Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Vla low in sentrances go.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: AI enthusiasm is back as AMD rallies on a blockbuster
Speaker 3: Forcus and nvidiaoting's a deal with fiber maker Corning. Plus,
Speaker 3: Disney posts stronger results than expected thanks to improve profitability
Speaker 3: and its streaming business, and we speak with Uber's CFO
Speaker 3: as the right hailing platform posts a second quarter outlook
Speaker 3: that also beat expectations.
Speaker 2: First, we return to these markets that are risk on look.
Speaker 3: A lot of that has to do with geopolitics. There
Speaker 3: is hope of a de escalation between Iran and the
Speaker 3: United States. Could it's a deal be getting closer. The
Speaker 3: market trades on that. Stocks rise higher, and indeed bon
Speaker 3: yields pull back. We see a move in the dollar
Speaker 3: two Oil on the down side means we're at one
Speaker 3: point four percent on.
Speaker 2: The nasat one hundred.
Speaker 3: But there's a whole host of other news as to
Speaker 3: why technology stocks are on top, and.
Speaker 2: It comes from earnings and AI ambitions.
Speaker 3: We've got AMD pumping up fifteen percent once again taking
Speaker 3: the breath away from investors that not only are we
Speaker 3: seeing GPU traction, but CPU is seemingly on fire, despite
Speaker 3: of course also concerns about memory. We're still seeing growth
Speaker 3: in that trajectory. And in Nvidia up four percent, managing
Speaker 3: to play a bit of catch up after it's sold
Speaker 3: off for the last few days.
Speaker 2: But that's as they could do with Corning.
Speaker 3: They could be buying up to five hundred million dollars
Speaker 3: worth of shares and it's all about optical fibers. That's
Speaker 3: all about the AI data center too. So as TALKI
Speaker 3: infrastructure with a man who's been doing it for years
Speaker 3: in Kings with us in first AMD Lisa Sou managing
Speaker 3: to show that the total addressable from a market for
Speaker 3: CPU in particular really on fire as well as GPUs.
Speaker 4: Yeah, now you're exactly right.
Speaker 5: They put out earnings that were sort of pretty good,
Speaker 5: not as maybe exciting as some had hoped and learn.
Speaker 5: On the conference call, she gave a very bullish projection
Speaker 5: for the CPU, which is one of their core parts,
Speaker 5: part that's kind of been neglected in this AI race,
Speaker 5: and said, look, things are really strong there and guess
Speaker 5: what in this current quarter things are going to be
Speaker 5: up seventy percent for that particular business, and that was
Speaker 5: affirmation of what a lot of other companies have said.
Speaker 3: Wow, I mean, how is she navigating some of the
Speaker 3: issues that we've seen from a supply chain perspective, some
Speaker 3: of the memory issue that of course hits the PC
Speaker 3: side of the business.
Speaker 5: Yeah, I mean she got a lot of questions on
Speaker 5: the conference call exactly on that point, as you would imagine,
Speaker 5: and her answer was like, look, we've seen this coming,
Speaker 5: We've been working really hard. Guess what if you're a
Speaker 5: memberships player, you want to be selling this extremely expensive
Speaker 5: memory to me and to data center. So don't worry,
Speaker 5: we can meet our forecast, was what she was essentially
Speaker 5: assuring people.
Speaker 3: Now, AMD managed to pay off and we are seeing
Speaker 3: them ramp up sales. But when you compare like an
Speaker 3: eleven billion dollar guidance for the Core to coming compared
Speaker 3: to well seventy billion dollars we expect from the like
Speaker 3: sort of an Nvidia, it's still a second versus the giant,
Speaker 3: and the giant making news to day in what did
Speaker 3: you think about the deal with coreing Corning And once
Speaker 3: again is this cirt killar financing in some way or
Speaker 3: just making sure that AI infrastructure can get built.
Speaker 5: I think Jensen would explain it as you did at
Speaker 5: the Milk and conference this week, is like, look, we
Speaker 5: are going to go out. We're going to use our
Speaker 5: money to remove or to do our best to remove
Speaker 5: any possible bottle neck that's out there. And fiber is
Speaker 5: a big potential bottle neck going forward. Speed of light
Speaker 5: is as fast as you can transmit information. Traditional copper
Speaker 5: is reaching its limits. Guess what we need to make
Speaker 5: sure we have a lot of fiber optic connections out
Speaker 5: there for our forthcoming chips to keep this whole thing going.
Speaker 5: So he's obviously been putting his money to work in
Speaker 5: that kind of company as.
Speaker 3: Well, company based right here in New York State and
Speaker 3: King We so appreciate you out on the West coast
Speaker 3: for us.
Speaker 2: Thank you. Let's speak about more of all of this
Speaker 2: streny perjury is.
Speaker 3: With US Semiconductor and Semi's equipment and this obviously capital
Speaker 3: your latest note, can you highlight how am d strong
Speaker 3: CPU growth doubling of projections is that achievable?
Speaker 2: What could Chow call that?
Speaker 4: Well?
Speaker 6: Right now? The demand is very strong, you know, Agent
Speaker 6: Ki is the primary reason. But overall, AI capex has
Speaker 6: been going up as well. And on top of that,
Speaker 6: we're seeing strong demand on the enterprise you know, server
Speaker 6: side as well. So I think in a part of
Speaker 6: it is AI, part of it is in a traditional
Speaker 6: server demand. Overall demand is very strong, and in addition
Speaker 6: to that, you know, supply has been tight. Uh you know,
Speaker 6: Intel talked about you know, not not having you know,
Speaker 6: enough supply to you know, address the current demand. As
Speaker 6: a result, you know, the visibility is extending, the backlog
Speaker 6: is extending through the year, even into into next year.
Speaker 6: But I think I think there's also the structural you know,
Speaker 6: uh tailwind from you know, you know what we call
Speaker 6: the CPU to GPU ratio. If you look at the
Speaker 6: systems today in AI, typically it's one to four is
Speaker 6: what we see. In some cases one too, but the
Speaker 6: view is that that's going to go to one to one,
Speaker 6: even you know, more than one to one.
Speaker 4: So you know, that will be interesting to see.
Speaker 3: Tiny for our audience talk through that step function. It's
Speaker 3: all about agent KI, It's all about the need for inference, right.
Speaker 6: Yeah. I mean, look in training workloads. You know, historically
Speaker 6: we have seen you know, a CPU to GPU ratio
Speaker 6: of you know, one to four, even in some cases
Speaker 6: one to eight. And as we move to influencing, that
Speaker 6: is changing, primarily because of agentic AI. And of course
Speaker 6: you need to run the models still on you know,
Speaker 6: powerful GPUs, but to manage you know, because users are
Speaker 6: creating so many agents, to manage these agents, and to
Speaker 6: make sure that agents are you know, getting the appropriate
Speaker 6: data and they're talking to you know, other APIs. You know,
Speaker 6: CPUs you know, play a critical role. So we are
Speaker 6: seeing again it's early days. It's it's difficult to draw
Speaker 6: you know, too many conclusions, but the trend is moving
Speaker 6: in the direction of you know, that ratio improving in
Speaker 6: favor of cp you. So you know, our view is
Speaker 6: that at least you know, we have visibility based on
Speaker 6: you know, some of the architectures that we have seen
Speaker 6: from Nvidia and AMD and Google, et cetera. Into twenty
Speaker 6: twenty seven. You know, it's moving in the in the
Speaker 6: direction we think it's going to get to like, you know,
Speaker 6: one to two by end of next year. But whether
Speaker 6: it gets to one to one or even higher than
Speaker 6: one to one, that remains to be seen.
