WEBVTT - Nvidia Investors Wait for Signals of Growth in Earnings 0:00:02.520 --> 0:00:13.400 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.440 --> 0:00:17.239 from coast to coast with Caroline Hide in New York 0:00:17.520 --> 0:00:20.720 and ever Low in San Francisco. 0:00:22.160 --> 0:00:25.200 This is Bloomberg Tech coming up. All eyes on in 0:00:25.280 --> 0:00:27.760 video as a chip maker reports sarnings after the closing bell. 0:00:28.000 --> 0:00:31.560 What to expect from the world's most Valuable company? Throughout 0:00:31.640 --> 0:00:35.480 this hour, plus SpaceX's Starship hits a major milestone after 0:00:35.479 --> 0:00:39.320 deploying satellites in space for the first time. An IBM 0:00:39.479 --> 0:00:43.639 and AMD partner up to develop quantum centric supercomputing. We'll 0:00:43.680 --> 0:00:46.839 discussed with IBM's Quantum VP, but first we check in 0:00:46.840 --> 0:00:49.080 on these markets, and actually we just check in the 0:00:49.080 --> 0:00:51.720 world's most valuable company. We check in one that dominates 0:00:51.760 --> 0:00:53.600 the SMP to the tune of eight percent. I'm looking 0:00:53.720 --> 0:00:55.760 at a ten percent higher for InVideo. 0:00:55.880 --> 0:00:56.880 We are just one. 0:00:56.680 --> 0:00:59.560 Percentage point away from a new record high for this company. 0:00:59.560 --> 0:01:02.400 Will it get there after the closing bell, after the 0:01:02.440 --> 0:01:05.240 market shut In that post hours movement, we could see 0:01:05.240 --> 0:01:08.759 whitsh lash of up to six percent either direction, according 0:01:08.800 --> 0:01:11.360 to the options market. I'm looking at the waitings because 0:01:11.400 --> 0:01:13.120 this is why we focus on this company and this 0:01:13.200 --> 0:01:15.960 is why it's basically our super Bowl today. Eight percent 0:01:16.000 --> 0:01:17.880 of the s and P five hundred, we are twenty 0:01:17.920 --> 0:01:20.360 four percent of the tech sector within that SMP. Then 0:01:20.400 --> 0:01:22.480 aw's that one hundred now we're seeing in video make 0:01:22.600 --> 0:01:24.679 up ten percent of the waiting. 0:01:25.480 --> 0:01:27.480 And so therefore we go to a man. 0:01:27.400 --> 0:01:29.840 That has covered this stock before you and I could 0:01:29.880 --> 0:01:32.360 pronounce in video properly. It is the one and only 0:01:32.400 --> 0:01:35.280 in King, it's your super Bowl tonight. Ian And just 0:01:35.640 --> 0:01:39.600 so many questions remain about the forecast. It feels that 0:01:39.680 --> 0:01:42.840 there is where the guide is going to be keenly watched. 0:01:44.000 --> 0:01:48.840 Yeah, now that's absolutely true. I mean historically in video 0:01:49.160 --> 0:01:53.160 doesn't just have to beat on this forecast and project 0:01:53.360 --> 0:01:55.720 a rosy future, it has to blow past it and 0:01:55.760 --> 0:01:59.080 give Wall Street the sense that this never ending surge 0:01:59.120 --> 0:02:05.080 is coming. As we've seen with Carmen's story, things are 0:02:05.160 --> 0:02:07.400 very unclear this time. We really don't know how much 0:02:07.520 --> 0:02:10.240 China is going to be in that forecast, how much 0:02:10.639 --> 0:02:12.960 China can be in that forecast, And that's really the 0:02:12.960 --> 0:02:14.280 wildcard this time. 0:02:14.240 --> 0:02:16.120 And is we're going to have to hear from Jensen 0:02:16.240 --> 0:02:18.760 not only about H twenty but where he guies in 0:02:18.800 --> 0:02:21.239 terms of a B thirty, the latest development of the 0:02:21.360 --> 0:02:24.400 Blackwell architecture that maybe gets signed off to be sold 0:02:24.440 --> 0:02:24.880 to China. 0:02:25.280 --> 0:02:28.720 But more broadly, are we hearing enough. 0:02:28.639 --> 0:02:31.640 From the hyperscalers that the commitment is then we were 0:02:31.800 --> 0:02:35.079 expecting what fifty percent growth in revenue for this fiscal quarter. 