WEBVTT - Nvidia Snaps Rout and Oracle Warns of TikTok Impact 0:00:01.400 --> 0:00:05.080 From Mahard that we're innovation, money and power. Collie in 0:00:05.200 --> 0:00:10.120 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hide 0:00:10.160 --> 0:00:11.559 and Ed Lovelove. 0:00:25.480 --> 0:00:28.560 A Meed Lovelow in San Francisco. Caroline hides off. This 0:00:28.600 --> 0:00:31.520 is Bloomberg Technology coming up in video snaps. It's three 0:00:31.600 --> 0:00:34.440 day route that wiped four hundred and thirty billion dollars 0:00:34.640 --> 0:00:38.519 off its market cap. Full analysis ahead, plus Oracle warning 0:00:38.720 --> 0:00:42.479 of a financial impact to its business should TikTok be 0:00:42.560 --> 0:00:45.279 banned in the US? Details to come and we go 0:00:45.360 --> 0:00:49.479 live to our Bloomberg invest Summit, uniting leaders in asset management, banking, 0:00:49.760 --> 0:00:51.599 wealth and private markets. 0:00:51.960 --> 0:00:54.000 Some key conversations to come. 0:00:54.120 --> 0:00:56.279 Let's get to financial markets for the only thing that 0:00:56.400 --> 0:00:59.600 everyone is talking about is in video. We have rebounded 0:00:59.640 --> 0:01:02.800 up aroun three percent in the Tuesday session, but it 0:01:02.840 --> 0:01:05.880 follows three straight days of declines which total more than 0:01:05.920 --> 0:01:10.119 ten percent, so therefore a technical correction and also four 0:01:10.240 --> 0:01:13.240 hundred and thirty billion dollars of market cap shed. There's 0:01:13.240 --> 0:01:17.240 a lot of conversation narrative around valuation but also the 0:01:17.280 --> 0:01:20.760 predictability of sales. How much money in video is going 0:01:20.800 --> 0:01:23.600 to make? It's been really difficult, whether you're a sell 0:01:23.680 --> 0:01:28.000 side analyst or even management to correctly say how much 0:01:28.000 --> 0:01:30.720 revenue is going to come in, particularly with new generations 0:01:30.720 --> 0:01:34.160 of AI accelerator coming online. So from a market cap perspective, 0:01:34.520 --> 0:01:36.600 this is what we're supposed to look at in Video 0:01:36.680 --> 0:01:39.480 down that's the same chart market cap. The point is 0:01:39.760 --> 0:01:43.000 it's below Apple, it's below Microsoft. So in that time period, 0:01:43.480 --> 0:01:45.280 in Video has gone from being the most valuable company 0:01:45.319 --> 0:01:47.480 in the world down a few pegs. Jomping me into 0:01:47.480 --> 0:01:48.760 my Bloomberg terminal and look. 0:01:48.600 --> 0:01:49.120 At this chart. 0:01:49.160 --> 0:01:52.120 Because of all the anxiety around the selloff, there is 0:01:52.200 --> 0:01:56.280 also some I guess sanguine thinking. From a technical perspective, 0:01:56.520 --> 0:01:59.400 it's a stock that continues to trade pretty handsomely above 0:01:59.520 --> 0:02:02.400 it's fifty and one hundred day moving average. We're trading 0:02:02.400 --> 0:02:04.600 at one hundred and twenty two dollars a share, and 0:02:04.640 --> 0:02:07.000 people see one hundred and fifteen dollars a share for 0:02:07.040 --> 0:02:09.720 those of you who follow the technicals as a key 0:02:09.760 --> 0:02:12.720 level of resistance. Back from a short break, and I'm 0:02:12.720 --> 0:02:15.880 delighted to be reunited on set with Bloomberg's Ian King. 0:02:16.240 --> 0:02:18.360 I want to go back to that idea of how 0:02:18.360 --> 0:02:21.519 difficult it is to forecast sales because over the weekend, 0:02:21.560 --> 0:02:25.040 that's what we're all talking about. In part, it's because 0:02:25.520 --> 0:02:28.440 since this all kicked off in twenty twenty three, every 0:02:28.480 --> 0:02:31.360 time they book revenue, it always comes in pretty handsomely 0:02:31.400 --> 0:02:34.800 above the midpoint of the guidance that Jensen gives, and 0:02:34.880 --> 0:02:37.440 it's difficult for the cell size to say, well, what 0:02:37.520 --> 0:02:38.160 happens next? 0:02:38.400 --> 0:02:39.839 Yeah, no, you're absolutely right. 