Speaker 3: Can I talk you about talk to you about valuations,
Speaker 3: because when you look at AMD on a one year hr,
Speaker 3: it's extraordinary.
Speaker 2: We're at a new record high.
Speaker 3: We're up three hundred percent over that one year basis,
Speaker 3: we're up sixty more than sixty percent on the year,
Speaker 3: and a new record high of look at six hundred
Speaker 3: billion dollars market cap, that's nothing compared to the four
Speaker 3: trillion of Nvidia. But when you start to get a
Speaker 3: little bit anxious about where the stock trades, well.
Speaker 6: You know, the valuation is rich, right, you know, and videos,
Speaker 6: you know, trading in high teens. When you look at
Speaker 6: calendar twenty seven members and AMD is probably trading close
Speaker 6: to twice the multiple. It is at a premium. But
Speaker 6: as you said, it's a smaller market cap name. You
Speaker 6: could argue maybe it's growing faster because it's smaller in size.
Speaker 6: But you know, for US, I think CPU certainly helps
Speaker 6: the short term, but longer term, if you look at
Speaker 6: the GPU opportunity that's much bigger, I would say GPUs
Speaker 6: probably we're talking including the custom chips, you know, a
Speaker 6: trillion dollar type SAM and the CPU. As Lisa said,
Speaker 6: it's about one hundred and twenty billion. It used to
Speaker 6: be sixty, not too long ago. So I think it's
Speaker 6: essential that AMD make progress on the GPU front. And
Speaker 6: they've announced you know, new customers, you know, Open Ai
Speaker 6: and Meta, and those customers are expected to ramp later
Speaker 6: this year and into next year. So you know, that's
Speaker 6: why we're we're actually sitting on the sidelines right now,
Speaker 6: even though the demand is very strong because of valuation.
Speaker 6: We want to see some evidence that you know, AM
Speaker 6: they can actually gain and compete against Nvidia and gain
Speaker 6: some incremental share as we go into next year.
Speaker 3: So it's about execution for Lisa, Sue talk to us
Speaker 3: a little bit about what we seeing in optical fiber
Speaker 3: exuberance today as well. Corning up fourteen percent in video
Speaker 3: saying look, I want I want to in on your
Speaker 3: shares up to five hundred million dollars worth and the
Speaker 3: right start purchase them. What can Corning bring to AI
Speaker 3: data centers?
Speaker 6: Well, at a high level, you know, AI demand is
Speaker 6: putting pressure on connectivity. You know, you know it's one
Speaker 6: thing to process the data, but you also need to
Speaker 6: move the data at the super fast speeds, and the
Speaker 6: demand has been so strong that you know, all those
Speaker 6: connectivity you know, bottlenecks are emerging and optical plays a
Speaker 6: key role in moving the data not only between you know,
Speaker 6: the servers, but also between data centers. So you know,
Speaker 6: we're seeing, you know, the supply constraints emerge across the board,
Speaker 6: and I think in videos, what EN Video is trying
Speaker 6: to do is make sure that you know, those supply
Speaker 6: constraints are not going to limit their growth and they're
Speaker 6: using their balance sheet strength. And that's one of the
Speaker 6: reasons you know, we like n Video because you know,
Speaker 6: they not only have the best products in the industry,
Speaker 6: but also have the balance sheet strength. I think that
Speaker 6: is a structural like vantage in an environment like this
Speaker 6: where everything is so tight.
Speaker 3: I'll bec analyst Streni perjury. It's really great to have
Speaker 3: your analysis on the show today.
Speaker 2: Thank you very much. Indeed.
Speaker 3: Meanwhile, sticking with all things chips, Germany's Infinian also reporting
Speaker 3: earnings forecasting revenue of around four point eight billion dollars
Speaker 3: for its fiscal third quarter that did beat expectations.
Speaker 2: The company is saying it's benefiting from spending moon on.
Speaker 3: AI infrastructure, where it's power supply solutions for data centers
Speaker 3: and very high demand. But as you see, the stock
Speaker 3: has been under pressure in European trading like twenty twenty six,
Speaker 3: they say on track to grow about ten percent coming up.
Speaker 3: Disney gets a profit boost from some successful sequels, improved
Speaker 3: streaming results, and guests spending at their parks will dig in.
Speaker 2: This has been by tech.
Speaker 3: Check in on shares of Disney having their best day
Speaker 3: in a year, currently up seven percent, the company posting
Speaker 3: stronger than expected results thanks to improve profitability from its
Speaker 3: streaming business and guests they're spending more at the parks.
Speaker 3: Here discuss is Helen and Wang, which is Philip Securities
Speaker 3: research analyst. You were impressed by the numbers and all
Speaker 3: being given by the new CEO.
Speaker 7: Yes, I think it's a pretty solid number of the
Speaker 7: m ros first earnings both revenue and EPs pis estimate
Speaker 7: and they've guided for twelve percent EPs girls for twenty
Speaker 7: twenty six, so that's for the acceleration. So I will
Speaker 7: say it's pretty good start for the new CEO.
Speaker 3: Good start when actually we thought maybe things didn't look
Speaker 3: so pretty when he first took up the reins. There
Speaker 3: was Sora unraveling the deal with open Ai. There was
Speaker 3: concerns with what's happening with Epic Games and their partnership.
Speaker 3: But more broadly, how do you think the consumer is
Speaker 3: feeling right now getting into the park, because we've got
Speaker 3: a lot of micro headwinds.
Speaker 7: Yes, looking at their experience division, they are seeing a
Speaker 7: slight decrease in their US parkeet so that is probably
Speaker 7: something paired from the wall. So fewer for as far
Speaker 7: as are traveling to the US, but we are seeing
Speaker 7: guests spending more at the US parks. So per person
Speaker 7: spending group five percent you're on year, So that means
Speaker 7: people are spending more on the tickets, on the food,
Speaker 7: on the merchandises. They're seeing very strong booking in their
Speaker 7: Disney World. Another factor that's coming is they're seeing the
Speaker 7: cruise ship having higher volume, probably because of the new
Speaker 7: introduction of their Disney Destiny and Disney Adventure that was
Speaker 7: introduced in March twenty twenty six, so that kind of
Speaker 7: gives them a forty percent increase in cruise booking capacity.
Speaker 3: I love how in your notes you really think about
Speaker 3: the flywheel effect, the IP flywheel effect.
Speaker 2: This is how this business makes sense.
Speaker 3: The fact that they've got new frozen experiences coming online.
Speaker 3: They're investing in the IP and the entertainment but also
Speaker 3: in the experience space, are you willing to take down
Speaker 3: more of that investment at the moment because they have
Speaker 3: spent a lot on cruises, they are updating the way
Speaker 3: in which they're serving people at the parks.
