WEBVTT - Anthropic Gets a Warning, SpaceX Shares Fall on Fourth Day 0:00:02.520 --> 0:00:18.759 Bloomberg Audio Studios, podcasts, radio news. 0:00:22.440 --> 0:00:23.960 This is Bloomberg Tech coming up. 0:00:24.000 --> 0:00:27.560 Anthropic gets a warning from the US Common Secretary saying 0:00:27.600 --> 0:00:31.360 it needs government permission to grant foreign nationals access to 0:00:31.440 --> 0:00:35.120 its most advanced AI models. Plus, after three days of soaring, 0:00:35.600 --> 0:00:38.600 SpaceX shares come back down to earth and drop for 0:00:38.640 --> 0:00:41.600 the first time in the company's fourth trading day, and 0:00:41.600 --> 0:00:46.519 Bloomberg reports Apple's upcoming camera equipped AirPods will launch in 0:00:46.600 --> 0:00:49.519 late twenty twenty seven as part of a flurry of 0:00:49.600 --> 0:00:52.400 new releases. There is a lot going on in the 0:00:52.440 --> 0:00:55.760 world of technology, and that's playing out inequity markets, and 0:00:55.800 --> 0:00:57.040 as that one hundred. 0:00:56.800 --> 0:00:59.200 Is seen a lot of churn and chop. We're up modestly, 0:00:59.400 --> 0:01:00.560 few tenths percent. 0:01:00.880 --> 0:01:03.360 Chip stocks are rebounding, but we had a really big 0:01:03.440 --> 0:01:05.360 drop in yesterday's session. 0:01:05.680 --> 0:01:07.320 But remember as an. 0:01:07.120 --> 0:01:09.520 Index, as a bucket, chip stocks are up like ninety 0:01:09.560 --> 0:01:13.800 percent year today and SpaceX that's a pretty reasonable pullback 0:01:14.080 --> 0:01:16.039 down to one hundred and ninety three dollars per share, 0:01:16.120 --> 0:01:19.600 down four percent, but had added nine hundred and thirty 0:01:19.600 --> 0:01:22.360 billion dollars of market cap in the first three days 0:01:22.360 --> 0:01:24.400 of its life as a public company. 0:01:24.600 --> 0:01:26.080 Let's get to the new stories and. 0:01:26.040 --> 0:01:31.520 An extraordinary escalation in Washington's conflict with Anthropic. Bloomberg's obtained 0:01:31.520 --> 0:01:34.920 a copy of the letter from Cover Secretary Howard Lutnik, 0:01:35.040 --> 0:01:41.319 dated last Friday, warning that Enenthropic faces severe civil and 0:01:41.360 --> 0:01:45.000 criminal penalties if it grants foreign nationals access to its 0:01:45.040 --> 0:01:49.720 most advanced AI models. Bloomberg's editor in DC, Mike Shephard, 0:01:49.800 --> 0:01:51.280 is with us for more. So, what do we learn 0:01:51.320 --> 0:01:52.560 from the letter that's start there? 0:01:53.880 --> 0:01:56.440 Well, one of the things we actually didn't learn ed 0:01:56.720 --> 0:02:00.240 was the rationale. What was the underlying security concer learn 0:02:00.520 --> 0:02:03.440 that drove Howard Lutneck and the US government to take 0:02:03.560 --> 0:02:07.360 such a drastic step as to order and impose export 0:02:07.440 --> 0:02:11.760 controls on shipments and sharing of this sensitive technology. But 0:02:11.840 --> 0:02:14.480 what we did learned was this that the government is 0:02:14.680 --> 0:02:19.359 using authorities that are typically reserved for dual use technology, 0:02:19.520 --> 0:02:22.760 that is, products that could be applied for both civilian 0:02:22.919 --> 0:02:27.320 and military purposes, and the government is invoking these authorities 0:02:27.320 --> 0:02:30.320 in a way to try to prevent foreign nationals, perhaps 0:02:30.400 --> 0:02:35.440 from leaking either intentionally or unintentionally, these whares, these products, 0:02:35.639 --> 0:02:40.000 the top two AI models from Anthropic to foreign adversaries 0:02:40.040 --> 0:02:43.000 of the US, and they are preparing to impose these 0:02:43.040 --> 0:02:46.600 export controls and have them in place until further notice, 0:02:46.680 --> 0:02:49.880 and they're warning it of criminal penalties and civil penalties 0:02:49.960 --> 0:02:51.440 if Anthropic fails to comply. 0:02:52.400 --> 0:02:55.639 Shep just very quickly. Let's re recap the reporting of 0:02:55.680 --> 0:02:59.320 the show. Yesterday, technical staff of Anthropic went to DC 0:03:00.120 --> 0:03:01.240 met with the administration. 