Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and Vavelow in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: All eyes are on a high stakes meeting between President
Speaker 3: Trump and China's Xijing Ting. This is in video CEO
Speaker 3: Jensen Wang gets added to the trip last minute.
Speaker 2: Plus.
Speaker 4: Anthropic is looking to raise at least thirty billion dollars
Speaker 4: in fresh financing, an evaluation of more than nine hundred
Speaker 4: billion dollars and what could be.
Speaker 5: Its largest funding round yet.
Speaker 3: And we speak with Anderill CEO Brian Schimpf as the
Speaker 3: company hits a sixty one billion dollar valuation in its
Speaker 3: latest funding round. Today's big story President Trump's meeting with
Speaker 3: China's Xijingping. And Trump is joined on his trip by
Speaker 3: a host of tech leaders, including in the end in
Speaker 3: video CEO Jensen Wang. As a last minute edition, thrusting
Speaker 3: AI and tech into the spotlight for for the high
Speaker 3: stake summit. Let's bring in bloombergs Tyler Kendall for more.
Speaker 3: Who joins us from Beijing? Set the scene? What do
Speaker 3: we need to know? And my goodness what a fanfare
Speaker 3: last night when Jensen Wang was spotted on the runway
Speaker 3: in Alaska, right.
Speaker 6: Ed, I mean we saw this last minute edition he
Speaker 6: caught Air Force one during a refueling stop in Anchorage. Now,
Speaker 6: the White House says that the addition comes because Jensen
Speaker 6: Wang was able to make a scheduling change that we
Speaker 6: did hear from President Trump in a post on truth
Speaker 6: social where he appeared to be unhappy with media coverage
Speaker 6: that the Nvidia CEO originally wasn't on the manifest of
Speaker 6: travelers that we had in terms of those CEOs that
Speaker 6: are attending now. Of course, the big ticket item I
Speaker 6: don't need to tell either of you would be whether
Speaker 6: or not President Trump pushes the Chinese government to have
Speaker 6: Chinese buyers for the now greenlit h two hundred Nvidia chips.
Speaker 5: So maybe there will be.
Speaker 6: Some sort of discussions around that. I'll also throw on
Speaker 6: your radar that it is our understand that Washington and
Speaker 6: Beijing are in talks about potential cooperation when it comes
Speaker 6: to keeping a dialogue open around artificial intelligence. That could
Speaker 6: be also one of those deliverables that we see out
Speaker 6: of this meeting tomorrow between President Trump and Chinese President Xijingping.
Speaker 6: The administration maintains that they want trade to be the
Speaker 6: top priority here. Just look at the other list of CEOs.
Speaker 6: It is our understanding that they represent some of those
Speaker 6: sectors where we could see some Chinese purchase agreement commitments,
Speaker 6: including the Cargill CEO when it comes to agriculture, and
Speaker 6: the Boeing CEO also being here on the ground in Beijing.
Speaker 6: But at and Carolina at this part, it's hard to
Speaker 6: avoid that Iran will be looming very large over this conversation.
Speaker 6: In fact, a senior administration official who briefed US reporters
Speaker 6: before we headed over here to Asia did say that
Speaker 6: behind closed doors, President Trump is going to push the
Speaker 6: Chinese president when it comes to the country's stance around
Speaker 6: Iran during this conflict, including how Beijing remains the largest
Speaker 6: buyer of Iranian crude.
Speaker 4: Tyler Kendall life in Beijing. We so appreciate it.
Speaker 5: Thank you.
Speaker 4: Look, let's check on the broader markets, because there's a
Speaker 4: volatile trading session. One point, we're in the red on
Speaker 4: the Nazaq one hundred. We're now back in the green.
Speaker 4: We're at about six tens of a percent leading. The
Speaker 4: pack is of course chip makers once again in terms
Speaker 4: of points.
Speaker 5: But I shine a light what's happening in China.
Speaker 4: The Golden Dragon, that is the Nazak Golden Dragon Index,
Speaker 4: which is really basically the trading of Chinese names. Here
Speaker 4: in the US, the ADRs, we're up three and a
Speaker 4: half percent. There is a lot of excitement about what
Speaker 4: one gentsen one could meet for Chinese tech.
Speaker 3: This is really tied to the Nvidia story, and Video
Speaker 3: itself is now up almost three percent and trading at
Speaker 3: a record high, up for a six straight day, matching
Speaker 3: the run it had in early April.
Speaker 2: And the story is really simple.
Speaker 3: A lot of those Chinese AI specific names, Minimax, Gipu,
Speaker 3: the examples, I mean, look at those games. That's astonishing
Speaker 3: overnight on the idea that there might be something here
Speaker 3: that Tyler just.
Speaker 4: Outlined, something here, something certainly for the market to continue
Speaker 4: to chew on as we've just seen relentless exuberant exuberants
Speaker 4: around a Fiona's and condas with US see City Index,
Speaker 4: Financial Markets Senior Analyst and Fiona Is there rationality to
Speaker 4: the moves in the Chinese names on the back of
Speaker 4: hope that they'll get access to more powerful chips. Is
Speaker 4: that something that you're looking to come out of the
Speaker 4: geopolitical event in China, you know.
Speaker 7: Something we've got our eyes on.
Speaker 8: So I think, you know, that would be the absolute
Speaker 8: icing on the cake as far as those stocks are concerned.
Speaker 8: And that's what we're sort of starting to see priced in.
Speaker 8: Is that optimism that that could potentially be on the table.
Speaker 8: I mean, the fact that we saw that later edition
Speaker 8: of Kuwan Jun saying joining the delegation to the US,
Speaker 8: I think has really just sort of been spurred on
Speaker 8: those hopes. And I think there's sort of broad More
Speaker 8: broadly speaking, I think there is just a level of
Speaker 8: excitement surrounding Trump's trip to China, and I think that's
Speaker 8: sort of really evident as we're seeing, you know, the
Speaker 8: Nazak push higher, even though we've got sort of those
Speaker 8: concerns regarding inflation and the sort of fundamental backdrop which
Speaker 8: normally would weigh down the tech index.
Speaker 3: We have been talking about the impact of the latest
Speaker 3: economic data in the markets, but I want to stay
Speaker 3: focused on what's happening in China. How does the market
Speaker 3: interpret and price in this delegation of CEOs that we're
Speaker 3: showing on the screen right now, Tim Cook, Elon Musk,
Speaker 3: Chuck Robbins, and as we've all mentioned, Jensen one with
Speaker 3: the president. What is it the market thinks that does
Speaker 3: this is like the who's who?
Speaker 8: You know, literally the top list of the CEOs from
Speaker 8: the US that you could wish for to go to
Speaker 8: speak to China regarding trade, regarding you know what move
Speaker 8: forward in AI, in chips. I mean, you know, the
Speaker 8: potential for these two economies to actually get sort of
Speaker 8: further agreements surrounding such enormous topics would be massive, And
Speaker 8: I mean, you know, I don't think we can underestimate that.
