Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Eva Low in San Francisco.
Speaker 2: This is Bloomberg Tech coming up arm ones of some
Speaker 2: sluggishness in the smartphone industry, but shows AI data center
Speaker 2: growth is there to offset the slump. We'll discuss the
Speaker 2: CEO as Anthropics signs an agreement with Elon Musk's SpaceX
Speaker 2: to access computing resources from its competitor, and we speak
Speaker 2: with the CEO of Hawkeye three sixty. That's as a
Speaker 2: satellite surveillance firm raises four hundred and sixteen million dollars
Speaker 2: in its IPO.
Speaker 3: But first we.
Speaker 2: Check in on these markets that on the tech side
Speaker 2: of the equation managed to sustain the rally.
Speaker 3: We're at a new record high. We're up for a
Speaker 3: third straight day.
Speaker 2: Book Importantly, we're up on the week, and that's a
Speaker 2: sixth straight week of gains.
Speaker 3: Haven't seen that in a couple of weeks, in a
Speaker 3: couple of years in fact.
Speaker 2: And then as that one hundred, we're still seeing that
Speaker 2: optimism around AI. We of course have the clouds of
Speaker 2: geopolitics and in many ways, we are somewhat concerned about
Speaker 2: whether or not a pe steel will be moving forward
Speaker 2: with Iran and the United States. So otherwise traders taking
Speaker 2: perhaps a little bit more cautious tone on other benchmarks.
Speaker 2: But tech drives high, and let's look at how the
Speaker 2: earnings continue to flow through. Look, I'm focusing in on ARM.
Speaker 2: It's having a rough day. We're off by some eight percent.
Speaker 2: But build into the context that this is a stock
Speaker 2: that has rallied hard so far this year on optimism
Speaker 2: of AGICPU, on optimism of applications in the AI data center.
Speaker 2: But also there is still, of course the royalties the
Speaker 2: licenses that go towards smartphones, and I want to talk
Speaker 2: about just that at the moment because we're joined now
Speaker 2: by the CEO of ARM. More broadly, Renee has I'm
Speaker 2: pleased to say you're joining us from San Diego and
Speaker 2: Renee the market perhaps digesting recent run ups in the stock,
Speaker 2: but also digesting what you warned that you're seeing in
Speaker 2: the smartphone arena, and that's because of memory prices. Just
Speaker 2: dictate a little bit of what you've seen in the
Speaker 2: space bag.
Speaker 4: Good morning, Caroline, and I'm in San Jose, not San Diego.
Speaker 4: But that's okay. You know, in terms of the overall
Speaker 4: market and the quarter we are, we could not be happier.
Speaker 4: In terms of the results that we had this last quarter.
Speaker 4: It was one point five billion dollars in that neighborhood
Speaker 4: of revenue, which not long ago used to be an
Speaker 4: annual revenue number for the company. Our data center business
Speaker 4: doubled year on year, and we're seeing huge, huge demand
Speaker 4: for our new product, the arm Agi CPU. So all
Speaker 4: of that is really added up to a terrific quarter.
Speaker 5: To your question.
Speaker 4: As far as smartphones, we have definitely seen a slow
Speaker 4: down there as well. However, I would say compared to
Speaker 4: some of the other folks in the market, we're not
Speaker 4: really as exposed there, probably for two big reasons. Number one,
Speaker 4: a lot of our volume comes from the premium segment,
Speaker 4: where the royalty rates are quite rich using Version nine,
Speaker 4: and where the slowdown has taken place we've seen as
Speaker 4: mostly in the lower end of the market, where there's
Speaker 4: not a large worldy contribution for US.
Speaker 2: Okay, so not a large royalty perspective coming from the smartphones.
Speaker 2: But where the dictation of growth seems to be coming
Speaker 2: from is CPU not only CPU architecture that is used
Speaker 2: broadly by you.
Speaker 3: Name check the Googles, the Amazons.
Speaker 2: The way in which we're seeing CPU further grow in
Speaker 2: your customers, but also you're building the chip yourself.
Speaker 3: How do you see that market expanding?
Speaker 4: Yeah, we are, and you know, for thirty five years
Speaker 4: the way we delivered product to our customers was through
Speaker 4: with through IP, the blueprint that they used to essentially
Speaker 4: build chips based upon the ARM technology. As you know
Speaker 4: very well, we've seen huge growth in our data center
Speaker 4: business over the last number of years. Amazon with Graviton
Speaker 4: had just announced version five Graviton five, Google Axion, Microsoft
Speaker 4: callbalt and the course and video with Vera. But what
Speaker 4: we've seen, Caroline, you know, in the last number of
Speaker 4: months has been this explosion of demand for agentic workloads.
Speaker 4: And agentic workloads essentially mean that agents are now putting
Speaker 4: queries on the data center that need to have answers
Speaker 4: back very quickly. All of that work regarding the agentic
Speaker 4: management orchestration, scheduling, etc.
Speaker 5: That is the kind of work only a CPU can do.
Speaker 4: Only a CPU this this is not something accelerated GPU
Speaker 4: can manage. So what's happening Demand for CPUs is exploding,
Speaker 4: and the timing of the ARMAGICPU launch, I think we've
Speaker 4: just reinforced huge demand for that kind of product.
Speaker 5: So we are now seeing demand for.
Speaker 4: Not only the IP that people are used to build
Speaker 4: chifts based on arm of the data center, but the RMAGICPU.
Speaker 4: And I think I mentioned on the call we had
Speaker 4: visibility to about a billion dollars of orders that we
Speaker 4: had in our forecast. That number over the last five
Speaker 4: weeks has doubled to two billion dollars. So demand is
Speaker 4: certainly not a problem.
Speaker 2: Extraordinary since you first announced the move towards building it yourself,
Speaker 2: towards what we see as this focus on this particular CPU.
Speaker 3: But where from. We know that Meta has.
Speaker 2: Been a key puntner on this, but where else do
Speaker 2: you getting demand from?
Speaker 3: Rene?
Speaker 4: Yeah, So the partners we talked about at launch was Meta,
Speaker 4: of course, open Ai a large partner, Cerebras, sk Telecom, Rebellions, SAP.
Speaker 5: So it's pretty broad F five networks.
Speaker 4: We're seeing it across network infrastructure, but largely around simply
Speaker 4: putting more CPUs inside the data center. The other thing
Speaker 4: that we did, Caroline with this product is when you're
Speaker 4: building something of this nature. It's not just a chip,
Speaker 4: but it's a system, and we work closely with partners
Speaker 4: like super Micro and Lenovo and ASRock who build the
Speaker 4: systems and racks that customers can order.
