Speaker 1: From the heart.
Speaker 2: We're Innovations Money and Power.
Speaker 3: Collie in Silicon Valley, NBN. This is Bloomberg Technology with
Speaker 3: Caroline Hyde and Ed Ludlove.
Speaker 2: I'm Caroine, head of Bloomos World headquarters in New York.
Speaker 2: This is Bloomberg Technology coming up in via. It surges
Speaker 2: as AI demand Power is the company's outlook yet again.
Speaker 2: We'll have full coverage on the company as it looks
Speaker 2: to add two hundred and fifty billion dollars to its
Speaker 2: market cap just today, and we'll get a read on
Speaker 2: the state of the IPO market as Reddit gives up
Speaker 2: to file publicly for its offering as soon as today.
Speaker 2: Details to come. Plus from chips and IPOs to the Moon,
Speaker 2: we get a preview on what we can expect from
Speaker 2: exploration startup Intuitive Machines and its attempt to put a
Speaker 2: US made lander on the Moon for the first time
Speaker 2: in fifty years. That first, we've got to get to it.
Speaker 2: Extraordinary moves once again, extraordinary moves and market capitalization and
Speaker 2: yet still a valuation that is relatively cheap. In video
Speaker 2: surging fifteen percent would be the biggest ever addition in
Speaker 2: terms of marketcap on record that we've seen for any
Speaker 2: single stock at fifteen percent, once again making it on
Speaker 2: edge to get to that two trillion dollar mark when
Speaker 2: it comes to market capitalization. And the reason that maybe
Speaker 2: the valuation is still at thirty three times forward looking
Speaker 2: earnings is because all those earnings keep on grising at
Speaker 2: an extraordinary pace. Here's what guests had to say.
Speaker 1: What a sensational set of results from Nvidia.
Speaker 2: This is really the yearning's heard around the world.
Speaker 4: I'll do my best to sort of contain my enthusiasm.
Speaker 2: It seems each quarter they continue to surprise.
Speaker 5: There are going to be significant benefits.
Speaker 6: The only result that was going to be acceptable was
Speaker 6: not only a beat, but a substantial beat.
Speaker 7: This is a company that continues to execute and completely
Speaker 7: blow away everybody's most robust forecast.
Speaker 5: Hunt deny the impact that it's having across not just
Speaker 5: in the US market and the US tech sector, but
Speaker 5: actually globally. And I think one of those reasons is
Speaker 5: that people are really buying into this idea that it
Speaker 5: isn't the tipping point.
Speaker 2: There is great momentum there.
Speaker 8: People are beginning to wonder how many consecutive quarters can
Speaker 8: this company continue.
Speaker 7: To run with the big question has been how long
Speaker 7: can this continue?
Speaker 1: There is sort of a consensus in the industry to
Speaker 1: put some competitive pressure.
Speaker 2: Back on in video.
Speaker 7: The competition has never been more fierce than it is
Speaker 7: right now foreign video, but they have a huge headstart.
Speaker 8: This tidal wave of spend, it's coming to the rest
Speaker 8: of tech and in our opinion, that's going to continue
Speaker 8: to fuel this tech bill market.
Speaker 2: The equity market sort of really nicely sort of set
Speaker 2: up from here.
Speaker 1: This AI party, it's just getting started.
Speaker 2: Blueberg Intelligence senior analyst many saying joins us to take
Speaker 2: us on a gear from it just getting started. What
Speaker 2: was extraordinary is if you were training after hours and
Speaker 2: not everyone does. At one point you were looking at
Speaker 2: a lot. What pushed us significantly back into the green.
Speaker 6: Yeah, so when you look at the print, the China
Speaker 6: numbers stood out. So China used to be twenty percent
Speaker 6: of revenue. Now it was mid a single digit. So
Speaker 6: clearly they've had some headwinds. But despite that, they come
Speaker 6: out and raise the forecast for another ten percent. And
Speaker 6: you know, that's what's most impressive about the results is
Speaker 6: not only have they executed well, they have not missed
Speaker 6: a beat in terms of shipping new product. So they're
Speaker 6: talking about H two hundred chips in two Q that's
Speaker 6: double the performance of H one hundred. And we know
Speaker 6: H one hundred was double the performance of A one hundred.
Speaker 6: So clearly you know they're executing to perfection here and
Speaker 6: they keep delivering quarter after quarter of perfection. I mean,
Speaker 6: the question to me is really what is the addressable market?
Speaker 6: With Jensen said it's one trillion incremental over the next
Speaker 6: five years. And they are very well positioned on the
Speaker 6: compute and networking side. So if you take that you
Speaker 6: know four and model that, you will believe they can keep,
Speaker 6: you know, continuing with these numbers. But at some point
Speaker 6: there will be a digestion phase because they are exposed
Speaker 6: to hyperscalers. The capex is what fifty percent of their
Speaker 6: data center revenue is coming from hyperscaler capex. So that's
Speaker 6: ten companies, which means every hyperscaler is about five percent
Speaker 6: of in video's revenue. And they are buying these ships,
Speaker 6: but for how long and if one of them does
Speaker 6: get their own chip, what impact does it have on
Speaker 6: a video's growth. Probably people are not going to talk
Speaker 6: about it for the next one or two quarters. This
Speaker 6: is more of you know, a four five quarter question.
Speaker 2: But Jensen himself has started to talk about diversification, talking
Speaker 2: that sovereigns need to have access to their own compute,
Speaker 2: that companies need to do that. That's why they have
Speaker 2: this deal with Cisco. How much do you think that
Speaker 2: they can diversify away from these mega companies that are
Speaker 2: so dominating their revenue.
Speaker 6: I mean they need that. And Jensen said there will
Speaker 6: be more than five foundational models. So right now, the
Speaker 6: prevailing market view is there will be four or five
Speaker 6: foundational large ANGLID models and every company will standardize on that.
