WEBVTT - Apple's Chip Partnership, Sky High Valuation for SpaceX 0:00:02.440 --> 0:00:09.000 Bloomberg Audio Studios, podcasts, radio news from. 0:00:08.840 --> 0:00:13.320 The Heart where Innovation, money and power. Collie in Silicon Valley, 0:00:13.480 --> 0:00:18.760 nbon This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:32.560 --> 0:00:34.720 Live from New York. This is Bloomberg Technology. Coming up. 0:00:34.760 --> 0:00:37.680 Apple is developing an AI server chip, according to reports, 0:00:37.880 --> 0:00:40.720 and it's doing it all. Broadcom details this hour, plus 0:00:40.720 --> 0:00:43.720 the valuation of SpaceX goes to new heights, reaching three 0:00:43.800 --> 0:00:48.240 hundred and fifty billion dollars after an insider deal, and Nvidia, 0:00:48.320 --> 0:00:52.120 AMD and Intel invest in a startup bringing light to chips. 0:00:52.520 --> 0:00:54.520 We sit down with the CEO later this hour, but 0:00:54.600 --> 0:00:57.360 first that's checking on these markets. And currently we are 0:00:57.400 --> 0:00:59.720 continuing to see some optimism around the NASA one hundred, 0:01:00.040 --> 0:01:02.880 one point four percent on the day crypto as well. 0:01:03.240 --> 0:01:06.600 Once again above the one hundred thousand dollars level one thousand, 0:01:06.640 --> 0:01:08.560 five hundred and thirty two is where we trade so 0:01:08.800 --> 0:01:10.520 risk on across the board. We look at some of 0:01:10.520 --> 0:01:12.440 the points contributors when you look under the hood of 0:01:12.440 --> 0:01:15.399 the NASDAT one hundred, it's interesting to once again just 0:01:15.440 --> 0:01:17.800 be seeing some of the key stocks being on the move. 0:01:17.840 --> 0:01:20.240 Of Apple, which has continued to have a very good 0:01:20.280 --> 0:01:23.440 November and into December, we see where Apple and Broadcom 0:01:23.480 --> 0:01:25.399 trade on the back of that report that Apple is 0:01:25.480 --> 0:01:29.080 indeed looking to be creating its own AI server chips 0:01:29.120 --> 0:01:33.319 designed especially for artificial intelligence, and it's working with Broadcom. 0:01:33.920 --> 0:01:36.440 This is all on the chips, networking technology, it's all 0:01:36.480 --> 0:01:38.760 being reported by the information. Will bring you so much 0:01:38.760 --> 0:01:41.080 more on that in a moment, but let's get back 0:01:41.080 --> 0:01:43.880 to the context of the markets, the GUP politics. After 0:01:43.920 --> 0:01:46.800 that Yellen interview by David Gura, Anna Rathans with US 0:01:46.880 --> 0:01:50.960 chief investment officer at cib's Investment Advisory Services, and look, 0:01:50.960 --> 0:01:53.040 we've got a risk on feel we're once again seeing 0:01:53.120 --> 0:01:56.360 nvideo on the upside, you're seeing Apple on the green 0:01:56.560 --> 0:01:57.760 alphabet on a tear. 0:01:58.600 --> 0:02:00.000 Is this the way that we should be trading it? 0:02:01.720 --> 0:02:05.320 Good morning, There's certainly a lot of excitement and AI 0:02:05.400 --> 0:02:06.800 has transformed a lot. 0:02:07.320 --> 0:02:07.600 Now the. 0:02:09.280 --> 0:02:11.840 Trouble with China and VideA happens to be on the 0:02:11.880 --> 0:02:14.239 cross here is it's not about Nvidia, it's not even 0:02:14.240 --> 0:02:16.440 about the US. It's all about China. It's a little 0:02:16.440 --> 0:02:19.560 bit of a noise. But when I say that AI 0:02:19.639 --> 0:02:24.960 has transformed, we're talking about Apple and Broadcom, Amazon is 0:02:25.000 --> 0:02:27.840 also designing its own chips. There's a lot to be 0:02:27.919 --> 0:02:31.080 excited about. So the excitement over AI is no longer 0:02:31.120 --> 0:02:34.200 really a dream as it had been twenty twenty three 0:02:34.240 --> 0:02:36.519 and twenty twenty four. Going into twenty twenty five, I 0:02:36.520 --> 0:02:38.120 think we have a lot more to look forward to. 0:02:38.880 --> 0:02:41.040 But when you've had more than one hundred percent gain 0:02:41.480 --> 0:02:43.600 in a name like in Video over course of twenty 0:02:43.639 --> 0:02:46.760 twenty four, when you've got record highs on the likes 0:02:46.760 --> 0:02:50.680 of Google Alphabet the parent company today, can you really 0:02:50.720 --> 0:02:52.280 be juicing these stocks any further on? 0:02:53.720 --> 0:02:57.400 Well, you know, so some of this is about the technames, 0:02:57.800 --> 0:03:01.480 some of it is about relative VALUEUA. Right, So the 0:03:01.560 --> 0:03:04.919 question really in our minds as asset allocators is where 0:03:04.960 --> 0:03:07.240 would assets go if we take a look at the 0:03:07.280 --> 0:03:11.280 global economy and other areas of the global markets as 0:03:11.280 --> 0:03:14.040 well as some of the old economy stock names here, 0:03:15.000 --> 0:03:18.200 even the fundamentals don't look as exciting, and they're not 0:03:18.240 --> 0:03:22.240 the ones that are driving innovation, and so it's hard 0:03:22.240 --> 0:03:24.000 to get excited about other areas. 0:03:24.040 --> 0:03:26.160 So it you know, you could see. 0:03:25.960 --> 0:03:28.840 A lot of US is still driving into tech names. 0:03:29.120 --> 0:03:31.320 The other thing, one more thing is a lot of 0:03:31.320 --> 0:03:33.800 the political changes. I mean, Lena Khan, it looks like 0:03:34.120 --> 0:03:37.080 she is out coming in as Andrew Ferguson. A lot 0:03:37.120 --> 0:03:40.280 of the hurdles that happened to be there in not 0:03:40.360 --> 0:03:42.600 only the M and A market, but tech as well, 0:03:42.680 --> 0:03:46.040 in terms of antitrust, that seems to be removed. 0:03:46.440 --> 0:03:47.640 So it's not. 0:03:47.520 --> 0:03:50.920 Necessarily about where the valuations are just for tech. It's 0:03:51.000 --> 0:03:54.120 relative valuation as well as what will the environment be like. 0:03:55.120 --> 0:04:00.000 Although the Trump announcement for DOJ has made many people 0:04:00.160 --> 0:04:03.520 worrying for Alphabet, and yet Alphabet continues to be at 0:04:03.520 --> 0:04:06.000 a record high. Are you not in any way given 0:04:06.080 --> 0:04:08.440 pause on the antitrust side of things for that particular 0:04:08.520 --> 0:04:09.280 name or others? 0:04:10.320 --> 0:04:14.240 Yeah, that particular name, I think it's well on its way. 0:04:14.400 --> 0:04:17.680 So I don't think necessarily Alphabet will fit into that film. 0:04:17.680 --> 0:04:20.560 But I'm talking about the general environment. 0:04:20.560 --> 0:04:22.400 For M and A and as well as tech. Now, 0:04:22.920 --> 0:04:24.960 you know, to your point there are it's not all 0:04:25.000 --> 0:04:28.280 you know roses here. There is this aspect of freedom 0:04:28.320 --> 0:04:30.200 of speech, and I don't know how that's going to 0:04:30.240 --> 0:04:32.880 be defined in twenty twenty five for tech, especially for 0:04:32.960 --> 0:04:35.720 social media platforms, and that remains to be seen. So 0:04:35.760 --> 0:04:37.960 it's not all roses, but certainly a lot of hurdles 0:04:38.000 --> 0:04:38.719 have been removed. 0:04:38.960 --> 0:04:41.080 What about the spreading out from the mag seven and 0:04:41.160 --> 0:04:44.120 some of these winning trump trades we think are the 0:04:44.160 --> 0:04:47.760 palanteers and the teslas of this world. Will that broaden out? 0:04:47.760 --> 0:04:50.000 We keep hearing that it'll broaden out. Is it going 0:04:50.040 --> 0:04:54.080 into other parts of the AI ecosystem energy for example? 0:04:55.120 --> 0:04:57.680 Yeah, So I think we have to see AI and 0:04:57.920 --> 0:05:01.360 other tech you know, advancements actually make it into these 0:05:01.400 --> 0:05:04.280 old economy names or even other tech names that are 0:05:04.320 --> 0:05:06.839 a little bit not not so much chip based, right, 0:05:07.120 --> 0:05:08.919 And I think we'll need to see more innovation on 0:05:09.000 --> 0:05:12.480 that and really where the rubber hits the road, how 0:05:12.600 --> 0:05:16.200 AI would actually impact these industries. And until then, it 0:05:16.320 --> 0:05:19.200 still feels like we're running on fumes here and that's 0:05:19.440 --> 0:05:22.719 probably why it hasn't broadened out yet. But we'll see 0:05:22.760 --> 0:05:24.520 in twenty twenty five if there's a difference. 