1 00:00:02,920 --> 00:00:09,680 Speaker 1: Bloomberg Audio Studios, podcasts, radio news from. 2 00:00:09,520 --> 00:00:14,079 Speaker 2: The Heart where Innovation, money and power. Collie in Silicon. 3 00:00:13,680 --> 00:00:14,560 Speaker 3: Valley, NBN. 4 00:00:14,880 --> 00:00:18,920 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 5 00:00:32,440 --> 00:00:34,840 Speaker 4: I'm Carolin Hyde at Bloomberg's world headquarters in New York 6 00:00:35,240 --> 00:00:36,880 Speaker 4: and I'm Ed Lovelow in San Francisco. 7 00:00:36,920 --> 00:00:38,760 Speaker 5: This is Bloomberg Technology. 8 00:00:38,240 --> 00:00:40,720 Speaker 4: Coming up in the next hour, unpacking those earnings. 9 00:00:40,840 --> 00:00:42,000 Speaker 3: Door Dash delivering the. 10 00:00:41,960 --> 00:00:45,360 Speaker 4: Goods, but while the stock pulls back, while DraftKings is 11 00:00:45,360 --> 00:00:48,519 Speaker 4: betting big on the lottery. Conversations with both companies this hour. 12 00:00:49,120 --> 00:00:53,239 Speaker 6: Plus super Micro drops ending a sizzling rally that put 13 00:00:53,320 --> 00:00:56,080 Speaker 6: the server company on a record breaking week. We have 14 00:00:56,120 --> 00:00:59,080 Speaker 6: an exclusive conversation with the company CEO. 15 00:00:58,920 --> 00:01:02,440 Speaker 4: Coming up, and AIICEO Sam Altman is looking to get 16 00:01:02,480 --> 00:01:05,520 Speaker 4: the green light from the US government Tori's billions for 17 00:01:05,560 --> 00:01:09,160 Speaker 4: a massive venure to boost global manufacturing of those AI chips. 18 00:01:09,480 --> 00:01:10,760 Speaker 4: Will bring you the story. 19 00:01:10,880 --> 00:01:13,080 Speaker 6: There's the hearing now with door Dash. I find DoorDash 20 00:01:13,120 --> 00:01:16,600 Speaker 6: really interesting because it has performed really well. The technology 21 00:01:16,640 --> 00:01:19,839 Speaker 6: story in the quarter was new product lines doing more 22 00:01:19,959 --> 00:01:22,880 Speaker 6: stuff on the platform, but it was a high bar 23 00:01:23,000 --> 00:01:24,800 Speaker 6: quarters when you look at their guidance for the full 24 00:01:24,840 --> 00:01:28,240 Speaker 6: year in terms of gross bookings or orders. It seems strong, 25 00:01:28,280 --> 00:01:30,320 Speaker 6: but clearly the stock is down ten percent. 26 00:01:30,760 --> 00:01:32,600 Speaker 5: So what is it that the street's not liking. 27 00:01:32,800 --> 00:01:35,720 Speaker 4: It's hard to tell, and perhaps it's that abit DAR 28 00:01:35,840 --> 00:01:38,920 Speaker 4: guidance not surpassing it for once. We're staying with Doordat 29 00:01:39,120 --> 00:01:42,319 Speaker 4: stick in with a CFO Ravi in Ukonda joining us 30 00:01:42,600 --> 00:01:45,520 Speaker 4: for those fourth quarter numbers, and I start with, well, 31 00:01:45,560 --> 00:01:49,720 Speaker 4: the tough one, Ravi. The takeaway is not quite good enough. 32 00:01:49,760 --> 00:01:52,280 Speaker 4: Can you talk us through perhaps the adjusted a bit 33 00:01:52,360 --> 00:01:54,880 Speaker 4: DAR number, the concerns creeping in or is it just 34 00:01:54,880 --> 00:01:56,360 Speaker 4: that your stocks performed too well? 35 00:01:56,360 --> 00:01:56,640 Speaker 3: Of late? 36 00:01:58,120 --> 00:02:01,520 Speaker 7: Twenty twenty three was Tulie transformative year for us. It 37 00:02:01,640 --> 00:02:04,320 Speaker 7: was an inflection here for us, both from a growth 38 00:02:04,320 --> 00:02:06,040 Speaker 7: as well as a profitability perspective. 39 00:02:06,360 --> 00:02:10,760 Speaker 8: We've truly become a daily habit, more users. 40 00:02:10,440 --> 00:02:13,520 Speaker 7: Than ever before or ordering from more categories than ever before. 41 00:02:13,919 --> 00:02:14,920 Speaker 8: And at the same. 42 00:02:14,720 --> 00:02:18,640 Speaker 7: Time, the business is doing really well where ibiddies three 43 00:02:18,680 --> 00:02:21,600 Speaker 7: times more in twenty three compared to twenty twenty two levels. 44 00:02:21,880 --> 00:02:23,919 Speaker 7: And what we are trying to do is continue to 45 00:02:24,000 --> 00:02:27,760 Speaker 7: drive innovation on the product front, Introduce more products, introduce 46 00:02:27,840 --> 00:02:31,839 Speaker 7: more features where we have users ordered from more categories 47 00:02:32,080 --> 00:02:34,240 Speaker 7: across thirty different countries around the goal. 48 00:02:35,080 --> 00:02:39,680 Speaker 4: You've helped that net loss particularly driven down by efficiencies, 49 00:02:39,680 --> 00:02:42,799 Speaker 4: particularly on the logistics side, Ravi. But what therefore for 50 00:02:42,919 --> 00:02:45,760 Speaker 4: the bottom line to meet your guidance, your own given 51 00:02:45,760 --> 00:02:48,880 Speaker 4: guidance for ABITTA adjusted EBITDA going forward, what do you 52 00:02:48,919 --> 00:02:49,399 Speaker 4: need to do? 53 00:02:49,400 --> 00:02:49,959 Speaker 3: Do you think. 54 00:02:51,480 --> 00:02:56,359 Speaker 7: Our goal is always to drive more users to the platform, continue. 55 00:02:55,840 --> 00:02:56,680 Speaker 8: To order more. 56 00:02:57,240 --> 00:03:00,760 Speaker 7: Profitability in our business is driven by growth. We saw 57 00:03:00,800 --> 00:03:01,679 Speaker 7: that in twenty three. 58 00:03:01,919 --> 00:03:03,760 Speaker 8: Our goal is to continue to do the same in 59 00:03:03,760 --> 00:03:04,600 Speaker 8: twenty twenty four. 60 00:03:05,000 --> 00:03:06,480 Speaker 7: And at the same time, if you look at our 61 00:03:06,520 --> 00:03:10,120 Speaker 7: operating expenses, they've been relatively flat for the last six 62 00:03:10,200 --> 00:03:13,360 Speaker 7: quarters while we continued to drive revenue growth north of 63 00:03:13,400 --> 00:03:14,040 Speaker 7: thirty percent. 64 00:03:14,400 --> 00:03:16,280 Speaker 8: When I look at twenty twenty four, our goal is. 65 00:03:16,240 --> 00:03:18,040 Speaker 7: Going to be the same, which is we're going to 66 00:03:18,120 --> 00:03:20,920 Speaker 7: drive users, We're going to drive order frequency, We're going 67 00:03:20,960 --> 00:03:24,079 Speaker 7: to continue to drive leverage from an overall operating expense 68 00:03:24,160 --> 00:03:24,920 Speaker 7: perspective as. 69 00:03:24,800 --> 00:03:28,320 Speaker 6: Well, Rabbi, there are loads of names on the street 70 00:03:28,400 --> 00:03:30,760 Speaker 6: that are saying there's nothing wrong with the report, nothing 71 00:03:30,800 --> 00:03:32,960 Speaker 6: bad in it. Maybe they look at the four year 72 00:03:33,000 --> 00:03:37,280 Speaker 6: bookings guidance and say that it indicates maybe deceleration in 73 00:03:37,320 --> 00:03:39,200 Speaker 6: the back end of the year. So let's put the 74 00:03:39,280 --> 00:03:41,720 Speaker 6: numbers to one side. What does the world look like 75 00:03:41,880 --> 00:03:44,000 Speaker 6: right now to door Dash, both in terms of like 76 00:03:44,120 --> 00:03:47,160 Speaker 6: driver supply demand from the consumer corporate demand. 77 00:03:48,720 --> 00:03:52,200 Speaker 7: Consumer demand on the platform continues to be really strong. 78 00:03:52,720 --> 00:03:54,480 Speaker 7: If you look at twenty three, in a year when 79 00:03:54,520 --> 00:03:58,040 Speaker 7: people thought consumers were pulling back, our users set a 80 00:03:58,120 --> 00:03:58,760 Speaker 7: record high. 81 00:03:59,320 --> 00:04:01,600 Speaker 8: Our scale at thirty seven million. 82 00:04:01,720 --> 00:04:05,680 Speaker 7: Consumers globally continues to order with us every single month, 83 00:04:06,120 --> 00:04:09,120 Speaker 7: and usage levels have also increased, where our order frequency 84 00:04:09,160 --> 00:04:12,160 Speaker 7: has reached a record high. And from a supply perspective, 85 00:04:12,560 --> 00:04:15,320 Speaker 7: we've been really well supplied. Supply has been as good 86 00:04:15,360 --> 00:04:17,920 Speaker 7: as been over the last couple of years. When you 87 00:04:17,960 --> 00:04:20,120 Speaker 7: look at the consumer demand, it's really strong. When you 88 00:04:20,120 --> 00:04:22,280 Speaker 7: look at the supply side metrics, it continues to be 89 00:04:22,320 --> 00:04:25,400 Speaker 7: really strong, which is allowing us to drive growth as 90 00:04:25,440 --> 00:04:27,560 Speaker 7: well as the bottom line profitability that you're seeing in 91 00:04:27,560 --> 00:04:28,320 Speaker 7: the business today. 92 00:04:29,640 --> 00:04:32,400 Speaker 6: Robbie, I always think about though, DASH it's like a 93 00:04:32,480 --> 00:04:35,359 Speaker 6: really big software company and we don't really have a 94 00:04:35,440 --> 00:04:37,719 Speaker 6: talk about that side of the business, right the creation 95 00:04:37,839 --> 00:04:42,120 Speaker 6: of a marketplace, but also you're essentially offering software to 96 00:04:42,200 --> 00:04:45,839 Speaker 6: third parties making their back end. How is that side 97 00:04:45,839 --> 00:04:46,760 Speaker 6: of your business doing. 98 00:04:48,200 --> 00:04:52,159 Speaker 7: Our platform services business, which is the software aspect of 99 00:04:52,200 --> 00:04:56,200 Speaker 7: our business, continues to do really well. Our goal is 100 00:04:56,240 --> 00:04:59,240 Speaker 7: to be with where merchants want us to be. We 101 00:04:59,279 --> 00:05:01,400 Speaker 7: want a power merchants with their own. 102 00:05:01,200 --> 00:05:04,680 Speaker 8: First party channel. We offer a product called Storefront, which powers. 