Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
Speaker 1: from the heart of Silicon Valley with ed La though
Speaker 1: in Van Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: Open Ai unveils its first custom AI chip called Kalapino,
Speaker 3: developed in partnership with Broadcom, plus s k Highnex's plane
Speaker 3: to raise twenty nine billion dollars in a landmark US listing,
Speaker 3: racing to increased capacity to meet memory chip demand, and
Speaker 3: Cerebrus reports quarterly earnings for the first time since going public.
Speaker 3: CEO Andrew Feldman joins us later this hour. Let's get
Speaker 3: to our top story custom Silicon open ai is tackling
Speaker 3: one of AI's biggest challenges, the supply and costs of computing.
Speaker 3: The company unveiled Kalapino Intelligence process. So that's the wafer,
Speaker 3: a custom AI chip developed with broad coomp which the
Speaker 3: companies say carries a fifty percent lower cost versus a
Speaker 3: typical AIGPU. The focus faster, cheaper AI inference shares a
Speaker 3: broad Open pretty higher round two percent. We're off session highs,
Speaker 3: but still up a percentage point or so. In a
Speaker 3: market where tech at the index level kind of flat.
Speaker 3: This is outperformance. Blinbo Tech editor Seth Figgerman is here
Speaker 3: with the details. This is the big picture, right, open
Speaker 3: ai is compute constrained, heavily reliant on Nvidia.
Speaker 2: They want to diversify. What do we need to know?
Speaker 4: Yeah, that's very I think, you know, Opening I wants
Speaker 4: to own more of the infrastructure stack, have more flexibility here,
Speaker 4: and then I think importantly, use the expertise that it's
Speaker 4: developed into what makes air models run better and more
Speaker 4: efficiently and apply that to the hardware and the same
Speaker 4: way that I think we're seeing Google do with its TPUs,
Speaker 4: and the hope would be that over time they can
Speaker 4: build a chip that's more cost efficient and also better
Speaker 4: performing and eventually cuts down its own costs.
Speaker 3: Bloomberg News spoke to both Hocktan the CEO of Broadcom,
Speaker 3: and open ai is hardware chief. I guess you know,
Speaker 3: from raw Comm's perspective, there was quite a lot of
Speaker 3: fighting talk. Right, they see a lot of demand for
Speaker 3: a six or custom silicon. But what was interesting to
Speaker 3: me is hock Tans saying to us they see a
Speaker 3: world where every frontier lab goes to have a custom chip.
Speaker 2: Why yeah, I mean.
Speaker 4: It gets back to what we said about Openny a
Speaker 4: minie ago, I think giving them the versatility to kind
Speaker 4: of control their infrastructure stack and build customer hardware that
Speaker 4: meets their needs. And now I think Hocktan's com and
Speaker 4: he's saying there's not that many of these frontier model developers.
Speaker 4: So I think agree between the lines we're kind of
Speaker 4: talking about. Is anthropic, I'm going to move in this
Speaker 4: direction and that's certainly possibility. And to your other point,
Speaker 4: I think Hocktan sounds quite bullish generally on the prospects
Speaker 4: for this chip and chips like it going forward. He
Speaker 4: sees no limit to the demand for this kind of
Speaker 4: infrastructure and is predicting that the demand and roll out
Speaker 4: for this chip next year will exceed his prior estimates
Speaker 4: for one point three gigawads to supply on.
Speaker 3: The open AI side, it's the latest example of them
Speaker 3: being prepared to spend. Did we get any sense from
Speaker 3: our conversation with the company about how this custom chip
Speaker 3: will rank in their overall plan for compute, whether it's leasing,
Speaker 3: data center, buying and video chips, et cetera.
Speaker 4: Yeah, you know, they remain pretty tight. Lop DOWNE what
Speaker 4: the financing for this will look like. We have previously
Speaker 4: reported that Opening I planned to spend tens of billions
Speaker 4: of dollars on these chips, with Broadcom part of its
Speaker 4: hundreds of billions of dollars in infrastructure commitments. Seeing Broadcom
Speaker 4: has previously said that they were standing up a chip
Speaker 4: financing vehicle that could help Opening I's efforts, but it's
Speaker 4: unclear that's the primary financing mechanism for what Opening I
Speaker 4: will do here.
Speaker 3: Bloomberg's AI editor Seth Figemann, thank you very much. Indeed,
Speaker 3: s k Heinez plans to raise twenty nine point four
Speaker 3: billion dollars in its US market debut, a deal large
Speaker 3: enough to rank among the top five share sales of
Speaker 3: all time. The listing comes at a time when markets
Speaker 3: are hungry for memory chips and semicindut to companies are
Speaker 3: rushing for capital to expand capacity meet that demand. The
Speaker 3: BOS Peter Elstrom, who leads our coverage of Asia tech,
Speaker 3: joins us that's part of it, right, Expand memory fab
Speaker 3: capacity raise a lot of money. There's also this idea
Speaker 3: of like valuation and prestige of an ADR situation where
Speaker 3: you get exposure to American investors.
Speaker 5: Yeah, that's right.
Speaker 6: Sk Heinez is a company we don't talk about that
Speaker 6: often on the show. Obviously a leading memory chip company,
Speaker 6: but they often play second fiddle to Samsung, even in
Speaker 6: South Korea. But what we've seen from them over the
Speaker 6: past three years is really they've come from quite far
Speaker 6: behind to essentially the same market cap size as Samsung
Speaker 6: at this point. And that's largely because they've been so
Speaker 6: successful in these memory chips for AI applications that HBM
Speaker 6: chips that we've talked about before. They especially HBM chips
Speaker 6: are DRAM chips stacked on top of each other, and
Speaker 6: their technology for doing that stacking has been very good.
Speaker 2: They got Nvidia's blessing.
Speaker 6: They've been able to jump ahead of Samsung in that
Speaker 6: market quite effectively.
Speaker 5: Samsung has struggled a little bit.
Speaker 6: So now what we're seeing with this twenty nine billion
Speaker 6: dollar fundraising is really them announcing to the US, hey,
Speaker 6: that they're ready to raise this kind of capital. They
Speaker 6: want more exposure in the US and yeah, they'd like
Speaker 6: more of that pe multiple that you see with the
Speaker 6: US tech companies too. They've traded at a discount to that.
Speaker 6: If they get some of that ADR exposure, that may
Speaker 6: give them a little more opportunity to increase that valuation, and.
Speaker 3: Just on the mechanics, Peter, so it will be ADRs
Speaker 3: I believe, on the Nasdaq. So we have a timeline
Speaker 3: for this. And how much of a surprise was it
Speaker 3: that sk plowed ahead with this.