0:03:01.520 --> 0:03:05.239 What do we know, Well, we haven't seen any further 0:03:05.360 --> 0:03:10.079 signs of progress in the negotiations between the two sides. 0:03:10.520 --> 0:03:14.280 We do, however, have today at the G seven Evion 0:03:14.639 --> 0:03:18.000 Dario Amidae, the Anthropic CEO, and President Donald Trump in 0:03:18.040 --> 0:03:21.079 the same room for an AI lunch hosted by French 0:03:21.120 --> 0:03:24.560 President Emmanuel Macron. Now, at the lunch, the two men 0:03:24.600 --> 0:03:27.120 did not sit anywhere near each other, and it's unclear 0:03:27.160 --> 0:03:30.760 whether they had any interactions or cydebars. But after his 0:03:30.960 --> 0:03:35.360 bilateral meeting with Indian Prime Minister and Arundromodi, President Donald 0:03:35.400 --> 0:03:38.320 Trump was asked well, how are things going with Anthropic, 0:03:38.440 --> 0:03:40.680 and all he could say was going fine. We may 0:03:40.720 --> 0:03:43.480 hear more from the President on this, but clearly it's 0:03:43.520 --> 0:03:45.600 something that's on the mind of G seven leaders, and 0:03:45.720 --> 0:03:49.520 Macron himself is pushing this idea of trusted partners for 0:03:49.600 --> 0:03:54.520 sensitive technologies like anthropics AI models in which these partners 0:03:54.840 --> 0:03:58.320 allied countries would be vetted by security authorities so that 0:03:58.400 --> 0:04:01.960 they too could perhaps re access to centretive tech like 0:04:02.040 --> 0:04:02.880 these two models. 0:04:03.640 --> 0:04:05.680 Bloomboks Mike Shepard, thank you very much. I want to 0:04:05.680 --> 0:04:07.760 go deeper on that story. The G seven is underway 0:04:07.760 --> 0:04:10.800 in vy On, France this week, and beyond geopolitical and 0:04:10.840 --> 0:04:14.480 economic debates, AI is in the spotlight. The chief executives 0:04:14.480 --> 0:04:18.440 of Open Ai, Anthropic and Google all on hand, joining 0:04:18.480 --> 0:04:21.440 world leaders to discuss the global. 0:04:20.960 --> 0:04:22.200 Future of AI. 0:04:22.279 --> 0:04:25.600 The conversation comes as the US government indicates its willingness 0:04:25.720 --> 0:04:30.520 to use emergency powers forcing private developers into compliance over 0:04:30.640 --> 0:04:33.960 national security threats. The President of the United States also 0:04:34.279 --> 0:04:36.599 in Evyon, and we expect to hear from him today. 0:04:36.640 --> 0:04:39.920 Bloombirs Kle lines co hosts of Balance of Powers with US, 0:04:40.080 --> 0:04:44.480 such an interesting dynamic, right power players, World leaders, AI 0:04:44.640 --> 0:04:46.599 leaders recap. 0:04:47.720 --> 0:04:50.080 Yeah, well and Mike spoke to some of this incredibly 0:04:50.120 --> 0:04:53.040 well ed. Basically, what we have here is countries who 0:04:53.040 --> 0:04:55.880 are all calling for a regulatory regime around AI. The 0:04:55.880 --> 0:04:57.960 German Chancellor Friedrich Marks talked about the need for and 0:04:58.040 --> 0:05:01.800 intensive discussion around that, also saying that all countries need 0:05:01.839 --> 0:05:05.280 to have access to this technology and admitting fridrim Mertz 0:05:05.320 --> 0:05:08.040 did that Europe needs to play catchup. And that's really 0:05:08.040 --> 0:05:11.000 what's that issue here is we consider anthropic and these 0:05:11.040 --> 0:05:14.840 export controls being slapped on in particular, is that Europe 0:05:14.839 --> 0:05:18.080 doesn't have its own AI juggernauts such as those in 0:05:18.120 --> 0:05:21.320 the United States. This is somewhere and we heard President 0:05:21.360 --> 0:05:23.440 Trump speak to this earlier as well, that the United 0:05:23.480 --> 0:05:26.080 States is leading in and Europe wants to be able 0:05:26.360 --> 0:05:29.280 to trust that it can access the technology. Thus the 0:05:29.279 --> 0:05:32.720 push to have Europe considered some of these trusted partners 0:05:32.720 --> 0:05:36.360 who would be able to access this technology versus adversaries 0:05:37.120 --> 0:05:40.120 like China for example, when we're considering things like Mythos 0:05:40.120 --> 0:05:42.839 and Fable five. So this is obviously an active discussion. 