103 00:05:04,720 --> 00:05:06,920 Speaker 7: Merchants' own websites, and at the same time we are 104 00:05:06,960 --> 00:05:10,440 Speaker 7: providing our logistics engines for merchants in order to help 105 00:05:10,480 --> 00:05:13,640 Speaker 7: them augment their own service as well. 106 00:05:13,760 --> 00:05:17,200 Speaker 4: You're not just serving merchants in the United States. You 107 00:05:17,279 --> 00:05:20,640 Speaker 4: made a key acquisition, and I'm thinking of Walt in particular, 108 00:05:20,960 --> 00:05:23,960 Speaker 4: the effort to go into national RAWI do you stay 109 00:05:24,360 --> 00:05:26,840 Speaker 4: in the countries you're in and expand from there, even 110 00:05:26,920 --> 00:05:29,640 Speaker 4: though that perhaps not as populated as others in Western Europe? 111 00:05:29,800 --> 00:05:32,920 Speaker 4: Or do you look to acquire or build yourself elsewhere. 112 00:05:34,560 --> 00:05:37,920 Speaker 7: Today we are operating in about twenty eight countries outside 113 00:05:37,920 --> 00:05:41,080 Speaker 7: the United States. When I look at our international business, 114 00:05:41,080 --> 00:05:44,720 Speaker 7: it's going really fast, sometimes even five to six times 115 00:05:44,760 --> 00:05:47,839 Speaker 7: faster than peers, which is allowing us to gain share 116 00:05:48,160 --> 00:05:50,920 Speaker 7: in virtually almost all of the markets that we operate in. 117 00:05:51,560 --> 00:05:53,800 Speaker 7: Even in the markets that we operate in today, we 118 00:05:53,839 --> 00:05:57,120 Speaker 7: are just serving a small fraction of the users. We 119 00:05:57,160 --> 00:05:59,599 Speaker 7: have our hands full with our existing markets. We're going 120 00:05:59,640 --> 00:06:02,720 Speaker 7: to contain new to innovate in those markets by offering 121 00:06:02,760 --> 00:06:04,919 Speaker 7: new products. We're bringing grocery to many of the inter 122 00:06:05,040 --> 00:06:08,240 Speaker 7: national markets where the penetration levels in some countries are 123 00:06:08,240 --> 00:06:11,719 Speaker 7: even higher than what we're seeing in the US. As always, 124 00:06:11,960 --> 00:06:15,919 Speaker 7: our goal is to drive improvements in selection, drive improvements 125 00:06:15,920 --> 00:06:18,640 Speaker 7: in quality as well as affordability across all the countries 126 00:06:18,640 --> 00:06:20,279 Speaker 7: that we operate in, Tonet, and let's talk. 127 00:06:20,120 --> 00:06:23,000 Speaker 4: About that affordability. Tony also echoing that then, really twenty 128 00:06:23,040 --> 00:06:25,640 Speaker 4: twenty four is about making sure that the service is affordable. 129 00:06:25,640 --> 00:06:27,880 Speaker 4: How do you do that, Rabi? When we've got, you know, 130 00:06:27,960 --> 00:06:30,359 Speaker 4: still relatively information re environments on here in the. 131 00:06:30,400 --> 00:06:34,480 Speaker 7: US, affordability is a key strategic priority for US and 132 00:06:34,839 --> 00:06:38,600 Speaker 7: top of mind today. More than half of our users 133 00:06:39,080 --> 00:06:42,760 Speaker 7: do not pay any delivery fee. Almost eighteen million subscribers 134 00:06:42,760 --> 00:06:45,679 Speaker 7: on our dash Pass program, and we've lounched that program 135 00:06:45,760 --> 00:06:49,239 Speaker 7: just about five years ago, and we've saved consumers over 136 00:06:49,360 --> 00:06:52,280 Speaker 7: ten billion dollars. And at the same time we are 137 00:06:52,279 --> 00:06:55,760 Speaker 7: innovating on the product side. We're really proud that low 138 00:06:55,800 --> 00:06:58,960 Speaker 7: income families can use government subsidies to be able to 139 00:06:59,040 --> 00:07:01,920 Speaker 7: order groceries on the platt and this is our way 140 00:07:01,960 --> 00:07:05,359 Speaker 7: of giving back convenience, value and time to our consumers. 141 00:07:07,480 --> 00:07:11,120 Speaker 6: Robbie, let's use free cash flow as a kind of 142 00:07:11,680 --> 00:07:15,520 Speaker 6: strategy conversation. You know, you did really well twenty twenty three, 143 00:07:16,200 --> 00:07:18,640 Speaker 6: but you know, carolinees bringing out some really kind of 144 00:07:19,000 --> 00:07:21,480 Speaker 6: big points. There's a lot of anxiety right about credit 145 00:07:21,480 --> 00:07:24,560 Speaker 6: card data. And I bring that up because at some 146 00:07:24,720 --> 00:07:28,200 Speaker 6: point the consumer might go away, and like your your 147 00:07:28,200 --> 00:07:31,160 Speaker 6: industry peers, you might have to say we need to 148 00:07:31,200 --> 00:07:36,800 Speaker 6: do more discounts, incentivizing promotional work. And I'm assuming that 149 00:07:36,800 --> 00:07:39,080 Speaker 6: that does impact free cash flow going forward. 150 00:07:41,520 --> 00:07:43,800 Speaker 8: Free cash flow is a really important metric for us. 151 00:07:43,840 --> 00:07:46,360 Speaker 7: If you look at twenty twenty three, I'm really proud 152 00:07:46,400 --> 00:07:49,640 Speaker 7: that we generated over one point three billion of free 153 00:07:49,680 --> 00:07:52,120 Speaker 7: cash flow, which, as you pointed out, as an important 154 00:07:52,120 --> 00:07:54,320 Speaker 7: help metric for us and investors when we look at 155 00:07:54,360 --> 00:07:57,760 Speaker 7: the overall health of the business. Our focus has always 156 00:07:57,840 --> 00:08:01,400 Speaker 7: been on product as well as innovation on in terms 157 00:08:01,400 --> 00:08:02,200 Speaker 7: of technology. 158 00:08:02,440 --> 00:08:03,800 Speaker 8: I mean just a few examples. 159 00:08:03,880 --> 00:08:06,640 Speaker 7: The way we're driving growth is today We have more 160 00:08:06,680 --> 00:08:09,640 Speaker 7: than one hundred and fifty thousand stores that are outside 161 00:08:09,680 --> 00:08:12,680 Speaker 7: of restaurants. Virtually, when I joined the company a few 162 00:08:12,720 --> 00:08:16,120 Speaker 7: years ago, there was no stores that are grocery related 163 00:08:16,160 --> 00:08:19,520 Speaker 7: on the platform. Our goal is to bring technology, bring 164 00:08:19,560 --> 00:08:23,000 Speaker 7: product innovation to the thirty seven million consumers. 165 00:08:22,480 --> 00:08:24,760 Speaker 8: We have on the platform, and that's what's going to 166 00:08:24,840 --> 00:08:25,600 Speaker 8: drive both. 167 00:08:25,400 --> 00:08:27,520 Speaker 7: Growth as well as profitability in the business for us, 168 00:08:27,720 --> 00:08:31,000 Speaker 7: which ultimately what RABI. 169 00:08:30,840 --> 00:08:33,640 Speaker 6: What is the next technology frontie, what is the next 170 00:08:33,720 --> 00:08:36,440 Speaker 6: new product for door Dash. 171 00:08:36,840 --> 00:08:42,599 Speaker 7: We are operating in three large segments, Restaurants, grocery, and international, 172 00:08:42,800 --> 00:08:45,600 Speaker 7: each of which are roughly about a trillion dollars, where 173 00:08:45,600 --> 00:08:49,559 Speaker 7: the penetration levels are still very very early. I'm excited 174 00:08:49,559 --> 00:08:52,800 Speaker 7: about the progress we've made, but we continue to drive 175 00:08:52,920 --> 00:08:56,559 Speaker 7: more in terms of adding more categories, adding more selection, 176 00:08:56,679 --> 00:08:59,680 Speaker 7: which is content on the platform, while making the product 177 00:08:59,679 --> 00:09:00,960 Speaker 7: more horrible. 178 00:09:00,600 --> 00:09:03,280 Speaker 8: As well as high quality. If we continue to. 179 00:09:03,240 --> 00:09:06,480 Speaker 7: Do that, we're going to drive more users, have them 180 00:09:06,600 --> 00:09:09,040 Speaker 7: ordered more with us, which is ultimately going to drive. 181 00:09:08,920 --> 00:09:11,680 Speaker 3: Pro actibility for Dash. 182 00:09:11,720 --> 00:09:13,880 Speaker 6: CFO Ravian a kind of great catch up with you 183 00:09:13,920 --> 00:09:15,239 Speaker 6: here on the program. 184 00:09:15,360 --> 00:09:23,720 Speaker 5: This has been Bow Technology. 185 00:09:24,760 --> 00:09:28,280 Speaker 6: Super micro stock has been on a roller coaster shares, 186 00:09:28,280 --> 00:09:31,360 Speaker 6: whip sword in volatile trading today, there anything to derail 187 00:09:31,440 --> 00:09:33,679 Speaker 6: what's set to be or was set to be the 188 00:09:33,720 --> 00:09:36,800 Speaker 6: server maker's best week on record. I'm delighted to say 189 00:09:36,840 --> 00:09:41,640 Speaker 6: super Micro's founder, president and CEO, Charles Leang, joins us 190 00:09:41,679 --> 00:09:45,800 Speaker 6: now live. Charles, good morning to you, and welcome to 191 00:09:45,840 --> 00:09:46,400 Speaker 6: the program. 192 00:09:46,480 --> 00:09:49,040 Speaker 5: Let's start there. Okay, let's just get it done. 193 00:09:49,880 --> 00:09:52,240 Speaker 6: The store one has been on a good morning, the 194 00:09:52,280 --> 00:09:55,600 Speaker 6: stock has been on a wild ride. Is your company 195 00:09:55,760 --> 00:09:57,200 Speaker 6: fairly valued. 196 00:09:59,440 --> 00:09:59,720 Speaker 2: Years? 