Speaker 1: From the heart of where innovation, money and power collide
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Caroline Hyde and Ed Ludlow.
Speaker 2: Live from New York and Caroline Hyde and I'm Jackie
Speaker 2: Devalas in Washington.
Speaker 3: This is Bloomberg Technology coming up.
Speaker 4: Crypto leaders flock to DC for the White House's Crypto Summit.
Speaker 4: Missus Trump signs his Bitcoin Reserve Executive Order White House
Speaker 4: AI and cryptozar David Sachs joins us to discuss plus
Speaker 4: AI spending still going strong. Broadcom shares rise after the
Speaker 4: company gave an upbeat forecast, with AI demanding key driver
Speaker 4: in its first quarter, and Hpe also out with earnings,
Speaker 4: but they send ches tumbling as profits a road in
Speaker 4: part due to tariffs with the CEO Antonio Nary but
Speaker 4: first breaking news but moments ago. Russia is willing to
Speaker 4: discuss a potential truth with Ukraine, but it is with conditions,
Speaker 4: willing to discuss a temporary truce if those progress towards
Speaker 4: a final peace settlement. Let's get straight out to Kaylee lines,
Speaker 4: what's the nuance here?
Speaker 5: Well, Caroline Bloomberg did just break the story, citing sources
Speaker 5: familiar with the matter, but I would point out that
Speaker 5: this is something that Russia apparently presented to the US
Speaker 5: at talks in Saudi Arabia that happened last month, a
Speaker 5: suggestion that yes, they are willing to agree to a
Speaker 5: temporary truce, provided that there is an effort toward a
Speaker 5: peace deal that Russia like. Specifically, what Russia has asked
Speaker 5: to the United States is clear guidance on what the
Speaker 5: parameters of peace would look like, specifically what a peacekeeping
Speaker 5: mission in Ukraine would constitute.
Speaker 6: US.
Speaker 5: Russia has rejected the presence of NATO troops on Ukrainian soil.
Speaker 5: That would be complicating for the idea that France and
Speaker 5: uk for example, would be providing troops for that peacekeeping mission,
Speaker 5: the so called Coalition of the Willing we have heard
Speaker 5: European leaders talking about in recent weeks.
Speaker 3: Russia does not like that idea.
Speaker 5: They would they'll be open to a country like China
Speaker 5: providing a peace keeping force. So it's unclear whether or
Speaker 5: not that is something Ukraine would agree to. We should
Speaker 5: keep in mind that this news is breaking as we
Speaker 5: are expecting next week senior US officials, including the Secretary
Speaker 5: of State Marco Rubio, the National Security Advisor Mike Waltz,
Speaker 5: as well as Special Envoy Steve Whitcoff to be meeting
Speaker 5: with There are Ukrainian counterparts in Saudi Arabia four additional
Speaker 5: talks toward pieces. The US is still continuing to push
Speaker 5: for a deal.
Speaker 4: Kae lines with a wrap, We thank you. Let's just
Speaker 4: take a quick look at the markets and reaction to this.
Speaker 4: They do bounce off of their lows. Nevertheless, we are
Speaker 4: having a torrid time and then as that one hundred
Speaker 4: to one point heading correction territory, we're down more than
Speaker 4: ten percent from previous highs.
Speaker 3: This is we see three straight weeks of.
Speaker 4: Declines for the tech benchmark, the longest losing streak since August.
Speaker 4: We're off by more than four percent over the last
Speaker 4: five training days. And this is anxiety grows regarding Chinese
Speaker 4: AI models. Well, that means for compute demand, what it
Speaker 4: means overall for me selling your winners into an economy
Speaker 4: that could potentially be.
Speaker 3: Slowing on the back of taris.
Speaker 4: Move on to what's happening in the world of crypto, though,
Speaker 4: because so much to delve into.
Speaker 3: When it comes to the.
Speaker 4: Latest executive order, we're off by one point eight percent
Speaker 4: on the day. We're at eighty eight thousand, but remember
Speaker 4: we're still well higher than the sixty seven thousand dollars
Speaker 4: level we were at when the presidential election occurred.
Speaker 3: All of this as many anticipate that.
Speaker 4: Such regulations will become more pro crypto, and we see
Speaker 4: that executive order signed last night with a reserve for bitcoin.
Speaker 4: We're now pleased to be welcoming to our TV and
Speaker 4: radio audiences around the world, someone who can dive into
Speaker 4: this exact executive order. We bring in the White House
Speaker 4: AI and cryptos are David Sachs.
Speaker 3: It's busy. You're about to.
Speaker 4: Expect yet more people coming to the White House from
Speaker 4: the cryptosphere. Remind the American public and investors why you
Speaker 4: need a bitcoin reserve at all?
Speaker 7: Well, good to be here, I mean, the reason why
Speaker 7: we need a bitcoin reserve is that the federal government
Speaker 7: already owns some. In fact, it obtained around four hundred
Speaker 7: thousand bitcoin over the past decade through criminal and civil
Speaker 7: forfeitures and seizures, and so the government has to have
Speaker 7: a strategy for how it deals with this. In the past,
Speaker 7: the strategy has been simply to sell it in an
Speaker 7: ad hoc way almost willy nilly, and that cost American
Speaker 7: taxpayer something like seventeen.
Speaker 8: Billion dollars in lost value.
Speaker 7: So we want to have a long term strategy to
Speaker 7: maximize the value these holdings. We've decided that that bitcoin
Speaker 7: is scarce, it's valuable, and that is strategic for the
Speaker 7: United States to hold on.
Speaker 8: To this as a long term reserve asset.
Speaker 7: So that's the plan with the two hundred thousand bitcoin
Speaker 7: that we believe are in the possession of the federal government.
Speaker 7: I say we believe because no one really knows for
Speaker 7: sure because we never had a proper audit. So that's
Speaker 7: one of the first things that this executive order provides
Speaker 7: that we're going to do a full government wide audit
Speaker 7: to find out what digital assets we actually have so
Speaker 7: they can be safeguarded and moved into a strategy that
Speaker 7: maximizes their long term value.
Speaker 2: Right.
Speaker 3: And then there's a stockpile.
Speaker 4: Told us about the nuance there and why you need
Speaker 4: to stockpile for old coins and how you're treating them differently.
Speaker 8: Right.
