Speaker 1: Bloomberg Audio Studios, Podcasts, Radio new Bloomberg Tech is alive
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Eva Low in San Francisco.
Speaker 2: This is Bloomberg Tech and coming up in video within reach,
Speaker 2: heading to be the first company to hit a four
Speaker 2: trillion dollar value plus.
Speaker 3: The US and China finalize.
Speaker 2: A trade truce which includes China's commitment to deliver rare Earth,
Speaker 2: and Crusoe teams up with Redwood to tackle AI's biggest challenge,
Speaker 2: power the largest deployment of reused batteries globally.
Speaker 3: For an AI data center.
Speaker 2: When we talk about technology and equity markets, there's a
Speaker 2: story right now that everyone's focused on. Could in Vidia
Speaker 2: be the first four trillion dollar marketcat company. We're at
Speaker 2: three point eighty three trillion dollars right now. Actually, we
Speaker 2: have some way to go. The stocks up like one
Speaker 2: point three one and a half percent in the session.
Speaker 2: It would need a gain of almost six percent to
Speaker 2: hit that milestone this Friday.
Speaker 3: But there's a longer term story.
Speaker 2: Since those April lows in markets that were coming out
Speaker 2: of that post deep seak, anxiety in video is up
Speaker 2: more than sixty percent we've come through earnings and there's
Speaker 2: a bullish thesis emerging that actually in Vidia has more
Speaker 2: room to run because of the commitment of those cloud
Speaker 2: computing companies to keep on spending and buying those in
Speaker 2: video GPUs, Will Nvidia be the.
Speaker 3: First four trillion dollar company?
Speaker 2: Let's get more. Mandy Singer Bloomberg Intelligence joins us. Now
Speaker 2: and Mandy, why it's so crucial we have you on
Speaker 2: the show. Is you cover the full spectrum of megacat
Speaker 2: tech four trillion dollars for Nvidia? What would be supporting
Speaker 2: that valuation?
Speaker 4: Yeah, Look, every data point that you have tragged this
Speaker 4: quarter has been supportive of estimate's going up. The leaders
Speaker 4: un being Micron talking about, you know, how their HPM
Speaker 4: sales continue to ramp up better and expected. And when
Speaker 4: it comes to inferencing, clearly the trend of you know,
Speaker 4: spending more compute at the time of query, the reasoning
Speaker 4: capabilities that these models have added, especially with open aio series,
Speaker 4: what that has done is really reinforced compute demand tied
Speaker 4: to inferencing, and that to me is what's driving this
Speaker 4: wave of you know, enthusiasm around and videos runway because
Speaker 4: the two hundred billion dollar number for this year. Clearly
Speaker 4: there's a line of sight even when you take out
Speaker 4: all the China revenue, which they did, you know, with
Speaker 4: the guide in the last quarter. And so the question
Speaker 4: is how much will they grow next year? And right
Speaker 4: now consensus is around two hundred and fifty billion dollars.
Speaker 4: So with sovereigns coming into play, especially Middle East and
Speaker 4: now Jensen being in Europe, you feel like, you know
Speaker 4: they have line of sight to that revenue as well,
Speaker 4: and that's why, you know, the multiple seems to be
Speaker 4: expanding here.
Speaker 2: Okay, just below one hundred and fifty seven dollars per share.
Speaker 2: I was doing the math with the team, and I
Speaker 2: think that one hundred and sixty four dollars per share
Speaker 2: or just below it would get us the four trillion
Speaker 2: dollars of market cap in Video was the first chip
Speaker 2: maker to hit a trillion dollars of market value, and
Speaker 2: of course it's gone well beyond that. But there are headwinds,
Speaker 2: and I think what Mandy would be helpful to the
Speaker 2: audience is to explain what's the threat to INVIDEA.
Speaker 3: Some of it is.
Speaker 2: The custom silicon that the hyperscalers are looking at, but
Speaker 2: there are other players in the market. AMD will have
Speaker 2: something to say about this monopoly that in Vidia currently holds.
Speaker 4: Yeah, and that's why you know, in video, opening up
Speaker 4: its platform the Envy Link now supporting other chips was
Speaker 4: such a big move and coming in at a great
Speaker 4: time because now they are saying, you can get Broadcom gear,
Speaker 4: but we'll be able to integrate it with our Envy Link,
Speaker 4: and that's where the opening up our ecosystem. I think
Speaker 4: it's a very wise move, and that helps in video
Speaker 4: because all the investment that companies are making in in
Speaker 4: video stack now can support some other tips. So with
Speaker 4: that being said, look, I mean the numbers are getting
Speaker 4: bigger and bigger, so you kind of think, yes, in
Speaker 4: VideA is a durable monopoly. But for how long, given
Speaker 4: you know all the other factors that you just described.
Speaker 4: But for right now, it feels like they clearly are
Speaker 4: executing very well on that front.
Speaker 2: Mandy's saying, who leads technology research of Bloomberg Intelligence, thank
Speaker 2: you so much.
Speaker 3: Let's get to the other top story.
Speaker 2: In Washington, US Commerce Secretary Howard Lutnik says a trade
Speaker 2: truce between the US and China has been signed.
Speaker 5: So the China deal, we inked the deal. You remember,
Speaker 5: we had a trip to Geneva and then that was
Speaker 5: being slow played. We got back together in London and
Speaker 5: that deal was signed and sealed two days ago.