Speaker 6: Well, it's certainly they've talked about wanting to raise money
Speaker 6: in the US for a while, so I think in
Speaker 6: terms of direction, this has been expected. I think in
Speaker 6: terms of magnitude, it's a bit of a surprise though
Speaker 6: it's a lot of money. As you mentioned, it could
Speaker 6: be one of the top five offerings of its kind. Ever,
Speaker 6: they plan to start trading these ADRs on July tenth.
Speaker 6: They've talked about that. They still have a couple of
Speaker 6: steps to go before they formally do that, but that's
Speaker 6: the plan. At this point, they'd be able to raise
Speaker 6: that money and then, as you say, they really want
Speaker 6: to spend this money and trying to solve this choke
Speaker 6: point that they've had in the AI industry where memory
Speaker 6: chips are in short supply. Prices have been soaring, which
Speaker 6: is driving profits for a bunch of companies, including Micron,
Speaker 6: as we'll see after the bell today. But they want
Speaker 6: to be able to build additional capacity in South Korea.
Speaker 6: They're also expanding in the United States, where they have
Speaker 6: some facilities too.
Speaker 3: Bloomberg Tech Executive Editor details from Thank you very Much.
Speaker 3: The AI hardware story and memory in particular are set
Speaker 3: to dominate market conversation today. We've got the perfect person
Speaker 3: to speak about it. Selin Wu is a portfolio manager
Speaker 3: on Lazard Asset Management's Global Robotics and Automation team. She
Speaker 3: manages the firms tech in Ai Focus ETF, called TECHI
Speaker 3: or TEKY and actively managed ETF where sk Heinex and
Speaker 3: its career and shares are the top holding.
Speaker 2: Welcome to the program, Thanks for having me.
Speaker 3: The situation with the memory makers is fascinating.
Speaker 2: Demand is exceeding supply.
Speaker 3: Historically, that's an enviable position to be in, and the
Speaker 3: shares of those companies probably reflect that. How do you
Speaker 3: see investor appetite to be exposed to the memory trade?
Speaker 7: Yeah, I mean the shares have been fantastic, But even
Speaker 7: after that, I think memory stocks still love for a
Speaker 7: very compelling investment case. And here's why. I don't think
Speaker 7: it's necessarily just driven by temporary supply bottlenecks. Instead, I
Speaker 7: think there's something structured going on in the cycle. For example,
Speaker 7: memory's strate peagic value is rising and changing to a
Speaker 7: primary driver for performance. Think about how cloudsher providers, one
Speaker 7: of their largest clients. They're still adding more memory despite
Speaker 7: the price of inflation because this is still the most
Speaker 7: cost efficient way to maximize their system level performance. And
Speaker 7: when of the when token demand, excuse me, the token
Speaker 7: demand is rising on the back of the inference as
Speaker 7: well as agent the AI. I think the bottlenecks in
Speaker 7: terms of the capacity and bendwidth are becoming even more challenging,
Speaker 7: and this is a place where memory can come in
Speaker 7: and help navigate those challenges.
Speaker 3: Does it matter that investors will have the opportunity to
Speaker 3: have US listed shares ADRs of sk How does that
Speaker 3: kind of change the mechanics of the market for you
Speaker 3: as well?
Speaker 7: Yeah, I mean a clearly the more exposure to more
Speaker 7: diverse type of shareholder base is clearly a very positive
Speaker 7: indication for any company in the world, especially when your fundamentals,
Speaker 7: when your fundamentals are improving. So yeah, super exciting us
Speaker 7: and looking forward to the development.
Speaker 3: A couple of months ago, sitting down with Jensen Wong
Speaker 3: and I said to him, do we even need the
Speaker 3: textbooks anymore? That would tell us historically memory is cyclical,
Speaker 3: it is boom and bust. All of the evidence suggests
Speaker 3: that in the context of HBM going into data center,
Speaker 3: it just doesn't behave the same way.
Speaker 2: What is your thesis on that?
Speaker 7: I mean, I agree with that. I mean, like I said,
Speaker 7: there's something structural going on. Yes, there is certain type
Speaker 7: of cyclicality going on indoor market. But at the end
Speaker 7: of at the end of the day, what you need
Speaker 7: to remembered is structure side of booth, demand and supply,
Speaker 7: and think about the supply side.
Speaker 2: Despite the fact that all the three.
Speaker 7: Major companies are scrambling to add new supply, there are
Speaker 7: three factors that you have to remember. Number one, manufacturing intensity.
Speaker 7: Manufacturing complexity is rising. Number two, capital intensity to open
Speaker 7: a new fab is getting more expensive, and number three
Speaker 7: the difficulty of technology and migration all together pointing out
Speaker 7: that overall supply demand balance will stay in favor of
Speaker 7: the memory stocks. I mean, I think that's really great.
Speaker 3: I'd love to talk about your actively managed ETF for
Speaker 3: a moment. T e k y Techy Techy I launched
Speaker 3: last April, write sixty million in assets currently. What I
Speaker 3: find so interesting about the composition of it is something
Speaker 3: we've talked about quite recently on the show. There are
Speaker 3: the capital expenditure deployers and there are the capital expenditure
Speaker 3: recipients in the same basket when you look at the
Speaker 3: top holdings. Is that a conscious, active decision on composition.
Speaker 7: I think it's the composition from our bottom up stock
Speaker 7: selection and portfolio construction. But like you said, that's exactly
Speaker 7: where majority of the capital is invested in currently. On
Speaker 7: one hand, there are big spenders, big kip expenders that
Speaker 7: are trying to build new competitive positioning in this AI
Speaker 7: homage pace. But on the other hand, we find a
Speaker 7: lot of exciting opportunities on the companies that we see
Speaker 7: these capitals AI hardware supply chain, for example. I think
Speaker 7: that's why there's more to come. In fact, we just
Speaker 7: recently came from Asia where we sat down with a
Speaker 7: number of different companies into supply chain. Everyone is telling
Speaker 7: us how they are seeing an extended visibility from customers,
Speaker 7: how there are more conversations about ltas. Everything collectively is
Speaker 7: highlighting that demand continues to substantially exceed the supply and
Speaker 7: the AI demand outlook remains pretty robust as well.
Speaker 3: For in the ETF context, it's a very competitive market.
Speaker 3: How closely are you thinking about flows? And again, I
Speaker 3: think people give you a lot of credit Sealine for
Speaker 3: identifying sk as being just critical to the broader infrastructure
Speaker 3: build out right now, But you know what happens next
Speaker 3: to your mind? How do you see the world changing
Speaker 3: in the next I guess six months to twelve months.
