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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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Speaker 1: from coast to coast with Caroline Hide in New York

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Speaker 1: and ed Lo Loow in sentrances.

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Speaker 2: Go This is Bloomberg Tech coming up. Qualcomm saws as

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Speaker 2: it jumps into the AI data center market with youtips

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Speaker 2: and computers aiming to challenge Nvidio.

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Speaker 3: Plus a huge week ahead for tech earnings with Microsoft, Google, Meta, Amazon,

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Speaker 3: and Apple all reporting.

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Speaker 4: We prepare you for the fire hose and we.

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Speaker 2: Sit down with CRUSO CEO Chase lock Miller to talk

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Speaker 2: about the company's latest ten billion dollar valuation.

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Speaker 3: From private markets to public markets. We check in what's

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Speaker 3: happening on the NASDAT today ed a new record high

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Speaker 3: for most of the benchmarks we have risk on. As

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Speaker 3: we anticipate that meeting between Trump and she will we

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Speaker 3: get some sort of positive connotation out of the meanings

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Speaker 3: between US and China, certainly in the market's anticipating it,

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Speaker 3: but also looking under the hood, there are some key movers.

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Speaker 4: And I know you're looking at one of them.

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Speaker 2: Yeah, let's get straight to Qualcomm right now. The stock

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Speaker 2: is up fifteen percent. At one point in the session,

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Speaker 2: it was up twenty two percent and on track for

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Speaker 2: its biggest jump since April of twenty nineteen. It has

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Speaker 2: come to the market with an NPU, a data center

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Speaker 2: chip for AI and machine learning tasks, and it has

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Speaker 2: a key customer. The stock's pairing some of its gain

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Speaker 2: right now. But this is a severe reaction and an

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Speaker 2: important story.

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Speaker 3: Caarra it is and treading on in videos toes on

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Speaker 3: a key week from video with GtC. Let's get to

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Speaker 3: more on Qualcomm's and its plans. Froomberg Chips reporter Ian

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Speaker 3: King is with you in Washington, Ian, give us the latest.

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Speaker 3: What already are they signaling to the market with Qualcom?

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Speaker 5: Yeah, I mean there's two things going on here. They're saying, look,

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Speaker 5: we've got a chip, we've got it, We've taken our time,

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Speaker 5: We've got it right here we are. We've got a

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Speaker 5: follow up chip already, we're going to have one after that.

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Speaker 5: And guess what, we've got a customer. So, you know,

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Speaker 5: late to the party. But they're making something of an entry.

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Speaker 5: I think that's the way to look at this.

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Speaker 2: An MPU or neural processing unit is just a specifically

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Speaker 2: designed chip for the task, right But in that arrangement

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Speaker 2: with Humane. They're saying like two hundred megawatt deal. It

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Speaker 2: seems like, you know this, Qualcom never gets any credit

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Speaker 2: in the stock market when it comes out. But the

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Speaker 2: read here seems to be this is real technology and

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Speaker 2: it's going into a real data center. But I'm assuming

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Speaker 2: they've been working on something like this for a while.

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Speaker 5: Yeah, I mean, this is a derivative of mobile technology

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Speaker 5: that they had for a while, and what they've done

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Speaker 5: is they scaled it up into the PC world and

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Speaker 5: now they're scaling up into the data center world. You

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Speaker 5: remember they bought Nuvea a few years ago to improve

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Speaker 5: their processing capabilities, essentially to go big, and this is,

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Speaker 5: you know, that the latest manifestation of it, and they're

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Speaker 5: going after the biggest market available.

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Speaker 3: ARMS doing well because of course underlying technology of Rockqualcom

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Speaker 3: in some way feeds money and royalties over to ARM.

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Speaker 4: But there is humane being mentioned. There is Sara Arabia.

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Speaker 4: But what after that in.

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Speaker 5: I mean, what we were told in the conversations we

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Speaker 5: had and we put in the story is that they

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Speaker 5: are speaking with all of the large data center operators,

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Speaker 5: all of the hyperscalers. So what I think people will

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Speaker 5: be now looking for from Qualcom will be obviously more customers,

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Speaker 5: more large scale deployments, more commitments to show that this

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Speaker 5: is not just an experiment, but is real, real deployments

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Speaker 5: and real you know, with billions of dollars as we're

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Speaker 5: seeing floating around everywhere else behind that kind of story.

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Speaker 2: Bloom Maggzine King, thank you very much. It is a

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Speaker 2: pivotal week for technology and markets, with five of the

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Speaker 2: Magnificent seven tech giants set to report earnings, and investors

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Speaker 2: are looking for clues on whether this tech rally can

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Speaker 2: continue here with more and what investors are expecting. Bloomberg

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Speaker 2: Equities reporter Ryan Blaslica, you had the task of previewing

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Speaker 2: a monster week what you've been writing about.

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Speaker 6: Hey, good morning, thank you for having me.

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Speaker 7: So I would say that the major takeaway this week,

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Speaker 7: or the major theme that investor is going to be

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Speaker 7: focusing on, is HAPEX. People want more clarity on how

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Speaker 7: sustainable all this AI spending is going to be. Of course,

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Speaker 7: this week we get results from Microsoft, Amazon, Alphabet, and Meta,

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Speaker 7: which are together four of the major Nvidia customers right there,

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Speaker 7: So anything they have to say about their spending plans,

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Speaker 7: anything they have to say about what kind of ROI

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Speaker 7: they're seeing from AI. All that is going to be

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Speaker 7: very closely monitored. And of course we have the top

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Speaker 7: three cloud companies in Microsoft and Amazon and Alphabet. If

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Speaker 7: we get to see more signs of some kind of

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Speaker 7: an acceleration and growth there, I think that will be

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Speaker 7: very warmly received.

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Speaker 3: Those hyperscalers, Microsoft, Alphabet, Amazon not a single cele rating

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Speaker 3: on them, Ryan, and in fact we're getting upgrades going

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Speaker 3: into these earnings.

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Speaker 4: What are you making of the bullishness here?

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Speaker 7: It's very universally bullish. This morning I wrote about Googenheim

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Speaker 7: which upgraded Microsoft, which I believe there leaves them with

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Speaker 7: ninety nine percent bull or buy ratings and then one

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Speaker 7: person who is a hold. So obviously a lot of

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Speaker 7: optimiy there. I think if you talk to analysts, you know,

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Speaker 7: people still feel valuations are at least reasonable, maybe a

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Speaker 7: little bit elevated. But all of these companies continue to

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Speaker 7: score very highly on quality characteristics, in terms of their

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Speaker 7: cash flow, in terms of their stability and durability. People

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Speaker 7: are positive on the management teams. They're seeing this very

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Speaker 7: well exposed of these major long term growth markets. So

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Speaker 7: there's still a lot of reason for optimism, but certainly

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Speaker 7: it is sort of a startling to see that pretty

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Speaker 7: much everyone has the same kind of BIO rating. And

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Speaker 7: I'd also flag a story republished over the weekend about

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Speaker 7: in video which has one bearish analyst, Jay Goldberg at

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Speaker 7: a seaport. We profiled him. If you're interested in reading that,

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Speaker 7: I highly recommend it.

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Speaker 3: We're always interested in reading it. Ran plus Delica, thank

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Speaker 3: you very much. Indeed, look, there has been all of

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Speaker 3: this fear and anxiety and AI bubble, can anix push

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Speaker 3: back against those fears, joining us to break it all

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Speaker 3: down and the current market signals. What it can mean

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Speaker 3: for invest is Denise Chism, director or Quantitative Market Strategy

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Speaker 3: at Fidelity Investments. Then is what we love about you

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Speaker 3: is you bring the historical context, the research data and

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Speaker 3: push us forward. Are there any alarm bells ringing as

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Speaker 3: we go into this important week?

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Speaker 8: Yeah, it's interesting when you look at the data. I mean,

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Speaker 8: everybody highlighted the fact that numbers have been coming up

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Speaker 8: into this earning season, and interestingly enough, technology has now

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Speaker 8: reaccelerated from a sector perspective back into the top quartile

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Speaker 8: of its history. And as much as we want to

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Speaker 8: be skeptical and say, well, doesn't that usually mean that

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Speaker 8: we have to mean revert that earnings growth typically does

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Speaker 8: prove durable when you study history. The more interesting data

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Speaker 8: comes with the fact that they've actually become more expensive

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Speaker 8: obviously from that almost discount that we saw during the

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Speaker 8: tariff tantrum. They're also back in the top quartile of

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Speaker 8: their valuation range as well, so meaning that you have

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Speaker 8: a matched perspective of expensive valuations and really high earnings growth.

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Speaker 8: The interesting part is for the last twenty years, if

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Speaker 8: you had to decide between an environment of expensive valuations

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Speaker 8: but high growth or lower growth but lower valuations, that

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Speaker 8: would actually be it would be a better situation to

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Speaker 8: be in the high growth, high valuation, which has been

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Speaker 8: much more predictive historically.

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Speaker 6: Denise.

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Speaker 2: Over the weekend I did a lot of reading, and

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Speaker 2: you know, the headline bubble comes up everywhere.

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Speaker 6: Across the newspapers.

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Speaker 2: But there is some interesting kind of points of distinction

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Speaker 2: between a stock bubble and a sector bubble. So in

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Speaker 2: a stock bubble, the argument is, well, you know, prices

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Speaker 2: and valuations being driven up without the fundamentals to support them.

