Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: By the way, we are expecting very shortly the launch
Speaker 2: of Blue Origin's latest rocket. You're looking at a live
Speaker 2: shot in West Texas of it. It's said to launch
Speaker 2: its latest crew of six on its flagship Space Tourism rocket.
Speaker 2: To date, Blue Origin has flown eighty individuals above the
Speaker 2: Carmen Line, the internationally recognized boundary of space. Let's bring
Speaker 2: in Bloomberg Texts Caroline Hyde. Caroline, what exactly do we
Speaker 2: know about this specific rocket launch which we are waiting
Speaker 2: for in about three minutes time.
Speaker 3: It's on hold T minus ten minutes.
Speaker 1: We're currently pausing waiting to see if this will indeed
Speaker 1: go ahead.
Speaker 3: Is planned?
Speaker 1: This is New Shepherd's rocket, the thirty seventh, as we've
Speaker 1: been thinking, NS thirty seven is the sixteenth human flight,
Speaker 1: as you say, the six individuals on board this time.
Speaker 1: Actually it's the first time that we ever see someone
Speaker 1: of the wheelchair go in across the common line as well,
Speaker 1: so a significant step there. And is it's thirty seventh
Speaker 1: overall that we've seen with New Shepherd. And and remember
Speaker 1: New Shepherd named after Alan Shepherd, who was the first
Speaker 1: ever American astronaut in space. It's about sixty foot tall
Speaker 1: that you're currently looking at gazing on your screens. It's
Speaker 1: topped with what is sort of known as kind of
Speaker 1: a gun drop shaped crew capsule, and that of course
Speaker 1: is what will then come back down to Earth supported
Speaker 1: by parachutes a little bit later. They're only going to
Speaker 1: be about a ride of eleven minutes when they take
Speaker 1: off from West Texas, Danny, and it.
Speaker 3: Operates in completely autonomously.
Speaker 1: There are no pilots on board, but we are waiting
Speaker 1: to see whether indeed does go ahead as planned. So
Speaker 1: Matt Miller, Danny Berger, thank you very much indeed for
Speaker 1: what was another amazing stretch of time of the opening
Speaker 1: of this market with open interest. But we want to
Speaker 1: get to what's happening here live. As you see, that's
Speaker 1: the gun drop shaped crew capsule which currently has on
Speaker 1: board a German aerospace engineer, the first person who uses
Speaker 1: a wheelchair that can reach but also plenty of others
Speaker 1: are going alongside her. So that's Mitchie Bunthhouse. But we're
Speaker 1: seeing Joey Hyde, no relation. It's a physicist and a
Speaker 1: hedge fund investor from Florida. We're seeing a German American
Speaker 1: aerospace engineer go into flight.
Speaker 3: A business executive and entrepreneur.
Speaker 1: That's Neil Milch, as well other entrepreneurs, other adventurers going
Speaker 1: on this particular fight from the company's private ranch facility
Speaker 1: known as Launch Site one in Texas. It's located north
Speaker 1: of the town Van Horn, near US Mexico border. So
Speaker 1: let's just get a little sense of how important this
Speaker 1: is in the general stretch of Jeff Bezos's Blue Origin,
Speaker 1: the spacecraft that is New Shepherd, and indeed the missions
Speaker 1: that they've currently run sub orbital missions.
Speaker 3: We want to go to Space reporter Lauren Grush.
Speaker 1: We're also welcoming Chad Anderson's Space Capital founder and CEO.
Speaker 3: Lauren, we're on pause. Do we know why?
Speaker 4: I don't believe I know the cause of it yet,
Speaker 4: but these holds are fairly common when we do these
Speaker 4: New Shepherd launches. They used to happen with a lot
Speaker 4: of frequency, which would be a bit frustrating for us
Speaker 4: as we were waiting for the countdown to reach zero.
Speaker 4: So this is pretty standard. I know that earlier this
Speaker 4: morning they had pushed back to the launch because of
Speaker 4: high winds over the launch site.
Speaker 5: That's a pretty common reason that they will delay.
Speaker 4: So I believe the hosts might come on and give
Speaker 4: some indication as to what is causing the whold, But
Speaker 4: at this moment, I don't think I currently know.
Speaker 1: The Federal Aviation Administration, the FAA has a plan advisory
Speaker 1: which suggests look a backup opportunity is available. We understand
Speaker 1: as soon as tomorrow if indeed this one is postponed. Chad,
Speaker 1: we go to you of Space Capital, widely known investor,
Speaker 1: thought leader in the world.
Speaker 3: Of space and its ecosystem.
Speaker 1: How important is that Blue Origin can seem resilient and
Speaker 1: purposeful with a way in which it gets is thirty
Speaker 1: seventh launch off the ground.
Speaker 6: Well, this is great for them.
Speaker 7: I mean, they have a very solid track record of
Speaker 7: launching these Shepherd vehicles, launching them to the edge of space,
Speaker 7: delivering humans and experiments safely, and bringing them back down.
Speaker 7: Like you said, this is a really interesting vehicle that
Speaker 7: has helped set the stage for their larger vehicle, New Glen,
Speaker 7: which we've seen come online this year. That was one
Speaker 7: of the big milestones in twenty twenty five was to
Speaker 7: see New Glen not only launch once, but they launched
Speaker 7: twice successfully and then they landed their vehicle, becoming the
Speaker 7: you know, the second company, the second launch vehicle ever
Speaker 7: to land and have you know, and now they're looking
Speaker 7: to reuse that vehicle in a similar manner to what
Speaker 7: SpaceX has been doing. So you know, so this is
Speaker 7: a really important sort of test vehicle for them as
Speaker 7: they scale up and then they use new Glenn you know,
Speaker 7: their larger vehicle to scale up and do more things
Speaker 7: across their lunar ambitions, their space station ambitions and data
Speaker 7: center ambitions, and so this is a very ambitious company
Speaker 7: that all.
Speaker 6: Sort of started with this new Shepherd vehicle.
Speaker 7: For me, the it's it's a very interesting launch today
Speaker 7: because it kind of demonstrates how accessible space flight has become,
Speaker 7: where it used to be reserved only for the best
Speaker 7: of us, you know, the select few who were lucky
Speaker 7: enough to sort of get selected by NASA or EASA
Speaker 7: and go through the program and become government astronauts. You know,
Speaker 7: now you can you know, you mentioned eighty individuals across
Speaker 7: sixteen flights, right, you probably know someone or your two
Speaker 7: degrees removed from someone who has flown to space. Now
Speaker 7: and we're launching all different kinds of people including people
Speaker 7: with different accessibility needs, and so you know, this is
Speaker 7: a big moment for me for those reasons.
Speaker 1: Lauren, we talk about that ambition of many talking about
Speaker 1: the data center opportunity. We were just having you on
Speaker 1: yesterday to discuss how Eric Stremid has become CEO of
Speaker 1: a space company as well give us the context of
Speaker 1: how fast and furious it is to ensure that there isn't
Speaker 1: just one monopoly here when it comes to rockets into space.
