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00:00> > "BLOOMBERG TECH" IS LIVE FROM COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: THIS IS BLOOMBERG TECH. THE U.S. GOVERNMENT WILL NOT TAKE A STAKE IN TIKTOK BUT A DEAL WITH U.S. INVESTORS IS CLOSE WITH ORACLE AS A CLOUD COMPANY SHUFFLES IT CEO'S. CAROLINE: WE SIT DOWN WITH THE CEO OF T-MOBILE ON HIS SUCCESSOR. ED: THE TRUMP ADMINISTRATION PLANS TO RAISE THE H-1B APPLICATION FEE TO 100,000 DOLLARS. WE DISCUSS THE IMPLICATION FOR WORKERS IN THE TECH INDUSTRY. CAROLINE: FOR NOW WE PUSH BACK INTO THE GREEN A NEW RECORD HIGH FOR THE NASDAQ 100. AT 27 PIE EVEN THOUGH WE STARTED TODAY IN THE RED. SENTIMENT WHIPS ON THE LITTLE BIT AS WE LOOK AT THE FEDERAL WORLD RESERVE WEEK. THE SENTIMENT HAS SOURED IN CRYPTO. WE CAN DIG INTO THAT A LITTLE BIT MORE WITH OUR 2% ON BITCOIN. WHAT ARE YOU LOOKING AT? ED: GOING TO ORACLE IS OUR BIG MOVER AND OUR TOP STORY BEING TIKTOK. OVER THE COURSE OF LAST WEEK AND THIS MORNING'S SESSION A LOT OF MOVEMENT THAT PUSHED TO RECORD HIGHS. WE HAVE A BETTER UNDERSTANDING FROM THE WHITE HOUSE ON THE PROPOSED TECHNOLOGY STRUCTURE AND THE INVESTORS BEHIND IT AND IT IS ORACLE AT THE HEART OF IT. WE LEARNED THIS MORNING ORACLE WILL HAVE TWO NEW CO-CEOS. WE WILL GET MORE ON THAT. LET'S START WITH TIKTOK. MORE DETAILS ON THE DEAL TAKING SHAPE TO SELL TIKTOK TO CONSORTIUM OF AMERICAN INVESTORS. U.S. OFFICIALS SAY THEY ARE CONFIDENT. CHINA HAS IMPROVED -- APPROVE THE DEAL UNDER WHICH TIKTOK WILL PROVIDE A NEW SECURITY FOR THE ALGORITHM. THERE HAVE BEEN A LOT OF HEADLINES THIS MORNING, WHAT WE NEED TO KNOW ABOUT THE STATUS OF TIKTOK IN THE UNITED STATES? > > YOU POINTED OUT THE ALGORITHM HAS BEEN A KEY STICKING POINT IN THIS PROCESS. UNDER U.S. LAW, BYTEDANCE THE OWNER OF TIKTOK IS NOT ALLOWED TO HAVE ANY SAY IN THE ALGORITHM OF THIS U.S. VERSION AND CHINESE CANNOT EXPORT THIS TECHNOLOGY. THEY FIGURED OUT SOME TYPE OF WORK AROUND WITH THIS GROUP OF U.S. INVESTORS WILL LICENSE THE ALGORITHM FROM BYTEDANCE FOR A SHORT TIME WHILE THEY ESSENTIALLY RE-CREATE IT AND MAKE IT A BRAND-NEW VERSION OF BRAND NEW -- BRAND-NEW ALGORITHM THIS U.S. TRAINED AND CONTROLLED. THAT WILL BE WHAT POWERS THIS NEW S -- NEW U.S. VERSION OF TIKTOK. IT'S ALL VERY UNIQUE. AND SO WHILE THE FRAMEWORK HAS BEEN ANNOUNCED WE ARE STILL WAITING ON FORMAL APPROVAL OF THIS DEAL FROM LEADERS IN BEIJING. CAROLINE: PRESIDENT TRUMP SAY XI JINPING HAS APPROVED THIS DEAL THEY JUST HAVE TO GET IT SIGNED. THERE ARE STILL SO MANY QUESTIONS. WHO ARE THE U.S. PARTICIPANTS, WHO ARE THE PEOPLE WHO WILL CONTROL. THEIR NEW NAMES BEING THROWN IN BY THE PRESIDENT OVER THE WEEKEND. > > WE KNOW ABOUT ORACLE OF COURSE BEING THE MOST NOTABLE NAME IN THIS CONSORTIUM. SILVER LAKE PARTNERS WAS ANOTHER ONE I BELIEVE UNVEILED TODAY. ANDREESSEN HOROWITZ THE -- THE VENTURE CAPITAL FIRM. IT SOUNDS LIKE IT MIGHT STILL BE TAKING SHAPE A LITTLE BIT AND CAROLYN AS WE MENTIONED JUST BECAUSE THE PRESIDENT SAYS WE HAVE A DEAL AND IT WILL BE SIGNED, THIS HAS BEEN SUCH A CONTENTIOUS ISSUE, A CONTENTIOUS DEAL OVER MANY YEARS AT THIS POINT THAT I THINK UNTIL EVERYONE TRULY SIGNS ON THE DOTTED LINE YOU HAVE TO ASSUME THIS IS BEING NEGOTIATED AND WORKED OUT IN REAL TIME. IT'S CLOSER THAN WE'VE BEEN BUT UNTIL THAT DEAL IS FORMALLY SIGNED YOU UP TO ASSUME THINGS ARE STILL MOVING. CAROLINE: THANK YOU FOR THE LATEST. LET'S STICK WITH ONE OF THE KEY PLAYERS. ORACLE IT'S ALSO ANNOUNCED THAT IT'S PROMOTED MIKE SICILIA TO THE ROLE OF CO-CEOS. IT MOVES ONTO A BOARD ROLE AS WE GET BLOOMBERG'S BRODIE FORD WHO COVERS ORACLE AND IT IS A BIG CHANGE AT THE TOP. BRODY: IT IS. THEY'VE BEEN ONE OF THE FACES OF ORACLE FOR ABOUT A DECADE NOW AND FOLKS FAMILIAR WITH ORACLE'S CLOUD BUSINESS WHICH HAS BECOME SO IMPORTANT, HE'S LED THAT UNIT FOR A WHILE. THE FACT HE'S BEING ELEVATED IN THIS WAY. THE TIMING IS. THEY ARE BOTH PROMOTED IN JUNE. NOW ALL OF A SUDDEN THEY'RE BECOMING CEO'S. ED: CLAY'S NAME COMES UP QUITE A LOT. INTERESTED IN READING YOUR STORY THAT THEY ARE CO-CEOS BUT THE COMP IS DIFFERENT BETWEEN THE TWO OF THEM. COULD YOU EXPLAIN THAT BIT. BRODY: THEY ARE CO-CEOS, THEY HAVE THE SAME TITLE BUT ONE WILL MAKE 150. -- 150 MILLION MORE. THAT DOESN'T SOUND EQUAL TO ME. WE KNOW AS THE CLOUD INFRASTRUCTURE BUSINESS IS SET TO BECOME THEIR LARGEST BUSINESS BY AN INCREDIBLE MARGIN AND SO THE PERSON WHO LEADS THAT UNIT IS ABOUT TO MAKE SIGNIFICANT A