WEBVTT - Qualcomm Takes Aim at Nvidia with New Chips 0:00:02.520 --> 0:00:13.600 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.640 --> 0:00:17.400 from coast to coast with Caroline Hide in New York 0:00:17.720 --> 0:00:20.200 and ed Lo Loow in sentrances. 0:00:19.600 --> 0:00:26.680 Go This is Bloomberg Tech coming up. Qualcomm saws as 0:00:26.680 --> 0:00:29.880 it jumps into the AI data center market with youtips 0:00:29.880 --> 0:00:32.240 and computers aiming to challenge Nvidio. 0:00:32.360 --> 0:00:36.400 Plus a huge week ahead for tech earnings with Microsoft, Google, Meta, Amazon, 0:00:36.440 --> 0:00:37.879 and Apple all reporting. 0:00:38.159 --> 0:00:41.239 We prepare you for the fire hose and we. 0:00:41.200 --> 0:00:43.760 Sit down with CRUSO CEO Chase lock Miller to talk 0:00:43.800 --> 0:00:47.680 about the company's latest ten billion dollar valuation. 0:00:47.400 --> 0:00:49.519 From private markets to public markets. We check in what's 0:00:49.520 --> 0:00:52.320 happening on the NASDAT today ed a new record high 0:00:52.360 --> 0:00:54.640 for most of the benchmarks we have risk on. As 0:00:54.640 --> 0:00:57.280 we anticipate that meeting between Trump and she will we 0:00:57.360 --> 0:01:00.959 get some sort of positive connotation out of the meanings 0:01:01.000 --> 0:01:03.960 between US and China, certainly in the market's anticipating it, 0:01:04.000 --> 0:01:06.680 but also looking under the hood, there are some key movers. 0:01:06.360 --> 0:01:08.360 And I know you're looking at one of them. 0:01:08.600 --> 0:01:11.479 Yeah, let's get straight to Qualcomm right now. The stock 0:01:11.560 --> 0:01:14.160 is up fifteen percent. At one point in the session, 0:01:14.200 --> 0:01:16.120 it was up twenty two percent and on track for 0:01:16.160 --> 0:01:19.760 its biggest jump since April of twenty nineteen. It has 0:01:19.840 --> 0:01:23.559 come to the market with an NPU, a data center 0:01:23.680 --> 0:01:27.040 chip for AI and machine learning tasks, and it has 0:01:27.080 --> 0:01:29.880 a key customer. The stock's pairing some of its gain 0:01:30.000 --> 0:01:32.600 right now. But this is a severe reaction and an 0:01:32.640 --> 0:01:33.360 important story. 0:01:33.440 --> 0:01:36.440 Caarra it is and treading on in videos toes on 0:01:36.480 --> 0:01:38.600 a key week from video with GtC. Let's get to 0:01:38.640 --> 0:01:41.440 more on Qualcomm's and its plans. Froomberg Chips reporter Ian 0:01:41.520 --> 0:01:44.560 King is with you in Washington, Ian, give us the latest. 0:01:44.680 --> 0:01:48.040 What already are they signaling to the market with Qualcom? 0:01:48.880 --> 0:01:51.720 Yeah, I mean there's two things going on here. They're saying, look, 0:01:52.240 --> 0:01:54.520 we've got a chip, we've got it, We've taken our time, 0:01:54.720 --> 0:01:56.960 We've got it right here we are. We've got a 0:01:57.000 --> 0:01:59.160 follow up chip already, we're going to have one after that. 0:01:59.360 --> 0:02:02.320 And guess what, we've got a customer. So, you know, 0:02:02.520 --> 0:02:05.560 late to the party. But they're making something of an entry. 0:02:05.600 --> 0:02:06.800 I think that's the way to look at this. 0:02:07.520 --> 0:02:11.440 An MPU or neural processing unit is just a specifically 0:02:11.520 --> 0:02:14.800 designed chip for the task, right But in that arrangement 0:02:14.800 --> 0:02:17.959 with Humane. They're saying like two hundred megawatt deal. It 0:02:18.080 --> 0:02:20.720 seems like, you know this, Qualcom never gets any credit 0:02:20.760 --> 0:02:23.000 in the stock market when it comes out. But the 0:02:23.040 --> 0:02:25.640 read here seems to be this is real technology and 0:02:25.680 --> 0:02:28.240 it's going into a real data center. But I'm assuming 0:02:28.240 --> 0:02:29.880 they've been working on something like this for a while. 