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Speaker 2: But that is different where you have an entire industry

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Speaker 2: saying we're going to keep investing in this technology, right

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Speaker 2: and in the future we see a return on that investment.

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Speaker 2: Which side of the bubble debate do you sit on,

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Speaker 2: the stock or the story.

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Speaker 8: Well, it's interesting when you look at it compared to

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Speaker 8: what we went through in the tech rec I mean,

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Speaker 8: when you look at high growth and high valuations, you say, well,

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Speaker 8: that was exactly what we saw in the prior bubble.

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Speaker 8: So isn't this the first early stages of that. Well,

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Speaker 8: relative valuations were actually seventy percent higher in two thousand

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Speaker 8: and you ended up with almost negative operating margins. Not

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Speaker 8: only are we not negative in terms of operating margins

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Speaker 8: for technology as a sector, but they're actually increasing overall,

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Speaker 8: which is to say that sometimes things are expensive for

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Speaker 8: a reason. And when you look at bubble indicators like CAPEX,

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Speaker 8: if you add up all the catbex in the technology

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Speaker 8: sector and you divide it by the sales basis or

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Speaker 8: even free cash flow, you'll see that there's really nothing anomalists,

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Speaker 8: meaning that as much as some of the nominal numbers

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Speaker 8: are ie popping, some of the free cash flow is

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Speaker 8: also eye popping, as is the sales. So again it's

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Speaker 8: back to that high growth is matched with high valuations.

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Speaker 8: A lot of the time, what you almost see is

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Speaker 8: high valuations are being positive predictors of future growth, which

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Speaker 8: is usually more durable than I think investors expect.

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Speaker 2: Denise for you right now, which primary or secondary data

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Speaker 2: sets are you watching most closely?

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Speaker 6: For the tech sector? So for the tech.

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Speaker 8: Sector, I do think overall this shift between either economically

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Speaker 8: sensitive sectors like technology communications versus consumer discretionary and the

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Speaker 8: defensive sectors like consumer staples, healthcare utilities, the fact that

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Speaker 8: median earnings is finally starting to recover for the first

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Speaker 8: time in the better part of three years is actually

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Speaker 8: the best setup for those economically sensitive sectors like technology,

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Speaker 8: even despite the fact that technology has already worked, it

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Speaker 8: usually continues to work as the durability of the earning

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Speaker 8: story actually broadens out. On top of that broadening out stories,

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Speaker 8: I might say, well, are there any tailwinds that actually

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Speaker 8: are positively predictive, you know, even besides the FED cuts

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Speaker 8: that we're seeing and about to still see and the

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Speaker 8: tax cuts that we are still seeing or that have

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Speaker 8: seen and will bear fruit into twenty twenty six. Remember,

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Speaker 8: of all the sectors when you look at lower oil prices,

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Speaker 8: which were kind of a form of a tax cut.

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Speaker 8: Technology is the number one sector that outperforms after that

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Speaker 8: style of a tax cut as it filters through in

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Speaker 8: terms of cost to margins and potentially lower in flame

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Speaker 8: that increases multiples. So I think that there are a

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Speaker 8: lot of things that highlight the fact that there are

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Speaker 8: more tailwinds for overall earnings growth, which is bullish for

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Speaker 8: economically sensitive sectors like technology.

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Speaker 3: And how global does that data set and do those

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Speaker 3: tailwinds tend to be right now, Denise?

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Speaker 8: So I would say that from a global perspective, you

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Speaker 8: are certainly seeing earnings growth across the globe, but right

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Speaker 8: now you are seeing an interesting what I would say

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Speaker 8: is a change in trend from the last let's call

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Speaker 8: it four to six months, where international was accelerating and

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Speaker 8: the US was decelerating slightly. You are now seeing that shift,

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Speaker 8: meaning that US earnings, specifically led by technology, is reaccelerating

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Speaker 8: at the same point where Europe, EFA and emerging markets

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Speaker 8: are decelerating. That sets up, in my mind, a better

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Speaker 8: risk reward for markets, despite the fact that US stocks

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Speaker 8: are much more expensive. It's interesting when you look at

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Speaker 8: International versus the US, and you say, well, these stocks

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Speaker 8: have actually outperformed over the last ten months, you're to date, certainly,

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Speaker 8: and they're still cheap. That seems like a compelling proposition,

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Speaker 8: But when you look over the last you know, since

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Speaker 8: twenty ten, so over the last fifteen years, you'll see

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Speaker 8: that that's led to zero percent odds of outperformance for International,

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Speaker 8: which again highlights the fact that look valuation sometimes doesn't

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Speaker 8: say what you think it means. Sometimes stocks are cheap

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Speaker 8: for a reason, and sometimes stocks are expensive for a reason,

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Speaker 8: and a lot of times valuation almost correctly predicts whether

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Speaker 8: or not earning's growth is going to be durable or not.

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Speaker 8: So I do think that you are seeing the US

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Speaker 8: be leadership from an earning's perspective.

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Speaker 3: Again, briefly, in a historical context, have you ever seen

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Speaker 3: such underpinnings of importance from the private market, Because yes,

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Speaker 3: we worry about bubbles in the public markets, but a

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Speaker 3: lot of them all go back to a few players

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Speaker 3: in the private market like open AI.

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Speaker 7: Yeah.

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Speaker 8: So I think that the places to look from a

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Speaker 8: data perspective are always in the public credit markets to

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Speaker 8: see what we are discounting interns of the private credit markets.

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Speaker 8: I don't have any specific insight, but when you see

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Speaker 8: more stress being in high yield credit spreads than there

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Speaker 8: is in the VIX or in equity valuation spreads, that's

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Speaker 8: usually a negative setup. We're not seeing that so far.

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Speaker 8: Credit spreads are well contained and there's still more fear

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Speaker 8: in the equity market. So whenever you see headlines like that,

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Speaker 8: you always have to step back as an investor and say,

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Speaker 8: this could be a situation where yet again the market

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Speaker 8: can climb the wall of.

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Speaker 2: Worry, denischism of fidelity. It's great to have you back

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Speaker 2: on Bloomberg Tech. Thank you very much. Let's get to

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Speaker 2: shares of AMD. In some breaking news crossing the Bloomberg,

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Speaker 2: the US Department of Energy is said to have formed

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Speaker 2: a one billion dollar AI packed or partnership with AMD.

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Speaker 2: That's according to a report from Reuters. AMD said to

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Speaker 2: be constructing two supercomputers for the department as part of

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Speaker 2: that pack. The stock was in negative territory, it swung

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Speaker 2: to a gain of about two percent. It's paired that

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Speaker 2: now up nine tens to one percent. But we'll try

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Speaker 2: and confirm that story and bring you some.

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Speaker 3: More care and coming up more AI CEO Chase Logmler

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Speaker 3: is joining us to talk about the company's latest fundraise,

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Speaker 3: a ten billion dollar valuation.

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Speaker 4: We'll talk I Compute This is Blue, their tech.

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Speaker 6: AI data centers startup.

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Speaker 2: Crusoe's raised a new one point three seven billion dollar

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Speaker 2: funding round to put the company's valuation over.

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Speaker 6: Ten billion dollars.

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Speaker 2: Cruso's partnered in developing the first installation of Open Ai

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Speaker 2: and Oracles Stargate project in Abilene, Texas. Let's bring in

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Speaker 2: Cruso CEO Chase Lockmolo, who's in town for in videos

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Speaker 2: GtC DC, and you're going to be speaking The investors

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Speaker 2: in this round are important. It kind of signals maybe

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Speaker 2: where some of your next activity will be. But I

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Speaker 2: think in the context of the valuation, like I understand

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Speaker 2: Cruso to be a critical piece of the build out here,

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Speaker 2: it seems almost a bit modest that valuation.

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Speaker 9: Yeah, I you know, we feel like it's a great

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Speaker 9: valuation for investors to get in and we feel like

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Speaker 9: we have a lot of room to grow from from here.

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Speaker 9: Just a lot of momentum kind of happening across the space,

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Speaker 9: and you know, we're well captured what we're well positioned

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Speaker 9: to capture. Meaningful and out of it. So you know,

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Speaker 9: we're thrilled to bring on.

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Speaker 2: You're very busy in America, right, but what is your

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Speaker 2: ambition for the Gulf and the Middle East and what

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Speaker 2: projects you might want to build out over there.

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Speaker 9: You know, we're looking at a number of different things

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Speaker 9: in the in the GCC. You know, obviously having Mubattle

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Speaker 9: as a capital partner gives us a very strong partnership.

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Speaker 9: In the UEE. We are also sort of you know,

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Speaker 9: evaluating some of the things that are going on with

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Speaker 9: the ue Stargate and some of the ambitions in Saudi

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Speaker 9: But you know, we haven't announced anything quite yet.

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Speaker 3: Jase, I want to give context to our viewers who

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Speaker 3: know you for what you're doing with Stargate. You're also

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Speaker 3: action in Europe to maybe Middle East. But coming down

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Speaker 3: to it, you're a cloud provider, data sem to revite

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Speaker 3: a manufacturing You've got an edge when it comes to energy.

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Speaker 3: That was kind of the winning formula when you first

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Speaker 3: ever founded More to service bitcoin mining, and I'm interested

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Speaker 3: as to what sets you apart from a core weave

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Speaker 3: and other neo clouds out there.