Speaker 6: What he's saying is they will be vertical specific large
Speaker 6: anguage models, sovereign large ANGLID models, because these companies don't
Speaker 6: want to give away their data to open AI or Gemini.
Speaker 6: And so if that's the case, then yes, these companies
Speaker 6: need to invest or governments need to have the same
Speaker 6: level of CAPEX investments what hyperscalers have done over the
Speaker 6: last two three years in terms of buying these in
Speaker 6: video chips. But if the standardized models are going to
Speaker 6: be the four or five models that we know, then
Speaker 6: I think it will be hard to justify companies spending
Speaker 6: forty fifty billion dollars in capex to buy in video
Speaker 6: chips for training, and Jensen called out inferencing, which is
Speaker 6: the other big opportunity. So if Nvidia chips are going
Speaker 6: to be in smartphones, in PCs and inferencing other types
Speaker 6: of inferencing, then yes, that expands their market. But we
Speaker 6: don't know those details. All we know is next quarter
Speaker 6: they're going to come out and probably raise by another
Speaker 6: ten percent because it probably sandbag, you know, in terms
Speaker 6: of the visibility they already.
Speaker 2: Have, and we're expecting next quarter another revenue increase in
Speaker 2: more than two hundred percent. Just always brilliant to push
Speaker 2: it forward with Blue Meg Intelligence Senior analyst Mandat Sing,
Speaker 2: we always thank him. And actually we were just referencing
Speaker 2: maybe some of the flies in the ointment, which was China.
Speaker 2: Let's dive deep on into that because the China story
Speaker 2: is important and Johnkangli is joining us now. She is
Speaker 2: indeed the CEO, founder and kind of research at JL
Speaker 2: Warren Capital. And what's so interesting about JL Warren Capital
Speaker 2: is you're basically focusing a limelight on the companies that
Speaker 2: do have a big exposure to China and really doing
Speaker 2: deep dive research into them. How much exposure is in
Speaker 2: video going to have going forward.
Speaker 1: Well, I think it's very dynamic. Right now, they have
Speaker 1: five percent as the CEO said on a conference call,
Speaker 1: yes today in this co year if this COO year
Speaker 1: twenty twenty three was twenty percent, so there's a sharp
Speaker 1: job in the direct exposure to the China market. However,
Speaker 1: they're offshore data centers owned by Chinese or Chinese entities
Speaker 1: that use in video chips, so those will be the
Speaker 1: markets in Singapore, markets of Middle East. So if you
Speaker 1: combine all those, I would say that's probably add up
Speaker 1: to fifteen twenty percent of the Nvidia AI chip exposure.
Speaker 1: So depending on Biden administration's approved approval. But China is
Speaker 1: expecting the shipment of the H twenty, which is a
Speaker 1: dumbdown version of the H one hundred, one hundred AI
Speaker 1: chip shipment in second quarter. But then again it really
Speaker 1: depends on the administration in the US. There's absolutely a
Speaker 1: shortage of equivalent of the AI GPU chips in China,
Speaker 1: even though their atcounts to catch up. But it's such
Speaker 1: a long and a complex supply chain. It's not something
Speaker 1: it's not writing a code, it's not a software which
Speaker 1: China is very good at.
Speaker 2: So how quickly therefore, do you think drinking the much
Speaker 2: has been said that if we do indeed force US
Speaker 2: companies to exit their exposure to China, ultimately we're just
Speaker 2: fast tracking the supply chain, the internal supply chain of China.
Speaker 2: Do you believe that? Or ultimately does Jensen, as he
Speaker 2: seems to still say, want to still be winning in China.
Speaker 2: He still seems to think that there is a place
Speaker 2: for his company in China.
Speaker 1: Well, I mean there's short term, there's long term. Short term,
Speaker 1: there's no equivalent of a similar technology architecture and production capacity,
Speaker 1: which is really important. As we've seen, this is a
Speaker 1: company in operations for thirty years and went through a
Speaker 1: very rich history of ups and downs, and the A
Speaker 1: one hundred, which is the first of dominating AI GPU
Speaker 1: parallel computing chip, there was long the two years ago.
Speaker 1: It takes many a couple of years to figure out
Speaker 1: the Cobos production capacity, and even today demand far exceeds
Speaker 1: the supply right, So, I mean it's it is a
Speaker 1: very complex. It's a hardware company predominantly as of today,
Speaker 1: and the supply chain is very long, and it's primarily
Speaker 1: in Taiwan and the cross Asia. So it's gonna take
Speaker 1: a very very long time for huaweih to figure out
Speaker 1: where to source it's a Capex equipment, where to you know,
Speaker 1: source the packaging and the testing qualification, et cetera. So
Speaker 1: I mean I would think five to ten years and
Speaker 1: so till then there's enough room for Video to ship
Speaker 1: its legacy chips to try to just get it going,
Speaker 1: and for companies to figure out how to run their
Speaker 1: kind of lower version of AI computing.
Speaker 2: Jamhank, I'm interested in your perspective on the total addressable
Speaker 2: market here because I and put out this four hundred
Speaker 2: billion dollar figure and then Jensen just saw that and
Speaker 2: raised the bar significantly, saying it's a trillion. Where do
Speaker 2: you stand on time when it comes to these sources
Speaker 2: of chips.
