WEBVTT - Alibaba to Ramp Up AI Spend, Kimmel Returns to Late Night 0:00:02.520 --> 0:00:12.880 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.920 --> 0:00:16.720 from coast to coast with Caroline Hide in New York 0:00:17.040 --> 0:00:20.119 and Eva Low in Sentrancsco. 0:00:22.160 --> 0:00:23.919 This is Bloomberg Tech coming up. 0:00:24.000 --> 0:00:26.720 Ali Barberscher's surge to the highest level for nearly four 0:00:26.800 --> 0:00:30.680 years after revealing plans to ramp up AI spending. 0:00:30.520 --> 0:00:34.320 Plus Stargate takes shape. Five new data center sites in 0:00:34.360 --> 0:00:36.960 the US planned as open aiplows one are a billion 0:00:37.000 --> 0:00:40.680 dollars into AI infrastructure along with partners Oracle and SoftBank. 0:00:41.080 --> 0:00:44.239 And Jimmy Kimmel returned to TV Tuesday night, saying it 0:00:44.320 --> 0:00:47.400 was never his intention to make light of the murder 0:00:47.400 --> 0:00:48.240 of Charlie Kirk. 0:00:48.479 --> 0:00:49.360 We have the latest. 0:00:49.920 --> 0:00:52.400 Let's turn our attention though to the markets which are 0:00:52.400 --> 0:00:54.360 flat on the day and the moment, and I'm looking 0:00:54.360 --> 0:00:56.920 at nassack up. Well, we're currently lower by tenth of 0:00:56.960 --> 0:01:00.000 a percent. We have been training higher. No, we've got sensitivity, 0:01:00.240 --> 0:01:03.520 sensitivity to the macro data home sales coming strong yields 0:01:03.520 --> 0:01:06.120 on the bond market therefore push higher. Also though the 0:01:06.160 --> 0:01:09.120 bond market, the US treasury market being affected by a 0:01:09.120 --> 0:01:12.119 big corporate debt sale coming from a big tech player 0:01:12.120 --> 0:01:13.360 at Yeah. 0:01:13.160 --> 0:01:15.000 There's a lot of stories to get to in the program. 0:01:15.040 --> 0:01:17.480 You are right, Oracle shares are down, but it's a 0:01:17.520 --> 0:01:21.119 debt story tapping corporate bond markets for fifteen billion dollars 0:01:21.120 --> 0:01:23.200 of debt, including a very rare. 0:01:23.040 --> 0:01:23.680 Forty year No. 0:01:24.080 --> 0:01:25.679 In the program, we're going to get to that and 0:01:25.920 --> 0:01:28.200 their role in what's happening with open AI and the 0:01:28.200 --> 0:01:32.119 Stargate build out. Ali Barber having a really strong day 0:01:32.440 --> 0:01:35.679 simply pledging to spend even more on AI than the 0:01:35.680 --> 0:01:39.160 fifty billion dollars they already disclose, and then Microns strong 0:01:39.240 --> 0:01:43.400 forecast for the current period in line with consensus above consensus. 0:01:43.440 --> 0:01:45.680 But as you know is always the case, there are 0:01:45.720 --> 0:01:47.800 elements of the street that were even more bullish. They 0:01:47.800 --> 0:01:50.240 wanted to see more from the Memory Maker in the 0:01:50.320 --> 0:01:53.040 role that it's playing in Aida Center's characters. 0:01:53.120 --> 0:01:55.000 Only when it's added forty percent of its share price 0:01:55.000 --> 0:01:57.520 in just this month's the lone ed. But first it 0:01:57.520 --> 0:02:00.200 is the United Nations General Assembly. It's still underway this 0:02:00.200 --> 0:02:02.280 week here in New York, and we now go to 0:02:02.320 --> 0:02:05.800 the un Rose Garden Weblionberg survey that says Amri Horden 0:02:05.880 --> 0:02:07.160 is standing by with a special guest. 