0:02:35.520 --> 0:02:37.320 It's got to slow down at some point in. 0:02:39.080 --> 0:02:41.240 You you would think so, But then you look at 0:02:41.240 --> 0:02:43.320 the numbers and you look at the growth rate that 0:02:43.480 --> 0:02:46.360 has been sustained. I mean as a percentage. Of course 0:02:46.400 --> 0:02:48.919 it's slowing. It's going from above sixty percent to about 0:02:48.919 --> 0:02:52.400 fifty percent, but fifty percent at an enormously high level. 0:02:53.160 --> 0:02:55.480 This is a company that's on course to become what 0:02:55.720 --> 0:03:00.360 a third of total semi conductor sales worldwide. So you know, 0:03:00.800 --> 0:03:03.600 you pick your numbers and you can tell a story, 0:03:03.639 --> 0:03:08.040 but every story is incredible. At this point, Yes, by 0:03:08.080 --> 0:03:11.440 any measure, numbers have to slow down. These growth rates 0:03:11.480 --> 0:03:15.280 are not sustainable, but the numbers are still huge, with 0:03:15.400 --> 0:03:17.840 twenty billion dollars up probably from where we were a 0:03:17.919 --> 0:03:20.840 year ago on the forecast quarter cell and when. 0:03:20.760 --> 0:03:22.880 We think about that as hyperscalers, they are about forty 0:03:22.880 --> 0:03:25.880 percent of demand. How much does Jensen one once again 0:03:25.960 --> 0:03:29.000 have to guide the market. Then they will dominate not 0:03:29.080 --> 0:03:31.760 only in the training of data, but in the inference 0:03:31.800 --> 0:03:33.560 the use of that data going forward. 0:03:34.240 --> 0:03:37.160 Yeah, now that's a very good point. I mean, Hyperscalers 0:03:37.160 --> 0:03:40.400 have been around half of its data center sales for 0:03:40.520 --> 0:03:45.200 a long time, trending slightly higher if anything. What would 0:03:45.440 --> 0:03:48.200 really really please investors if that number went down, because 0:03:48.200 --> 0:03:50.840 that would prove that AI and the use of AI 0:03:50.960 --> 0:03:54.360 and the deployment of AI systems is spreading out, spreading 0:03:54.360 --> 0:03:57.560 out across the economy, getting into all of these other industries, 0:03:57.560 --> 0:04:00.000 and not just the kind of pet project for Microsoft 0:04:00.080 --> 0:04:03.080 often Amazon. That would be a really strong sign if 0:04:03.120 --> 0:04:04.560 they could deliver something like that today. 0:04:04.600 --> 0:04:06.320 I have a feeling sovereign AI is going to be 0:04:06.400 --> 0:04:09.240 on your Bingo card. Two in King, we thank you 0:04:09.280 --> 0:04:12.080 as always as we prep ourselves for after the closing bell. 0:04:12.160 --> 0:04:15.080 Who else is prepping ourself? Fionness in Culta Senior Analystic 0:04:15.160 --> 0:04:19.560 City Index, Financial Markets and remind us and the perspective 0:04:19.600 --> 0:04:23.320 here it is so dominant for the rest of the market. Yes, 0:04:23.360 --> 0:04:25.040 we might get a big swing and in video up 0:04:25.040 --> 0:04:27.760 to six percent after hours, but it's important for the 0:04:27.800 --> 0:04:28.719 other AI names. 0:04:30.200 --> 0:04:33.120 Yes, completely, and I would even go beyond that and say, 0:04:33.160 --> 0:04:35.720 it's not just AI names. This this is the stop 0:04:36.040 --> 0:04:39.680 that because it dominates and because it is such the 0:04:39.720 --> 0:04:43.360 litmus test for AI, but actually it has the ability 0:04:43.600 --> 0:04:47.440 to hit sentiment more broadly. You know, it's such a 0:04:47.520 --> 0:04:50.599 large component of the S and P five hundred. We've 0:04:50.640 --> 0:04:54.120 obviously seen a little bit of caution actually as we've 0:04:54.160 --> 0:04:56.400 been sort of coming into these results. Know, there was 0:04:56.400 --> 0:05:01.119 that MIT report that just raised some questions about profitability, 0:05:01.200 --> 0:05:04.120 revenue growth surrounding sort of ninety five percent of AI 0:05:04.240 --> 0:05:07.480 project and that did cause the market just to question, 0:05:07.640 --> 0:05:10.120 you know, should we be up at these levels for 0:05:10.400 --> 0:05:13.320 AI stocks? And I think you know, that's why there 0:05:13.440 --> 0:05:17.159 is such a massive focus on this these results, you know, 0:05:17.240 --> 0:05:20.040 not only just with what Nvidia are doing, but what 0:05:20.080 --> 0:05:23.159 it does mean for the broader AI trade and tech 0:05:23.760 --> 0:05:24.359 more broadly. 