MORE. FOLKS INSIDE THE COMPANY DESCRIBED IT AS CLAY IS A RUN THROUGH A BRICK WALL TO GET SOMETHING DONE WHERE IS MIKE IS MORE IN THE ROOM. IT MIRRORS A DYNAMIC DAVE HAD FOR YEARS. > > IT'S INTERESTING CLAY HAS A BOARD LEVEL AS WELL WHEREAS PERHAPS MIKE HASN'T. IT'S NOTABLE THAT SAFRA CATZ WILL BE THERE AND YOU ALSO PUT THE CONTEXT IN THE STORY THAT SHE WASN'T ALWAYS TOTALLY BEHIND THE PIVOT TOWARDS DATA CENTERS, THE PIVOT TOWARDS CLOUD OFFERING. BRODY: ABSOLUTELY, SHE WAS IN THE EARLIER DAYS OF CLOUD A LITTLE SKEPTICAL. THEY WERE SELLING DATABASES ON PRIM FOR MARGINS THAT ARE SOME OF THE HIGHEST OF ANY PRODUCT AND THEN COMES DATA CENTER INFRASTRUCTURE WHERE YOUR PRETTY WELL GROSS MARGINS AT THE FOREFRONT. SHE WAS A LITTLE ANXIOUS ABOUT THIS SO AS ORACLE MAKES THAT THEIR MAIN BUSINESS IT'S NOT A SHOCKER TO ME THAT THIS IS A CHANGING OF THE GUARD. ED: YOU BROKE THE STORY FRIDAY THAT ORACLE HAS NETTED A DEAL WITH META AND ISSUE WENT ON AIR LARRY ELLISON CANNOT STOP WINNING. > > RIGHT WHAT WE ALL KNOW ORACLE HAD THIS MASSIVE DEAL WITH OPENAI AND THE WORRY WAS WHERE THEY CAN IT BE A ONE TRICK PONY OR HAVE THAT CUSTOMER CONCENTRATION. WE BROKE ON FRIDAY THEY HAVE ANOTHER 20 BILLION DEAL COMING DOWN THE PIPELINE. SO IT SHOWS ORACLE IS SERIOUSLY BEING TAKEN AS A PROVIDER WITH AI INFRASTRUCTURE. CAROLINE: A QUICK NOTE I'M SEEING MIKE AS WELL AS CLAY'S ARE BOTH TAKING EXCITING ROLES. WE APPRECIATE IT. ED: MANAGEMENT MAY HAVE MONDAY A LOT OF FUN. T-MOBILE ANNOUNCES CHANGE IN LEADERSHIP. WE MIGHT SEE THAT WE SPEAK WITH MIKE AND HIS SUCCESSOR AT T-MOBILE. YOU DON'T WANT TO MISS THIS CONVERSATION. THIS IS BLOOMBERG TECH. ♪ CAROLINE: T-MOBILE ANNOUNCED MIKE SIEVERT IS SET TO TRANSITION AWAY FROM CEO TO NEWLY CREATED VICE CHAIR. SUCH TAKEOVER IS T-MOBILE'S CURTAIN -- CURRENT COO. MIKE I START WITH YOU. WHY IS NOW THE RIGHT TIME FOR YOU TO HAND OVER THE REINS THIS WAY? > > BECAUSE SRITI IS READY. WE BELIEVE IN THOUGHTFUL SUCCESSION. HE HAS KILLED IT AND HE HAS AN INCREDIBLY INSPIRING VISION FOR THE FUTURE. I ALSO WANTED TO PICK A MOMENT WHEN THE COMPANY IS FIRING ON ALL CYLINDERS BECAUSE I THINK YOU SHOULD DO SUCCESSION AMID SUCCESS. WE PICKED OUR MOMENT BECAUSE HE IS READY, HE'S A PERSON TO LEAD US IN THE FUTURE AND THE COMPANY HAS PUT WIND IN HIS SALES SO THE TEAM CAN CONTINUE TO DELIVER GOING FORWARD. > > THE VISION, THE EXCITING VISION FOR THE FUTURE HOW MUCH IS THAT ABOUT FIBER, THE REAL EXPERTISE YOU HAVE IN A MORE MATURE MARKET HAVING BUILT UP RAGE WITH TELECOM. SRITI: WHEN I LOOK BACK ON MY CAREER IT FEELS LIKE I'VE BEEN PREPARING FOR THIS DAY. WHAT I'VE DONE OF THE PAST FEW YEARS IS REALLY DEVELOPED SOME EXPERTISE AT DRIVING TECHNOLOGY WHETHER IT'S DIGITAL, DATA, AI, A FIBER NETWORKS AND THAT'S REALLY WHAT THE NEXT STAGE OF GROWTH THAT T-MOBILE WILL BE. BRINGING TOGETHER THIS INCREDIBLE CULTURE, BRAND. THE GREAT VALUE WE STAND FOR TOGETHER WITH AMAZING TECHNOLOGY MAKING IT EASY FOR CUSTOMERS TO DO STUFF, GIVING THEM A GREAT EXPERIENCE. SO THERE ARE NO TRADE-OFFS. YOU GET ALL OF THAT TOGETHER AT THE SAME TIME AT T-MOBILE. ED: IN ANY LIFECYCLE OF A COMPANY THERE COMES A POINT WHERE IT IS JUST MORE MATURE. AND SO I THINK IT'S A REALLY SENSIBLE PLACE TO START BY ASKING YOU WHAT YOU'RE GOING TO DO DIFFERENTLY FROM MIKE GIVEN THAT THE COMPANY IS IN A DIFFERENT STAGE TO WHAT IT WAS OVER THE PERIOD MIKE LED IT. SRINI: WE DON'T BELIEVE IN SITTING ON OUR HANDS AND WAITING TO SEE HOW THE INDUSTRY EVOLVES, WE DEFINE THE INDUSTRY, WE DEFINE HOUSE OR GOES FORWARD. MIKE AND THE TEAM HAVE BEEN TALKING ABOUT THE TRANSFORMATION WE WANT TO DRIVE, BRINGING AMERICA'S BEST EFFORT TOGETHER NOT JUST -- BEST NETWORK. TAKING THAT TECHNOLOGY ACROSS AI, ACROSS OUR DIGITAL FOOTPRINT AND BUILDING THE BEST EXPERIENCE FOR T-MOBILE CUSTOMERS. SO WHAT YOU SHOULD EXPECT IS A LOT OF CONTINUATION OF CHANGING THE INDUSTRY FOR THE GOOD OF THE CUSTOMER AND THAT MEANS A CONTINUAL TRANSFORMATION. SO THIS IS NOT A BUSINESS THAT LIKES SITTING STEADY AND WATCHING THE DIVIDENDS AND GROWTH COME IN. WE ARE THERE TO CHANGE THE LIFE OF OUR CUSTOMERS, TO CHANGE THE INDUSTRY FOR THE BETTER. ED: WHEN I WAS READING UP ON SRINI HEAD OF OUR CONVERSATION AT APPLE I DIDN'T KNOW THIS IS GOING TO HAPPEN. THIS FOCUS ON HIS TIME IN EUROPE. HOW MUCH WAS THAT A BIG FACTOR FOR YOU. IT'S A DIFFERENT MARKET THERE IN YOU'RE UP TO HERE IN THE UNITED STATES. > > WHAT WAS A FACTOR WAS WHAT KIND OF