0:02:09.760 --> 0:02:11.639 Thank you so much, Caroline. Well, as far as the 0:02:11.760 --> 0:02:14.600 UN General Assembly goes, this one was of note. The 0:02:14.680 --> 0:02:18.119 past twenty four hours we saw really a massive geopolitical 0:02:18.200 --> 0:02:21.160 shift from the rhetoric of President Donald Trump, and I'm 0:02:21.200 --> 0:02:23.239 so glad right now to get the inside of what 0:02:23.320 --> 0:02:27.240 this means for Europe. She's European's top diplomat and also 0:02:27.360 --> 0:02:30.520 the former Estonian Prime Minister Kaya Kalis. Thank you so much, 0:02:30.560 --> 0:02:31.639 and welcome to Bloomberg TV. 0:02:31.919 --> 0:02:32.720 Thank you for having me. 0:02:33.040 --> 0:02:35.600 So yesterday, President Trump came out with this post on 0:02:35.680 --> 0:02:39.040 social media saying he thinks Ukraine can actually get back 0:02:39.480 --> 0:02:41.280 all of the land, a very different tone that we 0:02:41.360 --> 0:02:44.160 saw from him even just three weeks ago. He said 0:02:44.200 --> 0:02:46.760 that the European Union would have to be on board 0:02:46.800 --> 0:02:48.760 with this, so what is the path forward? 0:02:49.600 --> 0:02:53.440 Well, it was also very positive statement. I mean before 0:02:53.480 --> 0:02:56.280 I also met with the Ukrainians who had a meeting 0:02:56.360 --> 0:02:58.359 with President Trump and also said that it was a 0:02:58.520 --> 0:03:03.040 very good meeting, asking you know, how you know US 0:03:03.160 --> 0:03:07.679 can support also Ukraine and saying that you know, Russia's 0:03:07.919 --> 0:03:10.440 economy is not doing well all what we also read 0:03:10.520 --> 0:03:12.600 in the in the post. So we have been on 0:03:12.760 --> 0:03:16.840 that line, and we really welcome the shift in the tone. 0:03:17.440 --> 0:03:22.040 The president also talked about even going further into even Russia. 0:03:23.200 --> 0:03:26.359 Is you're prepared to buy more weapons to then give 0:03:26.440 --> 0:03:27.200 them to Ukraine. 0:03:28.720 --> 0:03:31.680 Well, we are doing a lot. I mean this year 0:03:31.840 --> 0:03:35.880 only our military support to Ukraine has been twenty five billion, 0:03:35.960 --> 0:03:39.360 which is more than any other year. It is clear 0:03:39.480 --> 0:03:42.800 that we have to help Ukraine to defend themselves because 0:03:43.120 --> 0:03:46.200 as President Zelenski said in speech as well, I mean 0:03:46.280 --> 0:03:49.080 if we allow Russia will just go further, we have 0:03:49.320 --> 0:03:51.360 to push them back. We have to also say that 0:03:51.480 --> 0:03:56.160 this is not okay and you cannot let the aggression 0:03:56.240 --> 0:03:56.600 pay off. 0:03:56.840 --> 0:03:59.000 Due to the sense of which European countries, though are 0:03:59.120 --> 0:04:01.920 willing to put it more funds when it comes to Ukraine, 0:04:01.960 --> 0:04:04.160 whether or not it's funds directly or to actually buy 0:04:04.240 --> 0:04:04.880 those weapons. 0:04:05.680 --> 0:04:10.320 Well, we have different initiatives also to help European countries 0:04:10.440 --> 0:04:13.920 to help Ukraine but also invest more in their own defense, 0:04:14.480 --> 0:04:17.960 and we are putting a lot of funding on the table. 0:04:18.760 --> 0:04:22.240 Of course, it is difficult. It requires also member states 0:04:22.360 --> 0:04:27.159 to make some very difficult decisions like cutting social spending 0:04:27.279 --> 0:04:30.080 but also raising taxes which are not popular. That is 0:04:30.240 --> 0:04:33.440 very clear but we are in this situation where we 0:04:33.560 --> 0:04:36.080 are where we have to invest in defense, and the 0:04:36.160 --> 0:04:39.880 problem is that you need it when you actually don't 0:04:40.200 --> 0:04:42.560 feel the need yet. So you need to do the 0:04:42.640 --> 0:04:46.880 decisions way before you actually need the defense capabilities. And 0:04:47.120 --> 0:04:49.200 if you do it, it acts as a deterrence so 0:04:49.360 --> 0:04:51.200 that the aggressor would not look your way. 0:04:51.800 --> 0:04:54.640 Trump also said yesterday the US is prepared for more 0:04:54.760 --> 0:04:59.920 powerful sanctions, robust sanctions, tariffs on Russia, but only if 0:05:00.080 --> 0:05:02.400 the European Union is in lockstep. 