WEBVTT - Nvidia Shares Tumble; Exclusive Nvidia CEO Interview 0:00:02.480 --> 0:00:11.120 Bloomberg Audio, Studios, Podcasts, Radio News. Good morning, I'm Nathan 0:00:11.119 --> 0:00:14.080 Hager and I'm Karen Moscow. Here are the stories we're 0:00:14.120 --> 0:00:14.920 following today. 0:00:15.240 --> 0:00:17.760 Karen, we begin with the latest reaction to those highly 0:00:17.800 --> 0:00:21.840 anticipated earnings from Nvidia. The shares are down more than 0:00:21.880 --> 0:00:25.720 four percent in early trading. The AI juggernaut met or 0:00:25.840 --> 0:00:30.240 beat analyst's estimates on nearly every measure, but Nvidia investors 0:00:30.240 --> 0:00:33.960 have grown accustomed to blowout quarters, and the latest numbers 0:00:34.000 --> 0:00:37.680 did not qualify. Moreover, in Vidia's next big cash cow, 0:00:37.760 --> 0:00:41.519 the new Blackwell processor lineup, has proven more challenging to 0:00:41.600 --> 0:00:45.800 manufacture than anticipated. In Vidia CEO Jensen Wong spoke with 0:00:45.800 --> 0:00:48.599 Bloomberg's Ed Ludlow after the company conference call. 0:00:49.080 --> 0:00:51.400 We're expecting Q three to have more supply than Q two, 0:00:51.560 --> 0:00:53.880 We're expecting Q four to have more supply than Q three, 0:00:54.000 --> 0:00:55.680 and we're expecting Q one to have more supply than 0:00:55.760 --> 0:00:58.520 Q four, and so I think our supply, our supply 0:00:58.600 --> 0:01:01.040 condition going into next year will be in will be 0:01:01.520 --> 0:01:03.520 a large improvement over this last year. 0:01:04.000 --> 0:01:06.920 In Nvidia CEO Jensen Wong says third quarter revenue will 0:01:06.920 --> 0:01:09.640 be about thirty two and a half billion dollars. Analysts 0:01:09.720 --> 0:01:12.920 had predicted thirty one point nine billion on average, but 0:01:13.000 --> 0:01:16.520 the estimates ranged as high as thirty seven point nine billion. 0:01:16.920 --> 0:01:20.520 Well, Nathan reaction is still pouring into the Nvidia results 0:01:20.600 --> 0:01:24.040 and Jensen Wong interview. Man Deep Singh is a senior 0:01:24.080 --> 0:01:26.200 tech analyst with the Bloomberg Intelligence. 0:01:26.560 --> 0:01:29.400 It's still a very solid growth story, but when it 0:01:29.480 --> 0:01:33.880 comes to convincing investors that there are more catalysts for 0:01:34.240 --> 0:01:39.240 upside relative to where expectations are, I think a lot 0:01:39.280 --> 0:01:43.720 of it right now is dependent on how the industry 0:01:43.959 --> 0:01:48.880 actually deploys Generator AI. That's what Jensen highlighted that look, 0:01:49.200 --> 0:01:55.480 jenai is transformational. It's changing how compute is done and 0:01:55.560 --> 0:01:56.760 everyone will use it. 0:01:57.080 --> 0:02:00.520 Bloomberg Intelligence senior tech analyst man Deep Singh notes that 0:02:00.720 --> 0:02:04.280 most of Nvidia's growth comes from a small group of customers. 0:02:04.520 --> 0:02:08.480 About forty percent stems from a large data center operators, 0:02:08.560 --> 0:02:12.519 companies like alphabet s, Google and Facebook parent meta platforms. 0:02:12.680 --> 0:02:14.360 And we're going to have much more coverage of the 0:02:14.440 --> 0:02:16.760 Nvidia story in a few minutes. Will bring you more 0:02:16.840 --> 0:02:20.440 from our conversation with the CEO, Jensen Wong, and that 0:02:20.560 --> 0:02:23.560 will be followed by analysis from web Bush Security senior 0:02:23.600 --> 0:02:26.600 equity research analyst Dan ives Well. 0:02:26.560 --> 0:02:28.480 Nathan and Video is not the only stock on the 0:02:28.520 --> 0:02:31.760 move this morning following earning. Several other high tech results 0:02:31.760 --> 0:02:33.480 came in after the bell as well, and we get 0:02:33.480 --> 0:02:36.240 the latest with Bloomberg's John Tucker, John and. 0:02:36.360 --> 0:02:39.560 Karen CrowdStrike shares down over two percent pre market trading. 