EXECUTIVE HE IS, HE IS TENACIOUS, HARDCHARGING AND COMPETITIVE. AND HE ATTRACTS TALENT AND HE'S GOT A VISION FOR THE FUTURE OF OUR COMPANY THAT'S EXCITING. WE HAVE BEEN FRIENDS FOR A LONG TIME, A COWORKERS AT T-MOBILE. I'VE SEEN HOW HE THINKS AND SO A YEAR AGO I CONVINCED HIM TO GIVE ALL THAT EUROPE STUFF UP AND COME TO THE U.S. IS OUR CHIEF OPERATING OFFICER VERY MUCH WITH THIS DAY IN MIND BECAUSE I KNEW HE WAS THE RIGHT PERSON TO LEAD THE FUTURE. CAROLINE: I THINK IF YOU BEING THE FIRST WANT TO STRIKE THAT DEAL WITH STARLINK ABOUT DIRECT SATELLITE MUNICATION. HOW HAS THAT PARTNERSHIP GIVEN YOU A COMPETITIVE EDGE. HOW MUCH ARE YOU SEEING BECAUSE OF THE CHANGES YOU MADE. MIKE: T-MOBILE IS AN INNOVATOR. WE CREATED THE WHOLE BROADBAND 5G CATEGORY WHICH MILLIONS BENEFIT FROM NATIONWIDE. WE CONTINUE TO REDEFINE WHAT IT MEANS TO COMPETE IN THIS CATEGORY AND WATCH WHILE EVERYONE FOLLOWS. THAT'S WHY WE ARE THE MOST SUCCESSFUL COMMUNICATIONS COMPANY. ON THE SATELLITE IT'S BEEN FANTASTIC. OUR DREAM WHEN I ANNOUNCED THAT WITH ELON IN 2022 WAS TO END DEAD ZONES. AND TODAY T-MOBILE CUSTOMERS CAN CONNECT TO 600 SATELLITES, THE ONLY ONE THAT CONNECTS YOUR PHONE AUTOMATICALLY IF YOU FALL OFF A TERRESTRIAL NETWORK. CAROLINE: FIRST ON YOUR TO DO LIST MIGHT BE THE BOOST MOBILE'S CAN HAVE POTENTIAL OFFERING BECAUSE OF THE NEW SPECTRUM WITH STARLINK. HOW DO YOU CONSIDER THE FUTURE EVA LUCIAN OF DIRECT TO CONSUMER SATELLITE. > > WHEN WE STARTED OFF WITH THIS VISION OF PUTTING AN END TO DEAD ZONES, THAT'S WHAT WE'VE BEEN GOING FOR WE ARE DELIGHTED THAT STARLINK HAS NOW ACQUIRED MORE SPECTRUM, IT MAKES THE SERVICE EVEN BETTER. TOGETHER WE WANT TO LIVE TRUE TO PUTTING AN END TO THAT DEAD ZONE. WE LOVE COMPETITION. WE LOVE SWITCHING. THE MORE JUMP BALLS THE BETTER BECAUSE THERE'S ONLY ONE PLACE YOU CAN GET THE BEST NETWORK AND BEST VALUE AND BEST EXPERIENCE SO WE LOVE COMPETITION. ANYTHING THAT STIMULATES THAT IS A GOOD THING. ED: A LOT OF QUESTIONS WE GET ON FIBER SO I WOULD SUMMARIZE T-MOBILE STRATEGY IS A TINY PIECES OF ENEMY, HOW WILL YOU APPROACH THAT GOING FORWARD? ARE YOU GOING TO BUILD THIS OUT YOURSELF? SRINI: WHEN WE APPROACH A NEW BUSINESS WE APPROACH WITH A MIX OF CONVICTION AND HUMILITY. WE ARE CONVINCED THAT OUR BRAND AND THE DISTRIBUTION WE BRING, WHAT WE STAND FOR, OUR CULTURE OF SMASHING THROUGH CUSTOMER POINTS AND REALLY ATTACKING INCUMBENTS IS EQUALLY APPLICABLE TO FIBER AS IT WAS TO FIXED WIRELESS. WE ALSO KNOW WE HAVEN'T CERTAIN CAPABILITIES LIKE LOCAL ZONING AND PERMITTING. THE VISION FOR FIBER IS NOT SMALL. WE'VE CLEARLY SHOWN WE LIKE BEING FIRST TO FIBER. WE LIKED BEING UP YOUR FIBER PLAYER AND WE WILL CONTINUE TO SCALE OUR BUSINESS. ON THE ACQUISITION QUESTIONS WE WILL SEE WHAT'S AVAILABLE AND TAKE A HARD-NOSED LOOK BUT WE DO LIKE A PURELY FIBER BUSINESS AND WE THINK THERE'S A LOT OF SCALE POSSIBLE. > > WE ARE THE LEADING BROADBAND GROWTH COMPANY IN AMERICA EVEN BEFORE THE FIBER PIECES YOU ARE ASKING ABOUT. 5G BROADBAND HAS BECOME A PHENOMENON AND OVERALL T-MOBILE HAS LED BROADBAND GROWTH IN THIS COUNTRY FOR 13 QUARTERS IN A ROW. SRINI: AND IN A MATTER OF A FEW YEARS WE ARE NOW THE FIFTH LARGEST ISP IN THE COUNTRY. ED: YOU MAKE A GOOD DOUBLE ACT BUT WE ARE SHORT ON TIME. ALAS MY FINAL QUESTION TO YOU. YOU'RE STILL IN THE ROLE TILL NOVEMBER 1. CRITICAL TIME OF THE YEAR. WHAT'S THE DATA TELLING YOU EARLY ABOUT IPHONE 17. WHAT IT'S CAN IT DO FOR T-MOBILE. THE BEHAVIORS OF YOUR EXISTING AND NEW CUSTOMERS. MIKE: IT'S ONLY BEEN THREE DAYS BUT WE ARE KILLING IT. LAST YEAR WE HAD AN ALL-TIME RECORD. THIS YEAR WE ARE BEATING THAT BY DOUBLE DIGITS. AND NOT JUST IN TERMS OF ACTIVATING PHONES FOR CUSTOMERS BUT IN TERMS OF SWITCHERS. SWITCHERS TO T-MOBILE COMING IN THE MOMENT THEY GET A NEW IPHONE ALSO UP DOUBLE DIGIT. THIS WEEKEND. AND SO WE HAVE HAD A GREAT LAUNCH AND A NEW PHONE IS A GREAT TIME FOR AMERICANS TO ASK THEMSELVES TO THEY HAVE THE RIGHT PROVIDER. ED: SWITCHERS. THE CALL THAT WAS MADE A COUPLE WEEKS AGO. MIKE AND SRINI AT T-MOBILE, JUST A TERRIFIC CONVERSATION. THIS IS BLOOMBERG TECH. ♪ CAROLINE: STOCK MARKET HAS PUSHED HIGHER BUT LET'S FOCUS ON CRYPTO. WE ARE SEEING A SIGNIFICANT DRAWDOWN. ONE POINT $5 BILLION IN BULLISH BETS HAVE BEEN LIQUIDATED ON MONDAY. PARTICULARLY ACROSS ETH. LONG POSITIONS WE UNDERSTAND PULLED OUT OF THAT SECOND LARGEST BUT IS THIS A SIGN OF THE CHANGING OF THE GUARD ARE WE QUESTIONING SOME OF THE