WEBVTT - DoorDash Earnings and Super Micro's Roller Coaster Ride 0:00:02.920 --> 0:00:09.680 Bloomberg Audio Studios, podcasts, radio news from. 0:00:09.520 --> 0:00:14.079 The Heart where Innovation, money and power. Collie in Silicon. 0:00:13.680 --> 0:00:14.560 Valley, NBN. 0:00:14.880 --> 0:00:18.920 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:32.440 --> 0:00:34.840 I'm Carolin Hyde at Bloomberg's world headquarters in New York 0:00:35.240 --> 0:00:36.880 and I'm Ed Lovelow in San Francisco. 0:00:36.920 --> 0:00:38.760 This is Bloomberg Technology. 0:00:38.240 --> 0:00:40.720 Coming up in the next hour, unpacking those earnings. 0:00:40.840 --> 0:00:42.000 Door Dash delivering the. 0:00:41.960 --> 0:00:45.360 Goods, but while the stock pulls back, while DraftKings is 0:00:45.360 --> 0:00:48.519 betting big on the lottery. Conversations with both companies this hour. 0:00:49.120 --> 0:00:53.239 Plus super Micro drops ending a sizzling rally that put 0:00:53.320 --> 0:00:56.080 the server company on a record breaking week. We have 0:00:56.120 --> 0:00:59.080 an exclusive conversation with the company CEO. 0:00:58.920 --> 0:01:02.440 Coming up, and AIICEO Sam Altman is looking to get 0:01:02.480 --> 0:01:05.520 the green light from the US government Tori's billions for 0:01:05.560 --> 0:01:09.160 a massive venure to boost global manufacturing of those AI chips. 0:01:09.480 --> 0:01:10.760 Will bring you the story. 0:01:10.880 --> 0:01:13.080 There's the hearing now with door Dash. I find DoorDash 0:01:13.120 --> 0:01:16.600 really interesting because it has performed really well. The technology 0:01:16.640 --> 0:01:19.839 story in the quarter was new product lines doing more 0:01:19.959 --> 0:01:22.880 stuff on the platform, but it was a high bar 0:01:23.000 --> 0:01:24.800 quarters when you look at their guidance for the full 0:01:24.840 --> 0:01:28.240 year in terms of gross bookings or orders. It seems strong, 0:01:28.280 --> 0:01:30.320 but clearly the stock is down ten percent. 0:01:30.760 --> 0:01:32.600 So what is it that the street's not liking. 0:01:32.800 --> 0:01:35.720 It's hard to tell, and perhaps it's that abit DAR 0:01:35.840 --> 0:01:38.920 guidance not surpassing it for once. We're staying with Doordat 0:01:39.120 --> 0:01:42.319 stick in with a CFO Ravi in Ukonda joining us 0:01:42.600 --> 0:01:45.520 for those fourth quarter numbers, and I start with, well, 0:01:45.560 --> 0:01:49.720 the tough one, Ravi. The takeaway is not quite good enough. 0:01:49.760 --> 0:01:52.280 Can you talk us through perhaps the adjusted a bit 0:01:52.360 --> 0:01:54.880 DAR number, the concerns creeping in or is it just 0:01:54.880 --> 0:01:56.360 that your stocks performed too well? 0:01:56.360 --> 0:01:56.640 Of late? 0:01:58.120 --> 0:02:01.520 Twenty twenty three was Tulie transformative year for us. It 0:02:01.640 --> 0:02:04.320 was an inflection here for us, both from a growth 0:02:04.320 --> 0:02:06.040 as well as a profitability perspective. 0:02:06.360 --> 0:02:10.760 We've truly become a daily habit, more users. 0:02:10.440 --> 0:02:13.520 Than ever before or ordering from more categories than ever before. 0:02:13.919 --> 0:02:14.920 And at the same. 0:02:14.720 --> 0:02:18.640 Time, the business is doing really well where ibiddies three 0:02:18.680 --> 0:02:21.600 times more in twenty three compared to twenty twenty two levels. 0:02:21.880 --> 0:02:23.919 And what we are trying to do is continue to 0:02:24.000 --> 0:02:27.760 drive innovation on the product front, Introduce more products, introduce 0:02:27.840 --> 0:02:31.839 more features where we have users ordered from more categories 0:02:32.080 --> 0:02:34.240 across thirty different countries around the goal. 0:02:35.080 --> 0:02:39.680 You've helped that net loss particularly driven down by efficiencies, 0:02:39.680 --> 0:02:42.799 particularly on the logistics side, Ravi. But what therefore for 0:02:42.919 --> 0:02:45.760 the bottom line to meet your guidance, your own given 0:02:45.760 --> 0:02:48.880 guidance for ABITTA adjusted EBITDA going forward, what do you 0:02:48.919 --> 0:02:49.399 need to do? 0:02:49.400 --> 0:02:49.959 Do you think. 