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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live

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Speaker 1: from coast to coast with Caroline Hide in New York

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Speaker 1: and Eva Though in San Francisco.

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Speaker 2: This is Bloomberg Tech coming up, Tech earnings Bonanza, Apple, Amazon,

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Speaker 2: also Reddit and Twilio. Will break them all down with

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Speaker 2: experts and their C suite, plus Nvideo CEO Jensen Wy

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Speaker 2: I'm still hopes to sell it's blackweld chips to customers

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Speaker 2: in China.

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Speaker 3: We'll discuss that and a flurry of Korean deals.

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Speaker 2: And we sit down with Carewe CEO Michael in Trader

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Speaker 2: to talk AI infrastructure after a failed take of a

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Speaker 2: bid for Core Scientific. But first we check in on

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Speaker 2: these markets, which are not quite at a record high

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Speaker 2: or we're back up and to the right when it

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Speaker 2: comes on the day. We're looking at the AI bubble

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Speaker 2: back in focus, but AI boom really what's driving these

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Speaker 2: stocks high over the course of the week. We shrug

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Speaker 2: off government shutdown. We're putting to one side geopolitical risks.

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Speaker 2: We're up two point six percent on the NASA one

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Speaker 2: hundred for this week alone. Let's move into what's happened

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Speaker 2: on an individual basis and the key story of the

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Speaker 2: day is Amazon Nook. We are at a new record high.

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Speaker 2: We're up almost eleven percent for this particular company, and

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Speaker 2: this is as they show that AWS cloud growth is

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Speaker 2: back on top. It's a bitter pill for many to

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Speaker 2: swallow who have lost their roles at this particular company.

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Speaker 2: Remember we started the week talking about fourteen thousand jobs ago.

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Speaker 2: Let's stick into all of that at the moment because

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Speaker 2: I'm pleased to say Brad Erickson is here with us.

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Speaker 3: RBC Capital Markets.

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Speaker 2: Is of course a key Internet analyst there, and you've

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Speaker 2: still got an out.

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Speaker 3: Perform rating on the stock.

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Speaker 2: You think the price could go higher from where we

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Speaker 2: are currently ten point eight percent, you see it hitting

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Speaker 2: three hundred. Brad, just talk us through what you liked

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Speaker 2: in the numbers.

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Speaker 4: Yeah.

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Speaker 5: I think obviously the reacceleration to twenty percent on AWS

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Speaker 5: and Q three was like the headline critical metric they

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Speaker 5: had to do.

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Speaker 4: They did it, and so that really got the stock going.

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Speaker 5: And then I think as you think about, you know,

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Speaker 5: going forward, they're getting this capacity deployed faster than we

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Speaker 5: would have thought maybe a quarter ago. And they gave

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Speaker 5: some nice detail around some of the power, you know,

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Speaker 5: the gigawatts that they've been able to deploy and some

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Speaker 5: forward commentary there, and it's and it just comes down

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Speaker 5: to kind of simple math. They're not saying they're going

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Speaker 5: to accelerate necessarily on AWS, but if you do the math,

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Speaker 5: it implies that they probably will and that means there's

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Speaker 5: probably a lot of upside to street numbers.

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Speaker 4: And so that was the point we were making in

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Speaker 4: our note.

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Speaker 2: I mean think were eight gigawats is massive when you

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Speaker 2: think about each gigawat potentially up to a million homes.

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Speaker 2: That's how much they put on in the last twelve months.

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Speaker 2: What are you making the vertical integration here as well?

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Speaker 2: The fact that they're saying that their Trainium chips are

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Speaker 2: already a multi billion dollar company. How much does that

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Speaker 2: build to future revenues?

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Speaker 5: Yeah, you know Trainium to go with your second part. First,

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Speaker 5: Trainium two is largely being used for Anthropic, which is

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Speaker 5: kind of the major enterprise player in the generative AI space.

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Speaker 5: They're going to continue to grow a lot. They're going

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Speaker 5: to double the number of chips at the at the

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Speaker 5: at the Rainier site by the end of the year.

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Speaker 5: So it's it's uh, you know that is going to

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Speaker 5: continue to scale up and drive a ton of revenue growth,

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Speaker 5: and it is material to next year. And this is

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Speaker 5: one hundred and thirty billion dollar business. So it gives

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Speaker 5: you a sense in terms of just you know, taking

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Speaker 5: vertically integrating.

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Speaker 4: It's massively important.

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Speaker 5: Right the power grid is not set up for these

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Speaker 5: data centers, and they have massive needs, massive cooling needs,

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Speaker 5: massive water needs, and so it has and will always

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Speaker 5: likely continue to make sense for these guys to to

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Speaker 5: make sure they can do that on their own or

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Speaker 5: at least become less tied to third parties.

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Speaker 4: So it's I think it's the right thing to do.

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Speaker 2: And in Jesse's time and time again been like supplies

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Speaker 2: the issue here, not demand, Brad. What's interesting is that

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Speaker 2: general to AI gets rippled through the entire business.

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Speaker 3: We're looking at Rufous, of course, which is helping us

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Speaker 3: decide what we're.

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Speaker 2: Going to be buying on Amazon if we needed any

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Speaker 2: more help on that. That's saying they can add another

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Speaker 2: ten billion dollars. It's interesting to then dovetail that with

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Speaker 2: what came at the beginning of the week. Look, corporate

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Speaker 2: jobs are going at Amazon and many ways Andrew Jesse

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Speaker 2: steered us to that four months ago. Is that inevitable

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Speaker 2: when they're looking to bring general to ai.

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Speaker 3: IS as a way to catalyze the business.

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Speaker 5: Yeah, I mean kind of two parts of that, right,

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Speaker 5: RUFUS is really intended to sort of you know, add

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Speaker 5: a we'll call it a tailwind to your shopping experience

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Speaker 5: and your conversion, so literally get you to buy more stuff.

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Speaker 4: So that's that part of it.

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Speaker 5: The head count thing is tricky because you're right, like

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Speaker 5: initially you kind of follow the fact pattern, and then

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Speaker 5: what we know of some other companies and the efficiencies they're.

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Speaker 4: Getting clearly generative ai IS.

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Speaker 5: It is very likely that it is contributing to job

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Speaker 5: losses right now, and some companies are overtly saying it.