THEORIES AROUND DIGITAL ASSET TREASURIES IN PARTICULAR OR ARE WE JUST TAKING SOME MONEY OFF OF THE TABLE. ED: LET'S GET MORE BECAUSE RIGHT NOW YOU CAN EITHER PICK UP THAT DATA SET AND SEE THE EQUITY MARKETS CONTINUING TO PUSH OR HOLD IT RECORDS, DO YOU HAVE A SUMMARY OF WHAT THE SENTIMENT IN THE MARKET IS NOW ERIC? ERIC: THANKS FOR HAVING ME. THEY ARE TAKING RISK AND WE ARE SEEING THAT SINCE JULY WITH A GROWTH INDEX IS OVERVALUED. WE HAD THAT DROP IN APRIL, VALUE IS LEADING THE MARKET AND WE'VE GROWTH EQUITY PERFORM EXTREMELY WELL. THAT'S DAY TODAY IT KEEPS GOING HIGHER SO YOU HAVE THE RUSSELL 1000 UP. IN OVER 17% RIGHT NOW YEAR-TO-DATE AND OF LATE WITH THE NEWS AND THE EARNINGS, GROWTH IS WHERE INVESTORS WANT TO BE. ED: APPLE IS UP 4% IN THIS SESSION AND THE REASON THAT'S NOTABLE IS ITS MOST OF THE WAY THROUGH SEPTEMBER TAKES IT INTO POSITIVE TERRITORY FOR 2025. WE TALKED A LOT IN THE MIDDLE OF THE YEAR ABOUT THE CONTRIBUTION OF THE MAG SEVEN TO THE MARKET OVERALL, BUT THERE'S A MOMENT IN TIME TO DO THAT AT THIS PART OF THE YEAR WHAT YOU MAKE OF IT? ERIC: IT IS IMPRESSIVE. APPLE NOT LONG AGO WAS INVESTORS WERE CHECKED OUT, ANALYST WERE NEGATIVE PEOPLE WERE QUESTIONING APPLE AND NOW AS YOU SAID IT'S POSITIVE JUST AN INCREDIBLE MOVE. IN THE MAG SEVEN EVEN TESLA IT STILL DOWN FOR THE YEAR BUT HAS HAD A BIG ROOF YEAR THIS PAST SEVERAL WEEKS SO THE MAG SEVEN IS CLEARLY IN THE MARKETS RIGHT NOW. YOU ARE SEEING THAT DAY AFTER DAY. CAROLINE: SHOULD YOU STAY COMMITTED TO THAT THEN? THE TREND HAS BEEN RELENTLESSLY HIGHER SINCE APRIL BUT THE VALUATION STORY GETS HARDER AND HARDER TO SWALLOW. > > AS A FINANCIAL ADVISOR I HAVE LOTS OF POSITIONS IN THESE NAMES IT IS CONCERNING BECAUSE THE VALUATIONS ARE SO HIGH. CAN THIS MOMENTUM CONTINUE, ARE INVESTORS GOING TO BUY THOSE NAMES? YOU DON'T SEE ANY SIGNS, OF THE TRENDS ARE SO POWERFUL ON THE UPSIDE. BUT CLEARLY KNEW MONEY I WOULD BE CAUTIOUS BECAUSE THESE VALUATIONS ARE SO HIGH. CAROLINE: YOU DON'T RE-UP YOUR BETS IF THEY'VE BEEN WINNING OF LATE'S BUT IS EARNINGS GOING TO BE THE TOWEL'S ARE GOING TO BE GEOPOLITICS THAT IS THE TELL. WHAT ULTIMATELY MAKES THIS QUESTION HOW VALUABLE SOME OF THESE COMPANIES ARE. ERIC: RIGHT NOW EARNINGS AFTER THE SECOND QUARTER CERTAINLY ARE LEADING THESE NAMES AND SOME OF THE BIG ANNOUNCEMENTS. YOU GUYS HAVE BEEN TALKING ABOUT ALL DAY TREMENDOUS MOMENTUM. THE ANNOUNCEMENTS THEY'VE MADE IN AI. I DO THINK IT'S A EARNINGS THAT WILL MOVE THEM HIGHER. AS FOR INVESTORS I THINK YOU HOLD YOUR POSITIONS BUT YOU LOOK AND SEE HOW MUCH, HOW LARGE OF A POSITION ARE THESE NAMES AND ARE YOU COMFORTABLE HAVING THESE BIGGER RISK POSITION IN YOUR PORTFOLIO. ED: IN THE CONTEXT OF CORPORATE EARNINGS AND TECH, THE SIGNAL FROM CERTAIN NAMES IS THAT SOFT DATA SET THAT PEOPLE ARE LOOKING FOR. I'M PUTTING YOU ON THE SPOT BUT WE GET MICRON IN THE NEXT 36 HOURS, THEY MIGHT TELL US SOMETHING BIG PICTURE ABOUT THE DIRECTION OF TRAVEL FOR AI INFRASTRUCTURE, IS THAT STILL THE WATCH ITEM FOR A LOT OF DESKS? ERIC: I THINK THE BROADER WHOLE SECTOR OF SEMICONDUCTORS OVERALL HAS PERFORMED WELL. YOU'VE SEEN CERTAIN NAMES BUT OVERALL THE GROUP HAS DONE VERY WELL. MICRON IS CERTAINLY GOING TO BE AND ANOTHER WAS SOME POSITIVE ANALYST CALLS I WANT TO SAY TODAY ON MICRON. THAT COULD FUEL THE MARKET TO GO HIGHER WITHOUT RESULT. ED: IN THE CONVERSATION WE SAID HOW REMARKABLE THIS IS, THE SENTIMENT IN THE MARKET. GIVE US THE ERIC BAILEY PREDICTION FOR WHAT HAPPENS IN THE BALANCE OF 2025. ERIC: I'VE BEEN CALLING FOR A LITTLE BIT OF A PULLBACK AND I'VE BEEN WRONG. I'VE SENT THESE VALUATIONS WE WOULD SEE SOME KIND OF CORRECTION SINCE THAT APRIL DROP , IT'S BEEN ON A TEAR. SO I EXPECT THE MARKETS TO GET UP THERE BUT I DON'T SEE IT BEING A LONG-TERM TREND. BUYERS WILL STEP IN AND CONTINUE ON THIS RUN. IT'S GOING TO TAKE A LOT TO GET THIS MARKET TO GET NEGATIVE. > > APPRECIATE YOUR TIME TODAY AND THE PUSH FORWARD. COMING UP WE WILL SPEAK WITH THE ERICKSON IMMIGRATION GROUP DISCUSSING THE IMPACT OF PRESIDENT TRUMP'S NEW H-1B VISA FEE. THIS IS BLOOMBERG TECH. ♪ > > WELCOME BACK TO BLOOMBERG TECH. THINKING ABOUT THE NEWS STORY ON 100 THOUSAND DOLLAR H-1B APPLICATION FEES AND IN THE MARKETS I'M LOOKING AT INFOSYS, THE INDIAN TECHNOLOGY COMPANY UP MODESTLY ON THIS MONDAY SESSION BUT A BIG DROP FRIDAY WHEN BLOOMBERG FIRST REPORTED THAT $100,000 FIGURE. THERE'S A LOT OF EMPHASIS ON THE I.T. OUTSOURCING NAMES OUT THERE. THERE