WEBVTT - Applied Materials' Results, and OpenAI and Reddit's Partnership 0:00:01.560 --> 0:00:05.240 From Markhard We're Innovation of Money and Power colle in 0:00:05.360 --> 0:00:06.880 Silicon Valley, NBN. 0:00:07.200 --> 0:00:11.240 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:24.840 --> 0:00:27.319 I'm Caroline Heid at Bloomberg's at World Headquarters in New York, 0:00:27.680 --> 0:00:29.320 and I'm Ed Ludlow in San Francisco. 0:00:29.400 --> 0:00:31.240 This has Beenberg Technology coming up. 0:00:31.560 --> 0:00:34.160 Full market coverage of a head of course, the largest 0:00:34.240 --> 0:00:37.199 US maker of chip making machinery fails to impress investors. 0:00:37.240 --> 0:00:39.519 What does it say around the rest of the chip sector. 0:00:39.720 --> 0:00:41.960 We talk applied materials. 0:00:41.920 --> 0:00:44.600 Plus open Ai and Reddit announce a partnership to bring 0:00:44.640 --> 0:00:47.320 its content to chat, GPT and other new products. 0:00:47.360 --> 0:00:49.400 Details ahead, and we sit down with the CEO of 0:00:49.400 --> 0:00:52.600 cloud computing company core Weave as it secures seven and 0:00:52.600 --> 0:00:53.240 a half. 0:00:52.960 --> 0:00:54.760 Billion dollars in private debt. 0:00:55.320 --> 0:00:57.960 All that and so much more coming up first, as 0:00:58.040 --> 0:01:00.320 check in on a market that has been ramping higher 0:01:00.320 --> 0:01:02.639 for four straight weeks, the longest winning street we see 0:01:02.680 --> 0:01:05.440 for the SMP and indeed the Nasdaq in well, at 0:01:05.520 --> 0:01:06.720 least since February. 0:01:06.800 --> 0:01:09.160 We're actually seeing the best months. 0:01:08.800 --> 0:01:12.080 So far for the entire year, and we're seeing again 0:01:12.160 --> 0:01:15.280 just tentative gains. We've called some of those gains as 0:01:15.280 --> 0:01:18.160 the week has progressed, but nevertheless still up almost ten 0:01:18.200 --> 0:01:20.760 points on the Nasdaq stock six hundred over in Europe. 0:01:20.880 --> 0:01:22.880 Less optimism on the day, we're off by a tenth 0:01:22.920 --> 0:01:25.240 of a percent, but again we've seen gains throughout the 0:01:25.240 --> 0:01:27.400 course of the week, and look, we're still near or 0:01:27.400 --> 0:01:28.440 at record highs for a. 0:01:28.400 --> 0:01:29.360 Lot of these benchmarks. 0:01:29.480 --> 0:01:31.160 Looking at ten year yields, actually just selling off a 0:01:31.200 --> 0:01:33.440 little bit on Neil's just pushing up somewhat, but this 0:01:33.520 --> 0:01:36.040 has been a reassessment of the Federal Reserve and whether 0:01:36.080 --> 0:01:38.559 we can still see cuts coming in for this year. 0:01:38.920 --> 0:01:41.440 Some of that data just showed a healthy cooling of 0:01:41.440 --> 0:01:42.959 the US economy. Move on, have a look at what's 0:01:42.959 --> 0:01:44.440 happened over the last five days, and we're looking at 0:01:44.480 --> 0:01:46.560 crypto and look on the up and up more than 0:01:46.640 --> 0:01:48.960 nine percent. We're at six hundred and seven, a way 0:01:48.960 --> 0:01:51.520 off far high as their ed but still notable risk 0:01:51.560 --> 0:01:53.559 on sentiment throughout this week. When it comes to crypto, 0:01:53.600 --> 0:01:55.240 what have you got on the micro Well. 0:01:55.200 --> 0:01:57.080 Let's start, we've read it and read it is up 0:01:57.120 --> 0:01:59.960 a lot, flirting with a record higher bound for four 0:02:00.000 --> 0:02:03.680 fourteen percent. Since it's ipo, which you know is in March. 0:02:03.880 --> 0:02:05.680 So the deal with open ai is kind of a 0:02:05.680 --> 0:02:10.720 two way deal. Open ai basically licenses Reddit forum posts 0:02:10.760 --> 0:02:13.760 to get that text data's train models, but it can 0:02:13.760 --> 0:02:16.720 also show Reddit posts in the consumer facing products. And 0:02:16.760 --> 0:02:18.920 what does Reddit get out of it, Well, according to analysts, 0:02:19.160 --> 0:02:21.760 like forty million dollars of high margin revenue every year, 0:02:21.760 --> 0:02:22.440 which is great. 