Speaker 7: I mean even more than that. I mean that's why
Speaker 7: we focus on AI tech stack, and at the top
Speaker 7: of the step we have application layer and this is,
Speaker 7: for example, where we are going to expect really large
Speaker 7: opportunities from physical AI. We think physical AI is going
Speaker 7: to be multi trillion dollars long term opportunity. Essentially, AI
Speaker 7: is in because it's a primary driver for productivity gains,
Speaker 7: and historically productivity growths tend to translate to massive economic expansions.
Speaker 7: I think the same thing is going to happen for AI.
Speaker 7: All the innovation we're seeing today is eventually going to
Speaker 7: open up very significant new end markets in physical AI,
Speaker 7: such as fully autonomous transformation transportations as well as a
Speaker 7: humanoid robot. That's why we're really excited about physical AI
Speaker 7: and in the meantime, that being said, it will still
Speaker 7: take a couple of years for this to turn into
Speaker 7: actual corporate earnings. So here's what we focus on instead.
Speaker 7: Companies with vertically interiorted the manufacturing excellence that can speak
Speaker 7: to the market with scale advantage for example, or open
Speaker 7: source platform that can expedite the excelevation adoption and everything.
Speaker 7: And lastly, global technology companies that can massively benefit from
Speaker 7: the mass adoption of the application in it sulf something
Speaker 7: to watch is something we're still pretty excited about.
Speaker 3: Seline Wu from Lazard Asseid Management, first time on Bloomberg Tech.
Speaker 3: Really grateful to have you here, Thank you very much. Indeed,
Speaker 3: now coming up, Meta and Microsoft are leading the spending
Speaker 3: spree on future data center leases, adding tens of billions
Speaker 3: of dollars just last quarter alone. We'll get into the
Speaker 3: details next. This is Bloomberg Tech. Okay, today's big number,
Speaker 3: eight hundred and fifty billion dollars. That's how much the
Speaker 3: world's largest cloud computing companies have committed in future data
Speaker 3: center leases. Leading the charge in the AI spending spree,
Speaker 3: Meta and Microsoft both committing tens of billions more just
Speaker 3: last quarter. Bloombo's Brodie Ford has an astonishing story and
Speaker 3: a hell of a.
Speaker 2: Chart to show us.
Speaker 3: What I find interesting about this is that these are
Speaker 3: future leases, essentially leases planned or announced separate from what
Speaker 3: is already in operation, what they are already contractually committed to.
Speaker 8: It's a really good point, right, So we're talking about
Speaker 8: eight hundred and fifty billion on data centers, which in
Speaker 8: many cases aren't even built yet. It's they are working
Speaker 8: through their current projects they have, and these are the
Speaker 8: ones that they've committed to leasing once they're operational. And
Speaker 8: so a lot of people wonder about what's the long
Speaker 8: term spending trajectory on data centers? How long does this last? Well,
Speaker 8: there's eight hundred and fifty billion dollars of leases that
Speaker 8: are going to be starting in the coming years.
Speaker 3: So when I was reading the story, I was trying
Speaker 3: to understand the future costs. It's an amazing chart, by
Speaker 3: the way, we're just showing on the screen right now,
Speaker 3: like the level of capital and it's the commitment grows.
Speaker 3: But where did their current financial healths and balance sheet
Speaker 3: stand relative to those future commitments.
Speaker 2: Is there a concern about that?
Speaker 8: I think there's a lot of concern that seem to
Speaker 8: always ebb and flow around the ROI of all this spending, right.
Speaker 8: I mean, it feels like every quarter or two the
Speaker 8: general sentiment flips about whether the market's worried or not,
Speaker 8: but every hyperscaler seems to agree that they must spend
Speaker 8: an incredible amount to catch up an AI to have
Speaker 8: enough data center capacity. I think about Microsoft, who through
Speaker 8: a lot of twenty twenty five said we're nervous, we're
Speaker 8: actually going to put on ice a lot of these leases,
Speaker 8: and they've come to regret it pretty deeply. And I
Speaker 8: think a lot of the biggest tech companies, as we
Speaker 8: can see in this chart, are hoping to avoid that
Speaker 8: kind of scenario.
Speaker 3: Microsoft added forty one billion dollars in commitments to a
Speaker 3: total of almost one hundred and ninety seven billion dollars.
Speaker 3: Compare and can trust really quick Oracle.
Speaker 8: Oracle's very interesting because they signed a ton of leases,
Speaker 8: largely for open AI, and they've been flat for the
Speaker 8: last two quarters, which says to us that they're digesting
Speaker 8: a lot of capacity, contrasted with somebody like Meta, who
Speaker 8: is just signing as much much as they seem to
Speaker 8: be able.
Speaker 3: To Bloombanks, Brady Ford, thank you very much. Just get
Speaker 3: out to New York where bloom Bek Jihara and and
Speaker 3: is standing by Hi.
Speaker 9: Yahara, Hi ed It's time now for talking tech. First
Speaker 9: up Softbanks. Masayoshi Sun says he has no plans to
Speaker 9: retire anytime soon as he looks to capitalize on the
Speaker 9: AI boom. Speaking at an annual shareholder meeting, the sixty
Speaker 9: eight year old visionary fired back at skeptics, saying, quote,
Speaker 9: the AI revolution has only just begun. Calling it a
Speaker 9: bubble is an insult plus and the latest showdown between
Speaker 9: Chinese big tech and national security. Ali Baba has sued
Speaker 9: the US Defense Department demanding removal from its blacklists. The
Speaker 9: e commerce giant called a designation arbitrary and unjustified, following
Speaker 9: a US crackdown earlier this month that accused several of
Speaker 9: China's top companies of aiding Beijing's military, and TikTok parent
Speaker 9: by Dance is in early talks to secure a record
Speaker 9: twenty billion dollars global loan. Well the exact use of
Speaker 9: the proceeds remains unclear. The massive borrowing push comes as
Speaker 9: the company wis boosting data center and AI capital.
Speaker 2: Spending ed Thank you very much, you Hira.
Speaker 3: Now coming up on the program defense startup, Hadrian discusses
Speaker 3: new funding at a seven point five billion dollar valuation
Speaker 3: that would be four times its past or latest value.
Speaker 2: We're going to discuss that next. This is Bloomberg Tech.
Speaker 3: Can AI replace human effort in the realm of scientific discovery?
Speaker 2: In the latest episode of The Circuit.
Speaker 3: Bloomberg's Emily Chang spoke to Jennifer Dowdner, the inventor of
Speaker 3: the groundbreaking crispher gene editing technology, about the future of biology.
Speaker 2: Listened to this.
