WEBVTT - AMD Forecast Fails to Impress Investors

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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<v Speaker 1>from coast to coast with Caroline Hyde in New York

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<v Speaker 1>and Vla low in sent Frances Go.

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<v Speaker 2>This is Bloomberg Tech coming up. AMD shares sync after

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<v Speaker 2>a sales forecast that underwhelms investors, the chip maker perhaps

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<v Speaker 2>not making the aim roads some on Wall Street had

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<v Speaker 2>hoped for.

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<v Speaker 3>Plus, the sell off continues across tech markets as fears

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<v Speaker 3>of AI disruption they take hold.

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<v Speaker 4>Following Anthropics new automation model.

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<v Speaker 2>And Bloomberg reports Nvidia is nearing a deal to invest

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<v Speaker 2>twenty billion dollars in Open AI, with the AI company

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<v Speaker 2>looking to raise up to one hundred billion dollars in

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<v Speaker 2>its new funding round. AMD is ugly right now, the

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<v Speaker 2>stockdown fifteen percent. It is on track for its biggest

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<v Speaker 2>drop since October of twenty eight. That is how severe

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<v Speaker 2>this selloff is. Let's get to the numbers. It's projecting

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<v Speaker 2>sales in the period roughly nine point eight billion dollars

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<v Speaker 2>plus or minus three hundred million dollars. That was above

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<v Speaker 2>consensus estimates. But go into your Bloomberg terminal and you'll

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<v Speaker 2>see at the high end of the ranger's forecast. Many

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<v Speaker 2>expected sales to be ten billion dollars. Anyway, then there's

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<v Speaker 2>the China issue. They had China revenues, but it weighed

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<v Speaker 2>on Margins AMD's results. Let's react, Congensubanni, a Bloomberg Intelligence

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<v Speaker 2>who in his React piece in his research you talk

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<v Speaker 2>about the impact of China. Good. We recognize some revenues.

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<v Speaker 2>It impacted Margins. You talk about the CPUGPU ramp that's

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<v Speaker 2>not coming until the second half of the year. Take

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<v Speaker 2>it from that.

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<v Speaker 5>Yeah, I mean, fundamentally there was nothing wrong in this report.

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<v Speaker 5>Is just when you take out the China revenue was

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<v Speaker 5>a three ninety million and one hundred million for the guide.

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<v Speaker 5>The beat magnitude was really modest, and that didn't hit

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<v Speaker 5>at part of the lofty expectations.

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<v Speaker 6>Again, most of this was known.

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<v Speaker 5>So very surprised to see a stock reaction that we're

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<v Speaker 5>seeing today.

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<v Speaker 3>So the surprise what in terms of what enthusiasm had

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<v Speaker 3>been baked in that shouldn't have been. How far had

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<v Speaker 3>the market moved past already the bullish.

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<v Speaker 4>Tone that we get time and time again from Lisa Su.

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<v Speaker 5>Yeah, it's about it's about now waiting about the next

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<v Speaker 5>GPU inflection point, which is which we knew is not

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<v Speaker 5>going to happen in this quarter or next quarter.

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<v Speaker 2>It is for second half twenty six.

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<v Speaker 5>Remember, there has also been that noise in the market

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<v Speaker 5>around it delays with their ramp of the four hundred

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<v Speaker 5>and fifty series. None of this was shown in this report.

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<v Speaker 5>I mean, we don't expect significant upside right now because

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<v Speaker 5>most of their customers are really waiting to pick up

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<v Speaker 5>that server revel Helios Raax.

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<v Speaker 2>Solution which dollar terms right, sequential decline in revenues maybe,

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<v Speaker 2>and no one wants to hear that, right, And we'll

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<v Speaker 2>wait until the rest of the year. Second half the

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<v Speaker 2>year can mean June, it can mean December. Who knows

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<v Speaker 2>a big piece of M and A in your industry?

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<v Speaker 2>Texas Instruments buying Silicon Lab seven point five billion dollars.

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<v Speaker 2>What do we need to know about this in the

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<v Speaker 2>analog space?

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<v Speaker 5>Yeah, this is surprising. The last time they did a

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<v Speaker 5>deal like this was in twenty eleven. Strategically this fits

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<v Speaker 5>will they add a missing piece which was wireless connectivity

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<v Speaker 5>in TI's portfolio. But more important the implications are financially.

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<v Speaker 5>The key thing you'll remember here Texas Instrument states on

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<v Speaker 5>free cash deliverability. So this management has said will not

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<v Speaker 5>impact that free cash flow, will not impact that dividend,

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<v Speaker 5>and they'll be able to absorb the capacity in the

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<v Speaker 5>capex that they've spent over the last three to five years.

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<v Speaker 2>Quinjinspani Bloomberg Intelligence and All Things Ship. We have breaking

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<v Speaker 2>news on Sara Bras Cerebra Systems raising a one billion

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<v Speaker 2>dollar Series H at a twenty three billion dollar valuation.

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<v Speaker 2>This is a company that we've been tracking closely. Will

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<v Speaker 2>they won't they IPO? Well, right now they're raising around

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<v Speaker 2>a billion dollars at a premium valuation of twenty three

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<v Speaker 2>billion dollars. We'll get more carr as we get that

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<v Speaker 2>throughout this day and this week. There is plenty more

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<v Speaker 2>news hit me with it.

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<v Speaker 3>There is because those fears around AI just they're continuing

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<v Speaker 3>to ripple through the markets.

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<v Speaker 4>At the moment.

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<v Speaker 3>Ed Anthropic it accelerated the sell off in software stocks

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<v Speaker 3>after it rolled out that new AI automation tool. Namba

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<v Speaker 3>Gequity supporter Carmen Ryanikey has been.

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<v Speaker 4>Following this story. I mean the numbers are Goganshman.

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<v Speaker 3>I think it's somewhere like two trillion dollars been wiped

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<v Speaker 3>off that Gold and SAX Software index more broadly since

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<v Speaker 3>its highes.

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<v Speaker 4>But what can stop the rot right now? Because this

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<v Speaker 4>has gone global? You know, that's such a great question.

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<v Speaker 7>And we're really seeing such a broad sort of reaction

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<v Speaker 7>to the software stop. I mean, we know that software

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<v Speaker 7>has been beaten down. We're seeing more you know, sort

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<v Speaker 7>of stocks kind of join in the fray off of

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<v Speaker 7>this latest anthropic tool. But it's also kind of spreading

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<v Speaker 7>into the hardware stocks. We're seeing in video down, you know,

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<v Speaker 7>Google down. Interestingly, Microsoft is up a little bit today,

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<v Speaker 7>sort of rebounding I think from a selloff from its

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<v Speaker 7>earnings report, but it has spread even into the European

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<v Speaker 7>markets and others as well, so it looks a little

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<v Speaker 7>bit like a washout. I think I have heard investors

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<v Speaker 7>start to say that maybe this is a place to

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<v Speaker 7>start nibbling. You know, there could be really a rally

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<v Speaker 7>if software sells off too much. You know, many stocks

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<v Speaker 7>in the index are in over sold territory, so we

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<v Speaker 7>could see you know, some rebound, some reinvigoration in that trade.

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<v Speaker 7>I think investors are really just sort of thinking, is

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<v Speaker 7>it worth trying to catch a falling knife?

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<v Speaker 2>Colmin bring us some of the action of today Wednesday session,

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<v Speaker 2>right because, like to be fair to our audience, this

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<v Speaker 2>is a conversation we had yesterday. It is a multi

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<v Speaker 2>day story that's playing out. What's new in the market

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<v Speaker 2>this morning and what are we looking for next?

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<v Speaker 7>Yeah, I think that there are multiple things going on here.

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<v Speaker 7>So we're not only seeing you know, this pressure on software,

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<v Speaker 7>but we've had a couple of few earnings reports that

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<v Speaker 7>have stumbled that I think are adding. So Microsoft up

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<v Speaker 7>a little bit today, but that report, you know, injected

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<v Speaker 7>some jitters into the market.

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<v Speaker 4>And also AMD as well.

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<v Speaker 7>You know, it really showed that even if you have

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<v Speaker 7>a pretty solid guidance, it might just not be enough

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<v Speaker 7>for investors to continue to buy your stocks. So we're

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<v Speaker 7>seeing that as well. And you know, coming up we

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<v Speaker 7>have Google report or Alphabet reporting tonight, we have Amazon tomorrow.

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<v Speaker 7>So there are just a lot of catalysts that are

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<v Speaker 7>coming into the market right now that are shaking investors

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<v Speaker 7>confidence in the sector.

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<v Speaker 3>Of course, many pinpointed Anthropics legal offering, but we saw

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<v Speaker 3>Google out with its gaming offering that had seen a

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<v Speaker 3>lot of hit to some of the gaming software names.

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<v Speaker 3>But I'm also interested in we're a public market identifying

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<v Speaker 3>show right now, but private markets, in particular the debt markets,

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<v Speaker 3>we're seeing them roiled as well, and it's impacting certain

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<v Speaker 3>pea houses exactly.

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<v Speaker 7>Yeah, So there's just been a major softfare as well. This,

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<v Speaker 7>I mean, this idea of contagion I think is huge,

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<v Speaker 7>right and you know, the pain here from software spreading

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<v Speaker 7>into all these other parts, you know, not just equities,

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<v Speaker 7>is really prescient right now. So until there's sort of

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<v Speaker 7>this idea that there can be a rebound, I think

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<v Speaker 7>it's it's likely that we see that continue to spread

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<v Speaker 7>and investors sort of continue to question what's next for

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<v Speaker 7>the sector, especially if AI is going to eat the

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<v Speaker 7>lunch of these companies.

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<v Speaker 2>And by the way, guys brace earnings is still happening, right, So,

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<v Speaker 2>like there's all this news flow and there's market moves

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<v Speaker 2>on on a sort of macro concern about AI labs

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<v Speaker 2>eating the lunch of software companies. Alphabet's going to come

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<v Speaker 2>out and it's going to tell us about how it's doing.

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<v Speaker 2>I mean, how does that function into your week? Fit

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<v Speaker 2>into your week? Sorry, calm and the earning story.