0:02:51.480 --> 0:02:56.359 Our goal is always to drive more users to the platform, continue. 0:02:55.840 --> 0:02:56.680 To order more. 0:02:57.240 --> 0:03:00.760 Profitability in our business is driven by growth. We saw 0:03:00.800 --> 0:03:01.679 that in twenty three. 0:03:01.919 --> 0:03:03.760 Our goal is to continue to do the same in 0:03:03.760 --> 0:03:04.600 twenty twenty four. 0:03:05.000 --> 0:03:06.480 And at the same time, if you look at our 0:03:06.520 --> 0:03:10.120 operating expenses, they've been relatively flat for the last six 0:03:10.200 --> 0:03:13.360 quarters while we continued to drive revenue growth north of 0:03:13.400 --> 0:03:14.040 thirty percent. 0:03:14.400 --> 0:03:16.280 When I look at twenty twenty four, our goal is. 0:03:16.240 --> 0:03:18.040 Going to be the same, which is we're going to 0:03:18.120 --> 0:03:20.920 drive users, We're going to drive order frequency, We're going 0:03:20.960 --> 0:03:24.079 to continue to drive leverage from an overall operating expense 0:03:24.160 --> 0:03:24.920 perspective as. 0:03:24.800 --> 0:03:28.320 Well, Rabbi, there are loads of names on the street 0:03:28.400 --> 0:03:30.760 that are saying there's nothing wrong with the report, nothing 0:03:30.800 --> 0:03:32.960 bad in it. Maybe they look at the four year 0:03:33.000 --> 0:03:37.280 bookings guidance and say that it indicates maybe deceleration in 0:03:37.320 --> 0:03:39.200 the back end of the year. So let's put the 0:03:39.280 --> 0:03:41.720 numbers to one side. What does the world look like 0:03:41.880 --> 0:03:44.000 right now to door Dash, both in terms of like 0:03:44.120 --> 0:03:47.160 driver supply demand from the consumer corporate demand. 0:03:48.720 --> 0:03:52.200 Consumer demand on the platform continues to be really strong. 0:03:52.720 --> 0:03:54.480 If you look at twenty three, in a year when 0:03:54.520 --> 0:03:58.040 people thought consumers were pulling back, our users set a 0:03:58.120 --> 0:03:58.760 record high. 0:03:59.320 --> 0:04:01.600 Our scale at thirty seven million. 0:04:01.720 --> 0:04:05.680 Consumers globally continues to order with us every single month, 0:04:06.120 --> 0:04:09.120 and usage levels have also increased, where our order frequency 0:04:09.160 --> 0:04:12.160 has reached a record high. And from a supply perspective, 0:04:12.560 --> 0:04:15.320 we've been really well supplied. Supply has been as good 0:04:15.360 --> 0:04:17.920 as been over the last couple of years. When you 0:04:17.960 --> 0:04:20.120 look at the consumer demand, it's really strong. When you 0:04:20.120 --> 0:04:22.280 look at the supply side metrics, it continues to be 0:04:22.320 --> 0:04:25.400 really strong, which is allowing us to drive growth as 0:04:25.440 --> 0:04:27.560 well as the bottom line profitability that you're seeing in 0:04:27.560 --> 0:04:28.320 the business today. 0:04:29.640 --> 0:04:32.400 Robbie, I always think about though, DASH it's like a 0:04:32.480 --> 0:04:35.359 really big software company and we don't really have a 0:04:35.440 --> 0:04:37.719 talk about that side of the business, right the creation 0:04:37.839 --> 0:04:42.120 of a marketplace, but also you're essentially offering software to 0:04:42.200 --> 0:04:45.839 third parties making their back end. How is that side 0:04:45.839 --> 0:04:46.760 of your business doing. 0:04:48.200 --> 0:04:52.159 Our platform services business, which is the software aspect of 0:04:52.200 --> 0:04:56.200 our business, continues to do really well. Our goal is 0:04:56.240 --> 0:04:59.240 to be with where merchants want us to be. We 0:04:59.279 --> 0:05:01.400 want a power merchants with their own. 0:05:01.200 --> 0:05:04.680 First party channel. We offer a product called Storefront, which powers. 