1 00:00:02,520 --> 00:00:13,239 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 2 00:00:13,320 --> 00:00:17,080 Speaker 1: live from Coast to coast with Caroline Hide in New 3 00:00:17,160 --> 00:00:20,160 Speaker 1: York and Eva low in sentrancs. 4 00:00:19,600 --> 00:00:25,560 Speaker 2: Go, This is Bloomberg Tech coming up. Soft Bank sells 5 00:00:25,840 --> 00:00:29,520 Speaker 2: its entire stake in Nvidia for close to six billion dollars. 6 00:00:29,760 --> 00:00:32,560 Speaker 2: This to help bankroll it's other AI investments. 7 00:00:32,640 --> 00:00:34,839 Speaker 3: As we sit down with core Wee've CEO Michael and 8 00:00:34,880 --> 00:00:37,640 Speaker 3: Trader to talk about the company's earnings and that data 9 00:00:37,680 --> 00:00:39,360 Speaker 3: center delay and. 10 00:00:39,320 --> 00:00:42,080 Speaker 2: More earnings with paramount skide answer as the company reports 11 00:00:42,120 --> 00:00:44,960 Speaker 2: its first results since David Ellison's takeover. 12 00:00:45,440 --> 00:00:47,680 Speaker 3: Much to digest when it comes to the fundamentals of 13 00:00:47,720 --> 00:00:49,960 Speaker 3: businesses today, and but overall we've got a bit of 14 00:00:50,040 --> 00:00:52,040 Speaker 3: risk aversion here. We've got some of the biggest players 15 00:00:52,040 --> 00:00:54,160 Speaker 3: in technology. On the downside, you're going to drill into 16 00:00:54,160 --> 00:00:56,960 Speaker 3: the individual movers. But there is a question of AI infrastructure. 17 00:00:56,960 --> 00:00:59,040 Speaker 3: There's a question of pressure or some of these market 18 00:00:59,120 --> 00:01:02,640 Speaker 3: capitalizations of eight ten percent after yesterday's bounce back on 19 00:01:02,760 --> 00:01:04,399 Speaker 3: hopes that the government shutdown might. 20 00:01:04,319 --> 00:01:05,479 Speaker 4: Be reaching some sort of end. 21 00:01:05,520 --> 00:01:07,560 Speaker 3: But then take us to the individual movers. 22 00:01:07,880 --> 00:01:10,200 Speaker 2: Yeah, cor Weave is where we start stock down about 23 00:01:10,240 --> 00:01:13,959 Speaker 2: thirteen percent, on track for its biggest drop since mid August. 24 00:01:14,080 --> 00:01:17,240 Speaker 2: The stock trading in its lowest level since early September. 25 00:01:17,520 --> 00:01:19,040 Speaker 2: In a few minutes time, we're going to speak to 26 00:01:19,080 --> 00:01:20,640 Speaker 2: the CEO, Michael and traitor. 27 00:01:21,120 --> 00:01:22,840 Speaker 5: The company cut its revenue. 28 00:01:22,480 --> 00:01:25,680 Speaker 2: Outlook for fiscal twenty five or trimmed it really because 29 00:01:25,720 --> 00:01:28,479 Speaker 2: of a delay to a specific project. The other thing 30 00:01:28,480 --> 00:01:30,800 Speaker 2: that's weighing on the markets right now is in Vidio 31 00:01:31,000 --> 00:01:35,440 Speaker 2: in video down around two percentage points when last I checked. 32 00:01:35,440 --> 00:01:39,360 Speaker 2: The issue is right now three percent now that soft 33 00:01:39,360 --> 00:01:42,399 Speaker 2: Bank sold its remaining stake in Vidio in its entirety, 34 00:01:42,480 --> 00:01:46,000 Speaker 2: it's not unprecedented. Soft Bank has sold out of Nvidia before. 35 00:01:46,280 --> 00:01:50,360 Speaker 2: I'd also remind our audience yesterday Vidia jumped almost six percent, 36 00:01:50,640 --> 00:01:52,720 Speaker 2: on track for its biggest jump, or was its biggest 37 00:01:52,760 --> 00:01:54,080 Speaker 2: jump since April. 38 00:01:54,280 --> 00:01:56,240 Speaker 5: But the market's a little nervous. Hire. There's a lot 39 00:01:56,320 --> 00:01:56,760 Speaker 5: to unpack. 40 00:01:56,800 --> 00:01:59,640 Speaker 3: Car there is, and let's unpack it with our executive 41 00:01:59,640 --> 00:02:03,440 Speaker 3: Global Tech editor, Peter Elstrom. Peter talk us through what 42 00:02:03,560 --> 00:02:05,920 Speaker 3: is happening, because, as Ed says, this is not unheard of, 43 00:02:06,160 --> 00:02:08,800 Speaker 3: and in many ways what they use the money for 44 00:02:09,120 --> 00:02:13,360 Speaker 3: could end up being a benefit to Invidia longer term. 45 00:02:13,880 --> 00:02:17,280 Speaker 6: Yeah, that's exactly right, Caroline. So SoftBank reported earnings for 46 00:02:17,320 --> 00:02:19,720 Speaker 6: the quarter, they were really blow out earnings. They reported 47 00:02:19,760 --> 00:02:23,000 Speaker 6: about sixteen billion dollars in that income. That's roughly six 48 00:02:23,080 --> 00:02:25,600 Speaker 6: times what had been expected. A lot of that came 49 00:02:25,639 --> 00:02:28,360 Speaker 6: from some of their investments in AI, including their stake 50 00:02:28,639 --> 00:02:31,919 Speaker 6: in open Ai in particular. But as as you mentioned, 51 00:02:32,120 --> 00:02:34,120 Speaker 6: they decided that they were going to sell their entire 52 00:02:34,200 --> 00:02:37,720 Speaker 6: stake in Nvidia and take take the six billion dollars 53 00:02:37,720 --> 00:02:40,079 Speaker 6: so that they can make other investments with it. Now, 54 00:02:40,160 --> 00:02:41,560 Speaker 6: a big part of where they're going to put that 55 00:02:41,639 --> 00:02:44,280 Speaker 6: money is into their Stargate venture, where they're building these 56 00:02:44,320 --> 00:02:46,760 Speaker 6: AI data centers in the US, and they're going to 57 00:02:46,760 --> 00:02:49,120 Speaker 6: buy in Vidia chips to put into those data centers. 58 00:02:49,120 --> 00:02:52,200 Speaker 6: So partly Masioshi son is getting this cash so it 59 00:02:52,240 --> 00:02:54,919 Speaker 6: can make investments in AI. Some people may be reading 60 00:02:54,960 --> 00:02:57,800 Speaker 6: it as a negative sign for AI and for Nvidia 61 00:02:57,880 --> 00:03:00,000 Speaker 6: in particular, but in fact he's going to use that 62 00:03:00,120 --> 00:03:01,120 Speaker 6: need to make investments. 63 00:03:01,720 --> 00:03:05,560 Speaker 2: Again, not unprecedented in Nvidia was a stock that Softbanks 64 00:03:05,560 --> 00:03:07,960 Speaker 2: sold out of in twenty nineteen, and then in twenty 65 00:03:07,960 --> 00:03:10,040 Speaker 2: twenty they started building up his stake again in some 66 00:03:10,120 --> 00:03:13,760 Speaker 2: of those paper games have been to SoftBank's benefit. The 67 00:03:13,840 --> 00:03:16,840 Speaker 2: issue is that management faced a lot of questions both 68 00:03:16,880 --> 00:03:17,320 Speaker 2: about what. 69 00:03:17,280 --> 00:03:18,240 Speaker 5: They're doing here. 70 00:03:18,639 --> 00:03:20,839 Speaker 2: They're rationale what they're going to use the cash forward, 71 00:03:20,880 --> 00:03:23,080 Speaker 2: but also are we in an AI bubble? 72 00:03:23,120 --> 00:03:24,440 Speaker 5: Peter? What did they say? 73 00:03:25,480 --> 00:03:27,400 Speaker 6: Yeah, there was one of the questions that came up. 74 00:03:27,440 --> 00:03:30,360 Speaker 6: So Marcoshi Son doesn't do their earnings calls anymore. He 75 00:03:30,400 --> 00:03:32,160 Speaker 6: stopped doing those a few years ago when he was 76 00:03:32,160 --> 00:03:34,520 Speaker 6: taken arm public. But he has said a number of 77 00:03:34,520 --> 00:03:37,480 Speaker 6: times that he regrets selling in video shares in twenty nineteen, 78 00:03:37,520 --> 00:03:39,760 Speaker 6: as you referred to, those shares would have been worth 79 00:03:39,760 --> 00:03:41,680 Speaker 6: more than two hundred billion dollars now, which is more 80 00:03:41,760 --> 00:03:44,520 Speaker 6: than the market cap for a SoftBank at this point. 81 00:03:44,720 --> 00:03:47,440 Speaker 6: But so the person who stubs in for him as 82 00:03:47,480 --> 00:03:50,840 Speaker 6: the CFO, Yoshimisi Goto, and he talked through these issues. 83 00:03:50,880 --> 00:03:53,720 Speaker 6: He did get some questions about the Invidia shares. He said, 84 00:03:53,720 --> 00:03:56,200 Speaker 6: it's not that they don't believe in Nvidia anymore. He 85 00:03:56,240 --> 00:03:58,320 Speaker 6: also got the question you're referring to are we in 86 00:03:58,360 --> 00:04:00,600 Speaker 6: an AI bubble? And he said it's hard to tell 87 00:04:00,640 --> 00:04:02,800 Speaker 6: at this point. Not quite the same kind of conviction 88 00:04:02,840 --> 00:04:05,040 Speaker 6: you would hear from Sam Altman or from Jensen Wong, 89 00:04:05,240 --> 00:04:07,560 Speaker 6: but he's realistic about we're not really sure where we 90 00:04:07,600 --> 00:04:10,120 Speaker 6: are in this cycle. But to be clear, Masieo Sheson 91 00:04:10,280 --> 00:04:11,640 Speaker 6: is going to keep making investments. 92 00:04:12,040 --> 00:04:14,040 Speaker 3: Peter Elstrom breaking it down, We thank you so much. 93 00:04:14,120 --> 00:04:15,960 Speaker 3: Let's talk about where we are in this cycle. Because 94 00:04:16,000 --> 00:04:19,159 Speaker 3: Core Weave shares, as Ed pointed out earlier, under pressure. 95 00:04:19,400 --> 00:04:21,880 Speaker 3: That's after it lowered its annual revenue forecast due to 96 00:04:21,960 --> 00:04:24,479 Speaker 3: delay it a third party developing a data center really 97 00:04:24,520 --> 00:04:28,120 Speaker 3: overshadowed impressive growth in revenue in order backlog. Let's get 98 00:04:28,120 --> 00:04:30,400 Speaker 3: straight to it with Core Weave CEO Michael and Trader. 