0:02:39.600 --> 0:02:43.440 The security software company cutting it's full your forecast. However, 0:02:43.520 --> 0:02:46.760 some analysts of the reduction better than feared. This comes 0:02:46.800 --> 0:02:49.600 in the wake of the CrowdStrike update. You'll remember that 0:02:49.720 --> 0:02:54.600 crash computers worldwide last month, Salesforce gave an earnings forecast 0:02:54.680 --> 0:02:57.600 the top analyst estimate's the top maker of customer management 0:02:57.639 --> 0:03:00.920 software who's been trying to deal with activist investors. The 0:03:00.960 --> 0:03:04.840 company says new higher price products with AR are just 0:03:04.919 --> 0:03:07.640 starting to help boot sales. They're getting a popped this 0:03:07.680 --> 0:03:11.600 morning of almost five percent, and finally, hp ticker simple 0:03:11.720 --> 0:03:14.720 HPQ down close to two and a half percent. They're 0:03:14.760 --> 0:03:17.720 cutting their full year profit outlook. That's because of a 0:03:17.800 --> 0:03:22.720 continued downturn in its printing unit. John Tucker, Bloomberg Radio. 0:03:22.639 --> 0:03:24.840 All right, John, thanks for also watching. Shares of super 0:03:24.880 --> 0:03:28.200 micro Computer. They're down nearly five percent in early trading 0:03:28.200 --> 0:03:32.480 that follows yesterday's nineteen percent plunge. Super Micro says it's 0:03:32.480 --> 0:03:35.720 delaying filing its annual financial disclosures and will need more 0:03:35.720 --> 0:03:39.320 time to assess its internal controls. This ten k delay 0:03:39.760 --> 0:03:42.760 erased more than eight hundred million dollars from super Micro 0:03:42.880 --> 0:03:45.760 chairman Charles Leang's net worth. In fact, his fortune is 0:03:45.800 --> 0:03:49.240 slumped by nearly two thirds from its March high. 0:03:49.800 --> 0:03:52.360 Well, we turn to the economy now, Nathan, as investors 0:03:52.400 --> 0:03:56.120 all waited another key inflation rating tomorrow, the Personal Consumption 0:03:56.240 --> 0:04:00.360 Expenditures price index. A top FED official is cautioning about 0:04:00.360 --> 0:04:04.080 moving too fast on rate cuts. Atlanta FED President Raphael 0:04:04.120 --> 0:04:07.520 Bostik says he's still looking for additional data before he'll 0:04:07.560 --> 0:04:09.800 support lowering interest rates next month. 0:04:10.040 --> 0:04:12.880 I don't want us to be in a situation where 0:04:13.160 --> 0:04:16.400 we cut and then we have to raise rates again. 0:04:16.920 --> 0:04:19.400 Like that would be a very bad outcome. It would 0:04:19.440 --> 0:04:22.080 really undermine all the conference I was talking about. 0:04:22.160 --> 0:04:25.599 People have it. Speaking at the Stanford Club of Georgia, 0:04:25.640 --> 0:04:29.520 Atlanta FED President Rafael Bostik reiterated that his timeline for 0:04:29.600 --> 0:04:33.240 cuts had moved up after inflation fell more quickly than 0:04:33.240 --> 0:04:36.880 he expected, and the unemployment rate increased more rapidly, but 0:04:37.160 --> 0:04:38.240 he's still cautious. 0:04:38.600 --> 0:04:42.279 So now two geopolitics Karen a major development overseas. White 0:04:42.320 --> 0:04:45.359 House National Security Advisor Jake Sullivan is wrapping up his 0:04:45.440 --> 0:04:47.800 three day trip to China with a visit with the 0:04:47.839 --> 0:04:50.960 President Chi Jinping. It is the first time Sullivan's held 0:04:51.000 --> 0:04:53.760 one to one talks with the Chinese leader. It comes 0:04:53.760 --> 0:04:56.039 hours after his first face to face with the top 0:04:56.160 --> 0:04:59.159 Chinese general. Bloomberg's Gill Deesis is in Hong Kong. She 0:04:59.200 --> 0:05:02.479 says the goal of Sullivan's trip is to set up guardrails. 0:05:02.800 --> 0:05:04.960 There's just a lot of uncertainty too going into the 0:05:05.040 --> 0:05:07.719 US election later this year as who exactly will be 0:05:07.760 --> 0:05:10.120 the leader after that that you're probably looking at this 0:05:10.440 --> 0:05:13.440 attempt by the Biden administration to kind of future proof 0:05:13.520 --> 0:05:16.640 ties with China or at least stabilize relations heading into 0:05:16.640 --> 0:05:17.080 that election. 