WEBVTT - Oracle Slides by Most Since January on Mounting AI Spending

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive

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<v Speaker 1>from coast to coast with Caroline Hyde in New York

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<v Speaker 1>and Vavelow in San Francisco.

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<v Speaker 2>This is Bloomberg Tech coming up Oracle Fools. After reporting

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<v Speaker 2>a jumping in spending on AI data centers and other equipment.

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<v Speaker 3>We're going to discuss the.

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<v Speaker 2>Impact and there is impact on the broader tech sector.

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<v Speaker 4>Plus, Disney agrees to invest one billion dollars in Open

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<v Speaker 4>AI and license characters for use on the Sora generative

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<v Speaker 4>video platform.

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<v Speaker 2>And more tech earnings with Chit design software maker. Synopsis

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<v Speaker 2>our conversation with the CEO later this hour.

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<v Speaker 4>Meanwhile, we turn to some breaking news and it's geopolitical

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<v Speaker 4>in nature at the moment, so ed we are looking

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<v Speaker 4>more broadly at the Ukrainian President Vladimus Selenski floating the

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<v Speaker 4>prospect and putting the shoot of territorial control in a

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<v Speaker 4>piece deal to a referendum. Now, this as Kiev comes

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<v Speaker 4>under mounting pressure to agree to terms to end Russia's war.

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<v Speaker 4>Moscow has insisted that Ukraine withdraw its forces from the

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<v Speaker 4>eastern Donbass region, which the Russian military has failed to capture.

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<v Speaker 4>It in its nearly four year invasion, and I'm afraid

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<v Speaker 4>step aside J Powell. The focus is all on Larry

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<v Speaker 4>Ellison and what is happening at Oracle and how much

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<v Speaker 4>money is being deployed in the buildout of infrastructure ed.

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<v Speaker 3>The anxiety is coming from Oracle.

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<v Speaker 2>This is a two day chart to make a visual

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<v Speaker 2>representation of the point.

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<v Speaker 3>It's a big drop right now on.

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<v Speaker 2>Track if it closes at this level of decline, its

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<v Speaker 2>biggest drop in twenty one years, going twenty four years, sorry,

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<v Speaker 2>going back to two thousand and one, very simply capital

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<v Speaker 2>expenditures several billion dollars beyond what the street thought they

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<v Speaker 2>would be in the quarter. Cloud growth, We're talking cloud

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<v Speaker 2>growth way up there, particularly in the infrastructure unit, but

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<v Speaker 2>just shy of very high expectations. Interesting right now if

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<v Speaker 2>you look at the chip space, Nvidia also like broad Com,

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<v Speaker 2>big declines and at the index level that you were

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<v Speaker 2>just showing us, Caroline, those names are part of the drag.

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<v Speaker 3>So we need to dig into what's going on.

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<v Speaker 4>Yeah, and we've got broad Com numbers after the bell

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<v Speaker 4>as well. Let's focus in on Oracle bunning bugs. Brodie

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<v Speaker 4>Ford has been covering this story and we knew that

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<v Speaker 4>they were spending an awful lot on capital expendit ship,

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<v Speaker 4>but fifty billion and not enough in terms of the

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<v Speaker 4>revenue to show for it.

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<v Speaker 5>Yeah, AI anxiety is right. I mean, the big question

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<v Speaker 5>for Oracle and all of its peers right now is

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<v Speaker 5>is building AI infrastructure a good business to be in.

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<v Speaker 5>Wall Street understands it takes a lot of upfront costs,

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<v Speaker 5>but it seems like every single quarter it's more than

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<v Speaker 5>we thought it would be and the revenue recognition is

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<v Speaker 5>further out than we thought it would be. And so

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<v Speaker 5>Oracle kind of gave the exact message that Wall Street

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<v Speaker 5>wasn't hoping for, which is we're spending more and it's

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<v Speaker 5>taking a little longer than you expected to see the

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<v Speaker 5>revenue uplift.

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<v Speaker 2>But it's a trade off with growth. So I'm just

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<v Speaker 2>going to go through some of the numbers. Right the

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<v Speaker 2>Street thought that capsule expenditures in the quarter would be

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<v Speaker 2>about eight billion.

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<v Speaker 3>They ended up being twelve billion.

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<v Speaker 2>But overall cloud growth get into that and then infrastructure

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<v Speaker 2>growth like that, that is growth. It's just that it's

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<v Speaker 2>basically in line with consensus. What more is it that

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<v Speaker 2>the Street wants?

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<v Speaker 3>Yes, it's big growth.

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<v Speaker 5>But the question is is it empty calories?

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<v Speaker 6>Right?

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<v Speaker 5>I mean, what is it really? I mean the first

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<v Speaker 5>question on the earnings call last night was please tell

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<v Speaker 5>us how much it's going to cost to put up

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<v Speaker 5>these data centers.

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<v Speaker 3>Give us a total number.

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<v Speaker 5>It was a level of you know, i'd say aggression

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<v Speaker 5>that you don't typically hear on an earnings call.

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<v Speaker 3>Because it's just still not clear.

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<v Speaker 5>I mean, no one's put up gigglewat scale data centers

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<v Speaker 5>are for five of them at once. There's a lot

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<v Speaker 5>of questions about when Oracle is putting up these big

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<v Speaker 5>data centers for open ai or meta or in video,

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<v Speaker 5>what is the true cost profile? And the jury is

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<v Speaker 5>just still out.

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<v Speaker 7>The jury is out, and also the questions are abound

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<v Speaker 7>of their overall exposure to one key player. Yes, three

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<v Speaker 7>hundred billion dollars is how much open Ai is saying

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<v Speaker 7>they will invest via Oracle.

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<v Speaker 4>But when are we going to see that? When is

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<v Speaker 4>Oracle actually could be able to book that as real revenue?

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<v Speaker 6>Right?

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<v Speaker 5>A lot of us remember in September when Oracle stock

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<v Speaker 5>went gangbusters and they were the favorite child of the

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<v Speaker 5>market for a couple of days. But since then, what's

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<v Speaker 5>happened is open Ai has made a bunch of commitments

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<v Speaker 5>with really big billions numbers with a lot of other vendors,

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<v Speaker 5>and it's made the market say, wait a second, can

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<v Speaker 5>OAI really pay all of these bills? And so that

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<v Speaker 5>concentration risk on open ai is a key one for

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<v Speaker 5>Oracle and one the company has tried to push away

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<v Speaker 5>by saying, look at the big deals we've had with

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<v Speaker 5>Meta and Video or others.

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<v Speaker 2>The most Brady Ford with the reporting, thank you very much,

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<v Speaker 2>just get more with Alex Zuki, Managing Directors, Senior analyst,

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<v Speaker 2>Covery Enterprise Software, Wolf Research. The price target two hundred

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<v Speaker 2>and seventy five dollars on this start trading at one

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<v Speaker 2>hundred ninety two eighty two. Okay, we accept there's some anxiety.

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<v Speaker 2>They are spending more then New Lot thought they would.

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<v Speaker 2>They have some growth. Where in the equation are they

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<v Speaker 2>sitting for you?

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<v Speaker 8>Yeah?

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<v Speaker 6>I think right now it's a timing mismatch. I think

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<v Speaker 6>we are getting overly penalized for a number of elements.

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<v Speaker 6>I think there's kind of a vote of no confidence

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<v Speaker 6>from this market around the ability to grow and serve

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<v Speaker 6>open Ai, both on the open aye front, quite frankly,

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<v Speaker 6>and the Oracle front, and I think that's a mistake.

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<v Speaker 6>We truly believe the compute demand at the moment is insatiable.

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<v Speaker 6>It's not just insatiable for open Ai, it's insatiable for

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<v Speaker 6>other foundation model companies. It's also insatiable for other hyperscalers.

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<v Speaker 6>I think even on the Microsoft call they noted how

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<v Speaker 6>much more demand that they had in the quarter for

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<v Speaker 6>Azure that they could in supplied. So we're pretty confident

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<v Speaker 6>that the demand is real, that the demand is there,

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<v Speaker 6>and we continue to see accelerating growth, with the company

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<v Speaker 6>stating pretty clearly they A expect to maintain an investment

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<v Speaker 6>grade credit B. They don't believe they will need to

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<v Speaker 6>spend more than and quite possibly significantly less than one

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<v Speaker 6>hundred billion dollars in debt. And on open Ai A

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<v Speaker 6>they believe they're very much good for it, but that

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<v Speaker 6>the demand is truly fungible. And if Opening I can't

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<v Speaker 6>make those commitments, there are a lot of other no.

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<v Speaker 2>No, I appreciate that negative free cash flows ten billion, right,

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<v Speaker 2>and the debt pile you point out is hit one

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<v Speaker 2>hundred and six billion dollars in debt. This chart is

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<v Speaker 2>Oracle five year CDs Oracle CDs at the highest level

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<v Speaker 2>since two thousand and nine, credit default swaps the cost

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<v Speaker 2>of protecting debt against default. It's a chart, but it's

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<v Speaker 2>a reaction, and the three points you just made clearly

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<v Speaker 2>there's a large portion of the market that doesn't share

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<v Speaker 2>that viewpoint with you.

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<v Speaker 9>Yeah.

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<v Speaker 6>Look, I think the CDs chart, I think or it

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<v Speaker 6>was important for Oracle to state that they they expect

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<v Speaker 6>to maintain an investment grade credit worthiness. I think that

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<v Speaker 6>there's also a number of flexible options that they presented

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<v Speaker 6>them call yesterday, like the bring your own chips in

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<v Speaker 6>addition to the ability for customers to lease. So I

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<v Speaker 6>think that they are very vigilant about the level of

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<v Speaker 6>debt that they're willing to take. They have a number

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<v Speaker 6>of other options, including issuing equity. But at the end

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<v Speaker 6>of the day, the overall CDs level is still relatively

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<v Speaker 6>low for a company of Oracle size and stature, and

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<v Speaker 6>we don't believe that that is indicative of any kind

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<v Speaker 6>of risk for them to fail to meet their commitments.