Speaker 2: For the details, Bloombers Katie Lines joins us in. Kelly,
Speaker 2: that was your conversation, your interaction, and I think that
Speaker 2: what you were trying to get to is that there
Speaker 2: are deals to come. So where did China sit within
Speaker 2: what's being negotiated and what's been signed.
Speaker 6: Yeah, that's exactly right ed. And we should note this
Speaker 6: deal that was signed earlier this week that we just
Speaker 6: learned about yesterday evening and has now been confirmed by
Speaker 6: the Chinese side as well, is far from the kind
Speaker 6: of comprehensive trade agreement that could take much longer to negotiate.
Speaker 6: What it does solidify, though, is finalizing the framework that
Speaker 6: was initially as we just heard the Secretary say, agree
Speaker 6: to in Geneva, talked about again in London, and now
Speaker 6: finally is looking toward implementation. And what that will mean
Speaker 6: is that China will start approving once again the export
Speaker 6: of rare earth minerals. That was a sticking point obviously
Speaker 6: in the Commerce. Secretary says once those exports start flowing,
Speaker 6: the US will lift its own restrictive measures on exports
Speaker 6: on things like ethane. So it definitely is a step
Speaker 6: forward and the relationship trading relationship between these two countries,
Speaker 6: But of course it's just one step, and what is
Speaker 6: a multifaceted approach by this administration to reapproach trade not
Speaker 6: just with China but other trading partners as well. The
Speaker 6: other thing the Commerce Secretary told us in our conversation
Speaker 6: last night is that July ninth trade deadline is looming,
Speaker 6: is that the administration is expecting about ten expecting about
Speaker 6: ten trade deals to be announced over the course of
Speaker 6: the next few weeks. While he didn't get specific as
Speaker 6: to what countries exactly, he did echo the words we
Speaker 6: heard from President Trump at the White House yesterday that
Speaker 6: they're getting closer with India. He also expressed some optimism
Speaker 6: around negotiations with the European Union, specifically suggesting those have
Speaker 6: picked up in recent weeks, and we understand that optimism
Speaker 6: is being expressed privately by the European Commission President Ursula
Speaker 6: Vonderlion in recent days as well.
Speaker 2: There had been an idea, and it was an idea
Speaker 2: rather than something put forward by the parties that there
Speaker 2: could be this kind of trade off for quid pro
Speaker 2: quo where rare eerfs might come in exchange for some
Speaker 2: change in policy on the semiconductor side. What content of
Speaker 2: this discussion do we know if there is anything specifically
Speaker 2: relating to chips.
Speaker 6: Well, when it comes to chips, that is something that
Speaker 6: the US had suggested was going to be factored into
Speaker 6: this conversation. What we still don't know at this time,
Speaker 6: ed though we know deal has been signed, is actually
Speaker 6: what the nuances of it are. We didn't even know
Speaker 6: it had been signed until two days after the fact
Speaker 6: when the President said it kind of slipped up in
Speaker 6: the news conference or an event at the White House
Speaker 6: yesterday and the Commerce Secretary confirmed it. But we do
Speaker 6: know it all really does hinge on these critical minerals
Speaker 6: actually arriving in the US, those exports actually beginning. That
Speaker 6: is what the administration had been lobbying or levying accusations
Speaker 6: against China, rather saying that they were slow walking it,
Speaker 6: which is why there were some question as to whether
Speaker 6: this accord would be able to move forward in the
Speaker 6: first place. But China officials are telling Bloomberg today that
Speaker 6: they are going to start sifting through those applications. In
Speaker 6: that process should be underway, and that is when they
Speaker 6: can get into more where we could see the US
Speaker 6: actually starting to lift those restrictions. We just haven't sent
Speaker 6: them yet, as the Commerce Secretary is effectively saying, China has.
Speaker 7: To move first.
Speaker 2: Bloombos Kaye lines and I highly recommend you watch your
Speaker 2: interview of Commerce Secretary Lutnik.
Speaker 3: Thank you very much.
Speaker 2: Let's get more in the broader impact of both of
Speaker 2: those stories on the tech markets. Fionasen Coda is the
Speaker 2: City Index Financial Markets senior analysts and trade piece is
Speaker 2: where I want to start. We know more now than
Speaker 2: we did yesterday about the trade relationship between the US
Speaker 2: and China. As somebody that looks across the technology sector,
Speaker 2: has the market factored that in.
Speaker 8: Yes, it does feel that there is an improved sentiment,
Speaker 8: but it's not just on that China US deal. I
Speaker 8: think there has just been sort of a broad improvement
Speaker 8: in sentiment. It's been a very disruptive start to the
Speaker 8: year overall. So the fact that it feels that things
Speaker 8: are starting to slowly line up and fall into place.
Speaker 8: For example, the improved relations between the US and China
Speaker 8: that feels like it's starting to be priced in. Obviously,
Speaker 8: we've had the disruptions with regards to the Middle East
Speaker 8: and the impact that that's had on sentiment, But I
Speaker 8: feel that we are now able to sort of swift
Speaker 8: the shift the focus more towards typical sort of macro
Speaker 8: and a fundamental analysism focus, which we haven't been able
Speaker 8: to do for much of this year. So yes, you know,
Speaker 8: I feel that there is optimism that is being priced in,
Speaker 8: but I think that there potentially is more to run to.
