WEBVTT - AMD's AI Chip Sales Boost and Microsoft Azure's Slowing Growth 0:00:01.120 --> 0:00:05.760 From Mahart where Innovation, Money and power Collie in Silicon 0:00:05.840 --> 0:00:10.280 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.520 --> 0:00:11.320 ed Love Love. 0:00:25.320 --> 0:00:27.640 Live from New York. This is Bloombo Technology. 0:00:27.680 --> 0:00:28.040 Coming up. 0:00:28.080 --> 0:00:31.680 We sit down with the CEOs of AMD, T Mobile 0:00:31.960 --> 0:00:35.320 and Pinterest. Is tech earnings hit full send Wow plus 0:00:35.360 --> 0:00:40.280 Microsoft Azure growth tests, investors, patients, as AI spend ramps 0:00:40.280 --> 0:00:45.199 and the US sparing ASML and Tokyo Electron From chip Curbs. 0:00:45.440 --> 0:00:48.120 We bring you the details. What a morning I woke 0:00:48.200 --> 0:00:50.120 up to this morning. This is what the earnings that 0:00:50.120 --> 0:00:52.640 have gone before last night looked like in terms of 0:00:52.640 --> 0:00:55.120 the shehare reaction. Many different stories. A lot of it's 0:00:55.120 --> 0:00:58.480 centered around AI. Microsoft down one point three percent off 0:00:58.480 --> 0:01:02.400 session lows. The story slower than expected Azure growth an 0:01:02.440 --> 0:01:05.800 eight percent contribution from artificial intelligence, but investors look at 0:01:05.840 --> 0:01:08.280 the capex and go, we don't see the growth or 0:01:08.280 --> 0:01:10.240 the money coming out the other side of that equation. 0:01:10.560 --> 0:01:11.679 AMD a different story. 0:01:11.680 --> 0:01:14.920 They actually boosted modestly the guidance for the outlook for 0:01:14.959 --> 0:01:18.080 the Mi three hundred AI Accelerator family sales for this year. 0:01:18.120 --> 0:01:19.600 And as you guys know, we're going to be speaking 0:01:19.640 --> 0:01:22.919 to Lisa sue really soon, so many important questions. Lastly, 0:01:23.000 --> 0:01:25.760 Intel up more than one percent. Bloomberg is reporting, citing 0:01:25.880 --> 0:01:28.880 sources that they are going to cut thousands of jobs 0:01:29.040 --> 0:01:31.840 to respond to the lagging earnings and get focused back 0:01:31.880 --> 0:01:34.479 on getting that foundry or fab business off the ground. 0:01:34.520 --> 0:01:36.920 Here's another one that I'm really interested in. T Mobile 0:01:37.360 --> 0:01:39.480 really coming in strong. The stock has kind of bounced 0:01:39.520 --> 0:01:42.080 around this morning on T Mobile, but is now up 0:01:42.120 --> 0:01:45.240 around three to four percent, And the story is so interesting. 0:01:45.240 --> 0:01:47.920 It's those monthly subscribers that are coming in well. 0:01:48.040 --> 0:01:50.120 I looked at the industry and I think the industry 0:01:50.480 --> 0:01:52.760 as a whole has done really well on that front. 0:01:52.880 --> 0:01:55.840 Delighted to bring in the president and CEO of Tea Mobile, 0:01:56.080 --> 0:01:58.000 Mike sever who joins me on set in New York City. 0:01:58.000 --> 0:01:59.680 Good morning, that's great to be here, Thanks for having me. 0:01:59.720 --> 0:02:00.560 Really interesting. 0:02:00.800 --> 0:02:03.480 That number to subscribe a number because I look at 0:02:03.520 --> 0:02:06.640 your peers and competition who also seem to be doing well. 0:02:06.640 --> 0:02:09.320 So it raises the question, where are your gains coming 0:02:09.320 --> 0:02:11.359 from from them? Or is there just like this new 0:02:11.440 --> 0:02:13.480 generation of customer that's appeared. 0:02:13.600 --> 0:02:15.800 Well, we're seeing nice organic growth in the industry, so 0:02:15.840 --> 0:02:19.480 everybody did pretty well. Both my principal competitors I think 0:02:19.520 --> 0:02:21.639 had net gains that were a little better than expected. 0:02:21.639 --> 0:02:23.440 But T Mobile took the prize. 0:02:23.480 --> 0:02:26.440 I mean, this was the biggest Q two for postpaid 0:02:26.560 --> 0:02:29.480 net phone editions ever in our history, and we. 0:02:29.440 --> 0:02:32.040 Took took the price from who is what I'm trying to. 0:02:31.960 --> 0:02:34.359 Well, we took more than AT and T and Verizon combined. 0:02:34.360 --> 0:02:37.000 So this is still a share taking story for us. 0:02:37.360 --> 0:02:41.240 And you know, of course the industry is growing. That's healthy, 0:02:41.320 --> 0:02:45.079 that's positive it but T Mobiles the disproportionate winner in 0:02:45.120 --> 0:02:48.680 the growth game. Our post paid service revenues up seven 0:02:48.760 --> 0:02:51.840 percent year over year, more than twice the pace of 0:02:51.880 --> 0:02:53.280 the principal competitors. 0:02:53.440 --> 0:02:56.440 Mike back in California, we're a T Mobile householder and 0:02:56.440 --> 0:02:59.200 I use Verizon for my kind of work business line. 0:02:59.760 --> 0:03:02.919 But it's the technology story that I'm most interested in. 0:03:03.240 --> 0:03:05.880 You know, I think back to when the I fifteen 0:03:05.919 --> 0:03:08.840 Pro generation came out. I went there because of incentive 0:03:09.160 --> 0:03:12.280 a credit back on a new handset, the incentive of 0:03:12.280 --> 0:03:15.120 having multiple lines on one account, And I always want 0:03:15.160 --> 0:03:17.160 to know how much of a factor that still is 0:03:17.160 --> 0:03:18.600 for you guys to kind of think, well, what can 0:03:18.639 --> 0:03:21.640 we do on the incentive side to either renew existing 0:03:21.639 --> 0:03:23.239 customers or bringing new ones. 0:03:23.840 --> 0:03:25.959 Customers have always trusted T Mobile to be the best 0:03:26.080 --> 0:03:28.760 value in the industry. That's our legacy, that's our heritage. 0:03:28.800 --> 0:03:31.600 And what's interesting is now that we're the best network 0:03:31.639 --> 0:03:34.480 in the industry. Also, some would expect us to give 0:03:34.560 --> 0:03:37.080 up that value position, but we're not gonna. You know, 0:03:37.600 --> 0:03:40.720 we have the best promotions, we have the best overall value. 0:03:41.000 --> 0:03:42.600 We give you more, we ask. 0:03:42.560 --> 0:03:44.680 Less of you, and we have the balance sheet and 0:03:44.720 --> 0:03:48.120 the cost structure to defend that value position for the 0:03:48.120 --> 0:03:48.560 long half. 0:03:48.600 --> 0:03:50.960 It's great to have you on Bloomberg Technology here in 0:03:50.960 --> 0:03:53.000 New York and one of the technology stories with T 0:03:53.160 --> 0:03:57.240 Mobiles Fiber KKR Loomas. I think you've talked about the 0:03:57.280 --> 0:03:59.200 importance of that in the ramp, but I wondered if 0:03:59.200 --> 0:04:02.280 you just give me some specifics why and also how 0:04:02.320 --> 0:04:05.040 you grow your investment and why you did it. 0:04:05.440 --> 0:04:07.880 Last week, we announced our second transaction in the space. 0:04:07.880 --> 0:04:10.280 The first one was Loumos a couple months ago. Last 0:04:10.280 --> 0:04:14.000 week we announced that we are combining collaborating with KKR 0:04:14.040 --> 0:04:18.480 to purchase metro Net and Metronet is the fastest growing 0:04:18.600 --> 0:04:23.000 pure play fiber company in America and arguably the most important. 0:04:23.279 --> 0:04:26.040 And so it's really terrific to be collaborating with KKR. 0:04:26.320 --> 0:04:30.120 Our joint business plan for this asset and this team 0:04:30.560 --> 0:04:33.080 is to grow at past six and a half million 0:04:33.240 --> 0:04:36.520 homes passed within the planning period NOWTAL twenty thirty and 0:04:36.600 --> 0:04:38.760 to do so without further capital calls. 0:04:38.839 --> 0:04:40.760 Is the long time opportunity for you. Bundling. 0:04:40.800 --> 0:04:43.200 So you look at your subscribe to customers, you look 0:04:43.240 --> 0:04:45.040 at what the household does with you. 0:04:44.600 --> 0:04:46.640 You want them to do more. Is that the idea? 0:04:46.640 --> 0:04:48.000 Well, it's the current opportunity. 0:04:48.040 --> 0:04:51.400 Remember, T Mobile's a major broadband provider today. In fact, 0:04:51.480 --> 0:04:54.240 we have five point six million broadband customers through our 0:04:54.279 --> 0:04:58.360 fixed wireless product. This quarter Q two, T Mobile took 0:04:58.400 --> 0:05:01.719 our highest percentage share broadband net ads ever in our history, 0:05:01.760 --> 0:05:05.320 seventy five percent. When you add up all fiber, all cable, 0:05:05.480 --> 0:05:09.200 and all fixed wireless one brand, T Mobile took seventy 0:05:09.200 --> 0:05:10.160 five percent. 0:05:09.839 --> 0:05:11.640 With over four hundred thousand net editions. 0:05:11.839 --> 0:05:15.159 And so our value proposition is resonating with people, and 0:05:15.200 --> 0:05:17.599 part of it is sure they trust our brand and 0:05:17.640 --> 0:05:20.200 they want to buy wireless from US and broadband from. 0:05:20.120 --> 0:05:22.320 US stock's now up four percent and in the session 0:05:22.400 --> 0:05:25.440 up about fourteenth eight year today. This is Bloomberg Technology. 