Speaker 5: And these thirty six kilowatt air cooled racks.
Speaker 4: One of the beauties of the rm AGICPU is that
Speaker 4: you can get twice to performance in the same power
Speaker 4: versus the comparable X eighty six rack. So and of
Speaker 4: course we're known for power efficiency, so that's not a surprise,
Speaker 4: but it is one of the other things that's catalyzing demand.
Speaker 3: We've got to talk a little bit about supply.
Speaker 2: You'll talk about how you're built, making sure that the
Speaker 2: servers are there.
Speaker 3: The way in which we.
Speaker 2: Can put them in the data centers is they're the
Speaker 2: partners you're working with. But time and time and game,
Speaker 2: we're hearing from everyone that the blocker really isn't demand,
Speaker 2: that's supply.
Speaker 3: Have you had any issues with that.
Speaker 4: Yeah, So what we said on the range call was
Speaker 4: the billion dollars of orders that we talked about, we
Speaker 4: have the supply for that. Now we have as additional
Speaker 4: demand for another billion dollars of demand of product, and
Speaker 4: that is bringing it to a total of two billion dollars,
Speaker 4: and we're working with everybody in the supply chain, whether
Speaker 4: it's TSMC, the memory suppliers as Khinex, Micron and Samsung.
Speaker 4: But the beauty of all this, Caroline is this is
Speaker 4: not perishable demand. It's not something that if a window closes,
Speaker 4: there's not going to be a need for compute. So
Speaker 4: we are thinking about this in the long game. We've
Speaker 4: talked about a fifteen billion dollar target by FYE thirty one,
Speaker 4: so that's Calendar thirty for your viewers, And basically what
Speaker 4: that means is we are very comf evident that we
Speaker 4: are on track to that fifteen billion dollar number in
Speaker 4: a very very short time, which is quite transformational for
Speaker 4: the company relative to the size of opportunity and the
Speaker 4: amount of revenue that will.
Speaker 2: Deliver, size of opportunities, size of role for you. RENEE
Speaker 2: has been expanding because you're still CEO of ARM, but
Speaker 2: you're also taking on leading the soft Bank International part
Speaker 2: of the business, and this is all about working with
Speaker 2: other parts of SoftBank's ecosystem in the chip arena. I
Speaker 2: just think of some of the acquisitions mPire has been
Speaker 2: put into the portfolio.
Speaker 3: You've got graph Core, how do you see.
Speaker 2: Your role changing, How do you see the impact of
Speaker 2: SoftBank more broadly in the chip space?
Speaker 5: Yeah, thank you for the question.
Speaker 4: Now, there's a lot of synergy to the kind of
Speaker 4: work that soft Bank is doing when you think about
Speaker 4: some of the announcements they've made recently around in Portsmouth, Ohio,
Speaker 4: for example, a huge ten gigawatt data center facility working
Speaker 4: with the US to Partnment Energy as well as soft
Speaker 4: Bank Energy. And then we've got companies in the soft
Speaker 4: Bank portfolio like Ampeer and graph Core. A lot of
Speaker 4: synergy between the kind of work they're doing that could
Speaker 4: fit into ARMS. So Masa has asked me to help
Speaker 4: with that orchestration and that coordination across the companies. So
Speaker 4: in one extent, yeah, it may look like, oh my gosh,
Speaker 4: he's got two jobs, but on the flip side, there
Speaker 4: is a lot of coordination that we get benefit from
Speaker 4: both sides. So I'm happy to help in any way
Speaker 4: that I can, and from.
Speaker 2: San Jose and from wherever else you are in the world.
Speaker 2: As we know, harm as UK based as well. We
Speaker 2: so appreciate you joining today. I'm CEO Renee has on
Speaker 2: the back of ARMS numbers now let's talk about where
Speaker 2: all of this AI data center demand comes from, and
Speaker 2: it keeps picking up. Anthropic has struck a deal with
Speaker 2: Email Musks SpaceX, giving the claud maker access to computing
Speaker 2: resources at a massive SpaceX data center known as Colossus
Speaker 2: one for more. Bloomberg Ai editor Seth Figerman joins us, Now,
Speaker 2: they're competitors, right, because it's not SpaceX, it's XAI that
Speaker 2: has now passed of.
Speaker 6: Space It's a bit of an odd bed below situation here.
Speaker 6: Elon Musk has been critical of Anthropic before. Obviously they're
Speaker 6: both competing to build more powerful AI models, but they
Speaker 6: do both tend to benefit here. Anthropic has said repeatedly
Speaker 6: that their demand as surge in the last few months,
Speaker 6: and we've kind of felt that covering this company, and
Speaker 6: they need computing Benigan now and Elon Musk's data center
Speaker 6: is operational. It's not a theoretical multi gigawa facility three
Speaker 6: years down the road. But Elon Musk's venture meanwhile, they
Speaker 6: need revenue. Their you know face actually is planning to
Speaker 6: go public imminently, and xais Groc is not really getting
Speaker 6: that much business or as much business as they might like,
Speaker 6: so here's a great way to supplement their revenue.
Speaker 2: Because actually there's an awful lot of capacity that's not
Speaker 2: being used at close this one, right.
Speaker 6: That's right, So there's hundreds of megawatts there. I think
Speaker 6: three hundred megawats is what Anthropic has agreed to lease here.
Speaker 6: And again, this may not be a five gigawatt deal
Speaker 6: on the scale that we sometimes report on, but it's
Speaker 6: available now and I think that's the key differentiator.
Speaker 2: There's also talk of I'm sure orbitals data centers, I
Speaker 2: mean still to see you of Aanthropic Dario like speaking
Speaker 2: into that eventual moonshot that's also on well he.
Speaker 6: Twenty twenty six. But yes, Santhropic is saying they'll work
Speaker 6: with SpaceX or SPACEXAI whatever they're calling themselves now on
Speaker 6: multi gigawads of orbital data center capacity. This does not
Speaker 6: exist today, but Elon has certainly suck it's a priority
Speaker 6: for his emerged company.
Speaker 2: What does exist today is rivalry between en O Musk
Speaker 2: and Open AI men. He would say, of what we're
Speaker 2: seeing playing out in court right now, what did heel
Speaker 2: must say about? Look, his desire to allow Claude and
Speaker 2: Anthropic to continue to grow using his own architecture.
Speaker 6: There's certainly that of the egamy of my egamy, you know.
Speaker 6: But he said elon sick. He went and visited senior
Speaker 6: staff Aganthropic last week and decided they're not evil and that.
