WEBVTT - Micron Plans $200 Billion US Chip Spend, Chime IPO 0:00:04.160 --> 0:00:07.800 Bloomberg Tech is a live from coast to coast with 0:00:08.000 --> 0:00:09.200 Caroline Hide. 0:00:08.920 --> 0:00:11.760 In New York and Eva Low in Sent Francisco. 0:00:15.160 --> 0:00:16.960 This is Bloomberg Tech coming up. 0:00:17.040 --> 0:00:20.119 Micron boosts its commitment to invest in new memory chip 0:00:20.160 --> 0:00:22.439 capacity and R and D in the USA. 0:00:22.720 --> 0:00:25.520 Plus we stay across the evolving story of the Boeing 0:00:25.600 --> 0:00:28.080 Dreamliner crash in India that leaves over two. 0:00:27.920 --> 0:00:32.640 Hundred dead, and fintech firm Chime prices its IPO above 0:00:32.680 --> 0:00:35.360 its targeted range to raise eight hundred and sixty four 0:00:35.400 --> 0:00:36.559 million dollars. 0:00:36.800 --> 0:00:38.520 First from tech in on these markets. 0:00:38.720 --> 0:00:41.480 And look, there is cautious training as we digest yet 0:00:41.520 --> 0:00:45.120 another point showing that inflationary pressure is not as high 0:00:45.159 --> 0:00:45.680 as expected. 0:00:45.720 --> 0:00:46.920 PPI numbers come in. 0:00:47.159 --> 0:00:49.680 Can the Fed raise not once but well cut, not 0:00:49.720 --> 0:00:51.440 once but twice this year. 0:00:51.280 --> 0:00:52.120 For twenty twenty five. 0:00:52.159 --> 0:00:54.160 That's what the market price is in the bond market 0:00:54.400 --> 0:00:56.640 pushes forward and so to TO stocks were up three. 0:00:56.880 --> 0:00:57.840 Percent on the NASDAK. 0:00:58.080 --> 0:01:00.680 Some big players in the chipspace the high side like 0:01:00.760 --> 0:01:03.279 in video, but you're digging into a key chip company ed. 0:01:04.160 --> 0:01:08.280 YEP, that's right, Caroline, I'm looking at Micron, America's biggest 0:01:08.280 --> 0:01:11.080 memory chip maker, boosting a commitment to invest in new 0:01:11.120 --> 0:01:13.720 capacity and R and D in the USA. The company 0:01:13.840 --> 0:01:17.600 is investing an additional thirty billion dollars beyond previous plans 0:01:17.840 --> 0:01:20.440 for a new memory chip plant at its home Boise, Idaho, 0:01:20.640 --> 0:01:24.399 to modernize its Virginia facilities, and build a megafab in 0:01:24.480 --> 0:01:27.600 New York. It's now committing two hundred billion dollars total 0:01:27.640 --> 0:01:31.440 two US manufacturing and research projects, the previous pledge one 0:01:31.520 --> 0:01:34.800 hundred and twenty five billion. Here's the Bloomberg Intelligence react. 0:01:34.920 --> 0:01:39.560 Micron's large scale US investments will likely span over several decades. 0:01:39.800 --> 0:01:43.319 Given the company's focus on cash generation and potential investor 0:01:43.360 --> 0:01:47.840 concerns over excess capital spending, this strategically aligns with the 0:01:47.840 --> 0:01:51.920 Trump administration. Jake Silverman, the Bloomberg Intelligence analyst on that research, 0:01:52.200 --> 0:01:55.720 joins US now Jake net new investment thirty billion dollars. 0:01:55.880 --> 0:01:58.240 What is your reaction to this morning's news. 0:01:58.800 --> 0:02:00.800 Yeah, I mean, we think there's a pretty much just 0:02:00.800 --> 0:02:04.920 a continuation of the strategy to bring domestic spending drive 0:02:05.000 --> 0:02:09.000 capacity within the United States. So this is just a 0:02:09.200 --> 0:02:12.720 you know, continuation of that R and D capital's capex 0:02:12.760 --> 0:02:13.119 as well. 0:02:13.720 --> 0:02:15.720 Let's talk about the R and D side a bit, 0:02:15.880 --> 0:02:20.040 because they're promising ninety thousand jobs, whether that's indirect or direct. 