1 00:00:02,520 --> 00:00:13,480 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 2 00:00:13,480 --> 00:00:17,320 Speaker 1: from coast to coast with Carolline Hide in New York 3 00:00:17,600 --> 00:00:20,360 Speaker 1: and ever though in San Francisco. 4 00:00:22,440 --> 00:00:25,200 Speaker 2: This is Bloomberg Tech coming up. Intel says it will 5 00:00:25,280 --> 00:00:29,280 Speaker 2: join Elon Musk's terra Fab project with SpaceX Xai and 6 00:00:29,360 --> 00:00:32,520 Speaker 2: Tesla to help refactor silicon fab technology. 7 00:00:32,560 --> 00:00:35,760 Speaker 3: Plus Broadcom gains on expanding agreements with Google. Ananthropic is 8 00:00:35,760 --> 00:00:37,880 Speaker 3: alternative technology to video. 9 00:00:37,640 --> 00:00:40,800 Speaker 2: Builds, and Bill Ackman looks to make a deal for 10 00:00:40,840 --> 00:00:43,800 Speaker 2: the world's largest music company, Universal Music Group. 11 00:00:44,040 --> 00:00:45,479 Speaker 4: Will have the details, but. 12 00:00:45,520 --> 00:00:48,840 Speaker 3: We set the context where the markets are still fixated 13 00:00:49,159 --> 00:00:52,320 Speaker 3: on conflict in the Middle East. We're still all awaiting 14 00:00:52,760 --> 00:00:55,240 Speaker 3: what happens at eight pm New York time today, a 15 00:00:55,320 --> 00:01:00,120 Speaker 3: self imposed deadline by President Trump, and anxiety remains as 16 00:01:00,120 --> 00:01:02,880 Speaker 3: we wonder what will happen in that timeframe. We're currently 17 00:01:02,880 --> 00:01:04,640 Speaker 3: seeing the market off by one and a half percent 18 00:01:04,720 --> 00:01:07,039 Speaker 3: at the moment when down on the nas that one 19 00:01:07,080 --> 00:01:10,120 Speaker 3: hundred Big Tech really feeling some of the risk of environment, 20 00:01:10,240 --> 00:01:12,160 Speaker 3: and we're seeing Brent Crude, of course, climb from one 21 00:01:12,200 --> 00:01:14,440 Speaker 3: point thirty percent as it seems as though the conflict 22 00:01:14,680 --> 00:01:16,440 Speaker 3: continues to intensify ed. 23 00:01:17,800 --> 00:01:20,319 Speaker 2: The big breaking news of the morning, Intel says in 24 00:01:20,360 --> 00:01:23,959 Speaker 2: a post on x that it is joining the terrifab project, 25 00:01:24,000 --> 00:01:28,000 Speaker 2: that is the initiative by SpaceX, XAI and Tesla to 26 00:01:28,080 --> 00:01:32,080 Speaker 2: build out massive compute or chip capacity. The SLOCK was 27 00:01:32,160 --> 00:01:34,360 Speaker 2: up almost five percent one point earlier in the session, 28 00:01:34,480 --> 00:01:37,640 Speaker 2: is now paired those games to two percent. Tesla is 29 00:01:37,680 --> 00:01:40,280 Speaker 2: down four percent. There could be other factors behind that. 30 00:01:40,680 --> 00:01:42,800 Speaker 2: What is going on? What does it mean? Let's get 31 00:01:42,800 --> 00:01:46,200 Speaker 2: the details of Bloomberg's chip reporter Ian King and Bloomberg 32 00:01:46,240 --> 00:01:49,000 Speaker 2: Intelligence senior analyst Mandeep singing in, and I'll. 33 00:01:48,880 --> 00:01:49,440 Speaker 4: Start with you. 34 00:01:50,120 --> 00:01:52,480 Speaker 2: We actually don't know a lot, but tell us what 35 00:01:52,520 --> 00:01:55,240 Speaker 2: we do know from two posts, one by lit boutan 36 00:01:55,360 --> 00:01:57,880 Speaker 2: Intel CEO, and the other by the company itself. 37 00:01:57,960 --> 00:01:58,160 Speaker 5: Yeah. 38 00:01:58,160 --> 00:02:00,400 Speaker 6: I mean what the company is saying is we've got 39 00:02:00,400 --> 00:02:03,120 Speaker 6: lots of technology that they need, whether it's packaging, whether 40 00:02:03,160 --> 00:02:06,160 Speaker 6: it's ship design, whether it's manufacturing technology, and we're just 41 00:02:06,680 --> 00:02:09,960 Speaker 6: very happy to be part of this project. How exactly 42 00:02:10,000 --> 00:02:12,400 Speaker 6: they're going to be part of the project, though, isn't clear. 43 00:02:13,600 --> 00:02:15,400 Speaker 7: Can you give any illumination, Mandi? 44 00:02:15,600 --> 00:02:18,399 Speaker 3: Therefore, we turn to you as to what the upside 45 00:02:18,480 --> 00:02:22,520 Speaker 3: could be what are your most optimistic what are your 46 00:02:22,520 --> 00:02:25,920 Speaker 3: most realistic perspectives of how much this builds Intel's business. 47 00:02:26,720 --> 00:02:28,639 Speaker 8: I mean I look at it this way. You know, 48 00:02:28,760 --> 00:02:31,720 Speaker 8: Elon Musk wants to build data centers in space, and 49 00:02:31,960 --> 00:02:35,560 Speaker 8: every other hyperscaler is spending over one hundred billion dollars 50 00:02:35,639 --> 00:02:40,280 Speaker 8: in CAPEX this year to set up terrestrial data centers. 51 00:02:40,360 --> 00:02:43,560 Speaker 8: So in this case, Elon Musk clearly wants to set 52 00:02:43,639 --> 00:02:47,880 Speaker 8: up fabs instead of focusing on data centers, you know, investments, 53 00:02:47,880 --> 00:02:52,040 Speaker 8: and his thing is I can build a vertically integrated 54 00:02:52,080 --> 00:02:56,600 Speaker 8: fab that can make chips for the space data centers 55 00:02:56,600 --> 00:02:59,679 Speaker 8: that he's focused on, and for Intel, you know, it's 56 00:02:59,760 --> 00:03:03,640 Speaker 8: just another avenue to capture in terms of this build 57 00:03:03,680 --> 00:03:06,880 Speaker 8: out of the AI infrastructure that we are seeing around us. 58 00:03:06,919 --> 00:03:10,560 Speaker 8: Clearly TSMC has a big lead, but I think if 59 00:03:10,560 --> 00:03:14,359 Speaker 8: he were, like Intel, where to focus on space data centers, 60 00:03:14,840 --> 00:03:17,840 Speaker 8: they could find that opportunity for growth. 61 00:03:18,600 --> 00:03:21,240 Speaker 2: And that's a picture of Elon Musk. I think down 62 00:03:21,240 --> 00:03:25,320 Speaker 2: in Santa Clara shaking hands with lit Boutan seems easy, 63 00:03:25,480 --> 00:03:28,360 Speaker 2: doesn't it. But as we putting copy in our reporting, 64 00:03:28,840 --> 00:03:31,880 Speaker 2: the economics of chip making are brutal. You have to 65 00:03:31,919 --> 00:03:34,560 Speaker 2: get it right, which you help the Bloomberg Tech audience 66 00:03:34,639 --> 00:03:38,800 Speaker 2: understand the reality of what Tesla, SpaceX and Xai are 67 00:03:38,800 --> 00:03:39,720 Speaker 2: proposing to do. 68 00:03:40,520 --> 00:03:43,160 Speaker 6: Yeah, I mean, the massive build out that they're proposing 69 00:03:43,640 --> 00:03:46,400 Speaker 6: would not be supported by the kind of volumes that 70 00:03:46,440 --> 00:03:49,400 Speaker 6: they are able to consume right now. It probably doesn't 71 00:03:49,440 --> 00:03:53,080 Speaker 6: make economic sense for them. But if they're doing that 72 00:03:53,240 --> 00:03:56,080 Speaker 6: in a partnership, if they're doing that to maybe sell 73 00:03:56,120 --> 00:03:58,840 Speaker 6: silicon to other people, then maybe the numbers do start 74 00:03:58,880 --> 00:04:01,200 Speaker 6: to add up. You've got to flip that the other 75 00:04:01,200 --> 00:04:03,400 Speaker 6: way and say, well, hold on a minute, what's Intel 76 00:04:03,480 --> 00:04:06,240 Speaker 6: up to here? Intel really has its own plants that 77 00:04:06,280 --> 00:04:08,160 Speaker 6: it needs to fill. So if there's some kind of 78 00:04:08,200 --> 00:04:12,640 Speaker 6: a bridging arrangement where Tesla becomes a customer of Intel, 79 00:04:12,680 --> 00:04:16,320 Speaker 6: helps give Intel orders, and then that branches out into 80 00:04:16,360 --> 00:04:18,560 Speaker 6: some kind of partnership in the future where they build 81 00:04:18,600 --> 00:04:22,280 Speaker 6: plants together, then maybe that's a more logical path and 82 00:04:22,880 --> 00:04:24,680 Speaker 6: probably safer for both of them. 83 00:04:24,880 --> 00:04:29,520 Speaker 2: Mandy, the world is changing when it comes to those 84 00:04:29,560 --> 00:04:32,120 Speaker 2: that are at the forefront of compute and those that 85 00:04:32,160 --> 00:04:36,479 Speaker 2: are consuming it. You know, Tesla designs its own inference chips, 86 00:04:36,520 --> 00:04:39,719 Speaker 2: for example, current generation AI five, going into AI four, 87 00:04:39,760 --> 00:04:42,600 Speaker 2: AI five and then AI six. It's never made its 88 00:04:42,640 --> 00:04:47,360 Speaker 2: own chips. The BI team across all the analysts in 89 00:04:47,440 --> 00:04:50,200 Speaker 2: the different desks. Are you having to kind of remodel 90 00:04:50,640 --> 00:04:53,320 Speaker 2: where everyone sits in that world going forward? 91 00:04:53,800 --> 00:04:57,000 Speaker 8: Yeah, I mean the ecosystems clearly are determined by which 92 00:04:57,120 --> 00:04:59,520 Speaker 8: large angrid model is doing well. I mean, just today 93 00:04:59,560 --> 00:05:03,040 Speaker 8: we heard of Entropic reaching thirty billion dollar run rate 94 00:05:03,440 --> 00:05:07,280 Speaker 8: that I think is favorable to that Entropic ecosystem that 95 00:05:07,360 --> 00:05:10,640 Speaker 8: includes Broadcom and TPUs. And look when it comes to fabs, 96 00:05:11,040 --> 00:05:14,359 Speaker 8: so far we know everyone is going to TSMC, So 97 00:05:14,560 --> 00:05:17,240 Speaker 8: it's quite interesting that, you know, Elon Musk wants to 98 00:05:17,320 --> 00:05:20,440 Speaker 8: develop an alternative to that FAB. But as we know, 99 00:05:20,600 --> 00:05:23,560 Speaker 8: you know, Intel has struggled for so many years in 100 00:05:23,680 --> 00:05:28,320 Speaker 8: terms of reaching that leading node capacity. So from that perspective, 101 00:05:28,400 --> 00:05:31,279 Speaker 8: it is a pretty big undertaking and it requires a 102 00:05:31,320 --> 00:05:33,960 Speaker 8: lot of capex. I mean TSMC's capex is north of 103 00:05:34,000 --> 00:05:36,960 Speaker 8: fifty billion dollars, So what would it take to build 104 00:05:37,000 --> 00:05:39,400 Speaker 8: a FAB, you know, in terms of capex investments? 105 00:05:40,000 --> 00:05:42,080 Speaker 2: Can I just say one thing as well, Karen Mandy, IP, 106 00:05:42,120 --> 00:05:44,920 Speaker 2: I'm sorry, I just want to state it that terror 107 00:05:44,920 --> 00:05:49,560 Speaker 2: fab is not included in Tesla's twenty six CAPEX guide 108 00:05:49,360 --> 00:05:52,640 Speaker 2: of twenty billion dollars, far beyond what it's ever done, 109 00:05:52,800 --> 00:05:54,640 Speaker 2: But just putting it out there, and I'll keep saying 110 00:05:54,680 --> 00:05:56,880 Speaker 2: it until the terrorfab's built carriage. 