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<v Speaker 4>Alex, I loved your note, and I love the idea

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<v Speaker 4>that is saying this is a tough crowd basically, but

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<v Speaker 4>you did reach rate outperform, but you vastly decreased your

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<v Speaker 4>price target from four hundred dollars to China and seventy

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<v Speaker 4>five dollars. Is that more because the market is just

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<v Speaker 4>not going to push up the stock in the way

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<v Speaker 4>that you actually think could be vindicated. Do you still

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<v Speaker 4>think four hundred could be vindicated? Just the mark's not going.

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<v Speaker 3>To go that Yeah.

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<v Speaker 6>I think it's two points. I think it's important to

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<v Speaker 6>point out that since our last price start at the

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<v Speaker 6>comps have compressed, the relative multiples have come down. And

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<v Speaker 6>number two, look, we are vigilant of current performance as well.

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<v Speaker 6>I think for the stock to work back to some

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<v Speaker 6>of those more lofty angles, I think you need clear

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<v Speaker 6>evidence of meaningful outperformance on cloud revenue and the is

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<v Speaker 6>side not in line or slightly below, And as the

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<v Speaker 6>confidence kind of returns to seeing those investments converting to

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<v Speaker 6>revenue at higher and higher clips, to where at this point,

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<v Speaker 6>you know, it looks like Oracle is going to be

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<v Speaker 6>the fastest growing megacap software company and it is the

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<v Speaker 6>cheapest megacap software company. So as those two things start

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<v Speaker 6>to converge, I think you could get back to those

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<v Speaker 6>lofty highs.

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<v Speaker 4>Alex what's so interesting about your coverage range is that

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<v Speaker 4>you're a software guy. You're also looking at Adobe, and

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<v Speaker 4>we just had Adobe numbers. But of course Oracle has

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<v Speaker 4>made this huge pivot into almost now infrastructure, eclipsing it's

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<v Speaker 4>software revenue that it brings in now. But just taking

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<v Speaker 4>a step back the whole AI bubble debate and whether

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<v Speaker 4>or not we're going to be good for productivity gains

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<v Speaker 4>in the amount that we're currently spending. Do you think

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<v Speaker 4>that there is a bubble or that we're in a

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<v Speaker 4>fine kind of space.

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<v Speaker 6>I think it's always hard to call a bubble when

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<v Speaker 6>you're in the middle of it. We do see a

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<v Speaker 6>tremendous amount of productivity enhancement that is happening in the industry,

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<v Speaker 6>and I think depending on where you are and if

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<v Speaker 6>you're what part you're looking at, you can have a

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<v Speaker 6>completely different picture. I think at this point, if you're

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<v Speaker 6>an engineer or if you're a software developer, you can't

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<v Speaker 6>imagine life without agentic coding. You can't go back to

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<v Speaker 6>a time when you work using one of those tools.

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<v Speaker 6>And the availability the abundance of compute is increasingly leading

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<v Speaker 6>to a renaissance of software development and code creation. I

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<v Speaker 6>think if you're kind of a traditional knowledge worker, you're

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<v Speaker 6>still kind of waiting to see that ten x, one

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<v Speaker 6>hundred x improvement in your capabilities. And I think that's

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<v Speaker 6>natural because those things are a little bit more nuanced

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<v Speaker 6>depending on where you work, what your role is, how

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<v Speaker 6>much data, how much risk your firm's willing to take.

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<v Speaker 6>So I think it's a natural progression, and folks have

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<v Speaker 6>to remember this is a journey. We are still way

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<v Speaker 6>away from that destination, but it's an extremely exciting time

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<v Speaker 6>to be in this space. And I do think that

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<v Speaker 6>we are on an accelerating growth path for many of

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<v Speaker 6>the companies that we cover.

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<v Speaker 2>I think I'm going to recapture really quickly capital expenditures

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<v Speaker 2>slightly ahead a few billion dollars a where the street

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<v Speaker 2>thought it would be, but impressive growth in cloud the

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<v Speaker 2>stock a decline of fourteen to sixteen percent would be

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<v Speaker 2>if we close this level down the most in twenty

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<v Speaker 2>three twenty four years.

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<v Speaker 3>Is Oracle good at technology? Alex very quickly?

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<v Speaker 6>Yeah, I think Oracle's great at technology. I think Oracle

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<v Speaker 6>for multiple decades has been able to make the pivot

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<v Speaker 6>to the new exciting secular domain. It takes time like

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<v Speaker 6>it did for Oracle in the cloud, I would argue

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<v Speaker 6>that they've made the pivot to the AI compute cycle

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<v Speaker 6>much faster, and I think over time that will serve

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<v Speaker 6>in their favor as their ability to take their existing

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<v Speaker 6>customers and convert those customers to both an AI cloud

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<v Speaker 6>first and AI native world with a full stack experience

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<v Speaker 6>not that dissimilar from what Microsoft has done, will put

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<v Speaker 6>them at the forefront of a lot of these secular waves.

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<v Speaker 4>Alex sir Ken, I've wolf research fantastic talking to you,

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<v Speaker 4>Thank you very much, indeed on all things Oracle and

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<v Speaker 4>beyond me. While coming up, Disney it agrees to invest

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<v Speaker 4>one billion dollars in open AI and license characters for

0:11:59.320 --> 0:12:02.640
<v Speaker 4>use on on chatchbt image. We'll dig into it next.

0:12:02.640 --> 0:12:17.360
<v Speaker 4>This is Bloomberg Tech. Disney will invest one billion dollars

0:12:17.400 --> 0:12:20.439
<v Speaker 4>in Open AI and license more than two hundred characters

0:12:20.640 --> 0:12:23.360
<v Speaker 4>for use on the sore regenerative video platform and in

0:12:23.440 --> 0:12:27.760
<v Speaker 4>chatchibt images. Is allso generate, short fan prompted videos and stills.

0:12:28.000 --> 0:12:30.960
<v Speaker 4>Bloomberg News entertainment reporter Hannahmana joins us now along with

0:12:31.040 --> 0:12:33.080
<v Speaker 4>Davely from Bloomberg Opinion and how do I go to

0:12:33.080 --> 0:12:35.600
<v Speaker 4>you for the news first, because this is a big

0:12:35.640 --> 0:12:39.600
<v Speaker 4>step in IP licensing in the world of generative AI.

0:12:40.200 --> 0:12:43.080
<v Speaker 9>Yeah, there's been a lot of anxiety about how AI

0:12:43.240 --> 0:12:47.800
<v Speaker 9>will affect the entertainment industry, and Disney's support its investment

0:12:47.880 --> 0:12:51.600
<v Speaker 9>in open ai is a huge development. I mean, this

0:12:51.640 --> 0:12:53.960
<v Speaker 9>is something that you know, we didn't really expect. There's

0:12:54.000 --> 0:12:58.520
<v Speaker 9>been a lot of tension and controversy with AI in film.

0:12:58.920 --> 0:13:02.080
<v Speaker 2>Davely of Bloomberg Opinion, I get what open ai gets

0:13:02.080 --> 0:13:05.440
<v Speaker 2>out of this a library of creature characters, two hundred

0:13:05.480 --> 0:13:08.000
<v Speaker 2>of them. What does Disney actually get out of it?

0:13:08.559 --> 0:13:10.920
<v Speaker 10>Well, look, I was watching an interview with Bob Iger

0:13:11.040 --> 0:13:13.040
<v Speaker 10>earlier and it struck me that he's been in this

0:13:13.120 --> 0:13:14.800
<v Speaker 10>game a long time, and I think he's actually got

0:13:14.840 --> 0:13:16.400
<v Speaker 10>a very good deal. I think he's gone to open

0:13:16.440 --> 0:13:19.839
<v Speaker 10>ai and he said, your saur app, which people are using,

0:13:20.160 --> 0:13:23.920
<v Speaker 10>is only fun when you use essentially without deals stolen

0:13:24.000 --> 0:13:27.200
<v Speaker 10>material IP from other companies, whether it's Disney or Nintendo

0:13:27.360 --> 0:13:30.679
<v Speaker 10>or even the Premier League. And I think Bob Biber says, right,

0:13:30.720 --> 0:13:33.800
<v Speaker 10>you need this, you need consumer attention. We know there's

0:13:33.800 --> 0:13:36.800
<v Speaker 10>a lot of pressure from Google on open ai and

0:13:36.800 --> 0:13:38.760
<v Speaker 10>So what Disney gets it gets the slice of this

0:13:38.800 --> 0:13:41.959
<v Speaker 10>big exciting AI company. They get that billion dollar investment

0:13:42.080 --> 0:13:44.720
<v Speaker 10>with the chance to do more. They have a deal

0:13:44.800 --> 0:13:47.320
<v Speaker 10>that is only exclusive for a year. So if we

0:13:47.360 --> 0:13:50.600
<v Speaker 10>find that consumers are really into making these short videos,

0:13:50.640 --> 0:13:53.080
<v Speaker 10>which I'm not too sure they will be long term,

0:13:53.720 --> 0:13:56.680
<v Speaker 10>then he can shop it elsewhere and make more deals

0:13:56.760 --> 0:13:59.520
<v Speaker 10>like it. And he also gets to go to Google

0:13:59.559 --> 0:14:01.840
<v Speaker 10>and say, look, you know, open Eye've made a deal,

0:14:01.880 --> 0:14:03.719
<v Speaker 10>so now you should do as well, because that's how

0:14:03.720 --> 0:14:06.360
<v Speaker 10>this is going to run from now one. So I think, yeah, honestly,

0:14:06.400 --> 0:14:10.160
<v Speaker 10>I think bob Byga has Showny's experience here and made

0:14:10.200 --> 0:14:10.880
<v Speaker 10>a very smart deal.

