WEBVTT - Cerebras Goes Public in Year's Biggest IPO 0:00:00.080 --> 0:00:13.400 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 0:00:13.440 --> 0:00:17.200 lie from coast to coast, with Caroline Hyde in New 0:00:17.280 --> 0:00:20.640 York and Vla Loow in San Francisco. 0:00:22.840 --> 0:00:24.680 This is Bloomberg Tech coming up. 0:00:24.720 --> 0:00:27.600 Cisco ches jump the most since twenty eleven of the 0:00:27.600 --> 0:00:31.400 company's earnings results will break them down. Plus, China's Jijingping 0:00:31.560 --> 0:00:34.920 gives a warning to President Trump on Taiwan that tells 0:00:35.000 --> 0:00:38.640 US tech CEOs China will open up more, and ai 0:00:38.760 --> 0:00:42.239 chipmaker Cerebras raises five point five five billion dollars in 0:00:42.280 --> 0:00:47.159 its USIPO, seizing on the surging demand for semiconductors. Will 0:00:47.200 --> 0:00:51.440 be joined by the CEO later this hour. Cisco is 0:00:51.479 --> 0:00:54.320 our top story, and it is actually rising with the 0:00:54.360 --> 0:00:57.000 rest of the market. We're up fifteen percent, on track 0:00:57.040 --> 0:00:59.800 for our biggest jump since twenty eleven, after the open 0:01:00.120 --> 0:01:03.240 hit seventeen percent, putting Cisco on track for its best 0:01:03.320 --> 0:01:05.120 day since two thousand and two. 0:01:05.640 --> 0:01:06.920 It's a pretty simple story. 0:01:07.319 --> 0:01:12.800 Hyperscala demand calendar year twenty six nine billion dollars, up 0:01:12.840 --> 0:01:16.040 from a previous forecast of five billion dollars. Four billion 0:01:16.080 --> 0:01:19.480 of that will translate into actual revenues sales on the 0:01:19.480 --> 0:01:21.399 income statement in this year. 0:01:21.640 --> 0:01:22.559 There are many more. 0:01:22.440 --> 0:01:26.400 Threads, but Cisco is finding its place in this AI 0:01:26.440 --> 0:01:29.400 infrastructure story. It's got out to Bloomberg Equities reporder Ryan V. 0:01:29.520 --> 0:01:30.119 Selica. 0:01:30.240 --> 0:01:32.160 I think Ryan, the best place to start is what 0:01:32.240 --> 0:01:34.480 has the cell side reaction been to this? What are 0:01:34.520 --> 0:01:38.800 the analysts saying? The main thread of their enthusiasm for 0:01:38.880 --> 0:01:40.600 Cisco has been this morning. 0:01:41.600 --> 0:01:45.840 Analysts are very positive and very optimistic that Cisco will 0:01:45.880 --> 0:01:48.760 be able to continue kind of putting up these numbers 0:01:48.800 --> 0:01:50.920 that we saw in this past quarter. There is a 0:01:51.080 --> 0:01:54.800 lot of optimism that Cisco is now really part of 0:01:54.840 --> 0:01:58.880 the AI infrastructure of firmament. It showed very strong demand, 0:01:58.920 --> 0:02:01.600 as you said, from the hype scalers, it's pointing to 0:02:02.040 --> 0:02:04.840 very strong growth going forward. I think there's been a 0:02:04.880 --> 0:02:08.160 growing realization this year that the sort of optical and 0:02:08.280 --> 0:02:11.840 networking companies are a huge part of the whole data 0:02:11.880 --> 0:02:14.919 center build out. And obviously we have seen no end 0:02:15.000 --> 0:02:19.240 of demand and growth for data centers related to AI. 0:02:19.520 --> 0:02:22.360 And Cisco is really well positioned in that it's a 0:02:22.440 --> 0:02:25.919 legacy company, it has a wide product suite that. 0:02:25.880 --> 0:02:26.919 People are using here. 0:02:26.960 --> 0:02:29.520 It seems very well positioned, and it does seem like 0:02:29.560 --> 0:02:34.840 analysts are really sort of seeing additional confirmation of this trend. 0:02:35.120 --> 0:02:37.119 Right, And there's so much to pack into Bloomberg Tech today. 