111 00:05:58,200 --> 00:06:00,800 Speaker 3: It's been a fascinating bit of perspective from all three 112 00:06:00,839 --> 00:06:03,240 Speaker 3: of you. Actually, because of Ed, you're the byline on 113 00:06:03,240 --> 00:06:04,040 Speaker 3: this story thus far. 114 00:06:04,200 --> 00:06:05,600 Speaker 7: In King always with all the. 115 00:06:05,520 --> 00:06:07,600 Speaker 3: Insight when it comes to Intel, Mande, thank you for 116 00:06:07,640 --> 00:06:10,120 Speaker 3: the intelligence of BlueBag intelligence. So let's get you more 117 00:06:10,120 --> 00:06:12,560 Speaker 3: insight now, because Giluri has already been putting his reaction 118 00:06:12,680 --> 00:06:15,240 Speaker 3: to paper, head of tech researcher at DA Davidson. Look, 119 00:06:15,240 --> 00:06:18,200 Speaker 3: you said the investment bodes well for Intel's turnaround story. 120 00:06:18,760 --> 00:06:20,919 Speaker 3: Does this really strengthen the balance sheet? 121 00:06:20,960 --> 00:06:24,080 Speaker 7: How does this look to be boding? Well? 122 00:06:24,440 --> 00:06:28,279 Speaker 9: Yeah, so Intel's been busy in its turnaround. It made 123 00:06:28,279 --> 00:06:32,240 Speaker 9: a really big step in repurchasing forty nine percent of 124 00:06:32,320 --> 00:06:36,919 Speaker 9: its Ireland fab back from Apollo, and then you have 125 00:06:37,000 --> 00:06:42,760 Speaker 9: this morning's announcement with Tesla. Intel has all the most 126 00:06:42,800 --> 00:06:46,320 Speaker 9: important pieces right now. It's a US based company with 127 00:06:46,560 --> 00:06:52,160 Speaker 9: US based production that makes CPUs and has advanced packaging. 128 00:06:52,240 --> 00:06:55,080 Speaker 9: These are all things that we need for the future 129 00:06:55,080 --> 00:06:57,480 Speaker 9: of AI. These are three things that if I said 130 00:06:57,520 --> 00:07:00,280 Speaker 9: three years ago, they weren't matter that much, and right 131 00:07:00,320 --> 00:07:05,159 Speaker 9: now each one of those things is absolutely critical. It's 132 00:07:05,240 --> 00:07:08,200 Speaker 9: not trivial though, that Intel will be successful. I think 133 00:07:08,240 --> 00:07:11,200 Speaker 9: that came up in your conversation with Mandeep. There's a 134 00:07:11,320 --> 00:07:16,400 Speaker 9: lot of execution ahead. They need to successfully build planes 135 00:07:16,440 --> 00:07:20,200 Speaker 9: in the US, build fabrication for their next waves of technology, 136 00:07:20,680 --> 00:07:24,360 Speaker 9: including this big joint venture with Tesla, and then get 137 00:07:24,400 --> 00:07:27,240 Speaker 9: the yields that make them profitable. As you point it out, 138 00:07:27,240 --> 00:07:30,240 Speaker 9: TSMC has been doing this for years with great levels 139 00:07:30,280 --> 00:07:33,559 Speaker 9: of success, and Intel still loses money on the fab 140 00:07:33,680 --> 00:07:37,480 Speaker 9: side and doesn't have enough core customers to have that 141 00:07:38,200 --> 00:07:42,520 Speaker 9: volume quite yet. It's lining up their customers, but it's 142 00:07:42,560 --> 00:07:45,840 Speaker 9: not quite there yet, and so there's a lot of 143 00:07:45,920 --> 00:07:49,440 Speaker 9: execution ahead. But in terms of executing on the turnaround, 144 00:07:49,760 --> 00:07:54,600 Speaker 9: Libutan's doing a lot to make Intel an important player 145 00:07:54,640 --> 00:07:55,559 Speaker 9: in the future of AI. 146 00:07:55,800 --> 00:07:56,080 Speaker 7: Guild. 147 00:07:56,120 --> 00:07:58,600 Speaker 3: You like the idea because Lipbutan came on as some 148 00:07:59,400 --> 00:08:02,960 Speaker 3: well cynicism, or indeed was beaten up a little bit 149 00:08:03,000 --> 00:08:05,440 Speaker 3: even by on the administration of the United States because 150 00:08:05,480 --> 00:08:06,960 Speaker 3: they didn't really like the way in which he was 151 00:08:07,000 --> 00:08:10,000 Speaker 3: proposing it as build it and then they will come. 152 00:08:10,200 --> 00:08:12,200 Speaker 3: He wanted to go more like, I need the customers 153 00:08:12,240 --> 00:08:14,160 Speaker 3: first and then I'm going to go out and build it. 154 00:08:14,200 --> 00:08:17,000 Speaker 3: Is this enough of a customer so they will therefore 155 00:08:17,120 --> 00:08:19,240 Speaker 3: start to put back onto the R and D start 156 00:08:19,320 --> 00:08:23,360 Speaker 3: to refuel the actual manufacturing and build out that perhaps 157 00:08:23,400 --> 00:08:24,000 Speaker 3: it paus on. 158 00:08:25,840 --> 00:08:28,680 Speaker 9: If we believe Elon Musk and the numbers he's been 159 00:08:28,720 --> 00:08:31,240 Speaker 9: talking about, that's as much scale as you're going to 160 00:08:31,280 --> 00:08:37,120 Speaker 9: get the numbers that he talks about four XAI for SpaceX. 161 00:08:37,600 --> 00:08:39,400 Speaker 9: I mean we're talking about building in the US now. 162 00:08:39,440 --> 00:08:43,720 Speaker 9: Elon's talked about having fabrication plants on the Moon. So 163 00:08:43,920 --> 00:08:47,200 Speaker 9: if we are to fulfill all of those and Elon 164 00:08:47,280 --> 00:08:49,400 Speaker 9: gets what he wants, that's plenty of volume. Let's not 165 00:08:49,480 --> 00:08:52,840 Speaker 9: forget in video. As an investor in Intel, that's volume. 166 00:08:52,880 --> 00:08:55,840 Speaker 9: There's still a relationship with Apple, that's a lot of volume. 167 00:08:56,320 --> 00:09:01,440 Speaker 9: So Intel has positioned itself to have the volumes necessary 168 00:09:01,520 --> 00:09:04,439 Speaker 9: to bring the customers to the table, to have the 169 00:09:04,520 --> 00:09:09,240 Speaker 9: volumes necessary to be profitable on the fabrication side. It 170 00:09:09,320 --> 00:09:11,959 Speaker 9: really is a matter of execution over the next several 171 00:09:12,080 --> 00:09:16,040 Speaker 9: years to get those customers what they want with the 172 00:09:16,120 --> 00:09:20,120 Speaker 9: high expectations those customers have. Let's not forget those customers 173 00:09:20,160 --> 00:09:24,120 Speaker 9: are being served very well by TSMC. This is volume 174 00:09:24,200 --> 00:09:28,360 Speaker 9: beyond TSMC, but their expectations are still anchored to what 175 00:09:28,480 --> 00:09:30,960 Speaker 9: they get from TSMC, which is very high yield. 176 00:09:31,080 --> 00:09:34,439 Speaker 3: Can we go nitty gritty because Tesla has relationships for 177 00:09:34,520 --> 00:09:37,120 Speaker 3: its own shipbuilding at the moment, and they lie with 178 00:09:37,160 --> 00:09:39,280 Speaker 3: Samsung and they lie with TSMC. 179 00:09:39,440 --> 00:09:42,040 Speaker 7: So how divert what chips in. 180 00:09:41,960 --> 00:09:44,960 Speaker 3: Particular expecting to be made by Intel or indeed, where 181 00:09:44,960 --> 00:09:46,880 Speaker 3: do we see the supply reshift? 182 00:09:47,520 --> 00:09:49,800 Speaker 9: Well, I'm not sure we got that detail today, but 183 00:09:49,880 --> 00:09:52,440 Speaker 9: broadly speaking, these days, if you look at the broad 184 00:09:52,600 --> 00:09:57,439 Speaker 9: patterns this conversation, the conversation yesterday about Broadcom, Google and 185 00:09:57,559 --> 00:10:02,000 Speaker 9: Anthropic Meta shining up AMD, Open Ai signing up with 186 00:10:02,120 --> 00:10:05,520 Speaker 9: AMD and with Broadcom and continuing to use in video. 187 00:10:06,000 --> 00:10:09,560 Speaker 9: The approach of all the big players, so the hyper 188 00:10:09,559 --> 00:10:13,640 Speaker 9: scalers and the big frontier labs which includes Elon Inc. 189 00:10:14,679 --> 00:10:19,880 Speaker 9: Is to diversify around all of these large chip makers 190 00:10:20,559 --> 00:10:24,160 Speaker 9: in order to be able to meet this very significant 191 00:10:24,320 --> 00:10:28,120 Speaker 9: demand that they all have for chips. So they all 192 00:10:28,200 --> 00:10:32,000 Speaker 9: are still most of these companies are still mostly reliant 193 00:10:32,040 --> 00:10:36,120 Speaker 9: on Invidia, but they want to rely more on Broadcom, 194 00:10:36,200 --> 00:10:39,720 Speaker 9: AMD and Intel, so they're not beholden in video, so 195 00:10:39,760 --> 00:10:42,959 Speaker 9: they have more capacity. What that looks like in terms 196 00:10:42,960 --> 00:10:45,960 Speaker 9: of mix, I'm not sure they know. I think they're 197 00:10:46,000 --> 00:10:49,280 Speaker 9: going to move forward and expand as aggressively as they can, 198 00:10:49,840 --> 00:10:53,480 Speaker 9: and the chip companies that help them the most, that 199 00:10:53,640 --> 00:10:56,600 Speaker 9: execute the best, will get the volumes. That's why execution 200 00:10:56,720 --> 00:10:57,760 Speaker 9: is so important right now. 201 00:10:58,000 --> 00:11:02,920 Speaker 3: Gloria Da Davison and Analysis, thank you very much. Indeed, Meanwhile, 202 00:11:03,000 --> 00:11:05,080 Speaker 3: let's look at shares that aren't gaining at the moment. 203 00:11:05,120 --> 00:11:09,640 Speaker 3: Apple significant move off by almost five percent at the moment, 204 00:11:09,720 --> 00:11:12,960 Speaker 3: and as Ed would put it, that's a two standard deviation. 205 00:11:12,920 --> 00:11:14,960 Speaker 7: Move at the moment on this particular stock. 206 00:11:15,200 --> 00:11:18,240 Speaker 3: Why reports adad nickeo so over in Japan that there 207 00:11:18,280 --> 00:11:22,040 Speaker 3: are issues with the foldable iPhone engineering snags. 208 00:11:22,120 --> 00:11:23,680 Speaker 7: Maybe we have to push back. 209 00:11:23,559 --> 00:11:26,000 Speaker 3: Test phases for the foldable iPhone, Maybe it pushes back 210 00:11:26,000 --> 00:11:28,760 Speaker 3: production and shipment schedules. That is what the report is saying, 211 00:11:28,840 --> 00:11:32,120 Speaker 3: citing unidentified people. We're currently off almost five percent on 212 00:11:32,160 --> 00:11:34,720 Speaker 3: a down market. Meanwhile, coming up, President Trump ramps up 213 00:11:34,760 --> 00:11:39,240 Speaker 3: his escalations with Iran vidill isn't reached by tonight, We're. 214 00:11:39,120 --> 00:11:40,680 Speaker 7: On that next. There's a bluemog tech. 215 00:11:49,960 --> 00:11:53,800 Speaker 3: President Trump has escalated threats to Iran, warning that quote 216 00:11:54,240 --> 00:11:57,439 Speaker 3: a whole civilization will die tonight if for deal is 217 00:11:57,480 --> 00:12:01,320 Speaker 3: not reached for more Bloomberg's Tyler Kendall for more, and 218 00:12:01,400 --> 00:12:03,400 Speaker 3: it feels as though the rhetoric. 