1 00:00:01,440 --> 00:00:02,160 Speaker 1: From the heart. 2 00:00:02,279 --> 00:00:04,600 Speaker 2: We're Innovations Money and Power. 3 00:00:04,360 --> 00:00:09,119 Speaker 3: Collie in Silicon Valley, NBN. This is Bloomberg Technology with 4 00:00:09,240 --> 00:00:11,120 Speaker 3: Caroline Hyde and Ed Ludlove. 5 00:00:24,920 --> 00:00:27,160 Speaker 2: I'm Caroine, head of Bloomos World headquarters in New York. 6 00:00:27,280 --> 00:00:30,560 Speaker 2: This is Bloomberg Technology coming up in via. It surges 7 00:00:30,600 --> 00:00:33,560 Speaker 2: as AI demand Power is the company's outlook yet again. 8 00:00:34,000 --> 00:00:36,120 Speaker 2: We'll have full coverage on the company as it looks 9 00:00:36,120 --> 00:00:38,519 Speaker 2: to add two hundred and fifty billion dollars to its 10 00:00:38,520 --> 00:00:41,239 Speaker 2: market cap just today, and we'll get a read on 11 00:00:41,280 --> 00:00:43,680 Speaker 2: the state of the IPO market as Reddit gives up 12 00:00:43,680 --> 00:00:46,400 Speaker 2: to file publicly for its offering as soon as today. 13 00:00:46,560 --> 00:00:50,320 Speaker 2: Details to come. Plus from chips and IPOs to the Moon, 14 00:00:50,720 --> 00:00:52,720 Speaker 2: we get a preview on what we can expect from 15 00:00:52,840 --> 00:00:55,920 Speaker 2: exploration startup Intuitive Machines and its attempt to put a 16 00:00:56,080 --> 00:00:58,600 Speaker 2: US made lander on the Moon for the first time 17 00:00:58,640 --> 00:01:01,720 Speaker 2: in fifty years. That first, we've got to get to it. 18 00:01:02,080 --> 00:01:06,520 Speaker 2: Extraordinary moves once again, extraordinary moves and market capitalization and 19 00:01:06,600 --> 00:01:09,840 Speaker 2: yet still a valuation that is relatively cheap. In video 20 00:01:10,120 --> 00:01:13,440 Speaker 2: surging fifteen percent would be the biggest ever addition in 21 00:01:13,520 --> 00:01:16,039 Speaker 2: terms of marketcap on record that we've seen for any 22 00:01:16,080 --> 00:01:19,480 Speaker 2: single stock at fifteen percent, once again making it on 23 00:01:19,720 --> 00:01:21,720 Speaker 2: edge to get to that two trillion dollar mark when 24 00:01:21,720 --> 00:01:24,680 Speaker 2: it comes to market capitalization. And the reason that maybe 25 00:01:24,720 --> 00:01:27,760 Speaker 2: the valuation is still at thirty three times forward looking 26 00:01:27,800 --> 00:01:31,280 Speaker 2: earnings is because all those earnings keep on grising at 27 00:01:31,319 --> 00:01:33,839 Speaker 2: an extraordinary pace. Here's what guests had to say. 28 00:01:35,520 --> 00:01:38,160 Speaker 1: What a sensational set of results from Nvidia. 29 00:01:38,360 --> 00:01:41,000 Speaker 2: This is really the yearning's heard around the world. 30 00:01:41,040 --> 00:01:44,760 Speaker 4: I'll do my best to sort of contain my enthusiasm. 31 00:01:44,880 --> 00:01:47,240 Speaker 2: It seems each quarter they continue to surprise. 32 00:01:47,400 --> 00:01:49,120 Speaker 5: There are going to be significant benefits. 33 00:01:49,160 --> 00:01:51,200 Speaker 6: The only result that was going to be acceptable was 34 00:01:51,240 --> 00:01:52,960 Speaker 6: not only a beat, but a substantial beat. 35 00:01:53,200 --> 00:01:56,480 Speaker 7: This is a company that continues to execute and completely 36 00:01:56,520 --> 00:01:59,800 Speaker 7: blow away everybody's most robust forecast. 37 00:02:00,040 --> 00:02:03,440 Speaker 5: Hunt deny the impact that it's having across not just 38 00:02:03,520 --> 00:02:06,000 Speaker 5: in the US market and the US tech sector, but 39 00:02:06,080 --> 00:02:08,800 Speaker 5: actually globally. And I think one of those reasons is 40 00:02:08,840 --> 00:02:10,560 Speaker 5: that people are really buying into this idea that it 41 00:02:10,600 --> 00:02:11,480 Speaker 5: isn't the tipping point. 42 00:02:11,639 --> 00:02:14,240 Speaker 2: There is great momentum there. 43 00:02:14,560 --> 00:02:18,480 Speaker 8: People are beginning to wonder how many consecutive quarters can 44 00:02:18,520 --> 00:02:19,920 Speaker 8: this company continue. 45 00:02:19,560 --> 00:02:21,639 Speaker 7: To run with the big question has been how long 46 00:02:21,680 --> 00:02:22,480 Speaker 7: can this continue? 47 00:02:22,520 --> 00:02:24,920 Speaker 1: There is sort of a consensus in the industry to 48 00:02:24,919 --> 00:02:26,720 Speaker 1: put some competitive pressure. 49 00:02:26,440 --> 00:02:27,160 Speaker 2: Back on in video. 50 00:02:27,200 --> 00:02:30,440 Speaker 7: The competition has never been more fierce than it is 51 00:02:30,520 --> 00:02:33,680 Speaker 7: right now foreign video, but they have a huge headstart. 52 00:02:33,800 --> 00:02:36,760 Speaker 8: This tidal wave of spend, it's coming to the rest 53 00:02:36,800 --> 00:02:39,520 Speaker 8: of tech and in our opinion, that's going to continue 54 00:02:39,560 --> 00:02:41,760 Speaker 8: to fuel this tech bill market. 55 00:02:41,480 --> 00:02:44,160 Speaker 2: The equity market sort of really nicely sort of set 56 00:02:44,240 --> 00:02:44,959 Speaker 2: up from here. 57 00:02:44,960 --> 00:02:47,360 Speaker 1: This AI party, it's just getting started. 58 00:02:48,680 --> 00:02:52,359 Speaker 2: Blueberg Intelligence senior analyst many saying joins us to take 59 00:02:52,440 --> 00:02:55,200 Speaker 2: us on a gear from it just getting started. What 60 00:02:55,240 --> 00:02:57,680 Speaker 2: was extraordinary is if you were training after hours and 61 00:02:57,680 --> 00:02:59,800 Speaker 2: not everyone does. At one point you were looking at 62 00:02:59,800 --> 00:03:03,560 Speaker 2: a lot. What pushed us significantly back into the green. 63 00:03:03,840 --> 00:03:06,400 Speaker 6: Yeah, so when you look at the print, the China 64 00:03:06,480 --> 00:03:09,400 Speaker 6: numbers stood out. So China used to be twenty percent 65 00:03:09,440 --> 00:03:12,920 Speaker 6: of revenue. Now it was mid a single digit. So 66 00:03:12,960 --> 00:03:17,160 Speaker 6: clearly they've had some headwinds. But despite that, they come 67 00:03:17,200 --> 00:03:20,440 Speaker 6: out and raise the forecast for another ten percent. And 68 00:03:20,840 --> 00:03:23,800 Speaker 6: you know, that's what's most impressive about the results is 69 00:03:24,320 --> 00:03:27,080 Speaker 6: not only have they executed well, they have not missed 70 00:03:27,080 --> 00:03:29,760 Speaker 6: a beat in terms of shipping new product. So they're 71 00:03:29,800 --> 00:03:33,440 Speaker 6: talking about H two hundred chips in two Q that's 72 00:03:33,480 --> 00:03:35,760 Speaker 6: double the performance of H one hundred. And we know 73 00:03:35,920 --> 00:03:38,960 Speaker 6: H one hundred was double the performance of A one hundred. 74 00:03:39,000 --> 00:03:42,800 Speaker 6: So clearly you know they're executing to perfection here and 75 00:03:42,840 --> 00:03:46,080 Speaker 6: they keep delivering quarter after quarter of perfection. I mean, 76 00:03:46,120 --> 00:03:49,200 Speaker 6: the question to me is really what is the addressable market? 77 00:03:49,240 --> 00:03:53,080 Speaker 6: With Jensen said it's one trillion incremental over the next 78 00:03:53,080 --> 00:03:55,840 Speaker 6: five years. And they are very well positioned on the 79 00:03:55,880 --> 00:03:59,120 Speaker 6: compute and networking side. So if you take that you 80 00:03:59,160 --> 00:04:02,640 Speaker 6: know four and model that, you will believe they can keep, 81 00:04:02,960 --> 00:04:06,680 Speaker 6: you know, continuing with these numbers. But at some point 82 00:04:07,160 --> 00:04:09,480 Speaker 6: there will be a digestion phase because they are exposed 83 00:04:09,520 --> 00:04:13,160 Speaker 6: to hyperscalers. The capex is what fifty percent of their 84 00:04:13,200 --> 00:04:16,919 Speaker 6: data center revenue is coming from hyperscaler capex. So that's 85 00:04:17,080 --> 00:04:20,760 Speaker 6: ten companies, which means every hyperscaler is about five percent 86 00:04:20,800 --> 00:04:24,240 Speaker 6: of in video's revenue. And they are buying these ships, 87 00:04:24,279 --> 00:04:26,800 Speaker 6: but for how long and if one of them does 88 00:04:26,839 --> 00:04:29,680 Speaker 6: get their own chip, what impact does it have on 89 00:04:29,720 --> 00:04:32,240 Speaker 6: a video's growth. Probably people are not going to talk 90 00:04:32,279 --> 00:04:33,960 Speaker 6: about it for the next one or two quarters. This 91 00:04:34,080 --> 00:04:35,920 Speaker 6: is more of you know, a four five quarter question. 92 00:04:36,279 --> 00:04:40,320 Speaker 2: But Jensen himself has started to talk about diversification, talking 93 00:04:40,360 --> 00:04:43,400 Speaker 2: that sovereigns need to have access to their own compute, 94 00:04:43,600 --> 00:04:45,680 Speaker 2: that companies need to do that. That's why they have 95 00:04:45,800 --> 00:04:47,680 Speaker 2: this deal with Cisco. How much do you think that 96 00:04:47,720 --> 00:04:50,800 Speaker 2: they can diversify away from these mega companies that are 97 00:04:50,800 --> 00:04:52,240 Speaker 2: so dominating their revenue. 98 00:04:52,279 --> 00:04:54,839 Speaker 6: I mean they need that. And Jensen said there will 99 00:04:54,880 --> 00:04:58,440 Speaker 6: be more than five foundational models. So right now, the 100 00:04:58,680 --> 00:05:01,600 Speaker 6: prevailing market view is there will be four or five 101 00:05:01,760 --> 00:05:05,360 Speaker 6: foundational large ANGLID models and every company will standardize on that. 102 00:05:05,640 --> 00:05:08,320 Speaker 6: What he's saying is they will be vertical specific large 103 00:05:08,320 --> 00:05:12,000 Speaker 6: anguage models, sovereign large ANGLID models, because these companies don't 104 00:05:12,000 --> 00:05:15,240 Speaker 6: want to give away their data to open AI or Gemini. 