0:05:42.880 --> 0:05:45.960 We could hear more from President Trump about this, but 0:05:46.040 --> 0:05:48.640 it also feeds into another issue that was raised at 0:05:48.640 --> 0:05:52.040 the G seven summit. At as we consider the technology 0:05:52.120 --> 0:05:55.200 questions that leaders are grappling with, it is also inputs 0:05:55.240 --> 0:05:59.560 into certain technologies like rare earth and permanent magnets, and 0:05:59.560 --> 0:06:02.280 we actually saw the G seven countries agreeing today to 0:06:02.360 --> 0:06:06.880 cap their imported supply from China to sixty percent of 0:06:06.960 --> 0:06:09.960 rares and permanent magnets by the year twenty thirty. 0:06:10.000 --> 0:06:11.400 The ultimate goal, as soon. 0:06:11.279 --> 0:06:14.279 As possible is to get those imports down to fifty percent, 0:06:14.320 --> 0:06:15.720 and they're going to by the end of this year 0:06:15.760 --> 0:06:18.120 have a separate discussion around other critical minerals, but the 0:06:18.160 --> 0:06:21.279 idea is reducing the dependence on China, which has shown 0:06:21.320 --> 0:06:24.679 a willingness to restrict exports of this market in which 0:06:24.839 --> 0:06:27.880 they are dominant, not just in terms of mining these 0:06:27.960 --> 0:06:31.000 rare earths, but also in the refining of them. This 0:06:31.080 --> 0:06:33.160 is going to be a really ambitious target for these 0:06:33.200 --> 0:06:36.080 countries to meet at is they have to work on 0:06:36.120 --> 0:06:38.760 their own supply chains. Even officials of the G seven 0:06:38.760 --> 0:06:42.480 are admitting that may mean imposing quotas on certain industries 0:06:42.600 --> 0:06:45.080 like defense, for example. But this is actually one of 0:06:45.120 --> 0:06:48.080 the big tangible items that is emerging from the G 0:06:48.160 --> 0:06:50.960 seven summit, the sixty percent cap on rare earths from 0:06:51.040 --> 0:06:52.560 China again by twenty thirty. 0:06:53.320 --> 0:06:55.320 The mss kaye lyones, thank you very much, and of 0:06:55.360 --> 0:06:57.599 course we expect to hear from the President about the 0:06:57.640 --> 0:07:01.840 status of an agreement with Iran other topic that has 0:07:01.880 --> 0:07:05.400 had direct impact on supply chains in tech, including semiconductors. 0:07:05.839 --> 0:07:08.479 Stick with AI and video founder and CEO Jensen Wog 0:07:08.640 --> 0:07:11.080 sat down with the AP to discuss the need to 0:07:11.120 --> 0:07:14.280 build AI in a safe and responsible way. But beyond that, 0:07:14.640 --> 0:07:17.320 he says, the US needs to harness the new technology 0:07:17.560 --> 0:07:19.040 to stay ahead of the curve globally. 0:07:19.080 --> 0:07:20.480 Listen to this, We. 0:07:20.480 --> 0:07:23.160 Have to be very careful that artificial intelligence, this new 0:07:23.320 --> 0:07:27.400 next generation of technology revolution, that we're also enthusiastic about 0:07:27.440 --> 0:07:29.600 the adopting it and make sure that we don't get left. 0:07:29.400 --> 0:07:31.720 Behind joining us now. 0:07:31.760 --> 0:07:34.480 Udecha Revu, a member of the portfolio management team for 0:07:34.520 --> 0:07:38.080 the International Equity Strategy Desk at Harding Lovner. You know 0:07:38.160 --> 0:07:42.080 something that's come up actually very recently yesterday's show was 0:07:42.640 --> 0:07:46.120 what is the kind of black swan for this market 0:07:46.280 --> 0:07:47.520 where we are right now? 0:07:47.880 --> 0:07:49.880 And it might just be regulatory risk. 0:07:50.680 --> 0:07:54.280 Listening to what Jensen Wong had to say there, extrapolate 0:07:54.320 --> 0:07:57.120 on that a little bit. You know, we're still unresolved 0:07:57.120 --> 0:07:59.840 with China. Supply chains are impacted by the war, and 0:08:00.720 --> 0:08:02.160 what's tep of mind for you right now? 