0:05:02.839 --> 0:05:03.760 Now, we have seen. 0:05:03.640 --> 0:05:06.040 Movements the European Union is talking about when it comes 0:05:06.080 --> 0:05:08.680 to things like fossil fuels. They are ready to do 0:05:08.760 --> 0:05:11.719 these tariffs. But we are three years and seven months 0:05:11.760 --> 0:05:15.159 into this war. Why did it take for President Trump 0:05:15.279 --> 0:05:19.120 to convince Brussels to do what Brussels probably knew from 0:05:19.120 --> 0:05:20.200 the very beginning they had to do. 0:05:20.800 --> 0:05:22.120 Now, excuse me. 0:05:22.279 --> 0:05:25.400 We have done the nineteen packages of sanctions, and we 0:05:25.440 --> 0:05:28.760 would like our partners three in lockstep with us because 0:05:28.800 --> 0:05:31.640 we have put a lot of pressure than next the 0:05:31.720 --> 0:05:36.000 package that we propose now, as also crypto financing institutions. 0:05:36.400 --> 0:05:41.520 Also energy. Yes, what Bresident Trump says about energy is true. 0:05:41.600 --> 0:05:43.640 We have been saying for the I know. 0:05:43.720 --> 0:05:46.159 You specifically are talking about this for a year. 0:05:46.160 --> 0:05:49.880 Quite some time, because we have been dependent on Russia 0:05:49.960 --> 0:05:52.960 and now we are phasing out, and it's true that it. 0:05:53.000 --> 0:05:53.839 Should be faster. 0:05:54.080 --> 0:05:57.040 We are trying to push those few Member states who 0:05:57.080 --> 0:06:00.600 are still buying Russian energy to show that actually, if 0:06:00.640 --> 0:06:03.320 you want this war to stop, you need to really 0:06:03.440 --> 0:06:06.159 cut off the funding of this war which comes from 0:06:06.880 --> 0:06:08.039 the fossil fuds. 0:06:07.920 --> 0:06:09.600 Hungary, Belgium, France. 0:06:10.240 --> 0:06:11.640 Do you think they're really prepared to do this? 0:06:12.839 --> 0:06:16.400 I mean these countries, I mean the countries who are 0:06:16.560 --> 0:06:21.360 dependent on Some are making great steps and some are 0:06:21.440 --> 0:06:26.240 not so clearly, some are great friends of President Trump, 0:06:26.360 --> 0:06:30.200 which has been also our appeal to President Trump to 0:06:30.320 --> 0:06:34.200 talk to them, like Hungary, for example, so that this 0:06:34.400 --> 0:06:39.400 is necessary. The neighbors around Hungary, for example, have proposed 0:06:39.480 --> 0:06:42.440 solutions so that they can get energy from the neighbors 0:06:42.520 --> 0:06:44.840 and do not have to depend on Russia, but so 0:06:44.960 --> 0:06:48.720 far they haven't really wanted to as the energy is 0:06:48.800 --> 0:06:49.360 much cheaper. 0:06:49.720 --> 0:06:52.560 Do you view this posture now from the United States? 0:06:52.920 --> 0:06:54.920 Some are calling it a full one eighty? Do you 0:06:55.000 --> 0:06:56.840 view it as concrete? Is this tangible? 0:06:57.240 --> 0:07:01.440 How long will it last, Well, we welcome those statements 0:07:01.960 --> 0:07:05.800 and the change of tone. Like I said, so let's 0:07:05.839 --> 0:07:08.960 build on this also really tangible steps. I mean on 0:07:09.080 --> 0:07:12.440 the European side, we have been keeping this line. Also 0:07:12.520 --> 0:07:16.080 putting our money where our mouth is, I mean, supporting 0:07:16.680 --> 0:07:20.080 Ukraine their defense capability, is investing more in our defense 0:07:20.160 --> 0:07:23.480 and also pushing back Russia, putting pressure on Russia. What 0:07:23.600 --> 0:07:25.960 we want to see you from all our allies. 0:07:26.440 --> 0:07:29.280 One country that could really put pressure on Russia is China. 0:07:30.120 --> 0:07:31.680 Given the fact that you've been working with the United 0:07:31.720 --> 0:07:34.240 States when it comes to Russia, could more be done 0:07:34.720 --> 0:07:37.400 between the European Union and the US to put pressure 0:07:37.440 --> 0:07:40.960 on China to then put pressure on putin USS tariffs 0:07:41.040 --> 0:07:43.400 on China. Is it time for the European Union to 0:07:43.520 --> 0:07:46.520 consider putting the walls up on China, not just what's 0:07:46.560 --> 0:07:49.320 going on in Ukraine, but also they're pretty much dismantling 0:07:49.400 --> 0:07:50.760 the European industrial base. 0:07:51.520 --> 0:07:54.720 Well, it is true. We have two big worries with China. 