0:02:39.919 --> 0:02:44.240 They are effectively over shooting expectations at every point, and 0:02:44.280 --> 0:02:46.400 there are a number of factors that play into that, 0:02:46.440 --> 0:02:50.080 including supply, including this kind of lumpiness of demand because 0:02:50.080 --> 0:02:53.359 they only have really a small number of large customers. 0:02:53.520 --> 0:02:55.760 So all of those things make it very difficult. But 0:02:55.840 --> 0:02:59.120 at a certain point, you know, things will even out. 0:02:59.160 --> 0:03:02.800 Supply will catch with demand, these big customers will decide 0:03:02.840 --> 0:03:06.079 they've got enough infrastructure for the time being, and then 0:03:06.120 --> 0:03:08.839 the story changes. Then other factors come in, and it's 0:03:08.880 --> 0:03:10.840 when do we reach that transition point? 0:03:11.000 --> 0:03:13.640 As you heard Ian over in New York City Bloomberg Investor, 0:03:13.760 --> 0:03:15.800 it's underway. Some big names have been attendance and what 0:03:15.880 --> 0:03:17.560 is it do you think they've been talking about? 0:03:17.639 --> 0:03:19.120 It's in Vidia. Listen to this real quick. 0:03:20.600 --> 0:03:22.280 I mean, if you look at the chart on in video, 0:03:22.320 --> 0:03:25.240 you can barely see the correction, so I mean, you know, 0:03:25.320 --> 0:03:28.000 on a percentage basis, it's down something like ten percent, 0:03:28.120 --> 0:03:30.520 but you have to like peer really really carefully at 0:03:30.520 --> 0:03:34.839 the chart to see that move. So I don't think 0:03:34.840 --> 0:03:36.760 it means anything the people were on that stock, nor 0:03:36.840 --> 0:03:40.240 what's expensive. But they're buying into a story, and as 0:03:40.280 --> 0:03:42.800 long as the story is intact, like in video is 0:03:42.800 --> 0:03:46.800 obviously intact, the story is going to continue. 0:03:47.400 --> 0:03:51.200 Steve Wiseman of The Big Short Fame on Bloomberg's Avliance 0:03:51.200 --> 0:03:51.720 earlier today. 0:03:51.720 --> 0:03:52.840 He talked about the story. 0:03:53.240 --> 0:03:56.000 The thing that I think investors are finding difficult is 0:03:56.480 --> 0:03:59.480 the story of new products coming online. So H two 0:03:59.600 --> 0:04:03.680 hundred is the kind of middle ground generation AI accelerator 0:04:03.720 --> 0:04:06.640 that's ramping right now. But Jensen told us May twenty 0:04:06.640 --> 0:04:10.480 second at earnings that Blackwell, which is the next generation accelerator, 0:04:10.520 --> 0:04:14.080 will also ship this year, and so working out where 0:04:14.080 --> 0:04:15.840 they're going and how much money they'll make from them 0:04:15.880 --> 0:04:16.440 is really tough. 0:04:16.839 --> 0:04:19.240 It is, I mean, but that's really something that the 0:04:19.240 --> 0:04:19.960 guys who run the. 0:04:20.080 --> 0:04:22.320 Xpl you should be doing a good job with. 0:04:23.000 --> 0:04:25.320 What I think is more difficult, and what causes more 0:04:25.360 --> 0:04:28.520 concern is all of this infrastructure that's being put into place, 0:04:28.760 --> 0:04:31.479 is it paying off, is it making money or is 0:04:31.520 --> 0:04:33.800 it just being basically thrown at the wall to see 0:04:33.800 --> 0:04:36.240 what will stick. And I think that's where if there 0:04:36.279 --> 0:04:40.440 is a fundamental concern, we want to see AI translate 0:04:40.600 --> 0:04:43.960 into real revenue and real profit at some of these 0:04:44.000 --> 0:04:45.720 guys who are paying all of this money for all 0:04:45.720 --> 0:04:46.600 of this in video. 