WEBVTT - CoreWeave’s Debut Tests Market Appetite for AI and IPOs

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<v Speaker 1>From the heart of where innovation, money and power collide

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<v Speaker 1>in Silicon Valley and beyond. This is Bloomberg Technology with

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<v Speaker 1>Caroline Hide and Ed Lovelow.

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<v Speaker 2>Live from New York and Caroline Hyde and this is

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<v Speaker 2>Bloomberg Technology coming up. All eyes on Corweed's downsized IPO.

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<v Speaker 2>We shared set to begin trading on the NASPAC. We'll

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<v Speaker 2>discuss with Magnetar, Corweed's largest equity holder. This is AI

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<v Speaker 2>capacity concerns remain yet in the midst of the anxiety.

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<v Speaker 2>The race to invest in AI companies has created a

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<v Speaker 2>slate of new billionaires. Will highlight them and US and

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<v Speaker 2>EU tarras are front and center, with the market share

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<v Speaker 2>of Chinese evs punning to a two.

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<v Speaker 3>Year low across Europe.

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<v Speaker 2>But first we check in on these markets, which are

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<v Speaker 2>ever more in sell off mode. To end this week

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<v Speaker 2>off by almost two percent on the Nasdaq one hundred

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<v Speaker 2>and when you're looking at the points drags lower and

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<v Speaker 2>the fact that we're back to the worst week since

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<v Speaker 2>March the fourteenth, it is the who's who of the

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<v Speaker 2>Magnificent seven that drag us down in terms of key

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<v Speaker 2>points to the lower it is Amazon Meta, the likes

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<v Speaker 2>of Microsoft of course Apple even amongst some of the

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<v Speaker 2>biggest drags today.

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<v Speaker 3>But we want to put this in the light of

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<v Speaker 3>the IPO that we have.

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<v Speaker 2>Of course, on this day, core Weave, one of its

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<v Speaker 2>biggest key clients is Microsoft.

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<v Speaker 3>It's off by more than two percent.

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<v Speaker 2>Amazon, of course key exposure to these hyperscalers, which is

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<v Speaker 2>a cures for anxiety in video off by one point

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<v Speaker 2>six percent, which invests an awful lot now into core Weave,

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<v Speaker 2>but also of course as a supplier of its chips

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<v Speaker 2>across the border in the red.

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<v Speaker 3>Let's get too.

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<v Speaker 2>Core Weave after it raised one and a half billion

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<v Speaker 2>dollars in its IPO, The shares are expected to begin

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<v Speaker 2>training today on the Nasdaq. Look, the latest is that

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<v Speaker 2>they priced at forty dollars. We're seeing that perhaps at

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<v Speaker 2>the moment they're indicated to open at forty five dollar.

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<v Speaker 2>Katie Ruth joins us. Now, this is such a litmus

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<v Speaker 2>test not only for the AI trade, but the IPO

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<v Speaker 2>trade too.

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<v Speaker 4>Exactly, it's been really tough few years for tech IPOs,

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<v Speaker 4>and you know, this is supposed to be the one

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<v Speaker 4>that was going to kick off a slate of you know,

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<v Speaker 4>maybe seven or eight venture backed IPOs for Q two

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<v Speaker 4>and they're all watching this to see how it's going,

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<v Speaker 4>and so far it's not going well at all. They

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<v Speaker 4>downsize the size of the IPO considerably, and they price

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<v Speaker 4>significantly below the range. Both of these things are generally

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<v Speaker 4>seen as very negative indicators.

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<v Speaker 2>So instead of raising four billion dollars, which they're originally

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<v Speaker 2>aimed to, but just a month ago they raised one

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<v Speaker 2>and a half billion, all of this is to continue

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<v Speaker 2>to put more AI data centers out there, but also it's.

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<v Speaker 3>About paying down their debt.

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<v Speaker 2>And this is perhaps one of the idiosyncratic risks that

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<v Speaker 2>it comes to core Weave because it is a unique

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<v Speaker 2>asset to be investing into.

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<v Speaker 4>Sure, and so you know, it's hard to say if

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<v Speaker 4>really this is skepticism about core Weave itself or about

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<v Speaker 4>the marketing, and so it could be yeah, concerns about

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<v Speaker 4>their debt, concerns about you know, maybe even AIM getting overvalued.

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<v Speaker 4>I mean, certainly there's a lot of investor enthusiasm about

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<v Speaker 4>AI broadly speaking still, but maybe they get maybe they

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<v Speaker 4>thought that there would be even more enthusiasm than there is.

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<v Speaker 4>You know, it's hard to say what the market's concerns

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<v Speaker 4>are right now.

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<v Speaker 3>But you know, I mean.

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<v Speaker 4>It's tied to a heart company like in Video, and

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<v Speaker 4>you know it's going public at a time when last

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<v Speaker 4>year's tech ipeas actually went fairly well.

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<v Speaker 3>Timing seems to be the brutal issue here.

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<v Speaker 2>In Vidia had to come and step in basically and

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<v Speaker 2>say I will take two hundred and.

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<v Speaker 3>Fifty million dollars of this.

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<v Speaker 2>I will secure and put a forty dollars price bottom

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<v Speaker 2>in on it because I'm a key client and equally

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<v Speaker 2>I'm a key investor. They've got about six percent of

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<v Speaker 2>the holding of the equity.

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<v Speaker 3>That is such a bad signal. Who else is impacted

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<v Speaker 3>by this?

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<v Speaker 2>Who are the vcs that got in late on this

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<v Speaker 2>particular name?

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<v Speaker 4>Well so so Magnetar Hedge Fund is actually the largest

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<v Speaker 4>shareholder here.

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<v Speaker 3>People in early didn't they They've been sure, But.

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<v Speaker 4>You also have other names like Koto is involved. But interestingly,

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<v Speaker 4>of the top shareholders that I looked at the cap table,

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<v Speaker 4>there were no VC names above five percent in that ownership.

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<v Speaker 4>And so while it is venture backed, certainly you know

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<v Speaker 4>some unusual players here are the owners.

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<v Speaker 2>Some crossover funds, some strategic investors. To say the least,

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<v Speaker 2>Katie Ruff such a great job across.

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<v Speaker 3>The venture sphere.

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<v Speaker 2>You want to tune in later to this out for

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<v Speaker 2>our conversation with Corweed's largest institutional investor, that is Magnetar.

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<v Speaker 2>The senior managing partner, David Snydermann is going to be joining.

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<v Speaker 3>Us to discuss.

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<v Speaker 2>But first let's get back to the markets and what

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<v Speaker 2>this signals for epec Oskar Deshkea is with US senior

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<v Speaker 2>market analysts at Swiss Quote, all eyes from the public

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<v Speaker 2>markets are on this listing, not just private investment that matters,

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<v Speaker 2>but the ongoing AI narrative is kind of in the

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<v Speaker 2>breach here. Oh, I think we have a technical issue.

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<v Speaker 3>Are you muted?

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<v Speaker 5>Oh?

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<v Speaker 3>How technology fails us at times.

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<v Speaker 2>So we'll get back to Epek in just a moment,

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<v Speaker 2>but we want to be discussing with her just how

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<v Speaker 2>we've got this pushes and pulls as to ultimately what

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<v Speaker 2>the demand side is for AI capacity at the moment, but.

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<v Speaker 3>Also demand side for AI generative products.

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<v Speaker 2>Let's just bring you a tweet that I noticed said post,

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<v Speaker 2>as I'll say, coming from one samah Altman, who's been

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<v Speaker 2>discussing the fact that we're also rushing to use the

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<v Speaker 2>latest formation of CHATCHPT and the image generator that we're seeing,

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<v Speaker 2>as he calls it, a melting of.

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<v Speaker 3>GPUs at the moment, so much demand.

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<v Speaker 2>For his compute capacity. Let's get back to epek because

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<v Speaker 2>here in lies the quandary for the market. We are

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<v Speaker 2>questioning AI infrastructure, whether we're in a bubble, and whether

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<v Speaker 2>or not we should therefore be backing call we ive

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<v Speaker 2>or not.

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<v Speaker 3>On the other side, you've got Sam Altman.

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<v Speaker 2>Seeing such success for the latest product announcement from chat

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<v Speaker 2>GPT that his GPUs are melting.

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<v Speaker 3>So what's your take right now?

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<v Speaker 5>I mean, yes, call.

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<v Speaker 3>Means are pure.

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<v Speaker 5>It's clearly not coming at the right time in terms

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<v Speaker 5>of markets at the tite because it's coming at a

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<v Speaker 5>time when investors are increasingly worried about whether there is

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<v Speaker 5>an over.

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<v Speaker 6>Cell light in AI data centers and AI SELP light overall,

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<v Speaker 6>while demand looks like it's not growing as fast as

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<v Speaker 6>many have projected. But on the other hand, the news

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<v Speaker 6>actually come in and they are encouraging. There is a

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<v Speaker 6>great adoption of AI in technology, and this adoption is

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<v Speaker 6>also extending towards the non technology focus off the market.

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<v Speaker 6>It is also happening in China across.

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<v Speaker 1>The world, so yes, there is.

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<v Speaker 6>There are a lot of doubts about whether the AI

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<v Speaker 6>adoption is happening at the desire speed. On one hand,

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<v Speaker 6>the big technology companies, they keep ensuring the markets.

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<v Speaker 7>And investors that this is happening, and on the other

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<v Speaker 7>hand we see some slowing in the pace of in

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<v Speaker 7>the pace what you expects to be a strong realth

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<v Speaker 7>in terms of quantity valuation.

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<v Speaker 5>So there are a lot of guts right now that

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<v Speaker 5>I bore you as actually going public in the middle

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<v Speaker 5>of a jungle of doubt.

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<v Speaker 2>EUPEC will have to leave it there with some technical

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<v Speaker 2>difficulty with your sam but we thank you so much

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<v Speaker 2>for your perspective. Ipec us a guest care of course,

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<v Speaker 2>happy weekend US Swiss quote coming up the tech industry

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<v Speaker 2>warning President Trump's tarifs could undermine his own policy agenda.

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<v Speaker 2>Jason Oxman from the Information Technology Industry Council is going

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<v Speaker 2>to be joining us on that this.

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<v Speaker 3>Is bloomberg technology.

