WEBVTT - Global Head: Technology at Wedbush Securities Dan Ives

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Here to briefast this

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<v Speaker 1>morning with a new Pittsburgh Pirates cap is Dan Ives

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<v Speaker 1>for those of you on radio, You're lucky.

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<v Speaker 2>What's the p on your hat?

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<v Speaker 3>It's Arnold Palmer hat from Arna Palmer torn him big,

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<v Speaker 3>big Arma Palmer fan.

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<v Speaker 1>Let's get this out of the way. You signed as

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<v Speaker 1>a chairman of a crypto thing this week. Explain what

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<v Speaker 1>the game is you're doing there?

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<v Speaker 2>Yep.

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<v Speaker 3>So you know we announce that I'm gonna be chairman

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<v Speaker 3>of ECO and AKO. You know is you know when

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<v Speaker 3>you think about Sam Altman in the build out of World,

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<v Speaker 3>what Dave essentially done is it's really gonna be the

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<v Speaker 3>infrastructure authentication for AI in the future. And you know,

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<v Speaker 3>I was a huge believer in this. You know, I'm

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<v Speaker 3>not taking this on just for any crypto.

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<v Speaker 1>Is that equity in this a bias? Is a rasearch channelist?

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<v Speaker 1>This is a sidecard deal.

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<v Speaker 3>Yeah, this is This is a total separate initiative, uh,

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<v Speaker 3>you know, total separate from my web bush. But but

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<v Speaker 3>Tom factors really into my view of the AI revolution.

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<v Speaker 3>I'm doing this because I think this is gonna be

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<v Speaker 3>the factor standard for really you're going.

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<v Speaker 2>To take a minority interest in perplexity.

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<v Speaker 3>If they called you, we need as long as it

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<v Speaker 3>comes through Keen.

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<v Speaker 4>Earlier this week was a corrugated packaging company.

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<v Speaker 3>It basically is a treasury vehicle for world Coin in

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<v Speaker 3>terms of what we've done, and that's why I think,

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<v Speaker 3>you know, receptions obviously been great. You know we raised

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<v Speaker 3>capital and cuz that this morning, Okay, it was super

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<v Speaker 3>exciting to just put another you want to.

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<v Speaker 4>Talk, which is a workin It's a means of authentication.

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<v Speaker 4>You have your iris scan to know that you're the

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<v Speaker 4>person that you say you are.

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<v Speaker 2>Glad you know, Well, okay, that's enough the orb for community.

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<v Speaker 2>Next time, What did mag five learned from the Oracle

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<v Speaker 2>pop last night?

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<v Speaker 3>This AI party, it's ten pm going to four am.

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<v Speaker 3>I mean, the point is the infrastructure was that's gonna

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<v Speaker 3>be a historic quarter when you look at orcle and

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<v Speaker 3>it shows the type of cap backs we're seeing and

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<v Speaker 3>the use cases are exploding. We've talked about so much here.

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<v Speaker 2>In the Change My Life. I mean, as simple as

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<v Speaker 2>that look.

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<v Speaker 3>And the reality is anyone that thinks hype not real, right,

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<v Speaker 3>that oracle number is a validation. That's a drop the

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<v Speaker 3>mic from Saffra and Ellison. That shows to me, Okay,

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<v Speaker 3>what's gonna happen? The rest attack and it's abrahma.

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<v Speaker 1>Did we have a drop the moment with mister Cook yesterday?

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<v Speaker 1>I tuned in for twelve seconds. It's so manipulated. I

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<v Speaker 1>can't watch it. You and had Ludlow saw it. Were

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<v Speaker 1>your thumbs up, like Gene Munster.

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<v Speaker 3>Look, it's a thumbs up relative to I think expectations.

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<v Speaker 3>Our view here is that the elf in the room

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<v Speaker 3>continues to be as we talk about AI. But I

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<v Speaker 3>do believe with the DOJ Google situation, now you know

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<v Speaker 3>in the rearview mirror they will down. Then that's going

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<v Speaker 3>to be ultimately their AI partnership. But in terms of

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<v Speaker 3>the actual iPhone, look, three hundred million plus have an

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<v Speaker 3>upgrade four plus years. The point is this is going

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<v Speaker 3>to be includes John Tucker, including Talker. So if you

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<v Speaker 3>think about on a scale one to ten from an

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<v Speaker 3>upgrade cycle supercycle being a ten, it's probably gonna be

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<v Speaker 3>about an eight point five. But what I tell you

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<v Speaker 3>is the street right now numbers are conservative New York

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<v Speaker 3>City cab driver or uber is still barish on Apple,

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<v Speaker 3>and I think that to me sets it up well

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<v Speaker 3>as well as you add AI and they actually make

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<v Speaker 3>a big move there. You tell about another you know,

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<v Speaker 3>one hundred dollars per share to the stock.