0:05:25.040 --> 0:05:28.279 Remind us and videos one percentage point off a record 0:05:28.360 --> 0:05:32.280 high four point four trillion dollar market capitalization, how much 0:05:32.440 --> 0:05:34.920 positive sentiment is in the rest of the space, even 0:05:34.960 --> 0:05:36.799 after last week's big sell. 0:05:36.600 --> 0:05:40.320 Off in names such as Palenter. Yeah, you know, it's 0:05:40.360 --> 0:05:40.919 really interesting. 0:05:41.000 --> 0:05:44.160 I mean, obviously there is a lot of growth expectations 0:05:44.200 --> 0:05:48.960 which are priced into these levels. We've talked about, you know, 0:05:49.080 --> 0:05:53.479 forward guidance being the key figure to be watching in 0:05:53.520 --> 0:05:56.159 these results, and that's just so that the market can 0:05:56.240 --> 0:06:00.159 feel comfortable that the lofty levels we're trading at are 0:06:00.160 --> 0:06:04.800 indeed supported by some sort of fundamental But I think 0:06:04.839 --> 0:06:07.800 you know, the fact is we are expecting potentially a 0:06:07.880 --> 0:06:10.040 beat from Nvidia. 0:06:10.120 --> 0:06:12.880 The question is by how much, you know, what will 0:06:12.920 --> 0:06:14.400 that forward guidance be looking like? 0:06:14.600 --> 0:06:17.680 Will we continue to see that level of strong growth 0:06:17.720 --> 0:06:20.040 that we have seen. That's what the market wants to see. 0:06:20.120 --> 0:06:23.359 That's what investors want to see in order to remain 0:06:23.560 --> 0:06:26.320 upbeat about this trade. I mean, I do think longer 0:06:26.440 --> 0:06:29.880 term strategically, we know that AI is a solid trade. 0:06:30.000 --> 0:06:32.640 But near term we have seen that caution set in 0:06:33.000 --> 0:06:35.480 just as far as sentiment is concerned, obviously, as far 0:06:35.520 --> 0:06:40.719 as geopolitical events are concerned and factored, and then also 0:06:40.880 --> 0:06:43.839 as far as that sort of flower model growth rollout 0:06:43.920 --> 0:06:46.200 might be concerned as well. So lots to be watching 0:06:46.200 --> 0:06:46.440 out for. 0:06:46.800 --> 0:06:49.200 Yeah, can you break down for us a little bit 0:06:49.360 --> 0:06:52.040 just from the sentiment that you get from your own clients, 0:06:52.320 --> 0:06:55.200 but more broady, how many people are long only and 0:06:55.279 --> 0:06:59.200 long term committed to this company or how many people 0:06:59.240 --> 0:07:02.360 are on the edges just training it and could see 0:07:02.400 --> 0:07:03.800 therefore volatility in the name. 0:07:05.160 --> 0:07:07.760 Yeah, So, I mean, this is by far our most 0:07:07.800 --> 0:07:14.360 popular equity within our business. We've seen that the vast 0:07:14.440 --> 0:07:18.280 majority of clients are long on in the video and 0:07:18.600 --> 0:07:21.000 we do see that you know, there is this longer 0:07:21.120 --> 0:07:24.520 term sense towards the stock as well, that is something 0:07:24.560 --> 0:07:27.200 in there. But you also do see a lot of 0:07:27.240 --> 0:07:30.600 the attempts to trade on that volatility. But you know, 0:07:30.680 --> 0:07:33.440 our clients are very keen on this. This is this 0:07:33.560 --> 0:07:37.280 is often the busiest day for one of the busiest days, 0:07:37.280 --> 0:07:39.000 and we do find that tomorrow there will be a 0:07:39.000 --> 0:07:42.480 lot of conversation and sort of breaking down and unpacking 0:07:42.600 --> 0:07:44.760 what the results have been telling us as well. So 0:07:45.400 --> 0:07:47.320 but you know, we do see that this is one 0:07:47.360 --> 