0:05:04.720 --> 0:05:06.920 Merchants' own websites, and at the same time we are 0:05:06.960 --> 0:05:10.440 providing our logistics engines for merchants in order to help 0:05:10.480 --> 0:05:13.640 them augment their own service as well. 0:05:13.760 --> 0:05:17.200 You're not just serving merchants in the United States. You 0:05:17.279 --> 0:05:20.640 made a key acquisition, and I'm thinking of Walt in particular, 0:05:20.960 --> 0:05:23.960 the effort to go into national RAWI do you stay 0:05:24.360 --> 0:05:26.840 in the countries you're in and expand from there, even 0:05:26.920 --> 0:05:29.640 though that perhaps not as populated as others in Western Europe? 0:05:29.800 --> 0:05:32.920 Or do you look to acquire or build yourself elsewhere. 0:05:34.560 --> 0:05:37.920 Today we are operating in about twenty eight countries outside 0:05:37.920 --> 0:05:41.080 the United States. When I look at our international business, 0:05:41.080 --> 0:05:44.720 it's going really fast, sometimes even five to six times 0:05:44.760 --> 0:05:47.839 faster than peers, which is allowing us to gain share 0:05:48.160 --> 0:05:50.920 in virtually almost all of the markets that we operate in. 0:05:51.560 --> 0:05:53.800 Even in the markets that we operate in today, we 0:05:53.839 --> 0:05:57.120 are just serving a small fraction of the users. We 0:05:57.160 --> 0:05:59.599 have our hands full with our existing markets. We're going 0:05:59.640 --> 0:06:02.720 to contain new to innovate in those markets by offering 0:06:02.760 --> 0:06:04.919 new products. We're bringing grocery to many of the inter 0:06:05.040 --> 0:06:08.240 national markets where the penetration levels in some countries are 0:06:08.240 --> 0:06:11.719 even higher than what we're seeing in the US. As always, 0:06:11.960 --> 0:06:15.919 our goal is to drive improvements in selection, drive improvements 0:06:15.920 --> 0:06:18.640 in quality as well as affordability across all the countries 0:06:18.640 --> 0:06:20.279 that we operate in, Tonet, and let's talk. 0:06:20.120 --> 0:06:23.000 About that affordability. Tony also echoing that then, really twenty 0:06:23.040 --> 0:06:25.640 twenty four is about making sure that the service is affordable. 0:06:25.640 --> 0:06:27.880 How do you do that, Rabi? When we've got, you know, 0:06:27.960 --> 0:06:30.359 still relatively information re environments on here in the. 0:06:30.400 --> 0:06:34.480 US, affordability is a key strategic priority for US and 0:06:34.839 --> 0:06:38.600 top of mind today. More than half of our users 0:06:39.080 --> 0:06:42.760 do not pay any delivery fee. Almost eighteen million subscribers 0:06:42.760 --> 0:06:45.679 on our dash Pass program, and we've lounched that program 0:06:45.760 --> 0:06:49.239 just about five years ago, and we've saved consumers over 0:06:49.360 --> 0:06:52.280 ten billion dollars. And at the same time we are 0:06:52.279 --> 0:06:55.760 innovating on the product side. We're really proud that low 0:06:55.800 --> 0:06:58.960 income families can use government subsidies to be able to 0:06:59.040 --> 0:07:01.920 order groceries on the platt and this is our way 0:07:01.960 --> 0:07:05.359 of giving back convenience, value and time to our consumers. 0:07:07.480 --> 0:07:11.120 Robbie, let's use free cash flow as a kind of 0:07:11.680 --> 0:07:15.520 strategy conversation. You know, you did really well twenty twenty three, 0:07:16.200 --> 0:07:18.640 but you know, carolinees bringing out some really kind of 0:07:19.000 --> 0:07:21.480 big points. There's a lot of anxiety right about credit 0:07:21.480 --> 0:07:24.560 card data. And I bring that up because at some 0:07:24.720 --> 0:07:28.200 point the consumer might go away, and like your your 0:07:28.200 --> 0:07:31.160 industry peers, you might have to say we need to 0:07:31.200 --> 0:07:36.800 do more discounts, incentivizing promotional work. And I'm assuming that 0:07:36.800 --> 0:07:39.080 that does impact free cash flow going forward. 