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 sentences.
Speaker 2: Go this is Bloomberg Tech coming up. AMD signs a
Speaker 2: historic deal with open Ai to roll out AI infrastructure,
Speaker 2: a packed the chipmakers said could generate tens of billions
Speaker 2: in dollars of new revenue.
Speaker 3: Plus.
Speaker 4: We speak with the White House AI and Crypto Zar
Speaker 4: David Sachs about relations between the US and China in
Speaker 4: the context of the AI race.
Speaker 2: And metas cmo joins us to discuss how AI is
Speaker 2: changing the advertising landscape what that means for small businesses.
Speaker 4: Here and now we turn our attention to the broader markets.
Speaker 3: Bitcoin at a record high. Then, now's that one.
Speaker 4: Hundred at a record high. We're up six tenths of
Speaker 4: a percent, the moon music around AIAI infrastructure, and the
Speaker 4: frenzy therein ed it continues. I'm looking at the socks
Speaker 4: up three point five percent, a new record high for
Speaker 4: the index that tracks the semiconductor industry.
Speaker 3: But what is leading a game? Of course, you know
Speaker 3: it's one key name.
Speaker 4: We look at AMD at one point hitting a record
Speaker 4: high We are up the most on this stock in
Speaker 4: nine years, twenty eight percent surge. At one point it
Speaker 4: was thirty seven percent higher. All as we hear that
Speaker 4: tens of billions are going to be added in terms
Speaker 4: of revenue because the open ai infrastructure pat a sign
Speaker 4: of real confidence in Lisa SU's AI accelerator and build
Speaker 4: out ed. We've got such an interesting conversation coming out
Speaker 4: about this new deal.
Speaker 2: Welcome to Bloomberg radio and TV audiences around the world.
Speaker 2: AMD has signed a definitive agreement with open Ai to
Speaker 2: deploy six gigawatts of amdgpus. AMD says it will equate
Speaker 2: to tens of billions of dollars in revenue. Open Ai
Speaker 2: will get up to one hundred and sixty million AMD
Speaker 2: shares in tranches and set against both operational and financial milestone.
Speaker 2: The focus is inference. Let's bring in a m D
Speaker 2: CEO Lisa Too and open Ai president Greg Brockman, both
Speaker 2: of whom join us on set here at Bloomberg Tech
Speaker 2: in San Francisco.
Speaker 5: Good morning, Good morning, It's great to see you here.
Speaker 2: Let's frame the opportunity. Lisa, you know that the market
Speaker 2: reaction is very clear, but for a m D and
Speaker 2: the AI industry at large. What do you think this represents.
Speaker 6: Well, look, this is a huge milestone for a m D.
Speaker 6: You know, we are so thrilled with the partnership with
Speaker 6: the open Ai team, and it's also you know a
Speaker 6: huge moment for the AI industry because you know, when
Speaker 6: you get to the right down to it, you need
Speaker 6: more AI compute. I mean, that's where we are today.
Speaker 6: Compute is a foundation for all of the intelligence we
Speaker 6: can get from AI. And you know, we are a
Speaker 6: compute provider. We have spent years on our roadmap, We've
Speaker 6: spent years working with open Ai and the team, and
Speaker 6: you know, together now we're embarking on you know, a
Speaker 6: massive build out of six gigawatts of AI compute, and
Speaker 6: it's it's a big deal for us, for our shareholders,
Speaker 6: for our teams, and for you know, the partnership and
Speaker 6: the overall AI ecosystem.
Speaker 2: Greg I say that the top the focus is inference.
Speaker 2: I think that's really important to be specific about what
Speaker 2: you will do with this capacity. So so literally explain
Speaker 2: that part. And I'm conscious that you know, in the
Speaker 2: first instance, the first target is one gigawatt and then
Speaker 2: eventually six gigawatts, but what will you use it for?
Speaker 7: Well, I think that the world continues to underestimate the
Speaker 7: amount of demand for AI compute. Right that we've seen
Speaker 7: this explosion of demand with things like chat GBT. You know,
Speaker 7: we're at eight hundred million weekly active users. Now this
Speaker 7: product didn't even exist three years ago, and we're in
Speaker 7: a position where we cannot launch futures, we cannot launch
Speaker 7: new products simply because of lack of computational power. And
Speaker 7: we see these models continuing to get exponentially better, and
Speaker 7: I think we're just heading to a world where so
Speaker 7: much of the economy is going to be lifted up
Speaker 7: and driven by progress and AI. And so we're very
Speaker 7: much heading to a world by default that I think
Speaker 7: looks like a compute desert, right that there's just not
Speaker 7: enough compute to go around, and so we're trying to
Speaker 7: build as much as possible, as quickly as possible. So
Speaker 7: we're starting with one gigawatt simply because you got to
Speaker 7: start somewhere. But honestly, we're building as fast as we
Speaker 7: possibly can and trying to bring as much computational power
Speaker 7: to bear for the economy and for the world.
Speaker 4: Lisa, this is such a big commitment to Instinct in
Speaker 4: particular as a customer. Does it make open ai the
Speaker 4: largest for that particular product.
Speaker 6: Well, this is certainly the largest deployment that we have
Speaker 6: announced by far. I mean, you know, six gigawatts of compute.
Speaker 6: As Greg said, we're going to start with the first
Speaker 6: gigawatt in the second half of twenty twenty six on
Speaker 6: our new next generation m I four to fifty chip.
Speaker 6: I think the thing to understand is, you know, these
Speaker 6: types of partnerships actually take you know, years to really
Speaker 6: get comfortable with the idea that we're going to you know,
Speaker 6: go all in together. And this isn't all in partnership
Speaker 6: in terms of building out you know, the AI compute
Speaker 6: that open ai needs for everything that they're offering to
Speaker 6: the world. So yes, it's a huge deal, and it
Speaker 6: also says a lot about you know, how much needs
Speaker 6: to come together for you know, this entire ecosystem to operate.
Speaker 6: So you know, we are setting up you know, certainly
Speaker 6: there's a lot of engineering work, but our teams are
Speaker 6: working together on hardware, software, We're ensuring the supply chain,
Speaker 6: all of those elements are set up and ready to
Speaker 6: deliver on this massive commitment.
Speaker 4: Greg, talk us through a little bit about the players
Speaker 4: that you need to also lean on. This has been
Speaker 4: years in the making, as you say, with AMD, but
Speaker 4: what other cloud providers were involved. How are you thinking
Speaker 4: about this working with an Oracle all others out there.
Speaker 7: Yeah, we really think of this as an industry wide effort,
Speaker 7: and in general, we think that compute is something that
Speaker 7: does require the entire supply chain to really wake up
Speaker 7: and to really to start building much more than people
Speaker 7: we're planning on. I think this starts from energy to
Speaker 7: try to get far more power to be built on.