Speaker 7: Yes, they're definitely investing very aggressively right now, but I
Speaker 7: see it comes from a point of confidence because they're
Speaker 7: doing so well in their current business, so they're trying
Speaker 7: to expand more in order to lay out more on
Speaker 7: the lanesom Girls Wrongway. So they're coming up with a
Speaker 7: lot of major part expansion globally. They're coming up with
Speaker 7: another new cruise ship in Japan, and they're also coming
Speaker 7: up with a new scene part resulting Abu Dhabi. So
Speaker 7: I guess the war impact is very minimum for them.
Speaker 7: I guess it's a good thing because their unique value
Speaker 7: is rooted in the strong brand, reputation and the flightway effect.
Speaker 3: I think that's a really good point that even though
Speaker 3: we've got conflict geopolitical anxiety in the Middle East, they're
Speaker 3: still going ahead with what's happening in Abadabi. Just one
Speaker 3: area of concern is just the cost of doing business
Speaker 3: when it comes to sports as well.
Speaker 2: Right, ESPN did show that weakness.
Speaker 3: There is that something that you also have to take
Speaker 3: down in terms of investment.
Speaker 2: They need the content, they need to win the rights.
Speaker 7: Yes, ESPN actually the increasing revenue because of the higher
Speaker 7: subscription and affiliate fee due to their NFL transaction, But
Speaker 7: it's definitely they're showing a decreasing operating income because of
Speaker 7: the highest flora and production costs. But I guess everybody
Speaker 7: in the streaming industry right now is trying to increase
Speaker 7: their life sport because it's a large market, it has
Speaker 7: a very loyal fan base that will always be there,
Speaker 7: and everybody wanted the piece of that juicy pie and
Speaker 7: sport where are so expensive right now, especially if you
Speaker 7: want it as skill and Disney they already have the skill,
Speaker 7: so I think even though the cost is a little
Speaker 7: bit high for them, but they do have the advantage
Speaker 7: in that sector.
Speaker 2: Helena, it's great catching up with you.
Speaker 3: Thanks for joining again, Helena Wang of Philip Securities. There
Speaker 3: are all things Disney Now, it's time for talking tech.
Speaker 2: First up, White House economic advice that Kevin.
Speaker 3: Has It says a potential executive order is in the
Speaker 3: works to provide a quote clear roadmap for AI safety.
Speaker 2: Now the directive is taking shape.
Speaker 3: Weeks off, Terranthropic revealed its mythos model that could pose
Speaker 3: a global cybersecurity risk. Plus, Morgan Stanley is rolling out
Speaker 3: cryptocurrency trading on his e trade platform, charging clients at
Speaker 3: just fifty basis points, half the cost of some major
Speaker 3: rivals like Robin Hood. So latest move in a massive
Speaker 3: Wall Street pivot. The biggest banks are no longer just
Speaker 3: watching the crypto space, looking to own it. And Samsung
Speaker 3: has officially entered the trillion dollar club, making the firm
Speaker 3: only the second Asian firm after TSMC, to hit that
Speaker 3: one trillion dollar milestone.
Speaker 8: Now.
Speaker 3: The company's gain also pushed the Cosby Index past seven
Speaker 3: thousand for the first time in history. Coming up, we're
Speaker 3: going to be speaking with the Uber cfo Alargi, Christian
Speaker 3: Murphy as as the Right Haling Platform posts a second
Speaker 3: quarter outlook the beat expectations. We're talking all things AI
Speaker 3: as well as delivery the Supremo Tech.
Speaker 2: Checking in on shares of Uber company.
Speaker 3: Reporting second quarter bookings outlooks the beat expector that we're
Speaker 3: out eight point four percent as break down striving bookings
Speaker 3: growth in particular, you' a CFOs with us Alergi Krishna Murphy, ALERGI,
Speaker 3: talk to me about why we're amid the macro concerns,
Speaker 3: amid maybe a slightly worrying environment with oil prices, for example,
Speaker 3: You're still managing to push forward on bookings on demand.
Speaker 4: Thanks Caroline.
Speaker 9: So I think you know, if you think about our quarter,
Speaker 9: the first thing I'd say is we're incredibly proud of
Speaker 9: the pace with which our teams have been introducing new products,
Speaker 9: and you would have seen just recently we at our
Speaker 9: annual go Get event, we introduced a number of new
Speaker 9: products and features that meet our customers where they want
Speaker 9: to go, whether they're developed internally at uber or through
Speaker 9: our partners like Expedia, we're bringing them best of breed solutions.
Speaker 9: So that's setting us up for incredibly strong top line momentum,
Speaker 9: and we delivered twenty one percent growth in the quarter.
Speaker 9: This is the third successive quarter where we've done that
Speaker 9: kind of a mark for the company, and we are
Speaker 9: also in addition to those product innovations organically in our core,
Speaker 9: we also reported that we were able to scale our
Speaker 9: nascent autonomous vehicles business ten x here on year, which
Speaker 9: is again a really good starting possession for us to
Speaker 9: be at.
Speaker 10: Now.
Speaker 9: We're doing all of this in a very choppy macro environment,
Speaker 9: as you rightly pointed out. I'm happy to talk about
Speaker 9: some of the detracting items there, but what we have
Speaker 9: been doing as we get this growth, we've been focused
Speaker 9: on extremely disciplined operations from a cost management standpoint, and
Speaker 9: we're embracing AI increasingly to drive more efficiency for the company.
Speaker 9: So that's allowing us to report EPs growth of forty
Speaker 9: four percent here on you as well on top of
Speaker 9: that twenty one percent and top line growth, and it's
Speaker 9: setting us up really well for the rest of the year.
Speaker 9: And you see that in our outlook, which I think
Speaker 9: met and exceeded expectations on both top and bottom line.
Speaker 2: Let's take into that Uber Expedia partnership.
Speaker 3: It's only about a week old or so, and I
Speaker 3: can understand that it's sort about adding hotel bookings, Like,
Speaker 3: is this some sort of real uptick to subscriptions? Do
Speaker 3: you think in the longer term, how does it help
Speaker 3: just bring more and more people back to the app
Speaker 3: time and again?
Speaker 9: Yeah, yeah, So I think the important thing to know
Speaker 9: there is we think consumers who engage with our products
Speaker 9: across our portfolio are incredibly valuable to us, and today
Speaker 9: only about twenty percent of our monthly active consumers engage
Speaker 9: across the platform on both mobility and delivery services, but
Speaker 9: when they do, they drive significantly higher growth, bookings profits
Speaker 9: for the company. And underpinning all of that activity for
Speaker 9: US is our Uber one program, right, and we talked
Speaker 9: about getting to about fifty million members as of this quarter.
Speaker 4: We added about twenty million.
