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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live

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Speaker 1: from coast to coast with Caroline Hide in New York

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Speaker 1: and Vla low in sentrances go.

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Speaker 2: This is Bloomberg Tech coming up.

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Speaker 3: AI enthusiasm is back as AMD rallies on a blockbuster

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Speaker 3: Forcus and nvidiaoting's a deal with fiber maker Corning. Plus,

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Speaker 3: Disney posts stronger results than expected thanks to improve profitability

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Speaker 3: and its streaming business, and we speak with Uber's CFO

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Speaker 3: as the right hailing platform posts a second quarter outlook

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Speaker 3: that also beat expectations.

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Speaker 2: First, we return to these markets that are risk on look.

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Speaker 3: A lot of that has to do with geopolitics. There

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Speaker 3: is hope of a de escalation between Iran and the

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Speaker 3: United States. Could it's a deal be getting closer. The

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Speaker 3: market trades on that. Stocks rise higher, and indeed bon

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Speaker 3: yields pull back. We see a move in the dollar

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Speaker 3: two Oil on the down side means we're at one

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Speaker 3: point four percent on.

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Speaker 2: The nasat one hundred.

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Speaker 3: But there's a whole host of other news as to

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Speaker 3: why technology stocks are on top, and.

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Speaker 2: It comes from earnings and AI ambitions.

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Speaker 3: We've got AMD pumping up fifteen percent once again taking

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Speaker 3: the breath away from investors that not only are we

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Speaker 3: seeing GPU traction, but CPU is seemingly on fire, despite

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Speaker 3: of course also concerns about memory. We're still seeing growth

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Speaker 3: in that trajectory. And in Nvidia up four percent, managing

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Speaker 3: to play a bit of catch up after it's sold

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Speaker 3: off for the last few days.

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Speaker 2: But that's as they could do with Corning.

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Speaker 3: They could be buying up to five hundred million dollars

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Speaker 3: worth of shares and it's all about optical fibers. That's

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Speaker 3: all about the AI data center too. So as TALKI

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Speaker 3: infrastructure with a man who's been doing it for years

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Speaker 3: in Kings with us in first AMD Lisa Sou managing

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Speaker 3: to show that the total addressable from a market for

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Speaker 3: CPU in particular really on fire as well as GPUs.

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Speaker 4: Yeah, now you're exactly right.

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Speaker 5: They put out earnings that were sort of pretty good,

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Speaker 5: not as maybe exciting as some had hoped and learn.

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Speaker 5: On the conference call, she gave a very bullish projection

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Speaker 5: for the CPU, which is one of their core parts,

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Speaker 5: part that's kind of been neglected in this AI race,

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Speaker 5: and said, look, things are really strong there and guess

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Speaker 5: what in this current quarter things are going to be

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Speaker 5: up seventy percent for that particular business, and that was

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Speaker 5: affirmation of what a lot of other companies have said.

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Speaker 3: Wow, I mean, how is she navigating some of the

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Speaker 3: issues that we've seen from a supply chain perspective, some

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Speaker 3: of the memory issue that of course hits the PC

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Speaker 3: side of the business.

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Speaker 5: Yeah, I mean she got a lot of questions on

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Speaker 5: the conference call exactly on that point, as you would imagine,

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Speaker 5: and her answer was like, look, we've seen this coming,

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Speaker 5: We've been working really hard. Guess what if you're a

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Speaker 5: memberships player, you want to be selling this extremely expensive

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Speaker 5: memory to me and to data center. So don't worry,

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Speaker 5: we can meet our forecast, was what she was essentially

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Speaker 5: assuring people.

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Speaker 3: Now, AMD managed to pay off and we are seeing

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Speaker 3: them ramp up sales. But when you compare like an

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Speaker 3: eleven billion dollar guidance for the Core to coming compared

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Speaker 3: to well seventy billion dollars we expect from the like

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Speaker 3: sort of an Nvidia, it's still a second versus the giant,

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Speaker 3: and the giant making news to day in what did

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Speaker 3: you think about the deal with coreing Corning And once

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Speaker 3: again is this cirt killar financing in some way or

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Speaker 3: just making sure that AI infrastructure can get built.

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Speaker 5: I think Jensen would explain it as you did at

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Speaker 5: the Milk and conference this week, is like, look, we

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Speaker 5: are going to go out. We're going to use our

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Speaker 5: money to remove or to do our best to remove

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Speaker 5: any possible bottle neck that's out there. And fiber is

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Speaker 5: a big potential bottle neck going forward. Speed of light

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Speaker 5: is as fast as you can transmit information. Traditional copper

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Speaker 5: is reaching its limits. Guess what we need to make

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Speaker 5: sure we have a lot of fiber optic connections out

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Speaker 5: there for our forthcoming chips to keep this whole thing going.

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Speaker 5: So he's obviously been putting his money to work in

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Speaker 5: that kind of company as.

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Speaker 3: Well, company based right here in New York State and

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Speaker 3: King We so appreciate you out on the West coast

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Speaker 3: for us.

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Speaker 2: Thank you. Let's speak about more of all of this

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Speaker 2: streny perjury is.

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Speaker 3: With US Semiconductor and Semi's equipment and this obviously capital

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Speaker 3: your latest note, can you highlight how am d strong

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Speaker 3: CPU growth doubling of projections is that achievable?

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Speaker 2: What could Chow call that?

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Speaker 4: Well?

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Speaker 6: Right now? The demand is very strong, you know, Agent

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Speaker 6: Ki is the primary reason. But overall, AI capex has

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Speaker 6: been going up as well. And on top of that,

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Speaker 6: we're seeing strong demand on the enterprise you know, server

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Speaker 6: side as well. So I think in a part of

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Speaker 6: it is AI, part of it is in a traditional

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Speaker 6: server demand. Overall demand is very strong, and in addition

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Speaker 6: to that, you know, supply has been tight. Uh you know,

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Speaker 6: Intel talked about you know, not not having you know,

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Speaker 6: enough supply to you know, address the current demand. As

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Speaker 6: a result, you know, the visibility is extending, the backlog

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Speaker 6: is extending through the year, even into into next year.

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Speaker 6: But I think I think there's also the structural you know,

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Speaker 6: uh tailwind from you know, you know what we call

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Speaker 6: the CPU to GPU ratio. If you look at the

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Speaker 6: systems today in AI, typically it's one to four is

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Speaker 6: what we see. In some cases one too, but the

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Speaker 6: view is that that's going to go to one to one,

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Speaker 6: even you know, more than one to one.

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Speaker 4: So you know, that will be interesting to see.

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Speaker 3: Tiny for our audience talk through that step function. It's

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Speaker 3: all about agent KI, It's all about the need for inference, right.

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Speaker 6: Yeah. I mean, look in training workloads. You know, historically

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Speaker 6: we have seen you know, a CPU to GPU ratio

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Speaker 6: of you know, one to four, even in some cases

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Speaker 6: one to eight. And as we move to influencing, that

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Speaker 6: is changing, primarily because of agentic AI. And of course

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Speaker 6: you need to run the models still on you know,

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Speaker 6: powerful GPUs, but to manage you know, because users are

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Speaker 6: creating so many agents, to manage these agents, and to

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Speaker 6: make sure that agents are you know, getting the appropriate

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Speaker 6: data and they're talking to you know, other APIs. You know,

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Speaker 6: CPUs you know, play a critical role. So we are

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Speaker 6: seeing again it's early days. It's it's difficult to draw

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Speaker 6: you know, too many conclusions, but the trend is moving

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Speaker 6: in the direction of you know, that ratio improving in

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Speaker 6: favor of cp you. So you know, our view is

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Speaker 6: that at least you know, we have visibility based on

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Speaker 6: you know, some of the architectures that we have seen

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Speaker 6: from Nvidia and AMD and Google, et cetera. Into twenty

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Speaker 6: twenty seven. You know, it's moving in the in the

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Speaker 6: direction we think it's going to get to like, you know,

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Speaker 6: one to two by end of next year. But whether

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Speaker 6: it gets to one to one or even higher than

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Speaker 6: one to one, that remains to be seen.

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Speaker 3: Can I talk you about talk to you about valuations,

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Speaker 3: because when you look at AMD on a one year hr,

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Speaker 3: it's extraordinary.

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Speaker 2: We're at a new record high.

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Speaker 3: We're up three hundred percent over that one year basis,

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Speaker 3: we're up sixty more than sixty percent on the year,

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Speaker 3: and a new record high of look at six hundred

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Speaker 3: billion dollars market cap, that's nothing compared to the four

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Speaker 3: trillion of Nvidia. But when you start to get a

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Speaker 3: little bit anxious about where the stock trades, well.

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Speaker 6: You know, the valuation is rich, right, you know, and videos,

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Speaker 6: you know, trading in high teens. When you look at

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Speaker 6: calendar twenty seven members and AMD is probably trading close

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Speaker 6: to twice the multiple. It is at a premium. But

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Speaker 6: as you said, it's a smaller market cap name. You

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Speaker 6: could argue maybe it's growing faster because it's smaller in size.

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Speaker 6: But you know, for US, I think CPU certainly helps

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Speaker 6: the short term, but longer term, if you look at

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Speaker 6: the GPU opportunity that's much bigger, I would say GPUs

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Speaker 6: probably we're talking including the custom chips, you know, a

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Speaker 6: trillion dollar type SAM and the CPU. As Lisa said,

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Speaker 6: it's about one hundred and twenty billion. It used to

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Speaker 6: be sixty, not too long ago. So I think it's

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Speaker 6: essential that AMD make progress on the GPU front. And

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Speaker 6: they've announced you know, new customers, you know, Open Ai

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Speaker 6: and Meta, and those customers are expected to ramp later

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Speaker 6: this year and into next year. So you know, that's

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Speaker 6: why we're we're actually sitting on the sidelines right now,

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Speaker 6: even though the demand is very strong because of valuation.

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Speaker 6: We want to see some evidence that you know, AM

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Speaker 6: they can actually gain and compete against Nvidia and gain

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Speaker 6: some incremental share as we go into next year.

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Speaker 3: So it's about execution for Lisa, Sue talk to us

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Speaker 3: a little bit about what we seeing in optical fiber

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Speaker 3: exuberance today as well. Corning up fourteen percent in video

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Speaker 3: saying look, I want I want to in on your

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Speaker 3: shares up to five hundred million dollars worth and the

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Speaker 3: right start purchase them. What can Corning bring to AI

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Speaker 3: data centers?

