WEBVTT - Meta to Deploy “Millions” of Nvidia Processors 0:00:02.520 --> 0:00:13.560 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.560 --> 0:00:17.400 from coast to coast, with Caroline Hyde in New York 0:00:17.640 --> 0:00:19.640 and Eva Low in Sent Francisco. 0:00:22.800 --> 0:00:24.280 This is Bloomberg Tech coming up. 0:00:24.320 --> 0:00:27.720 Meta agrees to deploy millions of Nvidia processors over the 0:00:27.720 --> 0:00:31.639 next few years, reinforcing its ties with the AI chip giant. 0:00:32.120 --> 0:00:35.159 Plus Meta's CEO Mark Zuckerberg is set to take the 0:00:35.200 --> 0:00:39.120 stand later today in a landmark social media addiction trial 0:00:39.400 --> 0:00:42.680 in Los Angeles. And we discussed some news in software 0:00:42.760 --> 0:00:46.080 and energy tech with the CEOs of Autodesk and heron 0:00:46.520 --> 0:00:48.080 later this hour. 0:00:48.320 --> 0:00:49.440 Welcome to Bloomberg Tech. 0:00:49.479 --> 0:00:51.760 The story right now in public markets when it comes 0:00:51.800 --> 0:00:54.840 to tech is we are rebounding a little bit then 0:00:54.880 --> 0:00:57.000 as that one hundred up more than a percentage point. 0:00:57.480 --> 0:01:01.200 Largely that's on strong or positive economic data. But I 0:01:01.240 --> 0:01:04.920 put the Philadelphia Semiconductor Index in there or socks because 0:01:05.240 --> 0:01:09.360 actually movements in chips and the mag seven is the 0:01:09.400 --> 0:01:12.319 news driver, the catalyst in some of what's happening at 0:01:12.319 --> 0:01:16.319 the index level. That manifests in a deal between Meta 0:01:16.800 --> 0:01:21.119 and Nvidia for millions of invidious processors over a number 0:01:21.120 --> 0:01:24.440 of years. But this is clearly a driver of markets, 0:01:24.440 --> 0:01:27.360 at least in Vidia's case up almost three percent. Meta 0:01:27.480 --> 0:01:30.240 had been lower is now modestly higher. Let's get the 0:01:30.240 --> 0:01:33.560 details of bloombogs Ian King, who leads our coverage of semiconductors. 0:01:33.760 --> 0:01:36.679 So the reality is Meta is already the number two 0:01:36.720 --> 0:01:39.520 customer for Nvidia. But this is an agreement over time, 0:01:40.400 --> 0:01:43.319 millions of chips, and we're not just talking Blackwell GPU, 0:01:43.680 --> 0:01:47.240 We're talking later generation Rubin and then the CPUs in 0:01:47.280 --> 0:01:49.360 each case. What are the kind of facts that we 0:01:49.440 --> 0:01:49.840 need to know? 0:01:50.080 --> 0:01:53.400 Yeah, and networking as well. I mean, the frustrating part 0:01:53.400 --> 0:01:56.040 about it it is we don't have a definitive time period. 0:01:56.440 --> 0:01:58.880 But if we sort of back it out a million chips, 0:01:59.080 --> 0:02:02.040 their average selling price for in video of one GPU 0:02:02.200 --> 0:02:05.160 for the data center is about fifteen sixteen thousand dollars, 0:02:05.520 --> 0:02:08.919 probably as much as twice as that for a leading 0:02:09.000 --> 0:02:13.040 edge one. So you're already talking as much as Meta 0:02:13.120 --> 0:02:16.280 spends on in video gear in a year in just 0:02:16.320 --> 0:02:19.239 the GPUs. Add on top of that the networking, add 0:02:19.280 --> 0:02:22.440 on top of that the CPUs, and obviously it feels 0:02:22.520 --> 0:02:25.519 like an extension, It feels like a bigger commitment to 0:02:25.760 --> 0:02:27.720 in video but they wouldn't say for sure. 0:02:28.080 --> 0:02:31.000 You had a discussion with one of in Video's leaders 0:02:31.000 --> 0:02:33.760 in the data center and Infrastructure group, and part of 0:02:33.760 --> 0:02:37.840 the discussion was, this is the first big example of 0:02:37.919 --> 0:02:41.600 in Vidia selling the Grace CPU to market as a 0:02:41.680 --> 0:02:43.000 kind of standalone product. 0:02:43.600 --> 0:02:44.480 Simple questions like. 0:02:44.440 --> 0:02:47.200 What would you use a Grace CPU for other than 0:02:48.040 --> 0:02:51.200 you know, what's happening in AI. And that is why 0:02:51.240 --> 0:02:53.640 the number is probably tens of billions over that that 0:02:53.800 --> 0:02:54.600 time period. 