WEBVTT - Anthropic Eyeing Over $900 Billion Valuation 0:00:02.520 --> 0:00:12.959 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:12.960 --> 0:00:16.800 from coast to coast with Caroline Hyde in New York 0:00:17.079 --> 0:00:19.080 and Vavelow in San Francisco. 0:00:22.040 --> 0:00:23.640 This is Bloomberg Tech coming up. 0:00:23.640 --> 0:00:26.160 All eyes are on a high stakes meeting between President 0:00:26.239 --> 0:00:29.480 Trump and China's Xijing Ting. This is in video CEO 0:00:29.600 --> 0:00:31.960 Jensen Wang gets added to the trip last minute. 0:00:32.080 --> 0:00:32.400 Plus. 0:00:32.440 --> 0:00:35.240 Anthropic is looking to raise at least thirty billion dollars 0:00:35.280 --> 0:00:38.400 in fresh financing, an evaluation of more than nine hundred 0:00:38.440 --> 0:00:40.000 billion dollars and what could be. 0:00:39.960 --> 0:00:41.200 Its largest funding round yet. 0:00:41.280 --> 0:00:44.199 And we speak with Anderill CEO Brian Schimpf as the 0:00:44.240 --> 0:00:47.680 company hits a sixty one billion dollar valuation in its 0:00:47.720 --> 0:00:51.680 latest funding round. Today's big story President Trump's meeting with 0:00:51.920 --> 0:00:55.160 China's Xijingping. And Trump is joined on his trip by 0:00:55.160 --> 0:00:58.320 a host of tech leaders, including in the end in 0:00:58.440 --> 0:01:01.800 video CEO Jensen Wang. As a last minute edition, thrusting 0:01:01.840 --> 0:01:04.600 AI and tech into the spotlight for for the high 0:01:04.640 --> 0:01:07.199 stake summit. Let's bring in bloombergs Tyler Kendall for more. 0:01:07.360 --> 0:01:10.440 Who joins us from Beijing? Set the scene? What do 0:01:10.480 --> 0:01:12.920 we need to know? And my goodness what a fanfare 0:01:13.000 --> 0:01:16.000 last night when Jensen Wang was spotted on the runway 0:01:16.280 --> 0:01:20.600 in Alaska, right. 0:01:20.840 --> 0:01:22.960 Ed, I mean we saw this last minute edition he 0:01:23.080 --> 0:01:26.720 caught Air Force one during a refueling stop in Anchorage. Now, 0:01:26.760 --> 0:01:29.640 the White House says that the addition comes because Jensen 0:01:29.680 --> 0:01:32.240 Wang was able to make a scheduling change that we 0:01:32.280 --> 0:01:34.119 did hear from President Trump in a post on truth 0:01:34.160 --> 0:01:37.080 social where he appeared to be unhappy with media coverage 0:01:37.080 --> 0:01:40.280 that the Nvidia CEO originally wasn't on the manifest of 0:01:40.360 --> 0:01:43.560 travelers that we had in terms of those CEOs that 0:01:43.640 --> 0:01:45.720 are attending now. Of course, the big ticket item I 0:01:45.720 --> 0:01:47.360 don't need to tell either of you would be whether 0:01:47.480 --> 0:01:50.440 or not President Trump pushes the Chinese government to have 0:01:50.520 --> 0:01:54.639 Chinese buyers for the now greenlit h two hundred Nvidia chips. 0:01:54.680 --> 0:01:55.600 So maybe there will be. 0:01:55.560 --> 0:01:58.520 Some sort of discussions around that. I'll also throw on 0:01:58.560 --> 0:02:01.640 your radar that it is our understand that Washington and 0:02:01.720 --> 0:02:05.040 Beijing are in talks about potential cooperation when it comes 0:02:05.040 --> 0:02:08.760 to keeping a dialogue open around artificial intelligence. That could 0:02:08.760 --> 0:02:11.359 be also one of those deliverables that we see out 0:02:11.400 --> 0:02:15.559 of this meeting tomorrow between President Trump and Chinese President Xijingping. 0:02:15.800 --> 0:02:18.760 The administration maintains that they want trade to be the 0:02:18.880 --> 0:02:22.239 top priority here. Just look at the other list of CEOs. 0:02:22.280 --> 0:02:25.480 It is our understanding that they represent some of those 0:02:25.520 --> 0:02:29.000 sectors where we could see some Chinese purchase agreement commitments, 0:02:29.000 --> 0:02:32.120 including the Cargill CEO when it comes to agriculture, and 0:02:32.160 --> 0:02:35.959 the Boeing CEO also being here on the ground in Beijing. 