Speaker 1: Well, I think it's so early on the adoption it's
Speaker 1: kind of like irrelevant question. So annually globally you're about
Speaker 1: like thirteen fourteen servershipment and currently AI attached ray is
Speaker 1: about four percent, right, So I mean, really, depending on
Speaker 1: what you think the AI attached ray should be in
Speaker 1: a normalized circumstance, but right now, I mean, no one
Speaker 1: knows I mean even assuming what Lisa to the four
Speaker 1: you know, hundred number is four hundred billion, and let's
Speaker 1: assume a video takes sixty or seventy percent of that
Speaker 1: AI chip market, and times it's normalized, let's say normalized
Speaker 1: the net operating marginal forty percent versus today fifty percent,
Speaker 1: because they have such a bargaining power to its customers
Speaker 1: because of the shortage of supply and and you know,
Speaker 1: a product mix, and that gives you three hundred billion
Speaker 1: run rate of net profit annually and times whichever multiple
Speaker 1: you want to put it. You can argue it's hardware
Speaker 1: so and it's growing so far, it's on way becoming
Speaker 1: the industry goals standard. So you put twenty five comes
Speaker 1: pe on a normalized demand cycle, so that gives you
Speaker 1: about like a three trillion market market cap versus today,
Speaker 1: I guess it's one point seven two trillion, So we
Speaker 1: are looking at pretty close to doubling. You know, in
Speaker 1: the next few years. It could be bigger than that,
Speaker 1: because lisa tous number can be too low. Gens and
Speaker 1: Hunt's number could be closer to reality. Just no one knows.
Speaker 1: It really depends on the air market application development. But
Speaker 1: one thing I want to say is, look at this
Speaker 1: quarter's growth margin seventy seven percent. That's really really rare.
Speaker 1: The only company that I can think of of a
Speaker 1: gross margin closer to that is Earmese, which tells me
Speaker 1: that this is a story that demand the far exceeds
Speaker 1: stip supply, and the company has so much bargaining power
Speaker 1: to its suppliers, and there's tremendous operating and the economy
Speaker 1: of skill.
Speaker 2: Putting it very succinctly. At the end, there still much
Speaker 2: to be made of this particular stock move, and many
Speaker 2: still feeling they want to get in jail. Warren Capital
Speaker 2: CEO and founder John Henley, it's been brilliant to get
Speaker 2: your expertise today, Thank you very much. Indeed, meanwhile, let's
Speaker 2: check in on the border markets, because there is real
Speaker 2: impact here. Semaschal said it. This is a global repercussion story. Look,
Speaker 2: we've seen the nasnack cup two point three percent, but
Speaker 2: the Japanese Index and Nikke search to a new record high.
Speaker 2: Why because the likes of soft Bank. Of course, AI
Speaker 2: related companies did a lot of the high bar making
Speaker 2: today on the back of these numbers coming from Nvidio
Speaker 2: stops six hundred over in Europe, a new record high
Speaker 2: there as well. Again, this is a tech play. This
Speaker 2: is in euphoria around the productivity gains that we can
Speaker 2: get out of AI. So we're up nine tens of
Speaker 2: a percent and a new record. Maybe don't have a
Speaker 2: little look at what's happening in some other risk assets.
Speaker 2: A choice for this particular show Crypto. Look, it's one
Speaker 2: on risk asset that'shap not surging in quite the same
Speaker 2: Lockstep has announced that, but we are still up some
Speaker 2: six tens percent on the day. We're around that almost
Speaker 2: fifty two thousand dollars level. I mean while coming up
Speaker 2: Reddit it gives up to file for its initial public
Speaker 2: offering very very soon details to come, and watching shares
Speaker 2: of well AIGHT and T, T Mobile, Verizon. Look, I'm
Speaker 2: sorry if you're out there today with an AT and
Speaker 2: T contract, you've had some problems getting around using your service.
Speaker 2: There have been sort of ever since three am, some
Speaker 2: issues with down de tech to showing that ultimately the
Speaker 2: network has been forced offline. We're off by two point
Speaker 2: nine percent on AIGHT and T Mobile and indeed Verizon,
Speaker 2: even though they said their overall networks were working well,
Speaker 2: they too, were affected by eight and issues.
Speaker 9: We keep an eye on those stocks. This is Bloomberg
Speaker 9: Technology time now for talking tech.
Speaker 2: Of first up, Google actually pausing its AI made images
Speaker 2: of people that's in their Gemini after criticism about how
Speaker 2: it was handling race. Earlier this week, Google said it
Speaker 2: was aware that Gemini was offering what it called inaccuracies
Speaker 2: in some historical image generation depictions. Company now says it's
Speaker 2: working to address the issues with its image generative feature.
Speaker 9: Well, it's a.
Speaker 2: Venture firm and recent Horowitz It's just invested one hundred
Speaker 2: million dollars in a cryptot startup called Eigenlayer. Now the
Speaker 2: announcement suggests that some of the industry's top back is
Speaker 2: that they're still bending on blockchain despite what has been
Speaker 2: a steep downturn in cryptoventure funding. However, the VC firm
Speaker 2: was the sole investor in Iigonlayer's funding round, and social
Speaker 2: media platform Reddit, well, it has struck a deal with
Speaker 2: Google we understand now. According to Reuters, the deal will
Speaker 2: make reddits content available for training the search engine giants
Speaker 2: artificial intelligence models. So basically raking in so much needed
Speaker 2: revenue each year by giving access to its data. And
Speaker 2: let's just talk about Reddit more broadly, because this comes
Speaker 2: ahead of an expected filing of its S one within
Speaker 2: the coming days for its hotly anticipated IPO. We're going
Speaker 2: to bring in Katie roof now for more. And it
Speaker 2: is notable that we're sort of suddenly to hear about
Speaker 2: these deals, these sort of revenue generating deals when it
Speaker 2: comes to access to Reddit's own data for training AI
Speaker 2: ahead of what could be an AI IPO filing.
Speaker 3: Ray you know, obviously they're hoping to get some buzz.
Speaker 3: AI is a higher category rate now, and so Reddit,
Speaker 3: which is one to IPO for three years now, is
Speaker 3: hoping that this AI partnership is going to say Wall Street.