WAS BIG DOWNWARD PRESSURE IN THE LIST TO TECHNOLOGY NAMES OVERNIGHT. THERE'S ALSO A BIG SCRAMBLE FOR AMERICAN TECHNOLOGY COMPANIES TO UNDERSTAND HOW THIS IMPACTS THEIR ABILITY TO HIRE AND WHAT IT MEANS FOR THE H-1B HOLDERS. THE ERICKSON IMMIGRATION PARTNER GROUP JOINS US NOW. WHEN THIS WAS FIRST CONFIRMED FRIDAY THERE WASN'T CLARITY ON WHETHER IT APPLIED TO NEW APPLICANTS TO H-1B OR EXISTING AS WELL AND OVER THE WEEKEND THE WHITE HOUSE CLARIFIED IT WAS JUST NEW APPLICANTS BUT CAN WE JUST START WITH YOU REFLECTING ON THE WEEKEND, THE DISCUSSION WITH CLIENTS IN THE TECHNOLOGY SECTOR AND HOW YOU'VE MANAGED THIS PROCESS. HIBA: CERTAINLY. INITIALLY THERE WAS NOT CLARIFICATION AS TO WHETHER OR NOT THE 100 THOUSAND DOLLAR FEE WOULD APPLY TO EXISTING H-1B VISA HOLDERS OR NEW APPLICANTS. THERE WAS ALSO CONFUSION ABOUT WHETHER OR NOT THIS WAS THE WARTIME -- ONE TIME FEE VERSUS A CONTINUOUS ANNUAL FEE AND WHAT ESSENTIALLY HAPPENED FOR THE FIRST 24 HOURS WAS PRETTY CLOSE TO CHAOS. WE HAD SEVERAL CLIENTS WHO ARE VERY WELL KNOWN TECH COMPANIES WHO EITHER CONTACTED H-1B EMPLOYEES WHO HAPPENED TO BE OUTSIDE THE U.S. AT THE TIME IT CAME OUT ASKING THEM TO TRY THEIR BEST TO COME BACK BEFORE THE $100,000 FEE TOOK EFFECT AND THEN ALSO WE HAD A LOT OF COMPANIES NOT JUST THE COMPANIES WE WORK WITH BUT VERY WELL-KNOWN COMPANIES IN THE MARKET TELL THEIR EMPLOYEES TO WAIT BEFORE ENGAGING IN ANY INTERNATIONAL TRAVEL UNTIL WE KNOW MORE. THERE WERE ALSO INSTANCES OF INTERNATIONAL FLIGHTS GETTING READY TO TAKE OFF WHERE SEVERAL PASSENGERS REQUESTED TO DEPLANE SPECIFICALLY BECAUSE THEY WANTED TO AVOID THEIR COMPANIES BEING CHARGED $100,000 FEE IF THEY ATTEMPTED TO REENTER AFTER AN INTERNATIONAL TRIP. THE FIRST 24 HOURS WERE EXTREMELY CONFUSING AND WE DID THE BEST WE DID THE BEST WE COULD TO PROVIDE THE GUIDANCE TO THE COMPANIES NEED TO MITIGATE TO THEIR EMPLOYEES WITH VERY LITTLE WE KNEW. ED: $100,000 IS THE FEE. FROM THIS POINT ON WHAT IS THE STRATEGY FOR AMERICA'S BIGGEST TECHNOLOGY COMPANIES AND SMALLER STARTUPS? DO YOU THINK IT IS A MANAGEABLE FEE AND WHAT IS THE KIND OF PROCESS FROM HERE, DO THEY JUST SLOW DOWN HIRING IN THAT CATEGORY? HIBA: $100,000 FEE FOR AN H-1B VISA POSITION IS NOT MANAGEABLE AT ALL FOR START UPS SMALL BUSINESSES, EVEN FROM MIDSIZE BUSINESSES. THIS WILL MAKE IT EXTREMELY DIFFICULT IF NOT NEARLY IMPOSSIBLE FOR STARTUPS, SMALL BUSINESSES OR MIDSIZED BUSINESSES TO HIRE THE TALENT THEY NEED TO BE ABLE TO COMPETE ON THAT SCALE. FOR LARGER TECH COMPANIES THAT HAVE MORE RESOURCES I THINK THE ABILITY TO MANAGE A FEE OF THIS AMOUNT IS NOT GOING TO BE AS DIFFICULT AS IT IS FOR STARTUPS, BUT I WANT EVERYONE TO REMEMBER THAT A LOT OF THESE EXTREMELY SUCCESSFUL INTERNATIONAL COMPANIES WERE ONCE THEMSELVES STARTUPS SO ANY POLICY THAT MAKES IT HARDER FOR AMERICAN STARTUPS OR SMALL BUSINESSES TO INNOVATE WILL IMPACT OUR COMPETITIVENESS. CAROLINE: WHAT'S BEEN EXTRAORDINARY FOR MANY IS WHERE THE OUT SIZING HAS HAD. IN PARTICULAR ITS PEOPLE COMING FROM INDIA, CHINA. THE ARGUMENT FROM THE ADMINISTRATION IS THE H VISA PROCESS WASN'T BEING USED AS IT SHOULD BE. HAVE YOU HAD ANY EVIDENCE OF THAT? HIBA: I HAVE NO EVIDENCE OF THAT. THERE ARE QUITE A FEW CHECKS AND BALANCES BUILT INTO THE PROCESS AS IT STANDS AND THAT'S INCLUSIVE OF SEVERAL LEVELS OF SCRUTINY AND EXTENSIVE BACKGROUND CHECKS AND THERE IS PRELIMINARY EVIDENCE THAT HAS TO BE SUBMITTED ALONG WITH THE INITIAL APPLICATION FOR H-1B VISA IN ORDER FOR THAT APPLICATION TO BE ACCEPTABLE IN THE FIRST PLACE. I HAVE NOT SEEN ANY EVIDENCE OF MISUSE. I THINK IT IS A CRITICAL TOOL FOR OUR COMPANIES IN TECH AND VARIOUS OTHER INDUSTRIES IN ORDER FOR THEM TO STAY COMPETITIVE. I THINK IT'S IMPORTANT TO POINT OUT PEOPLE NORMALLY ASSOCIATE THE H-1B VISA WITH TECH COMPANIES WHICH IS TRUE, BUT THERE ARE A VARIETY OF INDUSTRIES THAT RELY ON THE VISA INCLUDING RESEARCH INSTITUTIONS, UNIVERSITIES AND HEALTH CARE. SO THIS HAS THE POTENTIAL TO REALLY IMPACT A LOT OF AMERICAN INSTITUTIONS ASSUMING THIS GOES FORWARD AND IS NOT PAUSED BY LITIGATION. CAROLINE: POTENTIALLY DOCTORS MIGHT HAVE A CARVEOUT IN TERMS OF A FEE HERE BUT LET'S GO BACK TO CALIFORNIA, THE STATE THAT'S MOST IMPACTED ACCORDING TO OUR DATA. TEXAS, NEW YORK AND NEW JERSEY. WE LOOK AT THE INDUSTRIES, PROFESSORS, SCIENTISTS, TECHNOLOGY SERVICES, OF THESE COMPANIES WHAT DO THEY DO? DO THEY HIRE OUTSIDE OF THE U.S. TO BE ABLE TO MAKE UP FOR THE TALENT