0:08:03.000 --> 0:08:05.240 Top of mind for us is a productivity gain. So 0:08:05.400 --> 0:08:09.000 the return on equity that can be generated from AI 0:08:09.600 --> 0:08:13.080 and how much people are embracing it and what purposes 0:08:13.120 --> 0:08:15.960 are they using and what is the adoption curve and 0:08:16.000 --> 0:08:18.440 the return on that adoption curve is what's on top 0:08:18.480 --> 0:08:20.400 of our mind. And when we point out a less 0:08:20.600 --> 0:08:23.720 regulatory risk might be less of an issue. The bigger 0:08:23.760 --> 0:08:26.000 issue is going to be people have to take time 0:08:26.040 --> 0:08:30.440 to digest what they're included, what AI they've started using 0:08:30.480 --> 0:08:33.080 in their workplaces, and then understand the returns of it 0:08:33.120 --> 0:08:37.800 before they can generate additional demand. And to us, the 0:08:37.960 --> 0:08:40.880 timing of that is where the market might get moist, 0:08:41.559 --> 0:08:44.120 might get most confused about, And to us, that's that 0:08:44.200 --> 0:08:48.200 Blacks fundament. Short term risk might be extrapolated as long 0:08:48.280 --> 0:08:51.559 term risk, and that's where the market might overreact. 0:08:52.520 --> 0:08:56.360 Where do you look for the evidence of productivity's impact 0:08:56.480 --> 0:08:59.000 from AI? You know, very recently and I think you're 0:08:59.000 --> 0:09:02.319 talking about in team markets, right. We had a conversation 0:09:02.600 --> 0:09:05.559 ten days ago with San Francisco Fair president Mary Daily 0:09:05.679 --> 0:09:08.959 saying I don't see any evidence of productivity in this 0:09:09.000 --> 0:09:11.560 country being impacted by AI, for better or worse. 0:09:12.240 --> 0:09:14.320 Yeah, So from that, I think there's a number ways 0:09:14.320 --> 0:09:16.080 to look at it. The first thing we do is 0:09:16.120 --> 0:09:17.520 to talk to companies. 0:09:17.120 --> 0:09:19.840 At the individual levels how they're adopting AI and what 0:09:20.000 --> 0:09:23.880 impact that AI is having on either their cost management 0:09:24.679 --> 0:09:27.880 or the sales that they're generating, or the activity that 0:09:27.920 --> 0:09:28.439 they're doing. 0:09:28.760 --> 0:09:31.880 So one clear evidence that we find is people are 0:09:31.920 --> 0:09:35.439 able to do a lot more with a lot less 0:09:35.520 --> 0:09:40.160 human resources or keeping human resources versus the same. What 0:09:40.200 --> 0:09:44.040 we yet to see is that translate into profit growth 0:09:44.040 --> 0:09:47.040 for anyone either, And that's to us is what the 0:09:47.080 --> 0:09:49.719 next step is going to be and trying to understand 0:09:49.840 --> 0:09:53.480 where that profit growth is coming from. Most immediate is 0:09:53.520 --> 0:09:56.040 that some costs can come down, but that cost is 0:09:56.080 --> 0:09:59.560 being reinvested into AI, and to us, that's where that 0:09:59.600 --> 0:10:01.480 discript in a secret come from. 0:10:02.400 --> 0:10:04.880 We started the program saying there's been some choppy trading 0:10:04.920 --> 0:10:08.720 and churn inequities in this morning session, at least remind 0:10:08.800 --> 0:10:12.280 the audience that we have a FED decision and meeting today. 0:10:12.320 --> 0:10:13.479 The first of Kevin. 0:10:13.240 --> 0:10:17.280 WASH's chair is that a factor for technology investors right now? 0:10:18.559 --> 0:10:20.800 I don't think it's a factor for technology investors from 0:10:20.840 --> 0:10:23.560 a fundamental perspective. We still are focused on what's happening 0:10:23.600 --> 0:10:26.480 in the fundamental markets, and the market is reacting to 0:10:26.520 --> 0:10:28.520 a lot of the fundamental news that's coming out. So 0:10:28.559 --> 0:10:32.480 the investors, in my mind, have become more and more 0:10:33.200 --> 0:10:37.040 sensitive to profit and what impact by AI is having 0:10:37.080 --> 0:10:41.800 on profit versus revenue. Over the last two years, revenues, backlogs, 0:10:41.840 --> 0:10:45.120 bookings was what the market's reacted to. It started to 0:10:45.200 --> 0:10:48.440 turn in the last two quarters where revenue growth is 0:10:48.480 --> 0:10:53.280 being given less of interest and more interesting into profit growth. 