0:07:54.800 --> 0:07:58.440 One is the economic cursive practices that they are using 0:07:58.600 --> 0:08:02.840 against European companies which are really hurting our companies, industry 0:08:02.960 --> 0:08:06.240 and economy. And the other part is them being the 0:08:06.320 --> 0:08:10.600 key enabler of Russia's war in Ukraine. So we had 0:08:11.720 --> 0:08:14.440 China Summit. We are stressing all these points and really 0:08:14.560 --> 0:08:16.800 raising these points and also acting on them. If you 0:08:16.880 --> 0:08:20.080 look at the sanctions package, we are sanctioned also Chinese 0:08:20.160 --> 0:08:24.680 companies who are enabling this war to continue. So we 0:08:24.840 --> 0:08:27.800 are not or let's put it this way, that we 0:08:27.920 --> 0:08:30.280 are believers of free trades, so we are not using 0:08:30.400 --> 0:08:33.560 tariffs as the measures, but we are putting pressure by 0:08:33.640 --> 0:08:34.200 other means. 0:08:34.720 --> 0:08:35.200 I just want to. 0:08:35.200 --> 0:08:39.120 Finish on the incursions. When it comes to European airspace. Friday, 0:08:39.200 --> 0:08:41.560 it happened in Estonia, a country you used to lead 0:08:42.080 --> 0:08:44.240 is a Estonia, and these countries prepared to do with 0:08:44.280 --> 0:08:48.079 the President Donald Trump thinks NATO ally should do shoot 0:08:48.120 --> 0:08:49.680 these Russian aircrafts down. 0:08:50.360 --> 0:08:54.640 Well, NATO is a collective defense alliance, which means that 0:08:54.920 --> 0:08:57.840 attack on one is attack on all. This is Article five. 0:08:58.480 --> 0:09:03.480 So it's clearly if if those drones are airplanes, are 0:09:03.640 --> 0:09:08.880 violating the airspace, are creating security risks, then there has 0:09:08.920 --> 0:09:12.920 to be a proper response. The Esonia asked the article 0:09:13.000 --> 0:09:16.719 for which is consultations how to continue and all the 0:09:16.800 --> 0:09:21.280 member states in NATO, including the United States, have vowed 0:09:21.400 --> 0:09:23.239 to keep up their commitments. 0:09:23.360 --> 0:09:25.199 Madam Callis, thank you so much for time on Blomberg 0:09:25.240 --> 0:09:28.199 TV today. Caroline ed, of course, that was Europe's top 0:09:28.240 --> 0:09:31.679 diplomat welcoming the really reversal we saw from the President 0:09:31.800 --> 0:09:33.840 of the United States right here at the UN yesterday 0:09:33.840 --> 0:09:35.640 when it comes to Putin's invasion of Ukraine. 0:09:37.280 --> 0:09:40.600 Bloomberg's Amory Horden at the United Nations, thank you very much. 0:09:40.640 --> 0:09:40.679 So. 0:09:40.800 --> 0:09:44.000 Coming up on Bloomberg Tech, the largest US maker CP 0:09:44.040 --> 0:09:47.720 computer memory ships gabe an upbeat forecast for the current quoler. 0:09:47.760 --> 0:09:50.439 We'll talk about what's lifting Mike One's outlook. Next, why 0:09:50.520 --> 0:09:53.400 the shares aren't doing so well. This is Bloomberg Tech. 0:10:01.120 --> 0:10:05.120 Microsoft will start using AI models from Anthropic to help 0:10:05.160 --> 0:10:08.080 power its workplace AI assistant, a product that has so far, 0:10:08.120 --> 0:10:11.040 of course, been mostly driven by Open AI. Starting today, 0:10:11.200 --> 0:10:14.400 business users of Microsoft's Copilot branded AI assistant well, they 0:10:14.440 --> 0:10:16.760 will be able to toggle between open AI and Anthropic 0:10:16.840 --> 0:10:20.280 models for certain functions like digital research assistance or building 0:10:20.360 --> 0:10:23.679 customized AI Toolsberg's Brody Ford joins us for this and 0:10:23.960 --> 0:10:26.839 so many other stories. Brody we start with the idea 0:10:27.200 --> 0:10:29.360 the Microsoft becoming less and less dependent on open ai 0:10:29.520 --> 0:10:30.800 and versus vice versa. 0:10:31.240 --> 0:10:33.800 That's the big question for Microsoft right it's kind of stake. 