0:05:25.440 --> 0:05:28.039 One of the companies that I cover is SpaceX. I'm 0:05:28.080 --> 0:05:30.520 really interested in the Starling relationship. But when i flew 0:05:30.560 --> 0:05:33.760 here on a United Airlines flight, I was able to 0:05:33.839 --> 0:05:36.560 access Wi Fi in flight because I'm a T Mobile customer. 0:05:37.200 --> 0:05:41.640 You've got different options there. What's the big picture strategy? 0:05:41.839 --> 0:05:43.799 Well, first of all, I'm glad you acknowledged that benefit. 0:05:43.839 --> 0:05:44.600 This is so exciting. 0:05:44.839 --> 0:05:47.320 We have partnerships with because United doesn't have starlin is 0:05:47.320 --> 0:05:48.280 my point a direct, And. 0:05:48.240 --> 0:05:50.640 We have partnerships with most of the major US airlines 0:05:50.920 --> 0:05:53.320 such that T Mobile customers get free Wi Fi on 0:05:53.400 --> 0:05:55.880 flights and it's so great. And we're doing that through 0:05:55.960 --> 0:05:58.360 satellite connectivity with a number of partners. But what you're 0:05:58.360 --> 0:06:01.719 asking about is our exclusive era raingement with SpaceX. We 0:06:01.800 --> 0:06:04.400 have a technology alliance and we intend to be the 0:06:04.440 --> 0:06:08.280 first ones to bring satellite connectivity to your day to 0:06:08.360 --> 0:06:11.120 day usage of your mobile phone. And the vision here 0:06:11.160 --> 0:06:14.560 that's joined between us is to eliminate dead zones. The 0:06:14.640 --> 0:06:17.000 idea that if you can see the sky, you're connected 0:06:17.200 --> 0:06:20.400 and you can message, text and eventually make phone calls 0:06:20.440 --> 0:06:22.840 and have some data to be connected to the people 0:06:23.240 --> 0:06:24.040 and the issues that. 0:06:24.040 --> 0:06:24.679 You care about. 0:06:24.800 --> 0:06:28.240 An interesting technology conversation and you acknowledge the competition and 0:06:28.279 --> 0:06:30.520 growth across your industry as well. Might see that T 0:06:30.680 --> 0:06:33.800 Mobile CEO and all of course president of T Mobile 0:06:34.000 --> 0:06:35.880 as well. Now, I told you this was a day 0:06:36.240 --> 0:06:38.280 where you need to buckle up. We have a lot 0:06:38.279 --> 0:06:41.520 of earnings coming thick and fast. AMD shares currently up 0:06:41.560 --> 0:06:43.600 six percent. At one point in the session, we're up 0:06:43.640 --> 0:06:45.960 eleven percent, putting them on track for their biggest drump 0:06:46.200 --> 0:06:50.640 since February that following positive earnings results showcasing a boost 0:06:50.680 --> 0:06:53.880 in sales from the company's AI Accelerate to the family 0:06:53.880 --> 0:06:57.000 of Mi I three hundred, but also some interesting recovery 0:06:57.320 --> 0:07:00.480 in the PC business. Joining us now is a d C. 0:07:01.080 --> 0:07:03.719 Lisa Sue. Good morning to you, Lisa. You know, I 0:07:03.720 --> 0:07:06.360 think that's where everyone was looking, right, Am I three hundred, 0:07:06.400 --> 0:07:09.640 and whether or not you could go beyond the four billion, 0:07:09.680 --> 0:07:12.200 and you said four point five billion. I wondered if 0:07:12.240 --> 0:07:15.760 we could start by discussing the factors behind that. What changed, 0:07:15.760 --> 0:07:19.200 whether it was supply or demand in shipping more of 0:07:19.240 --> 0:07:20.840 the I three hundred family. 0:07:21.920 --> 0:07:24.080 Well, good morning, Ed, it's great to be here with 0:07:24.120 --> 0:07:27.160 you today. Look, we had a very strong second quarter, 0:07:27.520 --> 0:07:30.200 very pleased with the overall growth that we saw, really 0:07:30.280 --> 0:07:32.560 led by the data center business. So our data center 0:07:32.600 --> 0:07:36.119 business more than doubled year on year in the second quarter, 0:07:36.160 --> 0:07:38.120 and we see you know, a strong second half there 0:07:38.160 --> 0:07:41.120 as well as well as strengthened PCs. So you know, 0:07:41.160 --> 0:07:44.160 to your question about you know I three hundred and 0:07:44.200 --> 0:07:46.600 what are we seeing an AI, you know, we're seeing 0:07:46.600 --> 0:07:51.200 an environment where everybody needs more data center AI infrastructure. 0:07:51.280 --> 0:07:54.680 You know, computing is really the foundation of what drives 0:07:55.240 --> 0:07:57.880 you know, sort of all of these AI capabilities going forward. 0:07:58.480 --> 0:08:00.600 You know, I three hundred has been. 0:08:00.600 --> 0:08:05.320 Well into the qualifications at numerous of our top customers. 0:08:05.360 --> 0:08:08.160 And you know what we saw over the past quarters, 0:08:08.160 --> 0:08:12.640 We've passed some very significant milestones in both one, you know, 0:08:12.720 --> 0:08:16.880 ramping up our supply chain, but also passing important you know, 0:08:16.960 --> 0:08:20.880 data center customer milestones where customers have moved our product 0:08:21.200 --> 0:08:21.840 into production. 0:08:22.040 --> 0:08:24.600 So it's an exciting time right now. 0:08:24.880 --> 0:08:27.800 You know, we did update our full year AI guidance 0:08:27.920 --> 0:08:31.040 from greater than four billion a quarter ago to greater 0:08:31.080 --> 0:08:33.840 than four point five billion I think we're seeing great 0:08:33.880 --> 0:08:37.839 traction in our hardware and software milestone. So overall, I'm 0:08:37.840 --> 0:08:40.720 feeling really good about the setup going into the second 0:08:40.720 --> 0:08:41.280 half of the year. 0:08:41.960 --> 0:08:44.560 Lisa, I'm really interested in kind of the design and 0:08:44.600 --> 0:08:48.040 performance differences for all the AI accelerators that are out there. 0:08:48.320 --> 0:08:50.680 You and I have talked about the technology differences, but 0:08:51.040 --> 0:08:54.199 on the call you gave the example of Microsoft and 0:08:54.280 --> 0:08:56.480 its use in the quarter of the MI I three 0:08:56.559 --> 0:09:01.200 hundred generation. When you're speaking to a hypers Gala, when 0:09:01.320 --> 0:09:04.319 might they opt for using m I three hundred over 0:09:04.920 --> 0:09:07.079 in Video's h one hundred, and I suppose to a 0:09:07.160 --> 0:09:11.160 lesser extent, GOUDI, what is the specification or performance driver 0:09:11.240 --> 0:09:14.080 that would make it a better solution in a certain 0:09:14.160 --> 0:09:14.640 use case. 0:09:15.840 --> 0:09:16.040 Yeah. 0:09:16.080 --> 0:09:18.400 Well, first of all, you know, i'd like to, you know, 0:09:18.520 --> 0:09:21.200 say that Microsoft is a phenomenal partner. 0:09:21.200 --> 0:09:22.440 They're a great partner for us. 0:09:22.920 --> 0:09:25.240 You know across you know the data center as well 0:09:25.280 --> 0:09:28.199 as you know the client businesses, and when you see 0:09:28.840 --> 0:09:33.400 in particular, you know how complex these AI systems are. 0:09:33.800 --> 0:09:36.079 You know, you want to have, you know, the best 0:09:36.160 --> 0:09:37.439 technology capability. 0:09:37.880 --> 0:09:39.600 You know, I can go into speeds and feeds, but 0:09:39.640 --> 0:09:42.360 I won't I think it's suffice it to say you 0:09:42.480 --> 0:09:45.440 need this type of computing for both training and inference. 0:09:46.120 --> 0:09:48.199 In our case, you know, m I three hundred is 0:09:48.240 --> 0:09:51.520 the leading inference accelerator today. We have the highest memory, 0:09:51.559 --> 0:09:55.160 the highest memory, you know bandwidth, and that's really helpful. 0:09:55.240 --> 0:09:57.880 You know, when you're asking questions to you know, something 0:09:58.040 --> 0:10:00.760 like you know a chat, GPT or LAMA model, and 0:10:00.800 --> 0:10:03.320 you want your answers to return faster. You want the 0:10:03.400 --> 0:10:07.680 fastest inference accelerator out there, and I three hundred does 0:10:07.840 --> 0:10:10.680 very very well in that framework. And then when you 0:10:10.720 --> 0:10:12.640 take a step back and just look at the overall 0:10:12.679 --> 0:10:15.600 AI market, I mean, the overall AI market is growing 0:10:15.720 --> 0:10:19.480 so fast there is no one solution fits all. Actually, 0:10:19.520 --> 0:10:23.479 you know, you do have different workloads will be optimized 0:10:24.679 --> 0:10:28.160 with different hardware. So I think we have a tremendous opportunity. 0:10:28.200 --> 0:10:31.320 I think we're very excited about the overall market growth. 0:10:31.640 --> 0:10:34.960 And then as more customers get a chance to use 0:10:35.640 --> 0:10:39.400 our AMD Instinct roadmap, I think we're getting very positive feedback. 0:10:39.679 --> 0:10:42.000 Lisa, you address head on the call. I think that 0:10:42.080 --> 0:10:45.720 the investment cycle for AI has legs, it will continue, 0:10:45.720 --> 0:10:48.240 but just interesting what you just said can you kind 0:10:48.240 --> 0:10:50.840 of a portion of how much of that spend or 0:10:50.880 --> 0:10:54.920 investment is going to training versus inference at this stage. 