WEBVTT - David Sacks On a US Bitcoin Reserve, HPE's Weaker Year 0:00:00.920 --> 0:00:05.160 From the heart of where innovation, money and power collide 0:00:05.480 --> 0:00:10.760 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:13.440 Caroline Hyde and Ed Ludlow. 0:00:27.320 --> 0:00:30.520 Live from New York and Caroline Hyde and I'm Jackie 0:00:30.560 --> 0:00:31.640 Devalas in Washington. 0:00:31.800 --> 0:00:33.800 This is Bloomberg Technology coming up. 0:00:33.840 --> 0:00:37.240 Crypto leaders flock to DC for the White House's Crypto Summit. 0:00:37.600 --> 0:00:41.120 Missus Trump signs his Bitcoin Reserve Executive Order White House 0:00:41.159 --> 0:00:45.280 AI and cryptozar David Sachs joins us to discuss plus 0:00:45.320 --> 0:00:48.280 AI spending still going strong. Broadcom shares rise after the 0:00:48.280 --> 0:00:52.280 company gave an upbeat forecast, with AI demanding key driver 0:00:52.400 --> 0:00:56.040 in its first quarter, and Hpe also out with earnings, 0:00:56.080 --> 0:00:58.440 but they send ches tumbling as profits a road in 0:00:58.520 --> 0:01:01.680 part due to tariffs with the CEO Antonio Nary but 0:01:01.760 --> 0:01:05.800 first breaking news but moments ago. Russia is willing to 0:01:05.920 --> 0:01:09.880 discuss a potential truth with Ukraine, but it is with conditions, 0:01:10.120 --> 0:01:13.440 willing to discuss a temporary truce if those progress towards 0:01:13.440 --> 0:01:15.839 a final peace settlement. Let's get straight out to Kaylee lines, 0:01:16.080 --> 0:01:17.039 what's the nuance here? 0:01:17.840 --> 0:01:20.720 Well, Caroline Bloomberg did just break the story, citing sources 0:01:20.720 --> 0:01:22.600 familiar with the matter, but I would point out that 0:01:22.640 --> 0:01:25.360 this is something that Russia apparently presented to the US 0:01:25.360 --> 0:01:28.560 at talks in Saudi Arabia that happened last month, a 0:01:28.600 --> 0:01:31.120 suggestion that yes, they are willing to agree to a 0:01:31.200 --> 0:01:33.920 temporary truce, provided that there is an effort toward a 0:01:34.000 --> 0:01:37.119 peace deal that Russia like. Specifically, what Russia has asked 0:01:37.160 --> 0:01:39.080 to the United States is clear guidance on what the 0:01:39.120 --> 0:01:42.280 parameters of peace would look like, specifically what a peacekeeping 0:01:42.319 --> 0:01:44.400 mission in Ukraine would constitute. 0:01:44.440 --> 0:01:44.520 US. 0:01:44.560 --> 0:01:48.639 Russia has rejected the presence of NATO troops on Ukrainian soil. 0:01:48.720 --> 0:01:51.600 That would be complicating for the idea that France and 0:01:51.760 --> 0:01:55.680 uk for example, would be providing troops for that peacekeeping mission, 0:01:55.760 --> 0:01:57.720 the so called Coalition of the Willing we have heard 0:01:57.760 --> 0:02:00.240 European leaders talking about in recent weeks. 0:02:00.280 --> 0:02:01.600 Russia does not like that idea. 0:02:01.600 --> 0:02:03.960 They would they'll be open to a country like China 0:02:04.000 --> 0:02:06.240 providing a peace keeping force. So it's unclear whether or 0:02:06.280 --> 0:02:09.280 not that is something Ukraine would agree to. We should 0:02:09.320 --> 0:02:11.000 keep in mind that this news is breaking as we 0:02:11.040 --> 0:02:14.200 are expecting next week senior US officials, including the Secretary 0:02:14.280 --> 0:02:17.639 of State Marco Rubio, the National Security Advisor Mike Waltz, 0:02:17.680 --> 0:02:20.640 as well as Special Envoy Steve Whitcoff to be meeting 0:02:20.639 --> 0:02:24.440 with There are Ukrainian counterparts in Saudi Arabia four additional 0:02:24.440 --> 0:02:27.679 talks toward pieces. The US is still continuing to push 0:02:27.760 --> 0:02:28.200 for a deal. 0:02:28.680 --> 0:02:31.280 Kae lines with a wrap, We thank you. Let's just 0:02:31.320 --> 0:02:33.440 take a quick look at the markets and reaction to this. 0:02:33.480 --> 0:02:36.400 They do bounce off of their lows. Nevertheless, we are 0:02:36.440 --> 0:02:38.240 having a torrid time and then as that one hundred 0:02:38.240 --> 0:02:40.920 to one point heading correction territory, we're down more than 0:02:40.960 --> 0:02:42.600 ten percent from previous highs. 0:02:43.000 --> 0:02:45.680 This is we see three straight weeks of. 0:02:45.639 --> 0:02:49.600 Declines for the tech benchmark, the longest losing streak since August. 0:02:49.840 --> 0:02:52.080 We're off by more than four percent over the last 0:02:52.120 --> 0:02:55.960 five training days. And this is anxiety grows regarding Chinese 0:02:56.000 --> 0:02:58.320 AI models. Well, that means for compute demand, what it 0:02:58.360 --> 0:03:02.120 means overall for me selling your winners into an economy 0:03:02.200 --> 0:03:03.560 that could potentially be. 0:03:03.560 --> 0:03:04.960 Slowing on the back of taris. 0:03:04.960 --> 0:03:06.680 Move on to what's happening in the world of crypto, though, 0:03:06.680 --> 0:03:08.480 because so much to delve into. 0:03:08.560 --> 0:03:09.840 When it comes to the. 0:03:09.840 --> 0:03:12.440 Latest executive order, we're off by one point eight percent 0:03:12.440 --> 0:03:14.360 on the day. We're at eighty eight thousand, but remember 0:03:14.560 --> 0:03:18.120 we're still well higher than the sixty seven thousand dollars 0:03:18.160 --> 0:03:21.359 level we were at when the presidential election occurred. 0:03:21.440 --> 0:03:23.320 All of this as many anticipate that. 0:03:23.240 --> 0:03:27.400 Such regulations will become more pro crypto, and we see 0:03:27.560 --> 0:03:31.240 that executive order signed last night with a reserve for bitcoin. 0:03:31.760 --> 0:03:35.120 We're now pleased to be welcoming to our TV and 0:03:35.200 --> 0:03:38.440 radio audiences around the world, someone who can dive into 0:03:38.480 --> 0:03:40.920 this exact executive order. We bring in the White House 0:03:40.960 --> 0:03:43.080 AI and cryptos are David Sachs. 0:03:43.280 --> 0:03:44.480 It's busy. You're about to. 0:03:44.400 --> 0:03:46.320 Expect yet more people coming to the White House from 0:03:46.360 --> 0:03:50.360 the cryptosphere. Remind the American public and investors why you 0:03:50.440 --> 0:03:51.800 need a bitcoin reserve at all? 0:03:53.160 --> 0:03:55.320 Well, good to be here, I mean, the reason why 0:03:55.360 --> 0:03:57.720 we need a bitcoin reserve is that the federal government 0:03:57.720 --> 0:04:01.160 already owns some. In fact, it obtained around four hundred 0:04:01.160 --> 0:04:04.800 thousand bitcoin over the past decade through criminal and civil 0:04:05.320 --> 0:04:09.440 forfeitures and seizures, and so the government has to have 0:04:09.480 --> 0:04:12.520 a strategy for how it deals with this. In the past, 0:04:12.640 --> 0:04:15.720 the strategy has been simply to sell it in an 0:04:15.760 --> 0:04:19.440 ad hoc way almost willy nilly, and that cost American 0:04:19.480 --> 0:04:21.120 taxpayer something like seventeen. 0:04:20.800 --> 0:04:22.359 Billion dollars in lost value. 0:04:22.600 --> 0:04:24.200 So we want to have a long term strategy to 0:04:24.200 --> 0:04:27.480 maximize the value these holdings. We've decided that that bitcoin 0:04:27.560 --> 0:04:30.920 is scarce, it's valuable, and that is strategic for the 0:04:31.000 --> 0:04:31.920 United States to hold on. 0:04:31.880 --> 0:04:33.599 To this as a long term reserve asset. 0:04:33.839 --> 0:04:36.000 So that's the plan with the two hundred thousand bitcoin 0:04:36.279 --> 0:04:39.279 that we believe are in the possession of the federal government. 0:04:39.320 --> 0:04:41.599 I say we believe because no one really knows for 0:04:41.640 --> 0:04:43.960 sure because we never had a proper audit. So that's 0:04:44.000 --> 0:04:46.080 one of the first things that this executive order provides 0:04:46.080 --> 0:04:48.320 that we're going to do a full government wide audit 0:04:48.360 --> 0:04:50.800 to find out what digital assets we actually have so 0:04:50.839 --> 0:04:55.080 they can be safeguarded and moved into a strategy that 0:04:55.120 --> 0:04:56.640 maximizes their long term value. 0:04:56.839 --> 0:04:57.039 Right. 0:04:57.120 --> 0:04:58.360 And then there's a stockpile. 0:04:58.880 --> 0:05:00.760 Told us about the nuance there and why you need 0:05:00.760 --> 0:05:03.279 to stockpile for old coins and how you're treating them differently. 0:05:04.520 --> 0:05:04.680 Right. 0:05:04.680 --> 0:05:06.679 Well, the idea there is, again, we're going to figure 0:05:06.680 --> 0:05:08.799 out what we actually have on the federal ballot sheet, 0:05:08.920 --> 0:05:11.440 and we're going to move those Like you said, all 0:05:11.480 --> 0:05:15.839 coins are digital assets other than bitcoin, into a stockpile 0:05:15.880 --> 0:05:19.640 for safekeeping. The difference there is that the Secretary of 0:05:19.640 --> 0:05:25.600 the Treasury will exercise responsible stewardship over those assets, and 0:05:25.680 --> 0:05:29.320 he has the discretion to rebalance the portfolio or to 0:05:29.880 --> 0:05:33.520 sell items in that portfolio. But that's not true for bitcoin. 