WEBVTT - Nvidia Closes In On a $4 Trillion Market Value 0:00:02.520 --> 0:00:12.600 Bloomberg Audio Studios, Podcasts, Radio new Bloomberg Tech is alive 0:00:12.640 --> 0:00:16.439 from coast to coast with Caroline Hide in New York 0:00:16.720 --> 0:00:20.760 and Eva Low in San Francisco. 0:00:22.040 --> 0:00:25.040 This is Bloomberg Tech and coming up in video within reach, 0:00:25.120 --> 0:00:27.800 heading to be the first company to hit a four 0:00:27.960 --> 0:00:30.160 trillion dollar value plus. 0:00:30.160 --> 0:00:32.280 The US and China finalize. 0:00:31.760 --> 0:00:36.320 A trade truce which includes China's commitment to deliver rare Earth, 0:00:36.720 --> 0:00:40.640 and Crusoe teams up with Redwood to tackle AI's biggest challenge, 0:00:40.720 --> 0:00:44.920 power the largest deployment of reused batteries globally. 0:00:44.800 --> 0:00:46.640 For an AI data center. 0:00:46.680 --> 0:00:49.559 When we talk about technology and equity markets, there's a 0:00:49.600 --> 0:00:52.760 story right now that everyone's focused on. Could in Vidia 0:00:53.120 --> 0:00:56.720 be the first four trillion dollar marketcat company. We're at 0:00:56.760 --> 0:00:59.160 three point eighty three trillion dollars right now. Actually, we 0:00:59.240 --> 0:01:01.360 have some way to go. The stocks up like one 0:01:01.360 --> 0:01:03.400 point three one and a half percent in the session. 0:01:03.600 --> 0:01:05.800 It would need a gain of almost six percent to 0:01:05.880 --> 0:01:07.640 hit that milestone this Friday. 0:01:07.920 --> 0:01:09.360 But there's a longer term story. 0:01:09.480 --> 0:01:12.600 Since those April lows in markets that were coming out 0:01:12.640 --> 0:01:15.560 of that post deep seak, anxiety in video is up 0:01:15.560 --> 0:01:18.800 more than sixty percent we've come through earnings and there's 0:01:18.800 --> 0:01:21.720 a bullish thesis emerging that actually in Vidia has more 0:01:21.959 --> 0:01:24.560 room to run because of the commitment of those cloud 0:01:24.600 --> 0:01:28.120 computing companies to keep on spending and buying those in 0:01:28.240 --> 0:01:30.520 video GPUs, Will Nvidia be the. 0:01:30.480 --> 0:01:32.000 First four trillion dollar company? 0:01:32.120 --> 0:01:35.200 Let's get more. Mandy Singer Bloomberg Intelligence joins us. Now 0:01:35.360 --> 0:01:37.480 and Mandy, why it's so crucial we have you on 0:01:37.520 --> 0:01:40.720 the show. Is you cover the full spectrum of megacat 0:01:40.840 --> 0:01:44.520 tech four trillion dollars for Nvidia? What would be supporting 0:01:44.560 --> 0:01:45.240 that valuation? 0:01:45.800 --> 0:01:49.600 Yeah, Look, every data point that you have tragged this 0:01:49.800 --> 0:01:53.760 quarter has been supportive of estimate's going up. The leaders 0:01:53.880 --> 0:01:57.480 un being Micron talking about, you know, how their HPM 0:01:57.600 --> 0:02:01.880 sales continue to ramp up better and expected. And when 0:02:01.920 --> 0:02:05.520 it comes to inferencing, clearly the trend of you know, 0:02:05.640 --> 0:02:10.360 spending more compute at the time of query, the reasoning 0:02:10.400 --> 0:02:15.200 capabilities that these models have added, especially with open aio series, 0:02:15.639 --> 0:02:20.000 what that has done is really reinforced compute demand tied 0:02:20.040 --> 0:02:23.639 to inferencing, and that to me is what's driving this 0:02:24.120 --> 0:02:28.200 wave of you know, enthusiasm around and videos runway because 0:02:28.520 --> 0:02:31.679 the two hundred billion dollar number for this year. Clearly 0:02:31.760 --> 0:02:34.440 there's a line of sight even when you take out 0:02:34.480 --> 0:02:36.680 all the China revenue, which they did, you know, with 0:02:36.760 --> 0:02:40.440 the guide in the last quarter. And so the question 0:02:40.600 --> 0:02:43.280 is how much will they grow next year? And right 0:02:43.280 --> 0:02:46.240 now consensus is around two hundred and fifty billion dollars. 