WEBVTT - PC Sales, SoftBank and OpenAI, Holiday Box Office Trends 0:00:01.400 --> 0:00:05.080 From Mahard that we're Innovation Money and Power Collie in 0:00:05.200 --> 0:00:06.680 Silicon Vallet NBN. 0:00:07.040 --> 0:00:10.480 This is Bloomberg Technology with Caroline Hyde. 0:00:10.160 --> 0:00:11.280 And Ed lud Love. 0:00:24.920 --> 0:00:25.560 Live from New York. 0:00:25.600 --> 0:00:29.160 This is Bloomberg Technology coming up PC sales. They're stalling, 0:00:29.480 --> 0:00:32.280 causing Dell to fall following its third quarter earnings. 0:00:32.320 --> 0:00:33.160 Will break it all down. 0:00:33.560 --> 0:00:36.200 Plus soft Bank wants to boost its stake in open Ai, 0:00:36.320 --> 0:00:38.519 looking to buy out to our one point five billion 0:00:38.600 --> 0:00:42.240 dollars in shares from the startups employees, and Wicked and 0:00:42.280 --> 0:00:44.519 gladiated to have kicked off what's likely to be a 0:00:44.600 --> 0:00:47.920 strong holiday season for cinemas. We bring you the content 0:00:47.960 --> 0:00:51.440 to consume this Thanksgiving, but first we check on these markets. 0:00:51.800 --> 0:00:55.240 And we've got some good news being bad news. Basically, 0:00:55.240 --> 0:00:57.760 we've got a strong set of data in the economy. 0:00:57.840 --> 0:01:02.200 We've still got PCE, that gauge of consumer price points 0:01:02.240 --> 0:01:04.640 that the fedso looks at coming in where we expected 0:01:04.680 --> 0:01:07.480 two point eight percent growth, but that is still strong. 0:01:07.560 --> 0:01:09.360 And maybe we get a more cautious FED into a 0:01:09.440 --> 0:01:12.640 rate cutting cycle. Maybe we don't cut at the anticipated rates, 0:01:12.680 --> 0:01:14.880 so we see a sell off in the markets as 0:01:14.920 --> 0:01:17.040 perhaps that's the changing of the guard when the Federal 0:01:17.040 --> 0:01:19.440 Reserve view, we're off by one point one percent. Big 0:01:19.480 --> 0:01:21.760 Tech sells off the most video for example, down by 0:01:21.760 --> 0:01:24.600 more than three percent. But not just from a point's perspective. 0:01:24.600 --> 0:01:26.800 What leads us lower on the SMP is some of 0:01:26.800 --> 0:01:28.959 the earnings that we got. Let's just look at what's 0:01:29.000 --> 0:01:32.440 happening on the likes of Dell HP, both of them 0:01:32.520 --> 0:01:34.959 key drags on the S and P five hundred. Today, 0:01:34.959 --> 0:01:38.160 I'm looking at hping of by thirteen percent almost let's 0:01:38.160 --> 0:01:40.600 call it, Dell off by twelve percent, both of these 0:01:40.640 --> 0:01:44.400 signifying that that recovery in PC demand just isn't really 0:01:44.400 --> 0:01:46.839 happening at the pace that we are anticipating. We've also 0:01:46.880 --> 0:01:48.760 got some AI to weave into all of this. We 0:01:48.760 --> 0:01:51.680 can do it at Bloomberg's Brody Ford body. Let's start 0:01:51.680 --> 0:01:55.080 with Dell, because this is a company that not only 0:01:55.160 --> 0:01:58.920 is focusing in on the AI server perspective, but this 0:01:58.960 --> 0:02:01.680 is all about PC hardware and a recovery that just 0:02:01.760 --> 0:02:02.360 isn't happening. 0:02:03.680 --> 0:02:06.320 Yeah, I am speaking to you currently on a laptop 0:02:06.400 --> 0:02:09.639 that I bought in summer twenty twenty, and I'm still 0:02:09.680 --> 0:02:10.320 happy with it. 0:02:10.440 --> 0:02:12.200 Right, I mean, they want me to buy a new one. 0:02:12.200 --> 0:02:14.760 I get advertisements all the time, but I'm still sticking 0:02:14.800 --> 0:02:17.760 with this laptop that's pushing five years old. And the 0:02:17.880 --> 0:02:21.160 data shows that I'm not alone. It seems like a lot. 0:02:20.919 --> 0:02:24.320 Of businesses and consumers bought these laptops in the early 0:02:24.440 --> 0:02:27.880 days of the pandemic. And you know, for a while now, 0:02:28.000 --> 0:02:30.640 the Hps and Dells of the world have said the 0:02:30.720 --> 0:02:34.280 PC market recovery is just a quarter or two out. 0:02:34.360 --> 0:02:34.840 It's coming. 