99 00:04:30,440 --> 00:04:33,920 Speaker 3: How frustrating is it that you don't own your entire 100 00:04:33,920 --> 00:04:37,640 Speaker 3: supply chain? How much of an issue is some power 101 00:04:37,640 --> 00:04:38,920 Speaker 3: you have to give to third parties? 102 00:04:39,640 --> 00:04:43,320 Speaker 7: Oh so, look, look, I think it's important to understand 103 00:04:43,320 --> 00:04:49,360 Speaker 7: that every single part of this ecosystem is dependent upon 104 00:04:49,440 --> 00:04:54,479 Speaker 7: other parts of the ecosystem. Nobody controls the entire supply chain, 105 00:04:54,760 --> 00:04:59,039 Speaker 7: and that's just the nature of doing business at this 106 00:04:59,160 --> 00:05:03,640 Speaker 7: scale on projects that are as complicated as whether it's 107 00:05:03,760 --> 00:05:09,400 Speaker 7: you know, you know, the the design and architecture of 108 00:05:09,480 --> 00:05:12,240 Speaker 7: the chips, through the fabrication of the chips, through the 109 00:05:12,240 --> 00:05:14,560 Speaker 7: building of the data center, through the concrete that has 110 00:05:14,600 --> 00:05:16,880 Speaker 7: to go into the data center. Like it's just, you know, 111 00:05:17,000 --> 00:05:21,120 Speaker 7: like it's really hard to even contemplate a world in 112 00:05:21,160 --> 00:05:24,200 Speaker 7: which you have true control over every aspect of it. 113 00:05:24,440 --> 00:05:27,720 Speaker 7: And so you're going to work with partners, and you're 114 00:05:27,760 --> 00:05:29,839 Speaker 7: going to work with good partners that are able to 115 00:05:29,880 --> 00:05:30,280 Speaker 7: help you. 116 00:05:31,880 --> 00:05:33,120 Speaker 8: Drive your business forward. 117 00:05:33,760 --> 00:05:35,919 Speaker 3: Is this a good partner who's had issues at this 118 00:05:35,960 --> 00:05:36,760 Speaker 3: PowerShell level? 119 00:05:36,880 --> 00:05:39,000 Speaker 7: Yeah, Look, they are a good partner, right, Like, we've 120 00:05:39,000 --> 00:05:41,279 Speaker 7: been working with these guys since twenty and eighteen. 121 00:05:42,080 --> 00:05:44,600 Speaker 8: There there has been a stumble. 122 00:05:44,240 --> 00:05:46,839 Speaker 7: There's an issue. The issue is going to be cleaned 123 00:05:46,920 --> 00:05:50,680 Speaker 7: up rapidly. But I wouldn't say that they're not a 124 00:05:50,720 --> 00:05:53,359 Speaker 7: good partner. I think that, you know, we are. You know, 125 00:05:53,360 --> 00:05:56,239 Speaker 7: we've gone back and contracted with them again and again, 126 00:05:56,279 --> 00:05:58,520 Speaker 7: and you know they've contracted with us again and again 127 00:05:58,560 --> 00:06:01,320 Speaker 7: because you know, we do work well together. It's just 128 00:06:01,440 --> 00:06:04,160 Speaker 7: you know, occasionally you hit a bump in the road. 129 00:06:04,760 --> 00:06:08,039 Speaker 7: You know, what we're talking about here is a contract 130 00:06:08,040 --> 00:06:12,599 Speaker 7: that gets pushed back by you know, uh one quarter, 131 00:06:12,720 --> 00:06:16,039 Speaker 7: let's say, and that the impact of that on our 132 00:06:16,160 --> 00:06:19,960 Speaker 7: revenue is a delay of revenue, not a loss of revenue. 133 00:06:20,279 --> 00:06:22,600 Speaker 7: And uh, you know, I think that is the definition 134 00:06:22,680 --> 00:06:23,280 Speaker 7: of working with. 135 00:06:23,240 --> 00:06:25,880 Speaker 8: An ecosystem of good partners. 136 00:06:25,880 --> 00:06:26,719 Speaker 5: Michael, good morning. 137 00:06:27,279 --> 00:06:30,400 Speaker 2: Which customer was it pleased that was impacted by this delay? 138 00:06:30,520 --> 00:06:34,440 Speaker 7: We don't speak to specific customers within the data centers. 139 00:06:34,480 --> 00:06:35,880 Speaker 8: That's that's not how we look at it. 140 00:06:36,000 --> 00:06:38,359 Speaker 7: But you know, we we we really are working with 141 00:06:38,520 --> 00:06:45,240 Speaker 7: the whole you know, or a material part of the broader. 142 00:06:45,000 --> 00:06:45,480 Speaker 8: Kind of. 143 00:06:47,760 --> 00:06:51,120 Speaker 7: Ecosystem that consumes compute at this scale. So you know 144 00:06:51,160 --> 00:06:53,640 Speaker 7: that that that's you know, there's a large project, it's 145 00:06:53,720 --> 00:06:57,719 Speaker 7: from a large counterpart, and you know, like I said, 146 00:06:57,839 --> 00:07:00,560 Speaker 7: you know they they understand, uh, the the impact of 147 00:07:00,560 --> 00:07:02,000 Speaker 7: this delay and that they are. 148 00:07:03,600 --> 00:07:04,680 Speaker 8: Shifting with us. 149 00:07:04,760 --> 00:07:07,560 Speaker 7: The contract back to ensure that the total contract value 150 00:07:07,839 --> 00:07:10,200 Speaker 7: that was being contemplated is going to be captured at 151 00:07:10,200 --> 00:07:12,520 Speaker 7: this reilm. 152 00:07:11,840 --> 00:07:14,720 Speaker 2: I thought you might say that, but I wanted to 153 00:07:14,800 --> 00:07:17,280 Speaker 2: offer you the opportunity to explain who the customer was. 154 00:07:17,320 --> 00:07:17,720 Speaker 5: Anyway. 155 00:07:18,040 --> 00:07:20,760 Speaker 2: I appreciate this is going to sound a little bit 156 00:07:20,840 --> 00:07:23,280 Speaker 2: like I work in your internal audit team or in 157 00:07:23,320 --> 00:07:26,080 Speaker 2: your risk team, but there is a bigger issue here 158 00:07:26,080 --> 00:07:29,080 Speaker 2: of managing third party risk as much as you can. 159 00:07:29,680 --> 00:07:34,040 Speaker 2: So if your supply is tight today, what procedures are 160 00:07:34,040 --> 00:07:37,080 Speaker 2: you putting in place for the event that your backlog 161 00:07:37,200 --> 00:07:39,880 Speaker 2: doubles and supply is even tighter down the road. 162 00:07:40,720 --> 00:07:43,239 Speaker 7: Listen, that's a that's a that's that is the question 163 00:07:43,360 --> 00:07:47,040 Speaker 7: that we work on across our company continuously, right And 164 00:07:47,400 --> 00:07:50,240 Speaker 7: if you, if you, if you think about the messages 165 00:07:50,280 --> 00:07:52,480 Speaker 7: that I was trying to communicate. 166 00:07:54,120 --> 00:07:55,280 Speaker 8: During the earning. 167 00:07:55,040 --> 00:08:00,520 Speaker 7: Scroll yesterday, I talked about the incredible impact of the 168 00:08:00,600 --> 00:08:04,080 Speaker 7: effort that we've had to diversify our clients. We started 169 00:08:04,080 --> 00:08:06,800 Speaker 7: the year with you know, eighty five percent of our 170 00:08:06,800 --> 00:08:10,120 Speaker 7: revenue to a single client, and we are coming out 171 00:08:10,200 --> 00:08:13,240 Speaker 7: of the year with our back log with you know, 172 00:08:13,280 --> 00:08:16,160 Speaker 7: which has reached you know, all time highs where no 173 00:08:16,840 --> 00:08:20,400 Speaker 7: specific client is more than thirty five percent of it. 174 00:08:20,600 --> 00:08:22,800 Speaker 7: And that is down from fifty percent even last quarter. 175 00:08:22,840 --> 00:08:26,160 Speaker 7: So you're seeing tremendous progress on the contracting side, on 176 00:08:26,240 --> 00:08:29,920 Speaker 7: the supply side, when you're looking at the powershells the 177 00:08:30,000 --> 00:08:34,320 Speaker 7: data center providers, you know, there is no single provider 178 00:08:34,360 --> 00:08:39,800 Speaker 7: of data centers that represents in excess of twenty percent 179 00:08:40,040 --> 00:08:43,680 Speaker 7: of our two point nine gigawatts of power that we 180 00:08:43,720 --> 00:08:47,360 Speaker 7: will be delivering to the market over the next twenty 181 00:08:47,440 --> 00:08:48,160 Speaker 7: four months. 182 00:08:48,600 --> 00:08:48,840 Speaker 9: You know. 183 00:08:48,960 --> 00:08:52,200 Speaker 7: So you're seeing a real focus by our company to 184 00:08:52,520 --> 00:08:57,200 Speaker 7: diversify on both sides of the you know, the ledger, 185 00:08:58,360 --> 00:09:03,240 Speaker 7: the clients that we are delivering infrastructure to as well 186 00:09:03,280 --> 00:09:06,920 Speaker 7: as the suppliers that are delivering us the components that 187 00:09:07,000 --> 00:09:08,280 Speaker 7: we need to be successful. 188 00:09:08,760 --> 00:09:11,840 Speaker 3: What can be done Because we hear about power issues, 189 00:09:11,840 --> 00:09:12,720 Speaker 3: we hear about how much. 190 00:09:12,640 --> 00:09:15,119 Speaker 4: People maybe need government to help speed. 191 00:09:14,920 --> 00:09:18,280 Speaker 3: Up contracts, supply chain headaches. What is it in this 192 00:09:18,320 --> 00:09:21,880 Speaker 3: particular data center issue that won't be replicated down the road. 193 00:09:21,920 --> 00:09:23,680 Speaker 3: How are you making sure or is it just something 194 00:09:23,679 --> 00:09:25,560 Speaker 3: we are going to see time and time again do 195 00:09:25,559 --> 00:09:26,280 Speaker 3: you think so? 196 00:09:28,400 --> 00:09:31,360 Speaker 7: Look the way that we are handling this is we 197 00:09:31,400 --> 00:09:37,120 Speaker 7: are doing several discrete things to ensure that we are 198 00:09:38,360 --> 00:09:40,920 Speaker 7: future proofing ourselves against these type of delays. 199 00:09:41,000 --> 00:09:41,200 Speaker 8: Right. 