0:14:10.920 --> 0:14:15.720
<v Speaker 2>Indeed, Hannah, the companies also disclosed that basically Disney becomes

0:14:16.280 --> 0:14:19.800
<v Speaker 2>a major customer of open Ai. What are the technology

0:14:19.840 --> 0:14:21.000
<v Speaker 2>work are they going to do together?

0:14:21.680 --> 0:14:23.800
<v Speaker 9>Yeah, I mean it's great that they get to use

0:14:23.840 --> 0:14:26.600
<v Speaker 9>these open ai tools. You know, they will be able

0:14:26.600 --> 0:14:29.960
<v Speaker 9>to give access to chat GPT to their employees. But

0:14:30.360 --> 0:14:32.120
<v Speaker 9>I think what we can see from this is this

0:14:32.200 --> 0:14:33.880
<v Speaker 9>is just the beginning that there could be more down

0:14:33.920 --> 0:14:34.440
<v Speaker 9>the line.

0:14:34.800 --> 0:14:37.560
<v Speaker 4>What's really interesting, Dave, is we've heard in the same

0:14:37.600 --> 0:14:42.160
<v Speaker 4>breath bobb Igo really confirming that he's sent a season

0:14:42.200 --> 0:14:45.920
<v Speaker 4>assist to Google. We know that they've been litigious about

0:14:45.920 --> 0:14:48.640
<v Speaker 4>their IP when it comes to mid journey, when it

0:14:48.640 --> 0:14:51.800
<v Speaker 4>comes to Chinese general to AI opportunities. Are we then,

0:14:51.960 --> 0:14:54.640
<v Speaker 4>after this year of exclusion, just going to see a

0:14:54.640 --> 0:14:57.800
<v Speaker 4>whole myriad of deals being done And what will Hollywood

0:14:57.800 --> 0:14:59.240
<v Speaker 4>and creatives think about it?

0:15:00.160 --> 0:15:00.760
<v Speaker 10>Two sides to it?

0:15:00.760 --> 0:15:01.080
<v Speaker 3>Isn't there?

0:15:01.160 --> 0:15:03.360
<v Speaker 10>I think yes, there'll there'll be deals done, or at

0:15:03.400 --> 0:15:06.720
<v Speaker 10>least there'll be attempts and maybe more lawsuits instead. If

0:15:06.760 --> 0:15:10.320
<v Speaker 10>the deals aren't made, you will see this increased uneasiness.

0:15:10.320 --> 0:15:12.560
<v Speaker 10>And we're already seeing out of Hollywood of people saying, well,

0:15:12.600 --> 0:15:14.920
<v Speaker 10>what's Disney's end game here? If they're going to start

0:15:15.200 --> 0:15:20.160
<v Speaker 10>using open AI's technology. I think this is, if anything,

0:15:20.240 --> 0:15:23.640
<v Speaker 10>quite troubling development for the AI companies, because you know,

0:15:23.720 --> 0:15:25.480
<v Speaker 10>if open eye is going to have to give away

0:15:25.480 --> 0:15:28.040
<v Speaker 10>a billion dollars of its firm to all these people

0:15:28.080 --> 0:15:31.320
<v Speaker 10>who want intellectual property, when then there's not going to

0:15:31.320 --> 0:15:33.560
<v Speaker 10>be enough of the company to go around, And you know,

0:15:33.920 --> 0:15:35.520
<v Speaker 10>I have to think to myself. You know, if if

0:15:35.520 --> 0:15:38.560
<v Speaker 10>you're someone who's backing open ai, you're thinking, okay, we've

0:15:38.560 --> 0:15:41.520
<v Speaker 10>got Mickey Mouse he's not allowed to talk probably and

0:15:41.560 --> 0:15:44.400
<v Speaker 10>they're going to be short clips. Is this really getting

0:15:44.480 --> 0:15:46.880
<v Speaker 10>us the super intelligence? Like, is this an important part

0:15:46.920 --> 0:15:47.240
<v Speaker 10>of that?

0:15:47.920 --> 0:15:49.840
<v Speaker 3>I don't see it.

0:15:49.880 --> 0:15:50.200
<v Speaker 8>Personally.

0:15:50.240 --> 0:15:52.240
<v Speaker 10>I feel quite cynical about this entire deal, I have

0:15:52.360 --> 0:15:54.240
<v Speaker 10>to say, but there's a lot there that I think

0:15:54.520 --> 0:15:57.080
<v Speaker 10>is troubling for AI companies looking to do some of

0:15:57.080 --> 0:15:58.080
<v Speaker 10>the same things next year.

0:15:58.440 --> 0:16:00.960
<v Speaker 2>Dave, Dave, just real quick. That's what I'm trying to understand.

0:16:00.960 --> 0:16:03.560
<v Speaker 2>Who has the balance of power here? Which side needs

0:16:03.600 --> 0:16:08.000
<v Speaker 2>the other more, the studios in Hollywood or the AI labs?

0:16:08.200 --> 0:16:09.680
<v Speaker 10>And do you know what I think the question is

0:16:09.720 --> 0:16:12.840
<v Speaker 10>for the studios in Hollywood, they can live without being

0:16:13.120 --> 0:16:15.000
<v Speaker 10>working with these AI companies, so they might as well

0:16:15.080 --> 0:16:16.560
<v Speaker 10>just get as good a deal as they can get,

0:16:16.640 --> 0:16:18.400
<v Speaker 10>and if they're not happy with that, they can walk away.

0:16:18.600 --> 0:16:21.760
<v Speaker 10>And that's perhaps why Google was in a stronger position.

0:16:21.800 --> 0:16:24.240
<v Speaker 10>It'll be interesting to see how the talks now have

0:16:24.360 --> 0:16:27.520
<v Speaker 10>to you know, carry on with Google and Disney, because

0:16:27.640 --> 0:16:30.840
<v Speaker 10>Open Eye realized that they don't have any other business

0:16:30.920 --> 0:16:33.160
<v Speaker 10>with Disney, so there's no incentive for Disney to sort

0:16:33.160 --> 0:16:35.560
<v Speaker 10>of bend more to their will. I think in Google's case,

0:16:35.880 --> 0:16:38.800
<v Speaker 10>you know, Disney just signed a new multi year deal

0:16:38.880 --> 0:16:41.120
<v Speaker 10>with YouTube TV, for example, So there's a much more

0:16:41.160 --> 0:16:44.360
<v Speaker 10>sort of close meshing there between those companies. I wouldn't

0:16:44.360 --> 0:16:47.480
<v Speaker 10>be surprised if some agreement came out of, you know,

0:16:47.480 --> 0:16:51.040
<v Speaker 10>around SAUA and Google quite soon. But yeah, I think

0:16:51.080 --> 0:16:52.720
<v Speaker 10>that's where we're going to see these sort of interesting

0:16:52.880 --> 0:16:56.600
<v Speaker 10>power plays. But if you're an owner of an intellectual property,

0:16:56.760 --> 0:16:58.320
<v Speaker 10>really good stuff. But if you like I say, like

0:16:58.440 --> 0:17:01.480
<v Speaker 10>Nintendo or football Company, I think you're in a very

0:17:01.560 --> 0:17:02.760
<v Speaker 10>very strong position.

0:17:02.640 --> 0:17:04.240
<v Speaker 4>And really is notable though. I think that some of

0:17:04.280 --> 0:17:07.680
<v Speaker 4>these large language model developers would say in chatbot owners

0:17:07.720 --> 0:17:10.280
<v Speaker 4>are saying, we are amazed at how much people are

0:17:10.359 --> 0:17:12.719
<v Speaker 4>using them for image generation. Even if it doesn't lead

0:17:12.760 --> 0:17:16.080
<v Speaker 4>us to superintelligence, it's an addictive element to the use

0:17:16.119 --> 0:17:18.800
<v Speaker 4>and maybe outperforms therefore, and who wants to be using

0:17:18.840 --> 0:17:21.760
<v Speaker 4>it and keeping eight hundred million people wanting to use

0:17:21.800 --> 0:17:23.920
<v Speaker 4>it every single week? But Hannah, when the power play

0:17:24.040 --> 0:17:27.480
<v Speaker 4>comes back to the worker, you've reported long and hard

0:17:27.480 --> 0:17:30.000
<v Speaker 4>about the strikes that happened in Hollywood. What do you

0:17:30.040 --> 0:17:33.000
<v Speaker 4>think the narrative is Bobiga needs to give to his workforce.

0:17:33.200 --> 0:17:35.560
<v Speaker 9>Yeah, he needs to give reassurance. I mean people are

0:17:35.560 --> 0:17:39.560
<v Speaker 9>worried about their jobs. Hollywood has been through a lot lately,

0:17:39.720 --> 0:17:43.600
<v Speaker 9>you know, from the wildfires to layoffs at major entertainment companies.

0:17:43.880 --> 0:17:45.600
<v Speaker 9>So I think there is a lot of concern here

0:17:45.640 --> 0:17:47.680
<v Speaker 9>about replacement. If you're going to be able to use

0:17:47.760 --> 0:17:50.080
<v Speaker 9>AI tools to enemy, you know, why do you need

0:17:50.160 --> 0:17:50.919
<v Speaker 9>humans behind it?

0:17:52.160 --> 0:17:56.720
<v Speaker 2>Bloomberganese reporter Pana Miller, Bloomberg opinion contributor Davely, thank you

0:17:56.800 --> 0:17:57.399
<v Speaker 2>to you both.

0:17:58.000 --> 0:18:00.800
<v Speaker 4>We are sticking with tech learnings, going to deep dive

0:18:00.800 --> 0:18:03.800
<v Speaker 4>on chip design. Software maker Synopsis Now just out with

0:18:03.840 --> 0:18:07.679
<v Speaker 4>its own fourth quarter results, giving an upbeat first quarter forecast.