0:02:46.720 --> 0:02:50.320 So with sovereigns coming into play, especially Middle East and 0:02:50.320 --> 0:02:53.160 now Jensen being in Europe, you feel like, you know 0:02:53.240 --> 0:02:55.400 they have line of sight to that revenue as well, 0:02:55.440 --> 0:02:57.680 and that's why, you know, the multiple seems to be 0:02:57.720 --> 0:02:58.600 expanding here. 0:02:59.160 --> 0:03:02.800 Okay, just below one hundred and fifty seven dollars per share. 0:03:02.840 --> 0:03:04.600 I was doing the math with the team, and I 0:03:04.639 --> 0:03:07.680 think that one hundred and sixty four dollars per share 0:03:07.760 --> 0:03:10.000 or just below it would get us the four trillion 0:03:10.000 --> 0:03:12.800 dollars of market cap in Video was the first chip 0:03:12.840 --> 0:03:15.680 maker to hit a trillion dollars of market value, and 0:03:15.720 --> 0:03:18.720 of course it's gone well beyond that. But there are headwinds, 0:03:18.720 --> 0:03:20.760 and I think what Mandy would be helpful to the 0:03:20.800 --> 0:03:23.800 audience is to explain what's the threat to INVIDEA. 0:03:23.919 --> 0:03:24.600 Some of it is. 0:03:24.560 --> 0:03:28.080 The custom silicon that the hyperscalers are looking at, but 0:03:28.120 --> 0:03:30.320 there are other players in the market. AMD will have 0:03:30.360 --> 0:03:33.760 something to say about this monopoly that in Vidia currently holds. 0:03:34.040 --> 0:03:36.640 Yeah, and that's why you know, in video, opening up 0:03:36.680 --> 0:03:40.680 its platform the Envy Link now supporting other chips was 0:03:40.720 --> 0:03:43.400 such a big move and coming in at a great 0:03:43.480 --> 0:03:47.280 time because now they are saying, you can get Broadcom gear, 0:03:47.560 --> 0:03:50.360 but we'll be able to integrate it with our Envy Link, 0:03:50.440 --> 0:03:53.240 and that's where the opening up our ecosystem. I think 0:03:53.240 --> 0:03:56.720 it's a very wise move, and that helps in video 0:03:56.840 --> 0:04:00.240 because all the investment that companies are making in in 0:04:00.320 --> 0:04:03.720 video stack now can support some other tips. So with 0:04:03.840 --> 0:04:06.080 that being said, look, I mean the numbers are getting 0:04:06.080 --> 0:04:09.320 bigger and bigger, so you kind of think, yes, in 0:04:09.480 --> 0:04:13.440 VideA is a durable monopoly. But for how long, given 0:04:13.560 --> 0:04:15.960 you know all the other factors that you just described. 0:04:16.000 --> 0:04:18.960 But for right now, it feels like they clearly are 0:04:19.000 --> 0:04:21.040 executing very well on that front. 0:04:21.400 --> 0:04:24.920 Mandy's saying, who leads technology research of Bloomberg Intelligence, thank 0:04:24.960 --> 0:04:25.680 you so much. 0:04:25.720 --> 0:04:27.000 Let's get to the other top story. 0:04:27.000 --> 0:04:30.800 In Washington, US Commerce Secretary Howard Lutnik says a trade 0:04:30.839 --> 0:04:33.760 truce between the US and China has been signed. 0:04:34.880 --> 0:04:39.000 So the China deal, we inked the deal. You remember, 0:04:39.080 --> 0:04:43.640 we had a trip to Geneva and then that was 0:04:43.680 --> 0:04:46.560 being slow played. We got back together in London and 0:04:46.560 --> 0:04:49.840 that deal was signed and sealed two days ago. 0:04:51.520 --> 0:04:53.920 For the details, Bloombers Katie Lines joins us in. Kelly, 0:04:54.040 --> 0:04:56.479 that was your conversation, your interaction, and I think that 0:04:56.520 --> 0:04:58.520 what you were trying to get to is that there 0:04:58.520 --> 0:05:01.479 are deals to come. So where did China sit within 0:05:01.600 --> 0:05:04.000 what's being negotiated and what's been signed. 0:05:05.400 --> 0:05:07.440 Yeah, that's exactly right ed. And we should note this 0:05:07.560 --> 0:05:09.719 deal that was signed earlier this week that we just 0:05:09.800 --> 0:05:12.240 learned about yesterday evening and has now been confirmed by 0:05:12.240 --> 0:05:14.360 the Chinese side as well, is far from the kind 0:05:14.400 --> 0:05:18.000 of comprehensive trade agreement that could take much longer to negotiate. 