Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Ever though in Sent Francisco.
Speaker 2: This is Bloomberg Tech coming up. Colweedlands another twenty one
Speaker 2: billion dollar Meta deal in an AI computing push.
Speaker 3: This compute needed.
Speaker 4: As Meta debuts it's first closed AI model from the
Speaker 4: new superintelligence group called new Spark. We'll discuss how it
Speaker 4: used China's Queen model to train it.
Speaker 2: And all eyes on Anthropic as it closes an inside
Speaker 2: a share sale that leaves some investors without the stakes
Speaker 2: they wanted.
Speaker 4: Meanwhile, we look at what the market is up to
Speaker 4: today because once again pessimism risker version concerns that there's
Speaker 4: a moving away of backtracking by the US and Iran
Speaker 4: about any sort of peace talk or enter this conflict.
Speaker 4: We're currently up down six tens percent, though on in
Speaker 4: particular moves on certain stocks. So as we move out
Speaker 4: from the macro and into the micro, we.
Speaker 3: Talk about Core.
Speaker 4: Weave another huge deal with Meta twenty one billion dollars worth.
Speaker 4: It's going to be issuing its own debt. On the
Speaker 4: back of that, we're going to dig into that is
Speaker 4: why we sink perhaps a.
Speaker 3: Little bit on this stop.
Speaker 4: But Meta up three percent and ED this is notable
Speaker 4: on the back of a move, and not only to
Speaker 4: be getting more compute, but why it's using that compute then.
Speaker 2: Yeah, two days, two different stories. Meta unveiled a new
Speaker 2: AI model, the companies first since that multi billion dollar
Speaker 2: overhaul of the AI lab, and in reaction to that
Speaker 2: news in yesterday's session, the stock jumping six percent. Today,
Speaker 2: the core Weave news also a catalyst to push the
Speaker 2: stock higher, up ten percent on a three day basis.
Speaker 2: That's bring in Bloembos Riley Griffin, who leads the coverage
Speaker 2: of Meta. Very simple. You know they need neo clouds,
Speaker 2: they need core Weave for the compute. Give us the
Speaker 2: basics of this deal.
Speaker 5: Yeah, I mean this brings Corewave to thirty five billion
Speaker 5: in total contracts from Meta. This is a amount and
Speaker 5: it really tells us something that we've been talking about, ED,
Speaker 5: which is that Zuckerberg really wants to front load capacity.
Speaker 5: He thinks there's insatiable appetite for compute, and these deals
Speaker 5: just don't stop. It's almost every other week now that
Speaker 5: we're coming here talking about compute for Meta.
Speaker 4: And it's every end of the day that we talk
Speaker 4: about a new and updated model. So dig into the
Speaker 4: model and the meuse spark and why this is so
Speaker 4: significant for the beefed out super intelligence labs.
Speaker 5: This is an incredibly important development. If you look at
Speaker 5: the market reaction and listen to analysts, they're saying Meta is.
Speaker 3: Back in the game. This comes after last year.
Speaker 5: Early last year, Meta facing setbacks with their Lama models.
Speaker 3: These are open.
Speaker 5: Source models that just weren't performing at the frontier edge,
Speaker 5: at the bleeding edge with its competitors, from OpenAI, from Anthropic,
Speaker 5: from Google's Gemini. With the model that was released yesterday,
Speaker 5: it's a closed model. That's a big departure in Meta strategy.
Speaker 5: That means that developers can't get access to that back
Speaker 5: end code, that blueprint. And really they're talking about monetization here.
Speaker 5: And Alex Wang, who leads this unit, he actually instagrammed
Speaker 5: last night a post that put Meta at number four.
Speaker 5: They clearly don't think they are number one yet, but
Speaker 5: back in the game.
Speaker 2: I mean the stock reaction one point yesterday in the session,
Speaker 2: the stock's up almost ten percent, like it was pretty big.
Speaker 2: How the market reacted to the release. Very interesting. New
Speaker 2: Spark was trained using several third party open source models,
Speaker 2: but that included Quen from Ali Barber, Chinese technology company.
Speaker 2: Why is that significant and what we need to know
Speaker 2: about that.
Speaker 5: Well, tension has emerged between the US and China in
Speaker 5: this global AI race.
Speaker 3: We're seeing several.
Speaker 5: Big tech leaders come out and suggest that we need
Speaker 5: to protect our national security in our leading edge. Also,
Speaker 5: you are seeing them take efforts to ensure that Chinese
Speaker 5: companies aren't training on their models. This is a a
Speaker 5: different approach, right, This is learning from a Chinese model
Speaker 5: that is saying that it is taking efforts to ensure security.
Speaker 5: But the fact alone that they turned to Quin in
Speaker 5: part to train their model, among others, is rather telling.
Speaker 4: It's interesting after their purchase of Manners as well. Fascinating
Speaker 4: Riley Griffin with all the news on the compute as
Speaker 4: well as why they're getting the compute, Let's go back
Speaker 4: to the compute side.
Speaker 2: Call.
Speaker 3: We've Meta latest deal.
Speaker 4: And additional twenty one billion dollar agreement that we'll see
Speaker 4: Corewy's supply computing power to Meta through twenty thirty two.
Speaker 4: That's why and Robert Schiffman and blombag Intelligence to discuss
Speaker 4: the financing of the deal because interesting core, We've also
Speaker 4: plans to offer what three billion convertible senior notes due
Speaker 4: twenty thirty two, one point twenty five billion, also in credit,
Speaker 4: and maybe that's why the stock's down a bit because
Speaker 4: of the convertible note.
Speaker 3: It's not twenty one billion dollars worth. How is this
Speaker 3: all being financed?
Speaker 6: Yeah, well, listen to me. This is yet another wildly
Speaker 6: bullish statement from the bondholder community, is that we are
Speaker 6: willing to waive in bonds because we believe in the
Speaker 6: AI growth or we've has a lot more to finance
Speaker 6: over time. But they're being very creative. Today they're doing
Speaker 6: a convertible deal. They're also doing a bond deal. Last
Speaker 6: week they did a Urnalan backed by Metas cash flows
Speaker 6: at investment grade ratings. So there's lots of different options
Speaker 6: that they have over time. But what we're seeing deal
Speaker 6: after deal after deal, when bondholders get offered bonds at
Speaker 6: wider levels, they're going to wave them in and we're
Speaker 6: seeing them perform.
Speaker 2: Robert, we're showing your research. You know, you publish very
Speaker 2: quickly when the news headlines hit, and you give the
Speaker 2: credit perspective and that line in the middle there Meta
Speaker 2: and call we'd likely to continue to tap debt markets.