0:18:08.119 --> 0:18:11.119
<v Speaker 4>Is following a significant equity investment from Nvidia earlier in

0:18:11.119 --> 0:18:13.040
<v Speaker 4>the month that sent shares hire And maybe we're just

0:18:13.119 --> 0:18:14.960
<v Speaker 4>pairing some of the previous games. We're just down by

0:18:15.000 --> 0:18:16.760
<v Speaker 4>one point two percent on the day, So not so.

0:18:16.920 --> 0:18:20.399
<v Speaker 4>CEO Sasine Ghazi joins us now and even though your

0:18:20.400 --> 0:18:22.639
<v Speaker 4>shares are down a little bit, the analyst seem to

0:18:22.720 --> 0:18:26.080
<v Speaker 4>feel positively about these numbers. But JP Morgan asks that

0:18:26.280 --> 0:18:28.960
<v Speaker 4>maybe you're being slightly conservative on your fall year twenty

0:18:29.000 --> 0:18:29.920
<v Speaker 4>twenty six guidance.

0:18:29.960 --> 0:18:30.199
<v Speaker 11>Are you?

0:18:31.640 --> 0:18:34.760
<v Speaker 12>We're looking at it as being balanced and pragmatic regarding

0:18:34.880 --> 0:18:38.800
<v Speaker 12>Fox twenty six, given the global and the overall environment,

0:18:39.320 --> 0:18:41.920
<v Speaker 12>we guide it at nine point six billion, and that's

0:18:42.040 --> 0:18:45.880
<v Speaker 12>after finishing up Fox twenty five at seven billion. So

0:18:45.920 --> 0:18:48.480
<v Speaker 12>we're very excited about the opportunity.

0:18:47.840 --> 0:18:48.360
<v Speaker 9>You had.

0:18:50.240 --> 0:18:54.320
<v Speaker 2>Chip design right now, there are some bigger picture discussions

0:18:54.359 --> 0:18:58.000
<v Speaker 2>to be had a great debate about companies big and

0:18:58.040 --> 0:19:01.520
<v Speaker 2>small looking at customer A sixty doing more in house

0:19:01.840 --> 0:19:05.200
<v Speaker 2>versus not bothering because why in Nvidia is doing such

0:19:05.240 --> 0:19:08.400
<v Speaker 2>a full stack offering. What are the trends that you're seeing,

0:19:08.440 --> 0:19:11.359
<v Speaker 2>particularly when you think about your backlog susame, because the

0:19:11.359 --> 0:19:14.280
<v Speaker 2>analysts are also talking about your backlog Exensis.

0:19:15.520 --> 0:19:19.080
<v Speaker 12>Yeah, we have a significant backlog entering FOY twenty six

0:19:19.160 --> 0:19:22.159
<v Speaker 12>at eleven and a half billion. And what's driving that

0:19:22.280 --> 0:19:26.119
<v Speaker 12>backlog is this strength across the portfolio. As for your question,

0:19:26.840 --> 0:19:32.439
<v Speaker 12>most hyperscalers they're looking for multiple alternatives to how to

0:19:32.520 --> 0:19:36.080
<v Speaker 12>build and optimize along the stack. The silicon is an

0:19:36.200 --> 0:19:40.480
<v Speaker 12>essential component, as you know, and almost every one of

0:19:40.520 --> 0:19:43.880
<v Speaker 12>these hyperscalers they have a strategy along three vectors. One

0:19:43.960 --> 0:19:48.520
<v Speaker 12>they buy merchant chips from Nvidia, AMD, Intel, etc. And

0:19:48.600 --> 0:19:52.760
<v Speaker 12>they build their software stack. Then there's the custom vector

0:19:53.359 --> 0:19:56.520
<v Speaker 12>or ask and they have their own customer on tooling

0:19:56.560 --> 0:20:00.880
<v Speaker 12>what it's called. We're designed the chip all themselves. All

0:20:00.920 --> 0:20:04.600
<v Speaker 12>three vectors are a fantastic opportunity because you need the

0:20:04.800 --> 0:20:08.439
<v Speaker 12>essentialness of what we provide in order to achieve that

0:20:08.560 --> 0:20:11.639
<v Speaker 12>silicon design all the way up to the system.

0:20:11.880 --> 0:20:13.760
<v Speaker 4>So the first time we've spoken to you since that

0:20:13.840 --> 0:20:18.080
<v Speaker 4>two billion dollar endorsement investment in your stock coming from Nvidia,

0:20:18.119 --> 0:20:19.639
<v Speaker 4>and at the same time in Video is trying to

0:20:19.760 --> 0:20:21.840
<v Speaker 4>gain in roads once again back into China. You've got

0:20:21.880 --> 0:20:24.359
<v Speaker 4>headwinds in the China part of the business. How do

0:20:24.400 --> 0:20:26.360
<v Speaker 4>you see that part of the world evolving.

0:20:28.040 --> 0:20:32.679
<v Speaker 12>So the Nvidia investment was really driven and it's a

0:20:32.760 --> 0:20:38.320
<v Speaker 12>significant endorsement to our strategy to provide engineering solutions from

0:20:38.359 --> 0:20:41.880
<v Speaker 12>silicon to systems, where in Nvidia has been talking about

0:20:41.880 --> 0:20:46.320
<v Speaker 12>the whole physical AI, etc. That cannot happen without having

0:20:46.480 --> 0:20:51.600
<v Speaker 12>physics simulation inside the product development, and that's what Synopsis provides.

0:20:52.200 --> 0:20:56.520
<v Speaker 12>As far as the China market and opportunity f y

0:20:56.640 --> 0:21:00.960
<v Speaker 12>twenty five, we face this significant headwind in China. Our

0:21:01.080 --> 0:21:06.359
<v Speaker 12>business declined by about twenty percent due to these headwinds.

0:21:06.800 --> 0:21:09.520
<v Speaker 12>What we talked about in our FYI twenty six guide

0:21:09.600 --> 0:21:13.240
<v Speaker 12>is will continue on assuming that the environment in China

0:21:13.280 --> 0:21:16.440
<v Speaker 12>will remain status quo, the same stress that we saw

0:21:16.480 --> 0:21:19.119
<v Speaker 12>in twenty five, and we have derisped it out of

0:21:19.160 --> 0:21:20.360
<v Speaker 12>our forecast.

0:21:20.680 --> 0:21:24.040
<v Speaker 2>Susain very very quickly thirty seconds. Why does Nynvidia need

0:21:24.080 --> 0:21:25.680
<v Speaker 2>to have an equity stake in your company?

0:21:27.800 --> 0:21:29.200
<v Speaker 3>Is exactly what Jensen said.

0:21:29.280 --> 0:21:32.960
<v Speaker 12>He sees a great opportunity to make money and to

0:21:33.040 --> 0:21:37.560
<v Speaker 12>make sure that he's participating and aligning. Could both companies

0:21:37.640 --> 0:21:41.600
<v Speaker 12>roadmap in order to accelerate the investment and deliver to

0:21:41.680 --> 0:21:43.720
<v Speaker 12>this opportunity.

0:21:44.280 --> 0:21:46.280
<v Speaker 2>Sono Scia seeing Gasi, It's great to have you on

0:21:46.320 --> 0:21:55.440
<v Speaker 2>Bloomberg Tech. Thank you, Welcome back to Bloomberg Tech. This

0:21:55.640 --> 0:21:59.959
<v Speaker 2>is a story about rising AI spending, and that spending

0:22:00.359 --> 0:22:04.440
<v Speaker 2>rising at a level that is not satisfactory to investors

0:22:04.480 --> 0:22:08.399
<v Speaker 2>who want to see how it will convert into growing revenues.

0:22:08.880 --> 0:22:10.600
<v Speaker 3>The story is Oracle the.

0:22:10.720 --> 0:22:14.399
<v Speaker 2>Stock, and it shares on track for their biggest drop

0:22:14.960 --> 0:22:20.480
<v Speaker 2>in about twenty four years. That's the story capital expenditures,

0:22:20.520 --> 0:22:23.720
<v Speaker 2>in particular billions of dollars ahead of what.

0:22:23.920 --> 0:22:25.840
<v Speaker 3>The market was expecting.

0:22:28.960 --> 0:22:33.159
<v Speaker 2>Let's get out with the Bloomberg Intelligence reaction an A

0:22:33.240 --> 0:22:35.920
<v Speaker 2>rag Rana joins us, Now, I just wanted it to linger.

0:22:36.200 --> 0:22:39.080
<v Speaker 2>It's severe, and we spent all of yesterday's shows saying

0:22:39.480 --> 0:22:43.040
<v Speaker 2>this might happen. That's your reaction and your research. What's

0:22:43.080 --> 0:22:44.880
<v Speaker 2>your thesis when you woke up this morning.

0:22:46.640 --> 0:22:48.600
<v Speaker 13>No, I mean I was surprised that they didn't talk

0:22:48.640 --> 0:22:50.879
<v Speaker 13>a lot about their supply constraints, because you know, we

0:22:51.000 --> 0:22:53.280
<v Speaker 13>heard it from Corvie, we heard it from Microsoft and

0:22:53.359 --> 0:22:56.360
<v Speaker 13>so forth. But they spend a little bit of time

0:22:56.440 --> 0:22:59.800
<v Speaker 13>trying to explain the funding issues. But it doesn't look like,

0:23:00.040 --> 0:23:03.080
<v Speaker 13>you know, the market's happy with their explanation. But you know,

0:23:03.119 --> 0:23:06.080
<v Speaker 13>one of the big things is when their cloud infrastructure

0:23:06.240 --> 0:23:09.399
<v Speaker 13>estimates were sixty nine percent growth in constant currency and

0:23:09.440 --> 0:23:12.440
<v Speaker 13>they came at sixty six And anybody who's followed you

0:23:12.480 --> 0:23:15.560
<v Speaker 13>know what happens with Microsoft, Azure or AWS numbers is

0:23:15.960 --> 0:23:18.160
<v Speaker 13>when you miss on a cloud growth rate by even

0:23:18.240 --> 0:23:20.359
<v Speaker 13>a little bit, I mean, that has an impact on

0:23:20.480 --> 0:23:22.720
<v Speaker 13>your stock. And that's what we are seeing here. On

0:23:22.840 --> 0:23:24.960
<v Speaker 13>top of that, they talked about, you know, increasing their

0:23:25.040 --> 0:23:26.639
<v Speaker 13>topics by fifteen billion dollars.

