WEBVTT - Nvidia Puts Another $2B Into CoreWeave, Offers New Chips 0:00:02.520 --> 0:00:13.600 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.640 --> 0:00:17.439 from coast to coast with Caroline Hide in New York 0:00:17.720 --> 0:00:19.680 and v Lovelow in Sent Francisco. 0:00:22.800 --> 0:00:25.440 This is Bloomberg Tech coming up in video. Invests an 0:00:25.440 --> 0:00:29.160 additional two billion dollars in core. We've expanding their partnership 0:00:29.400 --> 0:00:31.800 to accelerate the buildout of AI factories. 0:00:31.880 --> 0:00:35.000 Plus, ion Q continues its acquisition spree as the quantum 0:00:35.040 --> 0:00:38.360 company ad buys chip maker Skywater Technology in a casher 0:00:38.360 --> 0:00:41.000 stock deal worth one point eight billion dollars. 0:00:41.560 --> 0:00:45.360 And gearing up for big tech earnings, Meta, Microsoft, Tesla, 0:00:45.440 --> 0:00:48.120 and Apple all set to report earnings throughout the week. 0:00:48.200 --> 0:00:49.879 We have the preview and. 0:00:49.960 --> 0:00:53.560 The markets are up ahead of those allportant earnings tests. 0:00:53.720 --> 0:00:56.360 We want to see whether there's vindication where the revenue 0:00:56.400 --> 0:00:59.240 and the profit lives up to some mighty valuations, particularly 0:00:59.240 --> 0:01:01.000 in the AI space. But we're up for a four 0:01:01.040 --> 0:01:03.360 straight day on the LASTAP one hundred longest winning streak. 0:01:03.480 --> 0:01:05.280 It says back in December when we had a five 0:01:05.360 --> 0:01:08.319 day run heading in to the Christmas period. So there 0:01:08.400 --> 0:01:10.759 is optimism, but not if you look at the US dollar. 0:01:10.920 --> 0:01:13.279 Not if you're seeing the search for safety in gold. 0:01:13.520 --> 0:01:15.120 But we stick to our missing here in tech and 0:01:15.120 --> 0:01:15.800 what have you got ed? 0:01:16.880 --> 0:01:19.240 We've got a deal and it's for in VideA to 0:01:19.360 --> 0:01:21.880 invest in an additional two billion dollars into core Weave. 0:01:21.920 --> 0:01:25.000 They're going to buy Corwave's common stock at eighty seven 0:01:25.040 --> 0:01:28.320 dollars and twenty cents a share. There is a technology 0:01:28.840 --> 0:01:31.680 sharing part of this, but the bigger picture is to 0:01:32.400 --> 0:01:36.280 accelerate the buildout of capacity. Bloomberg last night speaking on 0:01:36.319 --> 0:01:40.240 the phone with the CEOs of both companies. Bloomberg's Ian King, 0:01:40.760 --> 0:01:43.440 who conducted that conversation, joins us now on set. I'm 0:01:43.440 --> 0:01:45.800 going to get to the circular financing bit. First, we 0:01:45.920 --> 0:01:48.880 asked him, is this circular financing? Him being gentsen One, 0:01:49.280 --> 0:01:51.880 the CEO of and Video. His answer was pretty simple 0:01:52.360 --> 0:01:56.840 that he's saying, this is a very small proportion of 0:01:56.880 --> 0:01:59.080 what core Weave's going to need to raise on an 0:01:59.120 --> 0:02:01.800 ongoing basis to bull out croacity, and it's in line 0:02:01.800 --> 0:02:03.600 with what they invest in lots of other companies take 0:02:03.640 --> 0:02:04.040 it from there. 0:02:04.200 --> 0:02:06.720 Yeah, I mean, he said, look, whether it's core Weave, 0:02:06.800 --> 0:02:10.480 whether it's Xai, whether it's any of the others that 0:02:10.520 --> 0:02:13.120 he's open ay obviously that he's agreed to give a 0:02:13.160 --> 0:02:14.720 lot of money too. He's like, this is just a 0:02:14.760 --> 0:02:17.920 small portion. This is me just helping them out a 0:02:17.919 --> 0:02:21.600 little bit and showing faith in what they're trying to do. 0:02:21.800 --> 0:02:24.040 They're going to have to go and raise this money themselves. 0:02:24.080 --> 0:02:27.040 The market will basically sort this out. This isn't circular financing. 