0:07:41.520 --> 0:07:43.800 Free cash flow is a really important metric for us. 0:07:43.840 --> 0:07:46.360 If you look at twenty twenty three, I'm really proud 0:07:46.400 --> 0:07:49.640 that we generated over one point three billion of free 0:07:49.680 --> 0:07:52.120 cash flow, which, as you pointed out, as an important 0:07:52.120 --> 0:07:54.320 help metric for us and investors when we look at 0:07:54.360 --> 0:07:57.760 the overall health of the business. Our focus has always 0:07:57.840 --> 0:08:01.400 been on product as well as innovation on in terms 0:08:01.400 --> 0:08:02.200 of technology. 0:08:02.440 --> 0:08:03.800 I mean just a few examples. 0:08:03.880 --> 0:08:06.640 The way we're driving growth is today We have more 0:08:06.680 --> 0:08:09.640 than one hundred and fifty thousand stores that are outside 0:08:09.680 --> 0:08:12.680 of restaurants. Virtually, when I joined the company a few 0:08:12.720 --> 0:08:16.120 years ago, there was no stores that are grocery related 0:08:16.160 --> 0:08:19.520 on the platform. Our goal is to bring technology, bring 0:08:19.560 --> 0:08:23.000 product innovation to the thirty seven million consumers. 0:08:22.480 --> 0:08:24.760 We have on the platform, and that's what's going to 0:08:24.840 --> 0:08:25.600 drive both. 0:08:25.400 --> 0:08:27.520 Growth as well as profitability in the business for us, 0:08:27.720 --> 0:08:31.000 which ultimately what RABI. 0:08:30.840 --> 0:08:33.640 What is the next technology frontie, what is the next 0:08:33.720 --> 0:08:36.440 new product for door Dash. 0:08:36.840 --> 0:08:42.599 We are operating in three large segments, Restaurants, grocery, and international, 0:08:42.800 --> 0:08:45.600 each of which are roughly about a trillion dollars, where 0:08:45.600 --> 0:08:49.559 the penetration levels are still very very early. I'm excited 0:08:49.559 --> 0:08:52.800 about the progress we've made, but we continue to drive 0:08:52.920 --> 0:08:56.559 more in terms of adding more categories, adding more selection, 0:08:56.679 --> 0:08:59.680 which is content on the platform, while making the product 0:08:59.679 --> 0:09:00.960 more horrible. 0:09:00.600 --> 0:09:03.280 As well as high quality. If we continue to. 0:09:03.240 --> 0:09:06.480 Do that, we're going to drive more users, have them 0:09:06.600 --> 0:09:09.040 ordered more with us, which is ultimately going to drive. 0:09:08.920 --> 0:09:11.680 Pro actibility for Dash. 0:09:11.720 --> 0:09:13.880 CFO Ravian a kind of great catch up with you 0:09:13.920 --> 0:09:15.239 here on the program. 0:09:15.360 --> 0:09:23.720 This has been Bow Technology. 0:09:24.760 --> 0:09:28.280 Super micro stock has been on a roller coaster shares, 0:09:28.280 --> 0:09:31.360 whip sword in volatile trading today, there anything to derail 0:09:31.440 --> 0:09:33.679 what's set to be or was set to be the 0:09:33.720 --> 0:09:36.800 server maker's best week on record. I'm delighted to say 0:09:36.840 --> 0:09:41.640 super Micro's founder, president and CEO, Charles Leang, joins us 0:09:41.679 --> 0:09:45.800 now live. Charles, good morning to you, and welcome to 0:09:45.840 --> 0:09:46.400 the program. 0:09:46.480 --> 0:09:49.040 Let's start there. Okay, let's just get it done. 0:09:49.880 --> 0:09:52.240 The store one has been on a good morning, the 0:09:52.280 --> 0:09:55.600 stock has been on a wild ride. Is your company 0:09:55.760 --> 0:09:57.200 fairly valued. 0:09:59.440 --> 0:09:59.720 Years? 