Speaker 7: Well, the idea there is, again, we're going to figure
Speaker 7: out what we actually have on the federal ballot sheet,
Speaker 7: and we're going to move those Like you said, all
Speaker 7: coins are digital assets other than bitcoin, into a stockpile
Speaker 7: for safekeeping. The difference there is that the Secretary of
Speaker 7: the Treasury will exercise responsible stewardship over those assets, and
Speaker 7: he has the discretion to rebalance the portfolio or to
Speaker 7: sell items in that portfolio. But that's not true for bitcoin.
Speaker 7: The bitcoin we want to keep long term, So there's
Speaker 7: a difference there in objective. With the reserve, the goal
Speaker 7: is long term preservation. With the stockpile, the goal is
Speaker 7: responsible stewardship portfolio management.
Speaker 2: In essence, David, the executive order also tasks Secretary Lutnik
Speaker 2: Investment with finding budget neutral ways that won't cost the
Speaker 2: taxpayer to add to that reserve. What call fies as
Speaker 2: budget neutral. Can you give us some examples of how
Speaker 2: that would actually work well?
Speaker 7: Budget neutral this means it won't cost the taxpayer or anything,
Speaker 7: It won't increase the deficit, it won't increase the debt.
Speaker 7: So that's basically the constraints on what they can do.
Speaker 7: If they can figure out creative ways to add to
Speaker 7: the stock to the reserve of bitcoin, they're allowed to
Speaker 7: accumulate more bitcoin, but again it cannot impose any burden
Speaker 7: on the federal deficit, debt or the taxpayer.
Speaker 8: So that's the rule.
Speaker 7: Now you can ask the question, well, how are they
Speaker 7: going to do that? And I think that's sort of
Speaker 7: up to them if they can figure out creative strategies
Speaker 7: that they believe are in the long term insto of
Speaker 7: the country. They now have the authorization to develop those strategies.
Speaker 2: Do you think using savings that come from DOZE, for example,
Speaker 2: qualify is something that would be budget neutral?
Speaker 8: That's a good question. I don't know the answer to
Speaker 8: that question.
Speaker 7: I think that that's something that I have to be
Speaker 7: assessed by probably the Office of Management and Budget. I
Speaker 7: think that since DOZE is cutting the deficit that and
Speaker 7: we'd want to seek a way to rescind those appropriations,
Speaker 7: it probably would not count.
Speaker 8: But you probably have to ask the O and B that.
Speaker 4: When you talk about the stewardship, particularly the stockpile, could
Speaker 4: you be seeing things like staking lending. Is there going
Speaker 4: to be other ways to maximize the volume there?
Speaker 8: I mean, it's a good question.
Speaker 7: I mean, you know, I think that the idea of
Speaker 7: this executive order is to create the mandate. Right, So
Speaker 7: first of all, we're going to move these digital assets
Speaker 7: from wherever they are all over the government. We're going
Speaker 7: to find out what they are. First of all, we're
Speaker 7: going to do the account and we're going to do
Speaker 7: the audit. Then we're going to move them into a
Speaker 7: separate account for safekeeping. And then the Sectary of the
Speaker 7: Treasury and his team will be able to exercise portfolio
Speaker 7: management and long term and responsible stewardship. And yes, that
Speaker 7: could include staking, it could include rebalancing, it could include sales.
Speaker 7: These are all options that they can pursue if the
Speaker 7: Secuary of the Treasury believes that these are in the
Speaker 7: long term interests of the American people.
Speaker 4: Just going into what's in the holding of the US government.
Speaker 4: Going back to President Trump mentioned over the weekend talking
Speaker 4: of Ripple, Solana, other alternative coins that people are wondering
Speaker 4: whether they're going to be included in this stock pile.
Speaker 4: Will they does the US own them? Why mention them
Speaker 4: by the president?
Speaker 7: Well, the President has mentioned the top five cryptocurrencies by
Speaker 7: market cap, So I think people are just reading into
Speaker 7: this a little bit too much. He just mentioned the
Speaker 7: top five. In terms of what we'll actually have. Again,
Speaker 7: we have to do the accounting we're not sure at
Speaker 7: sitting here today whether the federal government owns any of
Speaker 7: these alternative cryptocurrencies. We know it owns bitcoin. I believe
Speaker 7: it owns some ethereum. I'm not sure about the other ones.
Speaker 7: This is why we have to do the accounting. Is that,
Speaker 7: to be honest, no one's been able to give us
Speaker 7: a straight answer yet in terms of what the federal
Speaker 7: government owns. And this is part of the problem, is
Speaker 7: that we've never really had a digital asset strategy before,
Speaker 7: and this is why we've missed out on accumulating a
Speaker 7: lot of value for the American people.
Speaker 2: David, you mentioned earlier that you know, you don't have
Speaker 2: any additional cryptocurrency anywhere you've divested from your interests there. However,
Speaker 2: Secretary Lutnik in July mentioned that he had quote a
Speaker 2: shedload of bitcoin. Do you think it's important for these
Speaker 2: stewards of the Reserve and the stockpile to divest from
Speaker 2: their cryptocurrency interests?
Speaker 3: Do you know if they've done so already.
Speaker 8: I can't speak to a situation.
Speaker 7: You know, every member of the administration has to go
Speaker 7: through the same ethics process and the same conflict of
Speaker 7: interest process that I've gone through, so I'll let him
Speaker 7: speak to his own situation. I can to say that
Speaker 7: in my case, I divested or sold all the cryptocurrency
Speaker 7: that I own prior to the start of the administration,
Speaker 7: so there's no conflict in my case, I just want
Speaker 7: to have the right innovation policies for the United States.
Speaker 2: Do you think it's important, though, to just not have
Speaker 2: that appearance of a conflict of interest?
Speaker 8: Sure?
Speaker 7: I mean, look, we're all subject to eighteen USC.
Speaker 8: Two eight.
Speaker 7: These are the conflict of interest provisions every remember, the
Speaker 7: administration is subject to that can to speak to anyone's situation,
Speaker 7: so we all are governed by the same conflict of
Speaker 7: interest rules. In my case, I chose to divest everything.
Speaker 7: To make it really simple, you should ask every other
Speaker 7: member of the administration what their situation is.
Speaker 4: How about the president, because I think here in lies
Speaker 4: some of the issues for those who are on the
Speaker 4: outside of crypto looking in and suddenly feel that the
Speaker 4: US president has an exposure to mean.
Speaker 3: Coins or solana. How do you give the confidence.
Speaker 4: To the US investor base and indeed US population that
Speaker 4: this is totally.
Speaker 7: Legit Well, honestly, I think you're kind of making something
Speaker 7: up there. I mean, how do you know that he
Speaker 7: has exposure to Salona? Is that's something you just came
Speaker 7: up with.
