Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: So we did talk about AI there with Kate a
Speaker 2: little bit in a broader conversation. It is a very
Speaker 2: big theme for us on this Tuesday. This says we
Speaker 2: are seeing shares of Nokia ADR soaring our news today
Speaker 2: on the news that Nvidia plans to make a one
Speaker 2: billion dollar equity investment in Nokia. It's an apparent vindication
Speaker 2: of the finished company's pivot from mobile networking kit into
Speaker 2: artificial intelligence by the sector's kingmaker. We've got all the details.
Speaker 1: And in Vidio and Video CEO Jensen Wong, he's the
Speaker 1: co founder, president CEO of Nvidia. He's sitting down right
Speaker 1: now with Justin Hothard, President and CEO of Nokia, along
Speaker 1: with Bloomberg Tech co host ed Ludlow Take it Away, Ed.
Speaker 3: Wow, fantastic, Thank you team, Jensen. I'll start with you
Speaker 3: if I may. I want to try and understand something
Speaker 3: you mentioned very briefly, which is the strategic importance of
Speaker 3: not just the equity state partnership on technology, and not
Speaker 3: just for Nvidia, but for America. Why are you moving
Speaker 3: into this domain?
Speaker 4: One?
Speaker 5: We announced a brand new platform for a new market.
Speaker 5: We've never been in and so that's number one. Number two,
Speaker 5: if we take advantage of this transition from general purpose
Speaker 5: computing to accelerated computing, from old types of all types
Speaker 5: of software to AI, we can take advantage of this
Speaker 5: transition of AI and six G for America to win
Speaker 5: back telecommunications again. It's been a long time since the
Speaker 5: American telecommunication network has been built on American technology.
Speaker 4: Way national security, I believe for.
Speaker 5: National security reasons, for economic reasons, our industry should be
Speaker 5: built on American technology. And for the very first time,
Speaker 5: we can do that. We have a brand new product
Speaker 5: line that takes advantage of computing, accelerated computing and AI,
Speaker 5: and we have a great partner to help us deal
Speaker 5: it with Nokia.
Speaker 3: The market reaction kind of speaks for itself. There was
Speaker 3: a time where Nokia was already looking to America. You've
Speaker 3: been in the role since April, But may I stop
Speaker 3: asking you what role the administration played in bringing you
Speaker 3: both together? If this is indeed a strategic priority, I.
Speaker 6: Don't think there was anything specific that the administration did
Speaker 6: other than they've created the environment to support innovation. I mean,
Speaker 6: Jensen's talked about manufacturing, but it's also about R and
Speaker 6: D and innovation and technology leadership. And if you think
Speaker 6: about where this world is going and all those incredible
Speaker 6: devices are going to be built on in video platforms, robotics,
Speaker 6: autonomous vehicles, augmented reality, virtual reality, we need a different
Speaker 6: kind of network in the future. And that's what we realized,
Speaker 6: and that's why we wanted to forge this partnership so
Speaker 6: that we're building a network leveraging AI for AI services
Speaker 6: and that's really the big change here.
Speaker 4: The technology is flowing both ways.
Speaker 3: I mean, what is it that you will be able
Speaker 3: to do with Nokia Jensen un't able to do on
Speaker 3: your own.
Speaker 5: Well, first of all, Nokia is in all of the
Speaker 5: world's base stations, and this air scale platform of Nokia's
Speaker 5: millions of base stations around the world. If our computers
Speaker 5: are not inside that base station doesn't help. It's no
Speaker 5: different than in videos tech computing platforms not inside a car,
Speaker 5: it doesn't help. And so the first thing is we
Speaker 5: need a partner to get us into the world's base stations.
Speaker 5: We also remember we're bringing AI to radio networks, AI
Speaker 5: to RAM so that we can make wireless tech communications
Speaker 5: a lot more efficient. Second, we're bringing AI for the radio,
Speaker 5: meaning on top of these radio networks and these telecommunication
Speaker 5: network we're going to be able to provide AI services,
Speaker 5: which is going to be able to make it easier
Speaker 5: for us to do robotics and autonomous vehicles and industrial
Speaker 5: automation and reach all of the different places around the world.
Speaker 5: That's kind of hard to deal with Wi Fi, cellular reads, everything,
Speaker 5: and so we now have this fabric that we can
Speaker 5: deploy AI computing services on top of it. It's going
Speaker 5: to be completely revolutionary in.
Speaker 3: Your world and in your market. Huawei is an influential player,
Speaker 3: not just in Europe. I think also about the Middle
Speaker 3: East and Africa. How important is the relationship with Nvidia
Speaker 3: to be able to counter, you know, what Huawei does
Speaker 3: in those markets.