0:02:20.200 --> 0:02:21.919 But where does the R and D need to go? 0:02:22.000 --> 0:02:25.520 Because we know they're focusing in particular on high bandwidth memory, 0:02:25.560 --> 0:02:27.880 but that seems to be more on the manufacturing side. 0:02:28.240 --> 0:02:28.520 Yeah. 0:02:28.520 --> 0:02:31.240 Well, look, I mean there's continual R and D both 0:02:31.280 --> 0:02:34.440 in terms of traditional memory for both DRAM and NAN, 0:02:34.639 --> 0:02:38.480 but there's continual R and D both for high bandwidth 0:02:38.520 --> 0:02:40.960 memory as well. I mean, we've seen the stack sizes 0:02:41.440 --> 0:02:45.280 increase from eight to twelve. HBM four is expected to 0:02:45.280 --> 0:02:47.880 come out next year. The standards have already been announced, 0:02:48.480 --> 0:02:51.440 and beyond that we'll expect to continue to see HBM 0:02:51.480 --> 0:02:53.639 four E, potentially HBM five and so on. 0:02:55.000 --> 0:02:57.760 Let's go back to basics real quick, Jake. High bandwidth 0:02:57.760 --> 0:03:00.920 memory is just stacked d RAM. For every high performance 0:03:01.000 --> 0:03:05.000 GPU or AI accelerator card, there's a corresponding eight or 0:03:05.040 --> 0:03:08.200 sixteen high bandwidth chips in that server tray. Why is 0:03:08.280 --> 0:03:10.120 Micron an important player in this space? 0:03:10.680 --> 0:03:11.480 Yeah? 0:03:11.520 --> 0:03:16.600 Well so right now, HBM is actually there is supply constraints. 0:03:17.680 --> 0:03:20.880 S ke Heinez is the leader. They are still struggling 0:03:20.880 --> 0:03:23.760 to meet the demand for in videos GPUs as well 0:03:23.800 --> 0:03:27.799 as hyperscaler A six and so Micron has also stepped 0:03:27.840 --> 0:03:30.760 up to the plate and is offering their solutions as well, 0:03:31.360 --> 0:03:34.480 and they're starting to gain share. Samsung has had their 0:03:34.520 --> 0:03:39.080 own issues and so without really Samsung to plug some 0:03:39.120 --> 0:03:42.240 of those gaps, Micron is an important supplier of HBM. 0:03:42.560 --> 0:03:45.280 All of our stories today really signal that there is 0:03:45.320 --> 0:03:47.440 still a lack of supply when it comes to the 0:03:47.480 --> 0:03:51.040 genitive AI trade, rather than there being any questioning of demand, Jake, 0:03:51.120 --> 0:03:54.280 But I wonder where the money is ultimately coming from. 0:03:54.360 --> 0:03:55.320 Yes, they've put. 0:03:55.120 --> 0:03:58.040 This glorious two hundred billion dollar figure out, only thirty 0:03:58.040 --> 0:04:00.040 billion seems to be new, but they've got to pay. 0:03:59.920 --> 0:04:02.240 For for it, right Well yeah, Look, I mean that's 0:04:02.280 --> 0:04:04.560 why we think this is going to take several decades 0:04:04.600 --> 0:04:07.360 to occur. I mean, they have a solid balance sheet 0:04:07.440 --> 0:04:10.960 right now. They're focusing on continuing to generate free cash flow, 0:04:11.520 --> 0:04:14.560 but they're not able to outlay that much cash right now, 0:04:14.640 --> 0:04:16.760 and so obviously this is going to be a focus 0:04:16.800 --> 0:04:19.880 over the very long term. But also if you look 0:04:20.080 --> 0:04:24.279 the continual growth rates and memory, they still need to 0:04:24.320 --> 0:04:26.839 invest in capacity. So in order to increase that capacity, 0:04:26.880 --> 0:04:28.720 they're going to have to spend money, and if they 0:04:28.720 --> 0:04:30.400 want to do that in the United States, they'll commit 0:04:30.440 --> 0:04:31.120 some of that capital. 0:04:31.120 --> 0:04:31.360 Here. 0:04:32.000 --> 0:04:36.080 Jake Gray Analysis, Glue Meg Intelligence, Jake Silverman. There, let's 0:04:36.080 --> 0:04:39.679 bring you the investor analysis now, Nazi Latango Investment CEO 0:04:39.720 --> 0:04:42.720 and CIO. All of this Oracles numbers, which we'll get 0:04:42.720 --> 0:04:45.480 into later in the show. The fact that we're seeing 0:04:45.680 --> 0:04:48.640 a commitment in terms of money and investment coming from Micron, 0:04:48.800 --> 0:04:50.559 it all signals supplies needed. 0:04:50.600 --> 0:04:51.799 They can't build it fast enough. 