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Speaker 5: Last night, you know, Andy Jasse, the CEO, said that

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Speaker 5: largely it was kind of a function of over hiring

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Speaker 5: middle management, you know, trying to sort of flatten the

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Speaker 5: organization a little bit more so not related to jenerti

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Speaker 5: AI But I think by all intent and purposes, you

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Speaker 5: have to think that trend is going to continue. And yeah,

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Speaker 5: it's a little concerning from a deflationary standpoint, I would say,

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Speaker 5: but you know, that's what we know so far.

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Speaker 2: Rad Erickson of RBC Capital Markets really appreciate your analysis

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Speaker 2: this morning.

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Speaker 3: Thank you very much. Indeed, Happy Halloween.

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Speaker 2: Meanwhile, let's talk about Apple, which is looking a little

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Speaker 2: uglier than it did earlier in terms of stock price.

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Speaker 2: But earnings came out yesterday and the iPhone maker said

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Speaker 2: that sales rose nearly eight percent in its fiscal fourth

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Speaker 2: Courting predicted a jump in holiday sales. Chares actually did

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Speaker 2: do very well after market, but they've come back down

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Speaker 2: this morning. Let's discuss the results and what the share

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Speaker 2: reactions is currently doing. Carolina Milanaisy, President, principal analyst over

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Speaker 2: at Creative Strategies, you're really the person we turn to

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Speaker 2: when you think about how they're innovating, where they're pushing forward.

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Speaker 2: Were you surprised by the overall sales growth when many

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Speaker 2: thought that iPhone seventeen wasn't gonna be the catalyst that

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Speaker 2: we're hopeful.

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Speaker 3: I wasn't.

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Speaker 6: And the reason is because, as I talked to you

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Speaker 6: in the past, hardware refresh when the actual hardware looks different,

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Speaker 6: always drive upgrades. People still want to rely on the

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Speaker 6: device that is in their pocket twenty four to seven,

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Speaker 6: but make it look different. This year, we got that

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Speaker 6: with the air which is not the main seller for Apple,

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Speaker 6: But it doesn't matter is getting people back in the

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Speaker 6: stores to see the rest of the portfolio. It was

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Speaker 6: really interesting yesterday that Cook mentioned that supply issues on

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Speaker 6: the sixteen model, not just on the seventeen, and that

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Speaker 6: is a good reminder that a new model every September

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Speaker 6: brings people back in stores. An upgrade to previous models

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Speaker 6: as well, is not just the latest. Is the portfolio

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Speaker 6: with maybe some price adjustment and some career promotions that

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Speaker 6: drive the upgrade.

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Speaker 2: Fewer upgrades going on in China, though, What did you

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Speaker 2: make of the pullback?

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Speaker 3: A surprising pullback in that particular region.

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Speaker 6: I think part of it is the economic situation in China.

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Speaker 6: We have seen kind of hot and cold. From a

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Speaker 6: consumer perspective, the timing was later in the quarter, so

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Speaker 6: it takes a little bit longer. From a supply chain perspective.

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Speaker 6: We also need to remember the supply chain has moved

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Speaker 6: away from China, so there is some adjustment to make

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Speaker 6: as well because of the US and the production shifting

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Speaker 6: to India. But the most important thing is what Tink

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Speaker 6: Cook said, which is signals towards the end of a

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Speaker 6: quarter was positive, people were going back into the stores,

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Speaker 6: but the big quarter for China is always Q one,

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Speaker 6: that is Chinese New Year by then there's hope that

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Speaker 6: the supply constraint that Apple has said, especially in the

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Speaker 6: higher models, which is usually where China gravitates s towards,

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Speaker 6: will be resolved and that's where the big quarter should

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Speaker 6: come in. And if it doesn't, that's when I'm going

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Speaker 6: to start worrying. But for now I'm not worried, and.

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Speaker 2: They digest the eSIM situation as well. I spy a

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Speaker 2: cowboy Kata memorabilia behind you. I love that tour too.

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Speaker 2: Let's just talk about the services side. The music side

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Speaker 2: is part of that, but services really is what drove

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Speaker 2: the strength at the moment. Can that be reliable going forward?

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Speaker 2: When we think about the regulatory pressure on the app store.

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Speaker 6: For example, I think it can because more and more

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Speaker 6: is raelly content and is also advertising. We've seen Apple

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Speaker 6: clothes a deal with f one, so they'll start streaming

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Speaker 6: f one, which is becoming more and more popular in

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Speaker 6: the US and across the globe. With the demographic that

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Speaker 6: Apple is really really keen in keeping and growing which

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Speaker 6: is gen zers and younger millennials.

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Speaker 7: So I think that that is real.

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Speaker 6: The opportunity for Apple is on the content side, is

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Speaker 6: the engagement side, and they're also over time will coming

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Speaker 6: to play with Apple Vision prog.

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Speaker 3: I mean, very briefly, what about the AI side.

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Speaker 6: Well, we have been promised and improved theory coming in

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Speaker 6: twenty twenty six, and as we discussed before, Apple has

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Speaker 6: some time to figure this out. I think that most

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Speaker 6: of us have figured out what a I can do

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Speaker 6: for us in a productivity setting, but not yet on

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Speaker 6: a personal way. And I think that's where Serri is

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Speaker 6: going to play the most.

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Speaker 2: Parently and Melane saying always great catching up with your president,

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Speaker 2: principal analyst, how creator strategies?

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Speaker 3: Happy we kend. Meanwhile, coming up the.

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Speaker 2: Parade of earnings that continue, is going to be talking

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Speaker 2: to twin d CEO about their results.

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Speaker 3: Next. This has been big tech.

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Speaker 2: Shares of Twilio, as you see spiking today up seventeen percent.

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Speaker 2: Let's call it after the company reported strong third quarter

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Speaker 2: results gave a bright outlook as well. Let's discuss it

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Speaker 2: all because aimership channelers with us, Twilio CEO, analysts, investors

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Speaker 2: very excited about the Voice AI applications in particular for

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Speaker 2: their customer engagement.

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Speaker 3: Is that what drives us well.