200 00:09:41,400 --> 00:09:45,560 Speaker 7: So, we have our team that has been built out 201 00:09:45,679 --> 00:09:49,600 Speaker 7: over the past year that builds and delivers data center 202 00:09:49,760 --> 00:09:52,760 Speaker 7: and so we have self build organization to be able 203 00:09:52,800 --> 00:09:56,000 Speaker 7: to deliver our own data centers for instance, Kenilworth in 204 00:09:56,040 --> 00:09:59,240 Speaker 7: New Jersey or Lancaster in Pennsylvania, where we are building 205 00:09:59,800 --> 00:10:00,760 Speaker 7: from the ground up. 206 00:10:01,679 --> 00:10:03,000 Speaker 8: Those skill sets. 207 00:10:02,720 --> 00:10:06,920 Speaker 7: Being able to deploy those individuals with those talents down 208 00:10:07,000 --> 00:10:12,280 Speaker 7: to the data centers as they're being constructed by third parties. 209 00:10:12,320 --> 00:10:17,199 Speaker 7: If they encounter problems where we can be useful, helpful 210 00:10:17,280 --> 00:10:20,840 Speaker 7: thinking through ways of solving and driving the process forward 211 00:10:21,160 --> 00:10:24,040 Speaker 7: is really important to being able to mitigate these type 212 00:10:24,080 --> 00:10:24,680 Speaker 7: of delays. 213 00:10:25,600 --> 00:10:28,000 Speaker 8: We have massively. 214 00:10:29,040 --> 00:10:33,160 Speaker 7: Diversified our data center providers so we're not exposed to 215 00:10:33,280 --> 00:10:36,359 Speaker 7: any specific they say to data center provider. 216 00:10:38,480 --> 00:10:40,440 Speaker 8: In too large of a component. 217 00:10:40,520 --> 00:10:43,200 Speaker 7: And then the third piece of it is it's important 218 00:10:43,200 --> 00:10:47,720 Speaker 7: to understand that as we get larger, as our delivered 219 00:10:47,760 --> 00:10:51,640 Speaker 7: power gets larger, the relative impact of a delay at 220 00:10:51,720 --> 00:10:56,040 Speaker 7: any one given site becomes less and less meaningful and 221 00:10:56,120 --> 00:10:58,840 Speaker 7: less and less impactful on our. 222 00:11:00,840 --> 00:11:02,960 Speaker 8: Run rate. And that's really important. 223 00:11:03,000 --> 00:11:09,119 Speaker 7: Like you're encountering scaling issues within a company, that's encountering 224 00:11:09,240 --> 00:11:10,559 Speaker 7: scaling issues. 225 00:11:10,200 --> 00:11:13,120 Speaker 8: Within a supply chain, both of those will get better. 226 00:11:13,440 --> 00:11:16,560 Speaker 8: Time solves that scale solves that we. 227 00:11:16,480 --> 00:11:19,680 Speaker 3: Are currently seeing that time isn't particularly helping the share price. 228 00:11:19,720 --> 00:11:21,760 Speaker 3: As we speak, it's now down fourteen point three percent, 229 00:11:21,800 --> 00:11:22,800 Speaker 3: worst day since August. 230 00:11:22,880 --> 00:11:26,080 Speaker 4: We are here with Michael and Trader across radio and TV, and. 231 00:11:26,000 --> 00:11:28,960 Speaker 3: I want to sort of ask whether you think more broadly, 232 00:11:30,280 --> 00:11:33,760 Speaker 3: the US is stunted by the supply chain headache, or 233 00:11:33,920 --> 00:11:35,720 Speaker 3: do you think there is something that can be done 234 00:11:35,720 --> 00:11:38,280 Speaker 3: from a federal perspective here to ensure that you can 235 00:11:38,360 --> 00:11:40,120 Speaker 3: build at the rate you want to build you're not 236 00:11:40,160 --> 00:11:41,400 Speaker 3: having these sorts of headaches. 237 00:11:41,760 --> 00:11:47,360 Speaker 7: So we've been we and many others have been, you know, 238 00:11:47,520 --> 00:11:52,000 Speaker 7: quite forceful in making the case that there is a 239 00:11:52,080 --> 00:11:56,839 Speaker 7: role for government in helping us with some of the 240 00:11:56,880 --> 00:12:02,000 Speaker 7: permitting issues, speed to which you can get our infrastructure 241 00:12:02,600 --> 00:12:05,040 Speaker 7: and others can get their infrastructure attached to the grid. 242 00:12:05,240 --> 00:12:07,840 Speaker 7: You know, all of those type of things where there's 243 00:12:07,960 --> 00:12:10,760 Speaker 7: there's there's a great role for for for the government 244 00:12:10,960 --> 00:12:13,840 Speaker 7: to help in that. They are the they are the 245 00:12:14,000 --> 00:12:18,320 Speaker 7: organization or government entity that is correctly positioned to help 246 00:12:18,480 --> 00:12:21,640 Speaker 7: facilitate that. And I think that's a great role where 247 00:12:21,720 --> 00:12:24,840 Speaker 7: where government can lean in and make an impact across 248 00:12:24,880 --> 00:12:25,280 Speaker 7: the space. 249 00:12:25,320 --> 00:12:29,720 Speaker 2: Broble Michael, you have an agreement within NVIDIA that lots 250 00:12:29,720 --> 00:12:32,120 Speaker 2: of people find very interesting that down the road, if 251 00:12:32,160 --> 00:12:36,400 Speaker 2: there is spare capacity, there's some flexibility for you to 252 00:12:36,480 --> 00:12:40,120 Speaker 2: deploy it elsewhere. That's a simple summation of it. But 253 00:12:40,440 --> 00:12:42,720 Speaker 2: I'm wondering how you're thinking about serving some of the 254 00:12:42,800 --> 00:12:46,840 Speaker 2: smaller AI labs and casting that net even wider in 255 00:12:46,880 --> 00:12:50,720 Speaker 2: your customer base if indeed that capacity gets freed up 256 00:12:50,760 --> 00:12:51,480 Speaker 2: down the line. 257 00:12:51,960 --> 00:12:55,480 Speaker 7: Yeah, it's a it's a contract. I'm actually incredibly excited about, right. 258 00:12:55,559 --> 00:12:59,160 Speaker 7: It's a contract that we did within VideA where we 259 00:12:59,200 --> 00:13:02,560 Speaker 7: will deliver them compute for the next six years. But 260 00:13:03,240 --> 00:13:06,280 Speaker 7: in the contract is the capacity to interrupt the flow 261 00:13:06,280 --> 00:13:10,480 Speaker 7: of compute to them, and that will allow us to 262 00:13:10,600 --> 00:13:17,000 Speaker 7: repurpose that compute to new companies, startups, companies that have 263 00:13:17,160 --> 00:13:20,160 Speaker 7: struggled to get access to the compute that they require 264 00:13:20,800 --> 00:13:25,840 Speaker 7: to bring new companies, organizations, ideas into existence. And I 265 00:13:25,840 --> 00:13:31,559 Speaker 7: think it's just an incredibly important component of how the 266 00:13:31,600 --> 00:13:36,000 Speaker 7: infrastructure is so important to allowing the ecosystem itself, of 267 00:13:36,040 --> 00:13:38,640 Speaker 7: these startups, of these new companies, of these new ideas 268 00:13:38,760 --> 00:13:44,280 Speaker 7: to become more resilient, to become more scaled, And it's 269 00:13:44,320 --> 00:13:45,920 Speaker 7: just a great contract for us to be. 270 00:13:45,960 --> 00:13:47,280 Speaker 8: Able to position ourselves. 271 00:13:47,400 --> 00:13:50,880 Speaker 7: It also provides this wonderful on ramp for us to 272 00:13:50,880 --> 00:13:54,360 Speaker 7: be able to work with the new amazing companies that 273 00:13:54,400 --> 00:13:57,520 Speaker 7: are coming into existence so that they integrate into our 274 00:13:57,679 --> 00:14:00,880 Speaker 7: solution and get to make use of the best alternative 275 00:14:00,880 --> 00:14:03,320 Speaker 7: that exists in the market as they're scaling their companies. 276 00:14:04,400 --> 00:14:07,480 Speaker 2: Michael, it's finished to what extent is in Vidious still 277 00:14:07,520 --> 00:14:10,640 Speaker 2: the gold standard in videous GPUs for your customer base 278 00:14:11,040 --> 00:14:13,640 Speaker 2: and what data are you tracking on demand for those 279 00:14:13,720 --> 00:14:18,960 Speaker 2: kind of more inferenced specific chips that are offered by others. 280 00:14:19,680 --> 00:14:24,960 Speaker 7: So look, we have always been client led, right. Our 281 00:14:25,280 --> 00:14:28,560 Speaker 7: clients come to market and tell us, hey, we would 282 00:14:28,600 --> 00:14:31,880 Speaker 7: like you guys to help us build a cluster. We 283 00:14:31,960 --> 00:14:34,120 Speaker 7: needed to be this size and this location and this 284 00:14:34,160 --> 00:14:36,440 Speaker 7: type of network, and we work with them in a 285 00:14:36,560 --> 00:14:40,880 Speaker 7: very kind of interactive way to ensure that the infrastructure 286 00:14:40,880 --> 00:14:44,320 Speaker 7: that we're building is the best infrastructure for them, is 287 00:14:44,400 --> 00:14:48,280 Speaker 7: fungible for us, like all of these type of requirements 288 00:14:48,280 --> 00:14:52,360 Speaker 7: to make for successful delivery of infrastructure. Right now, the 289 00:14:53,280 --> 00:14:58,600 Speaker 7: reality of the situation is the buy signals from our 290 00:14:58,880 --> 00:15:04,200 Speaker 7: clients overwhelm our capacity to deliver infrastructure to the market. 291 00:15:04,440 --> 00:15:07,320 Speaker 7: As a matter of fact, they overwhelmed the entire market's 292 00:15:07,360 --> 00:15:11,080 Speaker 7: capacity to deliver infrastructure to the market. You have a 293 00:15:11,400 --> 00:15:17,720 Speaker 7: systemic shortage of ability to deliver the GPU's the computing 294 00:15:17,760 --> 00:15:21,600 Speaker 7: infrastructure for the buildout of artificial intelligence and we have 295 00:15:21,680 --> 00:15:24,240 Speaker 7: never wavered from that position. We have been very very 296 00:15:24,280 --> 00:15:27,280 Speaker 7: clear that you know, when we look at the demand 297 00:15:27,320 --> 00:15:31,040 Speaker 7: signals coming into core Weave, the totality of that overwhelms 298 00:15:31,040 --> 00:15:33,600 Speaker 7: the capacity of the market to deliver that, and will 299 00:15:33,640 --> 00:15:35,600 Speaker 7: continue to do that for quite a while. 