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<v Speaker 2>The tech industry has been warning that trading restrictions on

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<v Speaker 2>chips passed during the Biden administration, the so called AI

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<v Speaker 2>Diffusion Rule, but it could hurt US companies at the

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<v Speaker 2>time when tariff uncertainty is already creating headwinds. Jason Oxman,

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<v Speaker 2>President and CEO of the Information Technology Industry Council, is

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<v Speaker 2>the person to talk to about this because we know

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<v Speaker 2>that Nvidia and Oracle are coming and joining your industry

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<v Speaker 2>group at the moment, hoping that you'll help navigate a

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<v Speaker 2>policy quandary that's upon us right now. Ultimately, they don't

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<v Speaker 2>want the AI diffusion rule. Why is it a bad thing?

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<v Speaker 8>Jason, Well, it's a good concept and the execution is

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<v Speaker 8>enormously complex. As you noted, this was a rule that

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<v Speaker 8>was adopted in the waning days of the Biden administration,

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<v Speaker 8>and under normal circumstances, our communication of the Trump administration

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<v Speaker 8>would be that Biden administration rules need to be rethought

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<v Speaker 8>and redone and this is one of those examples. The

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<v Speaker 8>challenge here is that the concept of denying the Chinese

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<v Speaker 8>Communist Party and the Chinese Army access to the latest

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<v Speaker 8>generation of AI technology for American companies, well, that's a

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<v Speaker 8>good idea, it's a national security issue, and we want

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<v Speaker 8>to do it in the right way. But the Biden

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<v Speaker 8>administration did it in the wrong way. They did it

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<v Speaker 8>without consulting industry, They did it without coming up with

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<v Speaker 8>a roadmap for success, and perhaps most importantly, they did

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<v Speaker 8>it by punishing American allies around the world by denying

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<v Speaker 8>them access to AI technology at the same time. So

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<v Speaker 8>what we're asking the Trump administration to do, Let's start over.

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<v Speaker 8>Let's do this again. Let's consult with industry. Let's get

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<v Speaker 8>this rule done in the right way.

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<v Speaker 2>Did they really not consult industry at all? Or did

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<v Speaker 2>they just consult the wrong people in industry? From your perspective, I.

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<v Speaker 8>Know it's easy for industry to say we weren't consulted properly.

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<v Speaker 8>In this case, it is honestly the case that they

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<v Speaker 8>did not.

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<v Speaker 9>Consult us at all.

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<v Speaker 8>And this rule was really it was released seven days

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<v Speaker 8>before the end of the Biden administration. They really wanted

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<v Speaker 8>to rush it out the door. They've been working on

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<v Speaker 8>in a while, they ran out of time, and they

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<v Speaker 8>did it without consulting industry. And the reason industry consultation

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<v Speaker 8>is important is not just because we think we have

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<v Speaker 8>good ideas. We do, but it's more important to make

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<v Speaker 8>sure that the rule is done correctly so that American

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<v Speaker 8>industry is not punished. And the most important goal of

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<v Speaker 8>ensuring that America continues to dominate AI worldwide, which is

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<v Speaker 8>a key tenet of the Trump administration. That's what we

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<v Speaker 8>want to make sure happens when the rule is redone.

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<v Speaker 2>So let's think about a more perfected rule here. As

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<v Speaker 2>you say, the ultimate goal of ensuring that very sophisticated

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<v Speaker 2>chips doesn't get into Chinese hands, for example, you think

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<v Speaker 2>is the right one. How do we get there without

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<v Speaker 2>ensure hurting the middle men?

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<v Speaker 3>That there wrong middlemen to hurt.

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<v Speaker 9>Yeah, I think there are two things here.

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<v Speaker 8>One is the way in which the rule was put

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<v Speaker 8>place put in place by the Biden administration. It actually

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<v Speaker 8>imposes caps on every country in the world and their

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<v Speaker 8>ability to get access to AI technology. Seventeen countries in

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<v Speaker 8>the EU are in the so called Tier two. There

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<v Speaker 8>are three tiers here. Tier three means anybody can get

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<v Speaker 8>whatever they want. Tier two means there are restrictions Tier

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<v Speaker 8>one and you can't get anything. Tier two, for seventeen

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<v Speaker 8>countries in the EU means they're capped on their ability

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<v Speaker 8>to buy AI technology from the US. Why not because

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<v Speaker 8>we're worried about them, but because we're worried about enforcement mechanisms.

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<v Speaker 8>So what the Trump administration could do is work and

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<v Speaker 8>negotiate with our allies around the world to make sure

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<v Speaker 8>those enforcement mechanisms are in place to deny the Chinese

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<v Speaker 8>Communist Party access to this technology. That's the first thing

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<v Speaker 8>I think is important. The second thing I think is important,

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<v Speaker 8>and again this is why industry consultation is important, is

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<v Speaker 8>China is a market that is huge. It's one and

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<v Speaker 8>a half billion people. A lot of stuff is made there,

0:11:06.720 --> 0:11:08.800
<v Speaker 8>a lot of stuff is sold there. If we deny

0:11:09.000 --> 0:11:12.679
<v Speaker 8>China access to all American technology, the only message that

0:11:12.720 --> 0:11:15.240
<v Speaker 8>delivers to China and frankly to other countries around the

0:11:15.280 --> 0:11:17.880
<v Speaker 8>world is maybe China should make this technology because they're

0:11:17.920 --> 0:11:19.719
<v Speaker 8>going to make it available without restriction to the rest

0:11:19.760 --> 0:11:21.200
<v Speaker 8>of the world. So we want to make sure we

0:11:21.240 --> 0:11:26.840
<v Speaker 8>don't ironically incentivize the Chinese technology industry to start making

0:11:26.880 --> 0:11:30.600
<v Speaker 8>inroads and harm American interests around the world as a result.

0:11:30.720 --> 0:11:33.840
<v Speaker 2>Jason has that holes already bolted from what we see

0:11:33.840 --> 0:11:36.240
<v Speaker 2>with deep seek. That was in the case of lack

0:11:36.280 --> 0:11:39.160
<v Speaker 2>of access to sophisticated chips, they found a workaround.

0:11:39.600 --> 0:11:41.120
<v Speaker 8>Well they did, and I think there are a lot

0:11:41.120 --> 0:11:43.760
<v Speaker 8>of questions about deep seak and just how well it

0:11:43.840 --> 0:11:46.679
<v Speaker 8>was put together, how functional it is, and whether it

0:11:46.720 --> 0:11:50.120
<v Speaker 8>was programmed in part with American technology, and we'll see

0:11:50.160 --> 0:11:52.600
<v Speaker 8>more about that going forward. But I think there's no

0:11:52.720 --> 0:11:56.120
<v Speaker 8>question that US technology isn't dominant and doesn't continue to

0:11:56.160 --> 0:11:58.839
<v Speaker 8>be dominant. The real only open question is how long

0:11:58.840 --> 0:12:02.240
<v Speaker 8>will that last? And if we deny American technology companies

0:12:02.320 --> 0:12:06.360
<v Speaker 8>access to international markets and partners, that handicaps our ability

0:12:06.400 --> 0:12:08.880
<v Speaker 8>to continue positioning the United States as a world.

0:12:08.800 --> 0:12:09.520
<v Speaker 9>Leader in AI.

0:12:09.760 --> 0:12:12.560
<v Speaker 2>Jason, it's not just the AI diffusion rule that has

0:12:12.640 --> 0:12:17.960
<v Speaker 2>many investors concerned. It's also just tariffs more bluntly coming

0:12:18.000 --> 0:12:20.480
<v Speaker 2>in as a weapon. We've just seen what's being Oh,

0:12:20.520 --> 0:12:21.960
<v Speaker 2>I think we've just got some breaking news that I

0:12:22.000 --> 0:12:24.640
<v Speaker 2>want to go to that President Trump and indeed now

0:12:24.679 --> 0:12:27.480
<v Speaker 2>the leader of Canada, Karney, have agreed to meet after

0:12:27.679 --> 0:12:29.160
<v Speaker 2>Canada's election, where.

0:12:29.240 --> 0:12:30.559
<v Speaker 3>Mark Carney is now the leader.

0:12:30.600 --> 0:12:32.080
<v Speaker 2>So just a bit of breaking news there from the

0:12:32.080 --> 0:12:35.360
<v Speaker 2>geopolitical front with Trump and Carney meeting, Jason. And this

0:12:35.440 --> 0:12:37.440
<v Speaker 2>is to do with that very thing of tariffs. At

0:12:37.480 --> 0:12:39.680
<v Speaker 2>the moment, we've seen how autos have been in the

0:12:39.720 --> 0:12:43.000
<v Speaker 2>eye of the storm when it comes to Canadian tariffs,

0:12:43.000 --> 0:12:46.680
<v Speaker 2>when it comes to Mexican tariffs. But we understand that

0:12:46.720 --> 0:12:49.200
<v Speaker 2>semiconductors are going to be coming into place. When we

0:12:49.280 --> 0:12:52.880
<v Speaker 2>think of Liberation Day in early April, how much is

0:12:52.920 --> 0:12:54.880
<v Speaker 2>that a fixation of the market.

0:12:55.360 --> 0:12:57.880
<v Speaker 8>Well, the President has suggested the semiconductors perhaps won't be

0:12:57.880 --> 0:12:59.920
<v Speaker 8>subject to tariffs, and I think that this raises the

0:13:00.160 --> 0:13:01.920
<v Speaker 8>broader question of certainty for business.

0:13:01.960 --> 0:13:02.960
<v Speaker 9>That's what business needs.

0:13:03.280 --> 0:13:06.000
<v Speaker 8>It needs certainty. And we're only what nine weeks into

0:13:06.000 --> 0:13:09.600
<v Speaker 8>the Trump administration, A lot has happened. He's moving very quickly,

0:13:09.840 --> 0:13:13.200
<v Speaker 8>and the tech industry is responding very favorably to the

0:13:13.240 --> 0:13:16.719
<v Speaker 8>Trump administration's call, the president's call to bring manufacturing back

0:13:16.720 --> 0:13:19.880
<v Speaker 8>to America. The very first business announcement made in the

0:13:19.880 --> 0:13:22.440
<v Speaker 8>White House, literally less than twenty four hours after President

0:13:22.480 --> 0:13:26.440
<v Speaker 8>Trump's inauguration, was three ITI member companies, SoftBank, Oracle and

0:13:26.480 --> 0:13:30.240
<v Speaker 8>Open Ai announcing a five hundred billion dollar manufacturing project

0:13:30.280 --> 0:13:32.960
<v Speaker 8>in the United States. We've seen TSMC announce another one

0:13:33.000 --> 0:13:36.600
<v Speaker 8>hundred billion dollar investment, Apple five hundred billion dollars. Even

0:13:36.640 --> 0:13:41.360
<v Speaker 8>international companies Siemens and Soft and Schneider Electric have announced

0:13:41.480 --> 0:13:44.199
<v Speaker 8>hundred multi hundred million dollar investments just in the last

0:13:44.240 --> 0:13:44.800
<v Speaker 8>few days.