0:10:33.880 --> 0:10:36.559 It's ai bets on the idea that open ai will 0:10:36.559 --> 0:10:40.200 be its golden goose. These two companies have slowly moved 0:10:40.200 --> 0:10:43.200 apart from one another, and today we see Microsoft making 0:10:43.240 --> 0:10:46.240 a big partnership with the other kind of leading frontier 0:10:46.360 --> 0:10:50.040 model maker of anthropics, showing that you know, they're testing 0:10:50.120 --> 0:10:52.920 the waters. They're looking around. They aren't as a bet 0:10:53.040 --> 0:10:57.040 on the Altman show, Brody. 0:10:57.240 --> 0:10:59.520 The big story in the market today is is Oracle 0:10:59.679 --> 0:11:02.920 tap in corporate bonds fifteen billion dollars including a forty 0:11:03.480 --> 0:11:06.839 year note, which is a rare thing, but actually it 0:11:07.000 --> 0:11:09.000 just speaks what you wrote about in the Tech and 0:11:09.080 --> 0:11:13.520 Depth newsletter. There are all these pledges and Oracle and 0:11:13.600 --> 0:11:16.559 others are run in all these checks for future infrastructure, 0:11:16.640 --> 0:11:18.920 and now they're trying to work out how they're going 0:11:18.960 --> 0:11:19.880 to cover those checks. 0:11:20.880 --> 0:11:23.520 Oracle is one of the great cash cow businesses of 0:11:23.600 --> 0:11:26.640 all time, but it's cash flows when negative, and it's 0:11:26.679 --> 0:11:28.360 going to be negative for the next couple of years. 0:11:28.400 --> 0:11:31.719 They've committed the serving of open ai, serving customers like 0:11:31.840 --> 0:11:35.040 Meta with huge data centers and that money's got to 0:11:35.080 --> 0:11:37.800 come from somewhere, and so folks have wondered where that 0:11:37.960 --> 0:11:41.679 will be, and so seeing them tap the debt markets 0:11:41.679 --> 0:11:44.120 in a big way today is not a shocker, but 0:11:44.200 --> 0:11:46.720 it's maybe a larger sum than we anticipated. 0:11:47.280 --> 0:11:50.000 And how amazing that people are willing to commit to 0:11:50.080 --> 0:11:52.760 buying forty year debt when still we're wondering if we 0:11:52.840 --> 0:11:55.240 win the AI race in that time. But I think 0:11:55.280 --> 0:11:57.319 it speaks to what was announce of late yesterday as well, 0:11:57.559 --> 0:12:00.840 open AI articulating those five new sites around United States, 0:12:01.120 --> 0:12:02.840 the idea that they need they're going to be playing 0:12:02.880 --> 0:12:05.600 four hundred billion of the five hundred billion committed in stargate. 0:12:05.880 --> 0:12:08.360 But what was really interesting and shoeing Gafari wrote about 0:12:08.400 --> 0:12:11.400 this was that basically some altman saying, we haven't quite 0:12:11.440 --> 0:12:15.079 got funding tied up here yet, We're having to be creative, 0:12:15.160 --> 0:12:18.040 basically is what they're saying. And look at how Video 0:12:18.160 --> 0:12:19.120 invested in Open AI. 0:12:19.240 --> 0:12:21.520 Off the back of that, you're hearing these fears of 0:12:21.559 --> 0:12:25.400 a circular spending a lot more right that one hundred 0:12:25.440 --> 0:12:27.920 billions going from Open Aid to Video to Oracle and 0:12:28.040 --> 0:12:30.719 back right, And the Oracle's new co CEO said that 0:12:30.880 --> 0:12:34.120 in Texas yesterday as well that look, we're clearly doing 0:12:34.200 --> 0:12:36.760 something here. You can see it. We have ambitious plans. 0:12:37.440 --> 0:12:40.040 The money is something we're still figuring out. This is 0:12:40.080 --> 0:12:42.240 a historic amount of investment, and we're going to have 0:12:42.360 --> 0:12:45.360 to use interesting new structures. Was I think his words. 0:12:46.520 --> 0:12:49.839 There's three new sites right in this expansion of stargates, 0:12:49.920 --> 0:12:53.480 Shackelford County, Texas, donn Aana County, New Mexico, and then 0:12:53.520 --> 0:12:56.480 somewhere in the Midwest. So we don't know about explain 0:12:56.600 --> 0:12:59.520 Oracle's involvement, because they are actually at the heart of 0:12:59.600 --> 0:13:01.840 this sty and I think it's worth lingering. 