0:02:34.919 --> 0:02:36.520 People are going to buy new computers. 0:02:36.560 --> 0:02:39.280 It's time, and as we've seen in these earnings, it 0:02:39.480 --> 0:02:40.320 just keeps. 0:02:40.080 --> 0:02:43.120 Getting pushed out as folks, you know, they're tight on 0:02:43.160 --> 0:02:46.520 their budgets, they're spending money elsewhere, and they're still happy 0:02:46.520 --> 0:02:48.480 with that hardware they got, you know, a couple of 0:02:48.560 --> 0:02:49.000 years ago. 0:02:49.840 --> 0:02:51.720 All eyes are the forecast being a little bit weak 0:02:51.760 --> 0:02:54.399 and then anticipated keeping it quick. For us, Brady forward, 0:02:54.440 --> 0:02:56.799 we really appreciate that roundup of numbers. We've got more 0:02:56.840 --> 0:03:00.200 earnings to report to go through. Of course, CrowdStrike having 0:03:00.240 --> 0:03:01.959 a look at shares off by four and a half percent. 0:03:02.040 --> 0:03:04.760 We can detail this with Margi Murphy joining us on 0:03:04.800 --> 0:03:07.320 the fact that boy, we go back to the summer, 0:03:07.360 --> 0:03:09.000 we go to the impact on Microsoft. 0:03:09.080 --> 0:03:10.120 We think about. 0:03:10.120 --> 0:03:12.919 The offline implications of CrowdStrike. 0:03:13.080 --> 0:03:15.280 Have they recovered right? 0:03:15.360 --> 0:03:18.760 Yeah, So July nineteenth, we have had this global tech 0:03:18.840 --> 0:03:23.839 outage after CrowdStrike pushed out a software update impacting. 0:03:24.919 --> 0:03:27.119 Devices using Windows operating systems. 0:03:27.520 --> 0:03:29.960 It looks like, you know, it was their second report 0:03:30.080 --> 0:03:34.520 since this glitch, and it looks like sales haven't been 0:03:34.600 --> 0:03:39.040 hit by it. However, shares dropped when investors read about 0:03:39.120 --> 0:03:42.400 the estimates for the earnings of for share in the. 0:03:43.880 --> 0:03:45.440 For the next earnings report. 0:03:45.520 --> 0:03:48.480 So that's eighty four cents to eighty six cents when 0:03:48.720 --> 0:03:51.680 the analysts we're expecting eighty seven cents, which suggests that 0:03:51.720 --> 0:03:54.280 they're not out of the woods quite yet and the 0:03:54.320 --> 0:03:55.800 headwinds could continue. 0:03:56.400 --> 0:03:58.680 Talk to us a little bit about a thirty two 0:03:58.720 --> 0:04:02.040 million dollar deal with Parasoft in particular, and whether or 0:04:02.120 --> 0:04:05.640 not we're getting deals pushed out or canceled or any 0:04:05.720 --> 0:04:08.840 rethinking ultimately on demand for products coming from CrowdStrike. 0:04:10.240 --> 0:04:13.840 Yeah, the company did refer to this illness. 0:04:13.840 --> 0:04:19.680 Earnings were cool, but currently basing, very focused and talking 0:04:19.720 --> 0:04:22.839 about their products to come. In terms of the AI 0:04:23.080 --> 0:04:28.600 and updates there. In terms of deals with the government, 0:04:29.200 --> 0:04:32.960 they were pretty tight lipped. 0:04:32.720 --> 0:04:34.560 On that, so more to see. 0:04:34.680 --> 0:04:38.520 That must be noted that third quarter revenue did actually 0:04:38.520 --> 0:04:41.320 come in better than expective. Maggie Murphy on the breakdown 0:04:41.320 --> 0:04:44.719 of what happened with CrowdStrike, more earnings, tech more broadly, 0:04:44.960 --> 0:04:47.880 let's talk about all of it. Angela, Bastien Pillies with 0:04:48.000 --> 0:04:50.640 us picked up asset management. It is wonderful to have 0:04:50.680 --> 0:04:53.400 some time in the ANGELI and just we're trying to 0:04:53.520 --> 0:04:57.640 understand whether this whole exuberance around generative AI, whether the 0:04:57.680 --> 0:05:00.240 desire to get into the infrastructure really is implicating saying 0:05:00.480 --> 0:05:02.960 you're on my demand for PC, you're a my demand 0:05:03.000 --> 0:05:07.000 for new protection and cybersecurity that involves general to AI. 0:05:07.279 --> 0:05:08.800 Is it being translated yet? 0:05:09.760 --> 0:05:12.440 Yeah, it's quite interesting. I think there's a huge expectation 0:05:12.480 --> 0:05:14.520 obviously on journey of AI. It's been two years now, 0:05:14.520 --> 0:05:17.000 we're in November twenty twenty four now, since the launch 0:05:17.000 --> 0:05:19.760 of judg EBT. I think what's interesting is that the 0:05:19.760 --> 0:05:22.760 buildout is creating a lot of demand for all sorts 0:05:22.800 --> 0:05:26.200 of new technologies. I think you mentioned the PC, the smartphones. 