0:05:24.640 --> 0:05:26.200 Yeah, you were saying that you still had this conversation 0:05:26.240 --> 0:05:27.599 by saying there's a lot to look forward to in 0:05:27.640 --> 0:05:30.280 twenty twenty five. We still wring our hands about what 0:05:30.320 --> 0:05:33.400 the killer application of general to AI is other than 0:05:33.480 --> 0:05:36.440 Gemini two point zero on my phone or the ability 0:05:36.520 --> 0:05:38.600 to have basically an analyst next to me every time 0:05:38.640 --> 0:05:40.960 I want to research. Is that in US in terms 0:05:40.960 --> 0:05:42.719 of the return on investment. 0:05:43.080 --> 0:05:43.640 I don't think. 0:05:43.720 --> 0:05:45.839 So, you know, we got a glimpse of it in 0:05:45.880 --> 0:05:49.839 twenty twenty four, where you know, all is hype about 0:05:49.880 --> 0:05:53.600 AI and how these big MAC seven companies are investing 0:05:53.680 --> 0:05:57.320 in AI. Was simply enough to get the price up. 0:05:57.360 --> 0:06:00.440 But then we started to look for ROI on them, 0:06:00.600 --> 0:06:03.320 and I think the market may be looking for a 0:06:03.360 --> 0:06:06.000 little bit more in twenty twenty five, so we're going 0:06:06.080 --> 0:06:08.320 to have to see something a little bit more concrete. 0:06:08.440 --> 0:06:11.279 But that is where I think that these tech companies 0:06:11.320 --> 0:06:14.160 are running really hard, because this is about market share, 0:06:14.160 --> 0:06:16.159 and this is about running to see who the first 0:06:16.200 --> 0:06:19.440 mover is for capturing that first mover advantage, because if 0:06:19.440 --> 0:06:21.640 they don't, they will lag behind. They know that, and 0:06:21.720 --> 0:06:23.920 so I'm looking forward to the innovation that is. 0:06:23.839 --> 0:06:28.880 To come prison's dilemma or indeed innovation focus. Anna Rathman, 0:06:28.960 --> 0:06:32.440 we thank you Ceva's Investment Advisory Services CIO. Let's just 0:06:32.480 --> 0:06:34.080 talk about some of those names we just referenced a 0:06:34.080 --> 0:06:36.400 little bit more, Tesla, Broadcom. 0:06:35.960 --> 0:06:38.080 But also Nintendo. These are just a few. 0:06:37.880 --> 0:06:40.120 Of the global stocks to watch in the coming year. 0:06:40.279 --> 0:06:43.440 It's all according to Bloomberg Busessweek. Analysts at Bloomberg Intelligence 0:06:43.480 --> 0:06:46.560 track some two thousand companies from a variety of industries, 0:06:46.680 --> 0:06:50.240 and they've identified fifty that are worth watching closely. Many 0:06:50.279 --> 0:06:52.479 of them, of course, are tech companies. Let's bring in 0:06:52.480 --> 0:06:54.800 Bloomberg's Max Chafkin, who's been pouring over all of this. 0:06:55.040 --> 0:06:57.640 Let's start with the Trump trade. We're just mentioning Palenteer there. 0:06:57.680 --> 0:07:01.919 It is up three hundred percent. Tesla has been phenomenal 0:07:01.960 --> 0:07:04.320 growth since Trump came into the administration. One of the 0:07:04.360 --> 0:07:05.360 analysts thinking. 0:07:05.080 --> 0:07:07.840 That, yeah, with both of those stocks, you have a 0:07:07.839 --> 0:07:11.280 Trump trade and sort of a general vibes AI thing 0:07:11.360 --> 0:07:12.320 going on, and. 0:07:12.200 --> 0:07:13.880 Those two things feeding into one another. 