WEBVTT - Nvidia, OpenAI Make $100 Billion Data Center Deal 0:00:02.520 --> 0:00:10.600 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:13.440 --> 0:00:15.800 Welcome back to Bloomberg Tech. Let's have a quick check 0:00:15.800 --> 0:00:18.720 in on these markets, because we are continuing to see 0:00:18.800 --> 0:00:20.919 pressure on the tech stocks only by about two tens 0:00:20.960 --> 0:00:22.720 per percent, and as that one hundred coming off of 0:00:22.840 --> 0:00:25.880 what was a five tens percent increase the previous day. 0:00:26.160 --> 0:00:28.200 A lot of macro, a lot of digestion this week 0:00:28.240 --> 0:00:30.920 as we anticipate, of course, the inflation readings, and a 0:00:30.960 --> 0:00:33.920 lot of FED speak. We're just questioning though, perhaps some 0:00:33.960 --> 0:00:36.519 of the valuations in the AI space. Let's move on 0:00:36.600 --> 0:00:39.040 to see what's happening on this day with Micro and 0:00:39.080 --> 0:00:41.360 get earnings After the bell, We're up more than two percent. 0:00:41.400 --> 0:00:44.360 This is a stock that has increased forty percent in 0:00:44.400 --> 0:00:47.000 the month of September alone, But can it live up 0:00:47.040 --> 0:00:49.640 to the hopes for revenue increases to also be up 0:00:49.680 --> 0:00:52.839 some forty percent in their fiscal quarter on which they're reporting. 0:00:52.920 --> 0:00:56.560 Of course, key is the demand for high bandwidth memory 0:00:56.840 --> 0:00:59.400 and the use within AI accelerators. Talking about AI accelerators, 0:00:59.440 --> 0:01:00.880 check out in video. We're off by one point eight 0:01:00.880 --> 0:01:03.520 percent after yesterday's rally. Remember that one hundred billion dollar 0:01:03.560 --> 0:01:07.319 investment commitment into open AI. If open Ai in return 0:01:07.400 --> 0:01:11.480 commits to buying GPUs the future from Invidea, the merry 0:01:11.480 --> 0:01:13.920 go round of money continues. Let's break that all down 0:01:13.959 --> 0:01:17.319 with Bloomberg Semiconductors report Ian King just going back to 0:01:17.360 --> 0:01:21.280 that extraordinary one hundred billion dollar commitment getting equity from 0:01:21.280 --> 0:01:25.120 open Ai, but only as they bring on AI accelerators, 0:01:25.280 --> 0:01:30.160 GPUs from Invidea, and ten gigawatts eventually in the next 0:01:30.160 --> 0:01:32.920 few years. Ian, are we questioning the way in which 0:01:33.160 --> 0:01:34.800 money is floating Right now. 0:01:36.840 --> 0:01:40.080 That's a large number, and it seems excessive, even for 0:01:40.360 --> 0:01:42.840 in Video. But then you sort of take a step 0:01:42.880 --> 0:01:44.680 back and you realize that this is going to happen 0:01:44.720 --> 0:01:47.760 in an incremental basis, and it's going to be put 0:01:47.800 --> 0:01:51.440 to work only when the actual hardware is put in 0:01:51.480 --> 0:01:54.920 place and the actual capacity is put in place. So yes, 0:01:54.960 --> 0:01:57.960 it's a massive headline. Yes, even for Invidea, that seems huge, 0:01:57.960 --> 0:01:59.720 But if you take it over a number of years, 0:01:59.720 --> 0:02:02.560 then maybe it isn't that excessive. Maybe it's just what 0:02:02.720 --> 0:02:04.080 is needed for this market. 0:02:04.200 --> 0:02:06.760 And in Video continues to be a deeply strategic investor, 0:02:06.840 --> 0:02:09.040 often putting money to work in the like sort of 0:02:09.040 --> 0:02:13.360 core Weaver n scale or long term demand for their GPUs. 0:02:13.480 --> 0:02:15.680 In talking of demand, we're going to get a bit 0:02:15.720 --> 0:02:17.840 of a fundamental check on it, right with Micron's earnings 0:02:17.840 --> 0:02:18.320 after the bell. 0:02:19.400 --> 0:02:23.760 Yeah, the Micron story is everybody is focused. As you 0:02:23.880 --> 0:02:26.720 mentioned on HBM high bind with memory one of Ed 0:02:26.760 --> 0:02:31.679 lard Low's favorite topics. Everybody wants to see this company 0:02:31.919 --> 0:02:37.240 converting what they know is strong demand into very rapid growth. 