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Speaker 6: Well, at a high level, you know, AI demand is

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Speaker 6: putting pressure on connectivity. You know, you know it's one

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Speaker 6: thing to process the data, but you also need to

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Speaker 6: move the data at the super fast speeds, and the

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Speaker 6: demand has been so strong that you know, all those

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Speaker 6: connectivity you know, bottlenecks are emerging and optical plays a

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Speaker 6: key role in moving the data not only between you know,

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Speaker 6: the servers, but also between data centers. So you know,

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Speaker 6: we're seeing, you know, the supply constraints emerge across the board,

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Speaker 6: and I think in videos, what EN Video is trying

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Speaker 6: to do is make sure that you know, those supply

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Speaker 6: constraints are not going to limit their growth and they're

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Speaker 6: using their balance sheet strength. And that's one of the

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Speaker 6: reasons you know, we like n Video because you know,

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Speaker 6: they not only have the best products in the industry,

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Speaker 6: but also have the balance sheet strength. I think that

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Speaker 6: is a structural like vantage in an environment like this

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Speaker 6: where everything is so tight.

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Speaker 3: I'll bec analyst Streni perjury. It's really great to have

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Speaker 3: your analysis on the show today.

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Speaker 2: Thank you very much. Indeed.

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Speaker 3: Meanwhile, sticking with all things chips, Germany's Infinian also reporting

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Speaker 3: earnings forecasting revenue of around four point eight billion dollars

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Speaker 3: for its fiscal third quarter that did beat expectations.

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Speaker 2: The company is saying it's benefiting from spending moon on.

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Speaker 3: AI infrastructure, where it's power supply solutions for data centers

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Speaker 3: and very high demand. But as you see, the stock

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Speaker 3: has been under pressure in European trading like twenty twenty six,

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Speaker 3: they say on track to grow about ten percent coming up.

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Speaker 3: Disney gets a profit boost from some successful sequels, improved

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Speaker 3: streaming results, and guests spending at their parks will dig in.

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Speaker 2: This has been by tech.

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Speaker 3: Check in on shares of Disney having their best day

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Speaker 3: in a year, currently up seven percent, the company posting

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Speaker 3: stronger than expected results thanks to improve profitability from its

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Speaker 3: streaming business and guests they're spending more at the parks.

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Speaker 3: Here discuss is Helen and Wang, which is Philip Securities

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Speaker 3: research analyst. You were impressed by the numbers and all

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Speaker 3: being given by the new CEO.

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Speaker 7: Yes, I think it's a pretty solid number of the

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Speaker 7: m ros first earnings both revenue and EPs pis estimate

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Speaker 7: and they've guided for twelve percent EPs girls for twenty

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Speaker 7: twenty six, so that's for the acceleration. So I will

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Speaker 7: say it's pretty good start for the new CEO.

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Speaker 3: Good start when actually we thought maybe things didn't look

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Speaker 3: so pretty when he first took up the reins. There

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Speaker 3: was Sora unraveling the deal with open Ai. There was

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Speaker 3: concerns with what's happening with Epic Games and their partnership.

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Speaker 3: But more broadly, how do you think the consumer is

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Speaker 3: feeling right now getting into the park, because we've got

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Speaker 3: a lot of micro headwinds.

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Speaker 7: Yes, looking at their experience division, they are seeing a

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Speaker 7: slight decrease in their US parkeet so that is probably

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Speaker 7: something paired from the wall. So fewer for as far

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Speaker 7: as are traveling to the US, but we are seeing

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Speaker 7: guests spending more at the US parks. So per person

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Speaker 7: spending group five percent you're on year, So that means

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Speaker 7: people are spending more on the tickets, on the food,

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Speaker 7: on the merchandises. They're seeing very strong booking in their

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Speaker 7: Disney World. Another factor that's coming is they're seeing the

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Speaker 7: cruise ship having higher volume, probably because of the new

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Speaker 7: introduction of their Disney Destiny and Disney Adventure that was

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Speaker 7: introduced in March twenty twenty six, so that kind of

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Speaker 7: gives them a forty percent increase in cruise booking capacity.

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Speaker 3: I love how in your notes you really think about

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Speaker 3: the flywheel effect, the IP flywheel effect.

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Speaker 2: This is how this business makes sense.

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Speaker 3: The fact that they've got new frozen experiences coming online.

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Speaker 3: They're investing in the IP and the entertainment but also

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Speaker 3: in the experience space, are you willing to take down

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Speaker 3: more of that investment at the moment because they have

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Speaker 3: spent a lot on cruises, they are updating the way

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Speaker 3: in which they're serving people at the parks.

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Speaker 7: Yes, they're definitely investing very aggressively right now, but I

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Speaker 7: see it comes from a point of confidence because they're

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Speaker 7: doing so well in their current business, so they're trying

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Speaker 7: to expand more in order to lay out more on

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Speaker 7: the lanesom Girls Wrongway. So they're coming up with a

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Speaker 7: lot of major part expansion globally. They're coming up with

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Speaker 7: another new cruise ship in Japan, and they're also coming

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Speaker 7: up with a new scene part resulting Abu Dhabi. So

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Speaker 7: I guess the war impact is very minimum for them.

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Speaker 7: I guess it's a good thing because their unique value

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Speaker 7: is rooted in the strong brand, reputation and the flightway effect.

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Speaker 3: I think that's a really good point that even though

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Speaker 3: we've got conflict geopolitical anxiety in the Middle East, they're

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Speaker 3: still going ahead with what's happening in Abadabi. Just one

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Speaker 3: area of concern is just the cost of doing business

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Speaker 3: when it comes to sports as well.

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Speaker 2: Right, ESPN did show that weakness.

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Speaker 3: There is that something that you also have to take

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Speaker 3: down in terms of investment.

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Speaker 2: They need the content, they need to win the rights.

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Speaker 7: Yes, ESPN actually the increasing revenue because of the higher

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Speaker 7: subscription and affiliate fee due to their NFL transaction, But

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Speaker 7: it's definitely they're showing a decreasing operating income because of

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Speaker 7: the highest flora and production costs. But I guess everybody

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Speaker 7: in the streaming industry right now is trying to increase

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Speaker 7: their life sport because it's a large market, it has

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Speaker 7: a very loyal fan base that will always be there,

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Speaker 7: and everybody wanted the piece of that juicy pie and

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Speaker 7: sport where are so expensive right now, especially if you

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Speaker 7: want it as skill and Disney they already have the skill,

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Speaker 7: so I think even though the cost is a little

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Speaker 7: bit high for them, but they do have the advantage

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Speaker 7: in that sector.

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Speaker 2: Helena, it's great catching up with you.

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Speaker 3: Thanks for joining again, Helena Wang of Philip Securities. There

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Speaker 3: are all things Disney Now, it's time for talking tech.

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Speaker 2: First up, White House economic advice that Kevin.

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Speaker 3: Has It says a potential executive order is in the

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Speaker 3: works to provide a quote clear roadmap for AI safety.

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Speaker 2: Now the directive is taking shape.

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Speaker 3: Weeks off, Terranthropic revealed its mythos model that could pose

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Speaker 3: a global cybersecurity risk. Plus, Morgan Stanley is rolling out

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Speaker 3: cryptocurrency trading on his e trade platform, charging clients at

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Speaker 3: just fifty basis points, half the cost of some major

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Speaker 3: rivals like Robin Hood. So latest move in a massive

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Speaker 3: Wall Street pivot. The biggest banks are no longer just

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Speaker 3: watching the crypto space, looking to own it. And Samsung

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Speaker 3: has officially entered the trillion dollar club, making the firm

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Speaker 3: only the second Asian firm after TSMC, to hit that

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Speaker 3: one trillion dollar milestone.

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Speaker 8: Now.

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Speaker 3: The company's gain also pushed the Cosby Index past seven

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Speaker 3: thousand for the first time in history. Coming up, we're

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Speaker 3: going to be speaking with the Uber cfo Alargi, Christian

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Speaker 3: Murphy as as the Right Haling Platform posts a second

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Speaker 3: quarter outlook the beat expectations. We're talking all things AI

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Speaker 3: as well as delivery the Supremo Tech.

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Speaker 2: Checking in on shares of Uber company.

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Speaker 3: Reporting second quarter bookings outlooks the beat expector that we're

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Speaker 3: out eight point four percent as break down striving bookings

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Speaker 3: growth in particular, you' a CFOs with us Alergi Krishna Murphy, ALERGI,

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Speaker 3: talk to me about why we're amid the macro concerns,

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Speaker 3: amid maybe a slightly worrying environment with oil prices, for example,

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Speaker 3: You're still managing to push forward on bookings on demand.

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Speaker 4: Thanks Caroline.

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Speaker 9: So I think you know, if you think about our quarter,

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Speaker 9: the first thing I'd say is we're incredibly proud of

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Speaker 9: the pace with which our teams have been introducing new products,

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Speaker 9: and you would have seen just recently we at our

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Speaker 9: annual go Get event, we introduced a number of new

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Speaker 9: products and features that meet our customers where they want

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Speaker 9: to go, whether they're developed internally at uber or through

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Speaker 9: our partners like Expedia, we're bringing them best of breed solutions.

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Speaker 9: So that's setting us up for incredibly strong top line momentum,

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Speaker 9: and we delivered twenty one percent growth in the quarter.

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Speaker 9: This is the third successive quarter where we've done that

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Speaker 9: kind of a mark for the company, and we are

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Speaker 9: also in addition to those product innovations organically in our core,

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Speaker 9: we also reported that we were able to scale our

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Speaker 9: nascent autonomous vehicles business ten x here on year, which

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Speaker 9: is again a really good starting possession for us to

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Speaker 9: be at.

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Speaker 10: Now.

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Speaker 9: We're doing all of this in a very choppy macro environment,

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Speaker 9: as you rightly pointed out. I'm happy to talk about

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Speaker 9: some of the detracting items there, but what we have

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Speaker 9: been doing as we get this growth, we've been focused

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Speaker 9: on extremely disciplined operations from a cost management standpoint, and

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Speaker 9: we're embracing AI increasingly to drive more efficiency for the company.

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Speaker 9: So that's allowing us to report EPs growth of forty

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Speaker 9: four percent here on you as well on top of

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Speaker 9: that twenty one percent and top line growth, and it's

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Speaker 9: setting us up really well for the rest of the year.

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Speaker 9: And you see that in our outlook, which I think

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Speaker 9: met and exceeded expectations on both top and bottom line.

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Speaker 2: Let's take into that Uber Expedia partnership.

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Speaker 3: It's only about a week old or so, and I

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Speaker 3: can understand that it's sort about adding hotel bookings, Like,

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Speaker 3: is this some sort of real uptick to subscriptions? Do

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Speaker 3: you think in the longer term, how does it help

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Speaker 3: just bring more and more people back to the app

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Speaker 3: time and again?