Speaker 8: I mean, if we just think about sort of you know,
Speaker 8: for example, chips, which you know have been a massive
Speaker 8: part of the story the rally in recent weeks. You know,
Speaker 8: if we think about it, the US is very much
Speaker 8: dominating the sort of the AI computing power at the
Speaker 8: top of the technology set, but at the bottom you've
Speaker 8: got China controlling much of the supply chain critical minerals
Speaker 8: needed to manufacture semmericonductors and advance electronics. So you know,
Speaker 8: if there are these two economies are deeply independent on
Speaker 8: each other. So the more agreements, the more synergies that
Speaker 8: they get together, the better that's going to be.
Speaker 4: Look, we are seeing just the run up in semiconductors
Speaker 4: hardware in particular continue. Even if we took a breath yesterday,
Speaker 4: we're back on and in the green today, Fiona.
Speaker 5: And it's notable that we're waiting.
Speaker 4: An IPO could be priced today, likely to start training
Speaker 4: tomorrow as cerebras. How are you thinking about the appetite
Speaker 4: among your clients to get more exposure, particularly for these
Speaker 4: very AI specific names.
Speaker 8: Yeah, there's been you know, an extremely ramping up of
Speaker 8: demand over the last few weeks. I mean it's definitely
Speaker 8: caught the markets by surprise. I think, you know, we've
Speaker 8: seen that rally come, especially given the fact that we
Speaker 8: did see sort of in a little bit of a
Speaker 8: more depressed outlook towards these stocks at the end of
Speaker 8: last year and the beginning of this year. But you know,
Speaker 8: that has definitely moved forward. We're seeing that our clients
Speaker 8: are really very interested still in their stocks, which is
Speaker 8: interesting because I think technically the position is looking a
Speaker 8: little bit over done, so I think, you know, there
Speaker 8: is room for some consolidation and potentially a pullback here.
Speaker 8: But I think broadly speaking, the longer term trend is
Speaker 8: still looking very positive.
Speaker 2: Yeah. I mean that's the question for me, what happens next?
Speaker 6: Right?
Speaker 3: You know, technology stocks basically are still at record highs
Speaker 3: irrespective of what's happening around the world, So what does
Speaker 3: happen now and why? What is the big swing factor
Speaker 3: in markets for you?
Speaker 7: Yeah? Completely?
Speaker 8: I mean this is what's really interesting, isn't that I
Speaker 8: think is the fundamental backdrop that we have is far
Speaker 8: from ideal. So I think, you know, if we look
Speaker 8: about what could happen next, I mean, supposing we do
Speaker 8: get the reopening of the Straight of horn Moose in
Speaker 8: the coming weeks, that would make the backdrop suddenly much
Speaker 8: more favorable, which potentially could mean there could be more
Speaker 8: gains to be had, not just in AI, not just
Speaker 8: in tech.
Speaker 7: SoCs, but potentially across the board.
Speaker 8: But I think if that doesn't happen, we're still seeing
Speaker 8: this solid demand for tech in AI, and I think
Speaker 8: there is a potential, as I said, for it to slow,
Speaker 8: even for there to be some consolidation or a pullback,
Speaker 8: just given the fact that we are technically so overdone.
Speaker 8: But I think as far as the child is looking,
Speaker 8: there isn't anything on there that's telling us that there
Speaker 8: are reversals.
Speaker 7: Coming anytime soon.
Speaker 8: And so for the time being, the side of least
Speaker 8: redistance does appear to be upwards.
Speaker 4: And is that global Fiona, As we're talking about China,
Speaker 4: we talk about the US, but Europe ASML has been
Speaker 4: a key name.
Speaker 5: We think about what's been happening in Japan, in South.
Speaker 4: Korea, which of course was shaken over the last couple
Speaker 4: of trading days because of talk of maybe some sort
Speaker 4: of citizen dividend and a sharing of the wealth of AI.
Speaker 7: Yeah, that's right.
Speaker 8: I mean the COSB, I think is a really interesting example.
Speaker 8: We've seen the volatility there really come up. I mean
Speaker 8: that had some extremely strong games before we had that pullback.
Speaker 8: But I think that's an interesting point that's being made
Speaker 8: there about the sort of the dividend, the people's dividend.
Speaker 7: On AI, that tax on AI.
Speaker 8: Is that something that could potentially be a risk point
Speaker 8: further down the line more globally. That's something I would
Speaker 8: be watching out for. But I think for now, this
Speaker 8: is a global story that we're looking at as far
Speaker 8: as AI is concerned, and that demand for tech is definitely.
Speaker 3: Back on Fionasenkodo City Index. Great to have you back
Speaker 3: on boombog Tech, Thank you very much. Coming up, we're
Speaker 3: going to speak with anderill Ceobrian Shint. The company hits
Speaker 3: a sixty one billion dollar valuation in its latest funding round.
Speaker 2: That's next. This is Bloomberg Tech. Defense tech start.
Speaker 3: Up Anderil has rocketed to a sixty one billion dollar
Speaker 3: valuation after a fresh five billion dollar raise led by
Speaker 3: Frive Capital and Ndres and Horr. It's almost twice the
Speaker 3: valuation it's said at one year ago. It underscores surging
Speaker 3: investor appetite for AI driven defense tech. Joining us now
Speaker 3: is Andreil CEO, Brian Schimp and Brian. It's good to
Speaker 3: have you back with us on bloom Thank you so much.
Speaker 2: Happy to be here.
Speaker 3: This is confirmation a little bit of what we reported
Speaker 3: about a month couple of months ago. But actually when
Speaker 3: you come on the program, a lot of the questions
Speaker 3: we get for you are operational. So let's take the
Speaker 3: five billion dollars that you've raised, how much of that
Speaker 3: is to get Arsenal one done built and all of
Speaker 3: the other operational timelines that you guys are holding yourselves
Speaker 3: to imminently.
Speaker 9: Yeah, So as a business, you know, we were entering
Speaker 9: this period where production is the name of the game.
Speaker 9: So vast majority of our capital goes to scaling our factories,
Speaker 9: building out our production workforce, funding all that inventory, and
Speaker 9: really just getting that ramp to production working. We're increasing
Speaker 9: production revenue something like two hundred and fifty percent over
Speaker 9: the year, just year over year, So just a huge
Speaker 9: ramp in what we're seeing in terms of demand for
Speaker 9: our technology.
Speaker 7: Demand.
Speaker 5: Talk about it, how much breadth are we seeing.
Speaker 4: The geopolitical conflicts they have sadly increased, and we're still
Speaker 4: seeing this focus on the need for defense tech, but
Speaker 4: we know that the money is often still spent on primes.
