WEBVTT - Palantir's Strong Commercial Demand, Palo Alto Doubles Down on Cyber Defense 0:00:00.080 --> 0:00:15.440 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live 0:00:15.520 --> 0:00:19.200 from the heart of Silicon Valley with Ed Lamow in 0:00:19.440 --> 0:00:20.240 Ben Francisco. 0:00:23.120 --> 0:00:27.880 This is Bloomberg Tech coming up. Pallenteer calls Commercial Demand Otherworldly, 0:00:28.040 --> 0:00:32.080 will break down the data and AI company's blockbuster earnings results. 0:00:32.280 --> 0:00:35.560 Plus Apple exceeds ten billion dollars in annual sales in 0:00:35.560 --> 0:00:39.000 India for the first time last fiscal year. We'll discuss 0:00:39.040 --> 0:00:42.720 what's driving searching demand for its devices in that market. 0:00:42.760 --> 0:00:45.960 And Palo Alto Network CEO nicuesh Aura joins us to 0:00:46.000 --> 0:00:51.839 discuss the next generation of AI powered cyber defense. It's 0:00:51.840 --> 0:00:54.600 seeing stocks at all time highs and its technology that's 0:00:54.680 --> 0:00:56.360 leading the way. Then, as that one hundred up for 0:00:56.400 --> 0:00:59.280 a four straight session, matching its run from the first 0:00:59.280 --> 0:01:01.160 week of June, and the S and P five hundred 0:01:01.600 --> 0:01:04.319 is at all time highs. There is a big technology 0:01:04.360 --> 0:01:07.759 earning story driving that and that is Palenteer. Today's big 0:01:07.840 --> 0:01:10.919 number three hundred and eighty zero point one billion dollars. 0:01:10.920 --> 0:01:13.560 That's the market capit Palenteer right now. This is a 0:01:13.640 --> 0:01:16.520 big gain in the stock. The shares up twenty five 0:01:16.560 --> 0:01:19.640 percent or so, on track for their best day since 0:01:19.680 --> 0:01:23.400 February twenty twenty four, best day since February twenty twenty four. 0:01:23.560 --> 0:01:25.959 These are the key numbers, and it's the US commercial 0:01:26.000 --> 0:01:28.720 business that's really driving me. At US commercial sales came 0:01:28.760 --> 0:01:31.400 in seven hundred and sixty four million dollars, up almost 0:01:31.400 --> 0:01:34.160 one hundred and fifty percent year to date. Overall, US 0:01:34.280 --> 0:01:37.120 revenues strong, and the big takeaway is the outlook for 0:01:37.120 --> 0:01:39.640 the year. They're saying that sales will be eight point 0:01:39.680 --> 0:01:41.880 one five to eight point one six billion dollars. That's 0:01:41.920 --> 0:01:43.920 a few hundred million dollars even at the low end 0:01:43.920 --> 0:01:47.160 of the range, beyond the streets expectation. What's the biggest story. 0:01:47.480 --> 0:01:50.160 Let's stick with Palentage joining US now. Marianna Perez mora 0:01:50.520 --> 0:01:54.720 Bank of America Securities Aerospace and Defense analyst reiterates a 0:01:54.760 --> 0:01:57.520 buy on the stock with a price target of two 0:01:57.560 --> 0:02:02.240 hundred and fifty five dollars a share. What's so interesting 0:02:02.480 --> 0:02:08.239 is the US commercial business is partly being reflected right now, 0:02:08.800 --> 0:02:10.519 but actually if you look at some of the bigger 0:02:10.560 --> 0:02:13.280 contracts that they secured, they don't call it a backlog, 0:02:13.680 --> 0:02:15.839 but there is a long way to go, and there's 0:02:15.840 --> 0:02:17.840 a big opportunity, and I was reading your note that's 0:02:17.840 --> 0:02:19.639 why you've upgraded a lot of your estimates. 0:02:21.680 --> 0:02:25.400 Yes, the US commercial strength is just a result of 0:02:25.440 --> 0:02:29.000 what we have been discussing in the past. Planteers position 0:02:29.200 --> 0:02:32.440 at the right place at the right timing to benefit 0:02:32.600 --> 0:02:36.560 from actually being able to operationalize all the SAI momentum 0:02:36.639 --> 0:02:41.040 and all the DCI demand, and US is actually embracing 0:02:41.080 --> 0:02:44.640 that with the size of the contracts they are seeing. 