0:07:14.000 --> 0:07:17.000 So so Palenteer obviously has some AI connections as well 0:07:17.080 --> 0:07:20.000 as it's a defense contractor co founded by Peter Teel 0:07:20.040 --> 0:07:22.000 Trump is going to be president, you know, there's a 0:07:22.040 --> 0:07:25.040 case there that maybe they'll do better Tesla. Of course, 0:07:25.120 --> 0:07:28.680 Elon Musk having the ear of the President elect is 0:07:28.680 --> 0:07:31.480 a good sign. But with both of those stocks, there 0:07:31.560 --> 0:07:34.840 is a sense that they are very highly valued, perhaps 0:07:34.880 --> 0:07:37.600 relative to where their actual revenue is and what their 0:07:37.640 --> 0:07:40.880 business prospects are. You know, Palenteer is not a leading 0:07:41.000 --> 0:07:43.360 AI company. It isn't It isn't as far ahead as 0:07:43.360 --> 0:07:45.920 Google or Open Ai or something like that. Tesla talks 0:07:45.920 --> 0:07:47.920 a lot about self driving cars, but they have not 0:07:48.000 --> 0:07:50.160 sold a self driving car, so you have some challenges there. 0:07:50.160 --> 0:07:51.480 So that's the tension there. 0:07:52.480 --> 0:07:55.320 The interesting shift that we've seen is maybe a slight 0:07:55.360 --> 0:07:58.880 pullback on chip companies. A lot of the exuberants in 0:07:58.920 --> 0:08:01.000 twenty twenty three, twenty two, for has been factored in. 0:08:01.440 --> 0:08:03.960 Broadcom today gets a lift higher because we think that 0:08:04.000 --> 0:08:06.119 it's going to be working for Apple on its server 0:08:06.520 --> 0:08:10.160 AI chips according to the information. But Broadcon and micro 0:08:10.320 --> 0:08:10.960 being referenced. 0:08:11.040 --> 0:08:12.360 Yeah, yeah, Broadcom's interesting. 0:08:12.360 --> 0:08:14.160 It's one of a handful of companies that can try 0:08:14.160 --> 0:08:17.360 to compete with Nvidia. It is directly and has directly 0:08:17.440 --> 0:08:21.440 benefited from this extreme exuberance in AI. Now in the 0:08:21.480 --> 0:08:23.920 chip world, of course, it has a more direct benefit 0:08:24.000 --> 0:08:26.200 to AI. I mean they are selling you know, chips 0:08:26.280 --> 0:08:28.800 or intellectual property that is being used, whether or not 0:08:29.120 --> 0:08:30.960 chat GBT becomes. 0:08:30.600 --> 0:08:32.440 A hugely transformative thing or not. 0:08:32.880 --> 0:08:35.439 Micron's interesting because it's in the memory business, not a 0:08:35.520 --> 0:08:38.880 not a direct participant in the AI market, although it 0:08:39.080 --> 0:08:41.840 just signed this deal with the Biden administration to get 0:08:42.040 --> 0:08:45.240 a huge subsidy for a chips plant, and chip companies 0:08:45.240 --> 0:08:47.280 in general have done pretty well, so that's another one 0:08:47.280 --> 0:08:48.040 to keep an eye on. 0:08:48.200 --> 0:08:51.440 This is a global focus and so we think of 0:08:51.480 --> 0:08:54.760 content ITV being that looked at in the United Kingdom, 0:08:54.840 --> 0:08:57.120 Nintendo as well. Where else are we looking in terms 0:08:57.120 --> 0:08:58.120 of our consumer focus. 0:08:58.280 --> 0:09:01.480 Yeah, entertainment is interesting. Nin Hendo, the big story there 0:09:01.520 --> 0:09:05.480 is the switch to that's the new version of their console, 0:09:05.600 --> 0:09:08.320 which is very popular but is getting long in the tooth. 0:09:08.640 --> 0:09:11.000 Two other names I want to flag. One is Fox. 0:09:11.160 --> 0:09:13.280 You know that we've been reading a lot about the 0:09:13.360 --> 0:09:18.080 Murdoch drama. You know, Fox has actually done okay considering 0:09:18.200 --> 0:09:21.960 the you know, the general declines in TV consumption, linear 0:09:22.000 --> 0:09:25.959 TV consumption and so on. And the other one is IMAX. 0:09:26.280 --> 0:09:29.520 The losser of large screen movie theater format. Again, that's 0:09:29.520 --> 0:09:32.760 a challenging industry. Movie theaters have are going through transition. 