0:10:56.280 --> 0:10:56.559 Yeah. 0:10:56.600 --> 0:11:00.480 Absolutely, So when we look at this cycle, ed, you know, 0:11:00.480 --> 0:11:02.240 you and I have talked about this before. I mean, 0:11:02.240 --> 0:11:06.800 we're forecasting that the overall market for AI accelerators when 0:11:06.800 --> 0:11:08.920 you look out and let's call it twenty seven, twenty 0:11:08.920 --> 0:11:11.440 eight and beyond time frame, you know, will you know, 0:11:11.520 --> 0:11:13.960 be you know, four hundred billion dollars plus, which is 0:11:14.080 --> 0:11:15.760 you know, huge market overall. 0:11:16.280 --> 0:11:16.920 I think in. 0:11:16.840 --> 0:11:18.800 That you're gonna need a lot of training and you're 0:11:18.800 --> 0:11:21.360 gonna need a lot of inference. You know, today I 0:11:21.400 --> 0:11:24.080 would say that, you know, most people would say that 0:11:24.120 --> 0:11:26.840 you're building foundation with training. So training is a place 0:11:26.880 --> 0:11:29.560 where you know, you want the largest models uh to 0:11:29.679 --> 0:11:33.760 really be capable of uh uh you know, of using 0:11:33.840 --> 0:11:37.319 all of the large data infrastructure. But going forward, you 0:11:37.360 --> 0:11:41.760 would expect that, you know, inference demand will actually surpass training. 0:11:42.240 --> 0:11:44.280 Most people believe that, and you know, I think this 0:11:44.360 --> 0:11:46.680 isn't this. You know, we'll see how this plays out 0:11:47.360 --> 0:11:49.559 over the next couple of years. But you're going to 0:11:49.640 --> 0:11:53.040 need technology for both training and inference. And at the 0:11:53.120 --> 0:11:54.720 end of the day, You're also going to have a 0:11:54.800 --> 0:11:57.800 very diverse set of models and a very diverse set 0:11:57.840 --> 0:12:00.960 of needs. So you have the largest found national models 0:12:01.240 --> 0:12:03.760 out there, but then you also have you know, many 0:12:03.880 --> 0:12:07.000 enterprises our training on their own data and they'll use 0:12:07.440 --> 0:12:10.640 you know, sort of a different type of infrastructure for that. 0:12:11.120 --> 0:12:15.640 Lisa, what's actually being done to address the supply constraints 0:12:15.679 --> 0:12:18.760 such as they are that the impact your abilities with 0:12:18.960 --> 0:12:21.760 I three hundred, Well, you know. 0:12:21.720 --> 0:12:25.120 I would say overall, when you look at the semiconductor 0:12:25.160 --> 0:12:28.680 supply chain, it's been amazing. I mean, we have substantially 0:12:29.520 --> 0:12:33.280 increased the overall capacity as an industry to address this 0:12:33.480 --> 0:12:36.679 very high AI demand. We've also addressed from an a 0:12:36.760 --> 0:12:41.960 MD standpoint, our supply chain has been expanding every quarter. 0:12:42.160 --> 0:12:44.199 You know, we announced in the second quarter that we 0:12:44.240 --> 0:12:47.440 did over a billion dollars of revenue in you know 0:12:47.480 --> 0:12:50.920 AI accelerators, which is a fantastic number. We see that 0:12:51.080 --> 0:12:53.640 increasing every quarter as we go into the second half 0:12:53.679 --> 0:12:56.120 of the year. The supply chain will continue to be 0:12:56.200 --> 0:12:58.920 tight as we go into twenty twenty five, and that 0:12:59.040 --> 0:13:00.640 just says a bit of about just how. 0:13:00.600 --> 0:13:01.960 Much demand there is out there. 0:13:02.480 --> 0:13:05.160 We have great partnerships with our supply chain partners, and 0:13:05.200 --> 0:13:08.560 we're working on expanding that as fast as possible. 0:13:09.240 --> 0:13:11.920 Lisa that the dominant player in the market for AI 0:13:11.960 --> 0:13:15.240 accelerators that go in Stata centers is committed to this 0:13:15.360 --> 0:13:19.320 cadence of essentially a new generation of chip annually. What 0:13:19.360 --> 0:13:22.559 does AMD do to compete with that and develop new 0:13:22.600 --> 0:13:23.640 products going forward? 0:13:25.040 --> 0:13:27.400 Well ed, what we see in the market, you know, 0:13:27.520 --> 0:13:32.080 spending time with you know, the industry leaders, is this 0:13:32.160 --> 0:13:34.800 market is moving so fast that you have to be 0:13:34.840 --> 0:13:38.439 on an annual cadence. So we announced last month that 0:13:38.760 --> 0:13:41.200 we have accelerated and expanded our roadmap. 0:13:41.440 --> 0:13:43.440 You'll see us later this year. 0:13:43.480 --> 0:13:47.320 We're going to launch our MI I three twenty five series, 0:13:47.520 --> 0:13:50.880 which is the next next step in our roadmap. Next 0:13:51.080 --> 0:13:54.040 year in twenty twenty five, will launch our Mi I 0:13:54.120 --> 0:13:57.800 three fifty series, which is a brand new architecture. And 0:13:57.840 --> 0:14:01.600 we're already well on our way to four hundred series, 0:14:02.000 --> 0:14:04.200 which we'll launch in twenty twenty six. So we are 0:14:04.240 --> 0:14:07.360 on an annual cadence. Not only that, it's not just 0:14:07.480 --> 0:14:10.720 about the accelerator, you know, you know, CPUs continue to 0:14:10.760 --> 0:14:14.679 be very very important. We see that overall networking continues 0:14:14.720 --> 0:14:18.400 to be very important. Overall system capability is also very important, 0:14:18.679 --> 0:14:21.680 and we are investing in bringing all of those capabilities 0:14:21.680 --> 0:14:25.840 together to really help our customers with the best infrastructure, 0:14:26.240 --> 0:14:27.600 you know, for their AI workloads. 0:14:27.840 --> 0:14:30.040 Lisa, what I love about the Bloomberg Technology audience is 0:14:30.040 --> 0:14:31.520 there's gonna be a big body of people out there 0:14:31.520 --> 0:14:34.560 who think a MD and they think PC and gaming. 0:14:34.760 --> 0:14:37.080 You know, that's kind of the reality of it. You 0:14:37.160 --> 0:14:40.120 painted this kind of positive picture for PC, at least 0:14:40.320 --> 0:14:42.760 for your company in the second half of the year. 0:14:43.080 --> 0:14:46.360 Is that a story of a market recovery and broadly 0:14:46.440 --> 0:14:50.000 the market doing well or is AMD doing something specific 0:14:50.360 --> 0:14:52.040 to outperform in that environment. 0:14:53.280 --> 0:14:54.640 Yeah, we see a couple of things. 0:14:54.840 --> 0:14:54.880 Ed. 0:14:55.120 --> 0:14:57.520 First of all, the PC market is a good market. 0:14:57.600 --> 0:14:59.600 You know, the second half of the year is typically 0:14:59.640 --> 0:15:02.720 strong than the first half. Anyways, from a market standpoint, 0:15:03.240 --> 0:15:06.000 we see some positive signs in the market. I will 0:15:06.000 --> 0:15:11.080 say I'm very excited about AIPCS. I view AIPCS as 0:15:11.360 --> 0:15:14.200 an inflection point for what PCs can do in all 0:15:14.240 --> 0:15:17.120 of our daily lives, whether you're talking about a corporate 0:15:17.200 --> 0:15:21.200 environment or a consumer home environment. So that's a positive. 0:15:21.520 --> 0:15:24.280 I think we are also just launching a whole new 0:15:24.320 --> 0:15:26.600 generation of chips. You know, we call it our Zen 0:15:26.680 --> 0:15:31.280 five family, both notebooks and desktops. They are fantastic. We're 0:15:31.360 --> 0:15:34.480 really happy with the reception for those, and so we 0:15:34.560 --> 0:15:38.000 see that as an opportunity. That is, you know, our 0:15:38.080 --> 0:15:41.960 product roadmap. Launching usually gives us a lift into the 0:15:42.000 --> 0:15:43.920 second half of the year and then you know, in 0:15:43.960 --> 0:15:46.120 the medium term, you know, going into twenty twenty five, 0:15:46.160 --> 0:15:48.960 you're going to see a lot more aipcs. You're also 0:15:49.040 --> 0:15:52.240 going to see you know, we believe in enterprise refresh cycle. 0:15:52.360 --> 0:15:54.960 So I think there are positive indicators for the PC market, 0:15:55.320 --> 0:15:56.120 you know, going forward. 0:15:56.320 --> 0:15:57.920 Would you be able to give me some sort of 0:15:57.920 --> 0:16:02.320 forward looking commentary on the gaming business, in particular when 0:16:02.360 --> 0:16:03.680 that might see some improvement. 0:16:04.880 --> 0:16:07.040 Yeah, I mean, let me talk a little bit about gaming. 0:16:07.400 --> 0:16:09.120 You know, first of all, the gaming segment is a 0:16:09.160 --> 0:16:13.120 great segment. You know, we truly you know, value the 0:16:13.160 --> 0:16:16.560 strong partnerships we have with the market leaders like Microsoft 0:16:16.600 --> 0:16:18.880 and Sony in the in the console cycle. 0:16:19.200 --> 0:16:21.640 Now, typically these console cycles. 0:16:21.600 --> 0:16:24.320 You know, do have an EBB and a flow, and 0:16:24.360 --> 0:16:27.160 so we're in the second half of the console cycle, 0:16:27.200 --> 0:16:28.880 let's call it the fifth year, and so we do 0:16:29.040 --> 0:16:31.280 we have seen a decline in revenue. I think that 0:16:31.400 --> 0:16:34.480 was very much as expected. We would expect that, you know, 0:16:34.520 --> 0:16:37.360 it would take until the next refresh cycle for you 0:16:37.400 --> 0:16:39.800 to see a substantial change in that. 0:16:39.880 --> 0:16:42.400 But this is very much a market that. 0:16:42.440 --> 0:16:46.040 We know, we love, and we believe has you know, 0:16:46.160 --> 0:16:48.160 great you know, long term alignment. 