105 00:05:15,640 --> 00:05:19,040 Speaker 6: And so if that's the case, then yes, these companies 106 00:05:19,120 --> 00:05:21,400 Speaker 6: need to invest or governments need to have the same 107 00:05:21,520 --> 00:05:24,760 Speaker 6: level of CAPEX investments what hyperscalers have done over the 108 00:05:24,800 --> 00:05:26,920 Speaker 6: last two three years in terms of buying these in 109 00:05:27,040 --> 00:05:30,039 Speaker 6: video chips. But if the standardized models are going to 110 00:05:30,040 --> 00:05:32,479 Speaker 6: be the four or five models that we know, then 111 00:05:32,600 --> 00:05:35,840 Speaker 6: I think it will be hard to justify companies spending 112 00:05:35,880 --> 00:05:39,280 Speaker 6: forty fifty billion dollars in capex to buy in video 113 00:05:39,320 --> 00:05:42,680 Speaker 6: chips for training, and Jensen called out inferencing, which is 114 00:05:42,680 --> 00:05:46,600 Speaker 6: the other big opportunity. So if Nvidia chips are going 115 00:05:46,680 --> 00:05:50,680 Speaker 6: to be in smartphones, in PCs and inferencing other types 116 00:05:50,720 --> 00:05:53,800 Speaker 6: of inferencing, then yes, that expands their market. But we 117 00:05:53,839 --> 00:05:56,640 Speaker 6: don't know those details. All we know is next quarter 118 00:05:56,920 --> 00:05:58,880 Speaker 6: they're going to come out and probably raise by another 119 00:05:58,920 --> 00:06:02,039 Speaker 6: ten percent because it probably sandbag, you know, in terms 120 00:06:02,040 --> 00:06:03,680 Speaker 6: of the visibility they already. 121 00:06:03,400 --> 00:06:06,960 Speaker 2: Have, and we're expecting next quarter another revenue increase in 122 00:06:07,040 --> 00:06:10,920 Speaker 2: more than two hundred percent. Just always brilliant to push 123 00:06:10,960 --> 00:06:13,760 Speaker 2: it forward with Blue Meg Intelligence Senior analyst Mandat Sing, 124 00:06:13,880 --> 00:06:16,600 Speaker 2: we always thank him. And actually we were just referencing 125 00:06:16,640 --> 00:06:19,240 Speaker 2: maybe some of the flies in the ointment, which was China. 126 00:06:19,440 --> 00:06:22,359 Speaker 2: Let's dive deep on into that because the China story 127 00:06:22,440 --> 00:06:25,320 Speaker 2: is important and Johnkangli is joining us now. She is 128 00:06:25,360 --> 00:06:28,000 Speaker 2: indeed the CEO, founder and kind of research at JL 129 00:06:28,040 --> 00:06:30,839 Speaker 2: Warren Capital. And what's so interesting about JL Warren Capital 130 00:06:30,920 --> 00:06:34,440 Speaker 2: is you're basically focusing a limelight on the companies that 131 00:06:34,520 --> 00:06:36,840 Speaker 2: do have a big exposure to China and really doing 132 00:06:36,960 --> 00:06:40,359 Speaker 2: deep dive research into them. How much exposure is in 133 00:06:40,440 --> 00:06:45,640 Speaker 2: video going to have going forward. 134 00:06:43,800 --> 00:06:46,400 Speaker 1: Well, I think it's very dynamic. Right now, they have 135 00:06:46,480 --> 00:06:49,480 Speaker 1: five percent as the CEO said on a conference call, 136 00:06:49,600 --> 00:06:53,599 Speaker 1: yes today in this co year if this COO year 137 00:06:53,640 --> 00:06:56,719 Speaker 1: twenty twenty three was twenty percent, so there's a sharp 138 00:06:57,760 --> 00:07:01,680 Speaker 1: job in the direct exposure to the China market. However, 139 00:07:02,120 --> 00:07:06,680 Speaker 1: they're offshore data centers owned by Chinese or Chinese entities 140 00:07:06,720 --> 00:07:10,080 Speaker 1: that use in video chips, so those will be the 141 00:07:10,080 --> 00:07:14,080 Speaker 1: markets in Singapore, markets of Middle East. So if you 142 00:07:14,200 --> 00:07:18,080 Speaker 1: combine all those, I would say that's probably add up 143 00:07:18,120 --> 00:07:24,040 Speaker 1: to fifteen twenty percent of the Nvidia AI chip exposure. 144 00:07:24,560 --> 00:07:29,840 Speaker 1: So depending on Biden administration's approved approval. But China is 145 00:07:29,920 --> 00:07:33,760 Speaker 1: expecting the shipment of the H twenty, which is a 146 00:07:33,840 --> 00:07:38,600 Speaker 1: dumbdown version of the H one hundred, one hundred AI 147 00:07:38,760 --> 00:07:42,280 Speaker 1: chip shipment in second quarter. But then again it really 148 00:07:42,320 --> 00:07:47,120 Speaker 1: depends on the administration in the US. There's absolutely a 149 00:07:47,160 --> 00:07:52,320 Speaker 1: shortage of equivalent of the AI GPU chips in China, 150 00:07:52,360 --> 00:07:55,520 Speaker 1: even though their atcounts to catch up. But it's such 151 00:07:55,520 --> 00:07:59,600 Speaker 1: a long and a complex supply chain. It's not something 152 00:08:00,120 --> 00:08:02,680 Speaker 1: it's not writing a code, it's not a software which 153 00:08:02,840 --> 00:08:04,600 Speaker 1: China is very good at. 154 00:08:05,760 --> 00:08:09,120 Speaker 2: So how quickly therefore, do you think drinking the much 155 00:08:09,160 --> 00:08:12,560 Speaker 2: has been said that if we do indeed force US 156 00:08:12,680 --> 00:08:16,120 Speaker 2: companies to exit their exposure to China, ultimately we're just 157 00:08:16,160 --> 00:08:19,520 Speaker 2: fast tracking the supply chain, the internal supply chain of China. 158 00:08:19,560 --> 00:08:22,120 Speaker 2: Do you believe that? Or ultimately does Jensen, as he 159 00:08:22,200 --> 00:08:25,160 Speaker 2: seems to still say, want to still be winning in China. 160 00:08:25,200 --> 00:08:26,720 Speaker 2: He still seems to think that there is a place 161 00:08:26,720 --> 00:08:27,840 Speaker 2: for his company in China. 162 00:08:29,600 --> 00:08:33,240 Speaker 1: Well, I mean there's short term, there's long term. Short term, 163 00:08:33,320 --> 00:08:39,640 Speaker 1: there's no equivalent of a similar technology architecture and production capacity, 164 00:08:39,640 --> 00:08:42,200 Speaker 1: which is really important. As we've seen, this is a 165 00:08:42,200 --> 00:08:46,360 Speaker 1: company in operations for thirty years and went through a 166 00:08:46,520 --> 00:08:51,360 Speaker 1: very rich history of ups and downs, and the A 167 00:08:51,480 --> 00:08:54,920 Speaker 1: one hundred, which is the first of dominating AI GPU 168 00:08:56,000 --> 00:09:01,000 Speaker 1: parallel computing chip, there was long the two years ago. 169 00:09:01,080 --> 00:09:04,080 Speaker 1: It takes many a couple of years to figure out 170 00:09:04,760 --> 00:09:09,439 Speaker 1: the Cobos production capacity, and even today demand far exceeds 171 00:09:09,520 --> 00:09:12,319 Speaker 1: the supply right, So, I mean it's it is a 172 00:09:12,520 --> 00:09:16,960 Speaker 1: very complex. It's a hardware company predominantly as of today, 173 00:09:17,040 --> 00:09:20,800 Speaker 1: and the supply chain is very long, and it's primarily 174 00:09:20,840 --> 00:09:25,040 Speaker 1: in Taiwan and the cross Asia. So it's gonna take 175 00:09:25,040 --> 00:09:29,320 Speaker 1: a very very long time for huaweih to figure out 176 00:09:29,440 --> 00:09:33,920 Speaker 1: where to source it's a Capex equipment, where to you know, 177 00:09:34,080 --> 00:09:38,760 Speaker 1: source the packaging and the testing qualification, et cetera. So 178 00:09:39,080 --> 00:09:42,520 Speaker 1: I mean I would think five to ten years and 179 00:09:42,679 --> 00:09:46,400 Speaker 1: so till then there's enough room for Video to ship 180 00:09:46,440 --> 00:09:49,040 Speaker 1: its legacy chips to try to just get it going, 181 00:09:49,120 --> 00:09:52,120 Speaker 1: and for companies to figure out how to run their 182 00:09:52,280 --> 00:09:54,640 Speaker 1: kind of lower version of AI computing. 183 00:09:55,160 --> 00:09:58,520 Speaker 2: Jamhank, I'm interested in your perspective on the total addressable 184 00:09:58,520 --> 00:10:01,600 Speaker 2: market here because I and put out this four hundred 185 00:10:01,880 --> 00:10:05,920 Speaker 2: billion dollar figure and then Jensen just saw that and 186 00:10:06,000 --> 00:10:08,640 Speaker 2: raised the bar significantly, saying it's a trillion. Where do 187 00:10:08,679 --> 00:10:11,800 Speaker 2: you stand on time when it comes to these sources 188 00:10:11,840 --> 00:10:13,320 Speaker 2: of chips. 