197 00:10:00,000 --> 00:10:02,840 Speaker 1: I mean, I said, you know, we deliver the based 198 00:10:03,120 --> 00:10:07,160 Speaker 1: generality AI playform in our world, especially in terms of 199 00:10:07,200 --> 00:10:11,000 Speaker 1: time to market or enable new technology available. We are 200 00:10:11,040 --> 00:10:14,760 Speaker 1: able to deliver new product to the market, and we 201 00:10:14,880 --> 00:10:17,679 Speaker 1: deal in a system debl. 202 00:10:17,800 --> 00:10:21,000 Speaker 2: Or re scale. We call our rec program play. 203 00:10:21,520 --> 00:10:25,400 Speaker 1: When casone we see they are ready to be online, 204 00:10:25,559 --> 00:10:26,400 Speaker 1: they're programing to. 205 00:10:26,520 --> 00:10:29,440 Speaker 2: Cable, the cable and the power cable, and then they 206 00:10:29,440 --> 00:10:30,560 Speaker 2: are ready to be on nine. 207 00:10:30,640 --> 00:10:34,080 Speaker 1: So casone like good quality, time to market and ready 208 00:10:34,120 --> 00:10:36,360 Speaker 1: to run avantage. 209 00:10:35,840 --> 00:10:39,120 Speaker 6: Charles, there's clearly a lot of excitement in the market 210 00:10:39,280 --> 00:10:43,400 Speaker 6: that whatever is happening in AI infrastructure investment. You are 211 00:10:43,440 --> 00:10:46,880 Speaker 6: a core beneficiary, but one of the questions that Caroline 212 00:10:46,880 --> 00:10:50,280 Speaker 6: and I get for you consistently is what is it 213 00:10:50,320 --> 00:10:54,160 Speaker 6: that super micro does. There's any different from your biggest 214 00:10:54,160 --> 00:10:56,679 Speaker 6: competitors names like Dell, Hpe. 215 00:10:58,880 --> 00:11:02,040 Speaker 1: Very good question. Yeah, I've been spatial first. We have 216 00:11:02,080 --> 00:11:05,280 Speaker 1: a very market company since thirty years ago. I founded 217 00:11:05,320 --> 00:11:10,160 Speaker 1: a company Shivomanco. We use building Brock solution, a matriology 218 00:11:10,200 --> 00:11:13,760 Speaker 1: design to build our server to build our total solutions, 219 00:11:14,000 --> 00:11:17,839 Speaker 1: and the building Brock solution enabled us to design more 220 00:11:17,880 --> 00:11:23,040 Speaker 1: efficientcy with better quality, better inventory leverage, and better a 221 00:11:23,280 --> 00:11:27,360 Speaker 1: service efficiency. That's why we are able to deliver new 222 00:11:27,400 --> 00:11:29,840 Speaker 1: technology time to market earlier than adults. 223 00:11:30,360 --> 00:11:33,080 Speaker 2: And plus our two global. 224 00:11:32,800 --> 00:11:37,520 Speaker 1: Company, we have an engineer working Samos Bay Area and 225 00:11:37,640 --> 00:11:41,080 Speaker 1: also a pig team in Taiwan, so we two. 226 00:11:40,880 --> 00:11:43,160 Speaker 2: Team Asia and USA. 227 00:11:43,280 --> 00:11:48,240 Speaker 1: So we are able to design more efficiently than others basically, and. 228 00:11:48,160 --> 00:11:50,880 Speaker 4: We can see for our radio audience. We can see 229 00:11:51,240 --> 00:11:54,480 Speaker 4: all the products that you make behind you and I'm interested, Charles, 230 00:11:54,800 --> 00:11:58,400 Speaker 4: the scale of the market size here, the total addressable market? 231 00:11:58,679 --> 00:12:00,559 Speaker 4: How big can it be? How big get chunk of 232 00:12:00,600 --> 00:12:01,880 Speaker 4: the pie are you're going to get? 233 00:12:03,320 --> 00:12:03,520 Speaker 3: Oh? 234 00:12:03,640 --> 00:12:07,720 Speaker 1: Yeah, that's another advantage we have with design, protum barrier 235 00:12:08,080 --> 00:12:11,920 Speaker 1: and manufacturing barrier and global as well. So I mean 236 00:12:12,080 --> 00:12:16,160 Speaker 1: we open with Cosmo from design stage vedidation stage, and 237 00:12:16,360 --> 00:12:20,680 Speaker 1: here we ship the Cosmo MACADM problem play. And yes, 238 00:12:21,120 --> 00:12:24,520 Speaker 1: we have a huge capacity ready now in Silicon Vedia 239 00:12:24,520 --> 00:12:27,440 Speaker 1: alone we are able to build a four thousand rack 240 00:12:27,679 --> 00:12:32,480 Speaker 1: of months or equal to about fifteen thousand systems per months, 241 00:12:32,960 --> 00:12:36,040 Speaker 1: and in Asia in Europe we also have a per 242 00:12:36,080 --> 00:12:40,600 Speaker 1: thousand capability there. So basically we are able to build 243 00:12:40,640 --> 00:12:45,320 Speaker 1: a enough server for our customer. But now, as you know, 244 00:12:45,559 --> 00:12:49,440 Speaker 1: the shortage, the chip shortage, so once we have a 245 00:12:49,440 --> 00:12:52,920 Speaker 1: more surprise from the chip company in media, then we 246 00:12:52,960 --> 00:12:54,120 Speaker 1: can shiver more to customer. 247 00:12:54,800 --> 00:12:58,320 Speaker 4: Let's talk about the chip makers being videos. But you're 248 00:12:58,400 --> 00:13:00,920 Speaker 4: kind of agnostic here, right you take trips and mentally 249 00:13:01,000 --> 00:13:01,959 Speaker 4: take chips and inn video. 250 00:13:02,360 --> 00:13:03,760 Speaker 5: What are your relationships like? 251 00:13:06,240 --> 00:13:06,640 Speaker 3: Okay? 252 00:13:06,880 --> 00:13:09,960 Speaker 1: Indeed, we both companies are founded in nineteen ninety three, 253 00:13:10,320 --> 00:13:13,320 Speaker 1: so both companies are thirty years old company. We start 254 00:13:13,360 --> 00:13:16,720 Speaker 1: to work together almost since day onide, so we're thirty 255 00:13:16,800 --> 00:13:22,280 Speaker 1: years relationship, engineering partnership and then go to market, define 256 00:13:22,280 --> 00:13:23,360 Speaker 1: that market, that's speak. 257 00:13:23,800 --> 00:13:26,760 Speaker 2: So we have been at working medic closely. However, we 258 00:13:26,800 --> 00:13:28,320 Speaker 2: hope they have a more cheap. 259 00:13:28,200 --> 00:13:35,160 Speaker 6: Available, Charles, do you have a number, a dollar value 260 00:13:35,559 --> 00:13:39,760 Speaker 6: for the total addressable market that you see for your 261 00:13:39,840 --> 00:13:43,520 Speaker 6: company in the context of an AI infrastructure build out. 262 00:13:45,960 --> 00:13:51,199 Speaker 1: You know, were always facing to pick back older. So 263 00:13:52,640 --> 00:13:57,360 Speaker 1: the market size is growing asid you know, aipoom. Basically 264 00:13:57,400 --> 00:14:00,600 Speaker 1: they as a start. We believe the market have a 265 00:14:00,640 --> 00:14:03,360 Speaker 1: big loom to grow a lot of our integry leader 266 00:14:03,600 --> 00:14:09,359 Speaker 1: Hybular seven feed in so as today our Protusian capacity 267 00:14:09,440 --> 00:14:13,520 Speaker 1: can support our revenue up to twenty five billion dollars 268 00:14:13,559 --> 00:14:16,360 Speaker 1: for example, but we need a more chip like why 269 00:14:16,440 --> 00:14:19,760 Speaker 1: he hasn't mentioned. So again, the market continued to grow 270 00:14:20,160 --> 00:14:23,200 Speaker 1: and we continue to get mac jal because of a 271 00:14:23,240 --> 00:14:26,000 Speaker 1: bitter product, because of red. 272 00:14:25,800 --> 00:14:28,480 Speaker 2: Scale program play. 273 00:14:28,800 --> 00:14:33,760 Speaker 1: So we are continuing growing our Patussian capacity in United 274 00:14:33,760 --> 00:14:36,960 Speaker 1: State and globally as well. 275 00:14:37,120 --> 00:14:39,960 Speaker 6: For a Bloomberg television and radio audience were speaking to 276 00:14:40,040 --> 00:14:44,320 Speaker 6: super Micro CEO Charles Liang. Charles, when we said that 277 00:14:44,360 --> 00:14:47,480 Speaker 6: you were coming on the program, our audience had many questions. 278 00:14:47,800 --> 00:14:51,080 Speaker 6: One of them is about the SEC action taken against 279 00:14:51,080 --> 00:14:55,400 Speaker 6: your company in August of twenty twenty. The SEC charged 280 00:14:55,440 --> 00:14:59,360 Speaker 6: super Micro and the former CFO of the company with 281 00:14:59,400 --> 00:15:04,640 Speaker 6: what they call widespread accounting violations and some numbers presented 282 00:15:04,680 --> 00:15:07,600 Speaker 6: by the company. Could you update our audience in your 283 00:15:07,640 --> 00:15:10,600 Speaker 6: investor base on where that process is and if you've 284 00:15:10,600 --> 00:15:12,200 Speaker 6: put those concerns behind you. 285 00:15:13,560 --> 00:15:13,720 Speaker 9: Oh? 286 00:15:13,800 --> 00:15:17,200 Speaker 1: Yeah, those concerns have been behind us for many years. 287 00:15:17,400 --> 00:15:21,280 Speaker 1: So first so we are study detail. 288 00:15:21,520 --> 00:15:22,720 Speaker 2: Hey, well we can. 289 00:15:22,680 --> 00:15:26,880 Speaker 1: Improve during that few years, and then we are add 290 00:15:26,920 --> 00:15:32,560 Speaker 1: a more telling, more expertise like our new CFO debut Wagan. 291 00:15:32,960 --> 00:15:35,080 Speaker 2: So we have been improving. 292 00:15:34,680 --> 00:15:39,120 Speaker 1: Our seism and today our system maybe I can say 293 00:15:39,280 --> 00:15:43,640 Speaker 1: perfect in concern, but have been much stronger than before 294 00:15:43,640 --> 00:15:46,200 Speaker 1: ever and we are continue to improved. 295 00:15:46,480 --> 00:15:46,840 Speaker 3: Thank you. 296 00:15:47,760 --> 00:15:52,600 Speaker 4: I'm interested in Therefore, when you see the stock market move, 297 00:15:52,840 --> 00:15:56,960 Speaker 4: the anticipation of growth, the fact that you're seeing, well 298 00:15:57,360 --> 00:16:00,600 Speaker 4: only one current analyst on your stock is saying sell 299 00:16:00,760 --> 00:16:03,760 Speaker 4: after the huge rally that you've had two and fifty 300 00:16:03,800 --> 00:16:06,600 Speaker 4: percent just this year alone, what do you do as 301 00:16:06,600 --> 00:16:09,160 Speaker 4: the leader in the face of that, of that bullishness? 302 00:16:09,160 --> 00:16:11,200 Speaker 4: Do you start to sell your stock? Are you starting 303 00:16:11,240 --> 00:16:13,320 Speaker 4: to buy more of it? Is some of your members 304 00:16:13,360 --> 00:16:14,480 Speaker 4: of your boardermen doing. 