0:10:53.480 --> 0:10:56.480 So I don't think we're there the point where the 0:10:56.520 --> 0:10:58.760 interest rate changes itself will have a big impact on 0:10:58.800 --> 0:11:01.760 it a longer run. It will because that's it's a 0:11:01.800 --> 0:11:04.320 discount rated which you mpv the future edge. 0:11:04.440 --> 0:11:06.600 Yes, it's been it's been a long time since I've 0:11:06.600 --> 0:11:09.320 said this out loud on Bloomberg Tech. But higher rates 0:11:09.360 --> 0:11:12.320 discount the present value of future cash flows and continue 0:11:12.320 --> 0:11:15.480 to remind ourselves at that point. Look, I won't ask 0:11:15.480 --> 0:11:18.839 you about SpaceX specifically, but there's this idea that that 0:11:18.960 --> 0:11:23.560 presages a big i PO window, but more sophisticated than that. 0:11:23.920 --> 0:11:28.120 After a long era of buybacks and other shareholder friendly policies, 0:11:28.520 --> 0:11:32.440 lots of new equity will hit the market maybe this year. 0:11:33.360 --> 0:11:34.680 How does that go for you? Sorry? 0:11:34.720 --> 0:11:38.040 Go ahead, So that's that creates a technical risk in 0:11:38.080 --> 0:11:41.880 terms of where if anthropic and open AI come to 0:11:41.920 --> 0:11:44.720 the market, the equity that's raised for that, and the 0:11:44.720 --> 0:11:47.000 funding that's which that, where is that going to come from, 0:11:47.000 --> 0:11:49.400 Which which sick does the market? Which part of the market. 0:11:49.679 --> 0:11:51.600 And we've seen some of the some of the reason 0:11:51.640 --> 0:11:54.360 why the semi conductors have done so well is softly 0:11:54.360 --> 0:11:57.600 it has underperformed. So what are the segments of the 0:11:57.640 --> 0:11:59.520 markets are going to underform? So they are going to 0:11:59.520 --> 0:12:02.320 be technical factors and they'll become even more important in 0:12:02.360 --> 0:12:03.760 the market in the next six months. 0:12:04.960 --> 0:12:08.400 Just very quickly, French President Makran saying in his own 0:12:08.520 --> 0:12:12.440 presser in Avon, it's good that the US realizes the 0:12:12.559 --> 0:12:15.520 dangers of frontier AI models. We're showing live pictures of 0:12:15.600 --> 0:12:19.840 him speaking at the G seven. This idea of government 0:12:19.880 --> 0:12:23.880 intervention and dictation on how technology can or can't be used. 0:12:24.200 --> 0:12:26.320 How is that playing out in the market mood right now? 0:12:27.720 --> 0:12:30.240 I think it's not as important to the market at 0:12:30.240 --> 0:12:33.040 this point in time because we're still trying to understand 0:12:33.040 --> 0:12:36.640 what are the capabilities of AI, and there's so much 0:12:36.840 --> 0:12:40.840 latent demand in even the previous generational models that we're 0:12:40.880 --> 0:12:43.280 less concerned about is there going to be the next 0:12:43.320 --> 0:12:45.439 generation going to be restricted? Well, we're still having used 0:12:45.440 --> 0:12:48.160 the full capacity or the previous generations, So let's do 0:12:48.240 --> 0:12:51.080 that and understand what the teram of that is before 0:12:51.120 --> 0:12:52.600 we're worried about the next generation. 0:12:53.920 --> 0:12:55.920 Like I said, there is a lot going on in 0:12:55.920 --> 0:12:57.760 the world of technology this morning, Harding Love and a 0:12:57.760 --> 0:12:59.679 portfolio manager who they threw a great to have you 0:12:59.720 --> 0:13:02.360 back on show, Thank you very much. Coming up, we're 0:13:02.400 --> 0:13:06.680 going to hear from HPECO Antonio Neeri story about let's 0:13:06.720 --> 0:13:09.360 make networking great again in the world of AI. 0:13:09.440 --> 0:13:11.480 That's next. This is Prittberg Tech. 0:13:24.960 --> 0:13:30.880 As AI infrastructure scales attention shifting beyond the chips to networking. 