0:02:29.960 --> 0:02:32.959 Yeah, I mean, this is a derivative of mobile technology 0:02:33.000 --> 0:02:34.720 that they had for a while, and what they've done 0:02:34.840 --> 0:02:38.160 is they scaled it up into the PC world and 0:02:38.200 --> 0:02:40.480 now they're scaling up into the data center world. You 0:02:40.480 --> 0:02:43.639 remember they bought Nuvea a few years ago to improve 0:02:43.760 --> 0:02:47.760 their processing capabilities, essentially to go big, and this is, 0:02:47.840 --> 0:02:49.960 you know, that the latest manifestation of it, and they're 0:02:50.000 --> 0:02:51.679 going after the biggest market available. 0:02:52.120 --> 0:02:54.959 ARMS doing well because of course underlying technology of Rockqualcom 0:02:55.160 --> 0:02:57.320 in some way feeds money and royalties over to ARM. 0:02:57.400 --> 0:03:00.480 But there is humane being mentioned. There is Sara Arabia. 0:03:00.520 --> 0:03:01.760 But what after that in. 0:03:03.600 --> 0:03:06.080 I mean, what we were told in the conversations we 0:03:06.120 --> 0:03:07.480 had and we put in the story is that they 0:03:07.560 --> 0:03:10.960 are speaking with all of the large data center operators, 0:03:11.360 --> 0:03:14.560 all of the hyperscalers. So what I think people will 0:03:14.600 --> 0:03:17.680 be now looking for from Qualcom will be obviously more customers, 0:03:17.720 --> 0:03:20.480 more large scale deployments, more commitments to show that this 0:03:20.680 --> 0:03:24.720 is not just an experiment, but is real, real deployments 0:03:24.760 --> 0:03:26.920 and real you know, with billions of dollars as we're 0:03:26.919 --> 0:03:30.800 seeing floating around everywhere else behind that kind of story. 0:03:30.720 --> 0:03:33.240 Bloom Maggzine King, thank you very much. It is a 0:03:33.280 --> 0:03:36.640 pivotal week for technology and markets, with five of the 0:03:36.640 --> 0:03:39.920 Magnificent seven tech giants set to report earnings, and investors 0:03:39.960 --> 0:03:42.840 are looking for clues on whether this tech rally can 0:03:42.880 --> 0:03:46.080 continue here with more and what investors are expecting. Bloomberg 0:03:46.120 --> 0:03:49.720 Equities reporter Ryan Blaslica, you had the task of previewing 0:03:49.760 --> 0:03:51.840 a monster week what you've been writing about. 0:03:53.040 --> 0:03:54.480 Hey, good morning, thank you for having me. 0:03:54.560 --> 0:03:57.000 So I would say that the major takeaway this week, 0:03:57.040 --> 0:03:58.880 or the major theme that investor is going to be 0:03:58.880 --> 0:04:02.720 focusing on, is HAPEX. People want more clarity on how 0:04:02.760 --> 0:04:06.040 sustainable all this AI spending is going to be. Of course, 0:04:06.080 --> 0:04:10.640 this week we get results from Microsoft, Amazon, Alphabet, and Meta, 0:04:10.680 --> 0:04:14.640 which are together four of the major Nvidia customers right there, 0:04:14.640 --> 0:04:17.200 So anything they have to say about their spending plans, 0:04:17.279 --> 0:04:19.599 anything they have to say about what kind of ROI 0:04:19.640 --> 0:04:22.120 they're seeing from AI. All that is going to be 0:04:22.520 --> 0:04:24.760 very closely monitored. And of course we have the top 0:04:24.800 --> 0:04:29.640 three cloud companies in Microsoft and Amazon and Alphabet. If 0:04:29.640 --> 0:04:31.360 we get to see more signs of some kind of 0:04:31.400 --> 0:04:33.479 an acceleration and growth there, I think that will be 0:04:33.600 --> 0:04:34.680 very warmly received. 0:04:35.000 --> 0:04:40.119 Those hyperscalers, Microsoft, Alphabet, Amazon not a single cele rating 0:04:40.160 --> 0:04:43.320 on them, Ryan, and in fact we're getting upgrades going 0:04:43.360 --> 0:04:44.520 into these earnings. 