The Bloomberg Tech segment opens with major news about Warner Bros. Discovery, which is expanding its strategic review to maximize shareholder value. The company is considering various options, including splitting the business into separate cable TV and studio/streaming entities, selling parts or all of the company, or pursuing other deals. This announcement caused Warner Bros. Discovery shares to surge by 9-11%, with interest reportedly coming from major players like Netflix, Comcast, and Paramount SkyDance. The media giant’s rich library of intellectual property, including Harry Potter and the DC Universe, makes it an attractive target for acquisition or restructuring.
In the banking sector, OpenAI is developing financial models under a secretive initiative called Project Mercury, aiming to automate the repetitive and time-consuming tasks typically performed by junior bankers and analysts. These tasks include financial modeling, preparing presentations, and updating Excel spreadsheets. By automating these grunt tasks, OpenAI hopes to free junior bankers to focus on more strategic and analytical work, potentially transforming the skill sets required in investment banking. The project involves hiring experienced investment bankers as contractors to help train the AI models.
President Trump announced a rare earth minerals deal with Australia designed to counter China’s dominance in the critical metals supply chain. This move comes ahead of anticipated trade talks between the U.S. and China, with Trump expressing optimism about reaching a fair deal. The deal aims to reduce U.S. dependence on China by securing a faster pipeline for critical minerals from Australia, which holds a significant portion of the world’s rare earth elements. Experts emphasize the importance of developing a robust rare earth supply chain in the U.S., similar to the energy sector, to maintain technological and economic leadership.
The segment also covers the impact of AI on the utilities sector, highlighting how AI-driven demand for data centers is transforming utilities from stable investments into growth stocks. Rob Thummel from Tortoise Capital explains that electricity and data are foundational to AI, and the U.S.'s ability to produce low-cost electricity positions it well for AI dominance. Investments in infrastructure, including data centers and electricity generation, are seen as critical enablers of AI’s future growth. Companies like Evergy are benefiting from new AI data centers, and some Bitcoin miners are transitioning to data center operations to capitalize on this trend.
Finally, the program touches on several other tech and market developments, including Amazon’s significant 15-hour AWS outage, which affected many websites and services but did not hurt the company’s stock price. The discussion also includes updates on IPO activity during the U.S. government shutdown, with new SEC guidance allowing companies to go public with less detailed paperwork. Additionally, Turo is launching a new monthly car rental service as an alternative to car ownership, aiming to capitalize on changing consumer preferences. The show concludes by emphasizing the ongoing strategic shifts in media, technology, and supply chains amid geopolitical tensions and technological innovation.