305 00:16:15,560 --> 00:16:20,280 Speaker 1: I guess the most important product again, the market demand 306 00:16:20,400 --> 00:16:23,320 Speaker 1: is so strong and in turned out we have the 307 00:16:23,400 --> 00:16:27,320 Speaker 1: base of the product. H non jazz technology turn to market, 308 00:16:27,680 --> 00:16:30,320 Speaker 1: but quality and application optimized. 309 00:16:30,600 --> 00:16:32,040 Speaker 2: We sat our operating book solution. 310 00:16:32,400 --> 00:16:37,560 Speaker 1: We are able to custumomize our system easily to specifically 311 00:16:37,600 --> 00:16:40,280 Speaker 1: optimize for customer okerlow for theirs. 312 00:16:40,360 --> 00:16:42,119 Speaker 2: In the environment, that's a matter. 313 00:16:41,960 --> 00:16:46,720 Speaker 1: For air couting, free air cooting or the cooling. So oh, 314 00:16:46,840 --> 00:16:51,080 Speaker 1: those make our product really popular around the market. And 315 00:16:51,120 --> 00:16:54,480 Speaker 1: I believe we are continuing to gain max jail and 316 00:16:54,640 --> 00:16:56,160 Speaker 1: uh continue to grow. 317 00:16:57,040 --> 00:17:00,200 Speaker 4: So it sounds like you're long, Charles. I mean I'm 318 00:17:00,200 --> 00:17:06,520 Speaker 4: interested in well, your expertise. Let's put it in geopolitics, 319 00:17:06,760 --> 00:17:09,400 Speaker 4: in global supply chains and the fact that you had 320 00:17:09,400 --> 00:17:12,280 Speaker 4: to pull out your manufacturing from China previously because of 321 00:17:12,480 --> 00:17:16,959 Speaker 4: ultimately the Chinese intelligence services inserting malicious components into your 322 00:17:16,960 --> 00:17:19,520 Speaker 4: server and motherboards. It was like the story of twenty eighteen. 323 00:17:20,160 --> 00:17:24,320 Speaker 4: How do you see that restriction on supply and the 324 00:17:24,440 --> 00:17:28,680 Speaker 4: ongoing relationship between US and China now and affecting your business? 325 00:17:30,040 --> 00:17:33,760 Speaker 1: Okay, I mean we are USA company, located in the 326 00:17:33,800 --> 00:17:38,520 Speaker 1: city company, so we follow the national as though country. 327 00:17:38,600 --> 00:17:42,520 Speaker 1: The compliance beveryware and that's number one. And then we 328 00:17:42,640 --> 00:17:46,440 Speaker 1: try to service CASMO Global as much as we could, 329 00:17:46,760 --> 00:17:50,800 Speaker 1: especially customer in the USA. So today most of our 330 00:17:50,840 --> 00:17:56,399 Speaker 1: production facility are in USA and Passio in Taiwan, and 331 00:17:56,440 --> 00:17:59,520 Speaker 1: we are debtap in a new campus in Malaysia. So 332 00:18:00,240 --> 00:18:06,840 Speaker 1: of Podus security dibility supply chain, I believe we are 333 00:18:06,920 --> 00:18:09,920 Speaker 1: in a one past the position. 334 00:18:11,359 --> 00:18:14,119 Speaker 4: Just neine more of those chips, Charles m. It has 335 00:18:14,160 --> 00:18:17,000 Speaker 4: been great speaking with you. An extraordinary share price move 336 00:18:17,320 --> 00:18:18,879 Speaker 4: and great to have some time with you today to 337 00:18:18,880 --> 00:18:21,160 Speaker 4: see the product behind you as well for our TV audience, 338 00:18:21,359 --> 00:18:23,280 Speaker 4: with our radio audience, thanks you for your time. To 339 00:18:23,400 --> 00:18:35,480 Speaker 4: super Micro CEO, Charles Leangler. Apple, where is it with 340 00:18:35,600 --> 00:18:38,720 Speaker 4: its AI capabilities? They've been racing, in fact, to near 341 00:18:38,720 --> 00:18:41,480 Speaker 4: the completion of a critical new software tool for app 342 00:18:41,520 --> 00:18:45,199 Speaker 4: developers that could potentially rival Microsoft Get Help Copilot, and 343 00:18:45,240 --> 00:18:47,760 Speaker 4: according to sources, it could be available to third party 344 00:18:47,800 --> 00:18:50,520 Speaker 4: software makers as early as this year. Here with more 345 00:18:50,760 --> 00:18:52,560 Speaker 4: of course, the man with the scoop mark them and 346 00:18:52,600 --> 00:18:54,479 Speaker 4: we're pleasure to welcome you as always. 347 00:18:54,920 --> 00:18:55,600 Speaker 3: Just talk us through. 348 00:18:55,640 --> 00:18:57,719 Speaker 4: We'd all been waiting with beta breathas to ultimately how 349 00:18:57,720 --> 00:18:58,600 Speaker 4: Apple adopts AI. 350 00:19:00,080 --> 00:19:01,399 Speaker 8: Yeah, thank you so much for having me. 351 00:19:01,480 --> 00:19:05,119 Speaker 9: So twenty twenty four it's ther of AI for Apple 352 00:19:05,359 --> 00:19:08,800 Speaker 9: Generative AI in large language models. To be specific, the 353 00:19:08,840 --> 00:19:13,200 Speaker 9: company is working on several new artificial intelligence initiatives to 354 00:19:13,280 --> 00:19:16,639 Speaker 9: run on both the iPhone and the Mac. And one 355 00:19:16,720 --> 00:19:19,159 Speaker 9: of the most important things is setting your sort of 356 00:19:19,200 --> 00:19:22,920 Speaker 9: infrastructure and foundation to integrate AI. 357 00:19:22,680 --> 00:19:23,440 Speaker 8: Into your products. 358 00:19:23,440 --> 00:19:25,680 Speaker 9: And the most core thing you can do is add 359 00:19:25,800 --> 00:19:29,800 Speaker 9: artificial intelligence to your programmed right tools. That's x code, 360 00:19:29,840 --> 00:19:33,760 Speaker 9: that's the software used by developers inside Apple and outside Apple, 361 00:19:33,840 --> 00:19:35,040 Speaker 9: so they'll be adding AI to that. 362 00:19:36,240 --> 00:19:39,440 Speaker 6: I'm really interested mark on the pressure that Craig Feederigi's 363 00:19:39,520 --> 00:19:42,000 Speaker 6: under because if you read the detail in your story, 364 00:19:42,000 --> 00:19:44,480 Speaker 6: which is terrific by the way, you know the boards 365 00:19:44,680 --> 00:19:47,239 Speaker 6: was given a demo of the latest and AI at 366 00:19:47,240 --> 00:19:50,040 Speaker 6: the end of last year and they've almost real They 367 00:19:50,080 --> 00:19:53,560 Speaker 6: basically said, you three key personnel, give us the product. 368 00:19:55,560 --> 00:19:55,760 Speaker 3: Yeah. 369 00:19:55,840 --> 00:19:59,040 Speaker 9: Craig Fedorigi, he's Apple Senior vice president of Software Engineering. 370 00:19:59,160 --> 00:20:02,000 Speaker 9: He's really taken bold by the horn here. He's a 371 00:20:02,080 --> 00:20:03,200 Speaker 9: huge proponent. 372 00:20:02,800 --> 00:20:04,520 Speaker 8: Of LM's and generative AI. 373 00:20:04,920 --> 00:20:08,080 Speaker 9: When chat GPT started to hit the market a couple 374 00:20:08,119 --> 00:20:10,240 Speaker 9: of years ago, he was the one really pushing and 375 00:20:10,280 --> 00:20:12,960 Speaker 9: investigating his Apple went to miss out on this technology. 376 00:20:13,000 --> 00:20:16,560 Speaker 9: Does Apple need to integrate this technology? And so Federighi, 377 00:20:16,680 --> 00:20:19,919 Speaker 9: along with Apple's Cloud Services organization as well as the 378 00:20:19,960 --> 00:20:23,920 Speaker 9: Artificial Intelligence Organization Right run by Eddie Q and John 379 00:20:24,000 --> 00:20:27,639 Speaker 9: gen Andrea. Specifically, those three groups have been working together 380 00:20:28,119 --> 00:20:32,639 Speaker 9: on these Genai initiatives, with Federigi implementing it into iOS. 381 00:20:32,960 --> 00:20:37,040 Speaker 9: The Jenai the underlying technologies obviously developed by Apples AI group, 382 00:20:37,320 --> 00:20:41,480 Speaker 9: but it's Federigi who's consumerizing that technology, and they plan 383 00:20:41,600 --> 00:20:45,400 Speaker 9: to release Status part of iOS eighteen this year, which 384 00:20:45,440 --> 00:20:47,239 Speaker 9: I expect to be one of the biggest updates, if 385 00:20:47,280 --> 00:20:50,000 Speaker 9: not the most significant update in the sixteen year history 386 00:20:50,000 --> 00:20:50,880 Speaker 9: of the iPhone. 387 00:20:51,880 --> 00:21:01,680 Speaker 5: Bluembo's Mark German ahead of a game, Welcome back. 388 00:21:01,560 --> 00:21:04,040 Speaker 4: To Blouebog technology. I'm Caroline Heid in New York and. 389 00:21:04,000 --> 00:21:05,240 Speaker 5: I'm ed Lovelo in San Francisco. 390 00:21:05,400 --> 00:21:08,760 Speaker 6: Go to apply materials chip equipment maker forty five percent 391 00:21:08,760 --> 00:21:12,000 Speaker 6: of revenues still coming from China, but their signals were 392 00:21:12,040 --> 00:21:14,919 Speaker 6: really strong, Carrow, and we're basically saying, Okay, if this 393 00:21:15,080 --> 00:21:17,560 Speaker 6: is the leading US maker of chip equipment or chip 394 00:21:17,560 --> 00:21:20,200 Speaker 6: making equipment and they're getting orders, what does that mean 395 00:21:20,200 --> 00:21:22,840 Speaker 6: about the investment cycle in twenty twenty four and what 396 00:21:22,880 --> 00:21:24,960 Speaker 6: does it mean about end markets? Is actually finally a 397 00:21:24,960 --> 00:21:27,359 Speaker 6: positive sign in the chip space. Maybe we should dig 398 00:21:27,400 --> 00:21:27,719 Speaker 6: into it. 399 00:21:27,960 --> 00:21:30,480 Speaker 4: Let's do that. We've got the perfect guest, Janet Roy, 400 00:21:30,800 --> 00:21:34,679 Speaker 4: head of market analysis at RBC. Ruined Dolphin and Janet, 401 00:21:34,720 --> 00:21:37,920 Speaker 4: great to have your real semiconductor expertise here. Where are 402 00:21:37,960 --> 00:21:39,080 Speaker 4: we in this cycle? 