Speaker 4: Well, I mean, I think that the thing we are
Speaker 4: demonstrating with companies like Blue Origin, SpaceX, Relativity, as we mentioned,
Speaker 4: all sorts of commercial companies, is that there is quite
Speaker 4: a very vibrant and diverse space economy, and clearly everyone
Speaker 4: is looking for what is going to be the next
Speaker 4: big thing that provides that big profit that everyone is
Speaker 4: looking for. I think over time we've kind of questioned
Speaker 4: whether launch alone is enough to sustain these companies, and
Speaker 4: I think we've seen that, you know, when it comes
Speaker 4: to their business portfolio.
Speaker 8: It you know, that is why when the.
Speaker 4: Likes of Blue Origin SpaceX, a lot of these launch
Speaker 4: companies do more than just launch, because I don't think
Speaker 4: it's launch alone. Doesn't seem like it's enough to sustain
Speaker 4: the business. So we see them building satellites, you know,
Speaker 4: talking about space stations, launching people, and so data centers
Speaker 4: seems to be this next big thing that I think
Speaker 4: a lot of these entrepreneurs think might actually be kind
Speaker 4: of the you know, the space gold mine as it were.
Speaker 1: We're just saying pictures of winnim shot and he was
Speaker 1: the eldest person to go to space on Blue Origin
Speaker 1: there Chad. Just lastly to you at this moment when
Speaker 1: we think pushing forward, what is new Glen rocket expected
Speaker 1: to achieve? How much more resilience do we need to
Speaker 1: see for the larger rocket in twenty twenty six.
Speaker 7: Well, they're off to a fantastic start. Where SpaceX goes
Speaker 7: out and is known for trying and testing and running
Speaker 7: their test programs very visibly in public, you know, all
Speaker 7: of the mishaps and the learnings and everything, and we
Speaker 7: get to follow along Bezos and Blue Origin has gone
Speaker 7: the exact opposite route, right. They have done a ton
Speaker 7: of testing before they launch, and so that's why we've
Speaker 7: seen the first two launches of that vehicle be successful,
Speaker 7: in the second one even landing successfully. So you know,
Speaker 7: if twenty twenty five was the year of launch frequency,
Speaker 7: and it was I mean, we were launching orbital rockets
Speaker 7: almost every single day, sometimes multiple times per day. If
Speaker 7: that was the case, then twenty twenty six is going
Speaker 7: to be the year of mass to orbit. We have
Speaker 7: massive new vehicles coming online. SpaceX's starship Blue origins New Glen,
Speaker 7: and they've announced a larger variant that is similar in
Speaker 7: size to starships.
Speaker 6: We have two.
Speaker 7: Massive vehicles that are going to launch an enormous amount
Speaker 7: of mass and enable more in different types of infrastructure
Speaker 7: like orbital data centers, like space stations and manufacturing facilities.
Speaker 7: And it opens up an entirely new sort of piece
Speaker 7: of the market that didn't make economic sense before. So
Speaker 7: it's a really interesting foundation for what I think is
Speaker 7: going to be a fantastic and massive twenty twenty six
Speaker 7: in the space economy.
Speaker 1: Important here for a new NASA chief as well. He
Speaker 1: recently just got Senate approval as recently as yesterday, that
Speaker 1: of course, being Jared Isaacman to lead the Space NASA,
Speaker 1: blumo's Lauren Grush, Chad Anderson, the Space Capital. Please say
Speaker 1: we'll be sticking around as this launch happens. Stick with us.
Speaker 1: There's more to come. This is blue bag tech. Let's
Speaker 1: go your quick check on these markets. We're in rally mode.
Speaker 1: We have relief to set the market as inflation thrashures
Speaker 1: come down some and that CPI reading showing a lot
Speaker 1: less than the market and anticipated. But we're also seeing
Speaker 1: individual stocks on a tear, maybe a little bit of
Speaker 1: AI exuberants again on the day, we're seeing in video Microsoft,
Speaker 1: Amazon Tesla at some of your biggest points contributors.
Speaker 3: As is Micron up eleven percent.
Speaker 1: It's actually not at a record high, but it is
Speaker 1: having its best days since April as it managed to
Speaker 1: really ease concerns when it comes to high bandwidth memory
Speaker 1: demand and indeed demand across the board for memory.
Speaker 3: Chips in this new AI world.
Speaker 1: Let's talk about it all, Bloomberg Execuitive reporter Carmen Ryanikey
Speaker 1: who joins us now, and we needed a bit of
Speaker 1: soothing on the AI anxieties and Micron delivers.
Speaker 3: Yeah, totally.
Speaker 9: And this was actually really great because there was some
Speaker 9: anxiety building around this trade. We've seen this for a while,
Speaker 9: but following specifically broadcarm in Oracles reports last week and
Speaker 9: then some of those news we saw yesterday that weighed
Speaker 9: on Oracle as well, so investors were very happy to
Speaker 9: see Micron do so well. As you said, shares are
Speaker 9: up our eleven percent, and it's also lifting some of
Speaker 9: the other digital storage and memory stocks. So we're seeing
Speaker 9: sand Disk, Western Digital, Seagate all on the top performers
Speaker 9: board today on the S and P five hundred, and
Speaker 9: we're seeing a little bit of enthusiasm come back into
Speaker 9: that AI trade. So in video, Microsoft, Amazon Meta finally
Speaker 9: back in the green in video, especially after the sell
Speaker 9: off yesterday.
Speaker 1: What's interesting is that Mineooni, dagods are Dell, HP, those
Speaker 1: that depend on memory as part of their own supply chain,
Speaker 1: and of course the prices go higher.
Speaker 3: That's hard for their margins.
Speaker 1: But really Micron showing that it can deliver in terms
Speaker 1: of price increases that we're seeing also.
Speaker 3: Over at Simesung and high Skhinex.
Speaker 9: Yeah, it's totally true, and you're right, the Apple is
Speaker 9: lagging today, so is HP, so is Dell.
Speaker 3: I think what we're really starting.
Speaker 9: To see is that the AI trade trade is still going,
Speaker 9: but it's becoming I think more and more companies specific
Speaker 9: right investors are really rewarding the shares of companies that
Speaker 9: do deliver and are showing that they can, you know,
Speaker 9: do well, that they have future growth, and are much
Speaker 9: more cautious on the stocks of companies that don't or
Speaker 9: that stumble at all. And you know this can change
Speaker 9: cord to quarter. I mean we just saw that with Oracle.
Speaker 9: So it's really a story that just continues to unfold.
Speaker 1: Carmen Ranicky always unfolding it for us. We appreciate it.
Speaker 3: Let's get more of the broader tech context.
Speaker 1: Janet mu is here with us RBC ruin Dolphin Header
Speaker 1: market analysis, and look, we saw really strong revenue growth
Speaker 1: from Micron. The fundamentals clearly outperforming.
Speaker 3: Is that what we need? We need earnings proof points right.
Speaker 10: Now, Hi, Caroline, Yes, absolutely. I think investors are being
Speaker 10: more picky in general. I think SDAI trend continues to accelerate.
