Bloomberg Tech Podcast Summary

Episode: Software Selloff Continues as AI-Impact Worries Grow
Date: February 11, 2026
Hosts: Caroline Hyde & Ed Ludlow
Key Guests: Carmen Reineke (Bloomberg), Uncle Crawford (Algeria), Mandeep Singh & George Ferguson (Bloomberg Intelligence), Vijay Srinivasan (Google), Jeff Lawson (Inertia), David Rischer (Lyft CEO), Alex Levine (Bloomberg Social Media Reporter)

Overview

This episode centers on the ongoing turbulence in software and tech stocks due to market fears about the impact and disruption potential of AI. The hosts dissect Wall Street’s anxious response, the broader implications for software companies, and emerging trends in AI, hardware, and tech investment. Key segments include live reporting on market reactions, expert analysis on where software is headed amid AI advances, updates on the Space X and Xi merger, discussions on Google’s new AI shopping features, an interview with the CEO of fusion startup Inertia, and a breakdown of Lyft’s earnings and strategy.

Major Themes and Segment Breakdowns

1. The Software Selloff and AI Fears

[03:00-05:14]

• Market Panic: Software stocks, across the board, are down sharply (software index off 3.3%, at times cited as 3.6%), driven by anxieties about which companies will benefit from AI and which will be disrupted or rendered obsolete.
• Investors Fleeing: Even established companies (Charles Schwab, Raymond James, LPL Financial, Intuit) see steep declines from investor fears that new AI tools could upend their core businesses.
  • Carmen Reineke: “It really marks a shift...this fear of an AI bubble and that technology won't live up to the hype. On the flip side, it’s here and it’s really good and it's going to disrupt entire parts of the market.” [03:42]

2. Who Wins in the AI Era? A Stock-Picker’s Market

[05:14-08:42]

• Cost to Create Collapses: Uncle Crawford (Algeria) notes his thesis is "playing out in real time" as software creation becomes vastly cheaper thanks to AI. This challenges the fundamental valuation of software companies.
  • Uncle Crawford: “The rules of what is possible are being rewritten in real time.” [06:36]
• Not All Doom: Larger, platform-based companies are less at risk than small-mid cap ‘point solutions,’ and areas like security are distinct from general enterprise or SaaS.
  • Uncle Crawford: "You have to understand the differences between all the software...security is not the same as enterprise software." [07:10]
• Hardware Resilience: While software reels, hardware makers selling to AI infrastructure (chips, high bandwidth memory) are outperforming due to infrastructure spending.

3. Broader Macro Signals: Jobs Data & Its Impact

[08:20-10:56]

• New US jobs report shows the job market is strong, but Uncle Crawford downplays direct tech-sector implications. Instead, all eyes are on “hyperscaler capex” (spending by top cloud/tech providers) as the real signal for tech growth.
  • Uncle Crawford: “Token growth in January was 25% month-over-month. If you annualize that, token growth...will be 14-fold from last year. That is just a measure of the amount of intelligence we are asking the system...an incredible amount of demand.” [09:46]

4. SpaceX, Xi Merger, and Elon Musk’s Expanding Empire

[11:23-16:54]

• IPO Buzz: SpaceX’s acquisition of Xi (a major AI player) could create a $1.5T company; the merger is meant to fund massive investments in space-based compute/data centers and maintain competitiveness with AI model providers.
  • Mandeep Singh: “The merger is really an attempt to make sure they don’t lack funding...probably $1.5T could be achievable, but it’s a very high valuation multiple.” [13:23]
• Integration Questions: Some Xi founders are leaving, raising questions about shifting culture, mission, and Musk’s reported impatience with product rollout.
  • Bloomberg Host: “Half the about dozen initial founders...are now gone...maybe that’s to be expected when you see such a difference in the architecture of the business.” [16:54]
• Starlink: George Ferguson highlights that the “constellation” (satellite broadband) is the main revenue growth engine, more so than moon/Mars plans.

5. Google’s AI-Powered Shopping—Making the AI Market Real

[19:58-25:29]

• New Shopping Features: Google VP Vijay Srinivasan unveils shopping features directly in AI search and Gemini chat—allowing seamless, conversational product selection and even purchase (“direct offers” from retailers).
  • Vijay Srinivasan: “With AI that [fast vs. smart] trade off is kind of disappearing...what we are seeing is people’s search behavior is completely evolving from keyword search to conversational search.” [20:34]
• Safety and Privacy: Google is experimenting with ad formats to make them “helpful and assistive” within AI tools, and says choice/control remain central to user experience and privacy.
  • Srinivasan: “It’s still on the person to choose to click on that button and make that purchase.” [25:05]

6. Fusion Energy: Twilio’s Jeff Lawson Bets Big

[27:09-34:51]