Speaker 9: Yeah, I mean, look, we are still relatively young as
Speaker 9: a company. We're nine years in. We've been very successful
Speaker 9: by any measure for a company at that age in
Speaker 9: the defense world, and in the fraction of the market
Speaker 9: we're actually addressing right now is still quite small. But
Speaker 9: where we are seeing a lot of demand is particularly
Speaker 9: around things like counter drone and aaron missile defense. That's
Speaker 9: where you look at the conflict. This is a huge issue.
Speaker 9: This is a huge area where we're seeing massive increases
Speaker 9: and what the customers want, you know, our electronic warfare systems,
Speaker 9: our surface their missile systems, and then the other capability
Speaker 9: that we're seeing a lot of demand on that was
Speaker 9: you know, just announced today was a multi year procurement
Speaker 9: of a low cost cruise missile that we call Barracuda.
Speaker 9: The Department is buying, you know, thousands a year of these,
Speaker 9: and we're ramping these at just an unprecedented pace and
Speaker 9: being able to get these out to help with that
Speaker 9: critical munitions shortage and the ability to sustain these conflicts
Speaker 9: and provide the deterrence we need.
Speaker 2: Brian, just humor me on this one.
Speaker 3: The five billion dollars is sufficient to finish Arsenal one
Speaker 3: and start the production ramp.
Speaker 9: Yeah, so we are already ramping production with the money
Speaker 9: we had in the bank. This is really about how
Speaker 9: do we continue to fuel that growth. I don't think
Speaker 9: we're going to see Arsenal one be done anytime soon
Speaker 9: because I think the demand we're going to continue to
Speaker 9: see and the amount we're going to have to new
Speaker 9: new scales just going to ramp and ramp over the
Speaker 9: next several years. This is a good problem to have,
Speaker 9: right and so we benefiting from the private markets and
Speaker 9: the ability to fund these very aggressive ramps. And it's
Speaker 9: a huge testament to you know, the American capital system
Speaker 9: that we can fund these things very, very quickly.
Speaker 3: It was interesting to go through a letter to your
Speaker 3: shareholders he wrote back in January actually and like kind
Speaker 3: of foretelling what was to come in the year. There's
Speaker 3: still a bit of a mistique about Anderill, right, so
Speaker 3: I think Palmer Lucky, one of your co founders, has
Speaker 3: talked about the idea that half of Android's products aren't
Speaker 3: really known about. There's particular interest in the next wave
Speaker 3: of subterrian weapons systems. Could you talk as far as
Speaker 3: you can about where those get built, you know, the
Speaker 3: next phase of life und reill beyond what the initial
Speaker 3: focus of Arsenal one is.
Speaker 9: Yeah, So the purpose of the board letter was layout
Speaker 9: a lot of the you know kind of why of
Speaker 9: what are we doing? What's made us successful is we
Speaker 9: look at, you know, with the SS and technology, the
Speaker 9: shifts and warfare, what are the capabilities that are going
Speaker 9: to be needed over the next five or ten years
Speaker 9: and how can we start to invest to bring those forward.
Speaker 9: So you know, we're working on a whole plethora of
Speaker 9: different products, you know, everything, expanding the air and missile
Speaker 9: defense portfolio.
Speaker 10: We're working on, you know, new domains we're operating in.
Speaker 9: Palmer's always experimenting with the latest and greatest technologies and
Speaker 9: figuring out what you can do that nobody thought possible.
Speaker 9: So we just have a constant source of new ideas
Speaker 9: how technology can apply. But fundamentally, we look at this
Speaker 9: question of what are going to be the dominant technologies
Speaker 9: over the next ten or twenty years. What we're seeing
Speaker 9: in Iran, what we're seeing in Ukraine is that this
Speaker 9: idea of just the sheer volume of munitions that are
Speaker 9: exchange and the need to defend against that. These our
Speaker 9: critical capabilities that in any world will need to be
Speaker 9: solved for. And so a lot of our focus is
Speaker 9: really around these ideas of you know, how do we
Speaker 9: provide the right strike capabilities, the right intelligent targeting capabilities
Speaker 9: and the defense of these as well.
Speaker 5: At the right price. And I'm really interested Bran in.
Speaker 4: Some of these new ideas come from the administration itself,
Speaker 4: and the Golden Dome project is one of those new
Speaker 4: ideas that, according to current budget forecasts coming from the
Speaker 4: Congressional Budget Office, could be up to one point two
Speaker 4: trillion dollars of the ultimate project. Now, I know you're
Speaker 4: among the companies have been awarded initial contracts. Run what
Speaker 4: do you make of how much this could end up
Speaker 4: costing it?
Speaker 5: And it's worth.
Speaker 9: So a lot of those estimates are based off of
Speaker 9: what this would have cost historically, right, and that was
Speaker 9: based around building these things that are extremely expensive and
Speaker 9: extremely exquisite, where you're talking you know, ten twenty thirty
Speaker 9: million dollars a shot to you know, actually provide that
Speaker 9: defense well with commercial technologies, taking a smarter approach, using
Speaker 9: a lot of proven, you know, capabilities that already exist,
Speaker 9: adapting them for this problem, we believe you can get
Speaker 9: this to a much more efficient place and probably even
Speaker 9: more than.
Speaker 10: The price is can you even produce it?
Speaker 9: And today that's one of the major concerns, right, you know,
Speaker 9: we we shot something like a decade of tomahawk production
Speaker 9: in seventy two outs. You know, it's just a crazy
Speaker 9: rate that we're consuming these things, and the ability to
Speaker 9: replenish these becomes a critical issue.
Speaker 10: So our view of this is these are solvable problems.
Speaker 9: You can do it in a more efficient way than
Speaker 9: has been historically executed, and I think that you know,
Speaker 9: being able to execute this at a national scale is
Speaker 9: achievable now in a much more aggressive timeline at a
Speaker 9: much more efficient price than I think people have historically imagined.
Speaker 2: Okay, you get asked this a lot. Palmlucky gets asked
Speaker 2: this a lot. Trey gets asked it a lot.
Speaker 3: But when you do arounded this scale and you look
Speaker 3: at the composition of it, who's not there? People want
Speaker 3: to know about the rationale Forander or going public. Why
Speaker 3: they weren't more crossover investors. You know, this is the
Speaker 3: first time actually, Brian, you, the three of us have
Speaker 3: had to talk in length because when we were with
Speaker 3: you in October, the President made some news about China.
Speaker 3: So just talk us through Brian Shimp's thinking on an
Speaker 3: anderill Ipo.
Speaker 9: So we want to build one of the most pactful
Speaker 9: businesses in the world. Like, that's our goal, right, We
Speaker 9: want to seriously move the needle for the US and
Speaker 9: Allied warfighters, provide the right to terms capabilities, and do
Speaker 9: it at the men's scale, right, That is fundamentally what
Speaker 9: we care about. The rationale for going public is a
Speaker 9: lot less than it used to be. The private capital
Speaker 9: markets have grown in scale, the ability to fund a
Speaker 9: business like ours. You know, when we were doing this
Speaker 9: a few years ago, we were you know, at the
Speaker 9: upper end of what capital raises look like in the
Speaker 9: private market. We are a fraction of an AI fundraised
Speaker 9: at this point, and so the amount of capital that
Speaker 9: is available and it you know, wants to support these
Speaker 9: types of companies is is massive.