0:02:37.120 --> 0:02:39.760 People are saying, why you're starting on Cisco. The market's 0:02:39.800 --> 0:02:43.639 team is looking at the equities market widely, and Cisco 0:02:43.840 --> 0:02:46.040 is a big factor in kind of the feel good 0:02:46.200 --> 0:02:51.520 that's out there networking is your cables, your switches, your routers, 0:02:52.040 --> 0:02:54.320 that all goes into real data centers, right. But the 0:02:54.400 --> 0:02:57.880 other part of the story is Cisco's discipline. They're cutting 0:02:57.880 --> 0:03:01.320 about four thousand rolls. The company kind of spin that 0:03:01.720 --> 0:03:05.040 as a positive in that that sort of feel good 0:03:05.080 --> 0:03:06.519 around AI in the market today. 0:03:07.320 --> 0:03:10.040 Well, they talked about how they are really focusing and 0:03:10.120 --> 0:03:11.600 prioritizing AI. 0:03:11.919 --> 0:03:13.040 You mentioned the job cuts. 0:03:13.080 --> 0:03:15.240 It does seem like all of their investments are really 0:03:15.280 --> 0:03:18.480 geared toward this in market in particular, So there is. 0:03:18.480 --> 0:03:20.079 A lot of optimism about that. 0:03:20.200 --> 0:03:22.600 And I would just say, as I'm sure you remember, 0:03:22.760 --> 0:03:25.760 Cisco is one of the major companies of the dot 0:03:25.760 --> 0:03:28.360 com era build out. Now, it saw huge growth at 0:03:28.400 --> 0:03:31.360 that time and it only recently surpassed its dot com 0:03:31.360 --> 0:03:33.640 era high. So there's a certain amount of poetic justice, 0:03:33.680 --> 0:03:35.720 I guess, and the fact that AI is a thing 0:03:35.760 --> 0:03:38.440 that is finally bringing it back to record levels. It 0:03:38.440 --> 0:03:40.600 does seem like it is now becoming a real part 0:03:40.840 --> 0:03:43.600 of this technology buildout, just as it was in the 0:03:43.640 --> 0:03:44.840 Internet tech buildout. 0:03:46.480 --> 0:03:48.080 Ryan, you and I were not doing this in the 0:03:48.080 --> 0:03:50.440 dot com era, but you know here and now, Cisco 0:03:50.640 --> 0:03:53.560 is a big story. Bloombers rhyme lslica on the equities desk, 0:03:53.600 --> 0:03:56.400 Thank you so much. Another start we're watching is Klana 0:03:56.520 --> 0:03:59.800 looking at shares, also up fifteen sixteen percent. The company 0:04:00.080 --> 0:04:03.240 posted just one million dollars in first coordinet income, but 0:04:03.240 --> 0:04:06.320 it beat estimates, swinging from a ninety nine million dollar 0:04:06.440 --> 0:04:08.880 loss a year ago. This in the fintech space right, 0:04:08.880 --> 0:04:12.640 revenue jumping forty four percent to one billion dollars, driven 0:04:12.680 --> 0:04:15.680 by higher interest income, growth in debit card sign ups 0:04:15.840 --> 0:04:17.840 partnership fees. It's another one that we had to fit 0:04:17.880 --> 0:04:22.000 in in a very busy Thursday morning. Today, all eyes 0:04:22.040 --> 0:04:24.920 are on Cerebras, the company set to begin trading after 0:04:25.000 --> 0:04:27.840 pricing its IPO at one hundred and eighty five dollars 0:04:27.880 --> 0:04:31.360 a share, raising five point five five billion dollars. The 0:04:31.360 --> 0:04:35.200 biggest USIPO of the year so far, it has been 0:04:35.279 --> 0:04:38.720 mayhem in the market. So far, shares were indicated at 0:04:38.720 --> 0:04:41.719 one point to open at four hundred dollars a share, 0:04:42.120 --> 0:04:44.600 four hundred having priced at one eighty five. I think 0:04:44.600 --> 0:04:47.200 we're now back down at three hundred and fifty dollars 0:04:47.240 --> 0:04:50.039 a share as of one minute past eight Pacific time 0:04:50.080 --> 0:04:53.840 one minute past eleven am Eastern time. Bloomberg's Bailey lip 0:04:53.880 --> 0:04:56.680 Schultz has been my partner in tracking the chaos of 0:04:56.720 --> 0:04:58.760 this IPO for a good few days. 0:04:58.800 --> 0:05:00.919 Now start with the math. 0:05:01.080 --> 0:05:05.280 Yeah, the indicated opening price well beyond one hundred. 0:05:05.040 --> 0:05:06.840 And eighty five dollars a share. What's that telling us? 0:05:06.920 --> 0:05:09.599 It tells us that there's untapped demand. And when you 0:05:09.640 --> 0:05:11.520 look at a deal like this, more than twenty times 0:05:11.520 --> 0:05:14.560 over subscribe. We reported before it even launched there was 0:05:14.600 --> 0:05:17.320 ten billion dollars of demand. So these are huge numbers. 