WEBVTT - OpenAI’s COO Lightcap Talks GPT-5 Launch 0:00:02.759 --> 0:00:13.760 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.800 --> 0:00:17.599 from coast to coast with Caroline Hide in New York 0:00:17.880 --> 0:00:21.040 and Vla Loow in San Francisco. 0:00:22.520 --> 0:00:23.919 This is Bloomberg Tech. 0:00:23.920 --> 0:00:27.560 Coming up, Open Ai releases GPT five. We'll discuss how 0:00:27.560 --> 0:00:30.080 the rollout is going in the enterprise opportunity with Open 0:00:30.120 --> 0:00:34.239 Ai COO Brad Lightcap, plus the race for AI data centers. 0:00:34.240 --> 0:00:37.200 It heats up with Softbak making moves in Ohio, while 0:00:37.240 --> 0:00:40.839 Meto announces financing for its expansion in Louisiana. And we 0:00:40.920 --> 0:00:44.280 keep on these tech earnings. We'll speak with CEOs and Twilio, 0:00:44.479 --> 0:00:48.000 Chime and Acami. The first we return to the public markets. 0:00:48.159 --> 0:00:50.720 We're a new record high for the Nasdaq one hundred, 0:00:50.800 --> 0:00:52.640 so we managed to push on higher, but I'm looking 0:00:52.640 --> 0:00:55.800 at individual stocks that help contribute to the moves. Tesla 0:00:55.800 --> 0:00:58.160 actually a decent points perspective higher. 0:00:58.280 --> 0:00:59.720 We're up three point three percent. 0:01:00.120 --> 0:01:03.440 Breaking news come Foring one and only Ed Ludlow about 0:01:03.480 --> 0:01:06.679 Dojo the future of the supercomputer. Shares actually managed to 0:01:06.680 --> 0:01:08.720 take high, even though we see that they're wrapping that 0:01:08.840 --> 0:01:11.720 down focusing more on using third parties. We'll get to 0:01:11.800 --> 0:01:14.000 that story a little bit later. I'm looking at Intel 0:01:14.000 --> 0:01:16.440 off by two ten percent. Have been trading higher on 0:01:16.520 --> 0:01:19.560 the pushback from the CEO saying he has committed the 0:01:19.680 --> 0:01:21.760 US and National Security. Will get to that in a 0:01:21.800 --> 0:01:24.520 moment as well, But first we want to really dive 0:01:24.560 --> 0:01:25.720 into the world. 0:01:25.560 --> 0:01:26.520 Of data centers. 0:01:26.959 --> 0:01:30.959 SoftBank taking ownership of fox Conn's EV plant in Ohio 0:01:31.040 --> 0:01:34.120 in order to kick SAT, the Japanese company's five hundred 0:01:34.200 --> 0:01:37.760 billion dollar Stargate data center project with open Ai and Oracle. 0:01:38.000 --> 0:01:41.040 Bloomberg's Peter Elstrom joins us for Ashleson reporting that Ed 0:01:41.160 --> 0:01:43.959 Ludlow was really driving before he got on his flight 0:01:44.000 --> 0:01:48.200 to the United Kingdom. Peter, it's an interesting deal. Basically 0:01:48.200 --> 0:01:51.200 soft Bank kind of wanting to get fox Conn more 0:01:51.200 --> 0:01:53.720 integrated with its manufacturing part of this. 0:01:55.080 --> 0:01:57.760 Yeah, this is kind of a mysterious deal. So fox 0:01:57.800 --> 0:02:00.600 Cohn made this announcement a couple days ago. They said 0:02:00.600 --> 0:02:04.120 they were selling this facility to an entity called Crescent Dune, 0:02:04.120 --> 0:02:06.920 that nobody knew who it was. So we've discovered that 0:02:07.000 --> 0:02:09.959 in fact, at SoftBank they had been partners in the past. 0:02:10.280 --> 0:02:12.400 Soft Bank is going to own the facility, and then 0:02:12.480 --> 0:02:15.079 soft Bank and fox Con together are going to work 0:02:15.080 --> 0:02:18.040 on these AI developments. They're probably going to build AI 0:02:18.120 --> 0:02:20.680 servers in that plant to be able to use throughout 0:02:20.720 --> 0:02:23.120 the Stargate venture that they're supposed to be building in 0:02:23.160 --> 0:02:25.520 the US. As we've talked about a few times before, 0:02:25.919 --> 0:02:29.320 open Ai and soft Bank announced that Stargate venture with 0:02:29.440 --> 0:02:32.920 President Trump alongside them, talking about spending one hundred billion 0:02:32.960 --> 0:02:35.399 dollars immediately at the beginning of the year or five 