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Speaker 9: Yeah, yeah, So I think the important thing to know

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Speaker 9: there is we think consumers who engage with our products

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Speaker 9: across our portfolio are incredibly valuable to us, and today

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Speaker 9: only about twenty percent of our monthly active consumers engage

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Speaker 9: across the platform on both mobility and delivery services, but

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Speaker 9: when they do, they drive significantly higher growth, bookings profits

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Speaker 9: for the company. And underpinning all of that activity for

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Speaker 9: US is our Uber one program, right, and we talked

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Speaker 9: about getting to about fifty million members as of this quarter.

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Speaker 4: We added about twenty million.

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Speaker 9: Members the last year alone, and now these members drive

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Speaker 9: fifty percent of our gross bookings for the company. When

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Speaker 9: you think about a partnership like Experia, what we are

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Speaker 9: trying to do is to expand the surface area of

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Speaker 9: what we consider cross platform and today's mobility and delivery

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Speaker 9: in the core. But hotels are a very adjacent opportunity

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Speaker 9: for US, where fifteen percent of our mobility gross bookings

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Speaker 9: comes from airport trips, forty percent of our US riders

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Speaker 9: take trips outside of their home cities, and then last

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Speaker 9: year we did one point five billion trips globally that

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Speaker 9: happened in outside users' home cities. So when you bring

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Speaker 9: in a program like this, it allows us to bring

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Speaker 9: the best prices to our consumers on hotel bookings from

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Speaker 9: experience platform, and in addition, we're giving them ten percent

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Speaker 9: cash back which is quite incredibly valuable, which they come

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Speaker 9: back and spend.

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Speaker 11: On our plot.

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Speaker 2: Can I talk about the B to B business?

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Speaker 3: You want it to become a ten million dollar plus

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Speaker 3: business briefly?

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Speaker 4: Like?

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Speaker 2: What are the growth markets for that?

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Speaker 7: Yeah?

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Speaker 9: So very exciting trajectory there for us as well. We

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Speaker 9: noted that we're at now five billion in gross bookings

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Speaker 9: on that business and it's growing forty five percent relative

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Speaker 9: to that twenty one percent total that we talked about.

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Speaker 9: When you think about our B to B business, it's

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Speaker 9: effectively bringing ubers services across both mobility and delivery to

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Speaker 9: enterprise grade sort of modality to customers across the enterprise stack.

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Speaker 9: When we where we are today, we are at about

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Speaker 9: three hundred thousand organizations globally that are using our services

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Speaker 9: through this offering, and we do think that over time

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Speaker 9: we can service as many as a million organizations globally

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Speaker 9: and that would allow us to get to five get

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Speaker 9: from five to ten billion dollars there.

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Speaker 2: It was CFO Alergy.

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Speaker 3: Christian Murphy, thank you very much indeed for joining us

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Speaker 3: today on all things earnings. Let's turn our attention to

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Speaker 3: energy now, because Microsoft is considering delaying or abandoning is

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Speaker 3: ambitious clean energy targets. According to sources, the reason AI

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Speaker 3: race and most body four joins us for more on this.

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Speaker 3: Just spell out what the targets were for Microsoft, why

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Speaker 3: they were so perhaps over and above others in the space.

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Speaker 12: Yeah, you remember, there was a point in time where

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Speaker 12: we heard big companies talk a whole lot more about

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Speaker 12: the climate than they do now.

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Speaker 6: Right.

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Speaker 12: Microsoft was one of these large tech companies. I was

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Speaker 12: quite vocal, and they said that we're going to match

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Speaker 12: one hundred percent of the energy we use in our

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Speaker 12: offices and data centers by putting clean energy back onto

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Speaker 12: the grid. That might be solar, battery, wind, stuff of

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Speaker 12: that nature. But of course these targets were set before

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Speaker 12: the AI boom, and now they're racing to get as

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Speaker 12: much power as they can and starting up gas power plants,

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Speaker 12: and so our understanding is that inside the company, there's

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Speaker 12: a growing sense that we're going to have to revise

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Speaker 12: and take back some of these ambitious climate targets that

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Speaker 12: were so important at least to our marketing.

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Speaker 3: You say, talks inside Microsoft are ongoing there's no final decision.

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Speaker 3: In fact, you spoke to a spokesperson for the story

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Speaker 3: and talking about how they're continuing to look for opportunities

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Speaker 3: to maintain that annual matching goal. But look, they're not

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Speaker 3: commenting on the much tougher hourly commitment.

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Speaker 2: Was that a tell?

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Speaker 12: Yeah, it's one of these things that's quite wonky. I mean,

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Speaker 12: I certainly had to learn a lot of these differences,

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Speaker 12: but matching on the annual level is not quite as

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Speaker 12: difficult because essentially, during the daytime there's a ton of

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Speaker 12: clean energy, largely due to solar. Matching your energy use

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Speaker 12: in the nighttime is the big challenge, especially because data

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Speaker 12: centers run twenty four to seven, and so you could

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Speaker 12: maintain your annual matching and it still sounds pretty good.

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Speaker 12: But what this is, and it's important to recognize, is

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Speaker 12: it's a step back on climate goals. Assuming they go

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Speaker 12: through with this decision, I think.

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Speaker 3: Makes Brady ford the impact of AI, we appreciate it.

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Speaker 2: Thank you.

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Speaker 3: With AI costs, open ai expects to spend fifty billion

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Speaker 3: dollars on computing power in just this year.

441
00:22:06,040 --> 00:22:07,560
Speaker 2: That's according to the company's.

442
00:22:07,160 --> 00:22:10,480
Speaker 3: President, Greg Brockman, testifying in open AI's courtroom battle against

443
00:22:10,520 --> 00:22:13,800
Speaker 3: Elon Musk. Brockman also said he and other co founders

444
00:22:13,840 --> 00:22:17,920
Speaker 3: were concerned that Musk lacked the patients and AI understanding

445
00:22:18,080 --> 00:22:21,879
Speaker 3: to run the chat chypt maker. The trial continues today.

446
00:22:22,840 --> 00:22:25,919
Speaker 3: Coming up Disney's bottom line. While it gets a boost

447
00:22:25,920 --> 00:22:27,560
Speaker 3: from some hit sequels, it got some what.

448
00:22:27,720 --> 00:22:28,359
Speaker 2: To come as well.

449
00:22:28,600 --> 00:22:31,480
Speaker 3: We're also talking about the streaming turnaround, resilient spending in

450
00:22:31,520 --> 00:22:31,960
Speaker 3: the parks.

451
00:22:31,960 --> 00:22:34,520
Speaker 2: There's a new CEO and it was pretty good news

452
00:22:34,560 --> 00:22:34,800
Speaker 2: to him.

453
00:22:34,800 --> 00:22:36,880
Speaker 3: As the stock reacts up to seven percent, the best

454
00:22:36,960 --> 00:22:40,119
Speaker 3: day for Disney in a year at least. Let's talk

455
00:22:40,119 --> 00:22:42,600
Speaker 3: about NASA one hundred one and a half percent the

456
00:22:42,680 --> 00:22:43,320
Speaker 3: socks again.

457
00:22:43,400 --> 00:22:44,639
Speaker 2: Chip stocks are on fire.

458
00:22:44,720 --> 00:22:47,520
Speaker 3: We see Nvidio inking deals of corning to ensure that

459
00:22:47,560 --> 00:22:52,720
Speaker 3: there's AI infrastructure supply, and AMD really impresses on its earnings.

460
00:22:52,800 --> 00:22:53,640
Speaker 2: This is brumbo tech.

461
00:23:01,320 --> 00:23:04,520
Speaker 3: Welcome back to bloommeg tech. We have got techtogs in demand.

462
00:23:04,560 --> 00:23:07,280
Speaker 3: There's geopolitics at play. There's hope that there is some

463
00:23:07,680 --> 00:23:11,080
Speaker 3: de escalation between US and Iran and that plays into

464
00:23:11,119 --> 00:23:12,880
Speaker 3: the markets. But so two to earnings and I'm looking

465
00:23:12,880 --> 00:23:14,320
Speaker 3: at the nastag up one.

466
00:23:14,160 --> 00:23:14,879
Speaker 2: Point six percent.

467
00:23:14,920 --> 00:23:17,919
Speaker 3: We're a record high again for the tech heavy benchmark,

468
00:23:18,040 --> 00:23:19,680
Speaker 3: and we think about what's leaving the pack in terms

469
00:23:19,720 --> 00:23:21,600
Speaker 3: of points. There's a lot to do with earnings. I

470
00:23:21,640 --> 00:23:24,960
Speaker 3: dig into one of them. Disney currently having its best

471
00:23:25,040 --> 00:23:28,199
Speaker 3: day in a year, new CEO Josh Damara, able to

472
00:23:28,280 --> 00:23:31,600
Speaker 3: deliver strong results in particular. Look, we're up six percent

473
00:23:31,640 --> 00:23:33,720
Speaker 3: on the name. We're just rolling over from our previous peak.

474
00:23:33,920 --> 00:23:36,360
Speaker 3: But this is all about a company that's getting more optimization,

475
00:23:36,400 --> 00:23:39,920
Speaker 3: more monetization from streaming in particular. And look, Bloomberg Intelligence

476
00:23:39,960 --> 00:23:43,440
Speaker 3: is pointing to the strengthening growth outlook and more consistent

477
00:23:43,480 --> 00:23:46,680
Speaker 3: earnings trajectory. More broadly, as a company brushes off part

478
00:23:46,720 --> 00:23:49,920
Speaker 3: concerns with higher and exbra share guidance too. Keith Raganavin

479
00:23:49,920 --> 00:23:52,919
Speaker 3: from Bloemegg Intelligence joins us now and look, can you

480
00:23:53,080 --> 00:23:55,800
Speaker 3: talk about perhaps the anxiety going into this about the

481
00:23:55,840 --> 00:23:58,320
Speaker 3: consumer and they show resilience.

482
00:23:58,480 --> 00:24:00,879
Speaker 2: Is it the box office? Is it the was working?