0:13:44.920 --> 0:13:45.600
<v Speaker 9>So it is happening.

0:13:45.679 --> 0:13:47.800
<v Speaker 8>The tech industry really more than any other industry is

0:13:47.840 --> 0:13:50.960
<v Speaker 8>responding to the President's call. But to your question about tariffs,

0:13:51.000 --> 0:13:54.000
<v Speaker 8>I think it's really about certainty. Tariffs can be a tool,

0:13:54.480 --> 0:13:57.040
<v Speaker 8>and we'd like to see the President continue to exercise

0:13:57.120 --> 0:13:59.840
<v Speaker 8>his skill as a business negotiator, which he does very

0:13:59.880 --> 0:14:03.160
<v Speaker 8>well well and strike deals and trade deals in particular

0:14:03.320 --> 0:14:06.720
<v Speaker 8>are important. Tariffs are paths to trade deals. The President

0:14:06.800 --> 0:14:09.560
<v Speaker 8>during his first administration did a terrific job of entering

0:14:09.559 --> 0:14:12.160
<v Speaker 8>into trade deals around the world with China, with Mexico,

0:14:12.200 --> 0:14:14.880
<v Speaker 8>with Canada, with Japan, and others. We'd like to see

0:14:14.880 --> 0:14:17.760
<v Speaker 8>those trade deal negotiations move forward and replace the need

0:14:17.800 --> 0:14:20.440
<v Speaker 8>for tariffs so we can have that business certainty and

0:14:20.520 --> 0:14:24.480
<v Speaker 8>access to US markets and international markets that American companies need.

0:14:24.960 --> 0:14:27.680
<v Speaker 2>Jason Oxman, thanks so much for joining Usday from the

0:14:27.720 --> 0:14:29.560
<v Speaker 2>Information Technology Industry Council.

0:14:30.240 --> 0:14:31.680
<v Speaker 3>Meanwhile, as time now for.

0:14:31.680 --> 0:14:35.080
<v Speaker 2>Talking Tech and First Up, India reveals a two point

0:14:35.120 --> 0:14:38.720
<v Speaker 2>seven billion dollar plan to subsidize the production of electronics components,

0:14:38.840 --> 0:14:41.520
<v Speaker 2>covering parts using displays and camera modules.

0:14:41.080 --> 0:14:42.000
<v Speaker 3>And some circuit boards.

0:14:42.240 --> 0:14:44.600
<v Speaker 2>The Indian government says the program is expected to attract

0:14:44.600 --> 0:14:47.120
<v Speaker 2>ne lyast seven billion dollars in investment and could help

0:14:47.160 --> 0:14:51.080
<v Speaker 2>some companies pivot away from China plus shares of Oracle.

0:14:51.280 --> 0:14:53.240
<v Speaker 2>They're trading on the downside today along with the rest

0:14:53.280 --> 0:14:55.400
<v Speaker 2>of the market. But the US Department and Defense said

0:14:55.600 --> 0:14:59.200
<v Speaker 2>it's terminating a plan to use Oracle software in maintaining

0:14:59.200 --> 0:15:01.440
<v Speaker 2>its civilian work force as part of the Pentagon's cost

0:15:01.440 --> 0:15:04.840
<v Speaker 2>cutting efforts. Defense Secretary Pete Hegseth says the program ran

0:15:05.000 --> 0:15:07.200
<v Speaker 2>six years behind schedule and was more than.

0:15:07.080 --> 0:15:08.720
<v Speaker 3>Two or eighty million dollars over budget.

0:15:09.400 --> 0:15:12.680
<v Speaker 2>Speaking on Fox News, Elon Musk says his DOGE team

0:15:13.000 --> 0:15:14.920
<v Speaker 2>is well on the way to slash the US deficit,

0:15:15.000 --> 0:15:17.960
<v Speaker 2>and we'd out forward to listen who.

0:15:17.960 --> 0:15:20.080
<v Speaker 9>Reduce the deficit by a trillion dollars.

0:15:20.320 --> 0:15:23.800
<v Speaker 10>The government is not efficient and there's a lot of

0:15:24.520 --> 0:15:26.840
<v Speaker 10>a lot of waste forward. So we feel confident that

0:15:27.200 --> 0:15:32.760
<v Speaker 10>fifteen percent reduction can can be done without affecting any

0:15:33.240 --> 0:15:35.280
<v Speaker 10>of the critical government services.

0:15:35.720 --> 0:15:37.960
<v Speaker 2>But the swift action by President Trump and DOGE to

0:15:38.080 --> 0:15:41.360
<v Speaker 2>fireworkers cut costs at the IRS, for example, are creating

0:15:41.560 --> 0:15:42.720
<v Speaker 2>temptation amongst.

0:15:42.440 --> 0:15:45.120
<v Speaker 3>Taxpayers to cheat. Tax professionals and.

0:15:45.120 --> 0:15:48.000
<v Speaker 2>Former IRS commissioners are sounding the alarm bells, saying the

0:15:48.000 --> 0:15:50.840
<v Speaker 2>administration's actions could actually embolden people to commit forward on

0:15:50.880 --> 0:15:51.840
<v Speaker 2>their taxes.

0:15:51.760 --> 0:15:52.560
<v Speaker 3>Or simply not paid.

0:16:00.560 --> 0:16:04.560
<v Speaker 2>Chinese EV automakers actually saw a market shared drop to

0:16:04.600 --> 0:16:06.800
<v Speaker 2>a two year low in Europe. It'scording to research a

0:16:06.880 --> 0:16:09.280
<v Speaker 2>data force, less than seven percent of EV's registered in

0:16:09.320 --> 0:16:12.360
<v Speaker 2>February were made in China. That's despite an overall jump

0:16:12.400 --> 0:16:16.480
<v Speaker 2>in European EV demand. Blomberg spoke with Secret Devies, director

0:16:16.520 --> 0:16:19.680
<v Speaker 2>General of the European Automobile Manufacturer's Association, about the impact

0:16:19.680 --> 0:16:21.480
<v Speaker 2>of tariffs on the auto's industry.

0:16:22.520 --> 0:16:25.680
<v Speaker 11>This comes on top of already very challenging times. We're

0:16:25.680 --> 0:16:28.240
<v Speaker 11>at a watershed moment or industry in the midst of

0:16:28.240 --> 0:16:32.760
<v Speaker 11>a huge transformation and fierce competition, and yeah, this is

0:16:32.920 --> 0:16:37.840
<v Speaker 11>very disruptive and we really hope this can still be averted.

0:16:38.960 --> 0:16:41.080
<v Speaker 3>For more, Let's go to Boomberg's Anthony Palazzo.

0:16:41.520 --> 0:16:45.520
<v Speaker 2>Anthony, I thought that Chinese EV makers were being brought

0:16:45.560 --> 0:16:47.760
<v Speaker 2>up a storm over in the UK and Europe, but

0:16:47.840 --> 0:16:49.840
<v Speaker 2>it seems as though the tarifs having an impact.

0:16:51.320 --> 0:16:52.160
<v Speaker 9>Yes, that's right.

0:16:53.120 --> 0:16:56.840
<v Speaker 12>In with all the news around President Trump and his chariffs,

0:16:57.200 --> 0:17:00.280
<v Speaker 12>it's easy to forget that there's trade tension between the

0:17:00.360 --> 0:17:07.760
<v Speaker 12>EU and China, and uh yeah, so so the the

0:17:07.880 --> 0:17:12.520
<v Speaker 12>Chinese companies have been really making really making an impact

0:17:12.520 --> 0:17:13.159
<v Speaker 12>here in Europe.

0:17:13.640 --> 0:17:13.760
<v Speaker 13>Uh.

0:17:14.200 --> 0:17:17.720
<v Speaker 12>They've been doing it for probably the past five years,

0:17:18.800 --> 0:17:21.399
<v Speaker 12>and all of that, all of that came to a

0:17:21.480 --> 0:17:24.639
<v Speaker 12>halt around the middle of last year when the EU

0:17:24.760 --> 0:17:29.280
<v Speaker 12>introduced tariffs on Chinese made electric vehicles.

0:17:30.200 --> 0:17:31.800
<v Speaker 9>And that's put it, that's put a.

0:17:31.800 --> 0:17:35.960
<v Speaker 12>Dent in in that growth and really held it at

0:17:36.000 --> 0:17:38.520
<v Speaker 12>a stalling rate for about the last past six months.

0:17:39.400 --> 0:17:43.400
<v Speaker 12>And UH for February we see that it's actually gone down.

0:17:43.720 --> 0:17:43.840
<v Speaker 14>UH.

0:17:44.119 --> 0:17:47.320
<v Speaker 9>And as you said, despite.

0:17:48.960 --> 0:17:51.879
<v Speaker 12>An increase in the number of EV's being sold in Europe,

0:17:52.160 --> 0:17:55.600
<v Speaker 12>the number of Chinese made EV's has gone down.

0:17:56.040 --> 0:17:58.480
<v Speaker 2>What's interesting is we know Tesla hasn't been benefiting either,

0:17:58.520 --> 0:18:01.159
<v Speaker 2>the salesn't been on the downwards to jectory. But is

0:18:01.160 --> 0:18:04.960
<v Speaker 2>it local European makers of evs that do well therefore?

0:18:06.520 --> 0:18:09.040
<v Speaker 12>Right, And that's that's the other irony of this whole

0:18:09.280 --> 0:18:13.600
<v Speaker 12>situation is that Europeans have largely started to turn her

0:18:13.840 --> 0:18:16.840
<v Speaker 12>away from Tesla. They don't like the way Elon Musk

0:18:17.600 --> 0:18:21.359
<v Speaker 12>has been conducting himself and UH intervening in German politics

0:18:22.520 --> 0:18:24.960
<v Speaker 12>and UH, and so that created.

0:18:24.640 --> 0:18:28.600
<v Speaker 9>An opening in the Chinese automakers.

0:18:27.960 --> 0:18:31.199
<v Speaker 12>By and large have not been able to to fulfill it.

0:18:31.720 --> 0:18:32.000
<v Speaker 9>Uh.

0:18:32.080 --> 0:18:36.280
<v Speaker 12>And at the same time, the European automakers have come

0:18:36.320 --> 0:18:41.320
<v Speaker 12>out with some new models. There's some smaller ones made

0:18:41.320 --> 0:18:44.760
<v Speaker 12>by Renault, there's a there's a larger one made by.

0:18:46.640 --> 0:18:50.040
<v Speaker 9>By Volkswagen. That's that's really come out and done well.