0:23:27.000 --> 0:23:27.920
<v Speaker 3>That was another thing.

0:23:28.080 --> 0:23:31.160
<v Speaker 13>So there are multiple factors that are affecting the stock.

0:23:31.240 --> 0:23:33.480
<v Speaker 13>But having said that, you know, you also go back

0:23:33.520 --> 0:23:35.560
<v Speaker 13>and see there was one day when they announced that

0:23:35.640 --> 0:23:37.639
<v Speaker 13>big open A ideal, the stock had gone up like

0:23:37.760 --> 0:23:39.800
<v Speaker 13>what twenty five thirty percent at that point, So there

0:23:39.840 --> 0:23:41.760
<v Speaker 13>is a there's a bit of digestion in here, and

0:23:41.840 --> 0:23:43.840
<v Speaker 13>it will take a few years to figure out how

0:23:43.920 --> 0:23:46.399
<v Speaker 13>much or how long will it take to take that

0:23:46.480 --> 0:23:49.119
<v Speaker 13>five hundred billion off backlog and convert it into sales.

0:23:49.600 --> 0:23:52.880
<v Speaker 4>Talking of that backlog, many would say that the moon

0:23:52.960 --> 0:23:55.240
<v Speaker 4>music is still in their favor. Maybe why the shares

0:23:55.240 --> 0:23:57.239
<v Speaker 4>remain higher for the year an rag. I'm looking at

0:23:57.320 --> 0:23:59.600
<v Speaker 4>this really in depth survey that you've done on the

0:23:59.640 --> 0:24:01.920
<v Speaker 4>CC over at Bloomberg Intelligence, and one of the key

0:24:02.000 --> 0:24:05.720
<v Speaker 4>findings really was that all industries cite a shortage of

0:24:05.840 --> 0:24:09.359
<v Speaker 4>AI infrastructure as a roadblock. So when will we know

0:24:09.480 --> 0:24:12.840
<v Speaker 4>the oracle is good for the half a trillion dollars

0:24:12.920 --> 0:24:13.800
<v Speaker 4>in backclock that they have.

0:24:15.320 --> 0:24:17.600
<v Speaker 13>Yeah, it's probably the most important questions for all of

0:24:17.640 --> 0:24:19.560
<v Speaker 13>these companies right now. But you know, you have to

0:24:19.640 --> 0:24:22.800
<v Speaker 13>separate the open AI oracle relationship with the rest of

0:24:22.800 --> 0:24:26.800
<v Speaker 13>the hyperscalers because the rest of the hyperscalers, if let's say,

0:24:26.960 --> 0:24:29.200
<v Speaker 13>you know, God forbid things go bad next year and

0:24:29.560 --> 0:24:33.360
<v Speaker 13>we don't need that much AI infrastructure. You know, It's

0:24:33.400 --> 0:24:36.160
<v Speaker 13>okay for the three hyperscalers because they have a lot

0:24:36.240 --> 0:24:38.719
<v Speaker 13>of other businesses that they can run. They have their

0:24:38.880 --> 0:24:42.440
<v Speaker 13>entire cloud businesses, search businesses, et cetera, for the three

0:24:42.480 --> 0:24:45.720
<v Speaker 13>of them combined together. But for Oracle Open Ai, the

0:24:45.760 --> 0:24:47.679
<v Speaker 13>big question is, you know, open Ai by the end

0:24:47.720 --> 0:24:49.359
<v Speaker 13>of the year is going to do twenty billion of

0:24:49.640 --> 0:24:52.440
<v Speaker 13>A and annualized revenue somewhere in that range, and it's

0:24:52.480 --> 0:24:55.040
<v Speaker 13>made commitments of hundreds of billions of dollars. So this

0:24:55.200 --> 0:24:57.719
<v Speaker 13>is one pocket that needs to be examined a lot

0:24:57.840 --> 0:25:00.960
<v Speaker 13>more carefully than the rest of the equation. But having

0:25:01.040 --> 0:25:04.120
<v Speaker 13>said that, we are very confident from what we learn

0:25:04.200 --> 0:25:07.879
<v Speaker 13>from these executives that AI infrastructure is the biggest Botto

0:25:07.960 --> 0:25:12.720
<v Speaker 13>neeck in deploying you know, all sorts of AI functionalities,

0:25:13.520 --> 0:25:17.120
<v Speaker 13>you know, in any part of whether it's hospitals, financial services,

0:25:17.480 --> 0:25:18.399
<v Speaker 13>or pharmaceuticals.

0:25:18.960 --> 0:25:22.640
<v Speaker 4>Remote intelligence analyst Anna rag Rana with really important research.

0:25:23.000 --> 0:25:25.240
<v Speaker 4>We now want to talk about how that affect your investments.

0:25:25.280 --> 0:25:27.760
<v Speaker 4>Beth Kinding is here with us Need Tech analyst at

0:25:27.800 --> 0:25:30.560
<v Speaker 4>the IO Fund, and Beth we come to you because

0:25:30.600 --> 0:25:33.680
<v Speaker 4>of your semiconductor expertise. But here is Larry Ellison and

0:25:33.920 --> 0:25:36.920
<v Speaker 4>others over an Oracles saying, look, we will put in

0:25:37.040 --> 0:25:40.040
<v Speaker 4>whatever chip you want. We are not beholden on in video.

0:25:40.119 --> 0:25:42.200
<v Speaker 4>But what they do seem to be beholden on is

0:25:42.280 --> 0:25:45.040
<v Speaker 4>a supply issue, not a demand issue. Is that coming

0:25:45.080 --> 0:25:46.879
<v Speaker 4>down to semiconductors or is it more the build out

0:25:46.880 --> 0:25:47.680
<v Speaker 4>of data centers.

0:25:49.160 --> 0:25:51.919
<v Speaker 8>Yeah, I think it's a natural statement for Larry Ellison

0:25:51.960 --> 0:25:54.600
<v Speaker 8>to say that because we know custom silicon will help

0:25:54.680 --> 0:25:58.960
<v Speaker 8>drive down those cavex costs. From my perspective, we really

0:25:59.000 --> 0:26:02.040
<v Speaker 8>are at the crux of this issue to where, for example,

0:26:02.160 --> 0:26:07.480
<v Speaker 8>Oracles estimated twenty six twenty twenty six capex was supposed

0:26:07.520 --> 0:26:10.840
<v Speaker 8>to be nine billion, We're now over twenty billion, low

0:26:10.920 --> 0:26:16.520
<v Speaker 8>twenty billion, assuming no more raises, we are significantly higher

0:26:16.600 --> 0:26:19.760
<v Speaker 8>two and a half x higher than what was originally estimated.

0:26:20.760 --> 0:26:23.960
<v Speaker 8>This is what one analyst is called drunken sailor type spending.

0:26:24.400 --> 0:26:25.720
<v Speaker 3>However, what I.

0:26:25.720 --> 0:26:28.800
<v Speaker 8>Would encourage investors to keep an eye on is the

0:26:28.920 --> 0:26:32.080
<v Speaker 8>moment that there's an inflection. We haven't gotten that inflection yet,

0:26:32.119 --> 0:26:34.880
<v Speaker 8>and that is really what these very smart tech CEOs

0:26:34.920 --> 0:26:38.040
<v Speaker 8>across the border banking on. As an investor, I need

0:26:38.080 --> 0:26:40.440
<v Speaker 8>to pay attention to what these CEOs are saying, and

0:26:40.520 --> 0:26:44.240
<v Speaker 8>they're talking about an incoming wave of monetization to where

0:26:44.320 --> 0:26:47.080
<v Speaker 8>some of these cash flow issues really do get relieved.

0:26:47.600 --> 0:26:49.159
<v Speaker 4>So do you think the cash flow will not be

0:26:49.280 --> 0:26:52.080
<v Speaker 4>negative going forward? At the moment we're seeing well that

0:26:52.200 --> 0:26:55.840
<v Speaker 4>capex is seventy five percent of their full year revenue.

0:26:57.400 --> 0:27:00.159
<v Speaker 8>There will be a moment, I don't know when. I

0:27:00.200 --> 0:27:02.800
<v Speaker 8>don't think it'll be twenty twenty six, maybe not even

0:27:02.840 --> 0:27:06.719
<v Speaker 8>twenty twenty seven where you're able to so rapidly monetize

0:27:07.600 --> 0:27:11.040
<v Speaker 8>AI that it can really absorb these capex costs.

0:27:11.160 --> 0:27:11.800
<v Speaker 3>Now your.

0:27:13.440 --> 0:27:17.560
<v Speaker 8>Bloomberg Intelligence. A correspondent just mentioned open AI. Open air

0:27:17.680 --> 0:27:19.600
<v Speaker 8>is a great example of just how quickly this ramp

0:27:19.680 --> 0:27:23.200
<v Speaker 8>can happen. It is the fastest run rate we have

0:27:23.320 --> 0:27:26.399
<v Speaker 8>seen from zero to twenty billion in all of tech's history.

0:27:26.760 --> 0:27:29.600
<v Speaker 8>That is a clue as to how quickly the inflection

0:27:29.760 --> 0:27:30.640
<v Speaker 8>can actually happen.