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Speaker 8: We had a great quarter, and I would say across

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Speaker 8: the board, Voice Ai was certainly a contributor, but every

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Speaker 8: single one of our products contributed this time. I'd say

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Speaker 8: messaging and Voice in particular were particularly strong. In addition

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Speaker 8: to that, across channels, across geos, across customer segments. It

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Speaker 8: was just a really good quarter for us, and fortunately

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Speaker 8: we were able to beat on revenue, profit, cash flow as.

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Speaker 9: Well as race for the year. So we're pretty excited

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Speaker 9: about the results.

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Speaker 2: You'd go into the detail of how the ten largest

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Speaker 2: Voice AI startup customers are increasing by ten x, where

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Speaker 2: particularly they finding the rewards because many you've questioned, really

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Speaker 2: the sort of pilots, whether they're working or not, Where

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Speaker 2: have yours been working?

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Speaker 9: I think you've got two ends of the spectrum.

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Speaker 8: So on the one hand, you've got Voice AI startups,

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Speaker 8: and these are companies that want to get going super quickly, right,

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Speaker 8: so we're an extremely well known brand. They come to

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Speaker 8: us first in most cases, and so we're really lucky

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Speaker 8: to be able to count on their business just to

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Speaker 8: get their workloads out in the world.

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Speaker 9: On the other hand, though, you've also got enterprises.

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Speaker 8: Enterprises they definitely see an opportunity to take out costs

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Speaker 8: but as well as enhance their revenue experience, and so

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Speaker 8: I think more durably you're seeing enterprise customers begin to

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Speaker 8: adopt these tools. It's probably happening at a slower rate

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Speaker 8: than it is with the voice AI startups, but all

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Speaker 8: the same, it's really exciting.

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Speaker 2: I just think about some of your key customers lift

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Speaker 2: Red at Dell, Resie, Uber, Shopify, some of the biggest

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Speaker 2: brands out there, key bank analysts in particular, signaling that

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Speaker 2: this is just a way that they think is just

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Speaker 2: beginning to build. How much larger do you think this

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Speaker 2: has become? How much am I just going to be

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Speaker 2: talking in a customer relations perspective by voice?

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Speaker 8: I think it's going to become pretty commonplace. I mean,

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Speaker 8: you're already starting to see it. I'm sure you've experienced

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Speaker 8: it a handful of times in your interactions. I think

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Speaker 8: what's key about being able to deliver a good experience

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Speaker 8: is being able to have contextual data underneath it all.

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Speaker 8: If you have contextual data, which is a big part

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Speaker 8: of our story in communications, plus contextual data plus AI,

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Speaker 8: but that data is what really allows the customer's problem

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Speaker 8: to get solved. Right, you don't want just cool tech?

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Speaker 8: Do you want problems to get solved? Do you want

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Speaker 8: to be able to create richer and richer experiences that

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Speaker 8: actually create customer engagement?

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Speaker 9: And I think that's where the real unlock is.

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Speaker 2: The real I'm not being about AI agents so many,

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Speaker 2: and I know you've actually been making some acquisitions in

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Speaker 2: that space. You think about stitch, the identity platform within

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Speaker 2: AI agents, is M and A going to be a

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Speaker 2: real use case here for you to bolt on to

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Speaker 2: get the talent that you need to get the tech.

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Speaker 3: That you need.

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Speaker 9: I think we have optionale.

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Speaker 8: I mean, we're generating so much cash that we've been

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Speaker 8: buying back a lot of our own stock. We also

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Speaker 8: just dipped our toe, as you pointed out, into M

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Speaker 8: and A. Stitch was a great apposition from our perspective.

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Speaker 8: A small tech and talent tuck in less than one

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Speaker 8: hundred million dollars in purchase price, and I think it's

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Speaker 8: exactly the right kind of asset that allows us to

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Speaker 8: accelerate our roadmap with that one. In particular, they're very

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Speaker 8: developer focused, which is very much in our DNA, and

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Speaker 8: they also allow us to faster realize our platform ambitions

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Speaker 8: in terms of delivering purely agent experiences that require identity

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Speaker 8: to be a part of it for us to be

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Speaker 8: able to trust who we're interacting with.

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Speaker 2: Twilio shares just showing how much people loving this revenue

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Speaker 2: and the numbers. Gross margin still an area that some

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Speaker 2: called out is being pressured quickly.

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Speaker 3: Is that something you'll focused on.

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Speaker 8: I mean, of course we're focused on it right The

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Speaker 8: commitment that we made last quarter to investors was that

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Speaker 8: we would stabilize gross margins, and I think in Q

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Speaker 8: three that's exactly what we did. Will continue to work

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Speaker 8: to stabilize gross margins. I think it kind of overshadows

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Speaker 8: the story in some respects. I mean, the reality is

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Speaker 8: is that we maintain an incredible amount of price discipline.

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Speaker 8: A lot of that gross margin pressure, frankly, comes from

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Speaker 8: two areas. One is the success that we're having in

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Speaker 8: our messaging business, which is growing super fast. I don't

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Speaker 8: really think we should have to apologize for that, and frankly,

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Speaker 8: I think that allows us to grow into other customer

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Speaker 8: opportunities over time. And then the other area is just

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Speaker 8: fees that get passed down by carriers. I think that

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Speaker 8: is purely an optical element of the story. It doesn't

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Speaker 8: impact our ability to generate gross profit and importantly has

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Speaker 8: not impeded our.

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Speaker 9: Ability to drive operating leverage and free cash flow.

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Speaker 2: That's not impeding the stock today either, because Amoship Chandler

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Speaker 2: great to have some time with the Trilia CEO now

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Speaker 2: also delivering a better than expected forecast was Reddit. Social

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Speaker 2: media platforms benefited from data licensing deals of course of

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Speaker 2: open Ai and Google. That's really about growing advertising business

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Speaker 2: that drives At this time.

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Speaker 3: We spoke with the Reddit COO Gen Wong.