0:02:35.480 --> 0:02:37.960 hundred billion dollars over the long term. But it's been 0:02:38.040 --> 0:02:39.880 kind of slow to roll out in a number of 0:02:39.919 --> 0:02:42.760 different cases. So this deal is aimed at giving them 0:02:42.760 --> 0:02:45.200 a bit of a kickstart so they can move ahead 0:02:45.200 --> 0:02:47.720 with some of those projects, be able to build the 0:02:47.760 --> 0:02:49.920 AI servers, and then actually be able to build the 0:02:50.000 --> 0:02:51.880 data centers over the long term. 0:02:51.919 --> 0:02:55.280 It's interesting this pivot from a US macro perspective from 0:02:55.320 --> 0:02:59.440 evs into AI data centers. But open ai has really 0:02:59.440 --> 0:03:01.680 been pushing had almost on its own hair. It's been 0:03:01.720 --> 0:03:04.160 going into Norway for its infrastructure, has been going to 0:03:04.200 --> 0:03:07.160 the Middle East and in the United States with Oracle 0:03:07.320 --> 0:03:10.040 and almost leaving well it felt like soft Bank behind 0:03:10.040 --> 0:03:12.239 in EMO right. 0:03:12.360 --> 0:03:15.520 Open Ai has a lot of power here to be 0:03:15.560 --> 0:03:18.640 able to pick their partners, as we've talked about before. Also, 0:03:18.680 --> 0:03:21.920 they are building this big data center in Avelene, Texas 0:03:22.080 --> 0:03:25.760 that's been going quite well, quite aggressively. Open Ai course 0:03:25.880 --> 0:03:28.840 was very closely affiliated with Microsoft in the early days. 0:03:28.840 --> 0:03:31.320 It put in a bunch of money early on. It 0:03:31.360 --> 0:03:34.840 had been kind of their cloud computing supportive partner for 0:03:34.840 --> 0:03:37.320 a long period of time. Now they've also talked about 0:03:37.320 --> 0:03:40.280 working with soft Bank Oracles. They're hurt too, so they're 0:03:40.320 --> 0:03:43.160 sort of choosing their dance partners as it suits their need. 0:03:43.240 --> 0:03:45.280 At this point, soft Bank, of course wants to be 0:03:45.320 --> 0:03:48.240 able to move more aggressively into the AI field. Soft 0:03:48.280 --> 0:03:50.200 Bank shares are actually on a tear right now. They're 0:03:50.200 --> 0:03:53.640 an all time high. Masieo she Son is certainly getting 0:03:53.680 --> 0:03:56.160 a bit of a tailwind because they put that money 0:03:56.200 --> 0:03:59.040 into Open Ai at a lower valuation. Now they've been 0:03:59.040 --> 0:04:00.840 able to ride that up quite a bit. So I 0:04:00.880 --> 0:04:03.520 think there is some optimism that SoftBank is getting its 0:04:03.520 --> 0:04:06.120 footing here, is being able to make some progress in 0:04:06.160 --> 0:04:08.320 the AI feel bit Masio Sisnis wanted for. 0:04:08.240 --> 0:04:08.800 A long time. 0:04:08.920 --> 0:04:12.040 Great context. Peter Elstrom, we thank you so much. And look, 0:04:12.080 --> 0:04:14.840 speaking of Stargate tune in later this hour for an 0:04:14.840 --> 0:04:18.640 interview with the Open AI COO Brad Lightcap on GPT. 0:04:18.480 --> 0:04:19.320 Five and much more. 0:04:19.360 --> 0:04:22.200 But in more data center news, it keeps on coming. 0:04:22.440 --> 0:04:24.880 Meta has announced financing for a twenty nine billion dollar 0:04:24.960 --> 0:04:28.760 data center expansion in rural Louisiana. Now it's actually selected 0:04:28.839 --> 0:04:32.000 Pimco and Blue Out Capital to lead theb in equity 0:04:32.040 --> 0:04:32.719 financing here. 0:04:32.839 --> 0:04:34.080 That's all according to sources. 0:04:34.320 --> 0:04:38.240 Representatives of these three companies actually declined to comment. Let's 0:04:38.279 --> 0:04:42.600 get back to also elsewhere in chips Intel, the saga continues. 