WEBVTT - Cisco Shares Slump, Coinbase Shares Surge 0:00:02.920 --> 0:00:11.000 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.400 --> 0:00:12.160 From the Heart where Innovation, money and power. 0:00:12.280 --> 0:00:17.040 Collie in Silicon Valley, Nbon This is Bloomberg Technology with 0:00:17.160 --> 0:00:19.079 Caroline Hyde and Ed Love Love. 0:00:32.760 --> 0:00:35.400 I'm Caroline Heindel Bloomberg's Well headquarters in New York, and 0:00:35.520 --> 0:00:37.000 I med Love Low in San Francisco. 0:00:37.080 --> 0:00:38.880 This is Bloomberg Technology. 0:00:38.479 --> 0:00:41.440 Coming up in the next hour. Cisco shares under pressure. 0:00:41.840 --> 0:00:45.120 That's after delivering a disappointing outlook again along with plans 0:00:45.120 --> 0:00:46.640 to cut thousands of jobs. 0:00:46.680 --> 0:00:50.080 We have a story plus coinbase earnings out after the bell, 0:00:50.159 --> 0:00:53.000 but shares jumped this morning after receiving an upgrade from 0:00:53.120 --> 0:00:56.600 JP Morgan. Bitcoin holding above fifty two thousand dollars. Will 0:00:56.600 --> 0:00:58.240 break down the numbers and hedge. 0:00:57.960 --> 0:00:59.840 Funds buy into some of the biggest names in tech. 0:01:00.080 --> 0:01:02.480 Fourth quarter Amazon, Intel, and Video among some of the 0:01:02.560 --> 0:01:05.920 favorites that was revealed and yesterday's thirty NEFT filings. We're 0:01:05.959 --> 0:01:08.480 going to walk through the winners and the losers. But 0:01:08.560 --> 0:01:10.800 first let's check in on a key loser that is 0:01:10.840 --> 0:01:13.680 a mover on the day. Some breaking news Teminos based 0:01:13.680 --> 0:01:14.520 over in Europe. 0:01:14.640 --> 0:01:15.200 Confident. 0:01:15.280 --> 0:01:18.360 It says the company this is a software technology story 0:01:18.360 --> 0:01:21.120 in the finance space, so it's confident in the strength 0:01:21.200 --> 0:01:24.760 of their operations, so their financial cash position as well. 0:01:24.920 --> 0:01:26.480 This is after a short note was put out on 0:01:26.520 --> 0:01:31.080 the company six that's the benchmark manager over in Switzerland 0:01:31.120 --> 0:01:34.360 saying that Teminos is suspended from trading until further notice. 0:01:34.400 --> 0:01:36.280 We'll have more in that story as and when needed, 0:01:36.280 --> 0:01:37.680 but for the time being, let's get back to the 0:01:37.720 --> 0:01:41.320 macro picture of what's happening in US trading aside. 0:01:41.000 --> 0:01:42.840 Of what's happening in Europe. We're off by two. 0:01:42.640 --> 0:01:45.040 Tens percent on a NASDAK, some big tech names just 0:01:45.120 --> 0:01:47.040 rolling over coming off a record highs and we're pulling 0:01:47.080 --> 0:01:49.600 down two year yield though actually managing to dive. 0:01:49.400 --> 0:01:49.920 A little bit. 0:01:50.000 --> 0:01:51.760 But this is as we get that retail data that 0:01:51.840 --> 0:01:54.680 showed that not everything is quite as rosy in the 0:01:54.760 --> 0:01:57.880 US economy. Retail sales just falling that little bit lower 0:01:57.920 --> 0:02:00.560 in January under what had been anticipated. Maybe the Fed 0:02:00.640 --> 0:02:03.480 does cut in the second quarter yields. For I'm looking 0:02:03.480 --> 0:02:05.520 at what's happening in the dollar versus the Japanese yen. 0:02:05.600 --> 0:02:07.800 Dollar under pressure across the board all the g G 0:02:07.920 --> 0:02:11.520 ten currencies, but notable even against the yen. Now this 0:02:11.560 --> 0:02:14.000 is as we see Japanese economy as a whole fall 0:02:14.000 --> 0:02:16.320 into a recession, and the yen has been under pressure 0:02:16.360 --> 0:02:17.440 of late. And now as we want to have a 0:02:17.480 --> 0:02:19.400 little look what's happening in the great world of crypto, 0:02:19.440 --> 0:02:21.840 because we're going to dive so much more into ecosystem 0:02:21.880 --> 0:02:23.880 the VC money going into crypto a little bit later 0:02:23.919 --> 0:02:25.520 in the show, but for now we're coming off of 0:02:25.520 --> 0:02:28.080 our hives. But we're still about forty fifty two thousand 0:02:28.120 --> 0:02:30.280 dollars when it comes to the og that is bitcoin 0:02:30.320 --> 0:02:31.480 and what if you've got on the micro. 