0:09:32.800 --> 0:09:35.480 On the other hand, these James Cameron movies, the Avatar 0:09:35.600 --> 0:09:38.600 movies are bought into Imax and have been doing well. 0:09:38.720 --> 0:09:41.320 So that's something that could work in their favor nice. 0:09:41.240 --> 0:09:43.320 Chaff can Amazing how you've managed to pour through so 0:09:43.400 --> 0:09:44.400 many other stocks for us. 0:09:44.520 --> 0:09:46.120 We love it on those top fifty to. 0:09:46.080 --> 0:09:56.920 Watch Apple and Broadcom stocks on the move today after 0:09:56.920 --> 0:09:59.200 we understand that Apple is working with Broadcom to develop 0:09:59.240 --> 0:10:03.000 its own service it's designed specifically for artificial intelligence. Now, 0:10:03.080 --> 0:10:05.800 the latest report is coming from the Information Bloomberg's Mark 0:10:05.840 --> 0:10:08.240 German joins us on, Well, you've been reporting this out 0:10:08.240 --> 0:10:12.000 for a long time that Apple will be delivering AI 0:10:12.120 --> 0:10:15.199 chips of its own. The nuance here we're learning exactly 0:10:15.200 --> 0:10:15.880 who's doing it. 0:10:16.040 --> 0:10:16.240 Yeah. 0:10:16.280 --> 0:10:19.240 The interesting thing is this morning Apple announced that iOS 0:10:19.360 --> 0:10:22.160 eighteen point two, which is the latest version of iOS 0:10:22.240 --> 0:10:24.600 eighteen and with a lot of the new Apple Intelligence features, 0:10:25.280 --> 0:10:27.600 is actually going to be available today. I would anticipate 0:10:27.640 --> 0:10:30.360 it's going to be available for download around one pm 0:10:30.440 --> 0:10:33.880 Eastern ten am Pacific. And Apple Intelligence is interesting because 0:10:33.880 --> 0:10:35.480 you have a lot of models that run on the 0:10:35.520 --> 0:10:36.360 device itself. 0:10:36.720 --> 0:10:38.400 Right Those capabilities can. 0:10:38.320 --> 0:10:41.760 Actually be processed on the phone, the iPad, the Mac independently, 0:10:42.120 --> 0:10:43.960 but in some cases they need to go to the cloud. 0:10:44.080 --> 0:10:47.200 Things like writing tools, things like summarizing texts in some 0:10:47.320 --> 0:10:50.360 cases summarizing articles, and for that you need your own 0:10:50.400 --> 0:10:52.120 server infrastructure, and so for what. 0:10:52.160 --> 0:10:55.240 Apple has done is they've created tweaked. 0:10:54.920 --> 0:10:57.480 Versions of the M two ultra chip they shipped a 0:10:57.480 --> 0:10:59.760 couple of years ago, and the M four chip they've 0:10:59.760 --> 0:11:02.720 become chipping this year to actually be cloud based servers 0:11:02.720 --> 0:11:04.959 to do that AI processing. And so what this report 0:11:05.000 --> 0:11:07.199 today is saying is that there's a new generation version 0:11:07.240 --> 0:11:10.439 of that chip in development for launch about two years 0:11:10.440 --> 0:11:13.360 from now, which makes sense. They are continuing that rolled 0:11:13.400 --> 0:11:17.480 out of different chips. They need specialized chips for training data, 0:11:17.520 --> 0:11:21.160 for inferring data, for pushing data, and what Broadcom is 0:11:21.160 --> 0:11:23.040 really good at is bringing that data in and out. 0:11:23.120 --> 0:11:26.319 Apple and Broadcom have been working together for a number 0:11:26.360 --> 0:11:30.520 of years. Broadcom makes the combined Wi Fi and Bluetooth 0:11:30.600 --> 0:11:33.800 chip inside of the iPhone and some of the other 0:11:33.840 --> 0:11:34.720 Apple devices. 0:11:34.720 --> 0:11:37.920 Broadcom is continuing. 0:11:37.320 --> 0:11:39.839 To work with Apple on what are known as radio 0:11:39.880 --> 0:11:43.520 frequency filters or RAF filters, despite the shift away from 0:11:43.559 --> 0:11:44.520 paucom modems. 0:11:44.520 --> 0:11:47.000 So this is just a continuation. 0:11:46.720 --> 0:11:50.160 Of the Apple modem or the Apple Broadcom partnership, i 0:11:50.160 --> 0:11:53.880 should say, and new generations of AI servers. It shows 0:11:53.880 --> 0:11:57.679 Apple's commitment to artificial intelligence and doing as much as 0:11:57.720 --> 0:11:58.600 possible in house. 0:11:58.920 --> 0:12:02.199 It's also committed to ensuring that we can get connectivity 0:12:02.240 --> 0:12:04.800 wherever we might be. And you reported that out in 0:12:04.880 --> 0:12:07.160 terms of the Apple Watch, right and how you're going 0:12:07.200 --> 0:12:08.440 to be using satellite going forward. 