0:04:42.640 --> 0:04:44.719 After the US President, of course, called for at CEO's 0:04:44.839 --> 0:04:48.960 resignation over conflicts of interest, Intel CEO lit Bhutan replied 0:04:49.360 --> 0:04:52.159 in a letter to staff posted on the company's website, 0:04:52.200 --> 0:04:54.320 where he says he got the full backing of the 0:04:54.320 --> 0:04:57.240 board and what they are working on with the administration 0:04:57.320 --> 0:05:00.880 to quote ensure they have the facts. Mags in King 0:05:00.960 --> 0:05:03.720 rings us with more facts. What does he think there 0:05:03.800 --> 0:05:05.320 is misinformation about Ian? 0:05:06.720 --> 0:05:11.719 Yeah, I mean we saw that the Trump social media posting, 0:05:11.760 --> 0:05:14.200 and this came on the back of what a senator 0:05:14.240 --> 0:05:18.320 had done and sending a letter to Intel's chairman saying, hey, look, 0:05:18.520 --> 0:05:21.719 all of these things have happened in Bhutan's past. Are 0:05:21.760 --> 0:05:24.880 we sure he's the right person to be running Intel? 0:05:24.960 --> 0:05:29.120 And there was a lot of sort of cluging of 0:05:29.200 --> 0:05:34.520 facts together and in accusations made, which the President then 0:05:34.560 --> 0:05:37.920 responded to, and finally late last night we had Lib 0:05:37.880 --> 0:05:41.440 Bhutan directly addressing that and saying, look, there's a lot 0:05:41.480 --> 0:05:44.520 of misinformation out there. You know, we look at the 0:05:44.560 --> 0:05:47.039 facts and don't worry. I'm still going to be the 0:05:47.080 --> 0:05:49.520 CEO of Intel, and I've got the boards backing. 0:05:49.800 --> 0:05:53.039 Yeah, he's concerned about his past roles at Walden International 0:05:53.120 --> 0:05:55.719 venture capital firm that does make bets in China and 0:05:55.720 --> 0:05:57.920 based in Singapore. Is a founder of it. Also Kina's 0:05:57.960 --> 0:05:59.680 Design Systems, which was CEO. 0:05:59.480 --> 0:06:01.080 Of This sort of should have been known. 0:06:01.360 --> 0:06:02.920 He was on the board of Intel for a long 0:06:02.960 --> 0:06:07.120 time himself well known. What do you think this means 0:06:07.120 --> 0:06:09.839 for their manufacturing presence in the United States? Because I 0:06:09.960 --> 0:06:12.640 almost got a hint that maybe he is reing committing 0:06:13.000 --> 0:06:13.679 to that here. 0:06:15.000 --> 0:06:17.680 Yeah, I mean, this is arguably I mean, first of all, 0:06:17.680 --> 0:06:21.320 there was nothing new about these accusations against him. Twenty 0:06:21.400 --> 0:06:24.120 twenty three we had the House Committee looking into this, 0:06:24.240 --> 0:06:28.400 so nothing really new here, But You're right. Perhaps the 0:06:28.400 --> 0:06:31.719 trigger point had come a week earlier during earnings when 0:06:32.200 --> 0:06:35.400 they discussed the possibility of not moving forward with the 0:06:35.480 --> 0:06:40.880 latest manufacturing technology, of cutting back on spending, maybe not 0:06:41.000 --> 0:06:44.560 building Ohio, maybe not building other plants. And this is 0:06:44.680 --> 0:06:47.680 not what the Trump administration wants to hear when they 0:06:47.720 --> 0:06:50.080 want to be talking about what we're bringing to America 0:06:50.120 --> 0:06:52.719 and what we're doing as soft Bank has just played 0:06:52.720 --> 0:06:56.160 too with the news that we broke there, So it 0:06:56.279 --> 0:06:59.560 was a kind of counternews cycle there that they didn't 0:06:59.600 --> 0:07:03.080 really think they were more perhaps talking about what investors 0:07:03.080 --> 0:07:05.000 wanted to hear, which is we're going to get back 0:07:05.040 --> 0:07:07.800 to profitability quicker, we're going to spend less, and that 0:07:07.880 --> 0:07:10.720 kind of unfortunately appears to have blown up on them 0:07:10.800 --> 0:07:12.880 in the political arena and they had to sort of 0:07:12.880 --> 0:07:15.000 address that late last night in king. 0:07:15.120 --> 0:07:18.520 I'm sure the story will continue, Thank you very much. Now, 0:07:18.680 --> 0:07:21.520 let's bring in an investor perspective. Kim Forrest going to 0:07:21.520 --> 0:07:23.800 break this all down. Your chief investment officer are Boca 0:07:23.800 --> 0:07:24.640 Capital Partners. 0:07:24.840 --> 0:07:26.559 You do have exposure to Intel. 