Speaker 10: Biology is complex. We're not going to be able to
Speaker 10: simulate our way to an understanding of the human. We're
Speaker 10: not going to be able to avoid the need for
Speaker 10: certain types of testing. I do think there are opportunities
Speaker 10: to increase the efficiency in which we make discoveries about
Speaker 10: the way our bodies work and the way they interact
Speaker 10: with drugs that will be effective, and I think AI
Speaker 10: will be helpful there. But it's going to come down
Speaker 10: to training models on the right kind of data, and
Speaker 10: a big need for better and more data for training
Speaker 10: models if we want to achieve that.
Speaker 9: An Open AI executive recently suggested that if a discovery
Speaker 9: happens on chat GPT, let's say a drug discovery that
Speaker 9: open AI should get a cut of sales.
Speaker 11: What do you think of that?
Speaker 10: Good luck expand how are chatbots going to change drug discovery?
Speaker 10: I'm not sure the answer to that yet.
Speaker 5: I don't know.
Speaker 10: Lots of people are, of course, very very hopeful, so
Speaker 10: I'm very helpeful about it. But I think that innovation
Speaker 10: is still really in the domain of human beings right now.
Speaker 10: I'm not seeing chatbots in our own experience innovating. They
Speaker 10: can be helpful with summer rising data, that can be
Speaker 10: helpful in writing reports and things of that nature, but
Speaker 10: I'm not seeing chatbots coming up with a brand new
Speaker 10: idea for something that nobody else ever thought of.
Speaker 2: So you're saying AI can't innovate.
Speaker 10: I don't know if it can't innovate, I just don't
Speaker 10: think it is right now.
Speaker 2: What about after the AGI moment?
Speaker 10: Well, I never say never, so maybe that'll happen, but
Speaker 10: I'm not holding my breath.
Speaker 3: That was Bloomberg's Emily Chang speaking with Jennifer Dowdner, Nobel
Speaker 3: Laureate and founder of Innovative Genomics Institute. What's the four
Speaker 3: episode on Bloomberg Television tonight at six pm Eastern or
Speaker 3: on Bloomberg Originals at eight pm Eastern time. Defense manufacturing
Speaker 3: start up Hadrian has been in talks to more than
Speaker 3: quadruple its valuation in a new funding round, according to sources,
Speaker 3: Bloomberg's venture reporter of BEC and Torrents and I teamed
Speaker 3: up on this one.
Speaker 2: So let's go through the basics.
Speaker 3: Right, these are talks, they're at a certain stage, but
Speaker 3: they only raise money right at the beginning of this
Speaker 3: year at a certain valuation. What's the jump and what
Speaker 3: do we need to know?
Speaker 2: That's correct ed?
Speaker 12: So Hadrian raise money at a one point six billion
Speaker 12: dollar valuation just in January. They've now had conversations to
Speaker 12: raise up to a billion dollars in this latest round.
Speaker 12: That would more than quadruple their valuation, as you said,
Speaker 12: to seven point five billion dollars. The investor demand on
Speaker 12: this one is pretty significant. We reported that several existing
Speaker 12: investors are in talks for this one. We should note
Speaker 12: that when we reach out to comment, Hadrian said that
Speaker 12: the information provider was incorrect decline to provide further context.
Speaker 2: That said, we sitten by our reporting.
Speaker 12: This is an area that's extremely hot with investors right now,
Speaker 12: defense tech broadly. Hadrian makes facilities to speed up domestic
Speaker 12: manufacturing and that's been hugely of interest to a lot
Speaker 12: of folks and Silicon Valley.
Speaker 2: Thank you for that.
Speaker 3: I would also add that s fokes first and Hadrium
Speaker 3: said the reporting was incorrect but declined to add further context.
Speaker 2: I would have done that for you. Thank you very much.
Speaker 2: There is some reporting that we did about where they.
Speaker 3: Approached debt or a lack of approach to debt.
Speaker 12: Just explain that bites so building large automated factories often
Speaker 12: means that companies need to take on debt to take
Speaker 12: you know, on the risks of building these large facilities.
Speaker 12: Hadrian currently has four factories, the latest which operate, which
Speaker 12: opened in March off the back of a two point
Speaker 12: four billion dollar contract with the US Navy. So this amount,
Speaker 12: this up to one billion dollars is just equity that
Speaker 12: they would raise. It doesn't include any debt that they
Speaker 12: may be discussing.
Speaker 3: Rebecca, you did a great job explaining, you know what
Speaker 3: Hadrian does. It's basically an amazing factory or contract manufacturer. Generally,
Speaker 3: what is bench capital attitude right now to defense technology
Speaker 3: and this whole kind of reindustrializing America push.
Speaker 2: There's tons of excitement here.
Speaker 12: Ed investors in Hadrin include Andres and Horowitz through its
Speaker 12: American Dynamism Fund, Pedersfield's founder's fund, Lux Capital. This effort
Speaker 12: to sort of reshore manufacturing and create the cycle where
Speaker 12: consumers and companies can just rely on production and consumption
Speaker 12: within the US is a huge interesting.
Speaker 3: These people Bloombergs, Rebecca Torrents teaming up with me on
Speaker 3: that one on Hadrian potentially hitting seven point five billion
Speaker 3: dollar valuation, Thank you very much. Now, coming up later
Speaker 3: in the show, we're going to sit down with David
Speaker 3: George and Drees and horror Itz general partner on a
Speaker 3: sixteen c's big bet on SpaceX conversation that we're really
Speaker 3: looking forward to right now. This is what technology looks
Speaker 3: like in financial markets, particularly inequity markets, and we are
Speaker 3: all waiting for what is a big one that is
Speaker 3: Micron reporting earnings after the closing bell right now, Na's
Speaker 3: like one hundred modestly hired, a flat underperformance in chip
Speaker 3: stocks and bitcoin just shy of sixty one thousand US
Speaker 3: dollars per token. Welcome back to Bloomberg Tech. It's a
Speaker 3: big moment in time for Memory. The biggest headline is
Speaker 3: probably the sk Heinex will try and raise twenty nine
Speaker 3: billion dollars in a US listing.
Speaker 2: But the AI trade is.
Speaker 3: Going to get its next queue from Micron's earnings after
Speaker 3: the bell. There's a lot of literature on the Bloomberg
Speaker 3: about that. The stocks down about one zero point three
Speaker 3: percent right now. It's highly analogous from what we saw
Speaker 3: in some of the earlier days of Nvidia twenty twenty
Speaker 3: three to twenty twenty five, massive growth year on year,
Speaker 3: both on the top and bottom line. But the market
Speaker 3: really wants a bullish signal, not that the bottleneck that
Speaker 3: is Memory is unwinding a little on the AI infrastructure
Speaker 3: build out, but that the demand has staying power. So
Speaker 3: that is what we're watching for throughout the course of
Speaker 3: the day. Another top story, Elon Musk is reshaping his
Speaker 3: empire's balance sheet. SpaceX just pulled off a record twenty
Speaker 3: five billion dollar investment grade bond sale, taking on more
Speaker 3: debt while lowering overall borrowing costs across must sprawling businesses.