0:02:36.080 --> 0:02:38.560 But at and Carolina at this part, it's hard to 0:02:38.639 --> 0:02:42.600 avoid that Iran will be looming very large over this conversation. 0:02:42.680 --> 0:02:45.720 In fact, a senior administration official who briefed US reporters 0:02:45.720 --> 0:02:48.240 before we headed over here to Asia did say that 0:02:48.280 --> 0:02:50.880 behind closed doors, President Trump is going to push the 0:02:50.960 --> 0:02:53.600 Chinese president when it comes to the country's stance around 0:02:53.680 --> 0:02:56.920 Iran during this conflict, including how Beijing remains the largest 0:02:56.960 --> 0:02:58.560 buyer of Iranian crude. 0:03:00.200 --> 0:03:02.680 Tyler Kendall life in Beijing. We so appreciate it. 0:03:03.040 --> 0:03:03.400 Thank you. 0:03:03.440 --> 0:03:05.239 Look, let's check on the broader markets, because there's a 0:03:05.280 --> 0:03:07.519 volatile trading session. One point, we're in the red on 0:03:07.520 --> 0:03:09.120 the Nazaq one hundred. We're now back in the green. 0:03:09.160 --> 0:03:11.440 We're at about six tens of a percent leading. The 0:03:11.520 --> 0:03:14.280 pack is of course chip makers once again in terms 0:03:14.320 --> 0:03:14.760 of points. 0:03:14.800 --> 0:03:17.120 But I shine a light what's happening in China. 0:03:17.240 --> 0:03:20.400 The Golden Dragon, that is the Nazak Golden Dragon Index, 0:03:20.440 --> 0:03:23.799 which is really basically the trading of Chinese names. Here 0:03:23.800 --> 0:03:25.639 in the US, the ADRs, we're up three and a 0:03:25.680 --> 0:03:28.519 half percent. There is a lot of excitement about what 0:03:28.720 --> 0:03:30.799 one gentsen one could meet for Chinese tech. 0:03:30.880 --> 0:03:32.960 This is really tied to the Nvidia story, and Video 0:03:33.040 --> 0:03:35.560 itself is now up almost three percent and trading at 0:03:35.560 --> 0:03:38.320 a record high, up for a six straight day, matching 0:03:38.360 --> 0:03:40.400 the run it had in early April. 0:03:40.600 --> 0:03:41.760 And the story is really simple. 0:03:41.800 --> 0:03:45.440 A lot of those Chinese AI specific names, Minimax, Gipu, 0:03:45.840 --> 0:03:48.440 the examples, I mean, look at those games. That's astonishing 0:03:48.480 --> 0:03:51.560 overnight on the idea that there might be something here 0:03:51.600 --> 0:03:52.360 that Tyler just. 0:03:52.320 --> 0:03:55.800 Outlined, something here, something certainly for the market to continue 0:03:55.840 --> 0:03:59.600 to chew on as we've just seen relentless exuberant exuberants 0:03:59.640 --> 0:04:02.440 around a Fiona's and condas with US see City Index, 0:04:02.520 --> 0:04:07.120 Financial Markets Senior Analyst and Fiona Is there rationality to 0:04:07.160 --> 0:04:09.280 the moves in the Chinese names on the back of 0:04:09.320 --> 0:04:13.200 hope that they'll get access to more powerful chips. Is 0:04:13.200 --> 0:04:14.680 that something that you're looking to come out of the 0:04:14.680 --> 0:04:17.479 geopolitical event in China, you know. 0:04:17.600 --> 0:04:19.000 Something we've got our eyes on. 0:04:19.240 --> 0:04:21.800 So I think, you know, that would be the absolute 0:04:22.000 --> 0:04:25.360 icing on the cake as far as those stocks are concerned. 0:04:25.400 --> 0:04:27.760 And that's what we're sort of starting to see priced in. 0:04:27.920 --> 0:04:31.680 Is that optimism that that could potentially be on the table. 0:04:31.839 --> 0:04:34.160 I mean, the fact that we saw that later edition 0:04:34.279 --> 0:04:39.159 of Kuwan Jun saying joining the delegation to the US, 0:04:39.200 --> 0:04:41.240 I think has really just sort of been spurred on 0:04:42.320 --> 0:04:45.160 those hopes. And I think there's sort of broad More 0:04:45.200 --> 0:04:47.760 broadly speaking, I think there is just a level of 0:04:47.800 --> 0:04:52.880 excitement surrounding Trump's trip to China, and I think that's 0:04:52.880 --> 0:04:55.520 sort of really evident as we're seeing, you know, the 0:04:55.600 --> 0:04:59.200 Nazak push higher, even though we've got sort of those 0:04:59.600 --> 0:05:04.120 concerns regarding inflation and the sort of fundamental backdrop which 0:05:04.200 --> 0:05:06.880 normally would weigh down the tech index. 