Speaker 9: Members the last year alone, and now these members drive
Speaker 9: fifty percent of our gross bookings for the company. When
Speaker 9: you think about a partnership like Experia, what we are
Speaker 9: trying to do is to expand the surface area of
Speaker 9: what we consider cross platform and today's mobility and delivery
Speaker 9: in the core. But hotels are a very adjacent opportunity
Speaker 9: for US, where fifteen percent of our mobility gross bookings
Speaker 9: comes from airport trips, forty percent of our US riders
Speaker 9: take trips outside of their home cities, and then last
Speaker 9: year we did one point five billion trips globally that
Speaker 9: happened in outside users' home cities. So when you bring
Speaker 9: in a program like this, it allows us to bring
Speaker 9: the best prices to our consumers on hotel bookings from
Speaker 9: experience platform, and in addition, we're giving them ten percent
Speaker 9: cash back which is quite incredibly valuable, which they come
Speaker 9: back and spend.
Speaker 11: On our plot.
Speaker 2: Can I talk about the B to B business?
Speaker 3: You want it to become a ten million dollar plus
Speaker 3: business briefly?
Speaker 4: Like?
Speaker 2: What are the growth markets for that?
Speaker 7: Yeah?
Speaker 9: So very exciting trajectory there for us as well. We
Speaker 9: noted that we're at now five billion in gross bookings
Speaker 9: on that business and it's growing forty five percent relative
Speaker 9: to that twenty one percent total that we talked about.
Speaker 9: When you think about our B to B business, it's
Speaker 9: effectively bringing ubers services across both mobility and delivery to
Speaker 9: enterprise grade sort of modality to customers across the enterprise stack.
Speaker 9: When we where we are today, we are at about
Speaker 9: three hundred thousand organizations globally that are using our services
Speaker 9: through this offering, and we do think that over time
Speaker 9: we can service as many as a million organizations globally
Speaker 9: and that would allow us to get to five get
Speaker 9: from five to ten billion dollars there.
Speaker 2: It was CFO Alergy.
Speaker 3: Christian Murphy, thank you very much indeed for joining us
Speaker 3: today on all things earnings. Let's turn our attention to
Speaker 3: energy now, because Microsoft is considering delaying or abandoning is
Speaker 3: ambitious clean energy targets. According to sources, the reason AI
Speaker 3: race and most body four joins us for more on this.
Speaker 3: Just spell out what the targets were for Microsoft, why
Speaker 3: they were so perhaps over and above others in the space.
Speaker 12: Yeah, you remember, there was a point in time where
Speaker 12: we heard big companies talk a whole lot more about
Speaker 12: the climate than they do now.
Speaker 6: Right.
Speaker 12: Microsoft was one of these large tech companies. I was
Speaker 12: quite vocal, and they said that we're going to match
Speaker 12: one hundred percent of the energy we use in our
Speaker 12: offices and data centers by putting clean energy back onto
Speaker 12: the grid. That might be solar, battery, wind, stuff of
Speaker 12: that nature. But of course these targets were set before
Speaker 12: the AI boom, and now they're racing to get as
Speaker 12: much power as they can and starting up gas power plants,
Speaker 12: and so our understanding is that inside the company, there's
Speaker 12: a growing sense that we're going to have to revise
Speaker 12: and take back some of these ambitious climate targets that
Speaker 12: were so important at least to our marketing.
Speaker 3: You say, talks inside Microsoft are ongoing there's no final decision.
Speaker 3: In fact, you spoke to a spokesperson for the story
Speaker 3: and talking about how they're continuing to look for opportunities
Speaker 3: to maintain that annual matching goal. But look, they're not
Speaker 3: commenting on the much tougher hourly commitment.
Speaker 2: Was that a tell?
Speaker 12: Yeah, it's one of these things that's quite wonky. I mean,
Speaker 12: I certainly had to learn a lot of these differences,
Speaker 12: but matching on the annual level is not quite as
Speaker 12: difficult because essentially, during the daytime there's a ton of
Speaker 12: clean energy, largely due to solar. Matching your energy use
Speaker 12: in the nighttime is the big challenge, especially because data
Speaker 12: centers run twenty four to seven, and so you could
Speaker 12: maintain your annual matching and it still sounds pretty good.
Speaker 12: But what this is, and it's important to recognize, is
Speaker 12: it's a step back on climate goals. Assuming they go
Speaker 12: through with this decision, I think.
Speaker 3: Makes Brady ford the impact of AI, we appreciate it.
Speaker 2: Thank you.
Speaker 3: With AI costs, open ai expects to spend fifty billion
Speaker 3: dollars on computing power in just this year.
Speaker 2: That's according to the company's.
Speaker 3: President, Greg Brockman, testifying in open AI's courtroom battle against
Speaker 3: Elon Musk. Brockman also said he and other co founders
Speaker 3: were concerned that Musk lacked the patients and AI understanding
Speaker 3: to run the chat chypt maker. The trial continues today.
Speaker 3: Coming up Disney's bottom line. While it gets a boost
Speaker 3: from some hit sequels, it got some what.
Speaker 2: To come as well.
Speaker 3: We're also talking about the streaming turnaround, resilient spending in
Speaker 3: the parks.
Speaker 2: There's a new CEO and it was pretty good news
Speaker 2: to him.
Speaker 3: As the stock reacts up to seven percent, the best
Speaker 3: day for Disney in a year at least. Let's talk
Speaker 3: about NASA one hundred one and a half percent the
Speaker 3: socks again.
Speaker 2: Chip stocks are on fire.
Speaker 3: We see Nvidio inking deals of corning to ensure that
Speaker 3: there's AI infrastructure supply, and AMD really impresses on its earnings.
Speaker 2: This is brumbo tech.
Speaker 3: Welcome back to bloommeg tech. We have got techtogs in demand.
Speaker 3: There's geopolitics at play. There's hope that there is some
Speaker 3: de escalation between US and Iran and that plays into
Speaker 3: the markets. But so two to earnings and I'm looking
Speaker 3: at the nastag up one.
Speaker 2: Point six percent.
Speaker 3: We're a record high again for the tech heavy benchmark,
Speaker 3: and we think about what's leaving the pack in terms
Speaker 3: of points. There's a lot to do with earnings. I
Speaker 3: dig into one of them. Disney currently having its best
Speaker 3: day in a year, new CEO Josh Damara, able to
Speaker 3: deliver strong results in particular. Look, we're up six percent
Speaker 3: on the name. We're just rolling over from our previous peak.
Speaker 3: But this is all about a company that's getting more optimization,
Speaker 3: more monetization from streaming in particular. And look, Bloomberg Intelligence
Speaker 3: is pointing to the strengthening growth outlook and more consistent
Speaker 3: earnings trajectory. More broadly, as a company brushes off part
Speaker 3: concerns with higher and exbra share guidance too. Keith Raganavin
Speaker 3: from Bloemegg Intelligence joins us now and look, can you
Speaker 3: talk about perhaps the anxiety going into this about the
Speaker 3: consumer and they show resilience.
Speaker 2: Is it the box office? Is it the was working?