189 00:10:14,320 --> 00:10:17,000 Speaker 1: Well, I think it's so early on the adoption it's 190 00:10:17,040 --> 00:10:21,920 Speaker 1: kind of like irrelevant question. So annually globally you're about 191 00:10:21,960 --> 00:10:27,160 Speaker 1: like thirteen fourteen servershipment and currently AI attached ray is 192 00:10:27,200 --> 00:10:31,040 Speaker 1: about four percent, right, So I mean, really, depending on 193 00:10:31,080 --> 00:10:35,240 Speaker 1: what you think the AI attached ray should be in 194 00:10:35,280 --> 00:10:39,360 Speaker 1: a normalized circumstance, but right now, I mean, no one 195 00:10:39,400 --> 00:10:43,200 Speaker 1: knows I mean even assuming what Lisa to the four 196 00:10:43,400 --> 00:10:46,760 Speaker 1: you know, hundred number is four hundred billion, and let's 197 00:10:46,760 --> 00:10:50,320 Speaker 1: assume a video takes sixty or seventy percent of that 198 00:10:50,520 --> 00:10:56,760 Speaker 1: AI chip market, and times it's normalized, let's say normalized 199 00:10:56,800 --> 00:11:00,600 Speaker 1: the net operating marginal forty percent versus today fifty percent, 200 00:11:00,720 --> 00:11:05,440 Speaker 1: because they have such a bargaining power to its customers 201 00:11:05,480 --> 00:11:09,040 Speaker 1: because of the shortage of supply and and you know, 202 00:11:09,240 --> 00:11:13,320 Speaker 1: a product mix, and that gives you three hundred billion 203 00:11:13,520 --> 00:11:18,559 Speaker 1: run rate of net profit annually and times whichever multiple 204 00:11:18,600 --> 00:11:20,920 Speaker 1: you want to put it. You can argue it's hardware 205 00:11:21,040 --> 00:11:23,920 Speaker 1: so and it's growing so far, it's on way becoming 206 00:11:24,000 --> 00:11:27,840 Speaker 1: the industry goals standard. So you put twenty five comes 207 00:11:28,480 --> 00:11:32,240 Speaker 1: pe on a normalized demand cycle, so that gives you 208 00:11:32,280 --> 00:11:36,640 Speaker 1: about like a three trillion market market cap versus today, 209 00:11:36,720 --> 00:11:40,400 Speaker 1: I guess it's one point seven two trillion, So we 210 00:11:40,440 --> 00:11:44,440 Speaker 1: are looking at pretty close to doubling. You know, in 211 00:11:44,480 --> 00:11:47,760 Speaker 1: the next few years. It could be bigger than that, 212 00:11:47,880 --> 00:11:51,599 Speaker 1: because lisa tous number can be too low. Gens and 213 00:11:51,679 --> 00:11:54,920 Speaker 1: Hunt's number could be closer to reality. Just no one knows. 214 00:11:55,160 --> 00:11:59,400 Speaker 1: It really depends on the air market application development. But 215 00:11:59,520 --> 00:12:01,760 Speaker 1: one thing I want to say is, look at this 216 00:12:01,920 --> 00:12:06,560 Speaker 1: quarter's growth margin seventy seven percent. That's really really rare. 217 00:12:07,240 --> 00:12:09,520 Speaker 1: The only company that I can think of of a 218 00:12:09,600 --> 00:12:13,480 Speaker 1: gross margin closer to that is Earmese, which tells me 219 00:12:13,640 --> 00:12:17,680 Speaker 1: that this is a story that demand the far exceeds 220 00:12:17,720 --> 00:12:21,880 Speaker 1: stip supply, and the company has so much bargaining power 221 00:12:21,960 --> 00:12:26,960 Speaker 1: to its suppliers, and there's tremendous operating and the economy 222 00:12:27,000 --> 00:12:27,679 Speaker 1: of skill. 223 00:12:28,559 --> 00:12:31,880 Speaker 2: Putting it very succinctly. At the end, there still much 224 00:12:32,040 --> 00:12:34,559 Speaker 2: to be made of this particular stock move, and many 225 00:12:34,640 --> 00:12:36,840 Speaker 2: still feeling they want to get in jail. Warren Capital 226 00:12:36,920 --> 00:12:39,640 Speaker 2: CEO and founder John Henley, it's been brilliant to get 227 00:12:39,640 --> 00:12:42,080 Speaker 2: your expertise today, Thank you very much. Indeed, meanwhile, let's 228 00:12:42,120 --> 00:12:44,320 Speaker 2: check in on the border markets, because there is real 229 00:12:44,360 --> 00:12:48,240 Speaker 2: impact here. Semaschal said it. This is a global repercussion story. Look, 230 00:12:48,240 --> 00:12:50,160 Speaker 2: we've seen the nasnack cup two point three percent, but 231 00:12:50,240 --> 00:12:53,240 Speaker 2: the Japanese Index and Nikke search to a new record high. 232 00:12:53,240 --> 00:12:55,760 Speaker 2: Why because the likes of soft Bank. Of course, AI 233 00:12:55,840 --> 00:12:59,320 Speaker 2: related companies did a lot of the high bar making 234 00:12:59,360 --> 00:13:01,760 Speaker 2: today on the back of these numbers coming from Nvidio 235 00:13:01,800 --> 00:13:04,640 Speaker 2: stops six hundred over in Europe, a new record high 236 00:13:04,679 --> 00:13:06,920 Speaker 2: there as well. Again, this is a tech play. This 237 00:13:07,040 --> 00:13:09,760 Speaker 2: is in euphoria around the productivity gains that we can 238 00:13:09,760 --> 00:13:11,559 Speaker 2: get out of AI. So we're up nine tens of 239 00:13:11,600 --> 00:13:13,439 Speaker 2: a percent and a new record. Maybe don't have a 240 00:13:13,440 --> 00:13:15,320 Speaker 2: little look at what's happening in some other risk assets. 241 00:13:15,320 --> 00:13:17,760 Speaker 2: A choice for this particular show Crypto. Look, it's one 242 00:13:17,760 --> 00:13:19,960 Speaker 2: on risk asset that'shap not surging in quite the same 243 00:13:20,040 --> 00:13:22,040 Speaker 2: Lockstep has announced that, but we are still up some 244 00:13:22,080 --> 00:13:24,600 Speaker 2: six tens percent on the day. We're around that almost 245 00:13:24,640 --> 00:13:27,760 Speaker 2: fifty two thousand dollars level. I mean while coming up 246 00:13:27,920 --> 00:13:30,840 Speaker 2: Reddit it gives up to file for its initial public 247 00:13:30,880 --> 00:13:35,600 Speaker 2: offering very very soon details to come, and watching shares 248 00:13:35,600 --> 00:13:38,319 Speaker 2: of well AIGHT and T, T Mobile, Verizon. Look, I'm 249 00:13:38,320 --> 00:13:40,760 Speaker 2: sorry if you're out there today with an AT and 250 00:13:40,880 --> 00:13:44,680 Speaker 2: T contract, you've had some problems getting around using your service. 251 00:13:44,880 --> 00:13:47,280 Speaker 2: There have been sort of ever since three am, some 252 00:13:47,400 --> 00:13:49,840 Speaker 2: issues with down de tech to showing that ultimately the 253 00:13:49,880 --> 00:13:51,800 Speaker 2: network has been forced offline. We're off by two point 254 00:13:51,840 --> 00:13:54,400 Speaker 2: nine percent on AIGHT and T Mobile and indeed Verizon, 255 00:13:54,440 --> 00:13:57,960 Speaker 2: even though they said their overall networks were working well, 256 00:13:58,080 --> 00:14:00,720 Speaker 2: they too, were affected by eight and issues. 257 00:14:00,760 --> 00:14:02,360 Speaker 9: We keep an eye on those stocks. This is Bloomberg 258 00:14:02,400 --> 00:14:12,880 Speaker 9: Technology time now for talking tech. 259 00:14:12,920 --> 00:14:16,000 Speaker 2: Of first up, Google actually pausing its AI made images 260 00:14:16,040 --> 00:14:19,280 Speaker 2: of people that's in their Gemini after criticism about how 261 00:14:19,280 --> 00:14:21,840 Speaker 2: it was handling race. Earlier this week, Google said it 262 00:14:21,880 --> 00:14:24,760 Speaker 2: was aware that Gemini was offering what it called inaccuracies 263 00:14:25,000 --> 00:14:28,680 Speaker 2: in some historical image generation depictions. Company now says it's 264 00:14:28,720 --> 00:14:31,920 Speaker 2: working to address the issues with its image generative feature. 265 00:14:32,400 --> 00:14:32,760 Speaker 9: Well, it's a. 266 00:14:32,760 --> 00:14:35,200 Speaker 2: Venture firm and recent Horowitz It's just invested one hundred 267 00:14:35,240 --> 00:14:38,400 Speaker 2: million dollars in a cryptot startup called Eigenlayer. Now the 268 00:14:38,440 --> 00:14:40,560 Speaker 2: announcement suggests that some of the industry's top back is 269 00:14:40,560 --> 00:14:42,880 Speaker 2: that they're still bending on blockchain despite what has been 270 00:14:42,920 --> 00:14:45,880 Speaker 2: a steep downturn in cryptoventure funding. However, the VC firm 271 00:14:46,120 --> 00:14:49,760 Speaker 2: was the sole investor in Iigonlayer's funding round, and social 272 00:14:49,840 --> 00:14:52,760 Speaker 2: media platform Reddit, well, it has struck a deal with 273 00:14:52,760 --> 00:14:55,520 Speaker 2: Google we understand now. According to Reuters, the deal will 274 00:14:55,560 --> 00:14:58,680 Speaker 2: make reddits content available for training the search engine giants 275 00:14:58,840 --> 00:15:02,920 Speaker 2: artificial intelligence models. So basically raking in so much needed 276 00:15:02,960 --> 00:15:05,840 Speaker 2: revenue each year by giving access to its data. And 277 00:15:05,880 --> 00:15:08,080 Speaker 2: let's just talk about Reddit more broadly, because this comes 278 00:15:08,120 --> 00:15:10,560 Speaker 2: ahead of an expected filing of its S one within 279 00:15:10,600 --> 00:15:13,480 Speaker 2: the coming days for its hotly anticipated IPO. We're going 280 00:15:13,520 --> 00:15:15,240 Speaker 2: to bring in Katie roof now for more. And it 281 00:15:15,400 --> 00:15:17,360 Speaker 2: is notable that we're sort of suddenly to hear about 282 00:15:17,360 --> 00:15:20,320 Speaker 2: these deals, these sort of revenue generating deals when it 283 00:15:20,320 --> 00:15:23,480 Speaker 2: comes to access to Reddit's own data for training AI 284 00:15:24,040 --> 00:15:27,120 Speaker 2: ahead of what could be an AI IPO filing. 285 00:15:29,400 --> 00:15:33,440 Speaker 3: Ray you know, obviously they're hoping to get some buzz. 286 00:15:33,920 --> 00:15:37,320 Speaker 3: AI is a higher category rate now, and so Reddit, 287 00:15:37,400 --> 00:15:40,920 Speaker 3: which is one to IPO for three years now, is 288 00:15:41,040 --> 00:15:44,680 Speaker 3: hoping that this AI partnership is going to say Wall Street. 289 00:15:44,800 --> 00:15:46,600 Speaker 2: Yeah, and it's just one name. And of course there 290 00:15:46,640 --> 00:15:48,880 Speaker 2: are a fair few companies wanting data to train their 291 00:15:48,880 --> 00:15:50,960 Speaker 2: AI models on. So we could see yet more of 292 00:15:51,000 --> 00:15:53,600 Speaker 2: it flow in and yet more money to be agreed 293 00:15:53,600 --> 00:15:55,000 Speaker 2: to if we do, indeed think it's going to be 294 00:15:55,000 --> 00:15:57,760 Speaker 2: about sixty million in revenue per year. I'm interested in 295 00:15:58,200 --> 00:16:02,720 Speaker 2: ultimately what means and why Reddit would be looking to 296 00:16:02,760 --> 00:16:05,960 Speaker 2: finally go public. Now, what is it that they're seeing 297 00:16:06,000 --> 00:16:07,680 Speaker 2: that the reading that means that this is the time 298 00:16:07,720 --> 00:16:08,880 Speaker 2: to tap the market. 