0:05:17.480 --> 0:05:19.400 This is the hottest stock, at least from an IPO 0:05:19.520 --> 0:05:22.520 perspective this year bar none. The big question and you 0:05:22.680 --> 0:05:24.240 asked me, you know, look at the market cap of 0:05:24.279 --> 0:05:26.800 where this could open. If we're getting closer to eighty 0:05:26.839 --> 0:05:28.920 billion dollars, talking to folks on the buy side, they're 0:05:28.960 --> 0:05:32.360 still saying, you know, if in Videa's worth five trillion dollars, 0:05:32.520 --> 0:05:34.719 who's to say that this company doesn't easily treat closer 0:05:34.760 --> 0:05:36.600 to one hundred billion. I don't know what you've been 0:05:36.640 --> 0:05:37.640 hearing about that from your. 0:05:37.560 --> 0:05:39.279 Side, yees so exactly. 0:05:39.320 --> 0:05:41.159 That brings us back to like what is Cerebras. 0:05:41.200 --> 0:05:42.120 What does it do well? 0:05:42.160 --> 0:05:45.640 It is a full stack, vertally integrated supercomputer maker right 0:05:45.680 --> 0:05:48.200 and video makes largely the chips, but the server trays. 0:05:48.320 --> 0:05:51.680 These days, it doesn't build its own servers. Dell does that, 0:05:51.760 --> 0:05:55.800 super Micro does that. Cerebras does the full send package. 0:05:56.480 --> 0:05:58.520 But even at one hundred billion dollars, it's a drop 0:05:58.520 --> 0:06:02.400 in the ocean. Why the market's so enthusiastic about its technology? Like, 0:06:02.440 --> 0:06:05.320 what else do we know about this company's financials or 0:06:05.360 --> 0:06:06.400 its customer backlog? 0:06:06.520 --> 0:06:08.560 The big thing initially when they tried to go public 0:06:08.560 --> 0:06:10.880 call it two years ago was concentration risks, so G 0:06:11.000 --> 0:06:14.720 forty two was pretty much their only customer. They've expanded 0:06:14.720 --> 0:06:16.440 that now you have open AI and others in the 0:06:16.440 --> 0:06:18.240 big pitch ed, at least when I talked to folks 0:06:18.320 --> 0:06:21.039 on the buyside, is how broad based can that be? 0:06:21.160 --> 0:06:24.360 If we're dealing with a market, especially as it relates 0:06:24.400 --> 0:06:27.440 to building some of the compute and everything that goes 0:06:27.440 --> 0:06:30.640 into building out the AI future. If this is just 0:06:30.760 --> 0:06:33.120 the start and we're an early innings, what does this 0:06:33.200 --> 0:06:35.839 ultimately look like? Call it five years from now, and 0:06:35.880 --> 0:06:38.200 the big question is back to your point earlier. If 0:06:38.200 --> 0:06:40.880 this is just a drop in the bucket, there's a 0:06:41.040 --> 0:06:44.359 pretty much massive potential as it relates to going forward. 0:06:44.400 --> 0:06:47.680 Though again, all things considered, we've seen semi sconductor index 0:06:47.800 --> 0:06:51.799 up what thirty percent since they started this process. 0:06:52.520 --> 0:06:55.599 I would say indicated opening prices. They're on the Bloomberg terminal. 0:06:55.640 --> 0:06:56.680 They're not always right. 0:06:56.760 --> 0:06:59.080 Who knows what happened when trade starts with Bloombo's baited 0:06:59.080 --> 0:06:59.599 at Schultz. 0:06:59.720 --> 0:07:00.719 Please don't go far. 0:07:01.080 --> 0:07:03.520 Stay with Bloomberg Tech because coming up later this hour 0:07:03.880 --> 0:07:08.040 we will speak with Cerebra CEO Andrew Feldman, and if 0:07:08.040 --> 0:07:09.360 you're on the socials, hit me up. 0:07:09.640 --> 0:07:10.760 I'll welcome your questions. 0:07:10.920 --> 0:07:14.160 Now, coming up, China's Jujingping gives a warning to President 0:07:14.160 --> 0:07:18.040 Trump on Taiwan. We're gonna have those details next. This 0:07:18.640 --> 0:07:32.000 is Bloomberg Tech, one. 0:07:31.840 --> 0:07:37.280 Of the most important summit in human history, and the 0:07:37.360 --> 0:07:38.720 two the two presidents. 0:07:38.760 --> 0:07:42.160 President, you don't Trump have such a monty relationship. This 0:07:42.240 --> 0:07:47.000 is an incredible opportunity for us to rely on the 0:07:47.120 --> 0:07:49.880 relationships to build up much munch partnership. 