0:07:49.640 of those rare stocks that we do see both the 0:07:50.000 --> 0:07:53.760 longer position holding as well as the intra day volatility 0:07:53.840 --> 0:07:55.360 gets the day traders as well. 0:07:55.400 --> 0:07:57.720 And it's just so streets ahead of the competition in 0:07:57.800 --> 0:08:00.880 terms of just market capitalization. I mean, is the only 0:08:00.920 --> 0:08:03.560 other chip maker out there that's above a trillion dollars 0:08:03.640 --> 0:08:05.600 When you think about AMD, it has but a quarter 0:08:05.640 --> 0:08:08.400 of a trillion in terms of market capitalization compared to 0:08:08.480 --> 0:08:11.080 in videos. And we're not even going to talk about intels, 0:08:11.120 --> 0:08:14.320 but fon have you seen any of your clients trying 0:08:14.320 --> 0:08:16.800 to hedge this? How have they been able to think 0:08:16.800 --> 0:08:19.600 about owning and being long in video and protecting themselves 0:08:19.600 --> 0:08:20.440 from any downside? 0:08:21.960 --> 0:08:24.680 Yeah, you know, it's actually quite difficult to be able 0:08:24.720 --> 0:08:27.520 to sort of bring together a pure hedge on this 0:08:27.760 --> 0:08:31.320 given the dominance that we do see in n video. 0:08:31.640 --> 0:08:33.560 As you pointed out, you know, you can do some 0:08:33.679 --> 0:08:38.240 hedging surrounding some competitors. Also, if you can get hold 0:08:38.280 --> 0:08:41.920 of those AI indiceeds, then that could also work as 0:08:41.960 --> 0:08:44.680 a hedge. But I think broadly speaking, it is quite 0:08:44.720 --> 0:08:51.240 difficult to be well hedged in against the upside in nvidea, 0:08:51.600 --> 0:08:54.120 just because, as you said, it just really is a 0:08:54.160 --> 0:08:57.440 streak the head of competition and it doesn't seem to 0:08:57.480 --> 0:09:01.040 be anyone really on its heels just yet. Obviously, we 0:09:01.160 --> 0:09:03.280 had those concerns at the beginning of the year about 0:09:03.440 --> 0:09:07.840 deep deep seek, but that hasn't really rolled that into 0:09:07.880 --> 0:09:12.200 something too dangerous as far as competition is concerned just yet. 0:09:12.280 --> 0:09:14.240 That's not to say it's not down their own, but 0:09:14.360 --> 0:09:16.240 just for now, it doesn't feel like there's too much 0:09:16.240 --> 0:09:18.440 snapping on end videos heels. 0:09:18.520 --> 0:09:20.800 I mean, it is an interesting camera con technologies, it's 0:09:20.800 --> 0:09:25.640 a Chinese name, it's an AI accelerated developer themselves making trips, 0:09:25.679 --> 0:09:29.959 and like Huaweis, they had phenomenal growth in their profitability. 0:09:30.080 --> 0:09:32.200 I mean, it has a much smaller market capitalization. But 0:09:32.559 --> 0:09:34.480 just going back to what we're discussing with Ian and 0:09:34.520 --> 0:09:38.160 their overhang of China, how important is that to you 0:09:38.320 --> 0:09:41.360 and the clients to hear about the future growth trajectory there. 0:09:42.880 --> 0:09:44.760 That's very important. 0:09:44.920 --> 0:09:47.880 I think, you know, we can't sort of diminish how 0:09:47.920 --> 0:09:50.040 important that will be. That's going to be a key 0:09:50.080 --> 0:09:52.480 area that we'll be watching out for because it does 0:09:52.600 --> 0:09:56.200 remain a key risk and obviously that can then affect 0:09:56.480 --> 0:10:00.520 the valuation, it can affect what the growth outlook en 0:10:00.640 --> 0:10:03.920 video is. So I think that is definitely going to 0:10:03.960 --> 0:10:06.440 be one of the key factors that we'll be watching 0:10:06.559 --> 0:10:10.800 as it does present itself as a potential to really 0:10:10.840 --> 0:10:14.560 weigh or limit the upside as far as and videos 0:10:14.840 --> 0:10:16.360 potential growth is concerned. 0:10:17.440 --> 0:10:20.920 When you're thinking about in video and the other industry groups, 0:10:20.960 --> 0:10:23.480 A SINGULFS I mean, you're just saying what the limiting 0:10:23.520 --> 0:10:25.640 factor actually for many is power. 