0:07:26.600 --> 0:07:29.240 I'm interested in your perspective on what they now need 0:07:29.280 --> 0:07:31.520 to do in terms of turning the narrative. 0:07:33.240 --> 0:07:36.280 Sure, well, this is just kind of a distraction the 0:07:36.320 --> 0:07:40.800 whole CEO thing he's in. I'm sure the board thoroughly 0:07:40.840 --> 0:07:43.760 looked at him, so I'm going to move on from that. 0:07:44.400 --> 0:07:48.600 But he is there because the last several CEOs have 0:07:48.800 --> 0:07:52.840 just kind of worn down the bright shining starre that 0:07:52.960 --> 0:07:55.320 is Intel, and he is trying to find his way 0:07:55.680 --> 0:07:58.440 and trying to find where Intel should play. And I 0:07:58.440 --> 0:08:00.800 think it's pretty clear that he's looking at what they 0:08:00.800 --> 0:08:03.360 can do right now. And let's just say they're not 0:08:03.480 --> 0:08:06.520 up to the task of making a Blackwell competitor, but 0:08:06.760 --> 0:08:10.080 they do have some good technologies that are used in AI, 0:08:10.560 --> 0:08:13.840 mostly around packaging. And if I can feel your eyes 0:08:13.880 --> 0:08:17.240 glazing over, don't do that, because packaging is the thing 0:08:17.280 --> 0:08:23.800 that makes really low, you know, small scale chips work 0:08:24.040 --> 0:08:26.559 because you have to make sure the electrons are staying 0:08:26.560 --> 0:08:27.640 where they're supposed to be going. 0:08:27.680 --> 0:08:28.920 So packaging is a big thing. 0:08:29.440 --> 0:08:32.439 But he has a very large task ahead of him 0:08:32.480 --> 0:08:36.720 of making Intel relevant because let's say it's been drifting 0:08:36.720 --> 0:08:38.200 off for the past ten years. 0:08:38.920 --> 0:08:43.840 Our eyes glazing over about parts of ship making never Kim, 0:08:44.000 --> 0:08:48.160 I am interested though more broadly about Therefore, this overwhelming 0:08:48.400 --> 0:08:52.200 drive towards data center capacity and what that does for 0:08:52.280 --> 0:08:54.240 tailwinds for the chip makers that you look at that 0:08:54.280 --> 0:08:56.080 we had a This week has been a long one 0:08:56.080 --> 0:08:58.199 in the world of chips. You've got AMD numbers which 0:08:58.240 --> 0:09:00.880 are still showing growth, it's not quite at the pace 0:09:00.920 --> 0:09:03.080 that people wanted to see. You've also had, of cause, 0:09:03.120 --> 0:09:07.200 this threat of one hundred percent tariffs on semiconductors coming 0:09:07.240 --> 0:09:10.240 into the United States, but then huge carve outs. Where 0:09:10.240 --> 0:09:12.880 do we focus attention when you want exposure to the sector? 0:09:14.240 --> 0:09:18.280 Well, I would have to unbelievably agree that AI is 0:09:18.320 --> 0:09:21.440 the thing that's driving it forward now, and it's a 0:09:21.600 --> 0:09:24.680 very narrow slice of AI. We're talking about the data center. 0:09:25.200 --> 0:09:28.079 What I'm really interested in is, yes, we're going to 0:09:28.120 --> 0:09:31.880 have large language models, large reasoning models. I'm much more 0:09:32.000 --> 0:09:35.200 interested in smaller models that companies are going to actually 0:09:35.280 --> 0:09:38.760 use to become more productive. The large language models are 0:09:38.800 --> 0:09:41.320 getting all the love, but I'm not sure that they 0:09:41.360 --> 0:09:46.760 generate quite enough interest in direct measurable productivity. 0:09:47.000 --> 0:09:47.280 Right. 0:09:47.559 --> 0:09:50.320 They're being played around with at this point, But that's 0:09:50.360 --> 0:09:55.200 where all the money's going into, is building data centers 0:09:55.200 --> 0:09:58.640 that support large language and large reasoning models. 