Speaker 10: So we're not in a rush to go public, right.
Speaker 9: We don't need to do it from the perspective of
Speaker 9: capital availability or liquidity. You know, we can provide liquidity
Speaker 9: to our early investors, our employees in relatively straightforward ways.
Speaker 10: There's a lot of means to do that.
Speaker 9: So a lot of the historic reasons of why you
Speaker 9: rush to go public don't don't really exist anymore. So
Speaker 9: for us that the question is when does it actually
Speaker 9: make sense? And for us it's you know, we've proven
Speaker 9: that our business model works, we've proven that we can scale,
Speaker 9: and you know, the fundamental economics of the business are
Speaker 9: shown to be, you know, as successful as we want
Speaker 9: to be, you know, a high growth company that can
Speaker 9: operate at high margins.
Speaker 10: That's fundamentally what we want to show.
Speaker 9: And when we feel like we've shown that that's a
Speaker 9: perfectly reasonable time to go public.
Speaker 10: So we're not in any run, We don't have any
Speaker 10: post sure to do it.
Speaker 4: It's great, Yeah, but investors want a stake, particularly retail,
Speaker 4: And I know you've been outspoken about the secondary market.
Speaker 4: Look today and Floppic, I think is yesterday, just put
Speaker 4: out a new blog saying that, Look, there are some
Speaker 4: areas in which Probics seems to be trading on a
Speaker 4: secondary market, and they call them stocks scams. In some
Speaker 4: areas they say it's issuing Fourgulan share certificates in the
Speaker 4: private artificial AI developer.
Speaker 5: Are you warning about that? Still?
Speaker 4: How worried are you about Andreill's shares trading fordulently on
Speaker 4: a secondary market?
Speaker 9: Look, we try to control our cap table tightly and
Speaker 9: make sure that you know everyone investor we have, We
Speaker 9: understand who they are. They're in it for the long haul,
Speaker 9: and they're in it for the right reasons. There's a
Speaker 9: lot of very bad actors that exist trying to, you know,
Speaker 9: hawk things that are not allowed, right, and we've seen
Speaker 9: a lot of prosecutions and other things related to this. Right,
Speaker 9: this is not a new issue, right, And so I
Speaker 9: think there's a problem here. I think the government's respond.
Speaker 4: Can you name the companies, Like, are there any secondary
Speaker 4: market providers you take issue with in particular?
Speaker 5: Sorry, just briefly name names?
Speaker 9: No, I mean, look like the reality is it's mostly
Speaker 9: individual bad actors. Very few of these you know, second
Speaker 9: market brokerages or listing things are inherently the problem. The
Speaker 9: issue is investors, you know, not even investors, these brokers
Speaker 9: misrepresenting what they have access to. And that's not good
Speaker 9: in a public market. It's not good in a private market.
Speaker 9: So the you know, I think it is a problem,
Speaker 9: but you know, it's something that we do everything weekend
Speaker 9: to control and try to help curtail.
Speaker 10: And it's affecting every one of the companies. Who are
Speaker 10: you know, interesting in the private markets.
Speaker 3: Brian, you've been generous to your time before we lose
Speaker 3: you from the program. The President's visit to China, the
Speaker 3: timeline of the threat to Taiwan twenty twenty seven.
Speaker 2: What Danderil's thinking on that.
Speaker 9: Look, diplomacy is good. We're in the deterrence business. We
Speaker 9: do not want there to be a conflict, and I
Speaker 9: think the President going and engaging REGI is a fantastic thing.
Speaker 9: And I'm very excited to see what comes out of this.
Speaker 9: And you know, we're also providing a lot of technology
Speaker 9: to Taiwan, supporting them and every opportunity we can, because
Speaker 9: we believe that they need the right capabilities and to
Speaker 9: have the right deterrence. And you know, the long talked
Speaker 9: about window of twenty twenty seven, kind of the period
Speaker 9: of maximum danger, I think it is true. You know,
Speaker 9: I don't think anyone believes that it was a you know,
Speaker 9: January one, twenty twenty seven and invasion begins, but it
Speaker 9: highlights a period where, you know, kind of the PRC
Speaker 9: has a more established military capability and the US and
Speaker 9: Taiwan at a relative disadvantage compared to other points in time,
Speaker 9: and so it is a period of significant risk. And
Speaker 9: with all of the complexities going on in the world
Speaker 9: with Iran, with Ukraine, you know, with all the other
Speaker 9: areas that are you know, hotspots in the world, it
Speaker 9: creates a significant stress on the US military. So I
Speaker 9: think this is the opportunity for diplomacy is good to
Speaker 9: try to ensure that nothing does happen and try to
Speaker 9: find a scenario that preserves the status quo, that is
Speaker 9: working reasonably well, and that's that's honestly what I hope
Speaker 9: for out of this summit.
Speaker 4: Bran Chef fascinating all things geopolitics, all things you'll raised
Speaker 4: sixty one billion dollar valuation the Andreil CEO.
Speaker 5: We so appreciate your time today.
Speaker 4: Now it's expected to be the final day of evidence
Speaker 4: in the closely watched trial between Elon.
Speaker 5: Musk and open Ai. Yesterday, Sam Altman.
Speaker 4: Told jurors he was quote extremely uncomfortable with Musk's insistence
Speaker 4: on having full control of the startup in its early days.
Speaker 4: Mask You're a member is suing open Ai, his former
Speaker 4: co founders, and Microsoft, alleging that they abandoned the chatchebt
Speaker 4: maker's altruistic mission. Let's get more with Bloomberg AI editor
Speaker 4: Seth Figgerman. So what seems to have transpired, what's being
Speaker 4: articulated by Sam Altman is that at some point in
Speaker 4: al Musk actually was thinking about a profit side of it,
Speaker 4: thinking about trying to earn control, and indeed was then
Speaker 4: thinking bequeathing it to his children if he died, right.
Speaker 11: As one does. Yeah, a little bit of dramatic testimony there.
Speaker 11: So much of o'pennie's counter argument to Musk claims here
Speaker 11: is that really his frustration is that he was not
Speaker 11: able to control and be CEO of Opennie and the
Speaker 11: way that he is with all his other ventures. And
Speaker 11: so Sam Alman recounted a conversation with Musk where he
Speaker 11: allegedly said that you know, if and when he were
Speaker 11: to die and he was in control of Opennie, he
Speaker 11: would pass it along to his children. Now you know
Speaker 11: that's openiey saying it, but also said that, you know,
Speaker 11: Musk wanted control in the early days, but wasn't really
Speaker 11: willing to sign documentations saying that control would lift at
Speaker 11: some point. In his own testimony, Musk has said, yeah,
Speaker 11: he might have had control early on, but the expectation
Speaker 11: was more investors would come in and eventually he wouldn't
Speaker 11: have that same level of control and.