0:02:54.400 --> 0:02:57.960 Right, Yeah, I mean, it's definitely a step forward for them. 0:02:58.000 --> 0:03:01.480 It's definitely a market expansion for them. You remember Jensen 0:03:01.520 --> 0:03:04.120 told us this a while ago. He dropped a strong 0:03:04.200 --> 0:03:07.720 hint that this was coming. And here it is the key. 0:03:07.919 --> 0:03:10.040 The key thing to look at is all this is 0:03:10.040 --> 0:03:14.000 Intel's territory, this is Amb's territory, the general purpose processor 0:03:14.240 --> 0:03:16.720 for a data center that there's a lot of the 0:03:16.800 --> 0:03:19.679 general computing task. What in Video is saying, Hey, we've 0:03:19.720 --> 0:03:22.040 got this CPU that was buried in the middle of 0:03:22.040 --> 0:03:23.440 all of this gear, but you can just use it 0:03:23.480 --> 0:03:26.040 on its own as well. That's a market extension for 0:03:26.120 --> 0:03:28.800 them if we see widespread adoption. Obviously, MATA is a 0:03:28.800 --> 0:03:30.200 good adoption case. 0:03:30.360 --> 0:03:32.280 One of the other movers in the market this morning 0:03:32.320 --> 0:03:34.560 is AMD, which was to the downside. 0:03:35.160 --> 0:03:38.240 I guess not surprising. The biggest story is in Vidia. 0:03:38.080 --> 0:03:42.400 Kind of keeps rolling on and dominating the spend of 0:03:42.440 --> 0:03:45.280 the hyperscaler's plus Meta, which is not a hyperscaler, but 0:03:45.320 --> 0:03:48.240 that has the data center footprint of one. I was 0:03:48.320 --> 0:03:50.560 interested to go into the terminal and see, like Meta 0:03:50.600 --> 0:03:54.640 about nine percent of revenues from video, but Microsoft's number one, 0:03:54.920 --> 0:03:57.520 you know, double that. But the big picture is there 0:03:57.600 --> 0:03:59.760 right in video it seems dominant. 0:04:00.080 --> 0:04:04.280 Yeah, I mean, you know, the background here is Microsoft, Meta, Amazon. 0:04:04.320 --> 0:04:06.800 They're all making their own CPUs. They're all trying to 0:04:06.800 --> 0:04:10.600 make their own accelerators. Any commitment to either in video 0:04:11.200 --> 0:04:14.760 or indeed AMD for exactly those parts is obviously something 0:04:14.800 --> 0:04:17.480 that investors want to see and is a strong sign 0:04:17.560 --> 0:04:18.919 for the chip makers themselves. 0:04:19.080 --> 0:04:22.040 Bloomberg's Ian King on a story that again news driven 0:04:22.040 --> 0:04:26.480 catalyst for markets this morning. Investors are looking also to 0:04:26.520 --> 0:04:30.039 scoop up beaten down names after a stretch of choppy 0:04:30.160 --> 0:04:33.800 AI driven volatility. Morgan Stanley says the recent sell off, 0:04:33.960 --> 0:04:38.560 especially in software and services, was largely indiscriminate, with some 0:04:38.680 --> 0:04:43.359 companies hit harder despite strong fundamentals. Here's breakdown the AI 0:04:43.400 --> 0:04:47.320 impact across all sectors is Morgan Stanley Gooble Research director 0:04:47.560 --> 0:04:51.200 Katie Huberty. I mean, it's such a detailed report that 0:04:51.279 --> 0:04:55.440 looks across stocks with a very wide lens. But in 0:04:55.480 --> 0:04:57.480 the here and now I want to go to that 0:04:57.520 --> 0:05:00.880 word indiscriminate and just that parag off of the report 0:05:00.920 --> 0:05:03.400 where you summarize the last few weeks, what do you 0:05:03.440 --> 0:05:05.719 think was happening right right? 0:05:06.240 --> 0:05:08.719 So I think it's important on the back of the 0:05:08.760 --> 0:05:12.000 announcement that you just discussed to understand that we're in 0:05:12.040 --> 0:05:16.120 the very early innings of what is likely to be 0:05:16.400 --> 0:05:21.640 a ten trillion dollar CAPEX investment cycle. That investment cycle 0:05:22.120 --> 0:05:25.400 is underwritten by a productivity story. 