0:04:44.760 --> 0:04:46.680 What are you making of the bullishness here? 0:04:47.720 --> 0:04:50.920 It's very universally bullish. This morning I wrote about Googenheim 0:04:50.960 --> 0:04:53.640 which upgraded Microsoft, which I believe there leaves them with 0:04:54.000 --> 0:04:56.839 ninety nine percent bull or buy ratings and then one 0:04:56.880 --> 0:04:59.520 person who is a hold. So obviously a lot of 0:04:59.560 --> 0:05:02.800 optimiy there. I think if you talk to analysts, you know, 0:05:02.839 --> 0:05:06.200 people still feel valuations are at least reasonable, maybe a 0:05:06.200 --> 0:05:08.800 little bit elevated. But all of these companies continue to 0:05:08.800 --> 0:05:12.320 score very highly on quality characteristics, in terms of their 0:05:12.360 --> 0:05:15.640 cash flow, in terms of their stability and durability. People 0:05:15.680 --> 0:05:18.120 are positive on the management teams. They're seeing this very 0:05:18.120 --> 0:05:21.479 well exposed of these major long term growth markets. So 0:05:21.480 --> 0:05:23.880 there's still a lot of reason for optimism, but certainly 0:05:23.960 --> 0:05:26.279 it is sort of a startling to see that pretty 0:05:26.320 --> 0:05:27.960 much everyone has the same kind of BIO rating. And 0:05:28.000 --> 0:05:30.400 I'd also flag a story republished over the weekend about 0:05:30.400 --> 0:05:33.480 in video which has one bearish analyst, Jay Goldberg at 0:05:33.520 --> 0:05:36.760 a seaport. We profiled him. If you're interested in reading that, 0:05:36.839 --> 0:05:37.840 I highly recommend it. 0:05:38.080 --> 0:05:40.920 We're always interested in reading it. Ran plus Delica, thank 0:05:40.920 --> 0:05:43.760 you very much. Indeed, look, there has been all of 0:05:43.800 --> 0:05:47.320 this fear and anxiety and AI bubble, can anix push 0:05:47.360 --> 0:05:49.200 back against those fears, joining us to break it all 0:05:49.200 --> 0:05:51.400 down and the current market signals. What it can mean 0:05:51.480 --> 0:05:55.040 for invest is Denise Chism, director or Quantitative Market Strategy 0:05:55.080 --> 0:05:57.680 at Fidelity Investments. Then is what we love about you 0:05:57.760 --> 0:06:00.840 is you bring the historical context, the research data and 0:06:00.839 --> 0:06:03.600 push us forward. Are there any alarm bells ringing as 0:06:03.600 --> 0:06:04.880 we go into this important week? 0:06:05.400 --> 0:06:07.080 Yeah, it's interesting when you look at the data. I mean, 0:06:07.080 --> 0:06:09.320 everybody highlighted the fact that numbers have been coming up 0:06:09.360 --> 0:06:12.560 into this earning season, and interestingly enough, technology has now 0:06:12.600 --> 0:06:15.960 reaccelerated from a sector perspective back into the top quartile 0:06:16.000 --> 0:06:17.840 of its history. And as much as we want to 0:06:17.880 --> 0:06:20.719 be skeptical and say, well, doesn't that usually mean that 0:06:21.120 --> 0:06:24.279 we have to mean revert that earnings growth typically does 0:06:24.360 --> 0:06:27.960 prove durable when you study history. The more interesting data 0:06:28.040 --> 0:06:31.039 comes with the fact that they've actually become more expensive 0:06:31.120 --> 0:06:33.800 obviously from that almost discount that we saw during the 0:06:33.800 --> 0:06:36.599 tariff tantrum. They're also back in the top quartile of 0:06:36.600 --> 0:06:39.560 their valuation range as well, so meaning that you have 0:06:39.640 --> 0:06:44.040 a matched perspective of expensive valuations and really high earnings growth. 0:06:44.200 --> 0:06:46.800 The interesting part is for the last twenty years, if 0:06:46.839 --> 0:06:49.920 you had to decide between an environment of expensive valuations 0:06:49.920 --> 0:06:54.760 but high growth or lower growth but lower valuations, that 0:06:54.800 --> 0:06:57.520 would actually be it would be a better situation to 0:06:57.560 --> 0:07:00.920 be in the high growth, high valuation, which has been 0:07:01.200 --> 0:07:02.839 much more predictive historically. 0:07:04.560 --> 0:07:05.000 Denise. 0:07:05.080 --> 0:07:07.520 Over the weekend I did a lot of reading, and 0:07:07.839 --> 0:07:10.880 you know, the headline bubble comes up everywhere. 0:07:10.600 --> 0:07:11.840 Across the newspapers. 