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<v Speaker 7>I mean, they're going to be huge. I think the

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<v Speaker 7>thing that we're looking at the most for Alphabet and

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<v Speaker 7>Amazon are these cloud numbers. And that's going to be

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<v Speaker 7>really important because that's where we saw Microsoft stumble. So

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<v Speaker 7>that's what I'm going to be really laser focused on

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<v Speaker 7>to see. I mean, obviously all of these businesses are different,

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<v Speaker 7>there are other components at play with both Alphabet and

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<v Speaker 7>Microsoft or sorry hands Amazon, but you know the cloud

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<v Speaker 7>figure is going to be absolutely the most important thing

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<v Speaker 7>and could really move these stocks in either direction going forward.

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<v Speaker 2>Bluomo's come rhinicky all over the software space. Thank you

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<v Speaker 2>very much. Earnings again, shares of Uber. This is so interesting.

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<v Speaker 2>We're down three percent now in the pre market. We

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<v Speaker 2>kind of swung to a gain. We've been down like

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<v Speaker 2>nine percent in the pre market. I'd call this a

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<v Speaker 2>mixed bag. The company posted a weak profit outlook and

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<v Speaker 2>announced a new CFO with a focus on a robotaxi

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<v Speaker 2>future and new markets for robotaxi. Bluebos Natalie Lung covers

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<v Speaker 2>consumer apps, theog economy, and increasing the robotaxi. Where do

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<v Speaker 2>you want to start? Like, I think, let's go with

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<v Speaker 2>the financials, right, the earnings. They gave this a justed

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<v Speaker 2>EPs forecast. Ebit Dar forecast that appeared light, but actually

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<v Speaker 2>management that explained some of that already just explain.

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<v Speaker 8>Yes, so the EPs outlook for first quarter came in

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<v Speaker 8>a bit light. That could be a result of a

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<v Speaker 8>lot of their new product initiatives, let's say the low

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<v Speaker 8>costs shuttle product at airports and even the high end

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<v Speaker 8>you know, premium reserved rise at airports. Sort of these

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<v Speaker 8>new products not yet yeuring the return that they're hoping

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<v Speaker 8>to see, but they're still hoping that would sort of

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<v Speaker 8>expand towards this year. That said, like the fund mentors,

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<v Speaker 8>the demand underlying demand, especially in the US where they

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<v Speaker 8>have some of their most profitable markets, is very healthy.

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<v Speaker 8>They think grow through accelerate there as some of the

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<v Speaker 8>risks we saw last year, like high insurance costs, they

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<v Speaker 8>think that will sort of abate this year.

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<v Speaker 3>And growth bookings can be up to fifty three and

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<v Speaker 3>a half billion dollars for the current fiscal. Call to

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<v Speaker 3>Natalie Donokles with Shahi mainly trying to talk up so

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<v Speaker 3>the healthier pricing, what about this new CFO, what about

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<v Speaker 3>the focus on robotaxi from him.

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<v Speaker 8>It's interesting they appointed that they promoted Pilaji Christiaan murmurthy

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<v Speaker 8>to the role of CFO. He's one of the more outspoken,

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<v Speaker 8>tartomous bos among the leadership. He's always on X defending

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<v Speaker 8>Uber's AV strategy, and so we'll definitely see Uber double

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<v Speaker 8>down on that sort of narrative, you know, trying to

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<v Speaker 8>combat what it caused misconceptions among Wall Street bears on

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<v Speaker 8>how it's got to you know, facilitate and support the

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<v Speaker 8>ecosystem rather than completely be disrupted by rivals like Tesla

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<v Speaker 8>or Weimo.

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<v Speaker 3>And where Mo they partner with often as well, Natalie Lung,

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<v Speaker 3>We appreciate the breakdown and talking of Avis. The Senate

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<v Speaker 3>Committee on Commerce, Science, and Transportation is holding a hearing

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<v Speaker 3>on the future of self driving cars right now to

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<v Speaker 3>assess existing autonomous vehicle regulations. Of course, this is as

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<v Speaker 3>the race with China to lead the future transportation technology

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<v Speaker 3>heats up. Witnesses are from Tesla, from Weimo and others

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<v Speaker 3>they're participating. If you want to follow ono, just go

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<v Speaker 3>to Live go on the Bloomberg terminal D.

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<v Speaker 2>That's Tesla's Lars Maravi on the on the screen right

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<v Speaker 2>there will track the headlines coming up. Jessica Lujim from

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<v Speaker 2>the Competitive Enterprise Institute joins us to talk about antitrust

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<v Speaker 2>concerns from a Netflix Warner Brothers tie up. We have

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<v Speaker 2>more on that in a moment. AMD sell off accelerated

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<v Speaker 2>in the last few minutes at one point down sixteen percent,

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<v Speaker 2>already on track for its biggest decline since October twenty eighteen.

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<v Speaker 2>A forecast for sales in the current period that at

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<v Speaker 2>the high end of estimates was disapp pointing, but also

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<v Speaker 2>a sequential drop in revenues. And we are waiting on

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<v Speaker 2>this big GPU and server design moment that isn't coming

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<v Speaker 2>until the second half of this year. This is one

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<v Speaker 2>we're going to watch for the hop This is Bloomberg Tech.

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<v Speaker 9>This deal keeps one of the most iconic Hollywood studios

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<v Speaker 9>healthy and competitive. Warner and Netflix together will create value

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<v Speaker 9>for consumers, more opportunities for the creative community, and more

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<v Speaker 9>American jobs.

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<v Speaker 3>Netflix co CEO too surrounders there testifying with four lawmakers

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<v Speaker 3>about the company's plan to buy Warner Brothers streaming and

0:11:39.960 --> 0:11:43.400
<v Speaker 3>studio divisions. Surandos also said yesterday that the deal would

0:11:43.400 --> 0:11:47.120
<v Speaker 3>give streaming consumers more for less, noting the eighty percent

0:11:47.120 --> 0:11:50.800
<v Speaker 3>of Netflix subscribers also pay for HBO Max currently owned

0:11:50.800 --> 0:11:53.719
<v Speaker 3>by Warner Brothers. Let's talk through the anti trust concerns

0:11:54.520 --> 0:11:57.520
<v Speaker 3>with Jessica Manujin, director of the Central of Technology and

0:11:57.520 --> 0:11:58.080
<v Speaker 3>Innovation at the.

0:11:58.040 --> 0:11:59.240
<v Speaker 4>Competitive Enterprise Institute.

0:11:59.320 --> 0:12:03.000
<v Speaker 3>Jessica, you've actual, we've testified before Congress about streaming competition

0:12:03.440 --> 0:12:06.040
<v Speaker 3>in previous times. So what did you make of Ted

0:12:06.040 --> 0:12:08.439
<v Speaker 3>Sarandels and his argument that this is going to give

0:12:08.520 --> 0:12:10.760
<v Speaker 3>more consumers more to them for less.

0:12:12.400 --> 0:12:14.960
<v Speaker 10>You know, I think you can buy it. There's so

0:12:15.080 --> 0:12:18.920
<v Speaker 10>much overlap in people who maintain a Netflix subscription and

0:12:19.040 --> 0:12:22.760
<v Speaker 10>also in HBO subscription. The companies have talked about how

0:12:22.920 --> 0:12:25.440
<v Speaker 10>they would be willing to combine those and offer those

0:12:25.440 --> 0:12:27.600
<v Speaker 10>at a lower price. I think he said as much

0:12:27.640 --> 0:12:30.960
<v Speaker 10>in the hearing yesterday. So there are competitive concerns that

0:12:31.000 --> 0:12:33.439
<v Speaker 10>remain for some people, but I think certainly there are

0:12:33.559 --> 0:12:36.920
<v Speaker 10>efficiencies in overlap. Because the most of this merger is

0:12:37.200 --> 0:12:40.480
<v Speaker 10>a vertical merger. There's pieces that one company doesn't have

0:12:40.559 --> 0:12:42.000
<v Speaker 10>that the other one does. They're going to fit them

0:12:42.040 --> 0:12:45.320
<v Speaker 10>together and that could be substantial cost savings that one

0:12:45.320 --> 0:12:47.040
<v Speaker 10>hopes get passed along to consumers.

0:12:47.480 --> 0:12:49.840
<v Speaker 3>What was interesting amid the politicking that goes on on

0:12:50.160 --> 0:12:54.000
<v Speaker 3>Capitol Hill in these sorts of hearings the time and

0:12:54.080 --> 0:12:56.720
<v Speaker 3>time again, iteration we hear from our guests. Is it

0:12:56.800 --> 0:12:59.679
<v Speaker 3>all depends on how the market is defined? Now, how

0:12:59.800 --> 0:13:03.560
<v Speaker 3>you defining this market, is, for example, YouTube the competitor

0:13:03.760 --> 0:13:05.480
<v Speaker 3>or is it just other streaming companies?

0:13:06.640 --> 0:13:06.840
<v Speaker 6>You know?