Speaker 13: Everything seems to be working right now, Caroline. And of course,
Speaker 13: coming into this quarter, there was a lot of concerns
Speaker 13: about whether Disney would in fact lower their guidance for
Speaker 13: the full year, and they did exactly the opposite, which
Speaker 13: is why we're kind of seeing the shares really react
Speaker 13: with so much more confidence today. So, you know, on
Speaker 13: the theme parks, which is sixty percent of total company profit,
Speaker 13: we were expecting, you know, very very modest profit increase
Speaker 13: for the fiscal second quarter. They actually outperformed with five
Speaker 13: percent increase in profit, and you know, they attribute that
Speaker 13: to pretty strong per capita spending, even though visitation was
Speaker 13: a little challenged, so international visitation to their domestic parks
Speaker 13: has been heard by you know, a stronger dollar and
Speaker 13: some of the geopolitical tensions. But despite that, they kind
Speaker 13: of delivered. And really, I think the upbeat commentary for
Speaker 13: the fiscal third quarter where they talked about, you know,
Speaker 13: a pickup in demand and some of those attendance headwinds
Speaker 13: kind of fading away, really lends credence to their very
Speaker 13: optimistic outlook for fiscal twenty twenty six and even fiscal
Speaker 13: twenty twenty seven.
Speaker 3: It's all about what we're discussing at the top of
Speaker 3: the show, the flywheel effect of the IP and how
Speaker 3: attractive it is that plays into the streaming into the content.
Speaker 3: Just to listen to Josh Tomorrow on the call yesterday,
Speaker 3: what he had to say.
Speaker 14: We centralized television programming within Disney Entertainment DTC. So we're
Speaker 14: programming for Disney Plus and Hulu while being smart about
Speaker 14: window and content to linear so that we can expand reach.
Speaker 4: And maximize monetization.
Speaker 14: And we also integrated our games business into Disney Entertainment
Speaker 14: and this creates new opportunities to cross promote franchises and
Speaker 14: use games to extend storytelling and ultimately develop new ip.
Speaker 3: And of course was this morning not last night? My
Speaker 3: days are a loss eitho when we're in earnings, I'm
Speaker 3: interested as to what Josh did to convince about perhaps
Speaker 3: his big epic games bet, the Fortnite bet that people
Speaker 3: have been worried about to start of his reign.
Speaker 13: Yeah, so it's really, you know, as part of that
Speaker 13: whole content strategy. Yes, you're right to point out video games,
Speaker 13: and they're basically trying to create, you know, this one
Speaker 13: stop shop really using Disney Plus as kind of the
Speaker 13: hub for so many more products because you know, at
Speaker 13: the end of the day, at Disney has such a
Speaker 13: fantastic product portfolio with of course streaming, but then you
Speaker 13: have movies, and you have theme parks, and you have merchandise,
Speaker 13: and you have video games, and it's really, you know,
Speaker 13: Josh Tomorrow kind of setting the stage for achieving that
Speaker 13: whole next phase of growth by leaning more heavily into
Speaker 13: that Disney Plus experience. Right with video games, you have
Speaker 13: access to a whole new audience, a much younger audience,
Speaker 13: you know, whom you can sell into. And that's exactly
Speaker 13: what he's planning to do. But it's really about reintegrating
Speaker 13: the content engine as a whole. And I think he
Speaker 13: did a pretty good job of convincing investors that he
Speaker 13: knows exactly what he's doing and he has a plan
Speaker 13: in place.
Speaker 2: Now we're all excited for Devils product.
Speaker 3: Too, if you haven't already seen it, but took us
Speaker 3: to another place where content is coming. Warner Brothers Discovery
Speaker 3: got their earnings after the Bell.
Speaker 13: Yeah, So for Warner Brothers, it's just such a completely
Speaker 13: different story. I mean, I think, you know, fundamentals their earnings.
Speaker 13: That's a little bit of a sideshow here. It's all
Speaker 13: about M and A. We do know that one of
Speaker 13: the numbers that we're going to be looking for as
Speaker 13: the street will be is at TV advertising revenue and
Speaker 13: advertising revenue in general. We do expect a pretty dismal
Speaker 13: quarter if you would you if you can call it
Speaker 13: that for TV advertising, just because Warner Brothers Discovery lost
Speaker 13: its rights to the NBA, and so that is definitely
Speaker 13: going to have a huge impact. But other than that,
Speaker 13: any color that you know they can offer, just generally
Speaker 13: from an M and A perspective, although I doubt they
Speaker 13: will do that.
Speaker 3: It's a busy timmy if you too, Thrang and app
Speaker 3: and we so appreciate you of Bloomberg Intelligence.
Speaker 2: Let's stick with those earnings.
Speaker 3: We're getting back to MD why because it's the biggest
Speaker 3: points contributor on the nasat one hundred, that a record high.
Speaker 2: It shares a record high. We're up seventeen percent.
Speaker 3: Bluebag's Round for Stelca has been writing about well, some.
Speaker 2: Of the competitive threats that are coming in video's way.
Speaker 3: Let's go in on AMD because this isn't actually just
Speaker 3: a GPU story, this is CPU story. This is about
Speaker 3: a total addressable market that doubles.
Speaker 4: Yeah, good morning, thanks for having me.
Speaker 15: So what I would start with is that AMD coming
Speaker 15: into this report was coming off its biggest one month
Speaker 15: gain since the dot com era, so expectations were really
Speaker 15: elevated for this report. And even with that, it really
Speaker 15: just blew everyone away. Very strong results, very strong forecast.
Speaker 15: At least a couple of upgrades I saw, including from
Speaker 15: Goldman this morning. People were very impressed by their ability
Speaker 15: to draw like really impressive growth and really sort of
Speaker 15: establish themselves as a major player within AI.
Speaker 3: Some of the price target changes were actually I watering.
Speaker 2: I think some of them.
Speaker 3: First Team were doubling their price target on AMD, so
Speaker 3: big moves. Ryan, what about in video playing a bit
Speaker 3: of a catch up today, because you've been writing a
Speaker 3: lot about how maybe it's been beaten up when the
Speaker 3: rest of the market, in the socks at least, have
Speaker 3: gone up into the we've been worrying about competition.
Speaker 15: Yeah, truly interesting is if you look at the socks,
Speaker 15: it's up I think about sixty percent since late March. However,
Speaker 15: in Vidia, the biggest company really in the world, certainly
Speaker 15: the biggest semiconductor company, really hasn't been participating in that
Speaker 15: rally to the same degree. And it does seem like
Speaker 15: there is a growing appreciation that a couple of years
Speaker 15: ago it basically had a monopoly on AI chips. Now
Speaker 15: we are seeing more and more people come into this market,
Speaker 15: including some of Nvidia's biggest customers. So Alphabet last week
Speaker 15: talked about how it's going to start selling its TPU
Speaker 15: chips to other clouds. Those are specifically designed for AI applications,
Speaker 15: so there is a lot of demand for them. People
Speaker 15: even view them as superior to in Nvidia products in
Speaker 15: certain use cases. Amazon has its own chip, Meta is
Speaker 15: developing its own chip. Microsoft is These are all of
Speaker 15: Nvidia's biggest customers. So while it is dealing with competition
Speaker 15: from the likes of AMD, Intel, Qualcom, all these sort
Speaker 15: of traditional chip makers, it is also seeing more aggressive
Speaker 15: moves into the space from its biggest customers. Like I said,
Speaker 15: Alphabet probably being the most notable one. Certainly people are
Speaker 15: starting to wonder what does this mean for Nvidia's growth, margins, pricing, power,
Speaker 15: market share, all of that if we start to see
Speaker 15: some of its biggest customers looking to reduce their reliance
Speaker 15: on Nvidia.