0:02:27.080 --> 0:02:29.480 It's his argument, and it felt like the call we've seo. 0:02:29.560 --> 0:02:31.680 Michael and Trader came back and said, look, it's a 0:02:31.760 --> 0:02:34.160 drop in the ocean compared to the amount of infrastructure 0:02:34.320 --> 0:02:36.920 spend that we're having to do. But where do they 0:02:36.919 --> 0:02:40.680 strategically are like, why dig even deeper into their pockets 0:02:40.680 --> 0:02:42.240 to give money to call Weave at this time? 0:02:43.080 --> 0:02:45.720 Yeah, I mean Jensen said that this is really a 0:02:45.760 --> 0:02:49.480 technology partnership that core Weave is a very early adopter 0:02:50.200 --> 0:02:53.040 of in Vidio systems. Tends to do them in the 0:02:53.040 --> 0:02:55.600 way that Invidia thinks they should be done, and this 0:02:55.720 --> 0:02:58.079 kind of serves as like a reference platform, so they 0:02:58.160 --> 0:03:00.360 like that. And also he just thinks a lot of 0:03:00.360 --> 0:03:02.679 demand out there, so the faster we can go, the 0:03:03.680 --> 0:03:04.440 better things get. 0:03:04.680 --> 0:03:08.840 There's also CPU put the GPUs to one side. What 0:03:09.040 --> 0:03:11.160 Jensen one really wanted to emphasize, as far as I 0:03:11.200 --> 0:03:13.680 can tell from reading the transcript of your conversation, is 0:03:13.720 --> 0:03:17.440 that vera CPU is now going to be a standalone 0:03:17.440 --> 0:03:22.000 infrastructure product. Core weaves relevant here, just explain what he 0:03:22.040 --> 0:03:22.880 told you on the phone. 0:03:23.040 --> 0:03:25.600 Yeah, I mean, as you know, Jensen never says anything 0:03:25.639 --> 0:03:28.200 without having carefully thought it through, so he really wanted 0:03:28.240 --> 0:03:31.720 to deliver a message that this is a standalone product 0:03:31.720 --> 0:03:34.000 as well as being part of the infrastructure. You remember, 0:03:34.040 --> 0:03:37.280 previous versions have been sort of integrated into and videos. 0:03:37.360 --> 0:03:38.240 One of six chips. 0:03:38.320 --> 0:03:40.480 Right now, Hey, you can use it on your own 0:03:40.480 --> 0:03:42.600 if you want. And that makes it a direct rival 0:03:42.640 --> 0:03:44.040 to some big real. 0:03:44.040 --> 0:03:47.560 Quick carrot a m D under pressure, Intel also under pressure. 0:03:48.000 --> 0:03:48.760 Is that a surprise? 0:03:49.880 --> 0:03:52.240 It shouldn't be, no, right thinking. 0:03:52.480 --> 0:03:54.480 We thank you so much for breaking down a really 0:03:54.960 --> 0:03:57.160 important story for us. And look there's another one in 0:03:57.160 --> 0:04:00.760 the world of AI semic conductors. Microsoft is rolling out 0:04:00.760 --> 0:04:03.640 the second generation of its own AI chip. So see 0:04:03.640 --> 0:04:05.760 shares up about a percentage point, not moving much on 0:04:05.800 --> 0:04:07.960 the news that is just dropping and Rooomberg's Matt Day 0:04:08.200 --> 0:04:10.800 is a person who covers Microsoft for US breaks that news. 0:04:11.000 --> 0:04:13.400 How important is it that yet another company is building 0:04:13.440 --> 0:04:14.280 their own AI chips. 0:04:15.040 --> 0:04:17.000 Well, for Microsoft, it's it's really important. 0:04:17.000 --> 0:04:19.240 They've got a bit later jump than their biggest rival 0:04:19.240 --> 0:04:21.600 of Amazon and Google and building their own. So can 0:04:21.640 --> 0:04:23.719 they see this as an important way to reduce costs 0:04:23.760 --> 0:04:26.359 to find another source of availability. So it's going to 0:04:26.360 --> 0:04:28.200 be a really really big test for their chips unit 0:04:28.240 --> 0:04:29.279 and for the cloud business. 0:04:30.279 --> 0:04:32.200 We write in our in our Bloomberg story that it 0:04:32.240 --> 0:04:35.760 could eventually provide an alternative right to Nvidia's hardware. But 0:04:35.800 --> 0:04:39.480 the reality is, like all the other hyperscalers, Microsoft still 0:04:39.880 --> 0:04:43.600 depends on Nvidia. Just explain its scale of its compute 0:04:43.880 --> 0:04:46.000 and what it does rely on Nvidia four. 0:04:47.160 --> 0:04:49.440 So in Vidia is the workhorse that powers, you know, 0:04:49.480 --> 0:04:53.320 the vast, vast majority of the AI workloads in Microsoft's 0:04:53.360 --> 0:04:55.920 data centers. You know, if you're using open AIS as 0:04:55.960 --> 0:04:58.520 a ch GPT consumer, chances are you're pinging and in 0:04:58.640 --> 0:05:01.360 video chip running in some Microsoft data center somewhere. 