0:02:44.639 --> 0:02:47.240 It's also very, very amazing if you look at the 0:02:47.280 --> 0:02:52.000 trailing twelve month average spending per US customer that is 0:02:52.120 --> 0:02:55.239 had like sixty seven percent. And it's not just new 0:02:55.280 --> 0:02:59.760 customers that are run being faster, but also legacy customers 0:02:59.800 --> 0:03:03.200 that have been using this orchestration or ontology for a 0:03:03.280 --> 0:03:06.360 while that are ambitious and they want to actually keep 0:03:06.400 --> 0:03:09.760 incorporating the benefits of AI into their businesses. 0:03:09.880 --> 0:03:10.079 Right. 0:03:10.720 --> 0:03:13.440 I always remind myself, what does Palenteer do. Palenteer makes 0:03:13.520 --> 0:03:18.000 AI powered software that helps companies and governments either analyze 0:03:18.040 --> 0:03:21.680 their data, or make decisions on their data, or automate 0:03:21.800 --> 0:03:22.919 data related processes. 0:03:23.000 --> 0:03:23.960 Rights simple as that. 0:03:24.480 --> 0:03:27.360 But the takeaway and the story that Alex carbon Palenter 0:03:27.400 --> 0:03:29.800 want to tell is owning the means of production in 0:03:29.840 --> 0:03:33.320 the AI context. Are they showing evidence that they're helping 0:03:33.320 --> 0:03:34.280 customers do that. 0:03:36.960 --> 0:03:37.200 Well? 0:03:37.240 --> 0:03:41.720 Actually, when you admit at their conferences with customers, customers 0:03:41.720 --> 0:03:44.480 are really happy about it, and the reality. 0:03:44.080 --> 0:03:45.320 Is that they have tried. 0:03:45.720 --> 0:03:49.119 They have tried to just implement it themselves, and it's 0:03:49.160 --> 0:03:53.480 not that easy. Punter has been orchestration not only this 0:03:54.160 --> 0:03:59.000 data analytics platform, but how the decision maken actually work 0:03:59.120 --> 0:04:03.560 with that and all these human interaction with AI. It's 0:04:03.600 --> 0:04:07.200 really hard to have that digitalize and Plenteer has been 0:04:07.200 --> 0:04:10.360 doing that for decades. So customers are happy about it, 0:04:10.440 --> 0:04:13.640 and customers are actually leaning into that opportunity. 0:04:15.120 --> 0:04:19.120 Palent is US growth one hundred and fifteen percent, it's 0:04:19.160 --> 0:04:23.359 international revenues growing at thirty three percent. But Europe is 0:04:23.400 --> 0:04:27.839 a story there right. Europe's much slower, and Palenteer continues 0:04:27.880 --> 0:04:30.760 to kind of express open frustration about that what's gone 0:04:30.800 --> 0:04:31.560 on in that market. 0:04:35.279 --> 0:04:38.200 I think what happened in Europe particularly, I'm going to 0:04:38.279 --> 0:04:41.080 speak about what we do. We are volunteer from the 0:04:41.200 --> 0:04:43.800 erspace and defense industry, and we're seeing that a lot 0:04:44.520 --> 0:04:49.039 post in Ukraine. There is this urge for European countries 0:04:49.120 --> 0:04:52.760 to don't depend that much on US technologists. They don't 0:04:52.760 --> 0:04:55.760 need to like they need to actually have domestic solutions. 0:04:56.440 --> 0:04:58.760 So is the two phases. 0:04:58.360 --> 0:05:01.279 Of sovereignty in my way, that is like actually shopping 0:05:01.360 --> 0:05:04.920 Polunteer in the middle, because while Volunteer actually gives a 0:05:05.000 --> 0:05:08.640 really good sovereign AI platform for you to own your IP, 0:05:08.960 --> 0:05:12.240 for you to be able to benefit from both like 0:05:12.360 --> 0:05:15.880 open models and frontier models and actually have like all 0:05:15.960 --> 0:05:19.679 those learnings for yourself and proprietary data on the area 0:05:19.680 --> 0:05:25.360 that end of sovereignty. They are a really outspoken American company, 0:05:25.600 --> 0:05:26.880 So that's part of the noise. 0:05:27.120 --> 0:05:33.280 And Marianne, you talk about part of Palente's secret sauce 0:05:34.040 --> 0:05:38.000 being how they price. They price that they're offering on 0:05:38.160 --> 0:05:41.680 measurable outcomes, in other words, like here's what we actually 0:05:41.680 --> 0:05:43.960 did for you, Now pay us this. How unique is 0:05:44.040 --> 0:05:45.520 that in this space. 