0:05:33.560 --> 0:05:36.120 The bitcoin we want to keep long term, So there's 0:05:36.160 --> 0:05:39.279 a difference there in objective. With the reserve, the goal 0:05:39.600 --> 0:05:43.120 is long term preservation. With the stockpile, the goal is 0:05:43.160 --> 0:05:45.200 responsible stewardship portfolio management. 0:05:45.240 --> 0:05:50.680 In essence, David, the executive order also tasks Secretary Lutnik 0:05:50.720 --> 0:05:55.720 Investment with finding budget neutral ways that won't cost the 0:05:55.760 --> 0:06:00.839 taxpayer to add to that reserve. What call fies as 0:06:01.000 --> 0:06:04.200 budget neutral. Can you give us some examples of how 0:06:04.200 --> 0:06:06.520 that would actually work well? 0:06:06.560 --> 0:06:08.839 Budget neutral this means it won't cost the taxpayer or anything, 0:06:08.839 --> 0:06:10.960 It won't increase the deficit, it won't increase the debt. 0:06:11.040 --> 0:06:14.720 So that's basically the constraints on what they can do. 0:06:15.160 --> 0:06:17.320 If they can figure out creative ways to add to 0:06:17.360 --> 0:06:20.440 the stock to the reserve of bitcoin, they're allowed to 0:06:20.480 --> 0:06:24.200 accumulate more bitcoin, but again it cannot impose any burden 0:06:24.320 --> 0:06:27.479 on the federal deficit, debt or the taxpayer. 0:06:27.760 --> 0:06:28.560 So that's the rule. 0:06:28.640 --> 0:06:30.800 Now you can ask the question, well, how are they 0:06:30.839 --> 0:06:32.160 going to do that? And I think that's sort of 0:06:32.240 --> 0:06:34.760 up to them if they can figure out creative strategies 0:06:34.800 --> 0:06:36.839 that they believe are in the long term insto of 0:06:36.839 --> 0:06:41.360 the country. They now have the authorization to develop those strategies. 0:06:42.520 --> 0:06:45.599 Do you think using savings that come from DOZE, for example, 0:06:45.680 --> 0:06:47.920 qualify is something that would be budget neutral? 0:06:49.680 --> 0:06:52.400 That's a good question. I don't know the answer to 0:06:52.400 --> 0:06:52.839 that question. 0:06:52.880 --> 0:06:54.120 I think that that's something that I have to be 0:06:54.200 --> 0:06:56.960 assessed by probably the Office of Management and Budget. I 0:06:56.960 --> 0:07:01.440 think that since DOZE is cutting the deficit that and 0:07:01.520 --> 0:07:05.240 we'd want to seek a way to rescind those appropriations, 0:07:05.279 --> 0:07:06.720 it probably would not count. 0:07:06.760 --> 0:07:08.240 But you probably have to ask the O and B that. 0:07:09.080 --> 0:07:12.840 When you talk about the stewardship, particularly the stockpile, could 0:07:12.920 --> 0:07:15.360 you be seeing things like staking lending. Is there going 0:07:15.400 --> 0:07:17.160 to be other ways to maximize the volume there? 0:07:18.440 --> 0:07:19.360 I mean, it's a good question. 0:07:19.400 --> 0:07:21.440 I mean, you know, I think that the idea of 0:07:21.440 --> 0:07:24.040 this executive order is to create the mandate. Right, So 0:07:24.760 --> 0:07:26.880 first of all, we're going to move these digital assets 0:07:26.880 --> 0:07:28.680 from wherever they are all over the government. We're going 0:07:28.720 --> 0:07:29.880 to find out what they are. First of all, we're 0:07:29.880 --> 0:07:31.040 going to do the account and we're going to do 0:07:31.040 --> 0:07:32.720 the audit. Then we're going to move them into a 0:07:32.720 --> 0:07:35.760 separate account for safekeeping. And then the Sectary of the 0:07:35.800 --> 0:07:38.760 Treasury and his team will be able to exercise portfolio 0:07:38.840 --> 0:07:42.920 management and long term and responsible stewardship. And yes, that 0:07:42.920 --> 0:07:46.800 could include staking, it could include rebalancing, it could include sales. 0:07:46.880 --> 0:07:50.360 These are all options that they can pursue if the 0:07:50.400 --> 0:07:52.040 Secuary of the Treasury believes that these are in the 0:07:52.080 --> 0:07:54.040 long term interests of the American people. 0:07:55.040 --> 0:07:58.360 Just going into what's in the holding of the US government. 0:07:59.280 --> 0:08:02.920 Going back to President Trump mentioned over the weekend talking 0:08:02.920 --> 0:08:06.520 of Ripple, Solana, other alternative coins that people are wondering 0:08:06.520 --> 0:08:09.040 whether they're going to be included in this stock pile. 0:08:09.120 --> 0:08:11.640 Will they does the US own them? Why mention them 0:08:11.720 --> 0:08:12.400 by the president? 0:08:13.480 --> 0:08:16.480 Well, the President has mentioned the top five cryptocurrencies by 0:08:16.480 --> 0:08:18.600 market cap, So I think people are just reading into 0:08:18.640 --> 0:08:20.280 this a little bit too much. He just mentioned the 0:08:20.280 --> 0:08:23.640 top five. In terms of what we'll actually have. Again, 0:08:23.680 --> 0:08:26.080 we have to do the accounting we're not sure at 0:08:26.160 --> 0:08:28.480 sitting here today whether the federal government owns any of 0:08:28.480 --> 0:08:32.000 these alternative cryptocurrencies. We know it owns bitcoin. I believe 0:08:32.000 --> 0:08:34.160 it owns some ethereum. I'm not sure about the other ones. 0:08:34.320 --> 0:08:36.640 This is why we have to do the accounting. Is that, 0:08:36.960 --> 0:08:38.440 to be honest, no one's been able to give us 0:08:38.440 --> 0:08:39.920 a straight answer yet in terms of what the federal 0:08:39.920 --> 0:08:42.880 government owns. And this is part of the problem, is 0:08:42.920 --> 0:08:45.319 that we've never really had a digital asset strategy before, 0:08:45.600 --> 0:08:48.640 and this is why we've missed out on accumulating a 0:08:48.679 --> 0:08:50.000 lot of value for the American people. 0:08:52.480 --> 0:08:57.320 David, you mentioned earlier that you know, you don't have 0:08:57.600 --> 0:09:04.280 any additional cryptocurrency anywhere you've divested from your interests there. However, 0:09:04.720 --> 0:09:08.439 Secretary Lutnik in July mentioned that he had quote a 0:09:08.480 --> 0:09:12.600 shedload of bitcoin. Do you think it's important for these 0:09:12.640 --> 0:09:16.439 stewards of the Reserve and the stockpile to divest from 0:09:16.440 --> 0:09:18.959 their cryptocurrency interests? 0:09:19.040 --> 0:09:20.400 Do you know if they've done so already. 0:09:21.440 --> 0:09:22.720 I can't speak to a situation. 0:09:23.160 --> 0:09:25.200 You know, every member of the administration has to go 0:09:25.240 --> 0:09:27.400 through the same ethics process and the same conflict of 0:09:27.440 --> 0:09:29.520 interest process that I've gone through, so I'll let him 0:09:29.520 --> 0:09:31.720 speak to his own situation. I can to say that 0:09:31.760 --> 0:09:34.720 in my case, I divested or sold all the cryptocurrency 0:09:34.720 --> 0:09:36.600 that I own prior to the start of the administration, 0:09:36.920 --> 0:09:39.000 so there's no conflict in my case, I just want 0:09:39.000 --> 0:09:41.640 to have the right innovation policies for the United States. 0:09:42.960 --> 0:09:46.280 Do you think it's important, though, to just not have 0:09:46.360 --> 0:09:48.640 that appearance of a conflict of interest? 0:09:50.160 --> 0:09:50.400 Sure? 0:09:50.440 --> 0:09:53.520 I mean, look, we're all subject to eighteen USC. 0:09:53.600 --> 0:09:54.160 Two eight. 0:09:54.760 --> 0:09:56.800 These are the conflict of interest provisions every remember, the 0:09:56.800 --> 0:10:01.960 administration is subject to that can to speak to anyone's situation, 0:10:02.160 --> 0:10:04.640 so we all are governed by the same conflict of 0:10:04.679 --> 0:10:07.960 interest rules. In my case, I chose to divest everything. 0:10:07.960 --> 0:10:10.400 To make it really simple, you should ask every other 0:10:10.440 --> 0:10:13.480 member of the administration what their situation is. 0:10:13.760 --> 0:10:16.160 How about the president, because I think here in lies 0:10:16.200 --> 0:10:18.080 some of the issues for those who are on the 0:10:18.120 --> 0:10:21.560 outside of crypto looking in and suddenly feel that the 0:10:21.640 --> 0:10:23.559 US president has an exposure to mean. 0:10:23.400 --> 0:10:27.640 Coins or solana. How do you give the confidence. 0:10:27.120 --> 0:10:30.360 To the US investor base and indeed US population that 0:10:30.760 --> 0:10:31.599 this is totally. 0:10:31.400 --> 0:10:35.120 Legit Well, honestly, I think you're kind of making something 0:10:35.200 --> 0:10:36.840 up there. I mean, how do you know that he 0:10:36.880 --> 0:10:38.920 has exposure to Salona? Is that's something you just came 0:10:39.000 --> 0:10:39.320 up with. 0:10:39.800 --> 0:10:42.360 Well, ultimately, when we think about the mean coin exposure 0:10:42.360 --> 0:10:45.480 in particular, and people trying to understand for what reason 0:10:45.480 --> 0:10:48.400 we have a Trump coin or Milania coin, is there 0:10:48.440 --> 0:10:52.959 a clearer way that the US president can disassociate himself 0:10:52.960 --> 0:10:55.640 from any event upside when it comes to cryptocurrencies. 