0:05:07.760 --> 0:05:11.560 We have been talking about the impact of the latest 0:05:11.600 --> 0:05:13.440 economic data in the markets, but I want to stay 0:05:13.440 --> 0:05:16.839 focused on what's happening in China. How does the market 0:05:16.960 --> 0:05:22.040 interpret and price in this delegation of CEOs that we're 0:05:22.080 --> 0:05:25.040 showing on the screen right now, Tim Cook, Elon Musk, 0:05:25.400 --> 0:05:28.560 Chuck Robbins, and as we've all mentioned, Jensen one with 0:05:28.720 --> 0:05:31.719 the president. What is it the market thinks that does 0:05:33.480 --> 0:05:34.800 this is like the who's who? 0:05:35.000 --> 0:05:40.280 You know, literally the top list of the CEOs from 0:05:40.520 --> 0:05:42.640 the US that you could wish for to go to 0:05:42.680 --> 0:05:48.000 speak to China regarding trade, regarding you know what move 0:05:48.160 --> 0:05:51.640 forward in AI, in chips. I mean, you know, the 0:05:51.720 --> 0:05:56.400 potential for these two economies to actually get sort of 0:05:56.440 --> 0:06:01.800 further agreements surrounding such enormous topics would be massive, And 0:06:01.839 --> 0:06:04.400 I mean, you know, I don't think we can underestimate that. 0:06:04.600 --> 0:06:06.120 I mean, if we just think about sort of you know, 0:06:06.160 --> 0:06:09.320 for example, chips, which you know have been a massive 0:06:09.360 --> 0:06:13.120 part of the story the rally in recent weeks. You know, 0:06:13.200 --> 0:06:15.640 if we think about it, the US is very much 0:06:15.640 --> 0:06:18.920 dominating the sort of the AI computing power at the 0:06:18.920 --> 0:06:21.240 top of the technology set, but at the bottom you've 0:06:21.240 --> 0:06:25.240 got China controlling much of the supply chain critical minerals 0:06:25.279 --> 0:06:29.680 needed to manufacture semmericonductors and advance electronics. So you know, 0:06:29.920 --> 0:06:33.560 if there are these two economies are deeply independent on 0:06:33.600 --> 0:06:36.440 each other. So the more agreements, the more synergies that 0:06:36.480 --> 0:06:38.880 they get together, the better that's going to be. 0:06:40.240 --> 0:06:45.360 Look, we are seeing just the run up in semiconductors 0:06:45.440 --> 0:06:49.039 hardware in particular continue. Even if we took a breath yesterday, 0:06:49.160 --> 0:06:51.360 we're back on and in the green today, Fiona. 0:06:51.440 --> 0:06:53.279 And it's notable that we're waiting. 0:06:53.000 --> 0:06:55.599 An IPO could be priced today, likely to start training 0:06:55.600 --> 0:06:58.800 tomorrow as cerebras. How are you thinking about the appetite 0:06:58.800 --> 0:07:02.200 among your clients to get more exposure, particularly for these 0:07:02.480 --> 0:07:04.200 very AI specific names. 0:07:05.279 --> 0:07:09.640 Yeah, there's been you know, an extremely ramping up of 0:07:09.680 --> 0:07:13.160 demand over the last few weeks. I mean it's definitely 0:07:13.200 --> 0:07:16.440 caught the markets by surprise. I think, you know, we've 0:07:16.480 --> 0:07:20.040 seen that rally come, especially given the fact that we 0:07:20.080 --> 0:07:22.000 did see sort of in a little bit of a 0:07:22.080 --> 0:07:24.880 more depressed outlook towards these stocks at the end of 0:07:24.960 --> 0:07:27.760 last year and the beginning of this year. But you know, 0:07:27.880 --> 0:07:30.480 that has definitely moved forward. We're seeing that our clients 0:07:30.480 --> 0:07:33.480 are really very interested still in their stocks, which is 0:07:33.520 --> 0:07:36.960 interesting because I think technically the position is looking a 0:07:37.000 --> 0:07:39.480 little bit over done, so I think, you know, there 0:07:39.520 --> 0:07:43.200 is room for some consolidation and potentially a pullback here. 0:07:44.120 --> 0:07:48.240 But I think broadly speaking, the longer term trend is 0:07:48.240 --> 0:07:49.560 still looking very positive. 