0:05:18.040 --> 0:05:20.760 What it does solidify, though, is finalizing the framework that 0:05:20.839 --> 0:05:23.000 was initially as we just heard the Secretary say, agree 0:05:23.000 --> 0:05:25.640 to in Geneva, talked about again in London, and now 0:05:25.680 --> 0:05:28.640 finally is looking toward implementation. And what that will mean 0:05:28.680 --> 0:05:31.200 is that China will start approving once again the export 0:05:31.240 --> 0:05:35.360 of rare earth minerals. That was a sticking point obviously 0:05:35.400 --> 0:05:38.200 in the Commerce. Secretary says once those exports start flowing, 0:05:38.200 --> 0:05:41.200 the US will lift its own restrictive measures on exports 0:05:41.200 --> 0:05:44.000 on things like ethane. So it definitely is a step 0:05:44.000 --> 0:05:47.039 forward and the relationship trading relationship between these two countries, 0:05:47.040 --> 0:05:48.560 But of course it's just one step, and what is 0:05:48.600 --> 0:05:52.200 a multifaceted approach by this administration to reapproach trade not 0:05:52.360 --> 0:05:54.719 just with China but other trading partners as well. The 0:05:54.760 --> 0:05:57.120 other thing the Commerce Secretary told us in our conversation 0:05:57.720 --> 0:06:01.480 last night is that July ninth trade deadline is looming, 0:06:01.520 --> 0:06:04.800 is that the administration is expecting about ten expecting about 0:06:04.839 --> 0:06:06.760 ten trade deals to be announced over the course of 0:06:06.800 --> 0:06:08.840 the next few weeks. While he didn't get specific as 0:06:08.839 --> 0:06:11.599 to what countries exactly, he did echo the words we 0:06:11.640 --> 0:06:13.640 heard from President Trump at the White House yesterday that 0:06:13.640 --> 0:06:16.880 they're getting closer with India. He also expressed some optimism 0:06:16.960 --> 0:06:21.159 around negotiations with the European Union, specifically suggesting those have 0:06:21.240 --> 0:06:23.640 picked up in recent weeks, and we understand that optimism 0:06:23.720 --> 0:06:27.440 is being expressed privately by the European Commission President Ursula 0:06:27.480 --> 0:06:29.000 Vonderlion in recent days as well. 0:06:29.720 --> 0:06:32.640 There had been an idea, and it was an idea 0:06:32.920 --> 0:06:34.919 rather than something put forward by the parties that there 0:06:34.920 --> 0:06:36.840 could be this kind of trade off for quid pro 0:06:36.960 --> 0:06:40.240 quo where rare eerfs might come in exchange for some 0:06:40.400 --> 0:06:44.599 change in policy on the semiconductor side. What content of 0:06:44.640 --> 0:06:47.440 this discussion do we know if there is anything specifically 0:06:47.440 --> 0:06:48.400 relating to chips. 0:06:50.000 --> 0:06:52.560 Well, when it comes to chips, that is something that 0:06:52.600 --> 0:06:55.599 the US had suggested was going to be factored into 0:06:55.640 --> 0:06:57.800 this conversation. What we still don't know at this time, 0:06:57.920 --> 0:07:00.000 ed though we know deal has been signed, is actually 0:07:00.120 --> 0:07:02.440 what the nuances of it are. We didn't even know 0:07:02.480 --> 0:07:04.480 it had been signed until two days after the fact 0:07:04.520 --> 0:07:08.159 when the President said it kind of slipped up in 0:07:08.240 --> 0:07:10.280 the news conference or an event at the White House 0:07:10.360 --> 0:07:13.080 yesterday and the Commerce Secretary confirmed it. But we do 0:07:13.160 --> 0:07:15.720 know it all really does hinge on these critical minerals 0:07:15.760 --> 0:07:18.800 actually arriving in the US, those exports actually beginning. That 0:07:18.920 --> 0:07:22.400 is what the administration had been lobbying or levying accusations 0:07:22.400 --> 0:07:24.960 against China, rather saying that they were slow walking it, 0:07:24.960 --> 0:07:26.560 