0:13:31.200 --> 0:13:34.560 HPE is betting the demand and its Juniper acquisition will 0:13:34.600 --> 0:13:37.080 be a major growth driver. I sat down with HPE 0:13:37.080 --> 0:13:39.800 President and CEO Antonio and Ery listen to this. 0:13:41.640 --> 0:13:44.680 We believe and has been for now three years plus, 0:13:44.760 --> 0:13:49.760 that networking is the core foundation to deliver AI across 0:13:49.960 --> 0:13:52.760 many aspects of the market, not just the enterprise, but 0:13:52.840 --> 0:13:56.120 obviously to train these models because networking is also the 0:13:56.120 --> 0:13:59.840 bottleneck to get the best productivities for all the GPUs 0:14:00.120 --> 0:14:03.000 of the point all over the world, and so Juniper 0:14:03.000 --> 0:14:06.520 has been a key thesis of that. We understood in 0:14:06.559 --> 0:14:10.239 twenty twenty three when we start thinking about the acquisition 0:14:10.320 --> 0:14:14.880 of Juniper with Rami, which was the CEO of Juniper 0:14:15.000 --> 0:14:18.120 and now leading our combined networking business, that this is 0:14:18.160 --> 0:14:23.120 a massive opportunity and the combination of Juniper and HPE 0:14:23.240 --> 0:14:26.760 and particularly with compute storage general green Lake platform will 0:14:26.760 --> 0:14:29.600 allows us to differentiate the market. So clearly is going 0:14:29.680 --> 0:14:32.480 to be the driving force as we go forward, because 0:14:32.720 --> 0:14:35.680 enterprises need to put that foundation in place and then 0:14:35.760 --> 0:14:39.640 the cloud experience around it. Because AI is the definition 0:14:39.680 --> 0:14:42.160 of a hybrid world load and tarry. 0:14:42.280 --> 0:14:45.280 That's pretend for a moment that the Bloomberg Tech audience 0:14:45.560 --> 0:14:49.240 is not familiar with networking. They know all about the GPUs, 0:14:49.720 --> 0:14:53.960 they know all about the high bandwidth memory, But what 0:14:54.200 --> 0:14:56.360 is it that we're talking about materially here. 0:14:57.720 --> 0:15:00.440 Yeah, when we think about AI and we think about 0:15:00.480 --> 0:15:03.520 the amount of accelerating computing through the GPUs we are 0:15:03.600 --> 0:15:06.880 plowing today, you have to connect all of them together 0:15:07.440 --> 0:15:12.200 in a parallel process. And that connectivity is the networking fabric, 0:15:12.240 --> 0:15:13.040 and there are three. 0:15:12.880 --> 0:15:13.720 Aspects of that. 0:15:14.000 --> 0:15:17.080 One is in a raq think about the cabinet you 0:15:17.200 --> 0:15:19.920 bring together seventy two or one hundred and forty four, 0:15:20.400 --> 0:15:23.200 that requires a lot of networking connectivity. That's what we 0:15:23.240 --> 0:15:25.680 call scale up. That's where Juniper is going to play 0:15:25.720 --> 0:15:29.840 a bigger role with the introduction of AMD helios in 0:15:29.880 --> 0:15:33.359 the fall, where Juniper will be the de facto networking 0:15:33.400 --> 0:15:37.080 fabric inside that architecture. And then when you start putting 0:15:37.080 --> 0:15:40.440 cabinets together in large data centers, you need to connect 0:15:40.480 --> 0:15:42.920 these cabinets all together, and that's what we'll scale out 0:15:43.040 --> 0:15:46.480 and that's also Juniper. And then finally, as we build 0:15:46.520 --> 0:15:49.440 these amazing data centers all over the world, you have 0:15:49.520 --> 0:15:51.920 to connect them with each other, and that's what we 0:15:52.000 --> 0:15:55.800 call scale across. And that's where our Juniper routing business 0:15:55.800 --> 0:15:58.600 excel because we have one of the best platforms in 0:15:58.640 --> 0:16:01.720 the world. So that's why networking so relevant to train 0:16:01.800 --> 0:16:03.760 models and to influence models. 0:16:04.560 --> 0:16:07.280 That was Hpe CEO, Antnio and Ery. There is a 0:16:07.320 --> 0:16:09.920 lot going on the world of technology, so many news stories. 