Speaker 2: Why do they need to keep doing that? You kind
Speaker 2: of hinted it there, but their commitments are very large
Speaker 2: and they're still kind of finding the capital to meet
Speaker 2: those commitments.
Speaker 7: Yeah.
Speaker 6: Well that's what we do at BI We give opinions,
Speaker 6: and we give them right away. I think if you look,
Speaker 6: it's very simple, go on to the terminal check FA
Speaker 6: look at consensus free cash flow for these names. You
Speaker 6: know they're massively negative. And when the massively negative, you
Speaker 6: need to borrow money. I think Meta could be lined
Speaker 6: up to do an Amazon Google like fifty billion dollar
Speaker 6: deal across dollars in euros within the next couple of months,
Speaker 6: maybe even tomorrow if the if the borrow and window
Speaker 6: stays open. So exactly what's going on is you're seeing
Speaker 6: a tremendous amount of frontloading of capex. So spending is
Speaker 6: happening now and cash flowers are going to follow later.
Speaker 6: So in the meantime you'll fill it in with bonds,
Speaker 6: and again there is a market for that.
Speaker 2: Karen made really good point, like why would the stock
Speaker 2: be down on good news? There's convertible like in pre
Speaker 2: market when the newsity went aoush. But then there's some
Speaker 2: dilution there and the credit perspective from Robert Schiffman of
Speaker 2: BI Thank you very much. There's another big story out
Speaker 2: this morning, and another pair of stocks are watching Intel
Speaker 2: and Google. Google said it plans to use future generations
Speaker 2: of Intel Xeon processes and other chips part of a
Speaker 2: new multi year agreement. As part of that deal, Google
Speaker 2: will work with Intel to customize its IPUs infrastructure processing
Speaker 2: units that handle things like networking, security, and storage. The
Speaker 2: companies didn't share financial terms or specific purchase agreements. Another
Speaker 2: big story, let's pivot to investor demand free sources telling
Speaker 2: Bloomberg that Entropic has completed a secondary share sale that
Speaker 2: started earlier this year. Employees sold shares at the same
Speaker 2: value as the company's most recent fundraising. Let's get more.
Speaker 2: Bloomberg's Bench Capital reporter Rebecca tonces with us, what was
Speaker 2: that valuation? Just to tie that up, But also like
Speaker 2: the story here is that some employees chose not to sell,
Speaker 2: and so you have investors that want the stock on
Speaker 2: the secondary's market, but they didn't get what they wanted.
Speaker 7: Anthropics growth this year has been remarkable ed and so understandably,
Speaker 7: you have some employees that were seeing the valuation that
Speaker 7: got done at this most previous round, which is three
Speaker 7: hundred and fifty billion before the new money, and saying, okay,
Speaker 7: that doesn't look quite high enough for what the growth
Speaker 7: of this company has looked like. Anthropic just announced earlier
Speaker 7: this week has exceeded a thirty billion dollar revenue run rate.
Speaker 7: And so you know, investors head lined up about six
Speaker 7: billion dollars for the share sale, but it came in
Speaker 7: significantly undersubscribed, with employees you know, not trying to unload
Speaker 7: just yet.
Speaker 3: And it is the talk of the town.
Speaker 4: I'm lucky enough to have you, Rebecca, usually in New
Speaker 4: York for you're on the West coast, because there's.
Speaker 3: A big event happening in human X, and.
Speaker 4: All anyone wants to talk about is the growth of Anthropic,
Speaker 4: it would seem. And indeed that run rate, no wonder,
Speaker 4: employees are pretty bullish. Everyone else seems to be.
Speaker 2: It's remarkable.
Speaker 7: Honestly, nearly every single conversation I've had at this conference
Speaker 7: has included an unprompted mention of Anthropic. It's become the
Speaker 7: benchmark for a lot of investors and startups to measure
Speaker 7: themselves against and for investors to evaluate startups against, both
Speaker 7: in terms of the growth that it's seen, but also
Speaker 7: where can startups fit into the market that Anthropic is
Speaker 7: unlikely to touch. As of Nowanthropic has really dominated in
Speaker 7: the AI coding space, but there's you know, projections that
Speaker 7: it may look to expand into financial services and other areas.
Speaker 7: And especially with the release of a new AI model
Speaker 7: over this week, which had said it was too powerful
Speaker 7: to be released to the broader public, it's got some
Speaker 7: founders shaking in their boots a bit.
Speaker 2: Rebecca, real quick, what's human X been like?
Speaker 8: Like?
Speaker 2: We have Nico Rosberg on the show later, former F
Speaker 2: one world champion now bench capitalist and investor. The footfall
Speaker 2: to me when I was on stage, like a lot
Speaker 2: of people there lots.
Speaker 7: Of people there. There were I want to say, about
Speaker 7: seven thousand people or so on the ground, full conference
Speaker 7: hall and just AI all the time, founders running around
Speaker 7: trying to pull you into their booth. Tons of interesting
Speaker 7: conversations happening left and right.
Speaker 4: We'll let you continue to have them left and right.
Speaker 4: Rebecca Torrens, thanks so much for joining us. It's a
Speaker 4: great write up. What's happening on the West coast right
Speaker 4: now with her coming up. Well, we've got a market
Speaker 4: conversation with JP Morgan's Stephanie Aliaga. We've got to go
Speaker 4: back to what's happening in geopolitics and have that fact
Speaker 4: the world of tech is blue bag tech. Let's check
Speaker 4: in on these markets because well, risk euphoria of yesterday
Speaker 4: dialing back somewhere off by two tex percent on the
Speaker 4: NASA that one hundred. It's not big moves in the
Speaker 4: stock market, but it's bigger moods in the bond market.
Speaker 4: It's bigger moods in the oil market. Brink Fude ninety
Speaker 4: nine dollars. Look, we're retracing some of that set off yesterday.
Speaker 4: We're up some five percent. Y well, because we're once
Speaker 4: again seeing both sides when we think of US and
Speaker 4: Iran accusing each other of violating the truth announced after
Speaker 4: almost six weeks of fighting.
Speaker 3: We want to get you up to speed with.
Speaker 4: That being leg Washington correspondent Tyler Kendall has the latest,
Speaker 4: and we're back on thin ice.