0:13:01.600 --> 0:13:07.319 On Oracle as agreed to effectively be the infrastructure middle person. 0:13:07.480 --> 0:13:09.320 Right They're going to go out and find data center 0:13:09.400 --> 0:13:12.120 developers who have figured out the power. They're going to 0:13:12.160 --> 0:13:15.240 rent big old buildings from them, fill them with servers, 0:13:15.320 --> 0:13:17.240 and then use power from those servers and give it 0:13:17.320 --> 0:13:20.840 to open AI. They have committed to a pretty incredible 0:13:20.920 --> 0:13:24.280 project here, and it's work that's worth noting that Microsoft 0:13:24.400 --> 0:13:26.839 passed on. They said that for whatever reason, they weren't 0:13:26.840 --> 0:13:30.400 going to do that, and so Oracle has found its 0:13:30.440 --> 0:13:33.480 way to be taken seriously in the clouds infrastructure game. 0:13:33.720 --> 0:13:36.400 Did something huge, but now it has to deliver. 0:13:38.120 --> 0:13:40.120 And has to find some money to do it. Adix 0:13:40.160 --> 0:13:42.720 brody Ford, great reporting, Thank you very much. The other 0:13:42.760 --> 0:13:45.400 big story out there in the market is Micron shares 0:13:45.440 --> 0:13:48.040 a little bit under pressure. The company reported a strong 0:13:48.160 --> 0:13:51.400 outlook for the current core to help by demand for 0:13:51.480 --> 0:13:54.120 high bandwidth memory in the AI context. It's a classic 0:13:54.160 --> 0:13:57.679 scenario Carrage talking about earlier where it beat consensus on 0:13:58.200 --> 0:14:01.080 its outlook, but at the very high end of estimates. 0:14:01.360 --> 0:14:03.560 You know, this was a high bar kind of corner. 0:14:03.600 --> 0:14:06.760 Let's get out to Kim Forrest Cio a book Capital Partners. 0:14:07.720 --> 0:14:10.839 You know, the market starting to understand that HBM is 0:14:11.240 --> 0:14:14.720 absolutely critical to the AI infrastructure build out we've got, 0:14:15.400 --> 0:14:18.000 but still such a high bar for Micron. What was 0:14:18.040 --> 0:14:20.880 your reaction and interpretation of those numbers. 0:14:22.520 --> 0:14:25.880 I thought they were incredible because I had, you know, 0:14:26.080 --> 0:14:29.760 consensus estimates kind of in my mind whenever I was 0:14:29.840 --> 0:14:33.000 looking at this stock. Now, the other thing that is 0:14:33.120 --> 0:14:36.520 missing from this equation is it's run up tremendously in 0:14:36.600 --> 0:14:39.360 the recent past, So I think there is a little 0:14:39.680 --> 0:14:43.600 but maybe some of the traders that aren't in that 0:14:43.720 --> 0:14:45.840 aren't going to stay around in the name are out 0:14:46.040 --> 0:14:48.800 because of the great gains they've gotten in the recent past. 0:14:48.960 --> 0:14:51.360 So there's a little bit of profit taking going on. 0:14:52.000 --> 0:14:55.440 But really all arrows are green and pointed up. So 0:14:55.600 --> 0:14:58.200 I think this stock is pointed up into the right. 0:14:58.920 --> 0:15:01.000 And some of the the areas that I think are 0:15:01.080 --> 0:15:04.560 most kind of strange is old tech is coming back 0:15:04.640 --> 0:15:07.880 for them as well. And I mean that's kind of 0:15:08.000 --> 0:15:10.600 great too for a lot of players if you are 0:15:10.720 --> 0:15:15.200 a tech oriented investor, so regular servers, you know, just 0:15:15.600 --> 0:15:20.120 the stuff that Microsoft and Oracle has been building for itself, 0:15:20.720 --> 0:15:24.200 for enterprise to rent out aws, that sort of stuff 0:15:24.720 --> 0:15:27.320 is on the upswing. It has been missing for a 0:15:27.400 --> 0:15:31.400 couple of years, right. And then here's a crazy idea, PCs. 0:15:31.560 --> 0:15:35.480 Because they're killing Windows ten, there is going to be 0:15:35.560 --> 0:15:39.600 increased demand for PCs and probably the higher endpcs as 0:15:39.680 --> 0:15:43.880 people start to play around with AI. So all arrows 0:15:44.080 --> 0:15:46.480 look upwards. And I don't really care what the stock's 0:15:46.520 --> 0:15:49.800 doing today. It generally does does this and it's not 0:15:49.920 --> 0:15:52.200 trading off quite as much as it had in the 0:15:52.280 --> 0:15:53.960 recent past on the day after. 