219 00:12:03,360 --> 00:12:06,280 Speaker 7: Is styling up what's happening behind the scenes tyer. 220 00:12:07,040 --> 00:12:10,000 Speaker 10: Hey, Caroline Well. At this point, the indication from the 221 00:12:10,000 --> 00:12:12,400 Speaker 10: White House is that they are not going to back 222 00:12:12,480 --> 00:12:15,600 Speaker 10: off of their threat of eight pm Eastern tonight. Amid 223 00:12:15,679 --> 00:12:19,440 Speaker 10: reporting that Iran is now cutting off communication with the 224 00:12:19,600 --> 00:12:22,080 Speaker 10: US in the wake of President Trump's post on a 225 00:12:22,160 --> 00:12:25,600 Speaker 10: truth social there is reporting that it is unclear if 226 00:12:25,640 --> 00:12:29,600 Speaker 10: these talks could resume, either directly or indirectly ahead of 227 00:12:29,640 --> 00:12:30,640 Speaker 10: tonight's deadline. 228 00:12:30,760 --> 00:12:30,920 Speaker 7: Now. 229 00:12:30,920 --> 00:12:33,400 Speaker 10: The President's post is of course raising some legal and 230 00:12:33,559 --> 00:12:37,720 Speaker 10: humanitarian questions, though experts have said that it will ultimately 231 00:12:37,760 --> 00:12:40,000 Speaker 10: come down to the size and scope of what actually 232 00:12:40,080 --> 00:12:43,680 Speaker 10: happens tonight, because under international law, a military is allowed 233 00:12:43,679 --> 00:12:46,760 Speaker 10: to strike key infrastructure if it one contributes to a 234 00:12:46,800 --> 00:12:50,280 Speaker 10: military operation. This idea of dual use. If a bridge 235 00:12:50,360 --> 00:12:53,480 Speaker 10: is used to help transport weapons, for example, and two 236 00:12:53,679 --> 00:12:57,120 Speaker 10: if civilian harm is minimized. We've already started to see 237 00:12:57,520 --> 00:13:01,959 Speaker 10: some strikes happening earlier today against Larry targets in particular, 238 00:13:02,080 --> 00:13:05,840 Speaker 10: including on carg Island, as carg Island remains absolutely central 239 00:13:05,880 --> 00:13:07,800 Speaker 10: when it comes to the strait of her moves. And 240 00:13:07,920 --> 00:13:10,160 Speaker 10: yesterday we got a little bit more clarity from this 241 00:13:10,240 --> 00:13:12,880 Speaker 10: White House that they do need to see a reopening 242 00:13:12,960 --> 00:13:16,400 Speaker 10: of that waterway in order to agree to any potential 243 00:13:16,520 --> 00:13:18,880 Speaker 10: cease fire deal. We're going to have to wait to 244 00:13:18,880 --> 00:13:21,760 Speaker 10: see what happens, because in that same post from President Trump, 245 00:13:21,960 --> 00:13:24,680 Speaker 10: he also said quote who knows what will happen, And 246 00:13:24,760 --> 00:13:27,880 Speaker 10: yesterday he said that he felt that Iran was negotiating 247 00:13:27,960 --> 00:13:30,640 Speaker 10: in good faith. Caroline. We heard earlier today from Vice 248 00:13:30,720 --> 00:13:33,720 Speaker 10: President jd Vance who said that he felt confident that 249 00:13:33,760 --> 00:13:36,920 Speaker 10: the US would get some sort of response from Iran 250 00:13:37,000 --> 00:13:39,840 Speaker 10: ahead of tonight's eight pm Eastern deadline. But this White 251 00:13:39,840 --> 00:13:42,760 Speaker 10: House maintains that what happens tonight is going to be 252 00:13:42,880 --> 00:13:46,160 Speaker 10: on how Iran ultimately responds, And so far we have 253 00:13:46,200 --> 00:13:49,319 Speaker 10: only seen this hard line stance taken Big. 254 00:13:49,160 --> 00:13:52,160 Speaker 7: Mex Tyler Kendall. We appreciate it. Everything from the White House. 255 00:13:52,200 --> 00:13:55,439 Speaker 3: Meanwhile, big tech stocks they remain under pressure yet again 256 00:13:55,480 --> 00:13:56,800 Speaker 3: amid the Middle East concerns. 257 00:13:57,000 --> 00:13:59,199 Speaker 7: This is a growing chorus on wool Street. 258 00:13:59,320 --> 00:14:02,280 Speaker 3: She starts making case for why did it, including Goldman's 259 00:14:02,320 --> 00:14:05,320 Speaker 3: Peter Oppenheimer. He says the recent pullback is creating more 260 00:14:05,320 --> 00:14:09,080 Speaker 3: attractive entry points and that tech valuations have now slipped below. 261 00:14:09,000 --> 00:14:10,240 Speaker 7: The broader global market. 262 00:14:10,600 --> 00:14:13,760 Speaker 3: Let's continue the debate with RBC Bruined Dolphin's Janet Mui, 263 00:14:13,840 --> 00:14:16,679 Speaker 3: who says, well, last week's secuity rebound, you thought it 264 00:14:16,720 --> 00:14:19,920 Speaker 3: was not one to chase, So do we just stampat 265 00:14:20,000 --> 00:14:20,520 Speaker 3: for the time being? 266 00:14:20,600 --> 00:14:23,760 Speaker 11: Janet, Hi, Caroline, thanks for having me. 267 00:14:24,120 --> 00:14:26,320 Speaker 5: Yeah, yes, I think we just need to stay put 268 00:14:26,360 --> 00:14:30,160 Speaker 5: for now and monitor the situation. I think the reason 269 00:14:30,440 --> 00:14:33,720 Speaker 5: why we don't chase the rally from last week is 270 00:14:33,760 --> 00:14:38,440 Speaker 5: simply because the Iran situation is unlikely to be resolved 271 00:14:38,480 --> 00:14:42,400 Speaker 5: anytime soon, and I think with oil prices being elevated 272 00:14:42,600 --> 00:14:45,440 Speaker 5: like this, I think it will put pressure on global 273 00:14:45,440 --> 00:14:49,000 Speaker 5: growth and of course put upside risk to inflation. And 274 00:14:49,280 --> 00:14:52,720 Speaker 5: at this point Central banks rade cut agenda is being 275 00:14:52,760 --> 00:14:56,480 Speaker 5: abandoned and there could be rate heights going forward, and 276 00:14:56,760 --> 00:15:00,160 Speaker 5: physically speaking, global governments will find it very tough to 277 00:15:00,200 --> 00:15:04,760 Speaker 5: support consumers in any form because of the physical deficit situation. 278 00:15:05,000 --> 00:15:05,560 Speaker 11: So only know. 279 00:15:05,640 --> 00:15:08,520 Speaker 5: I think from a micro perspective, there's still a lot 280 00:15:08,560 --> 00:15:12,240 Speaker 5: of uncertainty and certainly risk tilted to the downside. 281 00:15:12,400 --> 00:15:13,360 Speaker 11: So I think it's. 282 00:15:13,320 --> 00:15:16,520 Speaker 5: Not really the right moment to chase the last week's 283 00:15:16,560 --> 00:15:20,120 Speaker 5: really and as we are speaking, the markets have seen 284 00:15:20,200 --> 00:15:23,840 Speaker 5: renew weakness again because the situation is just so unclear. 285 00:15:24,040 --> 00:15:25,640 Speaker 7: How have you been protecting the downside? 286 00:15:25,680 --> 00:15:26,040 Speaker 12: Janet? 287 00:15:27,800 --> 00:15:30,200 Speaker 5: Yeah, So I think we need to think really deeply 288 00:15:30,280 --> 00:15:33,880 Speaker 5: about the inflation prospect because if you think about the 289 00:15:33,960 --> 00:15:38,920 Speaker 5: various scenarios, the path of list resistance is basically elevated 290 00:15:39,120 --> 00:15:43,360 Speaker 5: or prices for prolonged period because even if we see 291 00:15:43,400 --> 00:15:47,360 Speaker 5: the escalation, a lot of the energy assets have been destroyed, 292 00:15:47,400 --> 00:15:51,960 Speaker 5: so we don't expect near term normalization in terms. 293 00:15:51,680 --> 00:15:53,360 Speaker 11: Of oil flows or supply, so. 294 00:15:53,800 --> 00:15:58,160 Speaker 5: Inflation being higher in the near term or longer is 295 00:15:58,200 --> 00:16:02,480 Speaker 5: basically the base case here. We like our energy stock 296 00:16:02,560 --> 00:16:06,600 Speaker 5: exposure in portfolio to hash against that risk, and the 297 00:16:06,720 --> 00:16:11,920 Speaker 5: energy major state pay quite good dividends, so that's another 298 00:16:11,960 --> 00:16:12,840 Speaker 5: attractive point. 299 00:16:13,240 --> 00:16:15,000 Speaker 11: And we like our gold. 300 00:16:14,760 --> 00:16:18,280 Speaker 5: As an inflation hash and goal price being down from 301 00:16:18,320 --> 00:16:21,840 Speaker 5: their highs really provide relatively good at our entry point. 302 00:16:21,920 --> 00:16:25,640 Speaker 5: We also like inflation linked bonds because that you know, 303 00:16:25,800 --> 00:16:28,880 Speaker 5: it can hash against that high inflation outlook. 304 00:16:29,440 --> 00:16:32,120 Speaker 3: To bring it back to technology, which is hard in 305 00:16:32,160 --> 00:16:36,160 Speaker 3: the current global context. Janet, just at what point do 306 00:16:36,280 --> 00:16:39,800 Speaker 3: you focus in on fundamental business news and what point 307 00:16:39,800 --> 00:16:42,320 Speaker 3: are you looking at the headlines coming from broad Comic 308 00:16:42,360 --> 00:16:45,360 Speaker 3: spanning its deal, if you're looking what's happening with anthropics 309 00:16:45,440 --> 00:16:46,880 Speaker 3: run Rain and what that means to the rest of 310 00:16:46,920 --> 00:16:49,680 Speaker 3: the ecosystem. When you're hearing Matt Intel going in with 311 00:16:49,760 --> 00:16:53,080 Speaker 3: a terrorfab potentially of course of ed On Musks, does 312 00:16:53,160 --> 00:16:57,000 Speaker 3: any of that drive companies investors to want to go 313 00:16:57,040 --> 00:16:58,880 Speaker 3: and allocate or do you think for now you just 314 00:16:58,960 --> 00:17:01,200 Speaker 3: have to sit back and mid the global context, which 315 00:17:01,280 --> 00:17:04,440 Speaker 3: is one of concern and instability. 316 00:17:05,240 --> 00:17:07,840 Speaker 11: I think the two themes can go in parallel. 317 00:17:07,840 --> 00:17:10,639 Speaker 5: Obviously, the macro risk and the Iran wall is front 318 00:17:10,680 --> 00:17:14,400 Speaker 5: and center, and ultimately that affects sentiment, But we always 319 00:17:14,480 --> 00:17:16,719 Speaker 5: look at the fundamental. 