Tech Leaders Approach Trump, Intel Seeks Altera Buyers | Bloomberg Technology

Market Volatility and Tech Leaders

• Tech leaders are approaching Trump, and Intel is seeking buyers for Altera, amidst a volatile market with triple witching and a focus on the NASDAQ, which is up 0.7% (59s).
• The market is experiencing significant sell-off following the digestion of potential rate cuts, with Bitcoin under pressure due to macro policy impact, down by $95,000 as of late (1m36s).
• Hillary Frisch from Clear Bridge notes that software has been the key calling card of December, with a movement from hardware and infrastructure into software, particularly with the applications of AI (2m3s).
• Frisch believes that some consolidation of gains in software is logical and could see more through the beginning of the year, but the overall trend is up, and an important demarcation has been reached in the space (2m34s).

Macro Policy Impact and Market Uncertainty

• Uncertainty over Trump and macro policy is affecting the market, with conservatively adjusted Q4 earnings calls and potential higher interest rates for longer, impacting various factors (3m3s).
• Valuation ratios are a concern, with some companies like Pal entering benchmarks and experiencing high growth, but it may be too heady, and earnings growth needs to catch up (3m26s).
• Pelletier is capitalizing on generative AI with government tailwinds, but the rest of the space is expected to see better growth, with a flurry of activity since COVID and increased investment in technology (3m41s).
• The current trading at 190-day times future earnings is high, and investors are looking for productivity and tangible results from the technology, with Salesforce working on a movement that has been out for only seven or eight weeks (4m25s).

Salesforce and Generative AI

• Feedback from customers testing Salesforce's movement in beta has been excellent, with compelling accuracy, ease of use, and ability to draw together critical enterprise data (5m5s).
• Tech leaders are approaching the Trump administration, and there is a possibility of increased M&A activity due to a friendlier administration, with startups trying to get into the space and some being successful, and disruption occurring with a new tech wave (6m11s).
• Salesforce is making acquisitions, but may not see large M&A due to their current focus and the presence of activists on the board (6m50s).

AI and Semiconductor Industry Dynamics

• There is a push and pull between semi and software as investors try to identify the real AI beneficiary, but both will be strong, with software starting to appreciate AI (7m52s).
• Agents represent a shift from homegrown or do AI to do it for me AI, which customers prefer, and this trend will continue (8m6s).
• Semi's are getting beaten up, and there is debate about whether smaller models with post-test time training will have financial implications (8m27s).

Intel and Altera

• Intel is shortlisting buyout firms for the next round of listings on Altera, with firms like Maine, Silverlake, Apollo, and Francisco Partners looking to bid (9m41s).
• Francisco Partners specializes in FPGA, the same technology Intel is trying to sell, and would need to partner due to their market capitalization (10m1s).
• Intel is coy about their plans, but has stated they want to sell a stake and take public, although it's unclear if they want to fully hand over reins (10m27s).
• Tech leaders have multiple proposals on the table, and they will consider any presented options, with the possibility of a group of private equity sponsors coming together to transform the company into what they think it should be (10m41s).

US Government Shutdown and Debt Ceiling

• The US government is facing a potential shutdown, with the House of Representatives considering a temporary measure to fund the government for a brief time to avoid a shutdown (11m58s).
• The House, led by Republicans, rejected a temporary funding plan despite pressure on GOP lawmakers to support it, and they are now working on a new plan, known as Plan C (12m12s).
• The new plan may involve dividing the bill that failed last night into separate votes on a continuing resolution, the debt ceiling measure, and disaster relief to see what can get across the floor (13m21s).
• The debt ceiling is a major point of contention, with some Republicans opposing the idea of lifting it for a couple of years, while others, including Donald Trump, suggest extending, repealing, or lifting it permanently (13m47s).
• Trump's suggestion to lift the debt ceiling permanently is seen as a way to facilitate his tax reform package next year, but some conservatives in the House are opposed to raising the debt ceiling, citing the need for fiscal responsibility (14m19s).
• Speaker Johnson faces a difficult task in finding a solution that meets the demands of his conference, Donald Trump, and Elon Musk, who are all pushing for different outcomes (14m47s).