0:07:12.080 --> 0:07:14.480 But there is some interesting kind of points of distinction 0:07:14.520 --> 0:07:17.800 between a stock bubble and a sector bubble. So in 0:07:17.800 --> 0:07:20.800 a stock bubble, the argument is, well, you know, prices 0:07:20.840 --> 0:07:24.600 and valuations being driven up without the fundamentals to support them. 0:07:24.840 --> 0:07:27.680 But that is different where you have an entire industry 0:07:27.720 --> 0:07:30.480 saying we're going to keep investing in this technology, right 0:07:30.760 --> 0:07:34.600 and in the future we see a return on that investment. 0:07:35.320 --> 0:07:37.560 Which side of the bubble debate do you sit on, 0:07:37.680 --> 0:07:39.160 the stock or the story. 0:07:39.880 --> 0:07:42.000 Well, it's interesting when you look at it compared to 0:07:42.280 --> 0:07:44.080 what we went through in the tech rec I mean, 0:07:44.080 --> 0:07:46.760 when you look at high growth and high valuations, you say, well, 0:07:46.760 --> 0:07:49.120 that was exactly what we saw in the prior bubble. 0:07:49.160 --> 0:07:52.440 So isn't this the first early stages of that. Well, 0:07:52.520 --> 0:07:56.560 relative valuations were actually seventy percent higher in two thousand 0:07:56.680 --> 0:08:01.080 and you ended up with almost negative operating margins. Not 0:08:01.120 --> 0:08:03.679 only are we not negative in terms of operating margins 0:08:03.680 --> 0:08:06.920 for technology as a sector, but they're actually increasing overall, 0:08:07.200 --> 0:08:10.240 which is to say that sometimes things are expensive for 0:08:10.320 --> 0:08:14.320 a reason. And when you look at bubble indicators like CAPEX, 0:08:14.600 --> 0:08:16.680 if you add up all the catbex in the technology 0:08:16.720 --> 0:08:19.000 sector and you divide it by the sales basis or 0:08:19.040 --> 0:08:23.080 even free cash flow, you'll see that there's really nothing anomalists, 0:08:23.120 --> 0:08:25.480 meaning that as much as some of the nominal numbers 0:08:25.480 --> 0:08:28.560 are ie popping, some of the free cash flow is 0:08:28.640 --> 0:08:31.840 also eye popping, as is the sales. So again it's 0:08:31.880 --> 0:08:34.599 back to that high growth is matched with high valuations. 0:08:34.920 --> 0:08:37.040 A lot of the time, what you almost see is 0:08:37.160 --> 0:08:41.920 high valuations are being positive predictors of future growth, which 0:08:41.960 --> 0:08:45.840 is usually more durable than I think investors expect. 0:08:46.440 --> 0:08:50.000 Denise for you right now, which primary or secondary data 0:08:50.000 --> 0:08:51.520 sets are you watching most closely? 0:08:51.559 --> 0:08:54.000 For the tech sector? So for the tech. 0:08:53.880 --> 0:08:57.679 Sector, I do think overall this shift between either economically 0:08:57.760 --> 0:09:01.600 sensitive sectors like technology communications versus consumer discretionary and the 0:09:01.640 --> 0:09:06.480 defensive sectors like consumer staples, healthcare utilities, the fact that 0:09:06.640 --> 0:09:10.240 median earnings is finally starting to recover for the first 0:09:10.240 --> 0:09:13.120 time in the better part of three years is actually 0:09:13.160 --> 0:09:17.240 the best setup for those economically sensitive sectors like technology, 0:09:17.320 --> 0:09:20.320 even despite the fact that technology has already worked, it 0:09:20.400 --> 0:09:24.199 usually continues to work as the durability of the earning 0:09:24.320 --> 0:09:27.760 story actually broadens out. On top of that broadening out stories, 0:09:27.840 --> 0:09:30.640 I might say, well, are there any tailwinds that actually 0:09:30.679 --> 0:09:34.840 are positively predictive, you know, even besides the FED cuts 0:09:34.840 --> 0:09:37.520 that we're seeing and about to still see and the 0:09:37.559 --> 0:09:40.400 tax cuts that we are still seeing or that have 0:09:40.520 --> 0:09:43.560 seen and will bear fruit into twenty twenty six. Remember, 0:09:43.800 --> 0:09:47.040 of all the sectors when you look at lower oil prices, 0:09:47.080 --> 0:09:49.520 which were kind of a form of a tax cut. 0:09:49.880 --> 0:09:54.240 Technology is the number one sector that outperforms after that 0:09:54.440 --> 0:09:57.120 style of a tax cut as it filters through in 0:09:57.200 --> 0:09:59.960 terms of cost to margins and potentially lower in flame 0:10:00.600 --> 0:10:03.000 that increases multiples. So I think that there are a 0:10:03.040 --> 0:10:05.920 lot of things that highlight the fact that there are 0:10:05.920 --> 0:10:09.760 more tailwinds for overall earnings growth, which is bullish for 0:10:09.920 --> 0:10:12.559 economically sensitive sectors like technology. 