WEBVTT - Micron’s Rosy Memory Outlook Lifts AI Hopes 0:00:02.520 --> 0:00:07.080 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.360 --> 0:00:10.760 By the way, we are expecting very shortly the launch 0:00:10.840 --> 0:00:13.520 of Blue Origin's latest rocket. You're looking at a live 0:00:13.560 --> 0:00:16.120 shot in West Texas of it. It's said to launch 0:00:16.160 --> 0:00:19.720 its latest crew of six on its flagship Space Tourism rocket. 0:00:20.000 --> 0:00:23.680 To date, Blue Origin has flown eighty individuals above the 0:00:23.760 --> 0:00:26.920 Carmen Line, the internationally recognized boundary of space. Let's bring 0:00:26.920 --> 0:00:30.639 in Bloomberg Texts Caroline Hyde. Caroline, what exactly do we 0:00:30.680 --> 0:00:33.200 know about this specific rocket launch which we are waiting 0:00:33.240 --> 0:00:34.520 for in about three minutes time. 0:00:35.000 --> 0:00:37.320 It's on hold T minus ten minutes. 0:00:37.640 --> 0:00:41.199 We're currently pausing waiting to see if this will indeed 0:00:41.240 --> 0:00:41.680 go ahead. 0:00:41.800 --> 0:00:42.320 Is planned? 0:00:42.520 --> 0:00:45.080 This is New Shepherd's rocket, the thirty seventh, as we've 0:00:45.120 --> 0:00:48.440 been thinking, NS thirty seven is the sixteenth human flight, 0:00:48.560 --> 0:00:50.519 as you say, the six individuals on board this time. 0:00:50.560 --> 0:00:52.480 Actually it's the first time that we ever see someone 0:00:52.440 --> 0:00:55.880 of the wheelchair go in across the common line as well, 0:00:55.920 --> 0:00:59.080 so a significant step there. And is it's thirty seventh 0:00:59.200 --> 0:01:03.040 overall that we've seen with New Shepherd. And and remember 0:01:03.160 --> 0:01:05.680 New Shepherd named after Alan Shepherd, who was the first 0:01:05.760 --> 0:01:09.920 ever American astronaut in space. It's about sixty foot tall 0:01:10.240 --> 0:01:13.160 that you're currently looking at gazing on your screens. It's 0:01:13.160 --> 0:01:15.319 topped with what is sort of known as kind of 0:01:15.319 --> 0:01:19.640 a gun drop shaped crew capsule, and that of course 0:01:19.880 --> 0:01:23.039 is what will then come back down to Earth supported 0:01:23.080 --> 0:01:25.360 by parachutes a little bit later. They're only going to 0:01:25.400 --> 0:01:27.880 be about a ride of eleven minutes when they take 0:01:27.920 --> 0:01:30.720 off from West Texas, Danny, and it. 0:01:30.560 --> 0:01:32.480 Operates in completely autonomously. 0:01:32.720 --> 0:01:35.600 There are no pilots on board, but we are waiting 0:01:35.640 --> 0:01:38.720 to see whether indeed does go ahead as planned. So 0:01:38.760 --> 0:01:41.840 Matt Miller, Danny Berger, thank you very much indeed for 0:01:41.920 --> 0:01:47.040 what was another amazing stretch of time of the opening 0:01:47.080 --> 0:01:49.560 of this market with open interest. But we want to 0:01:49.560 --> 0:01:52.040 get to what's happening here live. As you see, that's 0:01:52.080 --> 0:01:54.680 the gun drop shaped crew capsule which currently has on 0:01:54.760 --> 0:01:58.800 board a German aerospace engineer, the first person who uses 0:01:58.840 --> 0:02:02.280 a wheelchair that can reach but also plenty of others 0:02:02.320 --> 0:02:05.440 are going alongside her. So that's Mitchie Bunthhouse. But we're 0:02:05.480 --> 0:02:07.880 seeing Joey Hyde, no relation. It's a physicist and a 0:02:07.920 --> 0:02:10.480 hedge fund investor from Florida. We're seeing a German American 0:02:10.520 --> 0:02:12.160 aerospace engineer go into flight. 0:02:12.440 --> 0:02:13.840 A business executive and entrepreneur. 0:02:13.880 --> 0:02:17.720 That's Neil Milch, as well other entrepreneurs, other adventurers going 0:02:17.800 --> 0:02:20.959 on this particular fight from the company's private ranch facility 0:02:21.040 --> 0:02:24.880 known as Launch Site one in Texas. It's located north 0:02:24.919 --> 0:02:29.200 of the town Van Horn, near US Mexico border. So 0:02:29.280 --> 0:02:31.360 let's just get a little sense of how important this 0:02:31.480 --> 0:02:34.880 is in the general stretch of Jeff Bezos's Blue Origin, 0:02:35.320 --> 0:02:38.240 the spacecraft that is New Shepherd, and indeed the missions 0:02:38.400 --> 0:02:41.519 that they've currently run sub orbital missions. 