0:02:22.760 --> 0:02:23.800 But also they are. 0:02:23.720 --> 0:02:27.160 Talking about building ai products into the forum on top 0:02:27.200 --> 0:02:29.799 of open AI's large language models. Let's talk about that 0:02:29.919 --> 0:02:31.959 later in the show. The other name we're talking about 0:02:32.000 --> 0:02:34.880 is in the chip space applied materials. As you point out, 0:02:35.160 --> 0:02:37.360 the story here is about a company that makes the 0:02:37.440 --> 0:02:40.520 machines that makes the chips. It sells to the contract 0:02:40.520 --> 0:02:45.360 manufacturers like TSMC higher three tensven percent. It beat estimates, 0:02:45.440 --> 0:02:47.600 but at the upper range of the estimates that were 0:02:47.600 --> 0:02:49.919 given by the street it fell a little short. The 0:02:50.040 --> 0:02:53.960 question is where are we at in chip demand through 0:02:53.960 --> 0:02:56.760 the proxy of the companies that buy the machines that 0:02:56.800 --> 0:02:57.440 make the chips. 0:02:57.480 --> 0:03:00.400 What a fun story it is, because ultimately, is this 0:03:00.440 --> 0:03:02.760 a bell weather? Is this some sort of ability for 0:03:02.880 --> 0:03:04.320 us to have a bird side perspective? 0:03:04.480 --> 0:03:05.480 Wear's hot, wet's not? 0:03:05.960 --> 0:03:08.600 Maybe not In autos, maybe not in connected devices, but 0:03:08.680 --> 0:03:10.720 certainly all things AI is still driving us. And what 0:03:10.720 --> 0:03:12.920 about the China exposure ed and pleased to say we 0:03:12.960 --> 0:03:16.720 can go broadly across the sector with Advisor's capital management 0:03:16.760 --> 0:03:19.160 partner and portfolio manager, Joe am Poenie. Always enjoyed to 0:03:19.160 --> 0:03:21.280 have you with us, Joeanne. And look, this is a 0:03:21.320 --> 0:03:24.760 chip equipment company. But what are you seeing in terms 0:03:24.840 --> 0:03:27.160 of where we are in chips more broadly? 0:03:27.280 --> 0:03:27.640 Right now? 0:03:28.760 --> 0:03:29.840 Yeah, good morning guys. 0:03:30.480 --> 0:03:33.519 Apply Materials results better than expected, but their guidance was 0:03:33.560 --> 0:03:36.120 a little bit soft, and in this kind of an economy, this. 0:03:36.120 --> 0:03:38.400 Kind of a market, that doesn't go over too well. 0:03:38.640 --> 0:03:42.600 But when you look into what Applied said, they indicated 0:03:42.720 --> 0:03:46.120 continued strong demand from several of their end markets, except 0:03:46.120 --> 0:03:50.200 for China. Obviously with the US trade policy really trying 0:03:50.240 --> 0:03:53.760 to crack down on exports that would enable China to 0:03:53.920 --> 0:03:57.240 have its own leading edge chip business. Applied Materials find 0:03:57.280 --> 0:03:59.840 yourself in the cross fair, no surprise, and so that 0:04:00.000 --> 0:04:02.320 part of their business is going to fall off pretty sharply. 0:04:02.640 --> 0:04:06.360 But what we're seeing is that global demand for equipment 0:04:06.480 --> 0:04:09.400 because of the global demand for high end chips for 0:04:09.560 --> 0:04:12.480 AI and other things is still going to remain robust 0:04:12.480 --> 0:04:13.440 for many years to come. 0:04:14.720 --> 0:04:15.760 That's really interesting. 0:04:15.840 --> 0:04:18.400 So around on Monday, I'm going to speak in a 0:04:18.440 --> 0:04:22.400 conversation with Jensen Wang, Michael Dell, and Bill McDermott for 0:04:22.440 --> 0:04:25.039 twenty five minutes, and what I'm trying to get out 0:04:25.040 --> 0:04:27.400 of it is this idea of when do we move 0:04:27.480 --> 0:04:32.359 beyond AI as a market AI accelerators just being the hyperscalers. 