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Speaker 9: I think there's a number of things. I mean, we

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Speaker 9: we've we've we've taken this vertically integrated energy first approach

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Speaker 9: kind of from the start and the founding and the business.

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Speaker 9: You know, we you know, I think a lot of

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Speaker 9: the value that was unlocked from you know, this first

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Speaker 9: Stargate campus in in Abilene was the fact that we

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Speaker 9: had access to one point two gigawats of power that

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Speaker 9: could energize this very large cluster of Nvidia GPUs. Building

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Speaker 9: it very very fast required us to have creative designs

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Speaker 9: and flexibility with a lot of modular components that went

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Speaker 9: into constructing this very large campus with you know a

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Speaker 9: lot of those modular components being manufactured off site. And

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Speaker 9: you know, I think we've built a very high performance

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Speaker 9: software stack to enable these AI factories to work work

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Speaker 9: very effectively in at scale, integrating a lot of great

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Speaker 9: managed services like our managed file systems and managed Kubernetes

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Speaker 9: that enable innovators to do their life's work on incredibly

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Speaker 9: reliable and high performance infrastructure.

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Speaker 3: Those innovators, we know open aiye is one of them.

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Speaker 3: But you're busy building elsewhere and wyoming, not just in Texas.

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Speaker 4: Who are you building for there?

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Speaker 3: Can you tell us a little bit about where the

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Speaker 3: appetite is coming from.

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Speaker 10: Uh.

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Speaker 9: We can't speak about who we're working with directly in

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Speaker 9: uh In Wyoming quite yet, but we have a we

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Speaker 9: have a we have a great partner there, and we'll

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Speaker 9: be thrilled to come back and tell you all about

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Speaker 9: it when we're ready to announce it publicly. But it

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Speaker 9: is a exciting campus just from both energy perspective and

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Speaker 9: the scale it presents. What we've announced initially is one

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Speaker 9: point eight gigawatts, but there is a plan to take

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Speaker 9: it to ten gigawatts, so it will be a very

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Speaker 9: very large campus for you know, AI computing infrastructure, and

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Speaker 9: we're thrilled to have a wonderful partner there.

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Speaker 2: Last week, the Trump administration made some announcements about how

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Speaker 2: they want to speed up the electrical hookups for data centers.

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Speaker 2: That's like at the core of the president's strategy cut

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Speaker 2: red tape. Do you regulate just your reaction to what

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Speaker 2: the administration is doing about speed matching supply of power

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Speaker 2: to infrastructure.

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Speaker 9: Yeah, you know, we're you know, I think we're we're

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Speaker 9: excited to have the support of the administration for some

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Speaker 9: of the critical blockers to to moving faster. You know,

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Speaker 9: one of our core values as a business is to

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Speaker 9: move fast and make things so we speed is really

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Speaker 9: at the essence of and at the core of a

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Speaker 9: lot of what we do. One of the more frustrating

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Speaker 9: things to be slowed down by is you know, waiting

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Speaker 9: for a permit to be approved, waiting for you know,

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Speaker 9: some sort of application that's that's in the hands of

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Speaker 9: a government agency. And you know, seeing the urgency from

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Speaker 9: this administration that saying like, hey, we need to support

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Speaker 9: the private sector to go out and build this infrastructure

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Speaker 9: so that America can lead an artificial intelligence is just

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Speaker 9: a great, you know, great indicator of what's to come.

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Speaker 9: And you know, we're really excited to have that public

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Speaker 9: private partnership. We think it's a very healthy dynamic that's

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Speaker 9: at play right now. And you know, we very big

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Speaker 9: supporters of a secretary right and you know what he's

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Speaker 9: doing to you know, help make this happen faster.

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Speaker 3: The key part of the infrastructure that you're building is

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Speaker 3: the chips that go in the data centers you're building

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Speaker 3: strong within video. We've just had the lead of our

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Speaker 3: show that Qualcom's trying to get in on AI accelerate

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Speaker 3: a marketplace.

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Speaker 4: What do you think about an offering from a Qualcom.

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Speaker 3: What's your read or other competitors coming forward?

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Speaker 9: Well, I mean I think everybody's sort of taking a

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Speaker 9: slightly different angle on this, and you know, big supporters

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Speaker 9: of there being more competition in the marketplace. I think

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Speaker 9: that's very healthy when you have a market as big

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Speaker 9: as AI and AI computing infrastructure. In the case of Qualcom,

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Speaker 9: I think their flavor that you know, I think fits

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Speaker 9: them a little bit better is more you know, AI

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Speaker 9: inference closer to the edge, you know, closer to you know,

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Speaker 9: these these on device or near the end points where

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Speaker 9: users will be interacting with infrastructure. So you know, I I, uh,

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Speaker 9: you know, I think that fits very well with kind

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Speaker 9: of the qual Coon dynamic and you know, their strengths

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Speaker 9: and what they can bring to the market as AI

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Speaker 9: gets embedded in all aspects of you know, the economy

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Speaker 9: and everything that you know, people are doing on a

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Speaker 9: day to day basis. We're a big believer that we

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Speaker 9: will need infrastructure everywhere to help support intelligence everywhere.

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Speaker 3: Chase Long, so great to have some time with you

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Speaker 3: as you're in town and DC for GtC and videos

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Speaker 3: big event. Co found recy of CRUSA, thank you for

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Speaker 3: joining and coming up Apple's future iPad pros.

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Speaker 4: Well, they're going to borrow some key features from thenly

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Speaker 4: to STI, we'll describe next. This is pretty bad tech.

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Speaker 6: Apple.

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Speaker 3: When I may be pouring over one of the iPhone

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Speaker 3: pro's latest innovations to the iPad pro, the company is

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Speaker 3: said to be eyeing putting a vapor chamber into future

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Speaker 3: iterations at the tablets is the subject of this week's

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Speaker 3: power on newsletter from Luemag's managing editor for Consumer tech,

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Speaker 3: Mark German. And talk us through Mark why this is

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Speaker 3: such a big thing for the iPad and what innovation

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Speaker 3: is really at stake here.

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Speaker 11: Yeah, let's just take a step back and talk about

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Speaker 11: what is a vapor chamber. It's a liquid cooling system.

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Speaker 11: So there's actually special, scientifically developed liquid inside of the

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Speaker 11: iPhone seventeen pro today.

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Speaker 12: And the reason they did that is that.

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Speaker 11: They noticed their chips can run so powerfully like they're

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Speaker 11: in a laptop, where it can get the device pretty hot,

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Speaker 11: and something as thin and light as an iPhone you

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Speaker 11: can't put a fan in there to cool it down

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Speaker 11: like you would in a mapbook pro or a dust

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Speaker 11: or what have you.

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Speaker 12: So this offsets that.

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Speaker 11: But the iPad Pro is even thinner than the iPhone

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Speaker 11: and even though the thermal constraints aren't as constrained because

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Speaker 11: you have that larger surface area, the chips are getting

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Speaker 11: more performance. They just put the M five processor from

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Speaker 11: the MacBook Pro and the new Vision Pro and.

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Speaker 12: The iPad Pro. But you can see as they continue

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Speaker 12: to add more performance to the iPad pro and those

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Speaker 12: designs can seue to get thinner and lighter, something's going

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Speaker 12: to give, especially when you can't put in a fan.

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Speaker 11: So the solution is bringing that vapor chamber from the

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Speaker 11: latest pro iPhones to the next generation Pro iPads.

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Speaker 12: In twenty twenty.

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Speaker 2: Seven, Mark real quick take us inside Apple and how

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Speaker 2: Apple works. So why is it they try the tech

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Speaker 2: first on iPhone and then later roll it to a

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Speaker 2: future generation iPad.

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Speaker 12: Uh, It really all depends, you know.

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Speaker 11: There have been so many features they've put in the

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Speaker 11: iPad first before they put in the iPhone, or put

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Speaker 11: in the mac before they brought it to another product.

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Speaker 12: So there's really no consistency there.

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Speaker 11: I think it comes down to the to the performance

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Speaker 11: needs for that particular and the importance much more important

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Speaker 11: to get the vapor chamber in the iPhone sooner. Remember

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Speaker 11: the iPhone fifteen pro came out a few years ago

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Speaker 11: super hot. They needed to do something to address that,

439
00:22:11,840 --> 00:22:14,760
Speaker 11: and that was their solution. The iPad pros. Today they

440
00:22:14,800 --> 00:22:16,919
Speaker 11: don't really overheat, but there's going to be a time

441
00:22:16,960 --> 00:22:19,720
Speaker 11: where the performance gets so high that if they didn't

442
00:22:19,760 --> 00:22:21,520
Speaker 11: have the vapor chamber of maybe you would have that

443
00:22:21,600 --> 00:22:22,480
Speaker 11: overheating issue.

444
00:22:22,520 --> 00:22:23,560
Speaker 12: So it's all dependent.

445
00:22:25,240 --> 00:22:28,040
Speaker 2: Bloomberg's Mark German and the latest power on from Sunday.

446
00:22:28,040 --> 00:22:37,960
Speaker 2: It's an absolute must read. Thank you very much, Welcome

447
00:22:37,960 --> 00:22:39,879
Speaker 2: back to Bloomberg Tech. Look, this is what's going on,

448
00:22:39,920 --> 00:22:41,800
Speaker 2: and it's largely semiconductor related.