0:02:32.160 --> 0:02:35.440 A lot going on. Let's start with Cisco cutting jobs. 0:02:35.480 --> 0:02:39.480 Cisco is revising its full year guidance. The story customers 0:02:39.520 --> 0:02:43.080 are worried about the economy. They're pulling back on networking spending. 0:02:43.760 --> 0:02:45.720 We'll get more details on that later in the program. 0:02:45.720 --> 0:02:47.720 I would say Cisco is not down as much as 0:02:47.720 --> 0:02:50.560 it had been earlier in the session. Alphabet parent of Google, 0:02:50.600 --> 0:02:53.359 also interesting. One of the big movies to the downside. 0:02:53.440 --> 0:02:57.000 The information is reporting that open ai is working on 0:02:57.040 --> 0:03:02.040 its own search powered by being not drawing a direct link. 0:03:02.080 --> 0:03:04.560 But there seems to be some pressure resulting from that story. 0:03:04.880 --> 0:03:07.400 In Video one of the interesting stories of the thirteen 0:03:07.480 --> 0:03:10.680 f situation. They're putting money into a lot of the 0:03:10.720 --> 0:03:13.600 ecosystem that their AI accelerations are supporting. 0:03:13.639 --> 0:03:15.840 Will dig into that, and finally Amazon. 0:03:15.480 --> 0:03:18.360 I put those there because basically when I last checked, 0:03:18.360 --> 0:03:21.400 and Video jumped above Amazon in the ranking of biggest 0:03:21.400 --> 0:03:22.640 companies by market cap. 0:03:22.760 --> 0:03:24.400 It's a pretty close run race right. 0:03:24.280 --> 0:03:26.600 Now, but when you compare them in terms of revenue, 0:03:26.919 --> 0:03:29.720 it's just such a fascinating story. And within Video earnings 0:03:29.720 --> 0:03:32.360 on deck next week that is certainly one where we 0:03:32.480 --> 0:03:35.480 have to think about the valuation. DoorDash is the other one. 0:03:35.480 --> 0:03:37.680 After market. The gig economy has been the story of 0:03:37.720 --> 0:03:40.960 the week. DoorDash reports it's up one point seventy five percent. 0:03:41.200 --> 0:03:44.280 Does it benefit from the same things that Uber and 0:03:44.360 --> 0:03:47.800 Lyft told us in the last seven days or so, Karra, That's. 0:03:47.680 --> 0:03:48.880 What we've got to focus in on. 0:03:48.920 --> 0:03:51.040 We've got the perfect guest to really talk us through 0:03:51.080 --> 0:03:52.840 some of the key earnings still to come and that 0:03:52.920 --> 0:03:55.600 have been in the past. Ever course, Mark Mahoney is 0:03:55.720 --> 0:03:57.320 joining us on the array that has been. 0:03:57.800 --> 0:04:00.600 Let's just start on dash push us forward. Seems as 0:04:00.600 --> 0:04:02.720 though the consumer is resilient. 0:04:02.360 --> 0:04:05.880 And so some of these gig economy companies are resilient, Caroline. 0:04:05.440 --> 0:04:07.480 I think that's right. I think your interpretation is correct. 0:04:07.840 --> 0:04:11.640 That's sort of what we learned from Uber and Lyft. Now, 0:04:11.640 --> 0:04:14.520 these are all marketplaces, and so you've got to focus 0:04:14.520 --> 0:04:18.960 on two things, the consumer demand dynamics and also the 0:04:19.000 --> 0:04:23.320 supply dynamics. But the read throughs there, I think we're 0:04:23.720 --> 0:04:28.240 sort of equally positive. Lift and Uber talking about twenty 0:04:28.240 --> 0:04:31.800 five thirty percent rise in number of drivers on a 0:04:31.839 --> 0:04:34.920 year over year basis. Drivers couriers, couriers in the case 0:04:34.960 --> 0:04:38.279 of Uber Eats, Uber Delivery, so. 0:04:38.680 --> 0:04:40.640 And that's for a variety of different reasons. 