Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From Bahard, where innovation, money and power coll in Silicon
Speaker 2: Valley NBN.
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed lud.
Speaker 4: Love live from New York. This is Bloomberg Technology coming up.
Speaker 5: Adobe drops after a disappointing annual sales outlook as investors
Speaker 5: fear AI startup competition. Our service Titan goes public shares
Speaker 5: indicated to lock it at the open. We speak with
Speaker 5: the software company's co founders and IPO in waiting. Klana
Speaker 5: joins us and the CEO discussing how it's all in
Speaker 5: on AI. For first quick check on these markets. We're
Speaker 5: down three tenths of a percent as we await the
Speaker 5: opening trades in certain IPOs. At the moment, the moon
Speaker 5: music is a little bit lower. We had some of
Speaker 5: those overall inflationary numbers coming from the product size of
Speaker 5: the equation coming in a little bit hotter. Maybe that
Speaker 5: just dampens the spirits, but remember we are so close
Speaker 5: to record highs that we met yesterday.
Speaker 4: Just maybe a bit of.
Speaker 5: Profit taking move on from the nasack to some individual movers,
Speaker 5: and we have got a key points drag in Adobe.
Speaker 4: It is the worst performer when you're looking at.
Speaker 5: The Nasdaq one hundred in terms of dragging us Ler
Speaker 5: some thirteen percent worst day sins back to March when
Speaker 5: it had its underwhelming numbers. Then fast forward to today
Speaker 5: and that after the bell yesterday, they really signaled that
Speaker 5: the AI inflection point isn't there yet. We're still seeing
Speaker 5: revenue coming in and about eleven or thirteen percent the
Speaker 5: guide I'm looking at in video on the downside of
Speaker 5: by one and a half percent. Look, it's interesting that
Speaker 5: it's pushing back against anxiety that maybe it's pulling back
Speaker 5: from China, taking to social media, in fact, the platform
Speaker 5: Wabo to emphasize that the significance of the Chinese market
Speaker 5: is still there despite the US trade curbs and the
Speaker 5: fresh Chinese antitrust investigation. In fact, Bloomberg reporting that the
Speaker 5: chip Giant is expanding its research capabilities in China, adding
Speaker 5: hundreds of staff to focus on autonomous driving technologies. Let's
Speaker 5: bring in roombags, Peter Elstrom, and this is notable. They're
Speaker 5: pushing back against that worry and in fact beefing up
Speaker 5: in China.
Speaker 4: It seems like, yeah, that's exactly right.
Speaker 6: Now.
Speaker 3: There are a lot of crazy rumors online in China,
Speaker 3: just like there are in the United States and elsewhere.
Speaker 3: But this got serious enough that Nvidia felt like they
Speaker 3: had to respond and just clarify. They're continuing to deliver
Speaker 3: products and services into China, and what our sources have
Speaker 3: told us is they're expanding quite a bit in China.
Speaker 3: Of course, the company has been growing by leaps and bounds,
Speaker 3: and they're expanding in many different countries, but what we've
Speaker 3: heard is that in China they're expanding. They should go
Speaker 3: from about three thousand employees at the end of last
Speaker 3: year to about four thousand employees at the end of
Speaker 3: this year. As you alluded to, specifically, they want to
Speaker 3: expand in the autonomous driving area. China, of course, is
Speaker 3: the biggest auto market in the world. It's also very
Speaker 3: important for some of these cutting edge technologies like EV's
Speaker 3: autonomous driving, etc. So Invidia can't sell its most advanced
Speaker 3: AI chips into China, but they do still want to
Speaker 3: invest in the market, and they want to invest in
Speaker 3: some of these growth areas like automobiles, and.
Speaker 5: This has been an ever expanding area of new names
Speaker 5: getting into the EV space over in China. Just what
Speaker 5: are the regulations, is it far easier to be putting
Speaker 5: autonomous driving onto the roads. There's certainly that's something that
Speaker 5: Elon Musk has signaled.
Speaker 3: Yeah, the government certainly has been supportive of some of
Speaker 3: these new technologies. The EV market there is booming. You
Speaker 3: have companies, domestic players like Huawei moving very aggressively into
Speaker 3: this space, providing the kinds of technologies that the car
Speaker 3: companies need to be able to expand in that market.
Speaker 3: So in Vidia wants to be present in that market.
Speaker 3: Also very importantly, they're forging relationships with important companies there.
Speaker 3: They have a presence on the ground. They're expanding their
Speaker 3: headcount as we talked about, to sort of signal that
Speaker 3: they are supporting the Chinese market. They were able to
Speaker 3: sell advanced AI chips in the past. After a couple
Speaker 3: of rounds of X four controls from the Biden administration,
Speaker 3: they had to pull back on selling those most advanced
Speaker 3: AI chips. But Jensen Wong, the CEO, has been quite
Speaker 3: vocal that he'd like to be able to sell as
Speaker 3: much as he can into the market provided that the
Speaker 3: regulations come around. So he's certainly investing in the market
Speaker 3: right now with a view to the long term.
Speaker 5: How good is that from a business perspective when we
Speaker 5: have so much uncertainty weighing over US Chinese relations.
Speaker 4: I mean, we do see well, it.
Speaker 5: Seems as though Trump is extending the honive branch of
Speaker 5: an invitation to Sheed to come over for the inauguration.
Speaker 5: But more broadly, it feels like tit for tap is endless.
Speaker 3: Yeah, it does look like that. When you look at
Speaker 3: the dynamics between Washington and Beijing right now, it does
Speaker 3: not look promising. There's been a lot of tensions in
Speaker 3: the past. Of course, the one thing that the Republicans
Speaker 3: and the Democrats can agree on is that they want
Speaker 3: to get tougher on China. So it seems like it's
Speaker 3: heading in that direction. But remember just ten years ago
Speaker 3: you had companies that were investing in China. The relationship
Speaker 3: between the two countries was very strong. And all the
Speaker 3: these companies want to do is make money. They want
Speaker 3: to invest in the market, and they want to grow
Speaker 3: as much as they can. So I think a company
Speaker 3: like in Video wants to position itself so that it's
Speaker 3: able to capitalize if the market opens up. Right now again,
Speaker 3: it gets about fifteen percent of its revenue from China,
Speaker 3: so it's not small, but they can't sell their highest
Speaker 3: end chips, their most profitable chips right now. Instead they're
Speaker 3: selling those into the hyperscalers like Microsoft and open Ai,
Speaker 3: Google and Amazon. But long term they'd like to be
Speaker 3: able to sell as many of them as they can,
Speaker 3: that includes the Chinese market.