449
00:22:42,160 --> 00:22:43,760
Speaker 6: Starting with in video. Right.

450
00:22:43,840 --> 00:22:46,320
Speaker 2: We are here in Washington, DC because they are doing

451
00:22:46,320 --> 00:22:49,679
Speaker 2: their DTC DC edition conference this week. There will be

452
00:22:49,760 --> 00:22:52,520
Speaker 2: news They're always with is when it comes to Jensen

453
00:22:52,520 --> 00:22:54,879
Speaker 2: Wong and his company. The dynamic, though, is that the

454
00:22:54,880 --> 00:22:56,600
Speaker 2: President of the United States is on a tour of

455
00:22:56,680 --> 00:23:00,800
Speaker 2: Asia and we don't yet know where semiconductors Nvidia fit

456
00:23:00,880 --> 00:23:03,600
Speaker 2: within that dynamic. In terms of newsflow, Quile comes up

457
00:23:03,640 --> 00:23:06,199
Speaker 2: twelve percent. At one point in the session, it was

458
00:23:06,280 --> 00:23:08,520
Speaker 2: up twenty two percent and on track for its biggest

459
00:23:08,600 --> 00:23:12,600
Speaker 2: jump since April of last year of sorry, April twenty nineteen,

460
00:23:12,920 --> 00:23:16,120
Speaker 2: the story they have an MPU an AI accelerator card.

461
00:23:16,119 --> 00:23:18,560
Speaker 2: It will ship next year and it goes to humane

462
00:23:18,560 --> 00:23:21,639
Speaker 2: in Saudi Arabia, first severe reaction to them entering the

463
00:23:21,680 --> 00:23:23,960
Speaker 2: data center market. Also go back to a story that

464
00:23:24,000 --> 00:23:27,280
Speaker 2: we covered earlier in the program. Reuters is reporting that

465
00:23:27,359 --> 00:23:30,520
Speaker 2: AMD has a pact with the Department of Energy to

466
00:23:30,560 --> 00:23:34,280
Speaker 2: build two supercomputers. And that is a report from Reuters

467
00:23:34,280 --> 00:23:37,040
Speaker 2: that's in that moment sent the stock up two percent.

468
00:23:37,200 --> 00:23:39,280
Speaker 2: It's kind of given up some of that game, up

469
00:23:39,560 --> 00:23:41,919
Speaker 2: zero point five percent. But we started the day, as

470
00:23:41,960 --> 00:23:43,560
Speaker 2: you can see on the left of the chart in

471
00:23:43,640 --> 00:23:44,520
Speaker 2: negative territory.

472
00:23:44,520 --> 00:23:45,440
Speaker 6: Goodness, that's a lot.

473
00:23:46,119 --> 00:23:50,359
Speaker 3: Caro, what a semiconductor roundup. But let's head over to ASA.

474
00:23:50,400 --> 00:23:52,960
Speaker 3: You just mentioned it ed because President Trump is in

475
00:23:53,119 --> 00:23:55,840
Speaker 3: back two back summits ahead of the highly anticipated meeting

476
00:23:56,040 --> 00:23:59,040
Speaker 3: with President huzim Paying later this week Chinese and US

477
00:23:59,119 --> 00:24:01,040
Speaker 3: training go she do is they've actually lined up a

478
00:24:01,080 --> 00:24:04,560
Speaker 3: few easy diplomatic wins ahead of that meeting. They've left

479
00:24:04,600 --> 00:24:08,879
Speaker 3: deeper conflicts unresolved for one Treasury Sextuary, Besson said that

480
00:24:08,960 --> 00:24:12,600
Speaker 3: he believed China would delay its latest rare earth restrictions

481
00:24:12,920 --> 00:24:15,879
Speaker 3: after the latest talks, but friction over the export controls

482
00:24:15,920 --> 00:24:18,080
Speaker 3: does remain. So we go out to Bluemost Tyler Kendall,

483
00:24:18,240 --> 00:24:21,959
Speaker 3: who joins us very late from Tokyo, Taya talk us

484
00:24:21,960 --> 00:24:24,879
Speaker 3: through where we stand in terms of winds for a

485
00:24:25,000 --> 00:24:26,120
Speaker 3: tech perspective here.

486
00:24:28,920 --> 00:24:31,680
Speaker 13: Yeah, hey, Caroline, Well, as you were mentioning the US

487
00:24:31,760 --> 00:24:33,920
Speaker 13: is one of their chief of wins that they wanted

488
00:24:33,960 --> 00:24:37,040
Speaker 13: to see this week was China delaying the implementation of

489
00:24:37,080 --> 00:24:41,160
Speaker 13: its recently announced export curves related to critical and rare

490
00:24:41,200 --> 00:24:44,159
Speaker 13: earth minerals. But the US Treasury Secretary maintains that the

491
00:24:44,280 --> 00:24:47,440
Speaker 13: US is not going to loosen its export controls related

492
00:24:47,440 --> 00:24:51,080
Speaker 13: to advanced semiconductors, and that could potentially mark a step

493
00:24:51,160 --> 00:24:54,520
Speaker 13: back for Invidia's bid to rejoin the Chinese market. Now,

494
00:24:54,560 --> 00:24:56,800
Speaker 13: I'm looking forward to your coverage this week of Jensen

495
00:24:56,840 --> 00:24:59,679
Speaker 13: Wang being in Washington, DC, and once he wraps up

496
00:24:59,720 --> 00:25:02,320
Speaker 13: his time I'm in the nation's capital, he's actually headed

497
00:25:02,359 --> 00:25:05,000
Speaker 13: over here to Asia where he's going to attend the

498
00:25:05,080 --> 00:25:07,840
Speaker 13: APEX CEO summit in South Korea. That's going to be

499
00:25:07,880 --> 00:25:10,840
Speaker 13: President Trump's next stop after he wraps up his time

500
00:25:10,880 --> 00:25:13,320
Speaker 13: here in Tokyo because that is where he's going to

501
00:25:13,320 --> 00:25:16,159
Speaker 13: meet with Chinese President Jijingping. So we're going to be

502
00:25:16,200 --> 00:25:18,920
Speaker 13: watching this very closely as it unfolds for the rest

503
00:25:18,960 --> 00:25:21,120
Speaker 13: of the week. Now, even as the US maintains it's

504
00:25:21,119 --> 00:25:23,879
Speaker 13: not going to loosen its current restrictions in place, our

505
00:25:23,920 --> 00:25:26,680
Speaker 13: analysts have Bloomberg Economics say that they expect the US

506
00:25:26,920 --> 00:25:29,320
Speaker 13: to take off the table the threatened but not yet

507
00:25:29,359 --> 00:25:34,000
Speaker 13: imposed restrictions, including those related to critical software and cloud computing.

508
00:25:34,160 --> 00:25:35,960
Speaker 13: There's a lot to look out for here, but really

509
00:25:36,000 --> 00:25:37,840
Speaker 13: the top line so far has been that there is

510
00:25:37,880 --> 00:25:41,560
Speaker 13: this simmering intentions that is appearing to allow for a

511
00:25:41,560 --> 00:25:45,280
Speaker 13: broader conversation about a broader trade deal down the line.

512
00:25:45,320 --> 00:25:47,400
Speaker 13: But at this moment, we are really just looking at

513
00:25:47,400 --> 00:25:50,080
Speaker 13: these key diplomatic wins, these top line wins, instead of

514
00:25:50,119 --> 00:25:53,760
Speaker 13: a fuller, more comprehensive pack bluebooks.

515
00:25:53,760 --> 00:25:57,120
Speaker 2: Tyler Kendo, who's traveling with the President currently in Tokyo,

516
00:25:57,200 --> 00:25:58,080
Speaker 2: thank you very much.

517
00:25:58,119 --> 00:25:58,199
Speaker 10: So.

518
00:25:58,240 --> 00:26:00,560
Speaker 2: In video, Chips have been at the center of this

519
00:26:00,640 --> 00:26:03,879
Speaker 2: trade impass between the US and China, the company losing

520
00:26:03,920 --> 00:26:06,560
Speaker 2: billions of dollars in revenue with its Ai chips out

521
00:26:06,640 --> 00:26:09,720
Speaker 2: of the Chinese market. The same week, President Trump plans

522
00:26:09,720 --> 00:26:12,600
Speaker 2: to meet Xijingping in videos holding one of its biggest

523
00:26:12,640 --> 00:26:15,480
Speaker 2: AI conferences at a massive convention hall just a few

524
00:26:15,480 --> 00:26:17,800
Speaker 2: blocks from the White House. And it's a pretty clear

525
00:26:17,920 --> 00:26:20,959
Speaker 2: sign of the growing stakes in Washington for the world's

526
00:26:20,960 --> 00:26:24,440
Speaker 2: most valuable company. Bloomberg Senior Tech editor Mike Shepherd joins

527
00:26:24,480 --> 00:26:27,520
Speaker 2: us to discuss the calculus from like Jensen, Huang's point

528
00:26:27,520 --> 00:26:29,880
Speaker 2: of view is very simple. Where once they had eighty

529
00:26:29,920 --> 00:26:32,680
Speaker 2: percent of a critical market, they now basically have zero,

530
00:26:32,960 --> 00:26:35,520
Speaker 2: and it's something he wants to reverse through the President

531
00:26:35,520 --> 00:26:36,359
Speaker 2: in this administration.