Speaker 8: Yeah, hey, Caroline, Well, at this point, this White House
Speaker 8: maintains that diplomatic efforts are indeed continuing confirming that the
Speaker 8: US and Iran will hold direct talks this weekend led
Speaker 8: by Vice President Jade Vance, and reporting from the region
Speaker 8: does indicate to that Iran's attacks against golf energy sites
Speaker 8: have ease. Still, at this point, the ceasefire is considered
Speaker 8: to be very tenuous, and that is in part because
Speaker 8: Iran is mandating that a tax stop in Lebanon in
Speaker 8: order for this two week truce to take place. But still,
Speaker 8: the US maintains that Israel's separate front against the Iranian
Speaker 8: back militant group Hezblah was never part of a ceasefire,
Speaker 8: and President Trump is downplaying the potential that this could
Speaker 8: be a major roadblock to the discussions, as Israel actually
Speaker 8: a few hours ago issued a new wave of evacuation
Speaker 8: warnings in Lebanon, signaling the potential that we could still
Speaker 8: see some more strikes there. President Trump, in a post overnight,
Speaker 8: did say that the US military remains ready to resume
Speaker 8: operations if needed, and he highlighted the importance of reopening
Speaker 8: the Strait of Removes because I'm sure, as you saw,
Speaker 8: Iranian state media is now reporting that any vessel that
Speaker 8: wants to transit through the Strait has to liaise with
Speaker 8: the Iranian military. Plus we also heard that they have
Speaker 8: now opened up these designated passages in a bid to
Speaker 8: make sure that vessels do not hit any potential minds
Speaker 8: that may be in the strait. Ed and Caroline, we
Speaker 8: heard earlier today from the head of the UAE's biggest
Speaker 8: oil producer who said, quote conditional passage does not constitute
Speaker 8: real passage.
Speaker 4: Tyler Kendall with all the latest when it comes to geopolitics,
Speaker 4: we so appreciate it.
Speaker 3: Look, let's let's get to how that affects you in
Speaker 3: the market.
Speaker 4: Stephanie Aniagus with us Well market strategists for shaping Walgan
Speaker 4: Asset Management been tracking the intersection really of geopolitics, of
Speaker 4: earnings and fundamentals of AI driven market. Right now, let's
Speaker 4: just focus on the Iran.
Speaker 3: And the tensions.
Speaker 4: How much is that seeping into the general optimism around
Speaker 4: CAPAXAI and continuing to be in tech.
Speaker 3: Yeah, markets are trying.
Speaker 9: To use the ceasefire as a de facto end to
Speaker 9: the war, and clearly we're not in the full like
Speaker 9: coast is clear just yet. But we do think when
Speaker 9: we think about the balance of race out here, it
Speaker 9: is far more likely that this conflict winds down in
Speaker 9: the matter of days or a couple of weeks than
Speaker 9: the alternative scenario of this extending into the summer. And
Speaker 9: when things extend into the summer, that is where the
Speaker 9: macro picture really begins to dim and that flows through
Speaker 9: to markets and earnings. However, the scenario that we think
Speaker 9: we're in right now, it is one that is a
Speaker 9: pretty constructive setup for equities from here. I mean, valuations
Speaker 9: have contracted meaningfully.
Speaker 3: We mentioned tech.
Speaker 9: In the tech sector, valuations today are cheaper than consumer staples.
Speaker 9: There's been a pretty meaningful decline there, and if you
Speaker 9: look at even valuations for some of the individual names,
Speaker 9: they're tracking below where they.
Speaker 3: Were before this AI boom even got started.
Speaker 9: So investors today are paying a cheaper price for robust earnings,
Speaker 9: and we've seen earnings expectations actually climb throughout this war,
Speaker 9: not because of the geopolitical headwinds, but because of the
Speaker 9: continued strength and this AI narrative. We remain in a
Speaker 9: deeply compute constrained environment, and many of those dynamics are
Speaker 9: favorable for some companies to cross this AI value chain.
Speaker 2: You look at tech right in terms of forward earnings
Speaker 2: and there's being compression. But like other people on the
Speaker 2: program in the last maybe seven days or so said,
Speaker 2: look at the biggest names in the sector, maybe on
Speaker 2: a waiting basis in next level, and they're back to
Speaker 2: where they were before the war even started. So the
Speaker 2: question that puts to you is the same I've done
Speaker 2: to all the other byside and strategist names we've had,
Speaker 2: is has this fundamentally altered the outlook for capex? Which
Speaker 2: I think was Karry's question, Has it out altered the
Speaker 2: growth outlook for the world's biggest technology names.
Speaker 9: No, because we think that that growth outlook is inextricably
Speaker 9: linked to demand and what we've learned. And you even
Speaker 9: can look at revenue expectations and realize revenue from the
Speaker 9: model abs as a signal of that demand, and that
Speaker 9: demand continues to beat expectations. Every single hyperscaler this past
Speaker 9: earning season said if we had more capacity on board today,
Speaker 9: revenues would be higher. All of this is continuing to
Speaker 9: funnel investment into AI capex. Where I think this geopolitical
Speaker 9: situation is relevant and potentially a headwind is around the
Speaker 9: cost of that capex. The economies that are most dependent
Speaker 9: on oil from this region. Taiwan Korea are also some
Speaker 9: of the most important bottlenecks and suppliers when it comes
Speaker 9: to AI hardware, and if they continue to face elevated
Speaker 9: prices for significantly longer, they're going to pass along those
Speaker 9: prices to US buyers, which are start tech companies.
Speaker 2: Just really quick, because I think we want to get
Speaker 2: to what's happening in credit as well. But chips have
Speaker 2: massively outperformed here today the socks is up more than
Speaker 2: twenty percent, the rest of the indices down single digits.
Speaker 9: Why markets are increasingly looking at this AI wave as
Speaker 9: a bit zero sum and where caution has been concentrated
Speaker 9: in the hyperscalers because of or turn on investment and
Speaker 9: rising costs. Where we just continue to see constructive evidence
Speaker 9: is around the need for AI infrastructure. This is going
Speaker 9: to be the year that inference demand outpaces demand from
Speaker 9: training and it's a pivot, but one that is expected
Speaker 9: to continue to compound. All of that points to a
Speaker 9: continued need for chips, and it's not just your GPUs
Speaker 9: but also memory CPUs and a much broader custom silicon,
Speaker 9: a much broader array of those chips that are needed
Speaker 9: for AI zero.
Speaker 4: Something is interesting because well software continues to sell off
Speaker 4: when we're seeing anxiety around Carlisle's private credit fund today
Speaker 4: and redemptions being there, but elsewhere in credit and elsewhere
Speaker 4: in loans, for example, the fuel.
Speaker 3: M and A we're actually looking like we're getting.
Speaker 4: Towards an end game when it comes to paramount and
Speaker 4: they're being able to syndicate out some of that debt efficiently.
Speaker 4: How are you thinking about the mommarkets remaining open in
Speaker 4: this moment.