SHORTFALL WHILE THE TRAINING GOES ON IN THE U.S. OR IS THERE ANY IDEA THERE IS ENOUGH TALENT TO SATISFY THE NEEDS? ED: THAT IS ONE OF -- HIBA: THAT'S ONE OF THE CONCERNS FROM THIS FEE. THE CONCERN IS A LOT OF COMPANIES WOULD PAUSE HIRING IN PARTICULAR INTERNATIONAL HIRING BUT ALSO MAY CHOOSE TO SHIFT THEIR OPERATIONS ABROAD AND THAT IS GOING TO HAVE DOWNSTREAM EFFECTS FROM THE COMPANY AS WELL AS U.S. WORKERS THAT WORK FOR THE COMPANY. THAT'S ONE OF THE CONCERNS. THE OTHER CONCERN IS THERE'S A VARIETY OF DIFFERENT COMPANIES THAT RELY ON THE H-1B VISA SO THERE IS LANGUAGE IN THE PROCLAMATION THAT CARVES OUT EXCEPTIONS FOR INDIVIDUAL WHO THE GOVERNMENT DEEMS IS IN THE NATIONAL INTEREST OF THE U.S.. HOWEVER WHAT WE STILL NEED TO UNDERSTAND IS THE WAY IN WHICH THESE ARGUMENTS REQUESTING A NATIONAL INTEREST EXCEPTION ARE ACTUALLY GOING TO BE TREATED AND ADJUDICATED. AS IT STANDS THE EVIDENTIARY STANDARDS FOR SUCCESSFULLY MAKING THAT ARGUMENT ARE QUITE HIGH SO I DON'T THINK THE LANGUAGE THAT IT CARVES OUT AN EXCEPTION IS GOING TO HELP ANY OF THE CONCERNS THE INDUSTRY HAS. ED: BLOOMBERG HAS REPORTED AT LENGTH THE EXPECTATION IS IMMEDIATELY MORE CHALLENGES TO THE EXECUTIVE ORDER AND THEY KNOW IN THAT REPORT THAT CONGRESS HAS TRADITIONALLY SET IN A LEGISLATIVE QUALIFYING WAY FEES AND OTHER ASSOCIATED COSTS. COULD YOU EXPLAIN WHERE YOU STAND TODAY, WHERE THE PRECEDENT IS TO CHALLENGE THIS AND ANY ACTION YOU MIGHT TAKE ON BEHALF OF CLIENTS TO CHALLENGE IT. HIBA: I THINK ANYBODY GETTING READY TO MAKE A LEGAL CHALLENGE TO THIS IS GOING TO INCORPORATE A FEW KEY GROUNDS IN THEIR ARGUMENT. ONE IS IT'S THE RESPONSIBILITY OF CONGRESS TO MAKE IMMIGRATION LAWS, SET IMMIGRATION FEES. THE PRESIDENT IS BASING THIS PROCLAMATION ON A LAW THAT GRANTS THE PRESIDENT BROUGHT AUTHORITY IN TERMS OF RESTRICTING ENTRY OF FOREIGN NATIONALS INTO THE UNITED STATES IF THERE IS A NATIONAL SECURITY CONCERN OR IF THAT INDIVIDUAL ENTRY TO THE U.S. IS DETRIMENTAL SOMEHOW TO THE U.S. BUT THERE HAS TO BE SOME SUBSTANTIVE FACTUAL EVIDENCE IN SUPPORT OF THAT WHICH I WOULD IMAGINE FOLKS WHO SEEK TO CHALLENGE THIS PROCLAMATION WILL ARGUE DOES NOT EXIST. SO THOSE OF THE GROUNDS I WILL BE WATCHING OUT FOR IN TERMS OF THE LEGAL CHALLENGES. ONE THING I WANT TO NOTE IS THE RECENT SUPREME COURT DECISION IN TRUMP VERSUS COSTA MADE IT VERY DIFFICULT FOR A SINGLE FEDERAL JUDGE TO ISSUE A NATIONWIDE INJUNCTION, PAUSING SOME SORT OF PRESIDENTIAL ACTION FROM TAKING EFFECT AND SO ONE THING I WILL BE WATCHING OUT FOR IS BASICALLY WHETHER OR NOT SOMEBODY CHOOSES TO FILE A CLASS-ACTION LAWSUIT HOW BROAD THE CLASS IS DEFINED AND WHETHER OR NOT THE JUDGE CERTIFIES IT. CAROLINE: THANK YOU FOR YOUR TIME TODAY. ERICKSON IMMIGRATION GROUP. OUR CEO CATHIE WOOD WEIGHED IN ON THE ISSUE OF H-1B VISAS SAYING THE CHANGES ARE PART OF THE NEGOTIATING PROCESS. AS SHE PREDICTABLE END UP BEING DEAF TAKE A LISTEN TO WHAT SHE SAID ON BLOOMBERG TV EARLIER. > > THIS IS PART OF PRESIDENT TRUMP'S NEGOTIATING PROCESS AND I THINK HE IS NEGOTIATING QUITE INTENSIVELY RIGHT NOW WITH INDIA. I THINK INDIA WOULD HAVE THE BIGGEST IMPACT HERE IN TERMS OF WORKERS IN THE UNITED STATES. I THINK THIS IS A LITTLE BIT LIKE TARIFFS AND IT'S GOING TO CAPTURE ALL THE HEADLINES AND IT'S GOING TO REALLY TAKE THE OXYGEN OUT OF THE ROOM BECAUSE THERE'S A LOT OF REALLY GOOD FUNDAMENTAL ACTIVITY HAPPENING IN THE UNITED STATES RELATING TO POLICY. > > A LOT OF THAT SILICON VALLEY INNOVATION GOODNESS REALLY COMES FROM THE TALENT IN THE LABOR POOL WE'VE BEEN TALKING ABOUT THIS FOR SOME TIME IN TERMS OF HOW DO YOU TRAIN YOUR ENGINEERS, TO DO A LOT OF GOOD SILICON VALLEY DEPENDS ON FOREIGN WORKERS TO DO. DOES THIS IMPACT INNOVATION IN SILICON VALLEY AND MEGA CAP TYPE COMPANIES. > > FROM WHAT WE KNOW OF THIS ADMINISTRATION, THEY ULTIMATELY WANT TO KEEP STUDENTS WHO HAVE BEEN EDUCATED IN THE U.S., FOREIGN STUDENTS EDUCATED IN THE U.S. IN THE U.S.. SO REALLY I JUST THINK THIS IS PART OF THE NEGOTIATION WITH INDIA AND WHEN ALL IS SAID AND DONE WE ARE PROBABLY GOING TO LOOSEN UP THE H1 VISA PROGRAM. > > BUT IN THE SHORT TERM DOESN'T HAVE AN IMPACT ON TECH COMPANIES. > > I THINK WHAT IT WILL DO IS FORCE TECH COMPANIES TO DO WHAT THEY ARE ALREADY DOING WHICH IS BECOME MORE EFFICIENT. THE OTHER THING TO NOTE IS CODING IS CHANGING DRAMATICALLY. THE NUMBER OF CODING JOBS HAS DROPPED DRAMATICALLY BECAUSE OF AI. ALL OF US COULD BECOME CODERS. THIS IS