299 00:16:09,600 --> 00:16:13,200 Speaker 3: So what happened was Reddit announced in late twenty twenty 300 00:16:13,240 --> 00:16:16,680 Speaker 3: one that they were that they had filed for IPO. 301 00:16:16,800 --> 00:16:20,080 Speaker 3: But that was right when the IPO window closed for 302 00:16:20,440 --> 00:16:24,960 Speaker 3: tech IPOs and so other than you know, instacart and 303 00:16:25,040 --> 00:16:27,600 Speaker 3: Clay they own arm last September, those are the only 304 00:16:27,680 --> 00:16:31,560 Speaker 3: tech ipeas we've had in over two years. And so 305 00:16:32,160 --> 00:16:35,280 Speaker 3: Reddit didn't restart the IPO window. 306 00:16:35,840 --> 00:16:37,760 Speaker 2: Uh, Instacart tried to. 307 00:16:38,760 --> 00:16:41,400 Speaker 3: But now Reddit's going to try to reopen the window 308 00:16:41,760 --> 00:16:45,160 Speaker 3: in in part two of attempting to excite the market 309 00:16:45,440 --> 00:16:46,880 Speaker 3: about tech IPOs again. 310 00:16:47,640 --> 00:16:50,120 Speaker 2: Sure, so it's been a long time coming, exciting some 311 00:16:50,200 --> 00:16:53,240 Speaker 2: potential vcs and early checks in as well to finally 312 00:16:53,280 --> 00:16:55,960 Speaker 2: get some liquidity. Event, Katie Ruth, we thank you so 313 00:16:56,040 --> 00:16:58,440 Speaker 2: much for bringing us the expertise. And well we wait, 314 00:16:58,480 --> 00:17:08,920 Speaker 2: we watched on Reddit. Let's just focus in on EV's 315 00:17:08,960 --> 00:17:11,600 Speaker 2: a little bit more, the Vietnamese electric vehicle maker vin Fast. 316 00:17:11,840 --> 00:17:14,679 Speaker 2: It's actually shares have been moving around today on the 317 00:17:14,680 --> 00:17:17,199 Speaker 2: downside at one point because its earnings report showed that 318 00:17:17,320 --> 00:17:20,800 Speaker 2: losses increased during the fiscal fourth quarter, but revenue did jump, 319 00:17:20,800 --> 00:17:23,240 Speaker 2: in fact, doubling from a year on year basis. We've 320 00:17:23,240 --> 00:17:26,240 Speaker 2: got then acceleration of automobile deliveries happening for the company. 321 00:17:26,640 --> 00:17:29,520 Speaker 2: Vin Fast, chairwoman of the board of directors. Madame twy 322 00:17:29,640 --> 00:17:32,600 Speaker 2: Le joins us now and mad An Twey. I'm interested 323 00:17:32,600 --> 00:17:36,320 Speaker 2: about that loss widening. What's driving the losses escalating at 324 00:17:36,359 --> 00:17:36,960 Speaker 2: the moment. 325 00:17:39,359 --> 00:17:43,560 Speaker 10: The Q four versus KILLED three, Actually that there was 326 00:17:43,600 --> 00:17:47,800 Speaker 10: some one half adjustment of the inventory. Otherwise the trend 327 00:17:48,720 --> 00:17:52,840 Speaker 10: has been positive, shall we The imagine up to the 328 00:17:52,920 --> 00:17:57,560 Speaker 10: adjustment is about twenty eight twenty seven percent minus twenty 329 00:17:57,560 --> 00:18:00,879 Speaker 10: seven percent versus minus thirty seven percent in Q three, 330 00:18:01,200 --> 00:18:04,159 Speaker 10: So we're heading in the right direction. But because the 331 00:18:04,200 --> 00:18:06,399 Speaker 10: one half adjustment at the end of the year, you 332 00:18:06,520 --> 00:18:09,920 Speaker 10: see the gosh margin going down. 333 00:18:10,359 --> 00:18:12,440 Speaker 2: As we said, though revenues on the right rise. We've 334 00:18:12,480 --> 00:18:17,480 Speaker 2: seen thirteen and thirteen deliveries in the fiscal fourth quarter 335 00:18:17,640 --> 00:18:21,000 Speaker 2: of evs you target, I think it there is one 336 00:18:21,080 --> 00:18:24,680 Speaker 2: hundred thousand EV's for the year, for this fiscal year. 337 00:18:24,720 --> 00:18:25,399 Speaker 2: How do you get that? 338 00:18:25,800 --> 00:18:31,720 Speaker 10: And well we we as you know, we're the only 339 00:18:31,760 --> 00:18:34,959 Speaker 10: one in the world that has the whole lineup of 340 00:18:35,119 --> 00:18:38,720 Speaker 10: vehicles from a segment to the east segment. We have 341 00:18:39,000 --> 00:18:42,000 Speaker 10: this year we start delivering vehicles for the right hand 342 00:18:42,080 --> 00:18:45,000 Speaker 10: drive markets that Indonesia as well, so we have the 343 00:18:45,040 --> 00:18:49,240 Speaker 10: full lineup of vehicles in all segments for all different 344 00:18:49,280 --> 00:18:53,440 Speaker 10: markets we are we're already in Vietnam to Vietnam would 345 00:18:53,440 --> 00:18:57,840 Speaker 10: continue to be to support about half of that forecast 346 00:18:58,600 --> 00:19:01,600 Speaker 10: and continue to be the biggest because in twenty twenty 347 00:19:01,640 --> 00:19:06,480 Speaker 10: four the rest of it spread over across North America, 348 00:19:07,119 --> 00:19:11,359 Speaker 10: Europe and Middle East and Asia as well. So we 349 00:19:11,480 --> 00:19:14,080 Speaker 10: believe that with our light up of vehicles, our access 350 00:19:14,160 --> 00:19:16,280 Speaker 10: or different markets, we should be able to get there 351 00:19:16,480 --> 00:19:18,120 Speaker 10: to achieve the podcast. 352 00:19:18,920 --> 00:19:22,120 Speaker 2: And then with that supply, you need to have demand 353 00:19:22,240 --> 00:19:24,280 Speaker 2: meeting it on the other side, as you say it, 354 00:19:24,280 --> 00:19:26,960 Speaker 2: and I'm still your biggest market at the moment, But 355 00:19:27,280 --> 00:19:29,119 Speaker 2: tell us a little bit about where you look to 356 00:19:29,160 --> 00:19:32,160 Speaker 2: expand I know you've been looking into the Philippines from 357 00:19:32,600 --> 00:19:34,960 Speaker 2: just an exposure, but in Indonesia, as you were just saying, 358 00:19:35,600 --> 00:19:37,560 Speaker 2: where is the demand going to be coming from, because 359 00:19:37,560 --> 00:19:39,119 Speaker 2: we've just seen it with RIVIW and you've seen it 360 00:19:39,119 --> 00:19:42,240 Speaker 2: with Tesla that well, there's a pullback. It feels like 361 00:19:42,359 --> 00:19:45,399 Speaker 2: a slowing in growth of demand for electric vehicles because 362 00:19:45,440 --> 00:19:51,639 Speaker 2: people want about infrastructure, they're worried about their ability to charge. 363 00:19:50,600 --> 00:19:57,720 Speaker 10: Well, we've seen we have skepticism in adoptions for ebs. However, 364 00:19:58,040 --> 00:20:02,359 Speaker 10: the reality is the there's still adoption of evs in 365 00:20:02,400 --> 00:20:07,560 Speaker 10: all markets, right So the TV are the vehicle cells 366 00:20:07,720 --> 00:20:10,800 Speaker 10: increased by twelve percent and seventeen percent in the US 367 00:20:10,800 --> 00:20:14,840 Speaker 10: in Europe last year, but the EV sales increase by 368 00:20:15,560 --> 00:20:19,520 Speaker 10: forty five for forty forty five percent, so there's still 369 00:20:19,520 --> 00:20:22,960 Speaker 10: increased in in evs. There's still adoption of evs, and 370 00:20:23,000 --> 00:20:26,240 Speaker 10: we believe that there's a there's a market for EV's. 371 00:20:26,280 --> 00:20:29,479 Speaker 10: I mean, the forecast is still two million to perform 372 00:20:29,560 --> 00:20:34,400 Speaker 10: million of v cells this year in the US. We 373 00:20:34,680 --> 00:20:37,080 Speaker 10: look at so we believe that we should be able 374 00:20:37,119 --> 00:20:39,760 Speaker 10: to get some market shared in North America and in 375 00:20:39,800 --> 00:20:42,800 Speaker 10: Europe where we are the lord child products. But we 376 00:20:42,920 --> 00:20:46,359 Speaker 10: think that the volume driven markets for US in the 377 00:20:46,400 --> 00:20:49,600 Speaker 10: future would be in the markets closer to us, like 378 00:20:49,640 --> 00:20:53,520 Speaker 10: in Asia India for example, one point five million people, 379 00:20:53,600 --> 00:20:57,240 Speaker 10: the most populous country in the world with very low 380 00:20:57,280 --> 00:21:00,960 Speaker 10: adoption right now, or Indonesia, the third most populist country 381 00:21:00,960 --> 00:21:03,359 Speaker 10: in the world. Part of passion that we belong to 382 00:21:04,680 --> 00:21:08,080 Speaker 10: and also very low adoption right now. We believe that 383 00:21:08,119 --> 00:21:10,679 Speaker 10: we should be able in the long run get more 384 00:21:10,760 --> 00:21:11,359 Speaker 10: volume from. 385 00:21:11,280 --> 00:21:15,679 Speaker 2: This market as well. And Andrey Leamy staying up the Philippines, 386 00:21:16,280 --> 00:21:18,800 Speaker 2: thank you for being with us from Hanoi late in 387 00:21:18,840 --> 00:21:21,399 Speaker 2: the evening from Vinvast, we thank you very much. Indeed, 388 00:21:28,760 --> 00:21:31,119 Speaker 2: welcome back to LUMT Technology. I'm Caroline heard in New York. 389 00:21:31,200 --> 00:21:32,919 Speaker 2: Let's get your quit check on these markets. Halfway through 390 00:21:32,960 --> 00:21:33,560 Speaker 2: this training. 391 00:21:33,400 --> 00:21:35,480 Speaker 9: Day, and look, it is an AI story. 392 00:21:35,680 --> 00:21:38,520 Speaker 2: It is an earning beat from Nvidia that drives, and 393 00:21:38,560 --> 00:21:40,680 Speaker 2: that's that one hundred up some two and a half percent. 