0:04:32.640 --> 0:04:34.600 So think about what you just said in demand, But. 0:04:34.560 --> 0:04:37.280 As far as I see, that's the only place it's going, 0:04:37.279 --> 0:04:40.320 and it's largely in the US. What's your kind of 0:04:40.440 --> 0:04:41.080 counter to that. 0:04:42.400 --> 0:04:45.279 Well, what we're seeing, I believe is that there's a 0:04:45.360 --> 0:04:50.520 demand beyond just the US hyperscalers for other entities to 0:04:50.600 --> 0:04:55.839 have their own AI training and inference capabilities, notably countries 0:04:57.000 --> 0:04:59.720 that want want to keep their data private, and so 0:05:00.160 --> 0:05:03.560 we're going to see entities there develop the infrastructure to 0:05:03.920 --> 0:05:06.600 run those models and to deploy those models. So your 0:05:06.680 --> 0:05:08.880 Jensen has mentioned that in the past, you could try 0:05:08.920 --> 0:05:10.800 to get some numbers out of him for how big 0:05:10.839 --> 0:05:12.960 that is currently and how big he expects it to be, 0:05:12.960 --> 0:05:15.880 because it should be the case that wants the hyperscalers 0:05:15.920 --> 0:05:19.400 build up their capabilities for training and for inference that 0:05:19.520 --> 0:05:23.039 will see that other end the sovereign investments or even 0:05:23.120 --> 0:05:27.680 company specific investments where again data is likely to be 0:05:27.760 --> 0:05:30.159 kept private, become the next buyer. 0:05:31.400 --> 0:05:32.479 You know what's so interesting? 0:05:32.520 --> 0:05:34.200 And maybe I'm getting a bit in the weeds here, 0:05:34.200 --> 0:05:36.520 but like think about Dell's history, they're really good at 0:05:36.560 --> 0:05:40.800 selling to SMEs and governments. They're great sales channels that 0:05:40.960 --> 0:05:44.480 maybe like Nvidia, has never really operated him. And that's 0:05:44.520 --> 0:05:46.880 the bit I'm trying to scratch away at. Like everyone 0:05:46.920 --> 0:05:49.040 else in the world who wants a part of the 0:05:49.080 --> 0:05:52.159 AI story, how do they actually do it right? From 0:05:52.200 --> 0:05:55.400 their CAPEX spend And where do you Jo Anthony position 0:05:55.480 --> 0:05:59.040 yourself if you think that they're going to get there right? 0:05:59.120 --> 0:06:01.160 So the others that they're going to do it, They're 0:06:01.160 --> 0:06:02.960 going to have to build the infrastructure ed if I 0:06:03.000 --> 0:06:06.080 understand your question correctly, And so whether it's through a 0:06:06.120 --> 0:06:09.000 Dell or a super micro or an HP or an IBM, right, 0:06:09.000 --> 0:06:10.720 they're going to have to bring the hardware in which 0:06:10.760 --> 0:06:13.680 will be powered by chips from Nvidia and the future 0:06:13.720 --> 0:06:15.240 AMD and perhaps. 0:06:14.960 --> 0:06:17.479 In the future from some of these startups we're hearing about. 0:06:17.800 --> 0:06:20.080 And how we position is we look at the fundamental 0:06:20.160 --> 0:06:22.120 suppliers that make it all possible, which are the chip 0:06:22.160 --> 0:06:27.240 guys and Vidia, AMD, Broadcom working in conjunction with Alphabet 0:06:27.279 --> 0:06:30.240 and others to bring the chips capable of this high 0:06:30.320 --> 0:06:30.960 end computing. 0:06:31.400 --> 0:06:33.400 That's kind of a clean way to invest. 0:06:33.400 --> 0:06:36.200 But also then on the application side, companies that are 0:06:36.279 --> 0:06:39.360 rolling out the capabilities to deploy AI like a service. 0:06:39.080 --> 0:06:42.000 Now is one example, but it's broader than that. It's 0:06:42.040 --> 0:06:44.719 beyond the technology sector, it's into industrials. 0:06:44.320 --> 0:06:45.120 It's into healthcare. 0:06:45.320 --> 0:06:47.000 So you really have to dig deep to find those 0:06:47.120 --> 0:06:50.560 individual companies that are being successful at this early stage 0:06:50.640 --> 0:06:52.840 and starting to deploy the AI capabilities that. 0:06:52.800 --> 0:06:53.680 Are just emerging. 