Speaker 10: I think we need solid evidence that it is actually
Speaker 10: delivering commercial benefits, broadening its application, and of course delivering earnings.
Speaker 11: And I think that is really.
Speaker 10: The primary thing that investors are going to focus increasingly
Speaker 10: in twenty twenty six, basically going to be much more
Speaker 10: selective and also be cautious on anything that is leverage related.
Speaker 1: So do you think there's more pain to come for
Speaker 1: those like an Oracle that have to spend significant amounts
Speaker 1: to be able to build up the infrastructure needs.
Speaker 10: I think that will be certainly increasing scrutinally, because the
Speaker 10: thing is, if you look at the commercial commitment of Oracle,
Speaker 10: it is stretches along decades, and we know that although
Speaker 10: you kind of see that the demand is very strong,
Speaker 10: you just can't actually confidently project the future right.
Speaker 11: And also, of course it's profitability, and I.
Speaker 10: Think the key question is it is really the amount
Speaker 10: of debt that is fueling this AI infrastructure, particularly for Oracle.
Speaker 10: I think for hyperscalers or companies that have abundant cash
Speaker 10: flow a strong balance sheet, that would be less of
Speaker 10: a problem. But I think a lot of those pain
Speaker 10: has been released after the share price decline from Oracle,
Speaker 10: So hopefully we're setting for a better stage from here.
Speaker 1: What's been interesting is the desire with which to sell
Speaker 1: companies that have significant exposure to say an open AI
Speaker 1: and there's been this generalization really out there that you've
Speaker 1: been buying the Google winners Alphabet winners instead.
Speaker 3: Is that trade still on?
Speaker 1: Are we seeing actually that you can have exposure to
Speaker 1: open Ai. Look Amazon with another seemingly circular deal where
Speaker 1: they give equity to open Ai so they can afford
Speaker 1: its cloud and compute in the future.
Speaker 10: Well, I think the thing is the marquess for Ai
Speaker 10: is huge, right, is expected to keep growing, keep accelerating,
Speaker 10: So there that isn't necessarily just going to be one
Speaker 10: winner out there, like one soft where one model that
Speaker 10: is going to conquer everything. So there's this competition between
Speaker 10: GERMANI and open Ai, which worries investors because a GERMANI
Speaker 10: seems to be.
Speaker 11: Getting a lot of accolaid recently. But you know, I
Speaker 11: think the market is just very, very broad, So.
Speaker 10: In general, I think it is normal for investors to
Speaker 10: get a little bit worried in the near term, but
Speaker 10: I believe that ultimately there will be multiple winners, and
Speaker 10: they are likely to be those large in scale and
Speaker 10: has which is already being building on very strong.
Speaker 11: It's the same foundations, Jena.
Speaker 1: Your view on breadth, because that hasn't been much in
Speaker 1: twenty twenty five, and you can rack up almost like
Speaker 1: forty percent of all the gains of certain indices are
Speaker 1: down to one particular name or sprinkling of them.
Speaker 3: For the broadening to happen.
Speaker 1: Do we have to see valuations full for some of
Speaker 1: the previous winners or can they remain elevated and others
Speaker 1: continue to run up alongside.
Speaker 11: I think I think is the latter case.
Speaker 10: I do think that our investors are willing to pay
Speaker 10: a higher premium.
Speaker 11: For these strong AI leaders.
Speaker 10: It can continue right as long as they continue to
Speaker 10: deliver strong growth. And I think the broadening out story
Speaker 10: we've seen that recently, and I think a lot is
Speaker 10: because of the FATS upward revision to growth broadcasts. So
Speaker 10: we really need to see that economy continue to stay
Speaker 10: strong or at least resilient and also having some more
Speaker 10: rage cuts from here. So I think another case is
Speaker 10: that we may see broadening out in terms of the
Speaker 10: AI productivity story. If that happens, we see more evidence
Speaker 10: of that, then it could it could keep the rally in.
Speaker 11: The Swami kept going, Yeah.
Speaker 1: What about us being the only game in town or
Speaker 1: broadening out more into Asia. We just referenced Samsung sk
Speaker 1: henex is big winners and have high bandwidth memory.
Speaker 10: Yeah, we we have a slight overweight position in Asia
Speaker 10: equities and probably that's based on the AI story. It
Speaker 10: is also, as you're right, is a more diversification away
Speaker 10: or in addition to that USAI story. I think Asia
Speaker 10: got some really great and important names in that AI ecosystem,
Speaker 10: which is worth looking. And I think the other thing
Speaker 10: about diversification is that we are constructive on.
Speaker 11: The AI story. But you know, as I fastures, it
Speaker 11: is good to think.
Speaker 10: About diversification in a portfolio, and I think UK actually
Speaker 10: offers good diversification because the market has very little intact,
Speaker 10: it's more defensive in nature, and evaluations remain attractive. So
Speaker 10: if you think from a total portfolio perspective, having that
Speaker 10: UK exposure actually helped to balance that out that AI exposure.
Speaker 1: Jennet, how many calls are you're getting from clients who
Speaker 1: want to exposure more to the private markets and private
Speaker 1: assets the sixteen trillion out there rather than just the
Speaker 1: public market exposure.
Speaker 11: Yeah, that's interesting.
Speaker 10: So I think currently there are interest of course, but
Speaker 10: I think for US mostly is still in the public
Speaker 10: market space, but we suddenly are looking more into that space.
Speaker 1: Janeto of RBC ruined Dolphin, Thank you very much. Indeed,
Speaker 1: private tech firms, they are commanding record valuations, particularly as
Speaker 1: some of the biggest names in AI stay private for
Speaker 1: longer now. According to Patrick McGoldrick, managing partner of JP
Speaker 1: Morgan Private Capital, this is leading to perhaps a bit
Speaker 1: of a blurring of boundaries between the public and private markets.
Speaker 1: Please you say, Patrick joins us, now, so talk to
Speaker 1: us about that blurring. How much our investors, institutional anyone really.
Speaker 3: Wanting to get more exposure to private markets right now?
Speaker 12: I think it's a core theme that we're seeing across
Speaker 12: asset classes, both in the equity market and the credit markets,
Speaker 12: of course, but as it relates to the equity lens,
Speaker 12: companies are staying private a lot longer. It's well understood
Speaker 12: from nineteen ninety seven being five years on average and
Speaker 12: twenty million dollars of sales to twenty and twenty five
Speaker 12: where it's two hundred and twenty million of sales and
Speaker 12: fourteen years of being a private company. But the demand
Speaker 12: is there, the depth of the private markets is there.
Speaker 12: I think the growth we're seeing is shield by great
Speaker 12: innovation in the private markets, and so it's a theme
Speaker 12: that we're excited about. It's something that we think we're
Speaker 12: well positioned for as a firm and excited to see
Speaker 12: what the yearhead brings.
Speaker 1: I mean, your positioning is showing up in these valuations
Speaker 1: one hundred and thirty four billion dollar valuations in Data
Speaker 1: Bricks in an almost unheard or series L. I mean,
Speaker 1: is that the depth in the public markets to support
Speaker 1: the ambitions of these CEOs and the need for capital
Speaker 1: to continue to expand.