Speaker 7: Things like nuclear I think are going to be very
Speaker 7: important to come online. The cloud providers are an important
Speaker 7: part of this as well. So we're going to be
Speaker 7: deploying AMD in our own data centers. We'll be deploying
Speaker 7: them together with cloud providers. You know, we have a
Speaker 7: deal with Oracle, lots of other cloud providers out there.
Speaker 7: You can really see that we're very much in the
Speaker 7: We just want compute as much compute as possible. We
Speaker 7: think this is important for the economy, We think this
Speaker 7: is important for the nation, we think this is important
Speaker 7: for humanity, and so really we're working with everyone in
Speaker 7: this whole industry in order to get as much compute
Speaker 7: power online as quickly as we can.
Speaker 2: Lisa, I'm sorry specifics where is this data center going
Speaker 2: to be? Is it one single site? Is it orical
Speaker 2: that we'll partner with you on this?
Speaker 6: Well, actually, what this really is is an announcement of
Speaker 6: what you know, A m D and open a are
Speaker 6: going to do together. You know, open ai has a
Speaker 6: lot of partners in terms of you know, where they deploy.
Speaker 6: I imagine a lot of it will be in cloud
Speaker 6: service providers. It's really up to you know open Ai
Speaker 6: and Greg and Sam and the team. But the way
Speaker 6: to think about it is, for this you know, amount
Speaker 6: of compute, it's going to have to be in a
Speaker 6: lot of different places.
Speaker 5: It's a massive amount, multiple locations.
Speaker 6: Multiple locations, I would imagine, you know, multiple providers to
Speaker 6: really get this online as fast as possible.
Speaker 2: Greg, there is a lot of focus on where open
Speaker 2: ai is going to get the money from to fund
Speaker 2: all of this. Sam Altman's big picture commitment is well documented,
Speaker 2: right and the numbers to his mind are in the trillions.
Speaker 2: But have you specifically thought about debt financing for this
Speaker 2: relationship with AMD? Have you thought about doing a specific
Speaker 2: equity raise. You are very committed across multiple projects.
Speaker 8: Yeah.
Speaker 7: Look, the way that I would the way that I
Speaker 7: would look at this is that AI revenue is growing
Speaker 7: faster than I think almost any product in history, and
Speaker 7: that ultimately, at the end of the day, the reason
Speaker 7: this compute power is so important, it's so worthwhile for
Speaker 7: everyone to build, is because the revenue ultimately will be there.
Speaker 5: Now.
Speaker 7: As a company that is trying to move as fast
Speaker 7: as we can, we look at everything, right, we look
Speaker 7: at equity debt, we look at trying to find creative
Speaker 7: ways of financing all of this. That's been actually a
Speaker 7: huge focus of us for the past couple of years,
Speaker 7: thinking about how can we possibly build the amount of
Speaker 7: compute that is required in order to really transform this
Speaker 7: whole economy into an aipowered economy. And so I think
Speaker 7: you'll see lots of creative ideas, but fundamentally, I think
Speaker 7: at the end of the day, it is because we believe.
Speaker 2: Sorry to jump in an interrupt and carriage, just forgive
Speaker 2: me on this one. The condition of AMD issuing the
Speaker 2: stock to open AI requires you to spend money basically
Speaker 2: because you have to deliver that gig awad of capacity. First, Lisa,
Speaker 2: I have to ask you if you have assurances that
Speaker 2: open ai.
Speaker 5: Is good for it.
Speaker 6: Well, let me be clear. I mean, this deal is
Speaker 6: a win for AMD, it's a win for open Ai,
Speaker 6: and it's a win for our shareholders. And that's kind
Speaker 6: of the way we put this together. I have full
Speaker 6: confidence in open Ai, Sam, Greg Sarah. I mean, this
Speaker 6: is a massive opportunity for us right now, right here.
Speaker 6: It's about who has the most compute and how fast
Speaker 6: can we get it online? And we're committing to doing
Speaker 6: this together. And the fact is as open ai ad
Speaker 6: buys chips, that's great for AMD. Our revenue goes up,
Speaker 6: our earnings go up. You know, we expect that it
Speaker 6: will also be very very accretive to our shareholders from
Speaker 6: day one. And as we do that, you know, we're
Speaker 6: very happy to have open Ai as a deep partner
Speaker 6: and we win together. So it's like a virtuous positive
Speaker 6: cycle in how we build out. You know, this big
Speaker 6: vision for having all this compute out there, right.
Speaker 4: And yet we still question, as you were just talking about, Greg,
Speaker 4: some of the other supply chain elements.
Speaker 3: You're talking about the need for nuclear for power.
Speaker 4: What's really interesting is we are you feeling confident enough
Speaker 4: about the rest of the compute the supply chain is there,
Speaker 4: is this going to be US manufactured? From your perspective,
Speaker 4: were you looking and also building out internationally with AMD.
Speaker 7: Yeah, we've been looking at really all options our preference
Speaker 7: and really the core thing that we try to do
Speaker 7: is build as much as possible in the US. And
Speaker 7: you can see the commitments that we've made over the
Speaker 7: past year, you know, five hundred billion dollars of investment
Speaker 7: in the US, and that's not stopping. We're continuing to build.
Speaker 7: Think the international that there it is also going to
Speaker 7: be important for the world to have compute. I think
Speaker 7: that computer is going to become this like national security
Speaker 7: strategic resource, and every country is going to need computational
Speaker 7: power and so that we are really not limiting our
Speaker 7: sort of sites in terms of where to build, but
Speaker 7: we do think it is important that the US leads
Speaker 7: in this technology, leads in computational power, and we're expanding
Speaker 7: the supply chain. But you can see that we've really
Speaker 7: been working with partners across the globe in order to
Speaker 7: actually meet the demand that we expect to becoming and
Speaker 7: upcoming years.
Speaker 4: LISTA the manufacturing of these chips. Will do you look
Speaker 4: to Intel at all for it?
Speaker 6: Do you think in the future, Well, as you know,
Speaker 6: the supply chain is something that we work on, you know,
Speaker 6: very very meticulously. I think we have a very strong
Speaker 6: supply chain. We're certainly deeply partnered with you know, TSMC
Speaker 6: across the supply chain. You know, just to that earlier question,
Speaker 6: we're absolutely prioritizing building in the United States because I
Speaker 6: think that's super important. This is the US AI stack.
Speaker 6: We want to have as much of it in the
Speaker 6: US as possible. And you know, we continue to really
Speaker 6: look at, you know, how do we ensure that there
Speaker 6: will be a strong supply chain, you know.
Speaker 9: Going forward.