0:05:01.400 --> 0:05:01.560 You know. 0:05:01.640 --> 0:05:04.040 Now, like everybody in the industry, Microsoft would love to 0:05:04.080 --> 0:05:06.600 have some other options. Hence this effort with Maya to 0:05:06.960 --> 0:05:09.119 try to build a better mouse trap, one more suited 0:05:09.120 --> 0:05:11.120 for their data centers and one that ideally could could 0:05:11.120 --> 0:05:12.760 reduce some of their costs in the long term. 0:05:13.040 --> 0:05:15.599 Tell us how it's rolling out, where it's rolling out first, 0:05:15.600 --> 0:05:17.640 and ultimately when customers going to be using it. 0:05:18.600 --> 0:05:20.360 So it's not clear when customers are going to get 0:05:20.400 --> 0:05:20.960 their hands on this. 0:05:21.240 --> 0:05:24.159 The first units are live today, Microsoft tells us in 0:05:24.240 --> 0:05:28.080 data centers near Des Moines, Iowa. More coming to the 0:05:28.120 --> 0:05:30.800 Phoenix area, but we don't have a date yet for 0:05:30.839 --> 0:05:32.880 what a wider rollout looks like, or you know, sort 0:05:32.880 --> 0:05:34.960 of crucially, what availability looks like. Because it's going to 0:05:34.960 --> 0:05:36.960 be a global rollout. Is this more of a kind 0:05:36.960 --> 0:05:38.719 of R and D step and future chips are going 0:05:38.760 --> 0:05:40.360 to are going to sort of carry the mail for them, 0:05:40.360 --> 0:05:42.000 So kind of yet to be seen how how broad 0:05:42.040 --> 0:05:42.839 they take this one. 0:05:44.160 --> 0:05:46.599 Lumbo's Matt Day out of Seattle with the latest on 0:05:46.920 --> 0:05:49.719 Microsoft's latest day I chip efforts. Let's talk through the 0:05:49.720 --> 0:05:52.279 market reactions all of this with Kim Forrest, cio and 0:05:52.320 --> 0:05:55.520 founder of Bouquet Capital Partners, and go back to the 0:05:55.600 --> 0:05:58.440 Nvidia Core Weave deal. You know it's a driver in 0:05:58.480 --> 0:06:03.359 markets this morning. The explanation from Nvidia CEO Jensenong is 0:06:03.360 --> 0:06:05.800 that it is not circular financing because it is a 0:06:05.839 --> 0:06:10.120 small portion of core Weave's overall capital requirements. Are you 0:06:10.200 --> 0:06:13.320 concerned about that? And what do you make of his response? 0:06:14.640 --> 0:06:19.040 Sure, well, of course it's circular financing. You know core 0:06:19.080 --> 0:06:23.760 Weave as well as everybody else. Even Microsoft is a 0:06:23.800 --> 0:06:27.680 big customer of NVIDIAs. So if Nvidia is investing in 0:06:27.720 --> 0:06:31.919 its customers, by definition, it's circular financing. It is a 0:06:31.960 --> 0:06:35.400 good point that, you know, two billion is probably a 0:06:35.520 --> 0:06:38.839 rounding error for Nvidia at this point. But it's also 0:06:39.160 --> 0:06:42.080 true that core weave has to prove itself to the 0:06:42.120 --> 0:06:44.279 market and raise its own money. 0:06:44.680 --> 0:06:49.920 Kim, We're saying circular financing the term as a bad word, 0:06:50.200 --> 0:06:52.160 bad phrase, is it right? 0:06:53.440 --> 0:06:54.080 Yeah? Kind of? 0:06:55.040 --> 0:06:58.920 You know, Jensen points out that core Weave is going 0:06:58.960 --> 0:07:01.640 to be one of their references accounts. What you ideally 0:07:01.680 --> 0:07:04.720 want is in a reference account is somebody that has 0:07:04.800 --> 0:07:07.200 worked with you is kind of pure and it has 0:07:07.279 --> 0:07:12.000 no inside kind of relationship with what they're recommending other 0:07:12.080 --> 0:07:15.360 than they use the product, they love the product, and 0:07:15.680 --> 0:07:18.880 you know, this kind of sullies the relationship the core 0:07:18.920 --> 0:07:23.200 We've had so much investment from the company that they're 0:07:23.240 --> 0:07:24.520 giving a reference. 