0:07:50.480 --> 0:07:53.080 Yeah. I mean that's the question for me, what happens next? 0:07:53.200 --> 0:07:53.320 Right? 0:07:53.400 --> 0:07:56.360 You know, technology stocks basically are still at record highs 0:07:56.600 --> 0:07:59.560 irrespective of what's happening around the world, So what does 0:07:59.600 --> 0:08:02.320 happen now and why? What is the big swing factor 0:08:02.360 --> 0:08:03.040 in markets for you? 0:08:04.360 --> 0:08:05.040 Yeah? Completely? 0:08:05.120 --> 0:08:07.000 I mean this is what's really interesting, isn't that I 0:08:07.000 --> 0:08:10.360 think is the fundamental backdrop that we have is far 0:08:10.400 --> 0:08:14.160 from ideal. So I think, you know, if we look 0:08:14.200 --> 0:08:17.200 about what could happen next, I mean, supposing we do 0:08:17.320 --> 0:08:19.760 get the reopening of the Straight of horn Moose in 0:08:20.440 --> 0:08:23.320 the coming weeks, that would make the backdrop suddenly much 0:08:23.360 --> 0:08:26.680 more favorable, which potentially could mean there could be more 0:08:26.720 --> 0:08:29.520 gains to be had, not just in AI, not just 0:08:29.560 --> 0:08:30.120 in tech. 0:08:30.000 --> 0:08:31.720 SoCs, but potentially across the board. 0:08:31.960 --> 0:08:34.960 But I think if that doesn't happen, we're still seeing 0:08:35.080 --> 0:08:38.360 this solid demand for tech in AI, and I think 0:08:38.400 --> 0:08:40.400 there is a potential, as I said, for it to slow, 0:08:40.640 --> 0:08:42.920 even for there to be some consolidation or a pullback, 0:08:43.080 --> 0:08:46.559 just given the fact that we are technically so overdone. 0:08:46.559 --> 0:08:48.640 But I think as far as the child is looking, 0:08:48.679 --> 0:08:50.760 there isn't anything on there that's telling us that there 0:08:50.760 --> 0:08:52.439 are reversals. 0:08:52.000 --> 0:08:53.440 Coming anytime soon. 0:08:54.280 --> 0:08:57.480 And so for the time being, the side of least 0:08:57.520 --> 0:08:59.079 redistance does appear to be upwards. 0:09:00.040 --> 0:09:02.640 And is that global Fiona, As we're talking about China, 0:09:02.720 --> 0:09:05.720 we talk about the US, but Europe ASML has been 0:09:05.760 --> 0:09:06.320 a key name. 0:09:06.559 --> 0:09:08.840 We think about what's been happening in Japan, in South. 0:09:08.720 --> 0:09:11.800 Korea, which of course was shaken over the last couple 0:09:11.840 --> 0:09:14.559 of trading days because of talk of maybe some sort 0:09:14.600 --> 0:09:17.520 of citizen dividend and a sharing of the wealth of AI. 0:09:19.040 --> 0:09:19.640 Yeah, that's right. 0:09:19.679 --> 0:09:22.400 I mean the COSB, I think is a really interesting example. 0:09:22.480 --> 0:09:25.000 We've seen the volatility there really come up. I mean 0:09:25.040 --> 0:09:29.040 that had some extremely strong games before we had that pullback. 0:09:29.520 --> 0:09:32.200 But I think that's an interesting point that's being made 0:09:32.240 --> 0:09:35.040 there about the sort of the dividend, the people's dividend. 0:09:34.760 --> 0:09:36.320 On AI, that tax on AI. 0:09:36.600 --> 0:09:40.360 Is that something that could potentially be a risk point 0:09:40.720 --> 0:09:43.040 further down the line more globally. That's something I would 0:09:43.040 --> 0:09:45.480 be watching out for. But I think for now, this 0:09:45.559 --> 0:09:47.640 is a global story that we're looking at as far 0:09:47.679 --> 0:09:51.240 as AI is concerned, and that demand for tech is definitely. 0:09:50.880 --> 0:09:54.480 Back on Fionasenkodo City Index. Great to have you back 0:09:54.520 --> 0:09:57.240 on boombog Tech, Thank you very much. Coming up, we're 0:09:57.280 --> 0:10:00.720 going to speak with anderill Ceobrian Shint. The company hits 0:10:00.720 --> 0:10:04.480 a sixty one billion dollar valuation in its latest funding round. 