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<v Speaker 4>What does Apple have to do when it comes to AI?

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<v Speaker 4>So I look at Meta for instance, and they pay

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<v Speaker 4>a lot of money. They're hiring a lot of big

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<v Speaker 4>name people. And I think if you look at the

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<v Speaker 4>history of Apple that had a bad luck of bringing

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<v Speaker 4>in outside talent, particularly the executive level, to mix things

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<v Speaker 4>up and to change things around. Are they able to

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<v Speaker 4>do that? What do they have to do to kind

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<v Speaker 4>of re establish themselves here at the vanguard of AI.

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<v Speaker 3>There's a better chance of me playing in Beth paid

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<v Speaker 3>Ryder Cup in September. Then then then AI innovation happening

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<v Speaker 3>from Apple, and I think that's the issue that they

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<v Speaker 3>got to go outside.

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<v Speaker 4>It has to be good to make that work.

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<v Speaker 1>Dan I's with Red Bush with us this morning, David Gerrin,

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<v Speaker 1>Tim Can Good Morning across the Nation and the way

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<v Speaker 1>you listen to us on radio Good Morning ninety to

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<v Speaker 1>nine FM in Boston, on YouTube and your home at

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<v Speaker 1>your office floored by the sign up Thank you so much,

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<v Speaker 1>Bloomberg Podcast, go out to YouTube and subscribe it Bloomberg Podcasts.

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<v Speaker 1>Thank you for your attention to our new dan Ives

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<v Speaker 1>like digital. Maybe I should start wearing bright pink.

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<v Speaker 2>What do you think, David, I could see that. Why

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<v Speaker 2>don't you continue with.

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<v Speaker 3>Mister, I've talked about the pink bowtie for I know what.

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<v Speaker 4>The hoodie beneath the jacket would be a good look

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<v Speaker 4>for you.

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<v Speaker 3>I think I thought dan Ives clothing we could add

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<v Speaker 3>potentially a bow tie and it would be called a.

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<v Speaker 2>Everything is like two X, you know, it's like for

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<v Speaker 2>little people. What's the name of the company.

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<v Speaker 3>It's snow milk.

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<v Speaker 2>My carse snow milk. They got to make like adult

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<v Speaker 2>sizes like we have six.

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<v Speaker 3>I think we go down the route with a keen

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<v Speaker 3>bow tie. I have been I'm actually average a very.

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<v Speaker 2>Good David jump in.

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<v Speaker 4>Can I go back to Oracle? I diverted over to

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<v Speaker 4>to appled love to go back to Oracle? What should

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<v Speaker 4>we make How quickly they were able to make this,

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<v Speaker 4>this pivot, What does it say about sort of the

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<v Speaker 4>future direction of Oracle moving into cloud computing as rapidly

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<v Speaker 4>as it did, as successfully as it did. Certainly, when

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<v Speaker 4>you look at the numbers.

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<v Speaker 3>Guess who's watching quot so you see what they did.

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<v Speaker 3>It's Bennioff, it's Adobee, it's software where right now they're

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<v Speaker 3>not the cool kids table. I mean what Oracle has

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<v Speaker 3>been able to do because of the stack, right it's

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<v Speaker 3>it's been transformational. And I think that more is where

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<v Speaker 3>we're seeing. Everyone wants that. That two to three trillion

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<v Speaker 3>of cat backs, everyone wants it.

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<v Speaker 1>Doug Cass emails in Okay, he's beside himself about the

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<v Speaker 1>Yankees defense.

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<v Speaker 2>They're averaging like three years a game.

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<v Speaker 1>I mean, it's sad. Aaron Judge should be at first base,

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<v Speaker 1>Dan ives. Doug Cass has a question for you, the

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<v Speaker 1>backlog dynamic versus the accounting on the statements.

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<v Speaker 2>Is this an accounting issue to.

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<v Speaker 1>Come not only for Oracle but for other mag seven

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<v Speaker 1>and that there's so much future business that needs to

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<v Speaker 1>adjust in the accounting statement.

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<v Speaker 2>Is that a risk?

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<v Speaker 3>And I hope Doug's doing well. It's a good question.

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<v Speaker 3>I think there's definitely some normalization that's going to have

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<v Speaker 3>to happen there over the coming quarters. So you got

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<v Speaker 3>to normalize it, you know, from a backlock perspective in

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<v Speaker 3>terms of arr look, I think the reality is is

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<v Speaker 3>that over the coming quarters. That's where like look for Oracle,

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<v Speaker 3>if you got if you're the amount of stock that

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<v Speaker 3>could go to three fifty four hundred. You got to

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<v Speaker 3>continue to show this because you as the normalization starts

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<v Speaker 3>to happen, the comps ultimately start take place. You need

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<v Speaker 3>to continue to see that growth.