0:04:46.400 --> 0:04:48.599 Gear bloom Bezi and King who leads us and making 0:04:48.640 --> 0:04:51.280 ducts a coverage at Bloomberg but for quite a long time. 0:04:51.400 --> 0:04:54.240 Also like let our stocks team, we will continue talking 0:04:54.240 --> 0:04:56.880 about in video. Bloomberg invest is now underway in the 0:04:56.880 --> 0:04:59.599 heart of New York's financial district, where leaders in asset 0:04:59.680 --> 0:05:03.200 managed and banking well from private markets are connecting with 0:05:03.320 --> 0:05:07.600 world class journalists led by Bloomboa's Global Finance correspondent Shnali 0:05:07.680 --> 0:05:11.960 Bassek to track the future's greatest risks and opportunities now. 0:05:11.960 --> 0:05:16.400 Moments ago, Felipe Lafont of COTU was asked by David Rubinstein, 0:05:16.480 --> 0:05:19.760 who would be the winner in AI, existing big tech 0:05:19.800 --> 0:05:22.160 companies or smaller startups listen to. 0:05:22.080 --> 0:05:27.360 This at the beginning of these new waves, the new 0:05:27.400 --> 0:05:30.280 winners ten or twenty years out. Some of them are 0:05:30.400 --> 0:05:33.760 existing companies and some of them are new. But the 0:05:33.839 --> 0:05:36.719 new ones that get big, there's maybe one a year. 0:05:37.120 --> 0:05:37.840 No more. 0:05:40.120 --> 0:05:43.239 Delighted to say, as if by magic Bloomberg Shnale Bassek 0:05:43.320 --> 0:05:44.320 joins us now with more. 0:05:44.360 --> 0:05:45.640 This is a really big event. 0:05:45.760 --> 0:05:50.040 And it's not surprising that whether you are in the 0:05:50.080 --> 0:05:53.920 private equity or private growth equity area of the market, 0:05:54.080 --> 0:05:56.120 or you're a hedge fund or whatever it is you are, 0:05:56.520 --> 0:05:59.160 everyone seems to be talking about artificial intelligence. 0:06:01.600 --> 0:06:04.080 It certainly does pervade a lot of the conversations we're 0:06:04.120 --> 0:06:06.440 having here today. And of course Felipe Leafont is one 0:06:06.440 --> 0:06:11.120 of the perfect people to talk about artificial intelligence too. Earlier, 0:06:11.160 --> 0:06:13.640 as he was talking to David Rubinstein, David Rubinstein did 0:06:13.720 --> 0:06:15.799 ask him if he thinks there's a lot. 0:06:15.600 --> 0:06:17.640 Of hype around AI. 0:06:17.600 --> 0:06:21.080 And he really leaned into the opportunities that are happening 0:06:21.160 --> 0:06:25.320 in AI and really downplayed other types of opportunities, say 0:06:25.440 --> 0:06:28.240 quantum computing, for example. So what is he seeing in 0:06:28.279 --> 0:06:32.000 the AI opportunity? Some things got really wonky here, this 0:06:32.200 --> 0:06:37.480 idea of artificial brains being implanted in a robot that 0:06:37.640 --> 0:06:42.480 lives alongside humans, though that is probably about fifteen years away. 0:06:42.520 --> 0:06:46.200 According to Kotoo's Lafonte, he's also seeing a lot of 0:06:46.320 --> 0:06:49.800 opportunity here in power. That is something that a lot 0:06:49.839 --> 0:06:52.559 of Wall Street is also watching, the banks the hedge 0:06:52.560 --> 0:06:55.720 funds as well, and so certainly a more near term 0:06:55.800 --> 0:06:58.680 opportunity a little earlier. Also on the AI front, I 0:06:58.720 --> 0:07:01.240 would just say we also talked to Bollie of Eldridge 0:07:01.240 --> 0:07:04.880 Industries and he talked about how it's changing media and entertainment. 0:07:05.120 --> 0:07:07.560 The reason I bring this all up is because you 0:07:07.680 --> 0:07:10.800 hear different types of investors ed really talking about the 0:07:10.800 --> 0:07:15.760 AI opportunity, particularly in private markets as opposed to public markets, 0:07:15.960 --> 0:07:18.920 and the growth opportunity you're seeing there, as well as 0:07:18.960 --> 0:07:23.040 the governance structures that exist around companies like that that 0:07:23.080 --> 0:07:25.200 would allow for that kind of experimentation. 0:07:25.920 --> 0:07:28.720 As regular views of this show, No, I'm a longstanding 0:07:28.800 --> 0:07:32.160 Chelsea season ticket holder, a member of Chelsea Football Club, 0:07:32.240 --> 0:07:35.120 so I go watch the top early interview in full online. 0:07:35.200 --> 0:07:35.880 What's to come? 0:07:35.920 --> 0:07:36.920 You've put so much. 0:07:36.760 --> 0:07:39.440 Work into Aditionale along with our colleagues from the Live 0:07:39.480 --> 0:07:41.840 Events team. There are some big names to come in 0:07:41.880 --> 0:07:42.680 the next few hours. 