which is why there were some question as to whether 0:07:26.600 --> 0:07:29.160 this accord would be able to move forward in the 0:07:29.160 --> 0:07:32.320 first place. But China officials are telling Bloomberg today that 0:07:32.360 --> 0:07:35.240 they are going to start sifting through those applications. In 0:07:35.320 --> 0:07:37.240 that process should be underway, and that is when they 0:07:37.320 --> 0:07:40.520 can get into more where we could see the US 0:07:40.520 --> 0:07:42.960 actually starting to lift those restrictions. We just haven't sent 0:07:43.000 --> 0:07:45.600 them yet, as the Commerce Secretary is effectively saying, China has. 0:07:45.480 --> 0:07:46.040 To move first. 0:07:46.840 --> 0:07:49.480 Bloombos Kaye lines and I highly recommend you watch your 0:07:49.520 --> 0:07:51.080 interview of Commerce Secretary Lutnik. 0:07:51.120 --> 0:07:51.880 Thank you very much. 0:07:52.040 --> 0:07:53.920 Let's get more in the broader impact of both of 0:07:53.960 --> 0:07:56.960 those stories on the tech markets. Fionasen Coda is the 0:07:56.960 --> 0:08:00.720 City Index Financial Markets senior analysts and trade piece is 0:08:00.720 --> 0:08:03.400 where I want to start. We know more now than 0:08:03.400 --> 0:08:06.680 we did yesterday about the trade relationship between the US 0:08:06.720 --> 0:08:10.360 and China. As somebody that looks across the technology sector, 0:08:10.600 --> 0:08:12.240 has the market factored that in. 0:08:14.360 --> 0:08:17.760 Yes, it does feel that there is an improved sentiment, 0:08:17.920 --> 0:08:22.840 but it's not just on that China US deal. I 0:08:22.840 --> 0:08:25.640 think there has just been sort of a broad improvement 0:08:25.720 --> 0:08:28.880 in sentiment. It's been a very disruptive start to the 0:08:28.960 --> 0:08:31.640 year overall. So the fact that it feels that things 0:08:31.680 --> 0:08:34.600 are starting to slowly line up and fall into place. 0:08:34.880 --> 0:08:38.840 For example, the improved relations between the US and China 0:08:38.920 --> 0:08:41.960 that feels like it's starting to be priced in. Obviously, 0:08:42.000 --> 0:08:44.880 we've had the disruptions with regards to the Middle East 0:08:44.880 --> 0:08:46.920 and the impact that that's had on sentiment, But I 0:08:46.920 --> 0:08:49.480 feel that we are now able to sort of swift 0:08:49.480 --> 0:08:54.360 the shift the focus more towards typical sort of macro 0:08:54.720 --> 0:08:59.960 and a fundamental analysism focus, which we haven't been able 0:08:59.960 --> 0:09:02.440 to do for much of this year. So yes, you know, 0:09:02.520 --> 0:09:05.240 I feel that there is optimism that is being priced in, 0:09:05.400 --> 0:09:07.719 but I think that there potentially is more to run to. 0:09:09.640 --> 0:09:12.600 We're in a place right now this moment Friday, June 0:09:12.600 --> 0:09:16.240 twenty seventh, where the SMP five hundred could close a 0:09:16.280 --> 0:09:19.040 fresh record, largely to do a trade if you go 0:09:19.280 --> 0:09:23.080 just on this market summary on the Bloomberg terminal. But 0:09:23.559 --> 0:09:25.520 over the course of this week, we've talked about what 0:09:25.600 --> 0:09:28.240 has changed since April where markets kind of had that 0:09:28.400 --> 0:09:31.840 low and it is Micron, it is Palenteer, and now 0:09:31.840 --> 0:09:34.960 in Nvidia potentially at four trillion dollars. What is the 0:09:35.000 --> 0:09:37.560 biggest do you think driver of growth in this market 0:09:37.559 --> 0:09:38.040 at the moment? 0:09:40.000 --> 0:09:41.640 Well, it's a really good question, you know. 0:09:41.760 --> 0:09:43.840 I think what the problem that we had was that 0:09:43.880 --> 0:09:47.880 there was that massive shock and scare from Trump and 0:09:47.920 --> 0:09:51.120 what the impact of those potential trade tariffs could be. 0:09:51.480 --> 0:09:54.040 Now we didn't get that worst case scenario. 