483
00:24:02,200 --> 00:24:04,960
Speaker 13: Everything seems to be working right now, Caroline. And of course,

484
00:24:04,960 --> 00:24:07,040
Speaker 13: coming into this quarter, there was a lot of concerns

485
00:24:07,080 --> 00:24:10,560
Speaker 13: about whether Disney would in fact lower their guidance for

486
00:24:10,640 --> 00:24:13,360
Speaker 13: the full year, and they did exactly the opposite, which

487
00:24:13,400 --> 00:24:16,280
Speaker 13: is why we're kind of seeing the shares really react

488
00:24:16,320 --> 00:24:19,399
Speaker 13: with so much more confidence today. So, you know, on

489
00:24:19,440 --> 00:24:22,560
Speaker 13: the theme parks, which is sixty percent of total company profit,

490
00:24:23,240 --> 00:24:26,880
Speaker 13: we were expecting, you know, very very modest profit increase

491
00:24:26,960 --> 00:24:30,600
Speaker 13: for the fiscal second quarter. They actually outperformed with five

492
00:24:30,640 --> 00:24:34,320
Speaker 13: percent increase in profit, and you know, they attribute that

493
00:24:34,320 --> 00:24:38,240
Speaker 13: to pretty strong per capita spending, even though visitation was

494
00:24:38,320 --> 00:24:41,639
Speaker 13: a little challenged, so international visitation to their domestic parks

495
00:24:42,000 --> 00:24:44,399
Speaker 13: has been heard by you know, a stronger dollar and

496
00:24:44,440 --> 00:24:47,200
Speaker 13: some of the geopolitical tensions. But despite that, they kind

497
00:24:47,240 --> 00:24:50,960
Speaker 13: of delivered. And really, I think the upbeat commentary for

498
00:24:51,160 --> 00:24:53,720
Speaker 13: the fiscal third quarter where they talked about, you know,

499
00:24:53,760 --> 00:24:57,760
Speaker 13: a pickup in demand and some of those attendance headwinds

500
00:24:57,840 --> 00:25:01,960
Speaker 13: kind of fading away, really lends credence to their very

501
00:25:02,000 --> 00:25:05,399
Speaker 13: optimistic outlook for fiscal twenty twenty six and even fiscal

502
00:25:05,400 --> 00:25:06,200
Speaker 13: twenty twenty seven.

503
00:25:06,440 --> 00:25:08,440
Speaker 3: It's all about what we're discussing at the top of

504
00:25:08,480 --> 00:25:10,840
Speaker 3: the show, the flywheel effect of the IP and how

505
00:25:11,000 --> 00:25:14,439
Speaker 3: attractive it is that plays into the streaming into the content.

506
00:25:14,520 --> 00:25:17,160
Speaker 3: Just to listen to Josh Tomorrow on the call yesterday,

507
00:25:17,200 --> 00:25:18,120
Speaker 3: what he had to say.

508
00:25:18,560 --> 00:25:23,200
Speaker 14: We centralized television programming within Disney Entertainment DTC. So we're

509
00:25:24,320 --> 00:25:27,720
Speaker 14: programming for Disney Plus and Hulu while being smart about

510
00:25:28,000 --> 00:25:31,200
Speaker 14: window and content to linear so that we can expand reach.

511
00:25:31,080 --> 00:25:32,960
Speaker 4: And maximize monetization.

512
00:25:33,359 --> 00:25:36,600
Speaker 14: And we also integrated our games business into Disney Entertainment

513
00:25:36,640 --> 00:25:40,399
Speaker 14: and this creates new opportunities to cross promote franchises and

514
00:25:41,040 --> 00:25:44,240
Speaker 14: use games to extend storytelling and ultimately develop new ip.

515
00:25:44,520 --> 00:25:46,639
Speaker 3: And of course was this morning not last night? My

516
00:25:46,760 --> 00:25:48,720
Speaker 3: days are a loss eitho when we're in earnings, I'm

517
00:25:48,720 --> 00:25:52,000
Speaker 3: interested as to what Josh did to convince about perhaps

518
00:25:52,040 --> 00:25:55,000
Speaker 3: his big epic games bet, the Fortnite bet that people

519
00:25:55,080 --> 00:25:57,000
Speaker 3: have been worried about to start of his reign.

520
00:25:58,240 --> 00:26:00,600
Speaker 13: Yeah, so it's really, you know, as part of that

521
00:26:00,680 --> 00:26:03,680
Speaker 13: whole content strategy. Yes, you're right to point out video games,

522
00:26:03,720 --> 00:26:06,640
Speaker 13: and they're basically trying to create, you know, this one

523
00:26:06,680 --> 00:26:10,199
Speaker 13: stop shop really using Disney Plus as kind of the

524
00:26:10,320 --> 00:26:13,520
Speaker 13: hub for so many more products because you know, at

525
00:26:13,560 --> 00:26:15,080
Speaker 13: the end of the day, at Disney has such a

526
00:26:15,119 --> 00:26:18,919
Speaker 13: fantastic product portfolio with of course streaming, but then you

527
00:26:19,040 --> 00:26:22,080
Speaker 13: have movies, and you have theme parks, and you have merchandise,

528
00:26:22,119 --> 00:26:24,480
Speaker 13: and you have video games, and it's really, you know,

529
00:26:24,520 --> 00:26:27,359
Speaker 13: Josh Tomorrow kind of setting the stage for achieving that

530
00:26:27,440 --> 00:26:31,119
Speaker 13: whole next phase of growth by leaning more heavily into

531
00:26:31,160 --> 00:26:34,480
Speaker 13: that Disney Plus experience. Right with video games, you have

532
00:26:34,560 --> 00:26:37,760
Speaker 13: access to a whole new audience, a much younger audience,

533
00:26:38,440 --> 00:26:40,640
Speaker 13: you know, whom you can sell into. And that's exactly

534
00:26:40,680 --> 00:26:43,320
Speaker 13: what he's planning to do. But it's really about reintegrating

535
00:26:43,359 --> 00:26:45,760
Speaker 13: the content engine as a whole. And I think he

536
00:26:45,800 --> 00:26:48,679
Speaker 13: did a pretty good job of convincing investors that he

537
00:26:48,800 --> 00:26:51,200
Speaker 13: knows exactly what he's doing and he has a plan

538
00:26:51,240 --> 00:26:51,639
Speaker 13: in place.

539
00:26:51,760 --> 00:26:53,920
Speaker 2: Now we're all excited for Devils product.

540
00:26:53,600 --> 00:26:55,960
Speaker 3: Too, if you haven't already seen it, but took us

541
00:26:56,000 --> 00:26:59,280
Speaker 3: to another place where content is coming. Warner Brothers Discovery

542
00:26:59,400 --> 00:27:00,600
Speaker 3: got their earnings after the Bell.

543
00:27:02,480 --> 00:27:05,840
Speaker 13: Yeah, So for Warner Brothers, it's just such a completely

544
00:27:05,840 --> 00:27:09,320
Speaker 13: different story. I mean, I think, you know, fundamentals their earnings.

545
00:27:09,320 --> 00:27:11,520
Speaker 13: That's a little bit of a sideshow here. It's all

546
00:27:11,560 --> 00:27:13,840
Speaker 13: about M and A. We do know that one of

547
00:27:13,880 --> 00:27:15,840
Speaker 13: the numbers that we're going to be looking for as

548
00:27:15,880 --> 00:27:18,720
Speaker 13: the street will be is at TV advertising revenue and

549
00:27:18,760 --> 00:27:23,240
Speaker 13: advertising revenue in general. We do expect a pretty dismal

550
00:27:23,800 --> 00:27:25,879
Speaker 13: quarter if you would you if you can call it

551
00:27:25,920 --> 00:27:30,040
Speaker 13: that for TV advertising, just because Warner Brothers Discovery lost

552
00:27:30,119 --> 00:27:33,240
Speaker 13: its rights to the NBA, and so that is definitely

553
00:27:33,240 --> 00:27:35,679
Speaker 13: going to have a huge impact. But other than that,

554
00:27:35,760 --> 00:27:38,480
Speaker 13: any color that you know they can offer, just generally

555
00:27:38,560 --> 00:27:40,960
Speaker 13: from an M and A perspective, although I doubt they

556
00:27:41,000 --> 00:27:41,439
Speaker 13: will do that.

557
00:27:42,280 --> 00:27:44,480
Speaker 3: It's a busy timmy if you too, Thrang and app

558
00:27:44,520 --> 00:27:46,719
Speaker 3: and we so appreciate you of Bloomberg Intelligence.

559
00:27:47,160 --> 00:27:48,479
Speaker 2: Let's stick with those earnings.

560
00:27:48,480 --> 00:27:50,919
Speaker 3: We're getting back to MD why because it's the biggest

561
00:27:50,920 --> 00:27:53,440
Speaker 3: points contributor on the nasat one hundred, that a record high.

562
00:27:53,440 --> 00:27:56,040
Speaker 2: It shares a record high. We're up seventeen percent.

563
00:27:56,560 --> 00:27:59,880
Speaker 3: Bluebag's Round for Stelca has been writing about well, some.

564
00:27:59,840 --> 00:28:02,119
Speaker 2: Of the competitive threats that are coming in video's way.

565
00:28:02,200 --> 00:28:04,480
Speaker 3: Let's go in on AMD because this isn't actually just

566
00:28:04,560 --> 00:28:07,879
Speaker 3: a GPU story, this is CPU story. This is about

567
00:28:08,080 --> 00:28:09,960
Speaker 3: a total addressable market that doubles.

568
00:28:11,320 --> 00:28:12,800
Speaker 4: Yeah, good morning, thanks for having me.

569
00:28:13,040 --> 00:28:15,359
Speaker 15: So what I would start with is that AMD coming

570
00:28:15,400 --> 00:28:18,639
Speaker 15: into this report was coming off its biggest one month

571
00:28:18,680 --> 00:28:22,240
Speaker 15: gain since the dot com era, so expectations were really

572
00:28:22,320 --> 00:28:25,639
Speaker 15: elevated for this report. And even with that, it really

573
00:28:25,680 --> 00:28:30,000
Speaker 15: just blew everyone away. Very strong results, very strong forecast.

574
00:28:30,040 --> 00:28:32,119
Speaker 15: At least a couple of upgrades I saw, including from

575
00:28:32,160 --> 00:28:36,160
Speaker 15: Goldman this morning. People were very impressed by their ability

576
00:28:36,200 --> 00:28:39,880
Speaker 15: to draw like really impressive growth and really sort of

577
00:28:39,960 --> 00:28:42,520
Speaker 15: establish themselves as a major player within AI.

578
00:28:43,520 --> 00:28:46,720
Speaker 3: Some of the price target changes were actually I watering.

579
00:28:46,840 --> 00:28:47,720
Speaker 2: I think some of them.

580
00:28:47,720 --> 00:28:50,240
Speaker 3: First Team were doubling their price target on AMD, so

581
00:28:50,640 --> 00:28:53,200
Speaker 3: big moves. Ryan, what about in video playing a bit

582
00:28:53,200 --> 00:28:54,760
Speaker 3: of a catch up today, because you've been writing a

583
00:28:54,760 --> 00:28:56,720
Speaker 3: lot about how maybe it's been beaten up when the

584
00:28:56,720 --> 00:28:59,080
Speaker 3: rest of the market, in the socks at least, have

585
00:28:59,120 --> 00:29:01,400
Speaker 3: gone up into the we've been worrying about competition.