0:04:52.640 --> 0:04:54.719 You're right, Caroline, I mean, and I think we've heard 0:04:54.760 --> 0:04:58.520 that consistently from the hyperscalers. You know, there was that 0:04:58.720 --> 0:05:02.239 Meca dinner where Elon Musk and Larry Ellison had dinner 0:05:02.279 --> 0:05:05.480 with Jensen Wong and just kept saying more chips, Please, 0:05:05.520 --> 0:05:09.560 more chips. The supply constraint is the problem at the moment. 0:05:10.000 --> 0:05:12.440 And so you know, Oracle's the largest holding in our 0:05:12.800 --> 0:05:14.039 ETF TGLR. 0:05:14.800 --> 0:05:15.960 It's been a great holding. 0:05:16.040 --> 0:05:18.640 It's always a better company when Larry Ellison is involved. 0:05:18.640 --> 0:05:21.400 But what you heard from him was that they have 0:05:21.520 --> 0:05:24.680 had the biggest orders and demand is as good as 0:05:24.680 --> 0:05:27.240 they've seen it. So I think you want. I think 0:05:27.240 --> 0:05:29.800 you still want to belong this trade. Maybe not forever, 0:05:29.920 --> 0:05:31.520 but certainly for the near term. 0:05:32.440 --> 0:05:33.120 Nancy. 0:05:33.160 --> 0:05:36.000 This is the promote side of the White House's promote 0:05:36.040 --> 0:05:39.000 and protect policy when it comes to the American technology stack. 0:05:39.240 --> 0:05:41.320 It was really interesting earlier today in London. 0:05:41.360 --> 0:05:45.839 Rene has the arm CEO weighed in on this protect portion. 0:05:46.000 --> 0:05:47.160 Just listen to what he had to say. 0:05:48.120 --> 0:05:52.680 If you narrow access to technology and you force other 0:05:52.839 --> 0:05:56.279 ecosystems to grow up, it's not good. 0:05:57.040 --> 0:05:58.440 It makes the pie. 0:05:58.360 --> 0:06:01.640 Smaller, if you will, and frankly, it's not very good 0:06:01.720 --> 0:06:03.280 for consumers. 0:06:04.320 --> 0:06:06.919 There is an interesting linkage here because on the Oracle 0:06:06.960 --> 0:06:10.160 call you also had Larry Ellison talking about the potential 0:06:10.200 --> 0:06:14.719 business of Chinese customers like Timo, for example, promote and protect. 0:06:14.800 --> 0:06:17.480 As an investor, do you like the balance of that 0:06:17.520 --> 0:06:18.520 policy right now? 0:06:19.839 --> 0:06:23.720 Yeah, I share the concern that the administration is trying 0:06:23.760 --> 0:06:27.919 to apply a kind of industrial policy or protectionism to 0:06:28.520 --> 0:06:30.440 the distribution of this technology. 0:06:31.080 --> 0:06:32.320 I think in some. 0:06:32.200 --> 0:06:36.080 Regards ed it's prudent, But generally speaking, the US has 0:06:36.200 --> 0:06:40.960 been has innovated around every problem for decades and decades, 0:06:41.040 --> 0:06:45.520 so I would rather see competition allow the ecosystem to 0:06:45.600 --> 0:06:51.159 grow and then find ways to limit the Chinese impact. 0:06:51.320 --> 0:06:54.760 And so I'm more in agreement with yes, with that 0:06:54.839 --> 0:06:58.400 policy of promote and protect. I think that's what you said, 0:06:58.400 --> 0:06:59.840 but certainly the protect. 0:06:59.480 --> 0:07:05.080 Part Oracle's obligations. It's backlog. It's kind of astonishing. Actually 0:07:05.680 --> 0:07:10.200 the story's really changed for that company. Just give me 0:07:10.240 --> 0:07:12.000 a bit more on the thesis. I was really interested 0:07:12.000 --> 0:07:14.720 in how you're positioning with Oracle, but also like, did 0:07:14.720 --> 0:07:17.480 something change last night? Did they jump to a different level? 0:07:18.440 --> 0:07:21.000 They did, for sure, I think you know they've disappointed 0:07:21.000 --> 0:07:24.400 the last two quarters. I've owned the stock for forty years, 0:07:24.400 --> 0:07:26.360 if you can imagine, I think my average cost is 0:07:26.400 --> 0:07:30.600 two dollars. I know, but again, it's always been a 0:07:30.600 --> 0:07:33.040 better company when Larry Ellison is engaged. I don't know 0:07:33.080 --> 0:07:36.160 if you heard the recent he's you know, writing code now. 0:07:36.240 --> 0:07:37.200 He is in his eighties. 