WEBVTT - Dan Ives Previews Nvidia Earnings

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news joining us.

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<v Speaker 2>Now, Sir Dana Ives joins us here with Yorkville, and

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<v Speaker 2>I said, let's start with this because Tom Sikund, the

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<v Speaker 2>founder of Bloomberg, cornered me one day in the food court,

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<v Speaker 2>you know, over the cheeses, and he said, hey, stupid,

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<v Speaker 2>get perplexity. It changed my life, Dan Ives, what is perplexity?

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<v Speaker 1>Yeah, Look, when you think about from a model perspective,

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<v Speaker 1>I think perplexity is one of the best out there,

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<v Speaker 1>especially for someone like you know, when it comes down

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<v Speaker 1>to like heavy analytics, a lot of sort of numbers,

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<v Speaker 1>I think perplexity is probably one of the best out there.

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<v Speaker 1>And that's why when you look what Nvidia is potentially doing,

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<v Speaker 1>it would make actually a lot of sense relative to

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<v Speaker 1>where we should this AI revolutionary.

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<v Speaker 2>In what way would perplexity help in video?

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<v Speaker 1>Well, for them, look, they're essentially taking steaks across the

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<v Speaker 1>whole ecosystem, whether it's infrastructure on the model side, and

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<v Speaker 1>it's a way given anthropic and open AI that have

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<v Speaker 1>really had to dooperly to some extent in terms of AI,

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<v Speaker 1>this would enable them to diversify because in video and

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<v Speaker 1>gens has talked about it, even from an open source

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<v Speaker 1>or other models. The cheaper the models get, the more

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<v Speaker 1>pervasive that gets, it's better for AI spend because the

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<v Speaker 1>cheaper that gets, it's bet you're gonna have more and

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<v Speaker 1>more demand.

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<v Speaker 3>So we are going to hear from Nvidia after the

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<v Speaker 3>closed Wednesday. What should the market be listening for.

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<v Speaker 1>No one has a better perch around demand than the

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<v Speaker 1>godfather of AI, Jensen a video. I think it's really

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<v Speaker 1>about when you look, they'll talk. They'll probably talk about

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<v Speaker 1>that price increase that you report over the weekend from

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<v Speaker 1>a memory perspective driven, but I think it's really about

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<v Speaker 1>what they were seeing from customers in terms of acceleration.

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<v Speaker 1>We think overall AI demand, we've seen acceleration twenty percent

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<v Speaker 1>the last few months, and there's one chip in the

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<v Speaker 1>world all fuel in the AI revolution. So I think

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<v Speaker 1>that this is a huge piece of the puzzle when

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<v Speaker 1>you're thinking about demand, especially after what we saw from

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<v Speaker 1>an earning season that was extremely strong, especially from the hyperscours.

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<v Speaker 3>You write down that the biggest tug of war in

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<v Speaker 3>the tech space is around AI sovereignty. What do you

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<v Speaker 3>mean by that?

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<v Speaker 1>What that means is and it's becoming more and more

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<v Speaker 1>of a of a debate. Really a hot button issue

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<v Speaker 1>is that the data. I'm not going to give that data.

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<v Speaker 1>If I'm a company to the model player, to an

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<v Speaker 1>open AI, to an anthropic I can maybe use them,

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<v Speaker 1>but there's going to be a sort of cording off

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<v Speaker 1>where I won control as a company over that data.

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<v Speaker 1>And that's something where in Nvidia pollunteer there's a big focus,

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<v Speaker 1>especially from a cartonneer, on sovereign AI data because the

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<v Speaker 1>view is that eventually, if you have my data, then

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<v Speaker 1>ultimately competitive wise, could I marginalize your model? So I

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<v Speaker 1>think it speaks to what's starting to happen is as

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<v Speaker 1>you're hearing more maturity now in the AI space, where

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<v Speaker 1>enterprises are focused more on who has access to their data,

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<v Speaker 1>entould they have more control?

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<v Speaker 2>Danna as with us folks, for a quick tech brief

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<v Speaker 2>here we'll talk Canada. Here in a moment, Good morning

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<v Speaker 2>across America on Serious XM Channel one, twenty morning across

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<v Speaker 2>all of Canada is well, the house is fired up

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<v Speaker 2>about Apple announcements after I believe Labor Day. What will

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<v Speaker 2>we see from Apple and what's it mean for their

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<v Speaker 2>free cash flow and stock price?