0:04:40.640 --> 0:04:43.839 But I do think that the services just become better 0:04:44.360 --> 0:04:51.000 working experiences. There's been a lot of technical improvements in 0:04:51.080 --> 0:04:53.279 terms of the app for the couriers, for the drivers, 0:04:53.640 --> 0:04:56.040 and I think the economics have got better. There's better 0:04:56.080 --> 0:04:58.960 pay to be had, So anyway, all of that should 0:04:59.080 --> 0:05:02.320 come through. We should see in door Dash's numbers tonight. Now, 0:05:02.360 --> 0:05:04.440 this company's going to give four to your guides in there. 0:05:04.800 --> 0:05:06.920 You know, companies are usually conservative going to give four 0:05:06.960 --> 0:05:09.520 to your guides, So that could be a risk factor here, 0:05:09.880 --> 0:05:12.120 But I think the overall macro trend I think is 0:05:12.160 --> 0:05:15.280 positive for door dash and the gig economy trends I 0:05:15.279 --> 0:05:18.640 think are specifically very positive for dash Mark. 0:05:18.720 --> 0:05:21.679 There is one story that everyone has been talking about 0:05:21.720 --> 0:05:23.760 in the past twenty four hours. It is the case 0:05:23.839 --> 0:05:27.040 of the errands zero. Have a listened to this really quick. 0:05:27.440 --> 0:05:29.839 Look at the growth, look at the fundamentals of the financials, 0:05:29.880 --> 0:05:32.039 and to be very clear, this was it was a 0:05:32.160 --> 0:05:34.640 bad error, but it was one zero in a press 0:05:34.640 --> 0:05:37.880 release and you know a lot of other pages, and 0:05:37.880 --> 0:05:40.120 of course we corrected it within seconds of finding it. 0:05:40.240 --> 0:05:42.599 So I think, you know, like with any mistake, I 0:05:42.600 --> 0:05:44.920 think it's not so much about the mistake itself, it's 0:05:44.960 --> 0:05:47.160 also about how you correct for it. And we've corrected 0:05:47.160 --> 0:05:49.560 for it obviously in the moment putting out new materials, 0:05:49.600 --> 0:05:52.520 but also doing a really deep process s type including 0:05:52.560 --> 0:05:55.159 having our own internal audit team, a separate team look 0:05:55.160 --> 0:05:56.640 and figure out how we can make sure we never 0:05:56.640 --> 0:05:57.719 make a mistake like this again. 0:05:58.080 --> 0:06:01.039 There is That was David Risch Lift CEO talking to 0:06:01.120 --> 0:06:01.800 us yesterday. 0:06:01.839 --> 0:06:04.320 Mark. Have you ever seen anything like that in your career? 0:06:04.960 --> 0:06:07.920 No, I hadn't, and I remember, you know, looking at 0:06:07.920 --> 0:06:10.080 the press release, looking at the five hundred BIPs of 0:06:10.839 --> 0:06:14.240 guided margin expansion and then hearing the CFO talking about 0:06:14.360 --> 0:06:17.479 fifty BIPs that I world around by chairs a way 0:06:17.520 --> 0:06:20.760 eight or there's a problem here, but no, I haven't. 0:06:20.760 --> 0:06:21.719 But look, it's a mistake. 0:06:21.720 --> 0:06:24.360 And I think David's comments were right, which is, well, 0:06:24.400 --> 0:06:28.280 make mistakes. That's that's that's not terribly interesting. What's interesting 0:06:28.360 --> 0:06:30.240 is how people react to them and whether they, you know, 0:06:30.320 --> 0:06:32.960 come out admit that they made a mistake and correct it. 0:06:32.960 --> 0:06:35.640 And I think they did a decent job of doing that. 0:06:35.800 --> 0:06:38.360 It's it's it's unfortunate, but you know, the markets at 0:06:38.360 --> 0:06:40.240 the end of the Day's how with Bobus. I mean 0:06:40.240 --> 0:06:43.719 the margins are still improving, uh and uh, and the 0:06:43.839 --> 0:06:46.880 demand chats are a better and there are focusing on 0:06:46.960 --> 0:06:47.720 free cash flow. 0:06:48.000 --> 0:06:51.800 I mean, that's just a there's a profitability inflection point here. 0:06:51.839 --> 0:06:54.039 All of these businesses, if you give them enough scale, 0:06:54.160 --> 0:06:57.080 you give them enough revenue growth, don't get the profitability. 