Speaker 6: Yeah. Look, I think for us, one of the principles
Speaker 6: I've had with my team since coming in has been
Speaker 6: do what we can do that no one else can do,
Speaker 6: and that is air scale what we do with any
Speaker 6: RAND software, the software that runs on it that we're
Speaker 6: going to be putting on on the Nvidia ARC platform,
Speaker 6: that do what we can do well and partner with
Speaker 6: the best everywhere else. And this is a this is
Speaker 6: a clear opportunity to partner with the best, and by
Speaker 6: the way, that's where America and the Western world succeeds
Speaker 6: because we don't necessarily have one company doing everything like Huawei.
Speaker 6: We succeed because we partner aggressively. And you if you
Speaker 6: watch GTT today, it was hard to not find it
Speaker 6: obvious that you're partnering with everybody. But that's the advantage
Speaker 6: is this partnership. So we do what we do best,
Speaker 6: we let in Video do what they do best, and
Speaker 6: ultimately our customers win, and ultimately for America. I think
Speaker 6: America will win because there'll be more innovation faster.
Speaker 5: Nobody knows telecommunity locations better than Nokia. They've been at
Speaker 5: it for a long time. They're all over the world.
Speaker 5: And between our two partnerships, we know how wireless total communications.
Speaker 5: We have AI, and we have accelerated computing all in
Speaker 5: this partnership, and so all of that capability is going
Speaker 5: to be brought to bear for the next generation of
Speaker 5: six G and I think that's a this is a
Speaker 5: this is the capabilities we bring together, and this partnership
Speaker 5: is quite unique and informatible, inform formidable.
Speaker 3: Why was it important Jensen that Nvidia ends up with
Speaker 3: almost three percent of Nokia.
Speaker 4: What was the rationale behind that?
Speaker 5: The work that we're doing is so intensive and quite frankly,
Speaker 5: I was so optimistic about it and so excited about it,
Speaker 5: and that we wanted to invest in Nokia so that
Speaker 5: we could be part, you know, of this incredible success
Speaker 5: that we're creating together. And I got to tell you
Speaker 5: that that move was pretty genius.
Speaker 3: Once you say, that's not for me to come correct,
Speaker 3: what I'd observe is, you know, twenty five percent jump
Speaker 3: in the ADRs, what does that signal to you? You know?
Speaker 3: In video with respect Gensen, I've known to be about speed.
Speaker 3: Is that giving you a technology that you wouldn't otherwise have?
Speaker 3: Or and have you now a way of just moving faster?
Speaker 6: Yeah? It's both. I mean there's obviously you know, there's
Speaker 6: no way we're going to have in videos technology and
Speaker 6: accelerated computing. I mean, the Kuda software stack, all of
Speaker 6: the capabilities, even the fundamentals of what's in area. The
Speaker 6: software stack that in video is built is an accelerator
Speaker 6: for us. And then it's about speed because now we
Speaker 6: can innovate much faster. And for us, it's that shift
Speaker 6: into adding value in software and thinking more like a
Speaker 6: software company, or really not like a software company, like
Speaker 6: an application company that's going to use AI and AI
Speaker 6: models to continue to innovate and move faster. And I
Speaker 6: think the market recognizes that this is the kind of
Speaker 6: innovation that this industry is needed. Look, this industry has
Speaker 6: a history. Three G. We were building better voice networks
Speaker 6: when the Internet was getting started. Four G, five G
Speaker 6: we were building data networks behind where the market was.
Speaker 6: And today five G when you look at it globally,
Speaker 6: is still only partially deployed. So as you look ahead,
Speaker 6: in order to innovate, got to move much faster, and
Speaker 6: we need to enable our customers to have different and
Speaker 6: better technology.
Speaker 5: And with this partnership, all of a sudden, speaking of speed,
Speaker 5: we're in Blackwell today. It's going to go to Reuben,
Speaker 5: it's going to go Findman, and it's going to go
Speaker 5: on a clip that basically is at the speed of light.
Speaker 4: And I'm going to ask you to clarify something. Jensen.
Speaker 4: You showed a slide.
Speaker 3: Behind you five hundred billion dollars over what I think
Speaker 3: illustrated six financial quarters, but twenty million Blackwell five financial quarters,
Speaker 3: five financial quarters does that figure include networking. We know
Speaker 3: it doesn't include China because it seemed to be technically
Speaker 3: above consensus, right, But you seem to be suggesting that
Speaker 3: there is near term actually an acceleration beyond what you
Speaker 3: were expecting.
Speaker 5: All of that was only data center, justin That's the
Speaker 5: amazing thing. All of that is only data center. Today
Speaker 5: we are now several new platforms, the Nvidia Drive Hyperium platform,
Speaker 5: our Arc platform, our Quantum platform. None of that is
Speaker 5: included in that half a trillion dollars. No networking, no
Speaker 5: networking whatsoever. Well, that's data centers networking and Vida networking
Speaker 5: for data centers, but not wireless networking, not wireless telecommunications.
Speaker 3: When do we see a real world manifestation of the
Speaker 3: work that you're both getting to do together.
Speaker 6: Yeah, there's there's work going already. You can see a
Speaker 6: demo actually at the booth here in GtC. You can.