0:05:25.600 --> 0:05:27.960 As the technology diffuses into. 0:05:27.760 --> 0:05:32.520 The market, there is real productivity acceleration, which is important 0:05:32.560 --> 0:05:35.560 because the last two decades we've been running at labor 0:05:35.600 --> 0:05:40.600 productivity that is half of normal levels. Because we knew 0:05:40.880 --> 0:05:44.400 this adoption story was going to be critical and it 0:05:44.440 --> 0:05:48.160 was going to touch all sectors of the market. We 0:05:48.279 --> 0:05:51.360 have now five times over map the thirty six hundred 0:05:51.360 --> 0:05:58.920 stocks that we cover to understand rate of change, exposure, materiality, pricing, power, 0:05:59.279 --> 0:06:02.560 and it's on the back of that data that yes, 0:06:02.640 --> 0:06:06.840 we've been able to identify where there are companies that 0:06:06.920 --> 0:06:12.360 have been sold indiscriminately and there's a real opportunity. We 0:06:12.400 --> 0:06:16.160 see that in software and services. In research, we're a 0:06:16.200 --> 0:06:20.839 heavy adopter of AI technology, and the conversations we're having 0:06:20.880 --> 0:06:23.520 right now with large language models is how do we 0:06:23.560 --> 0:06:27.640 connect those models to the applications and data that we 0:06:27.800 --> 0:06:31.159 use every day to unlock the real potential. And so 0:06:31.240 --> 0:06:35.040 you can see that the list that we published last week, 0:06:35.400 --> 0:06:39.119 the thread across the software and services companies are where 0:06:39.160 --> 0:06:42.240 there is a data mode, whether that's credit or it's 0:06:42.400 --> 0:06:47.800 market data or its systems of record in financials or 0:06:47.880 --> 0:06:48.760 customer data. 0:06:50.400 --> 0:06:52.599 This is the fifth time you've kind of done this 0:06:52.880 --> 0:06:57.679 exercise mapping global AI stocks, right, and you list margin 0:06:57.720 --> 0:07:00.600 expansion as the leading piece of evidence and so of 0:07:00.720 --> 0:07:03.600 ROI I'm thinking back to earlier in earning season when 0:07:03.600 --> 0:07:08.120 we had names like Salesforce Service Now and that part 0:07:08.160 --> 0:07:11.360 of the research report I flagged at the beginning fundamentals. 0:07:11.800 --> 0:07:13.840 You know, they didn't really get the benefit of the 0:07:13.880 --> 0:07:17.120 doubt from the market. They showed actually quite a lot 0:07:17.160 --> 0:07:21.240 of real well deployment of that technology, but something you 0:07:21.240 --> 0:07:23.800 know isn't quite believed by the street. 0:07:24.040 --> 0:07:24.640 What is that? 0:07:26.600 --> 0:07:31.120 So what's really important in this data set is tracking 0:07:31.360 --> 0:07:32.240 rate of change. 0:07:32.320 --> 0:07:33.480 So if you go back two. 0:07:33.320 --> 0:07:37.800 Years ago, the big rate of change in exposure materiality 0:07:37.920 --> 0:07:42.160 was energy and utilities. That sector outperformed the most in 0:07:42.200 --> 0:07:45.840 twenty twenty four. Last year it was financials. At the 0:07:45.840 --> 0:07:48.800 beginning of twenty twenty five we highlighted as the biggest 0:07:48.880 --> 0:07:53.600 rate of change. Financials by many accounts, even outperformed parts 0:07:53.600 --> 0:07:57.520 of the technology sector last year. Right now, of the 0:07:57.600 --> 0:08:01.840 rate of change is actually greatest in non tech categories, 0:08:02.200 --> 0:08:08.960 particularly in consumer and apparel, endurable goods, in autos and 0:08:09.000 --> 0:08:12.640 so Yes, we see areas of software that have been 0:08:12.680 --> 0:08:16.920 sold indiscriminately where there is a data mode and there's 0:08:16.960 --> 0:08:21.240 an opportunity, but it's broader than just technology. What we 0:08:21.280 --> 0:08:25.440 see in the data is that the AI adopters are 0:08:25.480 --> 0:08:29.360 experiencing margin expansion that's double the market indices, double the 0:08:29.480 --> 0:08:32.559 MSCI World Index, double the S and P five hundred, 0:08:33.040 --> 0:08:36.080 and so we believe that there's a regime shift happening 0:08:36.120 --> 0:08:40.640 in the market away from a purely tech and specifically 0:08:40.760 --> 0:08:47.320 AI enabler leadership to now broadening of AI adoption and 0:08:47.480 --> 0:08:52.079 leadership not just in technology, but across all sectors. 