0:07:45.120 --> 0:07:47.600 There certainly are shortly, we'll be talking to boaz Y 0:07:47.600 --> 0:07:49.520 and Stein of SABA Capital, And I've got to say 0:07:49.520 --> 0:07:52.000 one reason that's interesting, Ed is because we are just 0:07:52.200 --> 0:07:55.440 in the center of his dispute with Blackrock. We know 0:07:55.560 --> 0:07:57.680 that there are a couple of funds that he's targeting 0:07:57.720 --> 0:08:00.520 as activists and closed end funds run by black Rock. 0:08:00.960 --> 0:08:03.560 They have proxy voting that's going on in the last 0:08:03.600 --> 0:08:05.360 couple of weeks. In the next couple of weeks, so 0:08:05.400 --> 0:08:07.640 we don't really know yet if Saba is winning. We'll 0:08:07.680 --> 0:08:09.960 find out a little more what he thinks on stage 0:08:10.000 --> 0:08:11.440 in the afternoon. We're going to have a couple of 0:08:11.480 --> 0:08:15.080 private credit conversations as well, John Zido, I'm looking forward 0:08:15.080 --> 0:08:17.240 to Gary Gensler, the chairman. 0:08:16.960 --> 0:08:19.200 Of the SEC. Of course, with Ann Marie Hordern. 0:08:19.440 --> 0:08:21.960 We know the presidential debate is just days away, and 0:08:22.080 --> 0:08:24.800 hearing what Gensler has to say about what a change 0:08:24.800 --> 0:08:27.920 of the administration could mean if there is a change 0:08:27.920 --> 0:08:31.840 in administration for the policies that he's set forth today. 0:08:32.200 --> 0:08:34.480 Of course, a lot of people in tech and in 0:08:34.520 --> 0:08:37.959 general markets looking at the potential for an etheream ETF. 0:08:38.120 --> 0:08:41.320 There's some real potential for news later this afternoon. 0:08:41.720 --> 0:08:45.319 Bluemokes Shinali Bassic. Just an incredible lineup. Stay tuned. The 0:08:45.360 --> 0:08:48.040 Bloomberg invest Summit is taking place all of today and 0:08:48.120 --> 0:08:51.320 tomorrow right there in New York City. Don't forget to 0:08:51.400 --> 0:08:52.760 tune in, check it out. 0:08:53.440 --> 0:08:55.720 We'll be right back. This has been bug technology. 0:09:11.559 --> 0:09:14.920 China's President's using ping is urging the nation to step 0:09:15.000 --> 0:09:19.520 up innovation because other countries dominate certain key technologies. 0:09:19.840 --> 0:09:20.559 While he said. 0:09:20.440 --> 0:09:24.080 China had quote made great progress in science, he added 0:09:24.120 --> 0:09:28.120 that original innovation ability is still relatively weak. Some key 0:09:28.200 --> 0:09:31.160 core technologies are controlled by others, and there is a 0:09:31.200 --> 0:09:36.600 shortage of top scientific and technological talents sticking with China. 0:09:36.679 --> 0:09:40.599 After initial reporting in May from Bloomberg that Huawei was 0:09:40.679 --> 0:09:45.840 secretly sponsoring a research competition run by Optica, a review 0:09:46.200 --> 0:09:50.200 of internal Optica corporate records shows the alliance ran far 0:09:50.360 --> 0:09:55.400 deeper than publicly known, blossoming over decades even as US 0:09:55.520 --> 0:09:59.920 China tensions over technology intensified. Let's bring in Bloomberg's Mike Chef, 0:10:00.520 --> 0:10:04.199 who leads our coverage at the intersection of politics and technology. 0:10:04.600 --> 0:10:08.760 You know, the original Bloomberg report in May was astonishing, frankly, 0:10:09.400 --> 0:10:12.720 and the further details in this sort of a polisical environment, 0:10:13.000 --> 0:10:16.520 and the headlines of the last twelve months are almost unbelievable. 0:10:16.559 --> 0:10:17.240 What have we learned? 0:10:18.320 --> 0:10:18.520 Well? 0:10:18.559 --> 0:10:21.520 At first, let me commend you on the segue into 0:10:21.559 --> 0:10:25.520 this segment, because it really highlights the importance of this story. 