Speaker 2: We're in a place right now this moment Friday, June
Speaker 2: twenty seventh, where the SMP five hundred could close a
Speaker 2: fresh record, largely to do a trade if you go
Speaker 2: just on this market summary on the Bloomberg terminal. But
Speaker 2: over the course of this week, we've talked about what
Speaker 2: has changed since April where markets kind of had that
Speaker 2: low and it is Micron, it is Palenteer, and now
Speaker 2: in Nvidia potentially at four trillion dollars. What is the
Speaker 2: biggest do you think driver of growth in this market
Speaker 2: at the moment?
Speaker 9: Well, it's a really good question, you know.
Speaker 8: I think what the problem that we had was that
Speaker 8: there was that massive shock and scare from Trump and
Speaker 8: what the impact of those potential trade tariffs could be.
Speaker 8: Now we didn't get that worst case scenario.
Speaker 9: In fact, we've been sort.
Speaker 8: Of pedaled backed quite a lot, and potentially now the
Speaker 8: outlook isn't so bad.
Speaker 9: Although will mind more out on July the ninth.
Speaker 8: But as far as tech is concerned as well, I
Speaker 8: think the environment, broadly speaking, the environment is much improving.
Speaker 8: There is a potential of a more dubvish Federal Reserve.
Speaker 8: You know, we had from Federal Reserve chair our own
Speaker 8: power this week. He did seem to have a slightly
Speaker 8: less hawkish stance, perhaps than at the end of the
Speaker 8: FED meeting in the previous week, So I think that
Speaker 8: is also helping.
Speaker 9: And also we've got sentiment.
Speaker 8: You know, investors are able to turn their focus back
Speaker 8: to the fundamentals, back to this AI trade, which really
Speaker 8: when we had there were so many disruptions earlier on
Speaker 8: in the year, between you know, Trump's taris, between the
Speaker 8: Middle East, between rating oil prices, the investors weren't able
Speaker 8: to focus on that AI story.
Speaker 9: It's always been there, it's always underlying.
Speaker 8: But once again now those fears and worries have sort
Speaker 8: of calmed down, attention can get back to AI, which
Speaker 8: is going to be still a very strong story across
Speaker 8: the second half of the year.
Speaker 2: Okay, let's zero in on Nvidia. Could Nvidia be the
Speaker 2: first four trillion dollar market cap company.
Speaker 9: I'm going to throw it out there and say, yes.
Speaker 9: You know, if we talk about if we think about
Speaker 9: what NA.
Speaker 8: Video and Video does, I mean, it's got this almost
Speaker 8: monopoly play it would feel on that AI chip area.
Speaker 9: I mean, we obviously had that sort of at the.
Speaker 8: Beginning of the year, we had that deep Seek unveiling
Speaker 8: and which concerned the markets, but not really because I
Speaker 8: mean the recovery has been very solid since then, as
Speaker 8: you said, up sixty six percent, So I mean that
Speaker 8: wasn't enough to really disrupt the bullish play for Nvidia.
Speaker 8: The customer base of Nvidia is extremely important. You've got
Speaker 8: you know, those big tech in there. You've got sort
Speaker 8: of you know, Amazon Meta, there are all these Microsoft,
Speaker 8: the big companies that are really supporting the revenue growth
Speaker 8: here as well. So I think that almost feeds in
Speaker 8: its into itself. Spending on A I think is only
Speaker 8: likely to increase from here where we are right now. Obviously,
Speaker 8: there are risks to that outlook, but I don't think
Speaker 8: they're necessarily so concerning that it's a potential limit to
Speaker 8: reaching that four trillion at level.
Speaker 2: So at this scale, you know, at the index level,
Speaker 2: it's not surprising that Nvidia is the biggest points contributor
Speaker 2: across the NASDAQ one hundred s and P five hundred
Speaker 2: Philadelphia Semiconductor Index. I'm going to do the math for
Speaker 2: the audience. We're at one hundred and fifty seven dollars
Speaker 2: fifty cents a share. I think we need to get
Speaker 2: to just below one hundred and sixty four dollars a
Speaker 2: share to hit four trillion. If that happens in this session,
Speaker 2: I'd be surprised. Nonetheless, those risks that you outlined are there.
Speaker 2: Custom Silicon at the Hyperscaler's potentially a product competition. There
Speaker 2: are others in this space AMD. We spoke to Man
Speaker 2: deep thing about earlier. Which of those kind of headwinds
Speaker 2: do you think is worth paying most attention to, Fiona.
Speaker 8: Yeah, So, as you point out, I think the concept
Speaker 8: of having competitors starting to close the gap with Nvidia
Speaker 8: is something that is a potential limit to the upside.
Speaker 8: But then saying that you know, this is still a
Speaker 8: huge a huge market, so there is potential to.
Speaker 9: Have you know, more than one top dog here.
Speaker 8: We don't know that yet because this is still very
Speaker 8: much discovery phase. It does feel but you know, given
Speaker 8: the potential huge uses for AI that could be the case.
Speaker 2: Fionas and coder a city index financial market. It's great
Speaker 2: to have you back on betech. Thank you so much.
Speaker 2: I want to take a quick look story out of
Speaker 2: China shares of Gaomie. These are the Hong Kong listed shares.