0:10:26.120 --> 0:10:28.040 And I'm wondering how many of. 0:10:27.840 --> 0:10:30.760 Your clients are looking at in video and feeling at 0:10:30.840 --> 0:10:33.240 this level they can't get in, or are they and 0:10:33.280 --> 0:10:36.360 therefore looking to spread and diversify, or are still people 0:10:36.480 --> 0:10:39.200 very committed to buying in even at a four point 0:10:39.200 --> 0:10:40.560 four trillion dollar market cap. 0:10:42.000 --> 0:10:44.199 Yeah, do you know there is still demand out there. 0:10:44.240 --> 0:10:47.280 We're still seeing demand out there, and despite the fact 0:10:47.360 --> 0:10:51.120 that we are trading at you know, really impressive levels, 0:10:51.600 --> 0:10:54.040 but I do think we still still have this idea 0:10:54.120 --> 0:10:57.240 of the concept that this idea of the AI trade 0:10:58.040 --> 0:11:02.040 spreading out and diversify. You know, we've noticed that obviously 0:11:02.840 --> 0:11:05.679 Nvidia has been the stand up performer here, but we 0:11:05.720 --> 0:11:08.439 are seeing that we've there have been sort of a 0:11:08.559 --> 0:11:12.040 strong growth in other areas as well. We've seen the 0:11:12.080 --> 0:11:15.720 rest of the AI stocks have performed well across the year, 0:11:16.320 --> 0:11:18.920 and I think there is potential for those two continue 0:11:18.920 --> 0:11:22.360 performing well on the back of upbeat results from Nvidio. 0:11:22.440 --> 0:11:24.800 So again we keep coming back to that idea. 0:11:25.080 --> 0:11:27.640 You know, if Nvidia does well, then we see that 0:11:27.679 --> 0:11:30.800 trickle back down into the rest of that AI trade. 0:11:31.000 --> 0:11:33.200 If it doesn't, if we see a slight disappointment on 0:11:33.240 --> 0:11:36.360 that forward guidance, then potentially we could see that really 0:11:36.400 --> 0:11:39.600 reflecting badly on those other AI stocks as well. 0:11:40.320 --> 0:11:43.480 So yeah, that's all we're watching out for our hinges. 0:11:43.800 --> 0:11:46.520 On four pm this evening, we thank you Fonesesenkotta from 0:11:46.559 --> 0:11:50.959 city Inex Financial Markets. Now coming up, SpaceX launches it's 0:11:51.000 --> 0:11:54.080 ten test flights successfully up the days at Las. 0:11:54.120 --> 0:11:56.520 More on that. Next, there's a BLUEBG. 0:11:56.120 --> 0:12:05.120 Tech poverage. 0:12:12.240 --> 0:12:14.240 Time now for Talking Tech and first up. 0:12:14.360 --> 0:12:18.320 Chinese food delivery company Maijwan was of huge losses this 0:12:18.400 --> 0:12:21.440 quarter due to a fierce price war with rivals. 0:12:21.120 --> 0:12:22.480 Ali Baba and JD dot Com. 0:12:22.520 --> 0:12:25.679 Now the company issued a dire prediction, citing quote irrational 0:12:25.679 --> 0:12:28.520 competition that wiped out its profit in the June quarter, 0:12:28.600 --> 0:12:33.080 with net income plumenting ninety seven percent plus Chinese AI 0:12:33.160 --> 0:12:35.440 chip designer Camera con Technologies when. 0:12:35.320 --> 0:12:37.640 It swung to a record profit in the first half. 0:12:37.800 --> 0:12:41.319 The results reflect an increasing shift to employed domestic chip alternatives, 0:12:41.559 --> 0:12:44.839 encouraged to cause by Beijing citing US security concerns and 0:12:44.960 --> 0:12:49.160 export curb uncertainty, and Apple plans to hold its big 0:12:49.240 --> 0:12:51.880 full product launch on September the ninth, when the company 0:12:51.920 --> 0:12:55.160 is expected to introduce an iPhone seventeen lineup that includes 0:12:55.200 --> 0:12:58.000 a new, skinnier version of the signature device. Now, the 0:12:58.000 --> 0:13:01.840 events tagline is are dropping according to an invitation posted 0:13:01.920 --> 0:13:06.160 online and sent to the media, and it will stream online. Now, 0:13:06.160 --> 0:13:09.760 another company that we're watching, privately held SpaceX. It is 0:13:09.840 --> 0:13:14.160 successfully launched its tenth Starship rocket test flight last night 0:13:14.440 --> 0:13:17.040 and in a major milestone, it carried and deployed Starlink 0:13:17.040 --> 0:13:19.800 satellites in space for the first time. This comes after 0:13:19.800 --> 0:13:22.599 a year not with pretty explosive setbacks. 