0:10:25.920 --> 0:10:28.839 It shows that China is really on the quest. It's 0:10:28.880 --> 0:10:32.599 on the hunt for the technological advances. It needs to 0:10:32.880 --> 0:10:37.400 bolster its economy and gain that technological edge and key areas, 0:10:37.720 --> 0:10:41.040 and this shows one way it's been doing it. Huawei, 0:10:41.080 --> 0:10:45.040 which is such an industrial champion in China, was not 0:10:45.080 --> 0:10:49.480 only sponsoring secretly this competition, but it was forging a 0:10:49.600 --> 0:10:52.760 much deeper relationship with Optica, and it was a two 0:10:52.760 --> 0:10:57.319 way street. Optica is a century old organization that whose 0:10:57.360 --> 0:11:01.480 members twenty four thousand members worldwide do research and sensitive 0:11:01.520 --> 0:11:04.800 areas in light that apply to things like semiconductors that 0:11:04.840 --> 0:11:08.240 are essential to everything in the modern economy. So the 0:11:08.280 --> 0:11:14.199 consequences of this are significant. And Keith O'Keefe, whose initial 0:11:14.240 --> 0:11:16.840 report really broke the ground on this and her latest 0:11:16.880 --> 0:11:20.679 reporting advanced the story further. She found that there was 0:11:20.720 --> 0:11:24.440 a whistleblower who flagged the risks that some of the 0:11:24.600 --> 0:11:28.560 work being done by US scientists could be exported to 0:11:28.640 --> 0:11:29.760 China as a result of this. 0:11:30.880 --> 0:11:32.560 I don't want to simplify it too much, but the 0:11:32.559 --> 0:11:35.960 basic idea is that that money came from Huawei. And 0:11:36.440 --> 0:11:39.560 in response to this reporting by Kato o'keef, who's had 0:11:39.559 --> 0:11:44.160 a great impacts ince joining Bloomberg, Obtica's spokesperson basically says 0:11:44.280 --> 0:11:48.960 that that group Obtica's confident that they acted properly and 0:11:49.040 --> 0:11:52.280 in good faith. Were showing the response of Liz Rogan, 0:11:52.280 --> 0:11:55.559 who's the OCTICA CEO on the screen, Mic, I. 0:11:55.480 --> 0:11:57.080 Guess what happens next. 0:11:57.160 --> 0:12:00.400 You know, when stories like this develop, sometimes law makers 0:12:00.440 --> 0:12:03.040 take notice, sometimes regulators take notice. 0:12:03.559 --> 0:12:07.760 Well, lawmakers have taken notice, and the top Republican and 0:12:07.880 --> 0:12:11.120 Democrat on how Science Committee are looking into this. They 0:12:11.120 --> 0:12:15.719 expressed grave concern that US scientific research could be exposed 0:12:15.800 --> 0:12:19.400 or even exported unwittingly to China as a result of 0:12:19.440 --> 0:12:22.880 a relationship like this. Now the organization is saying that 0:12:22.920 --> 0:12:26.000 it acted in good faith and to be fair, it 0:12:26.040 --> 0:12:30.160 did not violate any rules per se in allowing this 0:12:30.280 --> 0:12:34.000 fund this competition to be funded anonymously, and yet the 0:12:34.040 --> 0:12:38.000 appearance was complicated for one, for the organization, but it 0:12:38.040 --> 0:12:41.000 was also a risk for the scientists who accepted the 0:12:41.080 --> 0:12:44.200 money without knowing that it came from Huawei. You see, 0:12:44.240 --> 0:12:48.200 many researchers in the US have to disclose to other 0:12:48.360 --> 0:12:52.600 government and university funding agencies where their other sources of 0:12:52.720 --> 0:12:56.679 money are coming from. And if they don't tell those 0:12:56.880 --> 0:13:00.480 other funders, if they don't disclose it, hey, some money 0:13:00.480 --> 0:13:03.760 from Wawei by the way, there could create a problem 0:13:03.880 --> 0:13:05.640 for them down the road as well. 0:13:06.559 --> 0:13:10.720 Blnberg's Mike Shephard, really appreciate your insight and reporting here 0:13:10.720 --> 0:13:11.720 on Boombog Technology. 0:13:11.760 --> 0:13:12.120 Thank you. 0:13:12.520 --> 0:13:15.400 We continue to talk about China. China based Byte Dance 0:13:15.520 --> 0:13:17.960 is facing a ban in the US in the form 0:13:18.000 --> 0:13:22.400 of TikTok, and Oracle is now warning that that would 0:13:22.440 --> 0:13:26.000 adversely affect its revenues and profits. This is a story 0:13:26.000 --> 0:13:28.559 that caught my eye pretty late yesterday. I want to 0:13:28.559 --> 0:13:31.440 bring in Bloomberg Intelligence and this Satura Irana and you've 0:13:31.640 --> 0:13:35.320 basically constantly crunched the numbers on what the impact would be. 0:13:36.040 --> 0:13:40.199 But it's not straightforward, you know, for our audience's benefit. 