0:09:59.200 --> 0:10:00.319 Will that go on for ever? 0:10:00.520 --> 0:10:00.600 Know. 0:10:01.240 --> 0:10:04.000 I think what's more interesting is the further we get 0:10:04.000 --> 0:10:06.559 away from the data centers out to where the information 0:10:06.679 --> 0:10:09.839 is going to be used. That's when more companies are 0:10:09.840 --> 0:10:14.240 going to be involved in tel may have its place 0:10:14.280 --> 0:10:18.199 out there, because what we really want are not necessarily 0:10:18.840 --> 0:10:22.559 walking around robots, but robots that do things that are 0:10:22.640 --> 0:10:26.640 under the control of the data center kind of computing. 0:10:27.080 --> 0:10:31.880 So that is a very complicated world, and more semiconductors 0:10:31.880 --> 0:10:32.680 are going to be needed. 0:10:32.800 --> 0:10:34.400 Okay, so spread that love a little bit. 0:10:34.440 --> 0:10:36.280 It's so interesting that this comes hot on the heels 0:10:36.280 --> 0:10:38.679 of the scoop from Ludlow talking. 0:10:38.640 --> 0:10:41.080 About how Teser itself is riding down. 0:10:41.080 --> 0:10:43.960 It's focused on hardware and it's own chip making with 0:10:44.080 --> 0:10:48.080 Dojo Supercomputer and looking to others to provide the hardware 0:10:48.120 --> 0:10:49.480 going forward, more reliant. 0:10:49.200 --> 0:10:51.240 On video and on Samsung kim. 0:10:51.600 --> 0:10:54.520 Where else do we like then, other than all eyes 0:10:54.520 --> 0:10:56.800 on in video and MD to a certain extent. 0:10:57.720 --> 0:11:02.400 Well, I really love Micron, and because for many reasons, 0:11:02.440 --> 0:11:06.400 Micron has the hot dram that goes on the Blackwell 0:11:06.480 --> 0:11:09.840 chip and probably on AMD's chip, and that's memory that's 0:11:09.880 --> 0:11:13.319 going to move data in and out of a chip, right, 0:11:13.400 --> 0:11:16.720 So that's thing one. But thing two is we are 0:11:16.920 --> 0:11:22.360 generating so much information and it's not on spinning discs anymore. 0:11:22.600 --> 0:11:26.520 It's more on nand chips. So I love that area. 0:11:26.640 --> 0:11:30.760 I think it's an unloved area and really unexplored. So 0:11:31.000 --> 0:11:34.480 I think we could never underestimate the amount of storage 0:11:34.559 --> 0:11:38.079 that AI uses and how much we're going to have 0:11:38.120 --> 0:11:41.360 to store just to you know, get that data that 0:11:41.440 --> 0:11:44.400 we want to have looked at by AI. Has to 0:11:44.440 --> 0:11:46.959 live somewhere. I'm thinking against nand devices. 0:11:47.360 --> 0:11:50.240 Micron currently up about five percent on the day. Also, 0:11:50.320 --> 0:11:52.360 of course t SMC we're putting that twenty six percent 0:11:52.400 --> 0:11:53.959 growth of a month of July. We're just on a 0:11:54.000 --> 0:11:56.839 tear in many areas. Kim Forest of Boka Capital Partners. 0:11:56.880 --> 0:11:59.120 It's always great to check in with you. Happy weekend. 0:11:59.480 --> 0:12:01.360 Now coming out, we're going to take a look at Twilio. 0:12:01.760 --> 0:12:04.440 Look at the shares currently off by eighteen percent. They 0:12:04.480 --> 0:12:06.880 reported earnings yesterday. We go deep with the CEO. 0:12:07.559 --> 0:12:08.480 This is Bloomberg Tech. 0:12:15.720 --> 0:12:19.160 Let's talk about cloud communications platform Twilio reporting earnings after 0:12:19.200 --> 0:12:22.320 the market closed yesterday. The report showed an acceleration in 0:12:22.360 --> 0:12:25.320 revenue growth that the company's gross margin earnings for share 0:12:25.480 --> 0:12:27.680 do seem to be a concern to some analysts. Let's 0:12:27.679 --> 0:12:31.600 bring in Twilio CEO Couzema, Ship Chandler joining us. Now 0:12:31.800 --> 0:12:33.680 I'm looking at your shares, they are down a lot. 0:12:33.880 --> 0:12:36.520 Just give your perspective on the gross margin. 0:12:38.040 --> 0:12:41.079 Well, I would say, in general, we delivered a solid quarter. 