Speaker 5: Beg Seth Figerman. We so appreciate the round up. We
Speaker 5: have some breaking.
Speaker 4: News though that we must hit because crossing the terminal
Speaker 4: right now, ARM and its majority owner soft Bank reportedly
Speaker 4: tried to buy Cerebrus in an evenly split cash and
Speaker 4: stock deal that would have valued the upstart at one
Speaker 4: hundred billion dollars. According to sources, This all happened weeks
Speaker 4: before the chip maker was due to make its public debut.
Speaker 4: Of course, the person who's been busy breaking that story
Speaker 4: and also come anchoring the show on air is one
Speaker 4: Ed Ludlow. Talk us through it as to this was
Speaker 4: happening in the background during May.
Speaker 3: Yeah, look, Cerebras is going to list tomorrow, right, and
Speaker 3: this happened at the beginning of May. They very clearly
Speaker 3: said no, we're not interested. But ARM and soft Bank,
Speaker 3: which majority owns ARM, tried why very interesting. We can
Speaker 3: get into it in the back half of the show
Speaker 3: because there's a lot more to come on Bloomberg Tech.
Speaker 3: Welcome back to Bloomberg Tech. Let's get back to that
Speaker 3: news that broke just a few moments ago. ARM and
Speaker 3: its majority own a soft Bank tried to buy Cerebras.
Speaker 2: That's according to sources.
Speaker 3: My understanding is this all happened in the last couple
Speaker 3: of weeks, early May, and it's just before Cerebras, the
Speaker 3: chip maker is Judo public day. They were robuffed, you know,
Speaker 3: Cerebras said no. My understand is and understanding his ARM
Speaker 3: and soft Bank would have happily paid a premium, big premium,
Speaker 3: but Cerebras backs itself, and its leadership back backs them,
Speaker 3: and the investors backed them to do this alone as
Speaker 3: a public company.
Speaker 4: I mean, look at the demand for its IPO looks
Speaker 4: going to be pricing today. We understand that it's going
Speaker 4: to price at the top end of the marketed range
Speaker 4: up to one hundred and sixty dollars plus.
Speaker 5: We're seeing maybe the biggest.
Speaker 4: Amount raised in a semiconductor.
Speaker 5: Name since ARM went public. Maybe even more of the
Speaker 5: green shoe allotment is used.
Speaker 4: But why would ARM and Cerebras have been sort of
Speaker 4: a useful synergy here?
Speaker 3: Well, because you know, ARM goes from being a chip
Speaker 3: designer to wanting to be a chip maker like actually
Speaker 3: sell directly into the market, and Cerebras this in this
Speaker 3: phase of inference in AI the broader infrastructure play it
Speaker 3: backs itself as well. Anyway, I should just probably note
Speaker 3: that all of the parties involved declined to comment or
Speaker 3: did not immediately respond to comment to Bloomberg. We should
Speaker 3: check in on our markets, because markets being than by
Speaker 3: what's happening in Beijing. Then, as that one hundred modestly
Speaker 3: higher four tenths percent US listed Chinese companies that's the
Speaker 3: Golden Dragon China Index up four percent.
Speaker 2: A big part of this is in Nvidia.
Speaker 3: Shares of Chinese AI model developers in particular surged after
Speaker 3: in video CEO Jensen Wang was announced to be joining
Speaker 3: President Trump's China trip. Shares of Minimax and GPU on
Speaker 3: the hopes of progress on Nvidia's ability to sell chips
Speaker 3: into China. Look at those gains overnight Bloomberg's Chinese Equities report.
Speaker 3: Henry Renn is with us. Henry, look at those gains overnight.
Speaker 3: I mean the response in Asia trading was interesting.
Speaker 2: Yeah, that's right.
Speaker 12: So the last minute trip by Jensen Vana's boasting the
Speaker 12: morale of mainland traders. We're seeing double digit gains in
Speaker 12: the likes of Tupol and Minima Access well the Chinese
Speaker 12: model makers, but not limited to that. That has obviously
Speaker 12: spread to today's US trading session as well. We see Ali, Baba, JD,
Speaker 12: the likes of those Chinese tech names also trading hire
Speaker 12: in mainland session. We have the Chinax Index, which is
Speaker 12: China's equivalent of Nasdaq for those young tech companies also
Speaker 12: soaring to a record. So there are some optimism that
Speaker 12: China and US could strike some form of deals on
Speaker 12: chip x sports. And remember that Nvidia has gained approval
Speaker 12: from Washington to sell h two hundred chips into China
Speaker 12: since end.
Speaker 2: Of last year.
Speaker 12: But still that there are some hopes that for more
Speaker 12: powerful models can be used.
Speaker 4: Really interesting that you bring up Ali Baba because actually
Speaker 4: Ali Baba Tencent, they gave us fundamentals as well.
Speaker 5: They came out with their earnings.
Speaker 4: And thus far they're investing a ton, but the return
Speaker 4: on that investment from AI investment just doesn't seem to
Speaker 4: be there yet.
Speaker 12: Yeah, that's the huge issue that the market is focusing
Speaker 12: on today with both company reporting results, so probably we
Speaker 12: can start from Ali Baba. So the company, I think
Speaker 12: it does reassure investors because it's said it's cloud revenue
Speaker 12: grew by about forty percent in the first quarter, and
Speaker 12: that's the key number that market has been focusing on.
Speaker 2: That's an acceleration from.
Speaker 12: The quarter earlier, so it does show that there are
Speaker 12: some AI trajectory going on. And in the meantime, it's
Speaker 12: also saying that for its AI related revenue related to
Speaker 12: its models as well as application services, that will reach
Speaker 12: about one hundred ten billion R and B for the
Speaker 12: June quarter, so that's a helpful additional disclosure as well.
Speaker 12: So it does show some AI momentum, but at the
Speaker 12: same time that Capex has been soaring as you mentioned, Yeah.
Speaker 4: I mean while ten Cent reported this last place of
Speaker 4: revenue growth in over a year. Henry Rens always great
Speaker 4: to catch up with you and the latest and all
Speaker 4: things China and AI. But now let's take a look
Speaker 4: at today's big number. It's around AI and it's over
Speaker 4: nine hundred billion dollars. This is Athropits targeted new valuation,
Speaker 4: according to sources who say the company is in early
Speaker 4: talks with investors to raise at least thirty billion dollars
Speaker 4: lush financing. It could set the stage what maybe the
Speaker 4: largest funding round yet for the company, though the deal
Speaker 4: it's not been finalized, no term sheet has been signed.
Speaker 4: Natasha Mascarenes, who joins us now, who helped break this
Speaker 4: story alongside Ed and just tell us a little bit
Speaker 4: about the inbounds, almost the love letters they've been receiving
Speaker 4: from potential investors.