300 00:15:37,040 --> 00:15:39,920 Speaker 2: Michael Intradeser, Core Weave CEO, thank you for coming back 301 00:15:40,080 --> 00:15:43,920 Speaker 2: on Bloomberg tet. Okay, I'm also taking a look at 302 00:15:43,920 --> 00:15:47,200 Speaker 2: shares of Nebus. This is the Neo Clouds spun out 303 00:15:47,240 --> 00:15:50,880 Speaker 2: of Russia's Yandex A year ago. The USS shares down 304 00:15:50,880 --> 00:15:53,760 Speaker 2: more than three percent, but in the quarter soul growth 305 00:15:54,240 --> 00:15:57,440 Speaker 2: of three hundred percent year on year and has added 306 00:15:57,480 --> 00:16:01,320 Speaker 2: a major contract with Meta. That's positive upside. Maybe this 307 00:16:01,440 --> 00:16:04,520 Speaker 2: was a high bar kind of quarter where the market 308 00:16:04,560 --> 00:16:06,120 Speaker 2: saw it coming in, But you know, Cara, I think 309 00:16:06,160 --> 00:16:08,800 Speaker 2: you'd agree. Nebus name that's coming up more often in 310 00:16:08,880 --> 00:16:12,280 Speaker 2: the context of hyperscalers and this case Meta using them 311 00:16:12,320 --> 00:16:13,960 Speaker 2: for off ramped compute. 312 00:16:14,240 --> 00:16:16,240 Speaker 4: All about the supply of AI infrastructure. 313 00:16:16,240 --> 00:16:19,600 Speaker 3: But coming up, we steered towards earnings again, paramount s 314 00:16:19,600 --> 00:16:22,560 Speaker 3: guidance raising its target though for job cuts and for 315 00:16:22,640 --> 00:16:24,600 Speaker 3: cost saving measures we'll dig in next. 316 00:16:24,920 --> 00:16:26,040 Speaker 4: This is a Blueberg Tech. 317 00:16:33,440 --> 00:16:36,720 Speaker 2: Back to earnings with paramount Skuidance, which reported it's financial 318 00:16:36,760 --> 00:16:39,480 Speaker 2: results for the first time since a new investor group 319 00:16:39,560 --> 00:16:42,480 Speaker 2: took over in August. The company raised its target for 320 00:16:42,600 --> 00:16:46,160 Speaker 2: job cuts and cost saving measures, and it's forecasting thirty 321 00:16:46,160 --> 00:16:49,080 Speaker 2: billion dollars in revenue next year. Let's break it all 322 00:16:49,080 --> 00:16:52,560 Speaker 2: down with Laura Martin's senior entertainment analyst at Needham. I 323 00:16:52,560 --> 00:16:55,360 Speaker 2: don't know, like, hello, what's being cheered here? You know, 324 00:16:55,560 --> 00:16:58,960 Speaker 2: sometimes cutting your way to profit and cutting your way 325 00:16:58,960 --> 00:17:02,040 Speaker 2: into a good financial positions not the most exciting story. 326 00:17:02,280 --> 00:17:04,119 Speaker 2: What is the Laura Martin main takeaway? 327 00:17:05,600 --> 00:17:08,160 Speaker 10: Well, the Laura Martin main takeaway was I thought they 328 00:17:09,119 --> 00:17:12,880 Speaker 10: left more questions unanswered than they answered. So I think 329 00:17:13,000 --> 00:17:14,919 Speaker 10: one of the big questions is they just did an 330 00:17:14,920 --> 00:17:19,600 Speaker 10: affiliated transaction with Oracle, which for Enterprise Software, which is 331 00:17:19,640 --> 00:17:22,600 Speaker 10: the dad's company. So now you can, through pricing, move 332 00:17:22,600 --> 00:17:26,040 Speaker 10: money between these two public companies. That sort of was weird. 333 00:17:26,400 --> 00:17:28,359 Speaker 10: And then also they said they're going to spend a 334 00:17:28,400 --> 00:17:31,240 Speaker 10: billion five on content and double their film slate from 335 00:17:31,320 --> 00:17:34,320 Speaker 10: seven films a year to fifteen films a year starting 336 00:17:34,320 --> 00:17:36,720 Speaker 10: in twenty twenty six. And the problem with that is 337 00:17:36,840 --> 00:17:40,200 Speaker 10: the sky Dance track record is one theatrical release a year, 338 00:17:40,800 --> 00:17:44,320 Speaker 10: so so going to five fifteen means not only are 339 00:17:44,320 --> 00:17:46,360 Speaker 10: you spending the money on the negative cost, but now 340 00:17:46,359 --> 00:17:48,600 Speaker 10: you're going to spend about one hundred million each marketing, 341 00:17:48,920 --> 00:17:51,119 Speaker 10: which all just sounds like an awful lot of money 342 00:17:51,160 --> 00:17:53,720 Speaker 10: that you're spending in the near term, which is a 343 00:17:53,840 --> 00:17:56,840 Speaker 10: tax on public shareholders before you get the return. It 344 00:17:56,840 --> 00:17:59,440 Speaker 10: takes about three years to release a movie between green 345 00:17:59,520 --> 00:18:01,600 Speaker 10: lining and release, which means you have a couple of 346 00:18:01,640 --> 00:18:05,440 Speaker 10: investment years ahead of you, which doesn't sound like you know, 347 00:18:05,520 --> 00:18:07,840 Speaker 10: so we're going to stay on the sidelines here. In 348 00:18:07,920 --> 00:18:09,760 Speaker 10: terms of the shares. 349 00:18:10,240 --> 00:18:13,400 Speaker 3: I want to go back to that relationship between Oracle 350 00:18:13,680 --> 00:18:17,080 Speaker 3: and the affiliated transaction that you mention, implying that the 351 00:18:17,160 --> 00:18:19,919 Speaker 3: value can be transferred between the two public companies. How 352 00:18:20,000 --> 00:18:22,800 Speaker 3: much is that help if we're thinking about the shar 353 00:18:22,920 --> 00:18:26,679 Speaker 3: scale of money David Ellison needs perhaps from Larry Edison 354 00:18:26,720 --> 00:18:30,240 Speaker 3: to keep on buying in WBD assets, or how much 355 00:18:30,359 --> 00:18:32,280 Speaker 3: is it a concern just in what are you actually 356 00:18:32,320 --> 00:18:34,640 Speaker 3: buying an entertainment company here or a tech an AI 357 00:18:34,720 --> 00:18:37,439 Speaker 3: infrastructure bet so. 358 00:18:37,880 --> 00:18:40,080 Speaker 10: I think that is one of the differentiated things they're 359 00:18:40,080 --> 00:18:43,960 Speaker 10: saying is they're saying that our content storytelling is complementary 360 00:18:44,000 --> 00:18:46,960 Speaker 10: to our tech stack, and our tech stack needs investment 361 00:18:47,280 --> 00:18:50,840 Speaker 10: because Paramount, the old Paramount sort of starved it. So 362 00:18:50,920 --> 00:18:54,720 Speaker 10: we p Sky are going to invest in the tech stack. 363 00:18:55,000 --> 00:18:57,080 Speaker 10: So from a fundamental point of view, they're going to 364 00:18:57,080 --> 00:19:01,400 Speaker 10: try to marry storytelling with Jenai tech, which is sort 365 00:19:01,400 --> 00:19:04,320 Speaker 10: of a cool messaging although expensive in the near term. 366 00:19:04,720 --> 00:19:06,920 Speaker 10: I would say the oracle point was just a new 367 00:19:06,960 --> 00:19:10,560 Speaker 10: piece of information we got, having nothing to do with 368 00:19:10,560 --> 00:19:13,520 Speaker 10: the Warner Brothers. Like if the dad writes a seventy 369 00:19:13,560 --> 00:19:17,320 Speaker 10: billion dollar check to Warner Brothers, like you know, that's 370 00:19:17,440 --> 00:19:20,560 Speaker 10: a bigger deal than a contract might be several million 371 00:19:20,600 --> 00:19:24,639 Speaker 10: a year. So it was just an affiliated transaction that 372 00:19:24,960 --> 00:19:26,800 Speaker 10: I just would really like to see the pricing on 373 00:19:26,920 --> 00:19:28,679 Speaker 10: when they have to disclose it in a ten K. 374 00:19:29,119 --> 00:19:31,360 Speaker 10: But this's just a new piece of information. I think 375 00:19:31,359 --> 00:19:33,200 Speaker 10: the big issue is you don't know what you're buying here. 376 00:19:33,240 --> 00:19:38,680 Speaker 10: Are you buying a sixteen billion dollar subscale Paramount sky 377 00:19:38,800 --> 00:19:41,040 Speaker 10: Dance or are you buying a Are they going to 378 00:19:41,160 --> 00:19:44,600 Speaker 10: use money to make a seventy billion dollar acquisition of 379 00:19:44,640 --> 00:19:47,240 Speaker 10: all of Warner Brothers and then that's a hundred that's 380 00:19:47,320 --> 00:19:51,400 Speaker 10: round numbers, one hundred billion dollars scaled player with bigger 381 00:19:51,440 --> 00:19:54,480 Speaker 10: everything including studios. So then you wouldn't have to double 382 00:19:54,520 --> 00:19:57,320 Speaker 10: the films because Warner Brothers got fifteen by itself already. 383 00:19:57,400 --> 00:20:00,480 Speaker 10: So I think they might be justifying of warn Brother's 384 00:20:00,520 --> 00:20:02,760 Speaker 10: bid in some ways with some of their cost estimates. 385 00:20:02,760 --> 00:20:05,360 Speaker 5: Here, Laura, very quick pivot here. 386 00:20:05,400 --> 00:20:08,359 Speaker 2: You just heard the cool weave interview, you published your 387 00:20:08,400 --> 00:20:10,080 Speaker 2: research on hyperscale capex. 388 00:20:10,480 --> 00:20:12,040 Speaker 5: Just a quick reaction to what you heard. 389 00:20:14,080 --> 00:20:16,000 Speaker 10: Yeah, So, I mean, I think one of the big 390 00:20:16,200 --> 00:20:19,000 Speaker 10: biggest question we get is are the hyperscaler spending too 391 00:20:19,080 --> 00:20:21,800 Speaker 10: much money on infrastructure? And we published a note this 392 00:20:21,880 --> 00:20:27,320 Speaker 10: morning showing that the JENAI implementations at Amazon, Meta, and 393 00:20:27,440 --> 00:20:33,399 Speaker 10: Alphabet are accelerating their revenue growth and cutting their operating costs. 