0:12:41.120 --> 0:12:44.760 I mean it was a quarter of accelerated growth, record 0:12:44.840 --> 0:12:49.000 non gap income from operations, free cash flow. And I 0:12:49.040 --> 0:12:51.280 think what we're finding is is that at a time 0:12:51.280 --> 0:12:55.280 when AI is kind of this generational opportunity, we're finding 0:12:55.320 --> 0:12:58.280 some of those tailwinds get ascribed to Twilio. I understand 0:12:58.280 --> 0:13:01.640 the gross margin dynamic. It's not necessarily a new phenomenon 0:13:02.120 --> 0:13:05.319 for Twilio, but it hasn't impeded our ability to get 0:13:05.400 --> 0:13:10.000 after operating profits and generate free cash. Importantly, on free 0:13:10.000 --> 0:13:12.000 cash we raised our guidance for the year and so 0:13:12.040 --> 0:13:13.640 we feel pretty good about the outlook. 0:13:14.040 --> 0:13:17.240 So for now, is the opportunity more on growth and 0:13:17.280 --> 0:13:19.600 revenue and the AI tailwinds. 0:13:19.200 --> 0:13:19.720 As you call it. 0:13:19.720 --> 0:13:22.720 Because Jefferies, for example, putting out saying there are big 0:13:22.760 --> 0:13:25.760 hopes you're going to be a big beneficiary of AI, adoption. 0:13:26.400 --> 0:13:28.760 How is that playing out for you, because many now 0:13:28.800 --> 0:13:29.880 potentially question it. 0:13:31.240 --> 0:13:33.520 Yeah, I do think we'll be a big beneficiary of AI. 0:13:33.800 --> 0:13:36.200 What I don't want folks to take away from the 0:13:36.240 --> 0:13:40.160 print is that somehow we're returning to kind of growth 0:13:40.160 --> 0:13:43.120 at all costs dynamic. I think quite the contrary. We're 0:13:43.200 --> 0:13:46.000 running the company with as much focus and discipline as 0:13:46.000 --> 0:13:48.240 we ever have. We happen to be at a time 0:13:48.320 --> 0:13:51.280 in which, number one, we're able to take share for 0:13:51.800 --> 0:13:54.079 a number of our competitors, and we're doing that in 0:13:54.120 --> 0:13:56.960 a price disciplined way. And I think the second thing 0:13:57.120 --> 0:14:00.800 is is that given that the AI is a generation opportunity, 0:14:01.160 --> 0:14:03.600 we do see an opportunity as well to make some 0:14:03.640 --> 0:14:07.160 short term investments that we think will drive some medium 0:14:07.200 --> 0:14:09.439 term benefits. And I think that's the right thing to do, 0:14:09.559 --> 0:14:12.680 and so I'm not fixated on a particular quarter. I 0:14:12.679 --> 0:14:15.920 think over the course of time that'll play out in 0:14:15.960 --> 0:14:18.720 our favor and certainly be a good thing for investors. 0:14:19.080 --> 0:14:22.640 What is that investment? Then, you detailed or platform vision 0:14:22.840 --> 0:14:26.800 almost in signal your event you're thinking about audio in particular, 0:14:26.880 --> 0:14:28.880 I mean you are the way in which I communicate 0:14:28.920 --> 0:14:31.480 with LIFT or with any app and many as ways 0:14:31.480 --> 0:14:32.760 that's going to move to voice. 0:14:33.160 --> 0:14:36.040 Do you make acquisitions therefore, I. 0:14:35.960 --> 0:14:38.440 Think acquisitions are something that we think about. I wouldn't 0:14:38.480 --> 0:14:41.160 necessarily read anything into that. I mean, we obviously have 0:14:41.240 --> 0:14:43.960 some flexibility in terms of what we can do with 0:14:44.000 --> 0:14:46.680 our capital. But I think more importantly the investment in 0:14:46.720 --> 0:14:50.280 the short term is around voice AI for example. I 0:14:50.320 --> 0:14:54.479 mean voice AI is where so many different AI startups 0:14:55.000 --> 0:14:56.880 are really launching right. I mean, a lot of these 0:14:56.960 --> 0:15:00.320 use cases that you see are voice based. We have 0:15:00.360 --> 0:15:05.680 the benefit of delivering incredible voice infrastructure that startups can 0:15:05.720 --> 0:15:08.320 get going with almost immediately. That's kind of on the 0:15:08.360 --> 0:15:10.640 low end, and then on the high end, you know, 0:15:10.720 --> 0:15:15.720 there are fully orchestrated experiences that we drive, combining our 0:15:15.720 --> 0:15:20.520 communications capabilities across a number of channels, utilizing data as 0:15:20.600 --> 0:15:25.440 well as utilizing AI, plugging into all manner of different lms, 0:15:25.480 --> 0:15:27.480 and I think that's going to be exciting for us 0:15:27.480 --> 0:15:31.239 from