320 00:17:16,119 --> 00:17:16,920 Speaker 11: Drivers as well. 321 00:17:17,160 --> 00:17:19,800 Speaker 5: And even though I was saying that we're not chasing 322 00:17:19,800 --> 00:17:24,520 Speaker 5: the rally, we have to understand that there has been 323 00:17:24,560 --> 00:17:27,960 Speaker 5: a lot of discount have a discount in selected high 324 00:17:28,080 --> 00:17:32,439 Speaker 5: quality growth TEX stocks, some of that in software, some 325 00:17:32,520 --> 00:17:35,040 Speaker 5: of them in the picks and Shovels play of the 326 00:17:35,119 --> 00:17:38,880 Speaker 5: AI infrastructure play. I'm not gonna name names, but there's 327 00:17:38,880 --> 00:17:43,520 Speaker 5: some really attractive discount happening in the past couple of months. 328 00:17:43,520 --> 00:17:46,600 Speaker 11: So we are closely monitoring that situation. 329 00:17:46,920 --> 00:17:49,320 Speaker 5: So I think you know, at the moment we're keeping 330 00:17:49,320 --> 00:17:51,479 Speaker 5: a bit of a higher cash level than normal. 331 00:17:51,760 --> 00:17:54,120 Speaker 11: So certainly if there are. 332 00:17:54,160 --> 00:17:59,800 Speaker 5: Further discounting because of the volatility in Marquess will certainly 333 00:18:00,240 --> 00:18:03,760 Speaker 5: be finding opportunities to add further to those positions. 334 00:18:04,119 --> 00:18:06,200 Speaker 7: How much are the American how much are they international? 335 00:18:08,960 --> 00:18:12,000 Speaker 5: For the tech sector exposure, also, that is still American 336 00:18:12,040 --> 00:18:15,840 Speaker 5: exposure because if you look at the tech AI picks 337 00:18:15,920 --> 00:18:20,719 Speaker 5: and Shovels play, which remain our favorite, because that area 338 00:18:20,800 --> 00:18:26,280 Speaker 5: we think is very strong growth driver, irrespective of you know, 339 00:18:26,359 --> 00:18:29,880 Speaker 5: whether some software is going obsolete or not, because there 340 00:18:29,920 --> 00:18:34,000 Speaker 5: are the fundamental layer of the tech the AI build out. 341 00:18:34,119 --> 00:18:38,480 Speaker 5: So most of that is American exposure, and of course 342 00:18:38,480 --> 00:18:42,760 Speaker 5: we have some Asian exposure name but I would say 343 00:18:42,760 --> 00:18:43,800 Speaker 5: most is still American. 344 00:18:44,560 --> 00:18:49,439 Speaker 3: Jenny m of RBC Bruin Dolphin tough to talk just 345 00:18:49,520 --> 00:18:51,560 Speaker 3: stocks in tech, but you managed to do it for us. 346 00:18:51,560 --> 00:18:54,160 Speaker 3: We really appreciate it. Me while coming up, blackman sets 347 00:18:54,160 --> 00:18:56,560 Speaker 3: his eyes in a universal music group. The sixty five 348 00:18:56,560 --> 00:18:59,720 Speaker 3: billion dollars deal on on that next is a pretty. 349 00:18:59,440 --> 00:19:09,639 Speaker 7: Bad tech time now for talking tech. 350 00:19:09,480 --> 00:19:12,960 Speaker 3: And first up aerospace startup Permias has raised three hund 351 00:19:13,000 --> 00:19:15,520 Speaker 3: and fifty million dollars in funding round, boosting its valuations 352 00:19:15,600 --> 00:19:18,280 Speaker 3: one million dollars. The Atlanta based company plans to build 353 00:19:18,400 --> 00:19:20,960 Speaker 3: an unmanned fighter for the US military, able to fly 354 00:19:21,200 --> 00:19:23,200 Speaker 3: at mark three or three times to speed of sound. 355 00:19:23,240 --> 00:19:23,359 Speaker 10: Now. 356 00:19:23,359 --> 00:19:25,760 Speaker 3: Hews is set to use the new capital to build 357 00:19:25,880 --> 00:19:27,399 Speaker 3: two more planes and ramp. 358 00:19:27,359 --> 00:19:28,600 Speaker 7: Up the manufacturing capacity. 359 00:19:28,920 --> 00:19:32,240 Speaker 3: Plus, Blackstone backed QTS drew about twelve point five billion 360 00:19:32,280 --> 00:19:34,800 Speaker 3: dollars for a debut high grade bond sale. 361 00:19:34,480 --> 00:19:37,600 Speaker 7: That will help funder Microsoft Data center. That's according to sources. 362 00:19:37,640 --> 00:19:39,800 Speaker 3: The bond sell is the latest in a waiver borrowing 363 00:19:39,840 --> 00:19:43,280 Speaker 3: tied to new AI infrastructure build ups and data center 364 00:19:43,440 --> 00:19:47,280 Speaker 3: builder Firmis Technologies has raised five hundred and five million dollars, 365 00:19:47,359 --> 00:19:50,119 Speaker 3: valuing the Australian startup at five point five billion now. 366 00:19:50,160 --> 00:19:52,560 Speaker 3: The round was led by co To Management and Participation 367 00:19:52,600 --> 00:19:55,159 Speaker 3: from Video. Furmas says that the cash will go towards 368 00:19:55,240 --> 00:19:58,000 Speaker 3: the rapid deployment of AI hardware based on forthcoming and 369 00:19:58,080 --> 00:20:00,439 Speaker 3: video tech, but over an age of Pacific region. 370 00:20:02,480 --> 00:20:04,800 Speaker 4: Well hello again. Shares of Universal Music Group. 371 00:20:04,840 --> 00:20:07,480 Speaker 2: This is the Amsterdam trading up twelve percent, on track 372 00:20:07,520 --> 00:20:10,800 Speaker 2: for their biggest day ever, having opened up twenty four percent. 373 00:20:10,840 --> 00:20:16,199 Speaker 2: Proposed proposal from Bill Ackman for Universal Music Group, the 374 00:20:16,200 --> 00:20:19,359 Speaker 2: world's largest music company which houses the likes of Taylor Swift, 375 00:20:19,440 --> 00:20:24,000 Speaker 2: Drake and Saprina Carpenter. It is a complicated potential deal. 376 00:20:24,040 --> 00:20:27,800 Speaker 2: Bloomberg's Ben wa Bertelo covers European Media and Attainment joins us. 377 00:20:27,800 --> 00:20:32,520 Speaker 2: Now it is complicated, unsurprising you have Ackman deal and music. 378 00:20:32,560 --> 00:20:34,920 Speaker 2: It's one of the most read stories on the Bloomberg terminal. 379 00:20:35,359 --> 00:20:38,080 Speaker 2: Just give us the very basics of what the proposal is. 380 00:20:40,560 --> 00:20:43,879 Speaker 12: So basically, it's a plan to merge Niversal Music Group 381 00:20:44,000 --> 00:20:47,320 Speaker 12: with a blunk check company that the legman that has 382 00:20:47,320 --> 00:20:50,840 Speaker 12: creately did for these It's a merger that give a 383 00:20:50,880 --> 00:20:55,640 Speaker 12: valuation of fifty six billion euros to Universal cash component 384 00:20:55,720 --> 00:20:59,840 Speaker 12: of the dv's the belt nine billion. And basically, whether 385 00:20:59,840 --> 00:21:03,760 Speaker 12: you wants to achieve is to relocate the listing from 386 00:21:03,840 --> 00:21:08,600 Speaker 12: Amsterdam to New York as a primary listing. He just 387 00:21:08,640 --> 00:21:12,720 Speaker 12: made a call to investor and Acman said that it 388 00:21:12,720 --> 00:21:15,359 Speaker 12: would make more sense for Universal to be listed in 389 00:21:15,440 --> 00:21:20,600 Speaker 12: the US, giving that the operational center, the decision making 390 00:21:20,960 --> 00:21:25,680 Speaker 12: is made in the US on the East coast, and 391 00:21:26,520 --> 00:21:29,239 Speaker 12: so that's his main point really for this deal, and 392 00:21:29,320 --> 00:21:32,560 Speaker 12: he said it would make more sense for analysts cover 393 00:21:32,840 --> 00:21:36,719 Speaker 12: the peers of universals to cover the company being listed 394 00:21:36,760 --> 00:21:37,560 Speaker 12: in the US. 395 00:21:38,320 --> 00:21:42,080 Speaker 3: What's interesting is that, of course this has got some skepticism. 396 00:21:42,520 --> 00:21:43,320 Speaker 7: He can talk to. 397 00:21:43,320 --> 00:21:45,720 Speaker 3: Investors all he likes, but there's really one key investor 398 00:21:45,720 --> 00:21:48,359 Speaker 3: who needs to convince, who sat over in France as 399 00:21:48,400 --> 00:21:51,960 Speaker 3: a billionaire talk to us about well Vincent Belore and 400 00:21:52,160 --> 00:21:54,200 Speaker 3: whether he's going to go along with it. 401 00:21:55,520 --> 00:21:58,399 Speaker 12: Yes, So it's really the main shoulder, the largest of 402 00:21:59,080 --> 00:22:05,040 Speaker 12: universally has a about eighteen percent through Borrowe, his own holding, 403 00:22:05,240 --> 00:22:08,880 Speaker 12: and he has another ten percent through company controlled that's 404 00:22:09,160 --> 00:22:13,480 Speaker 12: the media conglomerate viven d that Universal has been spun 405 00:22:13,560 --> 00:22:16,280 Speaker 12: off actually a few years ago and listed in Amsterdam. 406 00:22:16,600 --> 00:22:19,160 Speaker 12: So he has to say and Akman was really clear 407 00:22:19,200 --> 00:22:21,720 Speaker 12: today on the call that he has to win over 408 00:22:22,040 --> 00:22:24,760 Speaker 12: Borowey for this deal to go through. He also said 409 00:22:24,760 --> 00:22:28,119 Speaker 12: that said to him that the deal was intriguing and 410 00:22:28,280 --> 00:22:31,919 Speaker 12: music to his ears. We haven't heard from from Boroy 411 00:22:32,080 --> 00:22:34,840 Speaker 12: exactly on this so ever, reasoning for its reaction. 412 00:22:34,960 --> 00:22:37,240 Speaker 3: Really thank you, Benmar It's great to have you one 413 00:22:37,359 --> 00:22:38,040 Speaker 3: life in Paris. 414 00:22:38,040 --> 00:22:40,520 Speaker 7: You appreciate it. Coming up Samsung and a. 415 00:22:40,560 --> 00:22:42,280 Speaker 3: Quart stronger than expected leaping profit. 416 00:22:42,480 --> 00:22:43,320 Speaker 7: Let's goloe back Tech. 417 00:22:52,160 --> 00:22:53,919 Speaker 4: Welcome back to Bloomberg Tech. I want to take a 418 00:22:53,960 --> 00:22:54,840 Speaker 4: broad look. 419 00:22:54,600 --> 00:22:57,800 Speaker 2: At technology stocks through then ask that one hundred. We 420 00:22:57,960 --> 00:23:01,400 Speaker 2: are off session lows, but the store orrious technology stocks 421 00:23:01,480 --> 00:23:06,320 Speaker 2: down oil higher doubts about a US Iran deal for 422 00:23:06,359 --> 00:23:09,840 Speaker 2: a ceasepy. There is an eight pm Eastern time deadline 423 00:23:09,880 --> 00:23:12,840 Speaker 2: set by the President for Iran to agree to cease 424 00:23:12,880 --> 00:23:15,960 Speaker 2: FA terms. And that is what the market is digesting 425 00:23:16,359 --> 00:23:19,840 Speaker 2: within that index and within the technology sector specific movers. 426 00:23:19,880 --> 00:23:23,119 Speaker 2: We've been over them. Intel is again off its session highs. 427 00:23:23,400 --> 00:23:25,920 Speaker 2: It had been up almost five percent after announcing it's 428 00:23:26,040 --> 00:23:28,120 Speaker 2: joining Elon Musk's. 429 00:23:27,640 --> 00:23:28,640 Speaker 4: Terror Fab project. 