Speaker 4: Well, ultimately, when we think about the mean coin exposure
Speaker 4: in particular, and people trying to understand for what reason
Speaker 4: we have a Trump coin or Milania coin, is there
Speaker 4: a clearer way that the US president can disassociate himself
Speaker 4: from any event upside when it comes to cryptocurrencies.
Speaker 7: Well, I think he's already spoke to the to the
Speaker 7: Trump coin, and I think that that is a collectible.
Speaker 7: The SEC said it's a collectible. Collectibles have no intrinsic value,
Speaker 7: they're not security. Is there in a different category, And
Speaker 7: I think as long as you issue a mean coin
Speaker 7: and disclaim that there's no intrinsic value, it can just
Speaker 7: be a collectible. So that is a different category, I
Speaker 7: think than what we're talking about here with cryptocurrencies.
Speaker 3: What do you make of some of the market reaction.
Speaker 2: I mean, clearly Bitcoin down later earlier today on the
Speaker 2: back of just not really getting what they were hoping for.
Speaker 2: You know, if the government is not going to buy
Speaker 2: additional crypto, then what's really the benefit. But can you
Speaker 2: say for sure that the administration is not open to
Speaker 2: using taxpayer dollars in the future.
Speaker 3: Is that completely off.
Speaker 8: The table according to this EO?
Speaker 6: It is.
Speaker 7: We've said that this will not cost taxpayers a dime.
Speaker 7: So we've been very clear in this executive Order that
Speaker 7: we will not use taxpayer funds to basically accumulate more
Speaker 7: crypto unless it can be done in a completely budget
Speaker 7: neutral way. No increase the deaf sit, no increase in
Speaker 7: the debt, no use of taxpayer funds, no burden on
Speaker 7: the taxpayer. We've been very clear in this executive Order
Speaker 7: about that.
Speaker 2: David, Let's move on to artificial intelligence, where you're also
Speaker 2: weighing in on policy there. The Biden executive Order was
Speaker 2: repealed in January. What is in the works currently that
Speaker 2: you can share about how that's looking and who's involved.
Speaker 7: So the president is week one executive order on AI
Speaker 7: that rescinded the Biden EO. By the way, that was
Speaker 7: a very burdensome executive order that Biden had passed, those
Speaker 7: over one hundred pages of burn some regulations on AI companies.
Speaker 8: The whole industry hated it.
Speaker 7: He rescinded that, and he tasked three people to basically
Speaker 7: evaluate a new and create a new AI action plan,
Speaker 7: and those people are the head of the Office of
Speaker 7: Science Technology Policy, the now Security Advisor, myself, and so
Speaker 7: we're currently working on that plan and we'll have more
Speaker 7: information for you about that once we're ready to present.
Speaker 4: How confident are you at this moment around AI leadership
Speaker 4: here in the United State? Dates that thick and fast,
Speaker 4: the news coming out of China, for example, of the
Speaker 4: latest models that are incredibly powerful with less data and
Speaker 4: ultimately more efficient. How are you exercising the view that
Speaker 4: AI can be still a leader for the United States
Speaker 4: and not losing its leadership versus China.
Speaker 7: Well, I'm confident in American leadership, but we can't be
Speaker 7: complacent about it. I mean, it's very clear that China
Speaker 7: is going to be very very competitive. Something like roughly
Speaker 7: half of the AI researchers in the world are from China.
Speaker 7: They are very good at math and science, and you've
Speaker 7: seen with the launch of deep Seek that they're very good.
Speaker 7: They're very good AI software companies. So this is going
Speaker 7: to be a very competitive race, and we have to
Speaker 7: win that race, but we can't be complacent about that
Speaker 7: in any way.
Speaker 8: It's going to be a very tough competition here.
Speaker 4: There's actually reporting from other news sources that maybe deep
Speaker 4: seat would be bad from apps here in the United States.
Speaker 3: Do you think that's appropriate.
Speaker 7: It's pretty maature for me to comment on something like that.
Speaker 7: If the administration announces a policy on that, then I'll
Speaker 7: comment on it.
Speaker 2: Then let's talk about some of the other voices inside
Speaker 2: the White House as of late that could potentially chime
Speaker 2: in on AI policy. Elon Musk is he involved in
Speaker 2: any capacity.
Speaker 8: Not in what we're doing.
Speaker 7: So you know, again, we have an office within the
Speaker 7: White House and we deal with crypto and AI policy.
Speaker 7: Elon's doing DOGE and these are two totally separate initiatives.
Speaker 2: But let's talk a little bit more about what the
Speaker 2: contours of the AI policy could look like. I realize
Speaker 2: you can't share too much at the moment, but what
Speaker 2: will be your priority areas? A lot of the talk
Speaker 2: has been around AI competitiveness and what we've seen coming
Speaker 2: out of Trump's President Trump's comments around the Chips Act
Speaker 2: and then National Science Foundation layoffs.
Speaker 3: There is some concern that this.
Speaker 2: Could undermine competitiveness if there's not enough federal funding going
Speaker 2: to research.
Speaker 3: What are your thoughts on that?
Speaker 7: Well, I think there are some items that are policy
Speaker 7: items that are coming up very quickly. So, for example,
Speaker 7: there was this eleventh hour policy that was announced by
Speaker 7: or rule that was now called the Diffusion Rule, that
Speaker 7: was announced by the Biden administration, and that governs the
Speaker 7: sale of advanced AI chips or GPUs to countries all
Speaker 7: across the world. They're basically an international version of the
Speaker 7: export controls. There's one hundred and twenty day clock on
Speaker 7: that in order for the Trump administration to weigh in
Speaker 7: and make whatever modifications we want to make. So, for example,
Speaker 7: I think that's probably going to be one of the
Speaker 7: first policy items on our plate that we have to
Speaker 7: address because there's a clock on it. So I think that,
Speaker 7: you know, export controls are a big area, Diffusion is
Speaker 7: a big area. Just the you know, how we govern
Speaker 7: the licensing of the most sophisticated chips and semiconductor manufacturing
Speaker 7: equipment is sort of at the heart of the policy
Speaker 7: discussion right now.
Speaker 4: Would you ultimately be supporting an end to the chipsacked.
Speaker 7: I don't think that anyone in the administration has said
Speaker 7: we want to end it, but the President has been
Speaker 7: very critical of it, and I think with good reason.
Speaker 7: I mean, I think the intent of the Chips Act
Speaker 7: was good. We were trying to get semicon manufacturing to
Speaker 7: occur in the United.
Speaker 8: States because's so strategic.