0:13:06.960 --> 0:13:09.239
<v Speaker 10>I tend to come at it from how do consumers

0:13:09.280 --> 0:13:12.240
<v Speaker 10>actually use these technologies? What would they reach for as

0:13:12.280 --> 0:13:16.360
<v Speaker 10>a substitute if Netflix weren't there or Warner Brothers streaming

0:13:16.360 --> 0:13:18.880
<v Speaker 10>services weren't there. How do we actually behave I think

0:13:19.000 --> 0:13:21.520
<v Speaker 10>is the most common sense way to approach that. And

0:13:21.559 --> 0:13:23.640
<v Speaker 10>I think in the way that we see users sit

0:13:23.720 --> 0:13:25.600
<v Speaker 10>down and they PLoP on their couch, they go to

0:13:25.640 --> 0:13:28.600
<v Speaker 10>the TV. What do they put on? It's very difficult

0:13:28.600 --> 0:13:31.800
<v Speaker 10>to exclude YouTube, YouTube TV from that because that's how

0:13:31.880 --> 0:13:33.960
<v Speaker 10>people use it, that's the way we're living now. So

0:13:34.000 --> 0:13:37.200
<v Speaker 10>I think if regulators are trying to get to the

0:13:37.240 --> 0:13:41.199
<v Speaker 10>closest version of what the real competitive effects are, you

0:13:41.559 --> 0:13:44.280
<v Speaker 10>have to say, how is this actually happening with consumers

0:13:44.360 --> 0:13:46.840
<v Speaker 10>and in the market. And I think it means a

0:13:46.880 --> 0:13:49.839
<v Speaker 10>more broader definition of the market, which puts them more

0:13:49.880 --> 0:13:54.960
<v Speaker 10>at a ten percent market share roughly. If these companies combined,

0:13:55.360 --> 0:13:57.640
<v Speaker 10>if you exclude things like YouTube, and you want things

0:13:57.720 --> 0:14:00.959
<v Speaker 10>that look just exactly like Netflix. That's how you get

0:14:01.000 --> 0:14:03.680
<v Speaker 10>to your thirty percent market share mark with triggers a

0:14:03.720 --> 0:14:07.160
<v Speaker 10>bunch of stuff in anti trust litigation that would make

0:14:07.160 --> 0:14:10.319
<v Speaker 10>it more difficult for this merger Jessica.

0:14:10.320 --> 0:14:14.360
<v Speaker 2>In antitrust, there is political theater and then there is

0:14:14.480 --> 0:14:17.560
<v Speaker 2>actual process. What we showed on the screen a few

0:14:17.559 --> 0:14:22.840
<v Speaker 2>moments ago and are showing now, that's political theater. Doesn't

0:14:22.880 --> 0:14:26.760
<v Speaker 2>it matter really whether the DOJ takes an action here

0:14:27.440 --> 0:14:32.400
<v Speaker 2>and that actually regulators are paying attention beyond the senators

0:14:32.440 --> 0:14:35.680
<v Speaker 2>that post questions in that room. No, that's exactly right.

0:14:35.720 --> 0:14:37.920
<v Speaker 10>There was a lot of political haymade, and I will

0:14:37.920 --> 0:14:41.240
<v Speaker 10>point out that the Senate doesn't actually have any direct

0:14:41.320 --> 0:14:44.440
<v Speaker 10>jurisdiction over this merger. That's all happening at the DOJ.

0:14:44.960 --> 0:14:48.600
<v Speaker 10>And if they follow traditional US anti trust laws, they're

0:14:48.640 --> 0:14:50.960
<v Speaker 10>going to look at how do we define what the

0:14:51.000 --> 0:14:53.280
<v Speaker 10>market is so we can think about what the market

0:14:53.320 --> 0:14:56.240
<v Speaker 10>shares involved are here. And then once you get past

0:14:56.280 --> 0:14:59.720
<v Speaker 10>all of that, the question becomes, you know, on net generally,

0:14:59.720 --> 0:15:03.200
<v Speaker 10>on what we can predict into the future, are there

0:15:03.360 --> 0:15:06.800
<v Speaker 10>potential consumer benefits here to these two companies merging that

0:15:06.880 --> 0:15:09.760
<v Speaker 10>might outweigh some of the competitive concerns that we heard

0:15:09.800 --> 0:15:11.120
<v Speaker 10>mentioned yesterday in the hearing.

0:15:12.320 --> 0:15:15.640
<v Speaker 2>We've been asking this question consistently and in a process,

0:15:15.680 --> 0:15:19.080
<v Speaker 2>it's probably right to ask the same question consistently, which is,

0:15:19.080 --> 0:15:22.440
<v Speaker 2>is there any past precedent that we can look to

0:15:22.720 --> 0:15:26.080
<v Speaker 2>that would suggest the outcome of this proposed.

0:15:25.640 --> 0:15:32.160
<v Speaker 10>Merger In the regulatory sense, I don't know it's you know,

0:15:32.920 --> 0:15:37.320
<v Speaker 10>Washington these days is setting precedent every day. But I

0:15:37.320 --> 0:15:39.680
<v Speaker 10>think in the market you could look at something like

0:15:40.040 --> 0:15:43.720
<v Speaker 10>the T Mobile Sprint merger and say, you know, that

0:15:44.360 --> 0:15:48.560
<v Speaker 10>took two competitors into being one, but that one bigger, better,

0:15:48.720 --> 0:15:52.520
<v Speaker 10>stronger competitor was able to make it three big guys

0:15:52.560 --> 0:15:55.480
<v Speaker 10>on the scene alongside Verizon in AT and T instead

0:15:55.480 --> 0:15:58.160
<v Speaker 10>of two, which those two individual companies at three and

0:15:58.240 --> 0:16:00.680
<v Speaker 10>four wouldn't have been able to challenge to the big two.

0:16:00.920 --> 0:16:03.280
<v Speaker 10>So I think there's precedent in how things actually work

0:16:03.320 --> 0:16:05.680
<v Speaker 10>in the real world, and say a lot of times

0:16:05.760 --> 0:16:09.320
<v Speaker 10>mergers can be very productive, very good for the economy,

0:16:09.640 --> 0:16:13.600
<v Speaker 10>for stockholders and for consumers. I think that's probably one

0:16:13.640 --> 0:16:14.880
<v Speaker 10>of the more recent examples.

0:16:15.600 --> 0:16:19.120
<v Speaker 3>Consumers are the focus, though right in America at least,

0:16:19.520 --> 0:16:21.239
<v Speaker 3>how are you looking at to how.

0:16:21.000 --> 0:16:24.200
<v Speaker 4>Other jurisdictions are going to analyze this deal? Because this

0:16:24.320 --> 0:16:25.240
<v Speaker 4>are global companies.

0:16:26.040 --> 0:16:27.840
<v Speaker 10>Yeah, they're going to have to go within the US,

0:16:27.880 --> 0:16:29.600
<v Speaker 10>They're going to have to talk to some state attorney

0:16:29.680 --> 0:16:32.680
<v Speaker 10>generals and they'll have to deal with the DOJ's assessment.

0:16:32.760 --> 0:16:36.360
<v Speaker 10>But you're absolutely right internationally, the standards are different here

0:16:36.400 --> 0:16:39.560
<v Speaker 10>in US antitrust law. You know, it's all still the

0:16:39.600 --> 0:16:42.960
<v Speaker 10>consumer harm standards. So even if there might be some

0:16:43.000 --> 0:16:46.720
<v Speaker 10>concerns with labor, that's part of the discussion. But really

0:16:46.760 --> 0:16:49.480
<v Speaker 10>the load star is do consumers benefit from this in

0:16:49.560 --> 0:16:53.680
<v Speaker 10>terms of maybe lower prices, more innovation, more output. There's

0:16:53.760 --> 0:16:55.560
<v Speaker 10>lots of things to look at there, but that's not

0:16:55.640 --> 0:16:59.400
<v Speaker 10>the case, for example, in the EU, where the focus

0:16:59.400 --> 0:17:02.040
<v Speaker 10>for regulators is much more concerned with the effect on

0:17:02.240 --> 0:17:05.719
<v Speaker 10>competitors to these companies and not so much just consumers.

0:17:06.000 --> 0:17:09.320
<v Speaker 3>Now, someone turned down going for the political theater, and

0:17:09.359 --> 0:17:12.280
<v Speaker 3>it was David Ellison over at Paramount Skuidance.

0:17:12.720 --> 0:17:14.640
<v Speaker 4>He wasn't there. I'm sure he was tuned in.

0:17:15.280 --> 0:17:17.920
<v Speaker 3>What do you think it states in terms of him

0:17:17.920 --> 0:17:20.639
<v Speaker 3>not wanting to go and address his own concerns or

0:17:20.640 --> 0:17:22.840
<v Speaker 3>indeed whether he'll have his time to be able to

0:17:22.920 --> 0:17:25.640
<v Speaker 3>discuss what a potential merger looks like with his business

0:17:25.720 --> 0:17:26.600
<v Speaker 3>rather than that of Netflix.

0:17:27.359 --> 0:17:27.720
<v Speaker 11>I don't know.

0:17:27.800 --> 0:17:30.159
<v Speaker 10>He's probably smart to take the opportunity to not have

0:17:30.240 --> 0:17:32.840
<v Speaker 10>to testify in front of Congress whenever he can. We

0:17:32.880 --> 0:17:36.320
<v Speaker 10>watched those two executives yesterday or in their paychecks. But

0:17:36.359 --> 0:17:39.800
<v Speaker 10>you know, the paramount stuff lingering on the sideline is

0:17:39.840 --> 0:17:44.159
<v Speaker 10>sort of like a whole different bag of raccoons waiting

0:17:44.160 --> 0:17:46.439
<v Speaker 10>in the wings to see how that interacts with all

0:17:46.480 --> 0:17:48.760
<v Speaker 10>of this. Maybe not at all. If the board doesn't

0:17:49.080 --> 0:17:51.639
<v Speaker 10>approve this, then that pretty much goes away.

0:17:52.640 --> 0:17:53.640
<v Speaker 2>But hopefully it.

0:17:53.600 --> 0:17:59.280
<v Speaker 10>Doesn't have any effect on what the board decides they

0:17:59.320 --> 0:18:01.640
<v Speaker 10>want to sell, they want to do, and hopefully also

0:18:01.720 --> 0:18:04.840
<v Speaker 10>doesn't have any impact on the regulatory structure. There's economics

0:18:04.840 --> 0:18:07.399
<v Speaker 10>to be applied to this, there's consumers to be looked

0:18:07.400 --> 0:18:10.080
<v Speaker 10>out for, and that should be a very dry, boring

0:18:10.119 --> 0:18:14.600
<v Speaker 10>story that I hope we'll see sooner rather than later.

0:18:16.320 --> 0:18:19.560
<v Speaker 2>Jessica Maludim, director of the Center of Technology and Innovation

0:18:19.920 --> 0:18:29.159
<v Speaker 2>at the Competitive Enterprise Institute, Thank you very much. And

0:18:29.280 --> 0:18:33.400
<v Speaker 2>Video is close to investing twenty billion dollars in open Ai.