0:07:49.960 --> 0:07:52.600 Did you get any specific customers for your chips for 0:07:52.640 --> 0:07:55.240 the eighths two hundred we didn't really talk about. I'm 0:07:55.240 --> 0:07:58.840 here to support the president and to represent the unity. 0:08:00.480 --> 0:08:03.360 That was in Nvidia CEO Jensen Wong speaking to reporters 0:08:03.400 --> 0:08:06.840 in Beijing and telling Bloomberg the company hasn't really discussed 0:08:07.040 --> 0:08:10.240 the h two hundred chips during the president's trips to China. 0:08:10.480 --> 0:08:13.760 He's there to support President Trump. What was discussed though, 0:08:14.080 --> 0:08:18.720 it's Taiwan Jijingping through state news agency calling it quote 0:08:19.000 --> 0:08:22.280 highly dangerous situation for the world's biggest economies. Let's get 0:08:22.280 --> 0:08:25.160 out to bloembig Tyler Kendall, who joins us from Beijing. 0:08:25.440 --> 0:08:26.480 There are many threads. 0:08:26.720 --> 0:08:29.920 We also have the breaking news of the last fifteen minutes, 0:08:30.440 --> 0:08:33.480 the President saying that Iran was discussed and that there 0:08:33.520 --> 0:08:35.000 is some sort of agreement there. 0:08:35.240 --> 0:08:37.559 What do we need to know? What's the latest from China? 0:08:38.000 --> 0:08:40.560 Well, at this point, as you're saying, there are a 0:08:40.640 --> 0:08:42.680 lot of different threads that we could pull on here. 0:08:42.760 --> 0:08:43.600 I can't say that the. 0:08:43.600 --> 0:08:46.600 Overarching theme appears to be that the efforts here in 0:08:46.640 --> 0:08:50.200 Beijing are aimed at stabilizing ties between the US and 0:08:50.280 --> 0:08:53.120 China rather than overhauling them. If we start with the 0:08:53.200 --> 0:08:57.560 latest news, President Trump out saying that Jijingping has pledged 0:08:57.600 --> 0:09:02.240 not to supply with any weapons and that it's going 0:09:02.280 --> 0:09:06.000 to help get Ran to the negotiating table. Perhaps this 0:09:06.080 --> 0:09:08.920 will help make some progress when it comes to what 0:09:08.960 --> 0:09:12.040 has been gridlock in those ongoing discussions, as well as 0:09:12.040 --> 0:09:14.600 a reopening in the Strait of hermus Though we would 0:09:14.600 --> 0:09:17.240 be remiss if we didn't point out that from the 0:09:17.360 --> 0:09:20.400 Chinese readout, we didn't really get any indications that China 0:09:20.480 --> 0:09:23.200 is willing to go further in terms of helping to 0:09:23.360 --> 0:09:27.040 ease that conflict, saying instead that they had extensive dialogue 0:09:27.040 --> 0:09:29.280 about the situation in the Middle East, but not really 0:09:29.280 --> 0:09:32.719 giving us any firmer details there. Another point where there 0:09:32.760 --> 0:09:35.920 appeared to be a mismatch in terms of the public 0:09:36.000 --> 0:09:39.280 readouts from what happened behind closed doors was, as you mentioned, 0:09:39.480 --> 0:09:44.720 that issue related to Taiwan, as Chinese President Jijingping basically 0:09:44.760 --> 0:09:49.720 threatened that Taiwan could derail the US China relationship. That 0:09:49.880 --> 0:09:53.280 was not mentioned when it came to the US readout 0:09:53.360 --> 0:09:55.480 in this and in fact, we just heard from Secretary 0:09:55.520 --> 0:09:59.160 of State Marco Rubio, who appeared to downplane, that the 0:09:59.200 --> 0:10:02.320 concerns were raised after we really saw US officials in 0:10:02.400 --> 0:10:05.320 recent days signal that there would not be a change 0:10:05.360 --> 0:10:08.840 when it comes to US policy regarding Taiwan. Now, we 0:10:08.880 --> 0:10:11.160 can't say, though, that there was a more optimistic tone 0:10:11.280 --> 0:10:14.160 reached when it came to the economic issues, including the 0:10:14.200 --> 0:10:16.960 fact that Chinese President Jijingping did appear to signal a 0:10:17.000 --> 0:10:20.320 move towards greater openness, telling tech