Speaker 2: Most ran Laselca.
Speaker 3: We thank you very much for the round up on
Speaker 3: chips and let's stick with chips. The semiconductor market is
Speaker 3: on track to hit one trillion dollars, but global tensions
Speaker 3: rising demand of forcing the chip supply chain to adapt.
Speaker 3: That's the focus of this week's episode of Bloomberg Primer,
Speaker 3: Take a look.
Speaker 2: AI is booming.
Speaker 3: AI chips accounted for more than one quarter of all
Speaker 3: chips sold in twenty twenty five. That figure is expected
Speaker 3: to reach more than half by twenty twenty nine. Chip
Speaker 3: demand is no longer dictated by which new iPhone or
Speaker 3: PC will have customers lining up.
Speaker 16: What has changed over the years in the semiconductor industry
Speaker 16: is since we're seeing such a surge in the need
Speaker 16: to build data centers for AI deployment and applications, we're
Speaker 16: seeing a more sustained growth period in semiconductors as opposed
Speaker 16: to the old fashioned sickle call when we used to
Speaker 16: have Intel come out with chips that everybody had to
Speaker 16: upgrade their computer for.
Speaker 3: Spending on AI infrastructure like data centers is projected to
Speaker 3: soon cross the one trillion dollar mark.
Speaker 2: So the demand for these chips is there.
Speaker 3: There's just one maybe not so nanoscopic problem. How concentrated
Speaker 3: is too concentrated for this supply chain. Here more from
Speaker 3: the team at Bloomberg Originals on today's episode of Primer.
Speaker 3: That's Tonight Bloomberg six pm ET or on Bloomberg Originals
Speaker 3: at eight pm New York time. Now, sticking with chips,
Speaker 3: let's take a look at today's big number, fifty five
Speaker 3: billion dollars. That is how much SpaceX is estimating elomusks
Speaker 3: Terrafab chip factory will cost to build along with Tesla's
Speaker 3: according to a public notice which shows the estimated total
Speaker 3: capital investment could actually write to one hundred and nineteen
Speaker 3: billion and the additional phases of the project are completed.
Speaker 3: Coming up, Apple going to let users choose their own
Speaker 3: AI models across iOS twenty seven. More on that next,
Speaker 3: As Broomberg tech cool and I was trying to turn
Speaker 3: its devices into a comprehensive AI platform with the iOS
Speaker 3: twenty seven, this full users will be able to choose
Speaker 3: from multiple outside AI models like Google's Gemini or own products.
Speaker 3: Claude Bloomberg, Mark German is here with us, and Mark
Speaker 3: is it trying to be agnostic here in some way?
Speaker 4: In some way it's trying to be agnostic.
Speaker 17: But what it's really trying to do is understand where
Speaker 17: it's at in artificial intelligence. And if you look at Siri,
Speaker 17: you look at the Apple intelligence capabilities, there are nowhere
Speaker 17: up to par what you're seeing on Android. What you're
Speaker 17: seeing from competing devices, what you're seeing from CHADGBT, Claude,
Speaker 17: you name it, so they recognize that. So the name
Speaker 17: of the game is making the default offerings, right, Siri,
Speaker 17: Apple Intelligence competent and good enough. Right in the same
Speaker 17: way that the built in apps on an iPhone are
Speaker 17: competent and good enough. But then you have an app
Speaker 17: store where you can outfit your iPhone with a bunch
Speaker 17: of apps that many people consider superior. But you're still
Speaker 17: using an iPhone, and you're still driving services revenue to Apple,
Speaker 17: and obviously the harder revenue because they're buying you're buying
Speaker 17: their products, and so in the same way, they want
Speaker 17: to make the AI stuff good enough, but also offer
Speaker 17: customers the ability to put their own choice of AI
Speaker 17: models on top of features or to power certain features.
Speaker 17: So you're still using an iPhone, and maybe you're even
Speaker 17: making them more money by subscribing to different AI services
Speaker 17: like chat GPT or Geminii their platform, which they'll get
Speaker 17: a cut of through the app store.
Speaker 2: So at the moment mark you can interact with chat GPT.
Speaker 3: That sort of got the first in with Apple across
Speaker 3: some of its functionality, but when it comes to sery.
Speaker 3: We understand that it's alphabets technology that they're sort of
Speaker 3: turning towards.
Speaker 2: Where are we going to see and feel it differently?
Speaker 4: So there's a couple of things going on here, right.
Speaker 17: So Apple Intelligence when it first launched in twenty twenty four, Siri,
Speaker 17: that was based on Apple models, but there was what's
Speaker 17: called an extension to be able to tap into chat GPT.
Speaker 17: Now Apple's rebuilding Siri, so it's in house Siri using
Speaker 17: Google Gemini models, but that doesn't have Google Gemini functionality.
Speaker 17: It's basically like they hired the engineers from Google to
Speaker 17: fix Siri because you know, obviously they're doing a better
Speaker 17: job building their models. But now in addition to chad GPT,
Speaker 17: you'll be able to tap into outside AI sovices, Gemini
Speaker 17: being one, Claude being another. And we'll see if they
Speaker 17: end up allowing meta Alexa.
Speaker 4: And you name it.
Speaker 17: In terms of when this is all coming, So they'll
Speaker 17: introduce these new features as well as the Revampseiri in
Speaker 17: June on the eighth at WWBC, and they'll roll it
Speaker 17: out in September, and I think if it rolls out
Speaker 17: any later than that, another disaster on their hands.
Speaker 4: But I think this is going to happen this time.
Speaker 2: Is this going to be enough?
Speaker 3: Is this Apple being In the longer term, I'm making
Speaker 3: the decision that they are just going to outsource this.
Speaker 4: Well, let's start with the short term.
Speaker 17: In the short term, if you're a customer, if you
Speaker 17: really can't ask for more.
Speaker 4: Other than to have access and have optionality to have anything.
Speaker 7: Right.
Speaker 17: As Gemini improves, as Cloud improves, chat youpt improves, you're
Speaker 17: going to get the best stuff on an iPhone. So
Speaker 17: from a customer standpoint, that's great. From a long term standpoint,
Speaker 17: I still think that Apple needs to get improved models.
Speaker 17: They need to be on the frontier of things when
Speaker 17: it comes to AI, because they have all sorts of
Speaker 17: hardware plans in the future, and if you're a hardware
Speaker 17: company like Apple, you don't want to be reliant on
Speaker 17: third parties to power the underlying AI powering those products.
Speaker 17: So in the short term they're going to be great.
Speaker 17: In the long term, they need to get things moving
Speaker 17: in a far better, more competitive direction.
Speaker 3: And we're likely therefore to see more of these announcements coming.
Speaker 3: And you as always set us up for what to
Speaker 3: anticipate with Apple Rumg's Mark gum and in some Frantsisco
Speaker 3: on all things Appleine and integration of AI.