0:18:50.680 --> 0:18:56.680
<v Speaker 12>And so the local carmakers have have really done well.

0:18:57.280 --> 0:19:00.720
<v Speaker 2>Anthony Platzo, thanks for the update and all things ev Meanwhile,

0:19:00.960 --> 0:19:04.480
<v Speaker 2>returning to the White House is dismissing the disclosure of

0:19:04.520 --> 0:19:07.240
<v Speaker 2>who the attack plans being exposed in messages through.

0:19:07.080 --> 0:19:08.640
<v Speaker 3>Signal as a glitch.

0:19:08.920 --> 0:19:11.760
<v Speaker 2>But experts are arguing information in those chats could have

0:19:11.880 --> 0:19:15.640
<v Speaker 2>given priceless information to foreignniversaries, you know. Most Jake Breiberg

0:19:15.760 --> 0:19:19.080
<v Speaker 2>is here to really articulate what is it within these

0:19:19.080 --> 0:19:25.080
<v Speaker 2>messages that are clearly detrimental to us and indeed that

0:19:25.160 --> 0:19:26.840
<v Speaker 2>spies kind of wait to get their hands on.

0:19:27.280 --> 0:19:29.600
<v Speaker 15>Yeah, it's a good question, and it takes really sort

0:19:29.600 --> 0:19:32.960
<v Speaker 15>of a close parting of these messages. It's something we've

0:19:33.000 --> 0:19:36.640
<v Speaker 15>seen you know, current and former security officials doing and

0:19:36.840 --> 0:19:40.680
<v Speaker 15>one of the most important things that has raised questions,

0:19:41.520 --> 0:19:44.960
<v Speaker 15>you know about the security. Here is this reference from

0:19:45.160 --> 0:19:50.879
<v Speaker 15>National Security advisor Mike Walls to sort of surveillance or

0:19:50.920 --> 0:19:56.320
<v Speaker 15>some type of view into the movements of a particular

0:19:56.520 --> 0:20:00.440
<v Speaker 15>HOOTI sort of you know, military.

0:20:00.080 --> 0:20:01.480
<v Speaker 3>Leader, top missile guy.

0:20:01.680 --> 0:20:04.520
<v Speaker 15>Yes, exactly who Waltz refers to as a top missile guy.

0:20:05.200 --> 0:20:06.199
<v Speaker 11>And what.

0:20:08.240 --> 0:20:13.080
<v Speaker 15>He said, as suggests when we talk to current informer

0:20:13.359 --> 0:20:18.119
<v Speaker 15>intelligence officials, is that the US had some sort of oversight,

0:20:18.600 --> 0:20:23.679
<v Speaker 15>whether it be UH signals intelligence or aerial oversight, or

0:20:23.680 --> 0:20:26.720
<v Speaker 15>actually someone on the ground who was observing this person,

0:20:27.200 --> 0:20:30.880
<v Speaker 15>and that that's a really valuable clue to foreign adversaries

0:20:30.920 --> 0:20:33.679
<v Speaker 15>who might be trying to understand US military operations.

0:20:33.840 --> 0:20:36.640
<v Speaker 2>Meanwhile, Attorney General Panbonni goes on time and time again

0:20:36.640 --> 0:20:41.480
<v Speaker 2>to say sensitive information not classified was inadvertently released. We

0:20:41.560 --> 0:20:43.840
<v Speaker 2>go back to the technology side of all of this, though,

0:20:43.920 --> 0:20:46.720
<v Speaker 2>Is it music to adversaries? Is that signal is being

0:20:46.800 --> 0:20:47.520
<v Speaker 2>used whatsoever?

0:20:48.240 --> 0:20:51.520
<v Speaker 15>I think it probably is, especially for this type of

0:20:52.280 --> 0:20:57.040
<v Speaker 15>highly sensitive operational information. The thing to understand is that

0:20:57.160 --> 0:21:01.080
<v Speaker 15>while signal makes it you know, strong and quite credible,

0:21:01.160 --> 0:21:05.359
<v Speaker 15>crolaims about its end to end encryption, where that where

0:21:05.400 --> 0:21:09.480
<v Speaker 15>that information ends is on a device, and if that

0:21:09.560 --> 0:21:12.199
<v Speaker 15>device is infiltrated, if that device might be in a

0:21:12.240 --> 0:21:17.159
<v Speaker 15>foreign country where it can be attacked by foreign spy agencies.

0:21:17.280 --> 0:21:19.600
<v Speaker 3>It's still vulnerable there. It might be.

0:21:19.560 --> 0:21:23.320
<v Speaker 15>Secure in transit, but once it arrives on your phone,

0:21:23.840 --> 0:21:27.359
<v Speaker 15>it's still vulnerable. In the way anyone's phone is vulnerable.

0:21:28.119 --> 0:21:30.320
<v Speaker 2>It's a story that's going to continue, and we thank

0:21:30.359 --> 0:21:33.080
<v Speaker 2>you for tracking it for us. Jake Riiberg on the

0:21:33.080 --> 0:21:44.240
<v Speaker 2>security implications of using that signal device. Welcome back to

0:21:44.240 --> 0:21:46.360
<v Speaker 2>Blue Meg Technology. I'm Caroline hid in New York. Let's

0:21:46.359 --> 0:21:48.320
<v Speaker 2>get a check on these markets. We are once again

0:21:48.359 --> 0:21:49.080
<v Speaker 2>in sell off mode.

0:21:49.119 --> 0:21:50.600
<v Speaker 3>To end this week. It is a down week.

0:21:50.640 --> 0:21:53.040
<v Speaker 2>We're currently off by one point seven percent, but those

0:21:53.280 --> 0:21:56.080
<v Speaker 2>declines are accelerating. On this Friday, we're currently off by

0:21:56.119 --> 0:21:59.800
<v Speaker 2>almost two percent on the Nasdaq one hundred, Amazon, Microsoft, Apple,

0:21:59.840 --> 0:22:02.960
<v Speaker 2>and Video Meta Google basically or who's who of the

0:22:03.000 --> 0:22:05.880
<v Speaker 2>magnificent seven are leading us to the downside.

0:22:06.240 --> 0:22:08.960
<v Speaker 3>Very few stocks are currently in the green and.

0:22:08.840 --> 0:22:11.480
<v Speaker 2>This, of course on a key day and test for

0:22:11.520 --> 0:22:14.040
<v Speaker 2>the market when it comes to IPO appetite, but also

0:22:14.200 --> 0:22:15.879
<v Speaker 2>artificial intelligence appetite.

0:22:16.000 --> 0:22:17.960
<v Speaker 3>Let's get back to core weave and police to say.

0:22:17.960 --> 0:22:19.960
<v Speaker 2>Blue Meg's Ryan Gauld joins us, who has been tracking

0:22:19.960 --> 0:22:22.960
<v Speaker 2>this IPO, the intricacies of the pricing that looks like

0:22:23.000 --> 0:22:25.200
<v Speaker 2>it's going to price at about maybe forty two dollars

0:22:25.359 --> 0:22:27.760
<v Speaker 2>fifty maybe forty five dollars as well. It's indicated at

0:22:27.800 --> 0:22:31.080
<v Speaker 2>priced at forty, but might trade higher. But this has

0:22:31.119 --> 0:22:33.119
<v Speaker 2>been a torrid time and you've just spoken to the CEO.

0:22:33.359 --> 0:22:34.879
<v Speaker 16>Yeah, So I just got off the phone with Michael

0:22:34.920 --> 0:22:37.240
<v Speaker 16>and Trader, the CEO of Core. We've obviously a very

0:22:37.240 --> 0:22:39.119
<v Speaker 16>in mentual week to them. I think they're alieved to

0:22:39.240 --> 0:22:40.960
<v Speaker 16>kind of get to this point now where you know

0:22:41.000 --> 0:22:44.480
<v Speaker 16>that the letters have been signed, they're looking to open shortly,

0:22:44.680 --> 0:22:47.840
<v Speaker 16>as you say, indicated forty five ish. Some of the

0:22:47.840 --> 0:22:50.520
<v Speaker 16>big takeaways I would say he's saying, Michael and Trader

0:22:50.600 --> 0:22:52.400
<v Speaker 16>is saying that you know, we saw yesterday and video

0:22:52.480 --> 0:22:54.000
<v Speaker 16>came out, and so that they're going to anchor this

0:22:54.040 --> 0:22:56.679
<v Speaker 16>IPO a two hundred and fifty million dollars order without

0:22:56.720 --> 0:22:59.199
<v Speaker 16>in video coming in. Mike and Trader says that this

0:22:59.280 --> 0:23:01.600
<v Speaker 16>IPO will probably not got over the line, which I

0:23:01.600 --> 0:23:03.840
<v Speaker 16>think is quite a statement. I mean, you know, I

0:23:03.840 --> 0:23:05.520
<v Speaker 16>think there's obviously a lot to be said here about

0:23:05.520 --> 0:23:07.879
<v Speaker 16>them coming in and validating sort of care weave strategy.

0:23:07.920 --> 0:23:10.480
<v Speaker 16>They're clearly a big customer, but I think just putting

0:23:10.520 --> 0:23:12.159
<v Speaker 16>that out there, it gives you a sense as a

0:23:12.240 --> 0:23:14.560
<v Speaker 16>kind of a market dynamic. Ye to have a customer

0:23:14.640 --> 0:23:17.000
<v Speaker 16>like in Vidia coming in and saying, Okay, we're going

0:23:17.040 --> 0:23:20.240
<v Speaker 16>to get behind you. Without them this out here wouldn't happened.

0:23:20.600 --> 0:23:23.439
<v Speaker 2>I hate to be cynical, but in Video could be

0:23:23.440 --> 0:23:27.480
<v Speaker 2>seen to be just protecting a its demand but also

0:23:27.760 --> 0:23:30.600
<v Speaker 2>protecting its own investment. They were already a six percent

0:23:30.680 --> 0:23:32.040
<v Speaker 2>holder of call Weave, right, I.

