Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From Mahart where Innovation, money and power collne in Silicon Valley, NBN.
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 4: I'm Karen Hyde, Bloomberg's World Headquarters in New York, Blamed
Speaker 4: Ludlow Live from Dell Technologies World in Las Vegas.
Speaker 5: This is Bloomberg Technology, and.
Speaker 4: We will have full coverage from Las Vegas with Edge
Speaker 4: as he gears up to speak for the CEOs of
Speaker 4: Dell Service.
Speaker 6: Now and of Video.
Speaker 4: Plus we'll hone in on in Video and get a
Speaker 4: preview of what to expect from their earnings out later
Speaker 4: in the week. New or Grayscale CEO Michael Sonnershein's departing
Speaker 4: the company after three years at the helm Us.
Speaker 6: That and so much more throughout this hour.
Speaker 4: But a quick check on the macro as we see
Speaker 4: record high after record high across those benchmarks, whether it's
Speaker 4: the Nasdaq, whether or not see s P five hundred,
Speaker 4: the Dow, the All Country World Index, all Power higher.
Speaker 4: On the fact that we're still seeing perhaps that geopolitical
Speaker 4: risk of course, a fatal crash happening with a helicopter
Speaker 4: in Iran not enough to take away some of the
Speaker 4: overall focus. That is, of course, a macro policy, a
Speaker 4: federal reserve that can potentially cut rates into the second
Speaker 4: half of the year. That's what the market wants to see.
Speaker 6: That's interesting. We're seeing a little bit of sell off
Speaker 6: coming in the bond market.
Speaker 4: Yields just pushing up, call it one or two basis points,
Speaker 4: but really some quietness as we have just a lot
Speaker 4: of Fed speak to digest this week. I'm looking at
Speaker 4: copper also, at a record high metals gold copper really
Speaker 4: maybe a bit of a conundrum when it comes to
Speaker 4: inflatory pressures though for the Federal Reserve to currently digest,
Speaker 4: but nevertheless record highs over in commodities face too. Move
Speaker 4: on what's happening in the world of crypto. We're seeing
Speaker 4: that risk on sentiment filter into bitcoin. We're up more
Speaker 4: than a percentage points. SIS six nine hundred is about
Speaker 4: where we t But then I want to delve into
Speaker 4: some of the individual movers, some of the micro names. Look,
Speaker 4: we brace ourselves to what is an all important company
Speaker 4: for earnings. We're still waiting one of the last ones
Speaker 4: when it comes to the big market cap companies in
Speaker 4: Video up more than two percent, and is of course
Speaker 4: Wednesday that we get the overall numbers from this company,
Speaker 4: and many anticipating that will they be able to vindicate
Speaker 4: the sixty one analysts who still say buy this stock
Speaker 4: and the zero cells that are out there.
Speaker 6: After a more than five hundred percent.
Speaker 4: Rally since the beginning of twenty twenty three, Dell just
Speaker 4: under pressure some four tens percent. Interesting that JP Morgan
Speaker 4: is actually saying, also look to buy into this stock
Speaker 4: ahead of its earnings coming later on May.
Speaker 6: The very last day, it seems one hundred and forty eight.
Speaker 4: Well, the price target for JP Morgan moves up to
Speaker 4: one hundred and fifty five.
Speaker 6: We want to talk more about these stocks.
Speaker 4: We want to talk more about the focus of artificial
Speaker 4: intelligence for both del for in Video, for many over
Speaker 4: into Dell World conference now it is just kicking off
Speaker 4: in Las Vegas.
Speaker 6: Ed you are there and you've got a special guest.
Speaker 5: Yeah.
Speaker 7: And by the way, the relationship between those two companies,
Speaker 7: it's such a big part of the AI infrastructure build
Speaker 7: out that we're seeing. So let's kick off our coverage
Speaker 7: of Dell Tech World and bringing off the Lewis He's
Speaker 7: the president of Dell's Infrastructure Solutions Group. And the reality
Speaker 7: is that we can talk about generative AI all day long,
Speaker 7: but that is what we're talking about still, the infrastructure play.
Speaker 7: This is a big event for lots of reasons. Set
Speaker 7: the same for us. Who is coming at What do
Speaker 7: you think you'll be talking most about?
Speaker 8: Well, first of all, thank you for having me here.
Speaker 8: It's great to be here.
Speaker 9: You know, we're excited to be here with ten thousand
Speaker 9: of our closest friends, customers, partners, press and analysts to
Speaker 9: talk about all the great things that you know we're
Speaker 9: working on. You know, there's no question that we're living
Speaker 9: in one of the most interesting times in human history.
Speaker 9: You know, the rapid advancements that we see and artificial
Speaker 9: intelligence are going to really unlock the value that the
Speaker 9: world's data brings to organizations of all sizes, unlocking record
Speaker 9: levels of innovation and record levels of workforce productivity.
Speaker 8: And so you're going to hear from.
Speaker 9: A lot of great partners stories around the acceleration of
Speaker 9: their generative AI. They're going to hear from companies like
Speaker 9: Service Now, companies like Samsung. They're going to hear about
Speaker 9: our partnerships with companies like Nvidio, Broadcom, Intel, Microsoft, This
Speaker 9: is going to be a very exciting action pack show.
Speaker 7: Let's talk about AI factory. So in March, Delle said,
Speaker 7: we are trying to simplify your investments in artificial intelligence.
Speaker 7: So we bring you the AI factory. What is an
Speaker 7: AI factory?
Speaker 8: All right?
Speaker 9: So you know, artificial intelligence is very challenging given the
Speaker 9: rapid rate of an innovation that we see in this space,
Speaker 9: and so we take a very consultative approach and in
Speaker 9: terms of how we built out our factories. You know
Speaker 9: what customers are looking for is hey, I really need
Speaker 9: help on the use case I'm targeting. I really need
Speaker 9: help on how I do my model selection. I need
Speaker 9: help on how I do data prep, on my architecture,
Speaker 9: on my infrastructure.
Speaker 8: And so we bring that strategy to bear in.