0:10:13.040 --> 0:10:16.160 And how global does that data set and do those 0:10:16.280 --> 0:10:18.320 tailwinds tend to be right now, Denise? 0:10:19.240 --> 0:10:21.920 So I would say that from a global perspective, you 0:10:22.000 --> 0:10:25.720 are certainly seeing earnings growth across the globe, but right 0:10:25.760 --> 0:10:28.120 now you are seeing an interesting what I would say 0:10:28.200 --> 0:10:30.600 is a change in trend from the last let's call 0:10:30.640 --> 0:10:34.080 it four to six months, where international was accelerating and 0:10:34.120 --> 0:10:38.000 the US was decelerating slightly. You are now seeing that shift, 0:10:38.160 --> 0:10:42.880 meaning that US earnings, specifically led by technology, is reaccelerating 0:10:43.000 --> 0:10:46.160 at the same point where Europe, EFA and emerging markets 0:10:46.200 --> 0:10:49.200 are decelerating. That sets up, in my mind, a better 0:10:49.360 --> 0:10:53.000 risk reward for markets, despite the fact that US stocks 0:10:53.040 --> 0:10:55.960 are much more expensive. It's interesting when you look at 0:10:56.040 --> 0:10:58.640 International versus the US, and you say, well, these stocks 0:10:58.640 --> 0:11:02.760 have actually outperformed over the last ten months, you're to date, certainly, 0:11:02.960 --> 0:11:06.160 and they're still cheap. That seems like a compelling proposition, 0:11:06.480 --> 0:11:08.400 But when you look over the last you know, since 0:11:08.440 --> 0:11:11.000 twenty ten, so over the last fifteen years, you'll see 0:11:11.000 --> 0:11:15.040 that that's led to zero percent odds of outperformance for International, 0:11:15.040 --> 0:11:18.959 which again highlights the fact that look valuation sometimes doesn't 0:11:19.000 --> 0:11:21.640 say what you think it means. Sometimes stocks are cheap 0:11:21.640 --> 0:11:24.720 for a reason, and sometimes stocks are expensive for a reason, 0:11:25.000 --> 0:11:29.319 and a lot of times valuation almost correctly predicts whether 0:11:29.440 --> 0:11:31.880 or not earning's growth is going to be durable or not. 0:11:32.360 --> 0:11:34.520 So I do think that you are seeing the US 0:11:34.640 --> 0:11:36.560 be leadership from an earning's perspective. 0:11:36.600 --> 0:11:40.800 Again, briefly, in a historical context, have you ever seen 0:11:40.880 --> 0:11:45.040 such underpinnings of importance from the private market, Because yes, 0:11:45.080 --> 0:11:47.520 we worry about bubbles in the public markets, but a 0:11:47.520 --> 0:11:49.880 lot of them all go back to a few players 0:11:49.880 --> 0:11:51.320 in the private market like open AI. 0:11:52.280 --> 0:11:52.480 Yeah. 0:11:52.520 --> 0:11:54.400 So I think that the places to look from a 0:11:54.480 --> 0:11:57.960 data perspective are always in the public credit markets to 0:11:58.200 --> 0:12:01.400 see what we are discounting interns of the private credit markets. 0:12:01.520 --> 0:12:04.120 I don't have any specific insight, but when you see 0:12:04.440 --> 0:12:07.360 more stress being in high yield credit spreads than there 0:12:07.440 --> 0:12:10.360 is in the VIX or in equity valuation spreads, that's 0:12:10.440 --> 0:12:13.200 usually a negative setup. We're not seeing that so far. 0:12:13.320 --> 0:12:16.680 Credit spreads are well contained and there's still more fear 0:12:16.720 --> 0:12:19.640 in the equity market. So whenever you see headlines like that, 0:12:19.800 --> 0:12:22.120 you always have to step back as an investor and say, 0:12:22.320 --> 0:12:24.920 this could be a situation where yet again the market 0:12:24.920 --> 0:12:25.800 can climb the wall of. 0:12:25.760 --> 0:12:29.480 Worry, denischism of fidelity. It's great