0:05:26.240 --> 0:05:29.520 I think clearly HBM high band with memory. Nobody would 0:05:29.520 --> 0:05:32.359 have expected that demand to be so high even a 0:05:32.400 --> 0:05:36.040 year ago. I think that trickles down to PC smartphones. 0:05:36.080 --> 0:05:38.680 Of course lackluster numbers today, but at the same time, 0:05:38.720 --> 0:05:40.640 when you think about AI on the edge and what 0:05:40.760 --> 0:05:44.800 can come around any smartphone, including obviously the iPhone seventeen, 0:05:44.839 --> 0:05:47.320 which is all they expected to increase their memory by 0:05:47.400 --> 0:05:50.719 at least fifty percent for the next round of innovations. 0:05:50.760 --> 0:05:55.000 So I think AI on the edge HM high band 0:05:55.080 --> 0:05:58.640 with memory famous Moore's law now also embedding you know, 0:05:58.680 --> 0:06:01.440 a lot more memory in order to run Geneva. I 0:06:01.440 --> 0:06:03.800 I think that buildout is creating a lot of demand 0:06:03.880 --> 0:06:07.279 for obviously different technologies from semiconductor design all the way 0:06:07.320 --> 0:06:11.480 to semiconductor software, but also to the actual equipment makers 0:06:11.520 --> 0:06:14.400 who also now see sort of demand for this advanced 0:06:14.400 --> 0:06:17.880 packaging that I mentioned earlier. So I think where we 0:06:17.960 --> 0:06:21.640 are is also an S curve. So the infrastructure build 0:06:21.640 --> 0:06:24.360 out of c very important. But even in the second 0:06:24.480 --> 0:06:28.359 third phase, there's some very interesting, you know, investments that 0:06:28.400 --> 0:06:31.200 we see in software now starting to embed more and more. 0:06:31.400 --> 0:06:34.560 Jenny VII, I mean you mentioned CrowdStrike earlier. That's a 0:06:34.600 --> 0:06:37.800 great example where there's a talent shortage where Jenny I 0:06:37.920 --> 0:06:41.279 can actually help you. You know, CrowdStrike has a product 0:06:41.279 --> 0:06:46.239 called CHARLOTTYI, so that helps you also find problems or event. 0:06:46.960 --> 0:06:51.200 Data driven information can be used within Genovai as well 0:06:51.240 --> 0:06:53.160 within the products that they sell, and that's quite interesting 0:06:53.320 --> 0:06:54.120 there about. 0:06:54.560 --> 0:06:57.960 The question though for many is there's interesting s clubs, 0:06:58.320 --> 0:07:01.600 there's there's interesting opportunity. You talk about the whole bandwidth 0:07:01.600 --> 0:07:04.800 where you could be allocating money, But are the valuations 0:07:04.800 --> 0:07:07.920 already reflecting the optimism that we get AI at the 0:07:08.040 --> 0:07:09.279 edge we will start adopting it. 0:07:10.440 --> 0:07:15.320 So I think on valuations it's an interesting sort of dilemma. 0:07:15.400 --> 0:07:18.080 I think right now, I think there's a lot going 0:07:18.120 --> 0:07:21.200 on in terms of the obviously profitability revenues that you 0:07:21.240 --> 0:07:25.200 see today and probably justifies a lot of it. But 0:07:25.280 --> 0:07:29.040 I think moving forward to a bigger, I think pool 0:07:29.160 --> 0:07:34.160 of potential investments opportunities beyond the tech stocks. If you 0:07:34.200 --> 0:07:37.440 want all the information technology stocks, I think you see 0:07:37.480 --> 0:07:40.560 a lot of other areas which are not necessarily related 0:07:40.600 --> 0:07:44.880 to it, which can have very you know, obviously interesting valuations, 0:07:44.920 --> 