0:05:17.160 --> 0:05:20.760 Bloombergs Jill Lisis reporting from Hong Kong. Earlier, Sullivan discussed 0:05:20.760 --> 0:05:23.359 setting up a call between presidents she and Biden with 0:05:23.440 --> 0:05:25.120 the Chinese Foreign Minister Wangi. 0:05:25.800 --> 0:05:28.320 Now let's get to the latest and the presidential race. 0:05:28.440 --> 0:05:32.000 Nathan Democrat Kamala Harris is on her second day of 0:05:32.040 --> 0:05:34.960 a two day bus tour through Georgia. She's heading through 0:05:35.040 --> 0:05:38.240 rural areas with a focus on shoring up support among 0:05:38.320 --> 0:05:41.360 black men. Harris is also getting ready for her first 0:05:41.400 --> 0:05:44.800 interview since taking the nomination on CNN tonight, and we 0:05:44.880 --> 0:05:46.919 get more from Bloomberg's Julie Fine. 0:05:47.200 --> 0:05:50.240 It's a very high stakes moment for her, and she's 0:05:50.320 --> 0:05:54.080 also taking some criticism because she's not doing the interview alone. 0:05:54.120 --> 0:05:56.960 She is doing it with Tim Walls. However, at the 0:05:57.040 --> 0:05:59.320 end of the day, she is going to be the 0:05:59.360 --> 0:06:02.159 one that has to answer the questions, even if he's 0:06:02.279 --> 0:06:05.200 just sitting right beside her. So it's high stakes. It's 0:06:05.240 --> 0:06:07.479 the first time it is that situation. It is a 0:06:07.520 --> 0:06:08.200 one on two. 0:06:08.560 --> 0:06:12.120 Bloomberg's July Fine reports the Harris campaign is brushing off 0:06:12.120 --> 0:06:16.040 the criticism, saying former President Trump has also done joint 0:06:16.120 --> 0:06:19.840 interviews with his running mate jd Vance. Tonight's interview airs 0:06:19.880 --> 0:06:26.320 at nine pm Wall Street Time on CNN. But it's 0:06:26.360 --> 0:06:27.520 time now for a look at some of the other 0:06:27.640 --> 0:06:29.799 stories making news in New York and around the world, 0:06:29.839 --> 0:06:32.440 and for that we're joined by Bloomberg's Michael Barr Michael, 0:06:32.440 --> 0:06:33.200 Good morning. 0:06:33.000 --> 0:06:36.839 Good morning, Karen. The listeria outbreak from Bor's Head Deli 0:06:36.920 --> 0:06:40.120 meat has been linked to fifty seven illnesses in eighteen 0:06:40.160 --> 0:06:43.480 states and the deaths of nine people, including two in 0:06:43.520 --> 0:06:47.960 New York and New Jersey. Carshawn Morgenstein says his father, 0:06:48.200 --> 0:06:51.760 a Holocaust survivor, was in good health until he says 0:06:51.800 --> 0:06:56.719 his dad got listeria after eating tainted liverwurst. Morgenstein says 0:06:56.839 --> 0:07:00.440 the infection led to meningitis and brain damage, and. 0:07:00.440 --> 0:07:03.480 He always a lunch meet, always boores Head. 0:07:03.720 --> 0:07:06.640 We're all still in shock for all of the things 0:07:06.680 --> 0:07:08.559 you know that he's seen and been through in his life. 0:07:08.920 --> 0:07:12.200 The CDC Warren's customers may still have tainted meat in 0:07:12.280 --> 0:07:16.400 their fridge with best by dates through October. A Nevada 0:07:16.480 --> 0:07:19.960 jury has found a democratic former Las Vegas area politician 0:07:20.040 --> 0:07:24.360 guilty of murdering an investigative journalists who wrote articles critical 0:07:24.360 --> 0:07:28.320 of his conduct in office. After deliberating for almost twelve hours, 0:07:28.360 --> 0:07:31.920 the jury found Robert Tellis guilty of murdering Jeff German 0:07:32.360 --> 0:07:36.280 of the Las Vegas Review Journal. Clark County District Attorney 0:07:36.280 --> 0:07:39.200 Steve Wolfson says the jury sent a clear message. 