execs in the room, 0:10:20.360 --> 0:10:23.680 including Elon Musk, Tim Cook, Jensen Wong, who traveled with 0:10:23.800 --> 0:10:27.600 President Trump in part quote that China's door to the 0:10:27.679 --> 0:10:31.240 outside world will only open wider. Though despite the messaging, 0:10:31.240 --> 0:10:35.559 we haven't really seen tangible signs yet that any steps 0:10:35.640 --> 0:10:38.480 have been taken. But Chinese state media did report that 0:10:38.520 --> 0:10:42.120 these executives told Jijingping directly that they highly value the 0:10:42.240 --> 0:10:45.440 Chinese market and ed as you well know, this US 0:10:45.480 --> 0:10:48.880 business delegation includes these companies that already have high exposure 0:10:48.920 --> 0:10:52.000 to the Chinese market, but also companies like Micron, which 0:10:52.000 --> 0:10:55.680 have seen some of their products barred over cybersecurity concerns 0:10:55.960 --> 0:10:58.320 here in China. We can't say at this point there's 0:10:58.320 --> 0:11:01.160 still a lot that we are waiting for purchase agreements 0:11:01.160 --> 0:11:05.120 when it comes to agriculture, Boeing aircraft, or energy products 0:11:05.160 --> 0:11:08.680 from the US. But the dialogue does continue. These pair 0:11:08.840 --> 0:11:13.400 of leaders do have bilateral meetings going into tomorrow as well. 0:11:13.559 --> 0:11:16.640 Bloomberg's Tyler Kendall with everything you need to know out 0:11:16.679 --> 0:11:19.560 of China so far in the meeting between President Trump 0:11:19.880 --> 0:11:22.000 and China's using ping. Thank you very much, And let's 0:11:22.000 --> 0:11:24.719 get the broader picture with Michelle Guide, the CEO the 0:11:24.800 --> 0:11:28.640 Crack Institute for Tech Diplomacy at Purdue, also served as 0:11:28.679 --> 0:11:31.200 Assistant Secretary of State for Global Public Affairs under the 0:11:31.240 --> 0:11:35.360 first Trump administration. You understand how this works and you 0:11:35.440 --> 0:11:37.760 understand what's at stake, and like here on Bloomberg Tech, right, 0:11:38.040 --> 0:11:40.400 I want to start with Taiwan because for a very 0:11:40.440 --> 0:11:43.079 long time you've been coming on this program and we've 0:11:43.120 --> 0:11:47.400 been talking about Taiwan in the context of America's dependence 0:11:47.640 --> 0:11:51.640 on that nation for semiconductor supply. Right, I'm literally talking 0:11:51.640 --> 0:11:55.920 about TSMC and the manufacturing footprint in China in Taiwan. 0:11:56.040 --> 0:12:00.160 Apologies if we learn anything new here on Taiwan. What 0:12:00.200 --> 0:12:03.160 did you make of President G's statement? I suppose through 0:12:03.200 --> 0:12:03.760 the State. 0:12:03.559 --> 0:12:07.800 Agency, nothing's new here. I think the position that China 0:12:07.840 --> 0:12:10.520 has taken on Taiwan being really important to them when 0:12:10.559 --> 0:12:13.080 it comes to US China relations has been the case 0:12:13.080 --> 0:12:16.679 for quite some time. We know that General Secretary Shijinping 0:12:16.760 --> 0:12:20.199 has been pressuring the President on arm sales to Taiwan 0:12:20.240 --> 0:12:22.360 for a while, so that's not new at all, and 0:12:22.440 --> 0:12:25.720 neither is the United States position on maintaining the status quo. 0:12:25.880 --> 0:12:28.880 As Secretary Rubio said, there's been no change on the 0:12:28.960 --> 0:12:32.800 US position here with regards to Taiwan. But as you 0:12:32.840 --> 0:12:36.319 had mentioned, the ties between Taiwan United States are strong, 0:12:36.360 --> 0:12:39.439 they run deep. Some MY conductors are a critical piece 0:12:39.440 --> 0:12:41.920 of that, and there's been a lot of collaboration with 0:12:42.240 --> 0:12:46.000 TSMC building out here the United States increasingly more over time, 0:12:46.040 --> 0:12:48.880 and I think ultimately the status quo hasn't changed. 