0:08:53.120 --> 0:08:54.000 Katie tied to this. 0:08:54.040 --> 0:08:56.600 One of the big moments of last year was Morgan 0:08:56.600 --> 0:09:00.120 Stanley launching its private companies coverage, going much deeper on 0:09:00.200 --> 0:09:03.360 private companies who are so active in this world. Right, 0:09:03.920 --> 0:09:07.560 have you shifted existing analysts from public to private companies? 0:09:07.559 --> 0:09:12.199 Are you onboarding specific private analysts on specific domains? 0:09:12.320 --> 0:09:14.560 We just have thirty seconds. 0:09:14.800 --> 0:09:17.800 Right, So we believe that that the domain experts that 0:09:17.920 --> 0:09:22.720 cover the public companies are typically and best positioned to 0:09:23.120 --> 0:09:26.880 also cover private sectors. But there are areas of thematics, 0:09:26.880 --> 0:09:33.400 think humanoids and AI where we have shifted analysts from 0:09:34.040 --> 0:09:38.160 stock coverage to covering those thematics where there will be 0:09:38.240 --> 0:09:41.640 a lot of private company innovation, But most of the 0:09:41.679 --> 0:09:46.840 time that coverage comes from our existing public company domain experts. 0:09:48.040 --> 0:09:50.199 Katie Ubertim Morgan Stanley, it's great to have you on 0:09:50.240 --> 0:09:50.960 Bloomberg Tech. 0:09:51.280 --> 0:09:53.040 Thank you very much. Now, coming up on the show, 0:09:53.040 --> 0:09:53.440 we're going to. 0:09:53.440 --> 0:09:57.760 Speak with Andrew and Egnost, Autodesk president and CEO. That 0:09:57.840 --> 0:10:14.240 conversation's next. This is Bloomberg Tech. Autodesk is leaning into 0:10:14.280 --> 0:10:17.160 the AI powered physical world. The company announced a two 0:10:17.240 --> 0:10:21.680 hundred million dollars strategic investment in AI research firm World Labs, 0:10:21.840 --> 0:10:26.559 its largest startup investment to date. Here to discuss Autodesk 0:10:26.600 --> 0:10:29.280 President and CEO Andrew and Egnouse. 0:10:30.080 --> 0:10:34.599 Very interesting, Good morning to you. We've been looking at it. 0:10:35.440 --> 0:10:37.480 We've been looking into this idea a lot, you know, 0:10:37.520 --> 0:10:41.800 through the beginning of twenty six, particularly in the context 0:10:41.920 --> 0:10:47.280 of industrial manufacturing, the future role of humanoid robots, how 0:10:47.320 --> 0:10:50.400 they come to learn the environment that they're in. People 0:10:50.440 --> 0:10:54.880 sometimes say digital twins, you have chosen what you believe 0:10:54.920 --> 0:10:57.120 to be the best player right for the sort of 0:10:57.160 --> 0:10:59.199 AI and software underpinning. 0:10:58.679 --> 0:11:01.200 Of that thought. Why World Labs. 0:11:01.720 --> 0:11:04.079 Yeah, Well, there's a couple of really important reasons. You know, First, 0:11:04.120 --> 0:11:07.040 we kind of share a common ethos. We believe that 0:11:07.160 --> 0:11:10.440 AI can enhance and expand human ingenuity, not replace it, 0:11:10.720 --> 0:11:13.240 and that's something that both World Labs and auditors share 0:11:13.240 --> 0:11:16.800 in common. But more importantly, you know, FAI, fe Lee, 0:11:17.040 --> 0:11:21.240 Autodesk others believe that the next frontier are world models. 0:11:21.480 --> 0:11:24.640 This is the ability to simulate, predict, and react to 0:11:25.160 --> 0:11:28.960 real world constraints and virtual changes in world world constraints, 0:11:29.080 --> 0:11:32.040 virtual changes of design constraints within a virtual environment. 0:11:32.520 --> 0:11:34.800 That means you really have to partner with. 0:11:34.720 --> 0:11:38.640 Someone that's got deep expertise and spatial reasoning for AI. 0:11:39.120 --> 0:11:40.520 That's why we're working. 