Speaker 9: We still think there's a lot of appetite from bond
Speaker 9: markets to finance this AI boom. I mean, this is
Speaker 9: such a different business model than what you typically see
Speaker 9: in credits in credit. It's one that is potentially recipient
Speaker 9: to significant demand and one where the fundamental so far
Speaker 9: is still look quite solid. When I think about the
Speaker 9: worries around private credit more broadly, Obviously they have catered
Speaker 9: significantly towards software, and there is just this inherent unknown
Speaker 9: of what the future of software is going to look
Speaker 9: like around A. But we think that a lot of
Speaker 9: that caution is already reflected in valuations for these publicly
Speaker 9: traded BDCs, and instead we do see room for software
Speaker 9: to reinvent itself too, and we just haven't seen this
Speaker 9: play out just yet, which is why what we're seeing
Speaker 9: in the market right now is actually a reflection of
Speaker 9: that sentiment, of that caution, but not a real deterioration
Speaker 9: and the fundamentals that's going to be a story for
Speaker 9: the next few years.
Speaker 2: Stephanie Aliaga of JP Morgan, thank you very much. Like
Speaker 2: coming up, Inflection CEO Matt Kinsella, join us. Tell us
Speaker 2: about the quantum economy. It's out of this world. That's next.
Speaker 2: This is Bloomberg Tech.
Speaker 4: From the front lines of the Iran conflict to the
Speaker 4: International Space Station. A new kind of arms race is
Speaker 4: heating up, and it isn't about traditional ballistics.
Speaker 3: It's about quantum.
Speaker 4: The ability to navigate without sacllite is no longer science
Speaker 4: fiction is a national security mandate. And Matt can sell
Speaker 4: a CEO of Inflection, the company deploy quantum clocks to
Speaker 4: navigate without GPS on Earth, joins us now because in
Speaker 4: a few days it was meant to be today weather
Speaker 4: has denied you. You're going to send up some of
Speaker 4: your technology to the International Space Station because we're updating
Speaker 4: quantum research in space.
Speaker 3: Why what is it giving people.
Speaker 10: Well, first of all, thank you so much for having me, Caroline,
Speaker 10: and let me tell you a little bit about Inflection,
Speaker 10: just because that'll help inform the answer. So Inflection is
Speaker 10: a quantum technologies company, and we create a suite of
Speaker 10: products all based on these quantum cores, and inside these
Speaker 10: quantum cores live millions of atoms, and we turn those
Speaker 10: atoms into all sorts of products, ranging from clocks to
Speaker 10: sensors like the one we're sending up into space, to computers.
Speaker 10: And the reason that matters is because they can do
Speaker 10: things that classical technologies can't do nor will ever be
Speaker 10: able to do. And so what we're doing is, in
Speaker 10: the case of sending this product up into space, is
Speaker 10: to replace some technology we put into space back in
Speaker 10: twenty eighteen.
Speaker 2: Called the Cold Atom Lab.
Speaker 10: And what that is doing is doing experimentation on quantum
Speaker 10: because you can actually experiment on quantum better in microgravity
Speaker 10: in space, and it's approving ground for being able to
Speaker 10: sense what's happening on the world's surface or under the
Speaker 10: surface with extreme precision, or sense what's happening around to
Speaker 10: other spacecraft in space. And the level of precision that
Speaker 10: we can bring with quantum is orders of magnitude bigger
Speaker 10: than what you can do with classical technologies.
Speaker 3: ISS NICE. It's role is changing.
Speaker 4: It is so so where next there's a proving ground
Speaker 4: for the tech's approving ground for where you put that tech.
Speaker 2: Correct.
Speaker 10: So in twenty eighteen, actually Christina Cook, the astronaut who's
Speaker 10: currently on Artemis two, installed our tech on the ISS
Speaker 10: and they've been working to make sure this technology works
Speaker 10: on the International Space Station, so a human in the loop.
Speaker 10: Next stop is to put what we call our quantum
Speaker 10: gravity gradiometer into a satellite, which we're working with NASA
Speaker 10: to do, and so we're taking it from research in
Speaker 10: space to an application in space. And what that quantum
Speaker 10: gravity gradiometer will do as it circles the Earth's orbit
Speaker 10: from a satellite is sense changes in gravity on the
Speaker 10: Earth's surface with extreme precision. And you can infer all
Speaker 10: sorts of interesting things by the way gravity changes. So
Speaker 10: you can infer the depletion of aquifers underneath the Earth's surface,
Speaker 10: you can see what kind of things are being built
Speaker 10: underneath the Earth's surface, sorts of very interesting use cases.
Speaker 2: Hey, Matt, go ahead and hold that up again, because
Speaker 2: Bloomberg Tech Executive producer Jackie Lopez wants to see it.
Speaker 2: I think it's really important to let's go back to
Speaker 2: space this this is not about putting the quantum computer
Speaker 2: into space. It's about putting the sensor into space. Go
Speaker 2: back to basics for our audience to explain that for
Speaker 2: the data inputs. Absolutely so.
Speaker 10: There are two broad technologies that quantum can create. One
Speaker 10: is called a quantum sensor and the other is called
Speaker 10: a quantum computer. Quantum computers are not yet useful. They
Speaker 10: will be very useful in the not two distant future,
Speaker 10: but quantum sensors are very useful today. And so what
Speaker 10: we do, it's the same underlying technology, the same componentry inside,
Speaker 10: but we can turn those atoms into extremely precise sensors
Speaker 10: to sense what's happening on the Earth's surface and the
Speaker 10: world around you. So in the case of what we're
Speaker 10: sending up into space, it's indeed a quantum sensor.
Speaker 2: Ed Matt real Quick, who's the launch provider who puts
Speaker 2: you to orbit?
Speaker 10: So we're on a SpaceX vehicle and then the spacecraft
Speaker 10: itself is made by Northwork Crummen and real.
Speaker 2: Quick, what's that like that experience is a customer the
Speaker 2: door on being opened to be able to get into orbit.
Speaker 2: It's incredible.
Speaker 10: I mean, we wouldn't be able to get this technology
Speaker 10: up unless that you know, the work that SpaceX and
Speaker 10: other folks are doing to make launches less expensive, and
Speaker 10: so our partners at nasav and have been wonderful and
Speaker 10: getting that all set up for us.
Speaker 4: Can I jump in and just aus very briefly from
Speaker 4: quantum clocks to what because everyone's like, when is there
Speaker 4: going to be a really useful quantum computer?
Speaker 3: IBM saying twenty twenty nine, is that your business model?
