1 00:00:02,520 --> 00:00:10,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast, 2 00:00:10,840 --> 00:00:14,040 Speaker 1: your roundup of companies making moves in the stock market 3 00:00:14,240 --> 00:00:16,520 Speaker 1: harnessing the power of Bloomberg Data. 4 00:00:17,560 --> 00:00:18,960 Speaker 2: Let's take a look at some of the stocks on 5 00:00:19,000 --> 00:00:21,680 Speaker 2: the move today. I'm Paul Sweeney alongside Lisa Matteo. 6 00:00:21,880 --> 00:00:23,520 Speaker 3: I want to take us to honorad Rona. He is 7 00:00:23,560 --> 00:00:28,400 Speaker 3: Bloomberg Intelligence technology analyst Core Weed buying Core Scientific. It's 8 00:00:28,400 --> 00:00:31,600 Speaker 3: an all stock transaction, anurag. I want to bring you 9 00:00:31,640 --> 00:00:34,080 Speaker 3: in and talk about this. For core Weed, what is 10 00:00:34,120 --> 00:00:36,000 Speaker 3: the benefit from this, What do they gain from this? 11 00:00:36,560 --> 00:00:39,239 Speaker 4: And think about it that they have capacity to process 12 00:00:39,280 --> 00:00:42,040 Speaker 4: ex summer of transactions, all the backlock that they have 13 00:00:42,680 --> 00:00:45,680 Speaker 4: with this particular deal, they are expanding their infrastructure. I 14 00:00:45,680 --> 00:00:47,760 Speaker 4: mean it's a very simple deal as if you know, 15 00:00:47,800 --> 00:00:50,440 Speaker 4: they're just buying more factories to produce what they do. 16 00:00:50,520 --> 00:00:52,000 Speaker 4: So it's as simple as that. 17 00:00:52,440 --> 00:00:55,080 Speaker 2: Tell us what Core we've is, what do they do 18 00:00:55,560 --> 00:00:57,600 Speaker 2: and why are they shouting out nine billion dollars to 19 00:00:57,640 --> 00:00:58,280 Speaker 2: get bigger? 20 00:00:58,320 --> 00:01:01,520 Speaker 4: I guess so in the rest of pure reforms, they 21 00:01:01,520 --> 00:01:05,080 Speaker 4: are just renting computing resources to anybody that wants to 22 00:01:05,160 --> 00:01:08,360 Speaker 4: run an AI infrastructure. They are a very big Nvidia shop. 23 00:01:08,440 --> 00:01:12,080 Speaker 4: They basically buy GPUs from Nvidia, they create a network 24 00:01:12,200 --> 00:01:14,400 Speaker 4: or an infrastructure, and they give it to people to 25 00:01:14,480 --> 00:01:17,240 Speaker 4: go out and experiment or do whatever they need to 26 00:01:17,240 --> 00:01:20,600 Speaker 4: do on that infrastructure. It's no different than what AWS does, 27 00:01:20,959 --> 00:01:24,319 Speaker 4: but very heavy focus on GPUs rather than the CPO. 28 00:01:24,440 --> 00:01:27,040 Speaker 4: So that's really the big difference between a pure play 29 00:01:27,520 --> 00:01:30,399 Speaker 4: provider like Corevive versus Amazon Web Services. 30 00:01:30,680 --> 00:01:33,039 Speaker 3: Now, if you can dig into some of the background, 31 00:01:33,040 --> 00:01:36,240 Speaker 3: what kind of challenges has Core We've had in the past. 32 00:01:36,240 --> 00:01:38,160 Speaker 3: I mean, didn't they have a pretty dismal IPO. 33 00:01:38,560 --> 00:01:40,840 Speaker 4: Yeah, I think that's really the most important thing is, 34 00:01:41,160 --> 00:01:43,800 Speaker 4: you know, they everybody thought when they're going to come 35 00:01:43,800 --> 00:01:47,199 Speaker 4: out as the first pure play you know AI infrastructure IPO, 36 00:01:47,280 --> 00:01:50,360 Speaker 4: it's going to be extremely popular, but it didn't happen. 37 00:01:50,400 --> 00:01:53,120 Speaker 4: And the reason for that is because they need a 38 00:01:53,240 --> 00:01:56,600 Speaker 4: large amount of upfront capital to build these data centers 39 00:01:56,840 --> 00:01:59,600 Speaker 4: and then the workload comes in over the next several years. 40 00:01:59,800 --> 00:02:02,560 Speaker 4: There's a lot of questions about whether there's going to 41 00:02:02,560 --> 00:02:06,680 Speaker 4: be sustainability of this GPU demand going forward several years out. 42 00:02:06,840 --> 00:02:09,200 Speaker 4: So that's why you were right. The IPU came at 43 00:02:09,240 --> 00:02:11,720 Speaker 4: forty in a few days it was down to thirty five. 44 00:02:12,080 --> 00:02:14,080 Speaker 4: But now we're seeing you know, the stock croser who 45 00:02:14,120 --> 00:02:17,080 Speaker 4: won sixty before this deal was announced, so I you know, 46 00:02:17,120 --> 00:02:18,960 Speaker 4: we have talked about it before that. You know, why 47 00:02:19,000 --> 00:02:21,320 Speaker 4: aren't they doing a secondary when it's like one hundred 48 00:02:21,320 --> 00:02:23,480 Speaker 4: and sixty bucks stock of What they did instead is 49 00:02:24,040 --> 00:02:26,040 Speaker 4: they use their stock to go out and buy another 50 00:02:26,080 --> 00:02:29,720 Speaker 4: competitor I shouldn't say competitor, but you know, another company 51 00:02:29,760 --> 00:02:32,919 Speaker 4: in that space, so that it expands their capacity. And 52 00:02:33,040 --> 00:02:34,680 Speaker 4: you know, I think they're doing the right thing by 53 00:02:34,760 --> 00:02:36,600 Speaker 4: using stock at this point. 