Speaker 3: Some of his stuff like people have been leaving the trading.
Speaker 6: Yes, but he has previously alleged that aanthropic is evil
Speaker 6: or that they're misanthropic or any other term here. But
Speaker 6: he's decided that Cloud can be a force for good.
Speaker 6: But he's also indicating if that changes, he could just
Speaker 6: cut this deal and change things.
Speaker 7: Aroud.
Speaker 2: Well, it's a deal that's cut so far and seemingly
Speaker 2: a win win among frenemies. Figurement is always with all
Speaker 2: the inside track when it comes to AI and compute me.
Speaker 2: While coming up, we're going to the world of Quantum.
Speaker 2: I encu Ceo Nicolo Divasi is joining us. They post
Speaker 2: their first quarter revenue. It a bit, it was a
Speaker 2: raised the shares down.
Speaker 3: This is Bluemberg Tech.
Speaker 2: As the clock ticks down on its acquisition by Paramount
Speaker 2: One about the discovery reported and deeper than expected loss
Speaker 2: in the first quarter. Shares user received just stuff about
Speaker 2: a tenth five percent, putting into the details of Bluebergs
Speaker 2: Hannah Miller the loss it is because they owe Paramount, right,
Speaker 2: this is all tied up with the amount that was
Speaker 2: given to Netflix.
Speaker 8: Yes, it's definitely an anomaly. So basically, even though Paramount
Speaker 8: has already paid that two point eight billion dollar termination
Speaker 8: feed in Netflix, there are circumstances where Warner Brothers would
Speaker 8: have to refund them. They would be unusual circumstances, but
Speaker 8: Warner Brothers still has to report that and still have
Speaker 8: it on its books.
Speaker 2: Otherwise, though, if you strip that out, going to the
Speaker 2: actual fundamental fundamentals of the business, how are they doing
Speaker 2: in terms of content creation?
Speaker 3: How are they doing in terms of streaming.
Speaker 8: Yeah, so we've seen success on the streaming side, though
Speaker 8: they are not reporting their specific subscriber counts. They're following
Speaker 8: the footsteps of Netflix and Disney, but they are on
Speaker 8: track to reach their goal of having more than one
Speaker 8: hundred and fifty million subscribers by the end of this year.
Speaker 8: We also saw some strength and streaming. They had some
Speaker 8: hit shows, Season two of The Pit, A Night of
Speaker 8: the Seven Kingdoms, and yeah, their studios revenue looked good
Speaker 8: as a result.
Speaker 2: What about the UK and international growth? They launched their
Speaker 2: right in late Q one.
Speaker 8: Yeah, this global expansion of their streaming platform plays a
Speaker 8: lot into their goal of having you know, tons of
Speaker 8: streamers around, streaming subscribers around the world. So you know,
Speaker 8: this is all part of their strategy. They are a
Speaker 8: very international company, so it makes sense for them to
Speaker 8: just keep expanding abroad.
Speaker 2: I meanwhile, we just keep all eyes on how the
Speaker 2: deal progresses. Hannah Miller, We so appreciate you.
Speaker 3: Thank you.
Speaker 2: On the back of Warner Brothers discoveries earnings, there's more
Speaker 2: earnings this time.
Speaker 3: We're focusing in on Quantum Ion q Look.
Speaker 2: Shares are down some five point seventy five percent, but
Speaker 2: the quantum computing company posted first, got a revenue that
Speaker 2: beat expectations. They had higher than expected second quarter outlook.
Speaker 2: In fact, they raised the Fourier guidance. Nicolo Demasis with
Speaker 2: us I'm QCEO. So maybe profit taking, maybe just appetite
Speaker 2: from investors is so excited when it comes to quantum.
Speaker 3: Do you think that's what's putting some pressure on the
Speaker 3: stock today.
Speaker 9: You know, Look, my job is to run the business
Speaker 9: as best as one can. We're up probably seventy percent
Speaker 9: from this time last year, and at the end of
Speaker 9: the day, I think that we have tremendously great access
Speaker 9: to capital, we're executing well, and we're demonstrating that Quantum's
Speaker 9: got this fantastic strategic and financial inflection point.
Speaker 5: Right.
Speaker 9: So we just uplifted guidance for the full year to
Speaker 9: be more than double last years revenue. At the high end,
Speaker 9: we've tripled revenue last year. We're the first seven, eight
Speaker 9: and the nine figure revenue quantum company in history. I
Speaker 9: want to be the first to ten figures of revenue.
Speaker 9: That's the goal right now.
Speaker 2: Well, the goal longer term is for fault tolerant quantum computing.
Speaker 2: It's to get to eighty thousand logical cubits.
Speaker 3: The milestone you've got two five six. Why is that
Speaker 3: a milestone? Why is that an inflection point?
Speaker 9: Well, yeah, we launched actually the world's first fully sort
Speaker 9: of shovel ready blueprint for fuld tolerant computing last week
Speaker 9: as well. We call it the Walking Cat architecture, and
Speaker 9: the two v six ship is actually our movement to
Speaker 9: this architecture that we published and have obviously protected and
Speaker 9: patented before we did so. It's a truly groundbreaking design
Speaker 9: that I think will be in textbooks and history books,
Speaker 9: I'm guessing in the coming decades, because it's modular and scalable,
Speaker 9: and it takes advantage of what we call all to
Speaker 9: all communication through this concept of sort of bell quantum
Speaker 9: teleportation if you will, within.
Speaker 5: The chip, which is super cool.
Speaker 9: But if you're a quantum mechanics you know geek, you'll
Speaker 9: you'll know what we're referring to. And so our systems
Speaker 9: allow us to build more and more powerful individual computers.
Speaker 9: But also the modularity means that we can build data
Speaker 9: center size arrays as well. And so what I like
Speaker 9: to remind people is where very much in the process
Speaker 9: of building the most powerful ecosystem the quantum space. It's
Speaker 9: not just computing, it's networking, sensing, and security. All of
Speaker 9: these business lines were growing, and we talked about on
Speaker 9: the range call. You know, just yesterday we beat Q
Speaker 9: on you know, revenue guidance by about thirty percent. We
Speaker 9: talked about the fact that the whole portfolio is growing.
Speaker 9: We're growing internationally. It's about a third of our revenue,
Speaker 9: but a third of our customers are taking more than
Speaker 9: one product from us. So there's a lot of quantum
Speaker 9: networks quantum computers that we're seeing demand for and hybrid
Speaker 9: data centers as well, And that is.