394 00:21:40,840 --> 00:21:43,240 Speaker 2: Chip makers really roaring. Look, and this isn't just a 395 00:21:43,440 --> 00:21:46,280 Speaker 2: US story. You're seeing this played out with the Japanese 396 00:21:46,359 --> 00:21:49,000 Speaker 2: Nike hitting a new record high stocks six hundred over 397 00:21:49,040 --> 00:21:50,800 Speaker 2: in Europe and a new record high we've just had 398 00:21:50,840 --> 00:21:53,200 Speaker 2: the close of trade in Europe were nine ten percent 399 00:21:53,240 --> 00:21:55,119 Speaker 2: FO one hundred and ninety five. But the socks, as 400 00:21:55,160 --> 00:21:57,480 Speaker 2: I say, other chip makers really managing to flourish at 401 00:21:57,520 --> 00:22:00,240 Speaker 2: the moment, as Marvel moves high at AMD as well 402 00:22:00,480 --> 00:22:03,200 Speaker 2: on what seems to be an enormous total addressable market 403 00:22:03,359 --> 00:22:07,280 Speaker 2: as was envisioned by Jensen over in video, up four 404 00:22:07,280 --> 00:22:08,960 Speaker 2: and a half percent on the socks. More broadly, moving 405 00:22:09,000 --> 00:22:10,680 Speaker 2: on and have a look at some other individual names, 406 00:22:10,720 --> 00:22:12,639 Speaker 2: and there have been other earnings we've got to get 407 00:22:12,640 --> 00:22:14,480 Speaker 2: our teeth into. But in Video front and center up 408 00:22:14,520 --> 00:22:16,840 Speaker 2: more than fifteen percent, so not just another AI player. 409 00:22:17,080 --> 00:22:19,359 Speaker 2: This is also up some eleven percent after its earnings 410 00:22:19,440 --> 00:22:22,000 Speaker 2: really showed that it's managing to capitalize on this particular 411 00:22:22,040 --> 00:22:25,080 Speaker 2: part of the market. Rivian, though ugly ugly off by 412 00:22:25,160 --> 00:22:28,440 Speaker 2: twenty seven percent after they slow their production, and indeed 413 00:22:28,480 --> 00:22:30,439 Speaker 2: they are more worried about having to be laying off 414 00:22:30,480 --> 00:22:32,800 Speaker 2: people ten percent of the workforce. Lightly to go, we're 415 00:22:32,840 --> 00:22:34,159 Speaker 2: going to be digging in some other names that have 416 00:22:34,240 --> 00:22:36,520 Speaker 2: been on the Movelenova, for example. But let's just have 417 00:22:36,640 --> 00:22:39,200 Speaker 2: a return to what's happening within in Video, because we 418 00:22:39,320 --> 00:22:40,480 Speaker 2: are up significantly. 419 00:22:40,560 --> 00:22:41,960 Speaker 9: We're a new record high. 420 00:22:42,000 --> 00:22:44,159 Speaker 2: We're at two hundred and fifty billion dollars worth of 421 00:22:44,200 --> 00:22:46,960 Speaker 2: market cap increase on the day, we're almost at a 422 00:22:47,040 --> 00:22:50,640 Speaker 2: two trillion dollar market capitalization. And yet despite that market cap, 423 00:22:51,080 --> 00:22:54,600 Speaker 2: the stock is actually still kind of cheap. Pe future 424 00:22:54,960 --> 00:22:57,679 Speaker 2: earnings that they keep on escalating and so on, from 425 00:22:57,720 --> 00:23:00,600 Speaker 2: a forwards PE basis, we're actually still only thirty three 426 00:23:01,040 --> 00:23:02,879 Speaker 2: stick in to all of that Kjin Savanis with us 427 00:23:02,880 --> 00:23:07,480 Speaker 2: BlueBag Intelligence for more on ultimately a company that just 428 00:23:07,600 --> 00:23:09,600 Speaker 2: knocks it out the park. I mean, have you seen 429 00:23:09,640 --> 00:23:13,439 Speaker 2: any other companies able to deliver twice now two hundred 430 00:23:13,480 --> 00:23:16,440 Speaker 2: percent growth on a revenue basis just escalating when it 431 00:23:16,520 --> 00:23:19,639 Speaker 2: comes to their overall earnings per share as well, I. 432 00:23:19,720 --> 00:23:21,840 Speaker 11: Have not in my career, and I mean, look, and 433 00:23:21,960 --> 00:23:24,520 Speaker 11: surprise on any media earnings is no longer a surprise. 434 00:23:24,720 --> 00:23:27,359 Speaker 11: This is something how we're getting accustomed to to expect 435 00:23:27,400 --> 00:23:30,160 Speaker 11: every time. But more than the magnitude of the beat, 436 00:23:30,400 --> 00:23:33,480 Speaker 11: it was the quality of the earnings that was reassuring 437 00:23:33,520 --> 00:23:36,120 Speaker 11: to us. On the supply side, it seems supply keeps 438 00:23:36,160 --> 00:23:38,520 Speaker 11: coming in strong. But more importantly they were able to 439 00:23:38,640 --> 00:23:41,520 Speaker 11: diversify the suppliers and you saw the benefit of that 440 00:23:41,640 --> 00:23:45,359 Speaker 11: in lower component costs in their gross margins. But more 441 00:23:45,440 --> 00:23:48,480 Speaker 11: importantly was the quality of the demand. It seems the 442 00:23:48,600 --> 00:23:52,280 Speaker 11: demand momentum is continuing, but it was also the broad 443 00:23:52,320 --> 00:23:55,320 Speaker 11: based demands not just from their largest cloud players, but 444 00:23:55,480 --> 00:23:59,119 Speaker 11: beyond that, to the Internet, to the hyperscalers, to the enterprises, 445 00:23:59,160 --> 00:24:01,480 Speaker 11: and to various different and vertical markets. 446 00:24:02,320 --> 00:24:05,720 Speaker 2: The one Arab demand people might be concerned about of course, 447 00:24:05,800 --> 00:24:08,680 Speaker 2: has been China cringing, and this still seems to be 448 00:24:08,760 --> 00:24:11,480 Speaker 2: an area that Gensen's really focused on, still thinking that 449 00:24:11,560 --> 00:24:13,040 Speaker 2: they can win and then there's a place for them 450 00:24:13,080 --> 00:24:13,600 Speaker 2: in that market. 451 00:24:15,119 --> 00:24:18,159 Speaker 11: Yeah, I mean we saw significant drop in China, right, 452 00:24:18,320 --> 00:24:20,520 Speaker 11: like almost a loss of two billion dollars just in 453 00:24:20,600 --> 00:24:23,520 Speaker 11: the data center. And we don't think this too. We 454 00:24:23,600 --> 00:24:26,080 Speaker 11: don't think this headwind is going away anytime soon, if 455 00:24:26,240 --> 00:24:29,639 Speaker 11: at all, getting worse with more restrictions. You know, in 456 00:24:29,720 --> 00:24:32,399 Speaker 11: the near term, it should not impact the trajectory because 457 00:24:33,280 --> 00:24:35,479 Speaker 11: this demand is running ahead of supply, so they can 458 00:24:35,560 --> 00:24:38,520 Speaker 11: easily ship this product that they would have like to 459 00:24:38,560 --> 00:24:40,960 Speaker 11: ship to China to other countries and the US. But 460 00:24:41,080 --> 00:24:43,200 Speaker 11: in the long term we think this does take the 461 00:24:43,320 --> 00:24:46,320 Speaker 11: bite out of their TAM opportunity, China being the second 462 00:24:46,400 --> 00:24:49,320 Speaker 11: largest market. Right if there was no restrictions, they could 463 00:24:49,359 --> 00:24:50,439 Speaker 11: have even grown much. 464 00:24:50,359 --> 00:24:51,760 Speaker 8: Faster for longer. 465 00:24:52,280 --> 00:24:53,080 Speaker 9: Extraordinary chart. 466 00:24:53,119 --> 00:24:55,240 Speaker 2: We were just looking out of data center revenue just 467 00:24:55,520 --> 00:24:58,680 Speaker 2: up to the right Green meg Intelligence analyst Conscience Uponne, 468 00:24:58,760 --> 00:25:00,640 Speaker 2: who had a very late night in a very early 469 00:25:00,680 --> 00:25:04,159 Speaker 2: start yesterday, we appreciate it a lot. Meanwhile, coming up 470 00:25:04,400 --> 00:25:07,639 Speaker 2: Female Founder's Fund, it hosted it's twenty twenty four CEO Summit. 471 00:25:07,840 --> 00:25:09,800 Speaker 2: I've at the New York Stock Exchange. I'm going to 472 00:25:09,800 --> 00:25:12,240 Speaker 2: be hearing from the founding partner and indeed one of 473 00:25:12,280 --> 00:25:14,960 Speaker 2: her portfolio companies that just raise some money. This is 474 00:25:15,040 --> 00:25:27,920 Speaker 2: really bad technology. Let's talk about the venture community and 475 00:25:28,200 --> 00:25:31,160 Speaker 2: the women in it and new Google. Female Founders Fund 476 00:25:31,240 --> 00:25:34,280 Speaker 2: founding partner has just been hosting the Year of Women 477 00:25:34,400 --> 00:25:37,680 Speaker 2: conference and the New York Stock Exchange. Here's what she 478 00:25:38,000 --> 00:25:41,040 Speaker 2: had to say about the VC environment right now, how 479 00:25:41,080 --> 00:25:43,440 Speaker 2: it's changing, and what she's seen for women investing in 480 00:25:43,520 --> 00:25:44,000 Speaker 2: tech sector. 481 00:25:44,119 --> 00:25:44,680 Speaker 9: Just take a listen. 