0:10:00.000 --> 0:10:02.840 I mean, I said, you know, we deliver the based 0:10:03.120 --> 0:10:07.160 generality AI playform in our world, especially in terms of 0:10:07.200 --> 0:10:11.000 time to market or enable new technology available. We are 0:10:11.040 --> 0:10:14.760 able to deliver new product to the market, and we 0:10:14.880 --> 0:10:17.679 deal in a system debl. 0:10:17.800 --> 0:10:21.000 Or re scale. We call our rec program play. 0:10:21.520 --> 0:10:25.400 When casone we see they are ready to be online, 0:10:25.559 --> 0:10:26.400 they're programing to. 0:10:26.520 --> 0:10:29.440 Cable, the cable and the power cable, and then they 0:10:29.440 --> 0:10:30.560 are ready to be on nine. 0:10:30.640 --> 0:10:34.080 So casone like good quality, time to market and ready 0:10:34.120 --> 0:10:36.360 to run avantage. 0:10:35.840 --> 0:10:39.120 Charles, there's clearly a lot of excitement in the market 0:10:39.280 --> 0:10:43.400 that whatever is happening in AI infrastructure investment. You are 0:10:43.440 --> 0:10:46.880 a core beneficiary, but one of the questions that Caroline 0:10:46.880 --> 0:10:50.280 and I get for you consistently is what is it 0:10:50.320 --> 0:10:54.160 that super micro does. There's any different from your biggest 0:10:54.160 --> 0:10:56.679 competitors names like Dell, Hpe. 0:10:58.880 --> 0:11:02.040 Very good question. Yeah, I've been spatial first. We have 0:11:02.080 --> 0:11:05.280 a very market company since thirty years ago. I founded 0:11:05.320 --> 0:11:10.160 a company Shivomanco. We use building Brock solution, a matriology 0:11:10.200 --> 0:11:13.760 design to build our server to build our total solutions, 0:11:14.000 --> 0:11:17.839 and the building Brock solution enabled us to design more 0:11:17.880 --> 0:11:23.040 efficientcy with better quality, better inventory leverage, and better a 0:11:23.280 --> 0:11:27.360 service efficiency. That's why we are able to deliver new 0:11:27.400 --> 0:11:29.840 technology time to market earlier than adults. 0:11:30.360 --> 0:11:33.080 And plus our two global. 0:11:32.800 --> 0:11:37.520 Company, we have an engineer working Samos Bay Area and 0:11:37.640 --> 0:11:41.080 also a pig team in Taiwan, so we two. 0:11:40.880 --> 0:11:43.160 Team Asia and USA. 0:11:43.280 --> 0:11:48.240 So we are able to design more efficiently than others basically, and. 0:11:48.160 --> 0:11:50.880 We can see for our radio audience. We can see 0:11:51.240 --> 0:11:54.480 all the products that you make behind you and I'm interested, Charles, 0:11:54.800 --> 0:11:58.400 the scale of the market size here, the total addressable market? 0:11:58.679 --> 0:12:00.559 How big can it be? How big get chunk of 0:12:00.600 --> 0:12:01.880 the pie are you're going to get? 0:12:03.320 --> 0:12:03.520 Oh? 0:12:03.640 --> 0:12:07.720 Yeah, that's another advantage we have with design, protum barrier 0:12:08.080 --> 0:12:11.920 and manufacturing barrier and global as well. So I mean 0:12:12.080 --> 0:12:16.160 we open with Cosmo from design stage vedidation stage, and 0:12:16.360 --> 0:12:20.680 here we ship the Cosmo MACADM problem play. And yes, 0:12:21.120 --> 0:12:24.520 we have a huge capacity ready now in Silicon Vedia 0:12:24.520 --> 0:12:27.440 alone we are able to build a four thousand rack 0:12:27.679 --> 0:12:32.480 of months or equal to about fifteen thousand systems per months, 0:12:32.960 --> 0:12:36.040 and in Asia in Europe we also have a per 0:12:36.080 --> 0:12:40.600 thousand capability there. So basically we are able to build 0:12:40.640 --> 0:12:45.320 a enough server for our customer. But now, as you know, 0:12:45.559 --> 0:12:49.440 the shortage, the chip shortage, so once we have a 0:12:49.440 --> 0:12:52.920 more surprise from the chip company in media, then we 0:12:52.960 --> 0:12:54.120 can shiver more to customer. 0:12:54.800 --> 0:12:58.320 Let's talk about the chip makers being videos. But you're 0:12:58.400 --> 0:13:00.920 kind of agnostic here, right you take trips and mentally 0:13:01.000 --> 0:13:01.959 take chips and inn video. 