Speaker 9: Our factory, which is a combination of our infrastructure, compute, networking,
Speaker 9: and storage, all engineered and optimized under one roof. Are
Speaker 9: build out of the partner ecosystem. You're going to hear
Speaker 9: from great companies like Hugging Face and Meta, the partnerships
Speaker 9: that we have there and our professional and consulting services
Speaker 9: which really help customers accelerate their deployment of artificial intelligence.
Speaker 7: I think the big pest question that we're going to
Speaker 7: have throughout the days is who is the buyer of
Speaker 7: AI factories?
Speaker 5: Right? The story thus far has.
Speaker 7: Been Nvidia selling AI accelerators or high performance GPUs to
Speaker 7: the hyperscalers and Meta. Basically Dell's history in its sales
Speaker 7: channels that have been different. Right, you sell to SMEs,
Speaker 7: you sell to governments? Are they the buyers of the
Speaker 7: AI factory?
Speaker 5: And in what form? I mean, what are we literally
Speaker 5: talking about here?
Speaker 10: Yeah?
Speaker 9: And you know, like I said, this is one of
Speaker 9: the most interesting times in human history. You know a
Speaker 9: lot of people say we're in the early innings of
Speaker 9: a baseball game, but I.
Speaker 8: Like to say that we're actually just.
Speaker 9: Pulling into this stadium and the game hasn't even started.
Speaker 9: A lot of the hype has really been around the
Speaker 9: cloud service providers and building out large training clusters. But
Speaker 9: you know, the enterprise is definitely doing a lot of pocs.
Speaker 9: What they're looking for is to deploy AI the right way.
Speaker 9: That means they want to deploy it on prem align
Speaker 9: to where their data resides, and they want to do
Speaker 9: it in an open and flexible way because they want
Speaker 9: choice in terms of how, when and where they deploy
Speaker 9: their models.
Speaker 7: The Power Edge ninety six eighty is the basically fastest
Speaker 7: selling Dell product or first or fastest to one billion dollars,
Speaker 7: which was an exciting headline, right, But what drove that?
Speaker 7: Why was it so fast selling relative to your server
Speaker 7: history which is rich.
Speaker 8: Yeah, so again we leveraged.
Speaker 9: Like we like to say, our innovation engine is firing
Speaker 9: on all cylinders.
Speaker 8: We run the engine extremely hot.
Speaker 9: And you know, the ninety six eighty is differentiated in
Speaker 9: the marketplace for several reasons. It's the densest six U
Speaker 9: chassis that exists in the industry, and it's one chassis
Speaker 9: to support a bunch of silicon diversity. So GPUs from Nvidia,
Speaker 9: from AMD, from GUDI all in the same design, so
Speaker 9: we have consistent rack scale design for operational simplicity. We've
Speaker 9: worked hard on our networking capabilities to offer Ethernet and
Speaker 9: infiniban for full maximum throughput. So it's really the best
Speaker 9: solution out there for generative AI.
Speaker 7: For how are you using generative aiols at home at work?
Speaker 5: Talk to me about how you use them.
Speaker 9: Yeah, So we're focused on four use cases right now
Speaker 9: on you.
Speaker 5: You as a human, as an executive, as a person.
Speaker 9: Well, I've been using it obviously, Meta has you know
Speaker 9: some great generative AI.
Speaker 8: I've been using it with the.
Speaker 9: Family, on Instagram, on Facebook, on WhatsApp, on messenger. You know,
Speaker 9: the innovation in this space is happening so rapidly. It's again,
Speaker 9: it's one of the most interesting time in human industries,
Speaker 9: and I'm just lucky to be part of it.
Speaker 7: You said something interesting a moment ago, which is about
Speaker 7: the server design accommodate for different GPUs. It's GPU agnostic
Speaker 7: in many ways, and everyone keeps telling me that choice matters,
Speaker 7: you know, the ability to use different AI accelerators. But
Speaker 7: in video is still you know, a clear leader in
Speaker 7: this market. Your job is to have really clear interaction
Speaker 7: with public and private sector customers. How micro focus today
Speaker 7: on Nvidia versus an AMD or an Intel in the
Speaker 7: conversations that you have.
Speaker 9: Look, customers are looking for a drusted advisor, and that's
Speaker 9: who we are. We understand this landscape better than anybody
Speaker 9: out there. We understand the compute, we understand the network,
Speaker 9: we understand the storage, we understand the ecosystem.
Speaker 8: We understand all of the services.
Speaker 9: Our jobs to go in really understand what the customer
Speaker 9: is looking to accomplish and provide the best solution for
Speaker 9: the customer.
Speaker 7: Are the Lewis, who is president of the Infrastructure Solutions
Speaker 7: Group RIGS is more commonly known a Dell. Thank you
Speaker 7: for kicking off Dell technology as well with us live
Speaker 7: here in Las Vegas, Caroline.
Speaker 4: What a great conversation, such a great way to warm
Speaker 4: us up as we think about the infrastructure build out
Speaker 4: and indeed the way in which every executive's using this
Speaker 4: powerful technology.
Speaker 6: The last of.
Speaker 4: The so called Magnificent seven stocks reporting Wednesday in video,
Speaker 4: and boy is it important to the overall stock market.
Speaker 4: It's a make or break moment really in entirety? Is
Speaker 4: it is what the third major player when it comes
Speaker 4: to the Nasdaq one hundred in terms of market capitalization.
Speaker 4: And look, we want to see how much there is
Speaker 4: a commitment to AI chips, to infrastructure build out, to
Speaker 4: buying the company's products. Joining us now for a preview
Speaker 4: of what to expect. Kunjin Savani, who is Bloomberg Intelligence analyst.
Speaker 4: And look, it's not often that we're anticipating revenue growth
Speaker 4: in excess of two hundred percent.
Speaker 6: Again for a company, how can we live up to it?
Speaker 11: Yeah, I mean, look, there has been no lack of
Speaker 11: demand validating signals throughout this last quarter. Its largest customer,
Speaker 11: cloud providers, hyperscalers have all increased their outlook for.
Speaker 10: Their CAPEX spending in AI this year.
Speaker 11: It's supplier, the biggest supplier at t SMC has given
Speaker 11: really positive commentary about AI demand continuing for the rest
Speaker 11: of the year. When you look, there's a couple of
Speaker 11: other tailwinds as in so and entities and other regions
Speaker 11: outside of the US government entities increasing their spending in AI.