0:07:48.760 also interesting opportunities. So when you look through beyond an 0:07:48.840 --> 0:07:51.080 index or beyond a handful of stocks, I think there 0:07:51.120 --> 0:07:53.880 can be some very interesting opportunities there where the valuations 0:07:53.960 --> 0:07:57.880 may not be as high, and also the potential remains 0:07:57.880 --> 0:07:59.200 still very very strong because there was. 0:07:59.240 --> 0:08:02.800 Some example, are you talking about energy opportunities, you talk 0:08:02.840 --> 0:08:07.320 about other spaces within software that for example hasn't already 0:08:07.320 --> 0:08:09.040 been priced in like a Palenteer. 0:08:10.520 --> 0:08:13.480 So I think we look at everything from like I 0:08:13.560 --> 0:08:17.120 mentioned some of the equipment makers which play a big role, 0:08:17.240 --> 0:08:19.960 and the whole US reshowing you're showing. I mean, there's 0:08:20.160 --> 0:08:23.240 huge subsidies out there and huge sort of investments that 0:08:23.280 --> 0:08:26.080 are all the out there for a huge number of 0:08:26.480 --> 0:08:29.320 these new buildouts of Semiconustric. 0:08:28.800 --> 0:08:33.400 Intel you're saying, and even a TSMC in this geopolitical environment. 0:08:34.080 --> 0:08:36.600 So if you take under the reshowing sor if you're 0:08:36.640 --> 0:08:41.559 showing sort of examples, if you take Micron, TSMC, Intel, Samsung, 0:08:41.720 --> 0:08:44.040 you have more than three hundred and twenty five billion 0:08:44.200 --> 0:08:46.920 of all the you know, sort of expenses out there 0:08:46.920 --> 0:08:49.120 in terms of building out these brand new factories. So 0:08:49.559 --> 0:08:52.160 I think there that means that you're going to embed 0:08:52.240 --> 0:08:55.560 a lot of new equipment within those factories and then 0:08:55.600 --> 0:08:59.320 obviously a lot of other softwares and even industrial robotics 0:08:59.360 --> 0:09:02.199 within those trees. Because these chips sometimes are so heavy 0:09:02.240 --> 0:09:04.960 you need robotics arms to carry them. So those are 0:09:04.960 --> 0:09:07.720 the sort of examples where you can look beyond sort of, 0:09:07.760 --> 0:09:11.160 you know, some of the obvious IT stocks that very 0:09:11.160 --> 0:09:14.040 often would fall into that category of valuations being a 0:09:14.040 --> 0:09:14.520 bit tricky. 0:09:14.880 --> 0:09:18.080 Your CV is so fascinating because, like me, you sort 0:09:18.080 --> 0:09:20.560 of started focusing in on the bomb market, credit, and 0:09:20.600 --> 0:09:24.679 then you've really dived into some niche areas that everyone's. 0:09:24.200 --> 0:09:26.520 Now interested in digitalization. 0:09:26.000 --> 0:09:29.040 Robotics, As you say security, Where are we going to see, 0:09:29.080 --> 0:09:32.640 for example, the robotics reimagining come in? Where is it 0:09:32.800 --> 0:09:34.640 US based companies? Is it global? 0:09:35.960 --> 0:09:38.240 Interesting? I think on the robotics side, you can look 0:09:38.280 --> 0:09:41.800 at everything from actual industrial robotics, so factory arms that 0:09:41.880 --> 0:09:44.720 help you build semiconductor chips or eb cars, et cetera. 0:09:45.080 --> 0:09:48.080 But the automation behind robotics is quite interesting in terms 0:09:48.120 --> 0:09:51.839 of expanding through software through all these data driven decisions, 0:09:51.920 --> 0:09:55.120 both for industrial and for enterprise. Actually, there's a very 0:09:55.120 --> 0:09:58.840 interesting chart that I often use about the growth since 0:09:58.880 --> 0:10:02.960 twenty twenty one to thirty about the semiconductor industry, and 0:10:03.000 --> 0:10:06.840 you will see the growth rate is actually quite interesting 0:10:06.880 --> 0:10:10.200 in the automotive and the industrial sector, and that's. 0:10:10.040 --> 0:10:11.600 Also obviously driving a lot of MENA. 0:10:12.080 --> 0:10:17.280 Recently Zeeman's acquiring Altare or even Synopsis acquiring ANSS. There's 0:10:17.320 --> 0:10:20.560 a lot of emine in that space because the hardware, 0:10:20.559 --> 0:10:24.400 if you want, is supplemented more and more with the software, 0:10:24.440 --> 0:10:27.320 but also the data driven decisions. I think that in 0:10:27.360 --> 0:10:29.640 the field of roboties will be quite interesting going forward. 