Speaker 2: Greg Sam posted on x that this deal with AMD
Speaker 2: is incremental to what's already being done with Nvidia, but
Speaker 2: as least enough. So I spent quite a lot of
Speaker 2: time looking at the MII family and the newer generations
Speaker 2: of products to come. Is there a very clear specific
Speaker 2: benefit to using a MD technology for inference relative to
Speaker 2: the capabilities of Nvidia, or do you just see it
Speaker 2: broadly as some sort of diversifying factor.
Speaker 7: Well, I would look at it this way, that there's
Speaker 7: a huge fixed cost to getting AI models running on
Speaker 7: any platform, and so that when we look at what's
Speaker 7: out there, that actually getting AI training to work is
Speaker 7: a huge, huge amount of lift. That's something we've really
Speaker 7: only done the work for in VideA, but for inference
Speaker 7: that that's something that's much more that there's an easier
Speaker 7: barrier to entry there. And one thing we found is
Speaker 7: that I think that the work that Lisai team have
Speaker 7: been doing on the m I four fifty series, it's
Speaker 7: looking like it's going to be a really incredible chip.
Speaker 7: I think that that there's the way that these things
Speaker 7: work is there's niches for different balances of memory and
Speaker 7: computational power, and so as we have a diversity of workload,
Speaker 7: we're finding that having a diversity of chips also really
Speaker 7: accelerates what we're able to do.
Speaker 2: Lisa, at the beginning of this conversation, I said they
Speaker 2: were both operational and financial milestones to be met, and
Speaker 2: Greg explained, you've got to start somewhere. So in the
Speaker 2: first instance, one giga what, but would you just sort
Speaker 2: of draw out the pathway to that first giga what?
Speaker 2: You know, it seems like you're prepared to move quickly here.
Speaker 6: Yeah, absolutely, and maybe if I can just build on
Speaker 6: some things that Greg said. I think he's absolutely right.
Speaker 6: You know, we're a believer in there's a diversity of
Speaker 6: workloads and there will be a diversity of workloads across
Speaker 6: you know, customers, models, use cases, and from that standpoint,
Speaker 6: you know, we feel really good about how we're positioned.
Speaker 6: You know, we we love the work here because you know, Frankly,
Speaker 6: you know, open Ai is the ultimate power user of
Speaker 6: our chips and and test us in very good ways.
Speaker 6: So I think that's that's what gives us confidence that
Speaker 6: you know, the technology is there. And then to your
Speaker 6: point about milestones, yes, I mean this is clearly a
Speaker 6: case where we are tied to each other. The first
Speaker 6: gigawatt of deployment is super important. We're going to start that,
Speaker 6: you know, second half of next year, and we're going
Speaker 6: to build on from there. And it really is not
Speaker 6: just the technology, but your commercial milestones, adoption milestones, and
Speaker 6: just how we proliferate the capability going forward. But I'm
Speaker 6: looking forward to building this as fast as possible. You know,
Speaker 6: we're already working with a number of cloud service providers
Speaker 6: who are also very active on our technology, and I
Speaker 6: think this is a great catalyst to get the industry
Speaker 6: to build faster.
Speaker 4: Tied to each other is such an interesting ton of phrase,
Speaker 4: and Greg, you are seeing more AI users and chip
Speaker 4: makers and designers becoming more financially tied to each other.
Speaker 3: Is this going to continue?
Speaker 4: Is this the staf forward for how you see this
Speaker 4: financing going forward?
Speaker 7: Well, I really see the world transitioning to this AI
Speaker 7: powered economy. And the interesting thing is within open AI
Speaker 7: that we've really seen what it's like when your progress
Speaker 7: is limited and accelerated as two sides of the coin
Speaker 7: by computational power. Like teams within open Ai, that their
Speaker 7: ability to deliver really is tied to the amount of
Speaker 7: compute that they get. And I think we're heading to
Speaker 7: a world where that is how the whole economy will function.
Speaker 7: And we're starting to see it right that people having
Speaker 7: access to better AI tools. If you're a coder, you're
Speaker 7: able to do far more if you have access to
Speaker 7: better AI models. And we're heading to a world where
Speaker 7: if you can have ten times as much AI power
Speaker 7: behind you, you will probably be ten times more productive.
Speaker 7: And so I think that we're moving to a world
Speaker 7: where the whole industry is waking up to the fact
Speaker 7: that we have just not planned. We have not planned
Speaker 7: for this moment where this explosion in AI demand is happening.
Speaker 7: So it's happening all the way from the power to
Speaker 7: the silicon, and I think this whole industry has to
Speaker 7: to find a way to actually rise to meet the occasion.
Speaker 2: Lisa, you have given us a look into the future
Speaker 2: before about how you see the total addressable market the
Speaker 2: industry now that the ink is dry with open AI
Speaker 2: and Greg, are you rethinking either your bigger picture analysis
Speaker 2: of the market for AI accelerators and GPUs or do
Speaker 2: you see AMD now having an improved position in that
Speaker 2: market relative of course to your friends at Nvidia.
Speaker 6: Well, again, I think, and I've told you before, I
Speaker 6: believe that this is a huge market. You know, we
Speaker 6: have size just the AI accelerator TAM being you know,
Speaker 6: over five hundred billion dollars in TAM over the next
Speaker 6: few years. I think some might say, you know, maybe
Speaker 6: I was a little conservative in that TAM analysis, but
Speaker 6: the way to think about it is there's so much
Speaker 6: need from compute. I mean, you just heard it from Greg,
Speaker 6: so you know this is a huge pie and you're
Speaker 6: going to see the need for you know, more players
Speaker 6: coming into it, and you know, from my standpoint, this
Speaker 6: is a big validation of our technology and our capability.
Speaker 6: You know, as much as we love the work with OpenAI,
Speaker 6: we're working with a lot of other customers as well.
Speaker 6: There's a lot of excitement in the industry around m
Speaker 6: I four fifty, so we're ready for it.
Speaker 4: MDCO Lisa Sou Open Ai President Greg Brockman, it's been
Speaker 4: a joy having you on the show.
Speaker 3: Thank you both very much.
Speaker 4: Thank you, and coming up more on AMD and its
Speaker 4: impact on the broader tech markets. We've got a key
Speaker 4: investor for you, Tony one of t row Price.
Speaker 3: This is really metech.
Speaker 4: Let's stay on that AMD open Ai story, it's impact
Speaker 4: of the broader tech markets. Tony Huang t row Price,
Speaker 4: Science and Technology from Portfolio Manager.
Speaker 3: You have exposure to AMD.
Speaker 4: It's added more than seventeen billion dollars in market cap
Speaker 4: on one day alone.
Speaker 3: What does this deal signal?