Speaker 11: So across the board, we see significant, strong, real demand
Speaker 11: signals coming in for the company, and we feel really
Speaker 11: good about them coming in this solid beat and this.
Speaker 4: Sprint supply as well going to be equally strong, because
Speaker 4: that seems to have been the limitation really for the
Speaker 4: story of Nvidia.
Speaker 11: Yeah, I mean, look, supply has been coming on significantly
Speaker 11: each quarter, and that's what we expect definitely. You know,
Speaker 11: as so far they have executed really well without any
Speaker 11: big miss I would say in terms of supply coming
Speaker 11: on to the numbers at least what the street has
Speaker 11: so at this point, we don't see significant risks. Look again,
Speaker 11: this water we saw h one hundredly times their use
Speaker 11: or close to about nine to ten weeks. They now
Speaker 11: have the Age two hundred in the mix as well,
Speaker 11: and coming over this end of second half of this
Speaker 11: they'll have more products from their black Vel architecture in
Speaker 11: the mix as well, so they have more livers to
Speaker 11: push play with now in order to sort of meet
Speaker 11: those numbers.
Speaker 10: If one other supply change sees any issues.
Speaker 4: Let's talk to geopolitics as well, because you focus in
Speaker 4: on the incredibly powerful chips and overall architecture being on offer.
Speaker 4: But China, for example, big customer, and it doesn't want
Speaker 4: or at least it can't have the most powerful chips
Speaker 4: that in video produces.
Speaker 11: Yeah, I mean, look, I think in the near term
Speaker 11: the geopolitical is in a way I don't want to
Speaker 11: say directly, but could be a positive. Yes, the China
Speaker 11: regional preferences not to use in media chips, but I
Speaker 11: mean you still think about the customers in China.
Speaker 10: They would still if.
Speaker 11: They can, want to use in Vidia chips because they're
Speaker 11: the best out there. So we could see, we could
Speaker 11: anticipate to see some sort of a pull in in
Speaker 11: in fear of more restrictions coming either from China or
Speaker 11: the US, So that could sort of pull in the
Speaker 11: demand a little bit earlier and help in media in
Speaker 11: the near next few quarters.
Speaker 4: What's interesting is we had an AI cow computing startup
Speaker 4: on the show on Friday Core.
Speaker 6: We've raising a.
Speaker 4: Ton of money, but it's mainly working within video here
Speaker 4: and the CEO telling us that everyone wants an in
Speaker 4: video chip. Yes you can talk about MD, Yes you
Speaker 4: can talk about some of the competitors in the market,
Speaker 4: but ultimately that's where the demand is. Do you agree,
Speaker 4: is that anyone who's starting to show the competition angle
Speaker 4: able to muscle in on some of the market share?
Speaker 10: I mean, like you name it.
Speaker 11: AMD is sort of the only other real viable merchant
Speaker 11: GPU silicon provider right now, but Nvidia still has the
Speaker 11: lion shared and we don't see that changing significantly this
Speaker 11: year or.
Speaker 10: Next fiscal year.
Speaker 4: What has been, of course, what are the key bottlenecks
Speaker 4: for many in terms of the overall power of generative
Speaker 4: AI has been energy and it's been supply side to chips.
Speaker 4: How much is that something we're likely to hear discussed
Speaker 4: on the call analyst consideration that really this is now
Speaker 4: the one that needs fixing ultimately, the impact on the
Speaker 4: environment or indeed impact on the cost of energy.
Speaker 10: I mean, it has become a rising concern across the board.
Speaker 11: I don't think we'll hear a lot about that in
Speaker 11: inn Media calls specific I think we hear a lot
Speaker 11: about in its customers calls.
Speaker 10: To be honest at this point, because.
Speaker 11: Even if a real magnitude increase in power, every generation
Speaker 11: of in Media chips, their total TCO continues to get
Speaker 11: better and the efficiency continues to get better.
Speaker 6: We thank you.
Speaker 4: It's going to be a busy week for you. Conjiin
Speaker 4: Servanni on the show from Botomberg Intelligence. All eyes on
Speaker 4: in video and its settings later in the week. But
Speaker 4: coming up, we've got to focus on what's happening in
Speaker 4: the here and now. It's Tesla ploys in Limbo still
Speaker 4: a says, job cuts loom over at the company. We'll
Speaker 4: discuss really the details of the anxiety that's still gripping
Speaker 4: the electric carmaker's workforce.
Speaker 6: That's next.
Speaker 3: This is Glomod Technology.
Speaker 6: Time now for talking tech. First up, open AI.
Speaker 4: It's working to hold the use of the voice known
Speaker 4: as sky in its audible version of chatchoopt after users
Speaker 4: have noticed it sounds remarkably similar to actress Scarlett youj Hansson.
Speaker 4: Now in a blog post, open Ai said the voice
Speaker 4: one of five available, Remember, wasn't chosen to be an
Speaker 4: imitation of the Hollywood actress, and the voices are a
Speaker 4: new feature, of course of chatchoop PT, introduced in GBT
Speaker 4: four to O, which debuted.
Speaker 6: Earlier in the month. We'll have so much more on
Speaker 6: the story later in the show.
Speaker 4: Meanwhile, cyber Arc Software has agreed to buy cybersecurity firm
Speaker 4: Vinaffi for a one and a half billion dollars in
Speaker 4: cash and stock.
Speaker 6: Ven After You Act by pe Fern Toma Bravo.
Speaker 4: Focuses on machine identity management, the clients ranging from the
Speaker 4: US health insurers to airlines to card issuers and banks now.
Speaker 4: According to cyber Arp, the acquisition is expected to close
Speaker 4: in the second half.
Speaker 6: Of twenty twenty four.
Speaker 4: It's going to add one hundred and fifty million dollars
Speaker 4: in an annual recurring revenue. Phlust by dance it overtakes
Speaker 4: buydo for Ai Chapbot dominance released in August. Downloads of
Speaker 4: the chappot Dobo surpassed its rivals and now have more
Speaker 4: regular monthly users in iOS in China now. That is
Speaker 4: according to the data from cincintaw. The TikTok parent company
Speaker 4: has made a priority in catching up with artificial intelligence,
Speaker 4: and its chatbot is becoming the most downloaded AI chapbot
Speaker 4: on Apple with over nine million downloads today.