0:02:37.280 --> 0:02:41.080 Everybody wants to see Micron really having a say in 0:02:41.120 --> 0:02:43.960 the AI world, and that's what people be focused on. 0:02:44.000 --> 0:02:47.440 Because the market overall for other types of memory, maybe 0:02:47.600 --> 0:02:50.480 isn't that strong. Maybe isn't recovering as quickly as as 0:02:50.520 --> 0:02:51.160 some had hoped. 0:02:51.720 --> 0:02:54.080 Eleven point one five billion dollars is a consensus up 0:02:54.120 --> 0:02:56.640 forty four percent in terms of revenue for fiscal fourth quarter. 0:02:56.919 --> 0:03:00.680 Bloomberg's inking as always a very busy man. Thank him. 0:03:00.800 --> 0:03:04.560 Look as we await earnings. Interestingly, anxiety around AI funding 0:03:04.600 --> 0:03:07.680 just continues to be intensifying. The industry. We understand will 0:03:07.720 --> 0:03:11.400 need two trillion dollars in combined annual revenue to fund 0:03:11.480 --> 0:03:14.280 the computing power that's needed by twenty thirty, but their 0:03:14.280 --> 0:03:17.920 revenue is likely to fall short by a tune of 0:03:17.960 --> 0:03:20.600 eight hundred billion dollars. It's all according to Bain's annual 0:03:20.639 --> 0:03:24.200 Global Technology Report. It was released today Tuesday, as bringing 0:03:24.200 --> 0:03:26.600 in j Jacobs for more US head of Equity ETS 0:03:26.600 --> 0:03:29.600 over at black Rock who you really get an analysis 0:03:29.680 --> 0:03:33.440 of the insatiable demand of investors into the AI data 0:03:33.480 --> 0:03:36.839 center story. But are they starting to question ultimately whether 0:03:36.880 --> 0:03:39.440 we can meet that insatiable demand where the funding is 0:03:39.480 --> 0:03:40.560 there in the longer term. 0:03:40.800 --> 0:03:43.440 No, I think it's quite the opposite. Investor enthusiasm is 0:03:43.440 --> 0:03:46.320 only growing. If you look at one of our ETFs, BAI, 0:03:46.360 --> 0:03:49.600 it's an actively managed AIETF. It's brought in over five 0:03:49.680 --> 0:03:52.480 billion dollars this year and is now the largest AIETF 0:03:52.520 --> 0:03:54.920 in the United States. And a lot of the exposure 0:03:54.960 --> 0:03:58.920 that is providing to investors is around that digital infrastructure layer, 0:03:58.920 --> 0:04:02.240 the hardware producers in the semiconductor space, the digital infrastructure owners, 0:04:02.760 --> 0:04:05.200 some of the data owners that are becoming really valuable 0:04:05.240 --> 0:04:08.200 in this explosion of AI models. And so there's a 0:04:08.240 --> 0:04:10.960 ton of investor enthusiasm, and I think there's a lot 0:04:11.000 --> 0:04:14.520 of expectations that revenues will match the expenditures, if not 0:04:14.600 --> 0:04:16.080 exceed them, in the next several years. 0:04:16.520 --> 0:04:21.200 But how much should we get comfortable with companies like 0:04:21.360 --> 0:04:25.640 in Nvidia basically plowing their own revenues of today into 0:04:25.680 --> 0:04:29.640 hopes of revenue of tomorrow, basically funding their end clients. 0:04:30.240 --> 0:04:32.640 I think it's beyond comfort. This is a necessity for 0:04:32.680 --> 0:04:35.360 some of the leading technology companies. They have a tremendous 0:04:35.440 --> 0:04:37.520 mode because they have low cost of capital, they have 0:04:37.560 --> 0:04:41.360 tremendous access to dollars, and they're able to really kind 0:04:41.360 --> 0:04:43.240 of leverage their own strengths, which is if you look 0:04:43.240 --> 0:04:47.640 at a semiconductor company owning GPUs, owning this manufacturing process 0:04:47.680 --> 0:04:50.800 is really valuable in the semiconductor space. That's the short 0:04:50.960 --> 0:04:53.719 that's the shortfall that's needed by large language model developers. 0:04:53.760 --> 0:04:56.760 So this investment across the industry makes a ton of sense. 0:04:56.880 --> 0:04:59.039 So going back to your I shares AI Innovation in 0:04:59.080 --> 0:05:03.120 Tech actively managed ETF, how much are clients begging you 0:05:03.160 --> 0:05:05.720 for more diversification when it comes to the AI trade. 0:05:05.760 --> 0:05:08.880 Because we have put so much stock into a few names. 