Speaker 3: For more Bloombergs, Private credit reporter Paula Sellison joins us,
Speaker 3: how did it go?
Speaker 11: It went very well that the peak of demand. There
Speaker 11: were eighty nine billion dollars in orders for what was
Speaker 11: ultimately a twenty five billion dollar bond deal that allowed
Speaker 11: the company to tighten or get lower borrowing costs over
Speaker 11: the course of the marketing process, and investors are very
Speaker 11: eager to lend.
Speaker 2: There is a bit of a history lesson in this.
Speaker 2: Find it fascinating.
Speaker 3: So, yeah, must takes Twitter private, x joins Xai, Xai
Speaker 3: merges with SpaceX, and then SpaceX does the biggest IPO
Speaker 3: in history. And if you look at how they kind
Speaker 3: of shuffled the deck with the proceeds of the bond
Speaker 3: sale and what they planned to do in paying down
Speaker 3: existing loans, it kind of takes us back to square one?
Speaker 2: Is that right?
Speaker 11: Well, this was really all one long, convoluted way of
Speaker 11: allowing Xai to become part of an investment grade company
Speaker 11: and then be able to borrow at those borrowing costs. So,
Speaker 11: you know, we had the Twitter LBO which ended up
Speaker 11: adding about thirteen billion dollars of debt, and then the
Speaker 11: Xai leverage loan and hiled bond sales which added five
Speaker 11: billion dollars of debt, So when SpaceX acquired XAI, there
Speaker 11: was seventeen point five billion dollars of debt with interest
Speaker 11: rates in the nine and a half percent to twelve
Speaker 11: and a half percent range. All of that essentially just
Speaker 11: got refinanced initially through a twenty billion dollar bridge loan
Speaker 11: that was then taken out with the investment grade bond
Speaker 11: sale on Tuesday, and now interest rates around five and
Speaker 11: a half to six.
Speaker 2: And a half percent.
Speaker 3: We broke the story in just the days before the
Speaker 3: IPO that SpaceX had got IG rating from the free
Speaker 3: main agencies. That was really important, right The story right
Speaker 3: now in the AI space is borrowing and the IG
Speaker 3: rating has proved to be pretty handy to SpaceX.
Speaker 11: Absolutely, so there is so much need for capital. Investment
Speaker 11: companies just can't do it with cash flow. They have
Speaker 11: to borrow, and they're borrowing across all the different debt markets.
Speaker 11: But the best place to borrow for most of them
Speaker 11: is the investment grade bond market because it's very large,
Speaker 11: very deep pockets, and it's a cheaper borrowing cost. So
Speaker 11: being able to get those investment grade ratings just opens
Speaker 11: up access to capital that makes it so much easier
Speaker 11: to borrow all this money to finance the AI build
Speaker 11: out the most.
Speaker 2: Paula Cellison, thank you very much.
Speaker 3: Indeed, in the equity space SpaceX actually hire again today
Speaker 3: one hundred and fifty eight dollars per share SpaceX David,
Speaker 3: George Andresen horror it's general partner, is on set with
Speaker 3: us right now. He led the firm's investment investment in SpaceX,
Speaker 3: a state which is now valued at more than ten
Speaker 3: billion dollars and it's proved to be Andresen's largest return
Speaker 3: in history. And you're somebody that I've wanted to speak
Speaker 3: to about the company for a long time. There's a
Speaker 3: lot here, but I think just as an opening reflect
Speaker 3: on the IPO, David, and I guess not just in
Speaker 3: a moment in time for Andresen, but what you think
Speaker 3: it's signified for what is a very big and now
Speaker 3: quite diverse company.
Speaker 13: Yeah, well, look, thanks for having me on. A great
Speaker 13: to be here with you. The IPO is just a
Speaker 13: milestone in the history of the company. I think it's
Speaker 13: a great event for the company to be able to
Speaker 13: access a new investor's access capital that they couldn't otherwise access.
Speaker 2: Before.
Speaker 13: And one of the things that I'm most excited about
Speaker 13: as relates to the IPO is the fact that retail
Speaker 13: was able to partake in such a big fashion. So
Speaker 13: if you look at the allocation that went to retail
Speaker 13: as a proportion of the overall IPO, it's around thirty percent.
Speaker 13: And so if you just take that portion that went
Speaker 13: to retail, it's almost the largest IPO by itself in
Speaker 13: the history of IPOs.
Speaker 2: So I think it's fantastic that. Why is that part
Speaker 2: of that? David, Sorry to interrupt you.
Speaker 13: Retail has proven to be an excellent group of buyers
Speaker 13: and holders of stock. So obviously it's a large proportion
Speaker 13: of the ownership of Tesla, but they also are large
Speaker 13: owners of the meg seven at large, and so I
Speaker 13: think it's excellent for SpaceX to be able to access that.
Speaker 13: I think you know, in large part, retail is long
Speaker 13: term thinking, which aligns with the way Elon thinks and
Speaker 13: how he's built SpaceX, and so I love that they're
Speaker 13: a big part of it.
Speaker 3: Probably the question I get for you most commonly is
Speaker 3: about the lock up.
Speaker 2: What will happen?
Speaker 3: You know, to the venture firms would say, well, we
Speaker 3: will redistribute to our LPs the stock and we expect
Speaker 3: lots of them to hold. But that would seem to
Speaker 3: make the retail holders important. And what was like a
Speaker 3: very complex lockup, It wasn't straightforward.
Speaker 13: Yeah, look, I think this is a great step forward
Speaker 13: generally and how lockups are run, and I expect for
Speaker 13: IPOs going forward, this is probably going to be the
Speaker 13: way it's run. So cerebristed something similar where you have
Speaker 13: the lockups come off gradually over time, and I think
Speaker 13: this is good, this is healthy.
Speaker 2: It allows you know.
Speaker 13: The public market investors to be able to buy stock
Speaker 13: over time as opposed to you know at cliff events.
Speaker 13: For us, we're very long term thinkers. You know, we're
Speaker 13: happy shareholders of SpaceX. You know, we think very much
Speaker 13: about the long term.
Speaker 12: You know.
Speaker 13: Obviously, what makes us so excited about the business is
Speaker 13: all of the things that can go right for SpaceX,
Speaker 13: all the optionality that you have. And so the way
Speaker 13: that we look at it is you start with the
Speaker 13: launch business, and in order to be successful as a
Speaker 13: space business, you have to rely be able to get
Speaker 13: things to space. And so SpaceX has the infrastructure in
Speaker 13: an incredible way to be able to build applications on top. Obviously,
Speaker 13: Starlink is the first one. We expect that with Starship
Speaker 13: and V three, they've achieved some de risking in terms
Speaker 13: of what they can bring up to space. Eventually they'll
Speaker 13: have rapid reusability with multiple launches per day on Starship.