430 00:23:28,680 --> 00:23:31,240 Speaker 2: You can recap that on the podcast and then Broadcom 431 00:23:31,480 --> 00:23:34,359 Speaker 2: It's up almost four percent off session highs, but it 432 00:23:34,400 --> 00:23:38,840 Speaker 2: has an expanding expanded deal with Google for TPUs, and 433 00:23:38,880 --> 00:23:43,480 Speaker 2: the mainstay of that is Anthropic and Anathropics expanded use 434 00:23:43,880 --> 00:23:47,359 Speaker 2: and supply of TPUs. Let's get more on that deal, 435 00:23:47,600 --> 00:23:49,000 Speaker 2: what it means for the world of Aivan. 436 00:23:49,040 --> 00:23:50,520 Speaker 4: I meer suring Gafaris with us. 437 00:23:50,359 --> 00:23:52,040 Speaker 2: And like you know, you and I broke the story 438 00:23:52,080 --> 00:23:55,640 Speaker 2: originally right that the Entropic would use TPUs to begin with. 439 00:23:55,880 --> 00:24:00,159 Speaker 2: It started with one gigawa, now three times that give 440 00:24:00,240 --> 00:24:02,239 Speaker 2: us the basics of what we learned, and then some 441 00:24:02,280 --> 00:24:04,600 Speaker 2: more stuff about anthropics financials. 442 00:24:06,280 --> 00:24:07,800 Speaker 4: Right, So this is a major expansion. 443 00:24:07,840 --> 00:24:09,360 Speaker 11: It's going to be several gigawatts. 444 00:24:09,800 --> 00:24:13,560 Speaker 13: And the context there is and the demand for Anthropic 445 00:24:13,640 --> 00:24:15,879 Speaker 13: products has really shot through the roof in the past 446 00:24:15,880 --> 00:24:19,240 Speaker 13: few months with the popularity of its Claud code coding 447 00:24:19,280 --> 00:24:22,840 Speaker 13: agent as well as now as they're head of sales 448 00:24:22,880 --> 00:24:25,680 Speaker 13: recently told us their Claud cowork agent, which is more 449 00:24:25,720 --> 00:24:28,920 Speaker 13: for general activities beyond just coding. So as they're seeing 450 00:24:29,080 --> 00:24:31,840 Speaker 13: very very strong enterprise growth, they're going to need to 451 00:24:31,920 --> 00:24:33,400 Speaker 13: ramp up that compute. 452 00:24:34,000 --> 00:24:37,680 Speaker 3: And what's extraordinary has been the ramp up in their business, 453 00:24:37,920 --> 00:24:41,439 Speaker 3: not only because the context that they were having a 454 00:24:41,480 --> 00:24:45,960 Speaker 3: fallout very public spat that's still ongoing with the Pentagon 455 00:24:46,040 --> 00:24:48,560 Speaker 3: right now, but it seems actually the businesses are still 456 00:24:48,560 --> 00:24:49,879 Speaker 3: coming to them for their technology. 457 00:24:51,600 --> 00:24:54,400 Speaker 13: That's right, you know, as Anthropics said, and it's complained 458 00:24:54,440 --> 00:24:57,879 Speaker 13: in the lawsuit against the US government that feud with 459 00:24:57,960 --> 00:25:01,439 Speaker 13: the Pentagon is very serious. The company did say it 460 00:25:01,520 --> 00:25:04,959 Speaker 13: put them at risk to lose customers and potentially billions 461 00:25:05,000 --> 00:25:08,600 Speaker 13: in revenue. But at the same time, the product growth 462 00:25:08,600 --> 00:25:12,560 Speaker 13: has been remarkable, and it seems like it hasn't, at 463 00:25:12,640 --> 00:25:15,040 Speaker 13: least for now, stopped them from continuing to see this 464 00:25:15,200 --> 00:25:16,920 Speaker 13: very strong revenue growth on enterprise. 465 00:25:18,119 --> 00:25:22,600 Speaker 2: Through your reporting, I've learned about adversarial model distillation, and 466 00:25:22,680 --> 00:25:26,840 Speaker 2: you've been talking in this report about Anthropic cooperating with 467 00:25:27,000 --> 00:25:31,680 Speaker 2: open ai and Google and historically three companies that may 468 00:25:31,720 --> 00:25:35,560 Speaker 2: have differing views. Explain the cooperation, what it's trying to counter, 469 00:25:35,920 --> 00:25:39,240 Speaker 2: and the basic concept of adversarial model distillation. 470 00:25:41,240 --> 00:25:45,200 Speaker 13: Yes, so what that means, and it sounds very complex, 471 00:25:45,240 --> 00:25:49,800 Speaker 13: but really it's just the idea that an older AI 472 00:25:49,840 --> 00:25:53,960 Speaker 13: model can be used to then train or teach a 473 00:25:54,040 --> 00:25:57,840 Speaker 13: newer model, and that the output of that original eimodel 474 00:25:58,000 --> 00:26:00,399 Speaker 13: is what's being used to train the new one and 475 00:26:00,440 --> 00:26:02,879 Speaker 13: This happens all the time, and it's not controversial if 476 00:26:02,880 --> 00:26:04,960 Speaker 13: it's being done by a company that's developed their own 477 00:26:05,000 --> 00:26:07,400 Speaker 13: software to train the next generation of software. 478 00:26:07,840 --> 00:26:08,320 Speaker 4: But it is. 479 00:26:08,320 --> 00:26:12,280 Speaker 13: Controversial when as we're seeing, foreign firms in China and 480 00:26:12,359 --> 00:26:15,560 Speaker 13: elsewhere are starting to essentially what the US companies are 481 00:26:15,560 --> 00:26:18,240 Speaker 13: saying is sort of rip off or copy their product 482 00:26:18,359 --> 00:26:20,679 Speaker 13: and then put their the Chinese product out there for 483 00:26:20,760 --> 00:26:23,960 Speaker 13: free in as an open weight model. And so that's 484 00:26:23,960 --> 00:26:26,760 Speaker 13: what the companies are working together on. It's rare that 485 00:26:26,800 --> 00:26:31,119 Speaker 13: you see anthropic and open AI fierce rivals and Google cooperating, 486 00:26:31,320 --> 00:26:33,879 Speaker 13: but on this front, as we reported, they are sharing 487 00:26:33,960 --> 00:26:37,520 Speaker 13: information about how to detect when firms, especially in China 488 00:26:37,560 --> 00:26:40,880 Speaker 13: outside the US, are using this distillation technique to essentially 489 00:26:40,920 --> 00:26:43,040 Speaker 13: copy the output of their models. 490 00:26:42,960 --> 00:26:46,160 Speaker 3: Front End Model Forum and they set up Shooing Gafari. 491 00:26:46,359 --> 00:26:48,920 Speaker 3: Fantastic reporting across all things AI and anthropic. 492 00:26:48,920 --> 00:26:49,600 Speaker 7: We appreciate it. 493 00:26:49,640 --> 00:26:52,399 Speaker 3: Meanwhile, let's tend attention to the chips that are needed. 494 00:26:52,440 --> 00:26:55,280 Speaker 3: Samsung reporting a seven hundred and fifty five percent leap 495 00:26:55,600 --> 00:26:57,800 Speaker 3: in quarterly profit to hit a record. 496 00:26:57,960 --> 00:27:01,040 Speaker 7: It's driven by robust demand for those AI joining us. 497 00:27:01,040 --> 00:27:03,720 Speaker 3: Now, most you can lee is here with us an 498 00:27:03,760 --> 00:27:07,160 Speaker 3: extraordinary demand for high bandwidth memory. And what's so interesting 499 00:27:07,240 --> 00:27:09,560 Speaker 3: is how quickly they've turned the tides on would have 500 00:27:09,560 --> 00:27:10,960 Speaker 3: been a negative narrative for them. 501 00:27:11,840 --> 00:27:15,040 Speaker 14: Absolutely, that's right. So this quarter from January to March, 502 00:27:15,080 --> 00:27:18,480 Speaker 14: Samsung reported preliminary earnings I was eight times higher from 503 00:27:18,520 --> 00:27:21,879 Speaker 14: the previous year, and it was higher than the high expectations. 504 00:27:21,920 --> 00:27:25,200 Speaker 14: And in just one quarter, Samsung actually earned more than 505 00:27:25,240 --> 00:27:28,480 Speaker 14: what it made in the entire year of twenty twenty five. 506 00:27:29,280 --> 00:27:31,600 Speaker 14: And this is what's a preliminary earning, so we don't 507 00:27:31,600 --> 00:27:35,760 Speaker 14: have divisional breakdowns between chips, TVs, and phones. But on 508 00:27:35,840 --> 00:27:38,320 Speaker 14: April thirties, the company is going to have a full 509 00:27:38,320 --> 00:27:40,240 Speaker 14: earnings release and also hold the conference. 510 00:27:40,280 --> 00:27:45,360 Speaker 2: Car you can put some numbers behind how much contribution 511 00:27:45,960 --> 00:27:49,120 Speaker 2: the Memory story and memory chips have made to that 512 00:27:49,280 --> 00:27:51,119 Speaker 2: to that blowout prelim report. 513 00:27:51,320 --> 00:27:54,399 Speaker 14: Yeah, absolutely, so this was definitely the Memory story and 514 00:27:54,520 --> 00:27:57,960 Speaker 14: the analyst from the CLSA and Morgan Stanley they estimate 515 00:27:58,000 --> 00:28:01,120 Speaker 14: that ninety percent of its operating profit of thirty eight 516 00:28:01,119 --> 00:28:05,119 Speaker 14: billion probably came from its membership division. Now we don't 517 00:28:05,160 --> 00:28:07,800 Speaker 14: have that exact detail from the company yet because this 518 00:28:08,000 --> 00:28:10,760 Speaker 14: was a preliminary results but it seems like almost like 519 00:28:10,880 --> 00:28:14,800 Speaker 14: ninety percent of that quarterly earnings have come from the 520 00:28:14,960 --> 00:28:16,280 Speaker 14: crucial memory. 521 00:28:15,960 --> 00:28:20,120 Speaker 4: Department, and interestingly, shares fell. 522 00:28:20,240 --> 00:28:23,040 Speaker 2: Maybe some profit taking, maybe risk off with what's happening 523 00:28:23,080 --> 00:28:25,720 Speaker 2: with the war in around bloombugs, Yuck, youngle, thank you 524 00:28:25,920 --> 00:28:28,680 Speaker 2: very much. With arms plans of selling its own chips 525 00:28:28,720 --> 00:28:31,240 Speaker 2: for the first time, the company is trying to pull 526 00:28:31,240 --> 00:28:34,960 Speaker 2: off its biggest shift yet, with Morgan Stanley today downgrading 527 00:28:35,000 --> 00:28:38,640 Speaker 2: the company to equal weight on execution risk concerns. From 528 00:28:38,680 --> 00:28:42,240 Speaker 2: smartphones to data centers, the company is chasing a one 529 00:28:42,280 --> 00:28:45,720 Speaker 2: hundred billion dollar market. Tom McKenzie sat down with CEO 530 00:28:45,800 --> 00:28:50,040 Speaker 2: Renee Hass for a deep dive specifically for Bloomberg Tech Europe. 531 00:28:50,560 --> 00:28:53,680 Speaker 15: We are shifting away from being largely known for smartphones 532 00:28:54,200 --> 00:28:56,760 Speaker 15: to being around the cloud and AI data centers, where 533 00:28:57,000 --> 00:28:59,600 Speaker 15: in a few years that's our largest business by far, 534 00:29:00,120 --> 00:29:02,400 Speaker 15: and in five years it'll be orders of magnitude larger 535 00:29:02,440 --> 00:29:03,520 Speaker 15: than what we do in smartphones. 