403 00:21:39,160 --> 00:21:40,120 Speaker 3: What do you read. 404 00:21:39,960 --> 00:21:44,520 Speaker 4: Into applied materials and ultimately the forecast looking pretty rosy? 405 00:21:46,000 --> 00:21:47,239 Speaker 8: Hi, thanks for having me. 406 00:21:47,720 --> 00:21:51,120 Speaker 10: We're pretty positive on the semiconductor cycle. I think right 407 00:21:51,160 --> 00:21:54,600 Speaker 10: now we are seeing bottoming out. We saw that from 408 00:21:54,640 --> 00:21:57,720 Speaker 10: the Applied Materials Earninge's results and aside from BET, we 409 00:21:57,760 --> 00:22:01,000 Speaker 10: also have previously seen a PSMC is and they're also 410 00:22:02,000 --> 00:22:05,080 Speaker 10: showing the signs of the end of the stocking cycle 411 00:22:05,520 --> 00:22:08,080 Speaker 10: and also a strong demand for AI chips. 412 00:22:08,240 --> 00:22:09,600 Speaker 8: So I think this gives us. 413 00:22:09,640 --> 00:22:14,160 Speaker 10: More confidence on our conviction on Wollershviel on the semiconductor sector. 414 00:22:14,440 --> 00:22:17,320 Speaker 10: So that's the cyclical side of things, and the structural 415 00:22:17,359 --> 00:22:20,640 Speaker 10: side is very exciting obviously with AI in the key 416 00:22:20,680 --> 00:22:23,960 Speaker 10: driver's seat. And also I think there is a lot 417 00:22:23,960 --> 00:22:26,960 Speaker 10: of needs to build out the AI infrastructure with a 418 00:22:26,960 --> 00:22:30,280 Speaker 10: lot of upgrades, more sophisticated chaps, etc. 419 00:22:30,680 --> 00:22:31,840 Speaker 8: So I think in terms of. 420 00:22:31,760 --> 00:22:36,040 Speaker 10: The semiconductor manufacturers, the founderies, they are going to benefit 421 00:22:36,080 --> 00:22:40,360 Speaker 10: from these trends, regardless of the end Byket. 422 00:22:39,640 --> 00:22:42,359 Speaker 4: And we hold our breath for Wednesday. Video comes with 423 00:22:42,400 --> 00:22:45,280 Speaker 4: its numbers, Janet, And I'm interested. We were just having 424 00:22:45,359 --> 00:22:47,720 Speaker 4: a conversation with Charles Yngg. He's, of course the CEO 425 00:22:47,800 --> 00:22:51,919 Speaker 4: of Supercomputer, super micro Computer, and I'm interested in his 426 00:22:52,119 --> 00:22:55,640 Speaker 4: like ultimately the infrastructure and he needs the chips. He's 427 00:22:55,640 --> 00:22:58,080 Speaker 4: saying that there isn't enough supply. Where do we stand 428 00:22:58,080 --> 00:23:00,719 Speaker 4: on this push full of supp demand dynamics? 429 00:23:02,040 --> 00:23:04,919 Speaker 10: Yeah, so I think right now there is clearly a 430 00:23:04,920 --> 00:23:07,560 Speaker 10: lot of demand out there, and if you look at Navidia, 431 00:23:07,600 --> 00:23:10,000 Speaker 10: there's no shortage of demand. I think it's more about 432 00:23:10,280 --> 00:23:13,800 Speaker 10: supply capacity problem. So I think that that is the 433 00:23:13,840 --> 00:23:16,919 Speaker 10: reason why we are more positive of the you know, 434 00:23:17,080 --> 00:23:21,760 Speaker 10: the equipment manufacturer, the semiconductor manufacturer, the pigs and shovels 435 00:23:21,800 --> 00:23:25,199 Speaker 10: play because the world needs all these air chips and 436 00:23:25,280 --> 00:23:29,399 Speaker 10: the manufacturing capacity to deliver all these orders. So I 437 00:23:29,440 --> 00:23:32,880 Speaker 10: would say that there is a strong demoannd that has 438 00:23:33,119 --> 00:23:36,000 Speaker 10: yet to been met by a strong supply capacity. 439 00:23:37,320 --> 00:23:41,080 Speaker 6: Janet, Good morning from San Francisco. How worried are you 440 00:23:41,200 --> 00:23:44,200 Speaker 6: about the stickiness of inflation. Given the week we had 441 00:23:44,240 --> 00:23:45,440 Speaker 6: in economic data. 442 00:23:48,280 --> 00:23:51,199 Speaker 10: I think recently the inflatient data in the US did 443 00:23:51,280 --> 00:23:55,600 Speaker 10: show a bit of stickiness and a bit of reacceleration 444 00:23:56,520 --> 00:23:59,160 Speaker 10: in the headline and the producer prices today, I think 445 00:23:59,359 --> 00:24:01,840 Speaker 10: it just raids a bit of a concern, although if 446 00:24:01,880 --> 00:24:04,720 Speaker 10: you look ahead to the twelve month or twenty four 447 00:24:04,800 --> 00:24:07,679 Speaker 10: month view, I think it's still more likely than not 448 00:24:07,880 --> 00:24:10,080 Speaker 10: that inflation is going to come down in primarily if 449 00:24:10,080 --> 00:24:14,000 Speaker 10: you look at the money supply growth, it is trending lower, 450 00:24:14,200 --> 00:24:16,920 Speaker 10: and I think that's really a pretty good indicator of 451 00:24:17,160 --> 00:24:21,480 Speaker 10: inflation going forward. I think inflation invictation for consumers is 452 00:24:21,520 --> 00:24:25,040 Speaker 10: so pretty steady there's no worry insign from there. So 453 00:24:25,280 --> 00:24:27,240 Speaker 10: I would say on a twelve month view, pretty confident 454 00:24:27,359 --> 00:24:29,920 Speaker 10: is still going down. But I think I think together 455 00:24:30,000 --> 00:24:33,240 Speaker 10: with the economic resilience, I think that there is probably 456 00:24:33,640 --> 00:24:36,960 Speaker 10: less argument for a lot of rape casts this year. 457 00:24:37,000 --> 00:24:40,040 Speaker 10: So I think even a couple, you know, three four 458 00:24:40,119 --> 00:24:41,720 Speaker 10: rate cuts could be at risk. 459 00:24:42,880 --> 00:24:45,119 Speaker 6: You know, Caroline, we've got to give some sympathy to 460 00:24:45,200 --> 00:24:47,560 Speaker 6: the market out there. Imagine trying to be an investor 461 00:24:47,640 --> 00:24:50,760 Speaker 6: and learn about the technology sector from earning season and 462 00:24:50,800 --> 00:24:53,359 Speaker 6: then think about inflation, and it's not easy. 463 00:24:53,400 --> 00:24:55,679 Speaker 3: Janet's the big backs and that's why I think. 464 00:24:55,560 --> 00:24:58,800 Speaker 6: Right, you know, let's let's end the week on a positive. 465 00:24:58,880 --> 00:25:01,320 Speaker 6: You know, we're coming to kind of the end of 466 00:25:01,400 --> 00:25:04,680 Speaker 6: what's been a very busy one Q earning season. Janet, 467 00:25:04,840 --> 00:25:07,480 Speaker 6: what did you learn about the technology sector in the 468 00:25:07,520 --> 00:25:09,880 Speaker 6: last few weeks. 469 00:25:10,000 --> 00:25:14,320 Speaker 10: I think generally the earning's delivery is still pretty strong. 470 00:25:14,680 --> 00:25:17,359 Speaker 8: I think for some of these mericap. 471 00:25:16,960 --> 00:25:22,200 Speaker 10: Companies, they're still trading on relatively attractive p multiples. Obviously, 472 00:25:22,480 --> 00:25:25,840 Speaker 10: some of the names that they're getting more expensive, but 473 00:25:25,880 --> 00:25:29,639 Speaker 10: if you look actually versus the twenty twenty one levels, 474 00:25:30,040 --> 00:25:33,800 Speaker 10: the multiples are not outrageous. And if you look at 475 00:25:32,800 --> 00:25:39,679 Speaker 10: the key multiples over growth, that's even more appealing. So 476 00:25:39,720 --> 00:25:42,320 Speaker 10: I think that it's still likely further room to go 477 00:25:42,640 --> 00:25:45,719 Speaker 10: for these technology madcaps. And obviously you have to distinguish 478 00:25:45,760 --> 00:25:50,320 Speaker 10: between some of it, but overall speaking, our more conviction 479 00:25:50,560 --> 00:25:55,520 Speaker 10: is on the semiconductor, particularly in manufacturing and equipment producers. 480 00:25:57,160 --> 00:26:00,520 Speaker 6: January, Head of Market Analysis. Obviously, Brundolphin love having you 481 00:26:00,560 --> 00:26:03,199 Speaker 6: on the show. Happy Friday, Join us again soon. Like 482 00:26:03,200 --> 00:26:04,960 Speaker 6: we talked about the public markets, let's talking about the 483 00:26:04,960 --> 00:26:08,679 Speaker 6: private markets in today's VC spotlight and bringing Battery Ventures 484 00:26:08,680 --> 00:26:11,360 Speaker 6: General partner dar Meshsaka, who's with me here on sat 485 00:26:11,400 --> 00:26:14,680 Speaker 6: in San Francisco. You heard my preamble about if you're 486 00:26:14,880 --> 00:26:16,960 Speaker 6: in LP and you're thinking where do I put my money? 487 00:26:17,640 --> 00:26:19,760 Speaker 6: You go and get five percent of treasuries right now, 488 00:26:19,840 --> 00:26:22,639 Speaker 6: and then you've got your desk sitting there going well, 489 00:26:22,680 --> 00:26:24,880 Speaker 6: hold on, I would like to take some of your capital. 490 00:26:25,320 --> 00:26:28,160 Speaker 6: Is that a real factor for you right now? Where 491 00:26:28,280 --> 00:26:32,159 Speaker 6: rates are? Your ability to raise more capital if you 492 00:26:32,200 --> 00:26:33,640 Speaker 6: wanted to for a new fund. 493 00:26:34,040 --> 00:26:36,280 Speaker 11: For first and foremosts Ed and Caroline, thank you for 494 00:26:36,320 --> 00:26:39,280 Speaker 11: having me here. I don't think our LPs will been 495 00:26:39,320 --> 00:26:42,560 Speaker 11: with us for forty years. Think about macroeconomic cycles in 496 00:26:42,600 --> 00:26:45,080 Speaker 11: two or three year windows and compare us toward the 497 00:26:45,200 --> 00:26:48,239 Speaker 11: risk free ratist. Then look at the innovation cycle and say, hey, 498 00:26:48,240 --> 00:26:50,760 Speaker 11: in the gorse of ten twenty years, can you create 499 00:26:50,800 --> 00:26:54,000 Speaker 11: one hundred or twillion dollars behemoths? Does Battery or the 500 00:26:54,040 --> 00:26:55,840 Speaker 11: funds they invest and have a good chance at getting 501 00:26:55,840 --> 00:26:58,400 Speaker 11: in those behemoths? And if so, it's going to well 502 00:26:58,440 --> 00:27:02,040 Speaker 11: be for itself. Most of the LPs don't necessarily compare 503 00:27:02,400 --> 00:27:05,760 Speaker 11: VC returns to the risk free rate per se and 504 00:27:05,800 --> 00:27:08,639 Speaker 11: they make ten year allocations. But having said that, there 505 00:27:08,680 --> 00:27:10,479 Speaker 11: is certainly a lot of pressure because it feels like 506 00:27:10,520 --> 00:27:13,760 Speaker 11: the winners have gotten much larger. There's mega winners, and 507 00:27:13,800 --> 00:27:16,200 Speaker 11: the VC funds that are involved in those winners will 508 00:27:16,240 --> 00:27:18,360 Speaker 11: see a pretty nice pay day, while there's. 509 00:27:18,160 --> 00:27:19,200 Speaker 3: Going to be a lot of losers. 