0:13:40.840 --> 0:13:43.640 Oracle was at the heart of TikTok's. 0:13:43.120 --> 0:13:49.760 Compromise by on shoring US user data in Oracle servers. Basically, Now, 0:13:49.760 --> 0:13:52.439 if that's banned, what's the point of the Oracle relationship. 0:13:52.520 --> 0:13:56.920 Yeah, it's hosting the IQ application. So their infrastructure has 0:13:56.960 --> 0:13:59.280 been used to do host that, so which is why 0:13:59.400 --> 0:14:01.280 if it goes they're not going to be getting that 0:14:01.360 --> 0:14:04.040 much revenue out Now they've never disclosed what the exact 0:14:04.080 --> 0:14:07.160 revenue amount is. But you know, I think one thing 0:14:07.800 --> 0:14:10.200 that's happening good on the article side is there's a 0:14:10.200 --> 0:14:13.680 massive demand for their infrastructure as a service business. They are, 0:14:13.760 --> 0:14:17.439 you know, helping out Microsoft there, They're helping out or 0:14:17.520 --> 0:14:19.200 to Google and the I mean, they just really deal 0:14:19.240 --> 0:14:21.840 with them. So that business is growing over forty percent. 0:14:22.040 --> 0:14:24.040 It's running at a rundrate of about two billion a 0:14:24.120 --> 0:14:27.120 quarter right now, so annualized rundrate of about eight billion. 0:14:27.200 --> 0:14:29.480 So I mean, you know, it will be a setback 0:14:29.520 --> 0:14:31.360 I would say for a quarter or two, but they 0:14:31.360 --> 0:14:34.520 can make up that sales with other demand that's out there. 0:14:34.560 --> 0:14:37.160 Stucks down a percentage point in the session in the moment, 0:14:37.360 --> 0:14:39.400 up more than thirty percent year today. But what you 0:14:39.440 --> 0:14:41.440 said is interesting, Right, we don't have a number, we 0:14:41.480 --> 0:14:44.360 don't know what the value of the relationship is, but 0:14:44.440 --> 0:14:47.640 You've covered this industry long enough, right you know that 0:14:47.720 --> 0:14:51.920 if a company issues a statement saying this is substantive 0:14:52.280 --> 0:14:55.640 material is the word, then it's worth looking into. 0:14:56.520 --> 0:14:57.320 No, no fair amount. 0:14:57.400 --> 0:14:59.440 I completely agree with you, But what I'm trying to 0:14:59.480 --> 0:15:02.000 say is the demand for these kinds of work is 0:15:02.080 --> 0:15:04.560 so strong right now. So maybe it's a setback for 0:15:04.640 --> 0:15:07.200 Oracle for six months or nine months, but they will 0:15:07.200 --> 0:15:09.600 make up that revenue from other sources. It's not as 0:15:09.600 --> 0:15:13.080 if it's lost forever that particular revenue stream, you know. 0:15:13.120 --> 0:15:15.240 In the in the defense of Oracle, right now, they 0:15:15.240 --> 0:15:20.160 are really becoming the fourth largest cloud provider out there, 0:15:20.400 --> 0:15:25.640 you know, right behind Amazon, Microsoft and Google Cloud Platform, 0:15:25.960 --> 0:15:28.360 because this kind of work is really the biggest thing 0:15:28.360 --> 0:15:32.000 in demand right now. Application software is struggling, but infrastructure 0:15:32.040 --> 0:15:35.440 software is doing well because of cloud resources. 0:15:35.440 --> 0:15:37.440 And that was the focus of the research out this 0:15:37.520 --> 0:15:40.680 morning from you and Blue mg Intelligence, narrowing the gap 0:15:40.720 --> 0:15:43.480 when it comes to cloud Ana rag Rana, Bloomberg Intelligence, 0:15:43.520 --> 0:15:44.200 Thank you so much. 0:15:44.360 --> 0:15:44.640 Okay. 0:15:44.680 --> 0:15:49.200 Staying with China, It's spacecraft carrying samples collected on the 0:15:49.240 --> 0:15:52.720 far side of the Moon return to Earth today, marking 0:15:52.880 --> 0:15:57.560 an important milestone in China's path for further lunar exploration. 0:15:58.040 --> 0:16:01.200 The change is six space landed. 