586
00:29:02,160 --> 00:29:04,680
Speaker 15: Yeah, truly interesting is if you look at the socks,

587
00:29:04,760 --> 00:29:07,760
Speaker 15: it's up I think about sixty percent since late March. However,

588
00:29:07,840 --> 00:29:10,840
Speaker 15: in Vidia, the biggest company really in the world, certainly

589
00:29:10,880 --> 00:29:14,479
Speaker 15: the biggest semiconductor company, really hasn't been participating in that

590
00:29:14,600 --> 00:29:16,880
Speaker 15: rally to the same degree. And it does seem like

591
00:29:16,920 --> 00:29:20,120
Speaker 15: there is a growing appreciation that a couple of years

592
00:29:20,160 --> 00:29:23,480
Speaker 15: ago it basically had a monopoly on AI chips. Now

593
00:29:23,520 --> 00:29:26,640
Speaker 15: we are seeing more and more people come into this market,

594
00:29:26,640 --> 00:29:31,000
Speaker 15: including some of Nvidia's biggest customers. So Alphabet last week

595
00:29:31,040 --> 00:29:33,280
Speaker 15: talked about how it's going to start selling its TPU

596
00:29:33,440 --> 00:29:38,560
Speaker 15: chips to other clouds. Those are specifically designed for AI applications,

597
00:29:38,600 --> 00:29:40,640
Speaker 15: so there is a lot of demand for them. People

598
00:29:40,680 --> 00:29:43,520
Speaker 15: even view them as superior to in Nvidia products in

599
00:29:43,920 --> 00:29:47,560
Speaker 15: certain use cases. Amazon has its own chip, Meta is

600
00:29:47,600 --> 00:29:50,320
Speaker 15: developing its own chip. Microsoft is These are all of

601
00:29:50,440 --> 00:29:53,120
Speaker 15: Nvidia's biggest customers. So while it is dealing with competition

602
00:29:53,200 --> 00:29:57,080
Speaker 15: from the likes of AMD, Intel, Qualcom, all these sort

603
00:29:57,080 --> 00:30:00,440
Speaker 15: of traditional chip makers, it is also seeing more aggressive

604
00:30:00,480 --> 00:30:03,360
Speaker 15: moves into the space from its biggest customers. Like I said,

605
00:30:03,400 --> 00:30:06,600
Speaker 15: Alphabet probably being the most notable one. Certainly people are

606
00:30:06,600 --> 00:30:11,000
Speaker 15: starting to wonder what does this mean for Nvidia's growth, margins, pricing, power,

607
00:30:11,200 --> 00:30:13,720
Speaker 15: market share, all of that if we start to see

608
00:30:13,760 --> 00:30:16,560
Speaker 15: some of its biggest customers looking to reduce their reliance

609
00:30:16,640 --> 00:30:17,240
Speaker 15: on Nvidia.

610
00:30:17,840 --> 00:30:18,960
Speaker 2: Most ran Laselca.

611
00:30:19,200 --> 00:30:20,760
Speaker 3: We thank you very much for the round up on

612
00:30:20,880 --> 00:30:24,360
Speaker 3: chips and let's stick with chips. The semiconductor market is

613
00:30:24,400 --> 00:30:27,320
Speaker 3: on track to hit one trillion dollars, but global tensions

614
00:30:27,440 --> 00:30:30,400
Speaker 3: rising demand of forcing the chip supply chain to adapt.

615
00:30:30,640 --> 00:30:33,040
Speaker 3: That's the focus of this week's episode of Bloomberg Primer,

616
00:30:33,280 --> 00:30:34,200
Speaker 3: Take a look.

617
00:30:35,280 --> 00:30:37,080
Speaker 2: AI is booming.

618
00:30:37,800 --> 00:30:40,520
Speaker 3: AI chips accounted for more than one quarter of all

619
00:30:40,600 --> 00:30:43,520
Speaker 3: chips sold in twenty twenty five. That figure is expected

620
00:30:43,520 --> 00:30:46,960
Speaker 3: to reach more than half by twenty twenty nine. Chip

621
00:30:47,000 --> 00:30:50,080
Speaker 3: demand is no longer dictated by which new iPhone or

622
00:30:50,200 --> 00:30:52,160
Speaker 3: PC will have customers lining up.

623
00:30:52,800 --> 00:30:55,920
Speaker 16: What has changed over the years in the semiconductor industry

624
00:30:56,320 --> 00:30:58,960
Speaker 16: is since we're seeing such a surge in the need

625
00:30:59,200 --> 00:31:03,480
Speaker 16: to build data centers for AI deployment and applications, we're

626
00:31:03,520 --> 00:31:07,160
Speaker 16: seeing a more sustained growth period in semiconductors as opposed

627
00:31:07,440 --> 00:31:10,360
Speaker 16: to the old fashioned sickle call when we used to

628
00:31:10,400 --> 00:31:12,400
Speaker 16: have Intel come out with chips that everybody had to

629
00:31:12,440 --> 00:31:13,360
Speaker 16: upgrade their computer for.

630
00:31:14,200 --> 00:31:17,760
Speaker 3: Spending on AI infrastructure like data centers is projected to

631
00:31:17,800 --> 00:31:20,040
Speaker 3: soon cross the one trillion dollar mark.

632
00:31:20,440 --> 00:31:22,200
Speaker 2: So the demand for these chips is there.

633
00:31:23,120 --> 00:31:28,840
Speaker 3: There's just one maybe not so nanoscopic problem. How concentrated

634
00:31:29,160 --> 00:31:33,760
Speaker 3: is too concentrated for this supply chain. Here more from

635
00:31:33,800 --> 00:31:36,640
Speaker 3: the team at Bloomberg Originals on today's episode of Primer.

636
00:31:36,840 --> 00:31:41,040
Speaker 3: That's Tonight Bloomberg six pm ET or on Bloomberg Originals

637
00:31:41,080 --> 00:31:45,200
Speaker 3: at eight pm New York time. Now, sticking with chips,

638
00:31:45,280 --> 00:31:48,160
Speaker 3: let's take a look at today's big number, fifty five

639
00:31:48,160 --> 00:31:51,640
Speaker 3: billion dollars. That is how much SpaceX is estimating elomusks

640
00:31:51,720 --> 00:31:55,280
Speaker 3: Terrafab chip factory will cost to build along with Tesla's

641
00:31:55,280 --> 00:31:57,720
Speaker 3: according to a public notice which shows the estimated total

642
00:31:57,760 --> 00:31:59,959
Speaker 3: capital investment could actually write to one hundred and nineteen

643
00:32:00,040 --> 00:32:03,120
Speaker 3: billion and the additional phases of the project are completed.

644
00:32:04,200 --> 00:32:08,080
Speaker 3: Coming up, Apple going to let users choose their own

645
00:32:08,120 --> 00:32:10,760
Speaker 3: AI models across iOS twenty seven. More on that next,

646
00:32:11,160 --> 00:32:20,360
Speaker 3: As Broomberg tech cool and I was trying to turn

647
00:32:20,400 --> 00:32:24,080
Speaker 3: its devices into a comprehensive AI platform with the iOS

648
00:32:24,120 --> 00:32:26,600
Speaker 3: twenty seven, this full users will be able to choose

649
00:32:26,600 --> 00:32:29,960
Speaker 3: from multiple outside AI models like Google's Gemini or own products.

650
00:32:30,000 --> 00:32:33,640
Speaker 3: Claude Bloomberg, Mark German is here with us, and Mark

651
00:32:34,120 --> 00:32:37,360
Speaker 3: is it trying to be agnostic here in some way?

652
00:32:37,440 --> 00:32:38,960
Speaker 4: In some way it's trying to be agnostic.

653
00:32:39,000 --> 00:32:42,480
Speaker 17: But what it's really trying to do is understand where

654
00:32:42,480 --> 00:32:45,640
Speaker 17: it's at in artificial intelligence. And if you look at Siri,

655
00:32:45,680 --> 00:32:48,640
Speaker 17: you look at the Apple intelligence capabilities, there are nowhere

656
00:32:48,720 --> 00:32:51,760
Speaker 17: up to par what you're seeing on Android. What you're

657
00:32:51,760 --> 00:32:55,160
Speaker 17: seeing from competing devices, what you're seeing from CHADGBT, Claude,

658
00:32:55,200 --> 00:32:57,520
Speaker 17: you name it, so they recognize that. So the name

659
00:32:57,520 --> 00:33:01,280
Speaker 17: of the game is making the default offerings, right, Siri,

660
00:33:01,560 --> 00:33:05,600
Speaker 17: Apple Intelligence competent and good enough. Right in the same

661
00:33:05,640 --> 00:33:08,200
Speaker 17: way that the built in apps on an iPhone are

662
00:33:08,320 --> 00:33:10,240
Speaker 17: competent and good enough. But then you have an app

663
00:33:10,240 --> 00:33:12,680
Speaker 17: store where you can outfit your iPhone with a bunch

664
00:33:12,680 --> 00:33:15,680
Speaker 17: of apps that many people consider superior. But you're still

665
00:33:15,760 --> 00:33:18,800
Speaker 17: using an iPhone, and you're still driving services revenue to Apple,

666
00:33:19,000 --> 00:33:21,320
Speaker 17: and obviously the harder revenue because they're buying you're buying

667
00:33:21,320 --> 00:33:23,680
Speaker 17: their products, and so in the same way, they want

668
00:33:23,680 --> 00:33:26,800
Speaker 17: to make the AI stuff good enough, but also offer

669
00:33:26,920 --> 00:33:30,440
Speaker 17: customers the ability to put their own choice of AI

670
00:33:30,520 --> 00:33:33,440
Speaker 17: models on top of features or to power certain features.

671
00:33:33,640 --> 00:33:35,800
Speaker 17: So you're still using an iPhone, and maybe you're even

672
00:33:35,800 --> 00:33:38,800
Speaker 17: making them more money by subscribing to different AI services

673
00:33:38,800 --> 00:33:41,880
Speaker 17: like chat GPT or Geminii their platform, which they'll get

674
00:33:41,880 --> 00:33:43,000
Speaker 17: a cut of through the app store.

675
00:33:43,360 --> 00:33:45,800
Speaker 2: So at the moment mark you can interact with chat GPT.

676
00:33:46,280 --> 00:33:49,880
Speaker 3: That sort of got the first in with Apple across

677
00:33:49,920 --> 00:33:52,200
Speaker 3: some of its functionality, but when it comes to sery.