0:11:40.320 --> 0:11:42.720 With world Labs, and they picked us because we have 0:11:42.920 --> 0:11:46.720 deep expertise and deep data knowledge of what happens in 0:11:46.720 --> 0:11:48.080 a design and make process. 0:11:49.080 --> 0:11:52.320 The technical challenge is to apply the physics of the 0:11:52.360 --> 0:11:55.679 real world into the virtual world, particularly when you're trying 0:11:55.720 --> 0:11:59.360 to simulate. I'm assuming that beyond the investment, there is 0:11:59.480 --> 0:12:03.360 a commercial arrangement here right where you're able to do 0:12:03.440 --> 0:12:07.040 something with World Labs technology. How does that manifest? 0:12:07.559 --> 0:12:09.800 Yeah, so we're going to be working together with using 0:12:09.800 --> 0:12:13.319 world Labs technology with our tools. They're also going to 0:12:13.320 --> 0:12:15.600 get access to some of the proprietary models that we've 0:12:15.600 --> 0:12:18.120 built so that we can help them expand and create 0:12:18.160 --> 0:12:21.679 their ability to do deep spatial reasoning. So you'll see 0:12:21.760 --> 0:12:24.600 us initially lean into the media and entertainment space, but 0:12:24.760 --> 0:12:27.319 you know, as you said, this is much more expansive 0:12:27.320 --> 0:12:30.400 than that and Autodesk. We're really interested in the mid 0:12:30.440 --> 0:12:33.640 market manufacturing space and mid market factories, small and mid 0:12:33.679 --> 0:12:36.000 sized factories in particular. This is going to be a 0:12:36.120 --> 0:12:39.040 high growth area, and these factories are going to need 0:12:39.080 --> 0:12:41.240 to be able to operate like the biggest factories in 0:12:41.280 --> 0:12:43.719 the world, but at a much smaller scale, and they 0:12:43.760 --> 0:12:46.640 need technology from US and technology from World Labs to 0:12:46.679 --> 0:12:46.920 do that. 0:12:48.160 --> 0:12:50.760 You put out the announcement about the two hundred million 0:12:50.800 --> 0:12:54.040 dollar part of the strategic investment. Actually, later in the morning, 0:12:54.080 --> 0:12:58.040 world Labs confirmed they did a one billion dollar fundraise overall, 0:12:58.440 --> 0:13:00.520 so you're a big portion of it. What was the 0:13:00.600 --> 0:13:03.120 valuation that World Labs was assigned. 0:13:02.760 --> 0:13:05.640 In that You'd have to talk to World Labs about that. 0:13:05.720 --> 0:13:08.920 I'm not going to discuss what their valuations were, but 0:13:08.960 --> 0:13:11.000 you can reach out to that team. 0:13:11.840 --> 0:13:14.120 The question is when does this become a real commercial 0:13:14.120 --> 0:13:16.400 opportunity for you then, Andrew, you know, when is it 0:13:16.520 --> 0:13:18.440 that you're going to be able to say in an 0:13:18.480 --> 0:13:22.360 earnings report this is something that resulted from that strategic investment. 0:13:23.640 --> 0:13:26.320 You know, it's important ed for us to recognize that 0:13:26.400 --> 0:13:30.080 in our space, AI is already returning value. I know 0:13:30.120 --> 0:13:32.000 there's a lot of hype out there, especially with the 0:13:32.040 --> 0:13:34.959 infrastructure build up and what's happened with large language models, 0:13:35.240 --> 0:13:38.319 but a lot of software companies, particularly Autodesk, have been 0:13:38.360 --> 0:13:42.760 investing in AI incrementally for a decade, so we're already 0:13:42.760 --> 0:13:46.360 delivering value today around the ability to simulate certain things 0:13:46.440 --> 0:13:50.920 like flooding, lighting lighting studies, the ability to simulate air 0:13:51.040 --> 0:13:54.000 and wind and noise studies using AI, the ability to 0:13:54.000 --> 0:13:57.320 build preliminary models with AI that take into account structural 0:13:57.320 --> 0:14:01.480 constraints or the need to remove structural costraints, and helping 0:14:01.520 --> 0:14:04.120 people make better decisions the construction cycle. So AI is 0:14:04.160 --> 0:14:07.000 delivering value in our space today and regardless of what 0:14:07.080 --> 0:14:09.080 happens out there in the world, We're going to continue 0:14:09.080 --> 0:14:12.120 to invest over the next two, three, four, five years, 0:14:12.240 --> 0:14:15.439 so you'll see us continue to roll out incremental real value. 