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TikTok to Oracle and ARM to NVidia

by | Sep 16, 2020 | Youtube

The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

Views that have come out in the previous couple of days at the time recording, we’re recording this on the 15th of September. Twenty twenty, and they seem somewhat unrelated, but I think they do have a relation. So the first up is tick tock. The Marcello’s favourite app is being sold because the American government is effectively forcing the bike dance, the Chinese company, which owns Tick-Tock to sell it. Otherwise they’re going to shut it down, playing a bit geopolitics there. And it’s just been announced that Microsoft had put in a bid which has been turned down. And it’s increasingly looking likely that Oracle is going to be successful in possibly purchasing it. The actual sort of terms of the deal seem very, very fuzzy from what I can see those in their press release. There isn’t any sort of mention of the term purchase, but sort of partnership. So we’ll see how that shakes out. And the other bit of news which happened very recently, which may or may not go through to paying it depending upon regulators and things like that, is that ARM Holdings, the chip manufacturer or sorry, that the chip designer, which was previously owned by Softbank, which they bought lock, stock and barrel, the first two billion dollars, is being sold to video, which is another chip designer graphics C.P.U. G.P.A. is a designer and also very highly involved in sort of like machine learning hardware and things like that. They’re buying it from Softbank for 40 billion dollars. And that’s caused quite a big hoo ha both in the tech space, because ARM was always a very independent entity. A lot of companies use of licence, the arm designs for the chips. So Apple famously use it. Most everyone uses it. To be honest, this is a very sort of standard thing to use. But the end video are very much not an independent minded kind of company. They’ve just overtaken Intel as the largest chip maker in the US. And they’re on a bit of a tear. And there’s so there’s a big sort of worries. And the reason why these two things are related is to do with the sort of geopolitics of the situation. So the arm was a British company based out of Cambridge in the U.K. It originally came about in the 1980s where Apple and ACORN computers came together and sort of launched a side project which became ARM. And it was considered to be a sort of the jewel in the tech crown of the sort of U.K. tech market. And then there was a lot of fuss made when Softbank bought it. So Softbank of the Japanese sort of superfunds, because essentially, you know, you are moving a large kind of country wide asset out effectively out of the country, even though ownership is way out the country, even though it’s sort of the headquarters and everything else from where they are. But you’re sort of losing that technology to sort of a different part of the world. And this and a video as well. It brings us to a video exactly the same. They’re an American company. And so, you know, there’s a transfer and they’re not necessarily going to sort of keep their headquarters and the and the sort of employment guarantees in the U.K. and things like that. And the same thing with ticked up. Right. So Tock Chinese company, the American government is particularly keen to clamp down on that because of data data issues. They’re worried about sort of vast hundreds of millions of videos of Americans dancing stupidly as somebody’s going to be utilised by the Chinese government for some various purpose. I’m not sure what, but, you know, I’m sure maybe blackmail videos or something like that, blackmail the bad dance moves. But essentially is people playing geopolitics. And there’s also some suggestion about the fact between why Oracle is being preferred over Microsoft might have to do with the sort of political leanings of the various people involved in those companies and Dada’s. So it is all very complicated and it’s all a little bit political. I thought it was quite interesting. What what do you think about these situations?

Yeah. The question is why the heck is going on? And basically has so it’s hard to, as you said, to figure it out because it’s happening behind the scenes. Lots of information is not public. Yeah, all things different. They are related, as you said. Yeah. On probably the link. So the main difference is that one buyout or partnership was forced by a nation. In this case, the U.S., first off, is gone. So it’s one of its kind event, whereas the other is like a private transaction. So it’s not something new, although probably the link to both from the geopolitical stuff you mentioned is that increasingly these super mega corporations are like countries. Well, like, their influence is so big that it’s they are as powerful, you know, as other nations.

Definitely more powerful than many nations and so on, that many politicians. So that’s an issue. Probably also open question to the UK government, because, you know, the US is trying to play the cards to to improve their odds or their country’s growth on technology dominance. Sidrah. China is doing so protective as well. And the UK is just letting go. Every company so and his heart rate to beat those companies being that like a smaller island, basically you have a smaller market, et cetera. But so it’s so hard. And once they let go the mind, we talked about that before now with arm. Arm was leg already listed. But I mean, eventually, if you are the government guy intervene, you can put my nanny site to try to be like a shareholder in the company. So then they’ve got maybe Softbank couldn’t sell it right now or this and that. You know, you you will have a vote and you will make everyone also to to benefit from the success of local companies. So for the taxpayers. So then you have all these sovereign funds, many nations that are doing exactly that. So, yeah, big question mark on that shoot. Should you be just one percent liberal on and let the markets decide? Are you just letting go your main assets when everyone else is super protected? So when it comes to the Oracle deal, that’s interesting as well, because there was always these very large video, I would say, and stiff competition between the founder of Oracle, Larry Ellison and Bill Gates are found herself Microsoft. So it’s it’s interesting, the timing on this other force up partnering with private equity guys. I think Silver let Silver Lake and others. So, yeah, it’s it’s not clear what’s the deal, because I’m sure that they’re I mean, Trump is treating it like a private transaction. I’m hearing claimed that they’re the feds should get a cut or that’s someone in government. So definitely I wouldn’t be surprised. I’m not saying definite about that. Most likely there will be no political implications there or affinity involved. Yeah, why not? There is very also public case on there was this that big defence contract that A.W. us. So I myself was the clear or the front runner almost. They almost close the deal and last minute. I think Microsoft stripped from it. It was argued it was because of the bad relationship between Bessler son and Trump.