0:05:09.080 --> 0:05:11.640 There's a lot of ask to go beyond the MAG seven. 0:05:11.680 --> 0:05:14.000 I think people understand the MAG seven story. They understand 0:05:14.040 --> 0:05:16.760 why these companies are so successful in AI space, and 0:05:16.760 --> 0:05:18.440 why they're leading it, but they do want to know 0:05:18.480 --> 0:05:20.720 what's beyond that. What are the other semiconductor companies, why 0:05:20.720 --> 0:05:22.200 are some of the data owners, what are some of 0:05:22.200 --> 0:05:25.560 the companies that aren't necessarily a consensus view as an 0:05:25.600 --> 0:05:28.719 AI company but are involved in the space. And so 0:05:28.800 --> 0:05:30.919 that's where and actively managed fund I think can provide 0:05:30.920 --> 0:05:33.320 a lot of value to investors is by yes, it's 0:05:33.320 --> 0:05:35.840 going to have Max seven exposure, but beyond two thirds 0:05:35.839 --> 0:05:37.359 of it is going to look beyond it and provide 0:05:37.440 --> 0:05:38.920 kind of the next names that are going to rise 0:05:38.920 --> 0:05:39.800 in this ecosystem. 0:05:39.920 --> 0:05:42.400 And all those names rising in the United States. We've 0:05:42.440 --> 0:05:47.080 also just seen President Trump, alongside Jensen Wang and many others, 0:05:47.080 --> 0:05:49.040 go to the United Kingdom to talk up an investment. 0:05:49.160 --> 0:05:51.400 There are we seeing more names being added to the ets. 0:05:51.400 --> 0:05:52.960 They're coming from Europe, coming from Asia. 0:05:53.360 --> 0:05:55.840 It's a global theme, but predominantly it is being led 0:05:55.880 --> 0:05:57.600 out of the United States today, and that's where we've 0:05:57.600 --> 0:05:59.920 seen some of these kind of new up and come 0:06:00.120 --> 0:06:02.320 AI risers largely coming from We sell have a really 0:06:02.440 --> 0:06:05.640 robust startup environment and venture capital environment around AI. So 0:06:06.080 --> 0:06:08.720 the US is very much at the center of this ecosystem, 0:06:08.720 --> 0:06:10.120 but it is a global theme. 0:06:09.960 --> 0:06:13.200 So the members of the ETF a larger US. Are 0:06:13.200 --> 0:06:16.520 the investors in that INTF getting ever any more global 0:06:16.600 --> 0:06:18.800 or is it predominantly US investors that want to stick 0:06:18.800 --> 0:06:19.240 with this theme. 0:06:19.800 --> 0:06:20.320 It's both. 0:06:20.400 --> 0:06:23.039 We certainly have seen a ton of global appetite, but 0:06:23.200 --> 0:06:24.960 some of the biggest investors today are coming from the 0:06:25.040 --> 0:06:27.960 United States. I think AI is not surprising anyone. Everyone 0:06:28.000 --> 0:06:30.240 knows globally this is the biggest area right now. They 0:06:30.320 --> 0:06:32.400 want to have access to the best investment tools to 0:06:32.400 --> 0:06:35.560 get exposure to it. Our ETF is really risen as 0:06:35.600 --> 0:06:38.280 the number one tool in the US for AI exposure. 0:06:38.560 --> 0:06:41.440 What about other parts, like the energy side of the equation? 0:06:42.040 --> 0:06:44.839 Are the areas that eventually will do well. We're always 0:06:44.839 --> 0:06:47.440 talking about healthcare predominantly being a user of generals of 0:06:47.480 --> 0:06:49.440 AI and therefore more productive. 0:06:49.760 --> 0:06:52.800 I would say the energy space is coming up more 0:06:52.839 --> 0:06:55.880 and more with clients as they look to the AI 0:06:55.920 --> 0:06:58.560 trade beyond technology kind of what's the next shoot to drop, 0:06:58.560 --> 0:07:00.520 what's the area of opportunity. We've seen a ton of 0:07:00.520 --> 0:07:05.200 interest around different energy sources to be able to power 0:07:05.240 --> 0:07:08.080 the AI trade, whether that's nuclear, whether it's fossil fuels, 0:07:08.080 --> 0:07:10.960 whether it's renewables. Really looking across the entire energy ecosystem, 0:07:11.760 --> 0:07:14.360 It's a way of looking at utilities from a more 0:07:14.440 --> 0:07:17.440 forward looking lens. If you take the utility sector, but 0:07:17.480 --> 0:07:19.480 say who's really going to grow here, who really has 0:07:19.520 --> 0:07:21.920 this great ten urre trajectory because of AI. It's a 0:07:21.960 --> 0:07:23.480 more thematic cut of that space. 