0:09:54.240 --> 0:09:55.480 In fact, we've been sort. 0:09:55.320 --> 0:09:58.080 Of pedaled backed quite a lot, and potentially now the 0:09:58.120 --> 0:09:59.400 outlook isn't so bad. 0:09:59.440 --> 0:10:02.559 Although will mind more out on July the ninth. 0:10:03.160 --> 0:10:05.160 But as far as tech is concerned as well, I 0:10:05.160 --> 0:10:08.760 think the environment, broadly speaking, the environment is much improving. 0:10:09.080 --> 0:10:13.760 There is a potential of a more dubvish Federal Reserve. 0:10:13.840 --> 0:10:15.719 You know, we had from Federal Reserve chair our own 0:10:15.800 --> 0:10:18.040 power this week. He did seem to have a slightly 0:10:18.880 --> 0:10:21.240 less hawkish stance, perhaps than at the end of the 0:10:21.240 --> 0:10:23.880 FED meeting in the previous week, So I think that 0:10:24.040 --> 0:10:25.280 is also helping. 0:10:25.520 --> 0:10:27.480 And also we've got sentiment. 0:10:27.600 --> 0:10:30.880 You know, investors are able to turn their focus back 0:10:30.920 --> 0:10:35.360 to the fundamentals, back to this AI trade, which really 0:10:35.400 --> 0:10:37.920 when we had there were so many disruptions earlier on 0:10:38.000 --> 0:10:41.280 in the year, between you know, Trump's taris, between the 0:10:41.320 --> 0:10:45.280 Middle East, between rating oil prices, the investors weren't able 0:10:45.320 --> 0:10:46.960 to focus on that AI story. 0:10:47.040 --> 0:10:49.079 It's always been there, it's always underlying. 0:10:49.520 --> 0:10:52.559 But once again now those fears and worries have sort 0:10:52.559 --> 0:10:55.720 of calmed down, attention can get back to AI, which 0:10:55.760 --> 0:10:58.160 is going to be still a very strong story across 0:10:58.200 --> 0:10:59.240 the second half of the year. 0:11:00.280 --> 0:11:04.440 Okay, let's zero in on Nvidia. Could Nvidia be the 0:11:04.559 --> 0:11:06.800 first four trillion dollar market cap company. 0:11:08.200 --> 0:11:09.959 I'm going to throw it out there and say, yes. 0:11:11.600 --> 0:11:13.880 You know, if we talk about if we think about 0:11:13.920 --> 0:11:14.360 what NA. 0:11:14.320 --> 0:11:17.360 Video and Video does, I mean, it's got this almost 0:11:17.400 --> 0:11:21.679 monopoly play it would feel on that AI chip area. 0:11:21.800 --> 0:11:24.240 I mean, we obviously had that sort of at the. 0:11:24.240 --> 0:11:27.599 Beginning of the year, we had that deep Seek unveiling 0:11:27.840 --> 0:11:31.520 and which concerned the markets, but not really because I 0:11:31.559 --> 0:11:34.839 mean the recovery has been very solid since then, as 0:11:34.840 --> 0:11:37.200 you said, up sixty six percent, So I mean that 0:11:37.400 --> 0:11:42.160 wasn't enough to really disrupt the bullish play for Nvidia. 0:11:42.280 --> 0:11:45.840 The customer base of Nvidia is extremely important. You've got 0:11:45.840 --> 0:11:48.640 you know, those big tech in there. You've got sort 0:11:48.640 --> 0:11:52.120 of you know, Amazon Meta, there are all these Microsoft, 0:11:52.120 --> 0:11:55.000 the big companies that are really supporting the revenue growth 0:11:55.040 --> 0:11:57.520 here as well. So I think that almost feeds in 0:11:57.600 --> 0:12:01.280 its into itself. Spending on A I think is only 0:12:01.480 --> 0:12:05.440 likely to increase from here where we are right now. Obviously, 0:12:05.480 --> 0:12:08.800 there are risks to that outlook, but I don't think 0:12:08.960 --> 0:12:13.600 they're necessarily so concerning that it's a potential limit to 0:12:13.760 --> 0:12:16.000 reaching that four trillion at level. 0:12:16.800 --> 0:12:19.280 So at this scale, you know, at the index level, 0:12:19.280 --> 0:12:22.160 it's not surprising that Nvidia is the biggest points contributor 0:12:22.360 --> 0:12:24.640 across the NASDAQ one hundred s and P five hundred 0:12:24.720 --> 0:12:27.839 Philadelphia Semiconductor Index. I'm going to do the math for 0:12:27.880 --> 0:12:30.280 the audience. We're at one hundred and fifty seven dollars 0:12:30.320 --> 0:12:32.319 fifty cents a share. I think we need to get 0:12:32.360 --> 0:12:34.520 to just below one hundred and sixty four dollars a 0:12:34.559 --> 0:12:37.360 share to hit four trillion. If that happens in this session, 0:12:37.920 --> 0:12:42.640 I'd be surprised. Nonetheless, those risks that you outlined are there. 