Speaker 10: Yeah, Well, I think it's a really exciting deal here
Speaker 10: for AMD and validates their roadmap and their silica and software's.
Speaker 10: I think it gives them a really big lead customer
Speaker 10: to really scale and I think that this will probably
Speaker 10: attract other customers to their roadmap and continue to build
Speaker 10: out ROCK.
Speaker 8: And I've always had this like thesis.
Speaker 10: That the TAM is really big and if companies can
Speaker 10: deliver on that compute, that there's there's a lot of
Speaker 10: companies that can win in the overall compute. TAM so
Speaker 10: overall very exciting, and you know, I think it's got
Speaker 10: a good setup for the next few years for the
Speaker 10: company's runway.
Speaker 4: I mean, Lisa Sue just telling us that maybe she's
Speaker 4: being conservative when she puts the AI accelerate to TAM
Speaker 4: at five hundred billion dollars.
Speaker 3: Tony, I'm interested.
Speaker 4: Though, at opening eye telling us Greg saying that we're
Speaker 4: looking at all kinds of way of financing this.
Speaker 3: How are you feeling.
Speaker 4: About this knitting together of purchases and creators, designers of chips.
Speaker 10: Yeah, well, I think that taking your step back over
Speaker 10: the last kind of ten years, everybody's underestimated this TAM.
Speaker 8: And I think what's.
Speaker 10: Exciting about AI is that there are a lot of
Speaker 10: productivity use cases here and we're starting to see AI
Speaker 10: agents really form. And then I think physical AI, so
Speaker 10: I think as long as like the n use cases
Speaker 10: are delivering a lot of value, and there's promise there.
Speaker 10: I think that's what matters in terms of the ROI,
Speaker 10: and I think a lot of these kind of contracts,
Speaker 10: I mean they are backstop by really blue chip companies
Speaker 10: like Mirosov or Oracle.
Speaker 8: So in terms of you know, how I'm feeling.
Speaker 10: About the financing, I think it's it continues to be
Speaker 10: probably a good attractive way to do as long as
Speaker 10: the use cases are intact.
Speaker 2: Tony, the mechanics of the deal are the open AI
Speaker 2: has the right to buy up to one hundred and
Speaker 2: sixty million shares of AMD at a penny apiece, but
Speaker 2: that right contingent on the operational and financial milestones that
Speaker 2: we discussed. It is not circular financing, it's something different.
Speaker 2: But how comfortable are you with that mechanism.
Speaker 8: Well, I think it could make a lot of sense, right.
Speaker 10: I mean it puts the two companies of in co
Speaker 10: development and partnership, and I think there's shared economics and
Speaker 10: it's a win win for both companies. I think some
Speaker 10: of the prices the warrants are stricted at a pretty
Speaker 10: you know high price on the AMB stock price, So
Speaker 10: I think it's good for both sides and if they win,
Speaker 10: they win together.
Speaker 8: So to me, I think it can make sense.
Speaker 2: Does this alter AMD's position in the AI accelerator market
Speaker 2: in other words, they're closing the gap a little within video?
Speaker 8: Yeah, well, I.
Speaker 10: Think that both companies are doing really well and they're
Speaker 10: doing things a little bit differently.
Speaker 8: But I think that you're.
Speaker 10: Alluding to kind of the market narrative of AMB was
Speaker 10: kind of in between kind of in video on the
Speaker 10: GPU side and then Broadcom on the custom side, and
Speaker 10: I think this can help lift the narrative to go
Speaker 10: from like a second place GPU player to a co developed.
Speaker 8: Partner of open Ai on the AI compute side.
Speaker 10: So I think it positions them well, gives them credibility scale,
Speaker 10: an additional kind of kind of co development R and
Speaker 10: D to improve their roadmaps. So to me, it definitely
Speaker 10: is a big positive. And I don't think it's a
Speaker 10: zero sum game. I mean, I think it just further
Speaker 10: signifies the demand for AI computing. It's good for the
Speaker 10: country to build this much capacity because I do think
Speaker 10: the and payoffs are immense.
Speaker 4: I mean, Tony, we're a new record high for the
Speaker 4: NASA that one hundred. At one point, MD was at
Speaker 4: a record high. The valuations kind of a higher. When
Speaker 4: I'm looking at your holdings top holding, Apple, Alphabet and
Speaker 4: Video Meta, do feel confident that these are going to
Speaker 4: continue to gain in value with this AI story.
Speaker 10: I think there's a good long term story behind all
Speaker 10: our holdings, and I think a lot of them are
Speaker 10: beneficiars of AI. They're strong companies that are are great
Speaker 10: platforms and as a result, I think that you know,
Speaker 10: we are entering this inflection in AI driving a ton
Speaker 10: of productivity. You think about you know, output being productivity
Speaker 10: and labor. I think pun game is going up and
Speaker 10: labor is going to be relatively uncapped, I think as
Speaker 10: a limiting factors. So to me, I think it's exciting.
Speaker 10: It's never been a better time to be a tech investor.
Speaker 10: I think there's just so much change in dynamism, So
Speaker 10: I'm excited for the multi.
Speaker 2: Year here, Tony, if your humor me please, My colin
Speaker 2: today was about all of the debt deals that are
Speaker 2: underpinning the AI infrastructure build out that we're seeing. You know,
Speaker 2: everyone seems to have a different comfort level with that
Speaker 2: as well. How sanguine are you about the role of
Speaker 2: debt in what we're seeing?
Speaker 10: Yeah, I think that you know, the key signal here
Speaker 10: is you know, what what is this AI capacity, this
Speaker 10: AI infrastructed capacity.
Speaker 8: Worth, and what's the useful life?
Speaker 10: I think a few years ago we're debating is the
Speaker 10: useful life for a GPU data center three or four years?
Speaker 10: And I think that was just too short. You look
Speaker 10: at a lot of the GP use you know from
Speaker 10: seven eight years ago. They're still being fully utilized because
Speaker 10: the AI workloads continue to evolve. And then when you
Speaker 10: fully appreciate these assets, like they're at a price.
Speaker 8: Point that could make sense for other lms be running
Speaker 8: on them.
Speaker 10: And so I think that you know, the useful life
Speaker 10: of these gps are definitely more than four or five years.
Speaker 10: And you know, there's just more and more use cases.
Speaker 10: You think about robotics, like you know, diagnostics, simulation, there's
Speaker 10: just a ton more than we thought there were three
Speaker 10: years ago. And I think that's what We'll keep the
Speaker 10: utilization high of these data sounds as long as that
Speaker 10: you know continues, I think it makes a lot of sense.
Speaker 3: Totally a good pivot another part of your portfolio.