0:16:48.480 --> 0:16:50.200 You know, with our roadmap and our. 0:16:50.080 --> 0:16:53.680 IP Lisa, I acknowledge you've kind of had a very 0:16:53.720 --> 0:16:55.760 busy twenty twenty four. You spend a lot of time 0:16:55.760 --> 0:16:58.920 on aeroplanes. I think about computex in particular. 0:17:00.040 --> 0:17:00.400 All day. 0:17:00.440 --> 0:17:02.720 You were on stage with a number of partners, and 0:17:03.280 --> 0:17:05.639 we talk just now about the sort of legacy gaming 0:17:05.680 --> 0:17:08.800 and PC business. I just wondered if you have any 0:17:08.840 --> 0:17:10.760 sort of evidence or data you can give me that 0:17:10.840 --> 0:17:14.960 those partners are putting a MD into sales channels where 0:17:15.000 --> 0:17:17.600 you might not have any experience, for example, like in 0:17:17.640 --> 0:17:21.120 the public sector or selling your technology to governments rather 0:17:21.160 --> 0:17:22.720 than just the hyperscalers. 0:17:23.480 --> 0:17:23.960 Yeah. 0:17:24.080 --> 0:17:26.639 Yeah, that's a great question. First of all, you know, 0:17:27.240 --> 0:17:30.399 we love our partnerships, ed. I think partnerships are you know, 0:17:30.440 --> 0:17:33.600 what makes this industry truly special. Right, every company has 0:17:33.960 --> 0:17:36.440 their secret sauce, their great product. But when you put 0:17:36.440 --> 0:17:40.399 it together and really bring the best of you know, 0:17:40.480 --> 0:17:43.960 the the industry together. Is when you get the you know, 0:17:44.000 --> 0:17:47.280 the great payoff when you look at our business. First 0:17:47.280 --> 0:17:49.120 of all, you know, let me talk a little bit 0:17:49.200 --> 0:17:53.840 about our enterprise server business. I'm super pleased to see 0:17:53.840 --> 0:17:56.560 the progress that we're making there. When you think about 0:17:56.680 --> 0:17:59.960 you know, the server CPU market, let's call it, you know, 0:18:00.720 --> 0:18:04.520 outside of AI, there's a whole set of workloads that 0:18:04.800 --> 0:18:09.200 need the best you know, general purpose computing. That's what 0:18:09.240 --> 0:18:12.399 we have with our you know, fourth generation EPIC, and 0:18:12.440 --> 0:18:16.360 we just launched our fifth generation you know EPIC. Previewed 0:18:16.359 --> 0:18:20.840 our fifth generation EPIC as well, very very important you 0:18:20.880 --> 0:18:24.480 know foundation for you know, these enterprise data centers. We 0:18:24.600 --> 0:18:27.520 made substantial progress here in the first half of the year. 0:18:27.840 --> 0:18:30.960 I would say one third of our new design wins 0:18:31.000 --> 0:18:33.680 are actually from customers that I've never used a m 0:18:33.760 --> 0:18:36.520 D before. So this that's exactly what you said is, 0:18:36.800 --> 0:18:38.720 you know, as we introduce a m D more to 0:18:39.119 --> 0:18:43.399 the broader enterprise, you know customers, we're seeing great traction 0:18:43.760 --> 0:18:46.480 primarily because we have you know, the best performance per 0:18:46.520 --> 0:18:49.160 dollar and the best performance per WAT you know out there. 0:18:49.280 --> 0:18:52.919 So we do see a tremendous opportunity in the enterprise market, 0:18:53.040 --> 0:18:57.240 both on the traditional compute side as well as AI 0:18:57.600 --> 0:18:59.000 as well as a I p C. 0:18:59.280 --> 0:19:01.879 So all of those are great opportunities. 0:19:02.119 --> 0:19:04.080 Lisa, I know you've got to go to your next meeting, 0:19:04.119 --> 0:19:06.920 so very quickly. What's the talent story for AMD in 0:19:07.000 --> 0:19:07.960 getting the best people? 0:19:09.160 --> 0:19:12.159 We are very very happy with the talent story, and 0:19:12.280 --> 0:19:15.840 we have a tremendous engineering team. They're doing great things 0:19:15.880 --> 0:19:19.040 on hardware and software. And we just announced our intent 0:19:19.119 --> 0:19:24.399 to acquire a fantastic AI company, Silo AI, that's based 0:19:24.400 --> 0:19:27.760 in Europe that also adds great talent to the company. 0:19:27.880 --> 0:19:29.800 So this is a war for talent, and I would 0:19:29.800 --> 0:19:31.200 say we're very happy. 0:19:30.840 --> 0:19:35.400 With the great engineering capabilities that we have to move 0:19:35.440 --> 0:19:36.320 the road map forward. 0:19:36.480 --> 0:19:38.719 AMD CEO, Lisa, So it's great to have you here. 0:19:38.760 --> 0:19:41.520 Back on Bloomberg Technology, Thank you. Okay, let's get back 0:19:41.560 --> 0:19:43.720 quickly and check in on Microsoft. This is what shares 0:19:43.760 --> 0:19:46.520 look like. Top line growth of twenty nine percent for 0:19:46.560 --> 0:19:49.239 Azure missed estimates of thirty one percent. There was an 0:19:49.240 --> 0:19:52.480 eight percent contribution from AI, but there's a concern about 0:19:52.520 --> 0:19:54.560 the spend they had to make to get there. We're 0:19:54.560 --> 0:19:57.199 also going to get a look at meta results tonight 0:19:57.320 --> 0:20:00.520 after the market close in the United States. The stock 0:20:00.640 --> 0:20:02.920 kind of buoyant, and you think about the read through. 0:20:03.119 --> 0:20:05.480 Let's see what happens. Coming up on the program, We're 0:20:05.480 --> 0:20:07.159 gonna have more on earnings. We're going to discuss a 0:20:07.200 --> 0:20:11.439 story about Uber and BYD's new partnership, and a whole 0:20:11.640 --> 0:20:13.760 lot more. Take a break, take a breath, will be 0:20:13.840 --> 0:20:24.560 right back. This is Bloomberg Technology. Uber and China's BYD 0:20:24.760 --> 0:20:27.960 are teaming up to bring one hundred thousand electric vehicles 0:20:27.960 --> 0:20:30.159 to the ride heiling app, starting off in Europe and 0:20:30.200 --> 0:20:34.720 Latin America before expanding elsewhere, not the United States. Joining 0:20:34.760 --> 0:20:38.120 US is Bloomberg Intelligence analysts Man Deep saying, I find 0:20:38.119 --> 0:20:42.880 this fascinating. The idea in the first instances EV availability 0:20:42.920 --> 0:20:44.720 to gig economy drivers on the platform. 0:20:44.760 --> 0:20:45.600 What did you make of it? 0:20:46.000 --> 0:20:48.320 Yeah, I mean, look, Uber has so far done a 0:20:48.359 --> 0:20:51.960 great job of establishing a network outside the US, and 0:20:52.000 --> 0:20:55.119 obviously they don't have access to the China market. So 0:20:55.200 --> 0:20:58.600 these are the parkets where it has the number one position, 0:20:58.840 --> 0:21:01.120 and you know, moving to the the EV side makes 0:21:01.119 --> 0:21:04.320 a ton of sense. So clearly Tesla is in partnering 0:21:04.400 --> 0:21:06.560 with them. I mean, we know Tesla wants to go 0:21:06.640 --> 0:21:09.840 to robotaxis through their own app. They're not looking to 0:21:10.000 --> 0:21:13.000 use one of these right sharing guys. And I think 0:21:13.000 --> 0:21:16.800 it makes sense for Uber to collaborate with all these OEMs, 0:21:16.960 --> 0:21:19.720 whether it's BYD or Kia or anyone or. 0:21:19.800 --> 0:21:20.760 Just real quick collaborate. 0:21:20.920 --> 0:21:23.880 No financial terms between the two companies disclosed. I found 0:21:23.880 --> 0:21:29.200 the autonomous paragraph very important. You know, BYD's future autonomous 0:21:29.200 --> 0:21:32.600 capabilities on the Uber platform, you know about my reporting 0:21:32.640 --> 0:21:36.280 on robotaxi with Tesla. That seems like a response, right, 0:21:36.359 --> 0:21:38.560 This is acknowledging the market state of affairs. 0:21:38.760 --> 0:21:41.560 It is, but I mean, look, all these companies are 0:21:41.600 --> 0:21:44.600 behind Tesla and veim or when it comes to developing 0:21:44.600 --> 0:21:48.840 the software capabilities for autonomous driving. So I would still 0:21:48.880 --> 0:21:54.159 say Uber doesn't have the platform to have, you know, robotaxis, 0:21:54.480 --> 0:21:57.200 because all these companies just aren't there when it comes 0:21:57.240 --> 0:21:58.880 to the software development. 0:21:58.920 --> 0:21:59.919 Mande. Let's talk about Mike. 0:22:00.720 --> 0:22:02.880 I think we know the Microsoft story right, Slower than 0:22:03.320 --> 0:22:06.920 hoped for growth on asual cloud services in AI and Capex. 0:22:07.200 --> 0:22:09.040 There was something Amy Hood said on the call that 0:22:09.440 --> 0:22:12.440 I just saw straight away that I don't see being discussed, 0:22:12.480 --> 0:22:16.919 which is a fifteen year time horizon to monetize the CAPEX. 0:22:17.560 --> 0:22:19.040 That's a bit of a clue of how long this 0:22:19.080 --> 0:22:21.440 is going to take to be real, right, Yeah. 0:22:21.240 --> 0:22:24.200 And look, all these chips are changing. So with Nvidia 0:22:24.320 --> 0:22:27.720 coming up with their latest architecture, they talked about shipping Blackwell. 