532
00:26:36,520 --> 00:26:39,160
Speaker 10: He has been making great efforts to do that, as

533
00:26:39,280 --> 00:26:42,040
Speaker 10: we have seen all year. And it's not just in

534
00:26:42,080 --> 00:26:44,959
Speaker 10: the many appearances that he has had with Donald Trump.

535
00:26:45,200 --> 00:26:47,720
Speaker 10: Remember he was present, of course for the unveiling of

536
00:26:47,720 --> 00:26:48,760
Speaker 10: the AI Action Plan.

537
00:26:48,960 --> 00:26:50,680
Speaker 6: He was also with the President.

538
00:26:50,320 --> 00:26:52,760
Speaker 10: On his trip to the Middle East earlier in the year,

539
00:26:52,920 --> 00:26:55,679
Speaker 10: and he joined Donald Trump on the visit to the

540
00:26:55,800 --> 00:27:00,800
Speaker 10: UK in August where they unveiled war AI chip deals.

541
00:27:01,000 --> 00:27:02,840
Speaker 10: But there is more to it than that. The company

542
00:27:02,880 --> 00:27:06,400
Speaker 10: is also investing in its lobbying operation here in Washington.

543
00:27:06,480 --> 00:27:09,960
Speaker 10: It's not just this come and go big event at

544
00:27:09,960 --> 00:27:12,680
Speaker 10: the convention Center just a few blocks from here. They

545
00:27:12,680 --> 00:27:15,720
Speaker 10: are also hiring more lobbyists and spending more to try

546
00:27:15,800 --> 00:27:18,639
Speaker 10: to make sure that their influence operation is here.

547
00:27:18,520 --> 00:27:22,720
Speaker 3: To stay and that influence mike more broadly, is there

548
00:27:22,720 --> 00:27:26,120
Speaker 3: an inbuilt confidence that they will have the access that's

549
00:27:26,119 --> 00:27:29,800
Speaker 3: necessary for China, because there's been this ongoing narrative in

550
00:27:30,119 --> 00:27:33,000
Speaker 3: the Republican Party itself torn a little bit about the

551
00:27:33,000 --> 00:27:35,680
Speaker 3: hawkishness that they should have for China and the access

552
00:27:35,720 --> 00:27:38,600
Speaker 3: to deep technology that should be allowed or not in

553
00:27:38,640 --> 00:27:41,119
Speaker 3: the case, Oh, Kerry.

554
00:27:40,880 --> 00:27:42,600
Speaker 6: You hit the nail on the head right there.

555
00:27:42,600 --> 00:27:46,280
Speaker 10: With the tension here in Washington over whether and how

556
00:27:46,359 --> 00:27:49,399
Speaker 10: much to allow Nvidia to return to the China market,

557
00:27:49,480 --> 00:27:53,560
Speaker 10: and really it centers on national security concerns. Many in

558
00:27:53,640 --> 00:27:57,520
Speaker 10: both parties Here in Washington, lawmakers and policy makers from

559
00:27:57,520 --> 00:28:00,600
Speaker 10: the prior administration and even some in the current administration

560
00:28:00,720 --> 00:28:04,919
Speaker 10: have some misgivings about allowing China to have access to

561
00:28:05,000 --> 00:28:09,560
Speaker 10: the sophisticated artificial intelligence chips that Nvidia produces. One of

562
00:28:09,600 --> 00:28:13,200
Speaker 10: the big concerns is that granting that technology to Beijing

563
00:28:13,480 --> 00:28:17,720
Speaker 10: opens the door somehow to the Communist Party there, somehow

564
00:28:17,760 --> 00:28:22,040
Speaker 10: employing it for military and intelligence gathering. Purposes, and that

565
00:28:22,080 --> 00:28:25,959
Speaker 10: would be across purposes, of course, with what the national

566
00:28:26,000 --> 00:28:29,399
Speaker 10: security apparatus here in Washington wants to see. China is

567
00:28:29,440 --> 00:28:32,920
Speaker 10: still seen as the top geopolitical rival with the US,

568
00:28:33,119 --> 00:28:36,160
Speaker 10: and they don't want to hand any sensitive technology in

569
00:28:36,200 --> 00:28:39,760
Speaker 10: that direction, citing those national security concerns. So we will

570
00:28:39,800 --> 00:28:43,280
Speaker 10: see how that comes up in the conversations here during

571
00:28:43,320 --> 00:28:46,400
Speaker 10: the Nvidia conference. We'll be looking to see what Jensen

572
00:28:46,440 --> 00:28:49,440
Speaker 10: Wong says, not only during his keynote, but also in

573
00:28:49,560 --> 00:28:52,840
Speaker 10: other aside moments with the media and other folks. If

574
00:28:52,880 --> 00:28:54,840
Speaker 10: this comes up in any way. It will also be

575
00:28:54,880 --> 00:28:58,440
Speaker 10: interested in seeing how lawmakers who are in attendance tomorrow

576
00:28:58,640 --> 00:29:00,960
Speaker 10: may actually be acting to that.

577
00:29:01,000 --> 00:29:02,920
Speaker 6: To his sales pitch of a return.

578
00:29:02,640 --> 00:29:05,200
Speaker 2: To China, Bloombos, Mike Shephard, thank you very much. So

579
00:29:05,240 --> 00:29:08,520
Speaker 2: a meeting between US and Chinese reps are drawing close

580
00:29:08,520 --> 00:29:12,080
Speaker 2: attention from the defense technology sector and its investors. Many

581
00:29:12,120 --> 00:29:16,600
Speaker 2: senior opportunities emerging under the Trump administration, particularly in areas

582
00:29:16,640 --> 00:29:22,040
Speaker 2: like space, defense, cybersecurity, advanced manufacturing sectors increasingly viewed as

583
00:29:22,080 --> 00:29:26,680
Speaker 2: arenas of competition between Washington and Beijing. Joining US now

584
00:29:26,760 --> 00:29:29,280
Speaker 2: is mina fultas he's the founder and chief investment officer

585
00:29:29,440 --> 00:29:33,120
Speaker 2: of Washington Harbor Partners. Welcome to Bloomberg Tech. I mean

586
00:29:33,120 --> 00:29:36,680
Speaker 2: that is the dynamic. There is tension economically and otherwise

587
00:29:36,720 --> 00:29:38,960
Speaker 2: between the United States and China, but if you're a

588
00:29:39,000 --> 00:29:43,480
Speaker 2: bench capitalist or private growth equity player, you see an opportunity.

589
00:29:44,000 --> 00:29:46,160
Speaker 14: Thank you so much both for having me here today.

590
00:29:46,920 --> 00:29:50,400
Speaker 14: At Washington Harbor Partners. We're running our daily ground game.

591
00:29:51,000 --> 00:29:53,360
Speaker 14: We're meeting with the Department of War. We're meeting with

592
00:29:53,360 --> 00:29:56,800
Speaker 14: the National security community, with the White House, with Congress

593
00:29:57,280 --> 00:30:00,520
Speaker 14: to listen and to engage and to understand and what

594
00:30:00,560 --> 00:30:03,280
Speaker 14: are the greatest mission needs, What are the market gaps,

595
00:30:03,320 --> 00:30:05,760
Speaker 14: and where can we find the best founders, with the

596
00:30:05,800 --> 00:30:09,520
Speaker 14: best leadership, with the best technologies and capabilities to meet

597
00:30:09,560 --> 00:30:11,560
Speaker 14: those needs and to fill those market gaps.

598
00:30:11,800 --> 00:30:13,320
Speaker 6: You just mentioned the Department of War.

599
00:30:13,760 --> 00:30:16,080
Speaker 2: Last week I was in Los Angeles with many space

600
00:30:16,160 --> 00:30:19,480
Speaker 2: technology leaders and they very much say that space is

601
00:30:19,480 --> 00:30:22,960
Speaker 2: the next war fighting domain. Their point, which I wrote

602
00:30:23,000 --> 00:30:26,440
Speaker 2: about for the Tech in Depth newsletter, is that Space Force,

603
00:30:26,600 --> 00:30:30,360
Speaker 2: as a government agency is a real player here. Do

604
00:30:30,400 --> 00:30:32,479
Speaker 2: you agree with that argument and do you see yourself

605
00:30:32,520 --> 00:30:33,800
Speaker 2: doing business with Space Force?

606
00:30:34,040 --> 00:30:37,200
Speaker 14: That's a great question, and space is a critical workfighting

607
00:30:37,280 --> 00:30:40,840
Speaker 14: domain that we're very interested in. We're very bullish on

608
00:30:40,880 --> 00:30:44,880
Speaker 14: the Space Force. We're very excited about their leadership, their talent,

609
00:30:45,160 --> 00:30:49,120
Speaker 14: their focus, the resources they're dedicating to this very critical

610
00:30:49,120 --> 00:30:53,200
Speaker 14: work fighting domain. We're making active investments in the space domain. So,

611
00:30:53,240 --> 00:30:56,920
Speaker 14: for example, we recently invested in a company called Turion Space,

612
00:30:57,200 --> 00:31:00,880
Speaker 14: which is a space domain awareness company. IDEA unified potential

613
00:31:00,880 --> 00:31:04,960
Speaker 14: threats in space, they analyze them, and they potentially help

614
00:31:05,040 --> 00:31:10,480
Speaker 14: to react to those emerging threats and emerging technologies. We

615
00:31:10,520 --> 00:31:14,080
Speaker 14: also have investments in companies like Stoke Space, apex Space,

616
00:31:14,400 --> 00:31:17,760
Speaker 14: and Quindar to meet these mission gaps and needs in space,

617
00:31:18,000 --> 00:31:19,880
Speaker 14: and we're on the lookout to be much more active

618
00:31:19,920 --> 00:31:20,680
Speaker 14: in the space domain.