to have you back 0:12:29.480 --> 0:12:32.319 on Bloomberg Tech. Thank you very much. Let's get to 0:12:32.360 --> 0:12:35.079 shares of AMD. In some breaking news crossing the Bloomberg, 0:12:35.200 --> 0:12:37.760 the US Department of Energy is said to have formed 0:12:37.800 --> 0:12:41.640 a one billion dollar AI packed or partnership with AMD. 0:12:41.800 --> 0:12:45.080 That's according to a report from Reuters. AMD said to 0:12:45.120 --> 0:12:48.920 be constructing two supercomputers for the department as part of 0:12:48.960 --> 0:12:51.199 that pack. The stock was in negative territory, it swung 0:12:51.200 --> 0:12:53.520 to a gain of about two percent. It's paired that 0:12:53.640 --> 0:12:56.080 now up nine tens to one percent. But we'll try 0:12:56.120 --> 0:12:57.880 and confirm that story and bring you some. 0:12:57.800 --> 0:13:01.520 More care and coming up more AI CEO Chase Logmler 0:13:01.559 --> 0:13:03.840 is joining us to talk about the company's latest fundraise, 0:13:04.200 --> 0:13:05.720 a ten billion dollar valuation. 0:13:06.320 --> 0:13:08.400 We'll talk I Compute This is Blue, their tech. 0:13:17.000 --> 0:13:18.480 AI data centers startup. 0:13:18.520 --> 0:13:21.199 Crusoe's raised a new one point three seven billion dollar 0:13:21.280 --> 0:13:24.440 funding round to put the company's valuation over. 0:13:24.320 --> 0:13:25.600 Ten billion dollars. 0:13:25.640 --> 0:13:29.880 Cruso's partnered in developing the first installation of Open Ai 0:13:29.960 --> 0:13:33.520 and Oracles Stargate project in Abilene, Texas. Let's bring in 0:13:33.559 --> 0:13:36.360 Cruso CEO Chase Lockmolo, who's in town for in videos 0:13:36.440 --> 0:13:40.000 GtC DC, and you're going to be speaking The investors 0:13:40.000 --> 0:13:43.760 in this round are important. It kind of signals maybe 0:13:43.800 --> 0:13:46.360 where some of your next activity will be. But I 0:13:46.360 --> 0:13:48.959 think in the context of the valuation, like I understand 0:13:48.960 --> 0:13:51.280 Cruso to be a critical piece of the build out here, 0:13:51.640 --> 0:13:53.840 it seems almost a bit modest that valuation. 0:13:56.200 --> 0:13:59.120 Yeah, I you know, we feel like it's a great 0:13:59.160 --> 0:14:01.480 valuation for investors to get in and we feel like 0:14:01.520 --> 0:14:03.880 we have a lot of room to grow from from here. 0:14:04.720 --> 0:14:06.960 Just a lot of momentum kind of happening across the space, 0:14:07.000 --> 0:14:10.240 and you know, we're well captured what we're well positioned 0:14:10.240 --> 0:14:13.360 to capture. Meaningful and out of it. So you know, 0:14:13.400 --> 0:14:14.240 we're thrilled to bring on. 0:14:14.720 --> 0:14:17.600 You're very busy in America, right, but what is your 0:14:17.640 --> 0:14:20.040 ambition for the Gulf and the Middle East and what 0:14:20.160 --> 0:14:22.240 projects you might want to build out over there. 0:14:23.720 --> 0:14:25.960 You know, we're looking at a number of different things 0:14:26.000 --> 0:14:30.280 in the in the GCC. You know, obviously having Mubattle 0:14:30.320 --> 0:14:34.440 as a capital partner gives us a very strong partnership. 0:14:34.880 --> 0:14:39.200 In the UEE. We are also sort of you know, 0:14:39.240 --> 0:14:41.040 evaluating some of the things that are going on with 0:14:41.120 --> 0:14:44.160 the ue Stargate and some of the ambitions in Saudi 0:14:44.240 --> 0:14:47.040 But you know, we haven't announced anything quite yet. 0:14:47.280 --> 0:14:49.440 Jase, I want to give context to our viewers who 0:14:49.720 --> 0:14:52.400 know you for what you're doing with Stargate. You're also 0:14:53.160 --> 0:14:56.880 action in Europe to maybe Middle East. But coming down 0:14:56.880 --> 0:14:59.160 to it, you're a cloud provider, data sem to revite 0:14:59.160 --> 0:15:01.720 a manufacturing You've got an edge when it comes to energy. 0:15:01.720 --> 0:15:03.720 That was kind of the winning formula when you first 0:15:03.720 --> 0:15:07.120 ever founded More to service bitcoin mining, and I'm interested 0:15:07.160 --> 0:15:09.080 as to what sets you apart from a core weave 0:15:09.120 --> 0:15:10.520 and other neo clouds out there. 