0:07:24.160 --> 0:07:30.200 For Meanwhile, many would say it's just because we cannot 0:07:30.200 --> 0:07:34.280 build compute fast enough. And in many ways, Nvidia more 0:07:34.320 --> 0:07:37.600 than anyone, sees the opportunity, and it's just piling money 0:07:37.600 --> 0:07:39.600 behind this to be able to get the end demand 0:07:39.680 --> 0:07:41.760 that it needs for the products that's currently building. Can 0:07:42.280 --> 0:07:45.400 are we likely to see through these sorts of technological 0:07:45.400 --> 0:07:48.560 partnerships as well as financial partnerships actually us get the 0:07:48.560 --> 0:07:50.280 compute out of the cype of speed that we need. 0:07:51.480 --> 0:07:53.720 Sure well, you know we're going to see them until 0:07:53.720 --> 0:07:56.200 we don't. I'm not trying to rain on anybody's parade, 0:07:56.560 --> 0:08:00.600 but at this point it's all kind of you know, 0:08:00.720 --> 0:08:02.800 up in the air. Right now. There is a huge 0:08:02.840 --> 0:08:06.840 demand for compute, but like everything else in the world, 0:08:07.040 --> 0:08:10.080 somebody's going to overbuild and it's gonna, you know, be 0:08:10.320 --> 0:08:13.960 jarring and disappointing. I'm not saying that that's any time 0:08:14.000 --> 0:08:16.840 in the future. I'm just pointing out the obvious that 0:08:17.720 --> 0:08:20.920 you know, Yes, this is a very symbiotic world with 0:08:21.840 --> 0:08:26.080 customers and providers and competitors all kind of working in 0:08:26.120 --> 0:08:29.920 the same pool. It's messy and it's like real life 0:08:30.000 --> 0:08:33.559 because it is. But you know, just be warned that 0:08:33.600 --> 0:08:37.680 this is not trees don't grow, you know, well, trees 0:08:37.720 --> 0:08:39.400 grow into the sky, but not forever. 0:08:39.720 --> 0:08:41.559 Put it that way, Well, they're not going into the 0:08:41.600 --> 0:08:43.679 sky today for Intel and AMD because both of them 0:08:43.720 --> 0:08:46.720 under pressure that maybe his Jensen coming for their piece 0:08:46.760 --> 0:08:48.440 of the pie, the CPU part of the pie that 0:08:48.480 --> 0:08:51.200 everyone was very excited for them. Indeed, intell of late 0:08:51.200 --> 0:08:54.320 and they run up in their stock. Does ver brand 0:08:54.400 --> 0:08:57.280 the CPU on its own prove that it's a key 0:08:57.280 --> 0:08:58.520 competitive to them too? 0:09:00.120 --> 0:09:02.640 Well, I think at first it's going to work in 0:09:02.679 --> 0:09:08.120 its own environment, and it may become a competitor, sure. 0:09:08.240 --> 0:09:12.040 I mean, I think the takeaway from all these announcements 0:09:12.080 --> 0:09:15.960 over the last I don't know, forty eight hours is 0:09:16.000 --> 0:09:20.240 that everybody's innovating, and that is excellent. I love competition. 0:09:20.400 --> 0:09:24.640 I'm a capitalist, innovate, try to outcompete, do it live 0:09:24.720 --> 0:09:29.360 that way. But the fact of the matter is the 0:09:29.400 --> 0:09:33.320 CPUs that are the workhorses and just plain old cloud 0:09:33.400 --> 0:09:39.479 computing aren't necessarily going to be interesting or aren't necessarily 0:09:39.520 --> 0:09:42.360 going to look to Nvidia. And Vidia loves the highest 0:09:42.400 --> 0:09:46.360 priced product. That's what it does. And I'm sorry. The 0:09:46.400 --> 0:09:51.200 workhorse people need reliability, they need it to look the 0:09:51.280 --> 0:09:55.080 same across their platform. They need a lot of stuff 0:09:55.120 --> 0:09:58.600 that a new CPU chip isn't necessarily going to be 0:09:59.120 --> 0:10:02.920 interesting to them. Now in the world of AI data centers, sure, 0:10:03.320 --> 0:10:05.439 but in the old fashioned ones that are going to 0:10:05.520 --> 0:10:08.880 have to persevere for decades, I don't know that that's 0:10:08.960 --> 0:10:11.280 really a competitor in video. 