Speaker 2: Why you want and you say you want to be
Speaker 2: the in video of quantum is effluly in the way. Look,
Speaker 2: we're not going to compare like for like. Revenues are
Speaker 2: still way off what and Video is currently bringing. But
Speaker 2: you know you've got to start somewhere. And in that respect,
Speaker 2: is it just you want to own the whole pie.
Speaker 2: The fact that you are going to be in charge
Speaker 2: of a lot of part of the ecosystem is where
Speaker 2: the Nvidia sort of comparison comes.
Speaker 9: Look, I'm a huge fan of Jensen, you know, hero
Speaker 9: for anyone I think, to be honest, you know, tenacity
Speaker 9: and building a business for the lasting a couple of decades.
Speaker 9: We're going to do exactly the same thing. We've been
Speaker 9: at it thirty years. We've built the world's first quantum
Speaker 9: logic EATE in ninety five. Now we've built you know,
Speaker 9: we've delivered the first blueprint for full fall tolerant machines
Speaker 9: and we're demonstrating all aspects of that architecture. So it's
Speaker 9: just engineering from here on out as we turn the
Speaker 9: handle and scale. But yes, we want to make sure
Speaker 9: that people learn on our architecture, stay in architecture, change
Speaker 9: the world on our architecture and all aspects of applied science,
Speaker 9: material science, pharma, defense, intelligence, logistics, chemistry and so on.
Speaker 9: But we're going to be, you know, an open ecosystem,
Speaker 9: so we work with Microsoft, Google, Amazon, et cetera. We
Speaker 9: will plug into everyone's software stack, but end of the day,
Speaker 9: we want it all to be sort of reciding on
Speaker 9: our on our hardware, and so we we want to
Speaker 9: keep control of the critical pieces of the software and
Speaker 9: hardware stack and the al rhythm stack as we scale.
Speaker 3: You're not the only one in the race.
Speaker 2: And when I think about fidgets, for example, what others
Speaker 2: are doing elsewhere? Who are you seeing in your peripheral vision?
Speaker 2: Where are you seeing competition coming for what you're building?
Speaker 9: Well, I think we're quite unique in the sense that
Speaker 9: we've not always not only always had a technical lead,
Speaker 9: but we now have a manufacturability and a robustness that's
Speaker 9: really grabbing people's attention.
Speaker 1: Right.
Speaker 9: So I talked about technology readiness levels on the earnings
Speaker 9: call last night and how our quantum sensors are on
Speaker 9: submarines up to you know, spacecraft, and we're thinking about
Speaker 9: the full quantum platform as something we want to deliver
Speaker 9: to the war fighter in all war fighting domains. But
Speaker 9: also that indicates the level of reliability and robustness that
Speaker 9: our enterprise customers can benefit from. Right so, sensors have
Speaker 9: very high what's called tenology readiness levels by the military.
Speaker 9: Our quantum networks are also deployed quite high levels of TRL.
Speaker 9: Quantum computers are very much you know, growing catching up
Speaker 9: of all of the very quickly, and we're having to
Speaker 9: trade off to some extent, you know, how much do
Speaker 9: you harden the current generation or work on the next generation.
Speaker 9: But we're doing all that in peril and we continue
Speaker 9: to invest in manufacturing capacity because we've talked the last
Speaker 9: two earnings calls about the fact that demand really has
Speaker 9: been coming towards us and they've been coming to where
Speaker 9: our product portfolio is, and so we're growing our manufacturing
Speaker 9: footprint across the whole product family to meet that demand.
Speaker 2: You've articulated a lot of the recent commercial wins in
Speaker 2: the earnings, so appreciate you coming on and talking about
Speaker 2: the longer term trajectory. It's always interesting to catch up
Speaker 2: with Niccolod de Messi. He's an iron Q on the
Speaker 2: back of his earnings. Let's take a look at today's
Speaker 2: big number, eighty and eleven. That's the number of planned
Speaker 2: cuts in the tech industry so far this year, up
Speaker 2: thirty three percent from the same period in twenty twenty five,
Speaker 2: in the total for twenty twenty six to three year high,
Speaker 2: even as overall private sector layof announcements receded. This is
Speaker 2: all coming from data from Challenger. Blumbo's US economy reporter
Speaker 2: Julia Benzeries joins us now on the trend.
Speaker 3: That we're seeing.
Speaker 2: Look, whether it's anecdotal, whether you think of the announcement's
Speaker 2: coming from block just over this week, we've heard from Coinbase,
Speaker 2: from PayPal, but we then get the more macro piece
Speaker 2: of data that yes, tech is the industry that has
Speaker 2: the highest number of layoffs right now.
Speaker 3: That's absolutely it.
Speaker 10: You've been seeing a lot of headlines from Microsoft to
Speaker 10: Meta to snap and that's what Challenger looks at. Challenger
Speaker 10: tallies up these job cut announcements and the tech industry
Speaker 10: is leading layoff announcements. And the reason is for the
Speaker 10: second month in a row, artificial intelligence and you brought
Speaker 10: up a great point. It's not necessarily at the moment
Speaker 10: that artificial intelligence is replacing workers, but the spend that
Speaker 10: is necessary, that is what is taking over.
Speaker 3: And that's why job cuts have.
Speaker 10: Been occurring, is because they these companies need that extra spend.
Speaker 2: It's so interesting because I think everyone's got this anxiety
Speaker 2: the AI is going to replace me, but actually maybe
Speaker 2: it's just your salary that needs to be taken out
Speaker 2: to be redeployed into AI investment judia. When I take
Speaker 2: a step back, though, the hand ringing is getting more ferocious.
Speaker 2: But when you look at Challenger data since twenty twenty three,
Speaker 2: is it that they've been tracking how many jobs are
Speaker 2: at the expense of AI, it's still only about three
Speaker 2: and a half percent of all layoffs that have been
Speaker 2: announced since that time.
Speaker 3: Right, it's still only very small. It's only very small.
Speaker 10: And if you look at the broader macroeconomic picture today,
Speaker 10: we got initial jobless claims and they're still hovering near
Speaker 10: decade lows. Even though they rebounded a little bit, continuing
Speaker 10: claims are near two year lows. So that's showing that
Speaker 10: even though we are having a lot of these announcements,
Speaker 10: these job cuts are either not translating significantly to the
Speaker 10: broader data, or also that's just not necessarily moving the
Speaker 10: needle in the broader picture.
Speaker 2: Yeah, I guess the question is whether this is a
Speaker 2: leading indicator, whether it's just the start of something in
Speaker 2: terms of a wave. Julia, just briefly, what are the
Speaker 2: data do you look at to make sure that this
Speaker 2: is real, whether this is AI washing.