0:15:12.600 --> 0:15:14.600 I think there's a number of things. I mean, we 0:15:14.600 --> 0:15:19.040 we've we've we've taken this vertically integrated energy first approach 0:15:19.360 --> 0:15:21.400 kind of from the start and the founding and the business. 0:15:22.440 --> 0:15:24.960 You know, we you know, I think a lot of 0:15:25.000 --> 0:15:27.920 the value that was unlocked from you know, this first 0:15:27.920 --> 0:15:31.000 Stargate campus in in Abilene was the fact that we 0:15:31.040 --> 0:15:33.920 had access to one point two gigawats of power that 0:15:34.000 --> 0:15:39.000 could energize this very large cluster of Nvidia GPUs. Building 0:15:39.040 --> 0:15:42.560 it very very fast required us to have creative designs 0:15:42.560 --> 0:15:45.840 and flexibility with a lot of modular components that went 0:15:45.880 --> 0:15:49.680 into constructing this very large campus with you know a 0:15:49.720 --> 0:15:53.240 lot of those modular components being manufactured off site. And 0:15:53.920 --> 0:15:56.640 you know, I think we've built a very high performance 0:15:57.280 --> 0:16:00.240 software stack to enable these AI factories to work work 0:16:00.600 --> 0:16:04.280 very effectively in at scale, integrating a lot of great 0:16:04.280 --> 0:16:07.840 managed services like our managed file systems and managed Kubernetes 0:16:07.880 --> 0:16:12.600 that enable innovators to do their life's work on incredibly 0:16:12.680 --> 0:16:14.760 reliable and high performance infrastructure. 0:16:15.320 --> 0:16:17.800 Those innovators, we know open aiye is one of them. 0:16:18.240 --> 0:16:21.400 But you're busy building elsewhere and wyoming, not just in Texas. 0:16:21.720 --> 0:16:22.800 Who are you building for there? 0:16:22.840 --> 0:16:24.280 Can you tell us a little bit about where the 0:16:24.280 --> 0:16:25.440 appetite is coming from. 0:16:26.760 --> 0:16:26.880 Uh. 0:16:27.960 --> 0:16:30.960 We can't speak about who we're working with directly in 0:16:31.160 --> 0:16:33.120 uh In Wyoming quite yet, but we have a we 0:16:33.160 --> 0:16:35.440 have a we have a great partner there, and we'll 0:16:36.360 --> 0:16:38.440 be thrilled to come back and tell you all about 0:16:38.440 --> 0:16:41.280 it when we're ready to announce it publicly. But it 0:16:41.400 --> 0:16:46.160 is a exciting campus just from both energy perspective and 0:16:46.200 --> 0:16:49.280 the scale it presents. What we've announced initially is one 0:16:49.280 --> 0:16:52.520 point eight gigawatts, but there is a plan to take 0:16:52.560 --> 0:16:55.280 it to ten gigawatts, so it will be a very 0:16:55.360 --> 0:17:00.280 very large campus for you know, AI computing infrastructure, and 0:17:00.400 --> 0:17:02.640 we're thrilled to have a wonderful partner there. 0:17:03.360 --> 0:17:07.480 Last week, the Trump administration made some announcements about how 0:17:07.480 --> 0:17:11.399 they want to speed up the electrical hookups for data centers. 0:17:11.480 --> 0:17:13.680 That's like at the core of the president's strategy cut 0:17:13.680 --> 0:17:16.280 red tape. Do you regulate just your reaction to what 0:17:16.320 --> 0:17:20.920 the administration is doing about speed matching supply of power 0:17:21.119 --> 0:17:22.120 to infrastructure. 0:17:23.280 --> 0:17:27.640 Yeah, you know, we're you know, I think we're we're 0:17:27.680 --> 0:17:30.280 excited to have the support of the administration for some 0:17:30.320 --> 0:17:34.600 of the critical blockers to to moving faster. You know, 0:17:34.640 --> 0:17:36.439 one of our core values as a business is to 0:17:36.480 --> 0:17:39.400 move fast and make things so we speed is really 0:17:39.440 --> 0:17:41.480 at the essence of and at the core of a 0:17:41.520 --> 0:17:44.240 lot of what we do. One of the more frustrating 0:17:44.760 --> 0:17:47.000 things to be slowed down by is you know, waiting 0:17:47.080 --> 0:17:50.399 for a permit