0:10:04.480 --> 0:10:11.000 That's next. This is Bloomberg Tech. Defense tech start. 0:10:10.800 --> 0:10:13.640 Up Anderil has rocketed to a sixty one billion dollar 0:10:13.760 --> 0:10:16.960 valuation after a fresh five billion dollar raise led by 0:10:17.000 --> 0:10:19.839 Frive Capital and Ndres and Horr. It's almost twice the 0:10:19.920 --> 0:10:23.280 valuation it's said at one year ago. It underscores surging 0:10:23.280 --> 0:10:27.600 investor appetite for AI driven defense tech. Joining us now 0:10:27.720 --> 0:10:30.480 is Andreil CEO, Brian Schimp and Brian. It's good to 0:10:30.480 --> 0:10:32.640 have you back with us on bloom Thank you so much. 0:10:32.679 --> 0:10:33.280 Happy to be here. 0:10:34.559 --> 0:10:36.680 This is confirmation a little bit of what we reported 0:10:36.960 --> 0:10:40.120 about a month couple of months ago. But actually when 0:10:40.160 --> 0:10:41.560 you come on the program, a lot of the questions 0:10:41.559 --> 0:10:43.840 we get for you are operational. So let's take the 0:10:43.880 --> 0:10:46.920 five billion dollars that you've raised, how much of that 0:10:47.040 --> 0:10:50.240 is to get Arsenal one done built and all of 0:10:50.280 --> 0:10:53.880 the other operational timelines that you guys are holding yourselves 0:10:53.920 --> 0:10:55.280 to imminently. 0:10:56.640 --> 0:10:59.319 Yeah, So as a business, you know, we were entering 0:10:59.320 --> 0:11:01.839 this period where production is the name of the game. 0:11:02.480 --> 0:11:05.920 So vast majority of our capital goes to scaling our factories, 0:11:05.920 --> 0:11:09.640 building out our production workforce, funding all that inventory, and 0:11:09.679 --> 0:11:13.040 really just getting that ramp to production working. We're increasing 0:11:13.040 --> 0:11:16.560 production revenue something like two hundred and fifty percent over 0:11:16.600 --> 0:11:18.679 the year, just year over year, So just a huge 0:11:18.760 --> 0:11:20.560 ramp in what we're seeing in terms of demand for 0:11:20.600 --> 0:11:22.520 our technology. 0:11:22.760 --> 0:11:23.200 Demand. 0:11:23.360 --> 0:11:25.960 Talk about it, how much breadth are we seeing. 0:11:25.960 --> 0:11:30.160 The geopolitical conflicts they have sadly increased, and we're still 0:11:30.200 --> 0:11:32.520 seeing this focus on the need for defense tech, but 0:11:32.760 --> 0:11:35.520 we know that the money is often still spent on primes. 0:11:36.600 --> 0:11:39.520 Yeah, I mean, look, we are still relatively young as 0:11:39.559 --> 0:11:42.719 a company. We're nine years in. We've been very successful 0:11:43.160 --> 0:11:45.800 by any measure for a company at that age in 0:11:45.840 --> 0:11:50.880 the defense world, and in the fraction of the market 0:11:50.920 --> 0:11:53.640 we're actually addressing right now is still quite small. But 0:11:53.679 --> 0:11:56.000 where we are seeing a lot of demand is particularly 0:11:56.000 --> 0:11:59.120 around things like counter drone and aaron missile defense. That's 0:11:59.160 --> 0:12:02.720 where you look at the conflict. This is a huge issue. 0:12:02.720 --> 0:12:06.920 This is a huge area where we're seeing massive increases 0:12:07.000 --> 0:12:10.720 and what the customers want, you know, our electronic warfare systems, 0:12:10.760 --> 0:12:14.320 our surface their missile systems, and then the other capability 0:12:14.320 --> 0:12:15.960 that we're seeing a lot of demand on that was 0:12:16.160 --> 0:12:19.000 you know, just announced today was a multi year procurement 0:12:19.120 --> 0:12:21.680 of a low cost cruise missile that we call Barracuda. 