0:07:37.240 --> 0:07:39.480 But if money can buy longevity, I think this is 0:07:40.000 --> 0:07:40.960 the guy that can do it. 0:07:41.360 --> 0:07:43.000 And so I think what you're seeing. 0:07:42.800 --> 0:07:46.480 Is that the focus that they've had on cloud and 0:07:47.320 --> 0:07:49.920 the way that they are involved in the cloud, which 0:07:49.960 --> 0:07:52.960 allows them to have more flexibility than some of the 0:07:53.000 --> 0:07:56.080 other providers. Then you've got the Cerner transaction, which I 0:07:56.120 --> 0:07:58.840 think is really interesting and not talked about very much 0:07:58.920 --> 0:08:01.239 the whole health care aspect. 0:08:01.360 --> 0:08:05.280 Of the business. So because that is a problem, I mean. 0:08:05.160 --> 0:08:09.240 We should be applying AI not just to pharmaceutical development, 0:08:09.640 --> 0:08:13.120 but care and so I think there's a lot of 0:08:13.320 --> 0:08:16.120 moving parts that are now coming together, coming to fruition, 0:08:16.640 --> 0:08:18.760 and you're seeing it in the backlog, You're seeing it 0:08:18.800 --> 0:08:22.360 in their enthusiasm, and that to me is you know, 0:08:22.520 --> 0:08:24.720 reason to continue to hold the stock. Plus the dividend 0:08:24.760 --> 0:08:27.760 growth is like ten to twelve percent annually, so you're 0:08:27.760 --> 0:08:30.240 getting paid to enjoy the ride. 0:08:30.520 --> 0:08:32.640 Larry, They're really speaking to the fact that they're still 0:08:32.760 --> 0:08:35.839 supply constrained. I want to go back to supply constraints 0:08:35.880 --> 0:08:38.440 and to do with China at the moment, we are. 0:08:38.360 --> 0:08:41.320 So focused on rare earths at. 0:08:41.160 --> 0:08:44.120 The moment, the minerals, the metals, and the fact that 0:08:44.160 --> 0:08:44.880 they come from China. 0:08:44.920 --> 0:08:46.120 I just want to pivot to Tesla. 0:08:46.200 --> 0:08:49.520 And really this affects that humanoid robot side of the equation, 0:08:49.600 --> 0:08:53.480 also affects EVS broadly. How much are you focusing on 0:08:53.600 --> 0:08:56.560 Tesla and the fact that we're starting to make inroads 0:08:56.559 --> 0:08:58.079 in the China US relationship a bit. 0:08:59.160 --> 0:09:02.400 Yeah, I think that provided a release valve on the stock. 0:09:02.480 --> 0:09:03.960 You know, the last time I was on with you, 0:09:04.040 --> 0:09:07.560 we had the high school girlfriend's spat, I don't know 0:09:07.559 --> 0:09:10.160 what you call it, romance spat right between the president 0:09:10.200 --> 0:09:13.720 and between Elon, and the stock has come back from that. 0:09:14.720 --> 0:09:16.040 One of the times when I was at one of. 0:09:16.040 --> 0:09:18.840 The factories, you know, they talked about the need not 0:09:19.040 --> 0:09:22.880 to be vertically integrated, and I think that has changed somewhat. 0:09:23.320 --> 0:09:25.760 So I do think that, you know, we do need 0:09:25.800 --> 0:09:28.600 to get this resolved. We do need to open up regulations. 0:09:28.640 --> 0:09:30.840 You know, there was a cobalt plant that was that 0:09:31.000 --> 0:09:35.120 was ten years in the regulatory nightmare of trying to 0:09:35.120 --> 0:09:37.959 come to fruition and then they finally just walked. 0:09:37.679 --> 0:09:40.960 Away from it. Not Tesla, but the company that was 0:09:41.000 --> 0:09:41.720 trying to do it. 0:09:41.880 --> 0:09:46.319 So we've got to be better at also harvesting our wearers. 0:09:46.400 --> 0:09:49.400 And so I do think it is good news at 0:09:49.440 --> 0:09:49.920 the margin. 