0:07:39.320 --> 0:07:45.400 Did any attempts to silence the media or to silence 0:07:45.600 --> 0:07:51.280 or intimidate a journalist will not be tolerated. That's what 0:07:51.320 --> 0:07:52.280 occurred in this case. 0:07:52.480 --> 0:07:56.720 Clark County District Attorney Steve Wolfson jurors set tell Us 0:07:56.760 --> 0:07:59.320 his sentence at twenty years to life in prison, tell 0:07:59.400 --> 0:08:03.240 Us tonight killing German, and instead blamed a broad conspiracy 0:08:03.240 --> 0:08:07.120 of people for framing him. It won't end tomorrow. That's 0:08:07.120 --> 0:08:10.240 according to the Israel Defense Force. Of the raids in 0:08:10.280 --> 0:08:13.280 the West Bank, the IDF is calling it a counter 0:08:13.520 --> 0:08:17.760 terrorism operation. The Palestinian Health Ministry says the raids that 0:08:17.840 --> 0:08:21.880 began Wednesday have left at least eleven people dead. New 0:08:21.960 --> 0:08:25.240 York City Mayor Eric Adams announced significant progress in his 0:08:25.400 --> 0:08:28.720 war on illegal smoke shops. The mayor used a crane 0:08:28.760 --> 0:08:31.640 to move the more than four tons of seased cannabis 0:08:31.720 --> 0:08:35.479 products that were destroyed in an incinerator at a facility 0:08:35.559 --> 0:08:39.320 in Westbury, Nassau County. Back in May, New York City 0:08:39.400 --> 0:08:42.960 launched a crackdown on the sale of illegal cannabis products. 0:08:43.320 --> 0:08:47.120 What we have accomplished is exactly what we knew we 0:08:47.280 --> 0:08:51.439 could accomplish with the right insight. And the right focus 0:08:51.480 --> 0:08:55.400 and determination. A thousand shops were closed. 0:08:55.679 --> 0:08:59.800 The crackdown involves a joint law enforcement effort including the NYPD, 0:09:00.360 --> 0:09:04.040 the New York City Sheriff, and other agencies. Global news 0:09:04.040 --> 0:09:06.200 twenty four hours a day and whenever you want it 0:09:06.200 --> 0:09:07.120 with the Bloomberg News. 0:09:07.160 --> 0:09:07.360 Now. 0:09:07.679 --> 0:09:09.880 I'm Michael Barr, and this is Bloomberg. 0:09:09.960 --> 0:09:10.200 Karen. 0:09:10.360 --> 0:09:17.240 All right, Michael Barr, thank you time now for the 0:09:17.240 --> 0:09:19.800 Bloomberg Sports UF date with John Stashauer. 0:09:19.880 --> 0:09:22.440 John, good morning, Good morning, Karen. Mets and Phoenix. They 0:09:22.480 --> 0:09:25.760 fell behind four nothingk Corbyn, Carrol homerd Off, Luis seven Reno. 0:09:25.800 --> 0:09:27.839 The Mets rally tied the game fifth in ety two 0:09:27.880 --> 0:09:30.160 onunch shot for Harrison Vader. They went up five to 0:09:30.240 --> 0:09:32.800 four of the six, but in the eighth Carol with 0:09:32.960 --> 0:09:36.160 a grand slam of Edwin Diaz. Arizona one eight to 0:09:36.240 --> 0:09:38.559 five and Atlanta keeps winning five one at Minnesota in 0:09:38.559 --> 0:09:41.160 the bras are four games ahead of the Mets. Second 0:09:41.160 --> 0:09:44.000 straight night, Yankees couldn't muster much offense. A night after 0:09:44.040 --> 0:09:46.560 losing four to two, they fell five to two. Carlos 0:09:46.640 --> 0:09:49.640 Raddon gave up a first stunning homer to National's rookie 0:09:49.760 --> 0:09:52.160 Dylan Cruz, second pick the last year's draft, his first 0:09:52.160 --> 0:09:54.560 big leaguemer Rendon gave up two in the first and 0:09:54.640 --> 0:09:57.320 two more in the second. The Yanks stranded eight in 0:09:57.360 --> 0:09:59.520 their attempt to come back. Here's Aaron Boone. 0:10:00.120 --> 0:10:03.320 Didn't do enough last two nights, just pushing runs across 0:10:04.679 --> 0:10:10.520 and so lost the series. So you know, tough one, 0:10:11.200 --> 0:10:14.440 you know, regrouping off day and curators started a little 0:10:14.480 --> 0:10:16.840 quick three to day or but just one of those 0:10:16.880 --> 0:10:19.679 days where weren't able to just finish off some rallies. 0:10:19.720 --> 0:10:21.840 Juan Soto back where he used to play. He had 0:10:21.880 --> 0:10:24.200 his worst series, zero for twelve, only drew one walk. 0:10:24.240 --> 0:10:26.160 Aaron Judges did drive in a run last night, but 0:10:26.200 --> 0:10:28.360 he did not homer in the series. Baltimore lost to 0:10:28.400 --> 0:10:30.839 the Dodgers six to four. Yanks remained game ahead. Red 0:10:30.880 --> 0:10:33.720 Sox shoutout Toronto three nothing. Battle of Division leaders, Houston 0:10:33.760 --> 0:10:36.680 blank the Phillies ten to nothing. Jordan Alvarez hit three 0:10:36.679 --> 0:10:38.960 home runs and a wild one. In Pittsburgh, the Pirates 0:10:39.000 --> 0:10:41.200 led the Cubs ten to three, and the seventh inning. 