Speaker 7: The problem is that the money went to, frankly, a
Speaker 7: lot of companies who are losing in that very competitive market.
Speaker 7: And some of those companies haven't even used the money
Speaker 7: they were granted because they're not doing very well. So
Speaker 7: the Chips Act had I think, mixed results at a
Speaker 7: high cost, and the question is just whether we can
Speaker 7: do something much better. And I think what the President
Speaker 7: has said is that he would like to use terrorists
Speaker 7: as an incentive to get companies to onshore their semiconductor
Speaker 7: manufacturing here. And the advantage of that approach is that
Speaker 7: the best companies have to do it too. They can't
Speaker 7: kind of drag their feet or they're going to be
Speaker 7: hit with terrorists. So I think the President has figured
Speaker 7: out a very powerful weapon, a very powerful incentive to
Speaker 7: get the best companies to want to onshore their manufacturing,
Speaker 7: including for semi conductors, and that is very strategic for
Speaker 7: the United States.
Speaker 4: TSMC putting money where its mouth is and potentially in
Speaker 4: response to tariff concerns for you right when.
Speaker 7: You saw that yet, sorry you mentioned t SMC. I
Speaker 7: think it's a very good point. We did a press
Speaker 7: conference with them just earlier in the week and they
Speaker 7: announced over one hundred billion dollar investment in the US
Speaker 7: and a big part of the reason why is because
Speaker 7: of the President's Tariff's policies give them a strong incentive
Speaker 7: to want to move some manufacturing here because they know
Speaker 7: that if they don't do that, they're going to be
Speaker 7: here with the tariff.
Speaker 3: With forty five seconds.
Speaker 4: They've got to ask you, therefore, should Intel not be
Speaker 4: getting the money? Is that the company you're hinting at.
Speaker 7: I'm not saying they shouldn't get it, but I think
Speaker 7: that everyone knows that Intel's a very challenged company right now,
Speaker 7: and I think that it's unfortunately.
Speaker 8: We want Intel to do well.
Speaker 7: We want domestic chip manufacturing, and Intel is a legendary
Speaker 7: company and it is one of the few companies in
Speaker 7: the United States that's capable of doing advanced chip manufacturing.
Speaker 7: So we want them to do well, and I think
Speaker 7: we will try to do whatever we can to help
Speaker 7: them do well well.
Speaker 4: You're going to be speaking with lots of leaders from
Speaker 4: other companies today of course over at the White House,
Speaker 4: leaders of crypto exchanges across the ball, we thank you
Speaker 4: so much. The White House AI and cryptos are David Sachs.
Speaker 4: Ahead of that one important White House crypto meeting coming
Speaker 4: up first though, Braallcom shares they jump following its earnings
Speaker 4: and not beat forecasts full by AI demand details.
Speaker 3: Next, this is blue Meg Technology.
Speaker 2: Let's take a look at Broadcom shares. This after the
Speaker 2: company gave an upbeat forecast driven by strong spending on
Speaker 2: AI computing, shares are down by about three percent. Joanne Feene,
Speaker 2: partner at Advisor's Capital Management, joins us.
Speaker 3: Now for more.
Speaker 2: What a roller coaster it's been so far for the
Speaker 2: chip makers this week other infrastructure players as well. Is
Speaker 2: the market telling us something more about the fundamentals? Is
Speaker 2: it a short term blip or a fundamentals okay at
Speaker 2: this point?
Speaker 9: Yeah, Hey, Jackie, you know the surgeon in Broadcom shares
Speaker 9: after they reported in December, right, obviously I really boosted
Speaker 9: the stock. It's come down a year to date about
Speaker 9: twenty five or so percent. But last night's report was
Speaker 9: very impressive. Not only did the beat the numbers that
Speaker 9: came in with better guidance than expected, and more importantly
Speaker 9: not in their guidance are two new partners for the
Speaker 9: development of custom AI solutions, including chips and networking solutions.
Speaker 9: And so their sixty to ninety billion dollars outlook for
Speaker 9: fiscal twenty seven for the AI business, and by the way,
Speaker 9: it's only at a pace of about twenty million this
Speaker 9: year billions, So it's a really startling opportunity that the
Speaker 9: company has ahead of it. And remember that they see
Speaker 9: the road mass of their partners and their customers, so
Speaker 9: they have an awful lot of visibility. I think it
Speaker 9: did reassure investors somewhat and that's why the stock is
Speaker 9: up today.
Speaker 4: Is it there, fool still enough to shake off the
Speaker 4: overall anxiety surrounding Generator AI, the opportunity that these companies have,
Speaker 4: and ultimately how profitable it will be for them.
Speaker 9: Yeah, it's unclear what's causing the pullback here. I think
Speaker 9: there are a lot of moving parts in investors' minds
Speaker 9: right now. You know, one of them is just the
Speaker 9: general level of policy uncertainty, whether it's terrorists or government
Speaker 9: shutdown or geopolitical that is causing a little bit of
Speaker 9: a risk off trade across the board the Deep Seek
Speaker 9: Information you know announcement back at the beginning of the year.
Speaker 9: It certainly caused some to question how much we needed
Speaker 9: the most advanced chips. But what Hocktan CEO said last
Speaker 9: night was really informative. He said that customers are demanding
Speaker 9: more and more powerful solutions. They're clearly not running away
Speaker 9: from having the best hardware to run their AI models,
Speaker 9: both training, pre training, post training and inference. And again
Speaker 9: he sees the roadmaps for years out. So I think
Speaker 9: that investors are, you know, unfortunately taking the raw long
Speaker 9: idea out of the Deep Seek situation and inferring that
Speaker 9: for some reason, hyperscalers and others that want to use
Speaker 9: AM models are somehow going to say, oh, we don't
Speaker 9: need all that computing power. They clearly want that. According
Speaker 9: to what a broadcom is saying.
Speaker 4: The twenty percent sell off that we've seen in broadcom
Speaker 4: shares since the start of the year, though ultimately what
Speaker 4: shakes that off is this the right time to be
Speaker 4: buying a broadcom if it's ultimately going to be a winner?
Speaker 9: Yeah, Caroline, you know, a lot of times market sentiment
Speaker 9: again a risk off trade. People pull back from their winners.
Speaker 9: They diversify, and that's a good thing people. You know,
Speaker 9: investors should be diversified.
Speaker 8: What will probably.
Speaker 9: Turn this around is more and more of these kinds
Speaker 9: of reports, and not just from Broadcom, from other companies.