678
00:33:52,240 --> 00:33:54,800
Speaker 3: We understand that it's alphabets technology that they're sort of

679
00:33:54,800 --> 00:33:55,480
Speaker 3: turning towards.

680
00:33:55,560 --> 00:33:57,480
Speaker 2: Where are we going to see and feel it differently?

681
00:33:58,640 --> 00:34:00,560
Speaker 4: So there's a couple of things going on here, right.

682
00:34:00,600 --> 00:34:04,640
Speaker 17: So Apple Intelligence when it first launched in twenty twenty four, Siri,

683
00:34:04,720 --> 00:34:07,040
Speaker 17: that was based on Apple models, but there was what's

684
00:34:07,080 --> 00:34:09,960
Speaker 17: called an extension to be able to tap into chat GPT.

685
00:34:10,880 --> 00:34:15,000
Speaker 17: Now Apple's rebuilding Siri, so it's in house Siri using

686
00:34:15,040 --> 00:34:18,719
Speaker 17: Google Gemini models, but that doesn't have Google Gemini functionality.

687
00:34:19,000 --> 00:34:22,480
Speaker 17: It's basically like they hired the engineers from Google to

688
00:34:22,719 --> 00:34:25,680
Speaker 17: fix Siri because you know, obviously they're doing a better

689
00:34:25,760 --> 00:34:29,520
Speaker 17: job building their models. But now in addition to chad GPT,

690
00:34:29,680 --> 00:34:32,960
Speaker 17: you'll be able to tap into outside AI sovices, Gemini

691
00:34:33,040 --> 00:34:35,840
Speaker 17: being one, Claude being another. And we'll see if they

692
00:34:35,920 --> 00:34:39,480
Speaker 17: end up allowing meta Alexa.

693
00:34:38,280 --> 00:34:39,040
Speaker 4: And you name it.

694
00:34:39,080 --> 00:34:40,959
Speaker 17: In terms of when this is all coming, So they'll

695
00:34:40,960 --> 00:34:44,719
Speaker 17: introduce these new features as well as the Revampseiri in

696
00:34:44,840 --> 00:34:48,400
Speaker 17: June on the eighth at WWBC, and they'll roll it

697
00:34:48,440 --> 00:34:50,680
Speaker 17: out in September, and I think if it rolls out

698
00:34:50,719 --> 00:34:54,360
Speaker 17: any later than that, another disaster on their hands.

699
00:34:54,400 --> 00:34:56,000
Speaker 4: But I think this is going to happen this time.

700
00:34:56,239 --> 00:34:57,200
Speaker 2: Is this going to be enough?

701
00:34:57,520 --> 00:35:01,120
Speaker 3: Is this Apple being In the longer term, I'm making

702
00:35:01,120 --> 00:35:03,120
Speaker 3: the decision that they are just going to outsource this.

703
00:35:04,480 --> 00:35:06,240
Speaker 4: Well, let's start with the short term.

704
00:35:06,800 --> 00:35:09,319
Speaker 17: In the short term, if you're a customer, if you

705
00:35:09,400 --> 00:35:10,840
Speaker 17: really can't ask for more.

706
00:35:10,760 --> 00:35:13,680
Speaker 4: Other than to have access and have optionality to have anything.

707
00:35:14,040 --> 00:35:14,360
Speaker 7: Right.

708
00:35:14,400 --> 00:35:18,680
Speaker 17: As Gemini improves, as Cloud improves, chat youpt improves, you're

709
00:35:18,719 --> 00:35:21,480
Speaker 17: going to get the best stuff on an iPhone. So

710
00:35:21,520 --> 00:35:25,160
Speaker 17: from a customer standpoint, that's great. From a long term standpoint,

711
00:35:25,200 --> 00:35:29,080
Speaker 17: I still think that Apple needs to get improved models.

712
00:35:29,120 --> 00:35:30,839
Speaker 17: They need to be on the frontier of things when

713
00:35:30,880 --> 00:35:33,239
Speaker 17: it comes to AI, because they have all sorts of

714
00:35:33,280 --> 00:35:35,600
Speaker 17: hardware plans in the future, and if you're a hardware

715
00:35:35,640 --> 00:35:38,440
Speaker 17: company like Apple, you don't want to be reliant on

716
00:35:38,560 --> 00:35:42,440
Speaker 17: third parties to power the underlying AI powering those products.

717
00:35:42,480 --> 00:35:44,640
Speaker 17: So in the short term they're going to be great.

718
00:35:45,320 --> 00:35:47,440
Speaker 17: In the long term, they need to get things moving

719
00:35:47,600 --> 00:35:49,799
Speaker 17: in a far better, more competitive direction.

720
00:35:50,320 --> 00:35:54,440
Speaker 3: And we're likely therefore to see more of these announcements coming.

721
00:35:54,520 --> 00:35:57,440
Speaker 3: And you as always set us up for what to

722
00:35:57,480 --> 00:36:00,320
Speaker 3: anticipate with Apple Rumg's Mark gum and in some Frantsisco

723
00:36:00,480 --> 00:36:02,479
Speaker 3: on all things Appleine and integration of AI.

724
00:36:02,920 --> 00:36:04,719
Speaker 2: I'm but used to say. Now though, we can get

725
00:36:04,800 --> 00:36:05,319
Speaker 2: back out to.

726
00:36:05,320 --> 00:36:08,160
Speaker 3: The Milkene conference in California where Bloomberg's Joe Matthew and

727
00:36:08,239 --> 00:36:10,480
Speaker 3: Krol Masser are sitting down with Kathy would have ARC.

728
00:36:10,719 --> 00:36:11,319
Speaker 2: Let's listen in.

729
00:36:12,080 --> 00:36:13,960
Speaker 18: All right, Paul and Scarlet, thank you so much. We

730
00:36:13,960 --> 00:36:18,000
Speaker 18: welcome everybody on Bloomberg Radio, Bloomberg TV, across Bloomberg platforms. Yes, indeed,

731
00:36:18,040 --> 00:36:21,000
Speaker 18: Carol Masser, Joe Matthew here at the milk and Institute

732
00:36:21,000 --> 00:36:22,920
Speaker 18: Global Conference. We have a special guest. And I feel

733
00:36:22,920 --> 00:36:25,560
Speaker 18: like reading in this morning, the headlines were made. It's

734
00:36:25,600 --> 00:36:27,760
Speaker 18: like they knew Kathy was going to join us. Kathy

735
00:36:27,760 --> 00:36:30,440
Speaker 18: would CEO, CIO and of course the founder of ARC invest.

736
00:36:31,040 --> 00:36:33,240
Speaker 11: It's so nice to talk with you again. Thanks, delighted

737
00:36:33,320 --> 00:36:35,640
Speaker 11: to be here. You gave me my big break in

738
00:36:35,680 --> 00:36:36,760
Speaker 11: twenty fifteen.

739
00:36:37,080 --> 00:36:40,319
Speaker 18: I'll never forget that. Well, it's so funny because I

740
00:36:40,360 --> 00:36:43,239
Speaker 18: want to talk to Elon because you kind of put

741
00:36:43,280 --> 00:36:45,480
Speaker 18: him for me on the radar, and I just feel

742
00:36:45,480 --> 00:36:47,520
Speaker 18: like it was a time when so many people questioned

743
00:36:47,880 --> 00:36:50,560
Speaker 18: what he was up to now, everybody is so excited

744
00:36:50,960 --> 00:36:54,960
Speaker 18: about the SpaceX ipo. We see increasingly how he's kind

745
00:36:54,960 --> 00:36:58,200
Speaker 18: of melding his universe together. Tell us about kind of

746
00:36:58,280 --> 00:37:01,280
Speaker 18: that bet. And even today we have that he's building

747
00:37:01,800 --> 00:37:04,440
Speaker 18: a chip factory at least fifty five billion in investment,

748
00:37:04,480 --> 00:37:07,120
Speaker 18: maybe as much as almost one hundred and twenty and

749
00:37:07,160 --> 00:37:10,080
Speaker 18: he's doing this chip factory SpaceX with Tesla. How are

750
00:37:10,120 --> 00:37:12,400
Speaker 18: you looking at Elon right now and what his next

751
00:37:12,480 --> 00:37:13,080
Speaker 18: era is.

752
00:37:13,440 --> 00:37:15,240
Speaker 10: So this is why I founded ARC invest.

753
00:37:15,880 --> 00:37:19,400
Speaker 11: We knew that the seeds that were planted in the

754
00:37:19,480 --> 00:37:23,040
Speaker 11: twenty years that ended in the bubble, they've been germinating

755
00:37:23,760 --> 00:37:27,680
Speaker 11: for twenty twenty five years and now they're flourishing. And

756
00:37:28,320 --> 00:37:32,120
Speaker 11: what we're seeing is fifteen different technologies evolving and they're

757
00:37:32,160 --> 00:37:36,879
Speaker 11: all converging. And Elon, about six months ago, and we've

758
00:37:36,880 --> 00:37:39,120
Speaker 11: been using the word convergence for a long time, he said,

759
00:37:39,560 --> 00:37:43,839
Speaker 11: you know what, I think, my companies are converging more

760
00:37:43,880 --> 00:37:47,600
Speaker 11: than even I understood. And so we're seeing of course

761
00:37:47,640 --> 00:37:54,399
Speaker 11: SpaceX XAI, rumors about Tesla, and really he believes that

762
00:37:54,600 --> 00:37:57,279
Speaker 11: in the new world, or to create the new world,

763
00:37:57,760 --> 00:38:01,359
Speaker 11: a company has to be vertically integrated, and so that's

764
00:38:01,400 --> 00:38:07,360
Speaker 11: what's happening here. He is moving into incredible vertical integration

765
00:38:07,719 --> 00:38:11,480
Speaker 11: as he moves data centers into space.

766
00:38:12,840 --> 00:38:15,520
Speaker 18: Is it all about our Bloomberg intelligence? George Ferguson cover Space,

767
00:38:15,600 --> 00:38:18,120
Speaker 18: covers Defense, but he said, it's all about Elon controlling

768
00:38:18,160 --> 00:38:20,800
Speaker 18: the supply chain. Kathy, But I do feel like globally

769
00:38:20,920 --> 00:38:24,680
Speaker 18: we're seeing countries companies really thinking about their supply chain.

770
00:38:24,760 --> 00:38:26,520
Speaker 18: Is that part of his strategy?

771
00:38:27,239 --> 00:38:28,719
Speaker 10: Absolutely? Absolutely?