0:05:48.279 --> 0:05:51.159 I think that's starting to be more popular and the 0:05:51.480 --> 0:05:54.919 FD and the ontologies are also getting more popular on 0:05:55.000 --> 0:05:59.000 others software companies approach and go to market strategy. The 0:05:59.160 --> 0:06:04.480 difference is Volunteer actually partners with their customers. They care 0:06:04.520 --> 0:06:07.200 about their problems, they care about their mission, and this 0:06:07.320 --> 0:06:10.039 is how they price their outcomes and they price their solutions, 0:06:10.080 --> 0:06:12.160 and this is why they are able to have well 0:06:12.279 --> 0:06:15.600 like fifty five percent cash margins, because as they produce 0:06:15.680 --> 0:06:19.360 profits for their customers, they can also produce them for themselves. 0:06:20.200 --> 0:06:20.760 Just real quick. 0:06:20.800 --> 0:06:23.880 Ontology is basically the digital model of how a company's 0:06:23.960 --> 0:06:28.160 business works in the real world, really really quick. Your 0:06:28.200 --> 0:06:29.880 price target is two five to five, it's about one 0:06:29.920 --> 0:06:35.320 hundred dollars to go. This is a turning point for them. 0:06:36.040 --> 0:06:40.040 I do think Poluntary is growing into that valuation. It's 0:06:40.080 --> 0:06:44.320 still like down versus last November picks, and if you 0:06:44.360 --> 0:06:48.080 look at the estimates, it continued to actually execute not 0:06:48.200 --> 0:06:51.200 only like with expectations, but even faster than I expected. 0:06:51.600 --> 0:06:54.839 So I think that boats like more than the market 0:06:54.920 --> 0:06:59.400 de rating on general de rating and also AI themes 0:07:00.160 --> 0:07:00.680 is outgrowing. 0:07:00.760 --> 0:07:05.839 Dad, Marianna Perez Mora of Bank of America Securities. 0:07:05.880 --> 0:07:07.280 Great to have you back on the show. Thank you 0:07:07.400 --> 0:07:07.760 very much. 0:07:07.839 --> 0:07:09.440 The two other companies we have our eyes on in 0:07:09.480 --> 0:07:13.720 the earnings context, Snap and Spotify. Snaps up fifteen percent 0:07:14.040 --> 0:07:16.880 and in their case strong sales projection for a company 0:07:16.920 --> 0:07:20.760 that over the run of this ballmarket has not performed well. 0:07:21.000 --> 0:07:24.160 They see revenue jumping twenty percent almost to one point 0:07:24.200 --> 0:07:27.920 six billion dollars in the quarter. Of course, everyone's kind 0:07:27.920 --> 0:07:29.880 of treading water a little bit for the launch of 0:07:29.920 --> 0:07:33.280 the ar glasses and the debut Spotify another stock that 0:07:33.320 --> 0:07:37.520 we're watching in the earnings context. So users climbed to 0:07:37.680 --> 0:07:40.559 seven hundred and seventy seven million in the second quarter. 0:07:40.600 --> 0:07:43.920 But basically there's five million of you out there somewhere 0:07:43.920 --> 0:07:46.600 in the world that are not active users of Spotify, 0:07:46.640 --> 0:07:48.800 and Wall Street thinks that you should be, and so 0:07:49.320 --> 0:07:52.320 the stock's up three percent, But there's a little daylight 0:07:52.400 --> 0:07:55.200 between what Spotify is posting in terms of its user 0:07:55.240 --> 0:07:58.000 base and what the street thinks it should be hitting. Nevertheless, 0:07:58.120 --> 0:08:01.080 the stuff is higher now coming up needs continue. Grab, 0:08:01.160 --> 0:08:04.920 the leading Southeast Asian super app, reported its second quarter 0:08:04.920 --> 0:08:08.600 earnings yesterday and grabs chief financial officer Peter Owe joins 0:08:08.680 --> 0:08:19.560 US next Sisplinberg Tech. Grab released its second quarter earnings 0:08:19.640 --> 0:08:22.760 yesterday after the closing bell. The Southeast Asian super app 0:08:23.120 --> 0:08:27.320 boosted its annual earnings and sales forecasts thanks to robust 0:08:27.400 --> 0:08:30.320 ride and delivery demand in the region. And here's how 0:08:30.360 --> 0:08:34.000 shares currently going three percent on the US listed ADRs, 0:08:34.080 --> 0:08:37.680 joining US is grab's chief financial officer, Peter Oue. Let's 0:08:37.720 --> 0:08:41.120 start with the like the demand story, you're you're basically 0:08:41.480 --> 0:08:44.960 pretty confident about about the state of that demand picture 0:08:45.400 --> 0:08:47.040 on ride and delivery. 