0:10:56.360 --> 0:10:58.160 Well, I think he's already spoke to the to the 0:10:58.200 --> 0:11:01.160 Trump coin, and I think that that is a collectible. 0:11:01.280 --> 0:11:04.720 The SEC said it's a collectible. Collectibles have no intrinsic value, 0:11:04.720 --> 0:11:07.000 they're not security. Is there in a different category, And 0:11:07.040 --> 0:11:09.600 I think as long as you issue a mean coin 0:11:09.960 --> 0:11:12.640 and disclaim that there's no intrinsic value, it can just 0:11:12.679 --> 0:11:14.720 be a collectible. So that is a different category, I 0:11:14.720 --> 0:11:17.160 think than what we're talking about here with cryptocurrencies. 0:11:18.800 --> 0:11:20.880 What do you make of some of the market reaction. 0:11:21.000 --> 0:11:26.280 I mean, clearly Bitcoin down later earlier today on the 0:11:26.320 --> 0:11:30.080 back of just not really getting what they were hoping for. 0:11:30.400 --> 0:11:32.200 You know, if the government is not going to buy 0:11:32.240 --> 0:11:35.200 additional crypto, then what's really the benefit. But can you 0:11:35.240 --> 0:11:38.640 say for sure that the administration is not open to 0:11:38.800 --> 0:11:41.079 using taxpayer dollars in the future. 0:11:41.440 --> 0:11:43.000 Is that completely off. 0:11:42.800 --> 0:11:45.160 The table according to this EO? 0:11:45.240 --> 0:11:45.560 It is. 0:11:45.800 --> 0:11:48.120 We've said that this will not cost taxpayers a dime. 0:11:48.360 --> 0:11:51.120 So we've been very clear in this executive Order that 0:11:51.160 --> 0:11:55.719 we will not use taxpayer funds to basically accumulate more 0:11:55.760 --> 0:11:58.680 crypto unless it can be done in a completely budget 0:11:58.679 --> 0:12:01.560 neutral way. No increase the deaf sit, no increase in 0:12:01.600 --> 0:12:04.920 the debt, no use of taxpayer funds, no burden on 0:12:04.960 --> 0:12:07.079 the taxpayer. We've been very clear in this executive Order 0:12:07.080 --> 0:12:07.520 about that. 0:12:08.880 --> 0:12:11.800 David, Let's move on to artificial intelligence, where you're also 0:12:11.840 --> 0:12:14.719 weighing in on policy there. The Biden executive Order was 0:12:14.760 --> 0:12:18.280 repealed in January. What is in the works currently that 0:12:18.360 --> 0:12:21.880 you can share about how that's looking and who's involved. 0:12:23.320 --> 0:12:26.480 So the president is week one executive order on AI 0:12:26.559 --> 0:12:28.719 that rescinded the Biden EO. By the way, that was 0:12:28.760 --> 0:12:31.600 a very burdensome executive order that Biden had passed, those 0:12:31.640 --> 0:12:35.360 over one hundred pages of burn some regulations on AI companies. 0:12:35.400 --> 0:12:36.440 The whole industry hated it. 0:12:36.880 --> 0:12:40.199 He rescinded that, and he tasked three people to basically 0:12:40.280 --> 0:12:43.640 evaluate a new and create a new AI action plan, 0:12:43.679 --> 0:12:46.040 and those people are the head of the Office of 0:12:46.040 --> 0:12:49.720 Science Technology Policy, the now Security Advisor, myself, and so 0:12:49.720 --> 0:12:51.880 we're currently working on that plan and we'll have more 0:12:51.920 --> 0:12:53.920 information for you about that once we're ready to present. 0:12:55.000 --> 0:12:59.240 How confident are you at this moment around AI leadership 0:12:59.280 --> 0:13:01.680 here in the United State? Dates that thick and fast, 0:13:01.720 --> 0:13:03.640 the news coming out of China, for example, of the 0:13:03.720 --> 0:13:07.160 latest models that are incredibly powerful with less data and 0:13:07.240 --> 0:13:10.720 ultimately more efficient. How are you exercising the view that 0:13:10.800 --> 0:13:14.160 AI can be still a leader for the United States 0:13:14.160 --> 0:13:16.000 and not losing its leadership versus China. 0:13:17.840 --> 0:13:20.040 Well, I'm confident in American leadership, but we can't be 0:13:20.040 --> 0:13:22.679 complacent about it. I mean, it's very clear that China 0:13:22.760 --> 0:13:24.880 is going to be very very competitive. Something like roughly 0:13:24.920 --> 0:13:27.880 half of the AI researchers in the world are from China. 0:13:28.440 --> 0:13:32.240 They are very good at math and science, and you've 0:13:32.240 --> 0:13:34.240 seen with the launch of deep Seek that they're very good. 0:13:34.240 --> 0:13:36.960 They're very good AI software companies. So this is going 0:13:37.000 --> 0:13:39.360 to be a very competitive race, and we have to 0:13:39.400 --> 0:13:42.160 win that race, but we can't be complacent about that 0:13:42.240 --> 0:13:42.719 in any way. 0:13:43.360 --> 0:13:45.120 It's going to be a very tough competition here. 0:13:45.760 --> 0:13:49.160 There's actually reporting from other news sources that maybe deep 0:13:49.200 --> 0:13:51.400 seat would be bad from apps here in the United States. 0:13:51.400 --> 0:13:52.360 Do you think that's appropriate. 0:13:53.960 --> 0:13:56.000 It's pretty maature for me to comment on something like that. 0:13:56.160 --> 0:13:58.800 If the administration announces a policy on that, then I'll 0:13:58.800 --> 0:13:59.360 comment on it. 0:13:59.400 --> 0:14:03.920 Then let's talk about some of the other voices inside 0:14:03.960 --> 0:14:07.920 the White House as of late that could potentially chime 0:14:07.960 --> 0:14:11.080 in on AI policy. Elon Musk is he involved in 0:14:11.120 --> 0:14:15.480 any capacity. 0:14:13.679 --> 0:14:14.800 Not in what we're doing. 0:14:15.240 --> 0:14:18.040 So you know, again, we have an office within the 0:14:18.040 --> 0:14:20.440 White House and we deal with crypto and AI policy. 0:14:20.840 --> 0:14:23.880 Elon's doing DOGE and these are two totally separate initiatives. 0:14:25.280 --> 0:14:26.960 But let's talk a little bit more about what the 0:14:27.000 --> 0:14:30.600 contours of the AI policy could look like. I realize 0:14:30.640 --> 0:14:32.960 you can't share too much at the moment, but what 0:14:33.040 --> 0:14:35.640 will be your priority areas? A lot of the talk 0:14:35.680 --> 0:14:39.120 has been around AI competitiveness and what we've seen coming 0:14:39.120 --> 0:14:43.000 out of Trump's President Trump's comments around the Chips Act 0:14:43.240 --> 0:14:46.120 and then National Science Foundation layoffs. 0:14:46.200 --> 0:14:48.480 There is some concern that this. 0:14:48.400 --> 0:14:52.080 Could undermine competitiveness if there's not enough federal funding going 0:14:52.280 --> 0:14:53.520 to research. 0:14:54.040 --> 0:14:54.960 What are your thoughts on that? 0:14:56.600 --> 0:14:59.040 Well, I think there are some items that are policy 0:14:59.080 --> 0:15:01.240 items that are coming up very quickly. So, for example, 0:15:01.280 --> 0:15:04.040 there was this eleventh hour policy that was announced by 0:15:04.160 --> 0:15:06.800 or rule that was now called the Diffusion Rule, that 0:15:06.840 --> 0:15:10.160 was announced by the Biden administration, and that governs the 0:15:10.200 --> 0:15:14.680 sale of advanced AI chips or GPUs to countries all 0:15:14.720 --> 0:15:18.280 across the world. They're basically an international version of the 0:15:18.320 --> 0:15:21.480 export controls. There's one hundred and twenty day clock on 0:15:21.520 --> 0:15:24.640 that in order for the Trump administration to weigh in 0:15:25.240 --> 0:15:27.760 and make whatever modifications we want to make. So, for example, 0:15:27.800 --> 0:15:29.120 I think that's probably going to be one of the 0:15:29.160 --> 0:15:31.560 first policy items on our plate that we have to 0:15:31.560 --> 0:15:34.520 address because there's a clock on it. So I think that, 0:15:34.720 --> 0:15:37.320 you know, export controls are a big area, Diffusion is 0:15:37.320 --> 0:15:41.480 a big area. Just the you know, how we govern 0:15:41.840 --> 0:15:49.200 the licensing of the most sophisticated chips and semiconductor manufacturing 0:15:49.200 --> 0:15:51.680 equipment is sort of at the heart of the policy 0:15:52.240 --> 0:15:53.200 discussion right now. 0:15:54.360 --> 0:15:57.560 Would you ultimately be supporting an end to the chipsacked. 0:16:00.000 --> 0:16:01.800 I don't think that anyone in the administration has said 0:16:01.800 --> 0:16:03.520 we want to end it, but the President has been 0:16:03.600 --> 0:16:05.680 very critical of it, and I think with good reason. 0:16:05.760 --> 0:16:07.480 I mean, I think the intent of the Chips Act 0:16:07.520 --> 0:16:11.560 was good. We were trying to get semicon manufacturing to 0:16:11.600 --> 0:16:12.560 occur in the United. 