Speaker 13: I think it's a really important question.
Speaker 12: I'm glad you asked, because inherent in every valuation, of course,
Speaker 12: is it supported by the fundamentals. Olie and the Data
Speaker 12: Bricks management team have done an exceptional job of positioning
Speaker 12: themselves effectively for the AI wave, making sure that data
Speaker 12: and that in structure layer is well supported and that
Speaker 12: they're the market leader.
Speaker 13: And it shows up in the metrics.
Speaker 12: They're growing two times the rate of public high growth
Speaker 12: SaaS comps. They're positioned effectively with net expansion rates one
Speaker 12: hundred and forty percent. There are no public companies in
Speaker 12: the software space growing at that level, So I think
Speaker 12: that drives the valuation, it drives the demand for the company.
Speaker 12: They've also been aggressive in their pursuit of assets on
Speaker 12: the acquisition side that have effectively positioned them. So to us,
Speaker 12: it was a privilege to co lead the financing. We
Speaker 12: think the public markets will view this as one of
Speaker 12: the premiere Darling assets in the private markets, and so
Speaker 12: when they go public, it.
Speaker 13: Will be an exciting moment for the company and certainly
Speaker 13: for us.
Speaker 3: There's a few other Darling assets out there.
Speaker 1: One of them, as reported by the Information, is currently
Speaker 1: fundraising at a seven hundred and fifty billion dollar valuation.
Speaker 3: That's open AI. That's a new portfolio too, are they fundraising?
Speaker 13: So I will let the companies speak for themselves on that.
Speaker 12: I would say we're very proud and excited investors to
Speaker 12: be backing open AI. I think Sam and his team
Speaker 12: time and time again, despite a little bit of the
Speaker 12: negative news or the challenges associated with it, have demonstrated
Speaker 12: and ability to innovate in the product side, to form
Speaker 12: formidable partnerships.
Speaker 13: I mean Disney and what they're doing.
Speaker 12: There as well as the partnerships with universities across the
Speaker 12: countries are emblematic of that.
Speaker 13: It's not the first time that there's been a little
Speaker 13: bit of that.
Speaker 12: Focus and intensity of product market fit for them, and
Speaker 12: so to us, we think it's a great asset. We're
Speaker 12: excited to be investors in it, and they continue to
Speaker 12: be synonymous with growth in large language model space, and
Speaker 12: so I'll leave it at that, but certainly an exciting
Speaker 12: journey for the company.
Speaker 1: I mean, the same blurring and tussle and mental models
Speaker 1: are going on in public hand private. Too many big
Speaker 1: names dominating certain indices, too much. VC capital really is
Speaker 1: totally exposed to the AI trade. How have you talked
Speaker 1: to your clients and potential future LPs about, well, the
Speaker 1: economy not supporting what is an AI bubble?
Speaker 12: I think there's a few things you have to root
Speaker 12: yourself in, and just taking a step back at time
Speaker 12: and zooming out makes it a little bit easier to
Speaker 12: appreciate the growth in the private markets and AI in particular.
Speaker 13: You go back three years ago, Chat GPT just emerge
Speaker 13: on the scene.
Speaker 12: We're at a billion monthly active users and it is
Speaker 12: one of the most intertwined assets within a tech stack.
Speaker 12: At both the consumer level and the enterprise level. You
Speaker 12: have growth curves being completely redefined. That's the hardest part,
Speaker 12: I think for public market investors is you have companies
Speaker 12: achieving one hundred million dollars of revenue one to two
Speaker 12: years faster than their public SaaS companies did when they
Speaker 12: were private at twenty to thirty percent the number of employees.
Speaker 12: Think about the compounding effects of that over time.
Speaker 13: So yes, there will be in any tech cycle there.
Speaker 12: Are assets that are overvalued, there's excess, there are companies
Speaker 12: that may completely go bust. But inherent in every single
Speaker 12: tech cycle cloud computing, infrastructure, five G, mobile internet, there
Speaker 12: is a new cohort of companies that define those generations,
Speaker 12: and we think we're seeing many of those play out
Speaker 12: in the private markets.
Speaker 1: The leading one defining private market valuations at the moment
Speaker 1: SpaceX where on tend to Hook's waiting for Blue Origin
Speaker 1: to launch, and we go go back to it in
Speaker 1: a moment. But what are your perspective in terms of
Speaker 1: where twenty twenty six is going to see really the excitement,
Speaker 1: the exuberance. Is it going to be all about general
Speaker 1: to AI, the models, the LMS, or more space More broadly.
Speaker 12: I think it's very clear that defense technology and space
Speaker 12: it's having a moment inappropriately, so I think the rate
Speaker 12: of innovation the starlink business just a handful of years ago,
Speaker 12: there's a lot of speculation on what the monetization.
Speaker 13: Profile of that asset would look like for us.
Speaker 12: We are definitely focused on core assets where there's defensibility
Speaker 12: of spend from the chief information officer layer on the
Speaker 12: enterprise side, right, we benefit from JP Morgan's breath of
Speaker 12: eighteen billion dollars of technology spence to drive insight there.
Speaker 12: But importantly cybersecurity, artificial intelligence, those are resilient areas of spend.
Speaker 12: Why because the efficacy that you're seeing now from deploying
Speaker 12: AI in your organization exceeds the cost is very much
Speaker 12: an ROI positive trade for people now.
Speaker 13: So focusing on the right companies defensible.
Speaker 12: Mode, it's clear and sophisticated management teams to manage the
Speaker 12: conflicts and competition that comes to the four and then
Speaker 12: being in a position to back the winners is very much.
Speaker 13: For we're a position.
Speaker 3: Patrick's great having you on.
Speaker 1: Thank you, Ery, I'm back, wishing you well for the
Speaker 1: end of twenty twenty five, Patrick McGoldrick. They're managing partner
Speaker 1: of JP Morgan Private Capital. Let's get back to Blue
Speaker 1: Origin now the launch is back on. We returned to
Speaker 1: our Space reporter Lauren Graush alongside Chat Anderson's Space Capital
Speaker 1: founder and CEO. Any details, Lauren and what maybe just
Speaker 1: press the pause button?
Speaker 5: I think it was exactly what I thought.
Speaker 4: It turned out to be Whens something that it had
Speaker 4: originally pushed back the launchtime this morning, but it seems
Speaker 4: to have cleared. We've got a new team minus zero
Speaker 4: in about four minutes, I think.
Speaker 5: Let me just check the time. Five minutes.
Speaker 4: Yes, And I would not be surprised if they had
Speaker 4: another hole for wins again, fingers crossed.
Speaker 5: That they don't. But as of now, it seems like.
Speaker 1: All Systems and Chad just remind us of the business
Speaker 1: model here because these are sort of short and sweet,
Speaker 1: eleven minute rides almost this is more pleasure tourism, but
Speaker 1: also still understanding the capacity of what humans can do
Speaker 1: and achieve just into in a or outer orbital What
Speaker 1: do you make of what this precedent is for New
Speaker 1: Shepherd and where else it takes us for human travel?