NATURAL LANGUAGE PROGRAMMING, GENERATIVE AI IS PROMPTING CHATGPT TO GET THE PROGRAMS GOING. WE CAN ALL DO THAT. THAT SIMPLIFYING IT BUT I THINK IT GIVES YOU A SENSE OF THE PRODUCTIVITY THAT POSSIBILITIES THAT ARE POSSIBLE -- THAT WILL IMPACT THESE TECH COMPANIES LONG-TERM. ED: ARC CEO CATHIE WOOD ALONG WITH BLOOMBERG'S KRITI GUPTA. THE MAKEUP OF -- IS SET TO BECOME A NEW COMPANY. WE WILL SPEAK TO THE NEW CEO ABOUT HOW THE COMPANY PLANS TO USE THAT FUNDING. THIS IS BLOOMBERG TECH. ♪ > > THE MAKER OF THE POPULAR OURA HEALTH AND FITNESS RING IS DOUBLING ITS VALUATION FROM LAST NOVEMBER ACCORDING TO BLOOMBERG REPORTING CITING BLOOMBERG SOURCES. THE COMPANY IS SAYING IT SOLD 5.5 MILLION IN TOTAL AND IS ON TRACK TO DOUBLE ITS REVENUES. THE CEO TOM JOINS US IN SAN FRANCISCO. BLOOMBERG HAS REPORTED A LARGE ROUND $11 BILLION RAISE. TOM: CONGRATULATIONS ON GETTING THE SCOOP BUT NO I DON'T HAVE ANY COMMENTS ON RUMORS AS OF YET BUT INTERESTING TO SEE THAT THAT NEWS IS STARTING TO TRICKLE OUT. ED: THE MAIN POINT IS LAURA HAS SOME MOMENTUM SO YOU SHARED SOME NOT JUST FINANCIAL METRICS BUT OPERATIONAL METRICS. THE BASE OF CUSTOMERS HAS GROWN. IT'S PLAIN WITH THAT DATA SIGNALS TO YOU. TOM: WE SHOWED 5.5 MILLION RINGS IN THE HISTORY OF THE COMPANY BUT HALF OF THOSE WERE THE LAST 12 MONTHS. SO AS WE'VE DOUBLED OUR BUSINESS WE HAVE DOUBLED THE AMOUNT OF RINGS IN THE LAST FEW MONTHS ALONE. YOU'D THINK THAT SHOWING UP IN OUR REVENUE OBVIOUSLY 500 MILLION LAST YEAR WAS WHAT WE REPORTED. THIS YEAR I THINK WE WILL DO $1 BILLION IN REVENUE AND WE THINK IN 2026 WE WILL SELL OUR 10 MILLIONTH RING. CAROLINE: WE TRIED TO DIVIDE AND CONQUER ALL THE WEARABLES AND USE THEM. FULL DISCLOSURE I AM THE OURA RING USER IN THE HOUSE. THE AI AGENTS. THE GLUCOSE MONITORING AS WELL. HOW ARE YOU EVOLVING. > > ONE OF OUR CORE DEMOGRAPHICS WE'VE BEEN EXPANDING THE VALUE WE DELIVER FOR WOMEN. THIS LAST YEAR WE INTRODUCED PREGNANCY INSIGHTS MENOPAUSE FEATURES AND WE WILL CONTINUE TO PUSH ON THIS IDEA OF THE FERTILE WINDOW HELPING WOMEN OR COUPLES CONCEIVE. AS YOU THINK ABOUT THE AREAS OF EXPANSION FOR US WE THINK ABOUT METABOLIC BECAUSE THE ONE THING YOU DO MORE OFTEN THEN SLEEP THAT AFFECT YOUR HEALTH IS EAT. IF WE CAN HELP YOU BUILD HEALTHY HABITS AROUND EATING THAT IS HUGELY POWERFUL. WE ARE CONTINUING TO EXPAND AND FITNESS AND LOOK AT THE WAYS SLEEP CAN BE PLAYED TO INTERACT WITH OTHER PARTS AND GIVE YOU A HOLISTIC PICTURE OF YOUR HEALTH AND THEN THIS FALL AND EXCITING TIME OF YEAR. > > WHAT'S BEEN SO INTERESTING IS WHO YOU'VE BEEN SELLING TO WITH HER WAS CORPORATE'S OR INSTITUTIONS. I'M THINKING OF THE U.S. MILITARY. TENS OF THOUSANDS OF SERVICE MEMBERS USING THE RINGS. YOU WERE DOING FATIGUE TRACKING AND RESEARCH BUT YOU ALSO HAVE SOME PR FIRESTORM I SHOULD SAY THERE WAS A LOT OF PEOPLE WOULD SAY MISINFORMATION FAKE NEWS AROUND HOW YOU HAD TO INTEGRATE WITHIN PALANTIR'S OWN USE. WHAT DID YOU LEARN FROM THAT EXPERIENCE. TOM: I THINK THE TRUTH IS WHEN YOUR CUSTOMERS ARE UPSET YOU NEED TO LISTEN TO THEM. SO WE TAKE THE CONCERNS THAT WERE RAISED. PRIVACY IS A THIRD RAIL. WE TOOK THAT INCREDIBLY SERIOUSLY. I TOOK TO TIKTOK MYSELF TO ADDRESS DIRECTLY. BASICALLY THERE IS NO SCENARIO UNDER WHICH THE CONSUMER SYSTEM AND CONSUMER DATA WOULD BE SHARED WITH ANYONE AT PAL OR ANYONE IN THE GOVERNMENT. THEY ARE TWO SEPARATE SYSTEMS. OF COURSE THE MOST IMPORTANT THING IS PRIVACY THE MOST IMPORTANT THING WE DO. WE ARE FOCUSED ON YOUR HEALTH AND DELIVERING YOUR HEALTH MEANS PROTECTING PRECIOUS AND PRIVATE INFORMATION. THAT'S JUST A CORE THING. WE WILL NEVER SELL YOUR DATA AND NEVER SHARE YOUR DATA WITHOUT YOUR CONSENT. IF YOU WANT TO SHARE YOUR DATA WE WILL ABSOLUTELY ENABLE THAT AND GIVE YOU THE TOOLS AND POWER TO CONTROL IT. > > WE'VE TALKED SO MUCH ON THE ELECTRONIC SUPPLY CHAIN. EVEN ON THE INNOVATION SIDE MINIATURIZATION ELECTRONICS THAT I THINK IT'S FAIR TO ASK HOW YOU ARE EXPOSED TO THE SUPPLY CHAIN OUTSIDE OF THE UNITED STATES ANYTHING YOU'VE DONE TO RESPOND TO THE POLICIES OF THIS ADMINISTRATION IN THAT RESPECT. TOM: PRESIDENT TRUMP SAID HE WOULD RAISE TARIFFS AND WE TOOK HIM AT HIS WORD. WE MANAGE THAT QUITE EFFECTIVELY. WE DON'T MANUFACTURE IN CHINA. WE OPENED UP A FACTORY IN THE U.S. IN MEXICO TO HELP US MANUFACTURE AND MEET THAT DEMAND AND THAT TURNED OUT TO BE VERY INSIGHTFUL DECISION. NOW WE WILL BE OPENING UP A FACTORY IN THE UNITED STATES IN FORT WORTH. THAT WILL