0:16:12.440 --> 0:16:13.680 States because's so strategic. 0:16:14.160 --> 0:16:16.480 The problem is that the money went to, frankly, a 0:16:16.480 --> 0:16:20.760 lot of companies who are losing in that very competitive market. 0:16:20.800 --> 0:16:22.800 And some of those companies haven't even used the money 0:16:22.840 --> 0:16:25.120 they were granted because they're not doing very well. So 0:16:25.160 --> 0:16:28.440 the Chips Act had I think, mixed results at a 0:16:28.480 --> 0:16:30.640 high cost, and the question is just whether we can 0:16:30.680 --> 0:16:32.440 do something much better. And I think what the President 0:16:32.440 --> 0:16:34.680 has said is that he would like to use terrorists 0:16:34.680 --> 0:16:38.720 as an incentive to get companies to onshore their semiconductor 0:16:38.800 --> 0:16:42.040 manufacturing here. And the advantage of that approach is that 0:16:42.120 --> 0:16:44.160 the best companies have to do it too. They can't 0:16:44.480 --> 0:16:46.040 kind of drag their feet or they're going to be 0:16:46.120 --> 0:16:48.400 hit with terrorists. So I think the President has figured 0:16:48.400 --> 0:16:51.440 out a very powerful weapon, a very powerful incentive to 0:16:51.520 --> 0:16:55.600 get the best companies to want to onshore their manufacturing, 0:16:56.160 --> 0:16:59.000 including for semi conductors, and that is very strategic for 0:16:59.000 --> 0:16:59.680 the United States. 0:17:00.400 --> 0:17:03.840 TSMC putting money where its mouth is and potentially in 0:17:03.880 --> 0:17:07.720 response to tariff concerns for you right when. 0:17:07.600 --> 0:17:10.280 You saw that yet, sorry you mentioned t SMC. I 0:17:10.320 --> 0:17:11.640 think it's a very good point. We did a press 0:17:11.680 --> 0:17:13.720 conference with them just earlier in the week and they 0:17:13.760 --> 0:17:16.480 announced over one hundred billion dollar investment in the US 0:17:17.040 --> 0:17:18.760 and a big part of the reason why is because 0:17:18.760 --> 0:17:22.080 of the President's Tariff's policies give them a strong incentive 0:17:22.520 --> 0:17:25.000 to want to move some manufacturing here because they know 0:17:25.080 --> 0:17:26.560 that if they don't do that, they're going to be 0:17:26.600 --> 0:17:27.760 here with the tariff. 0:17:28.560 --> 0:17:29.760 With forty five seconds. 0:17:29.800 --> 0:17:31.560 They've got to ask you, therefore, should Intel not be 0:17:31.560 --> 0:17:33.760 getting the money? Is that the company you're hinting at. 0:17:35.040 --> 0:17:37.040 I'm not saying they shouldn't get it, but I think 0:17:37.040 --> 0:17:39.760 that everyone knows that Intel's a very challenged company right now, 0:17:39.960 --> 0:17:42.200 and I think that it's unfortunately. 0:17:42.240 --> 0:17:43.280 We want Intel to do well. 0:17:43.320 --> 0:17:46.520 We want domestic chip manufacturing, and Intel is a legendary 0:17:46.560 --> 0:17:49.560 company and it is one of the few companies in 0:17:49.600 --> 0:17:53.200 the United States that's capable of doing advanced chip manufacturing. 0:17:53.600 --> 0:17:55.400 So we want them to do well, and I think 0:17:55.440 --> 0:17:57.160 we will try to do whatever we can to help 0:17:57.200 --> 0:17:58.520 them do well well. 0:17:58.520 --> 0:18:00.360 You're going to be speaking with lots of leaders from 0:18:00.440 --> 0:18:02.480 other companies today of course over at the White House, 0:18:02.600 --> 0:18:05.639 leaders of crypto exchanges across the ball, we thank you 0:18:05.680 --> 0:18:08.240 so much. The White House AI and cryptos are David Sachs. 0:18:08.280 --> 0:18:11.560 Ahead of that one important White House crypto meeting coming 0:18:11.640 --> 0:18:14.959 up first though, Braallcom shares they jump following its earnings 0:18:14.960 --> 0:18:17.440 and not beat forecasts full by AI demand details. 0:18:17.440 --> 0:18:18.920 Next, this is blue Meg Technology. 0:18:29.400 --> 0:18:32.240 Let's take a look at Broadcom shares. This after the 0:18:32.280 --> 0:18:36.480 company gave an upbeat forecast driven by strong spending on 0:18:36.600 --> 0:18:42.639 AI computing, shares are down by about three percent. Joanne Feene, 0:18:42.840 --> 0:18:46.000 partner at Advisor's Capital Management, joins us. 0:18:46.040 --> 0:18:47.000 Now for more. 0:18:47.320 --> 0:18:49.840 What a roller coaster it's been so far for the 0:18:49.920 --> 0:18:53.600 chip makers this week other infrastructure players as well. Is 0:18:53.640 --> 0:18:57.879 the market telling us something more about the fundamentals? Is 0:18:57.880 --> 0:19:00.439 it a short term blip or a fundamentals okay at 0:19:00.440 --> 0:19:00.840 this point? 0:19:01.920 --> 0:19:06.399 Yeah, Hey, Jackie, you know the surgeon in Broadcom shares 0:19:06.440 --> 0:19:09.800 after they reported in December, right, obviously I really boosted 0:19:10.040 --> 0:19:12.280 the stock. It's come down a year to date about 0:19:12.280 --> 0:19:15.480 twenty five or so percent. But last night's report was 0:19:15.640 --> 0:19:18.080 very impressive. Not only did the beat the numbers that 0:19:18.160 --> 0:19:22.320 came in with better guidance than expected, and more importantly 0:19:22.400 --> 0:19:26.240 not in their guidance are two new partners for the 0:19:26.320 --> 0:19:30.679 development of custom AI solutions, including chips and networking solutions. 0:19:31.200 --> 0:19:34.600 And so their sixty to ninety billion dollars outlook for 0:19:34.760 --> 0:19:37.880 fiscal twenty seven for the AI business, and by the way, 0:19:37.880 --> 0:19:39.639 it's only at a pace of about twenty million this 0:19:39.720 --> 0:19:44.720 year billions, So it's a really startling opportunity that the 0:19:44.760 --> 0:19:47.960 company has ahead of it. And remember that they see 0:19:47.960 --> 0:19:50.600 the road mass of their partners and their customers, so 0:19:50.640 --> 0:19:52.720 they have an awful lot of visibility. I think it 0:19:52.760 --> 0:19:55.359 did reassure investors somewhat and that's why the stock is 0:19:55.440 --> 0:19:55.879 up today. 0:19:57.000 --> 0:20:00.480 Is it there, fool still enough to shake off the 0:20:00.560 --> 0:20:05.560 overall anxiety surrounding Generator AI, the opportunity that these companies have, 0:20:05.680 --> 0:20:08.000 and ultimately how profitable it will be for them. 0:20:08.600 --> 0:20:11.479 Yeah, it's unclear what's causing the pullback here. I think 0:20:11.480 --> 0:20:13.720 there are a lot of moving parts in investors' minds 0:20:13.800 --> 0:20:15.600 right now. You know, one of them is just the 0:20:15.680 --> 0:20:19.159 general level of policy uncertainty, whether it's terrorists or government 0:20:19.160 --> 0:20:22.280 shutdown or geopolitical that is causing a little bit of 0:20:22.320 --> 0:20:25.000 a risk off trade across the board the Deep Seek 0:20:25.080 --> 0:20:28.600 Information you know announcement back at the beginning of the year. 0:20:28.880 --> 0:20:32.280 It certainly caused some to question how much we needed 0:20:32.359 --> 0:20:35.480 the most advanced chips. But what Hocktan CEO said last 0:20:35.560 --> 0:20:40.640 night was really informative. He said that customers are demanding 0:20:41.080 --> 0:20:45.000 more and more powerful solutions. They're clearly not running away 0:20:45.040 --> 0:20:47.960 from having the best hardware to run their AI models, 0:20:48.280 --> 0:20:52.359 both training, pre training, post training and inference. And again 0:20:52.400 --> 0:20:54.640 he sees the roadmaps for years out. So I think 0:20:54.680 --> 0:21:00.280 that investors are, you know, unfortunately taking the raw long 0:21:00.600 --> 0:21:04.040 idea out of the Deep Seek situation and inferring that 0:21:04.080 --> 0:21:07.399 for some reason, hyperscalers and others that want to use 0:21:07.440 --> 0:21:09.760 AM models are somehow going to say, oh, we don't 0:21:09.760 --> 0:21:12.840 need all that computing power. They clearly want that. According 0:21:12.880 --> 0:21:14.960 to what a broadcom is saying. 0:21:15.760 --> 0:21:18.360 The twenty percent sell off that we've seen in broadcom 0:21:18.440 --> 0:21:21.439 shares since the start of the year, though ultimately what 0:21:21.560 --> 0:21:24.040 shakes that off is this the right time to be 0:21:24.080 --> 0:21:26.680 buying a broadcom if it's ultimately going to be a winner? 0:21:27.840 --> 0:21:30.240 Yeah, Caroline, you know, a lot of times market sentiment 0:21:30.280 --> 0:21:32.840 again a risk off trade. People pull back from their winners. 0:21:33.040 --> 0:21:34.919 They diversify, and that's a good thing people. You know, 0:21:35.000 --> 0:21:36.400 investors should be diversified. 0:21:36.800 --> 0:21:38.280 What will probably. 0:21:37.840 --> 0:21:40.359 Turn this around is more and more of these kinds 0:21:40.359 --> 0:21:42.920 of reports, and not just from Broadcom, from other companies. 