0:23:31.960 --> 0:23:33.800
<v Speaker 16>Think that's I think that's probably fair. Yeah, And I

0:23:33.840 --> 0:23:35.600
<v Speaker 16>think you know, in a week where in Video has

0:23:35.640 --> 0:23:38.520
<v Speaker 16>also been down and under some pressure. I mean, I

0:23:38.560 --> 0:23:40.200
<v Speaker 16>don't want to sort of put words in anyone's mouth,

0:23:40.200 --> 0:23:41.520
<v Speaker 16>but it's kind of like, you know, let's help out

0:23:41.520 --> 0:23:43.399
<v Speaker 16>a friend. That's what it comes across a way in

0:23:43.720 --> 0:23:46.200
<v Speaker 16>some way. And I think, you know, just given how

0:23:46.240 --> 0:23:49.639
<v Speaker 16>fundamental call Weave or Invidia is to care Weave, I

0:23:49.680 --> 0:23:51.159
<v Speaker 16>think it probably makes a lot of sense to them

0:23:51.200 --> 0:23:53.440
<v Speaker 16>to have come in with with that kind of statement. Yeah,

0:23:53.480 --> 0:23:54.840
<v Speaker 16>but I think you know, there were some other headlines

0:23:54.840 --> 0:23:56.239
<v Speaker 16>as well as we talked about this week. I mean,

0:23:56.240 --> 0:23:59.400
<v Speaker 16>the Microsoft headlines sort of distancing themselves from some data center.

0:23:59.200 --> 0:24:00.880
<v Speaker 3>Infrastructure from td COW.

0:24:00.880 --> 0:24:02.639
<v Speaker 16>And yet yeah, I mean, you know, it's been a

0:24:02.720 --> 0:24:05.000
<v Speaker 16>rough week. It's been bruising, and I think the guys

0:24:05.000 --> 0:24:07.480
<v Speaker 16>over at a core Wave are very believed to get

0:24:07.480 --> 0:24:08.040
<v Speaker 16>to this moment.

0:24:08.280 --> 0:24:10.560
<v Speaker 2>Perhaps some of the bankers are too. Question is how

0:24:10.600 --> 0:24:13.160
<v Speaker 2>the rest of the IPO's unfold ran Gold. It's been

0:24:13.160 --> 0:24:15.800
<v Speaker 2>a busy day for him. We thank him for joining us. Meanwhile,

0:24:15.840 --> 0:24:17.879
<v Speaker 2>let's just talk about a company that did recently have

0:24:17.920 --> 0:24:20.600
<v Speaker 2>an IPO not too long ago, social media platform Reddit.

0:24:21.040 --> 0:24:23.280
<v Speaker 2>They can't actually shake off its gloomy sentiment right now.

0:24:23.280 --> 0:24:26.000
<v Speaker 2>Shares the company have falling fifty percent from February highs

0:24:26.280 --> 0:24:28.359
<v Speaker 2>as it struggles to recover from its earning support that

0:24:28.400 --> 0:24:31.720
<v Speaker 2>revealed it lagged in digital advertising among peers. The company

0:24:31.760 --> 0:24:33.560
<v Speaker 2>also said it took a hit in traffic due to

0:24:33.600 --> 0:24:36.919
<v Speaker 2>changes in Google searchers algorithm. Now, Reddit also faces some

0:24:36.920 --> 0:24:39.639
<v Speaker 2>additional scrutiny as as early investors reached the end of

0:24:39.640 --> 0:24:42.560
<v Speaker 2>their lockup periods, basically putting further selling pressure on the stock.

0:24:42.640 --> 0:24:45.160
<v Speaker 2>We'll see as and when that lockup ends if they

0:24:45.160 --> 0:24:49.240
<v Speaker 2>do indeed sell now, the race to invest in AI

0:24:49.320 --> 0:24:54.200
<v Speaker 2>companies is actually still on amidst this anxiety about too

0:24:54.280 --> 0:24:55.880
<v Speaker 2>much capacity, we're.

0:24:55.720 --> 0:24:57.600
<v Speaker 3>Seeing new billionaires being minted.

0:24:57.640 --> 0:25:00.240
<v Speaker 2>According to analysis from Bloomberg, pid to tell us about

0:25:00.240 --> 0:25:01.960
<v Speaker 2>it's Bloomberg's Tom Maloney.

0:25:01.600 --> 0:25:03.680
<v Speaker 3>Put aside Core Weave and the anxiety.

0:25:03.760 --> 0:25:06.120
<v Speaker 2>No matter what, Michael and traitor is now a billionaire,

0:25:06.240 --> 0:25:08.440
<v Speaker 2>so as the co founder, and there's a long list

0:25:08.560 --> 0:25:10.320
<v Speaker 2>of new AI billionaires.

0:25:10.400 --> 0:25:13.560
<v Speaker 14>Three billionaires, three billionaire founders coming out of core Weave.

0:25:14.160 --> 0:25:16.280
<v Speaker 14>And looking at that, we decided to use it as

0:25:16.280 --> 0:25:19.080
<v Speaker 14>an opportunity to look at other fortunes being made in

0:25:19.160 --> 0:25:22.680
<v Speaker 14>AA right now with these sky higher evaluations. So twenty

0:25:22.800 --> 0:25:26.600
<v Speaker 14>nine founders we looked at across eight companies collectively, they

0:25:26.720 --> 0:25:29.240
<v Speaker 14>own stakes that are worth or soon to be worth

0:25:29.240 --> 0:25:30.399
<v Speaker 14>seventy one billion dollars.

0:25:31.480 --> 0:25:34.280
<v Speaker 2>The who's who of the startup, some of them unsurprising,

0:25:35.359 --> 0:25:38.399
<v Speaker 2>some of them like I mean, we know perplexity for examples,

0:25:38.440 --> 0:25:40.680
<v Speaker 2>got that sort of evaluation. What's interesting is some of

0:25:40.720 --> 0:25:43.240
<v Speaker 2>them are open AI alums setting up their own companies,

0:25:43.280 --> 0:25:43.760
<v Speaker 2>not yet.

0:25:43.640 --> 0:25:46.280
<v Speaker 3>Even with products, and they're worth so much money. Maria

0:25:46.400 --> 0:25:47.800
<v Speaker 3>Marati for example.

0:25:47.480 --> 0:25:49.959
<v Speaker 14>Yeah, absolutely, you know, I look a couple of these

0:25:50.000 --> 0:25:54.280
<v Speaker 14>companies I'd never heard of thinking Machines Lab you just mentioned.

0:25:54.400 --> 0:25:59.160
<v Speaker 14>I mean that's a brand new company, no product, Open

0:25:59.200 --> 0:26:02.240
<v Speaker 14>Ai alone looking to raise a billion at a nine

0:26:02.280 --> 0:26:07.080
<v Speaker 14>billion valuation and then save superintelligence again. Open Ai alums

0:26:07.160 --> 0:26:09.320
<v Speaker 14>less than a year old. They're already sitting on a

0:26:09.320 --> 0:26:12.800
<v Speaker 14>thirty two billion dollar valuation. So just kind of really

0:26:13.040 --> 0:26:14.240
<v Speaker 14>insane numbers out there.

0:26:14.760 --> 0:26:16.520
<v Speaker 2>Clearly there's a lot of love for the use of

0:26:16.600 --> 0:26:19.760
<v Speaker 2>Generator AI, even if perhaps the capacity for it is

0:26:19.760 --> 0:26:20.520
<v Speaker 2>not being too loved.

0:26:20.520 --> 0:26:22.880
<v Speaker 3>On this day, Tom Maloney, great to have him.

0:26:23.119 --> 0:26:26.560
<v Speaker 2>Meanwhile, coming up, Silicon Valley veterans set their sites on outsiders.

0:26:26.720 --> 0:26:29.000
<v Speaker 2>The co founders of Long Journey Ventures join us to

0:26:29.000 --> 0:26:31.639
<v Speaker 2>talk about their firm strategy. There's a little bit of

0:26:31.640 --> 0:26:45.679
<v Speaker 2>magic apparently. This is Blue met Technology time now for

0:26:45.760 --> 0:26:49.320
<v Speaker 2>VC Spotlight. Today we're talking to investors with long histories

0:26:49.359 --> 0:26:51.360
<v Speaker 2>in the sector who say they are looking for founders

0:26:51.480 --> 0:26:55.640
<v Speaker 2>who don't fit the typical Silicon Valley model. Cyam Banister

0:26:55.880 --> 0:26:58.600
<v Speaker 2>Lee Jacobs are co founders of Long Journey Ventures.

0:26:58.640 --> 0:27:00.200
<v Speaker 3>It's got four hund and fifty million dollars.

0:27:00.040 --> 0:27:03.640
<v Speaker 2>Massets under management and a little bit of magic, it seems.

0:27:03.760 --> 0:27:07.160
<v Speaker 3>And I Lee, I start with you, your second believers

0:27:07.280 --> 0:27:10.280
<v Speaker 3>in the magically weird. What does a second believe a

0:27:10.280 --> 0:27:10.679
<v Speaker 3>bit mean?

0:27:11.720 --> 0:27:16.720
<v Speaker 13>Yeah, great question, Thanks for having us. The second believer is, uh, Look,

0:27:16.760 --> 0:27:18.800
<v Speaker 13>it takes the founder to have a lot of belief

0:27:18.800 --> 0:27:21.160
<v Speaker 13>in themselves and what they're up to, and our role

0:27:21.320 --> 0:27:23.800
<v Speaker 13>is to identify that belief and just be right there

0:27:23.880 --> 0:27:26.560
<v Speaker 13>next to them at the very earliest stages. We're talking

0:27:26.560 --> 0:27:31.480
<v Speaker 13>about backing companies before they really have a product. In

0:27:31.520 --> 0:27:33.560
<v Speaker 13>a lot of cases, it's just two people in a room,

0:27:34.080 --> 0:27:36.520
<v Speaker 13>and our role as the second believer is to be

0:27:36.640 --> 0:27:38.720
<v Speaker 13>there for them and believe and believe with everything we

0:27:38.800 --> 0:27:42.159
<v Speaker 13>have and have them build the future that they imagine.

0:27:42.680 --> 0:27:46.439
<v Speaker 2>You have phenomenal background scion coming from Founder's Fund. You

0:27:46.440 --> 0:27:50.080
<v Speaker 2>say you were addicted to this early stage investing.

0:27:49.880 --> 0:27:53.000
<v Speaker 3>But you also talk about sort of backing entrepreneurs that are.

0:27:52.920 --> 0:27:56.440
<v Speaker 2>Absurd or have at least absurd and unconventional ideas. I

0:27:56.440 --> 0:27:59.560
<v Speaker 2>have ever backed anyone whether idea remains absurd or do

0:27:59.600 --> 0:28:02.600
<v Speaker 2>they all end up becoming conventional wisdom?

0:28:03.320 --> 0:28:06.199
<v Speaker 17>Well, obviously you don't get everything right, and so some

0:28:06.320 --> 0:28:09.800
<v Speaker 17>things do maintain being absurd, is.

0:28:09.720 --> 0:28:13.200
<v Speaker 3>There eventually, Well, there's.