0:02:41.720 --> 0:02:44.000 We want to go to Space reporter Lauren Grush. 0:02:44.240 --> 0:02:47.560 We're also welcoming Chad Anderson's Space Capital founder and CEO. 0:02:47.919 --> 0:02:50.720 Lauren, we're on pause. Do we know why? 0:02:52.280 --> 0:02:55.399 I don't believe I know the cause of it yet, 0:02:55.440 --> 0:02:58.799 but these holds are fairly common when we do these 0:02:58.840 --> 0:03:02.359 New Shepherd launches. They used to happen with a lot 0:03:02.360 --> 0:03:05.440 of frequency, which would be a bit frustrating for us 0:03:05.480 --> 0:03:07.760 as we were waiting for the countdown to reach zero. 0:03:08.160 --> 0:03:11.600 So this is pretty standard. I know that earlier this 0:03:11.720 --> 0:03:14.040 morning they had pushed back to the launch because of 0:03:14.120 --> 0:03:16.000 high winds over the launch site. 0:03:16.000 --> 0:03:18.320 That's a pretty common reason that they will delay. 0:03:18.840 --> 0:03:22.519 So I believe the hosts might come on and give 0:03:22.600 --> 0:03:25.280 some indication as to what is causing the whold, But 0:03:25.680 --> 0:03:28.240 at this moment, I don't think I currently know. 0:03:29.440 --> 0:03:33.440 The Federal Aviation Administration, the FAA has a plan advisory 0:03:33.520 --> 0:03:37.080 which suggests look a backup opportunity is available. We understand 0:03:37.280 --> 0:03:41.080 as soon as tomorrow if indeed this one is postponed. Chad, 0:03:41.160 --> 0:03:44.280 we go to you of Space Capital, widely known investor, 0:03:44.320 --> 0:03:45.720 thought leader in the world. 0:03:45.440 --> 0:03:46.880 Of space and its ecosystem. 0:03:47.080 --> 0:03:50.120 How important is that Blue Origin can seem resilient and 0:03:50.160 --> 0:03:52.280 purposeful with a way in which it gets is thirty 0:03:52.360 --> 0:03:53.880 seventh launch off the ground. 0:03:55.560 --> 0:03:56.520 Well, this is great for them. 0:03:56.520 --> 0:03:59.320 I mean, they have a very solid track record of 0:03:59.360 --> 0:04:02.840 launching these Shepherd vehicles, launching them to the edge of space, 0:04:02.920 --> 0:04:07.480 delivering humans and experiments safely, and bringing them back down. 0:04:08.240 --> 0:04:10.240 Like you said, this is a really interesting vehicle that 0:04:10.320 --> 0:04:13.880 has helped set the stage for their larger vehicle, New Glen, 0:04:14.400 --> 0:04:16.680 which we've seen come online this year. That was one 0:04:16.680 --> 0:04:18.479 of the big milestones in twenty twenty five was to 0:04:18.480 --> 0:04:22.000 see New Glen not only launch once, but they launched 0:04:22.080 --> 0:04:25.960 twice successfully and then they landed their vehicle, becoming the 0:04:26.040 --> 0:04:29.440 you know, the second company, the second launch vehicle ever 0:04:29.520 --> 0:04:32.200 to land and have you know, and now they're looking 0:04:32.200 --> 0:04:34.720 to reuse that vehicle in a similar manner to what 0:04:34.760 --> 0:04:37.800 SpaceX has been doing. So you know, so this is 0:04:37.800 --> 0:04:40.599 a really important sort of test vehicle for them as 0:04:40.600 --> 0:04:43.320 they scale up and then they use new Glenn you know, 0:04:43.360 --> 0:04:45.679 their larger vehicle to scale up and do more things 0:04:46.040 --> 0:04:50.279 across their lunar ambitions, their space station ambitions and data 0:04:50.279 --> 0:04:53.320 center ambitions, and so this is a very ambitious company 0:04:53.360 --> 0:04:53.720 that all. 0:04:53.640 --> 0:04:55.720 Sort of started with this new Shepherd vehicle. 