394 00:20:33,440 --> 00:20:37,560 Speaker 10: So they're getting margin expansion by using generative AI tools, 395 00:20:37,840 --> 00:20:42,160 Speaker 10: which gives them the confidence to invest in these infrastructure 396 00:20:42,200 --> 00:20:45,720 Speaker 10: plays to then sell to third parties those same capabilities 397 00:20:46,040 --> 00:20:51,240 Speaker 10: to lower costs and drive faster product innovation for the 398 00:20:51,280 --> 00:20:54,320 Speaker 10: rest of the US economy. So I actually think that 399 00:20:54,680 --> 00:20:58,480 Speaker 10: the biggest funders of generative AI infrastructure are seeing the 400 00:20:58,480 --> 00:21:00,760 Speaker 10: biggest benefits already in their own businesses. 401 00:21:01,280 --> 00:21:03,320 Speaker 4: Laur Martin on optimistic mode for the end. 402 00:21:03,320 --> 00:21:06,440 Speaker 3: We really appreciate it always from Needham, keep coming back, 403 00:21:06,480 --> 00:21:06,879 Speaker 3: thank you. 404 00:21:08,480 --> 00:21:12,400 Speaker 11: The valuations don't look crazy, but they do if there's nervousness. 405 00:21:12,440 --> 00:21:14,480 Speaker 11: Are on the growth story in and that's why I 406 00:21:14,480 --> 00:21:17,240 Speaker 11: think the AI story, of which we do remain bullish, 407 00:21:17,280 --> 00:21:18,880 Speaker 11: and we do think that there is a lot further 408 00:21:18,960 --> 00:21:21,320 Speaker 11: to go, it is likely to be a volatile ride. 409 00:21:22,800 --> 00:21:25,800 Speaker 2: That was Black Rocks Helen Jewels discussing the nervousness we're 410 00:21:25,800 --> 00:21:27,199 Speaker 2: seeing in AI stocks right now. 411 00:21:27,200 --> 00:21:28,640 Speaker 5: You can see that in nvideo and you can see 412 00:21:28,640 --> 00:21:29,399 Speaker 5: it in core Wave. 413 00:21:29,720 --> 00:21:32,680 Speaker 2: As we've been discussing all morning, the risks aren't only 414 00:21:32,720 --> 00:21:36,639 Speaker 2: about lack of growth. Bloomberg opinion columnist Chris Bryant, writing 415 00:21:36,680 --> 00:21:40,840 Speaker 2: about that there's a quote a danger of depreciation tsunami, 416 00:21:40,880 --> 00:21:43,960 Speaker 2: links to the short lifespan of AI chips. His piece 417 00:21:44,240 --> 00:21:48,760 Speaker 2: focuses on AI investors ignoring warnings from short seller Michael Berry. 418 00:21:49,200 --> 00:21:51,440 Speaker 2: You can check that out on the Bloomberg terminal or 419 00:21:51,480 --> 00:21:52,320 Speaker 2: dot com carac. 420 00:21:52,760 --> 00:21:53,000 Speaker 4: Yeah. 421 00:21:53,040 --> 00:21:55,880 Speaker 3: Now, though, ed, it's time for talking tech, and first up, 422 00:21:56,119 --> 00:21:58,800 Speaker 3: Microsoft is planning to build a ten billion dollar AI 423 00:21:58,880 --> 00:22:01,040 Speaker 3: data center the Portuguese coast. 424 00:22:01,240 --> 00:22:02,480 Speaker 4: He's working with start. 425 00:22:02,280 --> 00:22:05,600 Speaker 3: Campus, the Portuguese developer, and British startup Ndscale, one of 426 00:22:05,600 --> 00:22:10,560 Speaker 3: Microsoft's biggest European investments this year. Plus, Intel's chief technology 427 00:22:10,640 --> 00:22:13,919 Speaker 3: and AI officer Sajin Kati has left to join Open Ai, 428 00:22:14,119 --> 00:22:15,360 Speaker 3: where he'll be working on the. 429 00:22:15,280 --> 00:22:16,600 Speaker 4: Startups infrastructure efforts. 430 00:22:16,720 --> 00:22:19,440 Speaker 3: Back in Intel, well CEO Lit Tan will take over 431 00:22:19,600 --> 00:22:23,639 Speaker 3: Catty's role and reports on another major departure, Meta is 432 00:22:23,680 --> 00:22:26,200 Speaker 3: set to lose its chief AI scientist, Jan Kuhn. 433 00:22:26,480 --> 00:22:28,560 Speaker 4: According to Financial Times. 434 00:22:28,320 --> 00:22:30,879 Speaker 3: Lacun is reportedly leaving to launch his own style up, 435 00:22:30,960 --> 00:22:33,640 Speaker 3: focusing on what he calls world models, as in early 436 00:22:33,680 --> 00:22:35,880 Speaker 3: talks with investors to raise funds. 437 00:22:42,119 --> 00:22:44,280 Speaker 2: Welcome back to Bloomberg Tech if you're just joining us. 438 00:22:44,320 --> 00:22:47,320 Speaker 2: Our top stories are coll Weave and Nvidio. In video 439 00:22:47,400 --> 00:22:51,040 Speaker 2: down three percent, SoftBank is selling out of the entirety 440 00:22:51,320 --> 00:22:53,760 Speaker 2: of it's almost six billion dollar steak in the company 441 00:22:53,840 --> 00:22:56,919 Speaker 2: because it needs cash to finance his other AI ventures. 442 00:22:56,960 --> 00:22:59,560 Speaker 2: The street not really seeing this as a concern about 443 00:22:59,600 --> 00:23:02,800 Speaker 2: in video itself, but in aggregate taken with cor Weave's 444 00:23:02,800 --> 00:23:05,919 Speaker 2: almost fourteen percent drop, there are some jitters in the market. 445 00:23:05,960 --> 00:23:09,639 Speaker 2: Corweave is down after just slightly trimming it's outlook for 446 00:23:09,680 --> 00:23:12,359 Speaker 2: sales in twenty twenty five because of a delay on 447 00:23:12,400 --> 00:23:15,919 Speaker 2: a specific data center project that delayed trimbutable to a 448 00:23:15,960 --> 00:23:18,280 Speaker 2: third party. And in an interview of the CEO earlier 449 00:23:18,280 --> 00:23:20,520 Speaker 2: in the program, we didn't really get any answers on 450 00:23:20,560 --> 00:23:23,399 Speaker 2: who the customer impact it is. But with time and 451 00:23:23,440 --> 00:23:26,720 Speaker 2: with scale, such supply issues will go away. The market 452 00:23:26,800 --> 00:23:27,679 Speaker 2: right now not buying it. 453 00:23:27,760 --> 00:23:30,560 Speaker 3: Kra they're not, and let's stick in with the fact 454 00:23:30,600 --> 00:23:33,000 Speaker 3: that the market's not buying it. Bloomberg Gecrity's reporter comm 455 00:23:33,000 --> 00:23:36,040 Speaker 3: and Rhyinikey is here with us and it's interesting the 456 00:23:36,119 --> 00:23:38,359 Speaker 3: jitters around AI of late have been around an AI 457 00:23:38,480 --> 00:23:42,960 Speaker 3: bubble and demand concern but ultimately these are supply side issues. 458 00:23:43,040 --> 00:23:46,400 Speaker 3: Constraints for cor Weave, maybe the cash constraints for Softbag 459 00:23:46,440 --> 00:23:47,520 Speaker 3: and needings sell off in video. 460 00:23:47,920 --> 00:23:50,800 Speaker 12: Yeah, it's really interesting how this has shifted really from 461 00:23:50,840 --> 00:23:52,840 Speaker 12: the dip buying that we saw yesterday the drove and 462 00:23:52,920 --> 00:23:55,199 Speaker 12: video up Corey we think was also up before the 463 00:23:55,200 --> 00:23:57,720 Speaker 12: Bell before it reported its results, and now we're seeing 464 00:23:58,240 --> 00:24:01,719 Speaker 12: really any concern on I their side, AI bubble or 465 00:24:01,760 --> 00:24:04,360 Speaker 12: supply here is really weighing on these shares. I think 466 00:24:04,400 --> 00:24:08,679 Speaker 12: as the AI theme just continues to get stretched, investors 467 00:24:08,720 --> 00:24:12,320 Speaker 12: are nervous and they're really really ready to sell at 468 00:24:12,359 --> 00:24:15,280 Speaker 12: kind of any moment, this especially coming before in video 469 00:24:15,400 --> 00:24:18,680 Speaker 12: results next week. Obviously the whole market really looks ahead 470 00:24:18,720 --> 00:24:22,440 Speaker 12: to that, but shares going down into in video results 471 00:24:22,560 --> 00:24:24,480 Speaker 12: is a little bit different than what we usually. 472 00:24:24,200 --> 00:24:26,320 Speaker 2: See, right Covin, you made a really good point, and 473 00:24:26,359 --> 00:24:27,920 Speaker 2: I'm going to bring up a chart to illustrate it. 474 00:24:28,040 --> 00:24:31,120 Speaker 2: Yesterday and Vidia jumped almost six percent, which was its 475 00:24:31,119 --> 00:24:32,920 Speaker 2: biggest jump since early April. 476 00:24:33,240 --> 00:24:34,560 Speaker 5: So a drop off of. 477 00:24:34,520 --> 00:24:37,959 Speaker 2: Three percent or more in the session taken into account 478 00:24:38,000 --> 00:24:43,240 Speaker 2: with the newsflow, give that context. Generally speaking, though, what 479 00:24:43,400 --> 00:24:45,600 Speaker 2: is the sentiment of the investors that we're speaking to 480 00:24:45,720 --> 00:24:48,399 Speaker 2: right now? Are they still like mega bullish on this 481 00:24:48,560 --> 00:24:50,800 Speaker 2: long term trend that they think will just carry on 482 00:24:50,840 --> 00:24:51,480 Speaker 2: and keep going. 483 00:24:52,359 --> 00:24:54,440 Speaker 12: Yeah, that's a really great question. I think people are 484 00:24:54,560 --> 00:24:56,879 Speaker 12: very split. But I hear a lot of people that 485 00:24:56,920 --> 00:24:59,479 Speaker 12: are still very bullish on the long term trend and 486 00:24:59,520 --> 00:25:02,240 Speaker 12: even say that some selling now or a little shakeout 487 00:25:02,240 --> 00:25:04,719 Speaker 12: in the market would be pretty healthy. I mean, valuations 488 00:25:04,720 --> 00:25:08,080 Speaker 12: are very stretched. We've we're three years into a bull run. 489 00:25:08,560 --> 00:25:10,800 Speaker 12: These are some of the biggest stocks in the overall markets. 