0:27:30.720 --> 0:27:34.360
<v Speaker 2>Here, Beth, I just want to go back to what's

0:27:34.359 --> 0:27:36.399
<v Speaker 2>happening now in the market. You know, a single session

0:27:36.720 --> 0:27:39.720
<v Speaker 2>a market does not make but in video is down

0:27:40.400 --> 0:27:43.280
<v Speaker 2>almost four percent, on track for its biggest drop in

0:27:43.440 --> 0:27:46.760
<v Speaker 2>five weeks. Just going back to Kara's original question, why

0:27:47.240 --> 0:27:49.440
<v Speaker 2>what's the anxiety that's spreading to in video?

0:27:49.520 --> 0:27:49.680
<v Speaker 11>Here?

0:27:51.680 --> 0:27:56.360
<v Speaker 8>Tonight Broadcom will report and there are certainly some concerns

0:27:56.880 --> 0:28:00.119
<v Speaker 8>that in Video will start to lose market share to

0:28:00.720 --> 0:28:06.119
<v Speaker 8>competitors such as you know, Merchant potentially merchant TPUs. Right now,

0:28:06.160 --> 0:28:10.040
<v Speaker 8>they're mainly used for internal purposes. If those become commercialized,

0:28:10.160 --> 0:28:13.560
<v Speaker 8>the threat is could that eat into in Video's share. Now,

0:28:13.760 --> 0:28:17.200
<v Speaker 8>I've served some concerns with the market on this stock

0:28:17.720 --> 0:28:21.000
<v Speaker 8>for many, many many years. Technically when I first started

0:28:21.040 --> 0:28:23.800
<v Speaker 8>covering this stock in twenty eighteen twenty nineteen.

0:28:23.800 --> 0:28:25.560
<v Speaker 3>TPUs were a threat actually.

0:28:25.320 --> 0:28:28.200
<v Speaker 8>Back then, and I covered it back then. So you know,

0:28:28.359 --> 0:28:31.600
<v Speaker 8>my just in a nutshell, the AI market will widen,

0:28:31.800 --> 0:28:35.760
<v Speaker 8>it will include more revenue from Broadcom, but that does

0:28:35.880 --> 0:28:38.320
<v Speaker 8>not mean in Videos out of the picture by any means.

0:28:39.160 --> 0:28:41.880
<v Speaker 2>The messaging from Oracle right that not beholden to video

0:28:41.960 --> 0:28:46.360
<v Speaker 2>and Carriage made that point smartly. The debate with A

0:28:46.600 --> 0:28:49.240
<v Speaker 2>six generally like Amazon has this issue is that there's

0:28:49.280 --> 0:28:52.040
<v Speaker 2>not the library of software. You know, that's why in

0:28:52.120 --> 0:28:55.080
<v Speaker 2>video is so good. You know that it's multi purpose,

0:28:55.240 --> 0:28:58.640
<v Speaker 2>easy to use the software, to support the stack it exists.

0:28:59.400 --> 0:29:03.440
<v Speaker 3>Is that inging with TPU that that consideration to your mind.

0:29:04.840 --> 0:29:08.880
<v Speaker 8>Yeah, the Kuda software platform is primarily very badly needed

0:29:08.960 --> 0:29:12.400
<v Speaker 8>on the training side, and video has a near monopoly

0:29:12.520 --> 0:29:15.600
<v Speaker 8>on training. As we move into inference, the Kudo mote

0:29:16.280 --> 0:29:20.280
<v Speaker 8>matters less. But what does continue to matter. But what

0:29:20.440 --> 0:29:24.480
<v Speaker 8>does continue to matter is consider that we are not

0:29:24.560 --> 0:29:27.160
<v Speaker 8>at a static point in videos, R and D is

0:29:27.240 --> 0:29:31.480
<v Speaker 8>world class. It will continue to iterate and improve, just

0:29:31.560 --> 0:29:34.360
<v Speaker 8>as TPUs can finally catch up, and video is already

0:29:34.440 --> 0:29:37.240
<v Speaker 8>going to be on to the next generation of GPUs,

0:29:37.280 --> 0:29:40.360
<v Speaker 8>which will challenge anything that's coming out of big tech.

0:29:42.000 --> 0:29:45.120
<v Speaker 2>Beth Kindig of the Io Firm, we enjoyed that. Thank

0:29:45.160 --> 0:29:49.600
<v Speaker 2>you very much for the next episode of Bloomberg Tech Europe.

0:29:49.920 --> 0:29:50.840
<v Speaker 3>The show profile is.

0:29:50.840 --> 0:29:54.200
<v Speaker 2>ASML Europe's most valuable company and one of the most

0:29:54.240 --> 0:29:57.400
<v Speaker 2>important cogs of the global AI supply chain. Take listen

0:29:57.480 --> 0:30:00.560
<v Speaker 2>to what the company's CEO, Kristuque had to say about

0:30:00.560 --> 0:30:01.680
<v Speaker 2>AI bubble concerns.

0:30:03.240 --> 0:30:06.520
<v Speaker 14>Well, you know, when people talk about AI bubble, I

0:30:06.600 --> 0:30:09.120
<v Speaker 14>think I don't know exactly what they mean, and usually

0:30:09.120 --> 0:30:10.640
<v Speaker 14>I say, there's two ways to look at it. If

0:30:10.680 --> 0:30:13.280
<v Speaker 14>you look at the industry. I don't think there is

0:30:13.320 --> 0:30:16.560
<v Speaker 14>a bubble. So the impact of AI in the industry

0:30:16.680 --> 0:30:20.960
<v Speaker 14>is just starting and the impact on the industry will

0:30:21.040 --> 0:30:24.840
<v Speaker 14>be positive for many, many years to come. So there

0:30:24.880 --> 0:30:27.200
<v Speaker 14>there is no bubble. I think that the value of AI,

0:30:27.600 --> 0:30:30.920
<v Speaker 14>the industrial value of AI, is extremely high, and this

0:30:31.080 --> 0:30:34.120
<v Speaker 14>will be developing over time. There's no bubble because, like

0:30:34.200 --> 0:30:38.120
<v Speaker 14>I said, we're just starting. Sometimes people talk about a

0:30:38.160 --> 0:30:40.560
<v Speaker 14>bubble in a reference to the stock market because we

0:30:40.640 --> 0:30:43.960
<v Speaker 14>have seen some company getting extremely high valuation as a

0:30:44.040 --> 0:30:46.400
<v Speaker 14>resource of the excitement of AI.

0:30:47.640 --> 0:30:47.840
<v Speaker 3>There.

0:30:47.840 --> 0:30:51.440
<v Speaker 14>I think what you will see is more players coming

0:30:51.600 --> 0:30:55.720
<v Speaker 14>over time. So initially a few company where I would

0:30:55.720 --> 0:31:00.479
<v Speaker 14>say very much the only winner out of AI because

0:31:00.560 --> 0:31:04.400
<v Speaker 14>of the demand. Because industry, the industrial demand will be

0:31:04.480 --> 0:31:06.760
<v Speaker 14>so high, we need more players, and you will see

0:31:06.800 --> 0:31:11.000
<v Speaker 14>more and more company designing chips, designing AI, product manufacturing chips,

0:31:11.040 --> 0:31:14.720
<v Speaker 14>et cetera, et cetera. That could create, of course some

0:31:15.000 --> 0:31:19.000
<v Speaker 14>change on the stock market. But you know the two

0:31:19.080 --> 0:31:21.040
<v Speaker 14>are a bit unrelated.

0:31:21.160 --> 0:31:23.320
<v Speaker 15>Because I can make me three hundred million dollars just

0:31:23.400 --> 0:31:24.959
<v Speaker 15>this year, a long from hyper scale is maybe four

0:31:25.040 --> 0:31:28.800
<v Speaker 15>hundred million next year. Yeah, that translates into real orders

0:31:28.840 --> 0:31:30.640
<v Speaker 15>for your kids in the years ahead.

0:31:30.640 --> 0:31:32.600
<v Speaker 14>You start to see it over time and sometimes, you know,

0:31:33.240 --> 0:31:34.880
<v Speaker 14>the last few months, I used to joke with some

0:31:35.000 --> 0:31:36.760
<v Speaker 14>of our investor because they told us, why you know,

0:31:37.000 --> 0:31:40.120
<v Speaker 14>two hundred billion here, five hundred billion here. I say, well,

0:31:40.280 --> 0:31:43.560
<v Speaker 14>I still do not have the equation to translate doorse

0:31:43.800 --> 0:31:47.120
<v Speaker 14>order into order for us, and it takes a bit

0:31:47.200 --> 0:31:51.560
<v Speaker 14>of time, but you're right. Over time that demand translate

0:31:51.640 --> 0:31:56.120
<v Speaker 14>into cheap demand to our customer. This translate into a

0:31:56.240 --> 0:31:59.680
<v Speaker 14>need for more capacity, and this translate into demand for

0:32:00.200 --> 0:32:03.120
<v Speaker 14>ISML and our peers in the industry.

0:32:03.440 --> 0:32:06.040
<v Speaker 15>The infrastructure span from the hyper scales and the kind

0:32:06.040 --> 0:32:08.440
<v Speaker 15>of deal making that open ai has done almost a

0:32:08.520 --> 0:32:11.320
<v Speaker 15>trillion dollars worth of deals committed just by that one

0:32:11.360 --> 0:32:14.560
<v Speaker 15>company alone, which isn't making a profit this year.

0:32:14.680 --> 0:32:16.240
<v Speaker 4>That makes sense to.