Speaker 9: You know, we've owned Broadcom for clients since it was
Speaker 9: called Avago ten years ago, and we've ridden through some
Speaker 9: of these pullbacks before. But ultimately, you know, a company
Speaker 9: like this, you want to have a long term view.
Speaker 9: You want to be able to ride it out during
Speaker 9: the times when it does pull back, because you just
Speaker 9: don't know when sentiment is going to change. To your question,
Speaker 9: we don't know when investors might decide, you know what,
Speaker 9: we want to own companies that are going to provide
Speaker 9: really long term, solid year after year growth, and those
Speaker 9: are hard to find, particularly in an environment where policy
Speaker 9: uncertainty that they affect other sectors of the economy could
Speaker 9: be so confounding. Here's one area where we think the
Speaker 9: growth is solid and will be relatively impervious to a
Speaker 9: lot of the politics that we're seeing out there.
Speaker 2: That's incredible, you say that, Johan, because so much of
Speaker 2: the market jitters that we've seen this week have directly
Speaker 2: been correlated to some of the trade tensions that are
Speaker 2: really escalating as of late, tariffs being mentioned in HPES
Speaker 2: earnings as a potential a detractor for their outlook going forward.
Speaker 2: Why is Broadcom more insulated perhaps from that volatility and
Speaker 2: what other players in this space could perhaps kind of
Speaker 2: see themselves a little bit more protected from that volatility.
Speaker 9: Yeah, Jackie, so they're not, you know, Broadcom certainly is
Speaker 9: vulnerable to tearffs on imports of chips. They don't, you know,
Speaker 9: manufacture many of the chips themselves, and most advanced ships
Speaker 9: are manufactured abroad, but in Taiwan. And obviously there's some
Speaker 9: question about the Taiwan situation, and so you know, any
Speaker 9: political news there, you know, could disturb the shares. It's
Speaker 9: good to see that Taiwan Semi is bringing more manufacturing
Speaker 9: here to the US. That will help buffer that kind
Speaker 9: of risk. I mean, other companies that are more reliant
Speaker 9: in their sales on just chips are going to be
Speaker 9: more impacted by the tariff talk. Notice though, that Broadcom
Speaker 9: is more diversified. They have a software business which is
Speaker 9: substantial and is improving in its reach into customers and
Speaker 9: its margins, et cetera. And they have other areas of
Speaker 9: the business. You know, Kila Packard Enterprise is being hurt
Speaker 9: particularly because they you know, they have built you know,
Speaker 9: their systems in China, so they're going to be particularly vulnerable.
Speaker 9: And also there seem to have been some execution problems
Speaker 9: over there. So you know, that's a very different, much
Speaker 9: more narrow company relative to a so an investor that
Speaker 9: owns Broadcom owns something that's diversified and that helps them
Speaker 9: write out you know, some of these other political ristic
Speaker 9: companies will be more hurt by.
Speaker 2: It's Joey and Feenie from Advisor's Capital Management. Thanks so
Speaker 2: much for joining us.
Speaker 3: Welcome back to Blue Med Technology. I'm Caroline Hide in
Speaker 3: New York and I'm Jack Devalas in Washington.
Speaker 4: Quick check on these markets, because at one point we
Speaker 4: hit a technical correction.
Speaker 3: On the Nasdaq one hundred.
Speaker 4: We're by more than five percent as you see over
Speaker 4: the course of the five trading days, and in fact,
Speaker 4: we've had our longest weekly losing street in this particular
Speaker 4: benchmark going back to August of last year. What drags
Speaker 4: us lower anxieties around China and it performance with generator
Speaker 4: of AI anxieties around tarifs anxieties around just selling your
Speaker 4: winners because maybe we have an economic slowdown at this point.
Speaker 4: We're seeing on the higher side on a daily perspective
Speaker 4: from the points perspective is Apple and of course Broadcom
Speaker 4: with its numbers doing better than Anticipator.
Speaker 3: But on the.
Speaker 4: Downside, basically all the key magnificence names at the moment, Jockie,
Speaker 4: so keep an eye on what's happening, were broadly with
Speaker 4: an US DOT one hundred.
Speaker 2: Let's talk about how those markets are reacting to this
Speaker 2: week's news. We're joined by Martin Norton, chief investment strategist
Speaker 2: for Empower. As Caroline just teed up, there there's a
Speaker 2: lot here that markets are grappling with. What would you
Speaker 2: say is truly driving this negativity we're seeing in tech stocks.
Speaker 10: I mean, the key word that jumps out to me
Speaker 10: and Caroline's comments is just anxiety. We're seeing so much anxiety,
Speaker 10: of course around the tech narrative that began with deep
Speaker 10: Seek and has continued as we continue to see competition
Speaker 10: coming out of China. But it's also related to the
Speaker 10: tariff question, and I think when we're thinking about tariffs,
Speaker 10: we have to acknowledge the fact that This is an area,
Speaker 10: you know, AI generally where there's a lot of emphasis
Speaker 10: on US becoming a superpower, and so that should have
Speaker 10: some insulation when we think about how the Trump administration
Speaker 10: is going to approach coach the semiconductor space and the
Speaker 10: technology space broadly. At the same time, there's a lot
Speaker 10: of rumblings around the types of tariffs that we could
Speaker 10: see on semiconductor's real pressure to build here in the US.
Speaker 10: And I think when we think about all of these
Speaker 10: different anxieties, from questions on global competition to questions around tariffs,
Speaker 10: we have to remember the contexts that we're in and
Speaker 10: the valuations that we saw at the start of the year.
Speaker 10: There was just no room for disappointment or uncertainty, and
Speaker 10: I think it's that setup that creates the sell off
Speaker 10: that we're seeing today.
Speaker 2: In many ways, investors have gotten what they wanted. Hyperscalers
Speaker 2: still plan to invest in more infrastructure. President Trump has
Speaker 2: been supportive bringing in more commitments, and you also have
Speaker 2: demand holding up. But when we respect to China as
Speaker 2: a competitor, we're not going to stop seeing new models
Speaker 2: coming out of there. What is it going to take
Speaker 2: for tech stocks to really get the boost that they
Speaker 2: were getting four or are those days pretty much over?