0:21:43.119 --> 0:21:45.679 You know, we've owned Broadcom for clients since it was 0:21:45.680 --> 0:21:49.840 called Avago ten years ago, and we've ridden through some 0:21:49.920 --> 0:21:53.800 of these pullbacks before. But ultimately, you know, a company 0:21:53.960 --> 0:21:56.400 like this, you want to have a long term view. 0:21:56.440 --> 0:21:58.040 You want to be able to ride it out during 0:21:58.040 --> 0:22:00.080 the times when it does pull back, because you just 0:22:00.119 --> 0:22:02.480 don't know when sentiment is going to change. To your question, 0:22:02.880 --> 0:22:05.080 we don't know when investors might decide, you know what, 0:22:05.359 --> 0:22:07.919 we want to own companies that are going to provide 0:22:08.000 --> 0:22:12.560 really long term, solid year after year growth, and those 0:22:12.600 --> 0:22:15.159 are hard to find, particularly in an environment where policy 0:22:15.240 --> 0:22:18.359 uncertainty that they affect other sectors of the economy could 0:22:18.400 --> 0:22:21.000 be so confounding. Here's one area where we think the 0:22:21.080 --> 0:22:24.440 growth is solid and will be relatively impervious to a 0:22:24.480 --> 0:22:26.280 lot of the politics that we're seeing out there. 0:22:27.600 --> 0:22:29.879 That's incredible, you say that, Johan, because so much of 0:22:29.880 --> 0:22:33.280 the market jitters that we've seen this week have directly 0:22:33.320 --> 0:22:36.080 been correlated to some of the trade tensions that are 0:22:36.080 --> 0:22:40.840 really escalating as of late, tariffs being mentioned in HPES 0:22:40.960 --> 0:22:45.600 earnings as a potential a detractor for their outlook going forward. 0:22:45.880 --> 0:22:49.639 Why is Broadcom more insulated perhaps from that volatility and 0:22:49.680 --> 0:22:52.359 what other players in this space could perhaps kind of 0:22:52.400 --> 0:22:56.040 see themselves a little bit more protected from that volatility. 0:22:57.040 --> 0:22:59.359 Yeah, Jackie, so they're not, you know, Broadcom certainly is 0:22:59.400 --> 0:23:03.399 vulnerable to tearffs on imports of chips. They don't, you know, 0:23:03.520 --> 0:23:06.920 manufacture many of the chips themselves, and most advanced ships 0:23:06.920 --> 0:23:10.439 are manufactured abroad, but in Taiwan. And obviously there's some 0:23:10.520 --> 0:23:14.360 question about the Taiwan situation, and so you know, any 0:23:14.520 --> 0:23:18.119 political news there, you know, could disturb the shares. It's 0:23:18.160 --> 0:23:20.800 good to see that Taiwan Semi is bringing more manufacturing 0:23:20.840 --> 0:23:23.640 here to the US. That will help buffer that kind 0:23:23.680 --> 0:23:26.400 of risk. I mean, other companies that are more reliant 0:23:26.440 --> 0:23:28.960 in their sales on just chips are going to be 0:23:29.040 --> 0:23:32.160 more impacted by the tariff talk. Notice though, that Broadcom 0:23:32.240 --> 0:23:34.600 is more diversified. They have a software business which is 0:23:34.640 --> 0:23:38.720 substantial and is improving in its reach into customers and 0:23:38.760 --> 0:23:41.879 its margins, et cetera. And they have other areas of 0:23:41.880 --> 0:23:45.320 the business. You know, Kila Packard Enterprise is being hurt 0:23:45.320 --> 0:23:48.560 particularly because they you know, they have built you know, 0:23:48.640 --> 0:23:52.679 their systems in China, so they're going to be particularly vulnerable. 0:23:53.280 --> 0:23:55.479 And also there seem to have been some execution problems 0:23:55.520 --> 0:23:57.920 over there. So you know, that's a very different, much 0:23:57.960 --> 0:24:01.159 more narrow company relative to a so an investor that 0:24:01.200 --> 0:24:04.960 owns Broadcom owns something that's diversified and that helps them 0:24:05.240 --> 0:24:08.040 write out you know, some of these other political ristic 0:24:08.119 --> 0:24:09.639 companies will be more hurt by. 0:24:10.760 --> 0:24:13.560 It's Joey and Feenie from Advisor's Capital Management. Thanks so 0:24:13.640 --> 0:24:18.560 much for joining us. 0:24:22.520 --> 0:24:24.480 Welcome back to Blue Med Technology. I'm Caroline Hide in 0:24:24.480 --> 0:24:27.440 New York and I'm Jack Devalas in Washington. 0:24:27.560 --> 0:24:29.879 Quick check on these markets, because at one point we 0:24:30.000 --> 0:24:31.600 hit a technical correction. 0:24:31.280 --> 0:24:32.479 On the Nasdaq one hundred. 0:24:32.560 --> 0:24:34.320 We're by more than five percent as you see over 0:24:34.320 --> 0:24:36.119 the course of the five trading days, and in fact, 0:24:36.200 --> 0:24:38.760 we've had our longest weekly losing street in this particular 0:24:38.800 --> 0:24:41.800 benchmark going back to August of last year. What drags 0:24:41.880 --> 0:24:44.679 us lower anxieties around China and it performance with generator 0:24:44.680 --> 0:24:47.679 of AI anxieties around tarifs anxieties around just selling your 0:24:47.720 --> 0:24:50.760 winners because maybe we have an economic slowdown at this point. 0:24:50.920 --> 0:24:53.080 We're seeing on the higher side on a daily perspective 0:24:53.119 --> 0:24:55.280 from the points perspective is Apple and of course Broadcom 0:24:55.320 --> 0:24:57.240 with its numbers doing better than Anticipator. 0:24:57.280 --> 0:24:57.760 But on the. 0:24:57.680 --> 0:25:01.840 Downside, basically all the key magnificence names at the moment, Jockie, 0:25:01.880 --> 0:25:03.879 so keep an eye on what's happening, were broadly with 0:25:03.880 --> 0:25:05.040 an US DOT one hundred. 0:25:05.960 --> 0:25:08.879 Let's talk about how those markets are reacting to this 0:25:08.960 --> 0:25:13.360 week's news. We're joined by Martin Norton, chief investment strategist 0:25:13.520 --> 0:25:16.719 for Empower. As Caroline just teed up, there there's a 0:25:16.800 --> 0:25:19.280 lot here that markets are grappling with. What would you 0:25:19.359 --> 0:25:24.320 say is truly driving this negativity we're seeing in tech stocks. 0:25:24.920 --> 0:25:26.840 I mean, the key word that jumps out to me 0:25:26.920 --> 0:25:30.840 and Caroline's comments is just anxiety. We're seeing so much anxiety, 0:25:30.920 --> 0:25:34.840 of course around the tech narrative that began with deep 0:25:34.920 --> 0:25:37.879 Seek and has continued as we continue to see competition 0:25:38.040 --> 0:25:41.200 coming out of China. But it's also related to the 0:25:41.280 --> 0:25:43.919 tariff question, and I think when we're thinking about tariffs, 0:25:44.400 --> 0:25:48.040 we have to acknowledge the fact that This is an area, 0:25:48.520 --> 0:25:51.919 you know, AI generally where there's a lot of emphasis 0:25:51.960 --> 0:25:54.520 on US becoming a superpower, and so that should have 0:25:54.640 --> 0:25:58.800 some insulation when we think about how the Trump administration 0:25:59.080 --> 0:26:02.800 is going to approach coach the semiconductor space and the 0:26:02.840 --> 0:26:06.520 technology space broadly. At the same time, there's a lot 0:26:06.600 --> 0:26:09.240 of rumblings around the types of tariffs that we could 0:26:09.280 --> 0:26:13.080 see on semiconductor's real pressure to build here in the US. 0:26:13.440 --> 0:26:15.000 And I think when we think about all of these 0:26:15.000 --> 0:26:20.320 different anxieties, from questions on global competition to questions around tariffs, 0:26:20.440 --> 0:26:22.320 we have to remember the contexts that we're in and 0:26:22.359 --> 0:26:24.520 the valuations that we saw at the start of the year. 0:26:24.600 --> 0:26:27.840 There was just no room for disappointment or uncertainty, and 0:26:27.920 --> 0:26:31.120 I think it's that setup that creates the sell off 0:26:31.119 --> 0:26:32.080 that we're seeing today. 