0:12:22.000 --> 0:12:24.600 The Department is buying, you know, thousands a year of these, 0:12:24.960 --> 0:12:27.520 and we're ramping these at just an unprecedented pace and 0:12:27.559 --> 0:12:30.000 being able to get these out to help with that 0:12:30.120 --> 0:12:34.400 critical munitions shortage and the ability to sustain these conflicts 0:12:34.640 --> 0:12:35.960 and provide the deterrence we need. 0:12:36.920 --> 0:12:38.679 Brian, just humor me on this one. 0:12:38.720 --> 0:12:42.079 The five billion dollars is sufficient to finish Arsenal one 0:12:42.160 --> 0:12:43.679 and start the production ramp. 0:12:45.000 --> 0:12:48.120 Yeah, so we are already ramping production with the money 0:12:48.120 --> 0:12:50.160 we had in the bank. This is really about how 0:12:50.200 --> 0:12:52.920 do we continue to fuel that growth. I don't think 0:12:52.920 --> 0:12:55.720 we're going to see Arsenal one be done anytime soon 0:12:55.760 --> 0:12:58.440 because I think the demand we're going to continue to 0:12:58.440 --> 0:13:00.200 see and the amount we're going to have to new 0:13:00.200 --> 0:13:01.920 new scales just going to ramp and ramp over the 0:13:01.920 --> 0:13:04.280 next several years. This is a good problem to have, 0:13:04.520 --> 0:13:08.559 right and so we benefiting from the private markets and 0:13:08.600 --> 0:13:13.079 the ability to fund these very aggressive ramps. And it's 0:13:13.080 --> 0:13:15.360 a huge testament to you know, the American capital system 0:13:15.360 --> 0:13:17.400 that we can fund these things very, very quickly. 0:13:18.320 --> 0:13:20.600 It was interesting to go through a letter to your 0:13:20.600 --> 0:13:23.199 shareholders he wrote back in January actually and like kind 0:13:23.240 --> 0:13:25.720 of foretelling what was to come in the year. There's 0:13:25.720 --> 0:13:28.720 still a bit of a mistique about Anderill, right, so 0:13:28.720 --> 0:13:31.440 I think Palmer Lucky, one of your co founders, has 0:13:31.440 --> 0:13:34.360 talked about the idea that half of Android's products aren't 0:13:34.400 --> 0:13:38.120 really known about. There's particular interest in the next wave 0:13:38.160 --> 0:13:41.480 of subterrian weapons systems. Could you talk as far as 0:13:41.480 --> 0:13:43.880 you can about where those get built, you know, the 0:13:43.920 --> 0:13:46.760 next phase of life und reill beyond what the initial 0:13:46.760 --> 0:13:47.920 focus of Arsenal one is. 0:13:49.120 --> 0:13:52.640 Yeah, So the purpose of the board letter was layout 0:13:52.679 --> 0:13:55.080 a lot of the you know kind of why of 0:13:55.120 --> 0:13:58.319 what are we doing? What's made us successful is we 0:13:58.360 --> 0:14:01.120 look at, you know, with the SS and technology, the 0:14:01.160 --> 0:14:03.560 shifts and warfare, what are the capabilities that are going 0:14:03.600 --> 0:14:05.560 to be needed over the next five or ten years 0:14:06.200 --> 0:14:09.160 and how can we start to invest to bring those forward. 0:14:09.920 --> 0:14:12.240 So you know, we're working on a whole plethora of 0:14:12.280 --> 0:14:15.560 different products, you know, everything, expanding the air and missile 0:14:15.559 --> 0:14:16.479 defense portfolio. 0:14:16.480 --> 0:14:19.880 We're working on, you know, new domains we're operating in. 0:14:20.360 --> 0:14:23.960 Palmer's always experimenting with the latest and greatest technologies and 0:14:24.000 --> 0:14:26.400 figuring out what you can do that nobody thought possible. 0:14:26.840 --> 0:14:30.760 So we just have a constant source of new ideas 0:14:31.000 --> 0:14:34.280 how technology can apply. But fundamentally, we look at this 0:14:34.360 --> 0:14:38.000 question of what are going to be the dominant technologies 0:14:38.000 --> 0:14:40.520 over the next ten or twenty years. What we're seeing 0:14:40.640 --> 0:14:44.840 in Iran, what we're seeing in Ukraine is that this 0:14:45.000 --> 0:14:48.680 idea of just the sheer volume of munitions that are 0:14:48.720 --> 0:14:52.080 exchange and the need to defend against that. These our 0:14:52.160 --> 0:14:55.720 critical capabilities that in any world will need to be 0:14:55.800 --> 0:14:58.160 solved