Speaker 13: It's a great way to describe it, Caroline. I mean,
Speaker 13: a few weeks ago, these were conversations that were coming
Speaker 13: completely unsolicited from Anthropics backers. Now we have reporting that
Speaker 13: they are engaging in those conversations and discussing around that
Speaker 13: could see them raise at least thirty billion, and sources
Speaker 13: are telling us that the round could close as soon
Speaker 13: as the end of this month. It's one that we're
Speaker 13: tracking very closely and definitely the biggest update we've had
Speaker 13: on the round throughout this circus of interest.
Speaker 3: You know, the private markets are alive, you know, to
Speaker 3: put it mildly, and it's interesting this Hasha that you know,
Speaker 3: Anthropic feels comfortable now with this valuation here. We've gone
Speaker 3: from a place in just the last two or three
Speaker 3: weeks where they a rebuffed office and now you know,
Speaker 3: we don't want to do this. But the main thing
Speaker 3: that's happened in the interim is that Claude continues to
Speaker 3: have Amnum enterprise adoption of Enthropic, and then there's the
Speaker 3: Mefos government angle give us the sort of awkward elephant
Speaker 3: in the room, which is that if they close this round,
Speaker 3: they will have evaluation higher than open AI.
Speaker 5: Absolutely.
Speaker 13: I mean, this is a massive narrative shift around Anthropic
Speaker 13: and we've been covering it relentlessly. Our understanding is that
Speaker 13: the investor interest far exceeds how much Anthropic will actually
Speaker 13: end up accepting from investors, and so you are seeing
Speaker 13: them maybe be picky on valuation.
Speaker 5: Lead investor.
Speaker 13: The term shit is not officially signed as of our
Speaker 13: reporting last evening, but we do expect that to change,
Speaker 13: you know, as fast as we're able to confirm it.
Speaker 13: And so the real question and what we're looking at
Speaker 13: next is, let's say Anthropic closes us around as per
Speaker 13: our sources as soon as the end of this month.
Speaker 13: Does this change their IPO timeline? Does it need to
Speaker 13: change their IPO timeline? I mean, you guys just had
Speaker 13: Brian Schimp from Andral on the show who was saying
Speaker 13: that Andreol was raising just a quarter of what AAI
Speaker 13: financing is. I'm curious what you think ed about if this,
Speaker 13: does you know, change when we see the sprite officially
Speaker 13: filed for Ananthropic, Well.
Speaker 3: It depends what happens with SpaceX June July. Does that
Speaker 3: sock Oxygen out of the room. But again, if the
Speaker 3: private markets provide, what's the need to go public? Bloombasin
Speaker 3: Tash Mascaranus teaming up on another big twist and turn
Speaker 3: in the Anthropic story.
Speaker 4: Some breaking news regarding Misral, the AI giant of France
Speaker 4: is apparently developing a new AI model for banks who
Speaker 4: lack access to Mythos. This is all about cybersecurity vulnerabilities. Already,
Speaker 4: Mistral of France had been working with local European banks
Speaker 4: to have a new model that would stress test cyber
Speaker 4: risks around the banks and more broadly in their systems.
Speaker 4: When now we understand those banks of course have been
Speaker 4: wanting access to Mythos, and now Mistral is looking to
Speaker 4: develop this new model that can uncover cybersecurity vulnerabilities at
Speaker 4: unprecedented speed and ScaleOut reporting.
Speaker 2: All according to Bloomberg's sources.
Speaker 3: Okay, Varda Space is planning to send medicines from United
Speaker 3: Therapeutics into orbit to explore the use of microgravity in
Speaker 3: creating drugs.
Speaker 2: It's one of the first commercial.
Speaker 3: Research deals to develop medicine molecules in space and then
Speaker 3: return them to Earth. That the mission still in its
Speaker 3: early stages. I speak with Varda CEO Will Brewy. Let's
Speaker 3: talk timeline. This is exciting development for you guys because
Speaker 3: it's a real commercial opportunity. When does it happen? What
Speaker 3: are the steps to start working with United.
Speaker 14: Yeah, thanks for having me ed. It's happening now, which
Speaker 14: is really exciting. The research has been done for decades
Speaker 14: and so now we're moving into the commercial phase. VARDA
Speaker 14: has been flying for years, and so this commercial endeavor
Speaker 14: will be putting drugs into space in the next year.
Speaker 14: We're working on those drugs right now in the lab
Speaker 14: with United.
Speaker 4: And when they're in space, what are you hoping to prove?
Speaker 5: What are you hoping to see? Where does this drive United?
Speaker 14: So the most confusing thing about VARDA is the space part.
Speaker 14: If you just imagine we had an anti gravity technically,
Speaker 14: admit it.
Speaker 2: Yeah, if you imagine.
Speaker 14: We had an anti gravity technology where we could manipulate
Speaker 14: chemical systems on Earth to improve formulations in a way
Speaker 14: that would otherwise be impossible. And by formulation I mean
Speaker 14: going from like an IV bag to a shot or
Speaker 14: better bioavailability. Then it would make total sense. Now is
Speaker 14: shipping the space is becoming just shipping. We can access
Speaker 14: microgravity in a way that helps patients.
Speaker 3: Today, I've had the opportunity to sort of interact with
Speaker 3: I don't know you called it a spacecraft or if
Speaker 3: you call it a minifactory, but just go through the
Speaker 3: basics of who's the launch provider, what happens when you
Speaker 3: get into low Earth all a bit? And then how
Speaker 3: long typically is the spacecraft will capsule in all bit?
Speaker 14: Sure, So I'll even step back just because we're so
Speaker 14: excited about this United announcement today. First, we work with
Speaker 14: the customers before we even get there, and we develop
Speaker 14: a microgravity enabled formulation on the ground in our lab
Speaker 14: in cooperation and partnership with United. Once those microgravity enabled
Speaker 14: formulations are ready for flight, what does that.
Speaker 5: Look like like gravity enabled formula?
Speaker 14: It means that the temperature, profile, the concentration, all the
Speaker 14: parameter that would go into any other drug formulation now
Speaker 14: has the option of turning off gravity during the process,
Speaker 14: which means we can make a new outcome for patients.
Speaker 14: So then what we do is, once we have that formulation,
Speaker 14: we load it into our spacecraft. Our launch provider is SpaceX.
Speaker 14: We launch put our spacecraft onto a Falcon nine rocket
Speaker 14: dedicated rideshare, which is great because now we get to
Speaker 14: take advantage of good costs and frequent availability to space.
Speaker 14: So now the spacecraft separates from the rocket like it
Speaker 14: would any other satellite, So it looks like a satellite
Speaker 14: to SpaceX. You can fit twenty of these things on
Speaker 14: a single rocket. It's now orbiting the Earth. We do
Speaker 14: the manufacturing process where there isn't gravity affecting the sedimentation
Speaker 14: of the crystals, and then once those properties are locked in,
Speaker 14: our spacecraft flies itself back to earth lands in Australia.