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Speaker 10: I think a lot of the things that we're doing

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Speaker 10: are working. You saw our active advertiser account grow seventy

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Speaker 10: five percent year every year in Q three, and I

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Speaker 10: think that's the result of our go to market and

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Speaker 10: acquisition investments, as well as making our platform more automated

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Speaker 10: and simple to use, as well as really delivering more performance,

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Speaker 10: particularly at the mid and lower funnel where a lot

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Speaker 10: of mid market and SMB businesses like to transact. We

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Speaker 10: also grew nine out of fifteen verticals over fifty percent

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Speaker 10: year every year, and I think that shows the diversification

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Speaker 10: of our business, how robust it is across every vertical

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Speaker 10: and every objective, so every advertiser can find success on

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Speaker 10: our platform. So those investments that we've made are really

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Speaker 10: paying off.

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Speaker 2: And the investments in translation when you're paying off, when

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Speaker 2: you think about diversification and internationally, how is that still working?

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Speaker 2: How much low hanging fruit is there to grow outside

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Speaker 2: the United States?

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Speaker 10: Well, I think there's this enormous headroom outside of the US.

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Speaker 10: Our traffic today is about fifty five percent outside of

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Speaker 10: the US and forty five percent in the US, and

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Speaker 10: the rest of the world has been growing. And every

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Speaker 10: country that is a non English country is just an

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Speaker 10: opportunity to build another Reddit. And the process of doing

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Speaker 10: that starts with machine translation, using AI to translate universal

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Speaker 10: conversations so that somebody in France or Germany who operates

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Speaker 10: in a non English language can have access to great

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Speaker 10: content and communities on Reddit. And then the process of

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Speaker 10: building local communities so that if you're in France you

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Speaker 10: have a local bred community. German in Germany your are

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Speaker 10: local football communities, so that it feels local, your city communities.

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Speaker 10: All of that is opportunity for us, and opportunities to

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Speaker 10: build another reddit for every language in culture.

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Speaker 2: It's really interesting that AI is really the tailwind here,

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Speaker 2: whether it's the ability to serve your companies, those that

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Speaker 2: are advertising with you that much more sophisticated applications, the

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Speaker 2: way in which they're able to advertise with you, whether

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Speaker 2: or not it's the AI that's helping you do translation.

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Speaker 2: But also we know that a big part of the

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Speaker 2: business has started to become how you're used by AILM producers.

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Speaker 3: How is that a stage priority?

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Speaker 2: Can you just weigh it up for us, the prioritization

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Speaker 2: of advertising versus a prioritization of making these deals with

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Speaker 2: big lms if you already have done with Google and

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Speaker 2: open Ai.

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Speaker 7: Yeah, our core business is advertising.

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Speaker 10: It's a business model that has a lot of TAM

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Speaker 10: and you know is a big addressable market.

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Speaker 7: I think we've a lot of headroom there.

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Speaker 10: Our ad platform is growing, our marketplace is growing, as

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Speaker 10: I said, sixty percent plus year overy year, and we

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Speaker 10: really like our roadmap there. There are thousands more advertisers

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Speaker 10: that can be on our platform, in addition to more

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Speaker 10: verticals and more geographies to come onto our ad platform.

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Speaker 10: So we see a lot of opportunity there. Across the funnel,

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Speaker 10: in automation, in ad formats, and even in delivering more

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Speaker 10: performance for our advertisers.

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Speaker 7: So that's our core business and that's where we're focused.

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Speaker 2: What about the AI chatbots and then actually helping you

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Speaker 2: in terms of driving traffic?

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Speaker 3: When does that really start to bring to bear?

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Speaker 10: You know, that's a space that is just under incredible

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Speaker 10: heavy construction because it's also new and it's changing. The

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Speaker 10: UI is changing, the products are changing, you know, how

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Speaker 10: we think about you know, the use of AI, even

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Speaker 10: on our platform on Reddit is changing.

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Speaker 7: So you know, it's hard to say, I think, but

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Speaker 7: I think.

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Speaker 10: You know, I would say the relationships that we have

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Speaker 10: with the lms are not partnerships. The relationships are really

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Speaker 10: healthy and we continue to learn a lot through these partnerships.

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Speaker 10: I think we've certainly learned that our data is highly appreciated,

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Speaker 10: it's highly used insided. I think we're the top most

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Speaker 10: source domain in Q three, So I think, you know,

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Speaker 10: we're watching that area very very closely as it evolves.

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Speaker 2: Jen Wong read it COO there talking of relationships with

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Speaker 2: l lms. In video, CEO Jensen Wang says he's still

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Speaker 2: hopeful that the company would be able to supply Blackwell

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Speaker 2: type chips at least to China.

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Speaker 3: Quote someday.

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Speaker 2: This is the company caps off a huge week, hitting

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Speaker 2: a five trillion dollar market capital. Marsine King, who covers

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Speaker 2: it Semident Conductor Space, has been on this relentlessly.

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Speaker 3: What a week in.

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Speaker 2: And look, this is pushing back at some of the

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Speaker 2: anxiety that brew yesterday that China just wasn't on the

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Speaker 2: table when it came to a discussion between Trump and she.

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Speaker 11: Yeah.

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Speaker 12: I mean there's there's been so many twists and turns

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Speaker 12: in this one, just in the space of this week.

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Speaker 12: Jensen's been obviously making his case in Washington. Now he's

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Speaker 12: making his case in person in Asia where the president is.

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Speaker 12: President Trump mentioned this black Well chip, said, raised the possibility,

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Speaker 12: raised everybody's hopes, and then kind of took it away

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Speaker 12: a little bit. So we don't really know where we

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Speaker 12: are now other than hoping that, you know, because it's

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Speaker 12: being discussed that there is more possibility over in Vidio

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Speaker 12: doing more business in China.

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Speaker 3: Certainly more business in South Korea.

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Speaker 2: I just want to bring what our own Sharryan was

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Speaker 2: able to say and catch up with the CEO Jensen

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Speaker 2: Huang Wl in a newsagrum in South Korea.

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Speaker 3: Just take a.

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Speaker 12: Listen in what's the potential of sovereign programs that you mentioned,

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Speaker 12: especially across Asia.

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Speaker 13: Well here in Korea, Korea has a chance to be

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Speaker 13: one of the world's major AI hubs. And today's announcement,

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Speaker 13: along with President Lee's passion and enthusiasm and drive and

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Speaker 13: all of my CEO friends here who are dedicated to

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Speaker 13: create this journey for Korea, this is a perfect example

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Speaker 13: of sovereign AI CEO friends paying Samsung Hai and I

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Speaker 13: sk Group.