0:10:11.520 --> 0:10:14.840 That's an interesting observation because the GPUs and the AI 0:10:14.920 --> 0:10:18.079 context are on base, and so if you're running those 0:10:18.120 --> 0:10:20.000 GPUs of x eighty six, you're gonna have to do 0:10:20.040 --> 0:10:23.120 some special software work to make the match. Let's put 0:10:23.160 --> 0:10:25.520 us one side. It is a massive week in the 0:10:25.520 --> 0:10:28.640 world of technology from earnings alone, we also have a 0:10:28.679 --> 0:10:32.120 FED meeting on Wednesday. Of those names that are reporting 0:10:32.160 --> 0:10:34.240 this week, what are you most concerned about and what 0:10:34.280 --> 0:10:37.080 do we need to be looking for in the earnings context? 0:10:38.240 --> 0:10:42.280 Well, you know, what, how are things looking in the future. 0:10:42.520 --> 0:10:45.000 I don't really even care about how things looked for 0:10:45.120 --> 0:10:47.760 last quarter. I have to tell you I'm looking for 0:10:47.800 --> 0:10:51.400 the next six months, and I think especially on more 0:10:51.559 --> 0:10:57.200 consumer leaning things like Apple, that might be you know, 0:10:57.320 --> 0:11:01.080 the focal point for all investors is what new products 0:11:01.080 --> 0:11:06.640 are driving consumers to the company and are they meeting demand. 0:11:06.760 --> 0:11:10.880 That whole thing about how in demand are consumer items. 0:11:11.320 --> 0:11:15.800 Microsoft has a little special issue. I think there's a 0:11:15.840 --> 0:11:20.200 lot of concern that AI maybe Claude is going to 0:11:20.240 --> 0:11:25.080 replace a lot of software packages that make businesses run. 0:11:25.520 --> 0:11:27.880 I don't know how true that is, but I think 0:11:27.920 --> 0:11:32.080 we're going to get a glimpse into how popular or 0:11:33.000 --> 0:11:35.480 you know, whether or not businesses are paying up for 0:11:35.800 --> 0:11:38.680 enterprise licenses, and that's always a concern. 0:11:39.080 --> 0:11:42.440 Kim forest Cio, founder of Boka Capital Partnius, thanks for 0:11:42.520 --> 0:11:45.600 joining us across the spectrum of earning xance semis today. 0:11:45.800 --> 0:11:48.400 Coming up, going to the world of quantum I on TUCU. 0:11:48.559 --> 0:11:51.000 Niclode Massi is going to be joining us. How his 0:11:51.120 --> 0:11:54.720 company has just bought yet another quite the acquisitions free 0:11:54.760 --> 0:11:56.840 we talk about why once they get into semi conductors 0:11:56.880 --> 0:12:14.000 dis agree bay Tech iron Q Well, it's agreed to 0:12:14.000 --> 0:12:17.040 buy US based chip foundry Skywater Technology for around one 0:12:17.080 --> 0:12:19.959 point eight billion dollars. Shares on the downside for r 0:12:20.080 --> 0:12:22.120 Q now they have been up earlier, we're seeing Skywater 0:12:22.200 --> 0:12:24.400 up more than five point eight percent. It's cash and 0:12:24.520 --> 0:12:26.800 stock deal and it's the largest in quite the string 0:12:26.840 --> 0:12:29.120 of recent acquisitions by the quantum computing firm. I and Q. 0:12:29.280 --> 0:12:32.520 Let's talk to its CEO now, Niccolo de Massi. What 0:12:32.720 --> 0:12:36.160 does having a US based chip foundry add to the 0:12:36.200 --> 0:12:37.640 speed of your own technology. 0:12:38.960 --> 0:12:41.840 It actually does three exciting things for ian Q. The 0:12:41.880 --> 0:12:44.320 first is that it accelerates. 0:12:43.679 --> 0:12:45.000 Our entire roadmap. 0:12:45.520 --> 0:12:48.800 So we talked this morning on a public webinar sort 0:12:48.800 --> 0:12:51.600 of earnings call style about the fact that it's going 0:12:51.640 --> 0:12:54.880 to bring in the cycles of R and D design 0:12:55.040 --> 0:12:58.480 and packaging iteration we do to build our quantum computing 0:12:58.559 --> 0:13:02.960 chips and hence our full fault tolerant machines quite considerably. 