0:13:02.360 --> 0:13:03.760 What are your relationships like? 0:13:06.240 --> 0:13:06.640 Okay? 0:13:06.880 --> 0:13:09.960 Indeed, we both companies are founded in nineteen ninety three, 0:13:10.320 --> 0:13:13.320 so both companies are thirty years old company. We start 0:13:13.360 --> 0:13:16.720 to work together almost since day onide, so we're thirty 0:13:16.800 --> 0:13:22.280 years relationship, engineering partnership and then go to market, define 0:13:22.280 --> 0:13:23.360 that market, that's speak. 0:13:23.800 --> 0:13:26.760 So we have been at working medic closely. However, we 0:13:26.800 --> 0:13:28.320 hope they have a more cheap. 0:13:28.200 --> 0:13:35.160 Available, Charles, do you have a number, a dollar value 0:13:35.559 --> 0:13:39.760 for the total addressable market that you see for your 0:13:39.840 --> 0:13:43.520 company in the context of an AI infrastructure build out. 0:13:45.960 --> 0:13:51.199 You know, were always facing to pick back older. So 0:13:52.640 --> 0:13:57.360 the market size is growing asid you know, aipoom. Basically 0:13:57.400 --> 0:14:00.600 they as a start. We believe the market have a 0:14:00.640 --> 0:14:03.360 big loom to grow a lot of our integry leader 0:14:03.600 --> 0:14:09.359 Hybular seven feed in so as today our Protusian capacity 0:14:09.440 --> 0:14:13.520 can support our revenue up to twenty five billion dollars 0:14:13.559 --> 0:14:16.360 for example, but we need a more chip like why 0:14:16.440 --> 0:14:19.760 he hasn't mentioned. So again, the market continued to grow 0:14:20.160 --> 0:14:23.200 and we continue to get mac jal because of a 0:14:23.240 --> 0:14:26.000 bitter product, because of red. 0:14:25.800 --> 0:14:28.480 Scale program play. 0:14:28.800 --> 0:14:33.760 So we are continuing growing our Patussian capacity in United 0:14:33.760 --> 0:14:36.960 State and globally as well. 0:14:37.120 --> 0:14:39.960 For a Bloomberg television and radio audience were speaking to 0:14:40.040 --> 0:14:44.320 super Micro CEO Charles Liang. Charles, when we said that 0:14:44.360 --> 0:14:47.480 you were coming on the program, our audience had many questions. 0:14:47.800 --> 0:14:51.080 One of them is about the SEC action taken against 0:14:51.080 --> 0:14:55.400 your company in August of twenty twenty. The SEC charged 0:14:55.440 --> 0:14:59.360 super Micro and the former CFO of the company with 0:14:59.400 --> 0:15:04.640 what they call widespread accounting violations and some numbers presented 0:15:04.680 --> 0:15:07.600 by the company. Could you update our audience in your 0:15:07.640 --> 0:15:10.600 investor base on where that process is and if you've 0:15:10.600 --> 0:15:12.200 put those concerns behind you. 0:15:13.560 --> 0:15:13.720 Oh? 0:15:13.800 --> 0:15:17.200 Yeah, those concerns have been behind us for many years. 0:15:17.400 --> 0:15:21.280 So first so we are study detail. 0:15:21.520 --> 0:15:22.720 Hey, well we can. 0:15:22.680 --> 0:15:26.880 Improve during that few years, and then we are add 0:15:26.920 --> 0:15:32.560 a more telling, more expertise like our new CFO debut Wagan. 0:15:32.960 --> 0:15:35.080 So we have been improving. 0:15:34.680 --> 0:15:39.120 Our seism and today our system maybe I can say 0:15:39.280 --> 0:15:43.640 perfect in concern, but have been much stronger than before 0:15:43.640 --> 0:15:46.200 ever and we are continue to improved. 0:15:46.480 --> 0:15:46.840 Thank you. 0:15:47.760 --> 0:15:52.600 I'm interested in Therefore, when you see the stock market move, 0:15:52.840 --> 0:15:56.960 the anticipation of growth, the fact that you're seeing, well 0:15:57.360 --> 0:16:00.600 only one current analyst on your stock is saying sell 0:16:00.760 --> 0:16:03.760 after the huge rally that you've had two and fifty 0:16:03.800 --> 0:16:06.600 percent just this year alone, what do you do as 0:16:06.600 --> 0:16:09.160 the leader in the face of that, of that bullishness? 