Speaker 10: So the business model is you know, you might say,
Speaker 10: what the heck does a clock have to do with
Speaker 10: a computer? They seem very different. Well, in quantum they
Speaker 10: really aren't. Because what we're doing is we're taking advantage
Speaker 10: of the quantum mechanical principles of atoms and then using
Speaker 10: those quantum mechanical principles and in with slight tweaks to
Speaker 10: what we're doing with lasers, can turn it into a
Speaker 10: clock or in more call it precise use cases, turn
Speaker 10: it into a compute. And so the clock is in
Speaker 10: many ways a mini version of the computer. Your question
Speaker 10: one will computers be useful. The timelines keep coming in
Speaker 10: and coming in in the announcement that Google made on
Speaker 10: QDA being here earlier and earlier, and QDA is the
Speaker 10: day that we can break modern encryption with a quantum
Speaker 10: computer getting pulled into twenty twenty nine. Our view is
Speaker 10: that quantum computers will start to be useful in the
Speaker 10: year twenty twenty eight, right, and that is at that
Speaker 10: we'll get into what cubits are. But when you can
Speaker 10: get to one hundred logical cubits, you can do interesting
Speaker 10: things with quantum computers.
Speaker 2: Oh, we know cubits. Matt Canseller, CEO of Inflection, it's
Speaker 2: great to have you on Bloomberg Tech. Thank you very much.
Speaker 2: That coming onlan a conversation with Niko Rosberg, Rosberg Ventures CEO.
Speaker 2: As he said, builders are gaining more control because of
Speaker 2: AI and with AI also of course former Formula one
Speaker 2: World champion. I'm really looking forward to this one. That's
Speaker 2: next halftime. This is Bloomberg Tech. Welcome back to Bloomberg Tech.
Speaker 2: This is what equity markets look right now, and it's
Speaker 2: a simple story where investors in the technology sector are
Speaker 2: trying to gauge this ceasefire situation with the war in Iran.
Speaker 2: Now's that one hundred is flat after a rally yesterday,
Speaker 2: Still there outperformance in chip stocks. A big story overnight
Speaker 2: was Amazon CEO Andy Jase putting out his annual shareholder
Speaker 2: letter very simply defending capital expenditures at two hundred billion
Speaker 2: dollars for this year, but also talking about the chip
Speaker 2: business Trainium two in particular twenty billion dollar run rate
Speaker 2: and Amazon's now ready to sell those chips out to
Speaker 2: third parties more. The stocks up almost four percent. There's
Speaker 2: a lot of pressure as well in software stocks, and
Speaker 2: like look at the worst performers, Palenteer, Workday, z Scaler.
Speaker 2: Those are big, high single digit declines. And as I'm
Speaker 2: reading the cell side notes, Caro, it's a pretty simple
Speaker 2: story as well, like that fear of AI disruption or
Speaker 2: AI rendering legacy software obsolete is impacting. In Palenti's case.
Speaker 2: That's kind of odd though, because like that is what
Speaker 2: their pitch is. AI's made them a.
Speaker 4: Lot better, and of course they're related to with the
Speaker 4: geopolitical environment as well. But edit's so interesting. Sephanie Aliaga
Speaker 4: just talking about the zero sum narrative. Let's talk about, well,
Speaker 4: the upside the AI infrastructure trade because it's getting a
Speaker 4: twenty one billion dollar shot in the arm. Meta core
Speaker 4: Weave have inked a massive new deal to supply a
Speaker 4: cloud capacity through twenty thirty two. Meanwhile, in video, of course,
Speaker 4: chips for everyone nearing a critical technical breakout and more
Speaker 4: than ten percent in the past six sessions. Let's bring
Speaker 4: in Blue Meg's Ryan for Stellica, And it's so interesting
Speaker 4: because a lot of the deal with core Weave and
Speaker 4: Meta is around Rubin architecture. So that's another good narrative
Speaker 4: for in video more broadly, Ryan, But talk us first
Speaker 4: about core Weave. It's down because it's related to well
Speaker 4: debt that might turn into equity, but it's another sign
Speaker 4: that AI infrastructure is strong.
Speaker 2: Yeah, absolutely, thanks for having me.
Speaker 11: I would say that the major thing I've heard from
Speaker 11: people is that this really reinforces that despite concerns about
Speaker 11: AI spending potentially slowing down at some point, there's no
Speaker 11: signs of that right now. AI spending remains extremely robust,
Speaker 11: and you have these major companies like Meta, like Amazon
Speaker 11: continue to hold very fast to their ambitious spending plants,
Speaker 11: which is probably going to be a real positive for
Speaker 11: these infrastructure providers over the longer term.
Speaker 2: You're out with a really important piece focus on the
Speaker 2: technicals around Video. And we're at a moment now where
Speaker 2: if you look at the trading in this stock, you
Speaker 2: might see a breakout from what has been a pretty
Speaker 2: narrow trading range. What's the data telling you, Yeah.
Speaker 11: So for about the past nine months or so in
Speaker 11: Video shares have really done basically nothing. They're almost flat
Speaker 11: over that period, despite some very strong earnings reports, despite
Speaker 11: like we were talking about before, still very strong indications
Speaker 11: about AI spinning going forward. But if you're looking at
Speaker 11: it purely from a technical level, we had a little
Speaker 11: bit of a scare last week or so when it
Speaker 11: dipped below some recent lows, which was perhaps an indication
Speaker 11: that the stock might be breaking down lower. But since
Speaker 11: then we've seen a pretty aggressive move higher and we're
Speaker 11: getting to a level I think it's one eighty five
Speaker 11: on the stock price where people are saying, if it
Speaker 11: holds this level, that really indicates if people are moving
Speaker 11: back into the stock, and that could be an endection
Speaker 11: that we could be poised to see a breakout higher,
Speaker 11: potentially back towards a two hundred level, back maybe even
Speaker 11: towards all time highs.
Speaker 2: The most rhym lastellca, thank you very much. That was
Speaker 2: kind of what's going on in public markets. I want
Speaker 2: to get back to private markets venture capital. It's the
Speaker 2: last day of the human X conference, where business venture
Speaker 2: startup leaders have been gathering to discuss achieving real world
Speaker 2: results from AI. One of the feature conversations included Rosvo
Speaker 2: Venture's CEO and former F one world champion Nico Rosberg
Speaker 2: alongside lovable CEO Antono Seka, with a focus on how
Speaker 2: AI is shifting more control into the hands of builders.
Speaker 2: Delighted to say that Nico joins us now here in
Speaker 2: San Francisco. Welcome to Bloomberg Tech. I mean you and
Speaker 2: I were reflecting off camera, like what it's been like
Speaker 2: in San Francisco for the last few days. Let's start
Speaker 2: with the conversation you had on stage. What was it
Speaker 2: that you kind of wanted to get across and what
Speaker 2: was it that you heard in response?