0:04:56.600 --> 0:05:00.000 For me, the it's it's a very interesting launch today 0:05:00.279 --> 0:05:04.200 because it kind of demonstrates how accessible space flight has become, 0:05:04.320 --> 0:05:08.000 where it used to be reserved only for the best 0:05:08.040 --> 0:05:12.000 of us, you know, the select few who were lucky 0:05:12.080 --> 0:05:14.440 enough to sort of get selected by NASA or EASA 0:05:14.480 --> 0:05:18.520 and go through the program and become government astronauts. You know, 0:05:18.600 --> 0:05:22.080 now you can you know, you mentioned eighty individuals across 0:05:22.120 --> 0:05:26.160 sixteen flights, right, you probably know someone or your two 0:05:26.200 --> 0:05:28.719 degrees removed from someone who has flown to space. Now 0:05:29.279 --> 0:05:32.880 and we're launching all different kinds of people including people 0:05:34.440 --> 0:05:37.840 with different accessibility needs, and so you know, this is 0:05:37.920 --> 0:05:40.640 a big moment for me for those reasons. 0:05:41.040 --> 0:05:44.120 Lauren, we talk about that ambition of many talking about 0:05:44.120 --> 0:05:46.200 the data center opportunity. We were just having you on 0:05:46.320 --> 0:05:49.160 yesterday to discuss how Eric Stremid has become CEO of 0:05:49.200 --> 0:05:51.479 a space company as well give us the context of 0:05:51.520 --> 0:05:54.039 how fast and furious it is to ensure that there isn't 0:05:54.080 --> 0:05:56.640 just one monopoly here when it comes to rockets into space. 0:05:58.200 --> 0:06:01.000 Well, I mean, I think that the thing we are 0:06:01.040 --> 0:06:05.520 demonstrating with companies like Blue Origin, SpaceX, Relativity, as we mentioned, 0:06:05.800 --> 0:06:08.400 all sorts of commercial companies, is that there is quite 0:06:08.520 --> 0:06:13.279 a very vibrant and diverse space economy, and clearly everyone 0:06:13.400 --> 0:06:15.400 is looking for what is going to be the next 0:06:15.400 --> 0:06:19.400 big thing that provides that big profit that everyone is 0:06:19.400 --> 0:06:22.479 looking for. I think over time we've kind of questioned 0:06:22.480 --> 0:06:26.479 whether launch alone is enough to sustain these companies, and 0:06:26.560 --> 0:06:28.800 I think we've seen that, you know, when it comes 0:06:28.839 --> 0:06:30.120 to their business portfolio. 0:06:30.240 --> 0:06:32.560 It you know, that is why when the. 0:06:32.680 --> 0:06:35.359 Likes of Blue Origin SpaceX, a lot of these launch 0:06:35.400 --> 0:06:38.760 companies do more than just launch, because I don't think 0:06:38.760 --> 0:06:41.640 it's launch alone. Doesn't seem like it's enough to sustain 0:06:41.680 --> 0:06:44.920 the business. So we see them building satellites, you know, 0:06:45.040 --> 0:06:49.440 talking about space stations, launching people, and so data centers 0:06:49.440 --> 0:06:52.080 seems to be this next big thing that I think 0:06:52.120 --> 0:06:55.479 a lot of these entrepreneurs think might actually be kind 0:06:55.520 --> 0:06:57.839 of the you know, the space gold mine as it were. 0:06:58.240 --> 0:07:00.640 We're just saying pictures of winnim shot and he was 0:07:00.680 --> 0:07:03.239 the eldest person to go to space on Blue Origin 0:07:03.360 --> 0:07:06.200 there Chad. Just lastly to you at this moment when 0:07:06.200 --> 0:07:10.680 we think pushing forward, what is new Glen rocket expected 0:07:10.720 --> 0:07:13.040 to achieve? How much more resilience do we need to 0:07:13.080 --> 0:07:15.360 see for the larger rocket in twenty twenty six. 0:07:16.600 --> 0:07:19.080 Well, they're off to a fantastic start. Where SpaceX goes 0:07:19.080 --> 0:07:23.239 out and is known for trying and testing and running 0:07:23.240 --> 0:07:27.040 their test programs very visibly in public, you know, all 0:07:27.040 --> 0:07:29.040 of the mishaps and the learnings and everything, and we 0:07:29.080 --> 0:07:32.080 get to follow along Bezos and Blue Origin has gone 0:07:32.080 --> 0:07:34.160 the exact opposite route, right. They have done a ton 0:07:34.200 --> 0:07:36.640 of testing before they launch, and so that's why we've 0:07:36.640 --> 0:07:39.080 seen the first two launches of that vehicle be