0:13:22.760 --> 0:13:23.240 Punnemberg. 0:13:23.280 --> 0:13:26.400 Space reporter Lauren Grush joins us now and just how 0:13:26.440 --> 0:13:29.480 important was it that these satellites in particular were deployed. 0:13:30.840 --> 0:13:32.920 Well, I would say this was the exact kind of 0:13:33.040 --> 0:13:36.400 test flight that SpaceX really needed to achieve after that 0:13:36.480 --> 0:13:41.040 volatile year you explained. But deployed satellites is important because 0:13:41.080 --> 0:13:43.880 that's kind of one of the key objectives for Starship. 0:13:43.920 --> 0:13:46.839 When it becomes operational, it's supposed to launch the much 0:13:46.960 --> 0:13:51.200 larger Starlink Internet satellites that SpaceX is building and optimized 0:13:51.240 --> 0:13:54.640 for the specific size spacecraft. So the fact that it 0:13:54.679 --> 0:13:57.160 was able to demonstrate that shows that they're one step 0:13:57.200 --> 0:14:00.319 closer to actually using this vehicle as a launch vele 0:14:00.360 --> 0:14:01.960 that can put satellites intour of it. 0:14:02.280 --> 0:14:03.199 Beautiful shots. 0:14:03.480 --> 0:14:07.160 But they rounded it out as an overall success. But 0:14:07.280 --> 0:14:09.680 not everything was too peachy, Right, What else did they 0:14:09.800 --> 0:14:11.760 learn from the re entry in particular? 0:14:12.679 --> 0:14:16.200 Right, that re entry portion is still very difficult for 0:14:16.280 --> 0:14:18.600 them to perfect, but you know, that is what they're 0:14:18.600 --> 0:14:20.960 trying to do. They're trying to do something that nobody 0:14:20.960 --> 0:14:25.080 else has done, which has create a fully reusable vehicle. 0:14:25.400 --> 0:14:27.320 And so what they're trying to see is if they 0:14:27.320 --> 0:14:31.560 can bring the starship back without it disintegrating. Of course, 0:14:31.880 --> 0:14:34.840 there were some chunks of the vehicle that broke away 0:14:34.920 --> 0:14:37.320 during that re entry, but it just goes to show 0:14:37.320 --> 0:14:39.000 that they have a little bit more to learn and 0:14:39.160 --> 0:14:43.440 making that reusable orbital heat shield up to snuff and 0:14:43.440 --> 0:14:44.400 the way that they need it. 0:14:45.240 --> 0:14:48.040 They say time and time again that sort of failure 0:14:48.120 --> 0:14:50.560 is the learning process here, but they had had a 0:14:50.640 --> 0:14:52.320 run up of failures in the years. This was a 0:14:52.400 --> 0:14:55.640 key test. Just remind us how this goes forward to 0:14:56.080 --> 0:14:58.920 replace Fulcon nine, because already they've won big contract with 0:14:59.000 --> 0:15:01.360 NASA to use this right. 0:15:01.480 --> 0:15:04.440 I mean SpaceX has basically put all of its eggs 0:15:04.440 --> 0:15:08.240 in the starship basket. It's supposed to eventually replace their 0:15:08.280 --> 0:15:11.520 workhorse rocket, as you mentioned, the Falcon nine, but it 0:15:11.560 --> 0:15:12.680 also has a lot of. 0:15:12.680 --> 0:15:13.920 Other tasks to do. 0:15:14.080 --> 0:15:18.240 It's designed to eventually take humans and cargo to deep 0:15:18.240 --> 0:15:21.520 space destinations like the Moon and of course Mars to 0:15:21.560 --> 0:15:25.280 start that settlement that CEO Elon Musk has always dreamed of. 0:15:25.280 --> 0:15:27.840 Of course, there's still quite a lot to do before 0:15:28.400 --> 0:15:30.080 that reality can be achieved. 