Speaker 5: He's astron, thanks so much for the breakdown. Let's just
Speaker 5: stick a little bit more with China because it has
Speaker 5: been signaling further stimulus measures.
Speaker 4: We're including raising the.
Speaker 5: Budget deficit ratio in twenty twenty five. All of this
Speaker 5: is about maintaining economic growth, some sort of stability that
Speaker 5: the market has been doubting of late. Let's discuss us
Speaker 5: China and indeed the economic outlook there. Empower Chief investment
Speaker 5: Strategists Martin Norton is here with us, and what's so
Speaker 5: interesting is your view on valuations in China, opportunities to
Speaker 5: be investing in China in this context?
Speaker 4: Is it right for investment?
Speaker 7: Well, it's a critical question here. Really, the argument for
Speaker 7: China and China big tech in particular, is a valuation argument.
Speaker 7: When you take a look at big tech and the
Speaker 7: types of companies that you have there, very strong competitors,
Speaker 7: very strong balance sheets, shareholder friendliness, strong earnings, and very
Speaker 7: low valuations. In a world in search of low valuations,
Speaker 7: that's attractive. But of course you don't get those low
Speaker 7: valuations without some headwinds and or headwinds galore in China.
Speaker 7: And of course that's on the geopolitical fund, but it's
Speaker 7: also on the economic front, whether you're looking at the
Speaker 7: property considerations or just looking at consumer demands. So there
Speaker 7: are a lot of considerations that I think would give
Speaker 7: investors pause. The upside is that there's a margin of
Speaker 7: safety that can cover that. So we wouldn't suggest that
Speaker 7: investors pile all their assets into China, but we would
Speaker 7: argue that the valuation opportunities can calling enough that maybe
Speaker 7: some exposure would make sense.
Speaker 5: Well, then you compare and contrast to the valuation lack
Speaker 5: of opportunity here in the US, I'm looking at a
Speaker 5: Nvidia trading at forty seven times let's call it future earnings.
Speaker 5: We've got a three point three trillion dollar market cap.
Speaker 5: The margin for error, they're very, very small when you're
Speaker 5: considering China.
Speaker 4: That's I mean, that's exactly right.
Speaker 7: So what you have in the US is kind of
Speaker 7: a a yin yang with what you see in China.
Speaker 7: So of course you have very fundamentally strong companies, you
Speaker 7: have a strong economy, and you have some potential you know,
Speaker 7: geopolitical concerns, but nowhere near what you're seeing in China.
Speaker 4: And yet the valuation.
Speaker 7: Argument isn't there. So if we're taking a look just
Speaker 7: over the course of twenty twenty four and we're looking
Speaker 7: at the mag seven, we saw a price to estimated
Speaker 7: earnings at the start of the year of around thirty five,
Speaker 7: and to date it's around forty. That's not extreme, it's
Speaker 7: not at the extreme levels that we've seen over the
Speaker 7: past five years, but it's certainly above that five year average,
Speaker 7: and it just means that it's going to take a
Speaker 7: lot more to supplies investors on the upside for there
Speaker 7: to be a positive reaction, and we've seen that over
Speaker 7: the course of this year, most notably in the summer
Speaker 7: when in Video largely beat expectations, but the market's sold off.
Speaker 8: So I think that just.
Speaker 7: Takes a lot of maybe the access return feel out
Speaker 7: of these names.
Speaker 4: Look at Adobe case in point.
Speaker 5: Today they managed to deliver on this fiscal quarter, but
Speaker 5: the forward looking forecast not living up to expectations and
Speaker 5: it's drags significantly lower. I'm interested in the Alphabet managing
Speaker 5: to reach the new heights.
Speaker 4: I don't want to go so much into individual names,
Speaker 4: but from an.
Speaker 5: Anti trust perspective, all were putting that to the backside.
Speaker 5: Are we not worried so much about the power the
Speaker 5: domination of these Max sevens.
Speaker 7: Well, it's an interesting question because the antitrust and really
Speaker 7: the regulation considerations around big tech have been something of
Speaker 7: an overhang for these companies for quite some time, and
Speaker 7: now we're starting to see that come to the four
Speaker 7: a bit more. I think when we're taking a look
Speaker 7: at Alphabet and we're looking at some of these considerations
Speaker 7: on the regulation or anti trust funt in particular, there
Speaker 7: are still some unknown, some challenges that will come about,
Speaker 7: you know, as these companies kind of navigate exactly how
Speaker 7: you know they're going to play out with the antitrust
Speaker 7: and what steps they're going to actually take. I don't
Speaker 7: think that's necessarily clear, And in the meantime, we still
Speaker 7: have a very strong, fundamentally healthy company that looks to,
Speaker 7: you know, accelerate some of the opportunities from AI.
Speaker 4: Look, you're helping.
Speaker 5: Oversee fifty seven billion dollars in assets under management Malta.
Speaker 5: I'm interested therefore, where you do see the risk reward
Speaker 5: right right now? Is it about diversifying broadening out from
Speaker 5: MAG seven at this moment?
Speaker 7: Well, listen, I mean, I think it's hard to step
Speaker 7: away from MAG seven most obviously because it represents such
Speaker 7: a large part of the overall market a third of
Speaker 7: every dollar and the S and P five hundred is
Speaker 7: going to these names, so hard to diversify away from
Speaker 7: them completely. And yet at the same time they're all
Speaker 7: really keying off AI and as we've talked about, there
Speaker 7: isn't as much margin of safety. So as we head
Speaker 7: into twenty twenty five, our outlook cause for balance over conviction,
Speaker 7: and the way to play that, we think is maybe
Speaker 7: to have just kind of a modest underwe to some
Speaker 7: of these maxim and names or you know, the biggest
Speaker 7: companies in the market cap, and then add in some
Speaker 7: of these small cap areas that have more relative value
Speaker 7: in their corner and also have some tail ones. When
Speaker 7: we start to think about Trump tax policy or when
Speaker 7: we're thinking about potentially lower rates over the course of
Speaker 7: the next.
Speaker 5: Year, and you mentioned rates, wherein what ultimately the stacks
Speaker 5: should you be From an asset class perspective, Is it
Speaker 5: all about equities? Is it worth going into the credit
Speaker 5: side of these tech names?
Speaker 7: Well, it's interesting. I think when we're taking a look
Speaker 7: at where rates are headed, the expectation earlier in the
Speaker 7: year was that we were going to see potentially, you know,
Speaker 7: falling rates in a meaningful fashion over the next you know,
Speaker 7: we call it twelve months. But as the economy has
Speaker 7: come in a lot stronger, and as the market grapples
Speaker 7: with what Trump policies might look like, I think the
Speaker 7: expectation is still there for lower rates, but maybe not
Speaker 7: quite to the same degree as people had thought previously.
