Apple's Chip Partnership, Sky High Valuation for SpaceX | Bloomberg Technology

SpaceX, NVIDIA, NASDAQ, Apple, and AI

• The valuation of SpaceX has reached new heights, reaching $300-50 billion after an insider deal 42s.
• NVIDIA, MD, and Intel have invested in a startup that aims to bring light to chips, and the CEO will be sitting down for an interview 51s.
• The NASDAQ 100 is currently experiencing optimism, with key stocks such as Apple, NVIDIA, and Alphabet on the move 1m19s.
• Apple is looking to create its own AI server chips, designed especially for artificial intelligence, and is working with Broadcom 1m31s.
• The excitement around AI is no longer just a dream, with companies like Apple, Amazon, and Broadcom designing their own chips 2m32s.
• The tech industry is driving innovation, making it hard to get excited about other areas of the market, which could lead to more assets being driven into tech names 3m20s.
• The removal of hurdles in the M&A and tech environment, including the potential departure of Lina Khan, could lead to a more favorable environment for tech companies 3m45s.
• Alphabet continues to be at a record high despite concerns about antitrust issues, and the general environment for M&A and tech is looking more favorable 4m5s.
• The impact of AI on other industries, such as energy, has yet to be seen, and it remains to be seen if the winning trades in AI will broaden out to other areas 4m56s.
• The integration of AI into old economy names and other tech names that are not chip-based will be key to seeing a broader impact on the market 5m7s.
• In 2025, the market may be looking for more concrete results from tech companies' investments in AI, as the hype around AI in 2024 was enough to drive up prices, but now investors are seeking more tangible returns on investment 6m5s.
• Tech companies are racing to be the first movers in AI, as being left behind could result in lost market share 6m14s.

Global Stocks to Watch and the Trump Administration's Impact

• Some global stocks to watch in the coming year include Tesla, Qualcomm, and Nintendo, which have been identified as worth watching closely out of 2000 companies from various industries 6m40s.
• Tesla has seen phenomenal growth since Trump came into administration, and analysts think the company may continue to do well due to Elon Musk's connection with the president-elect 7m4s.
• Palantir is another stock that may benefit from the Trump administration, as it is a defense contractor and has connections with the government 7m15s.
• However, both Tesla and Palantir are highly valued, and their revenue may not be as far ahead as their stock prices suggest 7m35s.

The Chip World and AI, Broadcom and Apple's Partnership, and Consumer-Focused Companies

• The chip world has a more direct benefit from AI, with companies like Broadcom and NVIDIA competing to provide AI chips 8m14s.
• Broadcom is working with Apple to develop its own server chips designed specifically for AI, which could be a significant development in the tech industry 10m24s.
• Other consumer-focused companies to watch include Nintendo, with its new Switch 2 console, Fox, which has done well despite declines in TV consumption, and IMAX, which has seen success with large-format movie releases 9m2s.

SpaceX's Valuation and Apple's Latest Developments

• SpaceX has hit an astronomical $350 billion valuation, making it one of the most valuable startups in the world 9m54s.
• Apple has announced the latest version of iOS, iOS 18.2, which will be available for download, and the company has also created tweaked versions of the M2 Ultra chip and the M4 to be cloud-based services for AI processing 11m22s.
• A new generation version of the chip is in development and is expected to launch in about two years, which will be used for Apple's AI servers 11m33s.
• Apple has partnered with Broadcom to work on radio frequencies and filters, which is a continuation of their existing partnership on the Apple modem 12m0s.
• The partnership shows Apple's commitment to artificial intelligence and doing as much as possible in-house 12m20s.
• Apple has also launched a feature called Emergency SOS over satellite, which allows users to send a text message to emergency services or file an SOS if they are injured or trapped in a remote area without cellular connectivity 12m41s.
• The Apple Watch will be updated with its own satellite connectivity in about a year, allowing users to leave their phone behind and still have the ability to reach emergency services 13m24s.
• Investors have agreed to improve SpaceX's valuation to $350 billion, a world record for private valuation, with a share price of $185 14m25s.
• The significant uptick in valuation is allowing long-term holders of SpaceX to cash out, but the company has not been able to buy back as many shares as anticipated 14m36s.
• The surplus of demand for SpaceX shares is due to various factors, including Elon Musk's ties to Trump and the company's successful rocket launch last month 15m0s.