0:15:30.560 --> 0:15:30.760 You know. 0:15:30.840 --> 0:15:32.520 One of the big things is that they'll have to 0:15:32.600 --> 0:15:37.320 demonstrate in space orbital refueling at a scale that no 0:15:37.360 --> 0:15:40.520 one has ever achieved before, and so they mentioned that 0:15:40.520 --> 0:15:43.720 they hope to demonstrate that as soon as next year. 0:15:44.080 --> 0:15:46.280 But that's going to be a really big part of 0:15:46.360 --> 0:15:49.720 actually unlocking this vehicle and making it the deep space 0:15:49.840 --> 0:15:51.480 vehicle that they advertise it to be. 0:15:52.200 --> 0:15:55.120 We most long and grush on all things SpaceX. We 0:15:55.160 --> 0:16:03.640 so appreciate it. Thank you much. IBM and AMD where 0:16:03.640 --> 0:16:06.920 they've announced a partnership to develop the next generation of 0:16:06.960 --> 0:16:10.120 computing architectures. IBM shares were up following the news that 0:16:10.160 --> 0:16:10.960 came out yesterday. 0:16:11.200 --> 0:16:12.360 Please to welcome to the show. 0:16:12.480 --> 0:16:15.880 It's VP of Quantum Ja Gambetta, and the next generation 0:16:15.960 --> 0:16:19.760 of computing architecture is bringing together supercomputing and quantum. 0:16:19.800 --> 0:16:21.160 What does this partnership. 0:16:20.680 --> 0:16:23.400 Bring Jay, Yeah, this is well first, thanks for having 0:16:23.440 --> 0:16:26.840 me here. What's really exciting is we are actually getting 0:16:26.880 --> 0:16:29.840 to the point where quantum computers are getting to become 0:16:29.920 --> 0:16:32.800 like almost a first class citizen in the future of computing. 0:16:33.120 --> 0:16:37.200 And so this partnership is bringing AMD, which builds really 0:16:37.560 --> 0:16:42.600 high performance, excellent GPUs, our leading quantum devices, and really 0:16:42.640 --> 0:16:45.520 starting to bring this fabric together. We want to create 0:16:45.880 --> 0:16:49.240 this future of computing that allows us to run things 0:16:49.240 --> 0:16:53.080 on quantum or run things on GPUs and really push 0:16:53.680 --> 0:16:55.160 computation to the next level. 0:16:55.320 --> 0:16:56.640 So that hybrid approach. 0:16:56.920 --> 0:16:59.600 It almost makes me think of the new GBT five 0:16:59.600 --> 0:17:01.480 model in terms, and they will use the right model 0:17:01.520 --> 0:17:03.760 for the right question. Is this kind of way you're 0:17:03.760 --> 0:17:05.840 doing it? If it can be solved with supercomputing, you 0:17:05.880 --> 0:17:08.040 go that way. Otherwise it goes to quantum. How will 0:17:08.040 --> 0:17:08.720 this function? 0:17:09.400 --> 0:17:10.320 That's exactly right. 0:17:10.400 --> 0:17:12.760 So a lot of people think quantum computers will replace 0:17:13.080 --> 0:17:16.680 classical computers. We've never had that view. We actually think 0:17:16.760 --> 0:17:20.640 quantum brings this unique ability to look at certain problems 0:17:20.640 --> 0:17:23.040 a little bit different. And now if you mix this 0:17:23.200 --> 0:17:26.240 and make it so that it works with HBC AI, 0:17:26.720 --> 0:17:30.320 you really can start to bring many different forms of 0:17:30.359 --> 0:17:32.680 computing together and really advance. 0:17:32.400 --> 0:17:33.160 What is possible. 0:17:33.520 --> 0:17:36.880 Okay, so make it tangible for our audience, because they've 0:17:37.200 --> 0:17:40.120 always seen the promise of quantum. You're saying, now it's 0:17:40.119 --> 0:17:44.480 a first class citizen in perhaps driving forward medical use, 0:17:44.600 --> 0:17:49.159 thinking about the future of finance or algorithms. But what 0:17:49.280 --> 0:17:51.840 precisely do you think that this hybrid will offer. 0:17:52.480 --> 0:17:55.960 So it's a great question, and we've got to get 0:17:56.000 --> 0:17:59.720 to the point where quantum is really getting us beyond 0:18:00.119 --> 0:18:02.119 we can do with classical which we think will happen 0:18:02.119 --> 0:18:03.879 in the next year or so. But we're getting at 0:18:03.880 --> 0:18:06.719 a point where it's allowing us to look at things 0:18:06.920 --> 0:18:09.080 in a different way. To give you an example, take 0:18:09.600 --> 0:18:13.360 a hard problem I don't know, solving and designing drugs. 