0:10:41.440 --> 0:10:43.840 Cups scored eleven times in their last three at bats. 0:10:43.880 --> 0:10:46.640 They won fourteen to ten. US Open last night eas 0:10:46.640 --> 0:10:49.360 he wins for Coco Goff and no back Jokobitch. Earlier sixteen, 0:10:49.440 --> 0:10:52.360 Andre and Rubleev came back from a two set deficit 0:10:52.400 --> 0:10:55.000 to win. Third round begins today, so does the season 0:10:55.080 --> 0:10:59.120 ending Tour Championship Golf in Atlanta, thirty player field. By Sunday, 0:10:59.440 --> 0:11:01.839 there'll be a f X champ who gets twenty five million. 0:11:01.840 --> 0:11:05.079 Pittsburgh Steelers named Russell Wilson their Week one starting quarterback. 0:11:05.160 --> 0:11:08.320 You beat out Justin Fields. Patriots coach Drive Mayo says 0:11:08.320 --> 0:11:11.760 he'll name his daughter today. John stash I went Bloomberg Sports. 0:11:11.840 --> 0:11:12.920 Karen Nathan all. 0:11:12.880 --> 0:11:13.920 Right, John, thank you well. 0:11:13.960 --> 0:11:17.360 If you're listening to us in Boston, our new home 0:11:17.440 --> 0:11:20.160 beginning September third is going to be on ninety two 0:11:20.240 --> 0:11:23.800 nine FM, That is the day after Labor Day. This 0:11:23.920 --> 0:11:27.520 coming Tuesday, Bloomberg Radio moving to ninety two nine FM 0:11:27.679 --> 0:11:28.800 in Boston. 0:11:30.840 --> 0:11:34.960 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:35.040 --> 0:11:37.920 and around the world on Bloomberg dot Com and the 0:11:38.000 --> 0:11:42.280 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:11:42.320 --> 0:11:43.040 Nathan Hager. 0:11:43.120 --> 0:11:47.440 We continue our coverage of chip giant Nvidia the earnings 0:11:47.440 --> 0:11:50.120 report that Wall Street had been waiting for pretty much 0:11:50.200 --> 0:11:54.040 all quarter long. The AI chip giant delivered an underwhelming 0:11:54.240 --> 0:11:58.319 forecast and disappointed with news that it's still ironing out 0:11:58.360 --> 0:12:02.240 production issues with its new US chips. Bloomberg's at Ludlow 0:12:02.320 --> 0:12:05.600 spoke with the CEO of Nvidia, Jensen Wong, and they 0:12:05.640 --> 0:12:09.520 began by discussing those issues with Blackwell. We now bring 0:12:09.559 --> 0:12:10.760 you part of that discussion. 0:12:11.440 --> 0:12:14.640 We made a mass change to improve the yield. Functionality 0:12:14.679 --> 0:12:17.880 of Blackwell is wonderful. We're sampling Blackwell all over the 0:12:17.880 --> 0:12:24.160 world today. We show people giving tours to people of 0:12:24.240 --> 0:12:26.200 the Blackwall systems that we have up and running. 0:12:27.200 --> 0:12:29.240 You could find pictures of Blackwell. 0:12:28.880 --> 0:12:33.360 Systems all over the web. We have started volume production. 0:12:34.240 --> 0:12:38.520 Volume production will ship in Q four. Q four, we 0:12:38.600 --> 0:12:43.320 will have billions of dollars of Blackwell revenues and. 0:12:44.720 --> 0:12:47.560 We will ramp from there. We will ramp from there. 0:12:48.040 --> 0:12:48.880 The demand for. 0:12:48.960 --> 0:12:54.040 Blackwell far exceeds its supply, of course in the beginning, 0:12:54.840 --> 0:12:57.839 because the demand is so great, but we're going to 0:12:57.920 --> 0:13:00.960 have lots and lots of supply and we will be 0:13:01.040 --> 0:13:05.120 able to ramp starting in Q four. We have billions 0:13:05.120 --> 0:13:08.080 of dollars of revenues, and we'll remp from there into 0:13:08.120 --> 0:13:10.440 Q one into Q two and two next year. We're 0:13:10.440 --> 0:13:11.720 going to have a great next year as well. 0:13:12.960 --> 0:13:16.199 Jensen, what is the demand for accelerated computing beyond the 0:13:16.280 --> 0:13:17.320 hyperscalers and. 0:13:17.400 --> 0:13:22.560 Meta hyperscalers represent about forty five percent of our total 0:13:22.920 --> 0:13:24.040 data center business. 0:13:24.080 --> 0:13:25.920 We're relatively diversified today. 