0:12:09.520 --> 0:12:10.720 Yeah, this makes sense as well. 0:12:11.000 --> 0:12:14.240 Back in twenty twenty two with the iplone fourteen, Apple 0:12:14.320 --> 0:12:18.600 launched a feature called Emergency SOS over Satellite. So what 0:12:18.679 --> 0:12:20.960 that allows you to do is the first advertisement for 0:12:21.000 --> 0:12:25.120 that so eloquently showed is if you're injured or trapped 0:12:25.120 --> 0:12:27.839 on a hike or in a remote area without cellular connectivity, 0:12:28.520 --> 0:12:32.400 you could tap into a satellite network operated by Global Star. Right, 0:12:32.480 --> 0:12:35.800 you can send a text message to emergency services or 0:12:35.960 --> 0:12:39.439 file a sort of a radar or an SOS to 0:12:39.520 --> 0:12:43.400 emergency services and they'll come find you. They expanded that 0:12:43.520 --> 0:12:46.760 earlier this year with iosa team to allow text messages 0:12:46.800 --> 0:12:48.760 over satellite to any I message content. 0:12:49.280 --> 0:12:51.320 And so if you're a hiker, you need to sort 0:12:51.320 --> 0:12:52.280 of bring your iPhone with you. 0:12:52.640 --> 0:12:54.440 But they have this eight hund dollars Apple Watch all 0:12:54.480 --> 0:12:56.959 trin your towards hikers, and now they're going to update 0:12:57.000 --> 0:12:59.920 it about a year from now with its own satellite connected. 0:13:00.080 --> 0:13:01.880 Are you meaning you can leave the phone behind and 0:13:01.920 --> 0:13:03.800 still have that peace of mind being able to reach 0:13:03.800 --> 0:13:06.800 emergency services and sort of stay on the grid while 0:13:06.800 --> 0:13:09.000 you're off the grid, out of cellular range. 0:13:09.280 --> 0:13:12.000 Few Mark Gllman, great to have some time with you. 0:13:12.120 --> 0:13:14.800 Thank you, all things Apple. Meanwhile, let's shift to SpaceX 0:13:15.080 --> 0:13:17.200 and its investors have agreed to purchase a much as 0:13:17.240 --> 0:13:20.080 one point two five billion dollars of insider shares, founding 0:13:20.120 --> 0:13:23.440 the company at a cool three hundred and fifty billion dollars. So, 0:13:23.440 --> 0:13:26.360 according to an email seeing my Bloomberg plumost Katie Ruth 0:13:26.440 --> 0:13:28.520 joins us, now you've been reporting out this valuation for 0:13:28.559 --> 0:13:31.280 a while and we get confirmation, and in fact, it 0:13:31.320 --> 0:13:33.319 seems as though a lot of people didn't really want 0:13:33.320 --> 0:13:34.440 to be setting up their shares. 0:13:35.880 --> 0:13:36.319 That's right. 0:13:36.440 --> 0:13:39.960 Actually Elon Musk even tweeted a confirmation of this. So 0:13:40.720 --> 0:13:43.520 we had reported last week that you know, they were 0:13:43.640 --> 0:13:47.440 close to finalizing the three hundred and fifty billion dollars valuation, 0:13:47.960 --> 0:13:52.400 a world record for a private valuation, that has now 0:13:52.440 --> 0:13:57.040 been finalized. My colleague Laurin Gresh obtained the document confirming 0:13:57.280 --> 0:13:59.920 our scoop and yeah, it's one hundred and eighty five 0:14:00.400 --> 0:14:01.119 a share. 0:14:02.080 --> 0:14:05.160 Which is a significant optic from one hundred and twelve 0:14:05.200 --> 0:14:07.280 dollars a share that we were talking about just about 0:14:07.280 --> 0:14:10.880 a month ago. All of this optimism is allowing people 0:14:10.920 --> 0:14:13.959 who've been long term holders of SpaceX to cash out. 0:14:14.000 --> 0:14:15.560 Do we have any idea of who those. 0:14:15.440 --> 0:14:18.160 People are, because, as you say it, SpaceX has been 0:14:18.160 --> 0:14:19.720 buying back some of the shares, but not as many 0:14:19.720 --> 0:14:21.120 as they'd anticipated to be able to. 0:14:22.600 --> 0:14:26.160 Sure, so you know, it's up one hundred billion. You know, 0:14:26.200 --> 0:14:29.760 from where they were talking a month ago. There's been 0:14:29.800 --> 0:14:34.400 a surplus of demand because you know, first of all, 0:14:34.640 --> 0:14:38.840 Elon's ties to Trump up and you know, Trump's election 0:14:39.200 --> 0:14:42.040 are seen as valuable to some of these shareholders. And 0:14:42.080 --> 0:14:47.480 then also SpaceX had a successful rocket launch last month, 0:14:47.840 --> 0:14:51.600 and so both of these things contributed to the perceived value. 