Speaker 2: I'm but used to say. Now though, we can get
Speaker 2: back out to.
Speaker 3: The Milkene conference in California where Bloomberg's Joe Matthew and
Speaker 3: Krol Masser are sitting down with Kathy would have ARC.
Speaker 2: Let's listen in.
Speaker 18: All right, Paul and Scarlet, thank you so much. We
Speaker 18: welcome everybody on Bloomberg Radio, Bloomberg TV, across Bloomberg platforms. Yes, indeed,
Speaker 18: Carol Masser, Joe Matthew here at the milk and Institute
Speaker 18: Global Conference. We have a special guest. And I feel
Speaker 18: like reading in this morning, the headlines were made. It's
Speaker 18: like they knew Kathy was going to join us. Kathy
Speaker 18: would CEO, CIO and of course the founder of ARC invest.
Speaker 11: It's so nice to talk with you again. Thanks, delighted
Speaker 11: to be here. You gave me my big break in
Speaker 11: twenty fifteen.
Speaker 18: I'll never forget that. Well, it's so funny because I
Speaker 18: want to talk to Elon because you kind of put
Speaker 18: him for me on the radar, and I just feel
Speaker 18: like it was a time when so many people questioned
Speaker 18: what he was up to now, everybody is so excited
Speaker 18: about the SpaceX ipo. We see increasingly how he's kind
Speaker 18: of melding his universe together. Tell us about kind of
Speaker 18: that bet. And even today we have that he's building
Speaker 18: a chip factory at least fifty five billion in investment,
Speaker 18: maybe as much as almost one hundred and twenty and
Speaker 18: he's doing this chip factory SpaceX with Tesla. How are
Speaker 18: you looking at Elon right now and what his next
Speaker 18: era is.
Speaker 10: So this is why I founded ARC invest.
Speaker 11: We knew that the seeds that were planted in the
Speaker 11: twenty years that ended in the bubble, they've been germinating
Speaker 11: for twenty twenty five years and now they're flourishing. And
Speaker 11: what we're seeing is fifteen different technologies evolving and they're
Speaker 11: all converging. And Elon, about six months ago, and we've
Speaker 11: been using the word convergence for a long time, he said,
Speaker 11: you know what, I think, my companies are converging more
Speaker 11: than even I understood. And so we're seeing of course
Speaker 11: SpaceX XAI, rumors about Tesla, and really he believes that
Speaker 11: in the new world, or to create the new world,
Speaker 11: a company has to be vertically integrated, and so that's
Speaker 11: what's happening here. He is moving into incredible vertical integration
Speaker 11: as he moves data centers into space.
Speaker 18: Is it all about our Bloomberg intelligence? George Ferguson cover Space,
Speaker 18: covers Defense, but he said, it's all about Elon controlling
Speaker 18: the supply chain. Kathy, But I do feel like globally
Speaker 18: we're seeing countries companies really thinking about their supply chain.
Speaker 18: Is that part of his strategy?
Speaker 10: Absolutely? Absolutely?
Speaker 11: And also when a company is breaking new ground literally
Speaker 11: in this case, and really inventing something, the supply chain
Speaker 11: doesn't exist very often or not all parts of it exist.
Speaker 11: And I think also as he's discussing where he's going
Speaker 11: and how he's going to do it, he is getting
Speaker 11: the supply chain ready.
Speaker 7: You know.
Speaker 10: He always sets.
Speaker 11: The time frame, you know, much sooner than most people
Speaker 11: would expect. But it's to get his employees and the
Speaker 11: supply chain focused, because when he moves.
Speaker 10: He moves fast.
Speaker 8: You've really helped to define people's perception of Elon Musk
Speaker 8: and the company Tesla largely as one that is not
Speaker 8: about making cars, but one that's about autonomy and robotics.
Speaker 8: When you walk out the Hilton here, different than where
Speaker 8: I live in Washington, DC, driverless weaymos are picking people
Speaker 8: up and driving away with them all day long. The
Speaker 8: mainstreaming of autonomous vehicles is just about here. I'd like
Speaker 8: to know if you see that actually fulfilling itself in
Speaker 8: the next year, and if this is a zero sum
Speaker 8: game or you're going to have Uber, Weimo, Tesla all involved.
Speaker 11: Okay, this is where vertical integration comes back into the conversation.
Speaker 10: In the robotaxi world.
Speaker 11: Tesla's vertically integrated and has created the platform upon which
Speaker 11: others will build their companies. So I credit our team,
Speaker 11: So Tasha, Daniel, Brettwinton. We have been focused on this
Speaker 11: from day one twenty fourteen when I founded ARC and yes, slowly,
Speaker 11: slowly than all at once. So vertical integration for Tesla
Speaker 11: means it will have the lowest cost structure by far.
Speaker 11: Now it's going to use Uber's umbrella here three dollars
Speaker 11: plus per mile, but if our analysis is correct, those
Speaker 11: costs as robotaxis scale are going to drop to twenty
Speaker 11: five cents per mile.
Speaker 10: Think about it.
Speaker 11: The cost of transportation is going to collapse here.
Speaker 10: And no one Waimo's cost structure.
Speaker 11: According to our estimates in twenty thirty will be fifty
Speaker 11: percent higher than Tesla's because they're dependent on other auto
Speaker 11: manufacturers and others in the supply chain that Tesla is not.
Speaker 18: How are you thinking about the SpaceX IPO, Kathy? Do
Speaker 18: you anticipate there's so much enthusiasm going into it, massive size,
Speaker 18: massive interest. But do you think there'll be a drop
Speaker 18: off initially after you know, once it makes its public
Speaker 18: debut and then ultimately kind of play out like Tesla
Speaker 18: did that eventually it goes up again, Like how do
Speaker 18: you see the trajectory?
Speaker 10: Right?
Speaker 11: So this is only at least what we know so far,
Speaker 11: seventy five billion dollars. There is so much demand out there.
Speaker 11: We have in our venture fund, so ARKVX SpaceX is
Speaker 11: the largest position. And because we're direct to consumer when
Speaker 11: it comes to venture, although the fund has scaled north
Speaker 11: of eight hundred and fifty million, investors had to look
Speaker 11: for us and how did they find us? They were
Speaker 11: looking for SpaceX. So the demand is voracious out there.
Speaker 11: Only seventy five billion. Yes, it's a big IPO, but
Speaker 11: just think about how SpaceX has reawakened the dream of
Speaker 11: space exploration. This has captured the imagination not just of
Speaker 11: investors but really everyone.
Speaker 18: So does that mean you don't think it'll fly? You
Speaker 18: think the animal will continue? Do you think there will
Speaker 18: be some settling it.
Speaker 11: I think there'll be supply demand imbalance in the beginning.
Speaker 11: You'll see that pop. It will be volatile, I would imagine,
Speaker 11: But we hope to serve in terms of providing our research.
Speaker 11: We've already got a SpaceX model out there on our
Speaker 11: site art dash invest dot com. We have not added
Speaker 11: data centers orbital data centers in however, our preliminary work
Speaker 11: suggests that that part of the business could take relative
Speaker 11: to our existing model, could take Tesla from a revenue
Speaker 11: generation point of view, orders of magnitude higher, ten twenty
Speaker 11: times higher.