510 00:27:19,200 --> 00:27:20,800 Speaker 11: And there's a lot of first time funds that got 511 00:27:20,960 --> 00:27:23,240 Speaker 11: LP money which will be challenged to raise the next fund. 512 00:27:23,240 --> 00:27:24,280 Speaker 3: So it's a zero or one game. 513 00:27:24,320 --> 00:27:26,320 Speaker 11: You either get in the mega winners and you make 514 00:27:26,359 --> 00:27:28,800 Speaker 11: a substantial return, or you don't, in which case you 515 00:27:28,800 --> 00:27:30,000 Speaker 11: don't raise money at any cost. 516 00:27:30,359 --> 00:27:33,199 Speaker 6: The reason I find Battery Ventures interesting is you have 517 00:27:33,240 --> 00:27:36,680 Speaker 6: some scale. You know, the deployable capital is up there, 518 00:27:37,240 --> 00:27:39,600 Speaker 6: forty years of experience as you point it out. But 519 00:27:39,720 --> 00:27:45,000 Speaker 6: also you're pretty broad you know, consumer, industrial technology, software 520 00:27:45,800 --> 00:27:49,320 Speaker 6: where you focus most. Out of that that pretty broad. 521 00:27:48,840 --> 00:27:52,840 Speaker 11: Spectrum, Battery has historically made a call to go deep 522 00:27:52,920 --> 00:27:56,120 Speaker 11: in software. Even if you're in industrials or healthcare, there's 523 00:27:56,160 --> 00:27:56,920 Speaker 11: a software. 524 00:27:56,640 --> 00:27:58,080 Speaker 3: Element to most of these companies. 525 00:27:58,560 --> 00:28:00,800 Speaker 11: And so I would say eighty five ninety percent of 526 00:28:00,840 --> 00:28:03,560 Speaker 11: what we do is business software, and within that we 527 00:28:03,600 --> 00:28:05,320 Speaker 11: have a global presence, so we'll look for the best 528 00:28:05,320 --> 00:28:06,640 Speaker 11: companies in US. 529 00:28:06,480 --> 00:28:07,240 Speaker 3: Europe and Israel. 530 00:28:07,280 --> 00:28:09,680 Speaker 11: We have offices all over the world and we'll find 531 00:28:09,720 --> 00:28:12,280 Speaker 11: them mostly at the Series AIRB stage, but sometimes we 532 00:28:12,359 --> 00:28:14,639 Speaker 11: also willing to go late stage or take control of 533 00:28:15,440 --> 00:28:17,760 Speaker 11: a company in a private equity style transactions. So we're 534 00:28:17,840 --> 00:28:21,159 Speaker 11: very focused on business software that that part of the 535 00:28:21,200 --> 00:28:23,800 Speaker 11: economy keeps on growing, and we're very bullish in that. 536 00:28:24,119 --> 00:28:26,520 Speaker 11: We feel the software market could grow from two trillion 537 00:28:26,560 --> 00:28:28,200 Speaker 11: over the last ten years to over four to five 538 00:28:28,240 --> 00:28:30,639 Speaker 11: trillion on the heels of AI, and so we're very 539 00:28:30,680 --> 00:28:32,679 Speaker 11: excited about that market and stay committed to it. 540 00:28:33,520 --> 00:28:36,439 Speaker 4: You've packed some real winners in the private market of 541 00:28:36,560 --> 00:28:39,080 Speaker 4: artificial intelligence. I think of data bricks at the moment, 542 00:28:39,160 --> 00:28:42,040 Speaker 4: and we've heard from the CEO of that particular business 543 00:28:42,120 --> 00:28:46,600 Speaker 4: sort of anticipating and eventually batter the ultimate infrastructure costs 544 00:28:46,600 --> 00:28:48,240 Speaker 4: saw the money that they have to put in the 545 00:28:48,320 --> 00:28:50,840 Speaker 4: chip costs for example, for RAYI are going to plummet. 546 00:28:50,960 --> 00:28:53,480 Speaker 4: We are going to make it more cheaply. But where 547 00:28:53,480 --> 00:28:56,840 Speaker 4: do you see the opportunities to be investing in artificial intelligence? 548 00:28:56,960 --> 00:28:59,280 Speaker 4: Is it the picks and shovels is it the software 549 00:28:59,320 --> 00:29:00,480 Speaker 4: lair the applicates. 550 00:29:02,200 --> 00:29:03,440 Speaker 3: Great, great question, Caroline. 551 00:29:03,440 --> 00:29:06,320 Speaker 11: So we've looked up and down the stack, and I 552 00:29:06,360 --> 00:29:09,280 Speaker 11: feel like the infrastructure layer, the picks and shovels, as 553 00:29:09,320 --> 00:29:12,640 Speaker 11: you say, the large language models, the core chipsets that 554 00:29:13,640 --> 00:29:15,360 Speaker 11: make up the AI stack. 555 00:29:15,520 --> 00:29:17,320 Speaker 3: Those are very important businesses. 556 00:29:17,400 --> 00:29:20,160 Speaker 11: But I don't think this adventure backable in my humble opinion. 557 00:29:20,400 --> 00:29:21,120 Speaker 3: If you look at the. 558 00:29:21,080 --> 00:29:24,760 Speaker 11: Last couple of technology revolutions, look at Amazon, Google, Microsoft 559 00:29:24,880 --> 00:29:27,880 Speaker 11: Cloud services. They're part of Amazon, Google, Microsoft because they 560 00:29:27,960 --> 00:29:30,320 Speaker 11: need tens of billions of dollars and they need a 561 00:29:30,320 --> 00:29:33,400 Speaker 11: captive customer base of ten to twenty thousand customers where 562 00:29:33,400 --> 00:29:35,000 Speaker 11: you can try out these services in. 563 00:29:35,000 --> 00:29:35,800 Speaker 3: Much the same way. 564 00:29:36,080 --> 00:29:40,240 Speaker 11: Open AI and Tropic coher Mistrial the very important elements 565 00:29:40,240 --> 00:29:42,560 Speaker 11: of the AI stack, but they need tens of billions 566 00:29:42,600 --> 00:29:45,840 Speaker 11: of dollars multiple years before you know, there's union economics 567 00:29:45,840 --> 00:29:49,000 Speaker 11: that make sense, and that's just not a venture backable business. 568 00:29:49,160 --> 00:29:51,440 Speaker 11: And it totally makes sense that Microsoft has invested ten 569 00:29:51,520 --> 00:29:54,240 Speaker 11: twelve billion dollars in Open AI, and Google and Amazon 570 00:29:54,280 --> 00:29:57,240 Speaker 11: are investing in their competitors. However, what we're excited about 571 00:29:57,320 --> 00:29:59,360 Speaker 11: is the higher layers of the sack. If you look 572 00:29:59,360 --> 00:30:01,840 Speaker 11: at the middleware stack. If you look at the cloud 573 00:30:02,040 --> 00:30:03,280 Speaker 11: revolution the last ten. 574 00:30:03,280 --> 00:30:06,040 Speaker 3: Years, you have companies like data Dog and Mongo. 575 00:30:05,840 --> 00:30:08,719 Speaker 11: And Snowflake and Pile of Water networks that make up 576 00:30:08,720 --> 00:30:12,400 Speaker 11: the databases and monitoring the security stack in much the 577 00:30:12,440 --> 00:30:15,600 Speaker 11: same way, You're going to see a similar play out 578 00:30:15,680 --> 00:30:18,800 Speaker 11: in the AI place. Where you see a vector database 579 00:30:18,880 --> 00:30:21,440 Speaker 11: to store the data for AI, you see monitoring of 580 00:30:21,560 --> 00:30:24,880 Speaker 11: models companies like a Rise and others that are monitoring 581 00:30:24,960 --> 00:30:27,360 Speaker 11: these models. You see security for AI, and so I 582 00:30:27,400 --> 00:30:29,640 Speaker 11: think that market will play to the one hundred to 583 00:30:29,680 --> 00:30:33,280 Speaker 11: two hundred billion dollars spent in the middleware stack. But 584 00:30:33,360 --> 00:30:35,560 Speaker 11: the most exciting part of AI, I think is the 585 00:30:35,600 --> 00:30:36,480 Speaker 11: application stack. 586 00:30:37,240 --> 00:30:37,840 Speaker 3: If you think. 587 00:30:37,680 --> 00:30:42,480 Speaker 11: About just the human labor that is inefficient that can 588 00:30:42,520 --> 00:30:44,920 Speaker 11: be automated and augmented by AI, I think there's a 589 00:30:44,920 --> 00:30:45,760 Speaker 11: lot of promise there. 590 00:30:45,800 --> 00:30:48,880 Speaker 4: So just to follow up on that damage, how does 591 00:30:49,240 --> 00:30:51,720 Speaker 4: open AI Microsoft not just to eat all of that lunch? 592 00:30:51,960 --> 00:30:55,680 Speaker 4: I mean, are we seeing really viable competitors be able 593 00:30:55,720 --> 00:30:58,080 Speaker 4: to get specific? Is it about going really deep into 594 00:30:58,080 --> 00:31:00,760 Speaker 4: one particular industry group, going all in, non legal, all 595 00:31:00,800 --> 00:31:03,239 Speaker 4: in on healthcare Because ultimately it feels like they've got 596 00:31:03,280 --> 00:31:07,720 Speaker 4: some really tough, well monetized competitor out there. 597 00:31:09,160 --> 00:31:10,640 Speaker 3: Yeah, I think it's a fair point. 598 00:31:10,960 --> 00:31:14,040 Speaker 11: I would think Microsoft is more focused on the trillion 599 00:31:14,080 --> 00:31:17,080 Speaker 11: dollars spent in semiconductors and Nvidia and building their own 600 00:31:17,080 --> 00:31:19,400 Speaker 11: shape than trying to go build an HR software company. 