0:14:51.800 --> 0:14:52.680 A lot of these. 0:14:52.760 --> 0:14:56.920 Private companies aren't necessarily valued based on clear cut metrics, 0:14:56.920 --> 0:14:59.960 but just where supply meets demand, and often often it's 0:15:00.040 --> 0:15:02.240 based on a vision for the future. But yes, it's 0:15:02.280 --> 0:15:07.760 apparently they had excess. They didn't have enough sellers, and 0:15:07.840 --> 0:15:11.440 so they had to raise the price to match supply. 0:15:11.520 --> 0:15:15.720 In the band, the greatest American success is what Jared Eisigman, 0:15:15.760 --> 0:15:19.360 who's of course the NASA name. This NASA chief pick 0:15:19.400 --> 0:15:22.760 from Trump is calling SpaceX today, KG Ruth. We so 0:15:22.840 --> 0:15:25.640 appreciate it, Thank you so much. Coming up, ge even Over, 0:15:26.200 --> 0:15:28.280 CEO Scott strat Sik is going to be joining us 0:15:28.280 --> 0:15:30.120 for more on how the company is meeting the power 0:15:30.160 --> 0:15:32.280 needs required to put AI into action. 0:15:32.720 --> 0:15:49.800 This is bloembag technology. 0:15:52.160 --> 0:15:54.760 A looming problem placing the AI boom is how the 0:15:54.840 --> 0:15:57.400 new technology will be powered, and the race is on 0:15:57.440 --> 0:15:59.960 to meet that anticipated demand. One of the key players, 0:16:00.200 --> 0:16:03.920 g even Over, the company's developing new technology to provide reliable, affordable, 0:16:04.000 --> 0:16:06.680 low carbon electricity that it helps produce the sort of 0:16:06.720 --> 0:16:09.560 power that can put AI in action. Here to talk 0:16:09.560 --> 0:16:12.280 about it. Geeve and o A CEO Scots Trasik, thank 0:16:12.320 --> 0:16:13.720 you so much for being here with Chill and thanks 0:16:13.760 --> 0:16:14.240 for having me. 0:16:14.240 --> 0:16:16.000 On the back of an investment event. 0:16:16.400 --> 0:16:18.960 And you are outlining really the demand that you're going 0:16:19.000 --> 0:16:20.880 to be seeing from AI. Can you just put that 0:16:20.880 --> 0:16:23.400 into context. How much is going to be increasing the load? 0:16:24.000 --> 0:16:24.320 You bet? 0:16:24.400 --> 0:16:26.960 I mean, AI is one of manufacturers that's driving to 0:16:27.080 --> 0:16:29.240 really the first time in twenty five years, certainly in 0:16:29.280 --> 0:16:32.000 the US we're seeing real load growth. It's AI, it's 0:16:32.080 --> 0:16:36.240 the electrification of transportation, electrification of homes, but also US 0:16:36.360 --> 0:16:39.200 manufacturing are all playing roles that are really leading to 0:16:39.240 --> 0:16:42.720 a substantial increase in load growth right now. That's we're 0:16:42.760 --> 0:16:44.720 seeing in a number of our businesses. We're seeing it 0:16:44.760 --> 0:16:48.080 in substantial increase in orders for gas power right now, 0:16:48.080 --> 0:16:51.880 we're seeing it in grid infrastructure equipment, and then working 0:16:51.880 --> 0:16:54.160 with the hyperscaler is going back to that question on 0:16:54.200 --> 0:16:58.000 how we decarbonize this increased load growth that's very clearly 0:16:58.000 --> 0:16:59.160 coming this decade. 0:16:59.360 --> 0:17:02.400 So do you decarbonize? Is it all about nuclear? Is 0:17:02.400 --> 0:17:04.600 it about innovations? There you set aside what five billion 0:17:04.640 --> 0:17:06.520 dollars in terms of R and D, you bet it's. 0:17:06.400 --> 0:17:08.119 Really going to be a little bit of all the above. 