0:14:15.640 --> 0:14:16.679 So it's happening now. 0:14:16.960 --> 0:14:19.240 This is only going to allow us to accelerate deeper 0:14:19.320 --> 0:14:22.080 value into additional areas and into deeper parts of the 0:14:22.160 --> 0:14:23.400 design and make life cycle. 0:14:24.160 --> 0:14:25.440 That's where I want to end it. You know, a 0:14:25.480 --> 0:14:27.720 lot of people ask what's the net result of all 0:14:27.720 --> 0:14:30.600 of this. We focused a lot on digital twins, virtual worlds. 0:14:30.600 --> 0:14:35.440 We discussed that is the result that you know, big facilities, 0:14:35.920 --> 0:14:40.160 manufacturing sites, plants get built quicker, the people inside them 0:14:40.200 --> 0:14:43.080 get trained more quickly. Humanoid robots are deployed in the 0:14:43.080 --> 0:14:44.640 real world more quickly. 0:14:45.760 --> 0:14:49.280 Here's the big story in our space, Eddie. There is 0:14:49.320 --> 0:14:53.080 a massive capacity problem. There is not enough money, people 0:14:53.400 --> 0:14:56.720 and materials to build and rebuild everything in the world 0:14:56.840 --> 0:14:59.800 right now. Right now, people are building lots of data centers, 0:15:00.000 --> 0:15:03.240 a lot of infrastructure that serves day to day people 0:15:03.280 --> 0:15:05.440 in their lives, road rail, all sorts of things. 0:15:05.560 --> 0:15:07.400 Doesn't get built while that's getting built. 0:15:07.640 --> 0:15:12.000 We need to execute more projects with the same amount 0:15:12.040 --> 0:15:13.880 of people in the same capacity we have today, and 0:15:13.920 --> 0:15:15.960 we need to do it at an accelerated rate. That's 0:15:15.960 --> 0:15:18.560 something that's very unique about the design and build world, 0:15:18.800 --> 0:15:20.880 this fundamental capacity problem. 0:15:21.000 --> 0:15:22.800 AI is going to be enabled to unlock that. 0:15:25.000 --> 0:15:28.640 Andrew Anagnus autodes CEO, really appreciate your time on bloo 0:15:28.640 --> 0:15:29.040 Bow Tech. 0:15:29.240 --> 0:15:29.600 Thank you. 0:15:30.360 --> 0:15:34.240 In other earnings news, Palo Alto Network shares plunging having 0:15:34.240 --> 0:15:38.000 a difficult day after the cybersecurity company released a forecast 0:15:38.000 --> 0:15:40.960 for adjusted earnings that was weaker than anticipated, though it 0:15:41.000 --> 0:15:44.360 also boosted It's for your forecast for other key metrics, 0:15:44.400 --> 0:15:49.480 including revenue and remaining performance obligations. CEO nikesha Ora told 0:15:49.560 --> 0:15:53.240 us why he thinks the market is wrong about its 0:15:53.240 --> 0:15:54.280 reaction to the earnings. 0:15:54.280 --> 0:15:54.680 This is this. 0:15:55.960 --> 0:15:57.920 I think the market is not paying attention to our 0:15:57.960 --> 0:16:01.200 numbers carefully. We just complete We did our largest acquisition 0:16:01.240 --> 0:16:01.920 in cyber Arc. 0:16:02.280 --> 0:16:03.560 We had a great quarter. 0:16:03.760 --> 0:16:08.120 Our numbers are across every known consensus metric. The market 0:16:08.160 --> 0:16:10.360 is not understanding that our guidance for the next two 0:16:10.400 --> 0:16:13.320 quarters includes cyber Arc. If you take the consensus of 0:16:13.320 --> 0:16:16.040 cyber Arc and ours, who are actually getting above the 0:16:16.080 --> 0:16:19.360 collective consensus. But the market hasn't understood the dilution of shares, 0:16:19.520 --> 0:16:20.560 so I think they have it wrong. 0:16:22.280 --> 0:16:25.640 Coming up, Apple Fast Tracks AI wearable devices, we have 0:16:25.680 --> 0:16:26.640 the Bloomberg recording. 0:16:26.680 --> 0:16:28.960 Next, this is Bloomberg Tech. 0:16:38.440 --> 0:16:41.920 Jeff Bezos Space Dot Up Blue Origin has shifted resources 0:16:41.960 --> 0:16:45.800 from space tourism to lunar projects. CEO Dave Limpz like 0:16:45.880 --> 0:16:48.680 with Bloomberg's and Marie Harden about the move while at 0:16:48.720 --> 0:16:50.040 the Defense Tech Summit. 