619
00:31:21,280 --> 00:31:23,480
Speaker 3: Stoke Space just had some interesting news in and of

620
00:31:23,520 --> 00:31:24,960
Speaker 3: itself about its own fundraised.

621
00:31:24,960 --> 00:31:27,280
Speaker 4: I'm interested more broadly.

622
00:31:26,920 --> 00:31:30,160
Speaker 3: Than what is your ask when you're thinking about later

623
00:31:30,240 --> 00:31:33,960
Speaker 3: this week the meeting between she and Trump, how worried

624
00:31:34,040 --> 00:31:36,720
Speaker 3: are you about rare earth metals? How worried are you

625
00:31:36,720 --> 00:31:39,320
Speaker 3: about access at the moment when so much of this

626
00:31:39,400 --> 00:31:41,080
Speaker 3: is integral to some of the startups that.

627
00:31:41,000 --> 00:31:46,160
Speaker 14: You back, Thank you, Caroline. So the whole world is watching,

628
00:31:46,360 --> 00:31:50,040
Speaker 14: everyone's following the headlines, and at Washington Harbor, we just

629
00:31:50,080 --> 00:31:53,200
Speaker 14: have our heads down and running our daily ground game.

630
00:31:53,840 --> 00:31:54,479
Speaker 6: Rare Earth's.

631
00:31:54,560 --> 00:31:57,720
Speaker 14: The US supply chain we think is a very high priority.

632
00:31:57,960 --> 00:32:00,760
Speaker 14: We're investors in a company called Vulcanellum, which we think

633
00:32:00,800 --> 00:32:04,240
Speaker 14: can help create that domestic supply chain and ensure that

634
00:32:04,280 --> 00:32:07,840
Speaker 14: we have access to the most important materials for both

635
00:32:07,920 --> 00:32:13,840
Speaker 14: robotics and drones and other very important mission needs. Production

636
00:32:13,920 --> 00:32:17,360
Speaker 14: at scale we think is an increasingly important pain point.

637
00:32:17,600 --> 00:32:20,920
Speaker 14: We're investors in companies like Aerial Industries, which brings hardware

638
00:32:21,040 --> 00:32:25,520
Speaker 14: and sensors, ammunitions to the mission edge. Beyond just things,

639
00:32:25,800 --> 00:32:29,280
Speaker 14: we think data is incredibly valuable in part and valuable

640
00:32:29,320 --> 00:32:33,160
Speaker 14: and powerful. We think bringing data the edge and empowering

641
00:32:33,200 --> 00:32:37,240
Speaker 14: the warfighter and the operator with AI and AI enabled

642
00:32:37,520 --> 00:32:41,640
Speaker 14: capabilities is also of incredible importance. So we're invested in

643
00:32:41,640 --> 00:32:45,680
Speaker 14: a company called Raft which brings that decision making capability

644
00:32:45,760 --> 00:32:49,560
Speaker 14: using AI to the mission edge. And finally, power and

645
00:32:49,720 --> 00:32:54,880
Speaker 14: energy resilient, mobile, safe power and energy anywhere in the

646
00:32:54,880 --> 00:32:57,720
Speaker 14: world for the war fighter we also think is incredibly

647
00:32:57,720 --> 00:33:00,480
Speaker 14: important and very critical to this aply chain.

648
00:33:00,920 --> 00:33:03,080
Speaker 4: Just remind us of like your thesis.

649
00:33:03,480 --> 00:33:05,960
Speaker 3: At this moment, we've suddenly felt like twenty twenty five

650
00:33:06,000 --> 00:33:08,280
Speaker 3: has been the year that we're all talking about defense tech.

651
00:33:08,520 --> 00:33:11,200
Speaker 3: But the LPs that are in Washington Harbor partners, the

652
00:33:11,320 --> 00:33:13,720
Speaker 3: likes of the corporate pension fonts, the endowments of foundations,

653
00:33:14,840 --> 00:33:17,280
Speaker 3: have they always been there backing this thesis. How much

654
00:33:17,320 --> 00:33:21,200
Speaker 3: have you suddenly heard of this wall of demand coming

655
00:33:21,240 --> 00:33:24,520
Speaker 3: from those who want to access this VC focus that

656
00:33:24,560 --> 00:33:24,800
Speaker 3: you have.

657
00:33:26,480 --> 00:33:31,600
Speaker 14: We are very fortunate to have very focused LPs who

658
00:33:31,680 --> 00:33:35,120
Speaker 14: have been very passionate about bringing the best technologies to

659
00:33:35,160 --> 00:33:38,520
Speaker 14: not only the war fighter, but also the civil servant.

660
00:33:38,720 --> 00:33:41,760
Speaker 14: They see it as having been unfair that those who

661
00:33:41,800 --> 00:33:45,720
Speaker 14: are making the greatest sacrifice and taking the most courage

662
00:33:46,120 --> 00:33:49,600
Speaker 14: haven't had the best technologies and have critically been eight

663
00:33:49,640 --> 00:33:53,240
Speaker 14: to ten years behind the Fortune five hundred. Today, they're

664
00:33:53,280 --> 00:33:58,800
Speaker 14: all universally excited that in an area where we haven't

665
00:33:58,840 --> 00:34:02,960
Speaker 14: had the US military modernized and nearly a generation, all

666
00:34:03,080 --> 00:34:05,960
Speaker 14: the stars are aligning now to change things now more

667
00:34:06,000 --> 00:34:12,200
Speaker 14: than ever. Congress has appropriated real dollars to acquiring capability

668
00:34:12,280 --> 00:34:16,560
Speaker 14: and next generation technologies. Both sides of the aisle are

669
00:34:16,600 --> 00:34:20,640
Speaker 14: in agreement today that things have to change, that there

670
00:34:20,680 --> 00:34:24,440
Speaker 14: needs to be acquisition reform and that they're trying to

671
00:34:24,560 --> 00:34:28,720
Speaker 14: enable the Pentagon to acquire modern technologies and capabilities very quickly.

672
00:34:28,840 --> 00:34:32,040
Speaker 2: The timeline that all of the apparatus fence OUP US,

673
00:34:32,120 --> 00:34:34,800
Speaker 2: this nation runs to is conflict of some form twenty

674
00:34:34,840 --> 00:34:37,440
Speaker 2: twenty seven US and China. Do you model for that

675
00:34:37,520 --> 00:34:38,280
Speaker 2: same timeline?

676
00:34:38,360 --> 00:34:41,319
Speaker 14: You know, we model for asap. We model for the

677
00:34:41,440 --> 00:34:44,560
Speaker 14: urgent needs and not knowing when there could be conflict.

678
00:34:45,480 --> 00:34:50,640
Speaker 14: And so the critical thing here is that both military leaders,

679
00:34:50,960 --> 00:34:56,799
Speaker 14: civilian leaders, entrepreneurs, investors are scaling up and they're all

680
00:34:56,840 --> 00:34:59,320
Speaker 14: acting with a sense of urgency to make sure that

681
00:34:59,360 --> 00:35:01,560
Speaker 14: the warfighter has what they need in the next two

682
00:35:01,560 --> 00:35:05,040
Speaker 14: weeks and doesn't have to wait two years to get

683
00:35:05,080 --> 00:35:07,560
Speaker 14: what they deserve and need to fight this battle.

684
00:35:07,400 --> 00:35:10,400
Speaker 3: In ft of Washington Harbor Partners, It's great to have

685
00:35:10,440 --> 00:35:11,320
Speaker 3: some time with you today.

686
00:35:11,600 --> 00:35:14,560
Speaker 4: Come back soon. Meanwhile, coming up on as Big.

687
00:35:14,360 --> 00:35:18,520
Speaker 3: Tech gets set to report results AI bubble fears, they're lingering.

688
00:35:18,239 --> 00:35:20,160
Speaker 4: We're going to discuss that next. Is it real?

689
00:35:20,520 --> 00:35:40,840
Speaker 3: This is Blomberg Tech? Could the AI boom be headed

690
00:35:40,840 --> 00:35:44,839
Speaker 3: for a bust? Bloomberg Intelligences Brian Doherty says no, yeah,

691
00:35:45,080 --> 00:35:48,600
Speaker 3: calling AI quote the backbone of a modernized industrial economy,

692
00:35:49,080 --> 00:35:52,800
Speaker 3: not its next speculative tale. Please to say Brian joins

693
00:35:52,880 --> 00:35:54,719
Speaker 3: us now working with Jessica Lynn as well.

694
00:35:55,560 --> 00:35:58,680
Speaker 4: Just give us the fundamental underpinnings. It gives you confidence

695
00:35:58,680 --> 00:36:00,560
Speaker 4: that this isn't some tech rec written.

696
00:36:01,120 --> 00:36:03,080
Speaker 15: So I think what's really interesting is we actually look

697
00:36:03,120 --> 00:36:05,480
Speaker 15: at the equities landscape a little bit different than everybody else.