0:06:57.360 --> 0:07:01.000 People were very uncertain about that when the IPOs lift 0:07:01.040 --> 0:07:04.240 an uber curve back in twenty nineteen, even more uncertain 0:07:04.360 --> 0:07:07.400 during COVID, but it's come through. These companies have grown, 0:07:07.880 --> 0:07:11.200 their bases are built up, their drivers, supplies improved, their 0:07:11.680 --> 0:07:15.440 their consumer demand has improved, and through all of that 0:07:15.600 --> 0:07:19.000 profits so starting to really show up, and the investors 0:07:19.040 --> 0:07:21.080 are reacting very positively that they should be. 0:07:22.280 --> 0:07:24.679 Jazz didn't react positively to Airbnb. 0:07:24.840 --> 0:07:26.360 Mark K know you've been looking at that stack the 0:07:26.400 --> 0:07:29.880 company and deciding whether ultimately it should be a long 0:07:29.960 --> 0:07:31.760 term bet or not. What do you make of Airbnb 0:07:31.920 --> 0:07:33.600 as it does see just a little bit of cooling 0:07:33.600 --> 0:07:34.040 in the band. 0:07:35.560 --> 0:07:38.520 Well, it's the highest multiple stock in travel trades, like 0:07:38.560 --> 0:07:42.120 thirty times thirty five times earnings. I do prefer booking 0:07:42.520 --> 0:07:46.240 a BKAT and I do prefer Expedia Expe to airbab. 0:07:46.800 --> 0:07:50.640 Airbnb's results were fined. They we thought they were going 0:07:50.720 --> 0:07:52.640 to have to warrant about their March border. They did, 0:07:52.760 --> 0:07:54.560 But just because you had a real tough compy, you 0:07:54.600 --> 0:07:57.160 had to pulled forward a demand beginning of twenty twenty 0:07:57.160 --> 0:07:59.480 three that people just had to remember. And why did 0:07:59.560 --> 0:08:01.840 you pull forward of demand until early twenty twenty three 0:08:01.840 --> 0:08:03.880 Because everybody wanted to travel, but this was in a 0:08:04.680 --> 0:08:08.000 by by Western centers. It was high inflation environments, and 0:08:08.040 --> 0:08:10.440 so people booked early so that they could avoid prices. 0:08:10.480 --> 0:08:11.480 Bikes during the summer. 0:08:11.600 --> 0:08:14.000 Those price bikes, by the way, didn't happen, but people 0:08:14.080 --> 0:08:15.720 were concerned about earlier in the year. 0:08:15.760 --> 0:08:18.000 So you have put forward of demand created tough comps. 0:08:18.280 --> 0:08:20.360 But as we'll go through the year, I think Airbnb, 0:08:20.520 --> 0:08:22.800 spine the growth listen or what are you oh? 0:08:22.960 --> 0:08:24.560 A technical difficulty mark? 0:08:24.600 --> 0:08:26.560 I think we oh, you're back. 0:08:26.440 --> 0:08:29.880 And that's the Olympics and every legal benefit mark. 0:08:29.920 --> 0:08:31.240 We lost you for a second there, but that gave 0:08:31.280 --> 0:08:33.720 me a chance to look at my Bloomberg terminal. Alphabet 0:08:33.800 --> 0:08:37.160 paranor Google's the biggest points drag on the Nasdaq one 0:08:37.200 --> 0:08:40.840 hundred this morning. The story the Information is reporting is 0:08:40.880 --> 0:08:44.400 that open ai is coming with its own search partly 0:08:44.480 --> 0:08:47.320 powered by Being. The stock seems to be reacting with 0:08:47.360 --> 0:08:49.720 down three percent on the A shares. What do you 0:08:49.800 --> 0:08:51.920 make of that? You know, Alphabet's company you cover. 0:08:52.400 --> 0:08:56.480 I'd be surprised if open Ai, with an integrated search 0:08:56.480 --> 0:09:00.360 engine with Being would really take away search share from Google. 0:09:00.800 --> 0:09:02.760 You'd have to do a lot of things to take 0:09:02.800 --> 0:09:04.720 away search share from Google. You have to come up 0:09:04.760 --> 0:09:06.600 with a much better search product. You can't just have 0:09:06.679 --> 0:09:09.680 a meet to products. So if Google's going to trade 0:09:09.679 --> 0:09:12.360 off three percent I probably buy the stock just based 0:09:12.360 --> 0:09:15.680 on that. I think that correction will be corrected, but 0:09:15.760 --> 0:09:19.200 we'll see. There's more competition arguably now for Google Search. 