0:18:13.560 --> 0:18:15.720 You can spend a lot of money to model it. 0:18:16.000 --> 0:18:18.800 You can spend ten years of research. Imagine a future 0:18:18.800 --> 0:18:21.600 where you could have AI scanning vast amounts of data, 0:18:22.280 --> 0:18:26.360 HBC or GPUs processing crunching that data, and then quantum 0:18:26.600 --> 0:18:29.840 simulating the quantum physics at an accuracy we were never 0:18:29.920 --> 0:18:32.639 able to do before. Now you put all this together, 0:18:32.880 --> 0:18:36.959 you can start to imagine workflows that go beyond just 0:18:37.840 --> 0:18:41.959 AI or HPC or quantum and creating this we call 0:18:42.000 --> 0:18:45.320 it quantum centric supercomputing, but essentially this new fabric that 0:18:45.359 --> 0:18:45.920 allows you. 0:18:45.920 --> 0:18:46.359 To do that. 0:18:46.680 --> 0:18:50.200 So what's quantum doing. It's giving you accuracy for problems 0:18:50.200 --> 0:18:52.160 that we didn't have that accuracy before. 0:18:53.040 --> 0:18:55.760 I'm going to ask a sensitive question, but why IMD 0:18:56.280 --> 0:18:59.560 because Video's got quantum accelerator computing as well. 0:19:00.320 --> 0:19:04.000 Honestly, we are creating this future, and anyone that shares 0:19:04.000 --> 0:19:06.679 a vision and we're the same as US that is 0:19:07.040 --> 0:19:11.840 towards this future that has quantum working with classical we're 0:19:11.840 --> 0:19:15.359 happy to partner with. So we've got this partnership with 0:19:15.400 --> 0:19:17.520 AMD that has got two parts of it. One is 0:19:17.600 --> 0:19:20.760 making our quantum computers better. The second is bringing these 0:19:20.920 --> 0:19:23.719 accelerators working to it. But as we go forward, we 0:19:23.760 --> 0:19:26.919 have partners with the national labs or all around the world. 0:19:27.160 --> 0:19:30.359 But we want to show that this future is not 0:19:30.520 --> 0:19:33.800 just words, it's actually real. So anyone that shares the 0:19:33.840 --> 0:19:35.159 same view, we're happy to partner. 0:19:35.160 --> 0:19:38.040 So Jensen could come and say me too, please, I'm 0:19:38.080 --> 0:19:42.240 happy too. I'm interested in what the limiting factor is now, 0:19:42.320 --> 0:19:46.280 because it's often been about sort of fault tolerant quantum computing. 0:19:46.760 --> 0:19:48.520 Is that what you need to get to You sort 0:19:48.520 --> 0:19:49.440 of promised us that by. 0:19:49.359 --> 0:19:50.200 Twenty twenty nine. 0:19:50.400 --> 0:19:53.840 Yes, so think of two sides of it. By twenty 0:19:53.920 --> 0:19:56.520 twenty nine, we want to have a fault tolerant quanta computer. 0:19:57.160 --> 0:19:59.720 And what we've learned through all the hard science and 0:19:59.760 --> 0:20:03.200 energy neering is we need classical computers to make that possible. 0:20:03.400 --> 0:20:06.040 They've got to do the we call it decoding, but 0:20:06.160 --> 0:20:08.919 essentially removing the effects of errors. So part of this 0:20:08.960 --> 0:20:12.439 partnership is how do we actually use classical computers to 0:20:12.440 --> 0:20:15.320 make quantum computers better. And then at the same time, 0:20:15.640 --> 0:20:18.119 we really have to show the value of quantum computers 0:20:18.440 --> 0:20:20.879 and we have to solve them for interesting problems. So 0:20:20.960 --> 0:20:24.879 now we need quantum computers working with classical computers in 0:20:24.920 --> 0:20:29.800 this quantum centric supercomputing hybrid approach to really bring forward 0:20:29.880 --> 0:20:33.040 early applications so that we can actually start to see 0:20:33.640 --> 0:20:39.119 for whether it's in finance optimization, whether it's in simulating materials, 0:20:39.240 --> 0:20:40.919 we can start to see this value happen. 0:20:41.359 --> 0:20:43.320 What's interesting is we like to sort of pit the 0:20:43.400 --> 0:20:47.720