482 00:25:46,880 --> 00:25:50,120 Speaker 4: I think it's a really interesting time in venture investing 483 00:25:50,240 --> 00:25:54,760 Speaker 4: right now. I think the investable categories have shifted significantly 484 00:25:55,359 --> 00:25:58,040 Speaker 4: for us at Female Founder's Fund. You know, we remain 485 00:25:58,119 --> 00:26:01,440 Speaker 4: really excited about digital health Health. You know, Maven was 486 00:26:01,480 --> 00:26:04,560 Speaker 4: one of our early investments. We just announced the funding, 487 00:26:04,680 --> 00:26:08,240 Speaker 4: the Series B funding for ULA this week, which is 488 00:26:08,359 --> 00:26:12,639 Speaker 4: incredibly exciting. Beauty and personal care is another category that 489 00:26:12,960 --> 00:26:17,240 Speaker 4: you know, we think remains resilient. You've seen some incredible 490 00:26:17,520 --> 00:26:22,200 Speaker 4: exits and outcomes over the past twelve months. Vertical software 491 00:26:22,280 --> 00:26:26,639 Speaker 4: solutions that remains you know, consistent theme across the last 492 00:26:27,440 --> 00:26:30,040 Speaker 4: the last decade, and then lastly, I would say the 493 00:26:30,119 --> 00:26:33,880 Speaker 4: newer category where we've been actively investing is climate tech. 494 00:26:34,760 --> 00:26:37,080 Speaker 2: Let's go in on climate tech because some might say 495 00:26:37,160 --> 00:26:39,879 Speaker 2: though that gets a whole load of politicization around it, 496 00:26:39,920 --> 00:26:42,879 Speaker 2: particularly was the in to an election year. How you 497 00:26:43,080 --> 00:26:46,280 Speaker 2: seeing real world use cases of the technology that you're 498 00:26:46,280 --> 00:26:46,920 Speaker 2: starting to back. 499 00:26:47,840 --> 00:26:50,880 Speaker 4: Yeah, I mean it's it's a fairly broad category. I'll 500 00:26:50,920 --> 00:26:53,760 Speaker 4: give you a couple of examples. So we invested in 501 00:26:53,840 --> 00:26:56,600 Speaker 4: the company last year called Watts, which is a waste 502 00:26:56,680 --> 00:27:01,200 Speaker 4: management software solution helping large hospitality players do a better 503 00:27:01,359 --> 00:27:06,520 Speaker 4: job of managing the expense around their waste. We've also 504 00:27:06,600 --> 00:27:11,119 Speaker 4: invested in the first hydrogen powered private plane company started 505 00:27:11,160 --> 00:27:15,800 Speaker 4: by a French aeronautics engineer. So I think, you know, 506 00:27:15,920 --> 00:27:19,680 Speaker 4: there's a lot of opportunity, but I think at the 507 00:27:19,760 --> 00:27:22,679 Speaker 4: end of the day, what we're really looking for is. 508 00:27:23,000 --> 00:27:23,880 Speaker 2: Where are the exits? 509 00:27:24,320 --> 00:27:28,119 Speaker 4: Are these categories or businesses that have you know, a 510 00:27:28,240 --> 00:27:33,040 Speaker 4: large acquire base, and I think you know, within climate 511 00:27:33,080 --> 00:27:36,520 Speaker 4: tech there's so much interest and so much need for 512 00:27:36,640 --> 00:27:38,000 Speaker 4: better products and solutions. 513 00:27:38,520 --> 00:27:41,080 Speaker 2: I'm sure a lot of your LPs often are asking 514 00:27:41,160 --> 00:27:43,879 Speaker 2: where are the exits? And you think a lot about 515 00:27:44,000 --> 00:27:46,639 Speaker 2: ultimately where we are in a landscape right now, IPO 516 00:27:46,760 --> 00:27:49,760 Speaker 2: market still not looking that pretty. Have you seen an 517 00:27:49,840 --> 00:27:52,440 Speaker 2: uptick in M and A? Have you seen interest and 518 00:27:52,600 --> 00:27:55,680 Speaker 2: inbound coming towards you after some of your pultfolio companies. 519 00:27:57,080 --> 00:27:59,600 Speaker 4: You know, I think the last twelve to eighteen months 520 00:27:59,640 --> 00:28:03,800 Speaker 4: have been incredibly challenging, both in terms of raising growth 521 00:28:03,920 --> 00:28:08,000 Speaker 4: capital as well as obviously you know, IPOL markets being 522 00:28:08,080 --> 00:28:10,960 Speaker 4: closed and M and A for that matter. 523 00:28:11,680 --> 00:28:14,080 Speaker 2: I actually don't you know. I think if you look. 524 00:28:15,600 --> 00:28:17,560 Speaker 4: To the remainder of this year, it's going to be challenging. 525 00:28:17,640 --> 00:28:20,800 Speaker 4: You have an election year coming up, and you know, 526 00:28:20,840 --> 00:28:24,520 Speaker 4: it's funny there's a model in VC right now survived 527 00:28:24,600 --> 00:28:27,040 Speaker 4: till twenty five. I think it's going to be, you know, 528 00:28:27,320 --> 00:28:30,000 Speaker 4: a tough year this year. But I think if you're 529 00:28:30,040 --> 00:28:34,080 Speaker 4: able to come through, that's the advice that we're giving 530 00:28:34,119 --> 00:28:34,680 Speaker 4: our founders. 531 00:28:35,160 --> 00:28:37,680 Speaker 2: And isn't it amazing that you know, you've quoted the 532 00:28:37,800 --> 00:28:39,920 Speaker 2: Year of women and we have just an end of 533 00:28:40,080 --> 00:28:41,800 Speaker 2: tail end of twenty twenty four. We think of the 534 00:28:41,840 --> 00:28:45,719 Speaker 2: achievements of you know, ultimately, how much economic impact Beyonce 535 00:28:46,000 --> 00:28:48,760 Speaker 2: and Tata Swift put together have had on the US economy. 536 00:28:49,160 --> 00:28:51,240 Speaker 2: You are not only a VC, but ultimately you're a 537 00:28:51,280 --> 00:28:54,520 Speaker 2: founder yourself. Having set up a Female Founder's Fund. How 538 00:28:54,560 --> 00:28:58,960 Speaker 2: are you seeing your role change and what's being asked 539 00:28:59,000 --> 00:29:02,280 Speaker 2: of you in this particular moment from your own portfolio 540 00:29:02,320 --> 00:29:04,640 Speaker 2: companies and society at large. Yeah. 541 00:29:04,760 --> 00:29:07,520 Speaker 4: No, I think the shift has really been, you know, 542 00:29:07,600 --> 00:29:09,760 Speaker 4: looking at our portfolio companies and the advice and the 543 00:29:09,800 --> 00:29:13,760 Speaker 4: way that we kind of work with them. There's definitely been, 544 00:29:14,280 --> 00:29:17,600 Speaker 4: you know, a shift, I would say, in terms of 545 00:29:18,040 --> 00:29:20,480 Speaker 4: how do we how do we get from you know, 546 00:29:20,600 --> 00:29:24,520 Speaker 4: a more growth at all costs strategy to just running 547 00:29:24,520 --> 00:29:28,280 Speaker 4: our businesses efficiently and so that requires a lot of 548 00:29:28,320 --> 00:29:30,840 Speaker 4: work on the budget. It requires really thinking through team 549 00:29:30,920 --> 00:29:35,040 Speaker 4: structure and and really honing in on what it is 550 00:29:35,200 --> 00:29:38,960 Speaker 4: that your business needs to survive, and that I think 551 00:29:39,040 --> 00:29:41,720 Speaker 4: for founders as well as vcs is a skill set 552 00:29:41,760 --> 00:29:43,320 Speaker 4: that we haven't necessarily had to. 553 00:29:44,800 --> 00:29:49,160 Speaker 2: Leverage or use for for over a decade. And I 554 00:29:49,280 --> 00:29:51,960 Speaker 2: do go Female Founders Fund telling us it's straight. She 555 00:29:52,040 --> 00:29:54,920 Speaker 2: has of course founding partner at that fund and putting 556 00:29:54,960 --> 00:29:57,280 Speaker 2: on the Year of Women conference where she brought together 557 00:29:57,600 --> 00:30:00,760 Speaker 2: whole host of female CEOs to have real talk. Ultimately, 558 00:30:00,800 --> 00:30:04,640 Speaker 2: about the environment, but from trying to survive until twenty 559 00:30:04,720 --> 00:30:06,960 Speaker 2: twenty five to actually thriving, We've got one that is 560 00:30:07,080 --> 00:30:08,840 Speaker 2: right now. I guess stick with Digital Health and one 561 00:30:08,840 --> 00:30:11,840 Speaker 2: of the companies that Google actually mentioned ULA as a 562 00:30:11,880 --> 00:30:15,960 Speaker 2: maternity care clinic that combines midwifery and obstetrics, and it's 563 00:30:16,040 --> 00:30:18,320 Speaker 2: raised twenty eight million dollars in Series B funding to 564 00:30:18,360 --> 00:30:21,680 Speaker 2: expand its technology, enables and hybrid care approach to more 565 00:30:21,760 --> 00:30:24,200 Speaker 2: markets beyond here in New York City and launch new 566 00:30:24,240 --> 00:30:27,080 Speaker 2: services for those in their reproductive years here for more. 567 00:30:27,240 --> 00:30:30,520 Speaker 2: Co founder and CEO Adrian Nicholson and who is pretty 568 00:30:30,560 --> 00:30:32,560 Speaker 2: heavily pregnant right now yourself, so thank you for coming 569 00:30:32,640 --> 00:30:37,120 Speaker 2: in for it. I am fascinated about raising such money 570 00:30:37,280 --> 00:30:40,320 Speaker 2: in this current environment as a female founder, as a 571 00:30:40,560 --> 00:30:43,760 Speaker 2: maternal health company. Was it easier than the seed round 572 00:30:43,760 --> 00:30:45,480 Speaker 2: for example that you first got off the ground during 573 00:30:45,520 --> 00:30:47,200 Speaker 2: the depths of COVID and twenty twenty. 574 00:30:47,640 --> 00:30:49,920 Speaker 12: In some ways I think they were very similar around 575 00:30:50,680 --> 00:30:53,160 Speaker 12: in the sense that it was a tough environment to 576 00:30:53,200 --> 00:30:56,240 Speaker 12: be raising I mean twenty twenty April, if you guys 577 00:30:56,280 --> 00:30:59,440 Speaker 12: remember what you were doing all yeah, probably not going 578 00:30:59,480 --> 00:31:01,240 Speaker 12: to a lot of our mortar businesses, and you know, 579 00:31:01,360 --> 00:31:03,760 Speaker 12: that's what we are, while we're a hybrid business, and 580 00:31:03,800 --> 00:31:06,120 Speaker 12: so that was a challenging environment and we were selling 581 00:31:06,160 --> 00:31:08,080 Speaker 12: out a story in some ways. I think what made 582 00:31:08,120 --> 00:31:11,480 Speaker 12: it easier in this environment is we have data. Now 583 00:31:12,280 --> 00:31:16,160 Speaker 12: we're able to show that this is the solution to 584 00:31:16,280 --> 00:31:19,280 Speaker 12: a really broken maternal care system, whether that's looking at 585 00:31:19,360 --> 00:31:23,040 Speaker 12: from a consumer perspective or from outcomes or for a cost. 586 00:31:24,080 --> 00:31:26,720 Speaker 12: And so even in a tough environment, I think being 587 00:31:26,840 --> 00:31:32,160 Speaker 12: able to point to a really proven model made it 588 00:31:32,280 --> 00:31:33,160 Speaker 12: just a little bit easier. 