Speaker 2: They close up three point six percent overnight but at
Speaker 2: one point up eight percent, two hundred and eighty nine
Speaker 2: thousand pre orders for their brand new suv in just
Speaker 2: one single hour. There have been several million people on
Speaker 2: the webcast on x when they were presenting this new suv.
Speaker 3: Will continue to.
Speaker 2: Track that story coming out. We have a lot more
Speaker 2: to come. This is Bloomberg Tech. A German privacy regulator
Speaker 2: has warned Apple and Google that deep Seek, available on
Speaker 2: their app stores, constitutes illegal content because it exposes users
Speaker 2: data to Chinese authorities. The formal notification comes after deep
Speaker 2: seek ignored and may request to either pull its out
Speaker 2: from app stores in Germany or put in place safeguards
Speaker 2: when collecting local users data and then transmitting it to
Speaker 2: China elsewhere. Meta is in talks to acquire Playai, a
Speaker 2: startup that uses AI to replicate voices. That's according to sources,
Speaker 2: the deal will give Meta access to play aised tech
Speaker 2: and some of its employees, a move that caboost Meta's
Speaker 2: own AI assistant features.
Speaker 3: For more Bloombus kirk Wagner joins us.
Speaker 2: With the story that the Meta playbook is kind of
Speaker 2: emerging here in the Aquahier context. What does Playai do
Speaker 2: for Meta's own efforts.
Speaker 10: A specializes in voice assistance, and so if you think
Speaker 10: about what Meta is trying to accomplish with its Meta
Speaker 10: AI chatbot and the hands free devices we've talked about before,
Speaker 10: ed right, the ray Ban glasses, the oriyan Ar glasses
Speaker 10: that they're building, the whole notion is that you are
Speaker 10: going to need to control those devices with some type
Speaker 10: of voice assistant, right, And so I think this is
Speaker 10: the type of deal that could help sort of push
Speaker 10: that technology in that progress forward a little bit. It's
Speaker 10: also something where they could put some of this technology
Speaker 10: into their large language model, the LAMA model, that's open source, right,
Speaker 10: and then everybody who uses Lama might have more AI
Speaker 10: capabilities voice AI capabilities as part of that. So I
Speaker 10: think it fits into a bunch of different things that
Speaker 10: they're working on right now.
Speaker 3: So at Quahai we had scare lai.
Speaker 2: Is are we reporting that the structure of this would
Speaker 2: be similar to that?
Speaker 3: So this is slightly different.
Speaker 10: I'm told that this is going to include the technology
Speaker 10: that play ai is building, so it is both talent
Speaker 10: and technology in this deal. Again, it's not closed as
Speaker 10: of you know, yesterday when we reported this news, but
Speaker 10: it is certainly expected to happen, and so you know
Speaker 10: how much of the technology is ultimately going to be
Speaker 10: parted over used. I don't know for sure, but I
Speaker 10: think it's maybe slightly different than the scale AI thing
Speaker 10: because it does feel like they're bringing at least some
Speaker 10: of the technology in with them.
Speaker 3: Meta is spending a bit of money.
Speaker 2: I feel like, I don't know, it's like, let's throw
Speaker 2: money to get in this AI thing that innovating internally.
Speaker 2: I see reports about Boz kind of rallying the troops
Speaker 2: on what Meta is or isn't going to do compared
Speaker 2: to others just make sense of the strategy big picture
Speaker 2: for us.
Speaker 10: Well, you may remember that Mark Zuckerberg last summer spoke
Speaker 10: with our own Emily Chang, and he basically said that
Speaker 10: this is the kind of technology AI and the race
Speaker 10: for AI is the kind of technology that companies are
Speaker 10: going to overspend on. They are going to spend, you know,
Speaker 10: hundreds of billions of dollars to try and develop this
Speaker 10: stuff and be a leader in this stuff, not only
Speaker 10: because it then recruits other people, but because consumers are
Speaker 10: presumably going to go to whichever products are the highest
Speaker 10: quality and the most like interacting with another human being.
Speaker 10: And so you know, would you look at this through
Speaker 10: that lens, like, here's a company and a CEO dead
Speaker 10: set on getting AI. Right, they have this basically money
Speaker 10: printing machine in their advertising business with Facebook and Instagram,
Speaker 10: and they're choosing right now to push those profits, those
Speaker 10: proceeds into the AI race. And so I do think
Speaker 10: there's a realistic chance that Meta is over overspending here.
Speaker 11: Right.
Speaker 10: We'll look back in a few years and say, wow,
Speaker 10: they maybe they open the checkbook too much. But Mark
Speaker 10: Zuckerberg has acknowledged that might be what it takes in
Speaker 10: order to win this race, and so clearly that's something
Speaker 10: he's willing to do right now.
Speaker 2: Bloomers Kurt Wagner with all the meta reporting, Thank you
Speaker 2: so much.
Speaker 3: Crusoe and red with Materials.
Speaker 2: Are tackling AI's biggest challenge power. The two companies have
Speaker 2: teamed up to create North America's largest micro grid, powered
Speaker 2: by large scale solar and cycled batteries, the goal delivering
Speaker 2: rapidly deployable, mobile and scalable AI data centers that operate
Speaker 2: efficiently off grid. Cruso CEO Chase lock Miller joins US
Speaker 2: now along with Redwood CEO JB.
Speaker 3: Strawbel.
Speaker 2: You're both in the field and on the ground. Thank
Speaker 2: you so much for your time. Chase, I'll start with you.