for. And so a lot of our focus is 0:14:58.200 --> 0:15:00.600 really around these ideas of you know, how do we 0:15:00.680 --> 0:15:05.040 provide the right strike capabilities, the right intelligent targeting capabilities 0:15:05.480 --> 0:15:09.880 and the defense of these as well. 0:15:08.680 --> 0:15:11.400 At the right price. And I'm really interested Bran in. 0:15:11.480 --> 0:15:14.640 Some of these new ideas come from the administration itself, 0:15:14.920 --> 0:15:17.280 and the Golden Dome project is one of those new 0:15:17.280 --> 0:15:21.280 ideas that, according to current budget forecasts coming from the 0:15:21.320 --> 0:15:24.040 Congressional Budget Office, could be up to one point two 0:15:24.160 --> 0:15:27.040 trillion dollars of the ultimate project. Now, I know you're 0:15:27.040 --> 0:15:29.520 among the companies have been awarded initial contracts. Run what 0:15:29.560 --> 0:15:31.320 do you make of how much this could end up 0:15:31.320 --> 0:15:31.920 costing it? 0:15:32.200 --> 0:15:33.240 And it's worth. 0:15:34.680 --> 0:15:37.680 So a lot of those estimates are based off of 0:15:37.720 --> 0:15:40.720 what this would have cost historically, right, and that was 0:15:40.760 --> 0:15:44.560 based around building these things that are extremely expensive and 0:15:44.640 --> 0:15:48.480 extremely exquisite, where you're talking you know, ten twenty thirty 0:15:48.520 --> 0:15:51.640 million dollars a shot to you know, actually provide that 0:15:51.760 --> 0:15:56.160 defense well with commercial technologies, taking a smarter approach, using 0:15:56.200 --> 0:15:59.960 a lot of proven, you know, capabilities that already exist, 0:16:00.000 --> 0:16:03.200 adapting them for this problem, we believe you can get 0:16:03.200 --> 0:16:05.960 this to a much more efficient place and probably even 0:16:06.000 --> 0:16:06.440 more than. 0:16:06.360 --> 0:16:08.680 The price is can you even produce it? 0:16:09.160 --> 0:16:12.000 And today that's one of the major concerns, right, you know, 0:16:12.040 --> 0:16:16.240 we we shot something like a decade of tomahawk production 0:16:16.400 --> 0:16:18.760 in seventy two outs. You know, it's just a crazy 0:16:18.880 --> 0:16:21.320 rate that we're consuming these things, and the ability to 0:16:21.360 --> 0:16:23.640 replenish these becomes a critical issue. 0:16:23.960 --> 0:16:27.320 So our view of this is these are solvable problems. 0:16:27.400 --> 0:16:29.560 You can do it in a more efficient way than 0:16:29.600 --> 0:16:33.720 has been historically executed, and I think that you know, 0:16:34.280 --> 0:16:37.240 being able to execute this at a national scale is 0:16:37.240 --> 0:16:40.560 achievable now in a much more aggressive timeline at a 0:16:40.640 --> 0:16:43.680 much more efficient price than I think people have historically imagined. 0:16:45.040 --> 0:16:47.640 Okay, you get asked this a lot. Palmlucky gets asked 0:16:47.680 --> 0:16:49.520 this a lot. Trey gets asked it a lot. 0:16:50.000 --> 0:16:53.080 But when you do arounded this scale and you look 0:16:53.120 --> 0:16:55.840 at the composition of it, who's not there? People want 0:16:55.880 --> 0:16:58.800 to know about the rationale Forander or going public. Why 0:16:58.840 --> 0:17:01.880 they weren't more crossover investors. You know, this is the 0:17:01.880 --> 0:17:04.080 first time actually, Brian, you, the three of us have 0:17:04.119 --> 0:17:05.879 had to talk in length because when we were with 0:17:05.920 --> 0:17:09.320 you in October, the President made some news about China. 