Speaker 2: Yeah, and it's just one name. And of course there
Speaker 2: are a fair few companies wanting data to train their
Speaker 2: AI models on. So we could see yet more of
Speaker 2: it flow in and yet more money to be agreed
Speaker 2: to if we do, indeed think it's going to be
Speaker 2: about sixty million in revenue per year. I'm interested in
Speaker 2: ultimately what means and why Reddit would be looking to
Speaker 2: finally go public. Now, what is it that they're seeing
Speaker 2: that the reading that means that this is the time
Speaker 2: to tap the market.
Speaker 3: So what happened was Reddit announced in late twenty twenty
Speaker 3: one that they were that they had filed for IPO.
Speaker 3: But that was right when the IPO window closed for
Speaker 3: tech IPOs and so other than you know, instacart and
Speaker 3: Clay they own arm last September, those are the only
Speaker 3: tech ipeas we've had in over two years. And so
Speaker 3: Reddit didn't restart the IPO window.
Speaker 2: Uh, Instacart tried to.
Speaker 3: But now Reddit's going to try to reopen the window
Speaker 3: in in part two of attempting to excite the market
Speaker 3: about tech IPOs again.
Speaker 2: Sure, so it's been a long time coming, exciting some
Speaker 2: potential vcs and early checks in as well to finally
Speaker 2: get some liquidity. Event, Katie Ruth, we thank you so
Speaker 2: much for bringing us the expertise. And well we wait,
Speaker 2: we watched on Reddit. Let's just focus in on EV's
Speaker 2: a little bit more, the Vietnamese electric vehicle maker vin Fast.
Speaker 2: It's actually shares have been moving around today on the
Speaker 2: downside at one point because its earnings report showed that
Speaker 2: losses increased during the fiscal fourth quarter, but revenue did jump,
Speaker 2: in fact, doubling from a year on year basis. We've
Speaker 2: got then acceleration of automobile deliveries happening for the company.
Speaker 2: Vin Fast, chairwoman of the board of directors. Madame twy
Speaker 2: Le joins us now and mad An Twey. I'm interested
Speaker 2: about that loss widening. What's driving the losses escalating at
Speaker 2: the moment.
Speaker 10: The Q four versus KILLED three, Actually that there was
Speaker 10: some one half adjustment of the inventory. Otherwise the trend
Speaker 10: has been positive, shall we The imagine up to the
Speaker 10: adjustment is about twenty eight twenty seven percent minus twenty
Speaker 10: seven percent versus minus thirty seven percent in Q three,
Speaker 10: So we're heading in the right direction. But because the
Speaker 10: one half adjustment at the end of the year, you
Speaker 10: see the gosh margin going down.
Speaker 2: As we said, though revenues on the right rise. We've
Speaker 2: seen thirteen and thirteen deliveries in the fiscal fourth quarter
Speaker 2: of evs you target, I think it there is one
Speaker 2: hundred thousand EV's for the year, for this fiscal year.
Speaker 2: How do you get that?
Speaker 10: And well we we as you know, we're the only
Speaker 10: one in the world that has the whole lineup of
Speaker 10: vehicles from a segment to the east segment. We have
Speaker 10: this year we start delivering vehicles for the right hand
Speaker 10: drive markets that Indonesia as well, so we have the
Speaker 10: full lineup of vehicles in all segments for all different
Speaker 10: markets we are we're already in Vietnam to Vietnam would
Speaker 10: continue to be to support about half of that forecast
Speaker 10: and continue to be the biggest because in twenty twenty
Speaker 10: four the rest of it spread over across North America,
Speaker 10: Europe and Middle East and Asia as well. So we
Speaker 10: believe that with our light up of vehicles, our access
Speaker 10: or different markets, we should be able to get there
Speaker 10: to achieve the podcast.
Speaker 2: And then with that supply, you need to have demand
Speaker 2: meeting it on the other side, as you say it,
Speaker 2: and I'm still your biggest market at the moment, But
Speaker 2: tell us a little bit about where you look to
Speaker 2: expand I know you've been looking into the Philippines from
Speaker 2: just an exposure, but in Indonesia, as you were just saying,
Speaker 2: where is the demand going to be coming from, because
Speaker 2: we've just seen it with RIVIW and you've seen it
Speaker 2: with Tesla that well, there's a pullback. It feels like
Speaker 2: a slowing in growth of demand for electric vehicles because
Speaker 2: people want about infrastructure, they're worried about their ability to charge.
Speaker 10: Well, we've seen we have skepticism in adoptions for ebs. However,
Speaker 10: the reality is the there's still adoption of evs in
Speaker 10: all markets, right So the TV are the vehicle cells
Speaker 10: increased by twelve percent and seventeen percent in the US
Speaker 10: in Europe last year, but the EV sales increase by
Speaker 10: forty five for forty forty five percent, so there's still
Speaker 10: increased in in evs. There's still adoption of evs, and
Speaker 10: we believe that there's a there's a market for EV's.
Speaker 10: I mean, the forecast is still two million to perform
Speaker 10: million of v cells this year in the US. We
Speaker 10: look at so we believe that we should be able
Speaker 10: to get some market shared in North America and in
Speaker 10: Europe where we are the lord child products. But we
Speaker 10: think that the volume driven markets for US in the
Speaker 10: future would be in the markets closer to us, like
Speaker 10: in Asia India for example, one point five million people,
Speaker 10: the most populous country in the world with very low
Speaker 10: adoption right now, or Indonesia, the third most populist country
Speaker 10: in the world. Part of passion that we belong to
Speaker 10: and also very low adoption right now. We believe that
Speaker 10: we should be able in the long run get more
Speaker 10: volume from.
Speaker 2: This market as well. And Andrey Leamy staying up the Philippines,
Speaker 2: thank you for being with us from Hanoi late in
Speaker 2: the evening from Vinvast, we thank you very much. Indeed,
Speaker 2: welcome back to LUMT Technology. I'm Caroline heard in New York.
Speaker 2: Let's get your quit check on these markets. Halfway through
Speaker 2: this training.