successful, 0:07:39.080 --> 0:07:42.520 in the second one even landing successfully. So you know, 0:07:42.560 --> 0:07:46.480 if twenty twenty five was the year of launch frequency, 0:07:46.520 --> 0:07:49.960 and it was I mean, we were launching orbital rockets 0:07:50.200 --> 0:07:54.440 almost every single day, sometimes multiple times per day. If 0:07:54.440 --> 0:07:56.200 that was the case, then twenty twenty six is going 0:07:56.240 --> 0:07:58.600 to be the year of mass to orbit. We have 0:07:59.160 --> 0:08:04.080 massive new vehicles coming online. SpaceX's starship Blue origins New Glen, 0:08:04.120 --> 0:08:08.200 and they've announced a larger variant that is similar in 0:08:08.280 --> 0:08:09.640 size to starships. 0:08:09.680 --> 0:08:11.280 We have two. 0:08:10.640 --> 0:08:13.800 Massive vehicles that are going to launch an enormous amount 0:08:13.800 --> 0:08:17.840 of mass and enable more in different types of infrastructure 0:08:18.240 --> 0:08:23.600 like orbital data centers, like space stations and manufacturing facilities. 0:08:23.640 --> 0:08:26.480 And it opens up an entirely new sort of piece 0:08:26.520 --> 0:08:29.520 of the market that didn't make economic sense before. So 0:08:30.920 --> 0:08:33.000 it's a really interesting foundation for what I think is 0:08:33.040 --> 0:08:35.640 going to be a fantastic and massive twenty twenty six 0:08:35.679 --> 0:08:36.560 in the space economy. 0:08:36.880 --> 0:08:39.880 Important here for a new NASA chief as well. He 0:08:40.040 --> 0:08:44.600 recently just got Senate approval as recently as yesterday, that 0:08:44.679 --> 0:08:48.240 of course, being Jared Isaacman to lead the Space NASA, 0:08:48.360 --> 0:08:52.120 blumo's Lauren Grush, Chad Anderson, the Space Capital. Please say 0:08:52.200 --> 0:08:55.480 we'll be sticking around as this launch happens. Stick with us. 0:08:55.720 --> 0:09:05.600 There's more to come. This is blue bag tech. Let's 0:09:05.600 --> 0:09:07.840 go your quick check on these markets. We're in rally mode. 0:09:07.920 --> 0:09:11.679 We have relief to set the market as inflation thrashures 0:09:11.720 --> 0:09:14.920 come down some and that CPI reading showing a lot 0:09:15.000 --> 0:09:17.800 less than the market and anticipated. But we're also seeing 0:09:18.240 --> 0:09:20.200 individual stocks on a tear, maybe a little bit of 0:09:20.200 --> 0:09:23.199 AI exuberants again on the day, we're seeing in video Microsoft, 0:09:23.240 --> 0:09:25.640 Amazon Tesla at some of your biggest points contributors. 0:09:25.880 --> 0:09:28.720 As is Micron up eleven percent. 0:09:28.720 --> 0:09:30.560 It's actually not at a record high, but it is 0:09:30.600 --> 0:09:33.440 having its best days since April as it managed to 0:09:33.480 --> 0:09:36.360 really ease concerns when it comes to high bandwidth memory 0:09:36.440 --> 0:09:40.119 demand and indeed demand across the board for memory. 0:09:39.880 --> 0:09:41.480 Chips in this new AI world. 0:09:41.880 --> 0:09:44.560 Let's talk about it all, Bloomberg Execuitive reporter Carmen Ryanikey 0:09:44.600 --> 0:09:47.280 who joins us now, and we needed a bit of 0:09:47.320 --> 0:09:50.240 soothing on the AI anxieties and Micron delivers. 0:09:50.480 --> 0:09:51.160 Yeah, totally. 0:09:51.200 --> 0:09:53.160 And this was actually really great because there was some 0:09:53.280 --> 0:09:56.079 anxiety building around this trade. We've seen this for a while, 0:09:56.160 --> 0:09:59.760 but following specifically broadcarm in Oracles reports last week and 0:09:59.800 --> 0:10:01.880 then some of those news we saw yesterday that weighed 0:10:01.880 --> 0:10:04.760 on Oracle as well, so investors were very happy to 0:10:04.800 --> 0:10:07.200 see Micron do so well. As you said, shares are 0:10:07.280 --> 0:10:10.040 up our eleven percent, and it's also lifting some of 0:10:10.080 --> 0:10:12.880 the other digital storage and memory stocks. So we're seeing 0:10:12.960 --> 0:10:17.000 sand Disk, Western Digital, Seagate all on the top performers 0:10:17.000 --> 0:10:18.880 board today on the S and P five hundred, and 0:10:19.240 --> 0:10:21.680 we're seeing a little bit of enthusiasm come back into 0:10:21.720 --> 0:10:26.200 that AI trade. So in video, Microsoft, Amazon Meta finally 0:10:26.280 --> 0:10:28.680 back in the green in video, especially after the sell 0:10:28.720 --> 0:10:29.480 off yesterday. 