54 00:02:36,240 --> 00:02:38,880 Speaker 5: Are there more core weaves out there on a run 55 00:02:39,440 --> 00:02:43,880 Speaker 5: kind of more pure play AI stories, maybe the kind 56 00:02:43,919 --> 00:02:47,079 Speaker 5: of the sausage of AI, if you will, the guts 57 00:02:47,840 --> 00:02:49,600 Speaker 5: that somebody could take public. 58 00:02:49,880 --> 00:02:52,320 Speaker 4: There are multiples of them there, but they are much 59 00:02:52,320 --> 00:02:55,280 Speaker 4: smaller size in korby the I would say there would 60 00:02:55,320 --> 00:02:57,760 Speaker 4: be hundreds of them at this point, because you know, 61 00:02:57,800 --> 00:02:59,959 Speaker 4: you go out, you buy the GPU, you go out 62 00:03:00,040 --> 00:03:02,440 Speaker 4: and start renting it out in the in you know, 63 00:03:02,520 --> 00:03:04,960 Speaker 4: in a long time ago, this high powered computing was 64 00:03:05,120 --> 00:03:08,160 Speaker 4: used for bitcoin mining, and then you know, and that's 65 00:03:08,200 --> 00:03:11,120 Speaker 4: not in favor. These guys are renting out their infrastructure 66 00:03:11,160 --> 00:03:14,000 Speaker 4: for other reasons. So there are other plays out there, 67 00:03:14,040 --> 00:03:16,960 Speaker 4: but almost all of them are much smaller than core 68 00:03:17,080 --> 00:03:19,239 Speaker 4: Viv from a you know, pure play point of view. 69 00:03:19,440 --> 00:03:22,960 Speaker 3: Now we digged into Corewey, what about Core Scientific, what's 70 00:03:23,000 --> 00:03:24,760 Speaker 3: the attraction to them? 71 00:03:24,880 --> 00:03:27,000 Speaker 4: I mean, it's just they're expanding the number of you know, 72 00:03:27,040 --> 00:03:30,240 Speaker 4: the capacity that they have to process the transactions in 73 00:03:30,280 --> 00:03:33,240 Speaker 4: a sense that coreviev has a massive backlog right now. 74 00:03:33,280 --> 00:03:36,120 Speaker 4: They have people wanting to use their services, and then 75 00:03:36,160 --> 00:03:38,080 Speaker 4: these guys have to go out and lease it from 76 00:03:38,280 --> 00:03:41,200 Speaker 4: you know, other companies like Core Scientific. In this case, 77 00:03:41,240 --> 00:03:43,160 Speaker 4: they said, you know, they have an agreement with them 78 00:03:43,440 --> 00:03:46,720 Speaker 4: to lease their facilities. They just said, you know, we'll 79 00:03:46,720 --> 00:03:49,080 Speaker 4: buy it out and expand their size. And I think 80 00:03:49,080 --> 00:03:50,120 Speaker 4: that's as simple as that. 81 00:03:50,560 --> 00:03:53,080 Speaker 2: And I think I have to point out Lisa core 82 00:03:53,120 --> 00:03:57,080 Speaker 2: Weave based in Livingston, New New Jersey. Yeah, so folks, 83 00:03:57,040 --> 00:04:00,280 Speaker 2: a little history lesson. Before there was Silicon Valley, there 84 00:04:00,320 --> 00:04:03,440 Speaker 2: was New Jersey, there was Central Jersey, the Institute for 85 00:04:03,520 --> 00:04:08,440 Speaker 2: Advanced Study, Princeton University, Menlo Park, New Jersey. Before there's 86 00:04:08,440 --> 00:04:10,880 Speaker 2: a Menlo Park, California, Menlo before there's a sand Hill 87 00:04:11,000 --> 00:04:14,160 Speaker 2: Road in Silicon Valley, there's a Sandhill Road in Jersey. 88 00:04:14,400 --> 00:04:17,200 Speaker 2: There's all these Jersey guys went on New Jersey's office. 89 00:04:17,200 --> 00:04:23,120 Speaker 1: Back the Stock Movers podcast from Bloomberg Radio. Check back 90 00:04:23,120 --> 00:04:25,520 Speaker 1: with us throughout the day for the latest roundup of 91 00:04:25,600 --> 00:04:28,760 Speaker 1: companies making news on Wall Street and for the latest 92 00:04:28,839 --> 00:04:33,000 Speaker 1: market moving headlines. Listen to Bloomberg Radio Live, catch us 93 00:04:33,000 --> 00:04:36,359 Speaker 1: on YouTube, Bloomberg dot com, and on Applecarplay and Android 94 00:04:36,400 --> 00:04:38,400 Speaker 1: Auto with the Bloomberg Business app.