0:09:19.400 --> 0:09:21.640 I just think Google searches continue to improve. I think 0:09:21.679 --> 0:09:24.920 some of these Gemini features that they're rolling out are 0:09:24.920 --> 0:09:27.680 going to improve Google Search. So I'll take the other 0:09:27.760 --> 0:09:30.960 side of a three percent correction on market share fears 0:09:30.960 --> 0:09:31.480 for Google. 0:09:31.920 --> 0:09:32.160 Mark. 0:09:32.200 --> 0:09:35.000 We just have thirty seconds of the ginormous universe of 0:09:35.080 --> 0:09:38.839 tech companies you cover who won earnings period so. 0:09:38.880 --> 0:09:44.199 Far, Amazon and especially Meta. Everybody's spending more on Meta 0:09:44.360 --> 0:09:48.600 today and margins and profits are arising there dramatically. Metal 0:09:48.640 --> 0:09:51.640 looks like a really well positioned company in stock for twenty. 0:09:51.320 --> 0:09:53.360 Four all right, I have a coast, Mark Mahanean, as 0:09:53.360 --> 0:09:56.640 I said in massive universe of different technology companies cover. 0:09:56.679 --> 0:09:58.160 That's why I love having you on the show. Thank 0:09:58.200 --> 0:09:58.800 you very much. 0:10:07.160 --> 0:10:09.920 Cisco's the backbone of the Internet, as you know, and 0:10:10.040 --> 0:10:13.600 there routers, network server business, these things, their. 0:10:13.440 --> 0:10:16.440 Switches are truly important to bring it. 0:10:16.480 --> 0:10:19.960 In cash flow, but the future is in services. 0:10:21.520 --> 0:10:24.600 That was David Barnson, their CEO of the Buns and Group. 0:10:24.640 --> 0:10:27.640 And the thing is things didn't really transpire that way. 0:10:27.679 --> 0:10:30.240 He was speaking twenty four hours ago. But last night 0:10:30.760 --> 0:10:34.600 Cisco out with some pretty negative news, cutting headcount by 0:10:34.640 --> 0:10:38.400 five percent, revising their full year guidance, and saying, our 0:10:38.440 --> 0:10:41.040 customers are worried about the economy, so they're pulling back 0:10:41.080 --> 0:10:44.320 on spending it. At the same time, that ripple effect 0:10:44.360 --> 0:10:46.600 from AI, it's just not there for Cisco. I want 0:10:46.600 --> 0:10:49.200 to bring in bloomboats. Brodie Ford out in New York City. 0:10:49.240 --> 0:10:52.040 I mean, for me, that was the story, the difference 0:10:52.040 --> 0:10:57.520 between networking and infrastructure, the Hyperscali's data center, Cisco's not 0:10:57.600 --> 0:10:58.320 quite there yet. 0:10:59.000 --> 0:11:01.319 Yeah, I think this is a song we have heard 0:11:01.360 --> 0:11:04.240 before that corporate customers are a little worried. 0:11:04.640 --> 0:11:04.840 You know. 0:11:05.040 --> 0:11:07.679 Cisco said that they bought all this stuff over the 0:11:07.760 --> 0:11:11.920 last couple of quarters, right, all of this infrastructure for 0:11:12.080 --> 0:11:15.080 servers and internet, and they're saying, wait, let me install 0:11:15.120 --> 0:11:19.040 all this stuff before I buy more, because that looming 0:11:19.080 --> 0:11:22.800 recession could still be there. So, yeah, those corporate IT budgets. 0:11:23.160 --> 0:11:25.400 As much as people have said that they are coming back, 0:11:25.440 --> 0:11:28.360 it's clear from Cisco that folks are still a little 0:11:28.360 --> 0:11:28.960 bit anxious. 0:11:29.559 --> 0:11:33.600 And what's interesting is last quarter they missed stockfell and 0:11:33.760 --> 0:11:36.000 Chuck Robins said, I wish I could blame the Macro 0:11:36.480 --> 0:11:37.920 and I'm not back this time. 0:11:38.000 --> 0:11:39.760 He kind of blamed the Macro. 