0:10:29.920 --> 0:10:34.400 What's interesting is that Mineooni, dagods are Dell, HP, those 0:10:34.400 --> 0:10:37.640 that depend on memory as part of their own supply chain, 0:10:37.679 --> 0:10:39.120 and of course the prices go higher. 0:10:39.240 --> 0:10:40.440 That's hard for their margins. 0:10:40.480 --> 0:10:44.720 But really Micron showing that it can deliver in terms 0:10:44.720 --> 0:10:47.480 of price increases that we're seeing also. 0:10:47.320 --> 0:10:49.239 Over at Simesung and high Skhinex. 0:10:49.559 --> 0:10:52.240 Yeah, it's totally true, and you're right, the Apple is 0:10:52.360 --> 0:10:54.640 lagging today, so is HP, so is Dell. 0:10:54.960 --> 0:10:56.480 I think what we're really starting. 0:10:56.120 --> 0:10:59.640 To see is that the AI trade trade is still going, 0:10:59.679 --> 0:11:02.280 but it's becoming I think more and more companies specific 0:11:02.400 --> 0:11:05.400 right investors are really rewarding the shares of companies that 0:11:05.480 --> 0:11:07.760 do deliver and are showing that they can, you know, 0:11:08.080 --> 0:11:10.880 do well, that they have future growth, and are much 0:11:10.920 --> 0:11:13.439 more cautious on the stocks of companies that don't or 0:11:13.480 --> 0:11:16.400 that stumble at all. And you know this can change 0:11:16.600 --> 0:11:18.880 cord to quarter. I mean we just saw that with Oracle. 0:11:19.160 --> 0:11:22.040 So it's really a story that just continues to unfold. 0:11:22.320 --> 0:11:25.160 Carmen Ranicky always unfolding it for us. We appreciate it. 0:11:25.400 --> 0:11:27.280 Let's get more of the broader tech context. 0:11:27.360 --> 0:11:29.840 Janet mu is here with us RBC ruin Dolphin Header 0:11:29.840 --> 0:11:34.440 market analysis, and look, we saw really strong revenue growth 0:11:34.559 --> 0:11:38.160 from Micron. The fundamentals clearly outperforming. 0:11:38.240 --> 0:11:40.880 Is that what we need? We need earnings proof points right. 0:11:40.760 --> 0:11:47.920 Now, Hi, Caroline, Yes, absolutely. I think investors are being 0:11:47.920 --> 0:11:54.320 more picky in general. I think SDAI trend continues to accelerate. 0:11:54.840 --> 0:11:58.120 I think we need solid evidence that it is actually 0:11:58.160 --> 0:12:05.120 delivering commercial benefits, broadening its application, and of course delivering earnings. 0:12:05.400 --> 0:12:07.040 And I think that is really. 0:12:06.760 --> 0:12:10.479 The primary thing that investors are going to focus increasingly 0:12:10.520 --> 0:12:14.400 in twenty twenty six, basically going to be much more 0:12:14.440 --> 0:12:19.640 selective and also be cautious on anything that is leverage related. 0:12:20.440 --> 0:12:22.320 So do you think there's more pain to come for 0:12:22.440 --> 0:12:27.240 those like an Oracle that have to spend significant amounts 0:12:27.280 --> 0:12:29.040 to be able to build up the infrastructure needs. 0:12:30.440 --> 0:12:34.680 I think that will be certainly increasing scrutinally, because the 0:12:34.720 --> 0:12:39.160 thing is, if you look at the commercial commitment of Oracle, 0:12:39.440 --> 0:12:43.440 it is stretches along decades, and we know that although 0:12:43.480 --> 0:12:46.120 you kind of see that the demand is very strong, 0:12:46.880 --> 0:12:53.560 you just can't actually confidently project the future right. 0:12:53.640 --> 0:12:56.400 And also, of course it's profitability, and I. 0:12:56.360 --> 0:12:59.880 Think the key question is it is really the amount 0:12:59.920 --> 0:13:04.080 of debt that is fueling this AI infrastructure, particularly for Oracle. 