0:18:33.520 --> 0:18:37.439
<v Speaker 2>That's according to sources, the deal, if completed, would be

0:18:37.440 --> 0:18:41.080
<v Speaker 2>the chipmaker's single biggest investment in the chat GPT developer.

0:18:41.160 --> 0:18:44.600
<v Speaker 2>Both companies declined to comment on Bloomberg's reporting. Let's get

0:18:44.600 --> 0:18:49.080
<v Speaker 2>the details with AI reporter Sharen Gafari. So, Jensen Wong

0:18:49.080 --> 0:18:51.320
<v Speaker 2>has walked in front of a camera quite often recently,

0:18:51.440 --> 0:18:54.160
<v Speaker 2>Sam Altman has taken to social media and also been

0:18:54.200 --> 0:18:58.640
<v Speaker 2>on stage. You and I are best understanding and reporting

0:18:58.680 --> 0:19:01.879
<v Speaker 2>from sources is that actually, for all the noise, this

0:19:02.000 --> 0:19:04.639
<v Speaker 2>transaction's almost done. What do we need to know?

0:19:05.160 --> 0:19:08.160
<v Speaker 11>Yes, well, the key part is the twenty billion potential

0:19:08.200 --> 0:19:11.600
<v Speaker 11>investment in open aiy's current funding round is almost done.

0:19:11.800 --> 0:19:12.000
<v Speaker 8>Now.

0:19:12.040 --> 0:19:14.919
<v Speaker 11>The bigger question is what about the overall up to

0:19:15.119 --> 0:19:18.040
<v Speaker 11>one hundred billion commitment that in Nvidia and open Ai

0:19:19.320 --> 0:19:22.280
<v Speaker 11>were supposed to agree on. They're still finalizing that agreement

0:19:22.680 --> 0:19:25.600
<v Speaker 11>that is still yet to be determined.

0:19:26.359 --> 0:19:29.840
<v Speaker 3>Trian, did everything just get very confused, because at no

0:19:29.960 --> 0:19:33.560
<v Speaker 3>point did it feel like in what was originally one

0:19:33.600 --> 0:19:37.840
<v Speaker 3>hundred billion dollar up to agreement on paper that was

0:19:37.880 --> 0:19:40.480
<v Speaker 3>going to be in exchange for Giga what's coming online

0:19:40.600 --> 0:19:43.119
<v Speaker 3>was in any way sort of also bounded around the

0:19:43.160 --> 0:19:45.000
<v Speaker 3>actual funding round of open Ai and can you just

0:19:45.080 --> 0:19:48.160
<v Speaker 3>make a clear line of what we expected in Video

0:19:48.160 --> 0:19:51.440
<v Speaker 3>and Open AI's relationship to be like from that September announcement.

0:19:52.119 --> 0:19:53.960
<v Speaker 11>Look, I think what we're seeing in these larger and

0:19:54.040 --> 0:19:57.720
<v Speaker 11>larger mega funding rounds that both open Aiyanthropic and others

0:19:57.800 --> 0:20:03.080
<v Speaker 11>are doing is that strategic investors are increasingly getting involved. Right,

0:20:03.119 --> 0:20:06.119
<v Speaker 11>so we know as expected that it's not just going

0:20:06.160 --> 0:20:08.880
<v Speaker 11>to bebc's, it's also going to be these large tech

0:20:08.880 --> 0:20:13.119
<v Speaker 11>companies like in Vidia who are investing in rounds. Twenty

0:20:13.200 --> 0:20:15.359
<v Speaker 11>billion is a lot for Invidia, but obviously up to

0:20:15.359 --> 0:20:17.280
<v Speaker 11>one hundred billion is a lot more. When they made

0:20:17.280 --> 0:20:19.680
<v Speaker 11>that announcement of up to one hundred billion, they didn't

0:20:19.680 --> 0:20:22.000
<v Speaker 11>say over what time period. They said it was a

0:20:22.040 --> 0:20:24.800
<v Speaker 11>tentative agreement that has yet to be finalized, and they

0:20:24.840 --> 0:20:27.960
<v Speaker 11>also said that it would be contingent upon certain milestones

0:20:28.000 --> 0:20:31.919
<v Speaker 11>around how Opening Eye deploys it's chips, it's compute power,

0:20:32.680 --> 0:20:35.359
<v Speaker 11>so there's still details to be sorted out. I think

0:20:35.920 --> 0:20:38.800
<v Speaker 11>what's sort of confusing is when you know there's reporting

0:20:38.800 --> 0:20:41.040
<v Speaker 11>out that the deal has yet to be finalized, that

0:20:41.080 --> 0:20:43.640
<v Speaker 11>there may be tension, and then at the same time

0:20:43.680 --> 0:20:46.080
<v Speaker 11>we see in Nvidia in talks and as we're reported,

0:20:46.119 --> 0:20:49.639
<v Speaker 11>finalizing this very large sum in the current round. And

0:20:50.040 --> 0:20:52.040
<v Speaker 11>you know, it can be true that two things are

0:20:52.040 --> 0:20:55.440
<v Speaker 11>happening at once, right, so there can be a big

0:20:55.480 --> 0:20:58.000
<v Speaker 11>investment in this current round, and there can be uncertainty

0:20:58.040 --> 0:21:00.600
<v Speaker 11>about how much more in Vidia might give in the future.

0:21:00.960 --> 0:21:03.440
<v Speaker 11>And you know what milestones opening I may or may

0:21:03.480 --> 0:21:05.280
<v Speaker 11>not hit tied to that larger investment.

0:21:05.520 --> 0:21:07.320
<v Speaker 3>While excited for the rest of your reporting on the

0:21:07.320 --> 0:21:09.960
<v Speaker 3>current round and who else is involved uring Gafari, we

0:21:10.040 --> 0:21:10.800
<v Speaker 3>thank you very much.

0:21:10.840 --> 0:21:20.280
<v Speaker 2>Indeed, welcome back to Bloomberg Tech. If you're just joining us.

0:21:20.359 --> 0:21:24.480
<v Speaker 2>The technology picture in equities public markets, it's pretty ugly.

0:21:24.720 --> 0:21:26.840
<v Speaker 2>The earning story is a big part of that. AMD

0:21:27.000 --> 0:21:31.119
<v Speaker 2>is now on track for its biggest drop since twenty seventeen.

0:21:31.480 --> 0:21:33.720
<v Speaker 2>But there are other stories out there, right Kroen.

0:21:34.119 --> 0:21:36.840
<v Speaker 3>There are. The software sell off is a key one.

0:21:36.880 --> 0:21:39.439
<v Speaker 3>It's continuing with the sector ready trailing the S and

0:21:39.440 --> 0:21:43.119
<v Speaker 3>P five hundred as as investors reassess valuations and business

0:21:43.160 --> 0:21:45.679
<v Speaker 3>models in the face of this rapid advance in AI.

0:21:46.000 --> 0:21:48.919
<v Speaker 3>That the move has been accelerated course by Anthropic introducing

0:21:49.000 --> 0:21:52.640
<v Speaker 3>a new AI automation tool fueling disruption fears across industries

0:21:52.840 --> 0:21:54.920
<v Speaker 3>now here to discuss the tech market impact in both

0:21:54.960 --> 0:21:57.760
<v Speaker 3>software but also in hardware. It's handling load and portfolio

0:21:57.760 --> 0:22:01.600
<v Speaker 3>manager Ude Taruvu And in fact, a lot of this

0:22:01.680 --> 0:22:04.760
<v Speaker 3>software names that you analyze are balancing today. I'm looking

0:22:04.760 --> 0:22:07.320
<v Speaker 3>at Adobe for example, Microsoft which is all things to

0:22:07.359 --> 0:22:09.720
<v Speaker 3>all men. We've also got the likes of SAP that

0:22:09.800 --> 0:22:11.879
<v Speaker 3>just managed to push up a little bit today for.

0:22:11.960 --> 0:22:14.479
<v Speaker 4>This software pain. Yeah, what do you make of it?

0:22:14.960 --> 0:22:17.639
<v Speaker 12>Look, I think there's a narrative out there that AI

0:22:17.800 --> 0:22:20.480
<v Speaker 12>is going to eat up software, that AI is going

0:22:20.520 --> 0:22:23.320
<v Speaker 12>to replace software, and that's dominating right now, and in

0:22:23.320 --> 0:22:26.360
<v Speaker 12>a sense that investors are putting high probability to that.

0:22:26.800 --> 0:22:29.160
<v Speaker 12>What we look at as long term investors is say

0:22:29.200 --> 0:22:32.520
<v Speaker 12>that there's a range of outcomes that are possible. AI

0:22:32.720 --> 0:22:36.840
<v Speaker 12>could be complementary and supplementary to software, not just replacing software.

0:22:37.200 --> 0:22:38.959
<v Speaker 12>And that's how you have to think about it. Right now,

0:22:39.000 --> 0:22:42.000
<v Speaker 12>in a market where everything's blowing up, it looks like, hey,

0:22:42.240 --> 0:22:44.960
<v Speaker 12>there's pain coming left, right and center. You step back

0:22:45.000 --> 0:22:47.159
<v Speaker 12>and think about what are the sort of companies that

0:22:47.240 --> 0:22:49.720
<v Speaker 12>can go through this sort of environment, go through this

0:22:49.800 --> 0:22:53.040
<v Speaker 12>transformation and technology and still come out to the other

0:22:53.119 --> 0:22:56.480
<v Speaker 12>side holding their own And in that sense, Microsoft is

0:22:56.480 --> 0:22:58.439
<v Speaker 12>one of those companies that we think can do that.

0:22:59.200 --> 0:23:02.680
<v Speaker 3>What have you added to get that comfort, because there's

0:23:02.800 --> 0:23:05.280
<v Speaker 3>much to say that not many of the seats that

0:23:05.320 --> 0:23:08.560
<v Speaker 3>are actually being paid for for Copilot are being used. Yeah,

0:23:08.600 --> 0:23:10.640
<v Speaker 3>I think about Adobe has been on the offensive. There's

0:23:10.680 --> 0:23:12.920
<v Speaker 3>a story out today showing how they've ramped up advertising

0:23:12.960 --> 0:23:16.080
<v Speaker 3>by thirty percent. Try and highlight their own AI tools.