589 00:31:33,640 --> 00:31:35,640 Speaker 2: And that prove the model being what is it, fifteen 590 00:31:35,760 --> 00:31:39,680 Speaker 2: hundred berths, few a c sections, fewer problematic outcomes, better 591 00:31:39,720 --> 00:31:43,080 Speaker 2: postnatal care. I'm interested. All of this actually sounds much 592 00:31:43,120 --> 00:31:45,920 Speaker 2: more like experience I had birthing in the UK compared 593 00:31:45,920 --> 00:31:48,280 Speaker 2: to here in the United States. But tell me about 594 00:31:48,280 --> 00:31:51,040 Speaker 2: the technology that you're building. Why is it necessary to 595 00:31:51,120 --> 00:31:51,920 Speaker 2: be a tech business? 596 00:31:53,040 --> 00:31:56,880 Speaker 12: Well, what's kind of wild about pregnancy care is this 597 00:31:57,000 --> 00:32:00,720 Speaker 12: sort of status quo looks strikingly sim learn out to 598 00:32:00,800 --> 00:32:03,840 Speaker 12: what it did a hundred years ago, which is you 599 00:32:03,920 --> 00:32:06,000 Speaker 12: have a lot of analog with one on one visits 600 00:32:07,080 --> 00:32:07,800 Speaker 12: over nine months. 601 00:32:07,840 --> 00:32:09,000 Speaker 2: Even though everything. 602 00:32:08,680 --> 00:32:12,520 Speaker 12: About the world has changed and technology has changed, and 603 00:32:12,600 --> 00:32:14,960 Speaker 12: so we're really trying to sort of modernize that experience 604 00:32:15,120 --> 00:32:18,480 Speaker 12: and bring technology into the equation. And that's from things 605 00:32:18,640 --> 00:32:22,680 Speaker 12: like creating a better consumer experience. 606 00:32:23,560 --> 00:32:24,600 Speaker 2: So we have a patient. 607 00:32:24,480 --> 00:32:27,760 Speaker 12: Portal that extends care outside the four walls, and so 608 00:32:28,240 --> 00:32:30,760 Speaker 12: you don't just get connection to your team in those 609 00:32:31,360 --> 00:32:34,800 Speaker 12: thirteen visits, you actually can talk to them and get 610 00:32:34,880 --> 00:32:36,560 Speaker 12: care and all the moments in between, which is where 611 00:32:36,600 --> 00:32:39,040 Speaker 12: pregnancy really happens. We give a question at two in 612 00:32:39,080 --> 00:32:41,720 Speaker 12: the morning or when you're struggling to postpartum. So the 613 00:32:41,760 --> 00:32:44,080 Speaker 12: power of tech is really extending beyond the four walls. 614 00:32:45,440 --> 00:32:48,640 Speaker 2: I'm interested and this is a tough question, but given 615 00:32:48,640 --> 00:32:51,120 Speaker 2: the news out of at Obama, the idea they're a 616 00:32:51,120 --> 00:32:54,280 Speaker 2: Supreme Court is you know, thinking about we are in 617 00:32:54,280 --> 00:32:56,880 Speaker 2: a different landscape when it comes to reproductive rights. We 618 00:32:56,960 --> 00:33:01,880 Speaker 2: are thinking of rulings that recognize planted human embryos as children. 619 00:33:02,160 --> 00:33:04,600 Speaker 2: And I know that you give careful miscarriage for example, 620 00:33:04,640 --> 00:33:05,880 Speaker 2: and many have sort of said that it's going to 621 00:33:05,880 --> 00:33:10,120 Speaker 2: have a chilling effect on miscarriage management. How how is 622 00:33:10,200 --> 00:33:13,040 Speaker 2: your business thinking about expanding outside of New York City 623 00:33:13,080 --> 00:33:14,960 Speaker 2: and what states you go into and how you're able 624 00:33:15,000 --> 00:33:17,240 Speaker 2: to address those sorts of political headwinds. 625 00:33:18,040 --> 00:33:20,600 Speaker 12: I mean, at the end of the day, we're in 626 00:33:20,680 --> 00:33:24,880 Speaker 12: a business that is about supporting choice, whether that's the 627 00:33:25,000 --> 00:33:26,680 Speaker 12: choice for how you want to go through your pregnancy 628 00:33:26,960 --> 00:33:28,200 Speaker 12: or how you want a midwife, and it will be 629 00:33:28,280 --> 00:33:32,320 Speaker 12: involved in care, or whether you want an epidural or nitrosoxide. 630 00:33:33,480 --> 00:33:35,520 Speaker 12: And so I think we just take that principle and 631 00:33:35,560 --> 00:33:38,040 Speaker 12: my values to any way in which we think about 632 00:33:38,160 --> 00:33:42,640 Speaker 12: expanding care and services and sort of just keep that 633 00:33:42,760 --> 00:33:45,160 Speaker 12: at the forefront of what we do. And we think 634 00:33:45,240 --> 00:33:47,320 Speaker 12: women in you know, blue states and red states need 635 00:33:47,360 --> 00:33:49,840 Speaker 12: grade care and we're going to be driven more by 636 00:33:51,320 --> 00:33:54,239 Speaker 12: the patient demand and need for a better maternal care 637 00:33:54,320 --> 00:33:57,360 Speaker 12: experience than sort of what's happening in the broader maybe 638 00:33:57,400 --> 00:33:58,320 Speaker 12: political landscape. 639 00:33:58,880 --> 00:34:00,760 Speaker 2: Well, we'll be seeing you expand that's not of New York. 640 00:34:00,840 --> 00:34:02,840 Speaker 2: Come tell us where you're going next. It'd be great 641 00:34:02,840 --> 00:34:04,720 Speaker 2: to have you back on ULLA. Co found and CEO 642 00:34:04,840 --> 00:34:07,520 Speaker 2: Adrian Nickison. Good luck in the next few weeks. 643 00:34:07,360 --> 00:34:09,080 Speaker 9: As well when it comes to your own family. 644 00:34:09,160 --> 00:34:11,880 Speaker 2: Meanwhile, returning to Female Founders Fund, You're a women conference. 645 00:34:12,239 --> 00:34:14,319 Speaker 2: I got the chance to speak with Thrive global CEO 646 00:34:14,440 --> 00:34:16,840 Speaker 2: Arianna Huffington just take a listen to about her thoughts 647 00:34:16,840 --> 00:34:20,759 Speaker 2: about how hyper personalization AI and how much can use 648 00:34:20,760 --> 00:34:21,880 Speaker 2: for potential health benefits. 649 00:34:21,920 --> 00:34:22,359 Speaker 9: Take a listen. 650 00:34:23,480 --> 00:34:27,120 Speaker 13: We are very excited at Thrive about the way we 651 00:34:27,320 --> 00:34:32,239 Speaker 13: can bring in generative AI into daily behaviors because if 652 00:34:32,280 --> 00:34:35,360 Speaker 13: we look at the data, we see that these five 653 00:34:35,520 --> 00:34:42,800 Speaker 13: daily behaviors of sleep, food, movement, stress, and connection dramatically 654 00:34:42,960 --> 00:34:49,360 Speaker 13: affect our health and our longevity. So the problem is 655 00:34:49,480 --> 00:34:53,920 Speaker 13: that changing behaviors is not easy. But with AI and 656 00:34:54,280 --> 00:34:59,800 Speaker 13: creating what we are building a co pilot wellness health 657 00:35:00,080 --> 00:35:06,839 Speaker 13: co pilot. It's kind of incredible how this personalization can 658 00:35:07,280 --> 00:35:13,120 Speaker 13: make dramatic changes and how we adopt healthier habits through microsteps. 659 00:35:13,160 --> 00:35:16,919 Speaker 13: We are big believers and our scientific advisory board led 660 00:35:17,000 --> 00:35:21,680 Speaker 13: by bj Fog from Stanford, is showing all the data 661 00:35:22,360 --> 00:35:25,360 Speaker 13: that to change behaviors you have to start small. We 662 00:35:25,560 --> 00:35:28,920 Speaker 13: call them micro steps, too small to fail, small daily 663 00:35:29,239 --> 00:35:32,840 Speaker 13: changes that incrementally become healthier habits. 664 00:35:33,480 --> 00:35:38,040 Speaker 2: This hyper personalization, as you reference it in artificial intelligence, 665 00:35:38,600 --> 00:35:42,640 Speaker 2: is it already a reality already being deployed. How comfortable 666 00:35:42,760 --> 00:35:46,080 Speaker 2: or uncomfortable are people with these sort of intimate cues. 667 00:35:47,280 --> 00:35:51,560 Speaker 13: Well, that's what is so interesting. People are comfortable giving 668 00:35:52,360 --> 00:35:59,359 Speaker 13: their own personal data biometrics labs calendar to show where 669 00:35:59,440 --> 00:36:04,959 Speaker 13: they need the stress breaks, provided they get help back, 670 00:36:05,239 --> 00:36:10,400 Speaker 13: provided they get value, and provided that they are given 671 00:36:10,840 --> 00:36:15,640 Speaker 13: to others like employers, in an anonymized, aggregated way. And 672 00:36:16,200 --> 00:36:19,799 Speaker 13: once we guarantee that, then people are willing to share 673 00:36:19,880 --> 00:36:25,439 Speaker 13: personal data. And knowing personal preferences around sleep, around food, 674 00:36:25,600 --> 00:36:29,160 Speaker 13: around how you like to exercise is critical so that 675 00:36:29,320 --> 00:36:33,640 Speaker 13: the nudgets and their recommendations are hyper personalized. The other 676 00:36:33,760 --> 00:36:37,440 Speaker 13: thing our line that is really important to remind ourselves 677 00:36:37,480 --> 00:36:40,960 Speaker 13: of is that the healthcare system right now is broken. 678 00:36:41,600 --> 00:36:46,000 Speaker 13: It's unsustainable. We are now spending seventeen percent of GDP 679 00:36:47,480 --> 00:36:51,760 Speaker 13: in healthcare, up from five percent in the nineteen sixties, 680 00:36:52,480 --> 00:36:57,440 Speaker 13: and the results are worse every year. Chronic diseases are skyrocketing. 681 00:36:59,000 --> 00:37:02,160 Speaker 13: One that I can get out of my mind is 682 00:37:02,239 --> 00:37:04,880 Speaker 13: that last year alone we had one hundred and fifty 683 00:37:05,040 --> 00:37:12,560 Speaker 13: thousand leg amputations people with diabetes, and the human costs 684 00:37:12,719 --> 00:37:19,080 Speaker 13: the healthcare cost are truly ancestainmon So that's why looking 685 00:37:19,160 --> 00:37:23,879 Speaker 13: at behavior change as the miracle drug is something which 686 00:37:24,320 --> 00:37:26,239 Speaker 13: we need to take much more seriously. 