536 00:29:04,360 --> 00:29:07,320 Speaker 2: The next episode of Bloomberg Tech Europe is this Friday 537 00:29:07,400 --> 00:29:09,520 Speaker 2: at eight thirty am in London, or you can watch 538 00:29:09,560 --> 00:29:12,320 Speaker 2: it on the Terminal YouTube and on our video hub 539 00:29:12,520 --> 00:29:14,200 Speaker 2: at Bloomberg dot com. 540 00:29:14,200 --> 00:29:15,440 Speaker 4: Slash video. 541 00:29:16,080 --> 00:29:17,360 Speaker 7: Go watch me while coming up. 542 00:29:17,400 --> 00:29:21,200 Speaker 3: Stay tuned for your Susan from Clips joining us to 543 00:29:21,240 --> 00:29:25,680 Speaker 3: talk about backing startups powering America's reindustrialization efforts. I've been 544 00:29:25,680 --> 00:29:27,640 Speaker 3: at it for years and I've got a big new 545 00:29:27,720 --> 00:29:28,360 Speaker 3: race to announce. 546 00:29:28,400 --> 00:29:29,400 Speaker 7: This is blombog tech. 547 00:29:33,640 --> 00:29:38,120 Speaker 2: Enthusiasm for backing startups. That's Caroline, that's me. Backing startups 548 00:29:38,160 --> 00:29:43,040 Speaker 2: focused on Western reindustrialization is showing no sign of slowing down. 549 00:29:43,080 --> 00:29:46,920 Speaker 2: The latest example, venture Firmer Clips has raised one point 550 00:29:46,960 --> 00:29:50,720 Speaker 2: three billion dollars across two funds to back companies building 551 00:29:50,800 --> 00:29:56,080 Speaker 2: quote the next era of physical industries, think robotics, manufacturing, 552 00:29:56,320 --> 00:29:59,120 Speaker 2: and energy startups, among others. Let's bring in to your 553 00:29:59,160 --> 00:30:03,719 Speaker 2: susan the under and CEO of Eclipse and this takes 554 00:30:03,800 --> 00:30:05,520 Speaker 2: you know, total funds way up there. 555 00:30:06,000 --> 00:30:06,960 Speaker 4: Super interesting. 556 00:30:07,040 --> 00:30:12,400 Speaker 2: The capital commitment to this domain this vertical, and I 557 00:30:12,440 --> 00:30:14,720 Speaker 2: thought a good place to start your is talk a 558 00:30:14,760 --> 00:30:17,840 Speaker 2: little bit about the LPs. You know where the money 559 00:30:17,920 --> 00:30:20,680 Speaker 2: is coming from and how much push you are getting 560 00:30:21,000 --> 00:30:25,200 Speaker 2: to participate in the deal flow in that reindustrialization movement. 561 00:30:27,200 --> 00:30:29,280 Speaker 16: Ed great to be here and thanks for having me. 562 00:30:30,360 --> 00:30:34,600 Speaker 16: We raise capital from US based LPs. It's a nonprofit organization, 563 00:30:34,720 --> 00:30:39,960 Speaker 16: your university endowments, foundation, hospital system, et cetera. We started 564 00:30:39,960 --> 00:30:44,280 Speaker 16: the film eleven years ago with one goal and our 565 00:30:44,360 --> 00:30:46,960 Speaker 16: belief that the economy, that the US economy needs to 566 00:30:47,000 --> 00:30:49,720 Speaker 16: grow much fasters order to a five percent and it's 567 00:30:49,760 --> 00:30:52,480 Speaker 16: going to happen only from physical industries because they are 568 00:30:52,480 --> 00:30:55,360 Speaker 16: combining eighty five percent of the world GDB and to 569 00:30:55,400 --> 00:30:57,640 Speaker 16: tell you the truth, we kind of forget to build 570 00:30:57,920 --> 00:31:00,920 Speaker 16: hard companies in this country and super excited to be 571 00:31:01,120 --> 00:31:04,080 Speaker 16: back in the market with capital to support the founders 572 00:31:04,080 --> 00:31:05,120 Speaker 16: and operators. 573 00:31:05,840 --> 00:31:09,280 Speaker 2: You've grown the firm as well in the last couple 574 00:31:09,360 --> 00:31:09,840 Speaker 2: of years. 575 00:31:09,960 --> 00:31:11,760 Speaker 4: Joe Fuff came from Tiro Price. 576 00:31:12,360 --> 00:31:16,360 Speaker 2: You have Jetembao Charlie Mwongi, who are alumni of Rivian 577 00:31:16,480 --> 00:31:20,920 Speaker 2: and Tesla. In Charlie's case, what's the strategy with these 578 00:31:20,960 --> 00:31:23,040 Speaker 2: two new funds and how are you going to use 579 00:31:23,080 --> 00:31:26,560 Speaker 2: your talent bench to get out there do something interesting. 580 00:31:27,560 --> 00:31:31,800 Speaker 16: Yeah, we don't think ourselves as eventual capital necessarily or 581 00:31:31,880 --> 00:31:35,280 Speaker 16: growth capital. We call ourself operators with capital because we 582 00:31:35,360 --> 00:31:38,880 Speaker 16: believed that in order to build companies that many factoring 583 00:31:39,000 --> 00:31:42,240 Speaker 16: chips and building rockets and doing mining, it's required a 584 00:31:42,280 --> 00:31:44,960 Speaker 16: different model and you need an operators that was on 585 00:31:45,000 --> 00:31:49,440 Speaker 16: the other sides to support those founders along the journey. 586 00:31:49,840 --> 00:31:52,960 Speaker 16: And you know, I'm joking with my friends that I 587 00:31:53,040 --> 00:31:54,760 Speaker 16: used to say that this is the best time to 588 00:31:54,800 --> 00:31:58,080 Speaker 16: build in this country from Henry Ford or Calnegie or 589 00:31:58,120 --> 00:32:01,080 Speaker 16: post World War two, and I actually change my quote 590 00:32:01,120 --> 00:32:03,560 Speaker 16: to this is the best time to build in this 591 00:32:03,720 --> 00:32:07,720 Speaker 16: country period. And we have now the five forces aligned 592 00:32:07,760 --> 00:32:12,320 Speaker 16: what we call internally the clipse, capital, policy, technology, talent, 593 00:32:12,440 --> 00:32:15,600 Speaker 16: customer demand, and those forces was not aligned in this 594 00:32:15,760 --> 00:32:18,800 Speaker 16: country for us to build those type of companies. They 595 00:32:18,840 --> 00:32:22,080 Speaker 16: were only aligned in one other country that compete with US, 596 00:32:22,080 --> 00:32:22,720 Speaker 16: and it's China. 597 00:32:23,600 --> 00:32:26,160 Speaker 3: It's interesting that you say policy is aligned, and we've 598 00:32:26,200 --> 00:32:29,719 Speaker 3: just been out particularly thinking about defense tech neal and 599 00:32:30,240 --> 00:32:33,240 Speaker 3: for many yes, the signals are all there, demand is 600 00:32:33,280 --> 00:32:36,360 Speaker 3: being said, but how much money is actually being allocated 601 00:32:36,480 --> 00:32:39,080 Speaker 3: by the government two startups right now? How much do 602 00:32:39,080 --> 00:32:40,760 Speaker 3: you need to help fill that gap with some of 603 00:32:40,800 --> 00:32:41,680 Speaker 3: your follow on funding. 604 00:32:42,560 --> 00:32:46,040 Speaker 16: Yeah, I'm actually sitting right now in a hotel in Washington, DC. 605 00:32:46,400 --> 00:32:49,120 Speaker 16: I'm going to talk on stage with Jamie Diamond and 606 00:32:50,200 --> 00:32:54,959 Speaker 16: JP Morgan Sri around Defense Production Act. And I cannot 607 00:32:54,960 --> 00:32:59,040 Speaker 16: remember someone like me is visiting so often Washington, DC 608 00:32:59,200 --> 00:33:01,400 Speaker 16: and have the c of the largest bank in the 609 00:33:01,440 --> 00:33:04,640 Speaker 16: world allocating one and a half trillion of JP Morgan 610 00:33:04,720 --> 00:33:08,520 Speaker 16: to support those businesses. So it's not only we need 611 00:33:08,520 --> 00:33:11,360 Speaker 16: to do it in order to protect democracy. That of 612 00:33:11,400 --> 00:33:14,160 Speaker 16: course should be the number one goal. The second thing 613 00:33:14,360 --> 00:33:18,160 Speaker 16: is there is significant increase of customer demands by the 614 00:33:18,240 --> 00:33:21,640 Speaker 16: use governments and others as well capital. And probably the 615 00:33:21,680 --> 00:33:24,640 Speaker 16: most interesting part is the talent that the best people 616 00:33:24,640 --> 00:33:26,960 Speaker 16: in the world right now wants to build companies and 617 00:33:27,000 --> 00:33:27,920 Speaker 16: physical industries. 618 00:33:28,440 --> 00:33:32,040 Speaker 3: Look, you've raised one point three billion in total, and 619 00:33:32,080 --> 00:33:34,280 Speaker 3: it's divided between why you're going to be allocating in 620 00:33:34,320 --> 00:33:37,080 Speaker 3: growth stage. We can understand some of the winners you've 621 00:33:37,080 --> 00:33:39,880 Speaker 3: already got. We've seen a phenomenal portfolio in economy you 622 00:33:39,920 --> 00:33:42,920 Speaker 3: say you've built, But where's exciting at the very early stage, 623 00:33:42,920 --> 00:33:44,400 Speaker 3: where do you want to be going out and looking 624 00:33:44,440 --> 00:33:44,800 Speaker 3: for web? 625 00:33:44,960 --> 00:33:45,880 Speaker 7: Does the pub move? 626 00:33:46,800 --> 00:33:47,760 Speaker 16: Yeah, cal it's. 627 00:33:49,160 --> 00:33:51,040 Speaker 4: It's interesting as you can imagine. 628 00:33:51,080 --> 00:33:52,920 Speaker 16: I get that question a lot of like, Okay, you 629 00:33:53,040 --> 00:33:56,840 Speaker 16: raise new capital, which industries you you're going to invest? 630 00:33:56,840 --> 00:34:00,600 Speaker 16: And in some way we talked about defense building building 631 00:34:00,600 --> 00:34:04,720 Speaker 16: fabs and doing mining, building batteries. Ten years ago. So 632 00:34:04,760 --> 00:34:07,640 Speaker 16: the reality physical industries are not new things. They've been 633 00:34:07,720 --> 00:34:10,960 Speaker 16: here for so long, and they are combining eighty five 634 00:34:11,000 --> 00:34:14,000 Speaker 16: percent of the world GDP, and I think bringing those 635 00:34:14,040 --> 00:34:17,240 Speaker 16: digital tools that we are also familiar from Silicon Valley, 636 00:34:17,280 --> 00:34:20,560 Speaker 16: anything from physical AI now to llms and ODLs, the 637 00:34:20,640 --> 00:34:23,440 Speaker 16: latest and greatest in robotics, and apply them to the 638 00:34:23,440 --> 00:34:26,880 Speaker 16: physical world. You basically are going to create the largest 639 00:34:26,920 --> 00:34:28,960 Speaker 16: companies in the world. I mean you just literally in 640 00:34:29,040 --> 00:34:32,279 Speaker 16: your show talked about some song bidding earnings. You talked 641 00:34:32,280 --> 00:34:34,880 Speaker 16: about on Tropic Google Chip, you talked about my friends 642 00:34:34,920 --> 00:34:38,400 Speaker 16: Renee has from arm moving to a full stack. Everything 643 00:34:38,520 --> 00:34:41,560 Speaker 16: that is interesting right now is happening in physical industries. 