0:16:09.960 --> 0:16:11.920 Let's get out to New York and Bloombergs. You hire 0:16:11.960 --> 0:16:13.280 and and you hire a HI I. 0:16:13.520 --> 0:16:16.760 Ed it's time out for talking tech. First up AI 0:16:16.840 --> 0:16:20.640 creditors are taking over software company Medalia. It's an effort 0:16:20.920 --> 0:16:23.880 led by Blackstone after owner Toma Bravo said it would 0:16:23.920 --> 0:16:27.720 not inject fresh cash into the struggling SaaS company creditors 0:16:27.880 --> 0:16:30.560 will invest one hundred and fifty million dollars into the 0:16:30.560 --> 0:16:35.560 company to curb it's debt and accelerate AI efforts. Plus 0:16:35.560 --> 0:16:39.360 SoftBank says it's becoming harder to find Latin American startups 0:16:39.360 --> 0:16:41.280 that are ready for major investments. 0:16:41.280 --> 0:16:43.280 The company says fewer. 0:16:42.920 --> 0:16:45.320 Firms in the region are meeting the requirements for its 0:16:45.360 --> 0:16:47.480 preferred investments of fifty million. 0:16:47.200 --> 0:16:47.920 Dollars or more. 0:16:48.280 --> 0:16:50.680 It's a big shift from just a few years ago 0:16:50.720 --> 0:16:54.720 when Latin American startups were attracting record amounts of venture 0:16:54.800 --> 0:16:57.800 capital and we end on Lenovo it is the latest 0:16:57.840 --> 0:17:01.080 company tapping the debt market look to raise two billion 0:17:01.120 --> 0:17:04.240 dollars through a convertible bond sale. The Beijing base, maker 0:17:04.320 --> 0:17:07.320 of PCs and AI servers, is returning to the market 0:17:07.520 --> 0:17:11.640 just two years after securing a similar size investment from 0:17:11.680 --> 0:17:14.720 Saudi Arabia's sovereign Wealth Fund. It says the money will 0:17:14.720 --> 0:17:17.479 be used to refinance debts and buy back shares. 0:17:17.760 --> 0:17:21.400 Ed thank you, Hira as we discussed earlier, the US 0:17:21.480 --> 0:17:24.720 is total anthropic not to give foreign nationals access to 0:17:24.760 --> 0:17:28.040 its most powerful models, but CEO Dario Amiday says the 0:17:28.080 --> 0:17:31.919 best defense against those risks is getting the technology to 0:17:32.040 --> 0:17:35.800 cyber defenders. He spoke with Billiomberg's Emily Chang for the circuit. 0:17:37.920 --> 0:17:41.119 If this helps defenders, it also helps attackers. 0:17:41.119 --> 0:17:42.720 Can we defend anything anymore? 0:17:42.960 --> 0:17:45.000 What I would say is that the reason that we're 0:17:45.000 --> 0:17:47.960 giving Mythos to defenders before we give it to attackers 0:17:48.040 --> 0:17:50.200 is to patch all the bugs. I don't know, as 0:17:50.240 --> 0:17:52.480 the models get better, there may be more and more 0:17:52.480 --> 0:17:55.400 bugs to be found, but there's only so many. They're finite, right. 0:17:55.440 --> 0:17:57.760 It's like you have this surface and there's only so 0:17:57.800 --> 0:17:58.520 many holes in it. 0:17:58.760 --> 0:18:00.240 You patch all the holes. 0:18:00.200 --> 0:18:02.760 And then the surface becomes very hard to attack as 0:18:02.800 --> 0:18:06.080 well as the code itself is written with the powerful models, 0:18:06.119 --> 0:18:09.560 so it's it's then becomes very hard to find flaws 0:18:09.600 --> 0:18:11.400 in or break into. So I think on the other 0:18:11.480 --> 0:18:15.120 side of this, hopefully six months or a year from now, 0:18:15.320 --> 0:18:18.399 we have a much more secure Internet ecosystem than we 0:18:18.480 --> 0:18:21.080 had in the past. We're trying to get to that 0:18:21.240 --> 0:18:23.760 world and we're doing the best we can to open 0:18:23.840 --> 0:18:28.679 up Mythos to new cyber defenders. We've been talking to 0:18:28.720 --> 0:18:32.000 the government. We're very respectful of their recommendations. They're slowing 0:18:32.000 --> 0:18:33.800 the pace at which we open it up because they're 0:18:33.800 --> 0:18:37.800 worried about counterintelligence risk. I think that's sensible. I think 0:18:37.920 --> 0:18:41.480 all serious people here understand that there's real trade offs here. 0:18:41.720 --> 0:18:42.600 We see a lot of. 0:18:42.560 --> 0:18:45.880 Sniping from people on Twitter and from you know, from 0:18:45.960 --> 0:18:49.359 other AI companies. You look at what they're saying and 0:18:49.400 --> 0:18:50.640 the inconsistency with. 0:18:50.560 --> 0:18:51.200 What they're doing. 