0:22:27.920 --> 0:22:31.360 Imagine if you are a consumer of these AI services, 0:22:31.480 --> 0:22:34.320 you want access to the latest chips, and so that 0:22:34.440 --> 0:22:38.800 automatically drives a compression to you know, your cloud workloads 0:22:38.800 --> 0:22:42.000 that are that are using the earlier version of the chips. 0:22:42.040 --> 0:22:44.159 So I think that's what we saw in the print. 0:22:44.359 --> 0:22:47.840 Like you know, there was some sort of substitution going 0:22:47.840 --> 0:22:50.960 on in terms of CPU to more GPUs and also 0:22:51.040 --> 0:22:53.240 the pricing compression from the latest. 0:22:52.960 --> 0:22:53.879 Version of the chips. 0:22:53.920 --> 0:22:56.000 I don't know who badged out of Bloomberg's world, like 0:22:56.119 --> 0:22:58.360 quarters first last night, me or you, but we got 0:22:58.359 --> 0:23:01.520 another long day today and I think Meta probably the focus. 0:23:01.800 --> 0:23:04.600 What's the Bloomberg Intelligence expectation for this quarter? 0:23:04.920 --> 0:23:07.040 I mean, you want to see top line growth in 0:23:07.080 --> 0:23:10.040 excess of twenty percent, and remember the comps get tougher 0:23:10.080 --> 0:23:10.920 in the second half. 0:23:10.920 --> 0:23:12.480 So this is the last quarter which is they had 0:23:12.480 --> 0:23:14.120 such a great year last year exactly. 0:23:13.840 --> 0:23:16.560 In the second half, and so clearly you want to 0:23:16.600 --> 0:23:20.960 see ad pricing continue to trend higher. Pinterest wasn't very 0:23:20.960 --> 0:23:23.520 convincing last night in terms of that ad pricing, and 0:23:23.600 --> 0:23:28.159 given Meta has the most GPU allocation, they should They 0:23:28.160 --> 0:23:30.600 are the biggest deployers it. 0:23:30.800 --> 0:23:31.800 That's the thing, just real quick. 0:23:31.840 --> 0:23:34.920 We know they're buying that volume of h one hundreds, 0:23:34.920 --> 0:23:37.400 we know the capex commitment. So what is it they're 0:23:37.400 --> 0:23:39.639 going to have to do to tell the market with 0:23:40.000 --> 0:23:41.800 this is a success for us in AI and. 0:23:42.080 --> 0:23:43.760 They don't have a cloud revenue. 0:23:43.760 --> 0:23:46.159 That's five billion dollars rounder it coming from AI, So 0:23:46.200 --> 0:23:48.960 it has to reflect in that ad pricing and AD 0:23:49.000 --> 0:23:51.359 revenue and you want to see that. Woman, I'm the 0:23:51.440 --> 0:23:52.840 twenty percent plus growth rate. 0:23:53.040 --> 0:23:56.000 Man Deep saying, senior analyst of Bloomberg Intelligence. It's so 0:23:56.080 --> 0:23:57.640 awesome to be here next to you in. 0:23:57.640 --> 0:23:58.320 New York City. 0:24:06.400 --> 0:24:09.520 Welcome back to Bloomberg Technology, Ed Lovelow in New York City. 0:24:10.040 --> 0:24:13.320 This is what the names reporting after market clothes are 0:24:13.359 --> 0:24:16.840 currently doing. Chip stocks are buoyant, partly because of AMD's earnings, 0:24:16.880 --> 0:24:20.080 partly because in Vidia's a top pick at Morgan Stanley 0:24:20.280 --> 0:24:22.679 and that stock is going off like a rocket this morning. 0:24:22.880 --> 0:24:24.320 But there are some other stories. You just got the 0:24:24.359 --> 0:24:26.560 lowdown on meta from Bloomberg's man Deep Singh. 0:24:26.800 --> 0:24:28.439 Basically, how does all. 0:24:28.280 --> 0:24:32.320 The investment in AI infrastructure translate to advertising pricing, Because 0:24:32.320 --> 0:24:33.960 at the end of the day, they don't have a 0:24:34.000 --> 0:24:36.600 cloud business. There's still a social media platform with a 0:24:36.640 --> 0:24:39.520 lot of other stuff going off. One mover to the 0:24:39.520 --> 0:24:42.800 downside in earnings is Pinterest. It's off by more than 0:24:42.840 --> 0:24:46.360 thirteen percent. They gave this guidance on revenue R sales 0:24:46.800 --> 0:24:49.280 for the third quarter, top end of the range nine 0:24:49.400 --> 0:24:51.840 hundred million, but even the top end of the range 0:24:52.160 --> 0:24:55.200 was below street estimates. Now, what's also interesting about pinterest 0:24:55.480 --> 0:24:58.240 is the size of its user base, so many stories 0:24:58.280 --> 0:25:02.080 within that. It's bringing CEO Interest Bill ready for more 0:25:02.160 --> 0:25:04.080 and Bill, good morning to you. Thank you for joining 0:25:04.160 --> 0:25:07.880 us here on Bloomberg Technology. Let's start with that guidance, 0:25:07.960 --> 0:25:11.439 get it done. What were the factors behind the range, 0:25:11.640 --> 0:25:13.800 which again it's below street estimates. 0:25:14.600 --> 0:25:16.600 Sure, yeah, I mean if you look at Q two, 0:25:17.080 --> 0:25:18.960 you know we put up record user growth. 0:25:19.160 --> 0:25:20.919 We hit a new all time high end users. 0:25:21.400 --> 0:25:24.000 We came in above our guidance on revenue twenty one 0:25:24.000 --> 0:25:26.800 percent plus revenue growth with six inser basis points of 0:25:26.800 --> 0:25:29.320 margin expansion. So Q two is a really strong quarter. 0:25:29.720 --> 0:25:31.199 As we look ahead to Q three, we have a 0:25:31.240 --> 0:25:34.720 five point tougher comps. We're laughing lapping much tougher comps, 0:25:34.920 --> 0:25:36.639 and you saw that from some of our larger peers 0:25:36.680 --> 0:25:39.280 as well. But when you step back from that, you 0:25:39.320 --> 0:25:41.240 know we're growing faster than our larger peers that have 0:25:41.280 --> 0:25:45.359 already reported. We're seeing our best product market fit in years. 0:25:45.840 --> 0:25:48.359 Gen Z's our largest fastest growing audience, and we're winning 0:25:48.359 --> 0:25:50.879 share of wallet with some of the largest, most sophisticated 0:25:50.880 --> 0:25:53.960 advertisers out there. So the fundamentals of the business are 0:25:54.000 --> 0:25:56.840 all really sound and we feel great about those and 0:25:56.880 --> 0:26:00.840 as we guided forward, it's relatively consistent growth with where 0:26:00.840 --> 0:26:05.600 we've been once you adjust for currency fluctuations, despite the 0:26:05.600 --> 0:26:07.560 fact that we have a five point tougher comp So 0:26:07.600 --> 0:26:09.240 I think you saw that in some of the reactions 0:26:09.240 --> 0:26:12.240 on our larger peers. I think you're seeing some of 0:26:12.280 --> 0:26:14.119 that here as well. But if you pull back from it, 0:26:14.119 --> 0:26:17.840 the fundamentals of business have never been better. For Pinterest Bill. 0:26:17.680 --> 0:26:20.320 Something you told my colleagues at Bloomberg News is that 0:26:20.640 --> 0:26:23.479 historically Pinterest is a great place for windows shopping. But 0:26:23.520 --> 0:26:25.640 I think the quote is that all the stores were 0:26:25.680 --> 0:26:28.080 closed helped me understand that. 0:26:28.880 --> 0:26:31.360 Yeah, so, you know, I came in two years ago 0:26:32.240 --> 0:26:36.480 and at that time Pinterest was primarily about browsing and 0:26:36.560 --> 0:26:38.440 there weren't a lot of clicks and conversions to speak 0:26:38.480 --> 0:26:41.919 of for advertisers. We've made tremendous progress in making it 0:26:41.960 --> 0:26:44.560 so that users can actually take action on the things 0:26:44.560 --> 0:26:47.040 they find on Pinterest, and this has been right at 0:26:47.040 --> 0:26:50.840 the core of how we've accelerated user growth. Last time 0:26:50.920 --> 0:26:53.600 I was on the show last quarter, we talked about 0:26:53.640 --> 0:26:56.840 seven consecutive quarters of accelerating user growth. We put up 0:26:56.840 --> 0:27:00.199 consistent performance to that on users again this quarter, and 0:27:00.240 --> 0:27:02.600 at the core of that is that actionability. And not 0:27:02.640 --> 0:27:05.920 only do users love that actionability. You know, Pinterest is 0:27:05.920 --> 0:27:09.560 where gen Z goes to shop, but it's great for advertisers. 0:27:09.640 --> 0:27:12.080 This is our third quarter in a row of more 0:27:12.119 --> 0:27:14.840 than doubling the number of clicks we sent to advertisers 0:27:14.960 --> 0:27:17.320 year on year, which is why you see us gaining 0:27:17.359 --> 0:27:20.399 share with the largest, most sophisticated retailers out there that 0:27:20.440 --> 0:27:22.760 are increasing share of wallet with Pinterest, and we're seeing 0:27:22.800 --> 0:27:25.240 that start to take hold across retail, which we cited 0:27:25.280 --> 0:27:27.320 as a place of broad strength for us and a 0:27:27.400 --> 0:27:29.600 driver of our really strong result in Q two, and 0:27:29.600 --> 0:27:31.480 the we're excited by as we look ahead, Bill. 0:27:31.359 --> 0:27:34.360 Just really quick, because you're talking about your user base, right, 0:27:34.400 --> 0:27:37.400 So we've just shown a graphic that shows the scale. 