Speaker 6: And shares a keyword.
Speaker 4: Studios rose the most since when public in twenty thirteen
Speaker 4: after the company disclosed that is in advanced takeover talk
Speaker 4: to the EQUT Group and could value the company in
Speaker 4: over two and a half billion dollars now. The Dublin
Speaker 4: based studio provides game development, audio art services to the
Speaker 4: gaming industry, and it's worked on titles including Fortnite and
Speaker 4: Call of Duty series. Now talk about what's been happening
Speaker 4: over the past month in Elon Musk's plans to slash
Speaker 4: at least ten percent of Tesla's workforce, CEO still isn't
Speaker 4: done yet, leaving many employees basically in fear of.
Speaker 6: When they might be cut next joining us.
Speaker 4: The regular down in the latest news is re makes
Speaker 4: Crape Trudel and Greg I can only imagine how anxiety
Speaker 4: inducing it is to just be waiting for that letter,
Speaker 4: that email.
Speaker 12: Yeah, and it is a case that this is just
Speaker 12: you know, sort of a week to week thing, day
Speaker 12: to day thing for employees of you just don't know
Speaker 12: when sort of that tap on the shoulder or in
Speaker 12: the case of Tesla, the as we put it in
Speaker 12: the story today, the dear employee email. You know, employees
Speaker 12: getting these messages that don't address them by name, that
Speaker 12: you know, reveal that they are leaving the company, that
Speaker 12: they're being let go. This is just something that's you know,
Speaker 12: continued to roll for weeks and weeks now, and we
Speaker 12: report exclusively in this story that it is something that
Speaker 12: is expected to continue at least through June. So this
Speaker 12: is a company that, as we know, has been going
Speaker 12: through a lot of tumult and some of this has
Speaker 12: very much been self inflicted and sort of raises questions
Speaker 12: about you know, execution in the midst of this, you know,
Speaker 12: sort of cloud hanging over your head every day if
Speaker 12: you're working at Tesla.
Speaker 4: I mean, morale must be taking a hit, Craig, and
Speaker 4: I'm interested. And also the confusion that has rained around
Speaker 4: the Supercharge team, for example, the fact that that was
Speaker 4: acted and then seemingly brought back in some sort of guys,
Speaker 4: how committed to overall job cuts does a company seem
Speaker 4: to be.
Speaker 12: I think that particular aspect of these job cuts has
Speaker 12: been really disruptive and also just you know, really raised
Speaker 12: a lot of questions about what the heck is going
Speaker 12: on here because it is kind of a crown jewel
Speaker 12: within the company. It may or may not have been
Speaker 12: necessarily making a ton of money for the company directly,
Speaker 12: but the fact that they were able to offer such
Speaker 12: a superior charging ex experience to other charging networks and
Speaker 12: even able to get you know, the rest of the
Speaker 12: industry to jump on board with their plug design. I
Speaker 12: mean that just was a show of force on the
Speaker 12: part of the company last year that they were literally
Speaker 12: able to get the entire industry to say, you know what,
Speaker 12: this is the better plug. We'd like to be able
Speaker 12: to use Tesla's network, and you know, the industry is
Speaker 12: still pursuing that in spite of the fact that you know,
Speaker 12: some of these companies have not been able to get
Speaker 12: anybody on the phone who runs that part of the business,
Speaker 12: which is you know, really you know an issue for
Speaker 12: these companies given the bet that they're making here, Greg.
Speaker 4: Let's play Devil's advocate and try and focus in who's
Speaker 4: still passionate, who's still working, who's still infused to be
Speaker 4: building over at Tesla because it is still for many
Speaker 4: a completely earth altering kind of a business to be
Speaker 4: playing a part in.
Speaker 6: Is anyone still feeling galvanized?
Speaker 12: I think Musk is actually interestingly trying to push that
Speaker 12: just in the last few days on X. You know,
Speaker 12: he's engaging with people who are sort of, you know,
Speaker 12: calling out the idea that the media was predicting Twitter's demise,
Speaker 12: you know, when he came into that company and slash
Speaker 12: its workforce, and a lot of his you know fans
Speaker 12: on there kind of you know speaking to this idea
Speaker 12: of oh, you know, everything's fine, nothing has gone wrong.
Speaker 12: I think you know that that is you know, an
Speaker 12: interesting thing for him to be sort of engaging with
Speaker 12: just in the last few days. And I think, you know,
Speaker 12: may or may not be a sort of nod to
Speaker 12: this idea that there are very you know, similar you
Speaker 12: know tropes showing up in the way that these job
Speaker 12: cuts are being reported, you know, both internally and externally
Speaker 12: among among the media. But I would just note that
Speaker 12: this is not just the media reporting this. This is
Speaker 12: you know, current or former Tesla employees describing this sort
Speaker 12: of state of affairs at the moment.
Speaker 4: Yeah, taking to LinkedIn to really talk about how painful
Speaker 4: this is as an individual, how this affect your family
Speaker 4: and your mental health.
Speaker 6: Let's just think about whether it affects.
Speaker 4: Demand, though, Craig, because for many this does impact the brand.
Speaker 12: Yeah, and I think there's a very interesting question about,
Speaker 12: you know, whether or not the company is able to
Speaker 12: execute in spite of all this. We you know, within
Speaker 12: this story speak to this idea that you know, the
Speaker 12: sales staff is being affected. There were some workers that
Speaker 12: you know, flag the idea that, you know, because they
Speaker 12: were cut. They had a real concern about whether or
Speaker 12: not that was going to have an effect on, you know,
Speaker 12: the ability of the company to to you know, close deals,
Speaker 12: to bring the customer along the journey of you know,
Speaker 12: coming to grips with spending tens of thousands of dollars
Speaker 12: on a Tesla as opposed to you know, the growing
Speaker 12: number of options that are now in the EV market,
Speaker 12: and so you know, that is really going to be
Speaker 12: something to watch when this company reports second quarter deliveries
Speaker 12: because it also the you know, Musk set a high
Speaker 12: bar and said, you know what, we think the second
Speaker 12: quarter will be much better than the first quarter. The
Speaker 12: first quarter was dismal, and whether or not you know
Speaker 12: they can execute is really going to be important.