0:32:16.240 --> 0:32:21.120
<v Speaker 14>You, Well, I think the investment makes sense overhaul, because

0:32:21.960 --> 0:32:25.480
<v Speaker 14>you cannot play in AI without investing in hyperscaler and

0:32:25.560 --> 0:32:28.080
<v Speaker 14>there may be even a few cycle of investment because

0:32:29.000 --> 0:32:31.840
<v Speaker 14>the investment today is done on certain chips.

0:32:33.160 --> 0:32:34.640
<v Speaker 3>The chips in two three.

0:32:34.600 --> 0:32:37.440
<v Speaker 14>Years from now, if you look at Nvidia announcement, there

0:32:37.440 --> 0:32:40.160
<v Speaker 14>will be a lot more powerful and people may be

0:32:40.320 --> 0:32:44.160
<v Speaker 14>tempted again. In twenty twenty seven to invest again in

0:32:44.320 --> 0:32:47.280
<v Speaker 14>hyperscaler to make use of those chips. So you have

0:32:47.440 --> 0:32:51.040
<v Speaker 14>different cycle and you have a bit of a harm

0:32:51.160 --> 0:32:53.520
<v Speaker 14>rest because if you don't invest today, you're out.

0:32:54.280 --> 0:32:57.520
<v Speaker 4>That was Christopher Forget, CEO and president of ASML, along

0:32:57.520 --> 0:32:59.560
<v Speaker 4>with you. Back to Europe host Tom McKenzie. You can

0:32:59.680 --> 0:33:03.440
<v Speaker 4>find the full episode of Bloomberg Tech Europe tonight. You

0:33:03.640 --> 0:33:05.120
<v Speaker 4>have to stay up a bit late one thirty am

0:33:05.200 --> 0:33:07.760
<v Speaker 4>Eastern but six thirty am over and in London time,

0:33:07.800 --> 0:33:09.800
<v Speaker 4>and we'll be online mean while. Coming up, we'll be

0:33:09.920 --> 0:33:12.720
<v Speaker 4>joined by the CEO of Medra on how the company

0:33:12.840 --> 0:33:15.800
<v Speaker 4>is trying to revolutionize drug development and other life science

0:33:15.840 --> 0:33:18.800
<v Speaker 4>fields the physical AI. This is boombog tech.

0:33:32.160 --> 0:33:35.200
<v Speaker 2>Drug development and other life science fields have relied on

0:33:35.480 --> 0:33:39.520
<v Speaker 2>industrial automation for decades. Startup Medra is aiming to take

0:33:39.560 --> 0:33:43.120
<v Speaker 2>that step further, building software that scientists can use to

0:33:43.240 --> 0:33:46.960
<v Speaker 2>direct lab robots using natural language the way they would

0:33:47.360 --> 0:33:50.320
<v Speaker 2>with the chatbot. The company's just closed a fifty two

0:33:50.400 --> 0:33:53.760
<v Speaker 2>million dollars Series A funding round. There are some big

0:33:53.840 --> 0:33:56.440
<v Speaker 2>names in it. Medra CEO Michelle Lee is with us

0:33:56.480 --> 0:34:00.480
<v Speaker 2>in San Francisco. This is very interesting when you and

0:34:00.560 --> 0:34:02.360
<v Speaker 2>I first met a few years ago, you had an

0:34:02.400 --> 0:34:05.040
<v Speaker 2>idea and a concept.

0:34:05.680 --> 0:34:08.320
<v Speaker 3>Now you have a company moving forward with it.

0:34:08.719 --> 0:34:12.480
<v Speaker 2>I think actually, as a start, let's explain why having

0:34:12.960 --> 0:34:16.000
<v Speaker 2>that degree of interaction with what is a robotic arm

0:34:16.080 --> 0:34:19.840
<v Speaker 2>in that lab environment through natural language is necessary?

0:34:20.040 --> 0:34:20.880
<v Speaker 3>What is it solved for?

0:34:21.800 --> 0:34:27.080
<v Speaker 11>Yeah, so we want to give scientists directly, not just engineers,

0:34:27.120 --> 0:34:31.560
<v Speaker 11>with scientists directly the ability to actually run experiments at scale,

0:34:31.960 --> 0:34:34.719
<v Speaker 11>and that is why we are building the physical AI

0:34:34.920 --> 0:34:39.120
<v Speaker 11>scientist physical AI that allows to allows them to automate

0:34:39.800 --> 0:34:43.160
<v Speaker 11>their scientific experiments at scale, and also the AI scientist

0:34:43.440 --> 0:34:47.520
<v Speaker 11>so they can talk to it. They can copilot design

0:34:47.680 --> 0:34:49.520
<v Speaker 11>experiments with this AI scientist.

0:34:50.480 --> 0:34:53.160
<v Speaker 4>What is it that you bring the others have in

0:34:53.280 --> 0:34:55.239
<v Speaker 4>terms of the physical AI. Is it your data that's

0:34:55.280 --> 0:34:57.920
<v Speaker 4>paramounting on. Is it the fact that your scientists a

0:34:57.920 --> 0:35:00.280
<v Speaker 4>paramount on? Is it the technol plogy?

0:35:00.360 --> 0:35:00.600
<v Speaker 6>What is it?

0:35:01.760 --> 0:35:06.400
<v Speaker 11>It is all of those things and more. Industrial automation

0:35:07.200 --> 0:35:11.440
<v Speaker 11>has been the key way that live sciences has automated

0:35:11.520 --> 0:35:15.160
<v Speaker 11>their labs. But we're seeing a huge paradigm shift across

0:35:15.320 --> 0:35:19.640
<v Speaker 11>every industry that's using robotics, where industries are shifting away

0:35:19.680 --> 0:35:23.640
<v Speaker 11>from industrial automation to physical AI, and that is also

0:35:23.719 --> 0:35:26.600
<v Speaker 11>what Medra is bringing to life science, the ability to

0:35:26.880 --> 0:35:31.399
<v Speaker 11>flexibly automate their lab experiments instead of using brittle lab

0:35:31.480 --> 0:35:33.400
<v Speaker 11>automation technologies from before.

0:35:34.200 --> 0:35:35.840
<v Speaker 2>I want to think about this and I review the

0:35:35.920 --> 0:35:38.200
<v Speaker 2>photos and images. I hope we have some images to

0:35:38.239 --> 0:35:40.400
<v Speaker 2>share with our audience. I think a little bit about

0:35:41.320 --> 0:35:44.759
<v Speaker 2>Tony Stark and Jarvis. It's the idea that there is

0:35:45.160 --> 0:35:49.520
<v Speaker 2>an artificial intelligence that one interacts with through the robotic mechanism.

0:35:51.120 --> 0:35:53.239
<v Speaker 2>When we first spoke, and this is a long time ago, now,

0:35:53.320 --> 0:35:56.759
<v Speaker 2>this was about like efficiency. Labs are difficult environments. It's

0:35:56.760 --> 0:36:00.959
<v Speaker 2>hard to move around them, takes physical strength and time,

0:36:01.480 --> 0:36:03.839
<v Speaker 2>you know, but fifty two million dollars a lot of money.

0:36:04.680 --> 0:36:06.520
<v Speaker 3>You know, you just click your fingers and you can

0:36:06.560 --> 0:36:07.759
<v Speaker 3>suddenly do it. You've solved it.

0:36:08.400 --> 0:36:10.680
<v Speaker 11>No, I mean, we have so much more to be

0:36:10.840 --> 0:36:15.560
<v Speaker 11>building because again it's not just about automating the work,

0:36:15.640 --> 0:36:19.799
<v Speaker 11>but about this idea. Can we automate science itself? Can

0:36:19.840 --> 0:36:23.240
<v Speaker 11>we have a scientific AI that can reason about the science,

0:36:23.400 --> 0:36:27.120
<v Speaker 11>generate hypotheses, design experiments, and when we actually run the

0:36:27.200 --> 0:36:30.800
<v Speaker 11>experiments with our physical AI, once that data is generated,

0:36:30.880 --> 0:36:33.560
<v Speaker 11>can we take that data and then can we think

0:36:33.600 --> 0:36:36.719
<v Speaker 11>about what are the new optimizations and changes necessary to

0:36:36.840 --> 0:36:38.040
<v Speaker 11>make that science better.

0:36:38.480 --> 0:36:43.040
<v Speaker 2>We started the conversation by introducing this as in the

0:36:43.080 --> 0:36:45.880
<v Speaker 2>context of drug development of the life science fields, what

0:36:46.080 --> 0:36:48.520
<v Speaker 2>is the industry there and therefore your customer.

0:36:49.520 --> 0:36:52.040
<v Speaker 11>Yeah, So we are working with some of the leading

0:36:52.160 --> 0:36:57.959
<v Speaker 11>biopharma companies, including Genetech, to help them use our technology

0:36:58.080 --> 0:37:01.279
<v Speaker 11>to really create this lab in the idea, and we

0:37:01.440 --> 0:37:04.560
<v Speaker 11>are working with some of the best machine learning teams

0:37:04.680 --> 0:37:08.399
<v Speaker 11>at our customers where their machine learning teams can then

0:37:08.560 --> 0:37:12.759
<v Speaker 11>propose new experiments they want to run, new ideas they

0:37:12.800 --> 0:37:15.280
<v Speaker 11>want to test, and then again our physical AI scientists

0:37:15.320 --> 0:37:19.040
<v Speaker 11>can take those ideas, those predictions and turn that into

0:37:19.160 --> 0:37:22.440
<v Speaker 11>data that then feeds back into their machine learning models.

0:37:22.800 --> 0:37:25.680
<v Speaker 4>Its fifty two million. Where is it going to be spent?

0:37:25.840 --> 0:37:30.600
<v Speaker 4>Most predominantly talent marketing? Well, all of those again, all

0:37:30.680 --> 0:37:31.280
<v Speaker 4>of those above.