0:11:39.960 --> 0:11:42.720 Yeah, and he's not blaming a big a position that 0:11:42.760 --> 0:11:43.200 they made. 0:11:43.320 --> 0:11:43.640 Yeah. 0:11:43.679 --> 0:11:47.480 Absolutely, twenty eight billion dollars for Splunk. It is on 0:11:47.600 --> 0:11:51.000 the way. It has not closed yet. Big companies will 0:11:51.000 --> 0:11:54.839 often say that mergers don't necessarily cause job reductions. 0:11:55.520 --> 0:11:56.480 It seems like they usually do. 0:11:56.920 --> 0:11:59.720 Right, They're about to bring in a couple thousand workers 0:11:59.720 --> 0:12:02.040 from there's going to be overlap there, and I think 0:12:02.040 --> 0:12:03.960 most people watching us say that this is kind of 0:12:03.960 --> 0:12:07.320 preempting some of that overlap or an environment where companies 0:12:07.360 --> 0:12:09.520 want to keep profits as high as they can keep 0:12:09.559 --> 0:12:12.240 expenses low. I would expect part of this is due 0:12:12.280 --> 0:12:13.760 to that Splunk acquisition and. 0:12:13.720 --> 0:12:16.280 Spunk have been laying off workers as well, and anormation 0:12:16.480 --> 0:12:18.880 maybe or just reacting to how the market is and 0:12:19.200 --> 0:12:22.800 just fold in whether if they are blaming Macro this time, 0:12:23.000 --> 0:12:25.280 how much Also just people have just sat on a 0:12:25.280 --> 0:12:27.600 lot of gear and they haven't deployed it yet. 0:12:27.720 --> 0:12:31.520 Ultimately, absolutely hardware it takes time to install, right, I Mean, 0:12:31.600 --> 0:12:33.920 there was a period where there's all these backlogs and 0:12:33.960 --> 0:12:36.120 people couldn't get the things they needed, whether that was 0:12:36.240 --> 0:12:40.160 en routers or computers. That eased up and people started buying. 0:12:40.240 --> 0:12:41.960 They said, let me get it while I can, right, 0:12:42.480 --> 0:12:44.080 And I think now they're sitting on a lot of 0:12:44.080 --> 0:12:46.240 this stuff and they're not wanting to buy more. At 0:12:46.320 --> 0:12:48.240 least that's the narrative we heard during the earnings call 0:12:48.320 --> 0:12:48.800 last night. 0:12:50.240 --> 0:12:53.040 The numbers are that they've revised their full year sales 0:12:53.040 --> 0:12:56.120 Garden guidance down by around two to three billion dollars 0:12:56.160 --> 0:12:59.679 five percent. Headcount trim is about four thousand staff, so 0:13:00.280 --> 0:13:04.040 it's it's not severe, but it doesn't inspire confidence. Tell 0:13:04.080 --> 0:13:06.719 us about the partnership with Nvidia, because I think there 0:13:06.800 --> 0:13:09.480 is some optimism from the cell side analyst this morning 0:13:09.760 --> 0:13:11.480 that that might plot them apart forward. 0:13:12.120 --> 0:13:15.120 Yes, there is some optimism there, but I will also 0:13:15.280 --> 0:13:17.680 say that if I wanted to count off all the 0:13:17.760 --> 0:13:20.920 companies I've heard of with partnerships with Nvidia, I wouldn't 0:13:20.920 --> 0:13:23.560 have enough fingers, right. I mean, it's hard to tell 0:13:23.679 --> 0:13:25.439 exactly how much uplift we get. 0:13:25.800 --> 0:13:30.120 Brady Ford, you going sorry, you're right, no, No. 0:13:30.880 --> 0:13:33.720 Another funny wrinkle here is that in the networking space. 0:13:33.760 --> 0:13:37.240 Cisco has been unquestioned for a long time. We have 0:13:37.280 --> 0:13:40.840 another funny merger coming Hpe and Juniper and then expressly 0:13:40.880 --> 0:13:43.800 say that we are doing this to take on Cisco. 0:13:44.640 --> 0:13:46.480 I think that will take, you know, a number of 0:13:46.559 --> 0:13:49.200 quarters to see whether that really hurts them or not. 0:13:49.320 --> 0:13:51.360 But I think that is another wrinkle here, that there 0:13:51.400 --> 0:13:54.880 is a looming competitive concerns. So one more thing to 0:13:54.920 --> 0:13:56.840 consider here. Maybe in Vidia can't save them. 0:13:57.600 --> 0:13:59.480 Oh, in Vidio not to the rest of this time. 0:13:59.480 --> 0:14:01.640 It has been to Thesco of certain share prices today 0:14:01.640 --> 0:14:03.120 of others that will dig into in a bit later. 