0:13:03.360 --> 0:13:06.080 We're moving things in by about a year on our 0:13:06.120 --> 0:13:10.480 two million cubic chip, and we're moving full fault tolerant 0:13:10.640 --> 0:13:14.680 chips forward into twenty twenty eight, where we'll have them 0:13:15.080 --> 0:13:17.680 ready for scale up by the end of the year. 0:13:18.720 --> 0:13:21.080 What's exciting also is this is a big bet for 0:13:21.200 --> 0:13:23.280 us on what's called the merchant. 0:13:22.880 --> 0:13:25.520 Supplier play in the quantum industry. 0:13:25.559 --> 0:13:29.280 So IMQ already sells our atomic clocks to a number 0:13:29.360 --> 0:13:32.600 of quantum computing companies in the US. This is going 0:13:32.679 --> 0:13:36.360 to expand our ability to supply the quantum industry. Our 0:13:36.400 --> 0:13:40.480 photonic interconnect quantum networking business is also built to cater 0:13:40.640 --> 0:13:45.400 for multiple quantum computing paths and modalities. And last, but 0:13:45.440 --> 0:13:47.600 not least, of course, it's a big spread bet on 0:13:47.760 --> 0:13:52.480 the US semi country manufacturing tailwind that I think is 0:13:52.559 --> 0:13:57.160 already being experienced for critical industries as we rethink through 0:13:57.240 --> 0:14:01.960 supply chains, security and the important of keeping everything domestic 0:14:03.120 --> 0:14:03.920 insured security. 0:14:04.360 --> 0:14:09.800 Does that help build and leverage the relationships you already 0:14:09.800 --> 0:14:11.959 have with the US government, for example, is that an 0:14:11.960 --> 0:14:13.640 area that you think is going to drive growth? 0:14:15.400 --> 0:14:16.120 Oh? For sure. 0:14:16.280 --> 0:14:18.920 The US Government's a very important partner in the Department 0:14:19.000 --> 0:14:21.480 of War, of course, is very important. 0:14:22.200 --> 0:14:24.000 Skywater obviously does a lot. 0:14:23.840 --> 0:14:26.680 Of work not only for the quantum industry as a whole, 0:14:26.720 --> 0:14:30.800 where I would argue they are far and away the leading, 0:14:30.840 --> 0:14:33.880 if not only quantum foundry, but Scott Ward also does 0:14:33.920 --> 0:14:37.840 work more broadly in classified programs, as does I INQ 0:14:38.760 --> 0:14:42.640 and so there's plenty of synergies on that vector alone. 0:14:43.120 --> 0:14:46.120 We look forward to doing more for our nation's government 0:14:46.520 --> 0:14:49.120 classified and not We look forward to doing more for 0:14:49.160 --> 0:14:52.800 our nation's fortune five hundred companies. And this is a 0:14:52.840 --> 0:14:57.240 relationship really excited about because it increases the velocity and 0:14:57.320 --> 0:15:02.160 the frequency with which we can spin across all of 0:15:02.200 --> 0:15:06.000 our product generations, which means the further out we're talking, 0:15:06.280 --> 0:15:09.400 the more room there is to move things forward. And 0:15:09.400 --> 0:15:12.760 you're seeing us continue to spend money to move things 0:15:12.800 --> 0:15:16.120 to the left on our roadmap and win this geopolitical 0:15:16.480 --> 0:15:17.920 space race of our era. 0:15:18.760 --> 0:15:20.320 Nicola continuing to spend money. 0:15:20.320 --> 0:15:23.240 There's a lot of emphasis that this is Skywater with 0:15:23.520 --> 0:15:27.240 US only operations. Do you look at Europe and other 0:15:27.320 --> 0:15:30.560 jurisdictions and give yourself backing to go out and do 0:15:30.640 --> 0:15:33.400 another deal if you need to have a similar footprint 0:15:33.400 --> 0:15:36.440 and presence in a different market or geography. 0:15:37.480 --> 0:15:42.080 Well, Skywater has a tremendous amount of upside capacity that 0:15:42.120 --> 0:15:44.320 we can tap into here, not just on the design 0:15:44.400 --> 0:15:48.560 engineering side, but on actual manufacturing. So we did this 0:15:48.680 --> 0:15:53.600 deal because we believe that manufacturability is paramount. Our ambition, 0:15:53.680 --> 0:15:55.840 as I think you both know, is to be both 0:15:55.840 --> 0:15:58.160 the Nvidia and the Cisco if you will, of the 0:15:58.240 --> 0:16:01.920 quantum computing and quantum networking in security space, and so 0:16:02.440 --> 0:16:07.080 our full quantum platform networking, sensing, security and computing all 0:16:07.160 --> 0:16:11.920 has foundry requirements, all has sem country manufacturing requirements. What 0:16:11.960 --> 0:16:15.720 this deal does is it improves certainty, brings forward the roadmap, 0:16:16.320 --> 0:16:19.239 and of course make sure that we have industry leading costs. 