Speaker 9: Day, and look, it is an AI story.
Speaker 2: It is an earning beat from Nvidia that drives, and
Speaker 2: that's that one hundred up some two and a half percent.
Speaker 2: Chip makers really roaring. Look, and this isn't just a
Speaker 2: US story. You're seeing this played out with the Japanese
Speaker 2: Nike hitting a new record high stocks six hundred over
Speaker 2: in Europe and a new record high we've just had
Speaker 2: the close of trade in Europe were nine ten percent
Speaker 2: FO one hundred and ninety five. But the socks, as
Speaker 2: I say, other chip makers really managing to flourish at
Speaker 2: the moment, as Marvel moves high at AMD as well
Speaker 2: on what seems to be an enormous total addressable market
Speaker 2: as was envisioned by Jensen over in video, up four
Speaker 2: and a half percent on the socks. More broadly, moving
Speaker 2: on and have a look at some other individual names,
Speaker 2: and there have been other earnings we've got to get
Speaker 2: our teeth into. But in Video front and center up
Speaker 2: more than fifteen percent, so not just another AI player.
Speaker 2: This is also up some eleven percent after its earnings
Speaker 2: really showed that it's managing to capitalize on this particular
Speaker 2: part of the market. Rivian, though ugly ugly off by
Speaker 2: twenty seven percent after they slow their production, and indeed
Speaker 2: they are more worried about having to be laying off
Speaker 2: people ten percent of the workforce. Lightly to go, we're
Speaker 2: going to be digging in some other names that have
Speaker 2: been on the Movelenova, for example. But let's just have
Speaker 2: a return to what's happening within in Video, because we
Speaker 2: are up significantly.
Speaker 9: We're a new record high.
Speaker 2: We're at two hundred and fifty billion dollars worth of
Speaker 2: market cap increase on the day, we're almost at a
Speaker 2: two trillion dollar market capitalization. And yet despite that market cap,
Speaker 2: the stock is actually still kind of cheap. Pe future
Speaker 2: earnings that they keep on escalating and so on, from
Speaker 2: a forwards PE basis, we're actually still only thirty three
Speaker 2: stick in to all of that Kjin Savanis with us
Speaker 2: BlueBag Intelligence for more on ultimately a company that just
Speaker 2: knocks it out the park. I mean, have you seen
Speaker 2: any other companies able to deliver twice now two hundred
Speaker 2: percent growth on a revenue basis just escalating when it
Speaker 2: comes to their overall earnings per share as well, I.
Speaker 11: Have not in my career, and I mean, look, and
Speaker 11: surprise on any media earnings is no longer a surprise.
Speaker 11: This is something how we're getting accustomed to to expect
Speaker 11: every time. But more than the magnitude of the beat,
Speaker 11: it was the quality of the earnings that was reassuring
Speaker 11: to us. On the supply side, it seems supply keeps
Speaker 11: coming in strong. But more importantly they were able to
Speaker 11: diversify the suppliers and you saw the benefit of that
Speaker 11: in lower component costs in their gross margins. But more
Speaker 11: importantly was the quality of the demand. It seems the
Speaker 11: demand momentum is continuing, but it was also the broad
Speaker 11: based demands not just from their largest cloud players, but
Speaker 11: beyond that, to the Internet, to the hyperscalers, to the enterprises,
Speaker 11: and to various different and vertical markets.
Speaker 2: The one Arab demand people might be concerned about of course,
Speaker 2: has been China cringing, and this still seems to be
Speaker 2: an area that Gensen's really focused on, still thinking that
Speaker 2: they can win and then there's a place for them
Speaker 2: in that market.
Speaker 11: Yeah, I mean we saw significant drop in China, right,
Speaker 11: like almost a loss of two billion dollars just in
Speaker 11: the data center. And we don't think this too. We
Speaker 11: don't think this headwind is going away anytime soon, if
Speaker 11: at all, getting worse with more restrictions. You know, in
Speaker 11: the near term, it should not impact the trajectory because
Speaker 11: this demand is running ahead of supply, so they can
Speaker 11: easily ship this product that they would have like to
Speaker 11: ship to China to other countries and the US. But
Speaker 11: in the long term we think this does take the
Speaker 11: bite out of their TAM opportunity, China being the second
Speaker 11: largest market. Right if there was no restrictions, they could
Speaker 11: have even grown much.
Speaker 8: Faster for longer.
Speaker 9: Extraordinary chart.
Speaker 2: We were just looking out of data center revenue just
Speaker 2: up to the right Green meg Intelligence analyst Conscience Uponne,
Speaker 2: who had a very late night in a very early
Speaker 2: start yesterday, we appreciate it a lot. Meanwhile, coming up
Speaker 2: Female Founder's Fund, it hosted it's twenty twenty four CEO Summit.
Speaker 2: I've at the New York Stock Exchange. I'm going to
Speaker 2: be hearing from the founding partner and indeed one of
Speaker 2: her portfolio companies that just raise some money. This is
Speaker 2: really bad technology. Let's talk about the venture community and
Speaker 2: the women in it and new Google. Female Founders Fund
Speaker 2: founding partner has just been hosting the Year of Women
Speaker 2: conference and the New York Stock Exchange. Here's what she
Speaker 2: had to say about the VC environment right now, how
Speaker 2: it's changing, and what she's seen for women investing in
Speaker 2: tech sector.
Speaker 9: Just take a listen.
Speaker 4: I think it's a really interesting time in venture investing
Speaker 4: right now. I think the investable categories have shifted significantly
Speaker 4: for us at Female Founder's Fund. You know, we remain
Speaker 4: really excited about digital health Health. You know, Maven was
Speaker 4: one of our early investments. We just announced the funding,
Speaker 4: the Series B funding for ULA this week, which is
Speaker 4: incredibly exciting. Beauty and personal care is another category that
Speaker 4: you know, we think remains resilient. You've seen some incredible
Speaker 4: exits and outcomes over the past twelve months. Vertical software
Speaker 4: solutions that remains you know, consistent theme across the last
Speaker 4: the last decade, and then lastly, I would say the
Speaker 4: newer category where we've been actively investing is climate tech.