0:28:13.000 --> 0:28:16.560
<v Speaker 17>A lot of examples that continue to be absurd. You're

0:28:16.600 --> 0:28:20.520
<v Speaker 17>basically too early, and you're not right about timing. But

0:28:20.640 --> 0:28:23.680
<v Speaker 17>some things, you know, they end up becoming consensus investments

0:28:23.760 --> 0:28:26.359
<v Speaker 17>and you end up seeing them on your show on

0:28:26.640 --> 0:28:29.560
<v Speaker 17>the Bloomberg Terminals. But we like to get ahead of

0:28:29.560 --> 0:28:32.040
<v Speaker 17>it and invest in them early when it's not a thing.

0:28:32.080 --> 0:28:34.120
<v Speaker 17>And there hasn't been a term coined for the whole

0:28:34.119 --> 0:28:37.160
<v Speaker 17>space yet. Yeah, but eventually it does.

0:28:37.520 --> 0:28:39.640
<v Speaker 2>I mean, Lee, I think of many would have thought

0:28:39.760 --> 0:28:42.840
<v Speaker 2>sending gigantic rockets and then you can reuse and even

0:28:42.880 --> 0:28:45.840
<v Speaker 2>catch the boosters of would have seemed absurd a long

0:28:45.880 --> 0:28:48.840
<v Speaker 2>time ago, but you helped with early checks into the

0:28:48.920 --> 0:28:50.560
<v Speaker 2>likes of SpaceX.

0:28:50.320 --> 0:28:52.600
<v Speaker 3>Uber Andrill Lee.

0:28:52.880 --> 0:28:56.560
<v Speaker 2>Is there a consistent factor in the companies that you're backing.

0:28:57.720 --> 0:28:58.120
<v Speaker 9>Yeah.

0:28:59.200 --> 0:29:01.200
<v Speaker 13>All the business is that we back at the stage

0:29:01.200 --> 0:29:03.560
<v Speaker 13>when they're really absurd, before they become consensus.

0:29:03.720 --> 0:29:05.120
<v Speaker 9>Are independently derived.

0:29:05.480 --> 0:29:09.640
<v Speaker 13>The founder has followed their own curiosity to something that

0:29:09.680 --> 0:29:11.520
<v Speaker 13>no one else sees. I like to say they're in

0:29:11.600 --> 0:29:14.360
<v Speaker 13>a room by themselves, and that's a really good sign.

0:29:14.560 --> 0:29:16.160
<v Speaker 13>So our job is to be in that room with

0:29:16.200 --> 0:29:19.040
<v Speaker 13>them and to show us the future they see. So

0:29:19.200 --> 0:29:23.320
<v Speaker 13>Yes andrel and all these businesses that Cyan and us

0:29:23.360 --> 0:29:27.200
<v Speaker 13>have all back have were absurd, It sounded crazy, but

0:29:27.560 --> 0:29:30.240
<v Speaker 13>now they're here on on on Blueberog TV.

0:29:30.680 --> 0:29:33.120
<v Speaker 9>So yeah, they're they.

0:29:33.120 --> 0:29:35.640
<v Speaker 13>Enter the mainstream over time, and our role is to

0:29:36.400 --> 0:29:38.800
<v Speaker 13>be there for them as they as they tell us

0:29:38.840 --> 0:29:42.040
<v Speaker 13>the future. So the main theme is just independently derived

0:29:42.080 --> 0:29:44.080
<v Speaker 13>and derived with curiosity.

0:29:44.640 --> 0:29:44.880
<v Speaker 5>San.

0:29:45.400 --> 0:29:47.560
<v Speaker 3>We were just seeing a list of portfolios.

0:29:47.560 --> 0:29:51.120
<v Speaker 2>Companies that you've backed in prior funds, Companies that you

0:29:51.200 --> 0:29:54.600
<v Speaker 2>back now, I'm interested in Cruso in particular because this

0:29:54.760 --> 0:29:58.360
<v Speaker 2>is about data center capacity, AI infrastructure, but doing it

0:29:58.400 --> 0:30:00.840
<v Speaker 2>with the climate and mind what drew you to that

0:30:00.880 --> 0:30:01.760
<v Speaker 2>company in particular.

0:30:02.520 --> 0:30:04.360
<v Speaker 17>You know, I'm actually going to toss this one to Lee.

0:30:04.360 --> 0:30:06.400
<v Speaker 17>I think he deserves most of the credit for Crusoe.

0:30:06.440 --> 0:30:10.680
<v Speaker 17>He was the first check into Crusoe ever and saw,

0:30:10.880 --> 0:30:12.840
<v Speaker 17>you know, this company before anyone else did. And he

0:30:12.920 --> 0:30:15.440
<v Speaker 17>actually brought it to me at Founder's Fund, and it's

0:30:15.480 --> 0:30:18.240
<v Speaker 17>how Lee and I actually developed some of our working relationship.

0:30:18.240 --> 0:30:19.840
<v Speaker 17>I think it would be best for him to answer this.

0:30:19.880 --> 0:30:20.960
<v Speaker 17>He deserves all the credit.

0:30:21.280 --> 0:30:21.600
<v Speaker 3>Lee.

0:30:21.640 --> 0:30:24.440
<v Speaker 2>Go into this moment, given you know, we've got a

0:30:24.480 --> 0:30:27.320
<v Speaker 2>day where core Weave is going to the market. Many

0:30:27.360 --> 0:30:30.640
<v Speaker 2>are questioning the need for AI infrastructure are you questioning it?

0:30:31.640 --> 0:30:32.760
<v Speaker 9>No, not at all.

0:30:33.280 --> 0:30:36.360
<v Speaker 13>Cruso's a really special business. Yes, we were the second

0:30:36.400 --> 0:30:39.280
<v Speaker 13>believers in that business of the earliest stage. What they

0:30:39.320 --> 0:30:42.440
<v Speaker 13>saw with Chase and Kully saw initially was a real

0:30:42.480 --> 0:30:45.800
<v Speaker 13>need for energy and a real need for actually building

0:30:45.840 --> 0:30:49.080
<v Speaker 13>these data centers in very difficult places. And that you know,

0:30:49.160 --> 0:30:51.440
<v Speaker 13>Corewave is a great business. We're really excited about the

0:30:51.440 --> 0:30:55.200
<v Speaker 13>space in general. We believe Crusoe has a different business

0:30:55.240 --> 0:30:58.640
<v Speaker 13>model and a different opportunity ahead of it where they

0:30:58.640 --> 0:31:01.280
<v Speaker 13>really focused on energy from day and as we know,

0:31:01.840 --> 0:31:05.480
<v Speaker 13>energy is the real bottleneck for what it takes to

0:31:05.880 --> 0:31:09.200
<v Speaker 13>build a great AI application and build these data centers.

0:31:09.360 --> 0:31:10.880
<v Speaker 13>So we're really we're really thrilled.

0:31:11.400 --> 0:31:15.240
<v Speaker 2>Sin You've built a very unique space within which you work,

0:31:15.400 --> 0:31:17.960
<v Speaker 2>you built a unique philosophy on the way you invest,

0:31:18.200 --> 0:31:19.600
<v Speaker 2>and you've got your fourth fund, I think is one

0:31:19.680 --> 0:31:23.320
<v Speaker 2>hundred and eighty one million dollars in excess of How

0:31:23.520 --> 0:31:26.080
<v Speaker 2>are you thinking about where the talent is that you back?

0:31:26.360 --> 0:31:29.000
<v Speaker 3>Are you all about West Coast where you currently sit?

0:31:29.040 --> 0:31:32.000
<v Speaker 2>Are you thinking about outside of that particular area of

0:31:32.040 --> 0:31:32.680
<v Speaker 2>Silicon Valley.

0:31:33.440 --> 0:31:36.560
<v Speaker 17>Yeah, we're a location agnostic. We have venture partners all

0:31:36.600 --> 0:31:39.640
<v Speaker 17>over the world. We have a venture partner, Pascal Levy Garbua,

0:31:39.680 --> 0:31:43.680
<v Speaker 17>who's in France. We have Justin Mayers who's in Austin, Texas.

0:31:43.680 --> 0:31:46.720
<v Speaker 17>We're always looking to expand the team. We punch above

0:31:46.720 --> 0:31:50.600
<v Speaker 17>our weight for our fund size. You know, magical founders

0:31:50.880 --> 0:31:54.720
<v Speaker 17>exist everywhere, and you know what we're looking for people

0:31:54.720 --> 0:31:56.880
<v Speaker 17>who are just you know, thinking about how they're going

0:31:56.960 --> 0:32:00.640
<v Speaker 17>to fundamentally transform the future for humanity, and they're thinking

0:32:00.640 --> 0:32:03.160
<v Speaker 17>about very big ideas and so we like to think

0:32:03.240 --> 0:32:06.200
<v Speaker 17>six to seven years ahead. You know, going back to Crusoe,

0:32:06.200 --> 0:32:08.600
<v Speaker 17>we identified the energy was going to be needed for

0:32:08.640 --> 0:32:11.600
<v Speaker 17>a crypto as well as AI before AI.

0:32:11.440 --> 0:32:12.240
<v Speaker 9>Was even a space.

0:32:12.800 --> 0:32:15.080
<v Speaker 17>And so that's what we're doing right now, is we're

0:32:15.160 --> 0:32:18.640
<v Speaker 17>thinking about what comes next. And so while everybody's investing

0:32:18.680 --> 0:32:21.840
<v Speaker 17>sort of in the Cambrian explosion of the application layer,

0:32:22.080 --> 0:32:24.520
<v Speaker 17>we're thinking about what does this enable six to seven

0:32:24.600 --> 0:32:26.880
<v Speaker 17>years from now. And so we're already looking at like,

0:32:26.920 --> 0:32:31.200
<v Speaker 17>you know, things like biotechnology, nanotechnology, et cetera. And you know,

0:32:31.440 --> 0:32:33.360
<v Speaker 17>you can always count on long journey to be thinking

0:32:33.560 --> 0:32:36.640
<v Speaker 17>about the future, because it's a long journey before they

0:32:36.640 --> 0:32:39.640
<v Speaker 17>ever end up on NAZAC. You know, we have to

0:32:39.640 --> 0:32:41.320
<v Speaker 17>be able to see this idea when it's just a

0:32:41.400 --> 0:32:43.800
<v Speaker 17>napkin and a bunch of people in a house potentially,

0:32:44.320 --> 0:32:46.960
<v Speaker 17>and give them their first check and believe in them.

0:32:47.160 --> 0:32:50.800
<v Speaker 2>How scarage room, You've got roughly one hundred and thirty

0:32:50.960 --> 0:32:53.880
<v Speaker 2>companies yan that you've backed thus far.