0:23:16.359 --> 0:23:17.840
<v Speaker 3>What do you want to hear and see in the

0:23:17.920 --> 0:23:19.679
<v Speaker 3>data to show that these companies can weather it?

0:23:20.119 --> 0:23:22.040
<v Speaker 12>So I think before we get to the data, what

0:23:22.080 --> 0:23:23.840
<v Speaker 12>we need to understand is what is the type of

0:23:23.880 --> 0:23:27.320
<v Speaker 12>software that these companies are selling. Where they're points solutions, say,

0:23:27.320 --> 0:23:29.679
<v Speaker 12>for example, on the legal side, you know Lexus Nexus.

0:23:30.000 --> 0:23:32.880
<v Speaker 12>Maybe there's a reason why that can be displaced more

0:23:32.920 --> 0:23:37.320
<v Speaker 12>by AI, which does point solutions. But Microsoft and Adobe,

0:23:37.320 --> 0:23:39.840
<v Speaker 12>they do their platform solutions. What they do is not

0:23:40.119 --> 0:23:43.199
<v Speaker 12>just a function for the user. They do manage the

0:23:43.200 --> 0:23:45.760
<v Speaker 12>whole workflow, the whole process of a company set up

0:23:45.760 --> 0:23:49.320
<v Speaker 12>in these in companies like Microsoft or SAP, those companies

0:23:49.320 --> 0:23:52.200
<v Speaker 12>from a product perspective are much more entrenched. So that's

0:23:52.240 --> 0:23:54.479
<v Speaker 12>the starting point. The second point we do look at

0:23:54.560 --> 0:23:57.520
<v Speaker 12>is from a data per seed, is the revenue per

0:23:57.640 --> 0:24:00.560
<v Speaker 12>seed going up? And why is that going up? Is

0:24:00.560 --> 0:24:04.080
<v Speaker 12>that just from pricing or increasing the number of tools

0:24:04.119 --> 0:24:06.680
<v Speaker 12>that are being used? And if you look at the evidence,

0:24:07.000 --> 0:24:10.120
<v Speaker 12>there seems to be an improvement for Microsoft. The copilot

0:24:10.160 --> 0:24:12.359
<v Speaker 12>is going up. Now. Is the pace of that going

0:24:12.440 --> 0:24:16.199
<v Speaker 12>up differently to cloud Cowork and what they're announcing It

0:24:16.240 --> 0:24:19.240
<v Speaker 12>would be because one is an enterprise product and one

0:24:19.280 --> 0:24:21.639
<v Speaker 12>is much more an experimental product right now, so the

0:24:21.680 --> 0:24:24.160
<v Speaker 12>growth rates would be quite different. So that's what we're

0:24:24.160 --> 0:24:26.360
<v Speaker 12>looking at the data points and the number of users,

0:24:26.600 --> 0:24:29.520
<v Speaker 12>percentage of take up in terms of new products.

0:24:29.160 --> 0:24:31.119
<v Speaker 6>And tools oday.

0:24:31.240 --> 0:24:33.199
<v Speaker 2>It's great to have you on the program at this

0:24:33.400 --> 0:24:36.240
<v Speaker 2>moment in time, in particular, Microsoft, you know is a

0:24:36.320 --> 0:24:39.400
<v Speaker 2>name that you hold in the portfolio. It's probably worth

0:24:39.440 --> 0:24:41.639
<v Speaker 2>just looking back a little bit and asking what you

0:24:41.760 --> 0:24:44.240
<v Speaker 2>learned from that earning sprint, because of course the market

0:24:44.280 --> 0:24:47.399
<v Speaker 2>reaction in the moment was pretty severe. But what is

0:24:47.440 --> 0:24:48.399
<v Speaker 2>the bigger picture for you?

0:24:48.920 --> 0:24:51.040
<v Speaker 12>The bigger picture for us is the fact that Azure

0:24:51.320 --> 0:24:54.000
<v Speaker 12>is continuing to grow. Yes, it missed the bogie of

0:24:54.040 --> 0:24:56.280
<v Speaker 12>you know forty percent growth, it came at thirty eight percent.

0:24:56.520 --> 0:24:59.919
<v Speaker 12>To us, that matters much less than the fact that

0:25:00.160 --> 0:25:03.320
<v Speaker 12>the reason that they missed is because their capacity constraint,

0:25:03.560 --> 0:25:06.040
<v Speaker 12>and the reason why their capacity constraint is two years

0:25:06.080 --> 0:25:09.600
<v Speaker 12>ago they made the decision to wait and see instead

0:25:09.600 --> 0:25:13.600
<v Speaker 12>of blowing into growing their data centers just in anticipation

0:25:13.640 --> 0:25:14.040
<v Speaker 12>of demand.

0:25:14.320 --> 0:25:15.320
<v Speaker 6>So that shows us.

0:25:15.240 --> 0:25:18.920
<v Speaker 12>The management mindset is that they will build for as

0:25:18.920 --> 0:25:22.080
<v Speaker 12>they see demand, not just anticipating demand, and that's why

0:25:22.320 --> 0:25:24.280
<v Speaker 12>the growth is constrained, and that's why their growth for

0:25:24.320 --> 0:25:27.639
<v Speaker 12>the next quarter is constrained. So to us, that's not

0:25:27.760 --> 0:25:29.639
<v Speaker 12>the end all and be ald, So therefore, missing that

0:25:29.680 --> 0:25:32.119
<v Speaker 12>small number is not a bad thing. But what we

0:25:32.200 --> 0:25:34.879
<v Speaker 12>do like is the fact that on the office side,

0:25:34.960 --> 0:25:38.280
<v Speaker 12>on the commercial side, growth remains very strong. The part

0:25:38.320 --> 0:25:41.119
<v Speaker 12>that missed was their personal computing and that's got to

0:25:41.160 --> 0:25:43.760
<v Speaker 12>do with memory pricing. Now, when you come back to hardware,

0:25:44.000 --> 0:25:46.600
<v Speaker 12>huge memory price increases, there's going to be a demand

0:25:46.600 --> 0:25:49.080
<v Speaker 12>destruction and that's what Microsoft are seeing. So to us,

0:25:49.080 --> 0:25:51.760
<v Speaker 12>put all that together, this doesn't change the long term

0:25:51.880 --> 0:25:56.200
<v Speaker 12>valuation picture. The fact that they continue to allow other

0:25:57.280 --> 0:26:00.399
<v Speaker 12>llms and other models into there as you're into their

0:26:00.400 --> 0:26:04.440
<v Speaker 12>asial infrastructure, is that they benefit from the overall growth

0:26:04.440 --> 0:26:06.400
<v Speaker 12>in the AI ecosystem.

0:26:06.800 --> 0:26:11.280
<v Speaker 2>Bloomberg's reporting that Innvidia is close to confirming its twenty

0:26:11.320 --> 0:26:15.680
<v Speaker 2>billion dollar contribution to the open Ai round that's ongoing.

0:26:15.720 --> 0:26:19.440
<v Speaker 2>That of course comes from sources, but that's my best understanding.

0:26:20.040 --> 0:26:23.280
<v Speaker 2>Is a portfolio manager that holds in VideA and looks

0:26:23.280 --> 0:26:25.880
<v Speaker 2>in VideA, how much do you care about that story

0:26:26.040 --> 0:26:28.280
<v Speaker 2>in Vidia's financial investment in open ai.

0:26:28.960 --> 0:26:32.080
<v Speaker 12>The financial investment is this quantum of that financial investment

0:26:32.160 --> 0:26:34.680
<v Speaker 12>is not that important. It's what's the relationship that they're

0:26:34.680 --> 0:26:37.879
<v Speaker 12>building up with open ai and how they're driving open

0:26:37.920 --> 0:26:41.399
<v Speaker 12>ai in terms of their usage of Nvidia, Because the

0:26:41.440 --> 0:26:44.240
<v Speaker 12>long term story for Nvidia is how much of your

0:26:44.280 --> 0:26:46.880
<v Speaker 12>chips are going to be used in the next generation

0:26:47.000 --> 0:26:49.919
<v Speaker 12>of training models. How much is going to go to

0:26:49.960 --> 0:26:53.399
<v Speaker 12>the assets that the companies like Google and all are

0:26:53.400 --> 0:26:57.119
<v Speaker 12>coming up with. The more the deeper their relationship with

0:26:57.280 --> 0:27:00.720
<v Speaker 12>these AI front team model companies is, the more likely

0:27:00.800 --> 0:27:03.800
<v Speaker 12>they can they can you know, they design roadmap will

0:27:03.800 --> 0:27:06.560
<v Speaker 12>tailor to these companies, and therefore they become more entrenched.

0:27:06.560 --> 0:27:08.840
<v Speaker 12>What you want to see is companies getting more entrenched

0:27:09.080 --> 0:27:10.960
<v Speaker 12>and invest in those companies.

0:27:12.119 --> 0:27:14.199
<v Speaker 2>Through data review of herding Loan. It's great to have

0:27:14.240 --> 0:27:16.639
<v Speaker 2>you here on Blomberg Tech. Thank you very much. So

0:27:16.760 --> 0:27:21.600
<v Speaker 2>coming up, Amazon's former worldwide consumer chief Dave Clark joins us.

0:27:21.640 --> 0:27:26.159
<v Speaker 2>Talk about is new supply chain software startup AUGA that's next.

0:27:26.560 --> 0:27:27.800
<v Speaker 2>This is Blomberg Tech.

0:27:34.600 --> 0:27:35.680
<v Speaker 4>Meta Reality Labs.

0:27:35.680 --> 0:27:38.480
<v Speaker 3>Well, it's just selected to startup Auger to provide the

0:27:38.480 --> 0:27:41.760
<v Speaker 3>operating system for the company supply chain. Now, the startup

0:27:41.840 --> 0:27:44.560
<v Speaker 3>was founded by the former head of Amazon supply chain itself.