0:08:47.400 --> 0:08:49.120 My curiosity is around. 0:08:48.840 --> 0:08:53.480 Like how recent a change that trajectory is, Like what's 0:08:53.520 --> 0:08:58.200 happened short term versus what you're already seeing longer term? 0:08:58.240 --> 0:08:59.959 Sure, yeah, it actually been relliant. 0:09:00.000 --> 0:09:05.160 Interesting was this momentum that we're seeing actually started well 0:09:05.240 --> 0:09:07.880 in the beginning of the year, and when we entered 0:09:07.880 --> 0:09:10.520 the second quarter, especially in the March period we were 0:09:10.559 --> 0:09:15.160 exiting Q one with the fuel crisis and the war happening, 0:09:15.440 --> 0:09:19.040 we were actually revisiting our situation what was going to 0:09:19.040 --> 0:09:21.960 happen in the second quarter. Given Southeast Asia, we were 0:09:22.040 --> 0:09:26.320 the hardest impact that with fuel prices, but we didn't 0:09:26.360 --> 0:09:29.760 actually see the play out. Even the fuel prices went up. 0:09:30.320 --> 0:09:33.640 We leaned in fairly hard in supporting the driver community. 0:09:34.040 --> 0:09:37.440 We supplied We also leandian in helping the consumers with 0:09:37.520 --> 0:09:38.800 affordable rides, and. 0:09:38.720 --> 0:09:41.160 What we actually saw was completely the opposite. 0:09:41.200 --> 0:09:43.840 Actually, we saw our rides grow at twenty eight percent 0:09:43.880 --> 0:09:45.720 on a year of a year basis, one of the 0:09:45.760 --> 0:09:48.720 highest that we've seen, and we saw our on demand 0:09:48.760 --> 0:09:51.600 business both on food and delivery also on demand GMB 0:09:52.160 --> 0:09:53.400 grew a twenty one percent. 0:09:53.480 --> 0:09:56.120 So it was a very robust, very resilient. 0:09:55.679 --> 0:10:00.440 Asian economy despite some of the challenges we had macro 0:10:00.559 --> 0:10:03.880 here in Southeast Asia. But also we also saw the 0:10:03.920 --> 0:10:06.800 marketplace very healthy at the same time and driving the 0:10:06.880 --> 0:10:09.640 profitability in the business. 0:10:09.679 --> 0:10:12.000 Peter the top of the Bloomberg Tech story on grad 0:10:12.080 --> 0:10:16.600 talks about the Southeast Asian commuter. What do those transactions 0:10:16.640 --> 0:10:19.440 look like for you in the period, Like what kinds 0:10:19.440 --> 0:10:22.559 of trips are these? Are they from the cfo's perspective, 0:10:22.960 --> 0:10:25.320 the kinds of transactions that you want to see driving 0:10:25.320 --> 0:10:26.040 top line. 0:10:27.520 --> 0:10:29.800 Yeah, it was actually a very balance the way we 0:10:29.840 --> 0:10:33.199 saw it. We saw the domestic commute still very strong, 0:10:33.920 --> 0:10:37.160 both in two wheels and four wheels. The rides were 0:10:37.240 --> 0:10:39.600 up twenty eight percent, which is very strong for us. 0:10:40.320 --> 0:10:43.040 We saw a lot of the one out of four 0:10:43.200 --> 0:10:47.479 new users coming into what we call the Saber program, 0:10:47.559 --> 0:10:50.920 which is more affordable rides, but we also saw the 0:10:51.040 --> 0:10:53.760 premium rides also were up ninety percent on the quarter 0:10:53.840 --> 0:10:57.880 on quarterbasis. So it's a really well balanced portfolio all 0:10:57.920 --> 0:11:00.480 across the many cities that we're in here today, and 0:11:00.640 --> 0:11:03.560 I think that really speaks just the broad range that 0:11:03.600 --> 0:11:06.960 we have in terms of pricing capacity for our user base. 0:11:07.000 --> 0:11:09.600 They can enter through more of an affordable rights or 0:11:09.679 --> 0:11:12.720 more the premium rights at their choice, despite also some 0:11:12.840 --> 0:11:16.480 of the macros that we we're seeing in Southeast Asia now. 0:11:16.559 --> 0:11:19.240 Also if you look at food delivery, very very similar 0:11:19.240 --> 0:11:22.080 also that we saw, we saw a verial balanced portfolio 0:11:22.120 --> 0:11:25.120 between what our saber and also's priority delivery. 