0:27:37.760 --> 0:27:39.840 Forty percent of that is gen Z And there's always 0:27:39.880 --> 0:27:43.399 a question about the actions that audience takes, right, do 0:27:43.440 --> 0:27:47.080 they actually buy anything having spent time on the platform. 0:27:47.440 --> 0:27:47.680 Yeah. 0:27:47.720 --> 0:27:50.080 Absolutely. I think this is you know two things I'd 0:27:50.080 --> 0:27:53.520 say about gen Z. One, they're the taste makers for 0:27:53.680 --> 0:27:56.560 you know, the next generation. So pinterst is really unique. 0:27:56.560 --> 0:27:59.160 And it's not just the people shop on Pinterest. People 0:27:59.280 --> 0:28:02.119 curate their taese on Pinterest. It's a completely unique behavior 0:28:02.119 --> 0:28:04.360 on Pinterest relatives to the rest of social media, where 0:28:04.359 --> 0:28:06.720 people are planning outfits and planning what they're going to 0:28:06.720 --> 0:28:09.160 buy long before they do it. And so that gives 0:28:09.240 --> 0:28:12.200 us really rich signal to feed our AI for recommendations, 0:28:12.600 --> 0:28:15.439 and so that taste making that happens is not just 0:28:15.520 --> 0:28:18.400 good for gen Z, but they're the taste makers for 0:28:18.440 --> 0:28:21.640 the next older generations, where we deliver more relevant recommendations there. 0:28:22.160 --> 0:28:24.600 And then to your point on gen Z buying, Yes, 0:28:24.880 --> 0:28:27.000 Penterest is where gen Z goes to shop and we 0:28:27.040 --> 0:28:29.840 see that same behavior that you know gen Z. Yes, 0:28:29.880 --> 0:28:32.320 it spans teenagers, but also spans all the way up 0:28:32.359 --> 0:28:34.479 through you know, recent college grads and people that are 0:28:34.480 --> 0:28:37.159 in their first jobs and their first apartments, and so 0:28:37.200 --> 0:28:41.000 we see a lot of shopping behavior there and it's 0:28:41.040 --> 0:28:43.440 really consistent across demographics on the platform. 0:28:43.520 --> 0:28:47.920 Bill Pinterest does not sell political advertisements. Are you able 0:28:47.960 --> 0:28:50.960 to kind of quantify the impact of that policy in 0:28:51.040 --> 0:28:52.400 terms of a missed opportunity? 0:28:53.520 --> 0:28:54.760 Yeah, it's a great question. 0:28:54.920 --> 0:28:57.120 You know, we've done a number of things to invest 0:28:57.200 --> 0:28:59.600 in the positivity of the platform that if you look 0:28:59.600 --> 0:29:02.239 at them on a short term optimization, you know, like 0:29:02.280 --> 0:29:03.720 political ads, you could say, Okay, there'll be a lot 0:29:03.760 --> 0:29:06.360 of money spent on political ads over the over the 0:29:06.400 --> 0:29:11.840 coming quarter. However, we don't take that money because we 0:29:11.920 --> 0:29:14.600 see that that's an investment in the long term health 0:29:14.600 --> 0:29:15.440 of our platform. 0:29:15.920 --> 0:29:17.200 As we're winning with gen Z. 0:29:17.840 --> 0:29:20.800 One of the top reasons gen Z sites as why 0:29:20.840 --> 0:29:22.600 they come to pinterest is they see it as an 0:29:22.600 --> 0:29:26.200 oasis away from the toxicity they experience elsewhere on social media. 0:29:26.320 --> 0:29:29.280 So as we've done things like making Pinterest private only 0:29:29.320 --> 0:29:32.280 for under sixteen, we've actually seen that come through and 0:29:32.400 --> 0:29:34.720 drive user growth and engagement for us, and we're seeing 0:29:34.760 --> 0:29:38.280 it cut through with advertisers too, where advertisers also want 0:29:38.320 --> 0:29:41.200 to be in a brand safe environment. Brands are built 0:29:41.200 --> 0:29:43.800 on positivity, and brands don't want to show up next 0:29:43.840 --> 0:29:47.720 to negative, polarizing content. And so you know, yes, there'll 0:29:47.760 --> 0:29:49.320 be a lot of money spent on political ads, but 0:29:49.360 --> 0:29:51.800 we're consciously choosing not to take those because we think 0:29:51.840 --> 0:29:54.120 that's in the long term interest of our platform for 0:29:54.160 --> 0:29:55.760 both users and advertisers. 0:29:55.920 --> 0:29:58.040 Bill, let's talk about osificial intelligence, but I think some 0:29:58.120 --> 0:30:02.320 granularity is important. So wah large language models or partners 0:30:02.360 --> 0:30:04.320 and you're building on top of and you're able to 0:30:04.320 --> 0:30:07.600 give a sense of the specific AI spend that's related 0:30:07.640 --> 0:30:11.080 to kind of add targeting and add improvement, bit pricing 0:30:11.160 --> 0:30:11.800 or something else. 0:30:12.440 --> 0:30:15.360 Yeah, this is AI is a core competency for us. 0:30:15.680 --> 0:30:18.360 I've talked about on prior earnings calls where when you 0:30:18.400 --> 0:30:20.960 look at the fact that we're not only growing users 0:30:21.000 --> 0:30:24.360 at record levels, we're actually deepening engagement per user. A 0:30:24.360 --> 0:30:26.680 big part of that is on the increasing relevancy of 0:30:26.720 --> 0:30:29.240 our recommendations, and so I shared on a prior call 0:30:29.800 --> 0:30:33.640 that through large language models, we saw a ten percentage 0:30:33.680 --> 0:30:36.360 point lift and the relevancy of our recommendations. 0:30:37.200 --> 0:30:39.320 That's really really encouraging. 0:30:39.320 --> 0:30:40.840 It is why users are coming back to finding more 0:30:40.840 --> 0:30:43.080 of what they're looking for on pinterest. But to your 0:30:43.160 --> 0:30:46.720 question on spend, we've also delivered really great margin expansion 0:30:46.800 --> 0:30:48.960 this past quarter, even as we were investing in AI, 0:30:49.320 --> 0:30:52.080 we delivered six hundred basis points of margin expansion and 0:30:52.120 --> 0:30:54.680 you've seen that consistently over the last two years. And 0:30:54.720 --> 0:30:57.600 the reason for that is that we're delivering great user 0:30:57.640 --> 0:31:00.200 engagement from the AI, but it's user engagement that is 0:31:00.280 --> 0:31:02.880 highly monetizable. More than half the users on pinterests are 0:31:02.880 --> 0:31:06.720 there to shop, so we're turning that AI investment into 0:31:06.880 --> 0:31:10.480 really great return through higher engagement, and then advertisers want 0:31:10.520 --> 0:31:12.600 to meet those users where they're shopping, and that's driving 0:31:13.120 --> 0:31:14.880 acceleration and AdSpend for us. 0:31:15.040 --> 0:31:16.400 And so you've seen that in the results. 0:31:16.400 --> 0:31:19.000 But we're really finding that we can deliver great return 0:31:19.120 --> 0:31:22.120 on our AI investments, and we have really unique signal. 0:31:22.240 --> 0:31:24.520 I think this is one thing that is underappreciated across 0:31:24.520 --> 0:31:27.320 the industry, and so much like cloud commuting. 0:31:27.560 --> 0:31:29.200 Much like cloud computing, I. 0:31:29.120 --> 0:31:31.880 Think everyone have access to basic building blocks, but who 0:31:31.880 --> 0:31:34.400 has really unique signal? And the curation of shopping behavior 0:31:34.440 --> 0:31:36.479 on Pinterest gives us really unique signal to feed our 0:31:36.520 --> 0:31:37.440 AI bill. 0:31:37.920 --> 0:31:40.200 The stock's down significantly in the session. It's down sort 0:31:40.200 --> 0:31:42.360 of twelve percent year to date, that big year last year, 0:31:42.440 --> 0:31:44.640 I think more than fifty percent gain in the stock. 0:31:44.960 --> 0:31:47.280 You're two years into this job, So what's the biggest 0:31:47.360 --> 0:31:49.800 action you've taken and one that you want to take. 0:31:50.960 --> 0:31:53.000 Yeah, so it's a great question, and I think you know, 0:31:53.240 --> 0:31:55.120 I certainly you don't like to see volatility, but we've 0:31:55.120 --> 0:31:57.920 seen volatility before. If you step back from it, we 0:31:58.000 --> 0:32:01.720 have consistently over the last two years or demonstrated steady 0:32:01.760 --> 0:32:05.760 progress and improving the overall health of the business on 0:32:05.760 --> 0:32:08.800 on top line, on bottom line, on user growth and engagement. 0:32:09.560 --> 0:32:12.200 You know, so that the fundamentals have are sound and improving, 0:32:12.240 --> 0:32:14.880 and we've delivered a say do ratio one on these 0:32:14.920 --> 0:32:16.880 things and we'll look to continue. 0:32:16.560 --> 0:32:18.719 To do that. The things have been the biggest drivers 0:32:18.720 --> 0:32:19.200 in the business. 0:32:19.280 --> 0:32:23.880 I would say one really investing in AI and the 0:32:23.920 --> 0:32:28.920 actionability on the platform via that AI, so relevancy, actionability, 0:32:29.280 --> 0:32:32.920 and then positivity in terms of delivering a safe space 0:32:32.960 --> 0:32:36.400 for our users. State is simply, you know, our users 0:32:36.520 --> 0:32:38.520 go to pinterest because it's a place they can invest 0:32:38.520 --> 0:32:42.880 in themselves without the sort of comparative performative nature you 0:32:42.920 --> 0:32:45.320 know that they experience on the rest of social media, 0:32:45.480 --> 0:32:47.280 and that's why they're there for that commercial intent. So 0:32:47.280 --> 0:32:48.880 we're going to continue to invest in those things. They're 0:32:48.920 --> 0:32:50.960 really working well for us. When you zoom out over 0:32:50.960 --> 0:32:53.400 the multi quarter period, you know, it's been a fundamental 0:32:53.480 --> 0:32:55.120 change introductory of the business, and we're going to keep 0:32:55.160 --> 0:32:57.040 investing in those things that are working because again, our 0:32:57.040 --> 0:32:58.920 fundamentals have never been healthier than what they are. 0:32:58.920 --> 0:33:01.400 And right now, CEO Bill Ready, thank you for coming 0:33:01.400 --> 0:33:02.720 back on Bloomberg Technology. 