0:12:42.960 --> 0:12:47.800 Custom Silicon at the Hyperscaler's potentially a product competition. There 0:12:47.800 --> 0:12:50.080 are others in this space AMD. We spoke to Man 0:12:50.120 --> 0:12:53.440 deep thing about earlier. Which of those kind of headwinds 0:12:53.440 --> 0:12:56.920 do you think is worth paying most attention to, Fiona. 0:12:58.040 --> 0:13:00.400 Yeah, So, as you point out, I think the concept 0:13:00.440 --> 0:13:07.040 of having competitors starting to close the gap with Nvidia 0:13:07.240 --> 0:13:11.120 is something that is a potential limit to the upside. 0:13:11.120 --> 0:13:13.600 But then saying that you know, this is still a 0:13:13.720 --> 0:13:17.240 huge a huge market, so there is potential to. 0:13:17.280 --> 0:13:20.080 Have you know, more than one top dog here. 0:13:20.640 --> 0:13:23.000 We don't know that yet because this is still very 0:13:23.080 --> 0:13:25.960 much discovery phase. It does feel but you know, given 0:13:26.000 --> 0:13:30.079 the potential huge uses for AI that could be the case. 0:13:30.440 --> 0:13:33.040 Fionas and coder a city index financial market. It's great 0:13:33.040 --> 0:13:35.080 to have you back on betech. Thank you so much. 0:13:35.200 --> 0:13:36.640 I want to take a quick look story out of 0:13:36.720 --> 0:13:39.680 China shares of Gaomie. These are the Hong Kong listed shares. 0:13:39.800 --> 0:13:42.240 They close up three point six percent overnight but at 0:13:42.240 --> 0:13:45.320 one point up eight percent, two hundred and eighty nine 0:13:45.440 --> 0:13:49.000 thousand pre orders for their brand new suv in just 0:13:49.120 --> 0:13:52.440 one single hour. There have been several million people on 0:13:52.480 --> 0:13:56.040 the webcast on x when they were presenting this new suv. 0:13:56.400 --> 0:13:57.160 Will continue to. 0:13:57.120 --> 0:13:59.640 Track that story coming out. We have a lot more 0:13:59.640 --> 0:14:11.600 to come. This is Bloomberg Tech. A German privacy regulator 0:14:11.600 --> 0:14:14.880 has warned Apple and Google that deep Seek, available on 0:14:14.920 --> 0:14:19.240 their app stores, constitutes illegal content because it exposes users 0:14:19.320 --> 0:14:23.360 data to Chinese authorities. The formal notification comes after deep 0:14:23.400 --> 0:14:26.360 seek ignored and may request to either pull its out 0:14:26.360 --> 0:14:29.320 from app stores in Germany or put in place safeguards 0:14:29.400 --> 0:14:32.760 when collecting local users data and then transmitting it to 0:14:32.920 --> 0:14:37.120 China elsewhere. Meta is in talks to acquire Playai, a 0:14:37.160 --> 0:14:41.120 startup that uses AI to replicate voices. That's according to sources, 0:14:41.320 --> 0:14:43.720 the deal will give Meta access to play aised tech 0:14:44.040 --> 0:14:46.840 and some of its employees, a move that caboost Meta's 0:14:46.880 --> 0:14:48.360 own AI assistant features. 0:14:48.360 --> 0:14:50.240 For more Bloombus kirk Wagner joins us. 0:14:50.200 --> 0:14:53.040 With the story that the Meta playbook is kind of 0:14:53.080 --> 0:14:56.880 emerging here in the Aquahier context. What does Playai do 0:14:56.960 --> 0:14:59.600 for Meta's own efforts. 