a growth standpoint, and it's going to drive profitability 0:15:31.240 --> 0:15:32.200 and cash over time. 0:15:32.520 --> 0:15:36.400 I'm looking at your one year share price move, it's 0:15:36.440 --> 0:15:40.000 up sixty three percent, so that puts what today's move 0:15:40.520 --> 0:15:43.720 is in perspective. Because aim but you talk about making 0:15:43.720 --> 0:15:48.040 perhaps your acquisition yourself, or having the flexibility to do so. 0:15:48.080 --> 0:15:51.120 Someone as are saying that maybe you're a target. Have 0:15:51.240 --> 0:15:53.360 you had any inbound would you ever consider that? 0:15:54.520 --> 0:15:56.520 I mean, I wouldn't comment on on M and A 0:15:56.680 --> 0:15:58.560 one way or the other. I think we're always going 0:15:58.560 --> 0:16:01.440 to do things that are in the best interests of 0:16:01.440 --> 0:16:04.480 our share owners. I can tell you with conviction that 0:16:05.080 --> 0:16:08.320 we're very focused on running a great business. We think 0:16:08.360 --> 0:16:11.640 that we have all of the necessary ingredients to create 0:16:11.720 --> 0:16:15.440 tremendous value for our customers. And as you alluded to 0:16:15.480 --> 0:16:18.160 a moment ago, over the last year or so, we've 0:16:18.200 --> 0:16:23.000 shown that we can demonstrate focus, discipline, operating rigor in 0:16:23.040 --> 0:16:26.440 the way that we're running the company. Investors have benefited 0:16:26.560 --> 0:16:30.280 from those attributes. And again I don't get fixated on 0:16:30.320 --> 0:16:34.000 a particular quarter. I think over periods of time this 0:16:34.040 --> 0:16:36.360 is going to play out very much in investors favor, 0:16:36.400 --> 0:16:38.600 and I think they're going to read really substantial benefits. 0:16:38.960 --> 0:16:42.480 And where are your opportunities for new wins? In particular, 0:16:42.520 --> 0:16:44.480 when you're getting new customers on because of the voice 0:16:44.480 --> 0:16:47.440 offerings and the communication offerings, is it geographical in nature 0:16:47.480 --> 0:16:48.800 that you look around for expansion. 0:16:50.360 --> 0:16:53.400 I think there are international opportunities, no doubt, but I 0:16:53.440 --> 0:16:56.320 would say in the near term. You know, what's really 0:16:56.320 --> 0:16:58.640 starting to happen is we're We've always kind of been 0:16:58.760 --> 0:17:01.840 like a product led growth company, and so the vast 0:17:01.920 --> 0:17:05.200 majority of our customers, they're actually self starters. They come 0:17:05.200 --> 0:17:09.280 to our console, they get going, they love the usability 0:17:09.320 --> 0:17:13.919 and the features that are our platform gives them, and 0:17:13.960 --> 0:17:16.080 so that's really the way that people get started. So 0:17:16.080 --> 0:17:19.560 we've been putting investment into that making as simple as 0:17:19.600 --> 0:17:23.080 possible for our customers to get going, and right now, 0:17:23.119 --> 0:17:25.720 at least in the immediate term, that's really played out 0:17:25.760 --> 0:17:29.080 with respect to voice AI. Again, so many different voice 0:17:29.119 --> 0:17:32.399 AI companies that are launching they're choosing Twilio. We're the 0:17:32.440 --> 0:17:35.320 best known brand in the space for super simple and 0:17:35.400 --> 0:17:38.120 easy to use, and there's a ton of value that 0:17:38.160 --> 0:17:40.760 our customers can get out of that opportunity. On the 0:17:40.880 --> 0:17:43.719 enterprise side, I do think what we're finding is is 0:17:43.760 --> 0:17:48.040 that they want the kind of broader offering. Right they 0:17:48.080 --> 0:17:50.800 want our communications capabilities, but they also want to use 0:17:50.880 --> 0:17:53.520 data and they want to plug in the LMS that 0:17:53.520 --> 0:17:56.800 they're excited about to be able to drive both cost 0:17:57.000 --> 0:17:59.000 and revenue opportunities. 