Speaker 2: Is a means to provide power to scale data center.
Speaker 2: This is a really significant step.
Speaker 3: Absolutely thanks for hosting us ED.
Speaker 7: You know, thrilled to be joining you here from from
Speaker 7: from the field where Redwood and Cruso have partnered on
Speaker 7: building this very cool off grid AI data center that's
Speaker 7: powered by on site solar and end of life EV batteries.
Speaker 7: And you can see the array of batteries behind me.
Speaker 7: You can see this mobile and modular AI data center
Speaker 7: that we've dubbed Cruso Spark.
Speaker 3: Each of these.
Speaker 7: Data centers houses about five hundred GPUs and there's going
Speaker 7: to be four of them here, all powered with this grid,
Speaker 7: right micro grid and and batteries.
Speaker 3: JB.
Speaker 2: It's good to have you back on Bloomberg Tech. It's
Speaker 2: been a while, you know, we've we've we've been tracking
Speaker 2: the progress of Redwood, but I think there'll be a
Speaker 2: lot of value in you explaining the opportunity for you
Speaker 2: here in providing this technology platform to power AI data
Speaker 2: centers specifically.
Speaker 12: Well, it's great to be back, and yeah, thanks for
Speaker 12: the opportunity. This We've been growing steadily for quite a
Speaker 12: few years, and you know, today find ourselves in a
Speaker 12: position where there are a huge amount of transportation battery
Speaker 12: packs coming back from the field. We're in pole position
Speaker 12: to make best use of a lot of those assets,
Speaker 12: and we've i think, really invented a platform that you
Speaker 12: see behind us here that can deploy those cost efficiently
Speaker 12: to provide grid energy storage. And I think one of
Speaker 12: the best in highest value applications of that is to
Speaker 12: do things like what we're seeing here to provide very
Speaker 12: fast and reliable energy for AI expansion, JB.
Speaker 2: Could you just give us a sense of any capacity
Speaker 2: constraint that you have, you know, where you're sending your
Speaker 2: batteries to and how you're going to prioritize them as
Speaker 2: you go through the recycle or reuse process.
Speaker 12: Yeah, so we aim to reuse and repurpose every battery
Speaker 12: that we possibly can, anything that has remaining life. You know,
Speaker 12: we already have gigawatt hours of batteries in the pipeline
Speaker 12: to do that. This project alone is already the largest
Speaker 12: microgrid in North America and also the world's largest deployment
Speaker 12: of second life reused batteries. But we're already aiming at
Speaker 12: projects that are twenty two one hundred times larger than this,
Speaker 12: So there's a lot to come in the growth in
Speaker 12: the pipeline.
Speaker 3: Chase.
Speaker 2: You and I very recently discussed, and indeed we had
Speaker 2: Drew Baglino on the show right from heron the need
Speaker 2: to modernize energy infrastructure in the context of the data
Speaker 2: center build out. Are you able to kind of quantify
Speaker 2: or give our audience a sense of the challenge of
Speaker 2: how much a bottleneck the energy component is when you're
Speaker 2: building out these data centers around this country.
Speaker 7: Yeah.
Speaker 13: Absolutely.
Speaker 7: You know, one of the major aspects to the bottleneck
Speaker 7: for energy really is the speed. You know, people are
Speaker 7: applying for grid inter connections and they're finding themselves in
Speaker 7: multi year you know, five ten year.
Speaker 3: Cues to basically get that load approval. What we've done
Speaker 3: here is rapidly deployed these.
Speaker 7: Modular and mobile data centers alongside this solar and battery installment,
Speaker 7: and this all came together in about four months, so
Speaker 7: we were able to rapidly sort of manufacture in the
Speaker 7: Cruso factories these modular data centers and deploy this large
Speaker 7: array of batteries of partnership with with Redwood to effectively
Speaker 7: drive power to AI infrastructure on a really fast basis.
Speaker 7: You know, from our perspective, our philosophy is that the
Speaker 7: future of AI is going to be abundant and it's
Speaker 7: going to be ubiquitous, which means that we're going to
Speaker 7: need very large scale AI data centers like what we're
Speaker 7: building an Applie Texus. They're gonna gig a lot scale,
Speaker 7: five gig, WoT scale, ten gig a loot scale, massive
Speaker 7: facilities to train the next frontier models, and then you're
Speaker 7: going to have lots of smaller modular inference data centers
Speaker 7: that are deploying and serving customers rearb edge like what
Speaker 7: we built here or in Sparks with Cruso Spark unit.
Speaker 2: And for so many technology companies on prem is so
Speaker 2: back chase. How much of a premium is there on
Speaker 2: the cost of JB's technology versus other sources of energy
Speaker 2: and other storage options.
Speaker 7: Yeah, that's actually one of the magical things about this
Speaker 7: is it has something that I call the negative green premium.
Speaker 7: We are powering this site entirely with solar and batteries,
Speaker 7: so we're getting ground the clock twenty four to seven
Speaker 7: power all from the sun, and it's cheaper than our
Speaker 7: overall cost of power in a market like Northern Virginia,
Speaker 7: so it's faster, cheaper, and it can be rapidly deployed
Speaker 7: almost anywhere. So something we're really proud of.
Speaker 3: I'm really excited about JB.
Speaker 2: This is obviously a big, a big deal on a
Speaker 2: big milestone for Redwood. But again, it's been sometimes since
Speaker 2: you've been on the show. Update us on your progress
Speaker 2: to date and the next steps is you scale this process.