0:09:50.040 --> 0:09:53.840 But everything about Tesla right now is Robotaxi, So I 0:09:53.880 --> 0:09:55.800 think that's what investers are paying attention to. 0:09:56.720 --> 0:09:59.840 Ninety two weeks ago, I reported that Tesla was targeting 0:10:00.000 --> 0:10:05.280 internally June twelfth to launch robotaxi. In Austin, then Elon 0:10:05.360 --> 0:10:07.720 must post it an exit would be June twenty second, 0:10:08.160 --> 0:10:11.280 but they have in the interim ramped up driverless testing 0:10:11.280 --> 0:10:15.400 in Austin. It was just a date, but it moved 0:10:15.440 --> 0:10:17.760 the needle for many people. Why is that date so 0:10:17.880 --> 0:10:20.760 significant as somebody that backs the robotaxi thesis. 0:10:21.600 --> 0:10:24.120 Yeah, because you wonder if there's something behind the scenes 0:10:24.160 --> 0:10:26.840 that's going on. You know, there was a recent video 0:10:26.960 --> 0:10:30.360 of the twenty twenty three accident that it just gives 0:10:30.360 --> 0:10:35.000 people time to think about it and you know, consider 0:10:35.120 --> 0:10:38.079 other options. But as you point out, and you've been 0:10:38.160 --> 0:10:40.880 right on this d all the way through, if you 0:10:40.920 --> 0:10:43.320 point out, as you point out that the cars have 0:10:43.440 --> 0:10:46.319 been driving, you know, I live in Phoenix, Happy Year. 0:10:46.760 --> 0:10:50.960 The waymows are everywhere. It's commonplace to us, it's not scary. 0:10:51.440 --> 0:10:54.040 So I think I think if any company can do it, 0:10:54.040 --> 0:10:55.960 it's this company. And if you look at Tesla on 0:10:56.240 --> 0:10:59.000 a cost per mile, their costs are like thirty to 0:10:59.080 --> 0:11:02.199 forty percent below away most So once they get out 0:11:02.240 --> 0:11:05.240 there and we start to see the compounding, I think 0:11:05.320 --> 0:11:06.079 that's going. 0:11:05.920 --> 0:11:08.640 To be the driver of revenue growth. 0:11:08.679 --> 0:11:11.000 And I may not be in Kathy Woods nine hundred 0:11:11.040 --> 0:11:13.600 and fifty eight billion dollar a year CAMP. 0:11:13.640 --> 0:11:15.040 But I do think, you know. 0:11:15.000 --> 0:11:17.320 The ninety eight billion dollars in revenues that you're seeing, 0:11:17.360 --> 0:11:21.200 mostly driven by EV sales, is going to shift and 0:11:21.280 --> 0:11:25.160 we're going to see significant growth in right handling from 0:11:25.320 --> 0:11:27.720 ROBOTAXI I just want a quick. 0:11:27.559 --> 0:11:28.280 Question on IP. 0:11:28.880 --> 0:11:31.040 It's an interesting story coming from Downah Hall today that 0:11:31.080 --> 0:11:36.160 Tesla is actually suing a former engineer regarding Optimists in particular, 0:11:36.240 --> 0:11:38.800 how much does Optimus factor into the future. 0:11:38.840 --> 0:11:41.440 How much do we want to ensure. 0:11:41.120 --> 0:11:44.680 That that IP remains safely within Tesla's hands. 0:11:45.200 --> 0:11:49.040 Yeah, Caroline, I think it's one of the ex robotax 0:11:49.040 --> 0:11:51.080 that I think is one of the most significant elements 0:11:51.080 --> 0:11:54.360 of Tesla. They are planning to have thousands of Optimist 0:11:54.440 --> 0:11:55.600 robots on their. 0:11:55.400 --> 0:11:56.600 Own factory floors. 0:11:57.000 --> 0:12:00.600 If you believe that the BLS members that we have 0:12:00.640 --> 0:12:06.160 four hundred and fifty thousand manufacturing jobs that have gone unfilled, robots. 0:12:05.720 --> 0:12:06.480 Are the solution. 0:12:06.800 --> 0:12:10.080 So we need to protect that IP and they need 0:12:10.120 --> 0:12:13.760 to be focused on producing robots. You know, Elonis famously 0:12:13.920 --> 0:12:18.240 said the robots will make the robots that would be fantastic, 0:12:18.880 --> 0:12:21.199 and that's really what we need to see, because if 0:12:21.200 --> 0:12:24.040 we're moving manufacturing back to the US, we need to 0:12:24.080 --> 0:12:26.319 have the ability to fill those jobs if we're not 0:12:26.360 --> 0:12:27.280 going to film with people. 