490 00:25:10,800 --> 00:25:13,040 Speaker 12: That makes sense that they've drag down the entire index, 491 00:25:13,119 --> 00:25:15,159 Speaker 12: so a little bit of a shakeout here wouldn't be 492 00:25:15,240 --> 00:25:18,320 Speaker 12: a huge concern. Obviously, this is really overlaid though, with 493 00:25:18,359 --> 00:25:21,000 Speaker 12: the fact that people are really talking about an AI bubble, 494 00:25:21,040 --> 00:25:23,760 Speaker 12: and so I think any selling in any of these stocks, 495 00:25:23,800 --> 00:25:25,080 Speaker 12: even you know, at the end of the year when 496 00:25:25,080 --> 00:25:27,880 Speaker 12: people are sort of looking to lock in performance lock 497 00:25:27,920 --> 00:25:31,399 Speaker 12: in gains it, you know, sparks more conversation around this 498 00:25:31,880 --> 00:25:33,480 Speaker 12: entire debate about an AI bubble. 499 00:25:34,240 --> 00:25:37,400 Speaker 2: Bloombos come and rhyanikay, thank you very much. Meanwhile, shares 500 00:25:37,440 --> 00:25:42,600 Speaker 2: of Nokia and Ericsson close higher in European trading. Sources 501 00:25:42,640 --> 00:25:46,600 Speaker 2: say the European Commission is weighing steps to push EU 502 00:25:46,680 --> 00:25:50,960 Speaker 2: members to phase out Huawei and Zte gear from telecom 503 00:25:51,000 --> 00:25:55,000 Speaker 2: networks amid security concerns. More let's get out to Bloomberg's 504 00:25:55,040 --> 00:25:57,919 Speaker 2: Illn Deutsch who joins us with the reporting. This is 505 00:25:58,000 --> 00:26:00,960 Speaker 2: timely and this is very interesting. What do we learn 506 00:26:01,040 --> 00:26:04,520 Speaker 2: in the course of reporting about how serious this move 507 00:26:04,800 --> 00:26:07,639 Speaker 2: is to push Huawei out of the market, That it 508 00:26:07,760 --> 00:26:09,320 Speaker 2: is very strong in in Europe. 509 00:26:10,720 --> 00:26:12,840 Speaker 13: Yeah, I think it's actually really important to note. People 510 00:26:12,960 --> 00:26:15,960 Speaker 13: do not realize that there's still so much Huawei Kit 511 00:26:16,400 --> 00:26:20,320 Speaker 13: in various EU countries infrastructures, and the European Commission for 512 00:26:20,400 --> 00:26:23,960 Speaker 13: years has wanted to push U countries to stop using 513 00:26:24,359 --> 00:26:26,160 Speaker 13: this technology across their networks. 514 00:26:26,400 --> 00:26:27,800 Speaker 4: They have really failed to do so. 515 00:26:28,480 --> 00:26:30,160 Speaker 13: And the new Commission that came in two years ago, 516 00:26:30,200 --> 00:26:32,000 Speaker 13: they're doing a new push. They're going to try to 517 00:26:32,040 --> 00:26:36,440 Speaker 13: get different EU countries to push out force out Huawei 518 00:26:36,440 --> 00:26:39,359 Speaker 13: and ZTE. Now I cannot orderstate how difficult this is 519 00:26:39,359 --> 00:26:41,840 Speaker 13: going to be. Like I said, the previous Commission tried 520 00:26:41,880 --> 00:26:44,520 Speaker 13: to do this and they did not have the political backing. 521 00:26:45,040 --> 00:26:48,640 Speaker 13: Things like critical infrastructure, are things like national security. These 522 00:26:48,680 --> 00:26:50,480 Speaker 13: are left up to the member states of the EU. 523 00:26:50,600 --> 00:26:52,960 Speaker 13: So essentially what has to happen is these countries will 524 00:26:53,000 --> 00:26:54,520 Speaker 13: have to come together and say yes, actually we're going 525 00:26:54,560 --> 00:26:57,159 Speaker 13: to hand over that power to Brussels, to the European 526 00:26:57,160 --> 00:27:00,160 Speaker 13: Commission to make that reality. That is a tough pill 527 00:27:00,240 --> 00:27:01,640 Speaker 13: for a lot of countries to swallow. 528 00:27:02,480 --> 00:27:05,879 Speaker 3: Countries such as in your piecing make clear Spain, Greece, 529 00:27:05,960 --> 00:27:09,879 Speaker 3: which have remained relatively dependent interestingly UK. We know that 530 00:27:09,880 --> 00:27:13,440 Speaker 3: they've been pulling away for long time, banned any Huawei infrastructure, 531 00:27:13,640 --> 00:27:16,560 Speaker 3: similar with Sweden, so it can be done. It's interesting 532 00:27:16,600 --> 00:27:18,359 Speaker 3: that Chinas sort of tried to point out that it 533 00:27:18,480 --> 00:27:19,920 Speaker 3: slowed those nations down there. 534 00:27:21,119 --> 00:27:23,000 Speaker 13: Yeah, it's a great point, Kawlin, because you know a 535 00:27:23,000 --> 00:27:25,920 Speaker 13: lot of the operators and independent analysis has been done 536 00:27:25,920 --> 00:27:28,679 Speaker 13: to show that actually by forcing a strip out of 537 00:27:28,760 --> 00:27:31,520 Speaker 13: Huawei from the UK networks, that delayed. 538 00:27:31,280 --> 00:27:32,959 Speaker 4: Five year roll by up to two years. 539 00:27:33,200 --> 00:27:36,679 Speaker 13: This is a very costly ambition from certain countries if 540 00:27:36,680 --> 00:27:38,600 Speaker 13: they want to go ahead with this kind of push. 541 00:27:39,080 --> 00:27:42,040 Speaker 13: Not only does it delay possible you know, technology development, 542 00:27:42,240 --> 00:27:44,400 Speaker 13: it also comes at a great cost to the operators. 543 00:27:44,440 --> 00:27:46,760 Speaker 13: So if you look at Germany, for example, some people 544 00:27:46,760 --> 00:27:48,719 Speaker 13: in the government are examining ways that. Okay, if they 545 00:27:48,760 --> 00:27:51,200 Speaker 13: were to try to force Huawei and ct out of 546 00:27:51,240 --> 00:27:55,520 Speaker 13: their networks, could they compensate operators not Obviously would soften 547 00:27:55,560 --> 00:27:57,320 Speaker 13: the blow for a lot of these operators, but this 548 00:27:57,320 --> 00:27:59,520 Speaker 13: would commit a great cost then to governments. 549 00:27:59,560 --> 00:28:01,720 Speaker 4: If not readers. 550 00:28:01,119 --> 00:28:04,440 Speaker 3: Jinaen Deutsch's great read, we urge people to go take 551 00:28:04,480 --> 00:28:06,640 Speaker 3: a read of it, thank you very much. Indeed, let's 552 00:28:06,680 --> 00:28:09,560 Speaker 3: take a look at crypto more broadly right now, because 553 00:28:09,600 --> 00:28:10,959 Speaker 3: we want to put it into the world a bitcoin. 554 00:28:11,080 --> 00:28:13,480 Speaker 3: It's too seeing some risk a version selling. Today we're 555 00:28:13,480 --> 00:28:15,720 Speaker 3: off by two percent one hundred and three thousand. Remember 556 00:28:15,760 --> 00:28:20,000 Speaker 3: it remains below its moving average targets, so one hundred 557 00:28:20,040 --> 00:28:22,399 Speaker 3: day moving average for example, at one hundred and ten thousand. 558 00:28:22,400 --> 00:28:24,560 Speaker 3: It remains trading below that. People fearful they won't be 559 00:28:24,600 --> 00:28:27,160 Speaker 3: seeing any sort of breakout. We're seeing Gemini space station 560 00:28:27,200 --> 00:28:30,399 Speaker 3: though Gemini, of course crypto Exchange went public recently off 561 00:28:30,440 --> 00:28:33,520 Speaker 3: by fifteen percent. That's after its earnings just showed that 562 00:28:33,960 --> 00:28:35,879 Speaker 3: perhaps they're not managing to ramp into any sort of 563 00:28:35,920 --> 00:28:39,320 Speaker 3: profitability as soon as people have maybe hoped. Let's bring 564 00:28:39,400 --> 00:28:42,160 Speaker 3: in Blomberg senior crypto rewarter Olga Karaf, who can dig 565 00:28:42,200 --> 00:28:46,640 Speaker 3: into the Gemini story because they were a beneficiary of 566 00:28:46,960 --> 00:28:49,120 Speaker 3: the changes in regulation in the United States. 567 00:28:49,200 --> 00:28:51,680 Speaker 4: But why did it underwhelm on the quart of just reporting. 568 00:28:53,240 --> 00:28:59,440 Speaker 14: So, like you said, the Winkle West twins that founded Gemini, 569 00:29:00,320 --> 00:29:05,120 Speaker 14: they have been very strong supporters of President Trump and 570 00:29:05,600 --> 00:29:09,720 Speaker 14: a lot of crypto companies with public this year as 571 00:29:09,840 --> 00:29:15,560 Speaker 14: we've seen sort of deregulation and more favorable regulatory environment 572 00:29:15,600 --> 00:29:18,040 Speaker 14: towards the industry. But the fact of the matter is 573 00:29:18,040 --> 00:29:23,920 Speaker 14: that the company, Gemini, is unprofitable and some analysts basically 574 00:29:23,920 --> 00:29:27,360 Speaker 14: don't expect it to become profitable until two or three 575 00:29:27,440 --> 00:29:30,880 Speaker 14: years from now. And what we've seen in this quarter 576 00:29:31,040 --> 00:29:35,959 Speaker 14: is that the losses widened partially because of this ideolic 577 00:29:36,200 --> 00:29:41,680 Speaker 14: related expenses and marketing expenses. But people are wondering, sort of, 578 00:29:41,760 --> 00:29:44,200 Speaker 14: what about profitability, when is that going to come? 579 00:29:45,520 --> 00:29:48,800 Speaker 2: Alger It's good to see Dan Chen, the CFO, talked 580 00:29:48,800 --> 00:29:53,600 Speaker 2: about this the expenses issue and it being strategic for 581 00:29:53,640 --> 00:29:57,320 Speaker 2: those that have never come across Gemini. What's the business 582 00:29:57,360 --> 00:29:59,920 Speaker 2: model on paper? Just explain the basics of how it 583 00:30:00,320 --> 00:30:03,240 Speaker 2: supposed to function, because then that will make the loss 584 00:30:04,080 --> 00:30:05,600 Speaker 2: probably more digestible. 