GE Vernova and the Future of Power Generation

• GE Vernova is one of the key players in the race to power AI technology, aiming to produce the sort of power that can put AI into action 16m21s.
• The demand for power from AI is expected to increase, with AI being one of the factors driving single load growth for the first time in 25 years, along with electrification of transportation, homes, and US manufacturing 16m56s.
• To decarbonize the increased load growth, it will be a combination of nuclear, hydrogen, and carbon capture, with GE Vernova working on a plant that will be able to parlay similar technology on their gas turbines over time 17m36s.
• Nuclear power is important, with GE Vernova having 65 nuclear plants with their technology running today in the US, and a modular reactor expected to be commissioned in 2029 17m52s.
• The US has been slow to invest in nuclear power compared to China, but activities have accelerated in the last 24 months, with a growing realization of the need to increase nuclear capacity 18m26s.
• The wind area is still going through a maturation process, industrializing the product at scale relative to gas and nuclear, which have longer legacies and stronger supply chains 19m3s.
• A massive investment is needed in the grid, both physically and in grid software, to support the growth of different power generation technologies 19m27s.
• Public-private partnerships will be necessary to achieve this, with GE Vernova investing considerably in grid software and innovation 19m50s.
• The investment in R&D is expected to impact profitability in the long term, with analysts loving the long-term future for margin growth 20m14s.
• GE Vernova is investing in R&D and expects to grow 20% in the future 20m22s.
• A substantial amount of electricity will be needed in the next two decades, comparable to the period after World War II, making investments in this area crucial for economic growth and stability 20m35s.
• A company is investing in its manufacturing facilities, including a gas turbine facility in Greenville, South Carolina, a nuclear facility in Wilmington, North Carolina, and the largest onshore wind turbine in Upstate New York 21m6s.
• The company aims to build stronger local manufacturing to serve the growing market in the US and export technology worldwide for economic development and peace 21m22s.

Financial Watchdog Fines and China's Stock Market

• A group has been fined $45 million by the nation's financial watchdog for failing to follow anti-money laundering rules 21m59s.
• China's stock market watchdog has ordered a company to fix its refunds policy, which allows customers to claim refunds without returning goods 22m16s.

Ayar Labs, NASDAQ, Alphabet, Apple, and Super Micro

• Ayar Labs has raised money in its latest funding round, backed by major chip companies including NVIDIA, A.M.D. Ventures, and Intel Capital 24m27s.
• The NASDAQ has pushed higher, with risk assets going up as inflationary pressure comes in as anticipated, and big tech names leading the way 23m13s.
• Alphabet has seen four straight days of gains, its biggest winning four-day streak since March 2023, driven by enthusiasm around the Willow Quantum Chip and Gemini 2.0 23m33s.
• Apple is looking at A.I.-focused server chips and has turned to long-time partner Broadcom, causing Broadcom's stock to rise 6.3% 24m1s.
• Super Micro has been given an extension to submit its financials to the NASDAQ by February, causing volatility in its stock 24m17s.

Ayar Labs' CEO on Photons and Chip Bottlenecks

• Ayar Labs' CEO has joined to discuss how photons, or light, can help reduce bottlenecks in chips 24m49s.
• The existing computing infrastructure has been strained due to the rapid growth of A.I. applications, leading to a need for innovation in computing and connectivity 25m12s.
• Companies like NVIDIA have been building G.P.U.'s and deploying them in huge A.I. data centers, but the challenge now lies in connecting these G.P.U.'s together to drive higher performance and more interactive A.I. models 25m22s.
• The current bottlenecks in connectivity result in lower performance, higher costs, and cost pressure in A.I. applications, and innovation is needed to solve this issue 25m47s.
• A new low-roll innovation is being brought to the high-volume semiconductor world, with the goal of mass production in the next few years 26m12s.
• A chip with thousands of optical devices is currently being shipped in the tens of thousands of units, but the market demand is in the tens of millions 26m29s.
• The company is working with high-volume manufacturers, such as global foundries and Intel Foundry, to scale up production in the next few years 26m54s.
• Mass production is still a couple of years away, but the company is currently shipping to a number of strategic customers who are using the technology to test its core functionality 27m1s.
• These customers are consuming tens of thousands of parts to prove out the technology and prepare it for scaling into the millions 27m36s.
• The company's technology is being sought after by major players in the industry, including NVIDIA, A.M.D., and Intel, who are all working to get access to the technology 27m46s.
• The company views its technology as broadly deployed and bit-wick out, and is working closely with its partners to realize its vision of bringing optical products to the broad market 28m16s.
• The company's business model involves bringing the power of semiconductor design to the world of photonics, and it ships known good chiplets, which are silicon chips 28m58s.
• The company's profitability and business model are based on its ability to innovate and bring new technologies to the market, and it is rewarded for its innovation and generation-after-generation advancements 28m35s.
• Optical technologies are becoming ubiquitous and are expected to be largely deployed, with companies like Global Foundries, Intel, and TSMC working on mass production by 2026 29m39s.
• The leading edge foundries are involved in the development, and they have made public statements about their efforts, with the goal of delivering tens and hundreds of millions of units to meet market demand 30m7s.