Speaker 6: Yeah, I think you know, again, this is a small vehicle.
Speaker 7: It's going to sub orbital space, just basically kissing the
Speaker 7: edge of space and coming back down.
Speaker 6: And so I think that it's really kind.
Speaker 7: Of indicative of the different sort of philosophies between SpaceX
Speaker 7: and Blue Origin. Where SPACEXS test programs that they do
Speaker 7: out in public, they fail fast learn quickly, adopt those learnings,
Speaker 7: and then apply them to their next iteration, and we
Speaker 7: get the follow along and watch that test program play
Speaker 7: out in real time.
Speaker 6: With Blue Origin, they're much more careful.
Speaker 7: They do a lot of testing internally before they ever launch,
Speaker 7: and that's why we've seen them have an incredible success
Speaker 7: rate in this vehicle. This new Shepherd vehicle has an
Speaker 7: incredible success rate, and they've been launching. They've launched eighty
Speaker 7: people over sixteen flights. You know, all of these. You know,
Speaker 7: this is a very successful, very reliable vehicle, and it's
Speaker 7: really the first step in their larger space ambitions. So,
Speaker 7: you know, the landing technology that they use here, they
Speaker 7: have applied that to their larger New Glen vehicle. They've
Speaker 7: got an even bigger New Glen vehicle that they've just announced.
Speaker 7: You know, they want to go, they want to launch
Speaker 7: space stations.
Speaker 6: They have a Lunar.
Speaker 7: Lander and contracts with NASA, so their ambitions are large,
Speaker 7: and this new Shepherd vehicle is sort of the seating
Speaker 7: of that technology roadmap.
Speaker 1: Lauren, we mentioned NASA there, and as I said before,
Speaker 1: we have indeed seemingly confirmed a new chief of NASA,
Speaker 1: Jared Issacman, it's been a bit of whiplash through the process.
Speaker 3: What is he set to put in place?
Speaker 1: What is the government relationship with these new private startups.
Speaker 4: Well, Origin has established itself as a very important partner
Speaker 4: with NASA. I think, as Chad mentioned, they have a
Speaker 4: lunar lander program which NASA has contracted them to build
Speaker 4: for their Artemis program, which it aims to send humans
Speaker 4: back to the Moon for the first time in.
Speaker 5: Over a half century. So they are very bullish on
Speaker 5: the Moon.
Speaker 4: I think if you've ever heard Jeff Bezos talk about
Speaker 4: his space ambitions, the Moon is a very big part
Speaker 4: of that. And also it's an exciting time for Blue
Speaker 4: Origin because before Jared Isisacman was confirmed to das administrator,
Speaker 4: the acting administrator, Sean Duffy, had talked about potentially opening
Speaker 4: up the competition again for the first.
Speaker 5: Lunar landing on the Moon.
Speaker 4: So SpaceX currently holds that contract to land the first
Speaker 4: humans on the Moon for the Artemis program, but because
Speaker 4: of some concerns about delays and that development process, Sean
Speaker 4: Duffy had talked about opening up that contract to see
Speaker 4: if Blue Origin could potentially move more quickly on their
Speaker 4: lunar lander program, so I think they're going.
Speaker 5: To try and take advantage of that.
Speaker 4: So it'll be a very interesting time over the next
Speaker 4: few years to see if SpaceX pools ahead, if Blue
Speaker 4: Origin pulls ahead. So we're really in a new age
Speaker 4: space race to get back to the Moon.
Speaker 1: And the race is on for NS thirty seven, just
Speaker 1: one minute thirty seconds or so before launched Child very briefly,
Speaker 1: the management behind Blue Origin that likes of Dave Limp
Speaker 1: coming from Amazon important absolutely.
Speaker 7: I mean, the company was around for two decades and
Speaker 7: never launched anything. You know, they were in R and
Speaker 7: D mode for a very long time. I think bringing
Speaker 7: in Dave Limp, you've seen what's happened. I mean, obviously
Speaker 7: a lot of work had been done up to that point,
Speaker 7: but Dave Limp is a key reason why the company
Speaker 7: is now launching. It's a key reason why we're seeing
Speaker 7: new Glen come online, and it's a key reason why
Speaker 7: they're moving so aggressively on their lunar programs and all
Speaker 7: these other things. So super important from my perspective, we.
Speaker 3: Have one minute to go, Lauren.
Speaker 1: What we'll be doing being done by the astronauts in
Speaker 1: place right now, oh, we're on holiday again. Fifty nine
Speaker 1: fifty eight seconds to go. Maybe a wind polls for now, Lauren.
Speaker 1: But what would the astronauts currently be doing, What would
Speaker 1: the six people who are currently riding likely to be
Speaker 1: doing in this preparation stage.
Speaker 4: Well, I don't know personally, but I imagine their hearts
Speaker 4: are thumping quite quickly, and perhaps the adrenaline.
Speaker 5: Is pumping through them at this moment.
Speaker 4: I think, truly, the way that the vehicle's designed is
Speaker 4: that it's very automated, so they're strapped into their seats.
Speaker 4: I think they really just are along for the ride
Speaker 4: for that first descent portion. So I think for them
Speaker 4: it's just a waiting game, and they're probably, you know,
Speaker 4: gripping the handrails a little tight right now. I'm not
Speaker 4: waiting for this hole to pass.
Speaker 1: I mean, the background of these people, Chad, it is fascinating.
Speaker 1: As you say, we're now well, I don't think I'm
Speaker 1: two degrees separated from Katy Perry, but apparently I'm maybe
Speaker 1: two or six degrees separated from Joey Hyde, who is
Speaker 1: a physicist and a hedge fund investor from Florida who's
Speaker 1: on board. No relation to me, as far as I'm
Speaker 1: aware of it, but we do have Mitchie ben Thaus,
Speaker 1: who of course is the first person going into space.
Speaker 3: In wheelchair, which is a significant step.
Speaker 1: Got German American aerospace engineer hands Consigmund. How are these
Speaker 1: people told ultimately picked, some of them privately spending, some
Speaker 1: of them backed by government grants.
Speaker 7: Yeah, I mean I think it's a mix, you know,
Speaker 7: Blue Origin and Bezos himself has you know, there's usually
Speaker 7: an impact angle to what they do, like there is
Speaker 7: meaning behind what he's doing. The first passengers were and
Speaker 7: I call them passengers because they're really like like Lauren
Speaker 7: has said, it's you know, it's an autonomous vehicle and
Speaker 7: they're kind of along for the ride. But the first
Speaker 7: passengers were selected very carefully, you know, they wanted to
Speaker 7: tell the right story. And but no, I mean people
Speaker 7: are they have put down deposits, they've paid their way.
Speaker 7: They there's a long list the people who really want
Speaker 7: to go to space.
Speaker 6: In addition to.