0:13:04.120 --> 0:13:08.240 I think for hyperscalers or companies that have abundant cash 0:13:08.240 --> 0:13:10.240 flow a strong balance sheet, that would be less of 0:13:10.320 --> 0:13:12.559 a problem. But I think a lot of those pain 0:13:12.760 --> 0:13:16.520 has been released after the share price decline from Oracle, 0:13:16.600 --> 0:13:19.720 So hopefully we're setting for a better stage from here. 0:13:20.160 --> 0:13:23.720 What's been interesting is the desire with which to sell 0:13:23.800 --> 0:13:26.400 companies that have significant exposure to say an open AI 0:13:26.559 --> 0:13:30.160 and there's been this generalization really out there that you've 0:13:30.160 --> 0:13:32.600 been buying the Google winners Alphabet winners instead. 0:13:32.800 --> 0:13:33.720 Is that trade still on? 0:13:33.880 --> 0:13:37.040 Are we seeing actually that you can have exposure to 0:13:37.080 --> 0:13:40.760 open Ai. Look Amazon with another seemingly circular deal where 0:13:40.800 --> 0:13:43.320 they give equity to open Ai so they can afford 0:13:43.360 --> 0:13:44.800 its cloud and compute in the future. 0:13:47.320 --> 0:13:49.920 Well, I think the thing is the marquess for Ai 0:13:50.080 --> 0:13:54.040 is huge, right, is expected to keep growing, keep accelerating, 0:13:54.440 --> 0:13:58.360 So there that isn't necessarily just going to be one 0:13:58.400 --> 0:14:01.720 winner out there, like one soft where one model that 0:14:01.840 --> 0:14:05.120 is going to conquer everything. So there's this competition between 0:14:05.400 --> 0:14:09.720 GERMANI and open Ai, which worries investors because a GERMANI 0:14:09.800 --> 0:14:10.439 seems to be. 0:14:10.360 --> 0:14:14.400 Getting a lot of accolaid recently. But you know, I 0:14:14.440 --> 0:14:19.320 think the market is just very, very broad, So. 0:14:19.280 --> 0:14:24.680 In general, I think it is normal for investors to 0:14:24.720 --> 0:14:27.000 get a little bit worried in the near term, but 0:14:27.120 --> 0:14:31.000 I believe that ultimately there will be multiple winners, and 0:14:31.080 --> 0:14:35.520 they are likely to be those large in scale and 0:14:36.080 --> 0:14:39.600 has which is already being building on very strong. 0:14:39.640 --> 0:14:41.680 It's the same foundations, Jena. 0:14:41.680 --> 0:14:44.160 Your view on breadth, because that hasn't been much in 0:14:44.200 --> 0:14:46.520 twenty twenty five, and you can rack up almost like 0:14:46.520 --> 0:14:48.640 forty percent of all the gains of certain indices are 0:14:48.640 --> 0:14:50.960 down to one particular name or sprinkling of them. 0:14:51.480 --> 0:14:53.200 For the broadening to happen. 0:14:53.600 --> 0:14:55.640 Do we have to see valuations full for some of 0:14:55.640 --> 0:14:58.280 the previous winners or can they remain elevated and others 0:14:58.320 --> 0:15:00.200 continue to run up alongside. 0:15:02.320 --> 0:15:06.840 I think I think is the latter case. 0:15:07.400 --> 0:15:10.080 I do think that our investors are willing to pay 0:15:10.240 --> 0:15:11.800 a higher premium. 0:15:11.400 --> 0:15:13.320 For these strong AI leaders. 0:15:13.720 --> 0:15:16.520 It can continue right as long as they continue to 0:15:16.600 --> 0:15:21.080 deliver strong growth. And I think the broadening out story 0:15:21.160 --> 0:15:23.560 we've seen that recently, and I think a lot is 0:15:23.800 --> 0:15:27.800 because of the FATS upward revision to growth broadcasts. So 0:15:28.040 --> 0:15:31.560 we really need to see that economy continue to stay 0:15:31.600 --> 0:15:35.640 strong or at least resilient and also having some more 0:15:35.760 --> 0:15:39.680 rage cuts from here. So I think another case is 0:15:39.760 --> 0:15:42.680 that we may see broadening out in terms of the 0:15:42.680 --> 0:15:46.360 AI productivity story. If that happens, we see more evidence 0:15:46.400 --> 0:15:49.720 of that, then it could it could keep the rally in. 0:15:49.800 --> 0:15:53.200 The Swami kept going, Yeah. 0:15:53.000 --> 0:15:55.960 What about us being the only game in town or 0:15:56.000 --> 0:15:59.360 broadening out more into Asia. We just referenced Samsung sk 0:15:59.480 --> 0:16:03.120 henex is big winners and have high bandwidth memory. 