0:26:33.480 --> 0:26:37.120 In many ways, investors have gotten what they wanted. Hyperscalers 0:26:37.119 --> 0:26:42.120 still plan to invest in more infrastructure. President Trump has 0:26:42.160 --> 0:26:45.720 been supportive bringing in more commitments, and you also have 0:26:45.880 --> 0:26:50.359 demand holding up. But when we respect to China as 0:26:50.400 --> 0:26:53.920 a competitor, we're not going to stop seeing new models 0:26:53.960 --> 0:26:56.119 coming out of there. What is it going to take 0:26:56.280 --> 0:26:59.080 for tech stocks to really get the boost that they 0:26:59.119 --> 0:27:01.800 were getting four or are those days pretty much over? 0:27:02.880 --> 0:27:05.400 Well my inclination right now, you know, as we think 0:27:05.400 --> 0:27:07.880 about the CAPEC story and we think about the spending 0:27:07.920 --> 0:27:12.080 from hyperscalers, that expectation of the hyperscaler demand is in 0:27:12.119 --> 0:27:13.919 the prices right now. You know, the kind of the 0:27:13.960 --> 0:27:16.840 infrastructure build is in the prices. And I think what 0:27:16.920 --> 0:27:19.879 we'll have to see when it comes to technology and 0:27:20.119 --> 0:27:23.480 a renewed strength and performance is really that pivot from 0:27:23.520 --> 0:27:26.760 building the infrastructure to seeing the demand. And we see 0:27:26.760 --> 0:27:30.000 that dichotomy so far in market movement thus far in 0:27:30.040 --> 0:27:32.720 twenty twenty five. So for example, Meta has had a 0:27:32.800 --> 0:27:35.160 very different run than some of these other players, and 0:27:35.400 --> 0:27:38.040 one of the explanations could be the way that they've 0:27:38.080 --> 0:27:41.680 been able to integrate AI and you know, take advantage 0:27:41.680 --> 0:27:43.520 of AI on the revenue side. And so I think 0:27:43.560 --> 0:27:46.959 it's that revenue narrative that's really the act too of 0:27:47.000 --> 0:27:49.199 this AI play, and we really need to move to 0:27:49.240 --> 0:27:51.800 that act too, and my estimation for us to see 0:27:51.840 --> 0:27:54.960 prices move higher from here the act too. 0:27:55.359 --> 0:27:59.720 We had other investors or indeed market participants come on 0:27:59.720 --> 0:28:02.919 and say act too really gets reignited as when in 0:28:03.000 --> 0:28:08.280 videos GPUs. The latest Blackwell chipsets are flying off the shelves. 0:28:08.280 --> 0:28:11.040 We really see the proof in them being. 0:28:10.880 --> 0:28:14.359 Sold and used and ultimately that will kickstart once again 0:28:14.400 --> 0:28:16.960 the growth in this industry. Are you anticipating it being 0:28:16.960 --> 0:28:18.560 a second half kind of a pivot point? 0:28:19.680 --> 0:28:22.679 It seems like there's room for the narrative to shift 0:28:22.720 --> 0:28:24.800 in the second half. I think the timing, though, is 0:28:24.840 --> 0:28:28.360 particularly tricky. We have some sense of that from kind 0:28:28.400 --> 0:28:31.440 of expectations around Blackwell, but in terms of broad use 0:28:31.520 --> 0:28:35.320 case of AI, corporate spending on AI, I think that 0:28:35.480 --> 0:28:39.160 timing is especially tricky in this environment, in particular, as 0:28:39.200 --> 0:28:42.120 we think about in an environment where there may be 0:28:42.160 --> 0:28:46.320 a hesitancy on corporations to really extend into long term 0:28:46.320 --> 0:28:51.240 investment opportunities that could potentially pull back demand for some 0:28:51.360 --> 0:28:53.960 of the AI applications that we'd really like to see 0:28:54.040 --> 0:28:56.320 be part of that act to and that makes the 0:28:56.320 --> 0:28:59.240 timing maybe a little bit more in question than we 0:28:59.240 --> 0:29:02.120 would otherwise like. And perhaps it's that uncertainty that is 0:29:02.160 --> 0:29:05.440 also helping drive prices lower and is. 0:29:05.440 --> 0:29:07.760 So unstee then should people sit on the hands. 0:29:08.680 --> 0:29:10.760 Well, I'm looking at this, you know, as I'm looking 0:29:10.760 --> 0:29:13.600 at valuations and expecting this sell off to really show 0:29:13.680 --> 0:29:16.560 up in valuations. But if I'm looking at technology broadly, 0:29:16.960 --> 0:29:19.400 the sector still looks on a historical basis to be 0:29:19.400 --> 0:29:22.480 in one of the more expensive death styles from a 0:29:22.640 --> 0:29:25.640 price to expected earning standpoint. So though we've had this 0:29:25.760 --> 0:29:28.840 sell off, we haven't seen valuations move that much. I 0:29:28.840 --> 0:29:31.080 wouldn't consider it now to be a time to be 0:29:31.160 --> 0:29:33.520 selling technology. But to me, it's more of a hold 0:29:33.680 --> 0:29:36.960 environment if it sized appropriately in a portfolio to hang 0:29:37.000 --> 0:29:40.320 on to it, But it's not necessarily a buying opportunity now. 0:29:40.360 --> 0:29:41.840 I think we'll really have to see a little bit 0:29:41.880 --> 0:29:44.560 more froth come out of those valuations to make a 0:29:44.600 --> 0:29:46.800 really justifiable argument to move in. 0:29:48.520 --> 0:29:48.800 Martin. 0:29:48.840 --> 0:29:50.520 One of the other things that we're seeing now is 0:29:50.560 --> 0:29:55.160 perhaps more discernment among investors for companies that aren't as diversified. 0:29:55.200 --> 0:29:58.360 Do you see that's going to be a longer lasting trend. 0:30:00.040 --> 0:30:00.800 That's a possibility. 0:30:00.800 --> 0:30:04.080 I mean a related topic that is, of course, tap 0:30:04.120 --> 0:30:06.200 of mind for people is moving from the pigs and 0:30:06.200 --> 0:30:08.280 shovels to those who are putting AI to use in 0:30:08.320 --> 0:30:11.080 their businesses and softwares in the like. I think in 0:30:11.080 --> 0:30:14.400 this environment that uncertainty is going to cast kind of 0:30:14.400 --> 0:30:17.440 a shadow over that play as well. But to the 0:30:17.480 --> 0:30:19.920 extent that valuations are more approachable, I don't know if 0:30:19.920 --> 0:30:22.480 that's a bad decision to have some of that exposure 0:30:22.520 --> 0:30:23.720 in the portfolios as well. 0:30:24.800 --> 0:30:26.600 We want to thank you as always for joining the 0:30:26.640 --> 0:30:29.520 show and Powers chief investment strategist Smart and Naughton. 0:30:29.600 --> 0:30:30.920 Great to catch up. Happy weekend. 0:30:31.520 --> 0:30:34.640 Let's return to the world of crypto and prices ahead 0:30:34.680 --> 0:30:36.640 of the White House Summit on digital assets. 0:30:36.760 --> 0:30:37.600 We're currently off by. 0:30:37.480 --> 0:30:40.200 Two point six percent on the day for bitcoin. There's 0:30:40.240 --> 0:30:42.480 a little bit of sort of buy the room of 0:30:42.520 --> 0:30:44.520 sell the news when it comes to a bitcoin reserve. 0:30:44.600 --> 0:30:47.360 Perhaps many wondering whether potentially, instead of just holding on 0:30:47.400 --> 0:30:49.360 to US assets and not selling them, it could have 0:30:49.400 --> 0:30:51.960 been more buying and that doesn't seem to be the 0:30:52.000 --> 0:30:53.120 case for now at least. 0:30:53.560 --> 0:30:54.320 Let's stick into. 0:30:54.200 --> 0:30:56.240 All of this what we can anticipate more broadly across 0:30:56.240 --> 0:30:59.320 the industry, and we're please we welcome Lizziang, head of 0:30:59.360 --> 0:31:03.720 Growth at a ZY and Many A Crypto Leader Thought 0:31:03.840 --> 0:31:06.720 Leader CEO is going to the White House today to 0:31:06.760 --> 0:31:09.000 talk about what regulations could look like in the future, 0:31:09.040 --> 0:31:11.920 but also a Pine on the latest executive order, what 0:31:11.960 --> 0:31:12.600 did you make of it? 0:31:13.200 --> 0:31:16.360 So I think it's important to consider the political zeitgeist 0:31:16.400 --> 0:31:16.920 of the moment. 0:31:17.800 --> 0:31:19.080 Crypto has come a. 0:31:19.040 --> 0:31:22.360 Really long way, and over the last fifteen years there's 0:31:22.400 --> 0:31:25.600 been growing demand both for crypto as a digital asset 0:31:25.640 --> 0:31:28.280 and also as a technology. So it's no longer a 0:31:28.360 --> 0:31:32.200 question of is crypto something legitimate or is it something real. 0:31:32.320 --> 0:31:35.960 Crypto is definitively here to stay, and with today's White 0:31:35.960 --> 0:31:39.200 House summit, it shows that we have a voice and 0:31:39.280 --> 0:31:42.040 a seat at the table, so we're expecting big things 0:31:42.040 --> 0:31:42.920 to come from the summit. 0:31:44.200 --> 0:31:48.040 Was the Bitcoin Reserve and the stoppoial of other alternative 0:31:48.160 --> 0:31:50.920 assets in the digital space a. 0:31:50.840 --> 0:31:52.560 Big enough deal for you today? 0:31:52.880 --> 0:31:56.080 So there was a lot of commentary around the Strategic 0:31:56.080 --> 0:31:58.920 Bitcoin Reserve, and I think what the White House has 0:31:58.960 --> 0:32:01.560 been able to do is come up with an equitable solution. 0:32:02.040 --> 0:32:04.880 So the way I see it personally, we already have 0:32:05.040 --> 0:32:07.480 this bitcoin, but there were no policies in place to 0:32:07.520 --> 0:32:10.560 steward it and there was no accountability within government. David 0:32:10.600 --> 0:32:13.520 Sach's earlier mentioned that there was a loss of seventeen 0:32:13.560 --> 0:32:16.760 billion dollars by not having policies on when to sell bitcoin. 0:32:17.160 --> 0:32:19.640 So if we already have this bitcoin from criminal and 0:32:19.680 --> 0:32:22.600 civil asset forfeitures, I think it's important that we have 0:32:22.640 --> 0:32:25.600 a framework in place to manage this bitcoin for the 0:32:25.600 --> 0:32:26.360 American people. 0:32:27.720 --> 0:32:29.920 Liz, what do you want to see coming out of 0:32:29.960 --> 0:32:32.680 this crypto summit that will give the market some of 0:32:32.720 --> 0:32:34.920 that clarity that we're looking for. 0:32:35.840 --> 0:32:38.760 I think what the United States lacks today is a 0:32:38.880 --> 0:32:42.800 clear framework around digital assets. So in this sense, we 0:32:42.960 --> 0:32:46.320 lag a lot of different regions, mainly the European Union. 