601 00:31:19,640 --> 00:31:21,520 Speaker 3: You know, if I'm microsoftware at Google. 602 00:31:21,360 --> 00:31:23,560 Speaker 11: If you're a two or three trillion dollar company, a 603 00:31:23,640 --> 00:31:25,840 Speaker 11: ten billion dollar business doesn't really move the needle. 604 00:31:26,040 --> 00:31:27,360 Speaker 3: You've got to get into a business that. 605 00:31:27,440 --> 00:31:30,800 Speaker 11: Is hundreds of billions, call it semiconductor systems and compete 606 00:31:30,800 --> 00:31:33,120 Speaker 11: with each other, and it benefits you to go be 607 00:31:33,240 --> 00:31:36,240 Speaker 11: the Switzerland and have companies go build applications on you. 608 00:31:36,720 --> 00:31:38,080 Speaker 3: Just like the Apple. 609 00:31:37,840 --> 00:31:42,360 Speaker 11: Marketplace iOS marketplace benefited by having millions of developers built apps. 610 00:31:42,520 --> 00:31:44,640 Speaker 11: Apple didn't have to compete with them, each of them 611 00:31:44,680 --> 00:31:47,320 Speaker 11: paid the Apple tax. In much the same way as 612 00:31:47,320 --> 00:31:50,080 Speaker 11: you are an open AI, Google and anthropic, Amazon and 613 00:31:50,160 --> 00:31:54,080 Speaker 11: Nthropic can build a substrate on which applications can be built. 614 00:31:53,960 --> 00:31:55,520 Speaker 3: And the ones who get the most number of. 615 00:31:55,520 --> 00:31:58,360 Speaker 11: Applications built are the ones who benefit, and that drives 616 00:31:58,360 --> 00:32:00,360 Speaker 11: trillions or dollars in value for them. I don't think 617 00:32:00,360 --> 00:32:02,960 Speaker 11: they need to goal compete with their customers, it probably 618 00:32:03,000 --> 00:32:04,360 Speaker 11: is not the right business model for them. 619 00:32:04,480 --> 00:32:08,560 Speaker 4: Meanwhile, you back those customers. Battery Adventures General partner DAMESH. 620 00:32:08,680 --> 00:32:10,600 Speaker 4: Thacker can talk for so much longer. We thank you 621 00:32:10,600 --> 00:32:12,840 Speaker 4: so much for your time. I meanwhile, coming up, will 622 00:32:13,000 --> 00:32:16,000 Speaker 4: take a closer look at draftings the fourth quarter results 623 00:32:16,040 --> 00:32:18,640 Speaker 4: CEO Jason Robbins. A lot to dig into there, as 624 00:32:18,640 --> 00:32:20,239 Speaker 4: well as the M and A that they announced as 625 00:32:20,240 --> 00:32:21,240 Speaker 4: a bluebod technology. 626 00:32:28,920 --> 00:32:31,479 Speaker 6: Take a look at Draftking shares kind of up one percent. 627 00:32:31,520 --> 00:32:34,560 Speaker 6: It's been a choppy session after the company reported fourth 628 00:32:34,640 --> 00:32:37,960 Speaker 6: quarter results announcing that they would buy the lottery app 629 00:32:38,280 --> 00:32:41,160 Speaker 6: jack Pocket for seven hundred and fifty million dollars in 630 00:32:41,200 --> 00:32:43,680 Speaker 6: a cash and stock deal. Delighted to say to walk 631 00:32:43,760 --> 00:32:47,240 Speaker 6: us through the numbers, CEO Jason Robbins, Actually where I 632 00:32:47,320 --> 00:32:49,840 Speaker 6: want to start, Jason, and good morning to you. There's 633 00:32:49,880 --> 00:32:53,600 Speaker 6: a note out from Morgan Stanley that says the results 634 00:32:53,600 --> 00:32:57,960 Speaker 6: in the quarter are gone, were impacted by unfavorable sports results, 635 00:32:58,480 --> 00:33:01,040 Speaker 6: and it just goes back to the idea that there's 636 00:33:01,040 --> 00:33:02,240 Speaker 6: a marketplace you operate. 637 00:33:02,280 --> 00:33:02,880 Speaker 5: What do you make of that? 638 00:33:05,000 --> 00:33:07,640 Speaker 12: Well, I think that you know, when you're taking action 639 00:33:07,840 --> 00:33:11,240 Speaker 12: on sports, then sometimes they're subject to those outcomes, and 640 00:33:11,320 --> 00:33:13,920 Speaker 12: sometimes they swing the better's way and sometimes they swing 641 00:33:13,960 --> 00:33:14,480 Speaker 12: the books way. 642 00:33:14,560 --> 00:33:15,320 Speaker 13: This happened to be. 643 00:33:15,720 --> 00:33:18,600 Speaker 12: The worst two week stretch of I should say, the 644 00:33:18,640 --> 00:33:21,520 Speaker 12: most customer friendly two week stretch of outcomes we've seen 645 00:33:21,600 --> 00:33:24,720 Speaker 12: since becoming a public company. And you know that happens 646 00:33:25,200 --> 00:33:28,120 Speaker 12: over the course of time. It certainly swings, you know, 647 00:33:28,240 --> 00:33:31,040 Speaker 12: either way, and it evens out. But in a quarter, 648 00:33:31,720 --> 00:33:34,040 Speaker 12: you know, you can get bit and in this case, 649 00:33:34,120 --> 00:33:37,080 Speaker 12: we had just issued guidance and reaffirmed it in our 650 00:33:37,080 --> 00:33:39,920 Speaker 12: investor day literally the week before, and so you know 651 00:33:40,000 --> 00:33:42,640 Speaker 12: sometimes that happens timing wise, but if you adjust for that, 652 00:33:43,040 --> 00:33:46,400 Speaker 12: the underlying fundamentals of the business were incredibly strong. I mean, 653 00:33:46,440 --> 00:33:49,040 Speaker 12: that was why we were able to raise our guidance 654 00:33:49,040 --> 00:33:51,000 Speaker 12: for this year by so much. On the revenue side, 655 00:33:51,000 --> 00:33:54,000 Speaker 12: we increased our adjusted even to a guidance by fifteen percent. 656 00:33:54,120 --> 00:33:57,920 Speaker 12: That was really due to a record customer acquisition quarter 657 00:33:58,000 --> 00:34:01,360 Speaker 12: as well as really strong engage from our existing players. 658 00:34:02,520 --> 00:34:05,640 Speaker 6: So the M and A piece was really interesting, and 659 00:34:05,880 --> 00:34:07,360 Speaker 6: you know, I guess do you just see it as 660 00:34:07,400 --> 00:34:09,800 Speaker 6: a new market that you wanted to move into. What 661 00:34:10,560 --> 00:34:11,680 Speaker 6: was the motivation there? 662 00:34:13,400 --> 00:34:18,440 Speaker 12: Well, we did some analysis to directly compare our customer 663 00:34:18,480 --> 00:34:21,759 Speaker 12: base with theirs, and there was significant overlap. So we 664 00:34:21,840 --> 00:34:24,839 Speaker 12: feel good that it's an audience that really crosses over 665 00:34:24,880 --> 00:34:27,960 Speaker 12: and with actual CRM and real cross sell marketing, we 666 00:34:28,000 --> 00:34:30,799 Speaker 12: think we can increase that significantly. The other thing we 667 00:34:30,840 --> 00:34:34,520 Speaker 12: saw was that the customers that overlapped actually spent more 668 00:34:34,800 --> 00:34:38,319 Speaker 12: by about fifty percent with DraftKings on average, and the 669 00:34:38,360 --> 00:34:42,360 Speaker 12: customers who did not overlap with Jackpockets audience. So not 670 00:34:42,480 --> 00:34:45,000 Speaker 12: only are is there good crossover, it's also a higher 671 00:34:45,080 --> 00:34:46,839 Speaker 12: value customer that we can cross sell. 672 00:34:47,120 --> 00:34:48,520 Speaker 13: So there's a lot to like there. 673 00:34:48,560 --> 00:34:50,480 Speaker 12: And we think this really, you know, this is all 674 00:34:50,520 --> 00:34:51,720 Speaker 12: about CAC and LTV. 675 00:34:51,920 --> 00:34:53,120 Speaker 13: That's the nature of the business. 676 00:34:53,200 --> 00:34:55,040 Speaker 12: How do you get the customers on the platform as 677 00:34:55,040 --> 00:34:57,399 Speaker 12: efficiently as possible, and then how do you engage them 678 00:34:58,080 --> 00:35:00,759 Speaker 12: and keep them and get the highest LTV over time 679 00:35:00,800 --> 00:35:04,040 Speaker 12: as possible. And so anything that helps on either side 680 00:35:04,040 --> 00:35:07,000 Speaker 12: of that equation, let alone both like this does, I 681 00:35:07,040 --> 00:35:09,719 Speaker 12: think really will strengthen our ability to compete and win 682 00:35:09,800 --> 00:35:12,160 Speaker 12: in the US online gaming industry. 683 00:35:12,200 --> 00:35:13,359 Speaker 13: And so that's really what it's about. 684 00:35:13,400 --> 00:35:15,360 Speaker 12: That's our focus, and we feel like this is a 685 00:35:15,440 --> 00:35:16,640 Speaker 12: huge step forward for that. 686 00:35:17,239 --> 00:35:19,800 Speaker 4: Tell us about the equation that you have to decide 687 00:35:19,800 --> 00:35:20,640 Speaker 4: on whether to. 688 00:35:20,880 --> 00:35:25,160 Speaker 3: Build or buy. Why buy in this occasion. 689 00:35:24,840 --> 00:35:29,359 Speaker 12: Jason, Well, the team that we got is incredible. Pete 690 00:35:29,400 --> 00:35:32,400 Speaker 12: in his team or really sharp and understand this market 691 00:35:32,400 --> 00:35:35,120 Speaker 12: and understand this customer better than anyone I've ever met. 692 00:35:35,480 --> 00:35:37,720 Speaker 13: Also, the technology they've built is hard. 693 00:35:37,840 --> 00:35:40,480 Speaker 12: You know, it's not easy to build a system that 694 00:35:40,600 --> 00:35:44,399 Speaker 12: can scale to fulfill in multi state and this type 695 00:35:44,400 --> 00:35:48,319 Speaker 12: of setup, so really that is tough. We looked at, 696 00:35:48,440 --> 00:35:51,520 Speaker 12: you know, potentially different options, and we felt like this 697 00:35:51,600 --> 00:35:54,280 Speaker 12: team was the best. And also the technology they built 698 00:35:54,320 --> 00:35:57,240 Speaker 12: is the best. So while I certainly think there's always 699 00:35:57,280 --> 00:35:59,880 Speaker 12: different ways to approach things, and of course we think 700 00:35:59,880 --> 00:36:01,719 Speaker 12: we got a good deal too, not always part of it, 701 00:36:01,760 --> 00:36:03,840 Speaker 12: but I think there's always different ways to approach things, 702 00:36:03,880 --> 00:36:06,320 Speaker 12: and in this case, we felt like the combination of 703 00:36:06,360 --> 00:36:08,800 Speaker 12: the team we were getting and the technology they've built 704 00:36:08,920 --> 00:36:10,160 Speaker 12: was just too good to pass up. 705 00:36:10,480 --> 00:36:13,319 Speaker 4: Talking of different ways to approach things, and we are 706 00:36:13,400 --> 00:36:16,319 Speaker 4: indeed speaking with Jason Robbins, drafting CEO, to our TV 707 00:36:16,400 --> 00:36:20,600 Speaker 4: and radio audiences, what about this new sports streaming bundle? 