687 00:37:35,400 --> 00:37:39,000 Speaker 2: Later Today, a private American made lunar lander, which was 688 00:37:39,080 --> 00:37:41,839 Speaker 2: launched with a SpaceX rocket, is about to attempt landing 689 00:37:41,920 --> 00:37:44,360 Speaker 2: on the Moon now. The spacecraft was built by Houston 690 00:37:44,440 --> 00:37:48,160 Speaker 2: based Initiative Machines and is successful. This landing would put 691 00:37:48,200 --> 00:37:50,560 Speaker 2: the US back in business on the Moon for the 692 00:37:50,640 --> 00:37:54,160 Speaker 2: first time since NASA astronauts closed out the Apollo program 693 00:37:54,360 --> 00:37:57,440 Speaker 2: fifty years ago. It would also become the first private 694 00:37:57,520 --> 00:38:01,040 Speaker 2: outfit to realize the Moon landing. In Clayton Swape for 695 00:38:01,160 --> 00:38:05,120 Speaker 2: his thoughts, his expertise, your deputy director of the Aerospace 696 00:38:05,120 --> 00:38:08,120 Speaker 2: Security Project at the Central Strategic and International Studies. You've 697 00:38:08,120 --> 00:38:10,680 Speaker 2: been tracking this mission closely. It's ahead of schedule. It 698 00:38:10,719 --> 00:38:13,640 Speaker 2: looks like it's going to be landing softly, we hope, 699 00:38:13,640 --> 00:38:16,600 Speaker 2: at four thirty pm New York time. Clayton, what does 700 00:38:16,680 --> 00:38:18,880 Speaker 2: this signal about the way that NASA now does business? 701 00:38:21,239 --> 00:38:23,839 Speaker 8: Well, thank you for having me on your show. First off, 702 00:38:23,960 --> 00:38:27,600 Speaker 8: this is huge news. If intuitive machines can stick this 703 00:38:27,760 --> 00:38:31,040 Speaker 8: landing today, this is a big news for commercial space. 704 00:38:31,200 --> 00:38:33,919 Speaker 8: This is big news for the United States. We haven't 705 00:38:33,920 --> 00:38:36,399 Speaker 8: been to the service of the Moon since nineteen seventy two. 706 00:38:37,040 --> 00:38:39,120 Speaker 8: But this also is big news for NASA because it 707 00:38:39,200 --> 00:38:42,840 Speaker 8: does validate the approach that they've taken for landing on 708 00:38:42,880 --> 00:38:45,560 Speaker 8: the Moon of using commercial services to do that, which 709 00:38:45,600 --> 00:38:48,239 Speaker 8: is very different than prior ways that NASA has done 710 00:38:48,320 --> 00:38:49,040 Speaker 8: space missions. 711 00:38:49,360 --> 00:38:53,319 Speaker 2: And what's interesting is it creates opportunities for this particular company. 712 00:38:53,360 --> 00:38:57,080 Speaker 2: We've seen its ultimate market valuation skyrocket on the back 713 00:38:57,120 --> 00:39:00,439 Speaker 2: of this potential success, but also other startups of life 714 00:39:00,480 --> 00:39:02,959 Speaker 2: as it breathed into the ecosystem here in the US. 715 00:39:04,360 --> 00:39:04,560 Speaker 1: Yeah. 716 00:39:04,640 --> 00:39:08,160 Speaker 8: So this one program the NASA has, which I'm thinking 717 00:39:08,280 --> 00:39:11,279 Speaker 8: looks a lot like FedEx or Uber to the Moon, 718 00:39:11,320 --> 00:39:13,719 Speaker 8: where NASA is saying, we have a payload, we have 719 00:39:13,800 --> 00:39:15,840 Speaker 8: something we want to get to the Moon's surface, and 720 00:39:16,000 --> 00:39:18,560 Speaker 8: we're paying for a company to take it there. There 721 00:39:18,600 --> 00:39:22,040 Speaker 8: are fourteen companies on that contract there from all around 722 00:39:22,120 --> 00:39:26,680 Speaker 8: the country. Intuitive Machines is from Texas Astrobotic who attempted 723 00:39:26,680 --> 00:39:30,360 Speaker 8: the first commercial landing under this program. They're from Pittsburgh, Pennsylvania. 724 00:39:30,840 --> 00:39:32,640 Speaker 8: So the idea is that you have a lot of innovation, 725 00:39:32,800 --> 00:39:35,000 Speaker 8: a lot of disruption and how you can do space 726 00:39:35,400 --> 00:39:37,560 Speaker 8: and the goal there is to create competition and then 727 00:39:37,680 --> 00:39:40,160 Speaker 8: ultimately make it cheaper, to make it more cost effective 728 00:39:40,200 --> 00:39:41,640 Speaker 8: to get something from Earth to the Moon. 729 00:39:42,040 --> 00:39:44,600 Speaker 2: I mean, we understand that the NOVASEA has got six 730 00:39:44,680 --> 00:39:47,920 Speaker 2: payloads and NASA five commercial ones as well, and its 731 00:39:47,960 --> 00:39:50,600 Speaker 2: contract is roughly about one hundred million dollars. It has 732 00:39:50,719 --> 00:39:54,799 Speaker 2: escalated since when it was first signed on. Just talk 733 00:39:54,920 --> 00:39:58,240 Speaker 2: us through how difficult it might be to stick this landing, 734 00:39:58,320 --> 00:40:01,239 Speaker 2: Like what failures we've seen RELI recently and what's going 735 00:40:01,280 --> 00:40:02,960 Speaker 2: to be so important about this particular one. 736 00:40:05,280 --> 00:40:07,480 Speaker 8: Yeah, I think we sometimes forget how difficult it is 737 00:40:08,320 --> 00:40:10,760 Speaker 8: just to get into space. So if we think about 738 00:40:10,800 --> 00:40:14,280 Speaker 8: that in the context here, they had to get into space, 739 00:40:14,400 --> 00:40:15,880 Speaker 8: they had to get from Earth to the Moon, they 740 00:40:15,920 --> 00:40:18,360 Speaker 8: had to orbit the moon, and that last step landing 741 00:40:18,440 --> 00:40:20,719 Speaker 8: on the Moon is probably the hardest part. We're having 742 00:40:20,800 --> 00:40:22,920 Speaker 8: to relearn how to do that since we haven't done 743 00:40:22,960 --> 00:40:27,160 Speaker 8: it for such a long time. The three prior commercial 744 00:40:27,280 --> 00:40:31,080 Speaker 8: attempts to land on the Moon didn't succeed. I think 745 00:40:31,080 --> 00:40:34,239 Speaker 8: the one way to look at these missions is how 746 00:40:34,600 --> 00:40:36,959 Speaker 8: maybe the tech sector works and how you can fail 747 00:40:37,040 --> 00:40:41,080 Speaker 8: fast and learn a lot from those activities. Admittedly, this 748 00:40:41,200 --> 00:40:43,759 Speaker 8: is my first TV interview. I'm sure I'm going to 749 00:40:43,800 --> 00:40:45,680 Speaker 8: watch this later and think I can never have done 750 00:40:45,800 --> 00:40:50,080 Speaker 8: something I could have done something better, but I'll take 751 00:40:50,160 --> 00:40:52,360 Speaker 8: that for the next one. And I think sometimes you 752 00:40:52,440 --> 00:40:54,320 Speaker 8: only learn through through doing and through trying. 753 00:40:54,920 --> 00:40:58,600 Speaker 2: Take us forward. Therefore Clayton say they sick the landing, 754 00:40:58,719 --> 00:41:01,640 Speaker 2: it all works. What do we say see evolve from there? 755 00:41:01,800 --> 00:41:05,320 Speaker 2: What are the next key landmarks that we want space 756 00:41:05,440 --> 00:41:07,640 Speaker 2: marks and we want to see coming from such companies 757 00:41:07,719 --> 00:41:08,520 Speaker 2: and in the NASA. 758 00:41:10,640 --> 00:41:12,719 Speaker 8: Yeah, yeah, One thing to keep in mind, so this 759 00:41:12,840 --> 00:41:15,040 Speaker 8: is a commercial approach to doing space, to getting to 760 00:41:15,120 --> 00:41:18,880 Speaker 8: the Moon, but it's still payrolled or bankrolled by the government. 761 00:41:18,920 --> 00:41:22,040 Speaker 8: So this is NASA money funding these missions. So it's 762 00:41:22,160 --> 00:41:26,080 Speaker 8: helping to learn how to get to the moon, using 763 00:41:26,520 --> 00:41:30,680 Speaker 8: methodologies to get to the moon, investigating new technologies, but 764 00:41:30,840 --> 00:41:33,000 Speaker 8: still it's government money. So what I think we're really 765 00:41:33,040 --> 00:41:35,879 Speaker 8: going to want to see is how these foundational capabilities 766 00:41:36,320 --> 00:41:39,560 Speaker 8: and ways to do business in space, how then those 767 00:41:39,680 --> 00:41:42,600 Speaker 8: carry over into other economic development in space, and how 768 00:41:43,000 --> 00:41:46,319 Speaker 8: people learn to find business uses in space that aren't 769 00:41:46,360 --> 00:41:49,640 Speaker 8: necessarily based on government money. That could be anything from 770 00:41:49,800 --> 00:41:54,080 Speaker 8: asteroid mining to generating electricity to some kind of manufacturing. 771 00:41:54,200 --> 00:41:56,000 Speaker 8: So we're on the cusp of that, and these programs 772 00:41:56,040 --> 00:41:57,600 Speaker 8: are really helping to pave the waste so that we 773 00:41:57,719 --> 00:41:59,080 Speaker 8: know how to do that when that time comes. 774 00:42:00,000 --> 00:42:02,680 Speaker 2: So certainly doesn't feel like it's going to be your 775 00:42:02,680 --> 00:42:03,080 Speaker 2: only TV. 776 00:42:03,239 --> 00:42:04,080 Speaker 9: We thank you so much. 777 00:42:04,640 --> 00:42:08,880 Speaker 2: Csis Aerospace Security Project Deputy Director. Well, we wait with 778 00:42:08,960 --> 00:42:11,840 Speaker 2: beta breath for four thirty pm New York time. Meanwhile, 779 00:42:11,840 --> 00:42:13,680 Speaker 2: that does it for this edition of Bloomberg Technology. You 780 00:42:13,760 --> 00:42:15,720 Speaker 2: do not want to forget to check out our podcast 781 00:42:16,000 --> 00:42:18,320 Speaker 2: so much to digest, of course, all things in video, 782 00:42:18,480 --> 00:42:21,319 Speaker 2: all things the AI ecosystem, and of course all things 783 00:42:21,360 --> 00:42:24,600 Speaker 2: as we anticipate not only key IPO listening coming soon 784 00:42:24,680 --> 00:42:27,800 Speaker 2: we understand from Reddit and a key launch and perhaps 785 00:42:27,920 --> 00:42:30,000 Speaker 2: landing on the moon. This is Bloomberg Technology.