0:33:02.760 --> 0:33:03.080 Thank you. 0:33:03.120 --> 0:33:03.400 Okay. 0:33:03.440 --> 0:33:05.440 The other big story, of course is Microsoft and its 0:33:05.440 --> 0:33:09.720 cloud revenue slightly missing expectations, but my goodness, it's testing 0:33:09.720 --> 0:33:12.720 the patients of investors who are anxious to see that 0:33:12.760 --> 0:33:16.560 investment in AI payoff. That includes Miszuo his analysts. They're 0:33:16.600 --> 0:33:19.360 saying they're less excited about the near term and favoring 0:33:19.400 --> 0:33:22.400 a few other services like service Now or Oracle over 0:33:22.440 --> 0:33:24.880 the next couple of quarters, though the firm still reiterates 0:33:24.960 --> 0:33:27.640 a price target at four hundred and eighty dollars. On Microsoft, 0:33:27.680 --> 0:33:30.920 I want to bring in Daniel o'reagan, TMT Equity Trading 0:33:31.040 --> 0:33:33.800 MD and Missuo Americas. You know, I want to go 0:33:33.880 --> 0:33:35.600 back to what I was talking to man Deep sing 0:33:35.680 --> 0:33:38.800 about that comment on the on the call from cfo 0:33:38.880 --> 0:33:42.280 Amy heard at Microsoft saying to monetize all the investment 0:33:42.280 --> 0:33:45.360 in data center is a fifteen year timeline. 0:33:45.520 --> 0:33:46.720 How did you react to that? 0:33:48.600 --> 0:33:49.640 Well, thanks for having me. 0:33:50.240 --> 0:33:52.280 I actually thought they did an excellent job of really 0:33:52.360 --> 0:33:55.600 threading the needle, especially on the CAPEX side. I think 0:33:55.640 --> 0:33:57.959 what they did over and over again is really emphasize 0:33:58.000 --> 0:34:00.880 that this spending is going to be very, very meticulous, 0:34:01.160 --> 0:34:04.320 and what they did is it's predicated on demand. They 0:34:04.360 --> 0:34:07.720 constantly look for signals and spend accordingly. And again, a 0:34:07.760 --> 0:34:10.160 lot of these signals are near term, but a lot 0:34:10.160 --> 0:34:11.719 of them are very long term, with north of ten 0:34:11.760 --> 0:34:15.000 to fifteen year parameters. I think they're spending for the future, 0:34:15.040 --> 0:34:17.640 and I think they're going to maximize the opportunity. 0:34:18.280 --> 0:34:20.520 Management has said over and over again that. 0:34:20.480 --> 0:34:23.680 The risk of missing out on the AI trade greatly 0:34:23.719 --> 0:34:26.960 outweighs the risk of overspending. And I think they're excellent 0:34:27.000 --> 0:34:30.160 stewards of capital obviously, and I would trust them with 0:34:30.400 --> 0:34:31.640 whatever capex plans they have. 0:34:31.960 --> 0:34:35.400 Just really quick on Microsoft, you know, they seem a 0:34:35.440 --> 0:34:38.560 victim of you better not miss estimates at all in 0:34:38.600 --> 0:34:39.400 this environment. 0:34:39.520 --> 0:34:40.320 Is that fair? 0:34:42.040 --> 0:34:43.200 Yeah, it was definitely fair. 0:34:43.280 --> 0:34:46.040 So Azure grew thirty percent year of the year, which 0:34:46.080 --> 0:34:50.840 is absolutely tremendous for most companies, But considering that Microsoft 0:34:50.920 --> 0:34:53.000 is probably the second most crowded long and all of 0:34:53.000 --> 0:34:57.200 tech outside of Nvidia, it was a price to perfection 0:34:57.280 --> 0:35:00.040 even on this recent pullback, So again it was a 0:35:00.120 --> 0:35:02.319 the low end of guidance. They put out thirty to 0:35:02.360 --> 0:35:04.640 thirty one. We heard that the byside was closer to 0:35:04.680 --> 0:35:08.160 thirty one to thirty two. Initially the stock did sell 0:35:08.160 --> 0:35:11.239 off eight percent as a knee jerk reaction, but really 0:35:11.320 --> 0:35:13.759 as the conference call started to get underway, they really 0:35:13.760 --> 0:35:17.200 did an incredible job of explaining exactly where the weakness 0:35:17.200 --> 0:35:21.279 came from, and they aped too exactly Europe. Given the 0:35:21.280 --> 0:35:24.440 geopolitical risk there and the economy, that was a great 0:35:24.440 --> 0:35:27.560 spot to point out and then two more importantly, and 0:35:27.600 --> 0:35:29.480 this is when the stock really started to rebound. 0:35:30.360 --> 0:35:33.320 It's a capacity issue. This is not a demand problem. 0:35:33.360 --> 0:35:36.600 They simply don't have enough chips in infrastructure to satisfy 0:35:37.000 --> 0:35:39.960 this AI demand. So I think once they alleviated that, 0:35:40.040 --> 0:35:42.760 the stock really rebounded and it's almost back to flat. 0:35:43.680 --> 0:35:45.680 And then one other thing that when you go a 0:35:45.719 --> 0:35:47.240 little deeper, made a lot of sense. 0:35:47.920 --> 0:35:48.919 This really stood out. 0:35:49.920 --> 0:35:54.320 AI demand actually helped grow azure by eight percent this quarter. 0:35:54.719 --> 0:35:57.680 Last quarter was seven percent, So you're actually seeing an 0:35:57.680 --> 0:36:00.760 acceleration in AI demand that's really are owing to provide 0:36:00.880 --> 0:36:03.279 real ROI, which I don't think is going to start 0:36:03.320 --> 0:36:04.000 anytime soon. 0:36:05.200 --> 0:36:09.200 Daniel Vaging, TMT Equity Trading Managing Director and Zoo America's 0:36:09.239 --> 0:36:11.359 great command of the numbers, really appreciate it. I think 0:36:11.400 --> 0:36:13.440 we have to go back to Nvidia. Look at the 0:36:13.440 --> 0:36:17.640 performance of Nvidia shares in the moment, considering AMD and 0:36:17.680 --> 0:36:21.480 considering Microsoft, this is a stock almost twelve percent. The 0:36:21.520 --> 0:36:25.400 catalyst is that Morgan Stanley has raised Nvidia back to 0:36:25.440 --> 0:36:28.400 being its top pick after what it sees as a 0:36:28.480 --> 0:36:32.480 sell off, giving an attractive point of entry. But that's 0:36:32.480 --> 0:36:35.440 a really big jump. It impacts markets more broadly, I 0:36:35.440 --> 0:36:37.080 think we should just keep an eye on that throughout 0:36:37.080 --> 0:36:46.600 the day. This is Bloomberg Technology. This is Bloomberg Technology, 0:36:46.600 --> 0:36:48.680 and you're looking at a liveshot of the principal room. 0:36:48.800 --> 0:36:51.680 Check out the Bloomberg Technology podcasts. You can find it 0:36:51.719 --> 0:36:54.440 on the terminal so as online at Apple, Spotify and 0:36:54.520 --> 0:37:08.239 also iHeart this is Bloomberg. It's time for talking tech 0:37:08.280 --> 0:37:11.520 and first up, Samsung ramps up its fifth gen high 0:37:11.560 --> 0:37:15.120 bandwidth memory chip production. The electronics giant says it's set 0:37:15.160 --> 0:37:18.279 to start mass producing its Lady's chips this year and 0:37:18.360 --> 0:37:22.560 expects it to contribute sixty percent of HBM total sales. 0:37:22.600 --> 0:37:26.720 Plus Intel plans to eliminate thousands of jobs. That's according 0:37:26.760 --> 0:37:28.880 to sources, who say the chip maker is set to 0:37:28.880 --> 0:37:31.160 announce the job cuts as early as next week. 0:37:31.400 --> 0:37:33.680 Is it looks to reduce costs. 0:37:33.400 --> 0:37:36.960 And fund an ambitious turnaround, and sources also tell Bloomberg 0:37:37.320 --> 0:37:41.680 the Biden administration is planning to exempt chip making equipment 0:37:41.719 --> 0:37:45.880 makers from Japan and the Netherlands from upcoming export restrictions 0:37:45.880 --> 0:37:50.120 to China, adding that the plans are fluid and may change, 0:37:50.160 --> 0:37:52.480 and I want to get to that story with Bloomberg's 0:37:52.480 --> 0:37:55.160 Ian King, who's standing by in San Francisco. You look 0:37:55.200 --> 0:37:58.040 at some of the names that are impacted in ASML, 0:37:58.680 --> 0:38:01.960 in Tokyo Electron. This is significant peace of Bloomber reporting. 0:38:03.120 --> 0:38:05.520 Yeah. I mean, there's a lot of reporting going on 0:38:05.600 --> 0:38:10.239 around this, from US and from our rivals. It's an 0:38:10.360 --> 0:38:13.560 unclear situation right now. What we do know is there 0:38:13.560 --> 0:38:15.640 are more rules coming. There is going to be more 0:38:15.680 --> 0:38:19.319 pressure put on China via those rules. What has been 0:38:19.840 --> 0:38:22.920 in flux as how impactful that would be on some 0:38:23.040 --> 0:38:26.279 of the companies around the world, whether the Biden administration 0:38:26.400 --> 0:38:29.279 would go full in on trying to force the allies 0:38:29.600 --> 0:38:33.440 to follow suit, or whether, as we're seeing now from 0:38:33.480 --> 0:38:35.560 our reporting, they're going to get a pass on this, 0:38:35.680 --> 0:38:38.960 and perhaps those rules may not be quite as comprehensive 0:38:39.000 --> 0:38:42.360 and as effective as we had thought, or as Dutch 0:38:42.480 --> 0:38:44.840 or Japanese investors had perhaps feared. 