0:10:30.040 --> 0:10:31.800 Angelae, great to have some time with you. 0:10:32.400 --> 0:10:35.840 Come back, thank you asually past MLA FicT Asset Management. I. 0:10:35.840 --> 0:10:37.840 Meanwhile, coming up, we're going to be joined by the. 0:10:37.760 --> 0:10:40.960 CEO of Metanics on the company's earnings results, his thoughts 0:10:40.960 --> 0:10:43.840 on trends in enterprise spending in general to AI. 0:10:44.080 --> 0:10:45.680 This is bloom bag technology. 0:10:53.520 --> 0:10:57.360 Infrastructure software company Btanics for the first quarter results fiscal 0:10:57.360 --> 0:10:59.520 first quarter and gave an outlook seen as pretty positive 0:10:59.520 --> 0:11:01.839 by analyst. Shares though coming off of their highs on 0:11:01.880 --> 0:11:03.640 the day, we're now trading lower. Let's talk about it 0:11:03.640 --> 0:11:06.719 with the Newtanic CEO regime Ramaswami joining us now and 0:11:07.040 --> 0:11:10.200 people feeling that perhaps you had good set of growth 0:11:10.320 --> 0:11:14.480 but cautious outlook here, particularly when it comes to federal spending. 0:11:14.559 --> 0:11:16.199 Can you just talk us through some of that caution. 0:11:17.200 --> 0:11:20.160 Yes, thank you, Carolyn. Great to be on here. If 0:11:20.200 --> 0:11:21.000 we had a good quarter. 0:11:21.080 --> 0:11:23.559 We exceeded all our guided metrics, and we also were 0:11:23.559 --> 0:11:26.320 able to raise our guide for Q two, but we 0:11:26.520 --> 0:11:28.800 felt it prudent to keep our revenue guide for the 0:11:28.840 --> 0:11:32.000 full year the same while we raised our free cash 0:11:32.040 --> 0:11:32.680 pro guide. 0:11:32.960 --> 0:11:36.679 Now, this quarter we had a relatively weak federal business. 0:11:36.720 --> 0:11:39.640 It's usually the peak business for FED, given it's their 0:11:39.720 --> 0:11:40.120 year end. 0:11:41.480 --> 0:11:44.080 We expect FED spending to return to normal levels more 0:11:44.200 --> 0:11:46.200 or less in Q two, But then we have a 0:11:46.200 --> 0:11:50.280 new administration coming on board in January, and you know, 0:11:50.360 --> 0:11:52.440 we don't exactly know what's going to happen, but we 0:11:52.520 --> 0:11:55.439 have to adapt to whatever may happen with the new administration, 0:11:55.600 --> 0:11:57.880 and so we're being a bit cautious about the FED 0:11:58.000 --> 0:12:00.400 overall for the rest of the year, and it's one 0:12:00.480 --> 0:12:01.439 of the reasons. 0:12:01.040 --> 0:12:04.200 Why we kept our fullier revenue outlook the same. 0:12:04.520 --> 0:12:06.240 We can see the last three months your shares have 0:12:06.320 --> 0:12:07.680 done well, up some thirty percent. 0:12:08.200 --> 0:12:09.920 Morgan Stanley was putting it out there. 0:12:09.880 --> 0:12:12.720 That they feel technology spend is more immune to perhaps 0:12:12.760 --> 0:12:15.080 the belt tightening we're going to see more broadly with 0:12:15.160 --> 0:12:16.120 the new administration. 0:12:16.360 --> 0:12:17.200 Do you feel that. 0:12:17.280 --> 0:12:21.119 Sort of viewpoint, does usually you ride out any cutbacks? 0:12:22.000 --> 0:12:25.679 Yeah, I think fundamentally when I look at every company, 0:12:25.679 --> 0:12:30.120 including governments and organizations, are becoming software entities more and 0:12:30.200 --> 0:12:33.760 more because they rely on applications and data to drive 0:12:33.800 --> 0:12:37.199 their businesses more so than ever, and so from that perspective, 0:12:37.200 --> 0:12:40.240 they have to make the right investments and technology, especially software. 