0:07:24.000 --> 0:07:27.000 We've just been coming out of the United Nations General Assembly. 0:07:27.120 --> 0:07:29.560 It does feel as though fossil fuels very much have 0:07:29.640 --> 0:07:31.440 to be put back on the map by President Trump 0:07:31.480 --> 0:07:33.760 at least. Is that something you're seeing echoed by investors 0:07:33.760 --> 0:07:36.240 they want to be recommitting once again after years of 0:07:36.240 --> 0:07:40.080 perhaps rebalancing, moving towards renewables, looking at cleanoforms of energy. 0:07:40.240 --> 0:07:42.520 It's across the entire energy value chain. I think you 0:07:42.520 --> 0:07:44.080 have to look at There are going to be energy 0:07:44.080 --> 0:07:45.880 fuels that are going to be really necessary, there's going 0:07:45.920 --> 0:07:47.960 to be energy producers that are really necessary, and there's 0:07:48.040 --> 0:07:50.920 energy distribution that's going to be really necessary in this 0:07:51.080 --> 0:07:53.200 AI theme, and so I think people are looking very 0:07:53.200 --> 0:07:55.040 broadly at where it's going to come from. 0:07:55.120 --> 0:07:58.360 Every now and then the market goes through moments of anxiety, 0:07:58.440 --> 0:08:01.520 whether it's about fact that maybe we've got this revenue 0:08:01.560 --> 0:08:04.240 mismatch when it comes to compute funding, whether it's about 0:08:04.280 --> 0:08:07.080 actual productivity gains with the MIT report that came out 0:08:07.560 --> 0:08:11.600 last month, are you seeing any anxiety pull back in 0:08:11.680 --> 0:08:13.880 actual fun flows wanting to go into AI? 0:08:13.960 --> 0:08:15.000 More broadly, like. 0:08:14.920 --> 0:08:18.120 I said, our aifun flows have been accelerating recently, so 0:08:18.160 --> 0:08:20.160 we're not seeing a lot of anxiety. Look, this is 0:08:20.200 --> 0:08:21.880 a long term theme. This is a bet for the 0:08:21.920 --> 0:08:24.679 next five to ten and beyond years. I'm sure within 0:08:24.720 --> 0:08:27.080 that timeframe there will be bouts of anxiety. There will 0:08:27.120 --> 0:08:30.000 be questions around what the valuation should be. But if 0:08:30.000 --> 0:08:32.800 you take a long term view of artificial intelligence, we 0:08:32.880 --> 0:08:34.120 believe this is going to be one of the most 0:08:34.160 --> 0:08:36.640 powerful drivers of the markets for the next decade and beyond. 0:08:37.120 --> 0:08:40.240 Okay, and more broadly, when we're thinking about fundamentals, how 0:08:40.320 --> 0:08:43.679 much to earnings matter for your portfolio managers, but more 0:08:43.720 --> 0:08:45.079 broadly for the investor sentiment too. 0:08:45.480 --> 0:08:48.400 So they matter, but when you're looking over the long term, 0:08:48.400 --> 0:08:50.280 it's more about what does the earning say about the 0:08:50.320 --> 0:08:53.080 direction of travel rather than what's happening today. There's not 0:08:53.160 --> 0:08:57.160 a ton of concern about what is your revenue today. 0:08:57.240 --> 0:08:59.880 If you're a large language model developer. What we prefer 0:09:00.480 --> 0:09:04.160 is have you gotten more paying subscribers? Have you developed 0:09:04.160 --> 0:09:06.360 the best model? Are you starting to see more penetration 0:09:06.440 --> 0:09:08.160 in the corporate world where you're going to have more 0:09:09.040 --> 0:09:12.160 ability to spend on these technologies? The direction of travel 0:09:12.440 --> 0:09:13.920 is what we're really looking at. The earnings. 