Speaker 7: So when we're looking at the fixed income versus equity trade,
Speaker 7: I mean, yields are very attractive, but we're seeing this
Speaker 7: as more of a croup clipping year and less of
Speaker 7: a total return year in fift income. We're actually expecting
Speaker 7: lower more matter re terms on the equity side too,
Speaker 7: so in the sense of and you know, kind of
Speaker 7: returning to that femal balance we call it for a
Speaker 7: year for balance. On an athic class perspective as well.
Speaker 5: What you're not expecting another one hundred percent increase on
Speaker 5: NVIVIA for the year. Martin Norson, It's so good to
Speaker 5: have time with you, empowered chief investment strategist, appreciate it.
Speaker 4: Home service software Business Service Titan hits.
Speaker 5: The public markets what could be the last major USIP
Speaker 5: of twenty twenty four.
Speaker 4: Shares indicated to jump.
Speaker 5: To one hundred and nine dollars after they were priced
Speaker 5: at seventy one dollars. Service Titan CEO Are Medesian's with
Speaker 5: us President Vahey Kazoo and is with us as well.
Speaker 4: They are joining us in the NASDAC.
Speaker 5: I mean, the indications are for a whopping jump in
Speaker 5: the share price.
Speaker 3: Aarrah.
Speaker 4: How do you feel on this day?
Speaker 9: We're very excited for this date. It's an important day
Speaker 9: for a company, but more importantly, this is a historic
Speaker 9: day for the incredible industry that we serve. We think
Speaker 9: of this as the National Day of the Trades, and
Speaker 9: we celebrate and honor all the hard work and soult
Speaker 9: of the earth contractors that work so tireless see to
Speaker 9: serve their communities.
Speaker 4: By I mean, this is a personal story. Both of
Speaker 4: you had fathers, immigrant fathers.
Speaker 5: Coming into the nicest states as contractors. As pommers, you're
Speaker 5: solving their problems. How differentiated is you're offering from a
Speaker 5: technology perspective.
Speaker 2: Well, we like to think that we provide a business
Speaker 2: in a box that provides an end to end solution
Speaker 2: that gives you anything you need to run a successful
Speaker 2: trades business. And when we saw growing up, we saw
Speaker 2: the struggle that our parents had running the back office
Speaker 2: shoe boxes full of receipts, we knew we had to
Speaker 2: do something. And so that's our big differentiation is it's
Speaker 2: an all in one, all under one roof solution.
Speaker 1: For this industry.
Speaker 5: We can see the team based behind you. You're serving
Speaker 5: one hundred thousand plus contractors. We can now see that
Speaker 5: you've got about US seven billion dollar valuation when you
Speaker 5: were pricing, it's going to be more than that at
Speaker 5: the open Arah, Is there a concern that you left
Speaker 5: money on the table that you could have raised more
Speaker 5: than six hundred and twenty five million.
Speaker 9: What we're focused on are things that we can control.
Speaker 9: Most importantly, that's taking care of our customers, delivering success
Speaker 9: for them, and that happens to actually drive our own
Speaker 9: financial success. For us, this is our life's work. We've
Speaker 9: put over a decade into building this business. We think
Speaker 9: about this business for years and decades to come, and
Speaker 9: we're just excited for this next chapter in our journey
Speaker 9: where we get to partner with long term investors who
Speaker 9: want to support that journey with us.
Speaker 5: Ba Hey, what is in control is your control of
Speaker 5: the companies? You remain basically majority shareholders from a voting
Speaker 5: perspective with a class B by Hey, Therefore, what do
Speaker 5: you allocate this money raised into?
Speaker 4: Where do you push to expan the business?
Speaker 9: Sure?
Speaker 2: So, our mission is to build the operating system for
Speaker 2: the trades, and that's our number one priority. The that
Speaker 2: we're raising today is going to go towards primarily continue
Speaker 2: to evolve the product and making sure that this industry
Speaker 2: is not left behind from a technology perspective like our
Speaker 2: parents were. We're growing up.
Speaker 5: Okay Ara, just spell out what technological innovation you can
Speaker 5: now present and then forward plans. I mean, how does
Speaker 5: this innovate? Is it about talent you bring on? Is
Speaker 5: about integrating general Todai? Where does the product go from here?
Speaker 9: It's interesting that you mentioned Ai. I think it's a
Speaker 9: little bit almost ironic that such a blue collar industry
Speaker 9: has such big applications for AI, and this is not hype,
Speaker 9: this is already reality today. Service Titan already offers three
Speaker 9: AI based products for things like optimizing how contractors do marketing,
Speaker 9: optimizing and automating how they do scheduling and dispatching, and
Speaker 9: ultimately also improving the level of service that they provide
Speaker 9: their own customers that our customers, the contractors are already
Speaker 9: adopt in utilizing.
Speaker 5: The team is having fun behind you. It's good to see.
Speaker 5: I'm interested in you said these long term investors that
Speaker 5: you're now going to have the institutional investors come on board,
Speaker 5: but a lot of people keep the overall exposure. What
Speaker 5: happens with iconic growth, what happens with some of the
Speaker 5: best ser ventures.
Speaker 4: In the TPGs.
Speaker 5: Do you think that this is them exiting more fully?
Speaker 4: How do you see your investor base changing?
Speaker 2: Yeah, I mean you have to ask them. As far
Speaker 2: as we're concerned, we're focused on the mission and bringing
Speaker 2: on a new family of long term shareholders that we
Speaker 2: hope to deliver a similar level of success as we
Speaker 2: did our original batch that believed in this. We take
Speaker 2: the trust very seriously and we intend to be great
Speaker 2: stewards of their capital as we deploy it to create
Speaker 2: more opportunities for our customers.
Speaker 5: I'm going to go a slightly different direction here, but
Speaker 5: you are from parents of immigrants. You're thinking about service,
Speaker 5: seeing the contractors out there in the United States, what
Speaker 5: does your client base look like in the next administration
Speaker 5: in twenty twenty five.
Speaker 9: You know, our customers have thankfully thrived through all kinds
Speaker 9: of macroeconomic situations, through all kinds of administrations, and it's
Speaker 9: simply because the work that they do is so critical.
Speaker 9: It's so essential. When your air conditioning isn't working in
Speaker 9: scorching summer heat wave, or your heater goes out in
Speaker 9: dead of winter, or your plumbing breaks down right before
Speaker 9: your Thanksgiving family gathering, you have to get that fixed,
Speaker 9: and get that fixed immediately. And our customers are those
Speaker 9: unsung heroes that often fly across town, sometimes in the
Speaker 9: middle of the night, to take care of the communities
Speaker 9: that they serve.