644 00:34:42,560 --> 00:34:45,360 Speaker 2: You've done some really interesting deals, so I think about, 645 00:34:45,400 --> 00:34:48,880 Speaker 2: for example, also spun out of Rivian. You took it 646 00:34:48,920 --> 00:34:51,959 Speaker 2: out of Rivian early and wrote quite a large check. 647 00:34:52,600 --> 00:34:56,800 Speaker 2: You've used similar mechanisms, some scarringe thin offs and others. 648 00:34:57,719 --> 00:34:59,120 Speaker 4: You have a different way of doing things. 649 00:34:59,120 --> 00:35:02,200 Speaker 2: Could we see a s spin off type deal. 650 00:35:02,680 --> 00:35:03,480 Speaker 4: Out of this fund? 651 00:35:04,760 --> 00:35:08,680 Speaker 16: Yeah? We remember I got the first phone call I 652 00:35:08,680 --> 00:35:10,880 Speaker 16: think from one of our LPs and twenty eighteen and 653 00:35:10,920 --> 00:35:13,719 Speaker 16: it was like lyor why the heck you're building a 654 00:35:13,760 --> 00:35:16,000 Speaker 16: company you're supposed to invest and I'm like, hey, I'm 655 00:35:16,040 --> 00:35:18,000 Speaker 16: an operator. I like to build companies. I'm not going 656 00:35:18,040 --> 00:35:20,960 Speaker 16: to stop building companies. And I think you know what 657 00:35:21,000 --> 00:35:24,520 Speaker 16: you're seeing is the model of how you build companies 658 00:35:24,600 --> 00:35:27,400 Speaker 16: is shifting as well. Yeah, because just based on Caroline 659 00:35:27,680 --> 00:35:31,239 Speaker 16: great questions on the defense is you need scale out 660 00:35:31,239 --> 00:35:33,200 Speaker 16: of the gate. So if you're going to take the 661 00:35:33,239 --> 00:35:36,720 Speaker 16: traditional seat series say Series B, series ceds just too slow. 662 00:35:37,120 --> 00:35:39,319 Speaker 16: And if there is an assets that I can spin out, 663 00:35:39,360 --> 00:35:41,160 Speaker 16: if there is a talent that they can take, if 664 00:35:41,200 --> 00:35:43,640 Speaker 16: there is a customer, I can build a company for 665 00:35:43,840 --> 00:35:47,120 Speaker 16: that demand. Right as an operators with capital, we have 666 00:35:47,120 --> 00:35:48,359 Speaker 16: a full flexibility. 667 00:35:48,800 --> 00:35:52,640 Speaker 3: Yours was great catching up with you your Suzan, thank you, congratulations. 668 00:35:52,640 --> 00:35:56,080 Speaker 3: CEO of Clips there and founder coming up. We'll get 669 00:35:56,120 --> 00:35:59,040 Speaker 3: more venture discussions to have. We speak with FPV managing 670 00:35:59,040 --> 00:36:01,840 Speaker 3: partner West. We shall an evolution of AI investing. 671 00:36:02,120 --> 00:36:03,000 Speaker 7: This is Blueberg Tech. 672 00:36:08,520 --> 00:36:12,480 Speaker 2: Not all WI winners look like AI companies at first glance. 673 00:36:12,560 --> 00:36:15,800 Speaker 2: WeSC Chan has made a career betting on exactly that idea, 674 00:36:15,920 --> 00:36:18,680 Speaker 2: backing firms like Canva, whichs become one of the most 675 00:36:18,680 --> 00:36:23,600 Speaker 2: widely used AI design platforms. WeSC chan FPV managing partner 676 00:36:23,640 --> 00:36:25,400 Speaker 2: joins us now and you're in town for Human X, 677 00:36:25,440 --> 00:36:27,719 Speaker 2: which I'll be running over there shortly to speak to 678 00:36:27,760 --> 00:36:28,880 Speaker 2: anthropics Mike Krieger. 679 00:36:28,960 --> 00:36:30,279 Speaker 4: But that's kind of interesting, Like you or. 680 00:36:30,280 --> 00:36:32,440 Speaker 2: Susan of Eclipsed are just talking about that, they look 681 00:36:32,480 --> 00:36:36,320 Speaker 2: at those different domains how they'll be impacted by AI. 682 00:36:36,640 --> 00:36:38,719 Speaker 2: I guess for you a little more focused on software 683 00:36:39,239 --> 00:36:41,440 Speaker 2: and how that might be impacted by AI in a 684 00:36:41,480 --> 00:36:42,080 Speaker 2: positive way. 685 00:36:42,280 --> 00:36:44,239 Speaker 17: I think software is one area, but we focus on 686 00:36:44,320 --> 00:36:46,680 Speaker 17: so many different areas too. We have a company called 687 00:36:46,760 --> 00:36:50,920 Speaker 17: Performation Bio that's a drug discovery and development company, and 688 00:36:51,000 --> 00:36:53,239 Speaker 17: they focus on development. It's the only company we know 689 00:36:53,280 --> 00:36:56,719 Speaker 17: of that's using AI to predictlmentle trail results. They pick 690 00:36:56,840 --> 00:36:59,200 Speaker 17: drugs out, they buy drugs, and they've figured out using 691 00:36:59,239 --> 00:37:02,319 Speaker 17: AI that drug that we we grow corlage in your 692 00:37:02,360 --> 00:37:05,720 Speaker 17: knee to prevent new replacements will make it through clinical trial. 693 00:37:05,880 --> 00:37:07,439 Speaker 4: And so they're taking it through right now. 694 00:37:07,560 --> 00:37:09,840 Speaker 17: It literally does we grow corllage in your knees and 695 00:37:09,840 --> 00:37:11,680 Speaker 17: it's going to prevent new replacements. And think about this, 696 00:37:11,800 --> 00:37:13,799 Speaker 17: like friends that are skiers, friends that are runners can 697 00:37:13,800 --> 00:37:15,960 Speaker 17: get rid of having that peski knee problem when their 698 00:37:15,960 --> 00:37:18,160 Speaker 17: corlage goes and AI found the drug and they're helping 699 00:37:18,239 --> 00:37:19,359 Speaker 17: it predict through clinical trials. 700 00:37:19,400 --> 00:37:20,960 Speaker 4: So that's what we invest in things like that. 701 00:37:21,080 --> 00:37:24,200 Speaker 2: Well, see, you mind to reflect a little bit on Canva. 702 00:37:24,320 --> 00:37:27,239 Speaker 2: You know when we've spoken to various members of the 703 00:37:27,280 --> 00:37:31,719 Speaker 2: leadership team, they're adding products right that the offering is 704 00:37:31,760 --> 00:37:34,880 Speaker 2: widening and it's through AI. I think that's a pretty 705 00:37:34,880 --> 00:37:37,440 Speaker 2: fair summary of how they'd put it. But they are 706 00:37:37,520 --> 00:37:40,239 Speaker 2: growing and getting later stage and later stage. Just track 707 00:37:40,320 --> 00:37:40,840 Speaker 2: the journey. 708 00:37:41,040 --> 00:37:41,239 Speaker 15: Yeah. 709 00:37:41,239 --> 00:37:43,440 Speaker 17: I invested in Canva thirteen years ago and led their 710 00:37:43,480 --> 00:37:46,359 Speaker 17: Series A and most people think that Canva is a 711 00:37:46,360 --> 00:37:49,000 Speaker 17: design company, And the amazing thing is Canva is an 712 00:37:49,000 --> 00:37:51,520 Speaker 17: AI company today it is. I just saw a report 713 00:37:51,560 --> 00:37:53,879 Speaker 17: mail told me this that Hamber is the third most 714 00:37:53,920 --> 00:37:55,799 Speaker 17: access to way people access AI. And if you think 715 00:37:55,800 --> 00:37:58,080 Speaker 17: about it, every person under thirty five is using Canva 716 00:37:58,120 --> 00:38:00,720 Speaker 17: today and that's how they interact with AI. Chat jpt 717 00:38:00,800 --> 00:38:03,759 Speaker 17: is number one, Google's number two, Canvas number three and 718 00:38:04,040 --> 00:38:05,480 Speaker 17: I just use it the other day to go create 719 00:38:05,480 --> 00:38:06,880 Speaker 17: a presentation. I said, I want to go make this 720 00:38:06,920 --> 00:38:08,759 Speaker 17: presentation for one of my companies. I want to tell 721 00:38:08,760 --> 00:38:11,600 Speaker 17: the story about how they're changing the role of accounting, 722 00:38:11,800 --> 00:38:13,719 Speaker 17: and I used Camba to sort of think through that 723 00:38:13,719 --> 00:38:15,920 Speaker 17: presentation and use the AI tools to create that presentation. 724 00:38:15,960 --> 00:38:16,759 Speaker 4: It's incredible. 725 00:38:16,840 --> 00:38:19,320 Speaker 17: Right, So Campa has distribution and that's prot of the 726 00:38:19,320 --> 00:38:21,640 Speaker 17: biggest place where people are accessing AI today. 727 00:38:21,719 --> 00:38:25,760 Speaker 3: What about distributing to a wider, democratized set of investors, Wesley, 728 00:38:25,840 --> 00:38:28,080 Speaker 3: You've backed it from early days, but then everyone wonders 729 00:38:28,280 --> 00:38:29,839 Speaker 3: when IPOs are really going to get going. 730 00:38:30,480 --> 00:38:31,319 Speaker 4: Oh, that's up the mail. 731 00:38:32,640 --> 00:38:34,359 Speaker 17: We all want her to IPO and we all want 732 00:38:34,360 --> 00:38:35,920 Speaker 17: her to do very very well. But you know, and 733 00:38:36,000 --> 00:38:38,080 Speaker 17: when mel decides that that's the right time, we will 734 00:38:38,120 --> 00:38:39,759 Speaker 17: all cheer her on and support her and help her 735 00:38:39,800 --> 00:38:40,239 Speaker 17: ring the bell. 736 00:38:40,920 --> 00:38:43,560 Speaker 3: And so when we're thinking about those liquidity moments, you're 737 00:38:43,640 --> 00:38:46,360 Speaker 3: then thinking about how you allocate recently raised funds into 738 00:38:46,640 --> 00:38:49,400 Speaker 3: the next generation of canvas. You're looking at how you're 739 00:38:49,440 --> 00:38:54,200 Speaker 3: growing future needs. But where are your limits? Where is 740 00:38:54,239 --> 00:38:56,600 Speaker 3: it that you catch attention right now? Because it feels 741 00:38:56,600 --> 00:38:58,960 Speaker 3: as though AI is disrupting every single industry group at 742 00:38:59,000 --> 00:39:00,800 Speaker 3: a rate that we just cannot comprehend. 743 00:39:01,680 --> 00:39:05,400 Speaker 17: Yeah, it's incredible how it's affecting everything. We just did 744 00:39:05,440 --> 00:39:08,160 Speaker 17: a company called Strand Therapeutics that uses AI to predict 745 00:39:08,239 --> 00:39:11,279 Speaker 17: how to create cancer drugs using MR and A and 746 00:39:11,440 --> 00:39:13,560 Speaker 17: to help you know, cure versions of cancer that you know, 747 00:39:13,600 --> 00:39:15,799 Speaker 17: we used to used to kill people. It's incredible, right, 748 00:39:15,840 --> 00:39:17,719 Speaker 17: and so you know companies like that. We have another 749 00:39:17,719 --> 00:39:20,720 Speaker 17: company in Vada that's found multiple drugs their next drug 750 00:39:20,800 --> 00:39:23,520 Speaker 17: that they're that they're developing, and they use AI to 751 00:39:23,600 --> 00:39:26,719 Speaker 17: figure out how to find drugs out of natural ingredients. 