0:17:08.359 --> 0:17:10.320 I mean, there's going to be a lot of decarbonization 0:17:10.359 --> 0:17:12.440 of gas over the course of the next decade. That's 0:17:12.480 --> 0:17:15.439 with hydrogen, that's with carbon capture. As an example, we 0:17:15.560 --> 0:17:18.280 have a running direct air capture plant right now that 0:17:18.320 --> 0:17:21.639 we'll be able to parlay similar technology on our gas 0:17:21.680 --> 0:17:22.639 turbines over time. 0:17:23.000 --> 0:17:24.320 Nuclear is definitely important. 0:17:24.400 --> 0:17:28.080 We have sixty five nuclear plants with our technology running 0:17:28.080 --> 0:17:31.280 today in the US, we can operate those plants in 0:17:31.359 --> 0:17:35.040 provide more electrons this decade. We also have what will 0:17:35.080 --> 0:17:37.760 be the first small modular reactor that'll get commissioned this 0:17:37.800 --> 0:17:40.800 decade in twenty twenty nine. That will become a bigger 0:17:40.880 --> 0:17:43.919 part of the hyperscale or demand cycle into the twenty thirties, 0:17:43.920 --> 0:17:44.320 and we're. 0:17:44.160 --> 0:17:46.760 Excited about that. So there's a lot of plays here. 0:17:47.240 --> 0:17:49.560 It's interesting people have been handwringing about in the last 0:17:49.600 --> 0:17:52.520 decade how much China has invested in nuclear and how 0:17:52.600 --> 0:17:55.920 the US ultimately hasn't. Yeah, have you been talking about 0:17:55.920 --> 0:17:57.720 this for a while, and now everyone's come to the 0:17:57.720 --> 0:17:58.440 same realization. 0:17:58.560 --> 0:18:02.160 All Certainly, the activities tolerated considerably in the last call 0:18:02.160 --> 0:18:04.040 it twenty four months. I mean, I remember sitting in 0:18:04.040 --> 0:18:06.280 the room at COP twenty eight in Dubai with over 0:18:06.320 --> 0:18:08.960 twenty heads of states saying we need to triple the 0:18:09.080 --> 0:18:12.040 nuclear capacity in the world between now and twenty fifty. 0:18:12.480 --> 0:18:16.080 In the sentiment towards nuclears certainly coming that way, both 0:18:16.119 --> 0:18:19.479 whether it be with business or with government. It seems 0:18:19.520 --> 0:18:21.240 like this is going to be our time for nuclear 0:18:21.240 --> 0:18:23.160 and we're excited about what we can do to help 0:18:23.280 --> 0:18:24.280 make that a reality. 0:18:25.119 --> 0:18:28.240 Is there an opportunity cost that where are people not looking? 0:18:28.280 --> 0:18:30.800 It's interesting that there's perhaps some weakness in the wind 0:18:30.840 --> 0:18:32.840 area of your business that analysts are calling out. 0:18:32.840 --> 0:18:36.200 Why that, Well, I think the wind industry at large 0:18:36.240 --> 0:18:38.600 is one that's still going through more of a maturation 0:18:38.760 --> 0:18:43.520 process in industrializing the product at scale relative to gas, relative 0:18:43.560 --> 0:18:47.560 to nuclear that just have longer legacies, stronger supply chains, 0:18:48.040 --> 0:18:52.760 stronger safety and quality cultures in those supply chains, and totality. 0:18:52.880 --> 0:18:55.080 But the reality is when you talk about. 0:18:54.840 --> 0:18:59.159 These different power generation technologies and what people are missing, frankly, 0:18:59.160 --> 0:19:02.280 it comes back to the grid because regardless of which 0:19:02.320 --> 0:19:05.160 technologies are going to power this load growth, we need 0:19:05.200 --> 0:19:06.960 to make a massive investment in the grid in the 0:19:07.040 --> 0:19:09.679 years to follow. And that's both the physical grid and 0:19:09.760 --> 0:19:12.520 how the grid thinks and works and grid software, and 0:19:12.560 --> 0:19:14.840 those are big parts of what we're investing into right now. 0:19:14.880 --> 0:19:16.879 Is that you is that alongside the government, does this 0:19:16.920 --> 0:19:18.399 have to be public private partnerships. 0:19:18.960 --> 0:19:21.720 We do stand for public private partnerships for sure. I 0:19:21.760 --> 0:19:24.679 mean these are big electrical equipment systems that have been 0:19:24.680 --> 0:19:28.280