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Speaker 2: There was a lot going on, but some sovereign AI

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Speaker 2: two for them.

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Speaker 12: In career, yeah, no, He's trying to make career and

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Speaker 12: to yet another example of this push that he sees

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Speaker 12: of let's deploy AI everywhere. Let's let's get it in

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Speaker 12: government organizations, let's get it in corporate situations, and career

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Speaker 12: obviously has a vibrant tech economy companies like Samsong, So

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Speaker 12: he's seeing this as as another perhaps exemplary kind of

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Speaker 12: position and country for this push that he's making around

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Speaker 12: the world.

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Speaker 2: Two hundred and sixty thousand accelerator chips to go to Korea,

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Speaker 2: Blue megs, Ian King, we thank you and Look, there

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Speaker 2: was more than just chips over in South Korea. Shares

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Speaker 2: of fried chicken stocks have got the Nvidia effect. Restaurant

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Speaker 2: cochron F and B briefly surged abouch as twenty percent

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Speaker 2: on Friday, while Korean poultry process a Cherry Brod also

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Speaker 2: sold by the daily thirty percent trading volume.

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Speaker 3: About two hundred times on average.

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Speaker 2: And also makers of chicken frying roots jumped. Why because

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Speaker 2: Jensen Wang eight fried chicken in South Korea alongside the

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Speaker 2: Samsung CEO and others.

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Speaker 3: Wow, he manages to drive up share prices across the board.

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Speaker 2: Welcome back to Newberg tech boy, we got a busy

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Speaker 2: markets day for you. So many earnings that digest because

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Speaker 2: we're currently seeing the Nasdaq once again trading higher, up

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Speaker 2: a percentage point, not yet at a record high and

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Speaker 2: not shaking off yesterday's sell off, but we're still trading

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Speaker 2: to the upside.

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Speaker 3: As Amazon leads the pack points perspective.

443
00:22:34,600 --> 00:22:37,679
Speaker 2: We're up eleven percent, new record highs for Amazon aws

444
00:22:37,760 --> 00:22:41,159
Speaker 2: growth more than twenty percent. Meanwhile, Apple as she fades

445
00:22:41,160 --> 00:22:42,920
Speaker 2: into the red we were during high before the bell.

446
00:22:42,960 --> 00:22:44,560
Speaker 2: We then took off maybe a bit of profit taking

447
00:22:44,600 --> 00:22:47,479
Speaker 2: going on as they deliver what was better than expected

448
00:22:47,520 --> 00:22:50,080
Speaker 2: revenue for their fiscal fourth quarter and point towards what

449
00:22:50,240 --> 00:22:53,320
Speaker 2: at least ten percent twelve percent sales growth for their

450
00:22:53,560 --> 00:22:56,719
Speaker 2: all important holiday quarter. Move on, have a little look

451
00:22:56,760 --> 00:22:59,240
Speaker 2: at what's happening in the world of Netflix. Another stock split.

452
00:22:59,359 --> 00:23:01,679
Speaker 2: Yesterday we were hearing it, of course coming from service.

453
00:23:01,720 --> 00:23:04,040
Speaker 2: Now today three point seve percent higher on Netflix, which

454
00:23:04,119 --> 00:23:06,600
Speaker 2: is one and twenty nine dollars per share.

455
00:23:06,800 --> 00:23:07,840
Speaker 3: They want to rectify that.

456
00:23:07,840 --> 00:23:09,760
Speaker 2: They're going to do a ten for one forward stock

457
00:23:09,760 --> 00:23:12,919
Speaker 2: split to reset that share price. But let's return to

458
00:23:12,960 --> 00:23:15,400
Speaker 2: the world of other areas of AI and in particular

459
00:23:15,520 --> 00:23:19,280
Speaker 2: Core Scientific shareholders, which voted down Corwy's takeover bid, rocking

460
00:23:19,280 --> 00:23:22,080
Speaker 2: the proposed acquisition. But Core we'ves not slowing down an

461
00:23:22,200 --> 00:23:24,080
Speaker 2: m and A and that' seeing yesterday that it will

462
00:23:24,119 --> 00:23:27,320
Speaker 2: acquire Marimo, it's a maker of AI software, just minutes

463
00:23:27,359 --> 00:23:29,280
Speaker 2: after the Core Scientific deal was terminated.

464
00:23:29,760 --> 00:23:31,640
Speaker 3: Here joining us to discuss coreyve.

465
00:23:31,359 --> 00:23:34,480
Speaker 2: CEO Michael Intrator a very busy week, and I want

466
00:23:34,480 --> 00:23:36,800
Speaker 2: to just dwell a little bit on Core Scientific because

467
00:23:37,520 --> 00:23:41,080
Speaker 2: you're very important Core Scientific. You are their only customer.

468
00:23:41,520 --> 00:23:44,760
Speaker 2: You'd hope to bring them on keep using their compute

469
00:23:45,119 --> 00:23:45,760
Speaker 2: what happens now.

470
00:23:45,840 --> 00:23:47,040
Speaker 3: How solid is that partnership?

471
00:23:47,480 --> 00:23:49,359
Speaker 14: Oh, I think the first of all, thank you for

472
00:23:49,400 --> 00:23:53,520
Speaker 14: having me in Happy Halloween, then Happy Ada. So the

473
00:23:53,560 --> 00:23:59,199
Speaker 14: partnership is very, very solid. You know, we continue to

474
00:23:59,240 --> 00:24:02,679
Speaker 14: be a consumer of the services they provide. We continue

475
00:24:02,680 --> 00:24:05,639
Speaker 14: to be a consumer for the next ten or fifteen

476
00:24:05,720 --> 00:24:12,760
Speaker 14: years of with a series of extensions of the infrastructure

477
00:24:12,840 --> 00:24:15,159
Speaker 14: that that that they provide and that we require in

478
00:24:15,280 --> 00:24:17,840
Speaker 14: order to deliver our products. So you know, what the

479
00:24:17,880 --> 00:24:20,639
Speaker 14: relationship is in is in is in good shape. The

480
00:24:20,640 --> 00:24:27,720
Speaker 14: the the uh. The shareholders voted down the acquisition yesterday

481
00:24:29,280 --> 00:24:32,040
Speaker 14: and you know, from a strategic perspective, I think everybody

482
00:24:32,040 --> 00:24:34,200
Speaker 14: on both sides of the fence really felt like it

483
00:24:34,280 --> 00:24:37,679
Speaker 14: made sense and it really just came down to price.