Speaker 4: Verizon change at the top, hands verse bag, handing over
Speaker 4: the rainsidantialman, how'd you feel about it.
Speaker 8: You can you come again now that question.
Speaker 4: With Verizon, we are seeing executive changes at the top
Speaker 4: on certain companies.
Speaker 3: How do you feel, for example of.
Speaker 4: Verizon seeing hands verse bag changing over the rain today.
Speaker 10: Yeah, actually we don't own verses, so I probably that's
Speaker 10: a little bit outside of my wheelhouse.
Speaker 8: To carment.
Speaker 2: Tony Wong with tro Price, we're trying to get you
Speaker 2: on all the news of the day, but we really
Speaker 2: appreciate the insight into the AMD open aideal.
Speaker 5: Thank you very much, Carrot.
Speaker 3: Time now for talking tech.
Speaker 4: First up, Apple ed is facing an investigation in France
Speaker 4: over the storing of voice recordings made by its Sirie assistant.
Speaker 4: Probe is related to claims that subcontractors and had access
Speaker 4: to sensitive recordings. The iphonemaker says it uses Syrian interactions
Speaker 4: to improve services and only stores them in users opt in.
Speaker 3: Apple declined to comment on the investigation.
Speaker 4: Plus Fox con reported sales growth of eleven percent in
Speaker 4: the third quarter and projective further sales growth this quarter.
Speaker 3: The gains by and video partner officially named Honhai.
Speaker 4: Signals that demand for AI chips and servers remains strong,
Speaker 4: and Tesla shares jumped after the company posted cryptic videos
Speaker 4: teasing a possible product. Unveil Saysa's last addition to its
Speaker 4: product lineup was a cyber truck two years ago.
Speaker 3: Executives have said, an affordable model. Why it's on the works.
Speaker 3: Welcome back to Blue med Tech. We check in on
Speaker 3: these markets.
Speaker 4: New record highs October apparently has been coined, certainly for
Speaker 4: looking at the crypto world, Bitcoin one hundred and twenty
Speaker 4: two hundred and thirty up two percent. We had a
Speaker 4: risk on rally throughout the weekend. That risk on rally
Speaker 4: continues into money with the NAZ that one hundred and
Speaker 4: seven ten seven percent.
Speaker 3: And you know why.
Speaker 4: There is a key player at the moment that is
Speaker 4: helping us push up and to the right. It is
Speaker 4: AMD up twenty six percent at one point, hitting a
Speaker 4: record high, up the most in nine years. Extraordinary new
Speaker 4: deal soaring after of course, it's doing this deal with
Speaker 4: open Ai for AI infrastructure that can generate tens of
Speaker 4: billions of dollars in new revenue.
Speaker 5: Ed.
Speaker 4: We had a great conversation with Lisa Su and Greg
Speaker 4: Brockman a moment ago. Another great conversation coming up.
Speaker 5: Yeah, really looking forward to this one.
Speaker 2: Joining us now as the White House, AI and cryptos
Speaker 2: are David Sachs. He's also the co founder and partner
Speaker 2: of Craft Ventures all of course as well. David, there
Speaker 2: is something that I wanted to talk to you about
Speaker 2: for a long time, and we will get to it,
Speaker 2: the debate around should the United States or should the
Speaker 2: United States not export some form of AI chip to China,
Speaker 2: And we will get to it. But I'm sure you
Speaker 2: can appreciate, you know, the AMD and Open AI agreement
Speaker 2: is very interesting, and so as a place to start,
Speaker 2: could I just ask your sort of interpretation of what
Speaker 2: it signals when you have a US chip maker like
Speaker 2: AMD after Nvidia, and one of the frontier model shops
Speaker 2: like open Ai working so closely together on infrastructure.
Speaker 11: Well, and I think the main thing here is this,
Speaker 11: there's an AI boom going on and the market is
Speaker 11: highly competitive. We have a number of leading model companies,
Speaker 11: we have a number of leading chip companies, and they're
Speaker 11: all competing with each other and they're all booming. And
Speaker 11: what we see here is that this AI boom just
Speaker 11: keeps going and going and keeps driving businesses to new highs.
Speaker 11: And this is all a result of President Trump's pro innovation,
Speaker 11: pro export, pro AI policy. We saw this help drive
Speaker 11: us GDP to three point eight percent growth rate in
Speaker 11: the second quarter. So I think this seems this boom
Speaker 11: just seems like you going to keep going and going,
Speaker 11: and we just heard I think it's.
Speaker 4: Just justson One was the latest on a podcast shouting
Speaker 4: you out, shouting out those that are in the team
Speaker 4: at the White House at the moment guiding when it
Speaker 4: comes to technology, David. But I'm interested as to whether you,
Speaker 4: as an investor, have great comfort in these relationships being built,
Speaker 4: financial relationships between chip designers and the chip users.
Speaker 11: Well, I think it's up to them. You know, I
Speaker 11: don't really take sides in these deals. We want all
Speaker 11: of our American air companies to be successful, and they're
Speaker 11: all competing with each other and cooperating with each other.
Speaker 11: I guess it's called coopetition, and that's a great thing
Speaker 11: to see. We just want, you know, putting my AI
Speaker 11: hat on, we just want these markets to be competitive,
Speaker 11: and we want American companies to be successful, and that's
Speaker 11: what's happening right now.
Speaker 4: I'm looking therefore at the future rollout, the buildouting that
Speaker 4: gives you pause in terms of actually the infrastructure needs
Speaker 4: here at the moment.
Speaker 11: David, Well, anytime you're working in the world of atoms,
Speaker 11: it's going to be more complicated than when you're working
Speaker 11: in the world of bits, and so it's very important
Speaker 11: for us to scale up the amount of power that's
Speaker 11: available to AI companies. And you're seeing that thanks to
Speaker 11: President Trump's policies that are pro energy. The President back
Speaker 11: the idea of drill baby drill going back many years.
Speaker 11: I think he was very far sighted in this regard.
Speaker 11: He understood that energy is a basis for everything. It's
Speaker 11: certainly the basis for this AI boom. And we're in
Speaker 11: the process of allowing a lot more power generation in
Speaker 11: the US. President Trump is allowing so called behind the
Speaker 11: meter power generation. In other words, these AI companies can
Speaker 11: stand up their own power generation. We need to squeeze
Speaker 11: more out of the grid, and we're enabling new oil
Speaker 11: and gas and nuclear so all the above. So I
Speaker 11: think that energy is the main thing, and President Trump
Speaker 11: is supporting that.
Speaker 5: David.
Speaker 2: Final question on on AMD and open AI. Did the
Speaker 2: parties consult the White House about moving forward with this
Speaker 2: arrangement and their plan to work together?
Speaker 8: No?