0:12:50.040 --> 0:12:52.680 A red headline on the Bloomberg terminal just before we 0:12:52.800 --> 0:12:56.120 came on air, President Trump saying that President G offered 0:12:56.160 --> 0:12:59.960 help on Iran and pledged not to send weapons to Iran. 0:13:00.440 --> 0:13:01.640 The President has said that. 0:13:01.760 --> 0:13:05.600 It wouldn't be an important topic of conversation, but actually, 0:13:05.679 --> 0:13:08.440 if you look at what markets are saying and what 0:13:08.480 --> 0:13:13.000 people are saying on socials, it's a key issue, particularly 0:13:13.000 --> 0:13:14.760 on how it would have a bearing on the straight 0:13:14.880 --> 0:13:15.440 of hormus. 0:13:16.640 --> 0:13:19.600 It's been one of several key issues. I think it's 0:13:19.600 --> 0:13:21.880 not surprising that they talked about Iran. It was looming 0:13:21.920 --> 0:13:25.880 over this entire thirty six hour summit. The fact that 0:13:26.440 --> 0:13:28.840 you had mentioned this breaking news that presidency is going 0:13:28.880 --> 0:13:32.040 to stop supporting the Iranian regime is a positive step 0:13:32.040 --> 0:13:34.560 and I think one that the United States would welcome, 0:13:34.640 --> 0:13:37.640 So again not surprising, And I think overall, the big 0:13:37.679 --> 0:13:39.760 picture on this is, you know, this is a thirty 0:13:39.800 --> 0:13:42.560 six hour summit on all of these agenda items and 0:13:42.640 --> 0:13:46.200 ultimately micro movements in a much bigger picture here of 0:13:46.240 --> 0:13:49.440 the United States and its long term view to achieve 0:13:49.480 --> 0:13:54.760 the Golden Age of America and retain our leadership across 0:13:54.800 --> 0:13:56.880 the world. And China is on its own path to 0:13:57.040 --> 0:13:59.920 China rejuvenation, and the big question is who gets there first? 0:14:00.160 --> 0:14:02.280 And did the thirty six hours in this summit helped 0:14:02.280 --> 0:14:05.480 the United States move incrementally faster toward our vision. 0:14:06.280 --> 0:14:08.480 I just want to disclose the Bloomberg Tech audience that 0:14:08.520 --> 0:14:12.480 President Trump in those comments about Iran and President G's 0:14:12.480 --> 0:14:15.080 commitment for run that was part of a Fox News interview, 0:14:15.240 --> 0:14:19.160 a clip that Bloomberg reviewed. Michelle, would you kindly draw 0:14:19.200 --> 0:14:22.880 on your experience from participating in the first Trump administration? 0:14:23.440 --> 0:14:26.120 What does it take to put a delegation like this 0:14:26.240 --> 0:14:30.560 together that includes Elon Musk Jensen one, picking them up 0:14:31.160 --> 0:14:33.600 in Alaska for the Refield stop on Air Force one, 0:14:33.920 --> 0:14:37.440 and taking the world's most important tech CEOs to China 0:14:37.880 --> 0:14:40.920 as part of a high stakes meeting between President Trump 0:14:41.000 --> 0:14:41.600 and President G. 0:14:42.560 --> 0:14:46.000 Yeah, these things take a lot of preparation historically and 0:14:46.320 --> 0:14:48.320 especially in terms of what you want the meetings to 0:14:48.360 --> 0:14:50.640 be about the readouts coming out of these meetings. However, 0:14:50.680 --> 0:14:54.000 I will say this, this type of delegation is unprecedented, 0:14:54.800 --> 0:14:57.200 and I think if you look at how the President 0:14:57.240 --> 0:15:02.680 has been agile and maybe non traditional in his work, 0:15:02.720 --> 0:15:05.480 so are these tech CEOs. They move fast, and they're disruptive, 0:15:05.480 --> 0:15:07.160 and it's easy to hop on a plane in Alaska 0:15:07.240 --> 0:15:08.920 and go to China. So I'd say, you know, there's 0:15:08.960 --> 0:15:12.480 a lot of planning at the same time with this administration, 0:15:12.600 --> 0:15:15.840 with these types of disruptive tech leaders, there's also a 0:15:15.840 --> 0:15:19.360 lot of room for ad libbing and improvisation, and I 0:15:19.360 --> 0:15:20.440 think that's what we're seeing here. 0:15:21.760 --> 0:15:24.040 Michelle Goad to see you at the Correct Institute for 0:15:24.120 --> 0:15:26.080 Tech Diplomacy at Purdue. 