0:06:54.279 --> 0:06:57.200 I'm loving this entire show because we're going to many 0:06:57.279 --> 0:07:00.520 ways pick away all these different ways of telling the story. 0:07:00.560 --> 0:07:02.560 We've got core Weave coming on, of course, one of 0:07:02.560 --> 0:07:07.600 these new hyperscale entrance almost offering new data center footprints 0:07:07.640 --> 0:07:09.720 that's going to be closer to the companies that need 0:07:10.040 --> 0:07:11.440 the access to the compute. 0:07:11.440 --> 0:07:12.520 You're then also going to be. 0:07:12.520 --> 0:07:18.160 Discussing this new AI push towards regulation, but ultimately standards 0:07:18.160 --> 0:07:20.320 and investment coming from the US government. We just had 0:07:20.400 --> 0:07:24.480 Chuck Schumer, of course, right, that key AI thought leadership piece. 0:07:24.480 --> 0:07:26.400 Basically there's no real regulation in it yet. Will we 0:07:26.440 --> 0:07:28.560 be delving into that. But all of this very much 0:07:28.600 --> 0:07:32.559 focuses on the US and bits China and the worry there. 0:07:32.960 --> 0:07:35.960 But what about Europe, what about Japan? What about other 0:07:36.080 --> 0:07:37.840 areas that you can invest geographically? 0:07:37.920 --> 0:07:40.000 Joanne, Yeah, I mean asking. 0:07:40.000 --> 0:07:41.960 One of the big trends that I'm going that's related 0:07:42.000 --> 0:07:45.320 to this space is the desire for let's call it 0:07:45.360 --> 0:07:49.720 self sufficiency regionally to have for countries and regions like 0:07:49.760 --> 0:07:51.880 the US and Europe to have their own capability to 0:07:52.120 --> 0:07:54.000 manufacture those high end chips. 0:07:55.040 --> 0:07:58.480 Whether regulation and how regulation evolves. 0:07:58.040 --> 0:08:01.160 Over time is really hard a hard thing to sort 0:08:01.240 --> 0:08:04.400 out at this point, and so we don't try to 0:08:04.480 --> 0:08:07.520 make bets based on regulation changes. 0:08:07.560 --> 0:08:08.600 It's just sort of too. 0:08:08.400 --> 0:08:11.840 Early to know what Chuck Schumer's and that bipartisan groups 0:08:11.880 --> 0:08:15.480 proposals will actually mean. So instead, again, what we can 0:08:15.560 --> 0:08:17.800 do is look at how the subsidies are. 0:08:17.680 --> 0:08:21.000 Evolving and how the tariff barriers and restrictions are evolving 0:08:21.240 --> 0:08:26.320 to push the manufacturing of advanced semiconductors around the world. 0:08:26.400 --> 0:08:28.080 And what it means, right is we're going to get 0:08:28.120 --> 0:08:31.480 more chip manufacturing, which is good for the equipment suppliers 0:08:31.480 --> 0:08:35.600 by the way, and probably get some cheaper chips as 0:08:35.640 --> 0:08:38.400 a result of a bit of overcapacity over time. 0:08:39.440 --> 0:08:42.280 When you therefore look at some of the startups coming in, 0:08:42.640 --> 0:08:46.120 when you think about where to allocate to, where's already done? 0:08:46.200 --> 0:08:46.480 Well? 0:08:46.960 --> 0:08:49.640 Is in Vidio ahead of its earnings next week, still 0:08:49.640 --> 0:08:51.400 at the right valuation point to enter. 0:08:52.840 --> 0:08:53.080 Well? 0:08:53.120 --> 0:08:55.679 You know, a company like in Nvidia has many years 0:08:55.679 --> 0:08:58.320 of growth head of it, and its valuation reflects the 0:08:58.400 --> 0:09:01.800 expectations about how high that growth will be and for 0:09:01.880 --> 0:09:04.520 how long it can be maintained. And right now, and 0:09:04.720 --> 0:09:09.000 Video with its chip technology is well ahead of competition. Yes, 0:09:09.080 --> 0:09:11.480 a m D is coming along, and they will they 0:09:11.520 --> 0:09:15.200 will definitely have a good chip in the race. And 0:09:15.240 --> 0:09:18.320 we talked about Broadcom with their teaming up with Google 0:09:18.400 --> 0:09:22.199 and others. But ultimately, and Vidia has not only the hardware, 0:09:22.320 --> 0:09:26.040 the most advanced chips with the