0:16:00.880 --> 0:16:03.760 In a grasslands region of Inner Mongolia, and was the 0:16:03.800 --> 0:16:06.840 second mission by China to the more distant part of 0:16:06.840 --> 0:16:10.720 the Moon, following the twenty nineteen landing by Chang E four. 0:16:11.120 --> 0:16:14.120 No other country has sent a spacecraft to the far side, 0:16:14.120 --> 0:16:17.840 although NASA has plans to support missions there by a 0:16:17.920 --> 0:16:28.760 US spacecraft. Okay, it's signed for Talking Tech and first up. 0:16:28.760 --> 0:16:32.200 In yesterday's show, we discussed Wall Street Journal report that 0:16:32.280 --> 0:16:36.160 Meta and Apple had held talks on an AI partnership. 0:16:36.200 --> 0:16:40.680 After the show, Bloomberg's Mark German reported or clarified the 0:16:40.720 --> 0:16:45.800 real situation. Apple dismissed Meta's AI chatbot months ago. According 0:16:45.880 --> 0:16:49.760 to sources, the iPhone maker held brief discussions about using 0:16:49.800 --> 0:16:53.480 Meta's Lama chatbot, but ultimately decided not to move forward, 0:16:53.760 --> 0:16:58.520 citing privacy practices that weren't stringent enough. Plus Open ai 0:16:58.600 --> 0:17:01.800 issues are warning to China. According to local media reports, 0:17:02.040 --> 0:17:05.480 open ai says it will begin blocking access to tools 0:17:05.480 --> 0:17:07.680 and software in the region beginning in July. 0:17:08.240 --> 0:17:10.240 It's unclear what prompted. 0:17:09.800 --> 0:17:12.919 The move, and while open ai is unofficially available in 0:17:12.960 --> 0:17:17.000 the country, many can access its features through VPN and 0:17:17.160 --> 0:17:20.359 US defense startup Anderil has secured one point five billion 0:17:20.400 --> 0:17:24.600 dollars of new capital, boosting its valuation to about fourteen 0:17:24.680 --> 0:17:27.600 billion dollars. That's according to a report by The Information. 0:17:27.720 --> 0:17:31.639 The startup, backed by Peter Teel, makes drones and autonomous 0:17:31.640 --> 0:17:35.000 weapons systems, and recently one a major contract to develop 0:17:35.160 --> 0:17:39.520 unmanned fighter jets for the US Air Force. Another story retracking, 0:17:39.560 --> 0:17:43.000 the health platform Function reached fifty three million dollars in 0:17:43.040 --> 0:17:46.600 its Series A funding round. The platform focuses on preventative 0:17:46.600 --> 0:17:51.119 approaches to help individuals manage their well being. Delighted to 0:17:51.160 --> 0:17:55.200 say that Function's co founder Mark Heyman joins us. Now 0:17:55.400 --> 0:17:58.879 you know it's a significant summer money. Congratulations Mark on 0:17:59.160 --> 0:18:02.000 the Series A. But actually, what caught my eye in 0:18:02.040 --> 0:18:06.440 the first instance is how many users you've onboarded. Yeah, 0:18:06.480 --> 0:18:09.600 and how big the weight list is relative to those 0:18:09.680 --> 0:18:10.040 on board. 0:18:10.119 --> 0:18:11.199 It just explain that to me. 0:18:11.440 --> 0:18:12.560 Yeah, Well, thank you for having me. 0:18:12.800 --> 0:18:16.640 This is an incredible moment in medical history because we're 0:18:16.640 --> 0:18:20.640 seeing consumer driven healthcare exploding and we hit a nerve, 0:18:20.720 --> 0:18:23.080 a pain point where people want access to their own data, 0:18:23.359 --> 0:18:25.080 their own biology. They want to look under the hood 0:18:25.080 --> 0:18:27.520 and not just rely on the healthcare system to provide 0:18:27.520 --> 0:18:29.600 access to their own health information. And so we've gotten 0:18:29.600 --> 0:18:33.040 fifty thousand people as members in the first year in 0:18:33.160 --> 0:18:35.920 our data and two hundred thousand people on the waitlist, 0:18:35.960 --> 0:18:38.040 and there's just a hunger for people to know about 0:18:38.040 --> 0:18:40.679 their health, to be empowered with the tools and have 0:18:40.760 --> 0:18:44.360 their own agency over their health, using their data from 0:18:44.359 --> 0:18:46.960 their own body and having ownership of it, which right 0:18:47.000 --> 0:18:49.520 now is sort of held within the healthcare system in 0:18:49.560 --> 0:18:51.720 a very tight way that's hard to access for people, 0:18:51.720 --> 0:18:54.800 hard to understand, and we make it easy accessible, and 0:18:54.840 --> 0:18:57.560 it's the first personalized health platform