698
00:36:05,680 --> 00:36:08,400
Speaker 15: So everything we do is through a thematic lens or

699
00:36:08,400 --> 00:36:10,960
Speaker 15: a thesis driven so we actually carve up the equities

700
00:36:11,040 --> 00:36:16,279
Speaker 15: landscape into AI, decentralized energy, grid, tech, space ed you

701
00:36:16,280 --> 00:36:18,160
Speaker 15: guys were talking about this a few minutes ago, space

702
00:36:18,239 --> 00:36:20,840
Speaker 15: quantum computing. So when we think about tech or we

703
00:36:20,840 --> 00:36:23,799
Speaker 15: think about energy, we're actually looking much more discrete and

704
00:36:23,880 --> 00:36:25,600
Speaker 15: right now. What we're looking at right now is that

705
00:36:25,600 --> 00:36:29,279
Speaker 15: we've seen an incredible rise in correlations between AI and

706
00:36:29,520 --> 00:36:33,160
Speaker 15: decentralized energy transition metals, which again rare earths and other

707
00:36:33,200 --> 00:36:36,360
Speaker 15: metals critical to the transition. So those correlations have been

708
00:36:36,440 --> 00:36:39,279
Speaker 15: rising over the last year. What's also very interesting though,

709
00:36:39,320 --> 00:36:41,680
Speaker 15: is we're seeing that those names or those themes have

710
00:36:41,800 --> 00:36:44,319
Speaker 15: much higher beta to AI than they used to, and

711
00:36:44,360 --> 00:36:46,680
Speaker 15: more specifically, it means they're getting hit a little bit

712
00:36:46,719 --> 00:36:49,520
Speaker 15: harder on the downdraft, right, So when you get AI pullback,

713
00:36:49,560 --> 00:36:53,120
Speaker 15: you're seeing those decentralized energy grid tech transition metal names

714
00:36:53,400 --> 00:36:56,279
Speaker 15: actually feel some pain on that. But when we look

715
00:36:56,320 --> 00:36:59,239
Speaker 15: at how these secular trends are actually progressing, there is

716
00:36:59,320 --> 00:37:03,120
Speaker 15: just such huge, huge underlying opportunity in the bottlenecks, in

717
00:37:03,160 --> 00:37:06,000
Speaker 15: the retrofits, in the fact that, let's be honest, the

718
00:37:06,080 --> 00:37:08,719
Speaker 15: power grid itself was already aging. There's a lot of

719
00:37:08,719 --> 00:37:10,120
Speaker 15: investment opportunity there.

720
00:37:11,520 --> 00:37:14,040
Speaker 2: If you are a Bloomberg Terminal client and you're listening

721
00:37:14,080 --> 00:37:16,000
Speaker 2: to the show, first of all, look up at the

722
00:37:16,040 --> 00:37:19,200
Speaker 2: screen and really focus here of what Brian's about to say,

723
00:37:19,480 --> 00:37:22,280
Speaker 2: and then check out her research on the terminal. Seriously,

724
00:37:23,400 --> 00:37:26,520
Speaker 2: you're doing a comparison with twenty twenty one. Why why

725
00:37:26,560 --> 00:37:29,200
Speaker 2: look at twenty twenty one, and then you're saying, this

726
00:37:29,360 --> 00:37:31,400
Speaker 2: is what we think will happen in twenty twenty six.

727
00:37:31,760 --> 00:37:32,880
Speaker 6: Answer those two please.

728
00:37:33,239 --> 00:37:35,359
Speaker 15: So we're looking to twenty twenty one because that's the

729
00:37:35,400 --> 00:37:37,759
Speaker 15: most recent correction, if you will, that we saw, and

730
00:37:37,800 --> 00:37:39,359
Speaker 15: a lot of people refer back to twenty twenty one

731
00:37:39,360 --> 00:37:42,120
Speaker 15: where we see a lot of that particular US technology

732
00:37:42,560 --> 00:37:45,000
Speaker 15: really dive down into twenty twenty two, so that's a

733
00:37:45,000 --> 00:37:46,960
Speaker 15: really good reference point for US, something that we are flagging.

734
00:37:47,000 --> 00:37:49,239
Speaker 15: Though it's pretty hard to make comps right when you

735
00:37:49,320 --> 00:37:51,200
Speaker 15: go back to the dot com era. We're not in

736
00:37:51,239 --> 00:37:53,440
Speaker 15: the dotcom era. We're looking at when we look at

737
00:37:53,480 --> 00:37:57,080
Speaker 15: the eighteen biggest most powerful names in our AI theme universe,

738
00:37:57,120 --> 00:37:59,920
Speaker 15: for instance, we're talking about twenty four trillion of market

739
00:38:00,080 --> 00:38:03,040
Speaker 15: up in the dotcom area. That was more like a

740
00:38:03,080 --> 00:38:06,000
Speaker 15: seven trillion dollar type number in today's dollars. So what

741
00:38:06,000 --> 00:38:07,799
Speaker 15: we're looking at is twenty twenty one is the most

742
00:38:07,800 --> 00:38:10,920
Speaker 15: recent comp where we saw a massive market correction naturally,

743
00:38:11,280 --> 00:38:13,640
Speaker 15: and where we look to twenty twenty six, though we

744
00:38:13,680 --> 00:38:15,879
Speaker 15: don't expect that to happen. We've got rate cuts coming.

745
00:38:15,880 --> 00:38:17,399
Speaker 15: We've talked about that a lot in the last few

746
00:38:17,400 --> 00:38:19,319
Speaker 15: weeks as well, So rate cuts are coming, they're not

747
00:38:19,400 --> 00:38:21,600
Speaker 15: on the rise, which was also a big part of

748
00:38:21,600 --> 00:38:24,560
Speaker 15: that time period. And then, more importantly though, we are

749
00:38:24,680 --> 00:38:28,239
Speaker 15: very much flagging some tension. So while we do think

750
00:38:28,320 --> 00:38:30,560
Speaker 15: that we're very much in a boom, this isn't a bust.

751
00:38:30,680 --> 00:38:32,120
Speaker 15: It's not to say that it's not going to be

752
00:38:32,120 --> 00:38:34,520
Speaker 15: without tension. And the biggest tension we're watching for is

753
00:38:34,560 --> 00:38:37,480
Speaker 15: the fact that we've now seen tech investors tech dollars

754
00:38:37,920 --> 00:38:43,120
Speaker 15: flock towards industrial materials, energy names. Well, guess what those

755
00:38:43,160 --> 00:38:45,400
Speaker 15: tend to be longer build cycles. So the tension on

756
00:38:45,480 --> 00:38:48,600
Speaker 15: quarter to quarter earnings. Tech investors maybe aren't used to

757
00:38:48,600 --> 00:38:50,520
Speaker 15: the patients that are sometimes required in there, and so

758
00:38:50,560 --> 00:38:52,239
Speaker 15: we do expect some volatility because of that.

759
00:38:53,600 --> 00:38:56,120
Speaker 2: reON deity of Bloomberg Intelligence. We just showed it, but

760
00:38:56,160 --> 00:38:59,200
Speaker 2: it's must read research on the Bloomberg terminal with Jessica Lynn.

761
00:38:59,200 --> 00:39:00,160
Speaker 6: Thank you very much.

762
00:39:00,440 --> 00:39:02,880
Speaker 2: Now coming up, we're going to discuss how Warner Brothers

763
00:39:02,960 --> 00:39:07,120
Speaker 2: Discovery is looking for help blocking the Elesons.

764
00:39:07,680 --> 00:39:09,879
Speaker 6: That's a dynamic. This is green bag tech.

765
00:39:25,080 --> 00:39:27,040
Speaker 3: It is time now for talking tech of First up,

766
00:39:27,080 --> 00:39:29,359
Speaker 3: ahead of a meeting between President Trump and the South

767
00:39:29,400 --> 00:39:32,640
Speaker 3: Korean president, Lee j Young, the South Korean leader is

768
00:39:32,640 --> 00:39:35,240
Speaker 3: saying that the countries remain stuck on all the major

769
00:39:35,280 --> 00:39:37,680
Speaker 3: details of a three hundred and fifty billion dollar investment pledge.

770
00:39:37,719 --> 00:39:42,880
Speaker 16: Take a listen, Panshi, the method of investment, the amount

771
00:39:42,960 --> 00:39:46,080
Speaker 16: of investment, the timeline, and how we will share the

772
00:39:46,120 --> 00:39:50,120
Speaker 16: losses and divide the dividends. All of these remain sticking points.

773
00:39:50,600 --> 00:39:53,239
Speaker 16: The US will, of course try to maximize its interests,

774
00:39:53,280 --> 00:39:55,440
Speaker 16: but it must not be to an extent that causes

775
00:39:55,520 --> 00:39:58,040
Speaker 16: catastrophic consequences for South Korea.

776
00:39:58,920 --> 00:40:01,520
Speaker 3: Trump and Lee while they are set to meet on

777
00:40:01,560 --> 00:40:05,200
Speaker 3: the sidelines of the APEX summit. Plus, Nelson Peltz's Try

778
00:40:05,239 --> 00:40:08,560
Speaker 3: and Fund Management is teaming up with tech VC General

779
00:40:08,600 --> 00:40:11,360
Speaker 3: Catalyst to buy the rest of Janie Henderson. That the

780
00:40:11,400 --> 00:40:13,880
Speaker 3: two firms plan to use AI to drive the asset

781
00:40:13,920 --> 00:40:16,680
Speaker 3: manager's next phase of growth. After Try and Help bring

782
00:40:16,719 --> 00:40:20,920
Speaker 3: the CEO allied Budge and Janis Henderson posted five straight

783
00:40:21,000 --> 00:40:23,399
Speaker 3: quarters of positive inflows and.