0:12:40.640 --> 0:12:41.640 So I look at it and. 0:12:41.559 --> 0:12:44.800 Say, there's an overall macro situation, and within that situation, 0:12:44.960 --> 0:12:47.240 text sped will probably do slightly better than whatever you 0:12:47.280 --> 0:12:50.120 see in macro, and within that software spending is probably 0:12:50.160 --> 0:12:52.600 going to be better, right as they have to invest 0:12:52.600 --> 0:12:55.440 in these key initiatives. Now, all that said, though, we've 0:12:55.480 --> 0:12:57.800 talked for several quarters about how people are being very 0:12:57.840 --> 0:13:00.400 careful about making sure they get the benefit for what 0:13:00.440 --> 0:13:03.040 they spend, looking at the returnal investment, looking at the 0:13:03.080 --> 0:13:05.840 total cost of ownership benefits. And that's one of the 0:13:05.880 --> 0:13:08.480 things that we very much provide as a company and 0:13:08.600 --> 0:13:12.000 when customers pick us to run their applications and data, 0:13:12.360 --> 0:13:12.800 and that's. 0:13:12.679 --> 0:13:15.640 Been the selling point of hyperconverged infrastructure more broadly, because 0:13:15.640 --> 0:13:19.000 you're doing this storage, the computing, the networks altogether I'm 0:13:19.040 --> 0:13:21.360 interested as youve though, with that come some supply chain 0:13:21.400 --> 0:13:23.360 headaches that you suffered in the past. I go back 0:13:23.400 --> 0:13:26.360 a few years and you were very well versed at 0:13:26.360 --> 0:13:30.360 talking us through macro headwinds. When you're looking at geopolitics 0:13:30.400 --> 0:13:32.679 as it is, do you have any worries about your 0:13:32.679 --> 0:13:35.480 own supply chain or access to certain hardware for example? 0:13:36.320 --> 0:13:37.720 Yeah, First of all, to be clear, we are a 0:13:37.760 --> 0:13:42.240 software company, but customers run our software on hardware, so 0:13:42.320 --> 0:13:45.240 their access hardware is important for them to run our 0:13:45.280 --> 0:13:47.880 software right, and that's the indirect dependency that we have 0:13:48.640 --> 0:13:49.640 on the supply chain. 0:13:49.800 --> 0:13:52.319 Now, what we've done on our front is we provided. 0:13:51.920 --> 0:13:55.200 A lot of diversity and choice for customers. They can 0:13:55.360 --> 0:13:58.280 pick their choice of server vendors across the spectrum pretty 0:13:58.360 --> 0:14:01.280 much any server vendor and run our software on it. 0:14:01.640 --> 0:14:05.080 So that helps them diversify a bit from any supply 0:14:05.160 --> 0:14:08.840 chain shortages that might come on board because. 0:14:08.520 --> 0:14:12.319 They do have this broad choice. And as a software company, 0:14:12.400 --> 0:14:13.240 that's what we try and do. 0:14:13.280 --> 0:14:15.679 We try and provide that flexibility and freedom of choice 0:14:15.720 --> 0:14:17.680 so that our customers can conduct their business. 0:14:18.000 --> 0:14:20.240 And you've been building out partnership, so it's interesting that 0:14:20.320 --> 0:14:22.720 on the same day as your numbers. We digest Dell 0:14:22.920 --> 0:14:27.360 of course, big in server AI servers and good growth 0:14:27.400 --> 0:14:28.000 there for them. 0:14:28.080 --> 0:14:30.040 Perhaps the market got ahead of that growth. 0:14:30.320 --> 0:14:32.600 I'm interested as to how the market's digesting your own 0:14:32.640 --> 0:14:33.760 generative AI focus. 0:14:34.640 --> 0:14:38.080 Yeah, for us, our generative focus AAI focuses pretty early. 0:14:38.480 --> 0:14:41.040 If you look at AI overall in the market, a 0:14:41.080 --> 0:14:44.080 lot of the money has been spent on training, large 0:14:44.160 --> 0:14:47.480 language models and massive compute clusters, driven by a relatively 0:14:47.480 --> 0:14:52.040 small number of high spenders. The vast majority of enterprises 0:14:52.080 --> 0:14:53.360 and government organizations. 0:14:53.560 --> 0:14:54.480 These are our customers. 