0:37:32.600 --> 0:37:39.800
<v Speaker 11>We are growing our team and expanding our team across engineering, robotics, AI, hardware, software,

0:37:40.080 --> 0:37:43.320
<v Speaker 11>and also on operations and go to market. We're expanding

0:37:43.440 --> 0:37:47.120
<v Speaker 11>partnerships with other biopharma companies and also we will be

0:37:47.239 --> 0:37:50.319
<v Speaker 11>building our own lab. We will be opening up an

0:37:50.320 --> 0:37:54.200
<v Speaker 11>autonomous lab with one hundred robots next year to be

0:37:54.280 --> 0:37:57.320
<v Speaker 11>able to run experiments and generate data at scale.

0:37:57.640 --> 0:37:59.480
<v Speaker 4>Do you think the US is leading Ham Mischelle.

0:38:00.719 --> 0:38:02.800
<v Speaker 11>We want to be leading, and Medro is going to

0:38:02.880 --> 0:38:06.680
<v Speaker 11>be that force that helps the US lead in this area.

0:38:07.360 --> 0:38:10.319
<v Speaker 4>Medra ceo Mislie. Great having some time with you. Congratulations

0:38:10.360 --> 0:38:11.680
<v Speaker 4>on the rays. We appreciate it.

0:38:12.560 --> 0:38:16.000
<v Speaker 2>The new lawsuit claims open ai and its largest investor

0:38:16.080 --> 0:38:19.960
<v Speaker 2>Microsoft are liable for a Connecticut murder suicide. It's the

0:38:20.040 --> 0:38:25.200
<v Speaker 2>latest case to blame chat GPT for dangerous psychological manipulation

0:38:25.320 --> 0:38:29.000
<v Speaker 2>of users. Representatives from both companies declined to comment, and

0:38:29.080 --> 0:38:32.440
<v Speaker 2>open ai CEO s Altman, who's also named in the suit,

0:38:32.960 --> 0:38:35.520
<v Speaker 2>didn't reply to a request for comment was sent to

0:38:35.680 --> 0:38:38.239
<v Speaker 2>open ai representatives on his behalf. I want to get

0:38:38.280 --> 0:38:42.160
<v Speaker 2>more details of Bloomberg AI reporter Rachel Metz. Let's start

0:38:42.200 --> 0:38:45.279
<v Speaker 2>with the suit. What is alleged in the suit and

0:38:45.560 --> 0:38:47.600
<v Speaker 2>some of the most important details in the reporting.

0:38:47.719 --> 0:38:53.279
<v Speaker 16>Rachel, Yeah, Well, this suit is alleging that this man

0:38:54.120 --> 0:38:57.120
<v Speaker 16>used chat GBT over a long period period of months,

0:38:57.480 --> 0:39:01.880
<v Speaker 16>and that it was consistently telling him that these delusions

0:39:01.960 --> 0:39:05.880
<v Speaker 16>that he had were accurate and they were real delusions

0:39:05.960 --> 0:39:09.520
<v Speaker 16>related to him being under surveillance to people wanting to

0:39:09.640 --> 0:39:13.719
<v Speaker 16>kill him, particularly surveillance related to his mother in the

0:39:13.760 --> 0:39:15.120
<v Speaker 16>home where they were living together.

0:39:16.600 --> 0:39:20.879
<v Speaker 4>Rachel sadly Ai psychosis is not the first time we're

0:39:20.920 --> 0:39:23.240
<v Speaker 4>talking about this. It's even got a sort of technical

0:39:23.320 --> 0:39:25.279
<v Speaker 4>name if you go out and look for it. But

0:39:26.080 --> 0:39:28.600
<v Speaker 4>when we hear from Opena are responding to this saying

0:39:28.680 --> 0:39:32.280
<v Speaker 4>we continue to improve chatchipt's training to recognize and respond

0:39:32.320 --> 0:39:35.480
<v Speaker 4>to signs of mental or emotional distress, to de escalate

0:39:35.600 --> 0:39:40.560
<v Speaker 4>conversations and guide people towards real world support. People understanding

0:39:40.600 --> 0:39:43.920
<v Speaker 4>that message, are you seeing signs that on this occasion

0:39:44.400 --> 0:39:47.200
<v Speaker 4>things could have been improved through improvements in the chatbot?

0:39:47.400 --> 0:39:51.400
<v Speaker 16>Through this case, I mean, I guess what I would

0:39:51.440 --> 0:39:54.399
<v Speaker 16>say is through the extens of reporting that I've done

0:39:55.000 --> 0:39:57.479
<v Speaker 16>and work that I've done with my colleague Ellen Hewitt,

0:39:58.200 --> 0:40:01.399
<v Speaker 16>We've seen a lot of o reasonunfold that are really

0:40:01.480 --> 0:40:04.239
<v Speaker 16>similar actually to what we're seeing in this story. This

0:40:04.400 --> 0:40:08.480
<v Speaker 16>story just happened to have a horrible, horrible outcome. So

0:40:09.280 --> 0:40:12.960
<v Speaker 16>I'm not sure if the changes that they've made are

0:40:13.040 --> 0:40:17.120
<v Speaker 16>really going to change how people are using the chatbot.

0:40:17.520 --> 0:40:19.440
<v Speaker 16>It sounds like a lot more is going to have

0:40:19.560 --> 0:40:22.080
<v Speaker 16>to be done as far as both changes and education

0:40:22.200 --> 0:40:24.839
<v Speaker 16>to users in order to make a meaningful change here.

0:40:24.920 --> 0:40:27.040
<v Speaker 16>But we're just going to have to see going forward. Also,

0:40:27.520 --> 0:40:29.680
<v Speaker 16>there are a growing number of these court cases and

0:40:29.800 --> 0:40:31.359
<v Speaker 16>we'll have to see how all of that shakes out

0:40:31.400 --> 0:40:31.719
<v Speaker 16>as well.

0:40:34.320 --> 0:40:37.359
<v Speaker 2>It's a funny thing to ask, but in the landscape

0:40:37.440 --> 0:40:42.120
<v Speaker 2>of generative AI tools and chatbots, is this something that

0:40:42.239 --> 0:40:46.480
<v Speaker 2>other technology companies face as well? You and I have

0:40:46.600 --> 0:40:50.360
<v Speaker 2>discussed character AI, for example, in the context of people

0:40:50.880 --> 0:40:55.800
<v Speaker 2>that interact with the technology, maybe for emotional support or otherwise,

0:40:55.880 --> 0:40:59.200
<v Speaker 2>But that is a very specific design of a chatbot.

0:41:00.440 --> 0:41:01.240
<v Speaker 3>Yes exactly.

0:41:01.440 --> 0:41:03.759
<v Speaker 16>I mean the Opening Eye is absolutely not the only

0:41:03.840 --> 0:41:07.919
<v Speaker 16>company that is facing this either, facing situations where people

0:41:08.080 --> 0:41:12.480
<v Speaker 16>are saying that a powerful chatbot led to or reinforced

0:41:12.920 --> 0:41:17.680
<v Speaker 16>untrue beliefs that they had. But you're also seeing this

0:41:18.239 --> 0:41:22.279
<v Speaker 16>definitely stick with this idea of powerful chatbots. I think

0:41:22.360 --> 0:41:24.040
<v Speaker 16>one thing that I think needs to be looked at

0:41:24.120 --> 0:41:28.799
<v Speaker 16>more is are there certain chatbots that seem more likely

0:41:28.920 --> 0:41:29.480
<v Speaker 16>to lead to.

0:41:29.560 --> 0:41:31.080
<v Speaker 4>These kinds of situations.

0:41:31.160 --> 0:41:35.839
<v Speaker 16>That isn't totally clear to me yet. If Replica AI,

0:41:36.000 --> 0:41:39.680
<v Speaker 16>for instance, is a service that is more intended for

0:41:40.120 --> 0:41:43.279
<v Speaker 16>emotional connections between a person and a chatbot. But does

0:41:43.320 --> 0:41:45.719
<v Speaker 16>it make a difference if a person goes into that

0:41:45.840 --> 0:41:48.120
<v Speaker 16>kind of experience knowing and desiring that.

0:41:48.360 --> 0:41:50.759
<v Speaker 4>I'm not sure. So it'll be interesting to see in.

0:41:50.760 --> 0:41:55.040
<v Speaker 16>The next few years how researchers determine what's actually going

0:41:55.080 --> 0:41:55.359
<v Speaker 16>on here.

0:41:56.320 --> 0:41:59.120
<v Speaker 4>Ratual Matts, it's a thoroughly reported piece. Thank you very

0:41:59.200 --> 0:42:03.040
<v Speaker 4>much indeed for telling it to us and our audience today. Meanwhile,

0:42:03.600 --> 0:42:06.320
<v Speaker 4>that does it for this edition. A Bloomberg Tech ed.

0:42:07.320 --> 0:42:10.360
<v Speaker 2>Yeah, our markets are under pressure, right, and Oracle is

0:42:10.400 --> 0:42:12.640
<v Speaker 2>at the heart of that story. Thought it was really

0:42:12.719 --> 0:42:15.759
<v Speaker 2>interesting that Beth Kinding, one of our guests, talks about

0:42:15.800 --> 0:42:18.960
<v Speaker 2>Broadcom after the Bell and like the similar themes there.

0:42:19.200 --> 0:42:22.680
<v Speaker 2>That Oracle decline of fourteen percent on track for its

0:42:22.719 --> 0:42:25.520
<v Speaker 2>biggest drop in twenty three to twenty four years. That's

0:42:25.560 --> 0:42:27.680
<v Speaker 2>the severity of it. We'll see where it closes. Check

0:42:27.719 --> 0:42:30.520
<v Speaker 2>out the podcast. There were loads of conversations worth recapping.

0:42:30.880 --> 0:42:33.200
<v Speaker 2>This is where you can find it from New York

0:42:33.280 --> 0:42:35.920
<v Speaker 2>City and San Francisco. This is Bloomberg Tech