772
00:38:28,760 --> 00:38:34,800
Speaker 11: And also when a company is breaking new ground literally

773
00:38:35,080 --> 00:38:39,879
Speaker 11: in this case, and really inventing something, the supply chain

774
00:38:39,880 --> 00:38:43,680
Speaker 11: doesn't exist very often or not all parts of it exist.

775
00:38:44,520 --> 00:38:49,319
Speaker 11: And I think also as he's discussing where he's going

776
00:38:49,320 --> 00:38:51,840
Speaker 11: and how he's going to do it, he is getting

777
00:38:52,000 --> 00:38:53,200
Speaker 11: the supply chain ready.

778
00:38:53,280 --> 00:38:53,520
Speaker 7: You know.

779
00:38:53,560 --> 00:38:54,920
Speaker 10: He always sets.

780
00:38:54,680 --> 00:38:58,319
Speaker 11: The time frame, you know, much sooner than most people

781
00:38:58,320 --> 00:39:01,840
Speaker 11: would expect. But it's to get his employees and the

782
00:39:01,880 --> 00:39:06,560
Speaker 11: supply chain focused, because when he moves.

783
00:39:06,280 --> 00:39:07,080
Speaker 10: He moves fast.

784
00:39:07,320 --> 00:39:11,680
Speaker 8: You've really helped to define people's perception of Elon Musk

785
00:39:11,880 --> 00:39:16,040
Speaker 8: and the company Tesla largely as one that is not

786
00:39:16,080 --> 00:39:20,279
Speaker 8: about making cars, but one that's about autonomy and robotics.

787
00:39:20,640 --> 00:39:22,960
Speaker 8: When you walk out the Hilton here, different than where

788
00:39:22,960 --> 00:39:26,439
Speaker 8: I live in Washington, DC, driverless weaymos are picking people

789
00:39:26,520 --> 00:39:28,680
Speaker 8: up and driving away with them all day long. The

790
00:39:28,800 --> 00:39:33,000
Speaker 8: mainstreaming of autonomous vehicles is just about here. I'd like

791
00:39:33,040 --> 00:39:36,480
Speaker 8: to know if you see that actually fulfilling itself in

792
00:39:36,520 --> 00:39:38,600
Speaker 8: the next year, and if this is a zero sum

793
00:39:38,640 --> 00:39:43,240
Speaker 8: game or you're going to have Uber, Weimo, Tesla all involved.

794
00:39:43,440 --> 00:39:47,560
Speaker 11: Okay, this is where vertical integration comes back into the conversation.

795
00:39:48,520 --> 00:39:50,480
Speaker 10: In the robotaxi world.

796
00:39:51,160 --> 00:39:56,479
Speaker 11: Tesla's vertically integrated and has created the platform upon which

797
00:39:56,480 --> 00:40:02,360
Speaker 11: others will build their companies. So I credit our team,

798
00:40:02,520 --> 00:40:07,440
Speaker 11: So Tasha, Daniel, Brettwinton. We have been focused on this

799
00:40:07,480 --> 00:40:13,280
Speaker 11: from day one twenty fourteen when I founded ARC and yes, slowly,

800
00:40:13,560 --> 00:40:18,120
Speaker 11: slowly than all at once. So vertical integration for Tesla

801
00:40:18,200 --> 00:40:22,000
Speaker 11: means it will have the lowest cost structure by far.

802
00:40:22,320 --> 00:40:26,120
Speaker 11: Now it's going to use Uber's umbrella here three dollars

803
00:40:26,160 --> 00:40:31,960
Speaker 11: plus per mile, but if our analysis is correct, those

804
00:40:32,080 --> 00:40:36,480
Speaker 11: costs as robotaxis scale are going to drop to twenty

805
00:40:36,520 --> 00:40:37,840
Speaker 11: five cents per mile.

806
00:40:38,239 --> 00:40:38,799
Speaker 10: Think about it.

807
00:40:38,840 --> 00:40:42,320
Speaker 11: The cost of transportation is going to collapse here.

808
00:40:42,760 --> 00:40:45,240
Speaker 10: And no one Waimo's cost structure.

809
00:40:46,160 --> 00:40:49,640
Speaker 11: According to our estimates in twenty thirty will be fifty

810
00:40:49,680 --> 00:40:54,800
Speaker 11: percent higher than Tesla's because they're dependent on other auto

811
00:40:54,880 --> 00:40:59,279
Speaker 11: manufacturers and others in the supply chain that Tesla is not.

812
00:41:00,000 --> 00:41:02,480
Speaker 18: How are you thinking about the SpaceX IPO, Kathy? Do

813
00:41:02,520 --> 00:41:06,200
Speaker 18: you anticipate there's so much enthusiasm going into it, massive size,

814
00:41:06,280 --> 00:41:09,240
Speaker 18: massive interest. But do you think there'll be a drop

815
00:41:09,280 --> 00:41:12,680
Speaker 18: off initially after you know, once it makes its public

816
00:41:12,719 --> 00:41:17,440
Speaker 18: debut and then ultimately kind of play out like Tesla

817
00:41:17,480 --> 00:41:19,560
Speaker 18: did that eventually it goes up again, Like how do

818
00:41:19,600 --> 00:41:20,719
Speaker 18: you see the trajectory?

819
00:41:20,920 --> 00:41:21,160
Speaker 10: Right?

820
00:41:21,239 --> 00:41:24,399
Speaker 11: So this is only at least what we know so far,

821
00:41:25,440 --> 00:41:29,719
Speaker 11: seventy five billion dollars. There is so much demand out there.

822
00:41:29,760 --> 00:41:34,120
Speaker 11: We have in our venture fund, so ARKVX SpaceX is

823
00:41:34,160 --> 00:41:38,600
Speaker 11: the largest position. And because we're direct to consumer when

824
00:41:38,600 --> 00:41:41,839
Speaker 11: it comes to venture, although the fund has scaled north

825
00:41:41,880 --> 00:41:46,439
Speaker 11: of eight hundred and fifty million, investors had to look

826
00:41:46,480 --> 00:41:48,160
Speaker 11: for us and how did they find us? They were

827
00:41:48,200 --> 00:41:52,640
Speaker 11: looking for SpaceX. So the demand is voracious out there.

828
00:41:53,320 --> 00:41:58,400
Speaker 11: Only seventy five billion. Yes, it's a big IPO, but

829
00:41:59,080 --> 00:42:05,239
Speaker 11: just think about how SpaceX has reawakened the dream of

830
00:42:05,320 --> 00:42:09,759
Speaker 11: space exploration. This has captured the imagination not just of

831
00:42:09,800 --> 00:42:12,440
Speaker 11: investors but really everyone.

832
00:42:12,840 --> 00:42:14,520
Speaker 18: So does that mean you don't think it'll fly? You

833
00:42:14,520 --> 00:42:16,920
Speaker 18: think the animal will continue? Do you think there will

834
00:42:16,920 --> 00:42:17,600
Speaker 18: be some settling it.

835
00:42:17,640 --> 00:42:20,440
Speaker 11: I think there'll be supply demand imbalance in the beginning.

836
00:42:21,040 --> 00:42:25,080
Speaker 11: You'll see that pop. It will be volatile, I would imagine,

837
00:42:25,520 --> 00:42:30,840
Speaker 11: But we hope to serve in terms of providing our research.

838
00:42:30,920 --> 00:42:33,839
Speaker 11: We've already got a SpaceX model out there on our

839
00:42:33,920 --> 00:42:37,440
Speaker 11: site art dash invest dot com. We have not added

840
00:42:37,760 --> 00:42:43,040
Speaker 11: data centers orbital data centers in however, our preliminary work

841
00:42:43,600 --> 00:42:48,680
Speaker 11: suggests that that part of the business could take relative

842
00:42:48,719 --> 00:42:52,480
Speaker 11: to our existing model, could take Tesla from a revenue

843
00:42:52,560 --> 00:42:56,760
Speaker 11: generation point of view, orders of magnitude higher, ten twenty

844
00:42:56,880 --> 00:42:57,480
Speaker 11: times higher.

845
00:42:57,800 --> 00:43:00,360
Speaker 18: I'm so glad you went there. Data centers and space,

846
00:43:00,400 --> 00:43:02,080
Speaker 18: and I mentioned before we got going it came up

847
00:43:02,080 --> 00:43:04,040
Speaker 18: on a real estate panel where so many of the

848
00:43:04,080 --> 00:43:07,680
Speaker 18: real estate investors, even like related companies, has switched their

849
00:43:07,680 --> 00:43:10,280
Speaker 18: focus to data centers. But we brought up data centers

850
00:43:10,280 --> 00:43:12,799
Speaker 18: in space. What does that mean though? Then, for all

851
00:43:12,840 --> 00:43:15,640
Speaker 18: of the data center build out and money that is

852
00:43:15,640 --> 00:43:19,200
Speaker 18: happening here on Earth, does that mean a lot of

853
00:43:19,200 --> 00:43:20,960
Speaker 18: that goes away? There's a little bit of a bubble,

854
00:43:21,000 --> 00:43:23,279
Speaker 18: like how do we reconcile.

855
00:43:22,800 --> 00:43:26,960
Speaker 11: That we think And this is the important judgment call.

856
00:43:27,280 --> 00:43:30,120
Speaker 11: Is this hype? Is this nineteen ninety nine? I can

857
00:43:30,160 --> 00:43:33,520
Speaker 11: tell you unequivocally it is not. As I mentioned, the

858
00:43:33,560 --> 00:43:37,600
Speaker 11: seeds were planted. Then now we're ready, and we think

859
00:43:37,760 --> 00:43:42,120
Speaker 11: this technology revolution is going to dwarf the industrial revolution

860
00:43:42,719 --> 00:43:47,879
Speaker 11: by far. So I think that we'll need the orbit

861
00:43:47,880 --> 00:43:51,560
Speaker 11: bild data centers. And of course Elon is informed by

862
00:43:51,640 --> 00:43:57,200
Speaker 11: his experience in Memphis, Tennessee and now Mississippi. Memphis became

863
00:43:57,320 --> 00:44:06,680
Speaker 11: not in my backyard, You're increasing my tricity prices and you're.

864
00:44:04,280 --> 00:44:05,160
Speaker 10: Ruining our land.

865
00:44:06,160 --> 00:44:09,560
Speaker 11: So he's basically saying, I'm not going to have to

866
00:44:09,560 --> 00:44:12,720
Speaker 11: worry about not in my backyard in space.

867
00:44:13,000 --> 00:44:14,480
Speaker 18: But does it make a bubble of the stuff on?

868
00:44:14,600 --> 00:44:16,319
Speaker 11: We don't think so. I don't think so. We think

869
00:44:16,360 --> 00:44:18,160
Speaker 11: we're going we need all of it.