Speaker 5: Who's been serving you in this ibo are Goldman, Sachs,
Speaker 5: Woman Stanley Wells, Fargo City Group, ten other banks have
Speaker 5: been working on the deal. I ask a tough question, Vaje.
Speaker 5: But if your shares do pop by at one point
Speaker 5: indicated more than one hundred percent higher.
Speaker 4: Do you think they've done a good job or a
Speaker 4: bad job.
Speaker 2: We've been incredibly grateful to the partners that we've had
Speaker 2: throughout this process. As you know, this is our first
Speaker 2: time doing this and so having people that we trust
Speaker 2: around the table shepherding us through the process has been
Speaker 2: really great. And for us, it doesn't really matter where
Speaker 2: the price ends today. We're focused on the long term
Speaker 2: and we really care about is building a generational business.
Speaker 5: At the moment, the business is loss making, so Ara,
Speaker 5: that going to change into twenty twenty five.
Speaker 9: We're grateful to be cashful positive and have been cashful
Speaker 9: positive for the several past quarters, and that puts us
Speaker 9: in control of our destiny and that's what allows us
Speaker 9: to continue to invest in the success of our customers,
Speaker 9: which is what's ultimately going to drive our own success.
Speaker 9: The same thing that has gotten to this point is
Speaker 9: the same thing that is going to get us towards
Speaker 9: this mission of building the operating system for the trades.
Speaker 5: Come back as you continue to service there and see
Speaker 5: the growth Service Titan CEO, Ara Medessi, and it's great
Speaker 5: to speak with you, President of our Hey Kazuyan, thank
Speaker 5: you very much, indeed of you as we await that
Speaker 5: first opening trade. Meanwhile, Meta got to talk about its
Speaker 5: donation one million dollars to Donald Trump's inaugural fund. We'll
Speaker 5: bringing the details.
Speaker 4: This is Bloomberg Technology.
Speaker 5: Google Samsung just unveiling a joint push into mixed reality,
Speaker 5: introducing a headset and glasses version of Android in a
Speaker 5: bid to rival Apple and Meta in that space.
Speaker 4: Now, the new Android will allow a range of.
Speaker 5: Companies to design their own extended reality devices, both headsets
Speaker 5: and lightweight glasses, while also taking advantage of the latest
Speaker 5: AI advances too. Meanwhile, China's Instagram style app Sha Hongshu
Speaker 5: is on track to double profits to more than a
Speaker 5: billion dollars in twenty twenty four, ahead of the potential IPO. Then,
Speaker 5: the app took off among younger Chinese during the pandemic
Speaker 5: and experienced wrapping growth, partly at the expense of e
Speaker 5: commerce leaders Ali Baba and JD dot Com. And as
Speaker 5: we talk about a Chinese rival to Instagram, let's bring
Speaker 5: it home to Meta here because it's just donated one
Speaker 5: million dollars to President elect Donald Trump's inorgal fund. It's
Speaker 5: part of an effort it seems to build a positive
Speaker 5: relationship with the administration after pretty tense history. I mean
Speaker 5: Mertz Kurt Wagner joins us now. First of all, only
Speaker 5: one million, This is but a drop in the bucket.
Speaker 4: Of what Meta could afford. But it's a signal.
Speaker 10: Here, right, This is symbolic. Right, This is not about
Speaker 10: the number of dollars that are going to this fund.
Speaker 10: It is the signal from Meta and CEO Mark Zuckerberg
Speaker 10: that they are supporting the incoming president.
Speaker 3: Right.
Speaker 10: And we have seen Zuckerberg kind of move in this
Speaker 10: direction over the last couple of months. He has reached
Speaker 10: out to Trump on the phone. He had dinner, as
Speaker 10: you remember, Caroline at mar Lago with the President elect
Speaker 10: Trump right before Thanksgiving. So this is just a continuation
Speaker 10: of sort of that signaling that the company wants to,
Speaker 10: you know, build a relationship and get in his good graces.
Speaker 5: And a lot is on the line when we think
Speaker 5: of a potential ban of TikTok here in the United States,
Speaker 5: when we're thinking of there were even threats at one
Speaker 5: point that you know, he really had a real felt
Speaker 5: like focus on Mark Zuckerberg himself. But ultimately Where does
Speaker 5: that then take us, because take us back to the
Speaker 5: context where we left the last administration.
Speaker 10: Yeah, it was not that long ago that you know,
Speaker 10: candidate Trump was on the trail talking about how Facebook
Speaker 10: was the enemy of the people that Mark Zuckerberg, you know,
Speaker 10: suggesting perhaps he'd even tried to put him in jail
Speaker 10: over what had happened during the twenty twenty election. So
Speaker 10: this is a pretty striking, you know, change in relationship
Speaker 10: for those two. I think when you look at what
Speaker 10: is Meta had to gain. Obviously, you know, perhaps Mark
Speaker 10: Zuckerberg is just trying to carry some personal favor, but
Speaker 10: also for his company. We're not entirely sure what Trump
Speaker 10: and his administration are going to do around tech regulation, right,
Speaker 10: and if you are Meta, the last thing you want
Speaker 10: is to have all of your new AI products, you know,
Speaker 10: heavily regulated, the metaverse heavily regulated. And so the more
Speaker 10: that I think he comes in and you know, builds
Speaker 10: that relationship with Trump, the hope is that it will
Speaker 10: be returned in some type of favorable pathway for all
Speaker 10: of these products that Meta is building.
Speaker 4: How do employees feel about it? I don't know.
Speaker 10: I feel like, you know, Trump is such an unpredictable
Speaker 10: person that it's you know, all of these relationships. It's like,
Speaker 10: on the one hand, it's a smart, perhaps business move
Speaker 10: by by Mark Zuckerberg. I think people feel differently in
Speaker 10: twenty twenty four than they did the first time he
Speaker 10: showed up in twenty sixteen, when we saw employees start
Speaker 10: to really like push back and you know, complain internally.
Speaker 10: I just think people are maybe they know what to
Speaker 10: expect this time around, at least they think they do.
Speaker 10: So we're not definitely seeing that pushback that we had before,
Speaker 10: But I think a lot of that is because, you know,
Speaker 10: we don't know what this is going to look like
Speaker 10: long term. We still haven't gotten into inauguration yet, so
Speaker 10: at this point it's just you know, initial reach out.
Speaker 5: Co Wagner, so great to have you. Thank you on
Speaker 5: all things Meta. Meanwhile, coming up, we get a read
Speaker 5: on the consumer this shopping season.