484
00:24:38,119 --> 00:24:41,720
Speaker 14: And for us, you know, we we put out a

485
00:24:42,320 --> 00:24:44,920
Speaker 14: bid where where as you said, we're quite acquisitive. We've

486
00:24:45,160 --> 00:24:50,080
Speaker 14: we've we bought Marimau yesterday, we bought weights and biases, monoliths,

487
00:24:50,800 --> 00:24:54,440
Speaker 14: open Pipe, We've we've really been buying and building the

488
00:24:54,920 --> 00:24:59,920
Speaker 14: AI cloud. And there is a price point that made

489
00:25:00,080 --> 00:25:03,960
Speaker 14: sense for us to move forward with that transaction. And

490
00:25:04,080 --> 00:25:06,000
Speaker 14: we have a plan and we are going to be

491
00:25:06,119 --> 00:25:10,920
Speaker 14: very disciplined around that plan, and you know, at approximately

492
00:25:10,960 --> 00:25:15,440
Speaker 14: ten percent it made sense. And if it's going to

493
00:25:15,480 --> 00:25:17,520
Speaker 14: be above that, then then we'll continue to use them

494
00:25:17,520 --> 00:25:18,040
Speaker 14: as a vendor.

495
00:25:18,280 --> 00:25:22,640
Speaker 2: Well, Core Scientific now tries to diversify its own customer

496
00:25:22,680 --> 00:25:23,920
Speaker 2: base other than just you.

497
00:25:24,080 --> 00:25:25,159
Speaker 3: Does that give you a new worry?

498
00:25:25,480 --> 00:25:28,640
Speaker 14: No, not at all. Look, you know, our footprint within

499
00:25:28,840 --> 00:25:33,360
Speaker 14: the Core Scientific ecosystem is about I think it's about

500
00:25:33,400 --> 00:25:38,399
Speaker 14: five hundred and eighty megawats worth of infrastructure. This quarter,

501
00:25:38,600 --> 00:25:44,720
Speaker 14: we've signed over six hundred megawatts of data center infrastructure

502
00:25:45,480 --> 00:25:50,800
Speaker 14: outside and you know, exclusively outside of Core Scientific. So look,

503
00:25:50,840 --> 00:25:53,359
Speaker 14: you know they're going to run their business. You know,

504
00:25:53,520 --> 00:25:56,680
Speaker 14: we hope that they are a strong operator. It's it's

505
00:25:56,720 --> 00:26:00,040
Speaker 14: important to us that they are. We are hopeful that

506
00:26:00,080 --> 00:26:03,600
Speaker 14: they will uh continue to invest in their business and

507
00:26:03,880 --> 00:26:06,560
Speaker 14: their ability to execute and deliver infrastructure, and you know,

508
00:26:06,640 --> 00:26:08,480
Speaker 14: we we continue to work with them on a go

509
00:26:08,560 --> 00:26:10,240
Speaker 14: for a basis, just as we have for the past

510
00:26:10,240 --> 00:26:10,720
Speaker 14: five years.

511
00:26:10,920 --> 00:26:13,440
Speaker 2: They were a bitcoin minor turned AI supply you two

512
00:26:13,520 --> 00:26:15,280
Speaker 2: with that. There are some others out there as well,

513
00:26:15,320 --> 00:26:17,760
Speaker 2: Tara Wolf, and they're like, would you look to acquire

514
00:26:17,800 --> 00:26:18,320
Speaker 2: any of those?

515
00:26:19,080 --> 00:26:24,280
Speaker 14: So so I've always talked about acquisitions as strategic and opportunistic.

516
00:26:25,680 --> 00:26:31,720
Speaker 14: My view is acquisitions like Marimo or Weights and Biases model,

517
00:26:31,760 --> 00:26:35,359
Speaker 14: if those are strategic acquisitions, they move the company and

518
00:26:35,440 --> 00:26:42,520
Speaker 14: broaden our software solutions. The the acquisition of a infrastructure

519
00:26:42,520 --> 00:26:48,440
Speaker 14: provider is a opportunistic acquisition. We're currently building data centers

520
00:26:48,800 --> 00:26:51,520
Speaker 14: within Core. We've from the ground up to solve this

521
00:26:51,640 --> 00:26:56,439
Speaker 14: problem of adding additional control over the infrastructure. So you know,

522
00:26:56,480 --> 00:26:59,040
Speaker 14: we've got a data center in Pennsylvania and Lancaster that

523
00:26:59,040 --> 00:27:01,200
Speaker 14: we're building. We have a data center in New Jersey

524
00:27:01,280 --> 00:27:04,280
Speaker 14: and Kennilworth that we are building, and and so you know,

525
00:27:04,720 --> 00:27:09,679
Speaker 14: we're always uh uh you know, reviewing the opportunities that

526
00:27:09,680 --> 00:27:12,520
Speaker 14: that exist within those two buckets, the strategic and the

527
00:27:12,560 --> 00:27:16,639
Speaker 14: opportunistic bucket. And we're open to looking at things that

528
00:27:16,760 --> 00:27:19,280
Speaker 14: move our company forward. But once again, it's got to

529
00:27:19,280 --> 00:27:20,040
Speaker 14: be at the right price.

530
00:27:20,440 --> 00:27:23,240
Speaker 2: Right price, do you have to raise more capital to

531
00:27:23,320 --> 00:27:25,359
Speaker 2: keep on building out your data center offering?

532
00:27:25,960 --> 00:27:26,200
Speaker 15: Uh?

533
00:27:26,240 --> 00:27:29,640
Speaker 14: So, you know, Core Weave has been at the tip

534
00:27:29,720 --> 00:27:35,040
Speaker 14: of the spear of raising capital uh for uh the

535
00:27:35,119 --> 00:27:37,399
Speaker 14: AI build out right, like we were the first ones

536
00:27:37,440 --> 00:27:44,480
Speaker 14: to do the GPU based backed lending products and our

537
00:27:44,600 --> 00:27:46,480
Speaker 14: growth continues to.