0:09:14.000 --> 0:09:16.079 J Jacobs is always great to have you here. Thankscoming 0:09:16.120 --> 0:09:19.240 in the studio. Black rocks. J Jacobs there. Meanwhile, I 0:09:19.320 --> 0:09:21.760 want to talk other areas of AI now, the application 0:09:21.880 --> 0:09:25.559 of it. Snowflake, alongside industry leaders and key partners, just 0:09:25.640 --> 0:09:28.840 unvailed a new initiative aiming to set a new industry 0:09:28.840 --> 0:09:32.640 standard for AI interoperability. But they call it the Open 0:09:32.840 --> 0:09:35.920 Semantic Interchange and it will be open sourced in an 0:09:35.920 --> 0:09:39.079 effort to remove what they call data islands and accelerate 0:09:39.120 --> 0:09:41.160 AI for all. Treat our Ramaswami and piece to say 0:09:41.240 --> 0:09:44.360 is with us. Snowflake CEO set the context of the 0:09:44.400 --> 0:09:48.160 problem here, shout out how difficult is it to get 0:09:48.200 --> 0:09:50.640 access to all data out there at the moment to 0:09:50.720 --> 0:09:52.960 make the generative AI become this reality. 0:09:54.480 --> 0:09:56.640 Well, great to be here at Caroline. 0:09:56.840 --> 0:09:59.719 AI has a lot of promise for making data very 0:09:59.760 --> 0:10:05.360 broad available to everyone in the enterprise, including business users using. 0:10:05.200 --> 0:10:07.839 Natural language, which they which all of us like doing. 0:10:08.320 --> 0:10:12.280 But the problem often is that the meaning behind the 0:10:12.400 --> 0:10:16.439 data is in multiple places. It can be in databases, 0:10:16.480 --> 0:10:19.360 it can be in business intelligent tools. This just makes 0:10:19.400 --> 0:10:22.600 developing AI solutions on top of this data very hard. 0:10:23.040 --> 0:10:26.760 And what we announced today with a consortium of industry 0:10:26.800 --> 0:10:31.160 folks is an open standard for exchanging this semantic information. 0:10:31.320 --> 0:10:34.040 And what that means is this is going to enhance 0:10:34.080 --> 0:10:40.800 interoperability between different folks between Salesforce, DBT Labs, Blackrock that 0:10:41.280 --> 0:10:44.760 we would like to see happen. It can help accelerate 0:10:44.880 --> 0:10:47.560 value that is going to be gotten from AI. It 0:10:47.720 --> 0:10:51.160 also just simplifies things for everybody that's involved, and that's 0:10:51.160 --> 0:10:54.880 why we're super excited about working with these giant industry 0:10:54.920 --> 0:10:57.800 players to announce this new interchange format. 0:10:58.080 --> 0:11:01.920 Yeah, universal translator is a nice way about talking about it. 0:11:01.920 --> 0:11:05.440 With Snowflake, the sell Source, DBT Labs, black Rot, Thought Spot, 0:11:06.120 --> 0:11:08.760 Wig Giki on this program, can you tell us about 0:11:08.840 --> 0:11:11.559 how difficult the technology exchange is going to be? Here? 0:11:11.559 --> 0:11:13.440 What actually you need to do beneath the surface. 0:11:14.360 --> 0:11:15.959 Yeah, it's a standard. 0:11:16.040 --> 0:11:19.800 What this means is that people that want to be 0:11:19.920 --> 0:11:22.920 part of the standard or want to confirm to the standard, 0:11:23.200 --> 0:11:26.520 just for going to make it easy to send and 0:11:26.880 --> 0:11:29.760 receive this semantic information. This is you know, this is 0:11:29.840 --> 0:11:33.160 business stuff, stuff like OS revenue defined, how is profit defined, 0:11:33.360 --> 0:11:34.600 how is EBITA defined? 0:11:34.720 --> 0:11:35.320 And so on. 0:11:35.640 --> 0:11:38.920 So we intentionally wanted it to be a lightlift for 0:11:39.120 --> 0:11:43.280 each of these players. But what happens collectively is that 0:11:43.440 --> 0:11:46.120 all of a sudden, the semantic information is free to 0:11:46.160 --> 0:11:50.520 move about. It just makes value creation, especially with AI, 0:11:51.040 --> 0:11:53.960 just a whole lot faster. And it's a big step 0:11:54.080 --> 0:11:56.240 forward for the industry, and we expect more and more 0:11:56.280 --> 0:11:59.040 folks in the data industry to be a part of 0:11:59.080 --> 0:11:59.960 this standard. 0:12:00.120 --> 0:12:02.640 Interesting, so that's for the data industry, going to the 0:12:03.000 --> 0:12:06.120 large language model industry in and of itself. Anthropics seem 0:12:06.160 --> 0:12:09.079 to have seen this issue with data and inter proability 0:12:09.120 --> 0:12:12.240 as well. They've been seeing silos. They introduce something called 0:12:12.280 --> 0:12:16.760 model context protocol that's again open standard up. How is 0:12:16.800 --> 0:12:17.280 that different? 