0:15:26.080 --> 0:15:27.520 Thank you very much. 0:15:27.840 --> 0:15:29.640 Now coming up, we're going to get out to Napa 0:15:29.720 --> 0:15:32.520 Valley for our own Caroline Hyde set to speak with 0:15:32.560 --> 0:15:35.880 the CEO of Ericsson on the sidelines of the Spark 0:15:36.000 --> 0:15:37.360 Global Leadership Summit. 0:15:37.480 --> 0:15:39.280 It's coming up next. This is Bloomberg Tech. 0:15:46.040 --> 0:15:48.480 Nuclear power is trying to make a comeback, but the 0:15:48.520 --> 0:15:52.280 resources required are in short supply. From uranium mining to enrichment. 0:15:52.560 --> 0:15:56.520 The supply chain is being reshaped by geopolitics, lobbyists, rising 0:15:56.640 --> 0:16:01.040 energy demand, new technologies. That's the focus of Bloomberg this week. 0:16:01.080 --> 0:16:01.560 Listen to this. 0:16:02.800 --> 0:16:06.560 Global investment in nuclear energy since twenty twenty is estimated 0:16:06.560 --> 0:16:10.160 to be around three hundred billion dollars, with ambitious plans 0:16:10.200 --> 0:16:14.000 in Europe, North America and Asia to revive or kickstart 0:16:14.120 --> 0:16:18.040 their nuclear energy sectors. Every step of the supply chain, 0:16:18.320 --> 0:16:22.440 from mining to enrichment to building reactors is highly regulated 0:16:22.560 --> 0:16:27.200 and controlled. Because a single misstep could be catastrophic and 0:16:27.280 --> 0:16:30.800 erode the public trust nuclear has worked decades to regain. 0:16:31.440 --> 0:16:34.440 It's a real shift from when I came of age 0:16:34.480 --> 0:16:38.200 and everyone was worried about nuclear war because the process 0:16:38.200 --> 0:16:42.360 of enriching uranium for a nuclear fuel the same technology 0:16:42.680 --> 0:16:45.600 that they use for enriching uranium to make nuclear weapon. 0:16:46.440 --> 0:16:49.240 Catch the full episode of Primer on Bloomberg dot com 0:16:49.280 --> 0:16:51.800 and YouTube. Let's get over to the Spark Global Leadership 0:16:51.840 --> 0:16:54.880 Summit in Napo, where own Caroline Hyde is standing. 0:16:54.480 --> 0:16:58.040 By carroc It is a tough life being hosted by 0:16:58.120 --> 0:17:01.200 Consello here in Napa Valley, and I'm very pleased to 0:17:01.240 --> 0:17:04.160 say I'm joined by a giant in telecoms based in Sweden. 0:17:04.240 --> 0:17:07.520 Eriksson is a global company and bory at Com. 0:17:07.400 --> 0:17:08.879 Is here with me. Who is the CEO? 0:17:09.920 --> 0:17:13.440 Tell me about the China exposure you have, You have 0:17:13.720 --> 0:17:17.840 supply chain, that you have, consumer and competition is really 0:17:18.119 --> 0:17:19.960 what you have from China? What did you make of 0:17:20.000 --> 0:17:22.760 the relationship between us and China that we just said overnight? 0:17:23.440 --> 0:17:26.040 Thanks for having me, And that's a great question to ask, 0:17:26.520 --> 0:17:29.399 very hard to answer. Actually we like to do that 0:17:29.400 --> 0:17:33.320 in Jennal No I know, but I think there is 0:17:34.160 --> 0:17:37.960 You know, China is started out as I often look 0:17:38.000 --> 0:17:41.320 at the old telecom movie from China, right, it actually 0:17:41.400 --> 0:17:45.080 started out as being a prioritized sector in China. So 0:17:45.160 --> 0:17:48.840 they had almost one hundred vendors if you go back 0:17:48.880 --> 0:17:53.879 thirty years. They consolidated into really two that became fierce 0:17:53.960 --> 0:17:58.720 competitors in the over a decade, que one Key one 0:17:58.760 --> 0:18:02.399 One Way of course being the biggest, and they started 0:18:02.440 --> 0:18:06.679 out being of course low cost and fairly simple. Today 0:18:06.720 --> 0:18:09.520 they are, of course a phenomenal competitor, and it's the 0:18:09.560 --> 0:18:12.840 one that we benchmark ourselves with and said that's. 0:18:12.680 --> 0:18:14.840 The one we need to beat. 0:18:14.960 --> 0:18:17.720 Actually, we need to win on technology, we need to 0:18:17.720 --> 0:18:21.080 win on cost positions. So for us, the competition with 0:18:21.200 --> 0:18:24.359 China is front and center and has been, and. 0:18:24.480 --> 0:18:27.320 I do believe that for the rest of the world 0:18:27.400 --> 0:18:30.000 to compete with China, you need to lead on technology. 