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<v Speaker 1>I think for Apple and I think investors now are

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<v Speaker 1>starting more and more to recon when we've told about

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<v Speaker 1>lot on the show, is that the consumer AI revolution

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<v Speaker 1>that highway. They're a toll collector on that, and that's

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<v Speaker 1>going to continue to go through them. I think it's

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<v Speaker 1>really it's about not just the AI strategy, but now

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<v Speaker 1>as you get to the latest iPhone that they release,

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<v Speaker 1>what that's going to do to ultimate dem because it

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<v Speaker 1>LEAs out the foundation for everything we're talking about in

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<v Speaker 1>AI is about enterprise comes down to consumer. What are

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<v Speaker 1>device is going to look like? Where is most of

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<v Speaker 1>that going to go through Apple? As when you're think

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<v Speaker 1>about one point five billion iPhones. So that's why there's

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<v Speaker 1>such a focus to see as they come out with

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<v Speaker 1>their latest iPhone, not necessarily that there's going to be

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<v Speaker 1>so many changes from a hardware perspective, but tom it's

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<v Speaker 1>really also related more of the AI strategy that they

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<v Speaker 1>finally actually have one now with Gemini.

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<v Speaker 3>So software earlier in the year, we saw a soft

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<v Speaker 3>and software that I don't think I've seen I can't remember.

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<v Speaker 3>I mean, it's just software, you just own it. Because

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<v Speaker 3>of the recurring revenue, the high margins a free cash flow.

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<v Speaker 3>What is the software call on the street these days?

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<v Speaker 3>Are we trying to pick winners and losers? I mean

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<v Speaker 3>Microsoft was down twenty five percent year data one point

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<v Speaker 3>this year, but now it's rallied back to flat. What's

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<v Speaker 3>the software call?

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<v Speaker 1>Well, Paul I, first of all, I always thought that

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<v Speaker 1>that was a fictional thesis, that anthropic was going to

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<v Speaker 1>eat software companies lunch, that these models were essentially, you know,

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<v Speaker 1>almost going to be destructed. I think what's starting to

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<v Speaker 1>happen now more and more is the use cases get

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<v Speaker 1>deputed software is playing a.

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<v Speaker 3>Big or bigger role.

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<v Speaker 1>That's what's happening with Microsoft. You've seen them Palenteer, and

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<v Speaker 1>you've seen What's Service Now and a bunch of others.

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<v Speaker 1>I think it's idiosyncratic to the point that there will

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<v Speaker 1>be software companies disintermediated. And you look at companies maybe

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<v Speaker 1>the view back against you know, when you look at

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<v Speaker 1>names like Adobe is a good example. That's a good

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<v Speaker 1>example of one where it's okay, Adobe into it. How

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<v Speaker 1>they how is their business not going to adjust? But

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<v Speaker 1>it's a much different narrative today than it was six

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<v Speaker 1>months ago.

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<v Speaker 2>Nobody cares alexis here, wants to know, who are you

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<v Speaker 2>wearing today?

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<v Speaker 1>I love this?

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<v Speaker 3>What's what's on your shirt?

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<v Speaker 2>Are these penguins?

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<v Speaker 1>So these are penguin, yes, penguins. These are the parrots.

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<v Speaker 1>And then here this is a duck hat.

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<v Speaker 2>You're a very bird today. Who in God's name shirt

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<v Speaker 2>are you wearing? Somebody emails in they go, is Dan

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<v Speaker 2>wearing Pucci?

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<v Speaker 1>No? This is actually it's a company out of Balie.

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<v Speaker 1>Kenny Matthews, Ken Kenny Flowers. Kenny, I can see it

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<v Speaker 1>on your show, Kenny Flowers. They're out of Bali.

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<v Speaker 2>People worldwide want to know. Dan ives, thank you so

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<v Speaker 2>much quickly appreciate it with all of his UH work

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<v Speaker 2>as well. Here and looking for that Apple launch here

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<v Speaker 2>in a bit Yorkville and Eves this morning