General Motors, Tech IPOs, and M&A Activity

• General Motors is shutting down its Cruise division and focusing on autonomous driving, which is expected to save the company over a billion dollars in annual costs 30m32s.
• The outlook for tech IPOs heading into 2025 is uncertain, but there is excitement about potential filings from companies like Klarna, and the possibility of valuations remaining high 31m10s.
• The co-founder of FPV Ventures, Wesley Chan, believes that if interest rates fall, there will be a surge in IPOs, and the best companies will come out first and receive high valuations 31m34s.
• Chan notes that valuations will still be down from the last couple of years, but the best companies will be able to command high valuations due to their uniqueness and exceptional performance 32m5s.
• Chan hopes that not all successful companies will be generative AI-adjacent, citing companies like Canva, which uses AI as part of its product offering but started out as a productivity tool 32m32s.
• Many founders dream of IPOing in the US, where there is a lot of capital and excitement about listings, and Chan expects to see the best companies IPO in the US 33m7s.
• There is also optimism about M&A activity picking up, with people being exuberant about the possibilities 33m17s.
• The current M&A market is shut down, especially for tech companies, due to blocked deals and a strict FTC, but a new FTC might be more lenient in the future 33m39s.
• Many acquisitions are being blocked, including the recent Kroger-Albertson's deal, which might indicate a more furtive area of exit 33m38s.
• There is a lot of activity in trying to get into deals, but the preference is for writing the initial checks and investing in founders with amazing talent, rather than doing secondary deals 34m7s.
• Great companies in the IPO market will likely boom again, similar to what happened in 2004 when Google went public and reopened the public markets 34m21s.

Generative AI Startups and Market Trends

• The never-ending wall of money going towards generative AI startups is starting to stop, with some companies already struggling to raise money and calling other companies to acquire them 34m46s.
• The first wave of generative AI startups will likely see a bubble pop, but a second wave of applications that change industries such as legal, insurance, and insurance underwriting will have value 35m8s.
• Companies like Google, Microsoft, and others will likely keep the lion's share of the market due to their access to power 35m37s.
• Many application companies for gen AI will add a lot of value, but some companies are still clinging to unicorn valuations despite being zombies 35m49s.
• The "kaput moment" for these companies will happen when they run out of cash, and the market will say they don't have a profitable business model 36m7s.
• The wreckage of the gen AI market will likely be seen in companies that were using modeled features to do better videos, but didn't have a solid business model 37m2s.

Google's Gemini 2.0, Adobe's AI Video Product, and TikTok's Expansion Efforts

• Google has released a new version of its flagship A.I. model, Gemini 2.0, which is twice as fast as the previous version and can generate images and audio across languages, assist during Google searches and coding projects 37m18s.
• Adobe is rolling out a new A.I. video product, which has been in limited testing since its announcement two months ago, but is now available to a wide audience 37m43s.
• TikTok is trying to gain ground ahead of a possible ban in the United States by offering users hundreds of dollars to spend time in the app, invite friends to join, and purchase products on TikTok Shop 38m51s.
• The effort is part of TikTok's plan to expand as quickly as possible before a potential ban, with the goal of increasing the value of the company and making the app more deeply entrenched in Americans' everyday life and the American economy 39m48s.
• TikTok has already had 170 million Americans using the app, and the company is trying to maximize its user base before a potential ban, with the idea that more people using the app will lead to a bigger outcry if it is banned or forced to divest from Byte Dance 39m14s.
• TikTok is offering users up to $350 in cash rewards to spend on TikTok Shop, which is one of the company's biggest bets and an area where it is trying to invest the most 40m4s.
• TikTok Shop is widely popular in the U.S., with the company aiming to get users to spend $17.5 billion on the app this year, and having triple the Black Friday sales this year compared to last year 40m34s.
• TikTok Shop has recently launched in Spain, and despite regulatory scrutiny, interest in the e-commerce arm of the platform has not been dampened 40m45s.

Tesla's Stock Performance, Amazon's Fake Review Scrutiny, and Broadcom's Partnership with Apple

• Tesla's stock is currently up 2.77%, with the company hitting its first intraday record since 2021, driven by enthusiasm around the company since the new president-elect was announced in early November 38m30s.
• Amazon is under scrutiny for fake reviews, and the company is now asking shoppers for information about product testimonials they posted, going beyond its own platform to look for signs of review abuse on social media sites like TikTok, YouTube, and Instagram 41m32s.
• The company has been trying to clamp down on fake reviews for years, looking at scams where people were taking payments in exchange for reviews on Amazon 41m38s.
• The Federal Trade Commission (FTC) is also looking to clamp down on review abuse and can pursue civil penalties, with a new rule taking effect earlier this year 42m16s.
• Amazon is unclear about where it fits in the new rule, but it needs to show proactive mechanisms to weed out fake reviews to avoid culpability 42m26s.
• The company may also help the FTC target the actual review writer and brand that's in collusion, and the move is seen as a warning sign against campaigns with influencers on other platforms 42m42s.
• Amazon's advertising has been a strong line of growth for the company, and it's trying to bring more of that back to its own platform 43m6s.
• Broadcom's stock is up 5.6% due to reports that Apple is building its own A.I.-specific server chips in partnership with the company 43m48s.
• The move is seen as a key development in the market, with other tech companies like Google, Alphabet, and Amazon also worth keeping an eye on 44m2s.