So that was that that system was called GDI. VDI.

Yep. Yep. There you go. And so, yeah, I would differentiate. Also, it’s it will be interesting to see regardless who is a buyer of Tick-Tock or partner or whatever. Leaving that aside, apparently the main technology is not going to be sold, which is Saligari from mom. Why so sticky and this and that. So then yeah, I’m not so sure how that will play out. Well, we’ll see.

But also, it will be interesting. I think you will get too technical on how their database protected. It will be hard to assess if it’s protected at all.

Definitely won’t give us one stop China from developing, you know, company advantage from a technology point of view, I think of actually recently.

This guy, Eric St. Smith from the former CEO of Google, he came to talk to the BBC. He was pointing now that the U.S. is dropping the ball and I’m just paraphrasing him when it comes to leaving the U.S. being a tech superpower or their main tech superpower in the world. China has been able to catch up because of the U.S. cutting on R&D that it used to be two percent of their GDP. They started cutting down that on this and not on by policy. They just let it go or are letting it go. So that’s that’s something also we talked before. So should governments be involved? So how? It was an open question why the EU doesn’t have big tech? Why only China and Europe? Sorry, China and the U.S. So the question was, should government get involved? So the U.S. R&D budget. But yeah, I do think it should. They are governments getting both upset or create an ecosystem we’re talking about because it takes time to trigger that possibly feedback loop. You know, there are entrepreneurs who exited and put the money back and also coach these new entrepreneurs. And then with ABC some money on some Gorman support or tax relief. So it kicks in. Yeah, I think that Europe should do better. The U.K. is especially. And Eric was saying that actually went what when asked specifically the hard question. So can’t China and us work together rather than compete? He said that the need to compete to get better each other. But when it needs to collaborate, they will because it’s. Sometimes he’s like, you know, common sense or just inevitable that they need to collaborate. So that probably was their political correct question, especially talking to the BBC. But it doesn’t look like that. You know, in the field.

So, yeah, it’s it’s a bit. So if you start manipulating free markets, that’s a bit dangerous, I’d say.

But again, it’s it’s interesting to see how threaten us now feels from Chinese technology and how that’s starting to change on China’s very aggressive on how they are going out there and into the US market as well to try to dominate with all sorts of things, apps. I would say beyond technology, they were they’re just going for it with their try transitioning what Japan did in the old days from being, you know, seen as their cheap option to now be, you know, that like that top player quality designs manufacturing. So manufacturing is being more relocated to Vietnam now, etc., whereas I mean, from the ones who want cheap manufacturing, like China is dominant in the supply chain anyway.

So highly skilled people and lots of infrastructure, some other ah, I like arenas to see these competition between us and China using the space race where us have all these, you know, our private companies pumped by NASA, of course, just as they say, public private enterprise going together into space. West China’s just all state funded. But this is coming some impressive, you know, stuff getting done. So they went to the back side of the moon. They’re throwing some entangled protons at his base. They’re planned to go to Mars or they Arae shoot something to Mars, which is very sophisticated as well. And they are on one of the reasons that, you know, they were saying probably the US has better technology, but China has all the components of manufacturing within the country. So the entire supply chain for whatever they want to build, including rockets, they do it in China. So then it goes on about the same. So even if it’s less efficient from the country point of view, they get it done with costs. So if you if you keep ITER nine proved that eventually you will be hard to compete with. But yeah, let’s see. There’s lots going on. I think that Softbank is an interesting case.

He’s fighting everywhere. It gets a lot of influence for sure. So it will be interesting to see. Were were could be an indication on where things are going as well. Yeah.

Cool. All right, thanks so much for that. Thank you, everyone, for listening. We’re back. Every Tuesday and Thursday, please cheque out our YouTube channel, which is where we post this podcast on our other videos. You can search for net workers. That’s two words. Well, you can find the link in the show notes for this podcast. If you’re interested in help, mentorship and courses for entrepreneurship and starting businesses, please do cheque out our Web site, which is Network Stocco. See your next time. Right. Thanks.

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