0:27:44.640 --> 0:27:47.760
<v Speaker 4>Dave Clark, O a CEO. Founder joins us.

0:27:47.800 --> 0:27:50.840
<v Speaker 3>Now, you're co founder along with your partner, and I'm interested, Dave,

0:27:51.040 --> 0:27:52.560
<v Speaker 3>is to what this is going to mean for all

0:27:52.560 --> 0:27:54.879
<v Speaker 3>those that want the latest, greatest hardware from Meta.

0:27:55.080 --> 0:27:56.560
<v Speaker 4>How much quickly will it be in their hands?

0:27:57.760 --> 0:27:59.960
<v Speaker 13>Well, good morning, thanks for having me on. We're excited

0:28:00.080 --> 0:28:02.439
<v Speaker 13>to be working with Meta in this way. We're in

0:28:02.480 --> 0:28:06.240
<v Speaker 13>the midst of deploying software. Now we'll deploy with them

0:28:06.760 --> 0:28:10.280
<v Speaker 13>over Q one, Q two of this year and finalizing

0:28:10.320 --> 0:28:10.720
<v Speaker 13>Q three.

0:28:11.800 --> 0:28:14.439
<v Speaker 3>Interestingly, how a little spa on your website? Mess is

0:28:14.480 --> 0:28:18.320
<v Speaker 3>not the only brand that I saw. Fanatics is another one.

0:28:18.520 --> 0:28:21.479
<v Speaker 3>How are you scaling new companies to come on and

0:28:21.520 --> 0:28:23.320
<v Speaker 3>basically be the first customers that you have for this.

0:28:23.359 --> 0:28:27.280
<v Speaker 13>Startup, Well, we started building out that. We've been building

0:28:27.280 --> 0:28:30.240
<v Speaker 13>out the products for the last year. We deployed in

0:28:30.600 --> 0:28:33.360
<v Speaker 13>proof of concepts with customers in the middle of last year,

0:28:33.400 --> 0:28:37.919
<v Speaker 13>including Meta and Fanatics, and so what we've been doing

0:28:38.120 --> 0:28:40.960
<v Speaker 13>is building the platform for how you're going to build

0:28:40.960 --> 0:28:44.240
<v Speaker 13>an autonomous operating system for supply chain. At its core

0:28:44.400 --> 0:28:49.080
<v Speaker 13>is really the contextual infrastructure for data across the supply

0:28:49.160 --> 0:28:52.240
<v Speaker 13>chain world that makes it happen. And because we build

0:28:52.280 --> 0:28:57.360
<v Speaker 13>it as this platform of infrastructure, it's very scalable from

0:28:57.360 --> 0:28:58.720
<v Speaker 13>customer to customer.

0:29:00.280 --> 0:29:05.080
<v Speaker 2>Dave, without trivializing it. Why the name auga what does

0:29:05.120 --> 0:29:07.120
<v Speaker 2>it represent? I think that might give us an insight

0:29:07.160 --> 0:29:09.400
<v Speaker 2>into in what the company is and what it does.

0:29:10.280 --> 0:29:12.760
<v Speaker 13>Well, if you think about the big challenge in supply

0:29:12.880 --> 0:29:16.360
<v Speaker 13>chain is really trying to connect all of this disconnected

0:29:16.560 --> 0:29:20.080
<v Speaker 13>data together to make it reason together, to create a

0:29:20.160 --> 0:29:23.920
<v Speaker 13>layer of contextualization and understanding. And to do that you

0:29:24.040 --> 0:29:27.320
<v Speaker 13>really have to have both the technology and the knowledge

0:29:27.360 --> 0:29:30.440
<v Speaker 13>to drill down into an organization, to drill into the

0:29:30.480 --> 0:29:33.120
<v Speaker 13>process of how they were to enable that. And so

0:29:33.720 --> 0:29:35.680
<v Speaker 13>Augier fit a lot of, you know, things that we

0:29:35.720 --> 0:29:38.920
<v Speaker 13>really liked and had some meaning behind it as well,

0:29:39.000 --> 0:29:41.479
<v Speaker 13>for you know, how to think about it. Also, supply

0:29:41.520 --> 0:29:43.719
<v Speaker 13>chains of contacts fort like this is not you know,

0:29:44.280 --> 0:29:47.320
<v Speaker 13>the world wakes up every day trying to recavoc on

0:29:47.400 --> 0:29:50.520
<v Speaker 13>supply chain planners around the world, and so we thought

0:29:50.560 --> 0:29:53.640
<v Speaker 13>it was it was a framing that sort of represented

0:29:53.680 --> 0:29:57.040
<v Speaker 13>the grit and determination and sort of just grind through

0:29:57.080 --> 0:29:59.520
<v Speaker 13>it that represents operators around the world.

0:30:00.200 --> 0:30:04.440
<v Speaker 2>We're showing video of how the software the platform works.

0:30:04.680 --> 0:30:07.640
<v Speaker 2>We know you from from your time at Amazon, right

0:30:07.680 --> 0:30:11.240
<v Speaker 2>and your your experience of global supply chains. You had

0:30:11.280 --> 0:30:14.480
<v Speaker 2>a brief ten year at Flexport, and maybe we'll get

0:30:14.480 --> 0:30:16.840
<v Speaker 2>into that another time, But I don't know you as

0:30:16.880 --> 0:30:20.400
<v Speaker 2>a software guy. How did you build this platform? What

0:30:20.440 --> 0:30:24.160
<v Speaker 2>are the people behind the core competency here? Please?

0:30:25.240 --> 0:30:27.160
<v Speaker 13>Yeah, well, I mean if you think about I mean,

0:30:27.200 --> 0:30:31.480
<v Speaker 13>Amazon is in many ways the supply chain technology company

0:30:31.520 --> 0:30:34.640
<v Speaker 13>at its core. You know, we had my team had

0:30:34.680 --> 0:30:38.320
<v Speaker 13>thousands of software developers, you know, the last mile technology teams,

0:30:38.360 --> 0:30:43.040
<v Speaker 13>the robotics tms, the inventory forecasting, email and neural network teams.

0:30:43.640 --> 0:30:43.800
<v Speaker 6>You know.

0:30:43.840 --> 0:30:47.360
<v Speaker 13>So well, I'm not I don't write code for a living.

0:30:47.480 --> 0:30:50.680
<v Speaker 13>I've been leading and working with software teams for two

0:30:50.720 --> 0:30:55.160
<v Speaker 13>decades now, and we have a phenomenal team of people,

0:30:55.800 --> 0:30:58.640
<v Speaker 13>you know, many of whom were from folks I've worked

0:30:58.640 --> 0:31:01.440
<v Speaker 13>with that in my past life, and some new folks

0:31:01.480 --> 0:31:05.320
<v Speaker 13>that have joined us from other places. But the unifying

0:31:05.440 --> 0:31:09.719
<v Speaker 13>bit of the whole group is people incredibly passionate about customers,

0:31:09.840 --> 0:31:13.600
<v Speaker 13>incredibly curious about the technology that's coming out in the world,

0:31:14.440 --> 0:31:18.720
<v Speaker 13>and incredibly fast at delivering output for the people we're

0:31:18.760 --> 0:31:19.200
<v Speaker 13>working for.

0:31:19.520 --> 0:31:22.240
<v Speaker 3>It's an agentic technology that's going to drive us forward

0:31:22.240 --> 0:31:24.400
<v Speaker 3>in many ways, Dave. But what's so interesting is I

0:31:24.440 --> 0:31:27.720
<v Speaker 3>see the retail benefits, I see the e commerce lived experience,

0:31:27.760 --> 0:31:29.560
<v Speaker 3>and I can see what's happening with meta fanatics. But

0:31:29.800 --> 0:31:32.720
<v Speaker 3>how does this expand supply chains is something we talk

0:31:32.760 --> 0:31:35.320
<v Speaker 3>about in every type of industry right now, and particularly

0:31:35.320 --> 0:31:37.160
<v Speaker 3>in the national security context.

0:31:38.320 --> 0:31:40.680
<v Speaker 13>That's right, I mean, at the core of this thing

0:31:40.800 --> 0:31:43.840
<v Speaker 13>is really while agentics is the subject of so much

0:31:43.840 --> 0:31:47.480
<v Speaker 13>of the conversation, the way you make agentics work is

0:31:47.520 --> 0:31:52.080
<v Speaker 13>through context. Context is king, and our core platform is

0:31:52.160 --> 0:31:57.800
<v Speaker 13>really about context enablement across large global enterprise data sets,

0:31:58.400 --> 0:32:02.640
<v Speaker 13>unifying thousands of tables into one operable platform of data

0:32:02.680 --> 0:32:05.680
<v Speaker 13>that agents can actually then work with for autonomy and

0:32:05.760 --> 0:32:09.320
<v Speaker 13>so that's extensible in all aspects of the world. Our

0:32:09.320 --> 0:32:12.360
<v Speaker 13>early customers today are focused more in the consumer space,

0:32:12.840 --> 0:32:15.720
<v Speaker 13>but we're also partnering looking at working with governments to

0:32:15.840 --> 0:32:19.720
<v Speaker 13>enable processful You can imagine the kind of work that

0:32:19.760 --> 0:32:23.080
<v Speaker 13>needs to be done to connect sovereigns, not just companies,

0:32:23.600 --> 0:32:26.160
<v Speaker 13>and we think that's a big expansion area for us

0:32:26.200 --> 0:32:28.800
<v Speaker 13>as we move forward in the next month months.

0:32:29.320 --> 0:32:31.720
<v Speaker 3>Taking a step back, we are currently in a day

0:32:31.760 --> 0:32:35.920
<v Speaker 3>of trade where anxiety runs high on AI disruption of

0:32:35.960 --> 0:32:39.440
<v Speaker 3>software companies, and I'm interested as to how you felt

0:32:39.440 --> 0:32:42.400
<v Speaker 3>that ALGA is something you needed to build for yourself

0:32:42.600 --> 0:32:46.280
<v Speaker 3>as an operating system rather than companies plugging in what

0:32:46.400 --> 0:32:48.400
<v Speaker 3>is currently being developed by large language models.