0:16:50.960 --> 0:16:55.600 Where it's such a pivotal moment around where space is 0:16:56.000 --> 0:17:00.680 and there's never been more demand, you know, the We 0:17:00.800 --> 0:17:04.800 have years worth of demand for our launch business, as 0:17:04.920 --> 0:17:10.439 does everybody that's launching. We're very constrained as a country 0:17:10.640 --> 0:17:12.840 in terms of the number of launch vehicles that we 0:17:12.960 --> 0:17:16.399 have right now, and our adversaries around the world are 0:17:16.480 --> 0:17:20.399 not standing still. They're putting hundreds of billions of dollars 0:17:20.480 --> 0:17:25.119 into launch and into space, and especially as it relates 0:17:25.160 --> 0:17:28.320 to the Moon, which we haven't been on the Moon 0:17:28.400 --> 0:17:31.600 for fifty years. We think it's really important for Blue, 0:17:31.680 --> 0:17:35.160 for the country, and it just made prudent sense from 0:17:35.200 --> 0:17:39.280 our standpoint to take the brilliant people that we're working 0:17:39.320 --> 0:17:42.040 on New Shepherd, pause that for a while we're planning 0:17:42.240 --> 0:17:45.639 for at least two years, and then repurpose them to 0:17:46.200 --> 0:17:48.920 even further accelerate our efforts in lunar and launch. 0:17:49.160 --> 0:17:51.520 There was all this excitement I think about New Shepherd, 0:17:51.720 --> 0:17:55.600 especially because Katie Perry went to space and for civilians 0:17:55.600 --> 0:17:57.600 who maybe want to have that moment like. 0:17:57.680 --> 0:17:59.640 Mark Bezos had. So do you think you'll go back 0:17:59.640 --> 0:18:01.919 to that at some point? Is it really just a pause? 0:18:02.359 --> 0:18:04.560 I think we will. I think there's still you know, 0:18:04.720 --> 0:18:08.359 we had multiple years of backlog and that it was 0:18:08.440 --> 0:18:11.840 the easiest ticket to sell, was that, And so I 0:18:11.920 --> 0:18:15.960 think we'll likely go back into that business. But again, 0:18:16.040 --> 0:18:18.600 at the moment in time right now, it just makes 0:18:18.680 --> 0:18:21.080 more sense to focus on the Moon. 0:18:21.640 --> 0:18:25.000 So it really is a space race, right now I 0:18:25.080 --> 0:18:25.679 don't you know. 0:18:26.280 --> 0:18:31.280 I'm very much pro America and a capitalist, but I 0:18:31.400 --> 0:18:34.760 don't think we want another Spotnik moment. And we were 0:18:34.800 --> 0:18:36.920 the first to put boots on the moon, and I 0:18:37.119 --> 0:18:38.879 really feel like we want to put you know, we 0:18:38.960 --> 0:18:41.120 want to put boots on the moon. And this time 0:18:41.680 --> 0:18:45.960 the name of our group inside of Blue is Lunar Permanence, 0:18:46.359 --> 0:18:48.680 So we're not only racing to the moon to get 0:18:48.720 --> 0:18:51.160 there back again for the first time, but we want 0:18:51.240 --> 0:18:52.400 to keep people on the moon. 0:18:53.960 --> 0:18:57.000 Blue Origin CEO Dave Limb speaking with Bloomberg's a Marie 0:18:57.040 --> 0:18:59.280 Horder and in other news, it's time for talking tech 0:18:59.359 --> 0:19:01.840 and first start or On Buffett's Berkshire Halfaway cut its 0:19:01.880 --> 0:19:05.280 Amazon steak by seventy five percent in the fourth quarter, 0:19:05.600 --> 0:19:08.399 reducing it to about two point three million shares, according 0:19:08.480 --> 0:19:11.240 to a regulatory filing. At the same time, it built 0:19:11.240 --> 0:19:13.960 a new position in The New York Times with five 0:19:14.040 --> 0:19:17.320 point one million shares and continued trimming. According to the 0:19:17.359 --> 0:19:19.800 thirteen and a half document, its other holdings in Bank 0:19:19.840 --> 0:19:23.640 of America and Apple plus Uber and plans to invest 0:19:23.680 --> 0:19:26.479 more than one hundred million dollars to expand fast charging 0:19:26.520 --> 0:19:28.800 infrastructure for autonomous. 