0:12:28.280 --> 0:12:32.960 Nancy Tangler Laffatangler Investments, CEO and CIO, thank you very much. 0:12:33.880 --> 0:12:37.520 Coming up, Boeing Streamliner Aircraft was involved in the worst 0:12:37.559 --> 0:12:40.679 commercial airline crash since twenty fourteen. 0:12:40.960 --> 0:12:43.600 We have the details names. This is Bloomberg Tech. 0:12:55.480 --> 0:12:55.760 Time. 0:12:56.160 --> 0:12:58.600 It is set to make its trading debut after raising 0:12:58.600 --> 0:13:00.480 over eight hundred and sixty four million dollars in its 0:13:00.559 --> 0:13:03.120 IPO shares indicated to jump when they open. 0:13:03.200 --> 0:13:05.720 CEO Chris Britt joins us now for more. 0:13:06.080 --> 0:13:07.959 How do you feel, Chris, We could see a sixty 0:13:08.000 --> 0:13:09.320 six percent pop in the shares. 0:13:09.800 --> 0:13:11.600 Wow, I feel great. 0:13:11.720 --> 0:13:13.840 Today is such a momentous day for all of us 0:13:13.840 --> 0:13:17.040 here at CHIME. We're so grateful to our members who 0:13:17.080 --> 0:13:19.760 rely on us for their everyday banking, and I'm just 0:13:19.880 --> 0:13:23.520 incredibly grateful for this team around me that has built 0:13:24.400 --> 0:13:26.680 a business that we really see as ushering in a 0:13:26.720 --> 0:13:29.440 new era for banking and one that's aligned with the 0:13:29.440 --> 0:13:30.840 best interests of everyday members. 0:13:31.679 --> 0:13:33.000 Chris, we made a lot on the show over the 0:13:33.080 --> 0:13:35.440 years of the kind of the down round, the valuation 0:13:35.520 --> 0:13:37.280 of where you went public, the timing of it. 0:13:37.360 --> 0:13:38.920 Could you just reflect on that a little bit. 0:13:40.320 --> 0:13:43.040 Yeah, I mean, look, we don't focus on short term 0:13:43.080 --> 0:13:45.520 fluctuation of the stock. Even if it goes up today, 0:13:45.520 --> 0:13:47.080 I'm sure there's going to be other days that won't 0:13:47.120 --> 0:13:50.640 be as great. So we remain focused on the long term, 0:13:51.000 --> 0:13:53.679 and that is being a company that's member obsessed and 0:13:54.200 --> 0:13:58.079 focused on solving the most important needs of everyday consumers 0:13:58.440 --> 0:14:01.120 that we serve. So I think today's going to be 0:14:01.200 --> 0:14:02.160 a pretty exciting day. 0:14:02.400 --> 0:14:05.520 You've got eight million plus of those consumers. Chris, How 0:14:05.559 --> 0:14:07.880 do you increase your own revenue in the scale of 0:14:07.880 --> 0:14:08.280 the business. 0:14:08.360 --> 0:14:10.440 Is it more products serving them? Is it more people 0:14:10.480 --> 0:14:10.960 coming in? 0:14:12.080 --> 0:14:14.600 Yeah? We see multiple ways to grow. 0:14:14.760 --> 0:14:17.520 First of all, in Q one, we grew our active 0:14:17.520 --> 0:14:21.280 member base by over twenty three percent, so that's increasing 0:14:21.360 --> 0:14:22.480 year over year, and at. 0:14:22.360 --> 0:14:24.400 The same time, we continue to look. 0:14:24.280 --> 0:14:28.160 For opportunities to offer new products that drive product attach 0:14:28.760 --> 0:14:33.240 and lead to more primary account engagement. At Chime, two 0:14:33.360 --> 0:14:36.760 thirds of our members use us as their primary bank account, 0:14:36.840 --> 0:14:39.680 so they rely on us for their everyday transactions, and 0:14:39.720 --> 0:14:43.480 we love to know as a technology company, we monetize 0:14:43.480 --> 0:14:47.000 the relationships really through a payments driven business model, which 0:14:47.000 --> 0:14:49.720 is very different than the way traditional banks go to market. 0:14:50.840 --> 0:14:53.680 Chris, we love to read the risk factors section of 0:14:53.680 --> 0:14:54.359 the RESPECTUS. 