0:15:00.000 --> 0:15:03.560 A specializes in voice assistance, and so if you think 0:15:03.560 --> 0:15:05.800 about what Meta is trying to accomplish with its Meta 0:15:05.840 --> 0:15:09.400 AI chatbot and the hands free devices we've talked about before, 0:15:09.560 --> 0:15:13.800 ed right, the ray Ban glasses, the oriyan Ar glasses 0:15:13.800 --> 0:15:16.120 that they're building, the whole notion is that you are 0:15:16.160 --> 0:15:18.840 going to need to control those devices with some type 0:15:18.840 --> 0:15:23.320 of voice assistant, right, And so I think this is 0:15:23.360 --> 0:15:25.600 the type of deal that could help sort of push 0:15:25.680 --> 0:15:28.560 that technology in that progress forward a little bit. It's 0:15:28.600 --> 0:15:31.320 also something where they could put some of this technology 0:15:31.320 --> 0:15:34.760 into their large language model, the LAMA model, that's open source, right, 0:15:34.800 --> 0:15:37.880 and then everybody who uses Lama might have more AI 0:15:37.960 --> 0:15:41.120 capabilities voice AI capabilities as part of that. So I 0:15:41.120 --> 0:15:42.720 think it fits into a bunch of different things that 0:15:42.720 --> 0:15:43.760 they're working on right now. 0:15:44.640 --> 0:15:46.840 So at Quahai we had scare lai. 0:15:47.320 --> 0:15:49.520 Is are we reporting that the structure of this would 0:15:49.520 --> 0:15:50.200 be similar to that? 0:15:51.720 --> 0:15:52.720 So this is slightly different. 0:15:52.800 --> 0:15:56.000 I'm told that this is going to include the technology 0:15:56.600 --> 0:15:59.240 that play ai is building, so it is both talent 0:15:59.760 --> 0:16:03.400 and technology in this deal. Again, it's not closed as 0:16:03.440 --> 0:16:05.760 of you know, yesterday when we reported this news, but 0:16:05.800 --> 0:16:09.040 it is certainly expected to happen, and so you know 0:16:09.280 --> 0:16:11.720 how much of the technology is ultimately going to be 0:16:11.920 --> 0:16:14.840 parted over used. I don't know for sure, but I 0:16:14.840 --> 0:16:17.880 think it's maybe slightly different than the scale AI thing 0:16:17.920 --> 0:16:20.280 because it does feel like they're bringing at least some 0:16:20.320 --> 0:16:21.880 of the technology in with them. 0:16:22.240 --> 0:16:23.600 Meta is spending a bit of money. 0:16:23.880 --> 0:16:26.880 I feel like, I don't know, it's like, let's throw 0:16:26.920 --> 0:16:29.960 money to get in this AI thing that innovating internally. 0:16:30.000 --> 0:16:32.320 I see reports about Boz kind of rallying the troops 0:16:32.320 --> 0:16:34.480 on what Meta is or isn't going to do compared 0:16:34.480 --> 0:16:37.120 to others just make sense of the strategy big picture 0:16:37.160 --> 0:16:37.480 for us. 0:16:38.120 --> 0:16:41.720 Well, you may remember that Mark Zuckerberg last summer spoke 0:16:41.760 --> 0:16:44.640 with our own Emily Chang, and he basically said that 0:16:44.720 --> 0:16:47.560 this is the kind of technology AI and the race 0:16:47.600 --> 0:16:49.520 for AI is the kind of technology that companies are 0:16:49.560 --> 0:16:51.960 going to overspend on. They are going to spend, you know, 0:16:52.120 --> 0:16:55.320 hundreds of billions of dollars to try and develop this 0:16:55.360 --> 0:16:57.640 stuff and be a leader in this stuff, not only 0:16:57.720 --> 0:17:00.280 because it then recruits other people, but because consumers are 0:17:00.280 --> 0:17:03.680 presumably going to go to whichever products are the highest 0:17:03.760 --> 0:17:07.160 quality and the most like interacting with another human being. 0:17:07.200 --> 0:17:10.440 And so you know, would you look at this through 0:17:10.440 --> 0:17:13.080 that lens, like, here's a company and a CEO dead 0:17:13.160 --> 0:17:17.080 set on getting AI. Right, they have this basically money 0:17:17.119 --> 0:17:20.600 printing machine in their advertising business with Facebook and Instagram, 0:17:20.920 --> 0:17:24.160 and they're choosing right now to push those profits, those 0:17:24.200 --> 0:17:27.920 proceeds into the AI race. And so I do think 0:17:27.960 --> 0:17:31.680 there's a realistic chance that Meta is over overspending here. 0:17:31.760 --> 0:17:31.920 Right. 