Speaker 4: Rikib and I always looking for the data. Crodradelle, thank
Speaker 4: you for the insights. It's a great read. Welcome back
Speaker 4: to Blue Meg Technology. I'm Carolyn Hide in New York,
Speaker 4: and we're getting you a check on these markets which
Speaker 4: are macro fueled in many ways. We are still digesting
Speaker 4: a lot of FED speak at the moment. We're anticipating
Speaker 4: quite on the data front, more on the speaking front,
Speaker 4: and of course a desire to be still buying into
Speaker 4: stocks at the moment if you think the FED might
Speaker 4: cut going into the rest of the year.
Speaker 6: And that's that one hundred up six ten percent, record high,
Speaker 6: record high, not record high.
Speaker 4: We're at a record high when it comes to all
Speaker 4: country world In next we're seeing powering higher across the world,
Speaker 4: up three tenths of a percent. Sure, Europe as it
Speaker 4: closes is not on a record high for the stock
Speaker 4: six hundred, but certainly the SMP, the NASDAC and indeed
Speaker 4: the dower all at record highs today. I'm looking at
Speaker 4: Bitcoin up one point percent, the moon music is positive
Speaker 4: despite still some of those geopolitical risks.
Speaker 6: Let's move on and look at some of the individual
Speaker 6: companies that we're shining a light on.
Speaker 4: Because Tesla off by one point seven percent, we were
Speaker 4: just hearing some of the concerns around ongoing hit to
Speaker 4: morale and of course job cuts still being tested and executed.
Speaker 4: Over at the business, we're looking at what's happening though
Speaker 4: with Wigs twenty one percent. Look, earnings is still happening.
Speaker 4: This is a web platform company. It's best days since
Speaker 4: March twenty twenty as it manages to blow away in
Speaker 4: terms of analyst expectations and also raises it's fully of forecasts.
Speaker 4: In Nvidia up two point three percent, this is the
Speaker 4: name we're all waiting for when it comes to earnings.
Speaker 4: It's coming out May twenty second after the bell and look,
Speaker 4: there's zero analysts that have a cell rating on the stock.
Speaker 4: To spite up more than five hundred percent since the
Speaker 4: beginning of twenty twenty three. The bets are on still
Speaker 4: when it comes to artificial intelligence and still managing to
Speaker 4: weather those geopolitical.
Speaker 6: Tensions when it comes to China.
Speaker 4: Let's dig into in Nvidia, into AI, how we're using
Speaker 4: it in our world, in our life. Every in Las Vegas,
Speaker 4: because it's Dell's World conference, we await the news coming
Speaker 4: from Dell's CEO keynote speech later to ed you are
Speaker 4: over there and you've got a key guest.
Speaker 7: Yeah, we have a key guest, and that is president
Speaker 7: and prison analyst at Creative Strategies, Caroline A Millionacy. And
Speaker 7: you have so much experience covering consumer technology, fifteen years
Speaker 7: of it. If you don't mind me saying, this is
Speaker 7: actually my first del tech World I'm sure it is
Speaker 7: not your first. But everyone that I bumped into at
Speaker 7: the airport on the flight that phoned me last week
Speaker 7: was like, this is actually very big.
Speaker 5: The stakes are very high here.
Speaker 7: Also in the enterprise context, Why is that this time around?
Speaker 2: Because I don't think that we heard the word enough
Speaker 2: this morning. So let's say AI is here, and every
Speaker 2: company is trying to understand how they can rethink their
Speaker 2: business to take advantage of AI, and because of that
Speaker 2: they need a good partner.
Speaker 7: We will talk about AIPC, but you know the story.
Speaker 7: Frankly with generative AI is Nvidia selling the H one
Speaker 7: hundred generation AI Accelerator high Performance GPU to the HYPERSCALEISM
Speaker 7: meta and I don't see much evolution beyond that, do you.
Speaker 2: It's like a duck, right, but it is moving and
Speaker 2: you don't see the feet paddling under the water. And
Speaker 2: I think that's what the likes of Dell are doing
Speaker 2: for enterprises is the day to day is out to
Speaker 2: really take advantage of AI to refining their business, do
Speaker 2: better productivity, or reach people that they haven't reached before.
Speaker 6: And that requires attention on the day to day.
Speaker 2: So thinking about the role that Dell can play as
Speaker 2: a trusted partner and supplier ISRAELI help optimize workloads and
Speaker 2: take advantage of AI in the right way, whether it
Speaker 2: is in the cloud or a DG.
Speaker 7: And I suppose Jensen Wog and Nvidia, he's not been
Speaker 7: selling anything at any point in his career to the
Speaker 7: public sector the micro level. I grew up in a
Speaker 7: Dell household, which Dell desktops. I broke many of them,
Speaker 7: playing Age of Empires on cd ROM. When I think AIPC,
Speaker 7: I keep hearing it's coming. I don't really know in
Speaker 7: my mind or my heart that I know what an AIPC.
Speaker 2: Is, and I think most consumers don't. Right, for me,
Speaker 2: the really true selling proposition of AIPC is the idea
Speaker 2: that you're lowering the barrier vent for people to interact
Speaker 2: with technology. And so because of gener cy AI, everybody
Speaker 2: can become a power user, taking away the friction that
Speaker 2: we still have on the PC. Then maybe we don't
Speaker 2: have any more on their phone.
Speaker 5: I don't know that the consumer's ready.
Speaker 7: You know, often when a new technology comes to market,
Speaker 7: it's expensive and it goes down from there, and I wonder,
Speaker 7: like it is Dell, the OEM or whichever chip maker
Speaker 7: it is. You know, there are several of them eyeing
Speaker 7: this space. Maybe do they eat the costs to make
Speaker 7: it more palatable.
Speaker 5: For the consumer to try it out?