Speaker 13: It's a feat of physics magnificence that they can take
Speaker 13: something that's the size of larger than a football field,
Speaker 13: send it up to space, grab it with chopsticks, and
Speaker 13: then reuse it again. They'll rapidly be able to do that,
Speaker 13: and that's going to enable all the applications that they
Speaker 13: want to build on top.
Speaker 3: It also now has a name starmind Yes as of
Speaker 3: last night, and you know Elon Musk engaging with others
Speaker 3: on X. There are many out there that believe that
Speaker 3: the timeline that was presented in the perspectus of Orbital
Speaker 3: Date Center SPACEXIT as early as twenty twenty eight, actually
Speaker 3: we could see some pool forward on that. Again linked
Speaker 3: to the tracking of Starship. Where do you sit in
Speaker 3: what's realistic.
Speaker 13: Near to Yeah, Look, I think the biggest hurdle to
Speaker 13: cross is just rapid reusability of Starship, and I think
Speaker 13: you know, there's a consistent theme with Elon's companies, and
Speaker 13: certainly in SpaceX, which is physics has been de risked,
Speaker 13: and so now.
Speaker 2: It becomes an execution question.
Speaker 13: And so as you think about timelines, we feel like
Speaker 13: it is inevitable that they can achieve these milestones, just
Speaker 13: a question of how quickly and at what cost. And
Speaker 13: so if you have starship that can rapidly, you know,
Speaker 13: reliably get things up and back to space, we think
Speaker 13: that's the major unlock for bringing compute to space.
Speaker 2: I know earlier you.
Speaker 13: Were talking about the eight hundred and fifty billion dollars
Speaker 13: of CAPEX for AI data centers on terrestrial grounds. Right
Speaker 13: now it's getting harder and harder to get data centers
Speaker 13: live on the ground here. I think it's a matter
Speaker 13: of time before we have it in space. I actually
Speaker 13: think I like to reframe it a little bit. I
Speaker 13: don't talk about it as orbital data centers. I talk
Speaker 13: about them as sort of airplane sized.
Speaker 2: Gpu ras in space.
Speaker 13: So think of it as you know, something like seventy
Speaker 13: two GPUs up in space with big wings that are
Speaker 13: solar arrays that are kind of the size of a
Speaker 13: seven thirty seven. And then you can have many, many
Speaker 13: of those in space. They've demonstrated that they can do this.
Speaker 13: They have ten thousand LEO satellites, So we feel like
Speaker 13: it's a matter of time and execution before they can
Speaker 13: do that. The physics has been de risked, you know,
Speaker 13: to the point about how it's getting harder and harder.
Speaker 2: To do this.
Speaker 13: You know, on the ground, I think at a minimum,
Speaker 13: orbital data centers will be incremental capacity that you can
Speaker 13: have in space on top of what we have on Earth.
Speaker 13: And I think there's a case that in the fullness
Speaker 13: of time, the economics actually get better than on the ground.
Speaker 3: David the firm Andreessen Horowitz has been involved with must
Speaker 3: companies in different ways for about six years, in different
Speaker 3: ways x XAI, the different financial transactions that took place.
Speaker 2: For you, how much was this this.
Speaker 3: IPO a referendum essentially on Musk himself or how central
Speaker 3: to the fate of this company do you see long being?
Speaker 13: Yeah, Look, Elon is the centerpiece of all of those
Speaker 13: investment thesis that we had right in backing his companies.
Speaker 13: You know, he's he's been remarkably strategic and how he's
Speaker 13: put the companies together, and you know, he has done
Speaker 13: very well by shareholders.
Speaker 2: He's taking care of shareholders.
Speaker 13: He takes a lot of pride in that, and we
Speaker 13: appreciate that As his partner. I think as it relates to,
Speaker 13: you know, the go forward, he's been very smart. He
Speaker 13: and Brett Johnson and the team ASPACEX have been very
Speaker 13: very smart about capital allocation, right, you know, when they
Speaker 13: have done acquisitions, they have been remarkably strategic in terms
Speaker 13: of putting things together first, you know, and putting X
Speaker 13: with Xai, which is very logical, and then obviously the
Speaker 13: fit of XAI and SpaceX together, you know, is undeniable.
Speaker 13: So we expect that will continue to be very smart
Speaker 13: about capital allocation, take care of shoreholders, and we appreciate that.
Speaker 3: Where do you stand, David then, on the transaction that
Speaker 3: everyone continues to talk about, which is a future where
Speaker 3: Tesla merges with SpaceX, Is it rational to your mind?
Speaker 13: I go back to the things that he's done in
Speaker 13: the past, and the things that he's done in the past,
Speaker 13: is he has decided to do acquisitions of his companies
Speaker 13: or mergers of his companies when there is very strong
Speaker 13: strategic alignment and it makes business sense.
Speaker 2: So I wouldn't expect it to be any different going forward.
Speaker 3: There's this broader idea, if you extract it out from
Speaker 3: from Elon Musk, that even at the growth stage, late
Speaker 3: private companies staying private for longer, late stage growth, that
Speaker 3: the investment thesis is still around the founder, the person
Speaker 3: at the top. I don't know, how whether you share
Speaker 3: that view of others that even if you are talking
Speaker 3: in the tens hundreds of billions of dollars of value,
Speaker 3: that value is assignable to an individual or a group
Speaker 3: of individuals.
Speaker 2: Yeah.
Speaker 13: Look, I think you can see reflections of this actually
Speaker 13: in the public markets. So I think you can see
Speaker 13: this in Elon companies. Certainly. I think you could see this,
Speaker 13: you know, with Apple under Steve Jobs. I think you
Speaker 13: could see it with Meta under Mark Zuckerberg. But certainly
Speaker 13: in the private markets. You know, this is a centerpiece
Speaker 13: of our investment thesis when we're backing companies at any
Speaker 13: stage and any size. I recently wrote a piece that
Speaker 13: basically said late stage venture, which is our asset class,
Speaker 13: is not about capital markets.
Speaker 2: It's about founders.
Speaker 13: Late stage venture is about late stage founders and enabling
Speaker 13: them to think long term, make big decisions, and make
Speaker 13: big bets, and oftentimes they choose to do that in
Speaker 13: the private markets.
Speaker 2: And so you know, our asset class.
Speaker 13: That we play in, it's about five trillion dollars in size.