0:17:31.960 --> 0:17:33.520 We'll look back in a few years and say, wow, 0:17:33.520 --> 0:17:37.480 they maybe they open the checkbook too much. But Mark 0:17:37.560 --> 0:17:39.879 Zuckerberg has acknowledged that might be what it takes in 0:17:39.960 --> 0:17:42.680 order to win this race, and so clearly that's something 0:17:42.720 --> 0:17:43.800 he's willing to do right now. 0:17:44.480 --> 0:17:47.000 Bloomers Kurt Wagner with all the meta reporting, Thank you 0:17:47.040 --> 0:17:47.520 so much. 0:17:48.640 --> 0:17:50.760 Crusoe and red with Materials. 0:17:50.240 --> 0:17:53.960 Are tackling AI's biggest challenge power. The two companies have 0:17:54.000 --> 0:17:57.920 teamed up to create North America's largest micro grid, powered 0:17:57.920 --> 0:18:02.400 by large scale solar and cycled batteries, the goal delivering 0:18:02.520 --> 0:18:07.080 rapidly deployable, mobile and scalable AI data centers that operate 0:18:07.119 --> 0:18:10.520 efficiently off grid. Cruso CEO Chase lock Miller joins US 0:18:10.560 --> 0:18:13.000 now along with Redwood CEO JB. 0:18:13.080 --> 0:18:13.560 Strawbel. 0:18:13.760 --> 0:18:15.600 You're both in the field and on the ground. Thank 0:18:15.640 --> 0:18:18.200 you so much for your time. Chase, I'll start with you. 0:18:19.359 --> 0:18:23.040 Is a means to provide power to scale data center. 0:18:23.440 --> 0:18:25.040 This is a really significant step. 0:18:26.119 --> 0:18:27.720 Absolutely thanks for hosting us ED. 0:18:28.160 --> 0:18:31.280 You know, thrilled to be joining you here from from 0:18:31.400 --> 0:18:35.000 from the field where Redwood and Cruso have partnered on 0:18:35.359 --> 0:18:40.440 building this very cool off grid AI data center that's 0:18:40.520 --> 0:18:44.120 powered by on site solar and end of life EV batteries. 0:18:44.160 --> 0:18:46.639 And you can see the array of batteries behind me. 0:18:47.040 --> 0:18:51.480 You can see this mobile and modular AI data center 0:18:51.480 --> 0:18:52.919 that we've dubbed Cruso Spark. 0:18:53.720 --> 0:18:54.359 Each of these. 0:18:54.320 --> 0:18:57.239 Data centers houses about five hundred GPUs and there's going 0:18:57.280 --> 0:19:00.520 to be four of them here, all powered with this grid, 0:19:01.280 --> 0:19:04.640 right micro grid and and batteries. 0:19:05.600 --> 0:19:05.879 JB. 0:19:06.080 --> 0:19:08.160 It's good to have you back on Bloomberg Tech. It's 0:19:08.160 --> 0:19:10.639 been a while, you know, we've we've we've been tracking 0:19:10.720 --> 0:19:13.480 the progress of Redwood, but I think there'll be a 0:19:13.520 --> 0:19:16.359 lot of value in you explaining the opportunity for you 0:19:16.480 --> 0:19:21.280 here in providing this technology platform to power AI data 0:19:21.320 --> 0:19:22.400 centers specifically. 0:19:23.760 --> 0:19:25.960 Well, it's great to be back, and yeah, thanks for 0:19:26.000 --> 0:19:29.080 the opportunity. This We've been growing steadily for quite a 0:19:29.119 --> 0:19:31.399 few years, and you know, today find ourselves in a 0:19:31.400 --> 0:19:35.520 position where there are a huge amount of transportation battery 0:19:35.520 --> 0:19:39.000 packs coming back from the field. We're in pole position 0:19:39.119 --> 0:19:41.280 to make best use of a lot of those assets, 0:19:41.680 --> 0:19:44.119 and we've i think, really invented a platform that you 0:19:44.160 --> 0:19:47.520 see behind us here that can deploy those cost efficiently 0:19:48.280 --> 0:19:51.879 to provide grid energy storage. And I think one of 0:19:51.880 --> 0:19:55.240 the best in highest value applications of that is to 0:19:55.280 --> 0:19:57.840 do things like what we're seeing here to provide very 0:19:57.920 --> 0:20:03.400 fast and reliable energy for AI expansion, JB. 0:20:03.520 --> 0:20:07.560 Could you just give us a sense of any capacity 0:20:07.600 --> 0:20:10.199 constraint that you have, you know, where you're sending your 0:20:10.200 --> 0:20:13.000 batteries to and how you're going to prioritize them as 0:20:13.040 --> 0:20:15.600 you go through the recycle or reuse process. 0:20:17.240 --> 0:20:20.520