Speaker 2: You know, I think they're with AI their two parts, right,
Speaker 2: there's the cost of the hardware, remembers the cost of
Speaker 2: a service, and so as far as eating their price
Speaker 2: or the part of their return is both on the
Speaker 2: Microsoft on copilot as well as it is on the
Speaker 2: chip maker and OEMs. What is good is that we're seeing,
Speaker 2: for instance, the likes of Qualcom have a broader set
Speaker 2: of offering that it's the main market, the mainstream market,
Speaker 2: and the early adopters, our consumers led already. No, we
Speaker 2: need to tell an honest story of what AI is
Speaker 2: and what real AI is when real AI is going
Speaker 2: to hit the market, because this is a marathon, it's
Speaker 2: not a sprint. It's going to take years to actually
Speaker 2: see the full value of AI.
Speaker 6: And Karlyn, can you explain to me there for.
Speaker 4: Why I need an AI PC or AI at the
Speaker 4: edge rather than just using an app, the latest pot,
Speaker 4: the latest chatchipt competitor.
Speaker 2: There are a couple of things there, AI working on
Speaker 2: the actual exchange between you as a consumer.
Speaker 6: Or user and the PC and the hardware.
Speaker 2: But then there's also, from a privacy perspective, the idea
Speaker 2: that evving AI on d edge allows you not to
Speaker 2: send your data to the cloud.
Speaker 5: So there's a.
Speaker 2: Privacy play, and there's a latency play, and to be honest,
Speaker 2: there's a costplay that it comes comes in, especially from
Speaker 2: a services perspective, right that running all these workloads in
Speaker 2: the cloud is going to be expensive and somebody is
Speaker 2: going to have to pay for the investment that the
Speaker 2: vendors are making.
Speaker 4: At the moment, it's being sucked up by the hyperscalers
Speaker 4: and the companies that they're helping offer some of the
Speaker 4: free access to compute.
Speaker 6: Carolina.
Speaker 4: I'm interested in particularly your role because I love the
Speaker 4: turn of phrase that you said everyone can become a
Speaker 4: power user. When you're using AI, you are quite literally
Speaker 4: a user of power as well, and you're already focusing
Speaker 4: on environmental social governance strategies for some of these tech players.
Speaker 4: Is energy becoming the number one thing that people are
Speaker 4: starting to.
Speaker 2: Talk about one hundred percent? And I think that we
Speaker 2: need to talk more about it because we hear a
Speaker 2: lot about AI helping sustainability, but AI comes at a
Speaker 2: cost as well from a sustainability perspective, and so that
Speaker 2: intersection between the energy consumption that AI will require and
Speaker 2: also the benefit that AI will bring in optimizing like
Speaker 2: the grid as an example, is something that we need
Speaker 2: to talk more about.
Speaker 7: Krolyn Adell is celebrating its fortieth year. This is a
Speaker 7: really important event. But are they celebrating it in a
Speaker 7: position of strength in this market?
Speaker 6: I think they do.
Speaker 2: You know, as a company, they're very well trusted, as
Speaker 2: I said, by the customers and partners. They have really
Speaker 2: helped through digital transformations for years. They really did well
Speaker 2: during COVID helping their customers through a very tough period.
Speaker 2: And as a company, they have great leadership. I think
Speaker 2: when you have a founder that is still driving the
Speaker 2: day to day of a company, the things are different.
Speaker 2: And they are strong on ESG as well. As Caroline said,
Speaker 2: I care a lot about D and I and sustainability,
Speaker 2: and they are a great company in a better respect
Speaker 2: doing great work.
Speaker 7: Carolina Milanacy Creative Strategies President and principle analyst, and I
Speaker 7: actually took a lot from that that I think I
Speaker 7: can carry over into the conversation with Michael Dell, Jensen,
Speaker 7: Joe and Bill McDermott later today.
Speaker 5: Caroline back to you.
Speaker 4: In New York, So can I wait for that conversation.
Speaker 4: It was a great one with Carolina. Meanwhile, coming out,
Speaker 4: we've got some more conversing to do about Grayscale. The CEO,
Speaker 4: Michael sonnershein departing the company after helping build it into
Speaker 4: the world's largest scrypto asset manager.
Speaker 6: Details next.
Speaker 4: Meanwhile, let's have a quick look at instacart to break
Speaker 4: There is a big conference going on in Boston as well.
Speaker 4: The JP Morgan Tech Conference and Instacart. The CFO has
Speaker 4: been speaking and looks as though Emily Reuter not having
Speaker 4: the best of implications on the stock. Right now, we're
Speaker 4: down by more than five percent. They're saying, basically they
Speaker 4: do not expect to exceed their overall total transaction volume.
Speaker 4: Their gross transaction volume guidance will not be exceeded. It
Speaker 4: seems to be saying they want to be able to
Speaker 4: deliver it though on their ebit DAR with some flexibility.
Speaker 6: So perhaps a little bit of nervousness creeping in there.
Speaker 6: From New York.
Speaker 13: From Las Vegas, this is William bag Technology.
Speaker 6: Let's talk about some roles changing.
Speaker 4: After helping build gray Scale into the world's largest crypto
Speaker 4: asset manager, the CEO Michael Sonnenshein is stepping down, joining
Speaker 4: us with the latest of Blomberg Shnali Bassak an interesting
Speaker 4: player coming to the four.
Speaker 6: To be the CEO.
Speaker 4: But in the meanwhile, I mean it just says to
Speaker 4: pursue other interests.
Speaker 6: Why is Michael stepping down?
Speaker 14: This was certainly an interesting piece of news. Of course,
Speaker 14: we know that Michael Sonnshine had helped Grayscale bring the
Speaker 14: Bitcoin trust into ETF form so it was a surprise
Speaker 14: here to see him stepping down. According to the Wall
Speaker 14: Street Journals reporting, we have known that they were looking
Speaker 14: at gray Scale for a successor a new CEO since
Speaker 14: the end of last year, so before the ETF was
Speaker 14: even approved. In the statement in and of itself, you
Speaker 14: do have a Michael Sondenschein saying that the crypto asset
Speaker 14: class is at an important inflection point and this is
Speaker 14: the right moment for a smooth transition. So who's the
Speaker 14: transition to your point, A Golden Sacks alumni who was
Speaker 14: very senior in the leadership team running strategy at the
Speaker 14: asset and wealth manager which is quickly approaching a three
Speaker 14: trillion dollar assets under supervision over there over at Goldman Sachs.