0:32:49.680 --> 0:32:51.840
<v Speaker 13>Well, you know, as I said, I think the large

0:32:51.880 --> 0:32:54.280
<v Speaker 13>language models can only do so much. You know, they're

0:32:54.560 --> 0:32:56.840
<v Speaker 13>large language models are fantastic, but they're limited by the

0:32:56.840 --> 0:33:00.280
<v Speaker 13>context you provide them. And what was missing, what I

0:33:00.280 --> 0:33:04.640
<v Speaker 13>saw nobody building was the contextual infrastructure to make supply

0:33:04.720 --> 0:33:08.280
<v Speaker 13>chains work as a unit. And so we felt, you know,

0:33:08.320 --> 0:33:11.000
<v Speaker 13>that we had the right technology background, We had the

0:33:11.080 --> 0:33:14.280
<v Speaker 13>right operational background, sort of right team, right technology, right

0:33:14.360 --> 0:33:18.160
<v Speaker 13>time to go out and do this. We think it's

0:33:18.200 --> 0:33:22.000
<v Speaker 13>one of the you know, sort of few big enablement

0:33:22.040 --> 0:33:25.080
<v Speaker 13>plays at a global scale to really you can really

0:33:25.160 --> 0:33:27.200
<v Speaker 13>go out in software and change the way the physical

0:33:27.200 --> 0:33:28.680
<v Speaker 13>world interacts.

0:33:30.040 --> 0:33:32.520
<v Speaker 2>Dave Clark, CEO of Auga, Great to have you here

0:33:32.520 --> 0:33:35.200
<v Speaker 2>on Bloomberg Tech. Thank you very much. Let's get to

0:33:35.240 --> 0:33:38.240
<v Speaker 2>the world of inference. Positron ai has raised two hundred

0:33:38.240 --> 0:33:40.920
<v Speaker 2>and thirty million dollars in a Series B funding round,

0:33:41.280 --> 0:33:43.920
<v Speaker 2>valuing the company at over a billion dollars. The AI

0:33:44.080 --> 0:33:48.080
<v Speaker 2>chip startup is working to compete with Nvidia by developing

0:33:48.160 --> 0:33:51.000
<v Speaker 2>energy efficient chips for AI inference. Joining us to discuss

0:33:51.400 --> 0:33:55.400
<v Speaker 2>mtsha Agrou Positron CEO, it is good to see you.

0:33:55.440 --> 0:33:57.360
<v Speaker 2>Thank you for coming on the show. We have to

0:33:57.400 --> 0:34:00.280
<v Speaker 2>say we have a new inference chip name on the

0:34:00.320 --> 0:34:04.120
<v Speaker 2>show on a weekly basis at the moment, Opus right

0:34:04.160 --> 0:34:08.399
<v Speaker 2>through to the next generation of accelerator for inference. We'll

0:34:08.400 --> 0:34:11.840
<v Speaker 2>get to the money. But what is the Positron elevator page.

0:34:11.840 --> 0:34:14.720
<v Speaker 2>What is it you're doing differently that really would allow

0:34:14.760 --> 0:34:16.880
<v Speaker 2>you to take on nvideor in the market for inference.

0:34:18.160 --> 0:34:21.640
<v Speaker 14>Yeah, it's as you can, focused on memory architecture right

0:34:21.960 --> 0:34:25.400
<v Speaker 14>in for inference, it's barely memory bottleneck both on memory

0:34:25.440 --> 0:34:29.920
<v Speaker 14>speeds and memory capacity. Positron has deployed and you know,

0:34:29.960 --> 0:34:32.840
<v Speaker 14>our first generation product already on our building our second generation,

0:34:33.440 --> 0:34:36.080
<v Speaker 14>which is very much focused on building the memory closer

0:34:36.080 --> 0:34:39.360
<v Speaker 14>to the systolic array, so very very fast on decode speeds,

0:34:39.560 --> 0:34:42.560
<v Speaker 14>and then second is having massive amounts of memory capacity

0:34:42.880 --> 0:34:45.440
<v Speaker 14>directly attached to the chip. Our second generation will be

0:34:45.480 --> 0:34:48.839
<v Speaker 14>the world's first terrabyte memory chip, going up to two

0:34:48.880 --> 0:34:50.760
<v Speaker 14>point three terabytes of attached memory.

0:34:50.800 --> 0:34:51.000
<v Speaker 6>You know.

0:34:51.040 --> 0:34:53.440
<v Speaker 14>For a comparison and video Rubin will launch with three

0:34:53.440 --> 0:34:55.160
<v Speaker 14>eighty four gigabytes end of this year.

0:34:55.400 --> 0:34:57.960
<v Speaker 6>So that's that's where we are really focused on.

0:34:58.200 --> 0:35:01.320
<v Speaker 14>If you think about decode application you know, video generation,

0:35:01.480 --> 0:35:04.680
<v Speaker 14>code generation and reasoning models, that's the current bottleneck, very

0:35:04.760 --> 0:35:06.799
<v Speaker 14>large models as well, you.

0:35:06.840 --> 0:35:09.680
<v Speaker 2>Know miteesh this issue like latency for one of a

0:35:09.719 --> 0:35:12.720
<v Speaker 2>better expression, you know in video is looking the giant

0:35:12.760 --> 0:35:14.799
<v Speaker 2>that is in video is looking at optics as well

0:35:14.840 --> 0:35:17.400
<v Speaker 2>within the server design to overcome that. They've got a

0:35:17.480 --> 0:35:19.480
<v Speaker 2>lot of cash to do it. You now have two

0:35:19.600 --> 0:35:22.000
<v Speaker 2>hundred and thirty million dollars. You know, how is that

0:35:22.040 --> 0:35:23.279
<v Speaker 2>going to help you progress it?

0:35:24.719 --> 0:35:28.040
<v Speaker 14>Yeah? I think Look, obviously you can't do cash tra

0:35:28.080 --> 0:35:31.560
<v Speaker 14>cash comparison. I think the research to directions are different.

0:35:31.600 --> 0:35:34.239
<v Speaker 14>I think that's where our technology is completely different. Well

0:35:34.239 --> 0:35:36.600
<v Speaker 14>and video is looking at optics to scale out or

0:35:37.160 --> 0:35:39.160
<v Speaker 14>a rack scale data center scale because they have to

0:35:39.160 --> 0:35:42.040
<v Speaker 14>connect multiple chips because they're limited on memory. We are

0:35:42.120 --> 0:35:44.320
<v Speaker 14>kind of bringing the scale out a little bit invert

0:35:44.360 --> 0:35:46.600
<v Speaker 14>We are saying that by having that much memory, you

0:35:46.640 --> 0:35:48.440
<v Speaker 14>still have to do scale out when the models are

0:35:48.440 --> 0:35:51.319
<v Speaker 14>going to be tentral in parameters long or large. But

0:35:51.800 --> 0:35:54.600
<v Speaker 14>the point is you have to do it less so

0:35:54.680 --> 0:35:58.040
<v Speaker 14>you can consume less chips, you consume less power and

0:35:58.360 --> 0:36:01.319
<v Speaker 14>so on. Right, So it's a different type of architecture

0:36:01.520 --> 0:36:05.440
<v Speaker 14>than what NVIDA is focused on. I really do believe that,

0:36:05.520 --> 0:36:07.200
<v Speaker 14>you know, in the world of inference, you're going to

0:36:07.200 --> 0:36:09.919
<v Speaker 14>see you know, the world you've heard the word disaggregation.

0:36:10.120 --> 0:36:11.399
<v Speaker 6>You know obviously that's going to come through.

0:36:11.480 --> 0:36:14.640
<v Speaker 14>But you know, each silicon will have Our silicon architecture

0:36:14.640 --> 0:36:16.160
<v Speaker 14>will have it's kind of niche in terms of what

0:36:16.239 --> 0:36:19.960
<v Speaker 14>applications it really drives through fundamentally more efficiently.

0:36:19.960 --> 0:36:21.080
<v Speaker 6>It's like the Perido curve.

0:36:21.320 --> 0:36:24.600
<v Speaker 14>You know, you are trying to minimize power consumption, You're

0:36:24.600 --> 0:36:27.439
<v Speaker 14>trying to minimize energy, you're trying to minimize the cost,

0:36:27.520 --> 0:36:30.040
<v Speaker 14>you know, with a per token, per video generation, and

0:36:30.080 --> 0:36:31.440
<v Speaker 14>you're trying to increase the.

0:36:31.360 --> 0:36:33.360
<v Speaker 6>Speed of output, right, and each.

0:36:33.200 --> 0:36:35.520
<v Speaker 14>Of the silicon architectures will find its own niche there

0:36:35.560 --> 0:36:38.160
<v Speaker 14>and we are right in that in that space.

0:36:37.920 --> 0:36:38.840
<v Speaker 4>It's only each finance.

0:36:38.880 --> 0:36:40.680
<v Speaker 3>I mean, I'm looking at Jump Trading being one of

0:36:40.680 --> 0:36:43.360
<v Speaker 3>your investors and is that sort of a strategic investor.

0:36:43.360 --> 0:36:45.520
<v Speaker 3>Where do you think that you will be first shipping too?

0:36:47.040 --> 0:36:49.920
<v Speaker 14>Yeah, I mean actually Jump is one of our customers

0:36:49.960 --> 0:36:52.960
<v Speaker 14>for the first gen product, and it's that's the validation

0:36:53.160 --> 0:36:57.080
<v Speaker 14>that you know, really kind of encouraged us to go

0:36:57.120 --> 0:36:58.160
<v Speaker 14>out and raise this round.

0:36:58.200 --> 0:36:59.279
<v Speaker 6>You know, Jump became a.

0:36:59.239 --> 0:37:02.200
<v Speaker 14>Customer first, they looked at our version, they used it,

0:37:02.400 --> 0:37:04.919
<v Speaker 14>they looked at our second gen roadmap, and they said, look,

0:37:04.920 --> 0:37:06.680
<v Speaker 14>we got to invest in this company. And that's kind

0:37:06.719 --> 0:37:08.799
<v Speaker 14>of how they came as co lead on the round.