Speaker 12: Well, first of all, the speed of innovation here at
Speaker 12: the moment feels like it's even faster than driving a
Speaker 12: Formula one cards. Pretty incredible, pretty scary at times, even
Speaker 12: because especially, I mean it's anthropic, who's leading the charge
Speaker 12: at the moment and disrupting one vertical after another. So yeah,
Speaker 12: I mean it's impressive. And nevertheless, I think the value
Speaker 12: creation is going to be insane. So you cannot sit
Speaker 12: on the sidelines. You need to get involved, you need
Speaker 12: to invest, be part of it. But yeah, I mean
Speaker 12: interesting times.
Speaker 2: You have a portfolio that has around thirty five direct
Speaker 2: investments into all kinds of startups. Just on the Anthropic piece.
Speaker 2: Real quick on stage, I was with Mike Krieger and
Speaker 2: Thropic he leads the Labs team now, but was CPO
Speaker 2: and Rebecca Torrents, our colleague, wrote that that's the talk
Speaker 2: of human X. What Anthropic is doing mythos came out.
Speaker 2: What was your sort of interpretation of that.
Speaker 12: I was with a startup last night and they said
Speaker 12: to me, WHOA, We've just reduced our spend on all
Speaker 12: observability tools because now we have our age build agents
Speaker 12: with Claude code who do the observability in an automated
Speaker 12: way for us. Right, So that was another example of
Speaker 12: another space that Anthropic broke into just recently. That's kind
Speaker 12: of in the last days, you know, these things have
Speaker 12: been happening and it's very difficult to predict how far
Speaker 12: this is going to go, you know, and how much
Speaker 12: of the value anthropic and the other frontier models are going.
Speaker 2: To capture with time.
Speaker 4: Nico, you do things differently, and I'm interested as to
Speaker 4: what your philosophy is. You're someone who's bringing sort of
Speaker 4: the expertise and the European perspective here over into the
Speaker 4: West Coast. But also you have a fund of funds,
Speaker 4: you also have direct investing. How are you thinking about
Speaker 4: building out your exposure to the private side right now?
Speaker 12: Very very important is always you have to diversify, you know,
Speaker 12: That's that's essential, not only diversify across sectors, but also
Speaker 12: across time.
Speaker 2: So you do have to plan to deploy capital across.
Speaker 12: Time into the private markets, and that's what we're what
Speaker 12: we're trying to do because this is not going to
Speaker 12: be a straight upward trajectory here. It's going to be
Speaker 12: a very very bumpy ride. That's almost guaranteed. With the
Speaker 12: pace of this innovation. The leaders are constantly changing as well,
Speaker 12: every three months as a different leader, So I think
Speaker 12: it's yeah, it's very very important to diversify, but it's
Speaker 12: so important, especially to be involved in venture capital at
Speaker 12: the moment, because so much more of the value creation
Speaker 12: happens before going public in private markets and especially venture
Speaker 12: capital is perhaps the only way to get exposure, you know,
Speaker 12: to the likes of these frontier models and all the
Speaker 12: other things that are that are happening now. So it's
Speaker 12: a very very exciting time and I think huge potential
Speaker 12: for this asset class in the next years, And already
Speaker 12: the last two years have been incredible.
Speaker 4: I mean, nic keep dropping in the odd little idea
Speaker 4: around formula one and using that as some sort of
Speaker 4: descriptive factor. What's also descriptive maybe is that, like in
Speaker 4: Formula one, we have a lot of real leaders of
Speaker 4: the pack when it comes to VC. You have companies
Speaker 4: like Klein Perkins or like Thrive, like a sixteen Z
Speaker 4: with enormous new fundraisers, and then you have everyone else
Speaker 4: who's worried about liquidity, worried about being able to get
Speaker 4: money into.
Speaker 3: The LP's hands.
Speaker 4: How are you distinguishing between those funds to be able
Speaker 4: to allocate your fund into your fund of funds.
Speaker 12: Yeah, at the moment, it definitely looks like the winning
Speaker 12: strategies is to back those multi stage, large incumbent funds
Speaker 12: because they're capturing more and more of the value creation
Speaker 12: in this asset class. They are becoming bigger backing more
Speaker 12: of the winning founders. So it's really the power law
Speaker 12: is like exaggerating even more, it seems at the moment,
Speaker 12: and the performance is being concentrated more into these top
Speaker 12: funds out there, like even top ten, top twelve. That's
Speaker 12: really where you needed to be in the last couple
Speaker 12: of years. So we're pretty pleased with the strategy that
Speaker 12: we've been that we've been going after.
Speaker 2: I took a little bit about the technology in F one,
Speaker 2: if we can your former F one World champion in
Speaker 2: twenty sixteen, when you're retired, the powertrain already had an
Speaker 2: element of being hybrid, but the new regulations this year
Speaker 2: is smaller, lighter cars, active aero fifty fifty system, and
Speaker 2: everyone talks about that, the drivers, the principles, and then
Speaker 2: the fans, your your interpretation, your opinion you read on
Speaker 2: these new rags.
Speaker 12: Of course, if one is pursuing the technology that is
Speaker 12: most relevant to society, yes, so these engines are probably
Speaker 12: this power unit is probably one of the most efficient
Speaker 12: there is in the world. Fifty fifty PC battery power.
Speaker 12: That's of course a lot and also, as you know,
Speaker 12: the fuels are COEO two neutral biofuels, synthetic fuels, a
Speaker 12: mixture of that, so it's it's a COEO two neutral fuel.
Speaker 12: But of course there's a lot of criticism at the
Speaker 12: moment as well because you can see, like at the
Speaker 12: last race they go down the straight through a flat
Speaker 12: out bend and have to downshift after the bend whilst
Speaker 12: is still in the straight because their battery power switches
Speaker 12: off and they have time to get on. So of course,
Speaker 12: so of course that like from a spectator point of view,
Speaker 12: is a bit like that's a bit awkward when you're
Speaker 12: supposed to be going flat out with the highest performing
Speaker 12: Formula One car. What Nevertheless, I'm a bit more easy
Speaker 12: going on that because from my point of view, it's
Speaker 12: as long as there's great battles intra team, the other
Speaker 12: teams into the battle. You know, hopefully Ferrari can use
Speaker 12: this gap now to close up to Mercedes. McLaren was
Speaker 12: there already now in the last race. So if we
Speaker 12: get like a really cool battle there, then I think
Speaker 12: all the fans won't mind, you know, where the technology
Speaker 12: is and we'll just love and appreciate the racing and
Speaker 12: the battles, and what an amazing story we have. Nineteen
Speaker 12: year old Kimi Antonelli, the ultimate underdog, is leading this
Speaker 12: World championship three races in, you know, so that's wonderful.
Speaker 12: He has so many fans, even yesterday at the conference
Speaker 12: here in San Francisco at Human X, loads of Mercedes
Speaker 12: and Kimi Antonelli fans as I was as I was
Speaker 12: walking up on stage.