Speaker 13: It's grown ten x over the last ten years. It's
Speaker 13: larger than the Russell two thousand. It's almost twenty percent
Speaker 13: as large as the Nasdaq. So this has become a
Speaker 13: real asset class. And I think there's reasons that we
Speaker 13: should explore. Why is it that cost a title?
Speaker 2: What would you call that late stage venture?
Speaker 13: Late stage privates with the value crews, where the value yeah,
Speaker 13: and where the value crews, yeah. And the centerpiece of
Speaker 13: the investment thesis is around the founder and the big
Speaker 13: decisions that the founder has to make.
Speaker 2: It's a lot of key man risk to model for.
Speaker 13: Yes, that's right, But I think the more important thing
Speaker 13: to model for is what can go right? Okay, you
Speaker 13: know we always ask ourselves, you know, it's hard to
Speaker 13: imagine what could go right. And we even see this
Speaker 13: with mature companies. If you look back at the time
Speaker 13: when you know the iPhone came out, If you look
Speaker 13: at the two thousand and nine consensus analyst estimates for
Speaker 13: what Apple was going to do, and that in two
Speaker 13: thousand and nine. For the next four years, and then
Speaker 13: fast forward four years, they actually beat those numbers by
Speaker 13: three x. And that's probably the most covered company in
Speaker 13: the world. So we like to think with a great founder,
Speaker 13: with a technology trend on its.
Speaker 2: Back, what can go right?
Speaker 13: And you know, if you look at this last cycle
Speaker 13: that we've just gone through pre AI, you know, this
Speaker 13: cycle of mobile phones, social e commerce, SaaS, cloud all
Speaker 13: put together, the big story is that that big trend
Speaker 13: added about twenty five to thirty.
Speaker 2: Trillion of new market cap.
Speaker 13: And I happen to think that on this AI wave,
Speaker 13: on the back of this AI wave, the.
Speaker 2: Trend's going to be even bigger.
Speaker 3: You head a growth team that manages twenty two billion
Speaker 3: dollars across five funds. But if you think about it holistically,
Speaker 3: you're basically in the top fifteen private companies by valuation,
Speaker 3: which would have included SpaceX before it went public. How
Speaker 3: are you now deploying capital new capital into new companies,
Speaker 3: you know, with those existing investments in mind.
Speaker 13: Yeah, Look, our whole thesis is we want to be
Speaker 13: involved in the best companies at the earliest stage possible
Speaker 13: and then continue to back them every step of the
Speaker 13: way as they need capital, and often that has been
Speaker 13: through late stage rounds in the.
Speaker 3: Private market because you have a newer fund, right which
Speaker 3: you can deploy capital out there.
Speaker 2: We do.
Speaker 13: Yeah, we we have our LSV five Late Stage Venture
Speaker 13: Fund five as we call it, it's our fifth fund.
Speaker 13: It's about a seven billion dollar fund that we're deploying
Speaker 13: out of currently, and we see a ton of really
Speaker 13: interesting opportunities. So you know, if you go back to
Speaker 13: the market that we're seeing and just look at our
Speaker 13: portfolio at a sixteen Z and our latest fund, our
Speaker 13: portfolio dollar weighted is growing over one hundred percent year
Speaker 13: over year. If you compare that to the size similar
Speaker 13: sized companies in the public markets, those companies are growing
Speaker 13: about twenty percent year over year. So we put a
Speaker 13: huge premium on very fast growth, great founders, market leadership,
Speaker 13: and sort of building.
Speaker 2: On the back of the big trends.
Speaker 3: Also noting the cap tables look a bit different like
Speaker 3: with the mutual funds private growth equity. David George Havenjreson Horowitz,
Speaker 3: head of Growth and general partner.
Speaker 2: Really grateful to have you on Bloomberg Tech. Thank you
Speaker 2: very much.
Speaker 3: Coming up, Cerebris reported its first ever quarterly earnings since
Speaker 3: going public. CEO Andrew Feldman's joining us. The stock is
Speaker 3: down seventeen percent. There's a lot to unpack there. This
Speaker 3: is Bloomberg Tech. Crebress reported quarterly earnings for the first
Speaker 3: time since going public last month. It's sales outlook beat
Speaker 3: Wall Street estimates, but still disappointed investors hoping to see
Speaker 3: the company carve out a bigger slice of the aident
Speaker 3: center market. Right now, shares down seventeen point five percent,
Speaker 3: its biggest drop in its quite short history as a
Speaker 3: public company. What's behind that? CEO Andrew Feldman's with us
Speaker 3: and welcome back to Bloomberg Tech.
Speaker 2: Andrew.
Speaker 3: You know, there was a time where we would talk
Speaker 3: about the merits of top to tail server ownership, how
Speaker 3: owning all of the content of Now we're going to
Speaker 3: talk about margin contraction, and we're going to talk about
Speaker 3: the stock being down seventeen percent. That to me is
Speaker 3: kind of the mismatch that the outlook on the sales
Speaker 3: side beat Wall Street estimates. I think a lot of
Speaker 3: people are trying to understand the sequential margin decline and
Speaker 3: for me that this is about ramping output for two
Speaker 3: big customers Is that true.
Speaker 5: Yeah.
Speaker 14: I think what we did is we put forward a
Speaker 14: plan in the start of twenty six, we shared it
Speaker 14: with investors as we went public, and we're ahead of plan.
Speaker 5: You know. We delivered record.
Speaker 14: Revenues of one hundred and ninety one million of ninety
Speaker 14: two percent year over year, and for our cloud business,
Speaker 14: you know, it was up one hundred and sixty seven
Speaker 14: percent year over year. We beat margin consensus substantially, and
Speaker 14: then we guided for full year the growth.
Speaker 5: Margins would be ten percent better than plant.
Speaker 14: We also shared the in Q two and Q three
Speaker 14: we would go back to some of our customers and
Speaker 14: we would rent back year that we'd sold them to
Speaker 14: try and keep up with demand, and then that would
Speaker 14: have a margin impact on the order ten.
Speaker 5: Or fifteen points.
Speaker 14: We did that to keep our customers close to be
Speaker 14: sure we could keep up with their extraordinary demand for
Speaker 14: or for our product for fast inference, and so that
Speaker 14: that was the story.
Speaker 5: On every metric we put out, we're ahead of plan.
Speaker 2: Have the proceeds from.
Speaker 3: The IPO actually allowed you to move more quickly in
Speaker 3: ramping up capacity?
Speaker 14: Yeah, I think capacity is the largest constraint right now
Speaker 14: for everyone.
Speaker 5: Data centers are and.
Speaker 14: We've significantly increased our our ability and our pipeline for
Speaker 14: data centers, which is now very large. You know, we
Speaker 14: announced a data center partnership with Bell Canada for one
Speaker 14: hundred and twenty megawatts that will be delivered in twenty
Speaker 14: twenty seven. We are pursuing data centers across the US,
Speaker 14: in Canada, in Europe, in the Middle East.