0:11:25.160 --> 0:11:29.600 Also on the technology side, you have AI powered concierge 0:11:29.640 --> 0:11:32.679 and you've introduced the ability to split the fare if 0:11:32.720 --> 0:11:36.120 you're riding with friends. The big question is did that 0:11:36.480 --> 0:11:40.280 bring new users to the platforms? Is there anything tangible there? 0:11:41.600 --> 0:11:44.720 Yeah, Well, we introduced these new product group rights where 0:11:44.760 --> 0:11:48.600 you can share your right with friends split the bill effectively. 0:11:48.760 --> 0:11:50.960 We had it actually in a food delivery business and 0:11:51.000 --> 0:11:54.440 we reported across through our rights and actually that really 0:11:54.520 --> 0:11:59.680 helped some of the affordability as friends we're just grouping 0:11:59.760 --> 0:12:02.160 right on the way home, are going to work or 0:12:02.240 --> 0:12:05.800 going to a party, etc. And that really also helped 0:12:06.120 --> 0:12:10.400 the affordable rights part of our business. And that's great, 0:12:10.840 --> 0:12:14.600 But also at the same time, our Airport rights also 0:12:14.760 --> 0:12:18.720 was also very strong in the quarter is despite some 0:12:18.800 --> 0:12:23.280 of those traveler impacted from cancel flights coming out of 0:12:23.280 --> 0:12:26.480 the Middle East. So it's a very very strong que too, 0:12:26.559 --> 0:12:28.439 despite some of these challenges. 0:12:28.960 --> 0:12:32.040 Peter, just to end the food delivery business in Southeast 0:12:32.080 --> 0:12:35.360 Asia is as face right in terms of competition. There 0:12:35.400 --> 0:12:38.640 are the existing players, your new entrants coming. What is 0:12:38.679 --> 0:12:41.160 your plan to kind of keep ahead there. 0:12:41.200 --> 0:12:44.600 On the tech side, we're going to get you a 0:12:44.600 --> 0:12:49.760 double down ed on technology and also featuring a lot 0:12:49.800 --> 0:12:53.200 of the new products around AI capability. One of the 0:12:53.240 --> 0:12:56.600 things we are focusing on is on grocery delivery. And 0:12:56.679 --> 0:12:59.599 if you look at our GRABMRD branding portfolio, which is 0:12:59.640 --> 0:13:03.360 really non fret delivery that really grew at fifty four 0:13:03.400 --> 0:13:06.679 percent just from the number of transactions actually was growing 0:13:06.760 --> 0:13:10.400 one point seven times faster than oour food So consumers 0:13:10.400 --> 0:13:14.280 are really starting to embrace grocery delivery in Southeast Asia. 0:13:14.280 --> 0:13:16.800 Here still very early, very nation, but yet we are 0:13:16.800 --> 0:13:19.000 seeing really good momentum, good traction there. 0:13:20.679 --> 0:13:23.520 Grabs c FO Peter Owey back on the show, Thank 0:13:23.520 --> 0:13:26.360 you very much indeed for your time. Another tech top 0:13:26.440 --> 0:13:30.240 story for the first time, Apple exceeded ten billion dollars 0:13:30.240 --> 0:13:34.199 in sales in India, underscoring a widening retail push. Bloomberg's 0:13:34.240 --> 0:13:37.640 Dana Wolman joins us with the details. What's within this 0:13:37.760 --> 0:13:38.559 ten billion dollars? 0:13:38.640 --> 0:13:38.760 Right? 0:13:38.800 --> 0:13:41.560 For a long time, we've been tracking Apple's traction in 0:13:41.600 --> 0:13:44.120 that market. It's a very different economy to others that 0:13:44.160 --> 0:13:45.600 Apple prioritizes. 0:13:45.920 --> 0:13:47.160 Give us all the info we need. 0:13:47.760 --> 0:13:49.880 So in these numbers, which I should say, we're previously 0:13:49.960 --> 0:13:54.720 unreported before Bloomberg reported them, it was the iPhone iPhone 0:13:54.720 --> 0:13:58.120 products that were leading those sales. It turned out that 0:13:58.160 --> 0:14:00.800 MacBooks and iPads were up to but really the iPhone, 0:14:00.800 --> 0:14:02.640 which is of course with the companies most known for, 0:14:03.480 --> 0:14:05.920 was leading that sales. Search up from nine billion in 0:14:05.960 --> 0:14:06.959 the prior fiscal year. 0:14:08.600 --> 0:14:11.400 There's another big report from Bloomberg on Apple, and that 0:14:11.559 --> 0:14:15.120 is that CEO John turnas well CEO as of September 0:14:15.160 --> 0:14:21.240 first incoming CEO has brought in some talent, a leader 0:14:21.320 --> 0:14:24.480 for the management team. But it's somebody that had left 0:14:24.480 --> 0:14:26.560 that had retired. Who are we talking about. 