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<v Speaker 2>You mentioned Google and Gemini. What are they waiting for?

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<v Speaker 3>They were waiting they were waiting for DOJ mean that?

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<v Speaker 3>And now the candlelight dinner could happen between the soon

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<v Speaker 3>Dar and Cook And I believe that is Look because

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<v Speaker 3>I truly and we've talked about if did doo J

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<v Speaker 3>went negative toward an Apple Google, then they have no

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<v Speaker 3>choice called proplexity on the red phone and they have

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<v Speaker 3>to do that deal. But now I think they double

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<v Speaker 3>down the job they're waiting for.

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<v Speaker 2>Is it literally like just Egos, they have to wait

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<v Speaker 2>a little bit of time.

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<v Speaker 3>I think you wait a little time. Look, and we

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<v Speaker 3>also know like in Cooper Tino, there is a part

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<v Speaker 3>of it that runs like a motor vehicle in New Jersey,

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<v Speaker 3>and that's been some of the issue in terms of

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<v Speaker 3>some of the bureaucracy that they're trying to get rid

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<v Speaker 3>of in terms of the red tape.

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<v Speaker 4>Going back to the Oracle numbers, So say Sundor is

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<v Speaker 4>tuning in to watch Romain and number yesterday, care or

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<v Speaker 4>Andy stealing it up in that Seattle? What do they

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<v Speaker 4>make of those Oracle numbers? How much are they worried

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<v Speaker 4>about the progress of the Oracles made here?

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<v Speaker 3>And how did they I think they actually love seeing

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<v Speaker 3>those numbers because they view it. And that's why I

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<v Speaker 3>like what you see with Google's jesz B. It's it's

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<v Speaker 3>a barometer that shows where that's coming. That's why Nadella,

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<v Speaker 3>he's sitting there with the Mimosa right now watching those numbers.

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<v Speaker 1>I mean, do you want to mention Oracles put their

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<v Speaker 1>support by in Bloomberg surveillance. We thank Oracle for their

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<v Speaker 1>support each and every day. What's your single best buy?

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<v Speaker 3>I mean, to me, single best buy here continues to

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<v Speaker 3>be Microsoft just because of my view of because of

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<v Speaker 3>where the hyperscalers are. It's in their backyard. Stock actually

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<v Speaker 3>sold off a little postcord and I think that's one

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<v Speaker 3>they will ultimately join in video what's eventually.

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<v Speaker 2>Gonna be there? Twent this year and you say way more.

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<v Speaker 3>Just to we've talked about it's just to begin. We

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<v Speaker 3>are in the second inning of the Ai Revolution, going

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<v Speaker 3>ninth and we've talked about the party start at nine pm,

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<v Speaker 3>is now ten pm goes to four am on the

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<v Speaker 3>dance for is Nedella Jensen, Pound Teer Carp and others.

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<v Speaker 1>People think guy says a romantic life. Let's make it clear.

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<v Speaker 1>You just got off the romantic red eye.

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<v Speaker 3>I just got off the romainer Carol and Tim. Right, Yeah,

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<v Speaker 3>I was there rocking today and actually I went. I

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<v Speaker 3>went from Australia to Huntington Beach to now here with

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<v Speaker 3>you guys.

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<v Speaker 4>Appreciate that lay flat beds as you were talking about yesterday.

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<v Speaker 2>But he's a little guy. It's like it's a little guy. No, No,

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<v Speaker 2>the lafe flat bed works. There's no light flat bed

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<v Speaker 2>for me. Yeah.

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<v Speaker 3>But the problem is that's why you're the one that

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<v Speaker 3>does like the special cabin in emerates so the player,

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<v Speaker 3>but the keen cabin and the whole king shower in this.

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<v Speaker 2>Disclosure law premiere in France. But it's great.

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<v Speaker 3>It's like a huge cabin, of course, but you set

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<v Speaker 3>a higher standard.

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<v Speaker 2>It does. I don't know, I don't know. Some tennis

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<v Speaker 2>player was sitting next to me.

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<v Speaker 3>It's actually it's actually Keyn's where we all pay rent.

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<v Speaker 1>Dan, thank you for explaining whatever your new business transaction is.

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<v Speaker 1>I still don't get.

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<v Speaker 3>ORBS coming to you soon, and I'll bring it next time. Okay,

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<v Speaker 3>that's really small. We'll bring the orban next time. Will

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<v Speaker 3>get skinned?

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<v Speaker 4>John skeptical keep those eyes closed.

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<v Speaker 3>Uh, we're bringing in for him too, Dan, thank you

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<v Speaker 3>so much.

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<v Speaker 2>I gotta sell the show. Dan Hight's Wedbush Securities