708 00:36:20,719 --> 00:36:23,960 Speaker 4: What about Disney getting into bed with Fox with Warner Brothers, 709 00:36:24,160 --> 00:36:24,880 Speaker 4: What do you make of it. 710 00:36:24,920 --> 00:36:26,360 Speaker 3: Do you think you'll get through the regulators? 711 00:36:28,080 --> 00:36:29,600 Speaker 13: Well, it'll be really interesting to see. 712 00:36:29,640 --> 00:36:32,359 Speaker 12: I mean, first of all, I'm not surprised that you're 713 00:36:32,400 --> 00:36:36,040 Speaker 12: seeing deals like that. Obviously we've seen the media industry 714 00:36:36,200 --> 00:36:39,319 Speaker 12: get really disrupted by streaming, and sports has sort of 715 00:36:39,360 --> 00:36:42,440 Speaker 12: been that thing that everybody's kind of still waiting to see. 716 00:36:42,480 --> 00:36:44,359 Speaker 13: How does this evolve? How does this shake out? 717 00:36:45,200 --> 00:36:47,840 Speaker 12: And so you're going to continue to see more innovation, 718 00:36:48,040 --> 00:36:51,040 Speaker 12: more disruptive deals, and. 719 00:36:50,440 --> 00:36:52,239 Speaker 13: You know where it all shakes out. I don't know. 720 00:36:52,440 --> 00:36:55,560 Speaker 12: If I did, i'd be you know, i'd be making 721 00:36:55,600 --> 00:36:57,520 Speaker 12: more bets on those spaces than I am. 722 00:36:57,600 --> 00:36:59,719 Speaker 13: But it's not our world. 723 00:36:59,760 --> 00:37:03,040 Speaker 12: Were kind of watching and waiting to see, and I think, 724 00:37:03,120 --> 00:37:06,359 Speaker 12: you know, usually in those situations, opportunities to partner with 725 00:37:06,440 --> 00:37:08,200 Speaker 12: new interesting ventures can emerge. 726 00:37:08,239 --> 00:37:10,480 Speaker 13: So we'll have to see how it all shakes out. 727 00:37:10,520 --> 00:37:13,240 Speaker 12: But certainly a fascinating time in the sports media space. 728 00:37:14,280 --> 00:37:17,760 Speaker 6: Jason, what's the next step in DraftKings technology story? 729 00:37:18,120 --> 00:37:18,200 Speaker 3: Now? 730 00:37:18,239 --> 00:37:19,960 Speaker 6: What is it you want to do with the platform 731 00:37:19,960 --> 00:37:20,840 Speaker 6: and what do you want to build? 732 00:37:22,719 --> 00:37:25,120 Speaker 12: Well, first, I think we still have a lot to 733 00:37:25,160 --> 00:37:28,600 Speaker 12: do to just continue to create an incredible product in 734 00:37:28,640 --> 00:37:33,320 Speaker 12: OSB and I gaming for our customers, Jack Pocket. Hopefully 735 00:37:33,360 --> 00:37:36,400 Speaker 12: when we close that that'll be something that there's a 736 00:37:36,440 --> 00:37:39,160 Speaker 12: lot of runway. They still have only launched Scratchers in 737 00:37:39,160 --> 00:37:42,000 Speaker 12: one or two states, and a lot more to go there. 738 00:37:42,080 --> 00:37:44,680 Speaker 12: I think, so tons to do on the product side, 739 00:37:44,719 --> 00:37:47,520 Speaker 12: just to continue to build out and reach, you know, 740 00:37:47,560 --> 00:37:50,560 Speaker 12: a wider audience and also provide more interesting things for 741 00:37:50,640 --> 00:37:53,640 Speaker 12: people to engage in. I think on the sports betting side, 742 00:37:53,680 --> 00:37:56,120 Speaker 12: live betting and game betting continues to be a big 743 00:37:56,200 --> 00:37:59,880 Speaker 12: untapped opportunity. We're seeing it naturally increase and that's what 744 00:38:00,280 --> 00:38:02,520 Speaker 12: I think. A lot of the core piece of the ecosystem, 745 00:38:02,640 --> 00:38:04,640 Speaker 12: like broadcast latency totally. 746 00:38:04,280 --> 00:38:05,600 Speaker 13: Figured out across sports. 747 00:38:05,680 --> 00:38:08,319 Speaker 12: So a lot of room I think still to grow 748 00:38:08,640 --> 00:38:11,000 Speaker 12: in many areas of the product, and we're going to 749 00:38:11,040 --> 00:38:13,840 Speaker 12: continue focusing on the customer, listening to what our customers 750 00:38:13,880 --> 00:38:16,520 Speaker 12: say and try and deliver a great experience for them. 751 00:38:16,840 --> 00:38:19,600 Speaker 4: Jason Robbins always great catching up with you. Thanks so much. 752 00:38:19,760 --> 00:38:30,120 Speaker 4: Busy Old week Draftking CEO. I mean it was a 753 00:38:30,200 --> 00:38:34,360 Speaker 4: sensation online yesterday Open aiyes new text video generator called Sora. 754 00:38:34,480 --> 00:38:37,560 Speaker 4: The company announced it's launched on X yesterday. The model 755 00:38:37,640 --> 00:38:40,160 Speaker 4: currently available to only a small number of researchers and 756 00:38:40,200 --> 00:38:43,120 Speaker 4: creatives who will basically stress test it before a broader 757 00:38:43,120 --> 00:38:45,640 Speaker 4: public release. Let's bring in bloom Meg's Rachel Metz, and 758 00:38:45,719 --> 00:38:48,840 Speaker 4: first of all, we're all bowled over by just the 759 00:38:48,880 --> 00:38:52,640 Speaker 4: beauty of what's created and ultimately what any future filmmaker 760 00:38:52,719 --> 00:38:53,359 Speaker 4: is going to be doing. 761 00:38:54,680 --> 00:38:57,200 Speaker 14: Yeah, I mean, I think the equality that they are 762 00:38:57,239 --> 00:39:00,759 Speaker 14: showing off with some of these videos is really phenomenal 763 00:39:00,880 --> 00:39:04,080 Speaker 14: and it looks certainly better than other examples I've seen, 764 00:39:04,120 --> 00:39:06,279 Speaker 14: and I've seen as many as I can of these 765 00:39:06,400 --> 00:39:10,640 Speaker 14: AI generative video creation systems over the past few years. 766 00:39:10,640 --> 00:39:13,840 Speaker 14: They've gotten a lot better, but this one seems to 767 00:39:13,880 --> 00:39:16,880 Speaker 14: be better and to be able to generate lengthier videos 768 00:39:16,920 --> 00:39:19,680 Speaker 14: that seem to work than other people have created. 769 00:39:22,320 --> 00:39:24,239 Speaker 6: Let's point out, though, that the first thing they did 770 00:39:24,280 --> 00:39:27,640 Speaker 6: with it was generate content that's dog related or puppy related, 771 00:39:27,640 --> 00:39:30,600 Speaker 6: which is not a shock to anyone but Cara. I 772 00:39:30,600 --> 00:39:32,800 Speaker 6: think what's interesting in Bloembos Rachel mets Key with the 773 00:39:32,840 --> 00:39:36,279 Speaker 6: reporting there, thank you, is safety question right that we 774 00:39:36,360 --> 00:39:38,680 Speaker 6: go straight to the question about how we know what 775 00:39:38,800 --> 00:39:41,319 Speaker 6: is AI generated and what is not. A story that 776 00:39:41,360 --> 00:39:44,080 Speaker 6: I broke with some colleagues about Open AI and it's 777 00:39:44,160 --> 00:39:47,799 Speaker 6: CEO Sam Outman. He's working to get a green light 778 00:39:48,080 --> 00:39:50,920 Speaker 6: carat from the US government. He wants approval or a 779 00:39:50,960 --> 00:39:54,240 Speaker 6: blessing to move forward with that massive venture to boost 780 00:39:54,280 --> 00:39:57,200 Speaker 6: the global output of AI chips and sources are telling 781 00:39:57,320 --> 00:40:00,000 Speaker 6: us that there's a risk here that it raises an 782 00:40:00,080 --> 00:40:04,680 Speaker 6: national security and antitrust look by lawmakers on the hill 783 00:40:04,920 --> 00:40:07,759 Speaker 6: and also government agencies. You know, we've meet he has 784 00:40:07,760 --> 00:40:10,680 Speaker 6: been meeting with investors, particularly in the Middle East in. 785 00:40:10,719 --> 00:40:12,640 Speaker 5: Asia over the last few weeks. 786 00:40:12,920 --> 00:40:16,680 Speaker 6: I'm hearing that in DC that is a particular concern. 787 00:40:16,800 --> 00:40:20,160 Speaker 4: I can imagine. I mean, the amount of money that 788 00:40:20,200 --> 00:40:23,359 Speaker 4: they want to raise the investment is eyewatering. But most 789 00:40:23,360 --> 00:40:25,480 Speaker 4: of all, I think these conversations with Gina Ramando that 790 00:40:25,480 --> 00:40:27,840 Speaker 4: you've been reporting on key, I mean, he wants to 791 00:40:27,880 --> 00:40:30,000 Speaker 4: work in lockstep here really with the government, doesn't he? 792 00:40:30,800 --> 00:40:31,439 Speaker 13: Yeah, he does. 793 00:40:31,480 --> 00:40:33,799 Speaker 6: And you know the final thing about it is he 794 00:40:33,840 --> 00:40:35,360 Speaker 6: can get money from anywhere. 795 00:40:35,840 --> 00:40:38,160 Speaker 4: Seems so meanwhile, that does it For this edition of 796 00:40:38,200 --> 00:40:39,719 Speaker 4: Bloomberg Technology. 797 00:40:40,160 --> 00:40:43,320 Speaker 6: Massive show recap on the podcast that's where we publish it. 798 00:40:43,320 --> 00:40:46,960 Speaker 6: It has been an amazing week. This is Bloomberg Technology