0:15:53.840 --> 0:15:56.320 Earning well kim trading up in the recent past is 0:15:56.400 --> 0:15:58.920 up ninety four percent year today, second best performer on 0:15:58.960 --> 0:16:02.120 the Philadelphia Index this year. I'm going to ask you 0:16:02.280 --> 0:16:08.120 something generally about AI infrastructure. Are various technology companies writing 0:16:08.360 --> 0:16:13.120 checks that energy companies, the grid utilities can't cash in 0:16:13.240 --> 0:16:16.200 the future, like something has got to give here. 0:16:17.320 --> 0:16:21.120 Yes, absolutely, we have this crazy thing called the physical world, 0:16:21.400 --> 0:16:24.800 right that is running up against the virtual world. And 0:16:25.400 --> 0:16:28.400 I'm one of the people that really worry about this. 0:16:29.720 --> 0:16:32.840 I think AI is going to add productivity, but the 0:16:32.960 --> 0:16:36.080 open AI kind of model of we're going to have 0:16:36.200 --> 0:16:39.680 one big brain that you're going to tap into it 0:16:39.920 --> 0:16:43.360 worries me first of all, for just tally up the expenses. 0:16:43.880 --> 0:16:47.000 I'm someone that came out of tech because the companies, 0:16:47.080 --> 0:16:50.239 the AI companies I was working for, were not profitable 0:16:50.640 --> 0:16:54.280 because they didn't understand the problem. The cost of the 0:16:54.600 --> 0:16:58.320 problem had to be lower than the cost of this, 0:16:58.600 --> 0:17:01.680 or sorry, higher than the cost of the solution. And 0:17:01.800 --> 0:17:05.040 I don't really understand what lms are solving, Like you 0:17:05.160 --> 0:17:08.200 can't do a quick like back of the envelope calculation 0:17:08.359 --> 0:17:10.360 and go yeah, people are really going to benefit from 0:17:10.400 --> 0:17:14.720 these financially. So these are the things that I worry about, 0:17:14.800 --> 0:17:17.239 not just power but who's going to pay for all 0:17:17.280 --> 0:17:21.000 this infrastructure? Forty year notes for Oracle lovely that they 0:17:21.040 --> 0:17:23.600 think they're going to get paid back shorter timeline than that. 0:17:24.200 --> 0:17:27.439 But I don't understand the use case where businesses are 0:17:27.480 --> 0:17:30.840 going to pay like right, enormous sums of money. 0:17:30.720 --> 0:17:33.520 To ta Ki to cut to the chase. Do you 0:17:33.600 --> 0:17:37.120 think this is more you know, the idea of big 0:17:37.200 --> 0:17:38.399 bubble rather than big bets. 0:17:39.920 --> 0:17:40.159 I do. 0:17:40.800 --> 0:17:43.720 I do, And it's a very very big bubble because 0:17:43.760 --> 0:17:47.280 they've solved a very big problem natural language processing. But 0:17:47.400 --> 0:17:50.040 people are conflating that it's more than that, that this 0:17:50.200 --> 0:17:53.480 is a thinking machine, and it is not. I think 0:17:53.600 --> 0:17:56.679 that this will be used. I think llms are very useful, 0:17:57.080 --> 0:17:59.280 but they are not the answer, the end all be 0:17:59.440 --> 0:17:59.760 all of. 0:17:59.800 --> 0:18:04.320 A So therefore exposure at the moment you talk about 0:18:04.359 --> 0:18:06.680 open ai, and there's a lot of private money going 0:18:06.720 --> 0:18:09.800 into open ai, but open AI's demand props up the 0:18:09.840 --> 0:18:12.680 future revenue streams of video maybe even Micron as well. 0:18:13.119 --> 0:18:16.040 How much can you keep buying in to these companies 0:18:16.160 --> 0:18:18.879 like Micron that is posting gross margin in excess of 0:18:18.920 --> 0:18:19.600 fifty percent in. 0:18:19.640 --> 0:18:23.080 The here and now, Well, here's here's my model. 