Speaker 3: I think that's the difficult question.
Speaker 10: I mean, the numbers that we're looking at, even if
Speaker 10: it is AI washing, what is significant is that there
Speaker 10: are these job cuts, and so we're trying to assess
Speaker 10: is the economy still in a low higher, low fire environment.
Speaker 10: Because even if it is AI washing, if these jobs
Speaker 10: are being removed from the economy, that is significant something
Speaker 10: that you have to keep an eye on.
Speaker 2: It is and it's something that workers to keep an
Speaker 2: eye and at the end of the day, it might
Speaker 2: be statistics, but it's actually really people's livelihoods that we're
Speaker 2: talking about here Bloomers. Julia Panzera's it's great to have
Speaker 2: you on. Welcome back to Bloomberg Tech. We check in
Speaker 2: on these markets that are at a new record high.
Speaker 2: We're on pace for a sixth straight week of gains
Speaker 2: and then astat one hundred, we're up five ten percent. Again,
Speaker 2: did the clouds on the macroeconomy side of things, the
Speaker 2: worry anxiety about US and Iran conflict. We're still managing
Speaker 2: to see the AI trade still power a lot of
Speaker 2: these stocks.
Speaker 3: We've also staw.
Speaker 2: Got earnings coming thick and fast, and for some we
Speaker 2: are seeing absolute rocket chips in terms of moves and
Speaker 2: focusing in on data dog up let's call it thirty percent.
Speaker 3: They raised the guidance.
Speaker 2: They're showing strong growth and in many ways this is
Speaker 2: as see the biggest moves in some at one point
Speaker 2: since twenty nineteen, and this is a.
Speaker 3: Software really manages to sort of alleviate some of the
Speaker 3: ants here. They had a strong report.
Speaker 2: The guidance applying a healthy outlook for the second half
Speaker 2: is however, qucayat call it in TDCAR and saying revenue
Speaker 2: growth is nicely above consensus for the outlook, much better
Speaker 2: than expected.
Speaker 3: Less so for DoorDash, which had.
Speaker 2: Been trading higher in earlier when certainly after it reported
Speaker 2: earnings yesterday after the bell, the gains that we saw
Speaker 2: in gross order value had impressed in many ways. They
Speaker 2: the firm giving a second quarter marketplace gross order value
Speaker 2: forecast that really beat average analyst expectations, but maybe expectations
Speaker 2: got ahead themselves, as Uber's numbers have been strong as well.
Speaker 2: We're just downs extensive percent, but earnestly one of the
Speaker 2: key drivers in the market at the moment. And Sylvia
Speaker 2: Jamonski's with their CIO at Defiance ETS and talking to
Speaker 2: discuss invest appetite, whether it be for software in some
Speaker 2: respects for financing, some love for data dog, but you're
Speaker 2: also seeing love for what's happening in terms of the
Speaker 2: AI trade more broadly, infrastructure quantum. We just had IMQ
Speaker 2: on what are the driving forces you're seeing in the ETFs.
Speaker 11: Well, I think the driving forces are very much that
Speaker 11: these companies are doing quite well. We just talked about
Speaker 11: IMQF camera for a minute. There are seven hundred and
Speaker 11: fifty five percent revenue growth. You know, this is a
Speaker 11: company that's doing full s tax services. They're involved in defense,
Speaker 11: they're involved in quantum infrastructure deals with Azure, deals with AWS.
Speaker 11: And I think that a lot of these disruptive and
Speaker 11: thematic themes are playing out because these companies are starting
Speaker 11: to generate revenues they're starting to go from being science
Speaker 11: projects to actually being commercial and that's really what the
Speaker 11: retail investor needed to see. And I think why you're
Speaker 11: seeing some momentum.
Speaker 3: In these spaces. It's an interesting that a science project.
Speaker 2: I mean, some days we can be very enthusiastic about
Speaker 2: the project of AI and large language models more broadly,
Speaker 2: we think that they're going to be driving absolute productivity games.
Speaker 2: And then there's other days where we have anxiety about
Speaker 2: just supply restrains, whether able to build out compute, whether
Speaker 2: able to afford compute. How much are you seeing on
Speaker 2: a day to day the shift and sentiment.
Speaker 11: Well, I think what's great is actually if you look
Speaker 11: at some of these themes AI and even quantum right like,
Speaker 11: just look over the last two or three years, it's
Speaker 11: good news comes out, earnings are positive, The stocks rally
Speaker 11: thirty forty percent. You know, someone says, oh, we're ten
Speaker 11: years away from this coming to fruition, and the socks
Speaker 11: fall twenty thirty percent. So what I would say is
Speaker 11: that opens up opportunities for investors. When you have this
Speaker 11: uncertainty and it's a nascent field, you know, you can
Speaker 11: actually buy dips here and hold these stocks for a
Speaker 11: longer periods of time. Hold these AI power and infrastructure
Speaker 11: ETFs and things like this. But you know, what I
Speaker 11: will say is that it also just shows you how
Speaker 11: much demand there is and what the runway is for
Speaker 11: these companies. You know, you're now we're talking about photonics
Speaker 11: that are needed to power data forward. We're to Corning
Speaker 11: deal for a Corning deal, Lmentum, Coherent. You know, we're
Speaker 11: talking about different forms of energy, whether it's nuclear energy,
Speaker 11: and all of this is needed to drive this forward.
Speaker 11: And we're in the early stages. So I think the
Speaker 11: picks and shovels are going to have a long runway
Speaker 11: ahead of them.
Speaker 2: Where there has been a lot of anxiety has been software.
Speaker 2: And look, Data Dog actually calls itself an AI powered
Speaker 2: software provider.
Speaker 3: They're giving tools for AI coding. They're also all about
Speaker 3: the networking infrastructure.
Speaker 2: But how all companies getting sort of wheat and shafted
Speaker 2: by investors right now as to whether they can harness
Speaker 2: AI growth or whether they're going to be left behind.
Speaker 11: Well, I think when the market had that chatshypt moment
Speaker 11: so long ago, at this point, it was the Microsoft
Speaker 11: investment news, all of a sudden, every single company in
Speaker 11: the s and P five hundred tied itself to the
Speaker 11: word AI. And when it tied itself to the word AI,
Speaker 11: all that company tended to do well and the stock
Speaker 11: price went up. And then the market has figured out like, okay,
Speaker 11: not everybody is AI, and so I think data Dog
Speaker 11: has done something differently, you know how that votes for
Speaker 11: the rest of software. I think that if you see
Speaker 11: these major software companies integrating AI into their infrastructure, they
Speaker 11: will be potentially fine. And also you have larger companies
Speaker 11: like Ibon for example. You know, they might suffer on
Speaker 11: their software side, but they went on their quantum side, right,
Speaker 11: So the diversified exposure to technology and these you know
Speaker 11: again disruptive trends in AI will help move them forward.