0:13:26.520 --> 0:13:31.760 We have hyperscalers, we have Internet service providers, we have 0:13:32.360 --> 0:13:40.480 sovereign ais, we have industries enterprises, so it's fairly fairly 0:13:40.520 --> 0:13:48.080 diversified a site outside of hyperscalers. The other fifty five percent, Now, 0:13:48.880 --> 0:13:52.480 the application use across all of that, all of that 0:13:52.600 --> 0:13:58.240 data center starts with accelerated computing. Accelerated computing does everything, 0:13:58.280 --> 0:14:03.080 of course, from well the models the things that we 0:14:03.120 --> 0:14:06.920 know about, which is generative AI and that gets most 0:14:06.920 --> 0:14:09.880 of the attention. But at the core we also do 0:14:10.840 --> 0:14:17.319 database processing, pre and post processing of data before you 0:14:17.920 --> 0:14:23.760 use it for generative AI, trans coding, scientific simulations, computer 0:14:23.840 --> 0:14:27.280 graphics of course, image processing of course, and so there's 0:14:27.600 --> 0:14:33.080 tons of applications that people use are accelerated computing for, and. 0:14:33.120 --> 0:14:36.720 One of them is generative AI. And so let's see 0:14:36.760 --> 0:14:39.680 what else can I say, I think that's that. 0:14:39.800 --> 0:14:42.840 Let jump in Jensen please on sovereign AI. You and 0:14:42.840 --> 0:14:45.600 I've talked about that before, and it was so interesting 0:14:45.640 --> 0:14:49.000 to hear something behind it that in this fiscal year 0:14:49.400 --> 0:14:51.200 there will be low double digit I think you said 0:14:51.240 --> 0:14:54.320 billions of dollars in sovereign AI sales. But to the 0:14:54.400 --> 0:14:57.160 lay person, what does that mean? It means deals with 0:14:57.240 --> 0:14:58.680 specific governments, if so. 0:14:58.680 --> 0:15:01.680 Were, it's not necessarily. 0:15:02.240 --> 0:15:08.840 Sometimes it deals with a particular regional service provider that's 0:15:08.920 --> 0:15:11.960 been funded by the government, and oftentimes that's the case 0:15:12.480 --> 0:15:14.920 in a case of In the case of Japan, for example, 0:15:15.040 --> 0:15:22.960 the Japanese government came out and offered UH subsidies of 0:15:23.440 --> 0:15:26.840 a couple of billion dollars I think for several different 0:15:27.360 --> 0:15:31.800 internet companies and telcos to be able to fund their 0:15:31.880 --> 0:15:37.200 AI infrastructure. India has a sovereign AI initiative going and 0:15:37.240 --> 0:15:44.800 they're building their AI infrastructure. Canada, the UK, France, Italy, 0:15:46.600 --> 0:15:50.560 I'm missing somebody, Singapore, Malaysia, Uh. 0:15:50.840 --> 0:15:52.000 You know a large. 0:15:51.760 --> 0:15:57.560 Number of countries are subsidizing their regional data centers so 0:15:57.600 --> 0:16:01.680 that they could become able to build out their AI infrastructure. 0:16:02.160 --> 0:16:08.560 They recognize that their country's knowledge, their country's data. Digital 0:16:08.640 --> 0:16:12.760 data is also their natural resource, not just the land 0:16:12.800 --> 0:16:15.360 they're sitting on, not just the air above them. But 0:16:15.400 --> 0:16:19.400 they realize now that their digital knowledge is part of 0:16:19.440 --> 0:16:23.920 their natural and national resource, and they had to harvest 0:16:23.960 --> 0:16:28.840 that and process that and transform it into their national 0:16:29.080 --> 0:16:30.320 digital intelligence. 0:16:30.760 --> 0:16:33.520 And so this is what we call sovereign AI. 0:16:33.560 --> 0:16:36.080 You could imagine almost every single country in the world 0:16:36.480 --> 0:16:41.040 will eventually recognize this and build out their AI infrastructure. 0:16:41.840 --> 0:16:44.560 Jensen, you use the word resource, and that makes me 0:16:44.600 --> 0:16:47.520 think about the energy requirements here. I think on the 0:16:47.560 --> 0:16:50.440 cool you talk about how the next generation models will 0:16:50.440 --> 0:16:53.840 have many orders of magnitude greater compute needs. But how 0:16:53.840 --> 0:16:56.600 will the energy needs increase and what is the advantage 0:16:56.600 --> 0:17:00.120 you feel in Vidia has in that sense. 