0:14:03.200 --> 0:14:05.400 Brodie Ford Rank, you always a joy to. 0:14:05.400 --> 0:14:06.000 Have on the show. 0:14:06.040 --> 0:14:10.439 Meanwhile, coming up AI started AI startup Lander is now 0:14:10.480 --> 0:14:12.080 to one point five billion dollar valuation. 0:14:12.120 --> 0:14:13.240 It's the latest funning round it. 0:14:13.360 --> 0:14:16.600 CEO is going to be joining us, Stefan Allaman joining 0:14:16.679 --> 0:14:17.240 us next ed. 0:14:17.280 --> 0:14:18.280 But you've got something to look. 0:14:18.160 --> 0:14:21.960 Ahead to, Yes, super Micro, this speaks to every story 0:14:22.000 --> 0:14:24.200 we've just covered. The stock is now up two hundred 0:14:24.240 --> 0:14:26.560 and thirty six percent year to date, nine percent in 0:14:26.600 --> 0:14:29.680 the session. Bank of America initiating coverage with a by 0:14:29.840 --> 0:14:34.760 rating one thousand and forty price target. This is basically 0:14:35.080 --> 0:14:38.280 what Cisco is not. It's everything in the data center 0:14:38.320 --> 0:14:41.640 and the server design, apart from the AI accelerator itself. 0:14:41.800 --> 0:14:44.400 So they're a real beneficiary of the infrastructure build out 0:14:44.400 --> 0:14:48.120 we're seeing and they've massively outperformed every index, even in 0:14:48.240 --> 0:14:51.640 Vidia by many factors. And so this is one that 0:14:51.680 --> 0:14:54.200 we want to talk about more. Super micro computing up 0:14:54.280 --> 0:15:05.160 nine percent. This is Bloomberg Technology. 0:15:06.800 --> 0:15:08.000 Time now for talking tech. 0:15:08.040 --> 0:15:10.800 And first up, a SpaceX rockets blasted off in the 0:15:10.800 --> 0:15:13.360 middle of the night, aiming to make the first touchdown 0:15:13.640 --> 0:15:16.680 of a US made spacecraft on the Moon in fifty years, 0:15:16.800 --> 0:15:20.080 called an Oversea The spacecraft, built in Houston, is based 0:15:20.240 --> 0:15:23.160 initiative machines of the company behind it and will make 0:15:23.200 --> 0:15:27.160 its touchdown attempt on February twenty second. Meanwhile, chip maker 0:15:27.400 --> 0:15:31.000 Rhnessus agreed to buy software firm Altium for nearly six 0:15:31.000 --> 0:15:33.400 billion dollars, the biggest acquisition yet for the Australian listed 0:15:33.440 --> 0:15:36.640 company by a Japanese buyer. Now Rnessas, which is a 0:15:36.720 --> 0:15:39.880 Toyota supply is looking to lower its reliance on making 0:15:39.960 --> 0:15:41.000 automotive chips. 0:15:41.200 --> 0:15:42.720 Plus Taiwan stop. 0:15:42.480 --> 0:15:45.920 Benchmark surge to its highest level on record, boosted by 0:15:45.960 --> 0:15:47.800 what expectations. 0:15:47.160 --> 0:15:48.240 Of strong AI demand. 0:15:48.440 --> 0:15:51.360 The tai x rallied that says TSMC, which has a 0:15:51.360 --> 0:15:53.480 waiting of around thirty percent of the index, reported its 0:15:53.560 --> 0:15:55.640 January sales and the rose almost eight percent from a 0:15:55.680 --> 0:15:58.280 year ago. It really is propelling the chipmaker's market capitol 0:15:58.360 --> 0:16:00.640 record five hundred seventy five billion dollars. It's enough to 0:16:00.640 --> 0:16:04.040 surpass Visa to become the world's twelfth most valuable company. 0:16:04.120 --> 0:16:05.080 And what have you got on ai? 0:16:05.800 --> 0:16:06.120 Okay? 0:16:06.200 --> 0:16:10.080 Lambda, which provides cloud computing services and computers to train 0:16:10.200 --> 0:16:13.760 AI software, is announcing a Series C funding round three 0:16:13.840 --> 0:16:17.000 hundred and twenty million dollars, valuing the company at one 0:16:17.080 --> 0:16:20.800 point five billion dollars. The financing was led by billionaire 0:16:20.840 --> 0:16:25.440 Thomas tools us Innovavid Technology, and includes participation from the 0:16:25.560 --> 0:16:29.160 likes of B Capital, sk Telecom, as well as Bloomberg Beta, 0:16:29.240 --> 0:16:32.360 the venture capital arm of Bloomberg Bloomberg LP, of course, 0:16:32.400 --> 0:16:35.200 the parent company of Bloomberg Television. Let's bring in Labda 0:16:35.280 --> 0:16:38.400 CEO Steven Stephen Balaban to join us for more. Let's 0:16:38.400 --> 0:16:41.000 go back to basics. What is it that Lambda does? 0:16:41.040 --> 0:16:42.760 What do you build and what do you offer? 