Speaker 11: No, I mean not with me. And I wouldn't expect
Speaker 11: them to. We just don't get involved in the deal
Speaker 11: making between private companies. Again, We're here to create a
Speaker 11: policy environment that is supportive for all of RII companies.
Speaker 5: I appreciate that.
Speaker 2: Okay, So, David, I asked you to come on the
Speaker 2: program because we spoke at the end of last week
Speaker 2: for a story that was done out of DC on
Speaker 2: the idea of well, what is a China Hawk? But
Speaker 2: also within that broad description, should the United States or
Speaker 2: should the United States not export deprecated AI chips to China.
Speaker 2: You've been very generous with your time, but I just
Speaker 2: invite you again for our Bloomberg Tech audience. Explain how
Speaker 2: you view yourself in this debate and what you think
Speaker 2: is strategically most important for this country.
Speaker 11: Well, first of all, I would say that I consider
Speaker 11: myself to be a China Hawk. I want the US
Speaker 11: to win this AI race. We understand that China is
Speaker 11: our main competition globally in this AI race, and we
Speaker 11: want to do everything we can to win. And President
Speaker 11: Trump and his AI speech on July twenty third laid
Speaker 11: out some of the tempoles of that strategy. We need
Speaker 11: to be pro innovation, We need to be pro infrastructure
Speaker 11: and pro energy, and we need to be pro exports
Speaker 11: so that the American technology stack dominates the world. So
Speaker 11: this is all in the service of the United States
Speaker 11: winning this AI race. We understand that it's going to
Speaker 11: have major economic and national security ratifications, and we're in
Speaker 11: it to win it.
Speaker 2: There is a lot of focus on the direct to
Speaker 2: China part. But the other way that some look at
Speaker 2: it is there is a marketplace outside of America and
Speaker 2: outside of China, the Middle East being an example. What's
Speaker 2: your position on that and whether the United States wants
Speaker 2: to kind of leave the world open to China to
Speaker 2: sell its own technology.
Speaker 11: Well, there was of you in the previous administration that
Speaker 11: we shouldn't sell chips to many countries, including the resource
Speaker 11: rich Gulf States, and I think that was a major
Speaker 11: mistake because every time you tell a country that they
Speaker 11: can't buy the American tech stack, what's their action going
Speaker 11: to be? They're going to turn to China and adopt
Speaker 11: the Chinese tech stack. I have a very simple metric
Speaker 11: for measuring weatherwoiting the AI race, which is global market share.
Speaker 11: If we look around the world and say five years
Speaker 11: and we see that the American technology stacks has say
Speaker 11: eighty percent market share, that means that we won. But
Speaker 11: if we look around the world in five years and
Speaker 11: we see that the Chinese technology stack and I'm talking
Speaker 11: about Huawei chips and Deepseak models for example, has a
Speaker 11: eighty percent market share, then obviously we lost. By the way,
Speaker 11: that's what happened in five g We don't want to
Speaker 11: repeat of that. So again, the strategy here should be
Speaker 11: for the US to dominate the world and have the
Speaker 11: greatest market share. And I think this is pretty obvious
Speaker 11: to everyone in Silicon Valley because we understand that the
Speaker 11: way to win technology races is to have the biggest
Speaker 11: eco system. If you're a technology platform, you want to
Speaker 11: have the most developers using your API. If you're an
Speaker 11: app store, you want to have the most apps in
Speaker 11: your app store. In a similar way, we want as
Speaker 11: many users on the American technology stack as possible. And
Speaker 11: I find it hard to understand why the previous administration
Speaker 11: would exclude these rich countries from participating on our tech stack.
Speaker 11: It certainly didn't help us in the race with China.
Speaker 11: If anything, President Trump's policy boxes out China from the
Speaker 11: Middle East, whereas the previous administration's policy forced these countries
Speaker 11: into China's arms.
Speaker 4: You've reworked, therefore the diffusion ideals set by the previous administration.
Speaker 3: But when you're allowing only less.
Speaker 4: Powerful chips, I mean, I think the President even called
Speaker 4: them obsolete versions of in Video's chips into China. Does
Speaker 4: that mean that ship of innovation in China's already sailed
Speaker 4: because they need to have the most sophisticated and they're
Speaker 4: going to have to build it themselves.
Speaker 11: Well, but when you're talking about what we export to China,
Speaker 11: that's obviously going to be a very complicated question, and
Speaker 11: there's arguments on both sides. I think there's a pretty
Speaker 11: strong argument for not selling China our latest and greatest
Speaker 11: chips because that would be too beneficial for them. However,
Speaker 11: if you don't sell them anything, then, like you're saying,
Speaker 11: that will accelerate their desire to be independent of the
Speaker 11: American stack. And so I do think there is a
Speaker 11: compelling argument for selling them a let's call it deprecated
Speaker 11: American chip or a less great American chip. And by
Speaker 11: the way, this is why the Biden administration approved the
Speaker 11: H twenty in unlimited quantities for export to China. Now,
Speaker 11: when President Trump came in, he said that those H
Speaker 11: twenty sales have to be licensed and they're subject to
Speaker 11: a fifteen percent surcharge, And nonetheless, all the people who
Speaker 11: approved the Biden policy started attacking President Trump. I think
Speaker 11: this is a classic case of no one had a
Speaker 11: problem with it until President Trump agreed to do it.
Speaker 2: David Jensen Woe went on Brad Gersner's podcast, and there
Speaker 2: was a reaction to what he said. You would point
Speaker 2: out you are an official of the government. Jensen is
Speaker 2: a private citizen and CEO. But at the root of
Speaker 2: what he was saying was also the idea of talent.
Speaker 2: Many talented computer scientists and engineers come from China. I
Speaker 2: think that was the point he was making. But the
Speaker 2: personnel part of this story, where do you stand on that?
Speaker 11: Well, it's true that something like half the world's AI
Speaker 11: researchers are from China, and so I do think that
Speaker 11: we have to somehow be open to working with this
Speaker 11: talent or allowing this talent to use the American chip
Speaker 11: stack to some degree. So it's a complicated question always
Speaker 11: of what you allow China to do. But I think
Speaker 11: Jensen was making a point there about again the talent pipeline,
Speaker 11: and we have to be open to it to some degree. Again,
Speaker 11: I could serder myself to be a China Hawk. But
Speaker 11: I wasn't triggered by what Jensen said because I watched
Speaker 11: the entire two hour podcast, not just the thirty second clip,
Speaker 11: and I understood what he was trying to say in context,
Speaker 11: and it is a nuanced question. And look, let me
Speaker 11: just say to all these people who are criticizing Jensen,
Speaker 11: what have you done to help us win the AI race?