0:16:09.160 --> 0:16:11.200 Do you start to sell your stock? Are you starting 0:16:11.240 --> 0:16:13.320 to buy more of it? Is some of your members 0:16:13.360 --> 0:16:14.480 of your boardermen doing. 0:16:15.560 --> 0:16:20.280 I guess the most important product again, the market demand 0:16:20.400 --> 0:16:23.320 is so strong and in turned out we have the 0:16:23.400 --> 0:16:27.320 base of the product. H non jazz technology turn to market, 0:16:27.680 --> 0:16:30.320 but quality and application optimized. 0:16:30.600 --> 0:16:32.040 We sat our operating book solution. 0:16:32.400 --> 0:16:37.560 We are able to custumomize our system easily to specifically 0:16:37.600 --> 0:16:40.280 optimize for customer okerlow for theirs. 0:16:40.360 --> 0:16:42.119 In the environment, that's a matter. 0:16:41.960 --> 0:16:46.720 For air couting, free air cooting or the cooling. So oh, 0:16:46.840 --> 0:16:51.080 those make our product really popular around the market. And 0:16:51.120 --> 0:16:54.480 I believe we are continuing to gain max jail and 0:16:54.640 --> 0:16:56.160 uh continue to grow. 0:16:57.040 --> 0:17:00.200 So it sounds like you're long, Charles. I mean I'm 0:17:00.200 --> 0:17:06.520 interested in well, your expertise. Let's put it in geopolitics, 0:17:06.760 --> 0:17:09.400 in global supply chains and the fact that you had 0:17:09.400 --> 0:17:12.280 to pull out your manufacturing from China previously because of 0:17:12.480 --> 0:17:16.959 ultimately the Chinese intelligence services inserting malicious components into your 0:17:16.960 --> 0:17:19.520 server and motherboards. It was like the story of twenty eighteen. 0:17:20.160 --> 0:17:24.320 How do you see that restriction on supply and the 0:17:24.440 --> 0:17:28.680 ongoing relationship between US and China now and affecting your business? 0:17:30.040 --> 0:17:33.760 Okay, I mean we are USA company, located in the 0:17:33.800 --> 0:17:38.520 city company, so we follow the national as though country. 0:17:38.600 --> 0:17:42.520 The compliance beveryware and that's number one. And then we 0:17:42.640 --> 0:17:46.440 try to service CASMO Global as much as we could, 0:17:46.760 --> 0:17:50.800 especially customer in the USA. So today most of our 0:17:50.840 --> 0:17:56.399 production facility are in USA and Passio in Taiwan, and 0:17:56.440 --> 0:17:59.520 we are debtap in a new campus in Malaysia. So 0:18:00.240 --> 0:18:06.840 of Podus security dibility supply chain, I believe we are 0:18:06.920 --> 0:18:09.920 in a one past the position. 0:18:11.359 --> 0:18:14.119 Just neine more of those chips, Charles m. It has 0:18:14.160 --> 0:18:17.000 been great speaking with you. An extraordinary share price move 0:18:17.320 --> 0:18:18.879 and great to have some time with you today to 0:18:18.880 --> 0:18:21.160 see the product behind you as well for our TV audience, 0:18:21.359 --> 0:18:23.280 with our radio audience, thanks you for your time. To 0:18:23.400 --> 0:18:35.480 super Micro CEO, Charles Leangler. Apple, where is it with 0:18:35.600 --> 0:18:38.720 its AI capabilities? They've been racing, in fact, to near 0:18:38.720 --> 0:18:41.480 the completion of a critical new software tool for app 0:18:41.520 --> 0:18:45.199 developers that could potentially rival Microsoft Get Help Copilot, and 0:18:45.240 --> 0:18:47.760 according to sources, it could be available to third party 0:18:47.800 --> 0:18:50.520 software makers as early as this year. Here with more 0:18:50.760 --> 0:18:52.560 of course, the man with the scoop mark them and 0:18:52.600 --> 0:18:54.479 we're pleasure to welcome you as always. 0:18:54.920 --> 0:18:55.600 Just talk us through. 