most capability for training AI. 0:09:26.120 --> 0:09:29.040 But it also has the software that is needed to 0:09:29.120 --> 0:09:31.360 make all of that work, that Coupa software that it's 0:09:31.400 --> 0:09:34.400 been developing over decades. So it really does give Nvidia 0:09:34.679 --> 0:09:37.960 a substantial and defensive lead for several years to come. 0:09:38.360 --> 0:09:40.160 That doesn't mean that we're not going to get. 0:09:40.080 --> 0:09:43.600 Newsflow that disturbs those long term forecasts, and that could 0:09:43.600 --> 0:09:45.640 cause disruptions in the stock price. And that's why we 0:09:45.720 --> 0:09:48.640 think for Nvidia to be helped by clients. In our 0:09:48.679 --> 0:09:53.319 growth portfolio, it's a substantial position, But in our balanced strategy, 0:09:53.360 --> 0:09:56.680 where clients have a perhaps a more conservative view on 0:09:56.720 --> 0:09:58.960 what their portfolios need to do over time, it's a 0:09:59.040 --> 0:10:02.040 smaller position because of the volatility that we're likely to 0:10:02.040 --> 0:10:04.720 see as expectations can be disrupted at any time. 0:10:05.960 --> 0:10:09.400 M Foinie, how are you and Advisor's Capital using AI 0:10:09.640 --> 0:10:10.600 at home and at work? 0:10:11.720 --> 0:10:14.520 Well, I know from talking to the marketing guys, for example, 0:10:14.600 --> 0:10:18.280 that they're using AI to create We just had a conference, 0:10:18.800 --> 0:10:21.400 for example, they created a lot of the background material 0:10:21.440 --> 0:10:24.800 for the conference, the images. I worked with a colleague 0:10:24.800 --> 0:10:28.480 recently to do a podcast on behavioral finance, and he 0:10:28.600 --> 0:10:30.199 generated notes using AI. 0:10:30.400 --> 0:10:32.880 Questioning, Hey, what did Danny Kahneman contribute? 0:10:33.280 --> 0:10:35.280 And so I saw all these great notes, I'm like, wow, 0:10:35.320 --> 0:10:37.560 that's it's impressive. He said he did it in fifteen minutes. 0:10:37.720 --> 0:10:40.720 So it's an incredible time saver for folks. Quickly needing 0:10:40.800 --> 0:10:43.880 to generate content or get quick answers to questions and 0:10:43.960 --> 0:10:45.960 to generate images for marketing materials. 0:10:46.920 --> 0:10:49.120 J am Feenie Advisors Capital Management. Great to have you 0:10:49.160 --> 0:10:50.760 back on the show. Thank you so much. Now coming 0:10:50.800 --> 0:10:53.240 up from Bloomberg Technology, we have all the details on 0:10:53.280 --> 0:10:55.960 that open Ai and Reddit relationship and a new partnership. 0:10:55.960 --> 0:10:58.079 Stay with us, We will be right back. This is 0:10:58.080 --> 0:11:14.840 Bloomberg Technology. So open ai unveiled a partnership with Reddit 0:11:14.880 --> 0:11:18.079 that will bring the social networks content to chat, GPT 0:11:18.280 --> 0:11:20.600 and other products, but also allow Reddit to add new 0:11:20.600 --> 0:11:23.760 AI features to its online communities. That's bringing Bloomberg Sharen 0:11:23.800 --> 0:11:26.400 Gafari for more a bit of a scramble last night 0:11:26.400 --> 0:11:29.760 because the market reacted right. Reddit shares now really high. 0:11:30.000 --> 0:11:32.840 Just give us the basics of the deal in both directions. 0:11:34.440 --> 0:11:34.760 Sure. 0:11:34.920 --> 0:11:38.200 So open ai, which has kind of an insatiable desire 0:11:38.240 --> 0:11:40.800 for data right to train its models and to just 0:11:40.840 --> 0:11:44.720 show data within its chat GPT app, will now have 0:11:44.840 --> 0:11:47.520 access to Reddit posts, and that's going to happen through 0:11:47.559 --> 0:11:50.960 the Reddit api. So you know, whatever people post on Reddit, 0:11:51.000 --> 0:11:53.960 open ai now has the legal right through this deal 0:11:54.040 --> 0:11:56.080 to actually use that in its products and to train 0:11:56.120 --> 0:12:00.800 its products on Reddit side. You know, they are presumably 0:12:00.840 --> 0:12:03.000 getting some kind of financial benefit from this, although the 0:12:03.080 --> 0:12:04.640 terms of the deal have not been disclosed. 