0:16:03.920 --> 0:16:07.440 Yeah, we we have a slight overweight position in Asia 0:16:07.800 --> 0:16:10.440 equities and probably that's based on the AI story. It 0:16:10.520 --> 0:16:14.240 is also, as you're right, is a more diversification away 0:16:14.960 --> 0:16:18.040 or in addition to that USAI story. I think Asia 0:16:18.120 --> 0:16:21.600 got some really great and important names in that AI ecosystem, 0:16:21.640 --> 0:16:24.040 which is worth looking. And I think the other thing 0:16:24.040 --> 0:16:28.000 about diversification is that we are constructive on. 0:16:28.000 --> 0:16:32.000 The AI story. But you know, as I fastures, it 0:16:32.040 --> 0:16:33.120 is good to think. 0:16:32.920 --> 0:16:36.560 About diversification in a portfolio, and I think UK actually 0:16:36.560 --> 0:16:40.840 offers good diversification because the market has very little intact, 0:16:41.000 --> 0:16:44.720 it's more defensive in nature, and evaluations remain attractive. So 0:16:44.720 --> 0:16:48.120 if you think from a total portfolio perspective, having that 0:16:48.280 --> 0:16:52.760 UK exposure actually helped to balance that out that AI exposure. 0:16:53.200 --> 0:16:55.720 Jennet, how many calls are you're getting from clients who 0:16:55.720 --> 0:16:58.200 want to exposure more to the private markets and private 0:16:58.240 --> 0:17:01.120 assets the sixteen trillion out there rather than just the 0:17:01.120 --> 0:17:02.200 public market exposure. 0:17:03.880 --> 0:17:04.879 Yeah, that's interesting. 0:17:05.359 --> 0:17:10.919 So I think currently there are interest of course, but 0:17:11.000 --> 0:17:14.800 I think for US mostly is still in the public 0:17:14.920 --> 0:17:19.639 market space, but we suddenly are looking more into that space. 0:17:20.400 --> 0:17:23.719 Janeto of RBC ruined Dolphin, Thank you very much. Indeed, 0:17:29.200 --> 0:17:33.200 private tech firms, they are commanding record valuations, particularly as 0:17:33.200 --> 0:17:35.320 some of the biggest names in AI stay private for 0:17:35.400 --> 0:17:38.920 longer now. According to Patrick McGoldrick, managing partner of JP 0:17:39.000 --> 0:17:41.280 Morgan Private Capital, this is leading to perhaps a bit 0:17:41.280 --> 0:17:44.200 of a blurring of boundaries between the public and private markets. 0:17:44.359 --> 0:17:46.720 Please you say, Patrick joins us, now, so talk to 0:17:46.800 --> 0:17:51.040 us about that blurring. How much our investors, institutional anyone really. 0:17:50.800 --> 0:17:53.200 Wanting to get more exposure to private markets right now? 0:17:53.400 --> 0:17:55.679 I think it's a core theme that we're seeing across 0:17:55.720 --> 0:17:59.080 asset classes, both in the equity market and the credit markets, 0:17:59.080 --> 0:18:01.240 of course, but as it relates to the equity lens, 0:18:01.680 --> 0:18:04.520 companies are staying private a lot longer. It's well understood 0:18:04.520 --> 0:18:07.199 from nineteen ninety seven being five years on average and 0:18:07.240 --> 0:18:10.480 twenty million dollars of sales to twenty and twenty five 0:18:10.520 --> 0:18:12.520 where it's two hundred and twenty million of sales and 0:18:12.680 --> 0:18:15.040 fourteen years of being a private company. But the demand 0:18:15.119 --> 0:18:17.720 is there, the depth of the private markets is there. 0:18:18.040 --> 0:18:20.359 I think the growth we're seeing is shield by great 0:18:20.359 --> 0:18:24.200 innovation in the private markets, and so it's a theme 0:18:24.240 --> 0:18:25.960 that we're excited about. It's something that we think we're 0:18:26.000 --> 0:18:28.440 well positioned for as a firm and excited to see 0:18:28.440 --> 0:18:29.080 what the yearhead brings. 