Speaker 14: And now we have the drug for patients.
Speaker 5: And what does it help patients with?
Speaker 4: I mean, how is this going to unleash a whole
Speaker 4: new area of medicine.
Speaker 14: It's wild because it's gravity is a fundamental force of physics,
Speaker 14: so it's extremely broad technology, anything from bioavailability to shelf stability.
Speaker 14: A classic example that was flown on the International Space
Speaker 14: Station was going for from an IV bag to a shot.
Speaker 14: So imagine you're in rural America and you don't have
Speaker 14: access to a clinic. You now have access to the
Speaker 14: drug because that same drug can be form factored into
Speaker 14: a shot instead of an IV bag, and that shot
Speaker 14: can come to you instead of.
Speaker 2: You having to go to the clinic.
Speaker 3: We're showing images right, this is images of vod of
Speaker 3: returning to Earth. So this sounds ridiculous, and I'll say
Speaker 3: it anyway. You try and land in Australia. That seems
Speaker 3: quite easy. Australia is quite big. Actually it's not. How
Speaker 3: restrictive is that that landing pad of it of one
Speaker 3: continental nation?
Speaker 14: Yes, yes, so more than try. I mean we've done
Speaker 14: this now four or five times. And the reason I
Speaker 14: say four or five one of them was in Utah
Speaker 14: and the rest were in Australia.
Speaker 2: But that go in Utah. Oh, it was great.
Speaker 14: I mean, you know mission that was our first mission success.
Speaker 2: See. Yeah.
Speaker 14: The thing that's nice about Australia is it's a commercial range,
Speaker 14: so we don't need to get in the way of
Speaker 14: the military operations that are happening at our test ranges,
Speaker 14: so we can not disturb them while while landing commercially.
Speaker 14: But it's great, I mean it makes the the the
Speaker 14: process way easier.
Speaker 5: You're excited about United Therapeutics deal. Where next? How what
Speaker 5: does this prove out for others?
Speaker 14: Well, this is just the tip of the tip of
Speaker 14: the iceberg because it's such a broad technology that affects
Speaker 14: so many drugs. You know, United is kind of in
Speaker 14: the future and they have been for quite some time,
Speaker 14: and so we're really lucky to work with such a
Speaker 14: crack team. But this technology is broad, so it applies
Speaker 14: to a wide variety of pharmaceuticals for a wide variety
Speaker 14: of patients.
Speaker 4: Well as that starts to go up into space, come
Speaker 4: back join us. Wilbury, CEO of Art of Space, on
Speaker 4: that new announcement. Meanwhile, there's been plenty of announcements coming
Speaker 4: out about agentic commerce and international expansion from a firm.
Speaker 5: It's just been.
Speaker 4: Reporting yesterday at the company's twenty twenty six investor forum,
Speaker 4: the fintech company is laying out a bold roadmap to
Speaker 4: one hundred billion dollars in annual volume. Look, CEO Max
Speaker 4: Levchen and plans to say, joins us in New York
Speaker 4: and I'm sad I'm not their next to you, Max,
Speaker 4: but to tell us about what you're in a I
Speaker 4: know too far, but I'm in interested in what you
Speaker 4: told the investors, the analyst community in New York yesterday
Speaker 4: and for the next few days.
Speaker 5: How do you get to that sort of volume? Where
Speaker 5: are the growth factors you?
Speaker 15: The exciting thing is that literally everything we have been
Speaker 15: working towards is coming together and working incredibly well. We
Speaker 15: held a similar event three years ago and promise investors
Speaker 15: will get to fifty billion dollars of growth merchandise volume,
Speaker 15: our merchant sales that we power, and we will do
Speaker 15: so by maintaining while maintaining our profit margins within three
Speaker 15: and four percent, we will grow at twenty percent per
Speaker 15: year or so. That that was the story we told
Speaker 15: them three years ago. We've now come back. We're now
Speaker 15: basically at that fifty billion dollar mark. He would expect
Speaker 15: us to slow down, but instead we told our investor
Speaker 15: based yesterday, we expect to grow twenty five percent compounding,
Speaker 15: so five points extra, and we intend to up the
Speaker 15: floor of our profitability from three to three point seventy
Speaker 15: five percent. So not only are we growing faster, not
Speaker 15: only are we reaching more consumers, more merchants, we intend
Speaker 15: to do this more profitably, and we feel it's just
Speaker 15: getting better and better for us. So that's the that's
Speaker 15: the headline. And you know, I read a lot of
Speaker 15: conversations yesterday that seem to indicate that our investors quite
Speaker 15: enjoying the news.
Speaker 3: Mac Max just very simply, why is a one hundred
Speaker 3: billion dollar volume target the right target?
Speaker 2: The right metric?
Speaker 3: When people try and understand a firm like you, come
Speaker 3: the show often and we talk about the different offerings
Speaker 3: and some of the newer products that you're doing this
Speaker 3: kind of north star or achievable goal. Probably to your mind.
Speaker 3: It's really interesting that you've set that as it.
Speaker 15: You know, it is just a waypoint. We have absolutely
Speaker 15: no intention of slowing down or stopping at one hundred
Speaker 15: is just another nice round number that we can set
Speaker 15: our sights to. But we do see an incredible market pull.
Speaker 15: Consumers are ready, they are coming to us. We are
Speaker 15: now seeing inbounds from consumers that have didn't discover us
Speaker 15: at the point of sale, which is the usual way
Speaker 15: just signing up for from asking us to send them
Speaker 15: a card so they can transact everywhere. That's been a
Speaker 15: huge poll that's contributed to our growth tremendously. Merchants come
Speaker 15: to us saying, I've seen your logo on my competitor sites.
Speaker 15: I know you're driving ten to twenty percent more sales
Speaker 15: for them.
Speaker 16: You should do the same for us.
Speaker 15: Let us sign up, you should promote our sales events,
Speaker 15: tell us merchants in your app. Because we're now reaching
Speaker 15: fifteen million monthly consumers and so on. So just the
Speaker 15: tremendous amount of we're finally a real scalable thing that
Speaker 15: every constitution cares about a lot is what gives us
Speaker 15: the confidence to go towards this new milestone.
Speaker 4: AMS liked it, like obviously talking about the pending Industrial
Speaker 4: Bank Charter. That could be another strength area than the
Speaker 4: fact that you've got competitive advantage. But take us to
Speaker 4: the future and the agentic commerce future, because we talk
Speaker 4: about it a lot on the show and you are
Speaker 4: already doing deals with Google.
Speaker 5: What does that look like in.
Speaker 4: Terms of how I'm going to be having a relationship
Speaker 4: with a firm going forward.