0:14:26.760 --> 0:14:30.200 Yes, so Laura Ligross, who was his lieutenant previously when 0:14:30.240 --> 0:14:33.040 he ran hardware engineering. She was a vice president at 0:14:33.040 --> 0:14:35.320 that level, and it is unusual for Apple to bring 0:14:35.360 --> 0:14:39.120 back retired executives, but it will probably serve John turn 0:14:39.160 --> 0:14:41.640 as well as he settles into this new role, to 0:14:41.920 --> 0:14:46.560 reach towards someone who was so loyal and reliable in 0:14:46.600 --> 0:14:50.120 his previous post. And we don't know too much about 0:14:50.120 --> 0:14:52.040 what she will be doing. She will here too, be 0:14:52.080 --> 0:14:54.160 a vice president, and we know that she'll be working 0:14:54.360 --> 0:14:59.520 in what is essentially across functional, cross disciplinary function, but 0:14:59.560 --> 0:15:03.040 it will go on just beyond her previous realm of 0:15:03.200 --> 0:15:04.200 hardware engineering. 0:15:05.240 --> 0:15:08.440 And I think most people around the world of technology 0:15:08.440 --> 0:15:11.440 will know this. But remind us what is happening on 0:15:11.480 --> 0:15:14.320 September First, the big change in leadership at Apple. 0:15:14.760 --> 0:15:17.160 So Tim Cook is stepping aside, not from the company, 0:15:17.200 --> 0:15:19.480 but he will hand over the rains of CEO and 0:15:19.520 --> 0:15:22.000 he will become executive chairman, where he will focus more 0:15:22.040 --> 0:15:26.760 on things like high level geopolitical relationships with foreign leaders, 0:15:26.760 --> 0:15:29.080 and that will leave the running of the company itself, 0:15:29.120 --> 0:15:31.280 the core business, to mister Turners. 0:15:32.520 --> 0:15:35.200 Then mixt day, a woman who is our consumer technology 0:15:35.320 --> 0:15:38.000 editor at Bloomberg Tech, thank you very much. 0:15:38.120 --> 0:15:39.520 Indeed, let's stay with Apple. 0:15:40.040 --> 0:15:44.040 The company briefly removed the telegram messaging app from its 0:15:44.040 --> 0:15:49.160 app store after finding content that violated a ban on 0:15:49.280 --> 0:15:53.400 child sexual abuse material. An Apple spokesperson said Telegram was 0:15:53.440 --> 0:15:57.600 restored quote after the developer promptly removed the content and 0:15:57.720 --> 0:16:01.120 banned the user who posted it. This year alone, Telegram 0:16:01.120 --> 0:16:04.040 said it removed more than three hundred thousand groups and 0:16:04.160 --> 0:16:10.360 channels related to such materials coming up. China's concerns are 0:16:10.400 --> 0:16:14.520 shifting to America's frontier AI models. What it could mean 0:16:15.240 --> 0:16:30.440 for US and China relations. This is Bloomberg Tech. Let's 0:16:30.440 --> 0:16:32.520 go over to New York now where Bloomberg's You Hire 0:16:32.600 --> 0:16:33.600 and End is standing by. 0:16:33.680 --> 0:16:34.600 You hire it, take it away. 0:16:34.880 --> 0:16:35.440 Thanks Ed. 0:16:35.680 --> 0:16:38.680 It's time now for talking tech. First up, prediction markets 0:16:38.720 --> 0:16:42.800 platform Polymarket is looking for capital out evaluation topping twenty 0:16:42.920 --> 0:16:46.600 billion dollars. According to sources, Polymarket is in talks with 0:16:46.680 --> 0:16:50.120 prospective investors to raise one billion. The move comes just 0:16:50.360 --> 0:16:54.040 months after Polymarket closed an earlier round with investments from 0:16:54.080 --> 0:16:58.680 Heag Fund, d Shaw and Co. Unders underscoring the rapid 0:16:58.760 --> 0:17:02.800 growth of the prediction market its industry, plus Anthropics struck 0:17:02.800 --> 0:17:06.679 a ten billion dollars dear for computing capacity with cloud 0:17:06.760 --> 0:17:11.440 startup Volta infoholdings. According to sources, Volta is a month's 0:17:11.480 --> 0:17:15.119 old infrastructure