Speaker 7: The first person in a wheelchair, which again is like
Speaker 7: really pointing to how accessible space flight has become. Hans
Speaker 7: is a big one for me. I mean, this is
Speaker 7: he's a SpaceX legend. He was the one of the
Speaker 7: earliest and most senior employees of SpaceX. He was their
Speaker 7: VP of Build and Flight Reliability for a decade. So
Speaker 7: seeing a key architect of SpaceX success fly on a
Speaker 7: Jeff Bezos owned Blue Origin rocket is kind of the
Speaker 7: crossover moment.
Speaker 6: That has the industry you know talking. I think is
Speaker 6: really interesting that.
Speaker 1: Is now all become weightless as a spacecraft continues towards
Speaker 1: its highest point on the brief joid, the brief voyage
Speaker 1: that going out to the common line stick with us.
Speaker 1: Lauren Grash and Chad Anderson in space Capital, we so
Speaker 1: appreciate your time. We'll go back to this launch as
Speaker 1: and when the clock these starts. For now, let's check
Speaker 1: in on these markets. We're up two percent. We're in
Speaker 1: risk on mode, the desire to be buying into equities
Speaker 1: after information comes in cooler than expected. But we get
Speaker 1: some relief from some of the AI anxiety they've been
Speaker 1: building in the market because we've got earning fundamentals for
Speaker 1: Micron that was well above expectations, with revenue growth rate
Speaker 1: far above the fifty percent that have perhaps have been expected,
Speaker 1: and they're pointing towards ever growing margins. How long is
Speaker 1: that sustainable. We're eleven and a half percent on the
Speaker 1: stock is actually not at a record high, but boy
Speaker 1: of price target's been raised. Let's discuss that with Blueberg
Speaker 1: Aquities report to ran Vastelica and I mean I was
Speaker 1: looking on overall analyst recommendations.
Speaker 3: One of the highest price targets.
Speaker 1: Is five hundred dollars and there's only one cell rating
Speaker 1: on Micron.
Speaker 14: Yeah.
Speaker 15: Absolutely, people seem like they are really coming around on
Speaker 15: this story. I saw Bank of America upgraded the stock
Speaker 15: earlier today. A lot of optimism around just the overall
Speaker 15: memory needs that are going to be required as the
Speaker 15: AI infrastructure build out continues, especially going into next year,
Speaker 15: So a lot of optimism there. There have been some
Speaker 15: shakiness in the wake of Oracle and Broadcome results, but
Speaker 15: it really seems like Micron surprised to the upside. Things
Speaker 15: were well ahead of expectations across the key metrics, and
Speaker 15: they talked about so much the man are not able
Speaker 15: to have enough supply to meet their major customers. So
Speaker 15: sort of the problem there, but I guess a good one,
Speaker 15: and just in terms of how strong the demand is.
Speaker 1: I mean, I probam of certain customers that dependent on
Speaker 1: maybe just the more basic non memory part of the business,
Speaker 1: and they're having to pay higher prices. Already, there were
Speaker 1: reports that Dell was triving to pass on some higher
Speaker 1: prices last week.
Speaker 3: Dell is down on the day, so to his HPE.
Speaker 15: Yeah, absolutely, we are seeing weakness across the hardware space today. Obviously,
Speaker 15: you know, as you increase these memory prices or prices
Speaker 15: for memory chips, that's going to be a problem for
Speaker 15: the companies that have to pay for it. Obviously, a
Speaker 15: lot of the spending is being done, at least on
Speaker 15: the AI side of things by these megacap companies that
Speaker 15: have such deep pockets, you know, your Microsoft's and Alphabets
Speaker 15: and Amazons and so forth. But beyond that, we are
Speaker 15: seeing places where you know, micro unscain is going to
Speaker 15: their detriment.
Speaker 1: I'm Vasselica always across these market moves, we thank you.
Speaker 1: Let's stick on the moves post Micron. Joanne Foeni's with
Speaker 1: us partner a new manager Advisor's capital management, our guru
Speaker 1: when it comes to all things semiconductors. Just how important
Speaker 1: has the high bandwidth memory part of the business become
Speaker 1: for Micron?
Speaker 14: Oh, it's absolutely essential, you know, they made that move
Speaker 14: into that technology space. They're the leader and it is
Speaker 14: proving to be extremely useful in these data centers for
Speaker 14: AI because of the intense memory needs to keep that
Speaker 14: processing going as quickly as possible.
Speaker 8: So, you know, not enough capacity out there.
Speaker 14: They're adding some, but in the meantime they're going to
Speaker 14: enjoy further price increases.
Speaker 1: Good for them, Yeah, good for them that we know
Speaker 1: this is a desperately cyclical market at times, and it
Speaker 1: can be very good on the upside, very painful on
Speaker 1: the downside. They are committing to more capital expenditure. They
Speaker 1: are building out to try and meet some of that
Speaker 1: demand you on. Is that the right game plan?
Speaker 14: Yeah, it's it's a tough it's a tough industry because
Speaker 14: we do, as you pointed out, Carolyn, we get these
Speaker 14: cycles and it's it's boom and bust. There are a
Speaker 14: few players, but each of them wants to be first
Speaker 14: with supply so they can capture the resilient demand the
Speaker 14: higher prices, and then inevitably they overbuild prices come crashing down.
Speaker 8: What's different this time, perhaps is.
Speaker 14: The strength of the demand for this new product line
Speaker 14: because of what we're seeing obviously in the buildout of
Speaker 14: AI data centers, and if for guests are correct and
Speaker 14: we're going to see year's worth of AI data center
Speaker 14: build out, we're going to see that demand sustain at
Speaker 14: these high levels.
Speaker 8: That doesn't mean capacity isn't going to catch up.
Speaker 14: Clearly, they're going to try, and so ultimately prices will
Speaker 14: come down.
Speaker 8: And then the question.
Speaker 14: Becomes, Okay, so once we've built these data centers and
Speaker 14: that build slows.
Speaker 8: Down, what is the need for all of those new
Speaker 8: factories for making memory chips. So it's a devilsely cyclical industry,
Speaker 8: very tough.
Speaker 1: There are few players who managed to crack the HBM code.
Speaker 3: Sk heinix some I'm trying to pay catch up.
Speaker 1: How much do you think competition could really ramp up
Speaker 1: into twenty twenty six?
Speaker 14: Yeah, I mean clearly, ske Heinez is you know involved.
Speaker 14: Samsung is a great company. I'm sure they'll figure this out.
Speaker 14: Whether they can add capacity quickly as another question. But
Speaker 14: they have the ability to switch capacity between solid state
Speaker 14: memory and DRAM and they'll do that as long as
Speaker 14: the demand remains. But even with Micron, I mean they
Speaker 14: talked about pulling in the expansion and Idaho from you know,
Speaker 14: the sort of fourth quarter or the third quarter of
Speaker 14: fiscal twenty seven into the middle of twenty seven, so
Speaker 14: maybe moving it up by a quarter. It's just tough
Speaker 14: to bring on new capacity. There are constraints from the
Speaker 14: equipments offers, you know, land research applied ASML. You can
Speaker 14: only get your hands on key equipment so quickly, so
Speaker 14: it's always slow, and therefore that gives investors some visibility
Speaker 14: to how long this cycle might last.