585 00:30:06,880 --> 00:30:12,000 Speaker 14: Sure, so it's a crypto exchange, So their biggest rival 586 00:30:12,080 --> 00:30:16,160 Speaker 14: is coinbase here in the US, and essentially they make 587 00:30:16,240 --> 00:30:19,640 Speaker 14: their money about half of the money off of trading 588 00:30:19,720 --> 00:30:25,200 Speaker 14: fees as people trade bitcoin, ether and other cryptocurrencies. And 589 00:30:25,240 --> 00:30:29,719 Speaker 14: then they also have other businesses such as you know, 590 00:30:30,120 --> 00:30:34,240 Speaker 14: their credit cards have actually been on a roll and 591 00:30:34,400 --> 00:30:37,400 Speaker 14: they've been able to grab a lot of new users 592 00:30:37,760 --> 00:30:41,960 Speaker 14: through credit cards that essentially allow you to earn crypto 593 00:30:42,040 --> 00:30:47,080 Speaker 14: rewards as you spend money. They also have a custody 594 00:30:47,160 --> 00:30:48,640 Speaker 14: business and some other. 595 00:30:48,520 --> 00:30:52,960 Speaker 2: Businesses looms, Olga grief, Thank you very much. Now coming 596 00:30:53,000 --> 00:30:56,120 Speaker 2: up on the program, Ali Barber's Singles Day is underway 597 00:30:56,120 --> 00:30:59,880 Speaker 2: and this year AI isn't an option for shopping. 598 00:31:00,400 --> 00:31:02,880 Speaker 5: We got more on that. Next, this is Bloodbag Tech. 599 00:31:16,360 --> 00:31:17,240 Speaker 4: China Singles Day. 600 00:31:17,320 --> 00:31:20,440 Speaker 3: It is underway now in its seventeenth year, but shifting 601 00:31:20,480 --> 00:31:23,280 Speaker 3: consumer habits and he fears price war. They've dourned the 602 00:31:23,320 --> 00:31:26,680 Speaker 3: one day shopping blitz into a weeks long campaign. Bloomberg 603 00:31:26,720 --> 00:31:30,080 Speaker 3: TV's chief North Asia correspondent Stephen Engel really examines China's 604 00:31:30,040 --> 00:31:32,360 Speaker 3: involving consumption trends amid a tougher economy. 605 00:31:34,760 --> 00:31:39,280 Speaker 15: Influencer peddling is all the rage in China online, of course, 606 00:31:39,320 --> 00:31:42,760 Speaker 15: but now more than ever before on the actual trade 607 00:31:42,760 --> 00:31:46,200 Speaker 15: fair floor as well, where rapid fire hawking of product 608 00:31:46,480 --> 00:31:50,719 Speaker 15: over multiple mobile phones direct to China's billion plus consumers 609 00:31:51,120 --> 00:31:54,360 Speaker 15: has never been this well in your face. 610 00:31:54,520 --> 00:31:56,440 Speaker 5: I mean, I don't know how they talk so much. 611 00:31:56,640 --> 00:32:00,920 Speaker 15: Everything you possibly need to know about Vietnamese and other 612 00:32:01,000 --> 00:32:04,400 Speaker 15: products from overseas doesn't matter if it's New Zealand milk 613 00:32:04,440 --> 00:32:09,000 Speaker 15: powder and ice cream, or Italian cleaning supplies complete with 614 00:32:09,080 --> 00:32:12,920 Speaker 15: a Mandarin speaking European oh your bow mouth. They're all 615 00:32:12,960 --> 00:32:16,520 Speaker 15: competing for Chinese cyber shoppers. In a market where around 616 00:32:16,600 --> 00:32:19,760 Speaker 15: forty percent of all retail sales are now done online. 617 00:32:19,840 --> 00:32:22,480 Speaker 8: A single days eleven eleven is huge. 618 00:32:22,800 --> 00:32:26,600 Speaker 14: We have a strong presence on online platform and we 619 00:32:26,680 --> 00:32:28,480 Speaker 14: have a strong focus on gen Z. 620 00:32:28,840 --> 00:32:31,000 Speaker 3: I know think as they had another few more weeks Togo, 621 00:32:31,320 --> 00:32:33,680 Speaker 3: but so far the result has been very, very encouraging. 622 00:32:33,960 --> 00:32:37,120 Speaker 15: Online shopping in China is growing at three times the 623 00:32:37,160 --> 00:32:40,600 Speaker 15: pace of traditional retail, with many brick and mortar outlets 624 00:32:40,760 --> 00:32:44,400 Speaker 15: feeling that pain. CPI did pick up slightly in October, 625 00:32:44,400 --> 00:32:48,120 Speaker 15: but overall retail spending is expected to have slowed again 626 00:32:48,440 --> 00:32:53,000 Speaker 15: as households hold on to savings amid economic uncertainty. Add 627 00:32:53,040 --> 00:32:56,920 Speaker 15: to that are lingering worries importers and exporters here feel 628 00:32:57,240 --> 00:32:59,960 Speaker 15: about the fragile trade trups with the United States. 629 00:33:00,560 --> 00:33:04,560 Speaker 16: High terriffs are hurting everybody, hurting both sides. One of 630 00:33:04,600 --> 00:33:06,400 Speaker 16: the things that as businesses we do hope is that 631 00:33:06,400 --> 00:33:10,080 Speaker 16: there is longer than a fourteen month detent, shall we say, 632 00:33:10,120 --> 00:33:14,000 Speaker 16: but that there is some general baseline of the relationship. 633 00:33:14,160 --> 00:33:15,880 Speaker 16: These are areas we're going to trade in. These are 634 00:33:15,880 --> 00:33:17,480 Speaker 16: areas that are no go. This is kind of a 635 00:33:17,480 --> 00:33:19,960 Speaker 16: gray area where we'll keep negotiating on because that would 636 00:33:19,960 --> 00:33:22,240 Speaker 16: help us all to your point, really understand what we 637 00:33:22,280 --> 00:33:24,080 Speaker 16: can move forward. And if I do want to have 638 00:33:24,160 --> 00:33:26,280 Speaker 16: a five year contract with an American supplier, I know, 639 00:33:26,320 --> 00:33:28,080 Speaker 16: no matter what, I'm going to get that product. 640 00:33:28,520 --> 00:33:31,920 Speaker 9: I think it's been critically important that we have clarity. 641 00:33:32,280 --> 00:33:35,120 Speaker 15: US wine experts to China this year were down seventy 642 00:33:35,200 --> 00:33:38,040 Speaker 15: seven percent in the seven months through July from a 643 00:33:38,120 --> 00:33:42,040 Speaker 15: year ago, with Chinese tariffs and taxes combined amounting to 644 00:33:42,080 --> 00:33:45,440 Speaker 15: about seventy five percent on American wine, and yet Barrows 645 00:33:45,560 --> 00:33:49,560 Speaker 15: is cautiously optimistic for recovery as the truce has kept 646 00:33:49,600 --> 00:33:51,480 Speaker 15: tariffs from escalating further. 647 00:33:51,680 --> 00:33:54,960 Speaker 9: It was a very very positive development that they came 648 00:33:55,040 --> 00:33:57,320 Speaker 9: up with an actual number that's going to be in 649 00:33:57,360 --> 00:34:02,400 Speaker 9: place for the next fourteen months, because before that, I 650 00:34:02,440 --> 00:34:06,480 Speaker 9: think a lot of importers weren't so upset about the tariff. 651 00:34:06,640 --> 00:34:08,520 Speaker 9: It's they didn't know what it was going to be, 652 00:34:09,239 --> 00:34:10,920 Speaker 9: and so now we know what it's going to be, 653 00:34:11,040 --> 00:34:13,520 Speaker 9: at least through the end of December of twenty twenty six, 654 00:34:13,880 --> 00:34:18,440 Speaker 9: and I'm hoping that that brings some normalcyback into the process. 655 00:34:18,560 --> 00:34:21,920 Speaker 15: It's an endurance game shared in some respect by the 656 00:34:22,000 --> 00:34:26,560 Speaker 15: many influencers in nearby booths to keep talking, to keep 657 00:34:26,600 --> 00:34:30,280 Speaker 15: the parties on the other end engaged. Steven Angel, Bloomberg 658 00:34:30,320 --> 00:34:31,320 Speaker 15: News Gender. 659 00:34:32,680 --> 00:34:35,160 Speaker 2: We stay with Single's Day this year if Ali Barber 660 00:34:35,440 --> 00:34:39,040 Speaker 2: artificial intelligence takes center stage as the company pushes out 661 00:34:39,080 --> 00:34:44,080 Speaker 2: AI driven search results. Deborah wind Swig, Coresite Research CEO says, 662 00:34:44,160 --> 00:34:48,800 Speaker 2: quote winners going forward up brands investing in AI driven personalization. 663 00:34:49,239 --> 00:34:54,200 Speaker 2: The retail playbook now blends tech trust and instant gratification commerce. 664 00:34:54,960 --> 00:34:58,359 Speaker 2: Deborah whine six joins us now Deborah, that report from 665 00:34:58,480 --> 00:35:02,920 Speaker 2: Steven Adam Mainland China fascinating learning about sort of the 666 00:35:02,960 --> 00:35:06,319 Speaker 2: scale of the event. But will zero in on Ali 667 00:35:06,400 --> 00:35:09,960 Speaker 2: Barber and where AI is or isn't making the difference. 668 00:35:10,000 --> 00:35:13,560 Speaker 2: What's your assessment about where they stand in that market, 669 00:35:13,600 --> 00:35:16,440 Speaker 2: which he just outlined is pretty chaotic at the moment. 670 00:35:17,719 --> 00:35:20,279 Speaker 17: Well, first, thanks for having me on. Second, as we 671 00:35:20,320 --> 00:35:25,040 Speaker 17: look at Ali Baba specifically, I would say that last 672 00:35:25,120 --> 00:35:26,719 Speaker 17: year they were dipping their tone in the water and 673 00:35:26,760 --> 00:35:29,400 Speaker 17: this year, they're in kind of up to their thigh 674 00:35:30,040 --> 00:35:33,480 Speaker 17: as it relates to AI and the shopping experience. So 675 00:35:34,080 --> 00:35:38,279 Speaker 17: starting at the very beginning all the way through there 676 00:35:38,760 --> 00:35:41,960 Speaker 17: or kind of the PDPs or the information behind all 677 00:35:42,000 --> 00:35:45,560 Speaker 17: of the images on the website to what you've bought previously, 678 00:35:45,600 --> 00:35:47,680 Speaker 17: is that they serve up products you are more likely 679 00:35:47,719 --> 00:35:52,120 Speaker 17: to purchase. But it's all EI driven and it's highly 680 00:35:52,160 --> 00:35:54,239 Speaker 17: personalized in a very short period of time, so that 681 00:35:54,800 --> 00:35:58,560 Speaker 17: return rates are dropping, which is a positive because you're 682 00:35:58,840 --> 00:36:01,839 Speaker 17: buying more of what you want, and it's also much 683 00:36:01,880 --> 00:36:03,759 Speaker 17: easier to do the research you need and that you 684 00:36:03,800 --> 00:36:06,520 Speaker 17: want to do in order to find the perfect gift 685 00:36:06,520 --> 00:36:08,080 Speaker 17: for others or for yourself. 