Speaker 4: Clan a CEO is joining us.
Speaker 5: It's a Blue Med Technology. Welcome back to Brumo Technology.
Speaker 5: I'm Karen Hide in New York. Let's get a quick
Speaker 5: check on these markets because look, the NASTAC is coming
Speaker 5: off of the world of the record highs that we
Speaker 5: saw yesterday. But we focus in on what's happening with
Speaker 5: crypto at the moment, because Bitcoin just up three ts
Speaker 5: of percent, still risk on there, one hundred and one thousand,
Speaker 5: let's call it one hundred and two riot platforms interestingly
Speaker 5: getting a new activist investor, Starboard coming on board and
Speaker 5: the shares pop. How will they reinvigorate this minor cryptomnor
Speaker 5: how will we also see potentially it start to service
Speaker 5: out to cloud perspective, as we've seen with core Weave.
Speaker 5: We're up eight and a half percent, and more broadly,
Speaker 5: we want to shine a light on what's happening in
Speaker 5: the world of fintech, in the world of payments, in
Speaker 5: the world of Klan, a global payments and shopping service company,
Speaker 5: or before we do that, sorry, just showing a light
Speaker 5: on what happening with Adobe. We're off by some thirteen percent.
Speaker 5: We're currently training lower on the back of its earnings
Speaker 5: look forecast not living up to expectations. Warner brother Discovery,
Speaker 5: though we might see a bit of a restructuring, they're
Speaker 5: certainly signaling the way in which they're going to be
Speaker 5: dissecting cable away from streaming. We're up fifteen percent on
Speaker 5: that name, but get back to the fintech side of things,
Speaker 5: because Klana has said that they're able to use AI
Speaker 5: to help save it and its customers money this holiday season.
Speaker 5: Let's dig into it with the CEOs. Best in Shamintakovski,
Speaker 5: Clana CEO. Great to have you here in the studio,
Speaker 5: and I actually want to signal how you're all in
Speaker 5: on AI. We actually just saw what was it two
Speaker 5: weeks ago? You updated the market as to your financials
Speaker 5: using not you but a generated AI version of you.
Speaker 5: How are you trying to signal here that productivity can
Speaker 5: just be limitless?
Speaker 11: I think it can. Actually I am of the opinion
Speaker 11: that AI can already do all of the jobs that
Speaker 11: we as humans do. It's just a question of how
Speaker 11: we apply it and use it. But I think also
Speaker 11: to some degree this part of doing the CEOAI was
Speaker 11: because when I met Sam and talked to him first
Speaker 11: time about this, I said, look, a lot of jobs
Speaker 11: are going to be threatened, and what are the jobs
Speaker 11: that people like the least. It's lawyers, CEOs and bankers.
Speaker 11: And I happen to be both CEO and banker. So said,
Speaker 11: let's replace our jobs first, and AA is going to
Speaker 11: become more popular than if it replaces other jobs. So
Speaker 11: we're trying to play into that narrative.
Speaker 5: We've already played into that narrative by articulating how many
Speaker 5: customer service reps.
Speaker 4: Ultimately you don't have to hire going forward.
Speaker 5: You seem pretty easygoing about AI replacing you, but how
Speaker 5: do you employees feel?
Speaker 3: Well?
Speaker 11: I think what we've done internally hasn't been reported as widely.
Speaker 11: Is we stopped tiring about a year ago, so we
Speaker 11: were four thousand, five hundred now we're three thousand, five hundred.
Speaker 11: We have a natural attrition as every tech company, so
Speaker 11: people stay about five years, so twenty percent leave every year,
Speaker 11: and by not hiring, we're simply shrinking.
Speaker 12: Right.
Speaker 11: What we've said to our empolice, though, is what's going
Speaker 11: to happen is the total salary cost of CLAN is
Speaker 11: going to shrink, but part of the gain of that
Speaker 11: is going to be seen in your paycheck. So we're
Speaker 11: going to give some of the improvements that the efficiency
Speaker 11: AA provides by increasing the pace at which the salaries
Speaker 11: of our employees increases. And that's because of that message
Speaker 11: being very consistent for myself and management for the last year.
Speaker 11: People internally CLAN are just rallying to deploy as much
Speaker 11: efficiency AA as they can because it just means it
Speaker 11: has direct implications on their equit and their cash compensation
Speaker 11: for working extonta.
Speaker 5: So other than customer services, how else have you felt
Speaker 5: the benefits? Where in your talent stack has it really benefited?
Speaker 11: Now it's across the board. Really you can use it
Speaker 11: for so many different use cases. I would say in
Speaker 11: our company by now with the three thousand, five hundred,
Speaker 11: I would say there's a core group of two hundred
Speaker 11: people who have really learned how to apply it practically,
Speaker 11: to really deploy it to different purposes for automation improvements,
Speaker 11: generating images, generating videos, marketing material, running financial analysis, interpreting
Speaker 11: our customers customers needs and demands, product development cursor for
Speaker 11: engineering like, there's an endless right now, opportunities to deploy
Speaker 11: it for moving faster, accelerate the.
Speaker 5: Business you file confidentially with the SEC ahead of an IPO.
Speaker 5: So I'm not going to ask you to comment on that,
Speaker 5: but you have been steering us as to how much
Speaker 5: he's seen an increase in revenue twenty three percent, your
Speaker 5: AI generated self told us, but there's still very small loss.
Speaker 5: Does that is it productivity gains that help you get
Speaker 5: to ultimately profitability to it will be.
Speaker 11: Part that, but it's also a growth. I mean, we
Speaker 11: have a very healthy margin now in our US business.
Speaker 11: We have a very healthy margin in European business, so
Speaker 11: as that's continues to grow, that also obviously helps accelerate
Speaker 11: their profit making. And we're seeing a great uptake in
Speaker 11: binappy Lada in the US. I think it was reported
Speaker 11: now during you know, Black Friday and so forth, that
Speaker 11: credit card sales were up like eleven percent. Why buyin
Speaker 11: appi Lata was up about twenty four to twenty five percent.
Speaker 11: So there's a major shift going on away from credit
Speaker 11: cards towards fin appay lata in the US.
Speaker 5: I mean, you're everywhere when you click on a website
Speaker 5: and trying to pay, when you're on Apple pay, you're
Speaker 5: doing deals with well pay for example. How much more
Speaker 5: is there to bring in in the US.