Speaker 1: Were you given any more anxiety around certain players in
Speaker 1: the space.
Speaker 3: Yesterday we were all talking.
Speaker 1: About Oracle and perhaps whether it's financing was good or
Speaker 1: not for builds out in Michigan. It feels as though
Speaker 1: they said they've got the right in place, but how
Speaker 1: much we're going to see this on again, off again
Speaker 1: bubble problems in twenty twenty six two.
Speaker 8: I think this anxiety is going to continue, and for
Speaker 8: good reason.
Speaker 14: Right there's uncertainty about how quickly these AI applications will
Speaker 14: be put into practice to generate profits to keep that
Speaker 14: demand going for those new data centers. But when you
Speaker 14: look at the investments taking place by the big guys,
Speaker 14: by the mega companies like Microsoft, Google, Amazon, what you
Speaker 14: see our companies with.
Speaker 8: Just immense free cash flow. Just take a look at
Speaker 8: their numbers.
Speaker 14: You know, Amazon reportedly a ten billion dollar investment in
Speaker 14: open Ai in exchange for open Ai using its trainingum chips.
Speaker 14: Amazon's free cash flow this year and next year is
Speaker 14: well over ten million dollars.
Speaker 8: Right, they have plenty of money.
Speaker 14: And you look at the others that have even larger
Speaker 14: levels of free cash flow making investments in open Ai
Speaker 14: and elsewhere.
Speaker 8: So I think some of the ern is a little
Speaker 8: bit misplaced.
Speaker 14: But you know, you look at Accentua this morning, which
Speaker 14: you know, we've owned for clients for a long time.
Speaker 14: They are talking about how difficult it is to get
Speaker 14: their data and their systems and their processes in place
Speaker 14: so that they can help customers. What they're also saying
Speaker 14: is that customers want and need their help. So there's
Speaker 14: definitely an effort out there to roll out AI applications,
Speaker 14: and you know we're going to see that happen.
Speaker 8: The question that makes people nervous is how quickly will
Speaker 8: it happen?
Speaker 14: Will there be enough profits for the users of AI
Speaker 14: who are paying this money for access to these models,
Speaker 14: Will they continue to pay in sufficient quantities that you know,
Speaker 14: doesn't cause a slow down.
Speaker 8: In the buildout of these data centers.
Speaker 14: But right now, you know, the valuations for a company
Speaker 14: like Broadcom are really reasonable when you just look at
Speaker 14: two years worth of growth.
Speaker 8: And some are complaining that the valuations are not so reasonable.
Speaker 8: But I would encourage people to look not just at
Speaker 8: one year of earnings growth, but look at a couple
Speaker 8: look at three.
Speaker 3: I like that takeaway, Joanne Feeney.
Speaker 1: Always great to catch up from Advisor's Capital Management Stay well,
Speaker 1: thank you.
Speaker 3: Just take a look at this Chinese AI firms.
Speaker 1: They have been soaring in terms of share price, new
Speaker 1: entrantsx like more threads.
Speaker 3: They've gone public with wildly.
Speaker 1: Oversubscribed debuts as China makes an all out push to
Speaker 1: become self sufficient in semiconductors.
Speaker 3: So what does it mean for the US firms for
Speaker 3: global AI tensions?
Speaker 1: James Proud, here's CEO of substrate founder's fund BATCHIP Foundry
Speaker 1: in the United States. You've just come out of stealth,
Speaker 1: You've joined us on the show at the end of October,
Speaker 1: and what I really want to get your perspective on
Speaker 1: is China's domestics supply right now and how much you've
Speaker 1: long been concerned about our exposure in the US to
Speaker 1: Taiwan and the like.
Speaker 3: How much is China making strides?
Speaker 16: Yeah, Well, I think when we talk about China's ability
Speaker 16: to have an advanced semiconductor sector, the question is in
Speaker 16: can China make fabs? Can they make equipment? The question
Speaker 16: has always been will they have access to EUV lithography
Speaker 16: tools or be able to make their own. And the
Speaker 16: reporting that came out yesterday shows that China now has
Speaker 16: a working prototype of some type, which I think to
Speaker 16: a lot of people came.
Speaker 6: As a surprise.
Speaker 16: This is something that we've been tracking for a very
Speaker 16: very long time and something that I think that the
Speaker 16: US should actually take incredibly seriously. We can't just be
Speaker 16: playing defense. There needs to be a plan of okay,
Speaker 16: how do we regain leadership, but really by a leap
Speaker 16: ahead so that we can actually maintain that when China
Speaker 16: is able to actually make advanced semiconductors.
Speaker 3: Now, what's so.
Speaker 1: Interesting is that just today we're hearing that Tencent has
Speaker 1: managed to appoint a new chief AI scientist, bringing over
Speaker 1: from Open Ai. From the reporting being done by outlets
Speaker 1: like Reuter's that there's some new EUV or some sort
Speaker 1: of lithography equipment built in China by people who've come
Speaker 1: from ASML and gone to work back in China. How
Speaker 1: is the talent war and the brain drains something that
Speaker 1: you're keeping an eye on.
Speaker 16: Yeah, well, I think that we underestimate China to our like.
Speaker 16: They are some of the smartest scientists and engineers in
Speaker 16: the world, and we shouldn't be surprised that they sometimes
Speaker 16: join Western companies and then often go back and are
Speaker 16: able to compete very effectively. And so I think that
Speaker 16: bedding that China will do something is always the smart
Speaker 16: strategy versus bedding that they can't do something, and so
Speaker 16: we should change our approach to account for that.
Speaker 1: Your approach is about taking on EUV lithroography in a
Speaker 1: different sort of ways and means you've been getting a
Speaker 1: billion dollar valuation already. You're looking to restore American leadership
Speaker 1: when it comes to actually the equipment needed to manufacture semiconductors.
Speaker 1: What is your relationship right with the US government right now?
Speaker 1: How much are they taking this into account and how
Speaker 1: have things changed since we last spoke.
Speaker 16: Yeah, our relationship for many years has been very close
Speaker 16: with the US government, and so I wouldn't say, there's
Speaker 16: really been much change. We collaborate very very closely with them,
Speaker 16: and they've been some of our biggest supporters, and frankly,
Speaker 16: we wouldn't be where we are right now now about
Speaker 16: a very very close relationship with the government.
Speaker 1: You use, as you say, particle acceleration X ray wavelengths
Speaker 1: to really etch intricate detail basically patterns into wafers. How
Speaker 1: do those that are cynical and what you're building, how
Speaker 1: do you give the proof points give us something tangible
Speaker 1: that you've managed to make strides in to be able
Speaker 1: to ensure that maybe we don't even need ASML let
Speaker 1: alone Taiwan Taiwanese produced chips.
Speaker 13: Yeah, so there's a.