686 00:36:09,600 --> 00:36:11,880 Speaker 2: Debra, we actually had some headlines how to China Cross 687 00:36:11,960 --> 00:36:15,120 Speaker 2: since we came on air. Shao Me's single day sales 688 00:36:15,239 --> 00:36:18,920 Speaker 2: exceed twenty nine billion yu want, which if my maths correct, 689 00:36:19,000 --> 00:36:22,680 Speaker 2: is just slightly above four billion US dollars. That show me, 690 00:36:24,000 --> 00:36:26,320 Speaker 2: what do you make of that number and put show 691 00:36:26,400 --> 00:36:28,759 Speaker 2: Me's success in singles day into context or what you 692 00:36:28,840 --> 00:36:30,520 Speaker 2: just told us about Ali Baba. 693 00:36:31,480 --> 00:36:34,200 Speaker 17: Yeah, we've continued to hear from a lot of Western 694 00:36:34,239 --> 00:36:39,000 Speaker 17: brands that their sales are exceeding expectations, and I think 695 00:36:39,040 --> 00:36:41,920 Speaker 17: what they're learning from that is to think about how 696 00:36:41,920 --> 00:36:44,400 Speaker 17: to bring some of those learnings back to the US. 697 00:36:44,960 --> 00:36:48,440 Speaker 17: But this idea that the consumer can find and buy, 698 00:36:49,080 --> 00:36:50,960 Speaker 17: and when you think about like show me right, this 699 00:36:51,520 --> 00:36:55,440 Speaker 17: idea that the consumer and this was actually one of 700 00:36:55,440 --> 00:37:00,680 Speaker 17: the probably key areas of interest is that they call 701 00:37:00,719 --> 00:37:04,240 Speaker 17: them like AI toys, but like AI toys have been 702 00:37:04,800 --> 00:37:07,839 Speaker 17: one of the hottest categories, that and beauty, and so 703 00:37:08,239 --> 00:37:10,719 Speaker 17: the Shami numbers I would say probably are a little 704 00:37:10,800 --> 00:37:13,600 Speaker 17: higher than we would have expected, but that's the trend 705 00:37:13,640 --> 00:37:16,520 Speaker 17: that we're seeing, and you know, we believe that'll continue 706 00:37:16,520 --> 00:37:17,080 Speaker 17: to strengthen. 707 00:37:17,560 --> 00:37:21,680 Speaker 3: Chaomi makes AI toys on wheels, cars, but also ones 708 00:37:21,680 --> 00:37:24,080 Speaker 3: that you have in your hand. How much you seeing 709 00:37:24,080 --> 00:37:28,000 Speaker 3: at the moment the luxury perspective though, because Shami has 710 00:37:28,000 --> 00:37:30,359 Speaker 3: been on the hills of a tesla and everyone's thinking 711 00:37:30,400 --> 00:37:33,040 Speaker 3: about the amount of market share that these local domestic 712 00:37:33,040 --> 00:37:34,839 Speaker 3: players are now taking the world of ev and of 713 00:37:34,840 --> 00:37:37,759 Speaker 3: course phones, but relatively luxurious products to be spending on. 714 00:37:38,080 --> 00:37:40,520 Speaker 3: Where do you see just general consumer appetite right now? 715 00:37:42,000 --> 00:37:44,000 Speaker 17: That's a great question and we've done a lot of 716 00:37:44,000 --> 00:37:46,200 Speaker 17: research on this. So what we're starting to see is 717 00:37:46,239 --> 00:37:49,120 Speaker 17: a I would say, a strengthening at the high end, 718 00:37:50,000 --> 00:37:54,040 Speaker 17: But when it comes to let's say basic essentials. Going 719 00:37:54,040 --> 00:37:56,080 Speaker 17: back to this idea of research and how much easier 720 00:37:56,080 --> 00:37:59,840 Speaker 17: it is to find product. Consumers are i would say, 721 00:38:00,040 --> 00:38:05,600 Speaker 17: being increasingly frugal on everyday necessities and then looking to 722 00:38:05,640 --> 00:38:09,120 Speaker 17: treat themselves. So I would say AI is helping them 723 00:38:09,280 --> 00:38:12,319 Speaker 17: get smarter. But we are i'd say, probably earlier than 724 00:38:12,320 --> 00:38:14,840 Speaker 17: many people expected. We are starting to see a strengthening 725 00:38:14,840 --> 00:38:15,279 Speaker 17: in the high end. 726 00:38:16,200 --> 00:38:18,880 Speaker 3: What are they buying in terms of AI wearables? And 727 00:38:18,880 --> 00:38:21,040 Speaker 3: they're like, I'm seeing oring and ordering. There's lots of 728 00:38:21,120 --> 00:38:24,080 Speaker 3: new cove competises on the market here in the United States, 729 00:38:24,080 --> 00:38:26,480 Speaker 3: but I can only imagine the raft of options you 730 00:38:26,560 --> 00:38:28,080 Speaker 3: got to purchase over in China right now. 731 00:38:28,840 --> 00:38:31,440 Speaker 17: I mean, we're seeing really interesting things on the wearable side, 732 00:38:31,600 --> 00:38:35,759 Speaker 17: like bracelets and pins and whatnot. Other kind of like 733 00:38:35,800 --> 00:38:40,160 Speaker 17: even health sensing, body sensing. Can you find your your 734 00:38:40,200 --> 00:38:45,040 Speaker 17: mate depending on right the you know you're you're kind 735 00:38:45,040 --> 00:38:48,200 Speaker 17: of the electromagnetic field that you're like. It's it's really 736 00:38:48,239 --> 00:38:52,799 Speaker 17: really interesting in terms of how it really is. They're 737 00:38:52,960 --> 00:38:55,560 Speaker 17: toys to make your life more fun. But also better 738 00:38:55,600 --> 00:38:57,560 Speaker 17: and I think going back to this idea around data 739 00:38:57,880 --> 00:39:02,759 Speaker 17: from a healthcare perspective, that's it increasingly important and we're 740 00:39:02,760 --> 00:39:05,719 Speaker 17: seeing it drive improved results for consumers as well. 741 00:39:07,440 --> 00:39:10,719 Speaker 2: The data sets that you're tracking, even from this this 742 00:39:10,840 --> 00:39:14,840 Speaker 2: year's event and prior years, if you've got any assessment 743 00:39:14,840 --> 00:39:17,680 Speaker 2: of like the investment these companies have to make to 744 00:39:17,800 --> 00:39:21,040 Speaker 2: get a payoff, like how committed they are to winning, 745 00:39:21,480 --> 00:39:24,000 Speaker 2: what you've outlined very clearly is a bit of a 746 00:39:24,040 --> 00:39:29,480 Speaker 2: scramble to get consumers who are making very conscious, proactive 747 00:39:29,560 --> 00:39:30,520 Speaker 2: spending choices. 748 00:39:32,040 --> 00:39:36,520 Speaker 17: So therein lies the that is like the question of 749 00:39:36,520 --> 00:39:40,160 Speaker 17: the day, and one of the biggest differences between the 750 00:39:40,200 --> 00:39:43,640 Speaker 17: Western consumer and the Chinese consumer is you know this 751 00:39:43,719 --> 00:39:45,920 Speaker 17: isn't like you know you're clipping coupons, Well, I guess 752 00:39:45,960 --> 00:39:49,200 Speaker 17: you're clipping them, but digital And as we're seeing it 753 00:39:49,239 --> 00:39:52,360 Speaker 17: go into the end of the double even shopping season, 754 00:39:52,440 --> 00:39:54,840 Speaker 17: how the couponing, right, it goes back to it's adjusting 755 00:39:54,840 --> 00:39:58,880 Speaker 17: in real time. So if retailers and brands aren't seeing 756 00:39:59,239 --> 00:40:03,480 Speaker 17: the desired outcomes, they're able to change it in real time. Right. 757 00:40:03,480 --> 00:40:06,120 Speaker 17: These aren't like marketing plans built out six twelve eighteen 758 00:40:06,120 --> 00:40:09,359 Speaker 17: weeks ahead of time, and therein is why I think 759 00:40:09,360 --> 00:40:12,520 Speaker 17: we're going to see a much stronger double eleven season 760 00:40:12,520 --> 00:40:15,040 Speaker 17: than we have in the past. And those retailers like 761 00:40:15,160 --> 00:40:18,800 Speaker 17: Lululemon is in you know, the minds of the Chinese consumers. 762 00:40:18,800 --> 00:40:22,719 Speaker 17: That's the local brand because they've really embraced this and 763 00:40:22,760 --> 00:40:25,160 Speaker 17: they did have to invest of course early on, but 764 00:40:25,360 --> 00:40:27,799 Speaker 17: now they're reaping the rewards of that investment. And so 765 00:40:28,000 --> 00:40:31,160 Speaker 17: that's like Lululna and Loreal. Those are some just great 766 00:40:31,160 --> 00:40:34,359 Speaker 17: examples of brands right, so European brand and US brand 767 00:40:34,520 --> 00:40:38,080 Speaker 17: or Nadian brand technically North American brand of companies who 768 00:40:38,120 --> 00:40:41,520 Speaker 17: have invested and as a result they're seeing outsize rewards. 769 00:40:42,600 --> 00:40:45,799 Speaker 3: Instant gratification. Commerce is the line on your note. We 770 00:40:45,880 --> 00:40:49,279 Speaker 3: really appreciate it. Thank you, Debrah Weinswig for joining us. 771 00:40:49,560 --> 00:40:52,640 Speaker 3: Of course, like research coming up, Oracle co founder Larry 772 00:40:52,640 --> 00:40:55,480 Speaker 3: Ellison gets more employees on his supervision off to the 773 00:40:55,480 --> 00:40:56,600 Speaker 3: company CEO swap. 774 00:40:56,880 --> 00:40:59,160 Speaker 4: We'll discuss what that entails next. This is Broom, the 775 00:40:59,320 --> 00:40:59,560 Speaker 4: tech