Speaker 11: I can't think of a more strategic asset in the
Speaker 11: I race than in Nvidia and Jensen himself, who for
Speaker 11: thirty years have been working on these GPUs and Jensen
Speaker 11: is a source of huge American advantage in this AI race.
Speaker 11: So let's trow them a little bit of grace here.
Speaker 4: Context is everything. We appreciate you talking about the complicated
Speaker 4: as well. White House, AI and Cryptois are David Sachs great.
Speaker 3: To have you with us.
Speaker 4: Now coming up met his chief marketing officer, Alex Schultz,
Speaker 4: discusses how AI is changing the advertising landscape. Joins us
Speaker 4: next as a Bluebertet. A new book is out click here,
Speaker 4: The Art and Science of digital marketing and advertising. It's
Speaker 4: by Alex Schultz, and he says that AI is going
Speaker 4: to be a game changing for advertisers if used correctly.
Speaker 4: Schultz the chief marketing officer, of course a meta there's
Speaker 4: a thing all too about direct advertising and directing it.
Speaker 4: You also understand entirely the analytics and the raw data
Speaker 4: pine all of this.
Speaker 3: Alex, welcome to the show.
Speaker 4: I'm so interested in how you have seen the unfolding
Speaker 4: over the last decade or two. Incremental growth is something
Speaker 4: that you talk about so much, having direct impact with
Speaker 4: direct targeted ads in many ways, but then you've got
Speaker 4: to think of how a company has got long term vision,
Speaker 4: a north star, as you put it. How are company
Speaker 4: small and large managing to balance.
Speaker 7: This right now?
Speaker 12: Yeah, thank you for having me. This is awesome to
Speaker 12: be here. I mean, look, incremental growth is about being
Speaker 12: incremental to what would have happened without you doing your actions.
Speaker 12: You need to be incremental to what would have happened.
Speaker 12: You need to see what the lift is of your work.
Speaker 12: That fits totally with thinking long term and what is
Speaker 12: your north star? What is the goal you want to achieve?
Speaker 12: That is absolutely a question of like I have a goal.
Speaker 12: How do I incrementally lift that goal?
Speaker 4: Your north star was writing this book. I laid in
Speaker 4: many ways as well as the day to day in
Speaker 4: which you're understanding the analytics underneath what's happening in terms
Speaker 4: of marketing for meta and.
Speaker 3: The growth story. Why how did you put this out here?
Speaker 8: Yeah?
Speaker 12: Well, I mean my north staff of the book is
Speaker 12: to be useful, Like I want small businesses and large
Speaker 12: businesses to be able to actually be better at using the
Speaker 12: tools like you go back Ogilvie on advertising nineteen eighty
Speaker 12: five Bible, Absolutely incredible book, but there are new channels
Speaker 12: that have evolved since then. Digital marketing is seventy five
Speaker 12: percent of the global advertising industry. There's no book for that.
Speaker 12: I kept being asked for a book for that, so
Speaker 12: I wanted to produce a useful book to help people
Speaker 12: be good at that.
Speaker 5: Alex.
Speaker 2: In the back part of the book on AI and
Speaker 2: its impact on marketing, you talk about an audience of one,
Speaker 2: the idea that the AI can make the ad so
Speaker 2: targeted to the individual.
Speaker 5: What are the risks with that?
Speaker 2: You're clearly needing a lot of data about that person
Speaker 2: to make that audience of one relevant ad.
Speaker 12: Yeah, I mean, from my perspective, there are clear Now
Speaker 12: we've reached the point where there are clear laws out there.
Speaker 12: There are clear platform policies out there about purpose use,
Speaker 12: limitation of data, and so it's very clear what you
Speaker 12: can use the data for. And people like personalized ads,
Speaker 12: so people have control. You can get young people really
Speaker 12: understand how to manage their algorithm, and they love the
Speaker 12: personalized ads that they get where there's something relevant that's
Speaker 12: actually useful for them. So I think the balance is
Speaker 12: actually in a way better place than it was, say
Speaker 12: ten years ago, in terms of people's understanding of these things.
Speaker 12: So I think the risks are much much lower, and
Speaker 12: I think the biggest risk is not taking advantage of it.
Speaker 12: You look where Europe is, You look at how they
Speaker 12: regret the current regulations, You look at the draggy report.
Speaker 12: They are regretting the lack of growth they have versus
Speaker 12: the growth the US has, and I think one big
Speaker 12: part of that is they've hurt advertising.
Speaker 2: The big picture with meta has been that all of
Speaker 2: the work in AI has paid off for like the
Speaker 2: bread and butter core business. Can you give us any
Speaker 2: sort of insight into how much more valuable an AI
Speaker 2: powered ad is what the conversion on it is relative
Speaker 2: to traditional advertising, how it drives growth on the top line.
Speaker 12: Yeah, I mean you can step back completely. Our business
Speaker 12: has been completely transformed by AI. When TikTok came along,
Speaker 12: like five years ago, everything that you were looking out
Speaker 12: on Facebook and Instagram was connected content. You joined, you'd liked,
Speaker 12: you'd friended, you'd followed. Today, the majority of Instagram and
Speaker 12: Facebook are unconnected content. And you can see in our
Speaker 12: earnings results what the impact of AI allowing you to
Speaker 12: rank content based on semantic understanding of content and semantic
Speaker 12: understanding of the individual does for engagement. And then you
Speaker 12: see it too on the ads in terms of the
Speaker 12: revenue that's coming through and the results were providing for advertisers.
Speaker 12: So it's very high double digit percentage uplifts if you
Speaker 12: adopt things like advantage plus shopping campaigns, make sure you
Speaker 12: feed the data through with cappy and do the basics right,
Speaker 12: which I describe in this book, both with meta but
Speaker 12: also using anyone else's tools.
Speaker 4: What about human creativity at this moment, Yeah, one of
Speaker 4: my struggles is creativity is always about pixels and look,
Speaker 4: I love my creative seemed they're incredible.
Speaker 12: We closed Fifth Avenue. We had Lewis Hamilton do donuts
Speaker 12: on Fifth Avenue. It was amazing. Things were great and
Speaker 12: it really really worked. But there's a ton of creativity
Speaker 12: with data. There's a ton of creativity with target. There's
Speaker 12: a ton of creativity with conversion rate optimization and flow optimization.
Speaker 12: And what I get at in this book is creativity
Speaker 12: in the factors where it isn't David Ogilvy saying stick
Speaker 12: a car to a billboard with super glue to sell superglue.
Speaker 12: It's creativity and how you use data to give people
Speaker 12: amazing personalized experiences and high conversion rate flows.
Speaker 2: Alex Schultz, chief marketing officer for Meta, thank you very
Speaker 2: much and tune in to Bloomberg's screen Time on Thursday
Speaker 2: for a deep dive on the creator economy with the
Speaker 2: head of Meta's Instagram Adam Missi.