to be approved, waiting for you know, 0:17:50.480 --> 0:17:52.879 some sort of application that's that's in the hands of 0:17:53.080 --> 0:17:58.639 a government agency. And you know, seeing the urgency from 0:17:58.760 --> 0:18:02.000 this administration that saying like, hey, we need to support 0:18:02.040 --> 0:18:04.960 the private sector to go out and build this infrastructure 0:18:05.000 --> 0:18:09.240 so that America can lead an artificial intelligence is just 0:18:09.280 --> 0:18:13.320 a great, you know, great indicator of what's to come. 0:18:13.359 --> 0:18:16.080 And you know, we're really excited to have that public 0:18:16.119 --> 0:18:19.320 private partnership. We think it's a very healthy dynamic that's 0:18:19.359 --> 0:18:22.440 at play right now. And you know, we very big 0:18:22.480 --> 0:18:25.000 supporters of a secretary right and you know what he's 0:18:25.000 --> 0:18:26.720 doing to you know, help make this happen faster. 0:18:27.280 --> 0:18:29.720 The key part of the infrastructure that you're building is 0:18:30.400 --> 0:18:32.680 the chips that go in the data centers you're building 0:18:33.280 --> 0:18:35.760 strong within video. We've just had the lead of our 0:18:35.800 --> 0:18:39.000 show that Qualcom's trying to get in on AI accelerate 0:18:39.080 --> 0:18:40.400 a marketplace. 0:18:40.840 --> 0:18:43.080 What do you think about an offering from a Qualcom. 0:18:43.080 --> 0:18:45.320 What's your read or other competitors coming forward? 0:18:47.200 --> 0:18:50.760 Well, I mean I think everybody's sort of taking a 0:18:50.760 --> 0:18:54.760 slightly different angle on this, and you know, big supporters 0:18:54.800 --> 0:18:58.600 of there being more competition in the marketplace. I think 0:18:58.640 --> 0:19:00.400 that's very healthy when you have a market as big 0:19:00.440 --> 0:19:04.040 as AI and AI computing infrastructure. In the case of Qualcom, 0:19:04.080 --> 0:19:07.440 I think their flavor that you know, I think fits 0:19:07.480 --> 0:19:10.600 them a little bit better is more you know, AI 0:19:10.800 --> 0:19:13.800 inference closer to the edge, you know, closer to you know, 0:19:13.880 --> 0:19:17.760 these these on device or near the end points where 0:19:17.880 --> 0:19:22.280 users will be interacting with infrastructure. So you know, I I, uh, 0:19:22.480 --> 0:19:23.960 you know, I think that fits very well with kind 0:19:23.960 --> 0:19:27.320 of the qual Coon dynamic and you know, their strengths 0:19:27.320 --> 0:19:30.760 and what they can bring to the market as AI 0:19:31.760 --> 0:19:35.280 gets embedded in all aspects of you know, the economy 0:19:35.320 --> 0:19:37.320 and everything that you know, people are doing on a 0:19:37.359 --> 0:19:39.560 day to day basis. We're a big believer that we 0:19:39.640 --> 0:19:45.360 will need infrastructure everywhere to help support intelligence everywhere. 0:19:46.080 --> 0:19:48.240 Chase Long, so great to have some time with you 0:19:48.240 --> 0:19:50.879 as you're in town and DC for GtC and videos 0:19:50.920 --> 0:19:53.960 big event. Co found recy of CRUSA, thank you for 0:19:54.040 --> 0:19:57.600 joining and coming up Apple's future iPad pros. 0:19:57.600 --> 0:19:59.720 Well, they're going to borrow some key features from thenly 0:19:59.720 --> 0:20:02.640 to STI, we'll describe next. This is pretty bad tech. 0:20:10.480 --> 0:20:10.800 Apple. 0:20:10.920 --> 0:20:13.120 When I may be pouring over one of the iPhone 0:20:13.119 --> 0:20:16.840 pro's latest innovations to the iPad pro, the company is 0:20:16.880 --> 0:20:19.560 said to be eyeing putting a vapor chamber into future 0:20:19.600 --> 0:20:21.919 iterations at the tablets is the subject of this week's 0:20:21.960 --> 0:20:24.880 power on newsletter from Luemag's managing editor for Consumer tech, 0:20:25.200 --> 0:20:28.639 Mark German. And talk us through Mark why this is 0:20:28.680 --> 0:20:30.719 such a big thing for the iPad and what innovation 0:20:30.800 --> 0:20:31.760 is really at stake here. 0:20:32.920 --> 0:20:34.760