Tech Leaders and Trump Administration

• Tech leaders, including Google co-founders, Jeff Bezos, Elon Musk, David Sachs, and Marc Andreessen, have been meeting and dining with President-elect Trump, marking a different atmosphere compared to 2016 when tech executives felt forced to attend a meeting at Trump Tower (16m0s).
• The current meetings, often one-on-one and friendly, have raised questions about the awkward situation of competitors, such as Elon Musk and Jeff Bezos, being at the same table and how much they can accomplish with Trump (16m49s).
• The space competition between Blue Origin and SpaceX is fierce, and it's unclear what indications Trump will give regarding his inauguration in the meetings, where tech leaders like Mark Zuckerberg have been showing off their latest innovations (17m18s).
• Tech companies want to stay on Trump's good side by showing up and demonstrating public affection, whether through donations or personal appearances, to avoid regulation around AI and other tech knowledge (17m33s).
• Companies like Facebook, led by Mark Zuckerberg, don't want the Trump administration to hamper their AI growth, and they're trying to build relationships with Trump to make their road easier over the next four years (18m0s).
• Many tech leaders are following Peter Thiel's approach from 2016, trying to build relationships with Trump to benefit their companies (18m26s).

Tencent, Baidu, Bytedance, and Foxconn

• In other news, Tencent's stock soared on Friday after investor enthusiasm for a new gifting function on WeChat, and the company is partnering with Honor on cloud and AI development (19m0s).
• Baidu's stock declined as investors reacted to news that Apple is in talks to work with them on intelligence (19m37s).
• Intel is seeking buyers for Altera, and Foxconn's interest in Nissan is unclear (18m31s).
• Bytedance has cut a new AI model, and Foxconn, a manufacturer of iPhones, is showing interest in pursuing this app, with negotiations underway according to sources (19m47s).
• The architect of the alliance between Bytedance and Foxconn believes the tie-up is a desperate move due to cash and investment problems, being hammered in the US, and being challenged in China (20m7s).
• Foxconn's interest in Nissan was catalyzed by Japan's efforts to prevent Taiwanese companies from buying up Japanese ones, and it is unclear what will happen between Honda and Nissan (20m52s).
• Nissan needs help and is effectively meeting a rescue, with the Japanese government likely playing a role in nudging the companies together (21m38s).
• China is a weak spot for both companies, with questions about their long-term future in the market and room for international companies given China's desire to dominate the industry (22m10s).

Bitcoin and Crypto Market Outlook

• Bitcoin's price exceeded $108,000 per token on Tuesday but has since dropped to the $97,000 level, with money coming out after 15 straight days of inflows into spot Bitcoin ETFs (23m20s).
• Cathie Wood discussed her outlook for Bitcoin in 2025 and the impact of the incoming Trump administration on Tesla and autonomous driving, predicting that autonomous mobility will be regulated on the federal level (23m58s).
• Wood believes federal regulation will speed up the move towards autonomous taxi networks and that investors and analysts are starting to model out what this will mean to the Tesla model (24m19s).
• Margins from mid-teens are expected to increase up into the 60's due to robotaxis and autonomous taxi networks being a SASS model, with advancements in humanoid robots' dexterity in their hands making things possible that were previously thought impossible (25m26s).
• Bitcoin has seen a phenomenal run-up in recent months, and some experts still see it hitting lofty milestones, such as $100,000, with the potential to go even further (25m44s).
• Institutional investors are focusing on Bitcoin as a new asset class, with regulatory green lights expected to increase their interest, and they are doing the arithmetic to consider an allocation due to supply and demand (26m9s).
• The total supply of Bitcoin is capped at 21 million units, and with over 19.5 million units already in circulation, institutional investors are taking a closer look at the asset class (26m35s).
• The probability of Bitcoin reaching $1-1.5 million by 2030 has increased due to institutional interest, and some experts believe it will be the biggest opportunity in the market (27m1s).
• Despite recent weakness in the crypto market, some experts see it as a healthy pullback, with long-term leverage drivers still intact, and the market is expected to build from there (27m47s).
• Institutional money is coming into the crypto market, with some experts seeing a flood of high net worth individuals and institutions moving in size, driven by increasing regulatory clarity (28m50s).
• A survey of professional investors found that a lack of regulatory clarity was the main reason keeping them out of the market, but with clarity coming, the floodgates to institutions have opened (29m8s).
• BlackRock has recommended that most people should have a 1-2% allocation to Bitcoin, which could lead to a significant amount of investment coming into the market in 2025 (29m20s).
• Bitcoin is expected to broaden out, with other cryptocurrencies and asset classes potentially benefiting from the increased interest in the market (29m40s).
• Billions of dollars have been flowing into Ethereum products over the last month, following a period of tepid inflow over the summer (29m48s).
• Historically, most people enter the crypto market through Bitcoin and then discover other assets, such as Solana, and there's no reason to assume institutions won't move on to other assets in the future (30m0s).