Speaker 14: So you had Michael Sonenschriink come into first institutionalize gray
Speaker 14: Scale and the bitcoin business. But now you have an
Speaker 14: even more institutional asset manager coming in that has that
Speaker 14: kind of breadth of scale at a senior level at
Speaker 14: a large asset management FIR.
Speaker 4: Because how is ultimately gray Scale managing to fare against
Speaker 4: the competition. Still is the largest, but it's quite expensive
Speaker 4: in comparison to some of the other ets.
Speaker 14: So it's interesting they're launching new products, so it'll be
Speaker 14: interesting to see what customers flocked to at the end
Speaker 14: of the day. Their bet, which paid out at the end,
Speaker 14: was that even with some attrition, the higher fee structure
Speaker 14: than some of the newer products here would be worth
Speaker 14: it for them at the end of the day because
Speaker 14: their asset base is just so large. And of course,
Speaker 14: since the ETFs had launched, for a significant period of
Speaker 14: time they did experience net app flows, but more recently
Speaker 14: they have achieved net inflows on some days since we've
Speaker 14: seen the ETF first launch.
Speaker 4: Now this is all about the institutionalization of crypto. There
Speaker 4: is one key naysayer that remains in the market. That
Speaker 4: is Jamie Diamond, even if JP Morgan more broadly is
Speaker 4: looking at the underlying technology and offering various crypto assets.
Speaker 6: But we understand Jamie Diamond is currently.
Speaker 4: Taking to the stage at his own tech conference happening
Speaker 4: over in Boston.
Speaker 6: It's got a lot to talk about when it comes
Speaker 6: to tech and AI for example, he sure does.
Speaker 14: And today's the company's own investor day that is happening,
Speaker 14: and of course investors are reading the tea leaves on
Speaker 14: how JP Morgan will invest moving forward. We just heard
Speaker 14: from their investment banking heads who said that they're about
Speaker 14: to invest across the entire venture ecosystem. So you have
Speaker 14: them really doubling down on their client base that is
Speaker 14: relegated to new technologies, and in and of their own
Speaker 14: right too, they're talking about this idea at the asset
Speaker 14: management side as well that every new hire we'll get
Speaker 14: training an AI. Both sides of the business really pitching
Speaker 14: how much these investments in technology are increasing productivity per worker.
Speaker 14: They have things down to the specific amount of deals
Speaker 14: and volumes that you will get more and say, for example,
Speaker 14: middle market banking from this use of technology, and in
Speaker 14: the asset manager as well. They kind of delineated here
Speaker 14: the junior level employees and the senior level employees and
Speaker 14: the different ways they're using AI to make those people's
Speaker 14: jobs more efficient.
Speaker 4: It's going to be fascinating. The investigation Investiday upon us.
Speaker 4: We'll see what he has to say, should not invest side.
Speaker 4: We thank her for taking us through all the movers
Speaker 4: and shakers when it comes to well TRADFI and perhaps
Speaker 4: slightly newer.
Speaker 6: Five.
Speaker 4: Let's talk about also what's been mentioning around artificial intelligence,
Speaker 4: and open AI has said it's working to pause the
Speaker 4: use of the sky voice from as updated GPT four.
Speaker 4: Oh and that's his users seem to be claiming that
Speaker 4: it sounded rather too like the actress Scarlet at you're Hansen.
Speaker 4: Let's bring in blogs, Rachel mets for more, because there
Speaker 4: is a lot to be digesting when it comes to
Speaker 4: open ai. As always, Rachel, let's start with perhaps, is
Speaker 4: this is stunt in some way?
Speaker 6: Is this actually moving on real pushback? I mean, at one.
Speaker 4: Point we had Sam Altman basically posting saying her we
Speaker 4: will therefore anticipate in that the voice sounded rather like
Speaker 4: Scarlett your hadson.
Speaker 15: Yeah, I mean so this is one of several voices
Speaker 15: that they have in chat GBT in the app that
Speaker 15: they launched last year. And I mean, yeah, you could
Speaker 15: say it does have a bit of a her sort
Speaker 15: of voice too. It I mean, it's a friend, it's
Speaker 15: a friendly sounding, female sounding voice. I th a lot
Speaker 15: of people when an Opening Eye had its most recent
Speaker 15: event and a debut its new model started to say
Speaker 15: that they started to think that it sounded a little
Speaker 15: bit like that. It's one of these of these several
Speaker 15: voices and they all sound kind of different.
Speaker 4: Yeah, and it's worth saying that Open AI says, this
Speaker 4: isn't Scarling and Hansen. This is a totally different actress
Speaker 4: that's been based upon. But we all think about that
Speaker 4: movie where of course someone falls in love with a
Speaker 4: female artificial intelligence and product, but Rachel. What's also happening
Speaker 4: is quite a bit of tumult under the surface. You're
Speaker 4: reporting that, of course, a super Alignment team disbanded after
Speaker 4: the two key sectors that left led it have left,
Speaker 4: and there's also a lot of talk about ultimately the
Speaker 4: pay of certain people over an apen AI if they
Speaker 4: do and do leave.
Speaker 15: Yeah, there's a work going on there this past week,
Speaker 15: so the super Alignment team, to be clear, these are
Speaker 15: people that are thinking about how they would protect people
Speaker 15: against a superhuman type of AI. This is something that
Speaker 15: does not exists at this point in time, So let's
Speaker 15: just be super clear about that that that's what they're
Speaker 15: working on. Opening I has multiple safety teams. This was
Speaker 15: one of them and it was announced last year Ilia
Speaker 15: Seskper and Yan Leek they were the two leaders and
Speaker 15: Illy left and then Yan left. This all happened last
Speaker 15: week in really quick succession, and in the wake of
Speaker 15: that opening, I said, you know what, we're going to
Speaker 15: be folding. We're dissolving the team essentially and folding the
Speaker 15: people and the stuff that they were working on into
Speaker 15: other teams. As for a compensation, yeah, there's there's definitely
Speaker 15: been some talk about what happens when people leave Open AI,
Speaker 15: if they can talk about their experiences there, and if
Speaker 15: that if they may have some of their compensation taken
Speaker 15: away due to that, well.