Speaker 2: We just have one minute.
Speaker 12: Well at Redwood today, we're by far the largest battery
Speaker 12: recycler in North America. You know, we have hundreds of
Speaker 12: millions in revenue from the recycling operations, and this new
Speaker 12: energy business that we're launching is our next chapter of growth.
Speaker 2: All right, CRUSO CEO Chase lock Miller alongside Redwood Material
Speaker 2: CEO JB. Strawbell live from the ground. Great to have
Speaker 2: you both back on Bloomberg Tech. Welcome back to Bloomberg Tech.
Speaker 2: In equity markets, it is the tech sector that's kind
Speaker 2: of leading the way over the course of this week,
Speaker 2: major indicason. Then now's that one hundreds where I focus
Speaker 2: right because of that high concentration of tech on track
Speaker 2: to close a fresh record highs. The narrative is really
Speaker 2: progress in trade talks.
Speaker 3: Principally between the US and China.
Speaker 2: But then there are those single names, and Nvidia is
Speaker 2: our main focus right now. In Vidia once again the
Speaker 2: world's most valuable company, pushing to fresh record highs. But
Speaker 2: now at three point eight five trillion dollars in market cap,
Speaker 2: could this be the first four trillion dollar market cap company?
Speaker 2: That's what we're looking for. We're up about one and
Speaker 2: a half percent in the session. We need a gain
Speaker 2: of almost six percent to get there. Maybe not today,
Speaker 2: maybe in the coming weeks, but that would be the milestone,
Speaker 2: the first four trillion dollar market cap company. There are
Speaker 2: some other stories out there that we're paying attention to
Speaker 2: that link AI and energy. One of them Palented it
Speaker 2: wants to power up nuclear in America and it's teeming
Speaker 2: up with the nuclear company to co develop and deploy
Speaker 2: the first AI driven real time software system built exclusively
Speaker 2: nuclear construction. I caught up with Palanties head of Defense
Speaker 2: Mike Gallagher and the Uculear Company CEO Jonathan Webb to
Speaker 2: discuss the significance of the partnership, but why NUCUIA is
Speaker 2: a national security priority.
Speaker 14: I think it is how we revitalize not just a
Speaker 14: defense industrial base, but an American industrial base.
Speaker 3: Right, if you think about it in.
Speaker 14: Terms of our relative competition with our primary geo political threat, China,
Speaker 14: we can't win merely by throwing more money and more
Speaker 14: human beings at the problem. That's sort of a losing that.
Speaker 14: We have to leverage our asymmetric advantage, which is innovation
Speaker 14: and AI enabled software innovation. So applying that to the
Speaker 14: entire American industrial base, I think is how we begin
Speaker 14: to build things faster, more quickly. As Jonathan mentioned, it
Speaker 14: shouldn't take over a decade to build a reactor in
Speaker 14: this country. That's not just a consequence of over regulation,
Speaker 14: though that is a key variable. It's about liberating the
Speaker 14: human beings who are involved in producing these things day
Speaker 14: to day to focus on their most important task rather
Speaker 14: than trying to find a piece of paper somewhere or
Speaker 14: an Excel spreadsheet. It's about allowing them to focus and
Speaker 14: maximizing their productivity. That's what we're seeing with our deployment
Speaker 14: of war speed in other spaces. That's what makes me
Speaker 14: so bullish about this partnership. And that's ultimately again, how
Speaker 14: we keep this country strong, secure and ahead of all
Speaker 14: of our geopolitical rivals.
Speaker 3: Yeah, indeed, think you please jump in please, Well.
Speaker 15: What I would say is that this is this is
Speaker 15: absolutely a national security concern and we should all be
Speaker 15: deeply concerned that China in the next few years is
Speaker 15: going to become the largest nuclear power producer on planet Earth.
Speaker 3: They will pass the US for the.
Speaker 15: First time since the history of nuclear power was invented.
Speaker 3: This is unacceptable.
Speaker 2: That was Palanted's head of Defense, Mike Gallagher, and the
Speaker 2: Nuclear company CEO Jonathan Webb, an Israel based robotics startup
Speaker 2: aiming to improve and expand access to crucial eye surgery,
Speaker 2: has recently closed a one hundred and twenty five million
Speaker 2: dollars Series B funding round. The company, for Sights Robotics,
Speaker 2: says it's from us is AI based algorithms, advanced computer vision,
Speaker 2: and micro mechanics to access any point within the human eye.
Speaker 2: For PSITE, co founder, president and chief medical officer, doctor
Speaker 2: Joseph Nathan joins us LIVE, I think up right in
Speaker 2: saying that in the context of robotics history, this was
Speaker 2: one of the top series bes of all time. It's
Speaker 2: a significant sum of money. Let's start with what you're
Speaker 2: going to do with that funding and what you need
Speaker 2: to do to make progress right.
Speaker 13: First of all, thank you for having me. It's fair
Speaker 13: to be here.
Speaker 16: What we're developing it forced that is you said, it's
Speaker 16: a robotic platform to tackle one of the biggest needs
Speaker 16: in medicine, which is the vision crisis. So currently today
Speaker 16: we have over two billion people who are vision impaired
Speaker 16: and that creates a yearly three trillion dollar economic burden.