Speaker 16: Lot that still needs to be done, but I think
Speaker 16: that we're very excited over the coming months, in the
Speaker 16: next couple of years to begin actually showing some pretty
Speaker 16: big leaps. We've been able to go from sort of
Speaker 16: zero to having our own working prototype tool in three years,
Speaker 16: and that is sort of similar to what was just
Speaker 16: announced from China yesterday. Actually on my x account this morning,
Speaker 16: we went and posted like one of the key things
Speaker 16: that was actually in that reporting yesterday is a doubt
Speaker 16: that China will be able to catch up on the
Speaker 16: advanced optics required for these systems. And we just went
Speaker 16: and publicly released some research that we did two years
Speaker 16: ago on how China is actually already achieving these optics domestically,
Speaker 16: and so the efforts that are going on here are
Speaker 16: far greater than is really sort of at the public level.
Speaker 16: I yesterday's news is really only the start of this.
Speaker 3: So what does that mean for me?
Speaker 1: Maybe easing restrictions on H two hundreds. I mean, all
Speaker 1: of this, we've seen a clampdown on EUV lithography from
Speaker 1: ASML going into China from the US pressure.
Speaker 3: Is it all too late? James?
Speaker 16: I don't think anything's too late, And I think that
Speaker 16: when Jensen says China is only a nanosecond behind, like
Speaker 16: he's correct. And so I think that our focus at
Speaker 16: the US needs to be focused on what we're very
Speaker 16: good at, which is sprinting. Like we can play a
Speaker 16: defensive strategy, but we need to have an offensive, as
Speaker 16: I said, leap ahead strategy as well, and that's the
Speaker 16: role that we are trying to play.
Speaker 1: James Proud, CEO of Substrate, trying to leap when it
Speaker 1: comes to chip equipment making we appreciate it.
Speaker 3: Now coming up, Trump.
Speaker 1: Media shares absolute popping as it makes another huge pivot,
Speaker 1: this time into nuclear fusion details. Nexts bluebo Tech. It's
Speaker 1: time now for talking tech. First up, Indian company are
Speaker 1: our E Semiconductor seen it shares surge more than fifty
Speaker 1: five thousand percent in just twenty months, but the rally
Speaker 1: is now showing signs of a strain. According to sources,
Speaker 1: the Securities and Exchange Board of India has actually begun
Speaker 1: to examine the company's shares surge for potential wrongdoing. Plus,
Speaker 1: so far It's launched its own US dollar stable point
Speaker 1: called Sofar USD. The company says it plans to make
Speaker 1: so Far USD available to its members in the coming
Speaker 1: months and its positioning the token as a tool for
Speaker 1: twenty four to seven settlement cross card networks. Retailers and
Speaker 1: businesses and North Korean hackers are said to have stolen
Speaker 1: a record two billion dollars worth of crypto this year,
Speaker 1: according to a report from Chain Analysis, and the country's
Speaker 1: hall from crypto theft has risen more than fifty twenty
Speaker 1: twenty four, it says, records began. This country is estimated
Speaker 1: to have boosted its cryptospoils to at least six point
Speaker 1: seventy five billion. Talking of crypto and maybe a bit
Speaker 1: of a pivot, Trump Media has agreed to combine with
Speaker 1: Thae Technologies in an all stock transaction valued at more
Speaker 1: than six billion dollars. The companies say it will create
Speaker 1: one of the world's first publicly traded nuclear fusion companies,
Speaker 1: for plans to construct the first utility scale fusion power
Speaker 1: plant next year.
Speaker 3: NOMG Energy reporter Will Wade joins me.
Speaker 1: Now, a social media crypto asset management company is merging with.
Speaker 3: A nuclear fusion company. Let's theorize as to what the
Speaker 3: upside is for nuclear fusion. Why are they thinking this
Speaker 3: is a good bet?
Speaker 17: You know, this is not the deal I was expecting
Speaker 17: to see when I got to work this morning. The
Speaker 17: pieces I didn't intuitively put them together, and I still don't.
Speaker 17: But what I do know is so Tae's been doing
Speaker 17: us for a long time. There's a lot of companies
Speaker 17: working on fusion. THAA is making good progress. But one
Speaker 17: of the things they said is they're getting almost up
Speaker 17: to three hundred million dollars out of this right up front,
Speaker 17: and they need it. Their CEO there was a call
Speaker 17: this morning and he said, capital is becoming one of
Speaker 17: our problems, Like really, because infusion, physics and engineering and
Speaker 17: technology has always been the problem. So saying we really
Speaker 17: need the money is an interesting development.
Speaker 1: There is a lot of money, a lot of ambition
Speaker 1: chasing nuclear fusion. Sam Altman is in there, Jeff Bezos,
Speaker 1: a lot of them have been involved in fusion startups.
Speaker 1: What's THA done differently?
Speaker 13: Tha is using a different kind of fuel.
Speaker 17: Most of the fusion companies want to use these two
Speaker 17: hydrogen isotopes to tium tritium. Tritium is hard to get
Speaker 17: and it's kind of radioactive.
Speaker 13: THA.
Speaker 17: Yeah, THA is using hydrogen boron, which is not radioactive
Speaker 17: and it's easy to get.
Speaker 13: So they talk about that as.
Speaker 17: One of their differentiators. But you know, really the key
Speaker 17: for all of them is the super strong magnets to
Speaker 17: keep this, you know, one hundred something million degree ball
Speaker 17: of plasma contained.
Speaker 3: Where are we in nuclear fusion? And it's efficacy.
Speaker 1: I mean, you're a man who has great patience, you
Speaker 1: work in the world in nuclear.
Speaker 17: Yeah, I mean nuclear moves slow, and fusion moves even
Speaker 17: slower than that. But the joke on fusion is that
Speaker 17: it's always twenty years away, and it's getting closer. There's
Speaker 17: a couple of companies that are you know, making you know,
Speaker 17: tangible steps. There's Commonwealth Fusion. They're actually working already on
Speaker 17: what they say will be their first commercial plant. Now
Speaker 17: they haven't actually achieved a stable fusion reaction yet, but
Speaker 17: they're getting close with their demo plant. Tae says they're
Speaker 17: going to start building their first commercial plant next year
Speaker 17: with the money from this deal. And there's again on
Speaker 17: the call today, they talked about first power in twenty
Speaker 17: thirty one. He didn't define that, so I'm curious how
Speaker 17: exactly what that means. But we could have some real
Speaker 17: fusion power plants sometime in the twenty thirties.
Speaker 1: It's gonna be fascinating to see how the current Trump
Speaker 1: media CEO, Devin Nunaz, teams up with the Fusion CEO.
Speaker 1: They're gonna be co CEOs of this business together. It's
Speaker 1: been great getting your breakdown on just the energy and
Speaker 1: the innovation side of it all. Bloomberg's Will weighe he's
Speaker 1: always there for us when we need one talk nuclear.
Speaker 3: But that does it for this edition of Bloomberg Tech.
Speaker 3: You don't want to forget to check our podcast. You
Speaker 3: can find it on the terminal as well as online
Speaker 3: not Apple, Spotify, and iHeart. For now, Blue Origin, the
Speaker 3: flight has been canceled. We'll see if that is reconvened
Speaker 3: for tomorrow. Stick with us. This is BlueBag Tech