Speaker 5: There are.
Speaker 14: The resources that we have now at our disposal give
Speaker 14: us tremendous advantage in the pursuit of this The limiting
Speaker 14: factor data centers.
Speaker 3: What you're talking about, like matter of factly, is buildings
Speaker 3: not necessarily the compute, right It's not what you guys
Speaker 3: are offering. How difficult right now is it is to
Speaker 3: get moving in America or other markets, to get planning approval,
Speaker 3: get the concrete, get the labor, get the thing built.
Speaker 14: Now that that's the irony of this market, that the
Speaker 14: AI market is moving at blistering speed and we are
Speaker 14: being constrained by data centers which move with the speed
Speaker 14: of real estate. And so that is a problem that
Speaker 14: is being confronted by by everybody in the category, by
Speaker 14: the hyperscalers, by the neo clouds, by the new generation clouds.
Speaker 14: Everybody is confronting this similar problem.
Speaker 3: Andrew Cerebris does not rely on traditional chip HBM. Would
Speaker 3: you just explain that the basics of the technology, But
Speaker 3: how insulated are you from the memory bottleneck that others
Speaker 3: are experiencing.
Speaker 5: Yeah, that's a really good point.
Speaker 14: Because of our innovative architecture, because of our wafer scale approach,
Speaker 14: we don't use HBM. HBM is a type of DRAM
Speaker 14: and it's made by three companies, one of whom is
Speaker 14: reporting shortly right. That's Microns, Heenex and Samsung. There's a
Speaker 14: global shortage, it's extremely expensive, lead times are long, and
Speaker 14: we don't use it, so we have a tremendous advantage there.
Speaker 14: The other constraints in the supply chain for many are cooths,
Speaker 14: which is a process inside of TSMC.
Speaker 5: Again we don't use it.
Speaker 14: And the third is a capacity at the three nanometer node.
Speaker 14: That's space in TSMC's factory that makes three and nanimeter chips.
Speaker 5: Again we don't use it. We're at the five nanometer node.
Speaker 14: Our architecture has allowed us to deliver the fastest inference
Speaker 14: in the world by an order of magnitude while avoiding
Speaker 14: the main supply supply chain constraints faced by others in
Speaker 14: the field.
Speaker 3: Can you say, hand on heart, not just winning business,
Speaker 3: but if you actually been able to go to a
Speaker 3: customer and say we can get this compute online faster
Speaker 3: than others for those reasons you just outlined and then actually.
Speaker 2: Gone and done it.
Speaker 5: Oh for sure.
Speaker 2: I mean any cases I.
Speaker 14: Signed, we signed. For example, we signed our contract with
Speaker 14: open Ai on December twenty fourth and had them in
Speaker 14: for production on February first. That's unheard of.
Speaker 3: So that's quick as I went really quickly Andrew this morning.
Speaker 3: Open Ai is out with Kalapino Intelligence processor. But everyone
Speaker 3: is compute constrained, right, How do you interpret the Frontier
Speaker 3: Labs going to custom and a six alongside their other
Speaker 3: compute options.
Speaker 12: Ed.
Speaker 14: One of the things we've been saying all along is
Speaker 14: that this market is enormous and is going to be
Speaker 14: met with a heterogeneous collection of architectures for hardware. This
Speaker 14: market will not be consolidated around GPUs. There will be
Speaker 14: a six, There will be a six from Hyperscalers, there
Speaker 14: will be a six from from Labs, and then there'll
Speaker 14: be companies like Cerebrase with pioneering architectures who all of
Speaker 14: us will will will take big bites of this enormous market.
Speaker 14: I think one of the things that's difficult to get
Speaker 14: your head around is just how big the compute market
Speaker 14: is right now. That one of the things AI does
Speaker 14: is it makes tractable for compute much of the world
Speaker 14: around us, and that really wasn't the case prior to AI.
Speaker 3: Andrew I it's if the world is simple, and it's
Speaker 3: money that greases the wheels to get your industry going.
Speaker 3: Can we see you come back to capital markets in
Speaker 3: some form just so you can move quicker.
Speaker 14: We have more than nine billion on the balance sheet,
Speaker 14: I think, so we're really pleased with our position there.
Speaker 14: But of course we are always scanning both the capital markets,
Speaker 14: both equity and debt for ways to accelerate our growth.
Speaker 3: Finally, how are you judging success yourself? What is the
Speaker 3: milestone that you'd pitch to the market to keep closest
Speaker 3: attention to.
Speaker 14: Well, I think I think if my mother's proud of me,
Speaker 14: I think that's the biggest.
Speaker 5: Thing you can you can ask for.
Speaker 14: I think for markets, I think when you lay out
Speaker 14: a plan that is aggressive and you crush it, Uh,
Speaker 14: that's how you feel good about both your ability to
Speaker 14: execute in your ability to predict your own execution.
Speaker 5: And so you know, we announced yesterday that.
Speaker 14: That we would beat our our full year we give
Speaker 14: full year guidance that was ten gross margin points above concernsus.
Speaker 14: You ought to be proud of that, and we got
Speaker 14: to continue to execute and continue to set extraordinarily high
Speaker 14: barrows and then continue to.
Speaker 5: Beat them.
Speaker 3: Cerebra Ceo, Andrew Feldman, thank you very much. Indeed, really
Speaker 3: Andrew alluded to it. Micron is the big one after
Speaker 3: the closing bell. Top line growth almost three hundred percent
Speaker 3: year on year, net income growth twelve hundred percent.
Speaker 2: Year on year. The bar is very very high the market.
Speaker 3: It's very analogous to Nvidia what we saw twenty twenty
Speaker 3: two to twenty twenty five, massive growth, but investors always
Speaker 3: wanting more. The stocks down eight ten percent going into
Speaker 3: that print. Another stock we're watching today US fast food
Speaker 3: chain Wendy's surging as much as forty two percent.
Speaker 2: But wait, what does that have to do with tech?
Speaker 3: Well, it appears Wendy's has become the latest memes stock
Speaker 3: target shot up the rankings on stock Twitz climb to
Speaker 3: the top of the platform's trending list. Seems to have
Speaker 3: been sparked by a now deleted post on Reddit's Wall
Speaker 3: Street Bets forum that urged members to save Wendy's before
Speaker 3: it's too late. That does it for this edition of
Speaker 3: Bloomberg Tech. Recap everything on the podcast. You know where
Speaker 3: to find it online, Apple, Spotify and iHeart and all
Speaker 3: the Bloomberg platforms.
Speaker 2: This is Bloomberg Tech.