Speaker 6: You'll also see customer trials early next year, and then
Speaker 6: we think in full commercial production in twenty seven. And
Speaker 6: you know the great thing about the partnership with Jensen
Speaker 6: is I know he'll be pushing me to go faster,
Speaker 6: which and I'll be pushing his team to go faster
Speaker 6: and together that means that we can get to market
Speaker 6: as soon as as soon as practical for our customer.
Speaker 5: ARC is backwards compatible with air Scale, right, and all
Speaker 5: of those millions of base stations could be upgraded to
Speaker 5: six G and AI.
Speaker 3: On six G though right, like we're grawing standards just
Speaker 3: as simple, Yes or no question. Really is the six
Speaker 3: G timeline accelerated because of this partnership.
Speaker 6: I think it is because what you can actually do
Speaker 6: now is you know exactly to what Jensen said you
Speaker 6: can you can deploy with ARC, and then if something happens,
Speaker 6: or the standard evolves, or you know, or there's there's change,
Speaker 6: it'll just be a software model update that we deploy
Speaker 6: in applications. It's a completely different model than what we're
Speaker 6: used to back in the days of deploying these complex
Speaker 6: integrated legacy appliances. It's general purpose accelerated computing. And that's
Speaker 6: why we think it's so compelling. If the standards change,
Speaker 6: you got to go fix a chip. If the standards change,
Speaker 6: you're justin. I just upgrade the software, the Kuda software.
Speaker 6: That's the amazing thing, Jensen.
Speaker 4: You are traveling onwards now to Asia.
Speaker 3: I don't know what your schedule is for the jet
Speaker 3: and I don't know if you and the President will
Speaker 3: be at the same place at the same time. He
Speaker 3: seemed to think you would be. But the main point
Speaker 3: is is that you're here in Washington, DC. We're a
Speaker 3: few blocks from the White House. You called it the
Speaker 3: AI super Bowl. Others called it that too, But everyone
Speaker 3: is inferring from this that this was about all of
Speaker 3: the things we talked about all year, that you want
Speaker 3: to be closely aligned with this administration and while in Asia,
Speaker 3: that there is something that the President needs to work
Speaker 3: on in the context of China trade negotiations. Whether you
Speaker 3: get to meet him or not, what is it that
Speaker 3: you need the president to do. From Nvidia to accelerate
Speaker 3: on its plans.
Speaker 5: We need the president to do what's right for America,
Speaker 5: and I'm certain he's going to go do that. The
Speaker 5: reason why we're here is because technology is now so
Speaker 5: important in politics and geopolitics. It is the single most
Speaker 5: important industry in America. It is our national treasure, and
Speaker 5: it's important for us to make sure that Washington, DC
Speaker 5: and the policy makers and all of the people who
Speaker 5: serve our country to make it great understands the technology
Speaker 5: as it stands today and where we're going to go
Speaker 5: and the companies that matter to us, so that we
Speaker 5: can make America great. And so that was the primary reason. Well,
Speaker 5: first of all, whenever there's an opportunity to see the President,
Speaker 5: I always love that he's incredibly engaging, He always learning,
Speaker 5: and he wants to help America win. He wants America
Speaker 5: to win.
Speaker 3: This is my final question. I was trying to interpret
Speaker 3: what you were saying. It was a detailed presentation, but
Speaker 3: you talked about how AI is now worth paying for.
Speaker 3: You talked about the end or not of Moore's law,
Speaker 3: depending on your point of view, but the need to
Speaker 3: scale to meet demand. Was that you saying we are
Speaker 3: not in an AI bubble.
Speaker 5: I don't believe we're in an AI bubble, and the
Speaker 5: reason for that is we're going through a natural transition
Speaker 5: from an old computing model based on general purpose computing
Speaker 5: to accelerated computing. We also know that AI has now
Speaker 5: become good enough because of reasoning capability, research capabilities, its
Speaker 5: ability to think. It's now generating tokens and now generating
Speaker 5: intelligence that's worth paying for, to the point where I'm
Speaker 5: paying lots of it. Cursor is all over in video.
Speaker 5: Every single one of our engineers use it. We pay
Speaker 5: lots and lots of money for it, and we're delighted
Speaker 5: to do it. And curser' is just one of the applications.
Speaker 4: You know, what is it?
Speaker 5: Eleven eleven eleven tech I forget. But anyways, all of
Speaker 5: these different AI models that we're using, we're using plenty
Speaker 5: of services and paying, paying, happily doing.
Speaker 3: Justin Hotard, the Nokia CEO, Jensen Wang, Nvidia CEO, and
Speaker 3: our host here in Washington, d C, thank you both
Speaker 3: very much.
Speaker 4: Back to you.
Speaker 2: That of course was Bloomberg, co host of b Tech
Speaker 2: Ed Ludlow there at the GtC Nvidia event in Washington,
Speaker 2: d C, along with the CEO of Nvidia Jensen Wang,
Speaker 2: and of course also there with the CEO of Nvidia,
Speaker 2: the