0:16:19.560 --> 0:16:21.520 So I think this is going to be enough capacity 0:16:21.640 --> 0:16:28.160 for global production. Skywater focuses on high security, classified program 0:16:28.200 --> 0:16:30.760 work and US government work, and that's usually a standard 0:16:30.800 --> 0:16:34.960 that's accepted very internationally for the Five Eyes, NATO and 0:16:35.000 --> 0:16:35.560 our allies. 0:16:36.920 --> 0:16:37.280 Nikolo. 0:16:37.560 --> 0:16:41.160 In the global quantum race, how do you stack the 0:16:41.320 --> 0:16:44.120 US as a leader in field against the prospects of 0:16:44.200 --> 0:16:49.120 Europe and what you see being worked on in Asia. 0:16:49.400 --> 0:16:52.600 Well, I fancy I Inq's chances, you know most, And 0:16:52.680 --> 0:16:56.240 first of all, I think that beyond I INQ, there's 0:16:56.280 --> 0:16:58.920 a very vibrant ecosystem in the US, and of course 0:16:58.960 --> 0:17:02.600 there is in Europe. The geopolitical race is I think 0:17:02.720 --> 0:17:06.200 very much between the US and our allies and what's 0:17:06.240 --> 0:17:09.560 going on in China, to be honest, and this is 0:17:09.560 --> 0:17:12.840 of course of paramount strategic importance, not just on the 0:17:12.840 --> 0:17:16.080 computing side, but also on the quantum security side. 0:17:16.880 --> 0:17:19.320 These are all solutions that I INQ provides. 0:17:19.560 --> 0:17:23.600 We're the only quantum platform company in history, and as 0:17:23.640 --> 0:17:28.200 you both know, we already have a strong foothold in Oxford, England, Geneva, 0:17:28.240 --> 0:17:32.000 Switzerland and Soul Korea with our offices that continue to 0:17:32.040 --> 0:17:34.520 expand to ensure that we're able to not just deliver 0:17:34.600 --> 0:17:37.840 those solutions, but deliver them in the right global and 0:17:37.920 --> 0:17:41.440 local way across government and commercial needs in every one 0:17:41.480 --> 0:17:42.080 of our allies. 0:17:42.200 --> 0:17:43.439 Well, that was the other big deal that you did, 0:17:43.440 --> 0:17:46.720 Oxford Ionics, quantum chip technology that you're purchased, and I'm 0:17:46.720 --> 0:17:50.200 interested in how the relationships though, going back to Skywater 0:17:50.240 --> 0:17:53.280 are going to continue because they also serve other quantum 0:17:53.280 --> 0:17:55.240 competitors of yours. Will they continue to do so? 0:17:56.400 --> 0:18:01.200 Absolutely, We are steadfastly dedicated to ensure that the quantum 0:18:01.240 --> 0:18:06.600 industry prevails. We respect everyone's pathways to market. At the 0:18:06.640 --> 0:18:08.760 same time, as I mentioned a couple of minutes ago, 0:18:08.880 --> 0:18:12.040 I Inq already is a merchant supplier on our own. 0:18:12.080 --> 0:18:15.000 We supply atomic clocks and photonic interconnects to the industry 0:18:15.000 --> 0:18:18.840 and networkain equipment, and so Skywater will be taking our 0:18:18.880 --> 0:18:23.160 existing merchant supplying business and accentuating, deepening and broadening that 0:18:23.600 --> 0:18:26.760 with of course their chip's business. So rest assured, we 0:18:26.800 --> 0:18:30.400 see this very much as a bet on us quantum, 0:18:30.600 --> 0:18:34.520 our allies quantum. The quantum industry's supply chain needs doing. 0:18:34.560 --> 0:18:38.119 Those fulfilling those securely and a scale, and at the 0:18:38.160 --> 0:18:40.560 same time in a walled off manner. 0:18:41.119 --> 0:18:43.640 I Inq's own roadmap, of course, will. 0:18:43.440 --> 0:18:47.720 Also be accelerated and if supply chain domestically assured. 