Speaker 2: This is all in the context of disruption from a
Speaker 2: macro perspective. From a geopolitical perspective, how how does a
Speaker 2: long term investor who loves the idea of AI and
Speaker 2: quantum deal with the here and now of the straight
Speaker 2: to Hoole moves, which does affect helium, which doesn't fight chips.
Speaker 11: Right, And it's really interesting that the market has rallied
Speaker 11: the way it has where we still have this geopolitical uncertainty.
Speaker 3: Is the war over?
Speaker 11: Is it not?
Speaker 3: Where do we stand?
Speaker 11: You know, I think that the market could turn at
Speaker 11: any time, and that's something that investors.
Speaker 3: Should be aware of.
Speaker 11: However, when you think about, you know, the way that
Speaker 11: you invest when specifically talking about disruptive themes. You want
Speaker 11: to be a longer buy and you know, buy and
Speaker 11: hold investor, right. You want to kind of weather the Covids.
Speaker 11: You want to weather the Russia Ukraine. You want to
Speaker 11: weather what's going on in the Middle East and keep
Speaker 11: that long term outlook because you're not going to be
Speaker 11: able to predict your politics. That being said, investors should
Speaker 11: beware that there could be volatility and the things that
Speaker 11: get hit could be the higher pro sectors.
Speaker 3: Where are you seeing new appetite?
Speaker 2: Like you're someone who thinks around opening new ETFs, like
Speaker 2: you honess the appetite that there was in crypto, particularly
Speaker 2: an AI infrastructure in space and quantum.
Speaker 3: Where's the puck moving?
Speaker 11: Well, the puck is moving to you know a lot
Speaker 11: of these picks and shovels of AI.
Speaker 3: It really is.
Speaker 11: You know, you're talking about memory, you're talking about photonics,
Speaker 11: you're talking about the AI infrastructure and build out the
Speaker 11: picks and shovels. The last time we were on, we
Speaker 11: talked about modern warfare because of what's going on in
Speaker 11: Iran and around the world. There's been so much growth
Speaker 11: in you know, drones, manless drones, you know polunteer, the
Speaker 11: type of AI that is going to be funded by
Speaker 11: governments to grow out. Defense is just you know, a
Speaker 11: massive opportunity. So we really see investors starting to allocate
Speaker 11: and look into the cousins of AI outside of just
Speaker 11: straight ships.
Speaker 2: And we've got a key IPO to be too about
Speaker 2: in the world of satellites. And I know that you've
Speaker 2: got exposure to the world of satellite and defense tech.
Speaker 2: Sylvia Daemonsky, it's great to have you on of Defiance
Speaker 2: ETF coming up. We talked to that CEO, Hawkey three sixty.
Speaker 2: It's a satellite surveilance FERM. It just rade four hundred
Speaker 2: and sixteen million dollars in its IPO. This is Bluemo Tech,
Speaker 2: another tech company is going public today in the latest
Speaker 2: sign that the IPO market is picking up steam. Hawkeye
Speaker 2: three sixty priced at the top end of the range
Speaker 2: and raise four hundred and sixteen million dollars in the
Speaker 2: firm provides satellite based signals intelligence for US government agencies.
Speaker 2: Hawkye CEO John Cerafini joins US now and look, your
Speaker 2: shares are currently indicated to pop at the open thirty
Speaker 2: dollars to thirty two.
Speaker 3: And does that make you feel, John, Oh, it's a
Speaker 3: wonderful day.
Speaker 7: It's a wonderful day for our company and for our
Speaker 7: customers around the globe.
Speaker 2: Okay, so we could see that sort of movement higher.
Speaker 2: Twenty six dollars is where you priced. You have are
Speaker 2: twenty five times oversubscribed. So for those that didn't manage
Speaker 2: to get in, what's the thesis here? What are the
Speaker 2: growth opportunities for Hawkey three sixty.
Speaker 3: Well, it's a very.
Speaker 7: Durable all weather company. We obviously have a value proposition
Speaker 7: of providing signals intelligence to the warfighter community during times
Speaker 7: of geoplical volatility, but our capabilities are orchestrated to provide
Speaker 7: value in all environments, in all business conditions, and we
Speaker 7: have a track record of having built a very durable
Speaker 7: company that works in any operating condition, in any economic environment.
Speaker 2: You ownly operate a constellation of more than thirty satellites.
Speaker 2: How does that look to grow and what actually do
Speaker 2: those satellites perform right now?
Speaker 7: Yes, so our constellation today is over thirty satellites. That
Speaker 7: provides an exceptional revisit rate over anywhere on Earth, as
Speaker 7: well as very low data latency, so we can get
Speaker 7: that data to our customers, the warfighters and timely manner.
Speaker 7: All these conditions provide for capabilities that the warfighter is
Speaker 7: using in places like the battlefield or in the South
Speaker 7: China Sea to be able to and track dark vessels.
Speaker 7: We have a very exquisite value proposition of being able
Speaker 7: to geolocate, analyzed process RF data and deliver that to
Speaker 7: warfires on a timely basis.
Speaker 3: How does that expand?
Speaker 2: Is it just the US government and it's more of
Speaker 2: the budget that is an expanding budget coming from the
Speaker 2: Pentagon or is.
Speaker 3: It other allies that you work with. How you seeing
Speaker 3: the growth of Hawky three sixty.
Speaker 7: Well, we've orchestrated our company to be a very diverse
Speaker 7: in our revenue base. So we have a US government
Speaker 7: business that's significant today represents about seventy five percent of
Speaker 7: our work. In the past, our international business has been
Speaker 7: upwards of fifty percent of the Hawkeye heritage capability. We
Speaker 7: have a number of great international customers. We're very pleased
Speaker 7: to be able to support them, and the growth drivers
Speaker 7: on the air national side are very robust.
Speaker 2: You are using the money the funds raised to repay
Speaker 2: debt and to help fund deferred payments related actually to
Speaker 2: an acquisition you.
Speaker 3: Made in December. What about that?
Speaker 2: I mean you bought a data space provider of signal
Speaker 2: processing technology.
Speaker 3: Could you add on anything else?