Speaker 16: And this crisis is mostly due to the lack of
Speaker 16: surgeons to cater to this massive amount of patience and
Speaker 16: the lack of quality of standard in I care. So
Speaker 16: what we're doing at foresight, as you mentioned, we're taking
Speaker 16: AI in our technologies to augment surgeons capabilities and have
Speaker 16: them doing many more procedures in a very precise and
Speaker 16: act right way. And we're starting with care ACT, which
Speaker 16: is our first indication.
Speaker 2: Does and Anathan, how big is the addressable market here?
Speaker 16: So this is one of the biggest markets in medicine.
Speaker 16: This is the most common precision of medicine. Care acts
Speaker 16: is not. The disease is a widespread condition that happens
Speaker 16: during age, so it will happen to everybody eventually, and
Speaker 16: we just we don't keep up with the amount of
Speaker 16: surgeries that needs to be done. So today, for example,
Speaker 16: we can do globally thirty million procedures a year, but
Speaker 16: there's over six hundred million patients needed. So there's really
Speaker 16: no human way to this gap. And as you mentioned,
Speaker 16: this is the largest, the second largest be round in
Speaker 16: surgical robotics history, and this round is going to take
Speaker 16: us from where we are today. So we did thirty
Speaker 16: three hundred procedure and animal models and we're going to
Speaker 16: do our first in human trials later this year, and
Speaker 16: it's going to take us through regulatory approvals and early commercialization.
Speaker 2: Doctor Nathan, you join us from Israel and we have
Speaker 2: to address the events of the last few weeks. Would
Speaker 2: you just reflect on what it's been like closing this
Speaker 2: round but also just trying to build out the technology
Speaker 2: in an environment where Israel is at war with Iran.
Speaker 13: Yeah, you're definitely right.
Speaker 16: There were usually, you know, there's volatility in the Middle East,
Speaker 16: but this was different. We had ballistic missiles dropping from
Speaker 16: the sky. We had, you know, to run with our
Speaker 16: kids through the shelters. But there's in our spirit and
Speaker 16: the Israeli spirit is that Israeli tech delivers no matter what,
Speaker 16: and during missiles coming from the sky. We closed this
Speaker 16: Bee round and you know, this company was started five
Speaker 16: years ago during COVID, we went through a very big
Speaker 16: economic recession, the war in Gaza, and now I ran.
Speaker 16: So this vote of confidence by investors and also a
Speaker 16: strategic partner that we joined to this round, it's truly
Speaker 16: amazing and I think it's a testament to Israeli resilient
Speaker 16: and our ability to get through hurdles. If it's you know,
Speaker 16: uncertainty in the Middle East, it could be uncertainty during development.
Speaker 16: We're developing a disruptive solution that's very hard to do.
Speaker 16: So I'm very very proud of the team for you know.
Speaker 2: And during this I ask you about the operational experience
Speaker 2: ends of recent weeks because we also talked about the
Speaker 2: addressable market. And it's likely right that that addressable market
Speaker 2: is outside of Israel.
Speaker 3: So is it the future of.
Speaker 2: This company that you maintain your talent, pull your operations
Speaker 2: in that country or you need to look at expanding
Speaker 2: globally to capture that market.
Speaker 16: Right, we are a global company. Our first target market
Speaker 16: is the US. We're going to transition our operation to
Speaker 16: the US. We are very privileged, as you said, to
Speaker 16: be doing good and our addressable market, you know, people
Speaker 16: have cataut regardless of their ethnicity to graph et cetera.
Speaker 16: So our first target market is the US. We're going
Speaker 16: to transition our operation there, but also to other places.
Speaker 16: So you're definitely right, it's outside of the realms of Israel.
Speaker 2: What I find so interesting about the technology is it
Speaker 2: blends robotics hardware with software. What would you say is
Speaker 2: your core company tens.
Speaker 13: Well it's faced.
Speaker 16: So you start with a lot of you know, building
Speaker 16: very small mechanics and then you know, software is like
Speaker 16: the brain takes over. So think about we're doing like,
Speaker 16: you know, superhuman extension of you know, the surgeon hands
Speaker 16: and arms coupled with best in class visualization and the
Speaker 16: software brain that operates everything and gives the surgeons the
Speaker 16: ability to be more precise and accurate in every case.
Speaker 16: And what I when I try to explain what we're doing,
Speaker 16: what we want to achieve. We want to transition to
Speaker 16: transform the average surgeon to the Michael Jordan of surgeons.
Speaker 16: But in every procedure, you know, regardless if it's the
Speaker 16: first procedure of the day or the last procedure of
Speaker 16: the day.
Speaker 13: And that's really what it's all about.
Speaker 2: I lost you again, what you plan to do with
Speaker 2: the funding. There's a real premium on software talent in
Speaker 2: particular right now, but across robotics.
Speaker 16: Right so yeah, you know, we we were fortunate enough
Speaker 16: to get and we have Nvidia is you know, our
Speaker 16: neighbors and Facebook and Apple, so we're competing with the
Speaker 16: you know, those companies on the best talent. What we
Speaker 16: have is you know, the ability to give our team
Speaker 16: member join a journey to transform the atomic market. So
Speaker 16: currently there's you know, no robotics on the thomic market,
Speaker 16: while other specialties have gained robotics for ten to fifteen years.
Speaker 13: And this is because you know, we didn't.