Speaker 2: Let's go in on climate tech because some might say
Speaker 2: though that gets a whole load of politicization around it,
Speaker 2: particularly was the in to an election year. How you
Speaker 2: seeing real world use cases of the technology that you're
Speaker 2: starting to back.
Speaker 4: Yeah, I mean it's it's a fairly broad category. I'll
Speaker 4: give you a couple of examples. So we invested in
Speaker 4: the company last year called Watts, which is a waste
Speaker 4: management software solution helping large hospitality players do a better
Speaker 4: job of managing the expense around their waste. We've also
Speaker 4: invested in the first hydrogen powered private plane company started
Speaker 4: by a French aeronautics engineer. So I think, you know,
Speaker 4: there's a lot of opportunity, but I think at the
Speaker 4: end of the day, what we're really looking for is.
Speaker 2: Where are the exits?
Speaker 4: Are these categories or businesses that have you know, a
Speaker 4: large acquire base, and I think you know, within climate
Speaker 4: tech there's so much interest and so much need for
Speaker 4: better products and solutions.
Speaker 2: I'm sure a lot of your LPs often are asking
Speaker 2: where are the exits? And you think a lot about
Speaker 2: ultimately where we are in a landscape right now, IPO
Speaker 2: market still not looking that pretty. Have you seen an
Speaker 2: uptick in M and A? Have you seen interest and
Speaker 2: inbound coming towards you after some of your pultfolio companies.
Speaker 4: You know, I think the last twelve to eighteen months
Speaker 4: have been incredibly challenging, both in terms of raising growth
Speaker 4: capital as well as obviously you know, IPOL markets being
Speaker 4: closed and M and A for that matter.
Speaker 2: I actually don't you know. I think if you look.
Speaker 4: To the remainder of this year, it's going to be challenging.
Speaker 4: You have an election year coming up, and you know,
Speaker 4: it's funny there's a model in VC right now survived
Speaker 4: till twenty five. I think it's going to be, you know,
Speaker 4: a tough year this year. But I think if you're
Speaker 4: able to come through, that's the advice that we're giving
Speaker 4: our founders.
Speaker 2: And isn't it amazing that you know, you've quoted the
Speaker 2: Year of women and we have just an end of
Speaker 2: tail end of twenty twenty four. We think of the
Speaker 2: achievements of you know, ultimately, how much economic impact Beyonce
Speaker 2: and Tata Swift put together have had on the US economy.
Speaker 2: You are not only a VC, but ultimately you're a
Speaker 2: founder yourself. Having set up a Female Founder's Fund. How
Speaker 2: are you seeing your role change and what's being asked
Speaker 2: of you in this particular moment from your own portfolio
Speaker 2: companies and society at large. Yeah.
Speaker 4: No, I think the shift has really been, you know,
Speaker 4: looking at our portfolio companies and the advice and the
Speaker 4: way that we kind of work with them. There's definitely been,
Speaker 4: you know, a shift, I would say, in terms of
Speaker 4: how do we how do we get from you know,
Speaker 4: a more growth at all costs strategy to just running
Speaker 4: our businesses efficiently and so that requires a lot of
Speaker 4: work on the budget. It requires really thinking through team
Speaker 4: structure and and really honing in on what it is
Speaker 4: that your business needs to survive, and that I think
Speaker 4: for founders as well as vcs is a skill set
Speaker 4: that we haven't necessarily had to.
Speaker 2: Leverage or use for for over a decade. And I
Speaker 2: do go Female Founders Fund telling us it's straight. She
Speaker 2: has of course founding partner at that fund and putting
Speaker 2: on the Year of Women conference where she brought together
Speaker 2: whole host of female CEOs to have real talk. Ultimately,
Speaker 2: about the environment, but from trying to survive until twenty
Speaker 2: twenty five to actually thriving, We've got one that is
Speaker 2: right now. I guess stick with Digital Health and one
Speaker 2: of the companies that Google actually mentioned ULA as a
Speaker 2: maternity care clinic that combines midwifery and obstetrics, and it's
Speaker 2: raised twenty eight million dollars in Series B funding to
Speaker 2: expand its technology, enables and hybrid care approach to more
Speaker 2: markets beyond here in New York City and launch new
Speaker 2: services for those in their reproductive years here for more.
Speaker 2: Co founder and CEO Adrian Nicholson and who is pretty
Speaker 2: heavily pregnant right now yourself, so thank you for coming
Speaker 2: in for it. I am fascinated about raising such money
Speaker 2: in this current environment as a female founder, as a
Speaker 2: maternal health company. Was it easier than the seed round
Speaker 2: for example that you first got off the ground during
Speaker 2: the depths of COVID and twenty twenty.
Speaker 12: In some ways I think they were very similar around
Speaker 12: in the sense that it was a tough environment to
Speaker 12: be raising I mean twenty twenty April, if you guys
Speaker 12: remember what you were doing all yeah, probably not going
Speaker 12: to a lot of our mortar businesses, and you know,
Speaker 12: that's what we are, while we're a hybrid business, and
Speaker 12: so that was a challenging environment and we were selling
Speaker 12: out a story in some ways. I think what made
Speaker 12: it easier in this environment is we have data. Now
Speaker 12: we're able to show that this is the solution to
Speaker 12: a really broken maternal care system, whether that's looking at
Speaker 12: from a consumer perspective or from outcomes or for a cost.
Speaker 12: And so even in a tough environment, I think being
Speaker 12: able to point to a really proven model made it
Speaker 12: just a little bit easier.