0:18:29.280 --> 0:18:32.560 I mean, your positioning is showing up in these valuations 0:18:32.600 --> 0:18:35.040 one hundred and thirty four billion dollar valuations in Data 0:18:35.040 --> 0:18:38.560 Bricks in an almost unheard or series L. I mean, 0:18:38.680 --> 0:18:41.240 is that the depth in the public markets to support 0:18:41.280 --> 0:18:43.680 the ambitions of these CEOs and the need for capital 0:18:43.720 --> 0:18:44.720 to continue to expand. 0:18:44.920 --> 0:18:46.760 I think it's a really important question. 0:18:46.800 --> 0:18:49.840 I'm glad you asked, because inherent in every valuation, of course, 0:18:50.000 --> 0:18:53.280 is it supported by the fundamentals. Olie and the Data 0:18:53.320 --> 0:18:56.200 Bricks management team have done an exceptional job of positioning 0:18:56.200 --> 0:18:59.480 themselves effectively for the AI wave, making sure that data 0:18:59.520 --> 0:19:01.760 and that in structure layer is well supported and that 0:19:01.800 --> 0:19:02.640 they're the market leader. 0:19:02.880 --> 0:19:04.360 And it shows up in the metrics. 0:19:04.400 --> 0:19:07.840 They're growing two times the rate of public high growth 0:19:07.960 --> 0:19:11.520 SaaS comps. They're positioned effectively with net expansion rates one 0:19:11.560 --> 0:19:14.399 hundred and forty percent. There are no public companies in 0:19:14.440 --> 0:19:17.200 the software space growing at that level, So I think 0:19:17.400 --> 0:19:20.240 that drives the valuation, it drives the demand for the company. 0:19:20.520 --> 0:19:23.320 They've also been aggressive in their pursuit of assets on 0:19:23.359 --> 0:19:26.880 the acquisition side that have effectively positioned them. So to us, 0:19:26.920 --> 0:19:29.159 it was a privilege to co lead the financing. We 0:19:29.200 --> 0:19:32.000 think the public markets will view this as one of 0:19:32.040 --> 0:19:34.760 the premiere Darling assets in the private markets, and so 0:19:35.160 --> 0:19:36.359 when they go public, it. 0:19:36.359 --> 0:19:38.240 Will be an exciting moment for the company and certainly 0:19:38.280 --> 0:19:38.560 for us. 0:19:38.840 --> 0:19:40.840 There's a few other Darling assets out there. 0:19:41.240 --> 0:19:43.639 One of them, as reported by the Information, is currently 0:19:43.640 --> 0:19:45.959 fundraising at a seven hundred and fifty billion dollar valuation. 0:19:46.000 --> 0:19:49.280 That's open AI. That's a new portfolio too, are they fundraising? 0:19:50.160 --> 0:19:52.719 So I will let the companies speak for themselves on that. 0:19:52.760 --> 0:19:55.679 I would say we're very proud and excited investors to 0:19:55.680 --> 0:19:58.480 be backing open AI. I think Sam and his team 0:19:58.560 --> 0:20:01.240 time and time again, despite a little bit of the 0:20:01.320 --> 0:20:04.280 negative news or the challenges associated with it, have demonstrated 0:20:04.320 --> 0:20:06.680 and ability to innovate in the product side, to form 0:20:06.960 --> 0:20:08.080 formidable partnerships. 0:20:08.080 --> 0:20:09.960 I mean Disney and what they're doing. 0:20:09.760 --> 0:20:12.840 There as well as the partnerships with universities across the 0:20:12.840 --> 0:20:14.199 countries are emblematic of that. 0:20:14.600 --> 0:20:16.640 It's not the first time that there's been a little 0:20:16.640 --> 0:20:17.640 bit of that. 0:20:17.560 --> 0:20:21.280 Focus and intensity of product market fit for them, and 0:20:21.320 --> 0:20:24.040 so to us, we think it's a great asset. We're 0:20:24.040 --> 0:20:26.560 excited to be investors in it, and they continue to 0:20:26.600 --> 0:20:29.199 be synonymous with growth in large language model space, and 0:20:29.240 --> 0:20:32.240 so I'll leave it at that, but certainly an exciting 0:20:32.280 --> 0:20:33.040 journey for the company. 0:20:33.080 --> 0:20:38.120 I mean, the same blurring and tussle and mental models 0:20:38.119 --> 0:20:41.120 are going on in public hand private. Too many big 0:20:41.200 --> 0:20:46.080 names dominating certain indices, too much. VC capital really is 0:20:46.119 --> 0:20:48.840