752 00:39:27,760 --> 00:39:29,120 Speaker 4: Like yeah, yeah, there's. 753 00:39:28,920 --> 00:39:30,759 Speaker 3: A lot of biotech here, there's there's a lot of 754 00:39:30,800 --> 00:39:34,120 Speaker 3: medical application. Why are you the right person to seek 755 00:39:34,160 --> 00:39:37,600 Speaker 3: out which of these startups in the medical area is 756 00:39:37,680 --> 00:39:40,400 Speaker 3: the right one? I mean, your background is unique, and 757 00:39:40,440 --> 00:39:42,960 Speaker 3: it's very much deeply intertwined with Google and with what 758 00:39:43,000 --> 00:39:44,200 Speaker 3: we think of as as software. 759 00:39:44,960 --> 00:39:45,200 Speaker 4: Yeah. 760 00:39:45,280 --> 00:39:47,240 Speaker 17: You know, when I was one of the founding partners 761 00:39:47,239 --> 00:39:49,080 Speaker 17: of Google Ventures, and one of the great things is 762 00:39:49,080 --> 00:39:51,480 Speaker 17: that Google has put billions of dollars into the healthcare 763 00:39:51,520 --> 00:39:54,040 Speaker 17: companies and medical companies and like science companies. And I 764 00:39:54,120 --> 00:39:55,640 Speaker 17: got to help start that team. So I've been doing 765 00:39:55,680 --> 00:39:57,719 Speaker 17: it for sixteen years. And then we can find these 766 00:39:57,719 --> 00:39:59,799 Speaker 17: great companies like in Vada or Strand. It's such a 767 00:39:59,840 --> 00:40:02,439 Speaker 17: not obvious use of AI. Right, everybody's talking about AI 768 00:40:02,520 --> 00:40:06,200 Speaker 17: for presentations, or AI for legal or AI for whatever else, 769 00:40:06,239 --> 00:40:08,319 Speaker 17: and we're thinking about it. How do we cure life 770 00:40:08,360 --> 00:40:10,760 Speaker 17: threatening diseases using AI? And that's a very non obvious 771 00:40:10,760 --> 00:40:11,480 Speaker 17: contrary and insight. 772 00:40:11,920 --> 00:40:15,480 Speaker 2: These companies, where geographically are they concentrated. 773 00:40:15,760 --> 00:40:16,920 Speaker 4: They're everywhere in the world, that's right. 774 00:40:16,920 --> 00:40:20,560 Speaker 17: You know, Beta is in Boulder, Colorado, Strand is in Boston, 775 00:40:20,880 --> 00:40:22,600 Speaker 17: Formation is in New York. So we don't care where 776 00:40:22,600 --> 00:40:24,200 Speaker 17: the company is as long as we're working on something 777 00:40:24,200 --> 00:40:25,839 Speaker 17: that changes the world significantly. 778 00:40:26,160 --> 00:40:30,879 Speaker 3: What about globally, Wesley, how are we faring US ecosystem 779 00:40:30,920 --> 00:40:31,759 Speaker 3: versus everywhere else? 780 00:40:32,760 --> 00:40:34,640 Speaker 17: You know, you know a lot of people talk about China, 781 00:40:34,840 --> 00:40:36,640 Speaker 17: but you know all of the companies that we're working 782 00:40:36,640 --> 00:40:39,200 Speaker 17: with are using US models and using you know, the 783 00:40:39,239 --> 00:40:41,440 Speaker 17: models behind that we're developing here. So I think the 784 00:40:41,520 --> 00:40:43,839 Speaker 17: US still has a fantastic lead, and you know, we're 785 00:40:44,160 --> 00:40:46,759 Speaker 17: we're heavily invested here in the US. We have a 786 00:40:46,800 --> 00:40:49,440 Speaker 17: few global companies Canvas obviously in Australia, right, but you 787 00:40:49,440 --> 00:40:51,680 Speaker 17: know they're also using some of the models come developed 788 00:40:51,680 --> 00:40:53,359 Speaker 17: in the US. They're using their own model that they're 789 00:40:53,360 --> 00:40:55,799 Speaker 17: building in Australia as well, with a team they bought 790 00:40:55,800 --> 00:40:58,919 Speaker 17: called leonot Ai. And you know, I think you see 791 00:40:58,920 --> 00:40:59,920 Speaker 17: this talent everywhere. 792 00:40:59,640 --> 00:41:00,000 Speaker 4: In the world. 793 00:41:00,520 --> 00:41:02,520 Speaker 2: Just if we could just ending a little bit on 794 00:41:02,600 --> 00:41:05,080 Speaker 2: Human X. You know your reflection of the first twenty 795 00:41:05,120 --> 00:41:08,000 Speaker 2: four hours. You know, it was very interesting to be 796 00:41:08,040 --> 00:41:10,560 Speaker 2: there last night. I was on stage with doctor fay Felee. 797 00:41:11,440 --> 00:41:14,120 Speaker 2: People very engaged with what she had to say about 798 00:41:14,200 --> 00:41:16,720 Speaker 2: world models as opposed to language models. 799 00:41:16,880 --> 00:41:17,840 Speaker 4: What do you want to get out of this? 800 00:41:18,760 --> 00:41:21,160 Speaker 17: I think that there's such an exposure to so many 801 00:41:21,200 --> 00:41:23,680 Speaker 17: people's ideas, Like no one, no one sat there and 802 00:41:23,719 --> 00:41:25,239 Speaker 17: thought that on the mobile phone and we go back 803 00:41:25,239 --> 00:41:26,839 Speaker 17: to a mobile phone fifteen years ago when it started 804 00:41:26,880 --> 00:41:28,520 Speaker 17: investing right, no one sat there and said like, oh, 805 00:41:28,600 --> 00:41:30,400 Speaker 17: we use a mobile phone in the book of car Right, 806 00:41:30,480 --> 00:41:31,840 Speaker 17: And if you think about what a I will be 807 00:41:31,840 --> 00:41:33,439 Speaker 17: ten years from now, you don't know what the heck 808 00:41:33,520 --> 00:41:35,680 Speaker 17: is going to do. Right. It might it might care cancer, 809 00:41:35,719 --> 00:41:38,080 Speaker 17: it might go do something. The imagination's wonderful, and Human 810 00:41:38,200 --> 00:41:40,359 Speaker 17: X is bringing all those people together to figure out 811 00:41:40,600 --> 00:41:42,279 Speaker 17: where we can use AI for things that we never 812 00:41:42,360 --> 00:41:43,480 Speaker 17: imagined ten years ago. 813 00:41:43,880 --> 00:41:48,360 Speaker 2: Wesley Chan of FPV Ventures, thank you very much. The 814 00:41:48,400 --> 00:41:50,759 Speaker 2: crew of Artemis two is on their way home. The 815 00:41:50,840 --> 00:41:54,480 Speaker 2: four astronauts broke the record for distance traveled by humans 816 00:41:54,800 --> 00:41:57,600 Speaker 2: into deep space two hundred and fifty two thousand, seven 817 00:41:57,680 --> 00:42:00,319 Speaker 2: hundred and fifty six miles and saw the far side 818 00:42:00,320 --> 00:42:03,280 Speaker 2: of the lunar surface with their own eyes. At around 819 00:42:03,280 --> 00:42:06,240 Speaker 2: six forty three pm New York time Monday, the Orion 820 00:42:06,320 --> 00:42:10,160 Speaker 2: spacecraft slipped behind the Moon and out of radio contact 821 00:42:10,200 --> 00:42:13,200 Speaker 2: with Houston. This was the moment just before. 822 00:42:13,960 --> 00:42:18,399 Speaker 4: All of you down there on Earth and around Earth. 823 00:42:18,520 --> 00:42:20,720 Speaker 4: Now we love you from the month. 824 00:42:23,680 --> 00:42:24,440 Speaker 8: Houston copy. 825 00:42:24,760 --> 00:42:26,000 Speaker 5: We'll see on the other side. 826 00:42:27,600 --> 00:42:30,719 Speaker 2: After about forty minutes, the Iran caps your re established 827 00:42:30,840 --> 00:42:32,840 Speaker 2: contact here Sin. 828 00:42:32,880 --> 00:42:35,560 Speaker 11: We have you the same, and it is so great 829 00:42:35,600 --> 00:42:36,080 Speaker 11: to hear. 830 00:42:35,960 --> 00:42:36,760 Speaker 4: From Earth again. 831 00:42:38,440 --> 00:42:41,720 Speaker 2: The crew has been sharing their lunar observations with NASA, 832 00:42:41,800 --> 00:42:46,920 Speaker 2: received the congratulations from President Trump, and witnessed a solar eclipse. 833 00:42:46,960 --> 00:42:49,719 Speaker 2: It's the closest humans have been to the Moon in 834 00:42:49,800 --> 00:42:51,040 Speaker 2: more than fifty years, Karra. 835 00:42:51,360 --> 00:42:55,040 Speaker 3: Extraordinary and look it's the closest they've been. 836 00:42:55,320 --> 00:42:56,719 Speaker 7: They want to get even closer. 837 00:42:57,040 --> 00:42:59,000 Speaker 3: And this is why this mission in many ways is 838 00:42:59,040 --> 00:43:01,399 Speaker 3: sort of address rehearse, like what are we hearing about 839 00:43:01,400 --> 00:43:02,640 Speaker 3: the science, the way in which we're going to get 840 00:43:02,680 --> 00:43:03,480 Speaker 3: people back on it. 841 00:43:04,239 --> 00:43:06,960 Speaker 2: Yeah, early as twenty twenty eight, you know, to get 842 00:43:06,960 --> 00:43:09,840 Speaker 2: a human or astronaut landing mission and the dress rehearsal 843 00:43:09,840 --> 00:43:12,280 Speaker 2: because it tests the Orion spacecraft, the. 844 00:43:12,160 --> 00:43:13,360 Speaker 4: SLS launch system. 845 00:43:13,640 --> 00:43:16,000 Speaker 2: You know, that's why we DeCamp to Kennedy's Space Center 846 00:43:16,080 --> 00:43:16,640 Speaker 2: last week. 847 00:43:17,080 --> 00:43:20,960 Speaker 3: I mean it's been emotional and very reflective of these 848 00:43:20,960 --> 00:43:22,120 Speaker 3: astronauts in many ways. 849 00:43:22,120 --> 00:43:23,319 Speaker 7: But there's still more days to go. 850 00:43:24,440 --> 00:43:27,239 Speaker 2: Yeah, there is a geopolitical context of a race against China, 851 00:43:27,280 --> 00:43:28,880 Speaker 2: who wants to get to the moon in twenty thirty. 852 00:43:29,120 --> 00:43:32,080 Speaker 2: But for these three American astronauts and one Canadian is 853 00:43:32,200 --> 00:43:35,720 Speaker 2: feet of human engineering and human ability and the world 854 00:43:35,800 --> 00:43:38,720 Speaker 2: was watching millions of them on the live feeds last night. 855 00:43:38,719 --> 00:43:40,640 Speaker 7: And now continue to do so. Meanwhile. That does it 856 00:43:40,680 --> 00:43:42,040 Speaker 7: for this edition of Bloomberg Tech Ed. 857 00:43:42,800 --> 00:43:44,719 Speaker 2: Yeah, a lot to recap, a lot of breaking news, 858 00:43:44,760 --> 00:43:46,799 Speaker 2: a lot in the markets with or in Iran, and 859 00:43:46,800 --> 00:43:49,000 Speaker 2: that Intel Terra fab storry recap on the pod. 860 00:43:49,200 --> 00:43:51,480 Speaker 4: You know exactly where to find it. This is Bloomberg 861 00:43:51,520 --> 00:43:51,759 Speaker 4: Tech