0:17:01.080 --> 0:17:03.920 Well, the most important thing that we do is increase 0:17:04.040 --> 0:17:08.080 the performance of and increase the performance and efficiency of 0:17:08.119 --> 0:17:12.760 our next generation. So Blackwell is many times more performance 0:17:13.359 --> 0:17:17.040 than Hopper at the same level of power used, and 0:17:17.119 --> 0:17:21.359 so that's energy efficiency, more performance with the same amount 0:17:21.359 --> 0:17:24.480 of power or same performance at a lower power And 0:17:24.640 --> 0:17:25.520 that's number one. 0:17:26.000 --> 0:17:28.800 And the second is using LUCA cooling. 0:17:29.000 --> 0:17:32.040 We support air, we support air cooling, we support liqual cooling, 0:17:32.119 --> 0:17:34.399 but liqual cooling is a lot more energy efficient, and 0:17:34.480 --> 0:17:37.679 so the combination of all of that, you're going to 0:17:37.680 --> 0:17:41.280 get a pretty large, pretty large step up. But the 0:17:41.320 --> 0:17:44.240 important thing to also realize is that AI doesn't really 0:17:44.280 --> 0:17:47.320 care where it goes to school, and so increasingly we're 0:17:47.320 --> 0:17:51.199 going to see AI be trained somewhere else, have that 0:17:51.280 --> 0:17:54.600 model come back and be used near the population, or 0:17:54.880 --> 0:17:57.639 even running on your PC or your phone. 0:17:57.680 --> 0:17:58.240 And so we're going. 0:17:58.240 --> 0:18:01.000 To train large models, but the goal is not to 0:18:01.119 --> 0:18:03.240 run the large models necessarily all the time. 0:18:03.359 --> 0:18:05.160 You can, you can surely do that for some. 0:18:05.119 --> 0:18:09.520 Of the premium services and the very high value AIS, 0:18:10.240 --> 0:18:12.840 but it's very likely that these large models would then 0:18:12.920 --> 0:18:16.360 help to train and teach smaller models, and what we'll 0:18:16.400 --> 0:18:19.760 end up doing is have one large a few large 0:18:19.760 --> 0:18:22.800 models that are able to train a whole bunch of 0:18:22.800 --> 0:18:23.639 small models. 0:18:23.400 --> 0:18:24.400 And they run everywhere. 0:18:24.760 --> 0:18:27.840 That was the CEO of Nvidia, Jensen Wong, speaking with 0:18:27.840 --> 0:18:31.320 Bloomberg's Ed Ludlow following the company's earnings. You can catch 0:18:31.359 --> 0:18:35.040 the entire interview on the Bloomberg Talks podcast. Subscribe to 0:18:35.080 --> 0:18:38.600 download this and all our high profile conversations on Apple, 0:18:38.960 --> 0:18:42.480 Spotify or anywhere else you get your podcasts and for 0:18:42.560 --> 0:18:45.280 more and what we've heard from Nvidia and the stock reaction. 0:18:45.359 --> 0:18:48.800 We are joined now by Dan Ives, senior equity research 0:18:48.880 --> 0:18:52.159 analysts at web Bush Securities. Dan, good morning. I know 0:18:52.200 --> 0:18:54.920 you've been out front for quite some time as one 0:18:54.960 --> 0:18:57.840 of the leading bulls on the what you've been calling 0:18:57.880 --> 0:19:02.480 the AI tech revolutionist industrial revolution, I think is how 0:19:02.640 --> 0:19:06.120 you've termed it. After what we heard from the CEO, 0:19:06.480 --> 0:19:09.680 Jensen Wong, do you have any reservations now? 0:19:10.640 --> 0:19:13.520 I mean, Nata, I'm more bullish today than I probably 0:19:13.640 --> 0:19:17.000 was twenty four hours ago, becure, and I actually in 0:19:17.040 --> 0:19:20.800 the Fox should be up, not down, but because of 0:19:20.840 --> 0:19:24.239 the underlying demand. I mean, you know Jensen talked out 0:19:24.280 --> 0:19:27.520 with the little of the Ludwell interview. That's the key here, 0:19:27.960 --> 0:19:32.240 demand surgeon on the enterprise, the outlook for next quarter, 0:19:32.920 --> 0:19:35.400 maybe on the hair and miss whispers. I think it's 0:19:35.440 --> 0:19:38.760 conservative and they're going to continue to beat that number. 0:19:38.920 --> 0:19:42.960 Blackwell issues I think are a lot so in my opinion, 0:19:43.760 --> 0:19:49.160 this is actually an affirmation of the bullish AI pieces. 