0:38:45.239 --> 0:38:48.640 Let's talk about the Intel story. The reporting is that 0:38:48.719 --> 0:38:51.720 according to our sources, you know, it's a significant reduction 0:38:51.800 --> 0:38:54.560 in headcount. Intel's a company that has one hundred and 0:38:54.640 --> 0:38:57.239 ten thousand staff approximately around the world. The point of 0:38:57.320 --> 0:39:00.719 difference is it's bab or foundry business, right that's kind 0:39:00.719 --> 0:39:03.680 of accounts for the size relative to peers. What do 0:39:03.760 --> 0:39:05.920 we know about this and why is it significant? 0:39:06.680 --> 0:39:09.680 Okay, so there are a couple of things that work here. Obviously, 0:39:09.840 --> 0:39:14.560 Intel has had significant erosion in its revenue base based 0:39:14.800 --> 0:39:17.120 on losing market share and the fact that its products 0:39:17.160 --> 0:39:19.799 just haven't been as strong. What it's trying to do 0:39:20.000 --> 0:39:22.560 in the to turn itself around is to spend a 0:39:22.560 --> 0:39:25.279 lot of money on new fabs, new technology, new R 0:39:25.320 --> 0:39:27.279 and D to get back in the game, but also 0:39:27.320 --> 0:39:30.759 to expand its business. Something doesn't quite fit there, right. 0:39:31.080 --> 0:39:33.520 You know, you have a need for resources and you 0:39:33.600 --> 0:39:37.400 have staff that they're essentially in place to support a 0:39:37.400 --> 0:39:39.680 bigger business. So what we understand that's going on and 0:39:39.719 --> 0:39:43.080 maybe announced as early as tomorrow when they report earnings, 0:39:43.560 --> 0:39:45.560 is that they're going to have to get rid of 0:39:45.600 --> 0:39:48.480 some of this staff to basically save money to give 0:39:48.480 --> 0:39:51.520 them money to spend on these fight back efforts. 0:39:51.880 --> 0:39:54.440 Bloomberg z and King out of San Francisco, Thank you 0:39:54.560 --> 0:40:06.160 very much. NBC Universal says AD revenue for the Paris 0:40:06.200 --> 0:40:10.160 Olympics has surpassed the record one point two five billion 0:40:10.320 --> 0:40:14.080 sold for Tokyo's twenty twenty Games. A source that the companies, 0:40:14.280 --> 0:40:16.960 who's familiar with the company's ad spend told Bloomberg that 0:40:17.080 --> 0:40:21.880 strong ratings have translated into greater demand for the unsold 0:40:21.960 --> 0:40:25.200 inventory that NBC brought into the games. Primetime viewership so 0:40:25.440 --> 0:40:28.560 far has averaged thirty three point eight million viewers, up 0:40:28.800 --> 0:40:33.560 seventy seven percent from Tokyo, likely due to favorable US 0:40:33.800 --> 0:40:37.560 time zones. And the Paris Olympics is not all about sports, 0:40:37.600 --> 0:40:40.480 It's also about business. Today, the Chinese tech giant Ali 0:40:40.520 --> 0:40:43.880 Barber and its B to B platform Alibarber dot com 0:40:44.080 --> 0:40:48.200 is announcing a partnership with the International Olympic Committee for 0:40:48.239 --> 0:40:51.719 an initiative aiming to help athletes start their own businesses 0:40:51.760 --> 0:40:56.839 become entrepreneurs. The campaigns called same player, new game for more. 0:40:57.040 --> 0:41:00.239 Let's bring in Kor Jung, president of Ali Barber, come 0:41:00.239 --> 0:41:04.400 Whies in Paris. Good afternoon to you. Why make this 0:41:04.520 --> 0:41:05.600 arrangement with the IOC. 0:41:08.520 --> 0:41:13.000 Actually, Alibaba Group is working partners with i WOC as 0:41:13.040 --> 0:41:17.360 a global partner since twenty seventeen, seven years ago, and 0:41:17.440 --> 0:41:21.120 at first we are committing to transform Olympic Games into 0:41:21.280 --> 0:41:22.040 digital area. 0:41:22.760 --> 0:41:24.319 And now we are working. 0:41:24.040 --> 0:41:28.560 With IOC for the new athlete the Stistics file program. 0:41:28.760 --> 0:41:32.799 Since we meet with many of the athletes, we can 0:41:32.880 --> 0:41:37.279 feel that the successful entrepreneurs and athletes actually share the 0:41:38.200 --> 0:41:45.879 same of the common characterisms. Of the common qualities from 0:41:46.120 --> 0:41:51.799 passion to resilience okay, self discipline, push the boundary and 0:41:51.920 --> 0:41:55.200 has a goal set a very very clear goal under. 0:41:55.280 --> 0:42:01.080 These are the kind of characteristics for the successful entrepreneur 0:42:02.600 --> 0:42:06.719 which you see a lot of entrepreneurs on Aliaba dot com. 0:42:06.760 --> 0:42:09.480 Hello, yeah, mister John, I went think we haven't much 0:42:09.520 --> 0:42:11.960 time and I wanted to ask you about the other initiative, 0:42:12.320 --> 0:42:15.920 which is an AI enhanced e commerce search. So Alibaba 0:42:15.960 --> 0:42:19.040 dot com is a B to B platform merchants selling 0:42:19.040 --> 0:42:22.640 to other businesses. Why is an AI powered or enhanced 0:42:22.640 --> 0:42:23.600 search important? 0:42:25.640 --> 0:42:27.480 So today we launch the new product. 0:42:27.560 --> 0:42:30.920 We think it's bigger than Alibaba dot Com itself. So 0:42:31.120 --> 0:42:35.000 previously the search is a kind of a passive mode. 0:42:35.440 --> 0:42:38.080 You key in the keywords and then come up with 0:42:38.239 --> 0:42:41.879 the links with the different kind of pages. And now 0:42:41.920 --> 0:42:45.520 we use the AI technology, we can empower the search 0:42:45.600 --> 0:42:49.279 engine to be a proactive one. So the expertise of 0:42:49.360 --> 0:42:52.600 the human and the technology can work together, helping them 0:42:52.600 --> 0:42:57.840 to generate the more ideas, more original kind of products 0:42:58.080 --> 0:43:02.240 and help them to fee ters of the selection product 0:43:02.280 --> 0:43:04.960 and suppliers. And in the end we can use our 0:43:06.000 --> 0:43:09.960 solution technology, our digital supply chains, combiners of search eendinge. 0:43:09.719 --> 0:43:11.359 Together to fulfill their dream. 0:43:11.920 --> 0:43:17.600 So the f list can use their kind of expertise 0:43:18.120 --> 0:43:21.200 in the ideas in their innovations and we can use 0:43:21.200 --> 0:43:23.759 the technology to help to help them to transform their 0:43:23.800 --> 0:43:25.200 ideas into reality. 0:43:25.880 --> 0:43:28.920 Quote young president Valibarba dot Com joining us from Paris, 0:43:28.920 --> 0:43:31.640 thank you so much for being on boombog technology. I've 0:43:31.640 --> 0:43:33.840 got to go back to Nvidia. This is what the 0:43:33.880 --> 0:43:36.360 state of players in the session up twelve percent. The 0:43:36.400 --> 0:43:41.160 catalyst probably is Morgan Stanley's making it its top chip 0:43:41.280 --> 0:43:43.759 or AI pick once again. But there's probably read through 0:43:43.800 --> 0:43:47.640 from AMD's earnings, right, AMD's AI accelerator, the mi I 0:43:47.680 --> 0:43:48.240 three hundred. 0:43:48.280 --> 0:43:50.160 They upgraded the kind of sales forecast. 0:43:50.360 --> 0:43:53.399 But it's a market where Nvidia dominates, so maybe there's 0:43:53.480 --> 0:43:56.000 upsides that maybe the market saying okay, if AMD is 0:43:56.040 --> 0:43:59.239 so positive about the continued spending on AI infrastructure in 0:43:59.360 --> 0:44:01.640 video gets feel through as well. There's a lot of 0:44:01.680 --> 0:44:03.359 other things going on in the market, right. We're keeping 0:44:03.360 --> 0:44:06.319 an eye on Meta, which reports later today after the 0:44:06.400 --> 0:44:09.240 US market close. It is up two point three percent, 0:44:09.360 --> 0:44:11.040 buoyant ahead of the earnings. 0:44:11.280 --> 0:44:13.680 Why hard to know? Maybe there's some read through from Meta. 0:44:13.719 --> 0:44:15.520 One investor I was speaking to is making the point. 0:44:15.840 --> 0:44:20.000 Meta trades at around twenty one times forward earnings. Microsoft, 0:44:20.000 --> 0:44:23.160 by comparison thirty one times forward earnings. They're different beasts, 0:44:23.360 --> 0:44:26.440 maybe metas something you look at slightly differently in this 0:44:26.680 --> 0:44:29.480 environment to some of the other megacaps that are in aiplay. 0:44:29.520 --> 0:44:32.760 It has the infrastructure spend, doesn't have a cloud business though, Okay, 0:44:33.040 --> 0:44:35.520 that does it For this edition of Bloomberg Technology. Don't 0:44:35.560 --> 0:44:38.680 forget an incredible episode with a number of CEO interviews 0:44:38.800 --> 0:44:42.239 recap on the podcast you know where to find it, Apple, Spotify, iHeart, 0:44:42.280 --> 0:44:45.160 and everywhere in the bloom Averse from New York City. 0:44:45.160 --> 0:44:46.960 This week. This is Bloomberg Technology.