0:18:49.200 --> 0:18:52.600 Nicolo very quickly, you said that this brings things forward 0:18:52.600 --> 0:18:55.320 by a year. There are people that just aren't familiar 0:18:55.680 --> 0:18:58.679 with quantum computing. How real is this going to be 0:18:58.680 --> 0:18:59.439 in the real world. 0:18:59.640 --> 0:19:04.639 And well, we've been saying since we completed the acquisition 0:19:04.720 --> 0:19:09.080 of Oxford Ionics that full tolerant gate model quantum computing 0:19:09.720 --> 0:19:11.720 is going to happen by the end of this administration. 0:19:12.760 --> 0:19:18.080 This transaction obviously accentuates that, underwrites that, and assures that. 0:19:19.000 --> 0:19:21.280 And so I think you're going to see in the 0:19:21.320 --> 0:19:24.719 next three years everything that we have promised on our 0:19:24.800 --> 0:19:28.960 roadmap come good and hopefully then some The reason why 0:19:29.000 --> 0:19:32.000 this is so exciting for us is that with Skywater, 0:19:32.359 --> 0:19:35.879 we can make quantum computing a mass market reality, and 0:19:35.920 --> 0:19:38.280 we can do that at a price point that's accessible 0:19:39.000 --> 0:19:42.280 not just for governments but also Fortune five hundred companies. 0:19:42.280 --> 0:19:44.800 And that's very much our goal to build the winning 0:19:44.880 --> 0:19:49.040 quantum ecosystem across all solutions and product family offerings. That 0:19:49.080 --> 0:19:52.440 I INQ have security, sensing, networking and computing. 0:19:53.200 --> 0:19:55.800 I on Qceo, Niccolo Demasi, is great to have you 0:19:55.840 --> 0:19:56.440 back on the show. 0:19:56.480 --> 0:19:58.920 Thank you very much. The precious. 0:19:58.960 --> 0:20:02.439 Building on crop AI and Elon Musk's AI chatbot, the 0:20:02.440 --> 0:20:06.800 European Union says it's probing X over concerns that it 0:20:06.840 --> 0:20:10.199 didn't prevent its chatbot from generating deep fake images that 0:20:10.320 --> 0:20:14.240 quote may amount to child sexual or boost material. Bloomberg's 0:20:14.240 --> 0:20:17.600 London based tech editor Olivia Solan joins us, Olivia, what's 0:20:17.680 --> 0:20:20.120 they need to know here from the EU probe kind 0:20:20.520 --> 0:20:21.040 side of this? 0:20:21.960 --> 0:20:26.399 Well, it's another day another investigation into X from the EU. 0:20:27.040 --> 0:20:29.640 This time, yeah, it was about whether or not they 0:20:29.680 --> 0:20:34.360 did ex died a sufficient risk assessment to prevent harmful 0:20:34.400 --> 0:20:38.480 outputs from GROC before deploying it across the EU. This 0:20:38.600 --> 0:20:42.640 is a legal requirement under the Digital Services Act, which 0:20:42.680 --> 0:20:46.000 is a kind of set of rules around illegal and 0:20:46.080 --> 0:20:50.600 harmful content. And so yeah, there's quite a long list 0:20:50.600 --> 0:20:54.000 of investigations of X at the moment within the EU, 0:20:54.200 --> 0:20:55.879 but this certainly adds to it. 0:20:56.240 --> 0:20:58.879 I mean you mentioned France has also been looking into it, 0:20:58.960 --> 0:21:02.040 ofcom in a UK way you sit India but Olivia 0:21:02.400 --> 0:21:05.760 X's responses, they've taken the necessary steps in some way. 0:21:05.880 --> 0:21:09.119 Of course, it's a unit of XAI. And this again 0:21:09.160 --> 0:21:11.439 builds tensions between the US and the EU in some 0:21:11.560 --> 0:21:14.280 government manner, right. 0:21:14.520 --> 0:21:16.040 I mean, this has been a bit of a flash 0:21:16.080 --> 0:21:18.560 point in a sort of debate over free speech and 0:21:18.760 --> 0:21:25.480 control over big tech between DC and Europe. Clearly, I've 0:21:25.480 --> 0:21:27.240 been kind of checking to see if there's been a 0:21:27.240 --> 0:21:30.240 response so far from either Elon Musk or jd Vance 0:21:30.359 --> 0:21:34.560 or Trump on this particular announcement. So far, I haven't 0:21:34.600 --> 0:21:37.000 seen anything, but I'm sure it'll be something that will 0:21:37.359 --> 0:21:40.720