Speaker 2: And that prove the model being what is it, fifteen
Speaker 2: hundred berths, few a c sections, fewer problematic outcomes, better
Speaker 2: postnatal care. I'm interested. All of this actually sounds much
Speaker 2: more like experience I had birthing in the UK compared
Speaker 2: to here in the United States. But tell me about
Speaker 2: the technology that you're building. Why is it necessary to
Speaker 2: be a tech business?
Speaker 12: Well, what's kind of wild about pregnancy care is this
Speaker 12: sort of status quo looks strikingly sim learn out to
Speaker 12: what it did a hundred years ago, which is you
Speaker 12: have a lot of analog with one on one visits
Speaker 12: over nine months.
Speaker 2: Even though everything.
Speaker 12: About the world has changed and technology has changed, and
Speaker 12: so we're really trying to sort of modernize that experience
Speaker 12: and bring technology into the equation. And that's from things
Speaker 12: like creating a better consumer experience.
Speaker 2: So we have a patient.
Speaker 12: Portal that extends care outside the four walls, and so
Speaker 12: you don't just get connection to your team in those
Speaker 12: thirteen visits, you actually can talk to them and get
Speaker 12: care and all the moments in between, which is where
Speaker 12: pregnancy really happens. We give a question at two in
Speaker 12: the morning or when you're struggling to postpartum. So the
Speaker 12: power of tech is really extending beyond the four walls.
Speaker 2: I'm interested and this is a tough question, but given
Speaker 2: the news out of at Obama, the idea they're a
Speaker 2: Supreme Court is you know, thinking about we are in
Speaker 2: a different landscape when it comes to reproductive rights. We
Speaker 2: are thinking of rulings that recognize planted human embryos as children.
Speaker 2: And I know that you give careful miscarriage for example,
Speaker 2: and many have sort of said that it's going to
Speaker 2: have a chilling effect on miscarriage management. How how is
Speaker 2: your business thinking about expanding outside of New York City
Speaker 2: and what states you go into and how you're able
Speaker 2: to address those sorts of political headwinds.
Speaker 12: I mean, at the end of the day, we're in
Speaker 12: a business that is about supporting choice, whether that's the
Speaker 12: choice for how you want to go through your pregnancy
Speaker 12: or how you want a midwife, and it will be
Speaker 12: involved in care, or whether you want an epidural or nitrosoxide.
Speaker 12: And so I think we just take that principle and
Speaker 12: my values to any way in which we think about
Speaker 12: expanding care and services and sort of just keep that
Speaker 12: at the forefront of what we do. And we think
Speaker 12: women in you know, blue states and red states need
Speaker 12: grade care and we're going to be driven more by
Speaker 12: the patient demand and need for a better maternal care
Speaker 12: experience than sort of what's happening in the broader maybe
Speaker 12: political landscape.
Speaker 2: Well, we'll be seeing you expand that's not of New York.
Speaker 2: Come tell us where you're going next. It'd be great
Speaker 2: to have you back on ULLA. Co found and CEO
Speaker 2: Adrian Nickison. Good luck in the next few weeks.
Speaker 9: As well when it comes to your own family.
Speaker 2: Meanwhile, returning to Female Founders Fund, You're a women conference.
Speaker 2: I got the chance to speak with Thrive global CEO
Speaker 2: Arianna Huffington just take a listen to about her thoughts
Speaker 2: about how hyper personalization AI and how much can use
Speaker 2: for potential health benefits.
Speaker 9: Take a listen.
Speaker 13: We are very excited at Thrive about the way we
Speaker 13: can bring in generative AI into daily behaviors because if
Speaker 13: we look at the data, we see that these five
Speaker 13: daily behaviors of sleep, food, movement, stress, and connection dramatically
Speaker 13: affect our health and our longevity. So the problem is
Speaker 13: that changing behaviors is not easy. But with AI and
Speaker 13: creating what we are building a co pilot wellness health
Speaker 13: co pilot. It's kind of incredible how this personalization can
Speaker 13: make dramatic changes and how we adopt healthier habits through microsteps.
Speaker 13: We are big believers and our scientific advisory board led
Speaker 13: by bj Fog from Stanford, is showing all the data
Speaker 13: that to change behaviors you have to start small. We
Speaker 13: call them micro steps, too small to fail, small daily
Speaker 13: changes that incrementally become healthier habits.
Speaker 2: This hyper personalization, as you reference it in artificial intelligence,
Speaker 2: is it already a reality already being deployed. How comfortable
Speaker 2: or uncomfortable are people with these sort of intimate cues.
Speaker 13: Well, that's what is so interesting. People are comfortable giving
Speaker 13: their own personal data biometrics labs calendar to show where
Speaker 13: they need the stress breaks, provided they get help back,
Speaker 13: provided they get value, and provided that they are given
Speaker 13: to others like employers, in an anonymized, aggregated way. And
Speaker 13: once we guarantee that, then people are willing to share
Speaker 13: personal data. And knowing personal preferences around sleep, around food,
Speaker 13: around how you like to exercise is critical so that
Speaker 13: the nudgets and their recommendations are hyper personalized. The other
Speaker 13: thing our line that is really important to remind ourselves
Speaker 13: of is that the healthcare system right now is broken.
Speaker 13: It's unsustainable. We are now spending seventeen percent of GDP
Speaker 13: in healthcare, up from five percent in the nineteen sixties,
Speaker 13: and the results are worse every year. Chronic diseases are skyrocketing.
Speaker 13: One that I can get out of my mind is
Speaker 13: that last year alone we had one hundred and fifty
Speaker 13: thousand leg amputations people with diabetes, and the human costs
Speaker 13: the healthcare cost are truly ancestainmon So that's why looking
Speaker 13: at behavior change as the miracle drug is something which
Speaker 13: we need to take much more seriously.