startup backed by Nvidia and founded by former 0:17:15.240 --> 0:17:19.480 executives from Brookfield's Asset Management. The deal will provide Anthropic 0:17:19.560 --> 0:17:23.520 with computing resources from a data center in Norway managed 0:17:23.560 --> 0:17:27.920 by Volta, and Reuter's reporting that the FCC is drafting 0:17:27.920 --> 0:17:31.359 a ban on imports of some Chinese data center components 0:17:31.440 --> 0:17:35.919 to protect the US industry's infrastructure. The proposed ban on components, 0:17:35.960 --> 0:17:39.639 which hyperscalers, of course heavily rely on to run and 0:17:39.680 --> 0:17:43.480 train AI programs, is aimed at preventing Chinese firms from 0:17:43.520 --> 0:17:47.600 installing malware or stealing data critical to the AI boom 0:17:47.880 --> 0:17:49.240 ed Thank. 0:17:49.119 --> 0:17:49.720 You, Yahira. 0:17:49.840 --> 0:17:53.200 The US China tech rivalry is moving beyond chips. According 0:17:53.240 --> 0:17:57.680 to sources, Officials in Beijing are growing increasingly concerned about 0:17:57.680 --> 0:18:01.560 Anthropics frontier AI models, all ahead of a planned September 0:18:01.600 --> 0:18:05.400 meeting between President Trump and China's Hujingping. Bloombag Senior Tech 0:18:05.480 --> 0:18:08.720 editor Mike Shepherd joins with the latest I mean, the 0:18:08.760 --> 0:18:10.879 direction of travel on this story is slightly different to 0:18:10.880 --> 0:18:13.320 those we've been covering in recent weeks and months, but 0:18:13.359 --> 0:18:17.800 this is China being worried about the leading US frontier 0:18:17.880 --> 0:18:18.920 labs and their models. 0:18:20.160 --> 0:18:23.080 Well, that's right, and what we are seeing is almost 0:18:23.119 --> 0:18:26.400 the other side of the coin. Some of the arguments 0:18:26.400 --> 0:18:30.080 that officials in Beijing are raising really echoes some of 0:18:30.119 --> 0:18:32.800 the arguments that we've heard in previous years from US 0:18:32.840 --> 0:18:36.400 officials and when they've complained about certain tech products, including 0:18:36.520 --> 0:18:39.919 TikTok for example, and the national security risks that they 0:18:40.040 --> 0:18:44.960 pose through data collection and other means of sharing information 0:18:45.200 --> 0:18:48.440 with an adversarial government. In this case, the concern from 0:18:48.520 --> 0:18:52.960 Chinese officials is that Anthropics Mythos and other powerful AI 0:18:53.119 --> 0:18:57.320 models could be used as offensive weapons against their economy 0:18:57.400 --> 0:19:00.720 in some fashion, and they didn't offer any specifics, but 0:19:00.920 --> 0:19:03.320 this is an issue that will be on the table 0:19:03.440 --> 0:19:06.480 very clearly. They have some misgivings over it not having 0:19:06.600 --> 0:19:09.520 access to this model, but those are concerns that were 0:19:09.560 --> 0:19:12.399 shared by a number of US allies in the weeks 0:19:12.440 --> 0:19:16.639 and months after Anthropic made that disclosure that it's Mythos 0:19:16.680 --> 0:19:19.960 system in April was so powerful that it could only 0:19:20.000 --> 0:19:24.240 be shared with a small handful of trusted partners, and 0:19:24.640 --> 0:19:27.520 access has since been expanded, but it's still remained small 0:19:27.840 --> 0:19:29.959 and it has continued. 0:19:29.320 --> 0:19:30.640 To be denied to China. 0:19:30.760 --> 0:19:33.639 Of course, if you go back to when President Trump 0:19:33.760 --> 0:19:38.320 visited China, you know, the hope of America's chip industry 0:19:38.880 --> 0:19:40.719 was that he would get some result for them so 0:19:40.720 --> 0:19:43.879 that they could more freely export lead edge chips to China. 0:19:44.520 --> 0:19:47.560 The America's concern on the chips has been, well, we 0:19:47.560 --> 0:19:50.920 don't want China's military to have access to that technology 0:19:51.680 --> 0:19:53.840 that will help them in their own national interest or 0:19:53.840 --> 0:19:56.919 in their own national security context. What was the net 0:19:57.000 --> 0:19:59.359 result of any of that? Was it discussed in China? 