0:32:54.600 --> 0:32:55.360
<v Speaker 3>That's a lot.

0:32:55.480 --> 0:32:59.040
<v Speaker 2>And I'm thinking about how you're attracting the LPs into

0:32:59.080 --> 0:33:02.120
<v Speaker 2>fund after fund. What do you think is the ability

0:33:02.160 --> 0:33:03.800
<v Speaker 2>to weather well has been a tough time in the

0:33:03.880 --> 0:33:04.600
<v Speaker 2>VC market.

0:33:05.960 --> 0:33:08.840
<v Speaker 17>Well, we're very differentiated. I think that our LP base

0:33:08.920 --> 0:33:11.080
<v Speaker 17>sees that when they look across you know, all of

0:33:11.080 --> 0:33:14.000
<v Speaker 17>their fund managers, they're seeing that there's not a lot

0:33:14.040 --> 0:33:17.280
<v Speaker 17>of duplication. Because we're looking into the future, we're finding

0:33:17.720 --> 0:33:21.240
<v Speaker 17>people that look absurd, and so everybody's passing on them.

0:33:21.280 --> 0:33:23.200
<v Speaker 17>And so you know, when you have a crazy idea

0:33:23.240 --> 0:33:25.719
<v Speaker 17>about the future. When you think about Uber, when they

0:33:25.720 --> 0:33:28.520
<v Speaker 17>went out to pitch Uber, everyone said to me when

0:33:28.520 --> 0:33:30.760
<v Speaker 17>I tried to pass that deal on to my co investor,

0:33:30.920 --> 0:33:33.080
<v Speaker 17>you know, my colleagues, no one's gonna get in a

0:33:33.080 --> 0:33:35.640
<v Speaker 17>stranger's car. If you look at Airbnb, they said, no

0:33:35.640 --> 0:33:37.959
<v Speaker 17>one's gonna stay on a stranger's couch. If you look

0:33:38.000 --> 0:33:40.960
<v Speaker 17>at Niantic, they said, no one's gonna catch invisible Pokemon.

0:33:41.000 --> 0:33:43.560
<v Speaker 17>If you look at SpaceX, they said, no individual in

0:33:43.600 --> 0:33:46.080
<v Speaker 17>the private sector deserves to launch rockets in the space

0:33:46.320 --> 0:33:48.200
<v Speaker 17>The list goes on and on. So I'm looking for,

0:33:48.440 --> 0:33:50.600
<v Speaker 17>you know, one of my ex colleagues, Jeff Lewis, like

0:33:50.640 --> 0:33:53.600
<v Speaker 17>to call it a narrative violation, and that's how he

0:33:53.680 --> 0:33:56.760
<v Speaker 17>coined it. But that's what I'm looking for. Are you know,

0:33:57.040 --> 0:33:59.640
<v Speaker 17>things where I have a firm belief and I can

0:33:59.680 --> 0:34:03.320
<v Speaker 17>see future and no one else can. You know, you're

0:34:03.320 --> 0:34:07.240
<v Speaker 17>going to get a pricing advantage, And we continuously bat

0:34:07.320 --> 0:34:10.240
<v Speaker 17>above average and we're doing incredibly well on our LPC

0:34:10.440 --> 0:34:12.840
<v Speaker 17>that and so I know it's a competitive and a

0:34:12.840 --> 0:34:15.920
<v Speaker 17>tough landscape to raise right now, but I think our

0:34:16.040 --> 0:34:18.520
<v Speaker 17>LPs are very excited and continue to be in what

0:34:18.560 --> 0:34:19.000
<v Speaker 17>we're doing.

0:34:19.480 --> 0:34:22.280
<v Speaker 18>Who doesn't love a little bit of absurd sign Minister

0:34:22.680 --> 0:34:25.680
<v Speaker 18>Lee Jacobs to the co founders a long journey, Thanks

0:34:25.680 --> 0:34:32.719
<v Speaker 18>so much for joining us today.

0:34:34.640 --> 0:34:37.440
<v Speaker 2>Let's return to call Weave's IPO. I'm very pleased to

0:34:37.480 --> 0:34:40.719
<v Speaker 2>say we're welcoming David snyderm a managing partner of Magneta.

0:34:40.800 --> 0:34:44.120
<v Speaker 2>It is the biggest institutional investor of care Weave long

0:34:44.280 --> 0:34:48.000
<v Speaker 2>term backer. I've got to ask today, I mean the timing,

0:34:48.360 --> 0:34:49.440
<v Speaker 2>how do you feel about it?

0:34:49.719 --> 0:34:51.839
<v Speaker 19>Well, first, thank you so much for having me, and

0:34:51.920 --> 0:34:55.040
<v Speaker 19>this is an exciting day for Magnetar, for our investors,

0:34:55.320 --> 0:34:58.040
<v Speaker 19>and especially for our partners sa Core Weave. You know,

0:34:58.120 --> 0:35:01.240
<v Speaker 19>for us, this is one step in all long process

0:35:00.960 --> 0:35:04.840
<v Speaker 19>and a beginning step in that process of sentiment and timing.

0:35:05.000 --> 0:35:07.520
<v Speaker 19>You know, it's really about execution of the company.

0:35:07.200 --> 0:35:11.120
<v Speaker 2>Today and will you therefore remain a long term committed

0:35:11.160 --> 0:35:13.200
<v Speaker 2>holder even as it goes public. I know we've exited

0:35:13.239 --> 0:35:15.399
<v Speaker 2>a little bit on this particular liquidity moment.

0:35:15.520 --> 0:35:17.719
<v Speaker 19>We actually have not exited at all. We've bought in

0:35:17.760 --> 0:35:20.759
<v Speaker 19>every round prior to this, and we remain committed to

0:35:20.800 --> 0:35:23.800
<v Speaker 19>the company. You know, this company is they're the gold

0:35:23.880 --> 0:35:28.440
<v Speaker 19>standard now for AI infrastructure. So as this transformation happens,

0:35:29.320 --> 0:35:32.800
<v Speaker 19>they're the people, they're the picks and shovels of this industry.

0:35:33.200 --> 0:35:35.440
<v Speaker 19>You know, when we invested in them, I think that

0:35:35.520 --> 0:35:37.600
<v Speaker 19>had twelve million dollars of revenue at the time.

0:35:37.680 --> 0:35:38.560
<v Speaker 3>What year was this?

0:35:38.560 --> 0:35:41.720
<v Speaker 19>This was only four years ago. This year, this past

0:35:41.800 --> 0:35:44.800
<v Speaker 19>year was almost two billion of revenue and climbing quickly.

0:35:45.320 --> 0:35:47.799
<v Speaker 19>So it's pretty incredible what they've done. It's a great

0:35:47.840 --> 0:35:48.520
<v Speaker 19>management team.

0:35:48.920 --> 0:35:52.080
<v Speaker 2>In many ways, the timing hurts because of the narrative

0:35:52.120 --> 0:35:54.320
<v Speaker 2>that we get bombarded with Joe Sai.

0:35:54.360 --> 0:35:56.400
<v Speaker 3>Saying there's a bubble in AI capacity.

0:35:56.600 --> 0:35:59.120
<v Speaker 2>We've got TD Cowen trying to point to Microsoft and

0:35:59.200 --> 0:36:00.840
<v Speaker 2>moving away from day to send to leases.

0:36:01.239 --> 0:36:03.120
<v Speaker 3>How do you feel about AI capacity right now?

0:36:03.160 --> 0:36:05.480
<v Speaker 19>You know, I'm sorry, we read and hear the same stories,

0:36:05.680 --> 0:36:07.520
<v Speaker 19>but it's not what we see in the actual business.

0:36:07.600 --> 0:36:10.799
<v Speaker 19>The business itself has insatiable demand. They can't keep up

0:36:10.800 --> 0:36:12.839
<v Speaker 19>with the demand of the business, which is why it's

0:36:12.880 --> 0:36:16.680
<v Speaker 19>so exciting for us. And you know, I'll walk you

0:36:16.719 --> 0:36:19.480
<v Speaker 19>back to how we think about it at Magnetar. You know,

0:36:19.520 --> 0:36:22.000
<v Speaker 19>we watch we watch Earninge's reports of all the major

0:36:22.040 --> 0:36:24.440
<v Speaker 19>companies and we add up capex. Well, where does the

0:36:24.480 --> 0:36:28.080
<v Speaker 19>capex actually go. It goes into these innovative companies like

0:36:28.120 --> 0:36:31.400
<v Speaker 19>open ai and then open Ai. You see the revenue traction.

0:36:31.680 --> 0:36:33.239
<v Speaker 19>You know, they announced I think a couple of days

0:36:33.239 --> 0:36:35.799
<v Speaker 19>ago on Bloomberg that they were four billion last year,

0:36:35.840 --> 0:36:38.320
<v Speaker 19>and I think it's twelve billion this year and twenty

0:36:38.360 --> 0:36:42.200
<v Speaker 19>seven billion next year. I think that's one company in

0:36:42.280 --> 0:36:45.440
<v Speaker 19>one sector. You start to add up all of that revenue.

0:36:45.680 --> 0:36:48.680
<v Speaker 19>And what people don't understand about compute is it's the

0:36:48.719 --> 0:36:52.080
<v Speaker 19>single biggest driver of the expense structure of these companies.

0:36:52.560 --> 0:36:57.120
<v Speaker 19>Thirty to seventy percent of revenue goes directly to pay

0:36:57.160 --> 0:37:01.120
<v Speaker 19>for compute. Right now, core, we've the old standard for

0:37:01.280 --> 0:37:01.960
<v Speaker 19>that market.

0:37:02.360 --> 0:37:04.120
<v Speaker 2>Before I've got to ask you about open AI a

0:37:04.120 --> 0:37:06.359
<v Speaker 2>little bit more. But what's so interesting is the way

0:37:06.360 --> 0:37:09.960
<v Speaker 2>you've done it is your lending and your background's fixed income,

0:37:10.040 --> 0:37:12.680
<v Speaker 2>so you know all about lending your equity provider. Why

0:37:12.760 --> 0:37:15.719
<v Speaker 2>go so across the capital structure of a company like

0:37:15.760 --> 0:37:20.600
<v Speaker 2>this that ultimately only has a limited amount of ultimate customers.

0:37:20.680 --> 0:37:24.279
<v Speaker 19>The hyperscals sure we well, first, their customer base is

0:37:24.320 --> 0:37:27.000
<v Speaker 19>growing quite quickly, so we'll hit on that in a second.