Speaker 10: Well my inclination right now, you know, as we think
Speaker 10: about the CAPEC story and we think about the spending
Speaker 10: from hyperscalers, that expectation of the hyperscaler demand is in
Speaker 10: the prices right now. You know, the kind of the
Speaker 10: infrastructure build is in the prices. And I think what
Speaker 10: we'll have to see when it comes to technology and
Speaker 10: a renewed strength and performance is really that pivot from
Speaker 10: building the infrastructure to seeing the demand. And we see
Speaker 10: that dichotomy so far in market movement thus far in
Speaker 10: twenty twenty five. So for example, Meta has had a
Speaker 10: very different run than some of these other players, and
Speaker 10: one of the explanations could be the way that they've
Speaker 10: been able to integrate AI and you know, take advantage
Speaker 10: of AI on the revenue side. And so I think
Speaker 10: it's that revenue narrative that's really the act too of
Speaker 10: this AI play, and we really need to move to
Speaker 10: that act too, and my estimation for us to see
Speaker 10: prices move higher from here the act too.
Speaker 4: We had other investors or indeed market participants come on
Speaker 4: and say act too really gets reignited as when in
Speaker 4: videos GPUs. The latest Blackwell chipsets are flying off the shelves.
Speaker 3: We really see the proof in them being.
Speaker 4: Sold and used and ultimately that will kickstart once again
Speaker 4: the growth in this industry. Are you anticipating it being
Speaker 4: a second half kind of a pivot point?
Speaker 10: It seems like there's room for the narrative to shift
Speaker 10: in the second half. I think the timing, though, is
Speaker 10: particularly tricky. We have some sense of that from kind
Speaker 10: of expectations around Blackwell, but in terms of broad use
Speaker 10: case of AI, corporate spending on AI, I think that
Speaker 10: timing is especially tricky in this environment, in particular, as
Speaker 10: we think about in an environment where there may be
Speaker 10: a hesitancy on corporations to really extend into long term
Speaker 10: investment opportunities that could potentially pull back demand for some
Speaker 10: of the AI applications that we'd really like to see
Speaker 10: be part of that act to and that makes the
Speaker 10: timing maybe a little bit more in question than we
Speaker 10: would otherwise like. And perhaps it's that uncertainty that is
Speaker 10: also helping drive prices lower and is.
Speaker 3: So unstee then should people sit on the hands.
Speaker 10: Well, I'm looking at this, you know, as I'm looking
Speaker 10: at valuations and expecting this sell off to really show
Speaker 10: up in valuations. But if I'm looking at technology broadly,
Speaker 10: the sector still looks on a historical basis to be
Speaker 10: in one of the more expensive death styles from a
Speaker 10: price to expected earning standpoint. So though we've had this
Speaker 10: sell off, we haven't seen valuations move that much. I
Speaker 10: wouldn't consider it now to be a time to be
Speaker 10: selling technology. But to me, it's more of a hold
Speaker 10: environment if it sized appropriately in a portfolio to hang
Speaker 10: on to it, But it's not necessarily a buying opportunity now.
Speaker 10: I think we'll really have to see a little bit
Speaker 10: more froth come out of those valuations to make a
Speaker 10: really justifiable argument to move in.
Speaker 3: Martin.
Speaker 2: One of the other things that we're seeing now is
Speaker 2: perhaps more discernment among investors for companies that aren't as diversified.
Speaker 2: Do you see that's going to be a longer lasting trend.
Speaker 3: That's a possibility.
Speaker 10: I mean a related topic that is, of course, tap
Speaker 10: of mind for people is moving from the pigs and
Speaker 10: shovels to those who are putting AI to use in
Speaker 10: their businesses and softwares in the like. I think in
Speaker 10: this environment that uncertainty is going to cast kind of
Speaker 10: a shadow over that play as well. But to the
Speaker 10: extent that valuations are more approachable, I don't know if
Speaker 10: that's a bad decision to have some of that exposure
Speaker 10: in the portfolios as well.
Speaker 4: We want to thank you as always for joining the
Speaker 4: show and Powers chief investment strategist Smart and Naughton.
Speaker 3: Great to catch up. Happy weekend.
Speaker 4: Let's return to the world of crypto and prices ahead
Speaker 4: of the White House Summit on digital assets.
Speaker 3: We're currently off by.
Speaker 4: Two point six percent on the day for bitcoin. There's
Speaker 4: a little bit of sort of buy the room of
Speaker 4: sell the news when it comes to a bitcoin reserve.
Speaker 4: Perhaps many wondering whether potentially, instead of just holding on
Speaker 4: to US assets and not selling them, it could have
Speaker 4: been more buying and that doesn't seem to be the
Speaker 4: case for now at least.
Speaker 3: Let's stick into.
Speaker 4: All of this what we can anticipate more broadly across
Speaker 4: the industry, and we're please we welcome Lizziang, head of
Speaker 4: Growth at a ZY and Many A Crypto Leader Thought
Speaker 4: Leader CEO is going to the White House today to
Speaker 4: talk about what regulations could look like in the future,
Speaker 4: but also a Pine on the latest executive order, what
Speaker 4: did you make of it?
Speaker 11: So I think it's important to consider the political zeitgeist
Speaker 11: of the moment.
Speaker 3: Crypto has come a.
Speaker 11: Really long way, and over the last fifteen years there's
Speaker 11: been growing demand both for crypto as a digital asset
Speaker 11: and also as a technology. So it's no longer a
Speaker 11: question of is crypto something legitimate or is it something real.
Speaker 11: Crypto is definitively here to stay, and with today's White
Speaker 11: House summit, it shows that we have a voice and
Speaker 11: a seat at the table, so we're expecting big things
Speaker 11: to come from the summit.
Speaker 4: Was the Bitcoin Reserve and the stoppoial of other alternative
Speaker 4: assets in the digital space a.
Speaker 3: Big enough deal for you today?
Speaker 11: So there was a lot of commentary around the Strategic
Speaker 11: Bitcoin Reserve, and I think what the White House has
Speaker 11: been able to do is come up with an equitable solution.
Speaker 11: So the way I see it personally, we already have
Speaker 11: this bitcoin, but there were no policies in place to
Speaker 11: steward it and there was no accountability within government. David
Speaker 11: Sach's earlier mentioned that there was a loss of seventeen
Speaker 11: billion dollars by not having policies on when to sell bitcoin.
Speaker 11: So if we already have this bitcoin from criminal and
Speaker 11: civil asset forfeitures, I think it's important that we have
Speaker 11: a framework in place to manage this bitcoin for the
Speaker 11: American people.
Speaker 2: Liz, what do you want to see coming out of
Speaker 2: this crypto summit that will give the market some of
Speaker 2: that clarity that we're looking for.
Speaker 11: I think what the United States lacks today is a
Speaker 11: clear framework around digital assets. So in this sense, we
Speaker 11: lag a lot of different regions, mainly the European Union.