0:12:05.280 --> 0:12:09.600 Also, perhaps they fold in open AI's own large language 0:12:09.600 --> 0:12:13.040 model and AI applications within the use of Reddit. It 0:12:13.040 --> 0:12:15.480 seems as though there's going to be advertising involved, and 0:12:15.559 --> 0:12:18.600 the question to me sharing is what do they get 0:12:18.679 --> 0:12:22.120 that's different versus the Google agreement. We know the amount 0:12:22.120 --> 0:12:24.720 of money it seems that they got from Alphabet already, 0:12:25.160 --> 0:12:29.600 but why therefore so embed open ai from an actual 0:12:29.640 --> 0:12:31.680 AI architecture perspective and not Google's. 0:12:34.280 --> 0:12:38.120 I think that these media companies, social media companies, publishers, 0:12:38.160 --> 0:12:40.439 they're kind of looking to just get the most value 0:12:40.480 --> 0:12:42.199 that they can out of the data that they have, right, 0:12:42.240 --> 0:12:45.559 so I think the deals are very similar. I think, 0:12:45.640 --> 0:12:47.240 you know, we just have a little bit more information 0:12:47.320 --> 0:12:49.560 about how much the value of that Google deal was 0:12:49.920 --> 0:12:52.320 on the advertising front, because there was a mention in 0:12:52.360 --> 0:12:55.840 there in their release I actually clarified with open Ai. 0:12:56.000 --> 0:12:58.880 So all that means is that open ai is actually 0:12:58.920 --> 0:13:02.400 going to place ads on Reddit as part of the deal, 0:13:02.480 --> 0:13:05.160 So we're not seeing a kind of deeper ad integration 0:13:06.000 --> 0:13:08.199 that's that some may have had thought. 0:13:09.440 --> 0:13:10.240 Really fascinating. 0:13:10.280 --> 0:13:12.280 And I think also we've got to remember the history 0:13:12.640 --> 0:13:15.760 of Reddit and Sam Altman. Even though it says really 0:13:15.800 --> 0:13:18.720 that it is Brad Lightcap that forged this deal, certainly 0:13:18.840 --> 0:13:22.080 is one of the key investors in Reddit at the IPO. 0:13:22.600 --> 0:13:24.240 Those ties go deep, and the fact that he is 0:13:24.280 --> 0:13:26.840 interrom CEO for a short while putting the Suran Gafari. 0:13:26.920 --> 0:13:28.959 We thank you so much for talking us through the 0:13:29.000 --> 0:13:31.240 latest deal. Meanwhile, let's talk about the space race that's 0:13:31.320 --> 0:13:33.240 upon us, because we're just so you can look at 0:13:33.280 --> 0:13:34.600 Elil Musk's Starlink. 0:13:34.880 --> 0:13:38.079 It's launched, friends of competition for space dominance. Just take 0:13:38.120 --> 0:13:38.520 a listen. 0:13:41.520 --> 0:13:45.240 The largest single constellation of satellites orbiting our planet is 0:13:45.320 --> 0:13:49.880 run by a mercurial individual who needs no introduction. It's 0:13:49.920 --> 0:13:55.439 this guy. It achieves this by maintaining a vast relay 0:13:55.520 --> 0:13:58.840 network in low Earth orbit. That's the area higher than 0:13:58.840 --> 0:14:01.840 a jetliner but below a GPS satellite. 0:14:02.120 --> 0:14:06.080 Right now, Starlink has more than five six hundred satellites 0:14:06.200 --> 0:14:07.199 in orbit. 0:14:07.160 --> 0:14:09.400 And it accomplished all this in less time than it 0:14:09.400 --> 0:14:12.600 took James Cameron to make a second Avatar movie. 0:14:13.320 --> 0:14:16.800 At one point, SpaceX and vision launching up to forty 0:14:16.840 --> 0:14:18.640 two thousand satellites. 0:14:19.080 --> 0:14:23.040 But this speed and relative success has raised eyebrows, concerned 0:14:23.040 --> 0:14:26.160 ones in government and excited ones in the boardrooms of 0:14:26.160 --> 0:14:27.200 potential rivals. 0:14:27.840 --> 0:14:33.120 It's essentially a company trying to disrupt a somewhat complacent marketplace. 