0:19:28.240 --> 0:19:29.399 Evs in the US. 0:19:29.600 --> 0:19:33.199 The company will build high capacity charging hubs in San Francisco, 0:19:33.520 --> 0:19:37.200 Los Angeles, and Dallas, the same market where it's preparing 0:19:37.240 --> 0:19:41.080 to roll out a public ROBOTAXI service. And Apple is 0:19:41.200 --> 0:19:44.280 breaking away from its tech pits. Bloomberg data show the 0:19:44.359 --> 0:19:47.760 iPhone maker's forty day correlation with the NASDAQ one hundred 0:19:48.040 --> 0:19:50.200 has dropped to its lowest level since two thousand and 0:19:50.280 --> 0:19:53.520 six as it largely sits out the AI arms rates, 0:19:53.600 --> 0:19:57.600 with rivals pouring money into AI related capex. Some investors 0:19:57.640 --> 0:20:02.560 are starting to see Apple as an healing alternative. Let's 0:20:02.600 --> 0:20:05.080 power on and stay with Apple. The company's fast tracking 0:20:05.160 --> 0:20:08.040 work on three new wearables as it races to compete 0:20:08.280 --> 0:20:11.280 with AI powered hardware. Sources say the tech giant is 0:20:11.400 --> 0:20:16.960 developing smart glasses, a pendant, and AirPods with expanded AI capabilities. 0:20:17.240 --> 0:20:20.280 Bloomberg Consumer Tech and Apple managing editor Mark gum And 0:20:20.320 --> 0:20:24.200 break the story and it's with us. Okay, three distinct products, 0:20:24.400 --> 0:20:25.719 three distinct categories. 0:20:26.000 --> 0:20:27.600 Let's go through what you've learned from sources. 0:20:28.880 --> 0:20:31.440 Yeah, you know, Apple, they are sitting out the AI 0:20:31.640 --> 0:20:34.359 race in a way, but they're going to enter in 0:20:34.440 --> 0:20:38.399 an Apple way, and that means hardware blended with AI, 0:20:38.760 --> 0:20:41.960 blended with software, blended with services. And they're going to 0:20:42.000 --> 0:20:44.440 get there if they're able to pull off this new series, 0:20:44.440 --> 0:20:46.120 which I believe they will before the end of the year. 0:20:46.560 --> 0:20:49.760 And so three hardware products. One is smart glasses. These 0:20:49.800 --> 0:20:52.000 are going to be quite significant. They're going to compete 0:20:52.000 --> 0:20:54.359 with the metal product. They're likely going to be a 0:20:54.400 --> 0:20:57.720 bit pricier. They're going to have dedicated cameras, one for 0:20:57.880 --> 0:21:01.600 media capture, one for computer vision. In terms of functionality, 0:21:01.720 --> 0:21:04.639 you'll get things like if you're taking a walk and 0:21:04.720 --> 0:21:06.520 you have turned by turn directions on. 0:21:07.040 --> 0:21:09.160 Instead of it telling you make a right in four 0:21:09.280 --> 0:21:10.080 hundred and fifty. 0:21:09.840 --> 0:21:12.399 Feet, it might say make a right at the gray building, 0:21:12.560 --> 0:21:16.000 becacause it sees your surroundings, or make a right past 0:21:16.040 --> 0:21:21.000 the white car. AirPods with cameras very similar AI functionality 0:21:21.080 --> 0:21:24.480 without the media capture functionality built into the earbuds that 0:21:24.680 --> 0:21:27.200 you know people already know and love. And then the 0:21:27.320 --> 0:21:32.119 pendant that's really an alternative product that is an accessory 0:21:32.240 --> 0:21:35.520 for the phone, your eyes and ears for the phone. 0:21:35.640 --> 0:21:39.680 For AI in a sense similar functionality to the glasses. 0:21:39.280 --> 0:21:42.640 And the AirPods, but not everyone wants to wear smart glasses, 0:21:42.960 --> 0:21:45.119 and so if Apple wants to provide that eyes and 0:21:45.200 --> 0:21:47.600 ears to the world, it's going to need some o 0:21:47.720 --> 0:21:49.560 their product, and that's what the pendant's for. 0:21:49.680 --> 0:21:51.439 People aren't going to have AirPods in their ears at 0:21:51.440 --> 0:21:51.960 all times. 0:21:52.320 --> 0:21:55.119 People aren't going to want to put glasses on their 0:21:55.160 --> 0:21:57.080 face in all cases, especially if they don't have vision 0:21:57.119 --> 0:21:57.800 correction needs. 0:21:58.119 --> 0:22:01.359