Speaker 11: It's amazing. I Mean there's like two things. Like, first,
Speaker 11: the credit card industry is a trillion dollar market opportunity
Speaker 11: and we're still tiny, tiny piece of that. But more importantly,
Speaker 11: you know, in the US there's one point three trillion
Speaker 11: dollars of credit card debt people pay one hundred twenty
Speaker 11: billion dollars in interest this year, and we calculated that
Speaker 11: the consumers that have used Klana by having interest free
Speaker 11: payments have saved over two billion dollars in the last
Speaker 11: few years by using clan instead of credit cards. So
Speaker 11: this business model is going to present a serious threat
Speaker 11: to incumbent banks and credit card companies because it is
Speaker 11: a more healthy alternative for consumers and drives credit ad
Speaker 11: is zero interest for them, right.
Speaker 4: I'm sure they love that.
Speaker 5: I know that you've felt that they've come for you
Speaker 5: in some way.
Speaker 4: But you're looking towards the new administration.
Speaker 5: Here in the United States, How supportive do you think
Speaker 5: they will be of I know You've had some interesting
Speaker 5: takes on some of Trump's promises.
Speaker 11: Yeah, well, first and foremost, I thought it was interesting
Speaker 11: that as much as Trump has been talking about just
Speaker 11: deregulation removing, there was one thing he said in the
Speaker 11: opposite direction, which was, you know, in the campaigning he
Speaker 11: said we should put an interest rate cap on credit
Speaker 11: card fees at ten percent, and I think Bernie Sanders
Speaker 11: jumped on it and said, like, oh, we want to
Speaker 11: keep him accountable to that think that's a great thing.
Speaker 4: In a lot of.
Speaker 11: European markets, there is a twenty percent cap, for example,
Speaker 11: on interest rate or even lower. Here in the US,
Speaker 11: the average interest rate on credit cards is twenty four percent,
Speaker 11: so much higher than that. Now, I think that's what's
Speaker 11: interesting to me. But then he also announced recently that
Speaker 11: you know, if you invested billion dollars in the US,
Speaker 11: we can accelerate licensing and so forth. Klan as a
Speaker 11: bank in Europe, we are we want to become a
Speaker 11: bank in the US. We want to we want to
Speaker 11: speed up our money transmitting, licenses, applications. We are more
Speaker 11: than happy to take trumps and actually do that billion
Speaker 11: dollar commitment to the US market because it's so large.
Speaker 11: We want to accelerate and we want to create real competition.
Speaker 11: You can cap interest rates as one potential way to
Speaker 11: get away from this tremendous cost to society that credit
Speaker 11: cards present, or we can create more competition, and we're
Speaker 11: happy to come in and increase competition even more.
Speaker 5: And I mean we started on AI, we'll end on
Speaker 5: AI because we have got you know, the LinkedIn post
Speaker 5: which actually was put out by your CMO talking about
Speaker 5: how you were using this generative AI version of yourself
Speaker 5: to update us on your numbers. Do you think the
Speaker 5: regulation is there for generative AI as well? In the
Speaker 5: US versus Europe, I mean, give us your take on
Speaker 5: you as a global company.
Speaker 4: There's there's you, but not you exactly.
Speaker 11: Look, I think that the challenge is, unfortunately that Europe
Speaker 11: has taken a different path where we do want to
Speaker 11: regulate before they know what to regulate, while in the
Speaker 11: US we've had there, you know, the preference of being
Speaker 11: you know, let's let it play out a little bit
Speaker 11: and see whether it needs to be regulated. I think
Speaker 11: in general, like you know, I am in I'm not
Speaker 11: an anarchist. I think some rules are helpful, but in general,
Speaker 11: obviously you want to give and we need to make
Speaker 11: sure that the democratic world is ahead in development of
Speaker 11: AI from the non democratic world. So it's very important
Speaker 11: that we continue supporting it and don't overregulate it too early.
Speaker 11: There are a few simple things that one should do.
Speaker 11: A simple rule that we've suggested in Brussels is maybe
Speaker 11: it should be legally obliged that if you communicate with
Speaker 11: someone on the screen, at least you have to tell
Speaker 11: if it's an AI or a human like, there's a
Speaker 11: basic rules and obviously people would fraud that anyway, and
Speaker 11: the people can, you know, but but there's basic rules
Speaker 11: that we can apply that could kind of make common sense,
Speaker 11: that could make sense to pursue already. But other than that,
Speaker 11: I would be on the side of like, please keep it,
Speaker 11: allow us to innovate and push push the envelope and
Speaker 11: see what the technology can do before we jump into regulating.
Speaker 4: Sbastian, it's great to have you.
Speaker 5: I'm sure many in the marketer expect to see a
Speaker 5: bit more of you. In twenty twenty five, Sebastian Shouma
Speaker 5: Katawski's part a CEO there now, Walmart's financial services company,
Speaker 5: known as One, is set to lead a funding round
Speaker 5: of over three hundred million dollars, putting in an evaluation
Speaker 5: of get this two point five billion. So also say
Speaker 5: the world's largest retailer is seeking to push into financial
Speaker 5: services sector because it's nearly three million monthly active users,
Speaker 5: which could pose a threat even more so to those
Speaker 5: traditional banks. One is an independent company that sits outside Walmart,
Speaker 5: while the retailer still maintains control. Coming up, we're going
Speaker 5: to be joined by Index Ventures partner Nina and Chajian
Speaker 5: to talk about the IPO outlook for twenty twenty five,
Speaker 5: including a core Service Titan that they backed, were still
Speaker 5: waiting on that opening trade. This is Bloomberg Technology.
Speaker 9: For us, this is our life's work. We've put over
Speaker 9: a decade into building this business. We think about this
Speaker 9: business for years and decades to come, and we're just
Speaker 9: excited for this next chapter in our journey where we
Speaker 9: get to partner with long term investors who want to
Speaker 9: support that journey with us.
Speaker 5: Our Service Titan CEO speaking with us earlier, Ara Medician
Speaker 5: and someone who will be keeping a close eye on
Speaker 5: how those shares trade at the open and indeed what
Speaker 5: the long term trajectory of the business is Nina Italian
Speaker 5: partner Index Ventures long term investor in Service Titan, and
Speaker 5: I mean, is this spelling the way of things to
Speaker 5: come in twenty twenty five strong businesses, we'll get a
Speaker 5: good exit.
Speaker 4: Well, Caroline, thanks for having me.
Speaker 6: It's great to be here and we're really excited to
Speaker 6: celebrate Service Titans IPO today. I think that there's a
Speaker 6: lot of positive science on the macro and also even
Speaker 6: if you look back in twenty twenty four, we've had
Speaker 6: a handful of successful tech IPOs. We have a new
Speaker 6: administration going forward, maybe some different regulation around AI and
Speaker 6: M and A, and so we hope that this will
Speaker 6: be a tailwind for a great crop of other fantastic
Speaker 6: private companies to go public.