Speaker 4: So it's nice to see innovation storytelling sprinkling Hollywood.
Speaker 3: We appreciate it.
Speaker 4: Niko Rosberg of Rosberg Benure is great to have you
Speaker 4: on the show. Coming up, Medicare Navigation Platform Chapter close.
Speaker 3: There's one hundred million dollars in funding.
Speaker 4: We're gonna be talking to the CEO and one of
Speaker 4: its key investors, Oscar Uny.
Speaker 3: That's next. As Bluebotech Markets.
Speaker 4: Reacting to the latest headline regarding geopolitics, Israel says that
Speaker 4: it agrees to direct talks with Lebanon. In fact, the
Speaker 4: leader of Canada will support bring Hesbela under control as well.
Speaker 4: We understand this is as Israel had been warning once
Speaker 4: again to Lebanese residents.
Speaker 3: Just a few hours after.
Speaker 4: Ranium president stress the continued attacks in the country threaten
Speaker 4: upcoming ceasefire talks.
Speaker 3: The market.
Speaker 4: We've been worried about this, but now we understand that
Speaker 4: Israel says it will agree to direct talks with Lebanon. Therefore,
Speaker 4: maybe we get some support that Benjamin Netanya, who will
Speaker 4: indeed perhaps scale back those strikes, and market's rallied.
Speaker 2: Okay, we're going to go from those public markets to
Speaker 2: the private markets again. We have some funding. News Chapter
Speaker 2: an AI platform for the navigating the notoriously complex processes
Speaker 2: of the US Medicare system, as a one hundred million
Speaker 2: dollar series E round. Chapter's CEO, Kobe Bloomful Gantz is
Speaker 2: with us along with one of the investors, Ross Uvini,
Speaker 2: managing partner at XYZ Bench Capital, known for writing early
Speaker 2: checks to companies like Anderill, for example, but also like
Speaker 2: those types of companies that are closely linked to the
Speaker 2: government and government apparatus of this nation, and Medicare is
Speaker 2: something that if you look over the course of decade,
Speaker 2: it's trillions of dollars. You are trying to change how
Speaker 2: the system works and access that capital. What are you
Speaker 2: going to do with the one hundred million you raised?
Speaker 2: Thanks for having me.
Speaker 13: We are really focused on continuing to build the best
Speaker 13: products we can for seniors, for American retirees because it
Speaker 13: is the most underserved population in the US. So we're
Speaker 13: investing in a lot of AI technology. We're investing in
Speaker 13: new products to help people navigate Medicare and their healthcare
Speaker 13: rit large, and we're really excited about it.
Speaker 2: Let's do the basics. What is Chapter? What is Chatter do?
Speaker 13: I started the company a few years ago after seeing
Speaker 13: my parents struggle with the Medicare process. They received terrible
Speaker 13: guidance working with a local Medicare broker, and as I
Speaker 13: sort of peeled back the into how the ecosystem works,
Speaker 13: I was just appalled at how bad the incentives are,
Speaker 13: how bad the technology is.
Speaker 8: So we do it.
Speaker 13: Chapter is we are the only unbiased AI driven Medicare
Speaker 13: guidance platform. So when you need help signing up for Medicare,
Speaker 13: which every American senior needs, you call Chapter and we
Speaker 13: help you enroll in the right plan for you. We
Speaker 13: save people thousands of dollars a year when they enroll
Speaker 13: in Medicare, and we help them navigate the entire ecosystem
Speaker 13: throughout their Medicare journey.
Speaker 3: One hundred million dollars Series E.
Speaker 4: And whilst I want to go to you here because
Speaker 4: you have come on and again you're an existing institutional investor,
Speaker 4: our Goals Generation Investment Management has joined this particular round ross.
Speaker 4: What has made you so committed to Chapter Why this
Speaker 4: particular way of navigating healthcare?
Speaker 2: Well, it's really two things.
Speaker 14: One, as Kobe mentioned, everybody over sixty five in America
Speaker 14: is going to get Medicare, So everyone in the US
Speaker 14: is eventually going to be a Chapter a customer in
Speaker 14: that scale of business, like that opportunity, like that to
Speaker 14: the adventure scale business, and you want to be part
Speaker 14: of companies that are building at that level.
Speaker 4: Talk to that thesis though, why is every single American
Speaker 4: going to be using Medicare?
Speaker 14: Everyone over sixty five in the country is going to
Speaker 14: enroll in Medicare services because it is the best way
Speaker 14: to get healthcare for the agent population in the US
Speaker 14: and not just a point of fact. Chapter enables enables
Speaker 14: my mom my dad to make the best choice of
Speaker 14: where they should get their Medicare services. Further, Chapter has
Speaker 14: done a tremendous job in the last few years of growth.
Speaker 2: We grow over three x last year.
Speaker 14: One hundred million in revenue, and the reason that we
Speaker 14: keep pushing more money and more excitement into chapters because
Speaker 14: we see that growth continuing three and four x in
Speaker 14: subsequent years. And that's really just the tip of the
Speaker 14: iceberg of building out a solution for the entire US population.
Speaker 2: One hundred million in revenue. You know that's no small feet.
Speaker 2: You know there were headlines overnight Perplexities just hit five
Speaker 2: hundred million ARR. But look at the coverage that they get.
Speaker 2: What's your core competence? What is it that you and
Speaker 2: the team are really good at. It's a great question.
Speaker 13: I'm really proud of the team we have assembled. We've
Speaker 13: assembled some of the best technologists around. I think generally
Speaker 13: we focus on people who are really mission driven and
Speaker 13: who are exceptional at working with AI. So what we're
Speaker 13: really good at doing is structuring data, realigning incentives, and
Speaker 13: then operationalizing that in a really efficient way. Our entire company,
Speaker 13: our corporate headcount is about thirty people, and we've been
Speaker 13: able to grow at that scale with this headcount because
Speaker 13: of that ross.
Speaker 2: I've always found the PXYZ model really interesting. I'm maybe oversimplifying,
Speaker 2: but you write checks to companies that are going after
Speaker 2: the public sector in many ways, it's different to going
Speaker 2: after some startups that like may never need to have revenue,
Speaker 2: and you know, we can get into that a later date,
Speaker 2: But why does that present a real turn opportunity as
Speaker 2: an investor to go after a startup whose dollars come
Speaker 2: from one arm of government or another.
Speaker 14: Yeah, And so our focus are XYZ has been largely
Speaker 14: on building and supporting companies that are selling to the
Speaker 14: government because it is the largest spender in the entire world.