0:12:18.760 --> 0:12:20.120 This is one layer below that. 0:12:20.280 --> 0:12:23.760 What a model context protocol does is it creates a 0:12:23.880 --> 0:12:28.080 standard way, for example, to talk to an AI agent. 0:12:28.440 --> 0:12:30.079 But on the other hand, even to. 0:12:30.080 --> 0:12:32.520 Create the AI agent, you need to make sense of 0:12:32.559 --> 0:12:35.120 the underlying data. It can be the case that you 0:12:35.200 --> 0:12:38.640 have data sitting in one place while the definition for 0:12:38.720 --> 0:12:41.000 what the data means is in a different place. 0:12:41.679 --> 0:12:42.520 This makes it. 0:12:42.480 --> 0:12:45.600 Easier to create agents, which can then take advantage of 0:12:45.640 --> 0:12:49.880 protocols like Model Control Protocol MCP that you mentioned to 0:12:49.960 --> 0:12:53.720 make agent interoperability work a whole lot better. So you 0:12:53.800 --> 0:12:57.120 need all of these layers for AI value to get created. 0:12:56.840 --> 0:12:59.120 And we need the agents to get better for the 0:12:59.160 --> 0:13:03.240 productivity to really result. Should I ask you, after months 0:13:03.240 --> 0:13:07.040 of worry perhaps about MIT reports saying that ultimately the 0:13:07.040 --> 0:13:10.040 productivity gains aren't being seen yet, what are you seeing 0:13:10.040 --> 0:13:13.000 with your clients using your own offerings and products. 0:13:13.800 --> 0:13:17.280 Yeah, we are seeing a lot of productivity gain in 0:13:17.400 --> 0:13:22.000 specific areas, and I can speak even personally to examples 0:13:22.080 --> 0:13:25.040 like my sales data is just a whole lot easier 0:13:25.040 --> 0:13:28.680 for me to get to with the snowflake intelligence. Blackrock, 0:13:28.760 --> 0:13:32.440 one of the customers in the OSI standard, also is 0:13:32.559 --> 0:13:35.199 using our AI products to create what's called the customer 0:13:35.240 --> 0:13:38.400 three sixty. So when you call Blackrock, the person on 0:13:38.440 --> 0:13:41.200 the other side has access to all of the relevant 0:13:41.320 --> 0:13:45.160 information about you. It's things like that that are creating value, 0:13:45.160 --> 0:13:48.240 and what's unique about Snowflake is we let our customers 0:13:48.280 --> 0:13:53.360 create AI products without a ton of investment on their part. 0:13:53.440 --> 0:13:56.520 We make it much easier to iterate and create these 0:13:56.600 --> 0:13:59.640 products and use them and see for themselves what's creating 0:13:59.720 --> 0:14:03.560 value before turning on this figot and having these products 0:14:03.600 --> 0:14:07.559 exposed more and more and in areas like coding agents, 0:14:07.600 --> 0:14:11.080 the productivity gains that we are seeing is truly remarkable, 0:14:11.400 --> 0:14:13.920 and I think that's an area where you will continue 0:14:13.920 --> 0:14:18.160 to see a ton of adoption across the board in enterprises. 0:14:18.920 --> 0:14:21.000 You know, finally or strangely. 0:14:20.520 --> 0:14:22.840 It turns out that coding is one of the most 0:14:22.840 --> 0:14:27.440 interesting and important applications of language models we've seen. 0:14:27.440 --> 0:14:29.760 The adoption of your products is shown up in your earnings. 0:14:29.760 --> 0:14:33.040 People have seen really the growth that you're talking about. 0:14:33.120 --> 0:14:35.520 For that, you need sales and marketing people to go 0:14:35.560 --> 0:14:37.720 out and sell your products. But that's where your Talent 0:14:37.880 --> 0:14:39.520 edition has been. But I go to the news of 0:14:39.520 --> 0:14:41.600 the day for example around at h one b visas 0:14:41.880 --> 0:14:45.040 how much is that becoming an issue for you with talent? 0:14:45.160 --> 0:14:47.080 Is that something that you're worried about access to the 0:14:47.160 --> 0:14:48.680 right people here in the United States? 