0:18:23.160 --> 0:18:27.040 It's the third option that we're not talking about is 0:18:27.119 --> 0:18:30.199 that companies, and I'm not recommending them, I'm using them 0:18:30.240 --> 0:18:34.960 as an example. Pallenteer solves smaller problems with AI that 0:18:35.160 --> 0:18:38.200 still need the same sort of chips, the same sort 0:18:38.240 --> 0:18:42.280 of infrastructure, but not just not quite as much. Right, 0:18:42.800 --> 0:18:47.800 So they're solving problems, smaller problems at a smaller cost, 0:18:48.359 --> 0:18:51.280 and that I think is going to be the formula, 0:18:51.400 --> 0:18:52.000 and there will. 0:18:51.840 --> 0:18:52.600 Be many of these. 0:18:53.080 --> 0:18:56.240 But unlike open AI that seems to think that, you know, 0:18:56.320 --> 0:18:59.959 we're going to have servers from New York to San Francis, 0:19:00.160 --> 0:19:03.879 US go, you know, throughout the country, like all of 0:19:03.960 --> 0:19:07.320 the country is going to have those. It's hyperbole, of course, 0:19:07.359 --> 0:19:10.240 I don't think that, but you know, the scale is 0:19:10.400 --> 0:19:13.879 not the same as with a smaller AI sort of model. 0:19:14.440 --> 0:19:17.520 Kim Forrest and both Capital partners always love the straight talking. 0:19:17.680 --> 0:19:26.800 Thanks for joining. Jimmy Kimmel returned to the airwaves last 0:19:26.880 --> 0:19:29.760 night after Disney lifted its suspension following remarks made by 0:19:29.840 --> 0:19:32.960 the host about the assassination of Charlie Kirk. Here is 0:19:32.960 --> 0:19:35.520 what Kimmel had to say about the controversy. 0:19:35.840 --> 0:19:37.879 And the truth is, I don't think what I have 0:19:38.040 --> 0:19:39.560 to say is going to make much of a difference. 0:19:39.600 --> 0:19:40.520 If you like me, like me. 0:19:40.560 --> 0:19:42.640 If you don't, you don't. I have no illusions about 0:19:42.720 --> 0:19:45.040 changing anyone's mind, but I do want to make something 0:19:45.080 --> 0:19:47.600 clear because it's important to me as a human and 0:19:47.720 --> 0:19:50.800 that is you understand that it was never my intention 0:19:51.240 --> 0:19:54.040 to make light of the murder of a young man. 0:19:55.240 --> 0:19:55.600 I don't. 0:20:00.359 --> 0:20:03.439 Bloomberg's Hannah Miller, who covers Hollywood and entertainment, joins us, 0:20:03.480 --> 0:20:07.200 now emotional at times but also fighting talks at others, 0:20:07.240 --> 0:20:10.720 particularly when targeted at Brendan Carr, the SEC, and the 0:20:10.800 --> 0:20:11.320 White House. 0:20:11.680 --> 0:20:13.600 Yeah, if you listen to the rest of that monologue, 0:20:13.720 --> 0:20:17.159 you know, Jimmy goes hard after a Brendan Carr and 0:20:17.440 --> 0:20:21.480 really calls him out for stifling free speech. And you know, 0:20:21.560 --> 0:20:24.640 he makes very clear he's not sorry about what exactly 0:20:24.720 --> 0:20:27.520 he said. He's sorry if he caused offense over the 0:20:27.600 --> 0:20:28.840 death of Charlie Kirk. 0:20:29.800 --> 0:20:30.119 Hannah. 0:20:30.359 --> 0:20:33.960 The President reacted in a post on truth Social And 0:20:34.240 --> 0:20:38.240 we also had the reporting from Bloomberg about recent days 0:20:38.400 --> 0:20:41.200 Kimmel meeting himself directly with Disney executives. 0:20:41.640 --> 0:20:43.960 What's the reporting we need to know about on that Yeah. 0:20:44.000 --> 0:20:47.040 So even before Jimmy Kimmel went on air, you had 0:20:47.119 --> 0:20:50.159 President Trump posting on truth social you know, making these 0:20:50.320 --> 0:20:53.640 vague legal threats, you know, saying that he had previously 0:20:53.800 --> 0:20:57.640 gotten millions of dollars from ABC, referencing a past lawsuit 0:20:57.720 --> 0:21:00.840 that they had settled, and that you know, he might 0:21:00.880 --> 0:21:03.480 go after them again. So you again, we're seeing this 0:21:03.840 --> 0:21:07.639