Speaker 16: Have the miniaturization, the surgy, the technological advancement that happened
Speaker 16: over the last you know, maybe five years in order
Speaker 16: to get a robotic platform doing such a precise micro
Speaker 16: level movements. And when you're talking about computing power or software,
Speaker 16: you know, the Nvidia of the world gave us the
Speaker 16: ability to have this computer paper to control this micro
Speaker 16: level precision.
Speaker 13: So it's you know, interconnected here.
Speaker 2: Doctor Joseph Nathan, co founder, president and chief medical officer
Speaker 2: for ForSight Robotics, thank you, Okay. Coming up, former CFTC
Speaker 2: Commissioner and newly appointed CEO of the Blockchain Association, Some
Speaker 2: Mersinger joins us to talk about the push for crypto legislation.
Speaker 3: As next this is Bloomberg Tech.
Speaker 2: The House is expected to combine two crypto bills, the
Speaker 2: Genius and Clarity Acts, as it aims to finalize regulation
Speaker 2: the digital currencies in the US. For more, I want
Speaker 2: to bring in summer Mersinger. She's a former commissioner at
Speaker 2: the Commodity Futures Training Commission CFTC and the new CEO
Speaker 2: of the Blockchain Association. Let's star with this latest news, right,
Speaker 2: This is what Bloomberg put out last night yesterday evening
Speaker 2: out of DC that the idea is to advance two
Speaker 2: separate measures in a single procedural vote.
Speaker 3: We actually had David Sacks the cryptos.
Speaker 2: Are on the show a couple of weeks ago, where
Speaker 2: we put this idea to him. What do you make
Speaker 2: of that structure and the impact that it might have.
Speaker 11: Yeah, it's important that they're able to bring the two
Speaker 11: bills to the floor but also have them separate so
Speaker 11: that the Genius Act can move on its own and
Speaker 11: be signed into a law. I think the House is
Speaker 11: very committed to having both stable coin legislation and market
Speaker 11: structure legislation done before the August recess. This allows them
Speaker 11: to do that while also preeing up Genius to move
Speaker 11: to a Drugly to the President.
Speaker 2: How consequential is the movement of these two pieces of
Speaker 2: legislation combined as one. In sort of the history of
Speaker 2: how crypto and the crypto industry and the underlying technology
Speaker 2: has built up in this country and around the world.
Speaker 11: Frankly, yeah, this is a pivotal moment, and I think
Speaker 11: it's pretty historic where we are. We have two very
Speaker 11: important pieces of legislation moving through Congress at the same
Speaker 11: time that will have enormous impact on how this technology
Speaker 11: and the businesses that have layered on it, how they
Speaker 11: are regulated. It's rare that Congress has two pieces of
Speaker 11: legislation in the same industry moving at the same time.
Speaker 11: So I think that is historic in and of itself.
Speaker 11: But given how far the industry has come, just you know,
Speaker 11: a few years ago, they were facing enforcement, lack of clarity,
Speaker 11: almost a hostile regulatory environment. And now we have a
Speaker 11: crypto administration of pro crypto Congress, and we're going to
Speaker 11: see major legislation put into place that will provide a
Speaker 11: framework for this industry.
Speaker 3: You say, a hostile regulatory environment.
Speaker 2: Does the content of these two bills provide the sort
Speaker 2: of safeguards and ethical safety net that many in the
Speaker 2: industry and Democrats also were calling for in the writing
Speaker 2: of it.
Speaker 11: It does, and it provides a framework for the industry
Speaker 11: to abide by regulations. I think, you know, previously they
Speaker 11: were trying to be regulated. They wanted to be regulated.
Speaker 11: They were trying to walk in the door of the
Speaker 11: regulators to say what can we do to follow rules,
Speaker 11: and they were being met with enforcement cases. Now they're
Speaker 11: going to have a framework they can follow so they
Speaker 11: can come under the regulatory sphere. That's both very helpful
Speaker 11: for the industry because that provides a certainty they need
Speaker 11: to continue to be the innovators that they are, but
Speaker 11: it also gives a lot of safeguards to those who
Speaker 11: want to be in this market, to retail participants of
Speaker 11: those who are buying and selling crypto. Those safeguards are
Speaker 11: missing right now, and this framework will provide safeguards.
Speaker 2: Some of what the industry keeps telling me, what your
Speaker 2: association members keep telling me, is this is about dollarization.
Speaker 3: Do you share that thesis?
Speaker 13: Yeah.
Speaker 11: For stable coins, for sure, it's very important that we
Speaker 11: have the stable coin legislation. There's a lot of, you know,
Speaker 11: national security interest in having stable coin regime here in
Speaker 11: the United States, making sure the US dollar is the
Speaker 11: backing for stable coins, and to continue to have the
Speaker 11: US be the kind of the first place where stable
Speaker 11: coin issuers want to go and want to use the
Speaker 11: US dollar as their currency backing for those coins.
Speaker 2: I think what many of our audience might appreciate, Like
Speaker 2: many people, they don't know what a stable coin is,
Speaker 2: what its function is, how the utility of it to
Speaker 2: everyday financial procedures. Do you have an explanation of that
Speaker 2: for the layperson that's watching right now.
Speaker 11: Yeah, it's another way to move funds electronically. And you know,
Speaker 11: I think for a lot of people in their mind
Speaker 11: right now, when you move funds electronically, it takes time.
Speaker 9: It's not immediate