Speaker 2: Later Today, a private American made lunar lander, which was
Speaker 2: launched with a SpaceX rocket, is about to attempt landing
Speaker 2: on the Moon now. The spacecraft was built by Houston
Speaker 2: based Initiative Machines and is successful. This landing would put
Speaker 2: the US back in business on the Moon for the
Speaker 2: first time since NASA astronauts closed out the Apollo program
Speaker 2: fifty years ago. It would also become the first private
Speaker 2: outfit to realize the Moon landing. In Clayton Swape for
Speaker 2: his thoughts, his expertise, your deputy director of the Aerospace
Speaker 2: Security Project at the Central Strategic and International Studies. You've
Speaker 2: been tracking this mission closely. It's ahead of schedule. It
Speaker 2: looks like it's going to be landing softly, we hope,
Speaker 2: at four thirty pm New York time. Clayton, what does
Speaker 2: this signal about the way that NASA now does business?
Speaker 8: Well, thank you for having me on your show. First off,
Speaker 8: this is huge news. If intuitive machines can stick this
Speaker 8: landing today, this is a big news for commercial space.
Speaker 8: This is big news for the United States. We haven't
Speaker 8: been to the service of the Moon since nineteen seventy two.
Speaker 8: But this also is big news for NASA because it
Speaker 8: does validate the approach that they've taken for landing on
Speaker 8: the Moon of using commercial services to do that, which
Speaker 8: is very different than prior ways that NASA has done
Speaker 8: space missions.
Speaker 2: And what's interesting is it creates opportunities for this particular company.
Speaker 2: We've seen its ultimate market valuation skyrocket on the back
Speaker 2: of this potential success, but also other startups of life
Speaker 2: as it breathed into the ecosystem here in the US.
Speaker 1: Yeah.
Speaker 8: So this one program the NASA has, which I'm thinking
Speaker 8: looks a lot like FedEx or Uber to the Moon,
Speaker 8: where NASA is saying, we have a payload, we have
Speaker 8: something we want to get to the Moon's surface, and
Speaker 8: we're paying for a company to take it there. There
Speaker 8: are fourteen companies on that contract there from all around
Speaker 8: the country. Intuitive Machines is from Texas Astrobotic who attempted
Speaker 8: the first commercial landing under this program. They're from Pittsburgh, Pennsylvania.
Speaker 8: So the idea is that you have a lot of innovation,
Speaker 8: a lot of disruption and how you can do space
Speaker 8: and the goal there is to create competition and then
Speaker 8: ultimately make it cheaper, to make it more cost effective
Speaker 8: to get something from Earth to the Moon.
Speaker 2: I mean, we understand that the NOVASEA has got six
Speaker 2: payloads and NASA five commercial ones as well, and its
Speaker 2: contract is roughly about one hundred million dollars. It has
Speaker 2: escalated since when it was first signed on. Just talk
Speaker 2: us through how difficult it might be to stick this landing,
Speaker 2: Like what failures we've seen RELI recently and what's going
Speaker 2: to be so important about this particular one.
Speaker 8: Yeah, I think we sometimes forget how difficult it is
Speaker 8: just to get into space. So if we think about
Speaker 8: that in the context here, they had to get into space,
Speaker 8: they had to get from Earth to the Moon, they
Speaker 8: had to orbit the moon, and that last step landing
Speaker 8: on the Moon is probably the hardest part. We're having
Speaker 8: to relearn how to do that since we haven't done
Speaker 8: it for such a long time. The three prior commercial
Speaker 8: attempts to land on the Moon didn't succeed. I think
Speaker 8: the one way to look at these missions is how
Speaker 8: maybe the tech sector works and how you can fail
Speaker 8: fast and learn a lot from those activities. Admittedly, this
Speaker 8: is my first TV interview. I'm sure I'm going to
Speaker 8: watch this later and think I can never have done
Speaker 8: something I could have done something better, but I'll take
Speaker 8: that for the next one. And I think sometimes you
Speaker 8: only learn through through doing and through trying.
Speaker 2: Take us forward. Therefore Clayton say they sick the landing,
Speaker 2: it all works. What do we say see evolve from there?
Speaker 2: What are the next key landmarks that we want space
Speaker 2: marks and we want to see coming from such companies
Speaker 2: and in the NASA.
Speaker 8: Yeah, yeah, One thing to keep in mind, so this
Speaker 8: is a commercial approach to doing space, to getting to
Speaker 8: the Moon, but it's still payrolled or bankrolled by the government.
Speaker 8: So this is NASA money funding these missions. So it's
Speaker 8: helping to learn how to get to the moon, using
Speaker 8: methodologies to get to the moon, investigating new technologies, but
Speaker 8: still it's government money. So what I think we're really
Speaker 8: going to want to see is how these foundational capabilities
Speaker 8: and ways to do business in space, how then those
Speaker 8: carry over into other economic development in space, and how
Speaker 8: people learn to find business uses in space that aren't
Speaker 8: necessarily based on government money. That could be anything from
Speaker 8: asteroid mining to generating electricity to some kind of manufacturing.
Speaker 8: So we're on the cusp of that, and these programs
Speaker 8: are really helping to pave the waste so that we
Speaker 8: know how to do that when that time comes.
Speaker 2: So certainly doesn't feel like it's going to be your
Speaker 2: only TV.
Speaker 9: We thank you so much.
Speaker 2: Csis Aerospace Security Project Deputy Director. Well, we wait with
Speaker 2: beta breath for four thirty pm New York time. Meanwhile,
Speaker 2: that does it for this edition of Bloomberg Technology. You
Speaker 2: do not want to forget to check out our podcast
Speaker 2: so much to digest, of course, all things in video,
Speaker 2: all things the AI ecosystem, and of course all things
Speaker 2: as we anticipate not only key IPO listening coming soon
Speaker 2: we understand from Reddit and a key launch and perhaps
Speaker 2: landing on the moon. This is Bloomberg Technology.