0:14:49.560 --> 0:14:53.320 Yeah, it is. It is an issue roughly less than 0:14:53.360 --> 0:14:56.280 ten percent of our workforce is on H one B 0:14:56.440 --> 0:15:00.360 Visas you know, I'm an immigrant, and I think there 0:15:00.400 --> 0:15:02.560 are a ton of folks like me that come in, 0:15:02.680 --> 0:15:05.440 create massive amounts of value and then become and then 0:15:05.480 --> 0:15:08.560 become proud citizens. If we don't see it as an 0:15:08.560 --> 0:15:13.240 immediate problem, but we do think that tech workers from 0:15:13.280 --> 0:15:15.640 around the world have a lot to add to the 0:15:15.680 --> 0:15:20.240 tech industry. We're watching and work, you know, working as 0:15:20.280 --> 0:15:22.880 closely with the administration as we can to make sure 0:15:22.960 --> 0:15:25.480 that this is more of a win win for everybody involved. 0:15:25.680 --> 0:15:29.720 Trida Ramaswami, so thank you for that answer and talking 0:15:29.760 --> 0:15:33.400 us through your announcement today on AI interrooperability. We appreciated 0:15:33.480 --> 0:15:36.880 the CEO of Snowflake coming up, Michelle Geider of Produce 0:15:36.960 --> 0:15:39.800 Crowd Institute. A tech diplomacy we're going to break down 0:15:40.000 --> 0:15:51.560 instead of US China relations, this is blombag Tech. Welcome 0:15:51.560 --> 0:15:53.520 back to Bloomberg Tech. I quick check on these markets, 0:15:53.520 --> 0:15:55.640 which pretty sanguine at the moment, is we have a 0:15:55.640 --> 0:15:58.000 big week ahead in terms of inflation data and FED speaking. 0:15:58.040 --> 0:16:00.360 That's that one hundred just down about two tech of 0:16:00.480 --> 0:16:03.920 percent having been on a record high streak across most 0:16:03.920 --> 0:16:07.120 of the benchmarks. We pause for breath on equities more 0:16:07.160 --> 0:16:09.560 broadly in video in the red, which cause tugs down 0:16:09.880 --> 0:16:12.040 in large part the rest of the index. But we 0:16:12.080 --> 0:16:14.480 want to set a global context here because the movement's 0:16:14.520 --> 0:16:17.160 being made geopolitically and what's in the eye of the 0:16:17.200 --> 0:16:20.320 investor right now. We've just had the United Nations General 0:16:20.360 --> 0:16:25.320 Assembly speech by the United States President, really big claims 0:16:25.400 --> 0:16:27.920 and blasting the United Nations more broadly, but all of 0:16:27.920 --> 0:16:30.960 this in a context of geopolitical relationships perhaps the US 0:16:31.040 --> 0:16:33.640 and China, for example, we have been understanding they're nearing 0:16:33.680 --> 0:16:36.160 an agreement to hive off the US operations and social 0:16:36.200 --> 0:16:40.320 media platform TikTok to a consortium that inclosed software giant Oracle. 0:16:40.720 --> 0:16:42.720 We want to just give you the global context right now. 0:16:42.760 --> 0:16:45.800 With Bloomberg Senior Tech editor Mike Sheppard standing by, you've 0:16:45.840 --> 0:16:49.000 just been sat tuned in to President Trump where he 0:16:49.040 --> 0:16:53.160 talked about whole wealth of issues that he sees right now. 0:16:53.400 --> 0:16:56.240 Any of them catch your attention, and. 0:16:56.200 --> 0:16:59.680 Certainly for our context, Cara on this program, what really 0:16:59.760 --> 0:17:01.680 caught my year was what he was talking about in 0:17:01.800 --> 0:17:04.879 terms of investment and what he's been trying to attract 0:17:04.960 --> 0:17:08.400 to the US when you think about all the announcements 0:17:08.400 --> 0:17:11.640 that we've seen related to artificial intelligence and more recently, 0:17:11.680 --> 0:17:13.760 as you just alluded to, this push to try to 0:17:13.800 --> 0:17:16.680 reach a deal with China on TikTok, the President was 0:17:16.720 --> 0:17:20.760 talking about seventeen trillion dollars in announcement investment pledges so 0:17:20.840 --> 0:17:24.520 far this year. That number bears some skepticism, but there 0:17:24.600 --> 0:17:26.119 is some kernel of truth in it. 0:17:26.200 --> 0:17:28.359 Of course, when you towed up the. 0:17:28.240 --> 0:17:31.200 Pledges that we have seen from Nvidia, from open Ai, 0:17:31.359 --> 0:17:34.520 from soft Bank and others to build plants here in 0:17:34.560 --> 0:17:37.240 the US and TSMC, we can't leave them out either, 0:17:37.400 --> 0:17:40.520 and all that fits into the picture that the President 0:17:40.560 --> 0:17:43.200 is trying to portray of the US on the move. 0:17:43.320 --> 0:17:45.920 During this address to the UN General Assembly, he talked 0:17:45.920 --> 0:17:49.199 about this golden age of America, and he defended his 0:17:49.359 --> 0:17:52.560 tariff program as well, and some of the trade agreements 0:17:52.560 --> 0:17:56.400 that he's reached with the UK, the EU and other nations. 