0:19:49.840 --> 0:19:54.040 Does Nvidia need to be more specific though on where 0:19:54.080 --> 0:19:57.920 that demand is coming from and how much demand it's 0:19:58.000 --> 0:19:59.160 expecting going forward. 0:20:00.080 --> 0:20:02.720 Look, I think the numbers speak to themselves. I mean, 0:20:02.720 --> 0:20:06.080 this is his store in terms of what we're seeing 0:20:06.119 --> 0:20:10.359 from a demand perspective. And I think the conference call 0:20:10.480 --> 0:20:15.760 last night solidified this is not stub ordering, this is 0:20:15.800 --> 0:20:20.160 not hype. This is a fourth and ducal revolution that's 0:20:20.240 --> 0:20:23.960 playing out right now, being led by godfather of AI, 0:20:24.680 --> 0:20:25.760 Jensen and Nvidios. 0:20:27.400 --> 0:20:31.400 He said that he's expecting billions of dollars in revenue 0:20:31.600 --> 0:20:36.000 from the Blackwell chips. A lot of analysts on the 0:20:36.040 --> 0:20:39.720 call were looking for more specificity on that as well. 0:20:40.160 --> 0:20:43.840 How much are you expecting that the Blackwell chips could 0:20:43.840 --> 0:20:46.720 generate in terms of monetizing AI. 0:20:47.680 --> 0:20:52.040 From everything we're seeing, its tens of billions, not billions. 0:20:52.119 --> 0:20:56.840 And who Look, Jensen is a He's a Grand Master 0:20:57.080 --> 0:21:02.000 World Series poker player. He's not going to reveal his playbook, 0:21:02.040 --> 0:21:05.119 nor should he. But when you and I think this 0:21:05.240 --> 0:21:08.880 is important for the rest of tech, there's a multiplier. 0:21:09.119 --> 0:21:12.280 For every dollar spend in videoship, we've eaten ten dollars 0:21:12.320 --> 0:21:15.320 for the rest of tech. I believe tech should be 0:21:15.440 --> 0:21:20.680 up today relative to everything we heard. That I think 0:21:20.760 --> 0:21:22.879 keeps his tech well market going higher. 0:21:24.040 --> 0:21:29.000 Are you going to be reducing your outlook for where 0:21:29.280 --> 0:21:32.439 the revenue goes as far as not just in Vidio, 0:21:32.680 --> 0:21:35.720 but other AI players moving forward. Now that we have 0:21:36.119 --> 0:21:43.639 gotten something of a less than powerhouse outlook from Nvidia 0:21:43.720 --> 0:21:45.879 this time around, Yeah, and that. 0:21:45.960 --> 0:21:50.000 Would be the initial nature. But I think, I mean, 0:21:50.040 --> 0:21:53.720 you know, we talked on your show after Apple's Worldwide 0:21:53.760 --> 0:21:57.880 Developer Conference. At that point, the stock was one ninety, 0:21:58.520 --> 0:22:01.560 sentiment was negative. Here it is two and a half 0:22:01.600 --> 0:22:05.280 months later, stocks two twenty six, and the sentiments chem drastically. 0:22:05.880 --> 0:22:08.520 I think it's going to be a similar dynamic within 0:22:08.720 --> 0:22:13.120 Vidio over the coming days and weeks. But again, the bears, 0:22:13.440 --> 0:22:16.760 they've been negative on this for the last year and 0:22:16.800 --> 0:22:19.520 it's a historic run, and I think they'll continue to 0:22:19.520 --> 0:22:22.240 be negative. Trying to grasp the straws. 0:22:22.640 --> 0:22:25.080 How important is it going to be for Nvidia to 0:22:25.160 --> 0:22:29.679 grow its customer base beyond the hyperscalers, beyond companies like 0:22:29.880 --> 0:22:33.119 meta platforms, to get into, you know, something that Ed 0:22:33.200 --> 0:22:37.320 Ludlow has been focusing on pretty closely, sovereign AI government, 0:22:37.480 --> 0:22:40.520 something that Jensen Wang himself has said that he's going 0:22:40.600 --> 0:22:44.040 to be focusing on, you know, as early as February. 0:22:44.800 --> 0:22:50.639 Yeah, look, and I think twenty maybe thirty percent of 0:22:50.720 --> 0:22:54.359 what's called a trillion dollars of AI cap ax will 0:22:54.400 --> 0:22:56.600 be the tech players. And you've already seen that all 0:22:56.680 --> 0:23:00.320 the story for Meta, Theamazon, all the Hyperscaros do books, 0:23:01.200 --> 0:23:05.879 but government, the rest of enterprise, that's what's still on 0:23:05.960 --> 0:23:11.239 the comp We only have three percent of enterprises that 0:23:11.320 --> 0:23:13.920