0:16:43.120 --> 0:16:47.280 Lambda is an AI compute platform. We have GPU servers, 0:16:47.560 --> 0:16:50.880 GPU workstations, and GPU cloud service that we provide to 0:16:50.920 --> 0:16:52.240 AI developers. 0:16:52.320 --> 0:16:55.640 And so this money is a significant series C. We've 0:16:55.640 --> 0:16:57.760 done a lot on this show about the buildout and 0:16:57.840 --> 0:17:02.240 IAI infrastructure. We're literally talking server designs going into data 0:17:02.280 --> 0:17:05.320 centers normally run by the hyperscalers. What are you going 0:17:05.400 --> 0:17:06.520 to take that cash. 0:17:06.280 --> 0:17:06.840 And do with it? 0:17:07.240 --> 0:17:09.239 Well, we're going to be deployed tens of thousands of 0:17:09.320 --> 0:17:12.480 new and video GPUs into our data center and to 0:17:13.160 --> 0:17:15.840 providing those GPUs as part of our cloud service. 0:17:16.200 --> 0:17:19.760 Okay, go back to the origin story here, Stephen, because 0:17:19.760 --> 0:17:20.879 it's an interesting one. 0:17:21.240 --> 0:17:22.560 You weren't always in this game. 0:17:22.800 --> 0:17:26.720 In fact, you were making facial recognition technology and ways 0:17:26.720 --> 0:17:29.600 in which I could augment my face RAI and then 0:17:29.680 --> 0:17:34.159 your own bills for your own cloud consumption got too high, 0:17:34.320 --> 0:17:34.960 so tell us that. 0:17:35.480 --> 0:17:35.760 Yeah. 0:17:35.800 --> 0:17:38.399 So LAMB just started off as a face and image 0:17:38.440 --> 0:17:42.639 recognition software development company. So we were AI engineers ourselves, 0:17:43.040 --> 0:17:46.679 and we ended up getting a really high cloud service 0:17:46.720 --> 0:17:49.600 bill and we figured, you know what, it was a 0:17:49.640 --> 0:17:53.440 lot more cost effective for us to redesign and reimagine 0:17:53.560 --> 0:17:56.879 what an AI cloud should look like in the age 0:17:56.920 --> 0:18:00.840 of training neural networks and inferencing neural network and so 0:18:01.000 --> 0:18:03.800 that's how we pivoted into the cloud business that we're 0:18:03.800 --> 0:18:04.160 in today. 0:18:04.280 --> 0:18:07.600 And Stephen, I really want to try and understand competitors 0:18:07.680 --> 0:18:08.679 versus frenemies. 0:18:09.160 --> 0:18:10.280 I find it very hard. 0:18:10.119 --> 0:18:13.000 To basically get to grips with who you're servicing, who 0:18:13.000 --> 0:18:14.960 your clients are, because it looks as though some of 0:18:14.960 --> 0:18:17.919 your clients are even some of the hyperscalers ultimately. 0:18:17.560 --> 0:18:19.159 You're going in competition with. 0:18:19.280 --> 0:18:21.440 Can you just tell us how ultimately you think the 0:18:21.520 --> 0:18:22.760 layer of the land will look like in. 0:18:22.680 --> 0:18:23.360 Five years time. 0:18:24.359 --> 0:18:28.919 Yeah, So Landa's customers include, you know, trillion dollar market 0:18:28.920 --> 0:18:33.040 cap Fortune five hundred companies, companies that are major enterprises 0:18:33.080 --> 0:18:36.600 like Rakuten who are integrating AI into their products and services, 0:18:36.760 --> 0:18:40.399 and venture back startup companies like any Scale, and so 0:18:40.960 --> 0:18:44.840 you know, we really primarily provide and cater towards that 0:18:44.920 --> 0:18:50.480 AI developer, and that's that's who who we've been basically 0:18:50.480 --> 0:18:51.560 providing our services to. 0:18:53.280 --> 0:18:56.080 Steve, I'm just really interested on the hardware side of 0:18:56.080 --> 0:19:00.359