538
00:27:48,240 --> 00:27:48,879
Speaker 16: Rage along.

539
00:27:48,920 --> 00:27:51,119
Speaker 14: I mean, it's just amazing how fast we're growing, how

540
00:27:51,160 --> 00:27:55,440
Speaker 14: much UH interest there is for UH continued build out

541
00:27:55,680 --> 00:27:59,960
Speaker 14: of our product, of our software solution UH and delivery

542
00:28:00,080 --> 00:28:01,960
Speaker 14: to a broader and broader base of clients. And so

543
00:28:02,280 --> 00:28:04,480
Speaker 14: you know, we'll continue to raise capital to support that

544
00:28:04,560 --> 00:28:05,560
Speaker 14: activity just as.

545
00:28:05,400 --> 00:28:07,480
Speaker 2: We have and the reward is big enough, you know,

546
00:28:07,520 --> 00:28:10,040
Speaker 2: the Gilories of this world at Daodavison still saying the

547
00:28:10,040 --> 00:28:12,159
Speaker 2: capital structure doesn't make him happy because the amount of

548
00:28:12,240 --> 00:28:14,440
Speaker 2: five percent you get back on a nine percent investment

549
00:28:14,520 --> 00:28:16,359
Speaker 2: is are you managing to rectify that?

550
00:28:17,119 --> 00:28:20,560
Speaker 14: First of all, I just fundamentically don't agree with his analysis,

551
00:28:20,720 --> 00:28:24,640
Speaker 14: so we can start there. But more importantly, you know,

552
00:28:25,680 --> 00:28:30,720
Speaker 14: we have built a business that generates great returns and

553
00:28:30,920 --> 00:28:34,800
Speaker 14: provides the infrastructure that the world needs to build and

554
00:28:34,840 --> 00:28:37,880
Speaker 14: deliver artificial intelligence. We think we have a great business plan,

555
00:28:37,960 --> 00:28:43,920
Speaker 14: We have a very large and diversified shareholder base that

556
00:28:43,960 --> 00:28:46,880
Speaker 14: agrees with us, and we're going to continue to expand

557
00:28:46,920 --> 00:28:48,160
Speaker 14: on the business that we've built and.

558
00:28:48,360 --> 00:28:49,560
Speaker 3: Diversify in the customer base.

559
00:28:49,600 --> 00:28:51,920
Speaker 2: I think Meta's interesting how Meta is getting a bit

560
00:28:52,000 --> 00:28:54,200
Speaker 2: b nut for the amount that they're plowing into AI

561
00:28:54,280 --> 00:28:57,040
Speaker 2: data centers, whereas we're congratulating the likes of Amazon and

562
00:28:57,120 --> 00:29:00,000
Speaker 2: d Google. What do you make of these anxieties around

563
00:29:00,080 --> 00:29:01,400
Speaker 2: AI infrastructure build out.

564
00:29:01,800 --> 00:29:07,040
Speaker 14: You know, it's interesting when when when a big investor

565
00:29:07,880 --> 00:29:12,240
Speaker 14: gets beat up for investing large sums of money into

566
00:29:12,240 --> 00:29:15,480
Speaker 14: the infrastructure that we're going to have to provide, feels

567
00:29:15,520 --> 00:29:18,080
Speaker 14: kind of like that's pretty bullish for us. We're going

568
00:29:18,120 --> 00:29:22,400
Speaker 14: to have to provide that infrastructure. Look, Meta has a strategy,

569
00:29:23,360 --> 00:29:28,840
Speaker 14: they have been incredibly disciplined around executing on that strategy.

570
00:29:29,680 --> 00:29:33,640
Speaker 14: They are going to build their AI solution and we're

571
00:29:33,680 --> 00:29:37,800
Speaker 14: really excited about adding them to our long list of

572
00:29:38,680 --> 00:29:41,760
Speaker 14: very large, very active customers that are that are really

573
00:29:41,800 --> 00:29:44,840
Speaker 14: going to define what compute looks like and what the

574
00:29:44,840 --> 00:29:46,840
Speaker 14: world looks like for the next fifty years.

575
00:29:47,080 --> 00:29:49,600
Speaker 2: Well, keep coming back to give us that vision, Michael

576
00:29:49,640 --> 00:29:51,680
Speaker 2: and Tradut has been a long week for him. We

577
00:29:51,800 --> 00:29:55,080
Speaker 2: wish him a wonderful weekend call. We CEO there. Meanwhile,

578
00:29:55,120 --> 00:29:58,000
Speaker 2: design startup Canva. It's running out in new AI tools too,

579
00:29:58,000 --> 00:30:02,000
Speaker 2: incorporating recent acquisitions. It's main product suite to lure uses

580
00:30:02,040 --> 00:30:05,000
Speaker 2: away from rival Adobi Our own ed Ludlow, who's off today.

581
00:30:05,080 --> 00:30:07,560
Speaker 2: He sat down with Cameron Adams, Canva co founder and

582
00:30:07,640 --> 00:30:09,240
Speaker 2: chief product officer of Avalanche.

583
00:30:09,920 --> 00:30:12,680
Speaker 15: It's definitely an advantage and we think deeply about the

584
00:30:12,800 --> 00:30:15,440
Speaker 15: data that we use and how we go about training

585
00:30:15,440 --> 00:30:21,800
Speaker 15: our models. We're all about transparency, so every interaction you

586
00:30:21,880 --> 00:30:24,120
Speaker 15: have with AI can be controlled in Canva. We give

587
00:30:24,120 --> 00:30:26,800
Speaker 15: you all the switches and levers you need to say

588
00:30:26,880 --> 00:30:29,040
Speaker 15: this data can be used, this data can't be used.

589
00:30:29,640 --> 00:30:33,240
Speaker 15: And in terms of copyright, we actually offer indemnity for

590
00:30:33,280 --> 00:30:37,040
Speaker 15: that for our enterprise users, so as they're using Canva,

591
00:30:37,200 --> 00:30:39,440
Speaker 15: they get the benefit of what we call Canvas Shield,

592
00:30:40,200 --> 00:30:43,520
Speaker 15: which means that any content that they generate through any

593
00:30:43,600 --> 00:30:48,240
Speaker 15: of our AI systems, we indemnify them for any copyright

594
00:30:48,520 --> 00:30:51,240
Speaker 15: that might arise from that. Although we've never had we've

595
00:30:51,240 --> 00:30:53,800
Speaker 15: never had any problems and we don't see any.