0:17:56.400 --> 0:17:58.840 And he even talked about trying to meet with Brazil's 0:17:58.920 --> 0:18:01.280 leader next work to try to sort out some of 0:18:01.320 --> 0:18:05.760 the trade and other differences with that trading partner as well. 0:18:05.800 --> 0:18:08.560 So there's a lot happening here on the international trade 0:18:08.600 --> 0:18:09.840 and deal making front. 0:18:09.720 --> 0:18:11.800 And it had a market reaction sending on the Brazilian 0:18:11.840 --> 0:18:15.439 reality gaining in the session, Mike, What's interesting is he 0:18:15.480 --> 0:18:18.119 did go on to chastise China when it comes to 0:18:18.680 --> 0:18:22.600 the Russian relationship, that they hold anything that could put 0:18:22.840 --> 0:18:26.000 at risk any sort of ultimate deal around TikTok. 0:18:27.280 --> 0:18:30.280 Well, it's a great question, because for the President, the 0:18:30.320 --> 0:18:33.600 TikTok deal is of paramount importance. He's talked about it 0:18:34.200 --> 0:18:36.120 for more than a year. It was something that came 0:18:36.240 --> 0:18:39.280 up on the campaign trail. It's something that he credits 0:18:39.480 --> 0:18:42.960 with helping him in his comeback victory to the White House, 0:18:43.000 --> 0:18:47.000 and yet it has been a very difficult victory for 0:18:47.080 --> 0:18:50.520 him to bring home, in part because China is reluctant 0:18:50.560 --> 0:18:55.119 to sell this precious asset from Beijing based Byte Dance Limited. 0:18:55.680 --> 0:18:59.520 China is reluctant also to see Byte Dance let go 0:18:59.640 --> 0:19:02.639 of an any way, shape or form the algorithm that 0:19:02.880 --> 0:19:06.280 powers TikTok, and that has really been the secret sauce 0:19:06.320 --> 0:19:09.399 to the app and its appeal to young users. Now, 0:19:09.560 --> 0:19:12.159 the question in this deal that is taking shape is 0:19:12.400 --> 0:19:14.639 perhaps there could be a way for a copy to 0:19:14.680 --> 0:19:17.480 be handed to the new US venture that would be 0:19:17.600 --> 0:19:21.000 led by American investors and have six of seven board 0:19:21.040 --> 0:19:25.520 seats occupy by Americans. Now, would China go along with that? 0:19:26.040 --> 0:19:28.399 Oracle would have a role with the new venture in 0:19:28.560 --> 0:19:32.280 retraining this new model, But will China go along? We 0:19:32.359 --> 0:19:36.320 have not heard enough from China yet about whether they 0:19:36.359 --> 0:19:39.000 will approve this deal in full. On Friday, we heard 0:19:39.000 --> 0:19:42.200 Donald Trump talk about how Shijinping has counterpart hours earlier 0:19:42.240 --> 0:19:45.680 in a conversation they had had on Friday, really blessing 0:19:45.720 --> 0:19:48.800 the deal. But China's Foreign Ministry was far more circumspect 0:19:49.160 --> 0:19:51.840 in its statement. So we'll have to see where this 0:19:51.960 --> 0:19:55.119 goes and whether some of that leverage on Russian oil 0:19:55.160 --> 0:19:57.840 purchases may factor into the conversation. 0:19:57.960 --> 0:20:02.120 Here, ybugs, Mike sheffind Up, thank you very much. Indeed, 0:20:02.600 --> 0:20:05.040 now let's discuss this more broadly with Michelle Geider. She 0:20:05.160 --> 0:20:07.240 is the CEO of the Crack Institute for Tech Diplomacy 0:20:07.240 --> 0:20:09.880 at Purdue used to serve as Assistant Secretary of State 0:20:09.920 --> 0:20:12.600 for Global Public Affairs under the first Trump administration. Wonderful 0:20:12.640 --> 0:20:15.919 to have you here in New York. Michelle. Taking a 0:20:15.960 --> 0:20:20.720