Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Single best idea, which is, if you have two people on,
Speaker 2: you can get a different opinion on all this tech
Speaker 2: and all this mag seven and of course what we
Speaker 2: saw last night in Vidia frankly is an HSBC with
Speaker 2: a wonderful herodage. You're following us. He's got some enthusiasm
Speaker 2: for the industry for the moment at hand. Here on Invidia, Frankly.
Speaker 1: The real map doesn't matter as much as it used to.
Speaker 1: It used to be that Okay and Vidio had the
Speaker 1: best chip, it was leading everybody. But now I think
Speaker 1: what they really need is a new narrative, right, And
Speaker 1: they spent more time talking about server CPUs now because
Speaker 1: this year the big ten, the big trend has been
Speaker 1: agentic AI and suddenly now CPU has gone from a
Speaker 1: runover where nobody cared about to oh, this is the
Speaker 1: next big thing now with the Tentek AI. And so
Speaker 1: I think in video is pivoted now to talk about
Speaker 1: a CPU market.
Speaker 2: So frank leither on the new or the next in Vidia.
Speaker 2: I thought that was fascinating and is an aside. Anna
Speaker 2: Wong was on, and she was for Ana Wong. Gloomy
Speaker 2: about inflation, and she said, okay, you got oil, you
Speaker 2: got the war and all that. Paul sank this week
Speaker 2: saying a gallon of gas it's going to be six dollars.
Speaker 2: I get that. But she moved right on to where
Speaker 2: Frank Lee is on this CPU build out, and Anna
Speaker 2: Wong says, we're going to see a persistent inflation that
Speaker 2: we're all going to face because of the price of
Speaker 2: the chips, the d ram and showing my age. But
Speaker 2: you know, all the different technology stuff is going to
Speaker 2: be an inflationary tendency. That's how our conversations dove till in.
Speaker 2: And so there's Nvidia. I walk in this morning and
Speaker 2: Paul Sweeney's on page two hundred and twenty four of
Speaker 2: two hundred and seventy seven pages of SpaceX. I just
Speaker 2: looked at the photos. I mean, you know, there's beautiful
Speaker 2: photos up front of Mars and the moon and rockets
Speaker 2: going up red Glare and all that. So we did,
Speaker 2: you know, we did a little bit of SPCX the
Speaker 2: red Herring out and we'll see how all that goes.
Speaker 2: Man Deep Sin came in, and of course I want
Speaker 2: to make clear he doesn't do by holed cell and
Speaker 2: he's not going to give you an opinion per se
Speaker 2: on SpaceX, but boy did he have an opinion on
Speaker 2: their accounting.
Speaker 3: I don't get the valuation. I mean, this is a
Speaker 3: company he can come back. Yeah, this is a company
Speaker 3: that's growing thirty percent of a twenty billion dollar revenue braids.
Speaker 3: You have Nvidia that is growing eighty percent of a
Speaker 3: four hundred billion dollar revenue base. Why would you buy
Speaker 3: a Spacexus elons.
Speaker 4: These are the same questions that were being asked of
Speaker 4: Tesla ten years ago.
Speaker 2: Arguably, Yeah, but.
Speaker 3: Look at the growth rates and look at the free
Speaker 3: cash flow for an Nvidia compared to SpaceX. SpaceX is
Speaker 3: not going to show you're going.
Speaker 4: To be one of those guys that's going to be
Speaker 4: focused on valuation. Yeah, okay, you can't cover the stock
Speaker 4: then that's what And I'm not sure we're get we
Speaker 4: gotta find.
Speaker 3: Some trillion dollars for what I mean for the vision.
Speaker 4: Did you read the vision statement?
Speaker 3: Okay, well I read it. There is an Xai portion
Speaker 3: where they're burning capital. And look, they are getting into
Speaker 3: GPU rentals as well. So like SpaceX has this big
Speaker 3: GPU cluster, they're one of the biggest buyers of n
Speaker 3: video chips. Well, guess what, they stop training their model,
Speaker 3: or at least right now, they are renting more of
Speaker 3: their GPU capacity to an entropic as opposed to really
Speaker 3: betting on their own model. So that will generate a
Speaker 3: good fifteen billion dollar revenue run rate just by renting
Speaker 3: the GPUs. But would you pay up you know, eighty
Speaker 3: time sales for that.
Speaker 2: Where's SpaceX going to be in ten years, Where's Man
Speaker 2: Deep Sing going to be in ten years? Where are
Speaker 2: we all going to be in ten years? This is
Speaker 2: what keeps its interesting in economics, finance, investment, and of
Speaker 2: course international relations. On a podcast on on Spotify, on Apple,
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