0:14:38.600 --> 0:14:40.960 So you can catch the full thing from Bloomberg originals 0:14:41.000 --> 0:14:42.000 at Bloomberg dot com. 0:14:42.040 --> 0:14:43.480 It's it must kind of watch. 0:14:43.520 --> 0:14:46.800 And the speed and relative success of elon musk Starlink 0:14:47.160 --> 0:14:50.000 has encouraged the deep pocketive rivals like Amazon co founder 0:14:50.040 --> 0:14:52.960 Jeff Bezos and his Blue Origin, which is actually slated 0:14:53.000 --> 0:14:56.120 to resume space tourist flights this Sunday after it had 0:14:56.160 --> 0:14:59.960 stopped crude operations two years ago following a mid flight mishap. 0:15:00.360 --> 0:15:02.960 I want to go out to Chicago and Bloombo's Kyle Porter. 0:15:03.320 --> 0:15:04.760 Let's start with the starlink doc. 0:15:04.840 --> 0:15:05.000 Right. 0:15:05.120 --> 0:15:07.640 That was one minute, but it's a longer thing. Tell 0:15:07.720 --> 0:15:09.840 us about the other items that you covered off in it. 0:15:11.040 --> 0:15:12.760 Well, thank you for having me on ed. We cover 0:15:12.880 --> 0:15:14.920 quite a bit of ground in those seven minutes. We 0:15:15.000 --> 0:15:19.000 look into how the service performs, Elon's plans for growth 0:15:19.000 --> 0:15:23.040 of the service, potential rivals, and as that one minute 0:15:23.040 --> 0:15:26.600 alluded to difficulties geopolitical and technical. 0:15:26.280 --> 0:15:26.960 With the service. 0:15:27.400 --> 0:15:31.160 Let's talk about technical difficulties because there's been a few 0:15:31.200 --> 0:15:34.160 launches that have been delayed of late. We're also anticipating 0:15:34.720 --> 0:15:39.360 the re launch or well certain regalvanization of Blue Origin 0:15:39.600 --> 0:15:40.360 this weekend. 0:15:40.600 --> 0:15:42.000 Things have been stopped start. 0:15:43.280 --> 0:15:46.360 They certainly have a little bit, and Elon's been a 0:15:46.400 --> 0:15:50.000 little bit frustrated in his getting approvals to build out 0:15:50.040 --> 0:15:52.880 the size of the network that he wants. Starlink's biggest 0:15:52.880 --> 0:15:56.160 problem is getting satellites in the air. Doing things in 0:15:56.320 --> 0:15:59.480 low earth orbit is fantastic and it decreases the latency, 0:15:59.720 --> 0:16:01.800 which is the time it takes for the signal to 0:16:01.800 --> 0:16:04.760 get back and down to your dish. However, you really 0:16:04.800 --> 0:16:06.200 need to think of it like filling off a bath. 0:16:06.400 --> 0:16:08.440 You need an awful lot more satellites in the air 0:16:09.320 --> 0:16:12.280 to stop your service slimming down. Frankly, they're not doing 0:16:12.320 --> 0:16:13.240 it as quickly as they'd like. 0:16:14.760 --> 0:16:16.960 Kyle, my understanding is you and I are under orders 0:16:16.960 --> 0:16:19.600 to be awake very early this Sunday because Blue Origin 0:16:19.640 --> 0:16:23.280 will try to launch its tourism offering again after two years. 0:16:23.640 --> 0:16:25.240 Just give us the basics of that mission. 0:16:26.200 --> 0:16:28.880 Yes, well you'll be earlier than I am. Thank goodness. 0:16:30.000 --> 0:16:32.680 The plan is after twenty twenty two. There was a 0:16:32.680 --> 0:16:36.640 mishapen I'm thankfully unmanned flight which saw Blue Origin ground 0:16:36.680 --> 0:16:39.480 its flights. This will mark the resumption. I believe it's 0:16:39.480 --> 0:16:44.200 the seventh flight to carry a crew, and it's also 0:16:44.200 --> 0:16:45.680 going to include someone rather special. 0:16:45.920 --> 0:16:46.120 Ed D. 0:16:46.120 --> 0:16:48.600 White, who was part of the original NASA program, would 0:16:48.600 --> 0:16:51.120 have been the first African American in space had he 0:16:51.200 --> 0:16:51.720 been picked. 