0:18:55.640 --> 0:18:57.719 We'd all been waiting with beta breathas to ultimately how 0:18:57.720 --> 0:18:58.600 Apple adopts AI. 0:19:00.080 --> 0:19:01.399 Yeah, thank you so much for having me. 0:19:01.480 --> 0:19:05.119 So twenty twenty four it's ther of AI for Apple 0:19:05.359 --> 0:19:08.800 Generative AI in large language models. To be specific, the 0:19:08.840 --> 0:19:13.200 company is working on several new artificial intelligence initiatives to 0:19:13.280 --> 0:19:16.639 run on both the iPhone and the Mac. And one 0:19:16.720 --> 0:19:19.159 of the most important things is setting your sort of 0:19:19.200 --> 0:19:22.920 infrastructure and foundation to integrate AI. 0:19:22.680 --> 0:19:23.440 Into your products. 0:19:23.440 --> 0:19:25.680 And the most core thing you can do is add 0:19:25.800 --> 0:19:29.800 artificial intelligence to your programmed right tools. That's x code, 0:19:29.840 --> 0:19:33.760 that's the software used by developers inside Apple and outside Apple, 0:19:33.840 --> 0:19:35.040 so they'll be adding AI to that. 0:19:36.240 --> 0:19:39.440 I'm really interested mark on the pressure that Craig Feederigi's 0:19:39.520 --> 0:19:42.000 under because if you read the detail in your story, 0:19:42.000 --> 0:19:44.480 which is terrific by the way, you know the boards 0:19:44.680 --> 0:19:47.239 was given a demo of the latest and AI at 0:19:47.240 --> 0:19:50.040 the end of last year and they've almost real They 0:19:50.080 --> 0:19:53.560 basically said, you three key personnel, give us the product. 0:19:55.560 --> 0:19:55.760 Yeah. 0:19:55.840 --> 0:19:59.040 Craig Fedorigi, he's Apple Senior vice president of Software Engineering. 0:19:59.160 --> 0:20:02.000 He's really taken bold by the horn here. He's a 0:20:02.080 --> 0:20:03.200 huge proponent. 0:20:02.800 --> 0:20:04.520 Of LM's and generative AI. 0:20:04.920 --> 0:20:08.080 When chat GPT started to hit the market a couple 0:20:08.119 --> 0:20:10.240 of years ago, he was the one really pushing and 0:20:10.280 --> 0:20:12.960 investigating his Apple went to miss out on this technology. 0:20:13.000 --> 0:20:16.560 Does Apple need to integrate this technology? And so Federighi, 0:20:16.680 --> 0:20:19.919 along with Apple's Cloud Services organization as well as the 0:20:19.960 --> 0:20:23.920 Artificial Intelligence Organization Right run by Eddie Q and John 0:20:24.000 --> 0:20:27.639 gen Andrea. Specifically, those three groups have been working together 0:20:28.119 --> 0:20:32.639 on these Genai initiatives, with Federigi implementing it into iOS. 0:20:32.960 --> 0:20:37.040 The Jenai the underlying technologies obviously developed by Apples AI group, 0:20:37.320 --> 0:20:41.480 but it's Federigi who's consumerizing that technology, and they plan 0:20:41.600 --> 0:20:45.400 to release Status part of iOS eighteen this year, which 0:20:45.440 --> 0:20:47.239 I expect to be one of the biggest updates, if 0:20:47.280 --> 0:20:50.000 not the most significant update in the sixteen year history 0:20:50.000 --> 0:20:50.880 of the iPhone. 0:20:51.880 --> 0:21:01.680 Bluembo's Mark German ahead of a game, Welcome back. 0:21:01.560 --> 0:21:04.040 To Blouebog technology. I'm Caroline Heid in New York and. 0:21:04.000 --> 0:21:05.240 I'm ed Lovelo in San Francisco. 0:21:05.400 --> 0:21:08.760 Go to apply materials chip equipment maker forty five percent 0:21:08.760 --> 0:21:12.000 of revenues still coming from China, but their signals were 0:21:12.040 --> 0:21:14.919 really strong, Carrow, and we're basically saying, Okay, if this 0:21:15.080 --> 0:21:17.560 is the leading US maker of chip equipment or chip 0:21:17.560 --> 0:21:20.200 making equipment and they're getting orders, what does that mean 0:21:20.200 --> 0:21:22.840 about the investment cycle in twenty twenty four and what 0:21:22.880 --> 0:21:24.960 does it mean about end markets? Is actually finally a 0:21:24.960 --> 0:21:27.359 positive sign in the chip space. Maybe we should dig 0:21:27.400 --> 0:21:27.719 into it. 0:21:27.960 --> 0:21:30.480 Let's do that. We've got the perfect guest, Janet Roy, 0:21:30.800 --> 0:21:34.679 head of market analysis at RBC. Ruined Dolphin and Janet, 0:21:34.720 --> 0:21:37.920