Speaker 14: So areas of defense spending is one of the largest
Speaker 14: spends in the entire world, and that's where we backed
Speaker 14: companies like Andrel. Areas of healthcare spend and medicare are
Speaker 14: one of the largest spends in the entire world. And
Speaker 14: so that's why we backed companies like Chapter And when
Speaker 14: those companies are winning, when they're capturing hundreds of millions
Speaker 14: and then billions of dollars, we dollar concentrate into those businesses.
Speaker 2: And we get the right to do that because we've.
Speaker 14: Been there since the beginning. And so that's our economic approach.
Speaker 14: Find those exceptional people in those businesses.
Speaker 4: Kobe, You're making it easier for people to try and
Speaker 4: navigate a very complex system. But the narrative we hear
Speaker 4: time and time again on the show at the moment
Speaker 4: is abundance of AI being able to bring healthcare to
Speaker 4: all and make you know what is your vision for
Speaker 4: healthcare in the US looks like in five to ten
Speaker 4: years time.
Speaker 13: I want every American who's navigating Medicare and navigating healthcare
Speaker 13: at large to a understand what they are buying, what
Speaker 13: is their health coverage, and to be able to access
Speaker 13: their healthcare in the simplest way. There's no reason people
Speaker 13: should have to read hundreds of pages of documents and
Speaker 13: go through tons of emails and faxes and phone calls
Speaker 13: just to understand what they've already signed up for. And
Speaker 13: so really we're trying to create a more equitable healthcare system,
Speaker 13: a more efficient healthcare system, and one that drives down
Speaker 13: the costs to the system and creates much better care
Speaker 13: and coverage for every American.
Speaker 4: Kobe Blumenfeld Gantz, CEO of Chapter Great to have you
Speaker 4: with us, and Ross Fabini, managing partner at XYZ and
Speaker 4: long term investor, thank you coming up open AI as
Speaker 4: pausing Stargate project in the.
Speaker 3: UK as it reigns in some of its ambitious spending.
Speaker 3: We'll have the details next. This is BlueBag Tech time
Speaker 3: now for Talking Tech and first Up.
Speaker 4: Samsung is planning a four billion dollar outlay in to
Speaker 4: build a chip packaging plant in Vietnam, continuing to expand
Speaker 4: its country's largest foreign investor.
Speaker 15: Now.
Speaker 4: The investment will be implemented in several phases, with the
Speaker 4: first consisting of a two billion dollar outlay, according to sources,
Speaker 4: and the company has invested in fact more than twenty
Speaker 4: three billion in Vietnam, creating ninety thousand jobs. Because Amazon
Speaker 4: CEO and Jasse is doubling down on customs Silicon, revealing
Speaker 4: the AWSS chip business now has an revenue run rate
Speaker 4: exceeding twenty billion dollars, growing triple digit percentages year on year.
Speaker 4: An Amazon's annuel shareholder letter, Jase noted that the division
Speaker 4: sold its chips externally by in video or IMD and
Speaker 4: that figure, if it happened, would likely hit fifty billion dollars.
Speaker 4: And Open Ai said it is pausing its Stargate AI
Speaker 4: infrastructure project in the UK, citing regulation and the cost
Speaker 4: of energy.
Speaker 3: Now, the company said they will continue to explore Stargate.
Speaker 4: UK and we've forward when the right conditions enable the
Speaker 4: long term infrastructure investment.
Speaker 8: Ed.
Speaker 2: Okay, let's stick with this story and bringing Bloomberg Tech
Speaker 2: editor showing a ghost out of London, and you know,
Speaker 2: what's the reporting here, Like, let's get into the reasons
Speaker 2: why they're doing the pause, and I guess also a
Speaker 2: sense of the scale that Stargate had hoped to achieve
Speaker 2: in the UK.
Speaker 8: Yeah.
Speaker 15: I mean, firstly, it's a little hard to say exactly why.
Speaker 15: The reasons given by open ai was the high cost
Speaker 15: of energy in the UK, which is true. It's one
Speaker 15: of the most expensive companies for energy costs in Europe.
Speaker 15: So that's certainly one reason that may be causing delays
Speaker 15: to the plans. And the other reason, you know, without
Speaker 15: much further definition, was regulation that might be around, you know,
Speaker 15: the difficulties of getting planning permission, et cetera to get say,
Speaker 15: data center infrastructure up and running. So Stargate, as your
Speaker 15: viewers probably know, is open aiy's large, many multiples of
Speaker 15: billions of dollars project to build data center infrastructure all
Speaker 15: over the world, beginning with the US. It's got the
Speaker 15: first data center CAMPRA in the US, but expanding internationally,
Speaker 15: so the UK Norway and other regions as well.
Speaker 2: But it's sounding like this UK project is on hold.
Speaker 4: I mean that cannot be great news for Kirstarma and
Speaker 4: the government in terms of growth. I mean, how are
Speaker 4: they thinking about navigating this because there is end Scale,
Speaker 4: which is a more local builder of this infrastructure.
Speaker 15: Yeah, I think it does raise a broader question about
Speaker 15: how successful our infrastructure build out is going to be
Speaker 15: out of the UK. You know, let's say predominantly it
Speaker 15: is about energy costs. It's not just going to be
Speaker 15: open AI that's impacted by that, but any local data
Speaker 15: center provider like nd Scale, which is the local partner
Speaker 15: that OpenAI had struck this deal with n Scale, has
Speaker 15: other projects around the UK, and so potentially that that
Speaker 15: raises questions about how quickly these other data center projects
Speaker 15: are going to get up and running. The UK and
Speaker 15: the Labor government has been very proud of lots of
Speaker 15: these investments that have been announced, but you know, I
Speaker 15: think we can see that the reality maybe that not
Speaker 15: all of the not all of the investments, not all
Speaker 15: of the infrastructure promises will materialize.
Speaker 4: Bloomberg's showna gosh, thank you for bringing us up to
Speaker 4: speed on that particular infrastructure build out and meanwhile, well
Speaker 4: that is.
Speaker 3: It for this edition of Bloomberg Tech Ed.
Speaker 4: It's interesting that there's a big piece on the Bloomberg
Speaker 4: Today about G forty two and continuing to build out
Speaker 4: in terms of infrastructure despite the Iranian conflict, whereas the
Speaker 4: energy prices hit the UK.
Speaker 2: Yeah, it's a must read and it's based on some
Speaker 2: important reporting from Tom Jarles Martberg. And also just what
Speaker 2: shown has said. How often is a project announced and
Speaker 2: then several months later either scaled back or changed happens
Speaker 2: all the time at the moment recap on the podcast
Speaker 2: like a really packed show, a lot of news, a
Speaker 2: lot of insightful and important conversations as well. You know
Speaker 2: where to find the pod so on the Bloomberg Terminal,
Speaker 2: source of online on Apple, Spotify, and iHeart from New
Speaker 2: York and San Francisco. This is Bloomberg Tech