0:18:30.240 --> 0:18:33.439 But you've been outspoken in the past sort of pushing 0:18:33.480 --> 0:18:37.520 against this idea of sort of a focus on your 0:18:37.520 --> 0:18:40.800 own country and banning. In Sweden they pushed out Chinese competition, 0:18:40.840 --> 0:18:42.359 and you actually at the times that that's the wrong 0:18:42.440 --> 0:18:45.560 thing to do in the US. That is your key 0:18:45.600 --> 0:18:48.360 markets now are the US, that Japan, there are other nations. 0:18:48.720 --> 0:18:51.280 How do you think about the China being excluded and 0:18:51.320 --> 0:18:51.800 should they be? 0:18:52.400 --> 0:18:54.639 You know, the way to think about about China is 0:18:54.960 --> 0:18:59.320 actually it's multi pronent. So if you take telecom again 0:19:00.000 --> 0:19:03.560 scale game, they have scale in their domestic market. 0:19:03.640 --> 0:19:05.080 That's a market you need to be in. 0:19:05.880 --> 0:19:09.600 But more importantly, what was also clear is that given 0:19:09.680 --> 0:19:15.600 the development in China economically and use case wise youse 0:19:15.640 --> 0:19:17.280 so data consumption grow much. 0:19:17.240 --> 0:19:19.359 Faster in China than anywhere else in the world. 0:19:19.880 --> 0:19:24.359 That led them to lead on or demanding certain technologies 0:19:24.440 --> 0:19:27.520 ahead of the rest of the world. So unless you're 0:19:27.640 --> 0:19:31.520 on the same development curve as they are in China, 0:19:32.000 --> 0:19:34.720 we're not going to be able to bring those solutions globally. 0:19:35.680 --> 0:19:38.360 So if we take in our case, we have what's 0:19:38.400 --> 0:19:41.800 called massive MIMO. Basically it's a way to increase capacity 0:19:41.800 --> 0:19:46.720 in the radio network. They needed that earlier than in 0:19:46.760 --> 0:19:50.280 the rest of the world, and therefore if you're not 0:19:50.520 --> 0:19:55.160 there when that happens, you don't develop the technologies at 0:19:55.160 --> 0:19:57.840 the same pace as they do in China. So I 0:19:57.880 --> 0:20:01.600 think it's a much more interdependent world. You need to 0:20:01.680 --> 0:20:04.520 think of the world as being interdependent. 0:20:03.880 --> 0:20:07.800 And you're dependent on geopolitics, tariffs, inflationary pressures, the straight 0:20:07.840 --> 0:20:09.800 up all moves again front and center today. How are 0:20:09.800 --> 0:20:10.359 you managing that? 0:20:11.200 --> 0:20:13.720 You know, we actually took a decision a number of 0:20:13.840 --> 0:20:17.400 years ago now to say that we have three home markets. 0:20:18.160 --> 0:20:22.040 So that was recognizing the US because it's a. 0:20:22.080 --> 0:20:23.200 Front runder market. 0:20:23.720 --> 0:20:28.560 Big India in those days was big today it's starting 0:20:28.600 --> 0:20:32.439 also to be front runder on technology Japan. Japan is 0:20:32.920 --> 0:20:36.600 very big in telecom and also an early adopter of telecom, 0:20:36.640 --> 0:20:39.120 so we said that's markets we need to win in 0:20:40.240 --> 0:20:43.480 to make sure that we combat the scale of China. 0:20:43.640 --> 0:20:46.320 So we did that. Then we said we need a 0:20:46.359 --> 0:20:51.240 flexible supply chain in order to manage any disturbances. So 0:20:51.280 --> 0:20:53.439 we built a factory here in the US. 0:20:53.920 --> 0:20:56.040 How big is you're manufacturing now here in the US? 0:20:56.080 --> 0:20:59.399 We manufactured pretty in a large portion of what's supplied 0:20:59.440 --> 0:21:02.439 to the US manufactured here in the US. So we 0:21:02.520 --> 0:21:06.800 built that in twenty commissioned at about twenty twenty, so 0:21:06.840 --> 0:21:10.280 we were ahead of the really supplied constraints in that 0:21:10.440 --> 0:21:13.560 sense and the tariff issues. So we've been able to 0:21:13.720 --> 0:21:19.080