Speaker 2: Or is acquisitions in an inorganic.
Speaker 3: Growth a way to continue to expand?
Speaker 7: Well, we're quick to want to combine the organic growth
Speaker 7: of over seventy percent last year in twenty twenty five
Speaker 7: and the exceptional profitability of over twenty percent on adjusting
Speaker 7: able the basis in twenty twenty five with continued inorgananic
Speaker 7: growth opportunities. Now that we've acquired ISA, which is a
Speaker 7: meaningful acquisition both in revenue and profitability and an exquisite
Speaker 7: fit for our technologies, and we have the institutional muscle
Speaker 7: to do this, we anticipate doing more acquisitions, and certainly
Speaker 7: the IPO provides the proceeds for us to enable that.
Speaker 2: What's interesting, John, I mean, you raised I think one
Speaker 2: hundred and seventy three million in a Series A E
Speaker 2: funding round. Who are nearly two billion dollars according to pitchbook.
Speaker 2: Why not stay private? What we've seen is massive companies
Speaker 2: wait for extraordinary lengths of time to eventually tap the
Speaker 2: public markets.
Speaker 3: Why was it right for you?
Speaker 9: Now?
Speaker 7: Well, the warfire who deserves the very best suppliers of
Speaker 7: capability to them, and the IPO process provides exceptional validation
Speaker 7: to ensure that a company like Hawkeye three sixty is
Speaker 7: capable of delivering valuable intelligence to that war fighter. So
Speaker 7: we appreciate that bone, the FIDIS and the validation that
Speaker 7: we've gained from becoming a publicly traded company. And obviously
Speaker 7: we appreciate the resources that are now on our balance
Speaker 7: sheet that will enable us to execute against special initiatives
Speaker 7: that will provide growth to support the warfighter.
Speaker 2: John, it's great speaking to me. We look forward to
Speaker 2: when the shares start trading. John Sarafini, he's the CEO
Speaker 2: of Hawkekai three sixty.
Speaker 3: Congratulations on the listing shows of chime.
Speaker 2: We're actually trading lower today seven point nine percent, But
Speaker 2: the company reported earning is that beat expectations? They raised
Speaker 2: full your revenue outlook. It's kind of synonymous what we've
Speaker 2: just seen with Armor a little bit earlier. The more
Speaker 2: notable change that Blueberg Intelligence focuses it on is the
Speaker 2: fintech raising is EBIDAR outlook up percent the midpoints. So
Speaker 2: let's delve into all these numbers, the growth, the new
Speaker 2: users with Chime CEO Chris Britt and look the.
Speaker 3: Stop not doing the work.
Speaker 2: But more broadly, we are seeing that you outperformed in
Speaker 2: your fiscal first quarter.
Speaker 3: How are you seeing growth for the company.
Speaker 12: Well, thanks for having me, Caroline, it's great to see
Speaker 12: you again. We felt great about the quarter. We once
Speaker 12: again added a huge amount of new members into our
Speaker 12: customer base. We added seven hundred thousand new actives, so
Speaker 12: we got to ten point two million for the quarter,
Speaker 12: which is a new high for US, and third party
Speaker 12: data from Jdpower once again showed that Chime was opening
Speaker 12: up more checking accounts than any bank in America, in fact,
Speaker 12: almost fifty percent higher than the number two player in
Speaker 12: terms of opening up new accounts. And you can see
Speaker 12: that translate into our results twenty five percent year over
Speaker 12: year top line growth and great outperformance on not just
Speaker 12: top line but also in terms of efficiency and EBAITA.
Speaker 12: We achieve an eighteen percent adjusted EBAITA margin and gap
Speaker 12: profitability for the first time.
Speaker 2: Look, this is all on the arc of having gone
Speaker 2: public and continuing to build out as a company. There
Speaker 2: was seasonality to your business in the second quarter brings
Speaker 2: that seasonality, Perhaps revenue gets hit a little bit, maybe
Speaker 2: acquisition costs. How do you continue to build through that seasonality.
Speaker 2: What is it that you can bring in terms of
Speaker 2: AI within the product and also within your business.
Speaker 5: Yeah, that's right.
Speaker 12: Q one is always a outperformance quarter for us because
Speaker 12: we get outsized amount of spend and deposit as a
Speaker 12: result of the tax refunds that come into our accounts.
Speaker 12: So naturally Q two you see that start to fall
Speaker 12: off a little bit. So I think the best way
Speaker 12: to look at this company, and we try to educate
Speaker 12: investors on is to really be looking at the year
Speaker 12: over year results of the company. We feel really good
Speaker 12: about the remainder of the year. In fact, we raised
Speaker 12: our guidance for the year on revenue and adjusted EBITA
Speaker 12: as you mentioned, and I think it's really the product
Speaker 12: portfolio that's going to drive that. We were on the
Speaker 12: show just about a month ago and we announced the
Speaker 12: launch of Chime Cards or We're just I'm sorry Chime Prime,
Speaker 12: and we're just about a month in and it's been great.
Speaker 12: We offer five percent cash back on the category of
Speaker 12: your choice, so you could pick fuel, restaurants, bills, you
Speaker 12: name it, and it's really been a big hit with
Speaker 12: our members so far. You also get three point seventy
Speaker 12: five apy on your savings, and we've got a whole
Speaker 12: host of other products, including AI products that we think
Speaker 12: will be a nice tail wind for growth over the
Speaker 12: course of this year.
Speaker 2: It's all about member engagements, about cross selling. Talk to
Speaker 2: me about how that AI that maybe shows up in
Speaker 2: the product also is showing up in just the coding
Speaker 2: or doing the work that those that work with you
Speaker 2: are currently deploying.
Speaker 12: Yeah, we really see AI as an accelerant to our business.
Speaker 12: We've embedded it inside of the company. We've actually we
Speaker 12: have a Chime built software factory called Archimedes, which allows
Speaker 12: employees within Chime to create agents that can work simultaneously
Speaker 12: to build products on our behalf. So literally from starting
Speaker 12: from idea and conception all the way to product rollout,
Speaker 12: we have agents that are now doing a lot of
Speaker 12: the work for our members. It's over eighty percent of
Speaker 12: our code that we shipped last quarter was AI was
Speaker 12: done with AI, and so it's a huge accelerant to
Speaker 12: the velocity of what we launch. But then in addition
Speaker 12: to that, we have a service for our members, an
Speaker 12: AI copilot that we call Jade that we think is
Speaker 12: an opportunity to move the banking experience from looking back
Speaker 12: at history and just getting reports on how you spend
Speaker 12: and these sorts of things, but actually being more proactive
Speaker 12: and helping people, helping drive behavioral changes that can help
Speaker 12: drive people towards the best financial results. Paying off high
Speaker 12: interest debt first, getting a savings account, making sure that
Speaker 12: you're investing on a regular basis and not missing any
Speaker 12: bills that are due at a particular time. We're really
Speaker 12: excited about the opportunity to use AI to help our
Speaker 12: members make financial progress inside the app.