Speaker 5: Nina, take us back to the journey of how it
Speaker 5: started with service title. What were the key learnings from
Speaker 5: having made that first check into them and their trajectory.
Speaker 6: Since well, at Index, when we make investments and we
Speaker 6: try to invest as early as possible, it is really
Speaker 6: all about the entrepreneurs. And it's hard to find a
Speaker 6: more mission driven set of co founders than Aar and
Speaker 6: Vahe who, as they shared, really built this business to
Speaker 6: solve a problem that their dads had and then they
Speaker 6: realized that this market was absolutely enormous and actually one
Speaker 6: of the backbones of America. And what really drives them
Speaker 6: is bringing cutting edge technology like for example now even
Speaker 6: AI to some of these industries that were very much
Speaker 6: forgotten by technology for a very long time.
Speaker 5: A lot of them haven't been forgotten with cyber security,
Speaker 5: for example, another tail when I'm sure, unfortunately, because what
Speaker 5: we keep seeing more and more upending of whether people
Speaker 5: are trying to get money from us trying to be
Speaker 5: able to penetrate businesses in certain ways. What are the
Speaker 5: other tailwinds going into twenty twenty five.
Speaker 6: Yeah, well, I think that identity is going to be
Speaker 6: really important. You know, everybody is talking about these AI agents,
Speaker 6: and you can imagine how important is going to be
Speaker 6: to actually prove you are a human being and the
Speaker 6: person that you say you are. So for example, one
Speaker 6: of our portfolio companies, PERSONA, that started doing KYC for
Speaker 6: a lot of crypto and fintech companies is now being
Speaker 6: used by some of the leading edge AI companies to
Speaker 6: make sure that the person that is using the LLLM
Speaker 6: on the other side is actually who they say they are.
Speaker 6: And so I think we'll start to see a lot
Speaker 6: more companies like this really in the wake of the
Speaker 6: incredible technological shift that AI has brought to the world.
Speaker 4: No old eyeballscanas as a well coined.
Speaker 5: But I'm interested, Nina about some of the valuations that
Speaker 5: you're seeing on these generative AI AI adjacent businesses.
Speaker 4: Are they still incredibly heady? Are you still able to
Speaker 4: get in any decent price?
Speaker 6: You know, the valuations are still pretty high for AI,
Speaker 6: and it's definitely a tale of two cities. Whether you're
Speaker 6: an AI company, you get a premium on evaluation and
Speaker 6: if you're not, you know, it's more of the traditional
Speaker 6: SaaS metrics. But I think twenty twenty five is going
Speaker 6: to be all about show me the ROI of investing
Speaker 6: and buying AI. And that's why I think a lot
Speaker 6: of companies that are industry specific AI solutions will probably
Speaker 6: have a front row seat to being able to demonstrate
Speaker 6: how they have embedded AI into their value proposition for
Speaker 6: their end customers that has either helped them generate revenue
Speaker 6: or save costs. And so it's going to be interesting
Speaker 6: to watch how those numbers come out in twenty twenty
Speaker 6: five on ROI.
Speaker 5: And there's been a lot of hand ringing around that
Speaker 5: and a lot of people trying to say, just show me.
Speaker 5: When you hear NonStop AGENTICAI, are you slightly this is
Speaker 5: a hype or you actually like that there is real
Speaker 5: productivity to be had here when we're going to show.
Speaker 6: You well, I think you always have to think of
Speaker 6: investments and trends as bottoms.
Speaker 4: Up and tops down.
Speaker 6: You know, tops down. We got the foundational models and
Speaker 6: the lams which have been absolutely incredible, and I think
Speaker 6: twenty twenty three and twenty twenty four have all about
Speaker 6: been you know, how does it dost settle on how
Speaker 6: we use this technology? And then bottoms up is starting
Speaker 6: really with a customer problem. What is the problem you're
Speaker 6: willing to solve for your customer and how much are
Speaker 6: they willing.
Speaker 4: To pay you?
Speaker 6: And I think we're still in the early innings of that,
Speaker 6: and I think that will be the future of AI
Speaker 6: investments in the next two years.
Speaker 9: You know.
Speaker 5: And Taddy, and it's going to be a busy twenty
Speaker 5: twenty five, come back join us. But congratulations on the
Speaker 5: day with service Titan. Partner at Index fensures we appreciate it.
Speaker 4: Now it's time.
Speaker 5: For talking tech and verst up Huawe's Electric Vehicle Partner
Speaker 5: Series Group. It's considering a second listing in Hong Kong,
Speaker 5: that's acording to people familiar with the matter. The company
Speaker 5: is said to be been speaking to prospective advisors about
Speaker 5: a potential share sale that could help it raise more.
Speaker 4: Than a billion dollars plus.
Speaker 5: President elect Trump has given an interview tube Time magazine, after,
Speaker 5: of course, he's been named the Person of the Year
Speaker 5: for second time wide ranging conversation, but it did touch
Speaker 5: on subjects from geopolitics to EV's in which he said
Speaker 5: he's a big fan of them but says that Eve's.
Speaker 4: Mandate is a disaster.
Speaker 5: This after Bloomberg actually spoke to Lucid CEO Peter Warllinson,
Speaker 5: who says that President Elect Trump could be a tailwind
Speaker 5: for autos in the US.
Speaker 4: Take a listen.
Speaker 12: I think that both Trump and Elon Musk are very accomplished,
Speaker 12: business made and this you know, there is a business
Speaker 12: imperative for jobs in America, and what we're doing is
Speaker 12: creating great jobs, high tech jobs in automotive. Take away, Ev,
Speaker 12: It's just it's a car. It's automotive jobs in Middle America.
Speaker 12: Great high quality, high tech jobs.
Speaker 5: Peter warllingson there, and Elon Musk has become the first
Speaker 5: ever person in the world to each four hundred billion
Speaker 5: dollars in net worth. This after reports of an insider
Speaker 5: share sale of his SpaceX of course boosted his net worth.
Speaker 4: We understand, by fifty billion dollars.
Speaker 5: And of course the shares a Tesla rallied to all
Speaker 5: time highs on Wednesday, coming up Adobe not at all
Speaker 5: time highs, quite the reverse, but down by ten eleven percent.
Speaker 5: Disappointing in terms of a weaker sales outlook than haven't
Speaker 5: been anticipated.
Speaker 4: We'll dig in. This has been my technology check out.
Speaker 5: Shares of Adobe significantly lower today after the company posted
Speaker 5: what is being seen as disappointing sales forecasts, underscored by
Speaker 5: this rising competition from AI startups. Let's bring in Brodie Ford.