0:37:08.880 --> 0:37:14.520
<v Speaker 14>So you Trading is obviously using a lot of language models,

0:37:14.520 --> 0:37:17.400
<v Speaker 14>transformer models, or aggresive models for their applications. They're exploring

0:37:17.440 --> 0:37:19.760
<v Speaker 14>that it's R and D and expanding, but they're exploring

0:37:19.800 --> 0:37:23.800
<v Speaker 14>that and that's kind of where having driving lower latency

0:37:23.960 --> 0:37:27.080
<v Speaker 14>or a lotting like very large context length can really

0:37:27.080 --> 0:37:30.160
<v Speaker 14>make an impact for them. So that's how they got interested.

0:37:30.400 --> 0:37:33.080
<v Speaker 14>From a strategic point of Caroline, you mentioned we have

0:37:33.280 --> 0:37:37.240
<v Speaker 14>ARM and Qia, So it's not just customers in finance

0:37:37.360 --> 0:37:40.239
<v Speaker 14>or certain types of customers. It's the ecosystem players and

0:37:40.680 --> 0:37:43.120
<v Speaker 14>you know, different types of sovereign and data center players

0:37:43.120 --> 0:37:45.319
<v Speaker 14>that are getting interested in this space as they look

0:37:45.360 --> 0:37:47.520
<v Speaker 14>at heterogeneous deployments.

0:37:47.520 --> 0:37:50.040
<v Speaker 6>Offsolican for inference for clothes, So.

0:37:50.000 --> 0:37:51.320
<v Speaker 4>We saw Grock.

0:37:51.760 --> 0:37:56.520
<v Speaker 3>It's focus on inference and it's interesting purchase by Nvidia.

0:37:57.320 --> 0:37:59.719
<v Speaker 3>How do you see your growth now you've got money,

0:38:00.040 --> 0:38:02.440
<v Speaker 3>it's about hiring talent and getting and shipping the systems.

0:38:02.480 --> 0:38:05.160
<v Speaker 3>But with ARM on the cap table, do you see

0:38:05.239 --> 0:38:06.800
<v Speaker 3>some sort of purchase in your future?

0:38:06.880 --> 0:38:08.000
<v Speaker 4>What do you want for the business?

0:38:09.280 --> 0:38:12.320
<v Speaker 14>I think our main focus is how can we deliver

0:38:12.440 --> 0:38:14.960
<v Speaker 14>our maximum of chifts in the world, right I think

0:38:14.960 --> 0:38:18.000
<v Speaker 14>that's like really what drives us fundamentally is how can

0:38:18.000 --> 0:38:20.160
<v Speaker 14>we deploy millions and millions of chips. I mean we

0:38:20.200 --> 0:38:22.520
<v Speaker 14>are starting at you know, started obviously with just the

0:38:22.520 --> 0:38:24.920
<v Speaker 14>first prototype. We are in Balabans right now, so it's

0:38:24.920 --> 0:38:27.279
<v Speaker 14>still a long way to go and you know, and

0:38:27.440 --> 0:38:29.840
<v Speaker 14>videos the company and the millions, and that's kind of

0:38:29.840 --> 0:38:30.640
<v Speaker 14>where we have to reach.

0:38:30.920 --> 0:38:32.240
<v Speaker 6>Everything that goes.

0:38:32.000 --> 0:38:34.560
<v Speaker 14>By the side, you know, acquisitions, you know, going public,

0:38:34.600 --> 0:38:37.799
<v Speaker 14>all those things are kind of by products off the

0:38:37.800 --> 0:38:41.000
<v Speaker 14>actual technical product and the consumer and the customer. From

0:38:41.040 --> 0:38:43.920
<v Speaker 14>a customer point of view, I'll answer you, Carolyn, I

0:38:43.920 --> 0:38:46.879
<v Speaker 14>think from from from our perspective. You know, over eighty

0:38:46.920 --> 0:38:50.719
<v Speaker 14>percent of walls inference gets driven through hyperscillus sort associated customers,

0:38:50.880 --> 0:38:52.520
<v Speaker 14>and that's kind of where we are really aiming to

0:38:53.080 --> 0:38:55.920
<v Speaker 14>go after from specific workloads.

0:38:55.680 --> 0:38:58.920
<v Speaker 3>To to them Mintosha grow Well a Positron. Great to

0:38:58.920 --> 0:39:02.640
<v Speaker 3>have you on today. Alphabet Journeys, they come out after

0:39:02.640 --> 0:39:04.239
<v Speaker 3>the bell. We want to hear about what to expect,

0:39:04.280 --> 0:39:06.960
<v Speaker 3>the bloombo's comment of Royo, and it's all going to

0:39:07.000 --> 0:39:09.239
<v Speaker 3>be about Cloud, about capital expenditure again.

0:39:09.200 --> 0:39:13.239
<v Speaker 15>Yes exactly. I think everyone's expecting a great quarter for Alphabet. Again,

0:39:13.280 --> 0:39:14.840
<v Speaker 15>it's going to be a lot of attention on Google

0:39:14.880 --> 0:39:18.719
<v Speaker 15>Cloud given that Alphabet basically released Jimini three during the

0:39:18.760 --> 0:39:22.279
<v Speaker 15>last quarter. So we're going to talk about how it's

0:39:22.320 --> 0:39:24.200
<v Speaker 15>been rolling it out in all the products, how the

0:39:24.200 --> 0:39:27.719
<v Speaker 15>distribution is going, and basically they're still dominating search, which

0:39:27.800 --> 0:39:30.480
<v Speaker 15>is expected that they are and how they're depending that

0:39:31.040 --> 0:39:32.759
<v Speaker 15>position against other chatbots.

0:39:33.920 --> 0:39:36.279
<v Speaker 2>Bloombo's Common Royal will be at her desk prime for

0:39:36.320 --> 0:39:39.400
<v Speaker 2>alphabet post market. There are many others reporting. Qualcom is

0:39:39.400 --> 0:39:43.360
<v Speaker 2>one carro Frank reality of it biggest maker smartphone processes.

0:39:43.440 --> 0:39:46.239
<v Speaker 2>We'll learn about the health of the smartphone market, what's

0:39:46.280 --> 0:39:50.160
<v Speaker 2>going on with memory supply chain and general demand. Of course,

0:39:50.280 --> 0:39:53.200
<v Speaker 2>you know you spoke to Christiano at CES right. They

0:39:53.280 --> 0:39:57.719
<v Speaker 2>want to diversify into data center, PC, auto's networking all that,

0:39:58.120 --> 0:39:59.160
<v Speaker 2>but that's their bread.

0:39:58.960 --> 0:40:00.680
<v Speaker 4>And butter and robot as well.

0:40:00.719 --> 0:40:03.440
<v Speaker 3>Really, the future drivers for this business is something I'm

0:40:03.440 --> 0:40:05.080
<v Speaker 3>sure they'll be trying to lean upon. But in the

0:40:05.120 --> 0:40:08.240
<v Speaker 3>here and now, as you say, what is the ramifications

0:40:08.280 --> 0:40:10.480
<v Speaker 3>of memory prices on some of the other clients that

0:40:10.480 --> 0:40:12.880
<v Speaker 3>they serve, how are we seeing Qualcom brace for what

0:40:13.000 --> 0:40:16.800
<v Speaker 3>has been just an extraordinary sell off that we're seeing

0:40:17.000 --> 0:40:19.560
<v Speaker 3>into the hardware ecosystem as well. But this is as

0:40:19.600 --> 0:40:21.520
<v Speaker 3>their fiscal first quarter as the one to look at. Look,

0:40:21.560 --> 0:40:24.399
<v Speaker 3>we've also got chip design in the spotlight, right. Maybe

0:40:24.400 --> 0:40:25.960
<v Speaker 3>one day it wants to be a chip maker too,

0:40:26.000 --> 0:40:28.319
<v Speaker 3>but right now it's a designer and ARM just up

0:40:28.400 --> 0:40:29.600
<v Speaker 3>nine tens percent ahead.

0:40:29.400 --> 0:40:30.160
<v Speaker 4>Of its earnings.

0:40:30.640 --> 0:40:32.560
<v Speaker 3>How are you thinking about the strength of its own

0:40:32.600 --> 0:40:34.640
<v Speaker 3>design Visa Vida competition right now?

0:40:35.280 --> 0:40:38.160
<v Speaker 2>Yeah, Jensen Wong and Video CEO changed the game for

0:40:38.360 --> 0:40:40.600
<v Speaker 2>ARM based CPU. He said it just a couple of

0:40:40.640 --> 0:40:43.239
<v Speaker 2>weeks ago. They're coming to market with their CPU as

0:40:43.239 --> 0:40:46.839
<v Speaker 2>a standalone product. It's based on ARM architecture. AR might

0:40:46.880 --> 0:40:49.239
<v Speaker 2>want to talk that up because that really did send

0:40:49.239 --> 0:40:52.280
<v Speaker 2>some ripples in the market. CPU right now in demand.

0:40:52.880 --> 0:40:55.160
<v Speaker 3>Yeah, we're thinking of total revenue about one and quarter

0:40:55.280 --> 0:40:58.920
<v Speaker 3>billion dollars EPs estemate nineteen cents. But let's just focus

0:40:58.960 --> 0:41:00.680
<v Speaker 3>on these markets today because that does it. With this

0:41:00.800 --> 0:41:04.080
<v Speaker 3>edition of Bloomberg Tech Head, we are seeing such a

0:41:04.160 --> 0:41:06.719
<v Speaker 3>significant sell off across the software names, but in risk

0:41:06.760 --> 0:41:09.560
<v Speaker 3>assets more broadly. Look Bitcoin seventy three thousand, where.

0:41:09.440 --> 0:41:13.080
<v Speaker 2>We stand YEP at his lowest level since the November

0:41:13.120 --> 0:41:16.760
<v Speaker 2>twenty four presidential election. We have a podcast you should

0:41:16.800 --> 0:41:18.799
<v Speaker 2>listen to it. This is Bloomberg Tech