Speaker 18: I'm so glad you went there. Data centers and space,
Speaker 18: and I mentioned before we got going it came up
Speaker 18: on a real estate panel where so many of the
Speaker 18: real estate investors, even like related companies, has switched their
Speaker 18: focus to data centers. But we brought up data centers
Speaker 18: in space. What does that mean though? Then, for all
Speaker 18: of the data center build out and money that is
Speaker 18: happening here on Earth, does that mean a lot of
Speaker 18: that goes away? There's a little bit of a bubble,
Speaker 18: like how do we reconcile.
Speaker 11: That we think And this is the important judgment call.
Speaker 11: Is this hype? Is this nineteen ninety nine? I can
Speaker 11: tell you unequivocally it is not. As I mentioned, the
Speaker 11: seeds were planted. Then now we're ready, and we think
Speaker 11: this technology revolution is going to dwarf the industrial revolution
Speaker 11: by far. So I think that we'll need the orbit
Speaker 11: bild data centers. And of course Elon is informed by
Speaker 11: his experience in Memphis, Tennessee and now Mississippi. Memphis became
Speaker 11: not in my backyard, You're increasing my tricity prices and you're.
Speaker 10: Ruining our land.
Speaker 11: So he's basically saying, I'm not going to have to
Speaker 11: worry about not in my backyard in space.
Speaker 18: But does it make a bubble of the stuff on?
Speaker 11: We don't think so. I don't think so. We think
Speaker 11: we're going we need all of it.
Speaker 18: Yep, Sorry, I know I'm dominating.
Speaker 4: I mean you guys should walk away with this.
Speaker 8: Go to ask you about something that took place today.
Speaker 8: You woke up and saw your third largest holding just
Speaker 8: go through the roof in AMD another blow the doors
Speaker 8: off quarter and it's really creating this question now about
Speaker 8: whether we should be paying a lot more attention the
Speaker 8: market is to CPUs after GPUs went crazy. We're looking
Speaker 8: at people take money out of Nvidia now and chase
Speaker 8: stocks like A M D. Do we need both or
Speaker 8: is that where you're looking?
Speaker 10: We think we need both.
Speaker 11: I do think there is more competition. We want it,
Speaker 11: we need it. But it was interesting Sarah Fryar at
Speaker 11: open A. I'm going to give her a shout out
Speaker 11: because I heard her speak and she she was saying,
Speaker 11: you know, people are chasing GPUs. They're they're going to
Speaker 11: be really shocked at how Agent k Ai activates CPUs
Speaker 11: and infernt generally activate CPUs. Yesterday, Lisa Sue provided a
Speaker 11: stat we had never heard before. Right now, for every
Speaker 11: for every CPU, there are four to five GPUs when
Speaker 11: it comes to enabling AI. Lisa thinks it's going to
Speaker 11: go one to one in the future. I think that
Speaker 11: has been the sleeper and you see Intel has taken off.
Speaker 10: In fact, we're seeing a lot of stocks that were
Speaker 10: you know.
Speaker 11: They were very big in the bubble. And I just
Speaker 11: said to our team today, I said, what's going on.
Speaker 11: We're going back to the future. You know Intel resurrecting
Speaker 11: Yes and Flextronics is.
Speaker 10: Now called flex boom. So I think we need.
Speaker 8: It all not to mention data storage, which has been
Speaker 8: one of the most remarkable examples of a shortage creating
Speaker 8: a monster rally.
Speaker 10: So you need these.
Speaker 8: Old fashioned chips Yes to get to this new fashion AI.
Speaker 10: All hands on deck.
Speaker 18: We want to ask you about a story that came
Speaker 18: out Google Microsoft to give US agency early access to
Speaker 18: AI models. So basically the White House vetting AI models
Speaker 18: this good are bad?
Speaker 11: And knowing this administration and David sachs our ais are.
Speaker 11: I don't think we're talking about heavy regulation here. We
Speaker 11: might be talking more about national security. National security we
Speaker 11: heard this with Metho's. You know, software that has not
Speaker 11: has been a place for sixty years and never been penetrated.
Speaker 11: AI can find these vulnerabilities. So they're probably trying to
Speaker 11: tighten up a lot of what we do out there
Speaker 11: and make sure that our industries are safe.
Speaker 8: Bring a political implication though, to what may or may
Speaker 8: not be available to people if the White House is
Speaker 8: choosing which platform we ought to use.
Speaker 11: Now you know what's interesting, and this is taking a
Speaker 11: leaf from Open AI in its early days GPT, you
Speaker 11: are saying, we don't think we can release this, this
Speaker 11: is too powerful. Is great marketing. It's true that it's
Speaker 11: very powerful, but it's also great marketing. A lot of
Speaker 11: the people at Anthropic came from Open Ai, so while
Speaker 11: they're blazing trails, no question about it, and they're leapfrogging
Speaker 11: one another, which is great. Competition is great for US here,
Speaker 11: including competition from China.
Speaker 10: I think that you know we're on our way.
Speaker 18: I want to ask you about stable coins tether and
Speaker 18: their potential. Do you think it has a chance to
Speaker 18: become big in the US under the Genius Act? And
Speaker 18: you've also invested in Circle, are you looking at other
Speaker 18: stable coin related players beyond that? Crypto Bild tell me
Speaker 18: there's a lot going on right now.
Speaker 10: It is a lot going on.
Speaker 18: It's a big meeting at mor Lago. Like I know
Speaker 18: a lot of crypto folks.
Speaker 11: They tell us well, and you know, in the last election,
Speaker 11: I do think the crypto community was very was part
Speaker 11: of the swing factor because they knew deregulation would take
Speaker 11: place under this administration. That's absolutely true. So yes, we're
Speaker 11: seeing the deregulation. You know, is this is creating a
Speaker 11: new financial world order. Many people think the dollars should
Speaker 11: be going down because of our deficit and debt and
Speaker 11: all of that.
Speaker 10: And what we're seeing here in the United States is.
Speaker 11: Deregulation, tax cuts, and a very business friendly, very business
Speaker 11: friendly administration. We think the return on invested capital is
Speaker 11: going to go up in the US generally, and we
Speaker 11: think that the crypto revolution we were at risk of
Speaker 11: losing it. Yeah, and yes, we do think USAT has
Speaker 11: a shot.
Speaker 18: You do, Yes, all right, I'm not gonna have like
Speaker 18: IM just a million more questions. Who's doing Kathy, thank
Speaker 18: you so much, really.
Speaker 10: Appreciate it, and thank you really so much.
Speaker 18: Really appreciate it. Kathy would of course, she's the CEO,
Speaker 18: CIO and of course founder of arc in Vest. Someone
Speaker 18: like I said, it was ten years ago, yes, that
Speaker 18: we first started talking, yes about Elon Musk's so really
Speaker 18: tremendous to catch up with her again. And I feel
Speaker 18: like we we didn't even talk about alphabet, which I
Speaker 18: know was a great call for you before earning.
Speaker 8: Before earning.
Speaker 4: Yeah, believable