Speaker 15: I think it's going to be incredible. I cannot be
Speaker 15: more excited about this new AI powered future in many
Speaker 15: different facets As an engineer, as a coder, I love
Speaker 15: what we have today. As a consumer, as a buyer
Speaker 15: of complicated things, I love the help that a I
Speaker 15: provides me when I research the finer points of you know,
Speaker 15: whatever it is that I'm the matter now. A firm
Speaker 15: is a great tool of buying things that are meaningful
Speaker 15: that when it matters. That's when consumers come to us.
Speaker 15: They want anything from a bicycle to a couch to
Speaker 15: the expressing machine. During those moments, you want to know
Speaker 15: that the financing choice you're making has your back that
Speaker 15: you're not going to get hit with some unexpected fees.
Speaker 15: You know exactly when you're going to start and stop
Speaker 15: with your payments.
Speaker 2: That's what we've built, and.
Speaker 15: Agents just make it that much easier to bring to
Speaker 15: the end consumer. And the brand we've built allows people
Speaker 15: to trust us. The fact that we're able to partner
Speaker 15: with LM providers allows us to be right there when
Speaker 15: consumers are searching and doing the research. So it's just
Speaker 15: an incredible incremental growth engine that we found.
Speaker 3: Max, you're again emphasizing the word built. You do that often.
Speaker 3: But how does quickly, Max Leftchin, think about M and
Speaker 3: A in a firm's future.
Speaker 15: You know, we've looked for years. We haven't found anything
Speaker 15: in the last few so never say never. But we
Speaker 15: have so much to do just with a team that
Speaker 15: we have. It's you know, when opportunities come up, well,
Speaker 15: of course, look at them, but we're very focused on
Speaker 15: building a firm here.
Speaker 3: Max Leftchin back on Bloomberg Tech, thank you very much
Speaker 3: for your time today. Now coming out, we're going to
Speaker 3: get the bank to what to expect from President Trump's meeting.
Speaker 3: Regijen Ping and will Ai be in focus. Probably this
Speaker 3: is Bloomberg.
Speaker 4: Tech, it's time now for talking tech and first start.
Speaker 4: Softbag posted a jump in profit fueled by valuation games
Speaker 4: on its open AI investment. Kano Mascioshi San has spent
Speaker 4: the last year pivoting the company's focus from bench startups
Speaker 4: to silicon and data centers.
Speaker 5: Plus, following a visit.
Speaker 4: From Scott Besant, Japan's three megabanks are set to gain
Speaker 4: access to anthropics powerful mythos models, according to the person
Speaker 4: Familie with the matter Now. The move comes despite a
Speaker 4: widespread alarm over Mythos and speculation about its potential cybersecurity
Speaker 4: risks and Nevius Well. It's emerging as a powerhouse in
Speaker 4: the AI data center gold rush, reporting a six hundred
Speaker 4: and eighty four percent jump in first quarter sales on
Speaker 4: increased demand for its own data center. The company competes
Speaker 4: with the range of neocloud startups like Callweve that rent
Speaker 4: out competing resources to AI developers.
Speaker 3: ED okay, just go back to what everyone's talking about today,
Speaker 3: and that's President Trump's meeting, was ujingping and what to expect.
Speaker 3: Bloomberg Senior Tech editor Mike Shephard joins us from DC
Speaker 3: GO to our senior tech editor. Because there is a
Speaker 3: big delegation of tech CEOs with the president. Jensen Wong
Speaker 3: is with him and those are the issues on the table.
Speaker 17: Those are the addition at the last minute in a
Speaker 17: really dramatic move of Jensen Wang to the trip certainly
Speaker 17: thrust artificial intelligence to the center of the discussions.
Speaker 16: It's unclear what sort of progress we.
Speaker 17: Will actually see in the areas that are most dear
Speaker 17: to Nvidia and that would be gaining more access to
Speaker 17: the Chinese market. They have one US permission to sell
Speaker 17: those h two hundred AI chips to customers in China,
Speaker 17: but Chinese authorities have been reluctant to allow their own
Speaker 17: producers to buy those chips on mass and is they
Speaker 17: want to promote and protect their own domestic chip making
Speaker 17: industry led by Huawei, led by Cambra Con and SMIC,
Speaker 17: and yet there is the tension on the other side.
Speaker 17: They want their own artificial intelligence companies, the model developers
Speaker 17: also the gain and edge and they have been clamoring
Speaker 17: for that. And today we did see shares of Minimax
Speaker 17: knowledge at lists and even today US traded shares of Ali,
Speaker 17: Baba and bay Do all climb on the prospect that
Speaker 17: there could be more compute going to China.
Speaker 4: Talk to us about the names that were already solidified
Speaker 4: as going, because Qualcom's going, Micron's going. Companies with exposure
Speaker 4: to China and the one to increase where would they
Speaker 4: be fitting in to the ultimate demand equation.
Speaker 16: Here well the broader demand equation.
Speaker 17: Of course, from Micron, they have their own separate issues
Speaker 17: with China where they are almost company non grata at
Speaker 17: a certain level. Their role in the memory market is
Speaker 17: really key as well, and it's something that for chip
Speaker 17: makers and developers worldwide they want to have a piece
Speaker 17: of being able to contribute to the creation of AI
Speaker 17: processors not only designed by Nvidium, by AMD, but by
Speaker 17: other companies as well, so they could be looking to
Speaker 17: push into there, and same with Qualcom. Qualcom of course
Speaker 17: has a lot of business when it comes to chips
Speaker 17: for mobile phones, and that could be a way in there.
Speaker 16: More broadly, when we look at this trip and.
Speaker 17: Its agenda, though, Caro, it's interesting that we see the
Speaker 17: White House Science and Technology Policy Advisor Michael Kratzio's there,
Speaker 17: and this could signal that AI and discussions around the
Speaker 17: technology will be really front and Center. We could see
Speaker 17: the US raise concerns about the practice of distillation that
Speaker 17: we have seen where AI models are unfairly extracted, and
Speaker 17: also a working group created to discuss.
Speaker 4: AI Mike Shepherd across all the latest coming between those
Speaker 4: key talks in Beijing at the moment.
Speaker 5: We appreciate you running it.
Speaker 4: Up, but that does it for this edition of bloom
Speaker 4: Bag Tech. Right here from San Francisco. We've got to
Speaker 4: get back to that breaking news that you helped break
Speaker 4: in earlier this hour. Talk us through why ARM was
Speaker 4: potentially looking to buy Cerebras.
Speaker 3: Yeah, ARM and SoftBank tried to buy Cerebras, Sobria said no,
Speaker 3: they will go public tomorrow. But Cerebris makes supercomputers at
Speaker 3: scale for inference, and that's where the AI story is
Speaker 3: right now. That, of course, all according to Bloomberg sources.
Speaker 3: Recap that story and many others on the podcast. You
Speaker 3: know where to find it, Apple, Spotify, iHeart and all
Speaker 3: of the Bloomberg platforms.
Speaker 2: This is Bloomberg Tech