BE THERE TO SERVICE OUR CUSTOMERS IN THE MILITARY, THERE WILL BE SPECIAL SECURITY AND STRICT STANDARDS AROUND THE DATA. IT'S QUITE AN EXCITING TIME FOR US FROM A MANUFACTURING STANDPOINT BECAUSE WE'VE AVOIDED MOST OF THE FRACAS. ED: H-1B VISAS WE'VE DISCUSSED WITH THAT FOOTPRINT IN THE U.S. YOUR BUILDING WHAT DOES THAT LOOK LIKE FOR YOU IN HIRING COMPETITIVELY ON ENGINEERING IN PARTICULAR. TOM: WE ARE INVESTING HUGELY IN THE UNITED STATES. WE HAVE ABOUT 1000 EMPLOYEES AT OURA AND 60% OF THEM ARE IN THE U.S.. WE ARE LESS EXPOSED TO THAT INTERIM DE-RISK AND SINCE MOST OF OUR TECHNICAL TALENT COMES FROM FINLAND AS WELL OR RESIDE THERE. I THINK IT'S REALLY IMPORTANT FOR THE ENTIRE TECH INDUSTRY TO LOOK AT THIS AND MAKE SURE WE ARE SOLVING THIS PROBLEM. I KINDA SUBSCRIBE TO KATHY'S POINT. I THINK WE WILL SEE SOMETHING WHERE THIS IS A NEGOTIATING STAND. CAROLINE: FASCINATING. TOM HALE, COME BACK SOON. COMING UP, AMAZON THREE EXECUTIVES HEADING TO COURT TO FACE ALLEGATIONS THEY VIOLATED CONSUMER PROTECTION LAWS. THIS IS BLOOMBERG TECH. ♪ CAROLINE: TIME FOR TALKING TECH. MORGAN STANLEY UPGRADED ASML JOINING THE LIKES OF UBS, THEY ARE BULLISH ON THE STOCK. SHARES IN THE COMPANY OF ADDED 33% FROM THE LOW. ASML BECOMING THE BIGGEST LIST OF COMPANY IN EUROPE. PLUS SHARES OF SAMSUNG MAY ALSO JUMP AFTER REPORTS SAY IT'S ONE APPROVAL FROM NVIDIA FOR THE USE OF ADVANCED MEMORY CHIPS. CLEARING COMPONENTS FOR USE IN AI ACCELERATORS ESSENTIAL TO TRAINING AI MODELS. AND ALIBABA IS SET TO LURE ESTABLISHED BRANDS AWAY WITH ITS OWN ALIEXPRESS COMMERCE SITE. THEY ARE ROLLING OUT A NEW INITIATIVE TO BOOST SALES PROMISING LOW SHIPPING FEES AND OFFERING TO TAKE A CUT -- A LOWER CUT OF SALES THAN AMAZON IS. ED: AMAZON EXECUTIVES FACE OFF AGAINST THE FTC. THE REGULATOR ALLEGES AMAZON MAKES IT EASY TO ENROLL IN ITS PRIME SERVICE AND UNDULY DIFFICULT TO CANCEL IN VIOLATION OF CUSTOMER PROTECTION LAWS. LET'S GET TO SPENCER. YOU AND I HAVE DISCUSSED THIS ISSUE OVER THE LAST FEW YEARS. WHAT DO WE NEED TO KNOW ABOUT THIS CASE AND THE ARGUMENTS AMAZON IS GOING TO TRY TO MAKE TO DEFEAT IT. SPENCER: AMAZON IS LOOKING AT POTENTIALLY FINDS WELL INTO THE BILLIONS OF DOLLARS. AROUND THIS SO IT HAS TO TAKE THIS SERIOUSLY. YOU ARE LOOKING AT FINDS OF $53,000 PER VIOLATION. OVER TENS OF MILLIONS OF PRIME SUBSCRIBERS. SO IT IS A RATHER BIG DEAL. THE FEDERAL TRADE COMMISSION IS ARGUING AMAZON HAS MADE IT COMPLICATED AND DELIBERATELY DIFFICULT FOR PEOPLE TO CANCEL PRIME IF THEY DON'T WANT IT AND NOW AMAZON IS TRYING TO ARGUE WELL THERE'S ALL KINDS OF WAYS THAT PEOPLE CAN CANCEL AND ALL KINDS OF DIFFERENT FLOWS AND THEY ARE REALLY TRYING TO MAKE IT LOOK LIKE THERE IS A VERY LARGE NUMBER OF WAYS THAT PEOPLE COULD CANCEL TO TRY AND MINIMIZE THIS EXPOSURE. TO ANY POTENTIAL VIOLATIONS. JURY SELECTION IS SUPPOSED TO START TODAY. TRIAL IS EXPECTED TO'S DRAGGED INTO OCTOBER AND IT IS KIND OF A TEST CASE AROUND SUBSCRIPTIONS AND HOW EASY IT IS TO SIGN UP FOR THINGS WHEN YOU'RE ON THE MOVE AND HOW HARD IT IS TO CANCEL. > > THE FTC IS LOOKING AT SURGE ADVERTISING PRICES OF AMAZON. MORE BROADLY THEY ARE IN THE EYE OF THE STORM WHEN IT COMES TO THIS. SPENCER: IT IS AN INTERESTING PHENOMENON BECAUSE A LOT OF THE STUFF IS A KIND OF HOLD OVER FROM THE PREVIOUS ADMINISTRATION AND THERE'S BEEN A LOT OF QUESTIONS ABOUT HOW TRUMPS FTC WILL CARRY ON SOME OF THESE BUT AMAZON IS STILL FEELING THE HEAT , LOOKING AT FRESH ALLEGATIONS ON THE ADVERTISING FRONT ON THESE AUTOMATED AUCTIONS AROUND SEARCH ADVERTISING YOU SEE AND NOW THERE IS ALSO CONSUMER PROTECTION CLAIMS. THEY ARE NOT OUT OF THE WOODS YET. CAROLINE: SPENCER SETTING A STRAIGHT OF THAT UNFOLDING LITIGATION. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECH AND WE HAVE TO CHECK OUT THE PODCAST. ED: A BIG WAY TO START THE WEEK. YOU KNOW WHERE TO FIND IT ON ALL THE BLOOMBERG PLATFORMS, ONLINE AT SPOTIFY AND I HEART.

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Oracle to Recreate TikTok’s Algorithm in the US | Bloomberg Tech 9/22/2025

Bloomberg’s Caroline Hyde and Ed Ludlow discuss plans for Oracle to recreate and manage a copy of TikTok’s algorithm for US users. Plus, CEO changes abound, with Oracle promoting Clay Magouyrk and Mike Sicilia to co-CEOs, and T-Mobile elevating chief operating officer Srini Gopalan to the top role replacing Mike Sievert. (Source: Bloomberg)

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