0:18:51.640 --> 0:18:53.439 It's not they're not serious people. 0:18:53.600 --> 0:18:58.879 They're not seriously engaging with the the serious trade offs 0:18:59.200 --> 0:19:01.520 that that that that we have here. Look, I have 0:19:01.640 --> 0:19:04.639 customers calling me up every day saying I want access 0:19:04.720 --> 0:19:07.159 to Mythos. I have countries calling me up scene I 0:19:07.200 --> 0:19:09.880 want access to Mythos. And I have the US government 0:19:09.920 --> 0:19:13.120 and my security team saying no, wait a minute, there's 0:19:13.200 --> 0:19:16.640 risk to it. You know, I'm not saying one side 0:19:16.720 --> 0:19:18.840 or the other is right. I think it's somewhere in between. 0:19:18.880 --> 0:19:21.719 Both sides have valid points, but there's a real challenge 0:19:21.760 --> 0:19:25.800 here and we need to face it together as a society. 0:19:26.080 --> 0:19:29.560 That was Anthropics CEO Dario ami Day, speaking with Bloomberg's 0:19:29.560 --> 0:19:30.240 Emily Chang. 0:19:30.320 --> 0:19:31.440 You can catch that full. 0:19:31.200 --> 0:19:35.040 Episode of the circuit later today on Bloomberg TV and 0:19:35.080 --> 0:19:39.679 on Bloomberg dot com. SpaceX shares come back down to 0:19:39.760 --> 0:19:43.200 earth dropping for the first time. It's only the company's 0:19:43.200 --> 0:19:46.639 fourth trading day since that blockbuster ipo, puts the stock 0:19:46.960 --> 0:19:50.359 on track to snap three days of gains, where the 0:19:50.400 --> 0:19:52.960 shares had pushed nearly fifty percent above the IPO price 0:19:53.200 --> 0:19:56.840 and added almost to trillion dollars of market cap. Bloomberg 0:19:56.880 --> 0:19:59.480 Actacies reporter common Rhyanikey is trying to keep track of 0:19:59.600 --> 0:20:03.280 numbers that in real time keep changing. I mean, what 0:20:03.520 --> 0:20:06.760 is the what is happening right now? Right there is scarcity. 0:20:07.280 --> 0:20:09.600 There is only four percent of this company available for 0:20:09.640 --> 0:20:10.440 trade on the float. 0:20:10.920 --> 0:20:12.080 What's the big thing here? 0:20:12.640 --> 0:20:15.320 Yeah, So I think we're seeing some of the keynote, 0:20:15.320 --> 0:20:18.520 you know, volatility that can be associated with new IPOs 0:20:18.560 --> 0:20:21.399 in their earliest days of trading right here today, I mean, 0:20:21.440 --> 0:20:23.359 shares are down six percent right now, We're a little 0:20:23.359 --> 0:20:26.000 bit off the lows of the day for SpaceX, but 0:20:26.200 --> 0:20:28.960 this is a pretty extreme drop. It was up about 0:20:28.960 --> 0:20:31.399 six percent earlier in the session. Has paired all of 0:20:31.400 --> 0:20:33.880 that to decline here, we know that there's a low 0:20:33.960 --> 0:20:36.960 flow that can make swings in the stock price look 0:20:37.840 --> 0:20:40.399 extra large or bigger than maybe than they usually would, 0:20:40.960 --> 0:20:43.560 and that can also then have an impact on market caps. 0:20:43.560 --> 0:20:47.480 So yesterday we reported that SpaceX had jumped over Amazon 0:20:47.520 --> 0:20:49.720 in market value and that's a little bit up in 0:20:49.800 --> 0:20:52.760 the air today. We'll see where it ends at today's close. 0:20:53.440 --> 0:20:58.280 There's also like the listed options right the options market 0:20:58.359 --> 0:21:00.600 came into play over the last time for hours. Is 0:21:00.640 --> 0:21:02.040 that a factor in the volatility? 0:21:02.920 --> 0:21:05.680 It definitely can be. I mean, you know, traders are 0:21:05.720 --> 0:21:09.640 obviously now making bets on where SpaceX shares go next. 0:21:09.640 --> 0:21:11.639 You know, they're buying puts and calls. They're trying to 0:21:12.240 --> 0:21:15.320 additionally sort of game this system or see if they 0:21:15.640 --> 0:21:18.639