Crypto Market Growth and Regulation

• An explosion of interest in strategies to give diversified exposure to crypto is expected in 2025, which will become the mainstream way to allocate the space (30m25s).
• David Sachs, a friend and long-time investor, has been involved in the crypto conversation, and having someone like him in a position of influence is important for the future of America (30m55s).
• Regulatory clarity is crucial for the growth of the crypto industry, and Bitwise is involved in Washington, speaking to folks and advocating for better regulation (31m22s).
• There is a worry that some points in the crypto market could ultimately hurt those who understand it enough, but better regulatory clarity is the answer (32m9s).
• Investors moving into crypto should be careful and understand the difference between established assets like Bitcoin and newer, AI-driven meme coins (32m29s).
• The crypto market needs all the pieces to thrive, including options, ETFs, futures, and other derivatives, as well as institutional players taking part in the ecosystem (33m16s).
• The industry has been checking every box, and the track record suggests that crypto will accelerate in 2025 and become a major new asset class alongside stocks, bonds, and commodities (33m51s).

AI-Native Platforms and the Future of IT

• The applications of AI are becoming increasingly prominent, with AI-native workflow automation software platforms set to revolutionize the industry in the next three to five years (35m4s).
• Katherine, the CEO and founder of a no-code creation software company, is taking on publicly traded heavyweights like Salesforce and ServiceNow with her company's AI-native platform (35m21s).
• Katherine's company has been helping people who cannot code to create software, and their platform combines different patterns of AI, including predictive and prescriptive AI, depending on the use case (36m25s).
• The company's AI-native platform is not an additional module on top of the existing platform, but rather the central part of the platform, and users do not have to pay extra for AI applications (36m58s).
• Katherine defends her company's territory by highlighting the unique experience of the user, where AI learns to collaborate with the end user, and the platform is designed to use natural language as the future programming language (38m10s).
• The adoption of AI-native platforms is a bottleneck, with employees worried about being deemed lazy or not getting the necessary training, but Katherine's company is expanding the library of AI skills and use cases to increase adoption (39m19s).
• Katherine's company is focused on building and developing new AI skills, and expanding the number of use cases that can be covered using AI, to increase creativity and adoption among users (39m29s).
• Tech leaders are approaching Trump, and Intel is seeking buyers for Altera, but the details of these developments are not specified in the provided text (39m44s).
• The future of IT is expected to involve a single AI interface for collaboration in English, allowing users to perform any task without opening other interfaces, with the company being a front-runner in building these skills (39m44s).
• The pricing of AI platforms, such as Creation AI, is a factor in their adoption, with some companies requiring additional licenses to access the platform, which may slow down the adoption process (40m8s).

Amazon Workers Strike and Labor Relations

• Amazon workers, specifically Teamsters Union members, are on strike in several states, including California, New York, Illinois, and Georgia, demanding better working conditions, with Amazon filing unfair labor practice charges against the union (41m31s).
• The strike is not expected to have a significant impact on Amazon's operations, as the company has advanced notice and can send packages through other facilities (41m58s).
• The strike is part of a broader effort by labor unions to organize Amazon workers, with the Teamsters targeting delivery depots and blue badge employees (42m33s).
• Business leaders are looking towards the next administration, with many workers feeling represented but others feeling that the current administration has been adverse to unions (43m0s).
• Union leaders are aware of the changing administration and the potential impact on labor relations, with the National Labor Relations Board likely to change under a new administration (43m12s).

Market Volatility and Crypto Performance

• The markets are experiencing a volatile day due to triple witching, with crypto still underwater but having had a significant run (43m47s).