784
00:40:23,400 --> 00:40:24,240
Speaker 4: Game Stop shares.

785
00:40:24,239 --> 00:40:28,000
Speaker 3: They jumped more prolly seismically in the pre market. Now

786
00:40:28,000 --> 00:40:29,759
Speaker 3: a little bit off that, but they're trading after our

787
00:40:29,800 --> 00:40:33,320
Speaker 3: white House x account reposted a company's statement declaring the

788
00:40:33,400 --> 00:40:37,920
Speaker 3: console wars over. GameStop was reacting to Microsoft's plan to

789
00:40:37,960 --> 00:40:41,800
Speaker 3: release a Halo Combat Evolved remake for rival PlayStation five

790
00:40:41,960 --> 00:40:43,000
Speaker 3: in twenty twenty six.

791
00:40:43,880 --> 00:40:44,960
Speaker 4: More on entertainment now.

792
00:40:45,000 --> 00:40:46,960
Speaker 3: As Warner Brothers Discovery announced a.

793
00:40:46,920 --> 00:40:50,680
Speaker 17: Strategic review Media Chants, they have been encircling the company

794
00:40:50,719 --> 00:40:53,120
Speaker 17: for a potential takeover the most aggressive of which has

795
00:40:53,160 --> 00:40:56,680
Speaker 17: been Paramount Skuidance, led by David Ellison, offering merger prospects

796
00:40:56,680 --> 00:40:57,600
Speaker 17: no less than.

797
00:40:57,520 --> 00:40:58,640
Speaker 4: Three times already.

798
00:40:58,920 --> 00:41:02,240
Speaker 3: Bluemokes Media and entertain Managing editor Lukashaw, You've been writing

799
00:41:02,239 --> 00:41:04,920
Speaker 3: about it over the course of the weekend. And why

800
00:41:05,200 --> 00:41:08,880
Speaker 3: has David Salzlov been pushing back on Paramount's guidance.

801
00:41:09,760 --> 00:41:12,839
Speaker 18: Well, the several reasons, the first of which is they

802
00:41:12,840 --> 00:41:15,520
Speaker 18: think they can get more money. I think there are

803
00:41:15,560 --> 00:41:18,640
Speaker 18: concerns about David Elson and Paramounts guidance as a buyer

804
00:41:18,640 --> 00:41:22,000
Speaker 18: that we can get to. But David Ellison has increased

805
00:41:22,040 --> 00:41:24,080
Speaker 18: his offer three times in a row. All of the

806
00:41:24,160 --> 00:41:27,600
Speaker 18: chatter around potential deals has led to a huge spike

807
00:41:27,640 --> 00:41:30,480
Speaker 18: in the Warner Brothers Discovery share price, and so you

808
00:41:30,520 --> 00:41:32,440
Speaker 18: know they're trying to start something of a bidding war

809
00:41:32,520 --> 00:41:34,720
Speaker 18: because while there are other parties who may be interested

810
00:41:34,760 --> 00:41:37,279
Speaker 18: in parts of the business, so far David Ellison is

811
00:41:37,280 --> 00:41:38,560
Speaker 18: the on owned who's come out and said I.

812
00:41:38,480 --> 00:41:39,080
Speaker 6: Want the whole thing.

813
00:41:39,920 --> 00:41:42,200
Speaker 4: He wants the whole thing. How are employees reacting?

814
00:41:42,200 --> 00:41:44,840
Speaker 3: How is just the company surviving with what is a

815
00:41:44,840 --> 00:41:45,720
Speaker 3: big question mark?

816
00:41:46,760 --> 00:41:50,520
Speaker 18: Well, look, employees at Warner Brothers Discovery are unfortunately used

817
00:41:50,560 --> 00:41:53,880
Speaker 18: to this type of uncertainty around deals. You know, Warner

818
00:41:53,880 --> 00:41:56,480
Speaker 18: Brothers and HBO, and there have been various names of

819
00:41:56,520 --> 00:41:59,120
Speaker 18: the kind of the corporate entity Time Warner Warner Media,

820
00:41:59,200 --> 00:42:01,879
Speaker 18: but Time war got sold to AT and T many

821
00:42:01,920 --> 00:42:04,600
Speaker 18: years ago, then it got merged with Discovery, so it

822
00:42:04,880 --> 00:42:06,680
Speaker 18: I think a lot of them feel like they've been

823
00:42:06,719 --> 00:42:09,680
Speaker 18: in one never ending integration meeting with lots of layoffs.

824
00:42:10,120 --> 00:42:13,320
Speaker 18: And you know, David as loves a divisive figure internally

825
00:42:13,320 --> 00:42:15,319
Speaker 18: at the company. So some people are very excited about

826
00:42:15,320 --> 00:42:15,800
Speaker 18: the prospects.

827
00:42:15,840 --> 00:42:16,759
Speaker 12: Some people are dreading it.

828
00:42:17,880 --> 00:42:19,960
Speaker 3: Talking of excitement where excitement is at the moment in

829
00:42:19,960 --> 00:42:22,719
Speaker 3: the world of entertainment. Taught me through BTS, taught me

830
00:42:22,760 --> 00:42:25,520
Speaker 3: through the shar scale of desire to get into these

831
00:42:25,560 --> 00:42:26,479
Speaker 3: pop bands from career.

832
00:42:27,320 --> 00:42:30,600
Speaker 18: Yeah, so BTS is I'd say that the band most

833
00:42:30,640 --> 00:42:34,040
Speaker 18: responsible for popularizing K pop around the world, certainly outside

834
00:42:34,080 --> 00:42:37,200
Speaker 18: of South Korea, the best selling artists in the world

835
00:42:37,239 --> 00:42:39,000
Speaker 18: for a couple of years, I think in twenty twenty

836
00:42:39,000 --> 00:42:42,040
Speaker 18: and twenty twenty one, they've been on hiatus essentially because

837
00:42:42,080 --> 00:42:45,000
Speaker 18: the various members of the military or excuse me, various

838
00:42:45,000 --> 00:42:46,960
Speaker 18: members of a group have been serving in the military.

839
00:42:47,120 --> 00:42:49,640
Speaker 18: They are coming back with a new album in March

840
00:42:50,040 --> 00:42:52,240
Speaker 18: and then going to go on their biggest tour ever

841
00:42:52,560 --> 00:42:55,719
Speaker 18: according to my sources, about sixty five dates, including more

842
00:42:55,760 --> 00:42:58,040
Speaker 18: than thirty in North America, and there's a huge fight

843
00:42:58,160 --> 00:43:00,600
Speaker 18: between the two biggest concert promoters in the world to

844
00:43:00,640 --> 00:43:02,120
Speaker 18: get to be the company to promote it.

845
00:43:02,719 --> 00:43:05,239
Speaker 3: Meanwhile, all the fights at home are for costumes for

846
00:43:05,560 --> 00:43:08,200
Speaker 3: K pop demon Hunters, so clearly it's a theme.

847
00:43:08,200 --> 00:43:10,399
Speaker 4: Bloomberg's Lucashaw, thank you very much.

848
00:43:10,400 --> 00:43:12,640
Speaker 3: Indeed, it's a great read, go get to it and

849
00:43:12,680 --> 00:43:14,200
Speaker 3: his newsletters from all of his team.

850
00:43:14,239 --> 00:43:15,080
Speaker 4: Meanwhile, that does.

851
00:43:14,880 --> 00:43:17,920
Speaker 3: It with this edition at Bloomberg Tech quick check on

852
00:43:18,040 --> 00:43:20,319
Speaker 3: Qualcomm in particular, that was the breaking news at the

853
00:43:20,320 --> 00:43:22,760
Speaker 3: top of the hour, the fact that Qualcom has indeed

854
00:43:22,760 --> 00:43:24,960
Speaker 3: decided it's going to be unveiling a competitor to in

855
00:43:25,040 --> 00:43:27,200
Speaker 3: Video and wants a bit more of the AI Slice

856
00:43:27,239 --> 00:43:29,160
Speaker 3: of the Pie and Boy of Shares move off the

857
00:43:29,200 --> 00:43:30,919
Speaker 3: back of it were up more than twelve percent, coming

858
00:43:30,920 --> 00:43:32,960
Speaker 3: off of what was a twenty percent move at one point.

859
00:43:33,080 --> 00:43:35,440
Speaker 3: But we are risk on across the tech world as

860
00:43:35,480 --> 00:43:38,320
Speaker 3: we prepare ourselves for a meeting between US and China.

861
00:43:38,440 --> 00:43:40,759
Speaker 3: Don't forget to check out our podcast. You can find

862
00:43:40,760 --> 00:43:42,840
Speaker 3: it on the terminal as well as online on Apple, Spotify,

863
00:43:42,880 --> 00:43:45,480
Speaker 3: and iHeart. We've got a thick and fast earnings week

864
00:43:45,520 --> 00:43:46,359
Speaker 3: stick with us for it.

865
00:43:46,640 --> 00:43:47,400
Speaker 4: This is Bloomberg