0:14:54.520 --> 0:14:56.320 You know, there's one hundred thousand of them around plus 0:14:56.680 --> 0:14:58.960 around the world. Today we have about twenty six thousands 0:14:58.960 --> 0:15:01.360 of them as our customers. They are still in the 0:15:01.400 --> 0:15:05.800 early stages of deploying and adopting GENERALLYBAI. Most of them 0:15:05.840 --> 0:15:08.240 are first of all going to be consuming these models 0:15:08.280 --> 0:15:10.640 that are pre trained, and they're going to be using 0:15:10.680 --> 0:15:14.960 it for inferencing, fine tuning, rag and inferencing so that 0:15:15.040 --> 0:15:18.320 they can get real productivity gains. For example, improve the 0:15:18.320 --> 0:15:23.120 productivity of their developers, improve their customer support, I'll get 0:15:23.200 --> 0:15:25.440 better means to do fraud detection. 0:15:25.160 --> 0:15:27.800 As an example. These are some of the applications that 0:15:28.360 --> 0:15:31.080 companies around the world and organizations are trying to build. 0:15:31.720 --> 0:15:34.880 We provide a simple platform that provides a turnkey way 0:15:34.920 --> 0:15:38.960 for them to build and deploy those genera AVIAI inferencing applications, 0:15:39.640 --> 0:15:42.960 and so that market is still early. Most companies are 0:15:43.000 --> 0:15:45.240 at this point incubating these applications. 0:15:45.280 --> 0:15:46.880 We've seen some go to production. 0:15:47.400 --> 0:15:49.520 I do think twenty twenty five and twenty twenty six 0:15:49.520 --> 0:15:51.720 are going to be big years as companies take those 0:15:51.760 --> 0:15:52.840 applications to production. 0:15:53.360 --> 0:15:56.240 Still wedding regime from Aswami, it's great tows some time 0:15:56.280 --> 0:16:07.040 with the NTANIC CEO there. Jamison Greer, who is President 0:16:07.120 --> 0:16:10.240 elect Donald Trump's pick for the top trade position, sees 0:16:10.320 --> 0:16:14.040 China as a quote generational challenge to the United States, 0:16:14.240 --> 0:16:17.280 has advocated for a strategic decoupling from the country, and 0:16:17.320 --> 0:16:19.520 he's actually already played a pretty key role in imposing 0:16:19.560 --> 0:16:22.360 TARIS on China during Trump's first term. Let's get to 0:16:22.400 --> 0:16:24.640 grips of it from a tech perspective with Blumbags Mike 0:16:24.680 --> 0:16:25.320 Sheppard in d C. 0:16:25.560 --> 0:16:26.680 Mike, Look, we. 0:16:26.600 --> 0:16:29.600 Once again are just getting the feeling that anyone with 0:16:29.680 --> 0:16:32.560 exposure to China supply chain or demand is going to 0:16:32.600 --> 0:16:33.560 having a tough time. 0:16:35.320 --> 0:16:38.920 That's right, Caroline, And the selection of Jameson Greer, as 0:16:38.960 --> 0:16:42.880 you noted, really signals a direction of travel for this 0:16:43.040 --> 0:16:44.960 incoming administration. 0:16:44.760 --> 0:16:47.800 That may be hard for companies to avoid. 0:16:48.080 --> 0:16:51.200 There have been some hope that the naming of Scott Pissent, 0:16:51.280 --> 0:16:55.800 for example, as the incoming Treasury Secretary, could mean that 0:16:56.040 --> 0:16:59.800 Trump might temper his desire to impose tariffs of this 0:17:00.080 --> 0:17:02.680 much as sixty percent on Chinese goods the way he 0:17:02.720 --> 0:17:05.920 had promised on the campaign trail. But picking Jamison Greer 0:17:06.000 --> 0:17:09.719 for this key trade position, which will negotiate and elaborate 0:17:09.800 --> 0:17:12.919 US trade policy, suggests otherwise. 