Speaker 11: So what I'm hoping for personally is I hope to
Speaker 11: see us take steps to lay ground work to have
Speaker 11: regulatory clarity in the United States. And the reason why
Speaker 11: this is important is because it really that's the stage
Speaker 11: for American crypto companies to flourish, and this brings jobs
Speaker 11: that attracks entrepreneurship, attracts investment, and it ensures America's dominance
Speaker 11: on the global stage in technology.
Speaker 2: One of the things that David Sax really emphasize is
Speaker 2: that taxpayer dollars will not be used to bolster this
Speaker 2: reserve and stockpile. How can the crypto community really gain
Speaker 2: if the government is not buying crypto?
Speaker 11: So I think that even taking steps to establish a
Speaker 11: strategic Bitcoin reserve has already been a huge step for
Speaker 11: the industry. As for the specific details around its implementation,
Speaker 11: I think we'll have to see what comes of the
Speaker 11: working group and what comes from the Cryptosummit, But I
Speaker 11: am very optimistic on what this means for the crypto industry.
Speaker 4: So what next? We've got the reserve that was a
Speaker 4: promise made and promise kept, as David Saxon say, an
Speaker 4: indeed just a stop pole, but now will clarity is
Speaker 4: needed ultimately still about what is a digital asset, the
Speaker 4: way in which it's viewed as regulators and indeed stable
Speaker 4: coin future, what do you want to hear out of
Speaker 4: today for future regulation?
Speaker 11: So I think something that's interesting to consider with crypto
Speaker 11: is that a lot of the mainstream discussion centers around
Speaker 11: crypto as a digital asset with the financial use case,
Speaker 11: but it's important to remember that crypto is also an
Speaker 11: underlying technology upon which applications can be built, which span
Speaker 11: a variety of different sectors, ranging from identity solutions to
Speaker 11: life sciences, to media, entertainment and everything in between. So
Speaker 11: what I hope is for this to really lay the
Speaker 11: groundwork for crypto to flourish in the United States.
Speaker 4: Do you think that founders are changing their mind about
Speaker 4: building in the United States.
Speaker 6: Oh?
Speaker 11: Absolutely, I personally know of entrepreneurs that have left the
Speaker 11: United States due to regulatory uncertainty, and I know.
Speaker 3: That those of us who have chosen to.
Speaker 11: Stay in the United States are feeling quite validated in
Speaker 11: that decision.
Speaker 4: He said, Thanks Liz Young, thank you for growth at Azuki.
Speaker 3: We appreciate it for joining us.
Speaker 4: Quick check on some breaking news, this one regarding in
Speaker 4: video that we just told you that the NaSTA one
Speaker 4: hundred was in correction. Territory now in video has been
Speaker 4: shed one trillion dollars in market value from its record high.
Speaker 3: Remember it was as high as more.
Speaker 4: Than three trillion dollars and it has come down significantly
Speaker 4: from that market capitalization. We're off one point five percent
Speaker 4: on the day on Invidia.
Speaker 2: Shares of HPE are plunging today after the company said
Speaker 2: profits in the coming year would be hurt by tariffs,
Speaker 2: week margins on server sales and execution issues. HPE also
Speaker 2: saying it will look to eliminate three thousand jobs. Antonio Nairy,
Speaker 2: HPE CEO joins us now for more Antonio. I know
Speaker 2: it's a tough day, but give us a little bit
Speaker 2: of clarity in terms of what you're seeing as the
Speaker 2: turnaround plan here.
Speaker 12: Yes, good morning, Thanks for having me. Today obviously is
Speaker 12: a disappointed day for me and for us as a company.
Speaker 12: We had a solid quarter. We delivered in our commitments.
Speaker 12: We grow our revenue double digits, up seventeen percent. We
Speaker 12: had double digit growth in our bookings. We disappointed on
Speaker 12: one specific metric, which was the server operative margins, and
Speaker 12: that server operative margin was impacted by three specific issues.
Speaker 12: Two in the traditional server business call of the X
Speaker 12: eighty six. One was a very aggressive market, meaning a
Speaker 12: high discounting, and second was a specific issue with the
Speaker 12: evaluation of our inventory which caused us not to have
Speaker 12: the exact right cost in that pricing in the end
Speaker 12: of the quarter.
Speaker 6: And those issues have been already fixed and we have
Speaker 6: taken very aggressive action.
Speaker 12: On the E side, we have a higher than normal
Speaker 12: inventory related to the GPU transition from the copper of
Speaker 12: h one hundreds and two hundreds Intro Blackwell, and in
Speaker 12: the quarter we booked one point six billion dollars of
Speaker 12: new AI system orders, which was doubled the.
Speaker 6: Orders that we had in Q four, but seventy percent.
Speaker 12: Of that is on the blackwell side, so the working
Speaker 12: capital aspect that I had a negative impact on our
Speaker 12: operating margins.
Speaker 8: For the servers.
Speaker 6: The rest of the business is very, very strong.
Speaker 12: And inclusive of the networking business, which had again another
Speaker 12: recovery on sequential revenue double digit year over the year
Speaker 12: revenue growth our hybrid cloud was up eleven percent year
Speaker 12: every year, and we had a very strong performance in
Speaker 12: our storage bookings. So it was all in the server margin.
Speaker 12: But I have to tell you because of the demand
Speaker 12: we selved, it reinforced our strategies, right, we just need
Speaker 12: to execute better than a couple of things and return
Speaker 12: to the normal operating profit, which we are committed to
Speaker 12: do in the second half. And then what we guided
Speaker 12: was inclusive of that and the net impact of tariffs,
Speaker 12: because now it's.
Speaker 3: Available on tariff.
Speaker 4: Antonio, how much of a pain to the bottom line
Speaker 4: and tarif's going to be do you have a clear
Speaker 4: guidance of number, Yes.
Speaker 6: We did, Caroline.
Speaker 12: We guided that it would be seven pennies net of
Speaker 12: the mitigation impacts that we have now put in place
Speaker 12: and will continue to execute throughout FIS career twenty twenty five.
Speaker 3: The worst case.
Speaker 4: Scenario do you build in there, though, Antonio, because at
Speaker 4: the moment, every day we get a different tariff headline.
Speaker 12: Well, we decided to go all in based on the
Speaker 12: twenty five percent tariff in Mexico, the twenty five percent
Speaker 12: tartfs in Canada, which we don't produce in Canada today,
Speaker 12: and that incremental ten percent meaning the twenty percent on China.
Speaker 12: So we factor all that in and obviously we have
Speaker 12: mitigation strategy from a global supply chain and also the pricing.