0:14:54.400 --> 0:14:55.600 I do it all the time. 0:14:56.000 --> 0:15:00.000 How real those risk factors for you, specifically on interchange 0:15:00.080 --> 0:15:01.480 fees and how you're thinking about it? 0:15:02.720 --> 0:15:06.480 Oh, we you know, I guess you know. 0:15:06.520 --> 0:15:09.160 I'm sure there's lots of risks that the attorneys put 0:15:09.200 --> 0:15:13.960 into the prospectus. We get questions about interchange all the time. 0:15:14.120 --> 0:15:18.920 We really like this model of relying primarily on payments 0:15:19.000 --> 0:15:22.640 driven revenue. That's about seventy two percent of our revenue 0:15:22.720 --> 0:15:24.800 comes from payments, and what we like about it is 0:15:24.800 --> 0:15:27.480 it's aligned with the best interests of our members. 0:15:27.880 --> 0:15:29.280 We have to earn our position. 0:15:29.000 --> 0:15:31.280 As the top of wallet card every day, and we 0:15:31.320 --> 0:15:34.520 do it to the tune of about our average customer 0:15:34.560 --> 0:15:38.080 does about fifty four transactions of months, so they're incredibly engaged. 0:15:38.120 --> 0:15:40.720 And when you couple that with a digital first, low 0:15:40.800 --> 0:15:44.520 cost structure that allows us to develop very healthy, profitable 0:15:44.520 --> 0:15:48.120 relationships with this interchange driven business model. 0:15:48.320 --> 0:15:50.560 The reality is that our model. 0:15:50.280 --> 0:15:53.560 Has allowed us to offer fee free banking to millions 0:15:53.600 --> 0:15:55.960 of consumers who otherwise we'd be paying hundreds of dollars 0:15:55.960 --> 0:15:57.760 a year to have a bank account. 0:15:58.000 --> 0:16:00.800 You're able to be cheaper because of AI interesting quickly 0:16:00.840 --> 0:16:03.840 though regular to risk that those interchange fees go smaller, 0:16:03.840 --> 0:16:05.200 particularly if you become bigger. 0:16:06.600 --> 0:16:10.040 Well, you know, we have a balanced set of a revenue. 0:16:10.240 --> 0:16:14.160 In the payments area. We have a debit card payments volume. 0:16:14.200 --> 0:16:17.080 We also have a secured credit card that's actually growing 0:16:17.080 --> 0:16:18.440 at a faster clip than debit. 0:16:18.600 --> 0:16:21.120 So we think we're very well balanced. 0:16:21.280 --> 0:16:23.440 And given the love and engagement we have, there's no 0:16:23.520 --> 0:16:26.360 shortage of opportunities for us to offer new products and 0:16:26.400 --> 0:16:27.360 services over time. 0:16:28.640 --> 0:16:31.840 All right, Chris britt chime CEO. We're waiting for the 0:16:31.880 --> 0:16:34.760 start of trade, but indicating a big jump at the open. 0:16:34.840 --> 0:16:37.400 Thank you very much for joining us in Bloomberg Tech. 0:16:43.920 --> 0:16:46.240 Welcome back to Bloomberg Tech. I'm Caroline Hide in New 0:16:46.320 --> 0:16:47.560 York and I'm. 0:16:47.480 --> 0:16:49.920 Ed Ludlow in San Francisco. This is what we're watching 0:16:50.360 --> 0:16:52.760 in the markets. Earlier in the show, we brought you 0:16:52.840 --> 0:16:55.800 details of the Air India crash at Boeing seven eighty 0:16:55.880 --> 0:16:58.640 seven that has crashed in India. It was bound for 0:16:58.680 --> 0:17:03.040 London and two hundred pter are either assumed dead missing. 0:17:03.880 --> 0:17:06.560 It was a fatal crash, the worst in many years. 0:17:06.760 --> 0:17:08.960 As we explained earlier in the program, there's a lot 0:17:08.960 --> 0:17:12.040 that we do not know about that incident. It is 0:17:12.080 --> 0:17:14.800 clearly having an impact on Boeing stock, but when we 0:17:14.800 --> 0:17:17.280 get more details, will bring them to you. In the 0:17:17.320 --> 0:17:21.320 technology sector, Oracle and Oracle's earnings are really what's a 0:17:21.400 --> 0:17:25.160 driver in this market right now. The projection is top 0:17:25.200 --> 0:17:28.680 line growth of seventy seven zero percent within this fiscal year, 0:17:29.040 --> 0:17:33.440 but the backlog of business obligations performance obligations is about 0:17:33.440 --> 0:17:35.320 one hundred and thirty eight billion. You have names like 0:17:35.480 --> 0:17:38.280 Xai as a customer. They're involved in the Stargate project. 