870
00:44:18,280 --> 00:44:20,040
Speaker 18: Yep, Sorry, I know I'm dominating.

871
00:44:20,080 --> 00:44:22,799
Speaker 4: I mean you guys should walk away with this.

872
00:44:23,239 --> 00:44:26,640
Speaker 8: Go to ask you about something that took place today.

873
00:44:26,640 --> 00:44:29,239
Speaker 8: You woke up and saw your third largest holding just

874
00:44:29,280 --> 00:44:32,560
Speaker 8: go through the roof in AMD another blow the doors

875
00:44:32,560 --> 00:44:36,480
Speaker 8: off quarter and it's really creating this question now about

876
00:44:36,640 --> 00:44:38,360
Speaker 8: whether we should be paying a lot more attention the

877
00:44:38,360 --> 00:44:42,799
Speaker 8: market is to CPUs after GPUs went crazy. We're looking

878
00:44:42,800 --> 00:44:45,959
Speaker 8: at people take money out of Nvidia now and chase

879
00:44:46,000 --> 00:44:48,239
Speaker 8: stocks like A M D. Do we need both or

880
00:44:48,280 --> 00:44:49,439
Speaker 8: is that where you're looking?

881
00:44:49,640 --> 00:44:51,200
Speaker 10: We think we need both.

882
00:44:51,840 --> 00:44:54,839
Speaker 11: I do think there is more competition. We want it,

883
00:44:55,080 --> 00:44:59,359
Speaker 11: we need it. But it was interesting Sarah Fryar at

884
00:44:59,360 --> 00:45:01,480
Speaker 11: open A. I'm going to give her a shout out

885
00:45:01,520 --> 00:45:05,240
Speaker 11: because I heard her speak and she she was saying,

886
00:45:05,320 --> 00:45:08,520
Speaker 11: you know, people are chasing GPUs. They're they're going to

887
00:45:08,560 --> 00:45:13,520
Speaker 11: be really shocked at how Agent k Ai activates CPUs

888
00:45:14,560 --> 00:45:20,279
Speaker 11: and infernt generally activate CPUs. Yesterday, Lisa Sue provided a

889
00:45:20,400 --> 00:45:24,400
Speaker 11: stat we had never heard before. Right now, for every

890
00:45:25,760 --> 00:45:30,560
Speaker 11: for every CPU, there are four to five GPUs when

891
00:45:30,600 --> 00:45:34,880
Speaker 11: it comes to enabling AI. Lisa thinks it's going to

892
00:45:34,920 --> 00:45:37,879
Speaker 11: go one to one in the future. I think that

893
00:45:38,000 --> 00:45:41,359
Speaker 11: has been the sleeper and you see Intel has taken off.

894
00:45:41,600 --> 00:45:44,160
Speaker 10: In fact, we're seeing a lot of stocks that were

895
00:45:44,600 --> 00:45:44,879
Speaker 10: you know.

896
00:45:44,840 --> 00:45:47,279
Speaker 11: They were very big in the bubble. And I just

897
00:45:47,320 --> 00:45:49,600
Speaker 11: said to our team today, I said, what's going on.

898
00:45:49,719 --> 00:45:52,960
Speaker 11: We're going back to the future. You know Intel resurrecting

899
00:45:53,520 --> 00:45:55,560
Speaker 11: Yes and Flextronics is.

900
00:45:55,600 --> 00:46:00,720
Speaker 10: Now called flex boom. So I think we need.

901
00:46:00,560 --> 00:46:03,239
Speaker 8: It all not to mention data storage, which has been

902
00:46:03,280 --> 00:46:08,320
Speaker 8: one of the most remarkable examples of a shortage creating

903
00:46:08,320 --> 00:46:09,240
Speaker 8: a monster rally.

904
00:46:09,280 --> 00:46:10,280
Speaker 10: So you need these.

905
00:46:10,120 --> 00:46:13,120
Speaker 8: Old fashioned chips Yes to get to this new fashion AI.

906
00:46:13,280 --> 00:46:14,200
Speaker 10: All hands on deck.

907
00:46:14,600 --> 00:46:16,160
Speaker 18: We want to ask you about a story that came

908
00:46:16,160 --> 00:46:19,319
Speaker 18: out Google Microsoft to give US agency early access to

909
00:46:19,360 --> 00:46:22,400
Speaker 18: AI models. So basically the White House vetting AI models

910
00:46:22,640 --> 00:46:23,359
Speaker 18: this good are bad?

911
00:46:23,719 --> 00:46:30,439
Speaker 11: And knowing this administration and David sachs our ais are.

912
00:46:31,960 --> 00:46:34,839
Speaker 11: I don't think we're talking about heavy regulation here. We

913
00:46:34,920 --> 00:46:39,440
Speaker 11: might be talking more about national security. National security we

914
00:46:39,520 --> 00:46:44,319
Speaker 11: heard this with Metho's. You know, software that has not

915
00:46:44,800 --> 00:46:48,440
Speaker 11: has been a place for sixty years and never been penetrated.

916
00:46:49,719 --> 00:46:53,399
Speaker 11: AI can find these vulnerabilities. So they're probably trying to

917
00:46:53,440 --> 00:46:56,960
Speaker 11: tighten up a lot of what we do out there

918
00:46:57,040 --> 00:46:59,600
Speaker 11: and make sure that our industries are safe.

919
00:47:00,080 --> 00:47:02,239
Speaker 8: Bring a political implication though, to what may or may

920
00:47:02,239 --> 00:47:04,440
Speaker 8: not be available to people if the White House is

921
00:47:04,520 --> 00:47:06,160
Speaker 8: choosing which platform we ought to use.

922
00:47:06,280 --> 00:47:09,239
Speaker 11: Now you know what's interesting, and this is taking a

923
00:47:09,320 --> 00:47:13,120
Speaker 11: leaf from Open AI in its early days GPT, you

924
00:47:13,160 --> 00:47:16,439
Speaker 11: are saying, we don't think we can release this, this

925
00:47:16,480 --> 00:47:20,319
Speaker 11: is too powerful. Is great marketing. It's true that it's

926
00:47:20,480 --> 00:47:23,799
Speaker 11: very powerful, but it's also great marketing. A lot of

927
00:47:23,840 --> 00:47:29,000
Speaker 11: the people at Anthropic came from Open Ai, so while

928
00:47:29,000 --> 00:47:33,120
Speaker 11: they're blazing trails, no question about it, and they're leapfrogging

929
00:47:33,160 --> 00:47:36,560
Speaker 11: one another, which is great. Competition is great for US here,

930
00:47:36,880 --> 00:47:39,480
Speaker 11: including competition from China.

931
00:47:40,000 --> 00:47:44,719
Speaker 10: I think that you know we're on our way.

932
00:47:45,120 --> 00:47:48,560
Speaker 18: I want to ask you about stable coins tether and

933
00:47:48,920 --> 00:47:51,080
Speaker 18: their potential. Do you think it has a chance to

934
00:47:51,160 --> 00:47:53,760
Speaker 18: become big in the US under the Genius Act? And

935
00:47:53,800 --> 00:47:55,920
Speaker 18: you've also invested in Circle, are you looking at other

936
00:47:56,000 --> 00:47:59,120
Speaker 18: stable coin related players beyond that? Crypto Bild tell me

937
00:47:59,520 --> 00:48:01,160
Speaker 18: there's a lot going on right now.

938
00:48:01,160 --> 00:48:02,120
Speaker 10: It is a lot going on.

939
00:48:02,160 --> 00:48:04,000
Speaker 18: It's a big meeting at mor Lago. Like I know

940
00:48:04,200 --> 00:48:05,160
Speaker 18: a lot of crypto folks.

941
00:48:05,160 --> 00:48:08,520
Speaker 11: They tell us well, and you know, in the last election,

942
00:48:08,920 --> 00:48:14,520
Speaker 11: I do think the crypto community was very was part

943
00:48:14,560 --> 00:48:18,680
Speaker 11: of the swing factor because they knew deregulation would take

944
00:48:18,719 --> 00:48:23,919
Speaker 11: place under this administration. That's absolutely true. So yes, we're

945
00:48:23,920 --> 00:48:29,960
Speaker 11: seeing the deregulation. You know, is this is creating a

946
00:48:30,000 --> 00:48:33,800
Speaker 11: new financial world order. Many people think the dollars should

947
00:48:33,840 --> 00:48:37,200
Speaker 11: be going down because of our deficit and debt and

948
00:48:37,239 --> 00:48:37,680
Speaker 11: all of that.

949
00:48:38,080 --> 00:48:40,600
Speaker 10: And what we're seeing here in the United States is.

950
00:48:40,560 --> 00:48:46,920
Speaker 11: Deregulation, tax cuts, and a very business friendly, very business

951
00:48:46,960 --> 00:48:50,800
Speaker 11: friendly administration. We think the return on invested capital is

952
00:48:50,840 --> 00:48:53,600
Speaker 11: going to go up in the US generally, and we

953
00:48:53,680 --> 00:48:56,840
Speaker 11: think that the crypto revolution we were at risk of

954
00:48:56,920 --> 00:49:00,920
Speaker 11: losing it. Yeah, and yes, we do think USAT has

955
00:49:00,960 --> 00:49:01,760
Speaker 11: a shot.

956
00:49:02,120 --> 00:49:05,000
Speaker 18: You do, Yes, all right, I'm not gonna have like

957
00:49:05,160 --> 00:49:08,759
Speaker 18: IM just a million more questions. Who's doing Kathy, thank

958
00:49:08,800 --> 00:49:10,240
Speaker 18: you so much, really.

959
00:49:10,080 --> 00:49:12,680
Speaker 10: Appreciate it, and thank you really so much.

960
00:49:12,640 --> 00:49:14,800
Speaker 18: Really appreciate it. Kathy would of course, she's the CEO,

961
00:49:15,239 --> 00:49:18,240
Speaker 18: CIO and of course founder of arc in Vest. Someone

962
00:49:18,320 --> 00:49:20,560
Speaker 18: like I said, it was ten years ago, yes, that

963
00:49:20,640 --> 00:49:24,040
Speaker 18: we first started talking, yes about Elon Musk's so really

964
00:49:24,040 --> 00:49:26,200
Speaker 18: tremendous to catch up with her again. And I feel

965
00:49:26,200 --> 00:49:28,040
Speaker 18: like we we didn't even talk about alphabet, which I

966
00:49:28,080 --> 00:49:30,279
Speaker 18: know was a great call for you before earning.

967
00:49:30,040 --> 00:49:30,680
Speaker 8: Before earning.

968
00:49:30,920 --> 00:49:31,759
Speaker 4: Yeah, believable