that allows you to 0:18:57.600 --> 0:18:59.800 access to your own health data through initial one hundred 0:18:59.800 --> 0:19:01.920 and ten and bound markers for four hundred and ninety 0:19:01.960 --> 0:19:04.840 nine dollars. It's about fifteen thousand dollars worth. Lab tests 0:19:05.040 --> 0:19:08.240 and provides deep insights from world scientific literature from top 0:19:08.280 --> 0:19:11.679 knowledge experts, and provides guidance on what likely things that 0:19:11.680 --> 0:19:13.120 are going on with you and what to do about 0:19:13.119 --> 0:19:15.360 them in order to empower you to change your behaviors 0:19:15.400 --> 0:19:17.040 and your lifestyle, which is really where more of these 0:19:17.080 --> 0:19:17.439 right is. 0:19:18.960 --> 0:19:21.720 Mark just explain the basics of the technology you know, 0:19:22.520 --> 0:19:25.639 every time we hear about a data driven platform like this, 0:19:26.320 --> 0:19:28.720 we immediately start talking about our official intelligence. But I 0:19:28.720 --> 0:19:32.640 think in this case function has problem that the expression 0:19:32.640 --> 0:19:34.960 a more simple function just to explain the basics. 0:19:35.000 --> 0:19:38.679 Absolutely, no, you know, it's hard to believe, but medicine 0:19:38.760 --> 0:19:41.240 is still in the dark ages. It's very analog. We 0:19:41.600 --> 0:19:43.800 don't have pen and paper. We have electronic medical records, 0:19:43.800 --> 0:19:46.720 but essentially pen and paper put in a PDF for 0:19:46.840 --> 0:19:50.560 electronic medical record with no relational content, with no understanding 0:19:50.560 --> 0:19:54.480 of the interactions between the data points, with no correlation. 0:19:54.640 --> 0:19:57.960 And so it's really a unique moment in history where 0:19:58.000 --> 0:20:00.880 we can gather your own data from the blood from 0:20:00.920 --> 0:20:04.840 eventually biom bios sensors and wearables, from your electronic records 0:20:05.240 --> 0:20:07.960 from oh mix and into your own health platform allows 0:20:07.960 --> 0:20:09.959 you to understand what's going on with your body. So 0:20:10.080 --> 0:20:12.639 it's a very simple process to sign up. It's five minutes. 0:20:12.840 --> 0:20:15.200 You go to functionhealth dot com. You can sign up 0:20:15.760 --> 0:20:18.680 and you get a scheduled appointment for your lab test 0:20:18.680 --> 0:20:21.360 at one of the two thousand Quest laboratories. Your blood's drawn. 0:20:21.400 --> 0:20:22.480 It takes about fifteen minutes. 0:20:22.520 --> 0:20:24.520 It's frictionless, you don't have to go through insurance, your 0:20:24.520 --> 0:20:27.280 doctor gets away from the patronalistic healthcare system. It allows 0:20:27.280 --> 0:20:29.760 people to be agents of their own health and the 0:20:29.800 --> 0:20:31.199 seeo your own health, which I think is what we 0:20:31.200 --> 0:20:33.840 all need to be given the epidemic of chronic disease 0:20:34.200 --> 0:20:34.800 that's now based. 0:20:34.800 --> 0:20:37.160 Okay, just want to jump in on that insurance point. 0:20:37.200 --> 0:20:39.240 As you can tell you, I come from the United Kingdom, 0:20:39.240 --> 0:20:42.560 where your healthcaret is very different. Six years in, I'm 0:20:42.640 --> 0:20:45.760 used to the insurance basis here. How does your business 0:20:45.800 --> 0:20:48.520 model work within the confines of that system. 0:20:48.560 --> 0:20:50.720 Well, it's very interesting because people are going outside the 0:20:50.760 --> 0:20:54.680 system to actually learn more about their health, to get 0:20:54.760 --> 0:20:56.840 data about their health, whether it's home testing or whether 0:20:56.880 --> 0:20:59.920 it's wearables. Now this is successible to your blood test 0:21:00.080 --> 0:21:01.760 and you don't have to go through insurance. It's four 0:21:01.800 --> 0:21:03.600 hundred nine nine dollars a year. It's a dollar thirty 0:21:03.640 --> 0:21:05.800 seven cents a day, which is less than your dunkin 0:21:05.880 --> 0:21:08.359 Donuts a cup of coffee, and it allows you to 0:21:08.400 --> 0:21:11.560