0:17:13.040 --> 0:17:13.560 Very much so. 0:17:13.800 --> 0:17:17.440 And when we talk about this strategic decoupling, Greer has 0:17:17.520 --> 0:17:20.359 left us a few clues and about what that means 0:17:20.359 --> 0:17:23.240 and how he could pursue it. For one, he has 0:17:23.560 --> 0:17:28.200 floated the idea of revoking China's permanent normal Trade relation status, 0:17:28.200 --> 0:17:31.200 and this is one that was granted to Beijing back 0:17:31.200 --> 0:17:33.439 in two thousand when China was trying to enter the 0:17:33.720 --> 0:17:37.119 World Trade Organization. That would put China back on the 0:17:37.119 --> 0:17:41.399 same footing as Russia, Cuba, and North Korea, and it 0:17:41.440 --> 0:17:44.520 would subject Chinese goods through a range of terrorists that 0:17:44.560 --> 0:17:47.359 are exempted from right now. 0:17:47.840 --> 0:17:48.480 The other thing he. 0:17:48.440 --> 0:17:51.320 Has talked about doing is expanding export controls of the 0:17:51.400 --> 0:17:53.879 kind that we've seen the Biden administration imposed and a 0:17:53.960 --> 0:17:57.080 range of tech products, and all of this is huge 0:17:57.280 --> 0:18:01.119 ramifications for companies like Apple and Intel and venture investors. 0:18:01.160 --> 0:18:03.560 Well precisely, I'm Tim Cook. 0:18:03.680 --> 0:18:08.240 I'm sat there reading this hypothesis and this generational challenge. 0:18:08.760 --> 0:18:11.280 Am I going to sit there confidently that I'm going 0:18:11.359 --> 0:18:13.240 to get some exemption that I'm a carve out. 0:18:15.080 --> 0:18:18.439 If you're Tim Cook, you already know Donald Trump pretty 0:18:18.440 --> 0:18:21.240 well from his first term in office, and you will 0:18:21.280 --> 0:18:25.520 remember the experience that you went through as he imposed 0:18:25.520 --> 0:18:29.000 harraffs on goods coming in from China. And he knows 0:18:29.040 --> 0:18:33.240 that he will need to intercede and intervene pretty quickly 0:18:33.280 --> 0:18:36.960 and very personally with the president. Donald Trump is somebody 0:18:36.960 --> 0:18:40.600 who likes to engage with CEOs and businesses and is 0:18:40.640 --> 0:18:43.359 willing to hear them out. But the time to act 0:18:43.440 --> 0:18:44.840 is sooner rather than later. 0:18:44.920 --> 0:18:45.480 So you can. 0:18:45.400 --> 0:18:49.000 Expect that top executives will be trying to get Donald 0:18:49.040 --> 0:18:51.960 Trump's here and even also talk to Jamison Greer and 0:18:52.200 --> 0:18:56.920 other top economic officials like Scott Piscent incoming Treasury Chief, 0:18:57.160 --> 0:19:01.480 and then also the person he designated it his National 0:19:01.520 --> 0:19:04.840 Economic Council Director, and that is Kevin Hazard, whom he. 0:19:04.880 --> 0:19:05.600 Named last night. 0:19:06.000 --> 0:19:10.000 Another person recognized from the first administration, Mike Shephard, Thank 0:19:10.040 --> 0:19:12.760 you so much. Like talking of one key CEO who 0:19:12.800 --> 0:19:16.320 has Trump's ear. Let's get today's Tech Daily, written by 0:19:16.359 --> 0:19:19.560 Blue mos Kirk Wagner, who says Elon Musk is about 0:19:19.600 --> 0:19:22.640 to twitterize the US government in his new official role 0:19:22.960 --> 0:19:25.240 as a head of the Department of Government Efficiency, an 0:19:25.280 --> 0:19:29.480 unofficial Trump anointed group tasked with identifying some two trillion 0:19:29.520 --> 0:19:30.480 dollars in spending cuts. 0:19:30.960 --> 0:19:31.760 Kurt joins us. 0:19:31.800 --> 0:19:33.800 Now, look, we can debate whether two trillion is ever 0:19:33.880 --> 0:19:37.520 really a reality or a figure that can be attained, 0:19:37.920 --> 0:19:40.920 but boy, we can kind of sense what's coming from 0:19:40.960 --> 0:19:42.280 what happened to Twitter now X. 0:19:43.680 --> 0:19:46.320 Yeah, we've been here before, right two years ago, we 0:19:46.320 --> 0:19:50.119 were watching him basically go into another institution, in this 0:19:50.200 --> 0:19:54.240 case Twitter, and got the company right. And we're seeing 0:19:54.280 --> 0:19:57.560 a lot of the same strategies come forward already in 0:19:57.600 --> 0:20:00.919 this sort of first couple weeks of the Department of 0:20:00.920 --> 0:20:03.560 Government Efficiency. So you know, he said he's going to 0:20:03.560 --> 0:20:06.439 eliminate work from home. He's going to have, you know, 0:20:06.600 --> 0:20:11.560 dramatic cost cuts on headcount for people. We know that 0:20:11.600 --> 0:20:14.080 he's going to do things at a million miles per hour. 0:20:14.160 --> 0:20:16.200