0:32:46.920 --> 0:32:50.440 So what I'm hoping for personally is I hope to 0:32:50.480 --> 0:32:53.800 see us take steps to lay ground work to have 0:32:53.880 --> 0:32:57.120 regulatory clarity in the United States. And the reason why 0:32:57.160 --> 0:33:01.000 this is important is because it really that's the stage 0:33:01.080 --> 0:33:05.560 for American crypto companies to flourish, and this brings jobs 0:33:05.600 --> 0:33:10.640 that attracks entrepreneurship, attracts investment, and it ensures America's dominance 0:33:11.000 --> 0:33:13.200 on the global stage in technology. 0:33:14.480 --> 0:33:17.320 One of the things that David Sax really emphasize is 0:33:17.360 --> 0:33:20.600 that taxpayer dollars will not be used to bolster this 0:33:20.720 --> 0:33:25.040 reserve and stockpile. How can the crypto community really gain 0:33:25.400 --> 0:33:27.840 if the government is not buying crypto? 0:33:28.440 --> 0:33:32.360 So I think that even taking steps to establish a 0:33:32.400 --> 0:33:36.880 strategic Bitcoin reserve has already been a huge step for 0:33:37.000 --> 0:33:41.200 the industry. As for the specific details around its implementation, 0:33:41.720 --> 0:33:44.120 I think we'll have to see what comes of the 0:33:44.160 --> 0:33:47.120 working group and what comes from the Cryptosummit, But I 0:33:47.160 --> 0:33:50.240 am very optimistic on what this means for the crypto industry. 0:33:51.120 --> 0:33:53.560 So what next? We've got the reserve that was a 0:33:53.600 --> 0:33:56.520 promise made and promise kept, as David Saxon say, an 0:33:56.520 --> 0:33:59.640 indeed just a stop pole, but now will clarity is 0:33:59.680 --> 0:34:03.480 needed ultimately still about what is a digital asset, the 0:34:03.520 --> 0:34:06.640 way in which it's viewed as regulators and indeed stable 0:34:06.640 --> 0:34:08.360 coin future, what do you want to hear out of 0:34:08.360 --> 0:34:09.680 today for future regulation? 0:34:10.160 --> 0:34:13.240 So I think something that's interesting to consider with crypto 0:34:13.400 --> 0:34:16.520 is that a lot of the mainstream discussion centers around 0:34:16.600 --> 0:34:19.839 crypto as a digital asset with the financial use case, 0:34:20.120 --> 0:34:22.440 but it's important to remember that crypto is also an 0:34:22.560 --> 0:34:26.640 underlying technology upon which applications can be built, which span 0:34:26.719 --> 0:34:31.360 a variety of different sectors, ranging from identity solutions to 0:34:31.520 --> 0:34:35.480 life sciences, to media, entertainment and everything in between. So 0:34:35.840 --> 0:34:37.759 what I hope is for this to really lay the 0:34:37.800 --> 0:34:40.800 groundwork for crypto to flourish in the United States. 0:34:42.400 --> 0:34:47.240 Do you think that founders are changing their mind about 0:34:47.239 --> 0:34:48.359 building in the United States. 0:34:48.520 --> 0:34:48.960 Oh? 0:34:49.000 --> 0:34:52.680 Absolutely, I personally know of entrepreneurs that have left the 0:34:52.760 --> 0:34:56.479 United States due to regulatory uncertainty, and I know. 0:34:56.480 --> 0:34:58.279 That those of us who have chosen to. 0:34:58.280 --> 0:35:01.520 Stay in the United States are feeling quite validated in 0:35:01.560 --> 0:35:02.120 that decision. 0:35:05.360 --> 0:35:08.840 He said, Thanks Liz Young, thank you for growth at Azuki. 0:35:09.080 --> 0:35:10.640 We appreciate it for joining us. 0:35:10.840 --> 0:35:13.320 Quick check on some breaking news, this one regarding in 0:35:13.400 --> 0:35:15.160 video that we just told you that the NaSTA one 0:35:15.239 --> 0:35:17.359 hundred was in correction. Territory now in video has been 0:35:17.400 --> 0:35:20.399 shed one trillion dollars in market value from its record high. 0:35:20.520 --> 0:35:21.879 Remember it was as high as more. 0:35:21.800 --> 0:35:24.839 Than three trillion dollars and it has come down significantly 0:35:25.120 --> 0:35:28.280 from that market capitalization. We're off one point five percent 0:35:28.360 --> 0:35:35.320 on the day on Invidia. 0:35:38.040 --> 0:35:41.680 Shares of HPE are plunging today after the company said 0:35:41.719 --> 0:35:44.520 profits in the coming year would be hurt by tariffs, 0:35:45.000 --> 0:35:49.800 week margins on server sales and execution issues. HPE also 0:35:49.920 --> 0:35:54.120 saying it will look to eliminate three thousand jobs. Antonio Nairy, 0:35:54.320 --> 0:35:57.640 HPE CEO joins us now for more Antonio. I know 0:35:57.719 --> 0:36:00.000 it's a tough day, but give us a little bit 0:36:00.120 --> 0:36:02.960 of clarity in terms of what you're seeing as the 0:36:03.080 --> 0:36:04.319 turnaround plan here. 0:36:05.800 --> 0:36:08.600 Yes, good morning, Thanks for having me. Today obviously is 0:36:08.600 --> 0:36:12.800 a disappointed day for me and for us as a company. 0:36:13.280 --> 0:36:16.399 We had a solid quarter. We delivered in our commitments. 0:36:16.640 --> 0:36:21.080 We grow our revenue double digits, up seventeen percent. We 0:36:21.120 --> 0:36:25.479 had double digit growth in our bookings. We disappointed on 0:36:25.480 --> 0:36:29.799 one specific metric, which was the server operative margins, and 0:36:29.840 --> 0:36:33.160 that server operative margin was impacted by three specific issues. 0:36:33.400 --> 0:36:36.640 Two in the traditional server business call of the X 0:36:36.640 --> 0:36:40.400 eighty six. One was a very aggressive market, meaning a 0:36:40.680 --> 0:36:45.000 high discounting, and second was a specific issue with the 0:36:45.040 --> 0:36:48.440 evaluation of our inventory which caused us not to have 0:36:48.560 --> 0:36:51.920 the exact right cost in that pricing in the end 0:36:52.000 --> 0:36:52.560 of the quarter. 0:36:53.320 --> 0:36:56.440 And those issues have been already fixed and we have 0:36:56.520 --> 0:36:57.759 taken very aggressive action. 0:36:58.080 --> 0:37:01.840 On the E side, we have a higher than normal 0:37:02.000 --> 0:37:06.800 inventory related to the GPU transition from the copper of 0:37:07.080 --> 0:37:10.160 h one hundreds and two hundreds Intro Blackwell, and in 0:37:10.200 --> 0:37:12.600 the quarter we booked one point six billion dollars of 0:37:12.760 --> 0:37:15.840 new AI system orders, which was doubled the. 0:37:17.480 --> 0:37:21.279 Orders that we had in Q four, but seventy percent. 0:37:21.040 --> 0:37:24.440 Of that is on the blackwell side, so the working 0:37:24.480 --> 0:37:27.960 capital aspect that I had a negative impact on our 0:37:28.120 --> 0:37:29.440 operating margins. 0:37:29.040 --> 0:37:29.800 For the servers. 0:37:29.920 --> 0:37:32.279 The rest of the business is very, very strong. 0:37:33.040 --> 0:37:36.720 And inclusive of the networking business, which had again another 0:37:36.800 --> 0:37:40.279 recovery on sequential revenue double digit year over the year 0:37:40.360 --> 0:37:43.719 revenue growth our hybrid cloud was up eleven percent year 0:37:43.719 --> 0:37:46.960 every year, and we had a very strong performance in 0:37:47.000 --> 0:37:51.440 our storage bookings. So it was all in the server margin. 0:37:51.719 --> 0:37:53.600 But I have to tell you because of the demand 0:37:53.640 --> 0:37:57.239 we selved, it reinforced our strategies, right, we just need 0:37:57.280 --> 0:37:59.720 to execute better than a couple of things and return 0:37:59.800 --> 0:38:02.880 to the normal operating profit, which we are committed to 0:38:02.920 --> 0:38:07.880 do in the second half. And then what we guided 0:38:08.200 --> 0:38:11.160 was inclusive of that and the net impact of tariffs, 0:38:11.239 --> 0:38:12.080 because now it's. 0:38:11.960 --> 0:38:14.040 Available on tariff. 0:38:14.080 --> 0:38:18.480 Antonio, how much of a pain to the bottom line 0:38:18.480 --> 0:38:20.160 and tarif's going to be do you have a clear 0:38:20.440 --> 0:38:22.680 guidance of number, Yes. 0:38:22.520 --> 0:38:23.400 We did, Caroline. 0:38:23.520 --> 0:38:27.520 We guided that it would be seven pennies net of 0:38:27.680 --> 0:38:31.160 the mitigation impacts that we have now put in place 0:38:31.440 --> 0:38:35.600 and will continue to execute throughout FIS career twenty twenty five. 0:38:35.800 --> 0:38:36.640 The worst case. 0:38:36.440 --> 0:38:38.880 Scenario do you build in there, though, Antonio, because at 0:38:38.880 --> 0:38:41.480 the moment, every day we get a different tariff headline. 0:38:42.719 --> 0:38:45.560 Well, we decided to go all in based on the 0:38:45.640 --> 0:38:49.720 twenty five percent tariff in Mexico, the twenty five percent 0:38:49.760 --> 0:38:52.440 tartfs in Canada, which we don't produce in Canada today, 0:38:52.880 --> 0:38:56.400 and that incremental ten percent meaning the twenty percent on China. 