0:16:52.640 --> 0:16:55.360 And then not to mention what happens early next week 0:16:55.480 --> 0:16:58.720 Boeing's first cruise space flight maybe just maybe using its 0:16:58.720 --> 0:17:02.120 Starliner craft. So that's been delayed a little bit. Maybe 0:17:02.120 --> 0:17:03.680 it'll come on May twenty first. There is a lot 0:17:03.680 --> 0:17:05.639 going on in space, has always been most Carl Porter 0:17:05.880 --> 0:17:08.840 helping us tell that story. I hope you both have 0:17:08.840 --> 0:17:11.040 to get up too early someday. Meanwhile, coming up after 0:17:11.080 --> 0:17:14.919 a volatile week of trading the Memestock rally, coming to 0:17:14.920 --> 0:17:15.720 back down to Earth. 0:17:15.760 --> 0:17:17.840 I could have used all the puns about to the moon, 0:17:17.920 --> 0:17:18.399 but I won't. 0:17:18.680 --> 0:17:21.600 We will bring you the latest next as a rumored technology. 0:17:30.560 --> 0:17:32.439 It is time for talking tech. These are some of 0:17:32.440 --> 0:17:34.719 the other stories we're following in the news. First up 0:17:34.760 --> 0:17:38.959 Snowflake is in talks to acquire startup Wreca Ai for 0:17:39.040 --> 0:17:42.240 more than one billion dollars. That's according to sources. RecA 0:17:42.320 --> 0:17:44.760 Ai is a producer of large language models and would 0:17:44.840 --> 0:17:49.160 enable software maker Snowflake to offer generative AI capabilities. Record 0:17:49.160 --> 0:17:52.000 Ai was founded in twenty twenty two and was valued 0:17:52.000 --> 0:17:54.960 at three hundred million dollars in a twenty twenty three 0:17:55.440 --> 0:17:59.560 investment round. Plus, Ingram Micro is preparing to move ahead 0:17:59.560 --> 0:18:02.080 with plans for an IPO that could raise more than 0:18:02.119 --> 0:18:05.600 one billion dollars. That also according to sources, who say 0:18:05.720 --> 0:18:10.040 Ingram's considering seeking evaluation of as much as ten billion dollars. 0:18:10.040 --> 0:18:12.760 The company has been working with Goldman Sachs and Morgan 0:18:12.840 --> 0:18:14.879 Stanley on the listing and is said to have added 0:18:14.920 --> 0:18:19.520 JP Morgan to its list of advisors, and Microsoft avoids 0:18:19.560 --> 0:18:23.480 a UK antitrust probe for its partnership with meestrel Ai. 0:18:23.760 --> 0:18:27.399 Last month, the UK Competition and Markets Authority announced that 0:18:27.480 --> 0:18:30.920 it was gathering information on whether the two companies threatened 0:18:30.920 --> 0:18:34.840 competition in the UK. The watchdog group reversed that decision, 0:18:34.920 --> 0:18:38.920 saying Microsoft does not have the ability to quote materially 0:18:39.119 --> 0:18:42.280 influence Miestrel's commercial policy. 0:18:42.560 --> 0:18:45.359 Caroline, Let's just go back to what was quite the 0:18:45.400 --> 0:18:48.280 frenzy at the start of the weekend, all the mean stops, 0:18:48.640 --> 0:18:51.119 but now that's come to a bit of an abrupt halt. 0:18:51.359 --> 0:18:53.600 Came so off as you see now only up sixteen percent, 0:18:53.720 --> 0:18:56.160 shares falling for a third secutive day. In fact, as 0:18:56.160 --> 0:18:58.840 a company pre announced earnings. So it may set up 0:18:58.840 --> 0:19:00.680 to fully five million shares. Let speke it all down 0:19:00.680 --> 0:19:02.840 in the most Bailey lipshals. And the point here is 0:19:02.840 --> 0:19:04.879 that we had GameStop. 0:19:04.359 --> 0:19:08.160 And AMC really soaring at the beginning of the week. 0:19:08.359 --> 0:19:10.520 AMC made the most of it. Now game stops trying 0:19:10.560 --> 0:19:11.240 to make the most. 0:19:11.040 --> 0:19:11.800 Of it exactly. 0:19:11.840 --> 0:19:14.920 AMC happened to have that at the market offering in 0:19:14.960 --> 0:19:17.280 the works before, so they were able to capitalize on 0:19:17.320 --> 0:19:19.280 that raise about one hundred and twenty five million. 0:19:19.080 --> 0:19:22.080 Dollars through sales of new shares. They also then. 0:19:22.000 --> 0:19:25.320 Announced a debt for equity swap, so diluting investors, but 0:19:25.400 --> 0:19:27.440