0:19:59.400 --> 0:20:02.760 Will these topics be discussed in September here in the States. 0:20:03.680 --> 0:20:06.320 Well, there will be a meeting ahead of whatever sum 0:20:06.320 --> 0:20:11.080 it takes place between President Donald Trump and his Chinese counterpart, Shijianping, 0:20:11.600 --> 0:20:15.280 and at that the lower level officials, probably cabinet level 0:20:15.359 --> 0:20:18.840 for the US, likely Treasury Secretary Scott Besson, who has 0:20:18.880 --> 0:20:22.479 taken an increasingly point position when it comes to matters 0:20:22.480 --> 0:20:27.760 of artificial intelligence and negotiations more broadly with China. They 0:20:27.800 --> 0:20:30.879 will discuss some of these parameters before the two leaders 0:20:30.920 --> 0:20:34.520 actually sit down here in Washington, and the concerns will 0:20:34.520 --> 0:20:36.920 all be on the table. It will be everything related 0:20:37.280 --> 0:20:40.480 to AI including the chip curbs that the US has 0:20:40.560 --> 0:20:43.760 gradually been easing, but perhaps not to the extent that 0:20:43.880 --> 0:20:46.720 China would want. While the US is allowing sales of 0:20:46.840 --> 0:20:50.520 Nvidia's H two hundreds, for example, to Chinese customers, China 0:20:50.600 --> 0:20:52.520 so far really has not given the green light in 0:20:52.560 --> 0:20:56.639 the other direction for those purchases, so we will see 0:20:56.680 --> 0:20:59.399 some questions raised there. There will also be questions about 0:20:59.560 --> 0:21:04.960 whether Chinese AI companies themselves are engaging in unfair practices. Anthropic, 0:21:05.240 --> 0:21:08.360 for example, has accused Ali Baba, one of China's biggest 0:21:08.400 --> 0:21:11.840 tech companies, of using a process known as distillation, to 0:21:12.040 --> 0:21:16.440 unfairly gain advantage and essentially copy some of their models. 0:21:16.480 --> 0:21:18.880 And of course it's important to note that in singling 0:21:18.920 --> 0:21:22.000 out Anthropic ed, China is pointing to a company that 0:21:22.119 --> 0:21:25.600 does not do business in China, mainly because the CEO, 0:21:25.760 --> 0:21:29.200 Dario Amide has singled out China as a US adversary 0:21:29.240 --> 0:21:32.119 and a threat to national security. So all of this 0:21:32.240 --> 0:21:35.119 dynamic will be on the table as the two sides 0:21:35.200 --> 0:21:39.400 meet before the even before the leaders sit down, we'll 0:21:39.440 --> 0:21:43.000 be wanting to see how they actually negotiate a lot 0:21:43.040 --> 0:21:46.119 of these intense differences over the way Chinese models have 0:21:46.200 --> 0:21:49.200 been developed, and also some of the export and other 0:21:49.320 --> 0:21:52.880 curbs in place, including our rare earthsbanks. 0:21:52.920 --> 0:21:54.560 Mike Sheppard, thank you very much. 0:21:55.080 --> 0:21:56.919 Coming up, we're going to get back to Wall Street's 0:21:57.000 --> 0:22:03.160 expectations for this week's big earnings AMD both coming after 0:22:03.200 --> 0:22:05.600 the bell. Let's go back to Palente, the tech earning 0:22:05.720 --> 0:22:08.480 story of the morning. The stock up twenty seven percent, 0:22:08.880 --> 0:22:11.960 on track for its biggest jump, its best day since 0:22:12.000 --> 0:22:15.680 February of twenty twenty four, three hundred and eighty billion 0:22:15.720 --> 0:22:20.160 dollars now in market. Clap, big rays in sales and 0:22:20.359 --> 0:22:24.000 net income expectations for this year, and it's the US 0:22:24.080 --> 0:22:29.240 commercial business that's driving absolutely all of it. Okay, it's 0:22:29.240 --> 0:22:33.199 halftime here in the beautiful city of San Francisco and 0:22:33.240 --> 0:22:36.359 the Bay Area. Don't go far. This is Bloomberg Tech. 0:22:46.400 --> 0:22:48.919 Welcome back to Bloomberg Tech. There is some momentum in 0:22:48.920 --> 0:22:50.959 technology I'm looking at and as that one hundred up 0:22:50.960 --> 0:22:54.320 for a four straight session, matching the run of gains 0:22:54.320 --> 0:22:57.320 that it saw in that first week of June, two 0:22:57.400 --> 0:22:59.359