0:38:56.520 --> 0:38:59.680 So we factor all that in and obviously we have 0:39:00.040 --> 0:39:05.040 mitigation strategy from a global supply chain and also the pricing. 0:39:05.160 --> 0:39:06.680 So we decided to put it all in in. 0:39:06.640 --> 0:39:08.600 A this part of time and if some of that 0:39:08.880 --> 0:39:12.080 doesn't get done then you know, obviously we'll get the 0:39:12.080 --> 0:39:14.600 benefit of it. But right now, because kind of what 0:39:14.719 --> 0:39:16.759 happened here is that because we did not guide the 0:39:16.800 --> 0:39:19.920 full year waiting for the Juniper deal to close at 0:39:19.960 --> 0:39:22.160 the end of Q one, we decided to put a 0:39:22.200 --> 0:39:24.920 flag pole out there for an investor. 0:39:24.960 --> 0:39:26.359 So they have it all out there. 0:39:27.960 --> 0:39:30.040 Can you give us an update there, Antonia is where 0:39:30.080 --> 0:39:32.520 the Department of Justices case stands. 0:39:34.000 --> 0:39:37.480 Yes, of course, First of all, we are incredibly disappointed 0:39:37.480 --> 0:39:40.359 that the DOJ decided to file a lawsuit to try 0:39:40.400 --> 0:39:45.160 to block the transaction. Their market analysis completely flawed. Then 0:39:45.239 --> 0:39:48.319 nar the market to one slaver or the market called 0:39:48.440 --> 0:39:51.040 the wireless lund and they felt there would be only 0:39:51.120 --> 0:39:52.760 three vendors to play in the market. 0:39:52.800 --> 0:39:54.480 The reality are at least the eight. 0:39:54.360 --> 0:39:57.520 Vendors and many of them had this exact same share 0:39:57.600 --> 0:39:58.800 as Juniper today. 0:40:00.040 --> 0:40:01.760 Addition, you know they don't. 0:40:01.520 --> 0:40:04.440 Consider this is a great rossure for the United States 0:40:04.440 --> 0:40:09.839 to strengthen our US national security outside the country. So 0:40:09.960 --> 0:40:13.360 now the judge has been selected. The judge has established 0:40:13.760 --> 0:40:17.440 July ninth as the trial date and we will defend 0:40:17.480 --> 0:40:20.359 this in court. So we expect to prevail because we 0:40:20.400 --> 0:40:23.080 have a very compelling case and therefore we expect to 0:40:23.080 --> 0:40:26.680 close the transaction in twenty twenty five, obviously delayed from 0:40:26.719 --> 0:40:27.520 the regional time. 0:40:29.000 --> 0:40:32.000 We have about thirty seconds left. But are you prepared 0:40:32.120 --> 0:40:34.320 for the worst case scenario. 0:40:36.360 --> 0:40:41.160 Meaning the deal doesn't close. We always have multiple options 0:40:41.200 --> 0:40:45.000 on the table. Our feederstrem duty, together with my board, 0:40:45.120 --> 0:40:49.120 is to drive the best return for our shareholders. We 0:40:49.239 --> 0:40:52.399 felt that the Juriper transaction is the best long term 0:40:52.440 --> 0:40:56.880 return that will shift the portfolio and create more earnings 0:40:57.080 --> 0:41:00.480 and free cash flow. Because we committed at least four 0:41:00.520 --> 0:41:03.719 hundred and fifty million dollars of synergies, and so that's 0:41:03.760 --> 0:41:07.320 what we're focused. However, they are different ways to create 0:41:07.320 --> 0:41:10.040 your holder value and all those options out of the table, 0:41:10.400 --> 0:41:11.799 But right now we want to see this. 0:41:11.840 --> 0:41:16.000 Through Antonio Nary HPCO, thanks so much for joining us today. 0:41:16.239 --> 0:41:16.839 Jackie. 0:41:17.800 --> 0:41:20.439 Coming up, we take a look at tech entrepreneur Peter 0:41:20.560 --> 0:41:23.600 Teel's many lengths inside the Trump's new administration. 0:41:34.560 --> 0:41:37.080 Tech billionaire Peter tail used his Silicon pelling wealth and 0:41:37.120 --> 0:41:40.200 influence to help Donald Trump win his second presidency that 0:41:40.280 --> 0:41:43.359 could give him authority within the administration itself. For more, 0:41:43.360 --> 0:41:46.680 Bloomberg's Jamie Tarabay joins us now. Actually, the nuance to 0:41:46.719 --> 0:41:48.960 this is that he certainly leaned into Trump in the 0:41:49.000 --> 0:41:50.839 first before the first administration. 0:41:51.280 --> 0:41:52.680 In the second administration, he. 0:41:52.640 --> 0:41:55.640 Took a step back in terms of committing financially, we'd see, 0:41:55.719 --> 0:41:57.399 although he did say he was going to vote for Trump. 0:41:57.440 --> 0:42:00.239 And Jade Vance is a close ally. How what does 0:42:00.239 --> 0:42:01.120 this network. 0:42:00.800 --> 0:42:02.719 Sprawl within this new administration? 0:42:04.160 --> 0:42:06.120 Well, I mean, as you said, like pretty early on 0:42:06.200 --> 0:42:09.560 Peter thal had donated to conservative candidates. He very sort 0:42:09.560 --> 0:42:13.640 of famously surprised Silicon Valley. When he voted for and 0:42:13.640 --> 0:42:17.200 supported Donald Trump in the twenty sixteen presidential election, he 0:42:17.320 --> 0:42:20.520 spoke at the Republican National Convention and gave over a 0:42:20.560 --> 0:42:23.480 million dollars to Trump's campaigns, and when Trump won the 0:42:23.520 --> 0:42:26.880 first time around, Tiel was a member of the Executive 0:42:26.920 --> 0:42:29.719 Transition Committee, and two people who worked for him at 0:42:29.760 --> 0:42:32.480 thel Capital went on to have senior positions both at 0:42:32.480 --> 0:42:35.240 the National Security Council and also at the White House. 0:42:35.280 --> 0:42:38.520 This time around, people who are connected to Peter Theal, 0:42:38.680 --> 0:42:40.040 including Vice President J. D. 0:42:40.200 --> 0:42:41.080 Vance, who had. 0:42:40.960 --> 0:42:44.440 Worked at Mithril, a venture capital fund that theel co founded, 0:42:44.840 --> 0:42:48.880 have senior positions across the administration. Along with Vance, a 0:42:49.000 --> 0:42:51.799 former THEOD associate is number two at the Department of 0:42:51.800 --> 0:42:55.440 Health and Human Services. Another is Assistant to the President 0:42:55.560 --> 0:42:59.800 for Science and Technology. One is the ambassador to Denmark. 0:42:59.840 --> 0:43:02.360 And there are at least two who now hold senior 0:43:02.400 --> 0:43:05.959 positions at the Defense Department, which is a place where 0:43:05.960 --> 0:43:09.320 he and Elon Musk have several critical contracts with the government. 0:43:13.520 --> 0:43:16.480 Let's just talk a little bit more about the going 0:43:16.560 --> 0:43:18.440 forward and whether there's going to be proof in the 0:43:18.440 --> 0:43:21.280 pudding as to whether or not he is benefiting personally 0:43:21.360 --> 0:43:23.239 because we already know a lot of the companies he 0:43:23.239 --> 0:43:25.480 helped co founder and Leeds fund have started to win 0:43:25.520 --> 0:43:26.600 some pretty big contracts. 0:43:27.400 --> 0:43:27.879 That's right. 0:43:27.960 --> 0:43:31.400 I mean theal is an investor in several of Musk's companies, 0:43:31.440 --> 0:43:35.359 including SpaceX, Neurlink, and Boring. And I'm going to read 0:43:35.400 --> 0:43:39.280 off my paper for a moment because once Trump was elected, 0:43:39.360 --> 0:43:43.879 Palenteer stock. Palenteer is Theel's company. The stock soared more 0:43:43.920 --> 0:43:48.320 than ninety percent in February. And Real Industries, a defense 0:43:48.360 --> 0:43:52.280 tech startup which is backed by Field's founder's fund, landed 0:43:52.320 --> 0:43:55.560 an expanded role so with the US Army that was 0:43:55.640 --> 0:43:58.480 valued at more than twenty billion. And then scale AI, 0:43:58.680 --> 0:44:02.040 another founder's funds company, just signed a major deal with 0:44:02.040 --> 0:44:03.080 the Defense Department. 0:44:04.000 --> 0:44:05.839 Jamie Tarabey, it's an amazing read. 0:44:06.040 --> 0:44:08.200 It's succinct to the point I urge people to go 0:44:08.200 --> 0:44:09.640 and find it on the terminal or online. 0:44:09.680 --> 0:44:10.400 Thanks so much. 0:44:10.640 --> 0:44:13.759 Meanwhile, we want to check it on the markets once again. Look, 0:44:13.800 --> 0:44:15.440 we've seen a sell off that's seen the NASAK one 0:44:15.480 --> 0:44:17.960 hundred in a correction, territory in videos wiped off one 0:44:18.040 --> 0:44:20.080 trillion dollars of its market cap, and now Tesla has 0:44:20.239 --> 0:44:23.200 raised all of its election rally. We're down forty eight 0:44:23.239 --> 0:44:26.120 percent from its record high, with down another four percent 0:44:26.160 --> 0:44:26.640 on the day. 0:44:27.920 --> 0:44:30.000 Plenty to be digesting as we go into this weekend. 0:44:30.000 --> 0:44:32.560 People again not wanting to be long tech or indeed 0:44:32.560 --> 0:44:34.719 the market more generally. But that does it for this 0:44:34.840 --> 0:44:36.560 edition of Bluebig Technology. You don't want to forget to 0:44:36.640 --> 0:44:38.080 check out our podcast. You can find it on the 0:44:38.120 --> 0:44:40.920 terminal as well as online on Apple, Spotify, and iHeart 0:44:41.040 --> 0:44:48.440 This is Blue Meg Technology.