Speaker 2: How does your employee base feel This week has been
Speaker 2: tough in fintech PayPal and they're not saying it's because
Speaker 2: of AI, but they want to lean more into AI.
Speaker 2: And you're seeing with Coinbase that is a total focus
Speaker 2: on trying to rew reframe the business built around AI
Speaker 2: with just humans at the edge what are you thinking
Speaker 2: of it, Chris.
Speaker 12: Well, look, we already operate a very efficient company. We
Speaker 12: generate over one and a half million dollars of gross
Speaker 12: profit per employee, so we feel like we have the
Speaker 12: right sized company at this point in time. What's and
Speaker 12: our employees here, our chimers are excited about this opportunity.
Speaker 12: We are really entering into a golden era of what
Speaker 12: can be done with software products as a result of AI.
Speaker 12: All the attention goes to the sort of frontier tech
Speaker 12: companies AI companies for good reason, But I think what's
Speaker 12: often underestimated is just how AI can be leveraged by
Speaker 12: industry leaders that are technology companies to create better products,
Speaker 12: to make it happen faster. And our employees are really
Speaker 12: excited about using this technology to create great outcomes for
Speaker 12: our members.
Speaker 2: I think many of your members might not think it's
Speaker 2: a golden age for their economic circumstance when I think
Speaker 2: of the pressure there runner from all prices, and you
Speaker 2: talk about how you're trying to help some of your
Speaker 2: customers get money back when they spend on gas for example,
Speaker 2: how is the customer feeling?
Speaker 5: Well?
Speaker 12: I think you know, for the past few quarters there's
Speaker 12: been a lot of questions about the health of the consumer,
Speaker 12: and I think for good reason. Obviously, the geopolitical uncertainty,
Speaker 12: the sort of broader macro pressures, but we aren't seeing
Speaker 12: it in the results. We're seeing a healthy consumer in
Speaker 12: terms of spending, double digit increases in areas like entertainment,
Speaker 12: streaming services like Netflix, home delivery like door Dash and Instacart,
Speaker 12: and then also big box purchases. These are all up
Speaker 12: double digits for our members year every year. We're also
Speaker 12: seeing balances that are higher, sure because of the tax
Speaker 12: refund season, but even beyond that, we're seeing elevated savings
Speaker 12: account and checking account balances. And we have not seen
Speaker 12: an uptick in unemployment benefits. And we see we are
Speaker 12: the primary account for millions of our members, so if
Speaker 12: there was a bump in terms of the labor market,
Speaker 12: we would see that among our customer base. They just
Speaker 12: haven't been affected yet by it. And I think you've
Speaker 12: seen in the recent numbers that have come out around
Speaker 12: labor for everyday consumers, we're close to full employment still.
Speaker 12: I think a lot of the gloom and doom is
Speaker 12: more around the white collar work that is starting to
Speaker 12: be replaced by AI.
Speaker 2: I'm CEO Chris Britt, so always great to catch up
Speaker 2: with you. Thank you for joining on the back of
Speaker 2: your earnings. Let's turn our attention to more earnings that
Speaker 2: are coming out. Coll Weave shares to see wow here
Speaker 2: today up seventy nine percent, surging in twenty twenty six,
Speaker 2: and look, AI demand fuels the need for compute capacity.
Speaker 2: Of course, investors are looking for proof that the neocloud
Speaker 2: provider can execute on his ambitious plans and its reports
Speaker 2: results after the closing bell, Dinabas joins us now and
Speaker 2: look phenomenal appetite for compute phenomenal appetite for the stock
Speaker 2: that's been volatile, though, Dina, what do we need in
Speaker 2: terms of fundamentalsrom core Weave.
Speaker 13: Sure, I think that people want to see continued signals
Speaker 13: on the demand. The demand signals last month from all
Speaker 13: of the large cloud providers that reported as particularly Google
Speaker 13: but also a WS and Microsoft, where that demand for
Speaker 13: AI capacity, as you said, remains extremely extremely strong. We
Speaker 13: just saw Anthropic sign a deal with Xai to take
Speaker 13: up some of their capacity. Everyone's looking for as much
Speaker 13: as they can. Core Weave themselves in April signed deals
Speaker 13: with Anthropic, Meta and Jane Street. So people want to
Speaker 13: see further details on what the demand looks like, but
Speaker 13: so far all indications are that it remains really strong.
Speaker 13: The question is, how is core Weave paying for expanding capacity?
Speaker 8: Right?
Speaker 13: In order to meet all that demand, you have to
Speaker 13: acquire bill develop more AI cloud capacity. And that's pracy
Speaker 13: and you know and has been a little bumpy for Corey,
Speaker 13: EVN and others in the industry.
Speaker 2: Yeah, there is this on again off again anxiety is
Speaker 2: to bottlenecks or as to how good customers are for
Speaker 2: the money, Dana. But when they're branching out and it's
Speaker 2: not say an open Ai exposure so much, but it's
Speaker 2: a jump streets as you say, it's finance, it's other enterprises.
Speaker 3: How much the investors understand that opportunity.
Speaker 13: I think Corey has tried really hard all along since
Speaker 13: their IPO to both diversify their customers then make sure
Speaker 13: investors understand that. Early on, the concern was the very
Speaker 13: large percentage of their revenue is tied to Microsoft. Then
Speaker 13: we saw, you know, with reports of open Ai possibly
Speaker 13: not selling as much as they might help. You know,
Speaker 13: core We've shares and other providers reacted to that, and
Speaker 13: Corey came out pretty pretty quickly to say, look, we
Speaker 13: have we have a lot of other customers, and so
Speaker 13: they're trying to make that clear. They're also trying to
Speaker 13: sell more software services. You know, part of their deal
Speaker 13: with Nvidio involves figuring out, you know, having in video
Speaker 13: market other things that Corey you can sell besides the
Speaker 13: wrong you know, compute power.
Speaker 2: Jana bas it's gonna be busy after the bell. Thanks
Speaker 2: for joining us on it. That does it for this
Speaker 2: edition of Bloomberg Tech. Don't forget to check out our podcast.
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