Speaker 6: I know they'll continue to report.
Speaker 4: I think many feel that well, sometimes they're sucking up
Speaker 4: all the oxygen in the room where it comes to
Speaker 4: their products, and sometimes of course the teams who are
Speaker 4: building it. But Rachel Mets, we thank you for keeping
Speaker 4: us clean on all things Open AI and what actually
Speaker 4: is happening from a proper perspective there too.
Speaker 6: There it goes.
Speaker 4: Yesterday, Jeff Bezos's Blue Origin successfully relaunching its space tourism
Speaker 4: business sixty miles into the sky.
Speaker 6: This flight is Blue Orangin's first tourist.
Speaker 4: Mission on New Shepherd since all the way back to
Speaker 4: August twenty twenty two, turning us to break down why
Speaker 4: and what they've got right this time? Is Blue most
Speaker 4: law and grush, and it was put on ice for
Speaker 4: a while after some technical issues, luckily when there weren't
Speaker 4: actually traveling tourists on board.
Speaker 1: Right, It's a site we haven't seen in a while.
Speaker 1: It's been a nearly two year hiatus for space tourism
Speaker 1: missions for Blue Origin, as you mentioned, last one was
Speaker 1: in August of twenty twenty two, and then the following
Speaker 1: month in September, they had an issue on one of
Speaker 1: their flights mid flight. Luckily no one was on board
Speaker 1: that trip, but they did have an engine failure that
Speaker 1: caused them to put flights on pause while they figured
Speaker 1: out what went wrong.
Speaker 4: And let's talk about what went wrong and what therefore
Speaker 4: goes right now, because the aim is to have a
Speaker 4: bigger rocket. The aim is to not just be doing
Speaker 4: tourism some sixty miles up right.
Speaker 1: So, as Blue Origin investigated, they found there was an
Speaker 1: issue with an engine nozzle that caused the rocket to
Speaker 1: veer off course. They spent the majority of last year
Speaker 1: not launching, trying to figure it out, working with the
Speaker 1: FA to redesign that nozzle and to put corrective actions
Speaker 1: in place, and then they ultimately did return to flight
Speaker 1: in December, but that was also an unproved flight, so
Speaker 1: this is the first time they actually put people on board.
Speaker 1: But yes, this is just a small part of Blue
Speaker 1: Origins overall strategy. They have plans to launch an even
Speaker 1: bigger rocket called New Glen that will go to orbit,
Speaker 1: you know, later this year. That rocket has been delayed
Speaker 1: quite a few times, so it still remains to be
Speaker 1: seen if they'll meet that deadline. But yes, there are
Speaker 1: even grander ambitions on the horizon.
Speaker 4: And maybe taking some competition to SpaceX, which really dominates
Speaker 4: in this field. It's notable that there's another delay Boeing
Speaker 4: Zone spacecraft being delayed, pushed back to what may twenty
Speaker 4: fifth now, Yes.
Speaker 1: So we are on Starliner watch Boeing Space Taxi. The
Speaker 1: CST one hundred Starliner, which is meant to transport NASA
Speaker 1: astronauts to and from the International Space Station, is supposed
Speaker 1: to be conducting its first crude test flight, so sending
Speaker 1: two NASA astronauts to the ISS. And unfortunately that launch
Speaker 1: has been a moving target. In fact, we were anticipating
Speaker 1: it happening as early as tomorrow, but Boeing found an
Speaker 1: helium leak that they are trying to figure out whether
Speaker 1: or not they can fly with it, and the current
Speaker 1: target time is Saturday, but again this is an early
Speaker 1: crude test flight, so it could possibly move again.
Speaker 4: And it just reminds us a how difficult this is be,
Speaker 4: how expensive it is as well. And to that point,
Speaker 4: what is the ultimate goal, what sort of marketshed GDP
Speaker 4: of these companies trying to build, create, or just take
Speaker 4: a chunk out of.
Speaker 1: I think it's really just seeing if there is a
Speaker 1: market for people who want to go to space. I mean,
Speaker 1: what Blue Origin is doing is slightly different for what
Speaker 1: Boeing is doing. Boeing has a NASA contract and so
Speaker 1: they have kind of they're on the hook for sending
Speaker 1: NASA astronauts to the International Space Station. With Blue Origin,
Speaker 1: you know, they're basically tapping into this new growing market
Speaker 1: of whether you know, wealthy tourists going to space and back.
Speaker 1: And you know, ultimately they could try and scale it
Speaker 1: up when new Glenn comes into the fold, but you know,
Speaker 1: it really is early days and as we've seen, one
Speaker 1: small engine park can easily take the vehicle out of
Speaker 1: commission for over a year or so. So it just
Speaker 1: remains to be seen if this is an actual market
Speaker 1: that is lucrative, but we're finding out as the years progress.
Speaker 4: One small nozzle issue, many months on ice Lang Grush
Speaker 4: always on spacewatch. We thank you so much for it. Meanwhile,
Speaker 4: we're always on share watch for you. We just want
Speaker 4: to shine light what's happening with JP Morgan at the moment,
Speaker 4: Shares under pressure at the moment.
Speaker 6: This as well.
Speaker 4: We've heard from Jamie Diamond, the CEO. It's the investor day.
Speaker 4: We're just talk talking about it with Shinelie Bassak. He's
Speaker 4: sending some declines after Jamie Diamond just talked about how
Speaker 4: expensive it would be basically to buy back stock, and
Speaker 4: he's saying he's not going to buy back a lot
Speaker 4: of stock these prices. His prices dip a bit on
Speaker 4: the suggestion that there'll be less demand for buybacks. Meanwhile,
Speaker 4: sticking with well the stock market more broadly and some news,
Speaker 4: turning to breaking news from the New York Times, Ivan
Speaker 4: Bowski has died now.
Speaker 6: He inspired the Gordon Gecko character in the film Wall Street.
Speaker 4: He made a lot of money from inside of trading,
Speaker 4: and he went to prison for his crimes.
Speaker 6: He was eighty seven.