Speaker 5: That's what we're really looking forward to.
Speaker 2: Okay, coming up, we're going to get back to the
Speaker 2: deal between AMD and open Ai and what that means
Speaker 2: for concerns around circular financing, the build out of AI infrastructure,
Speaker 2: and everything else.
Speaker 5: This is Bloomberg Tech.
Speaker 4: We'm going to get back to open AI and am
Speaker 4: the deal pushing broader.
Speaker 3: Markets high, certainly pushing it AMD high.
Speaker 4: Joining Usskaya is with US Swiss quote senior market analyst IBEC.
Speaker 4: These ongoing deals between chip designers and ultimately those that
Speaker 4: are perching the GPUs.
Speaker 3: What do you make of it?
Speaker 9: Well, actually, it's very amazing, especially for those who are
Speaker 9: questioning the circular nature of the business and the deals
Speaker 9: that are being announced right now but infinite when. And
Speaker 9: we'll look at the MD and open Ai deal today.
Speaker 9: While open Ai is outstriking deals with data centers and
Speaker 9: chip makers from inside the US and outside of the
Speaker 9: US in order to stay ahead of the game and
Speaker 9: make sure that they are not constrained by capacity constraints.
Speaker 9: So that basically means that this company today is more
Speaker 9: worried about not having enough supply for the huge demand
Speaker 9: than the contrary. And that's outright positive for the aiballs and.
Speaker 13: The sentiment here and for AMD.
Speaker 9: There is nothing else to say that the jackpot their
Speaker 9: moment looks like it has come.
Speaker 4: Yeah, certainly biggest move in nine years Epech. What's interesting
Speaker 4: is in video did sync pulled back a little bit
Speaker 4: after it had risen higher on the hopes that on
Speaker 4: hire and the server demand was clearly there.
Speaker 3: But then we question market share.
Speaker 4: I mean, is there anything that gives you any anxiety
Speaker 4: about videos dominance?
Speaker 9: No, absolutely not, and that's due to the context. As
Speaker 9: you always say, context is everything. The sequence on which
Speaker 9: we are receiving the information has been very insightful in
Speaker 9: what's coming. Actually, NVDA announced last week that they would
Speaker 9: be investing up to one hundred billion US dollars in
Speaker 9: open Ai. That is announcing today that they will be
Speaker 9: taking a ten percent's sake in AMD. So there is
Speaker 9: a circularity there that suggests that m viderships are not
Speaker 9: going to replace in the context of this open Ai deal,
Speaker 9: but rather complemented now beyond the still this could give
Speaker 9: some leverage to AMD, but it looks like the companies
Speaker 9: are considering today that the AIPI is big enough to
Speaker 9: feed everyone grandly.
Speaker 5: Epek for public market investors.
Speaker 2: Is open Ai the private company becoming some kind of
Speaker 2: macro level factor that they have to model in.
Speaker 9: Well, absolutely, I mean they are so huge now, they
Speaker 9: are the biggest startup in the world.
Speaker 13: They are worth five hundred.
Speaker 9: Billion US dollars and d do you have these huge
Speaker 9: deals with publicly traded companies, and those are the market
Speaker 9: moving deals of market moving stocks. We are talking about NVIDIAs,
Speaker 9: we are talking about AMD So definitely, open ai is
Speaker 9: pretty much the center of this AI revolution. It has
Speaker 9: been the well the starting point, and it is gaining
Speaker 9: importance every single day, and with each deal that they announced,
Speaker 9: they are actually securing their position at the center of
Speaker 9: this game.
Speaker 2: Should we be asking more questions about how open ai
Speaker 2: is going to pay for all of this, then.
Speaker 9: Well yes, I mean some automol recently say that they
Speaker 9: will be looking at some funding possibilities that he didn't
Speaker 9: give details about.
Speaker 13: But one of the questions here is.
Speaker 9: That ai is actually a very capital intensive place, so
Speaker 9: this company needs funding now. Nvidia coming to the rescue
Speaker 9: could open the way for other companies also looking to
Speaker 9: help open ai and take a sake in this company
Speaker 9: that has not yet gone public. So I think that
Speaker 9: open Ai, if anything, is not going to really having
Speaker 9: any funding problems at the stage of the game because
Speaker 9: they are dominating the AI business right now, and even
Speaker 9: though it was it's it's a private company, it does
Speaker 9: have all the fundings that it needs. I think from
Speaker 9: private and public investors are just eager to take take
Speaker 9: part of this company actually because.
Speaker 3: The growth story is so clear in terms of revenue.
Speaker 4: But when you compare thirteen billion dollars in revenue per
Speaker 4: year and then you're thinking the trillions and dollars it
Speaker 4: has to spend. What gives you comfort that that revenue
Speaker 4: will match the amount that ultimately needs to be financed on.
Speaker 9: It, Well, it's it's definitely the reach that they have.
Speaker 9: We have seen over the past three years other companies
Speaker 9: like Meta or a Chinese company's aside, but many companies
Speaker 9: right now perplexity met her. We have x for example,
Speaker 9: wet Grog and other models that are trying to compete
Speaker 9: open Ai, and so far they have not been successful
Speaker 9: in meeting the level of enthusiasm.
Speaker 13: That open Ai had so far. So open Ai is
Speaker 13: actually surfing.
Speaker 9: It has been to first to come in and it
Speaker 9: still has this popularity and this leverage of being the
Speaker 9: first comer. So I think that they do have a
Speaker 9: very good leverage in expanding their business and making more
Speaker 9: revenue in the future.
Speaker 13: They just need to play the game right.
Speaker 9: They just need to find the right partners and that's
Speaker 9: exactly what they are doing right now.
Speaker 2: Eupe Oscar Deskaya Swiss. Quite great to have you back
Speaker 2: on the program. Appreciate it a lot more a program
Speaker 2: it was that does it for this edition of Bloomberg Tech, Caro,
Speaker 2: tune in later today we have more news due to
Speaker 2: come from Open AI. We're going to speak with the
Speaker 2: CEO Brad Lightcap on the sidelines of Open AIS.
Speaker 5: Develop a day.
Speaker 4: Gosh a lot going, can't stop, won't stop, ed you
Speaker 4: know it for us, we so appreciate it. Meanwhile, check
Speaker 4: out our podcast why don't you There are so many
Speaker 4: conversations you've got to dial back in. Get into Lisa Sue,
Speaker 4: get into Greg Brotman, get into David Sachs and of
Speaker 4: course Alex Schultz.
Speaker 3: Of Meta as well all online. This is a Bloomberg
Speaker 3: Tech