Speaker 5: Who I mean, thirty billion dollars has been wiped out
Speaker 5: of the market cap on one day alone.
Speaker 4: It's down for the year.
Speaker 5: They cannot get this AI adoption to bear fruit for
Speaker 5: the investor base.
Speaker 1: The question for every sas company this year has been,
Speaker 1: you know, is AI going to be a tailwind or
Speaker 1: is there going to disrupt your business? And the constant
Speaker 1: fear for Adobe has been that, hey, these kind of newer,
Speaker 1: lightweight tools can come out and if you can generate something,
Speaker 1: are you going to to pay for as many photoshop
Speaker 1: licenses and investors have really pingponged on that idea, whether
Speaker 1: I think it's a disruptor or whether it's a tailwind
Speaker 1: for Adobe. And so when you see, you know, every
Speaker 1: cloud vendor out there having their own photo and video
Speaker 1: models and it's such a competitive market. Folks are getting
Speaker 1: more anxious about Adobe.
Speaker 5: They're anxious about Sora baking people's hands, whereas the latest
Speaker 5: innovations from Firefly in terms of video generations get taken
Speaker 5: till twenty twenty five. So how can they say that
Speaker 5: the subscriptions are going to go higher? This is just
Speaker 5: perhaps a little bit of natural caution in our numbers.
Speaker 1: Yeah, what Adobe has consistently said is, right now, we
Speaker 1: are optimizing for adoption. You know, they have a bit
Speaker 1: of a reputation with their user base of you know,
Speaker 1: charging a lot for things, and they certainly don't want
Speaker 1: to reinforce that, and so they have been really saying
Speaker 1: that we're going to optimize, make sure everyone's using our
Speaker 1: stuff before we jack up the prices. And investors are saying, WHOA, well,
Speaker 1: will you ever be able to get that pricing leverage here?
Speaker 1: That's the big investor anxiety.
Speaker 4: But customers, this seems to be disconnect because the CEO
Speaker 4: is very buoyant. We're also seeing customers saying that they
Speaker 4: love it. It really is to see investor base that remains.
Speaker 1: Yeah, Adobe's general thesis here, which makes sense to me,
Speaker 1: is that if you're already using a product like Photoshop.
Speaker 1: You want an AI tool that's right in there that
Speaker 1: you can just circle Caroline and say, you know, at
Speaker 1: a different chair, at a different background. Don't you don't
Speaker 1: want to have to, you know, get the open AI
Speaker 1: plug in. But you know, the question is whether people
Speaker 1: are going to pay more for that. I think with
Speaker 1: creative software, maybe the moat is lower. Right, if you're
Speaker 1: thinking about a salesforce or Microsoft, the fact your data
Speaker 1: is all in there, that's hard to replicate. But if
Speaker 1: you're creating something an image from you know, requires less context,
Speaker 1: and maybe the switching is more likely for users.
Speaker 5: Well fastest setters. That's I'm ready for such a way.
Speaker 5: Appreciate it. Meanwhile, sticking with earnings, Broadcoms set to report
Speaker 5: fourth quarter results after the closing bell today. Investors are
Speaker 5: hoping that the company really may show that outperformance in
Speaker 5: their stock is actually showing in terms of AI demand
Speaker 5: for its networking chips.
Speaker 4: Conjin Sovannis with u S Blomberg Intelligence.
Speaker 5: They rallied hard yesterday on the news the interpretation that
Speaker 5: they're gonna be working closer with Apple on chips going forward.
Speaker 5: Can they vindicate the sixty percent run up?
Speaker 8: I mean they are for surely set up for that.
Speaker 8: You know, we again expect a strong four Q driven
Speaker 8: by a seasonal iPhone ramp in their wireless segment, sequential
Speaker 8: strong growth in AI revenues and VMware, and finally the
Speaker 8: non AI chip business turning the corner slowly. We think,
Speaker 8: though focus will be on two key AI metrics. One
Speaker 8: is the one Q outlook. There have been some concerns
Speaker 8: of like a flatish or a low single digit growth,
Speaker 8: and there's a lot of expectation of getting a new
Speaker 8: full year fiscal AI guide. I think if they come
Speaker 8: up with that guide above the street, that would be
Speaker 8: really good for the stock.
Speaker 5: Okay, talk to us about the really where the customer
Speaker 5: base is coming from and how diverse that looks Kunjin.
Speaker 8: Yeah, so I'm going to look as a whole company.
Speaker 8: They're very diverse, about forty percent from software and the
Speaker 8: rest from chips. But the focus right now is all
Speaker 8: on the custom side, which is the air revenues. Right
Speaker 8: So on the custom side, they have been expanding the
Speaker 8: customer base. Right now, it's driven primarily by one large
Speaker 8: TPU customer, but as we go into twenty twenty five,
Speaker 8: we have the second customer ramping and beyond twenty five
Speaker 8: the rest of the customer's ramping as well. So we
Speaker 8: see the diversification getting better and better over time.
Speaker 5: It really has been exposed to the best in the
Speaker 5: worst of the chip sectors of late. We'll see which
Speaker 5: one bears out today. Cunjin Savanni of Bloomberg Intelligence all
Speaker 5: things for com Now, we're also going to be keeping
Speaker 5: a close eye what's happening with Intel as well, keep
Speaker 5: an eye on those particular shares as we anticipate well
Speaker 5: at one point five percent higher guide at the moment,
Speaker 5: Intel executives say that you could see us probably selling
Speaker 5: some of our position in Mobile Eye over time. That
Speaker 5: is currently what's being articulated. The CFO say that there's
Speaker 5: going to be a big reduction in force that is
Speaker 5: currently underway. They plan to ultimately take Altra public, the
Speaker 5: CFO is saying, and they're going to be bringing in
Speaker 5: financial partners for that AATERA unit. We're getting more guidance
Speaker 5: from the executives and how they look to sell more
Speaker 5: of the mobilized steak over time. This is at a
Speaker 5: Barclays conference, and we really are standing to see about
Speaker 5: a separation of the foundry still an open question. According
Speaker 5: to the co CEO, that's Lintner. He used to be,
Speaker 5: of course the CFO now that does it for this
Speaker 5: edition of Blue Meg Technology, all things chips all the time.
Speaker 5: You don't want to miss out in broad Coon's numbers
Speaker 5: after the bell today, but you also don't.
Speaker 4: Want to forget to check out on our podcast.
Speaker 5: You can find it on the terminal as well as
Speaker 5: online on Apple, Spotify, an iHeart this is Blue Meg Technology.