0:17:38.280 --> 0:17:41.600 With OpenAI stocks up fourteen percent, it's touched a fresh 0:17:41.600 --> 0:17:44.960 record high, and it's really what's driving at least the 0:17:45.080 --> 0:17:47.760 very technology focused indexes in the here and now. Let's 0:17:47.760 --> 0:17:50.240 get more on those results and bring in Bloomberg's Brody 0:17:50.359 --> 0:17:53.399 Ford and Brody. You've had a really interesting time of 0:17:53.480 --> 0:17:56.800 late covering this company, but the numbers were really big, 0:17:57.119 --> 0:18:00.840 particularly after two quarters. Prior to this, investors were left 0:18:00.880 --> 0:18:01.800 really disappointed. 0:18:03.720 --> 0:18:06.119 For many years if you said Oracle was going to 0:18:06.119 --> 0:18:08.919 become one of the biggest cloud companies. People would have 0:18:09.040 --> 0:18:12.040 not so nice words for you. But what's changed with 0:18:12.200 --> 0:18:15.640 AI is that, you know, their capacity constraints, right, all 0:18:15.640 --> 0:18:18.840 of the traditional giants, the Amazons and Microsoft and nobody 0:18:18.840 --> 0:18:21.600 can get these data centers up fast enough. And it 0:18:21.680 --> 0:18:24.840 really created this opportunity for Oracle and so they found that, 0:18:25.000 --> 0:18:27.960 particularly for the AI workloads, they've been able to sign 0:18:27.960 --> 0:18:31.000 an incredible amount of business. Of course, most of that 0:18:31.160 --> 0:18:33.560 is still looking out. I mean, you know, you listen 0:18:33.560 --> 0:18:36.440 to that executives on the call and they say, open 0:18:36.480 --> 0:18:39.320 AI stargate. We're still forming it, we're still getting our 0:18:39.320 --> 0:18:42.159 hands around it. But it's pretty clear that demand is 0:18:42.200 --> 0:18:42.600 coming in. 0:18:43.280 --> 0:18:46.080 Boy, didn't Larry Ellison articulate that. He said, they've caught 0:18:46.119 --> 0:18:48.240 one particular order that basically says, I. 0:18:48.119 --> 0:18:49.639 Want all of it, all of the capacity you. 0:18:49.680 --> 0:18:51.280 Bring, whether it's in europehether it's in an Asia, I 0:18:51.320 --> 0:18:54.240 want to take it. But therefore, what are the supply chain, 0:18:54.320 --> 0:18:58.800 the headaches, the bottlenecks that they now confront exactly. 0:18:58.800 --> 0:19:01.640 I mean, we all are familiar with the Nvidia chip shortages. 0:19:01.800 --> 0:19:05.000 We also hear reports of you know, the folks assembling 0:19:05.000 --> 0:19:08.080 the servers can assemble them fast enough. And so I 0:19:08.119 --> 0:19:10.760 think the one concern is that you spend all this 0:19:10.920 --> 0:19:14.040 money putting up these data centers and setting everything up. 0:19:14.640 --> 0:19:17.760 But does the market for cloud in for us stabilize 0:19:17.800 --> 0:19:20.000 two years out and now you're sitting on all this, 0:19:20.200 --> 0:19:23.240 you know, data center capacity that maybe isn't as out 0:19:23.240 --> 0:19:24.720 of a commodity as it is today. 0:19:25.760 --> 0:19:28.600 Bertie Ford, as always, we thank you and all things Oracle. 0:19:29.080 --> 0:19:31.760 Now let's turn back to Chime Financial. It's the company 0:19:31.800 --> 0:19:35.080 that's set to make his ip IPO debut, pricing well 0:19:35.119 --> 0:19:38.000 above the marketed range already and we're waiting for trading. 0:19:38.320 --> 0:19:40.720 Remember they raised eight hundred and sixty four million dollars. 0:19:41.280 --> 0:19:43.480 Just heard from the CEO, Chris Britt. We're now joined 0:19:43.480 --> 0:19:46.679 by one of these key backers, Sean Carolyn Menlo venture 0:19:46.720 --> 0:19:51.360 partner joins us. Now, how did you see the effectiveness 0:19:51.400 --> 0:19:54.480