• From SaaS to Fusion: Jeff Lawson (Twilio’s ex-CEO) introduces Inertia, a fusion startup aiming to commercialize lab-proven laser-based fusion, building the world’s most powerful laser and targeting a grid-scale pilot by the 2030s.
  • Lawson: “The laser we're going to build is a million times more powerful than the one they use over at Lawrence Livermore...20 times more efficient and 1/10 the size.” [28:06]
• Market Motivation: Energy demands from AI, data centers, and the arms race with China are cited as drivers.
• Perspective on Software: Lawson reflects on how SaaS pricing is under threat from AI, but not all companies will die; infrastructure/API providers like Twilio (his former company) are better positioned.
  • Lawson: “I don’t think [AI] will just make SaaS obsolete...but per seat pricing is going to be a big challenge.” [33:41]
  • "[I'm] firmly in the camp of not throwing away babies with bathwater...over time investors will discern which companies are well poised for success." [34:37]

7. Lyft’s Turbulence: CEO David Rischer on Profits, Robotaxis, and E-bikes

[37:56-44:35]

• Stock Drops, Fundamentals Strong: Lyft drops 15% after earnings, despite record bookings/profits. Analysts worry over profit outlook as fierce competition and pace of robotaxi rollout dominate questions.
  • Rischer: “Customer obsession is what drives profitable growth...a lot of our biggest growth is actually in the highest value, most highest margin modes.” [38:37]
• Robotaxi Expansion: Partnerships (e.g., Baidu London, Hamburg) and fleet management are key; Rischer sees a hybrid future (robots & human drivers).
  • Rischer: "When self driving cars come onto a network like ours, it tends to expand the market...you've got to be able to manage this fleet." [39:21]
• Micro-Mobility: E-bikes are a small part of current revenue, but critical for future city movement.
  • Rischer: “As you say, financially it's relatively small, but this is the future...once people get on an E-bike...this is sometimes you can see the future, and if you look out three, five, ten years, you're going to see more people on E-bikes.” [43:56]

8. Social Media on Trial: Instagram’s Adam Mosseri in Court

[44:37-48:18]

• Major Legal Step: Instagram head Adam Mosseri testifies as social media faces lawsuits over “addictive” product design for kids. Unlike past cases focusing on user-posted content (Section 230), these allege actual product/algorithm design harms (addictiveness, body dysmorphia).
  • Alex Levine: “The key thing that is different now...they’re making this a personal injury claim here...it is the algorithm that prioritizes engagement, that is what is personal injury.” [45:29]
  • “This may be the start of a much longer process.” [47:53]

Notable Quotes

• Carmen Reineke on AI Disruption:
  “Everyone’s at risk, right. Investors have been so quick to punish the shares of companies that might be in the crosshairs here of any new innovation or disruption from AI.” [03:42]

• Uncle Crawford on Software Valuation:
  “We are getting a little bit of a phenomenon of the baby’s getting thrown out with the bath water in that all, all stocks are going down regardless...there is such a fear factor right now.” [05:49]
  “The rules of what is possible are being rewritten in real time.” [06:36]

• Vijay Srinivasan (Google Ads/Commerce) on AI Shopping Evolution:
  “With AI that [fast v. smart] trade off is kind of disappearing... search behavior is completely evolving...from keyword search to conversational search.” [20:34]
  “It’s still on the person to choose to click on that button and make that purchase.” [25:05]

• Jeff Lawson (Inertia, ex-Twilio) on SaaS & Fusion:
  “Per seat pricing is going to be a big challenge. In fact, services that are back end infrastructure APIs...those are the services that win.” [33:41]

• David Rischer (Lyft CEO) on Ride-sharing & Robotaxis:
  “We've got a lot of conviction that we're in a good place and only getting better.” [38:37]
  “When self-driving cars come onto a network like ours, it tends to expand the market.” [39:21]
  “Financially [e-bikes are] relatively small, but this is the future.” [43:56]

Timestamps for Key Segments

• AI Disruption’s Impact on Markets:
  [03:00] – [05:14]
• Uncle Crawford on Software’s New Era:
  [05:14] – [10:56]
• SpaceX & Xi Merger Analysis:
  [11:23] – [16:54]
• Google AI Shopping Launch Interview (Vijay Srinivasan):
  [19:58] – [25:29]
• Jeff Lawson on Fusion & the Future of SaaS:
  [27:09] – [34:51]
• Lyft CEO David Rischer on Earnings, Robotaxis, Micro-mobility:
  [37:56] – [44:35]
• Adam Mosseri Testifies on Social Media Product Design:
  [44:37] – [48:18]

Tone and Language

The episode is analytical, urgent, and reflective—especially in discussions of AI’s market impact. There are moments of excitement around new technology (fusion, space, AI shopping), and an undercurrent of anxiety regarding valuations, disruption, and legal challenges. The hosts and guests maintain clarity, rapid pacing, and data-driven commentary throughout.

Conclusion

The episode offers a comprehensive look at the volatility and uncertainty facing the tech sector in 2026, with AI as both the source of panic and promise. It’s a rich exploration of reactions from Wall Street, insight from leading analysts and executives, and coverage of the intertwined narratives shaping the future of software, hardware, and innovation.