0:17:58.400 --> 0:18:01.399 Because aymanship Chandla Vilios a year. We thank you so 0:18:01.480 --> 0:18:04.160 much for your time today after the earnings and coming 0:18:04.240 --> 0:18:06.879 up more of them more earnings. Chime releases this in 0:18:06.960 --> 0:18:10.600 orgeral reporters. A public company and investors a little disappointed. 0:18:10.720 --> 0:18:18.919 This is a blue bag tech. Chime It put out. 0:18:18.840 --> 0:18:21.960 Its first earning report since going public two months ago. 0:18:22.240 --> 0:18:25.399 Revenue for the fintech company was strong, but customer growth 0:18:25.440 --> 0:18:28.200 it failed to reach the top end of expectations. Let's 0:18:28.200 --> 0:18:31.840 talk it through. Chime CEO Chris Spritt is with us. Chris, 0:18:32.119 --> 0:18:35.280 solid thirty percent revenue growth. You've got gross margin of 0:18:35.280 --> 0:18:37.120 eighty seven percent, but it seems to be this growth 0:18:37.119 --> 0:18:39.840 in active members twenty three percent that just failed to 0:18:39.880 --> 0:18:41.680 meet the bar for some What do you make of it? 0:18:42.480 --> 0:18:44.240 Well, thanks for having me. It's great to be here. 0:18:44.280 --> 0:18:47.280 I'm so proud to be reporting on an awesome Q 0:18:47.359 --> 0:18:49.600 one that we've had our Q two in our first 0:18:49.760 --> 0:18:53.280 quarter as a public company, and being on the show 0:18:53.359 --> 0:18:57.199 to share more. We had a great quarter. We like 0:18:57.240 --> 0:19:00.720 you said, we beat consensus on that top line. We 0:19:00.760 --> 0:19:05.480 grew thirty seven percent. We saw outsized results exceeding expectation 0:19:05.560 --> 0:19:09.879 across the board on growth of on the revenue side, 0:19:10.320 --> 0:19:15.359 active member growth, and our success on adjusted EBITA, and 0:19:15.400 --> 0:19:18.919 we raised our expectations for the year as well on 0:19:18.960 --> 0:19:21.600 the call as it relates to the active member growth. 0:19:23.080 --> 0:19:24.840 You know, it was a great quarter for us. I 0:19:24.880 --> 0:19:28.520 think naturally as a new company, new issuance, I think 0:19:28.680 --> 0:19:31.439 investors are just starting to understand the nuances of our 0:19:31.480 --> 0:19:34.360 business a bit, and we do have a seasonal business, 0:19:34.400 --> 0:19:38.840 so on a quarter to quarter basis, sequentially, the growth 0:19:39.119 --> 0:19:41.639 for people that maybe don't understand the seasonality the business 0:19:41.720 --> 0:19:44.040 might have been disappointing. But the way that you really 0:19:44.080 --> 0:19:46.520 need to look at the business is how we're growing 0:19:46.520 --> 0:19:48.880 on a year over year basis. So in Q one 0:19:48.920 --> 0:19:52.320 we grew actives twenty three percent. In Q two again 0:19:52.480 --> 0:19:55.880 we grew actives twenty three percent year over year, accelerating 0:19:55.920 --> 0:19:56.400 that rate. 0:19:56.480 --> 0:19:58.480 So we actually had an outstanding quarter. 0:19:58.520 --> 0:20:00.280 And I think it's just natural now that need to 0:20:00.280 --> 0:20:03.600 make sure that we educate investors on that some of 0:20:03.640 --> 0:20:05.879 these details of the business, such as the seasonal elements 0:20:05.880 --> 0:20:06.119 of it. 0:20:06.320 --> 0:20:08.879 And maybe investors were looking to competitors in the space, 0:20:08.960 --> 0:20:11.199 not direct competitors, but certainly in the fintech space so 0:20:11.280 --> 0:20:14.399 far just had such strength. Do you think perhaps it 0:20:14.560 --> 0:20:16.520 was what others are doing in the market, and how 0:20:16.520 --> 0:20:19.199 can you show that you're winning as much and building 0:20:19.240 --> 0:20:19.640 as much. 0:20:21.040 --> 0:20:23.960 Well, you know, I think we have a different business 0:20:24.040 --> 0:20:26.639 model than a lot of the other FinTechs out there 0:20:26.680 --> 0:20:31.359 in that we're really focused on serving everyday consumers and 0:20:31.440 --> 0:20:34.639 banking them in a primary account capacity. In other words, 0:20:34.920 --> 0:20:37.200