own consumption of energy, but also those that are looking to underpin their, their AI and technology journeys ahead.

[Bloomberg Tech Reporter/Anchor]

So while should investors expect more M and A coming from you?

[Shell CEO]

Look, you know we've always talked about the bar for M and A being a high bar and I absolutely hold on to that. This, this deal crossed that high threshold that we had. We didn't need to do this deal by the way, for avoidance of that. We were very comfortable being able to meet our commitments out to 2030 and potentially to continue to methodically add resources to our overall or funnel. This deal worked out perfectly because of the arbitrage in where share prices were. We, we got the bumps because of our outperformance recently and of course some of the, the tailwinds from the Middle East. ARK didn't have the same simply because of the nature of their portfolio. So, so this worked because of that. The timing was, was excellent and I think we got a good deal for both sides. But that high bar is, is going to be held high again and we will only deploy capital to M and A if we really find excellent deals like this.

[Bloomberg Tech Reporter/Anchor]

And that was in that methodical context. What isn't methodical is geopolitics and what's happening in the Strait of Hormuz. Have you managed to get any of your ships through the Strait? How, what is your exposure right now?

[Shell CEO]

Now we continue to have multiple ships there. Actually I have a call scheduled tomorrow morrow with one of the crews on the ships just to check in on them. It's a tough time. It's a tough time for our people. Our number one priority is the safety of our people and we await the appropriate signals to be able to move those ships out. You know, as I said, we're trying to focus on keeping morale high and many here in headquarters and well beyond across the Shell family are looking at everything they can do to be able to meet our customer demands, which which of course, you know, are those demand levels continue to be high, but we're running at roughly 15 to 20% less molecules than we were just two months ago. And so, you know, I just continue to be incredibly proud of what everyone in the company has been doing to be able to to contribute while someone

[Bloomberg Tech Host]

Shell CEO really great full for your time here on Bloomberg Tech. Thank you very much.

[Bloomberg Tech Reporter/Anchor]

Car and that does it for this edition of Bloomberg Tech. Really folding in there. What is a need for electricity, a need for energy? Because the key story is one of compute now. Today's story is all about OpenAI and questioning from the Wall Street Journal whether they're living up to their own growth aims and targets.

[Bloomberg Tech Host]

Yeah, the Journal reported that they missed their own internal metrics and it was interesting you pointed out earlier some of their electricity stocks literally fell as well. That's part of the calculus. A lot to recap from this show. You know where to do it on the podcast Online, Apple, Spotify, Iheart, on all the Bloomberg platforms as well. Two days into a massive week, Stay with us. This is Bloomberg Tech.

[The Hartford Representative]

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