0:37:27.400 --> 0:37:31.120
<v Speaker 19>But for Magnetar, what we're really good at is lowering

0:37:31.200 --> 0:37:35.200
<v Speaker 19>the cost of capital for capital intensive companies, and so

0:37:35.840 --> 0:37:38.480
<v Speaker 19>we haven't been in technology near as much in the past,

0:37:38.640 --> 0:37:41.680
<v Speaker 19>but now we're seeing them cross Now technology is capital

0:37:41.719 --> 0:37:47.120
<v Speaker 19>intensive technology. For AI to be effective, you need GPUs,

0:37:47.400 --> 0:37:49.520
<v Speaker 19>you need energy, and you need real estate.

0:37:49.760 --> 0:37:50.200
<v Speaker 2>Three of the.

0:37:50.200 --> 0:37:54.239
<v Speaker 19>Most capital intensive industries on the planet. And people like

0:37:54.320 --> 0:37:57.280
<v Speaker 19>Magnetar can come in and really help companies and partner

0:37:57.280 --> 0:37:59.879
<v Speaker 19>with them and lower their cost of capital for us,

0:38:00.120 --> 0:38:03.200
<v Speaker 19>where we want to participate across the capital structure of

0:38:03.239 --> 0:38:04.360
<v Speaker 19>these companies.

0:38:05.239 --> 0:38:08.759
<v Speaker 2>You mentioned customers. A big lease was signed with open

0:38:08.800 --> 0:38:12.400
<v Speaker 2>Ai by Core Weave. Interestingly, open Ai now has exposure

0:38:12.400 --> 0:38:14.520
<v Speaker 2>to core Weave shares on the back of that as well.

0:38:14.680 --> 0:38:16.440
<v Speaker 2>But I want to bring you the latest post out

0:38:16.440 --> 0:38:19.759
<v Speaker 2>of Sam Altman because he's saying, look the frenzy to

0:38:19.800 --> 0:38:23.360
<v Speaker 2>get hold of the latest image generation chatupt is quote

0:38:23.960 --> 0:38:28.400
<v Speaker 2>GPUs are melting. Tell us about open Ai and your

0:38:28.440 --> 0:38:31.400
<v Speaker 2>bet there you are coming in when their valuation is

0:38:31.480 --> 0:38:34.319
<v Speaker 2>three hundred billion dollars with a sizeable investment, is it

0:38:34.320 --> 0:38:35.520
<v Speaker 2>about one billion you're coming in?

0:38:36.040 --> 0:38:39.400
<v Speaker 19>So that was reported that we're looking at the investment

0:38:39.440 --> 0:38:42.200
<v Speaker 19>and we are looking. We love the company, we love management.

0:38:42.239 --> 0:38:45.200
<v Speaker 19>They're doing a great job. That's in our investment committee

0:38:45.280 --> 0:38:48.080
<v Speaker 19>right now. But we're also looking at many other companies

0:38:48.080 --> 0:38:52.000
<v Speaker 19>across the sector, so that investment has not been made

0:38:52.000 --> 0:38:52.319
<v Speaker 19>to date.

0:38:53.040 --> 0:38:54.880
<v Speaker 2>Tell us, therefore, where you are looking and where the

0:38:54.960 --> 0:38:58.040
<v Speaker 2>value a cruise. You say you're about capital expenditure, so

0:38:58.080 --> 0:39:00.160
<v Speaker 2>it must be on the AI infrastructure there and the

0:39:00.239 --> 0:39:03.720
<v Speaker 2>large language model air, but everyone's getting excited about the applications.

0:39:03.760 --> 0:39:04.479
<v Speaker 3>Would you go there?

0:39:04.760 --> 0:39:05.000
<v Speaker 1>Yeah?

0:39:05.120 --> 0:39:08.759
<v Speaker 19>For us, we're really focused on capital intensity businesses that

0:39:09.160 --> 0:39:11.480
<v Speaker 19>need to drive down their cost of capital. That's where

0:39:11.520 --> 0:39:14.239
<v Speaker 19>we can be a value added partner, and we can

0:39:14.280 --> 0:39:16.800
<v Speaker 19>be a valuated partner not just to companies, but to

0:39:16.960 --> 0:39:19.279
<v Speaker 19>venture firms who aren't used to looking at this type

0:39:19.280 --> 0:39:20.680
<v Speaker 19>of capital intensity.

0:39:21.320 --> 0:39:24.680
<v Speaker 2>You've obviously been in CAREW for example, for a long time.

0:39:24.800 --> 0:39:26.160
<v Speaker 3>We have four years and.

0:39:26.120 --> 0:39:28.879
<v Speaker 2>You're going to stay with it through the public markets. Yes,

0:39:29.160 --> 0:39:31.680
<v Speaker 2>how do you think they now need and mic and

0:39:31.719 --> 0:39:36.400
<v Speaker 2>Trader now needs to talk to the market about insatiable demand.

0:39:36.560 --> 0:39:38.279
<v Speaker 2>At the moment, we're worrying a little bit about the

0:39:38.280 --> 0:39:41.440
<v Speaker 2>amount of leverage. We're worrying a little bit about ultimately

0:39:41.480 --> 0:39:44.640
<v Speaker 2>how they have financial controls. This moment of being public,

0:39:44.920 --> 0:39:46.480
<v Speaker 2>what does it mean in terms of how the business

0:39:46.520 --> 0:39:46.879
<v Speaker 2>is run.

0:39:47.239 --> 0:39:49.960
<v Speaker 19>Yeah, I think there's been some misconceptions in the marketplace

0:39:50.000 --> 0:39:52.399
<v Speaker 19>about the debt load. You know, if we go back

0:39:52.440 --> 0:39:56.439
<v Speaker 19>to real capital intensive businesses, people take quarters and bring

0:39:56.480 --> 0:39:58.840
<v Speaker 19>it to the bank, and the bank lends them money

0:39:58.840 --> 0:40:00.680
<v Speaker 19>to fulfill the orders, and they pay back when the

0:40:00.760 --> 0:40:04.520
<v Speaker 19>orders come That's exactly what Mike and his team have

0:40:04.600 --> 0:40:07.719
<v Speaker 19>done on their financing journey. And so in order to

0:40:07.760 --> 0:40:10.439
<v Speaker 19>get the most efficient cost of capital, if you get

0:40:10.480 --> 0:40:14.040
<v Speaker 19>long term contracts which they have with companies like Microsoft

0:40:14.040 --> 0:40:17.600
<v Speaker 19>and open Ai, those are readily financiable in the marketplace.

0:40:17.800 --> 0:40:20.040
<v Speaker 3>And Microsoft's not pulling away Micro.

0:40:20.280 --> 0:40:22.680
<v Speaker 19>Not only is Microsoft not pulling away. These are take

0:40:22.760 --> 0:40:26.960
<v Speaker 19>or pay contracts. So Microsoft has contracts for many years

0:40:27.280 --> 0:40:30.120
<v Speaker 19>and they'll continue to pay every month. You know, It's

0:40:30.360 --> 0:40:32.239
<v Speaker 19>in my mind, it's sort of like we go and

0:40:32.280 --> 0:40:35.360
<v Speaker 19>release a car, right and of course it appreciates the

0:40:35.440 --> 0:40:38.080
<v Speaker 19>day you leave, you leave the lot, but you still

0:40:38.080 --> 0:40:41.160
<v Speaker 19>owe for four years on your car lease. And that's

0:40:41.160 --> 0:40:45.800
<v Speaker 19>the same thing here. And I think again, these companies

0:40:46.040 --> 0:40:49.480
<v Speaker 19>need a ton of compute right now. The best provider

0:40:49.600 --> 0:40:52.359
<v Speaker 19>of compute for all of these companies is core Weave.

0:40:53.239 --> 0:40:54.800
<v Speaker 3>I'm so interested in Magneta.

0:40:54.880 --> 0:40:58.320
<v Speaker 2>You're in everything at the moment that's interesting to our audience.

0:40:58.840 --> 0:41:01.319
<v Speaker 2>So where do you know focus you just telld us about.

0:41:01.320 --> 0:41:04.239
<v Speaker 2>It's about the cappal expenditure element. Are there regions that

0:41:04.280 --> 0:41:06.360
<v Speaker 2>you look to what is the next company? What is

0:41:06.360 --> 0:41:07.520
<v Speaker 2>the next open ai for you?

0:41:07.960 --> 0:41:09.919
<v Speaker 19>Sure, we have a lot in our pipeline, and we've

0:41:09.960 --> 0:41:12.920
<v Speaker 19>made hundreds and hundreds of investments. This is our twenty

0:41:12.960 --> 0:41:17.920
<v Speaker 19>year anniversary. But it's really about a consistent, methodical process

0:41:17.960 --> 0:41:20.680
<v Speaker 19>to invest. We want to understand assets, we want to

0:41:20.719 --> 0:41:24.839
<v Speaker 19>understand cash flows, we want to understand downside scenarios. So

0:41:24.880 --> 0:41:27.560
<v Speaker 19>we look a lot different than a normal equity investor.

0:41:27.840 --> 0:41:31.560
<v Speaker 19>We're very focused on analyzing assets, the cash flows they produce,

0:41:31.880 --> 0:41:34.520
<v Speaker 19>and making sure companies have the right runway.

0:41:35.440 --> 0:41:38.279
<v Speaker 2>Will you promise when it's out of your investment committee

0:41:38.600 --> 0:41:39.120
<v Speaker 2>you'll come.

0:41:39.000 --> 0:41:39.839
<v Speaker 3>Back with open AI.

0:41:40.520 --> 0:41:41.680
<v Speaker 9>I'd love to. I'd love to.

0:41:41.960 --> 0:41:45.240
<v Speaker 3>It's great to have you. David Sneiderman, MAGNETI managing partner.

0:41:45.360 --> 0:41:46.399
<v Speaker 3>We hope to have him back. Now.

0:41:46.400 --> 0:41:49.360
<v Speaker 2>That does it for this edition of bloombag Technology. You

0:41:49.360 --> 0:41:50.800
<v Speaker 2>don't want to forget to check out our podcast. You

0:41:50.840 --> 0:41:52.520
<v Speaker 2>can find it on the terminal as well as online

0:41:52.560 --> 0:41:56.320
<v Speaker 2>on Apple, Spotify and iHeart from New York from San Francisco,

0:41:56.360 --> 0:41:57.760
<v Speaker 2>wishing you a very happy weekend.

0:41:58.200 --> 0:42:03.200
<v Speaker 3>This is bluembg Technology als what he doing haply when

0:42:03.280 --> 0:42:06.120
<v Speaker 3>he don't happy, when he don't happen