0:17:09.560 --> 0:17:13.120 So just talk us through Brian Shimp's thinking on an 0:17:13.119 --> 0:17:13.959 anderill Ipo. 0:17:15.359 --> 0:17:18.680 So we want to build one of the most pactful 0:17:18.680 --> 0:17:20.959 businesses in the world. Like, that's our goal, right, We 0:17:21.000 --> 0:17:24.720 want to seriously move the needle for the US and 0:17:24.800 --> 0:17:28.240 Allied warfighters, provide the right to terms capabilities, and do 0:17:28.280 --> 0:17:30.800 it at the men's scale, right, That is fundamentally what 0:17:30.840 --> 0:17:35.280 we care about. The rationale for going public is a 0:17:35.280 --> 0:17:37.840 lot less than it used to be. The private capital 0:17:37.920 --> 0:17:40.879 markets have grown in scale, the ability to fund a 0:17:40.920 --> 0:17:43.679 business like ours. You know, when we were doing this 0:17:43.760 --> 0:17:45.800 a few years ago, we were you know, at the 0:17:45.880 --> 0:17:48.159 upper end of what capital raises look like in the 0:17:48.160 --> 0:17:52.119 private market. We are a fraction of an AI fundraised 0:17:52.119 --> 0:17:54.879 at this point, and so the amount of capital that 0:17:54.960 --> 0:17:58.520 is available and it you know, wants to support these 0:17:58.560 --> 0:18:00.720 types of companies is is massive. 0:18:01.400 --> 0:18:03.199 So we're not in a rush to go public, right. 0:18:03.280 --> 0:18:05.800 We don't need to do it from the perspective of 0:18:06.320 --> 0:18:10.440 capital availability or liquidity. You know, we can provide liquidity 0:18:10.480 --> 0:18:14.200 to our early investors, our employees in relatively straightforward ways. 0:18:14.240 --> 0:18:15.520 There's a lot of means to do that. 0:18:16.160 --> 0:18:18.080 So a lot of the historic reasons of why you 0:18:18.160 --> 0:18:21.159 rush to go public don't don't really exist anymore. So 0:18:21.160 --> 0:18:23.680 for us that the question is when does it actually 0:18:23.880 --> 0:18:26.879 make sense? And for us it's you know, we've proven 0:18:26.880 --> 0:18:29.320 that our business model works, we've proven that we can scale, 0:18:30.000 --> 0:18:33.560 and you know, the fundamental economics of the business are 0:18:33.720 --> 0:18:36.960 shown to be, you know, as successful as we want 0:18:36.960 --> 0:18:38.520 to be, you know, a high growth company that can 0:18:38.560 --> 0:18:39.640 operate at high margins. 0:18:40.119 --> 0:18:41.800 That's fundamentally what we want to show. 0:18:41.920 --> 0:18:43.960 And when we feel like we've shown that that's a 0:18:43.960 --> 0:18:45.560 perfectly reasonable time to go public. 0:18:45.960 --> 0:18:47.400 So we're not in any run, We don't have any 0:18:47.400 --> 0:18:48.200 post sure to do it. 0:18:48.040 --> 0:18:53.200 It's great, Yeah, but investors want a stake, particularly retail, 0:18:53.359 --> 0:18:56.000 And I know you've been outspoken about the secondary market. 0:18:56.119 --> 0:18:58.480 Look today and Floppic, I think is yesterday, just put 0:18:58.520 --> 0:19:01.440 out a new blog saying that, Look, there are some 0:19:01.640 --> 0:19:03.879 areas in which Probics seems to be trading on a 0:19:03.920 --> 0:19:07.199 secondary market, and they call them stocks scams. In some 0:19:07.359 --> 0:19:10.320 areas they say it's issuing Fourgulan share certificates in the 0:19:10.320 --> 0:19:12.480 private artificial AI developer. 0:19:12.920 --> 0:19:14.120 Are you warning about that? Still? 0:19:14.119 --> 0:19:17.240 How worried are you about Andreill's shares trading fordulently on 0:19:17.280 --> 0:19:18.160 a secondary market? 0:19:19.119 --> 0:19:22.560 Look, we try to control our cap table tightly and 0:19:22.760 --> 0:19:25.360 make sure that you know everyone investor we have, We 0:19:25.640 --> 0:19:27.520 understand who they are. They're in it for the long haul, 0:19:27.520 --> 0:19:30.520 and they're in it for the right reasons. There's a 0:19:30.520 --> 0:19:35.639 lot of very bad actors that exist trying to, you know, 0:19:35.720 --> 0:19:40.200 hawk things that are not allowed, right, and we've seen 0:19:40.320 --> 0:19:43.960 a lot of prosecutions and other things related to this. Right, 0:19:44.000 --> 0:19:47.320 this is not a new issue, right, And so I 0:19:47.359 --> 0:19:51.560 think there's a problem here. I think the government's respond. 0:19:51.640 --> 0:19:54.240