Speaker 6: So we decided to put it all in in.
Speaker 12: A this part of time and if some of that
Speaker 12: doesn't get done then you know, obviously we'll get the
Speaker 12: benefit of it. But right now, because kind of what
Speaker 12: happened here is that because we did not guide the
Speaker 12: full year waiting for the Juniper deal to close at
Speaker 12: the end of Q one, we decided to put a
Speaker 12: flag pole out there for an investor.
Speaker 6: So they have it all out there.
Speaker 2: Can you give us an update there, Antonia is where
Speaker 2: the Department of Justices case stands.
Speaker 12: Yes, of course, First of all, we are incredibly disappointed
Speaker 12: that the DOJ decided to file a lawsuit to try
Speaker 12: to block the transaction. Their market analysis completely flawed. Then
Speaker 12: nar the market to one slaver or the market called
Speaker 12: the wireless lund and they felt there would be only
Speaker 12: three vendors to play in the market.
Speaker 6: The reality are at least the eight.
Speaker 12: Vendors and many of them had this exact same share
Speaker 12: as Juniper today.
Speaker 6: Addition, you know they don't.
Speaker 12: Consider this is a great rossure for the United States
Speaker 12: to strengthen our US national security outside the country. So
Speaker 12: now the judge has been selected. The judge has established
Speaker 12: July ninth as the trial date and we will defend
Speaker 12: this in court. So we expect to prevail because we
Speaker 12: have a very compelling case and therefore we expect to
Speaker 12: close the transaction in twenty twenty five, obviously delayed from
Speaker 12: the regional time.
Speaker 2: We have about thirty seconds left. But are you prepared
Speaker 2: for the worst case scenario.
Speaker 12: Meaning the deal doesn't close. We always have multiple options
Speaker 12: on the table. Our feederstrem duty, together with my board,
Speaker 12: is to drive the best return for our shareholders. We
Speaker 12: felt that the Juriper transaction is the best long term
Speaker 12: return that will shift the portfolio and create more earnings
Speaker 12: and free cash flow. Because we committed at least four
Speaker 12: hundred and fifty million dollars of synergies, and so that's
Speaker 12: what we're focused. However, they are different ways to create
Speaker 12: your holder value and all those options out of the table,
Speaker 12: But right now we want to see this.
Speaker 4: Through Antonio Nary HPCO, thanks so much for joining us today.
Speaker 3: Jackie.
Speaker 2: Coming up, we take a look at tech entrepreneur Peter
Speaker 2: Teel's many lengths inside the Trump's new administration.
Speaker 4: Tech billionaire Peter tail used his Silicon pelling wealth and
Speaker 4: influence to help Donald Trump win his second presidency that
Speaker 4: could give him authority within the administration itself. For more,
Speaker 4: Bloomberg's Jamie Tarabay joins us now. Actually, the nuance to
Speaker 4: this is that he certainly leaned into Trump in the
Speaker 4: first before the first administration.
Speaker 3: In the second administration, he.
Speaker 4: Took a step back in terms of committing financially, we'd see,
Speaker 4: although he did say he was going to vote for Trump.
Speaker 4: And Jade Vance is a close ally. How what does
Speaker 4: this network.
Speaker 3: Sprawl within this new administration?
Speaker 13: Well, I mean, as you said, like pretty early on
Speaker 13: Peter thal had donated to conservative candidates. He very sort
Speaker 13: of famously surprised Silicon Valley. When he voted for and
Speaker 13: supported Donald Trump in the twenty sixteen presidential election, he
Speaker 13: spoke at the Republican National Convention and gave over a
Speaker 13: million dollars to Trump's campaigns, and when Trump won the
Speaker 13: first time around, Tiel was a member of the Executive
Speaker 13: Transition Committee, and two people who worked for him at
Speaker 13: thel Capital went on to have senior positions both at
Speaker 13: the National Security Council and also at the White House.
Speaker 13: This time around, people who are connected to Peter Theal,
Speaker 13: including Vice President J. D.
Speaker 3: Vance, who had.
Speaker 13: Worked at Mithril, a venture capital fund that theel co founded,
Speaker 13: have senior positions across the administration. Along with Vance, a
Speaker 13: former THEOD associate is number two at the Department of
Speaker 13: Health and Human Services. Another is Assistant to the President
Speaker 13: for Science and Technology. One is the ambassador to Denmark.
Speaker 13: And there are at least two who now hold senior
Speaker 13: positions at the Defense Department, which is a place where
Speaker 13: he and Elon Musk have several critical contracts with the government.
Speaker 4: Let's just talk a little bit more about the going
Speaker 4: forward and whether there's going to be proof in the
Speaker 4: pudding as to whether or not he is benefiting personally
Speaker 4: because we already know a lot of the companies he
Speaker 4: helped co founder and Leeds fund have started to win
Speaker 4: some pretty big contracts.
Speaker 3: That's right.
Speaker 13: I mean theal is an investor in several of Musk's companies,
Speaker 13: including SpaceX, Neurlink, and Boring. And I'm going to read
Speaker 13: off my paper for a moment because once Trump was elected,
Speaker 13: Palenteer stock. Palenteer is Theel's company. The stock soared more
Speaker 13: than ninety percent in February. And Real Industries, a defense
Speaker 13: tech startup which is backed by Field's founder's fund, landed
Speaker 13: an expanded role so with the US Army that was
Speaker 13: valued at more than twenty billion. And then scale AI,
Speaker 13: another founder's funds company, just signed a major deal with
Speaker 13: the Defense Department.
Speaker 3: Jamie Tarabey, it's an amazing read.
Speaker 4: It's succinct to the point I urge people to go
Speaker 4: and find it on the terminal or online.
Speaker 3: Thanks so much.
Speaker 4: Meanwhile, we want to check it on the markets once again. Look,
Speaker 4: we've seen a sell off that's seen the NASAK one
Speaker 4: hundred in a correction, territory in videos wiped off one
Speaker 4: trillion dollars of its market cap, and now Tesla has
Speaker 4: raised all of its election rally. We're down forty eight
Speaker 4: percent from its record high, with down another four percent
Speaker 4: on the day.
Speaker 3: Plenty to be digesting as we go into this weekend.
Speaker 4: People again not wanting to be long tech or indeed
Speaker 4: the market more generally. But that does it for this
Speaker 4: edition of Bluebig Technology. You don't want to forget to
Speaker 4: check out our podcast. You can find it on the
Speaker 4: terminal as well as online on Apple, Spotify, and iHeart
Speaker 4: This is Blue Meg Technology.