596
00:30:56,480 --> 00:30:59,040
Speaker 11: I think it's really important to sort of acknowledge there

597
00:30:59,080 --> 00:31:01,880
Speaker 11: is a big body of the technology industry that are

598
00:31:02,040 --> 00:31:05,640
Speaker 11: more relaxed now about the copyright issue. Copyright concerns are

599
00:31:05,680 --> 00:31:08,360
Speaker 11: kind of fading. Brings us back to the idea that

600
00:31:08,440 --> 00:31:11,720
Speaker 11: in the future there are alternative models out there for

601
00:31:11,920 --> 00:31:15,400
Speaker 11: party models. Is Canva flexible to kind of update its

602
00:31:15,440 --> 00:31:17,760
Speaker 11: stack on the run. You know, if a model becomes

603
00:31:17,800 --> 00:31:21,240
Speaker 11: available that can improve the operating system, you would be

604
00:31:21,280 --> 00:31:25,120
Speaker 11: able and nimble to integrate it into what you're doing.

605
00:31:26,520 --> 00:31:29,440
Speaker 15: Yeah, entirely. We've always taken a three pronged approach. So

606
00:31:30,560 --> 00:31:33,960
Speaker 15: we love partnering with the world's best where some of

607
00:31:34,040 --> 00:31:38,000
Speaker 15: the first people that open AI, Anthropic, Google call on

608
00:31:38,520 --> 00:31:41,440
Speaker 15: when they want to innovate with the models that they're

609
00:31:41,480 --> 00:31:44,840
Speaker 15: producing and kind of collaborate with us to create an

610
00:31:44,840 --> 00:31:48,800
Speaker 15: amazing experience. On top of that, we're also building amazing

611
00:31:48,840 --> 00:31:51,880
Speaker 15: research and development in house. The camera design model is

612
00:31:51,960 --> 00:31:56,360
Speaker 15: a great example of that, and we're constantly developing those

613
00:31:56,400 --> 00:31:58,480
Speaker 15: models inside camera. I think we now have over one

614
00:31:58,520 --> 00:32:02,560
Speaker 15: hundred different models inside Canva that are deployed through the product.

615
00:32:03,120 --> 00:32:05,840
Speaker 15: And then the third pillar is creating a great ecosystem.

616
00:32:06,240 --> 00:32:09,720
Speaker 15: We know a tremendous number of developers also want to

617
00:32:09,720 --> 00:32:12,400
Speaker 15: build on camera. They want to bring their technology into

618
00:32:12,440 --> 00:32:15,200
Speaker 15: camera because we now have two hundred and sixty million

619
00:32:15,200 --> 00:32:16,360
Speaker 15: people that use the product.

620
00:32:17,000 --> 00:32:20,240
Speaker 2: Cava co founder Cameron Adams there now coming up, we'll

621
00:32:20,280 --> 00:32:22,720
Speaker 2: discuss the future of TikTok in the United States. After

622
00:32:22,760 --> 00:32:25,959
Speaker 2: this week's historic meeting between President Trump and chi Jinping,

623
00:32:26,640 --> 00:32:28,400
Speaker 2: where it wasn't really brought up.

624
00:32:28,840 --> 00:32:29,680
Speaker 3: This has been bad tech.

625
00:32:38,160 --> 00:32:42,040
Speaker 2: Many were anxiously waiting for some updates on TikTok's future

626
00:32:42,240 --> 00:32:44,600
Speaker 2: in the US. I was following this week's meeting between

627
00:32:44,640 --> 00:32:48,360
Speaker 2: Donald Trump and Hijinping, but nothing really came out of it,

628
00:32:48,480 --> 00:32:51,320
Speaker 2: and while China's Commerce Ministry did say on Thursday that it's.

629
00:32:51,160 --> 00:32:55,160
Speaker 3: Committed to properly resolving issues related to TikTok, didn't mention specifics.

630
00:32:55,440 --> 00:32:58,480
Speaker 2: New makes social media reporter Alexander Levine joins US now

631
00:32:58,600 --> 00:32:59,280
Speaker 2: to make sense of it.

632
00:32:59,320 --> 00:33:01,280
Speaker 3: You've got a great let her out today. Tech and

633
00:33:01,360 --> 00:33:03,280
Speaker 3: Depth and well were left hanging.

634
00:33:05,240 --> 00:33:07,480
Speaker 16: We've been waiting for any clear sign basically since the

635
00:33:07,520 --> 00:33:10,400
Speaker 16: executive order was signed back in September that said that

636
00:33:10,440 --> 00:33:12,920
Speaker 16: the deal was going to be advancing, any clear sign

637
00:33:13,000 --> 00:33:17,200
Speaker 16: that China is actually on board. And of course everybody

638
00:33:17,280 --> 00:33:20,360
Speaker 16: in the Trump White House has been very reassuring and

639
00:33:20,720 --> 00:33:23,360
Speaker 16: saying that China is fully on board with this, but

640
00:33:23,520 --> 00:33:25,280
Speaker 16: reading between the lines, we really haven't heard a lot

641
00:33:25,320 --> 00:33:29,240
Speaker 16: from China. And even after this this meeting, that the

642
00:33:29,360 --> 00:33:32,400
Speaker 16: that the two leaders had yesterday, we you know, we

643
00:33:32,400 --> 00:33:35,120
Speaker 16: were waiting for any sort of clear signaling that you know,

644
00:33:35,320 --> 00:33:37,840
Speaker 16: things are really progressing, and I think that most people

645
00:33:37,880 --> 00:33:40,840
Speaker 16: watching were more interested in what wasn't said than what

646
00:33:40,960 --> 00:33:41,640
Speaker 16: actually was.

647
00:33:42,520 --> 00:33:46,640
Speaker 2: There is still much cynicism, shall I say, over any

648
00:33:46,720 --> 00:33:49,600
Speaker 2: future relationship of just a spun out TikTok in the

649
00:33:49,680 --> 00:33:52,240
Speaker 2: US from the President Trump's soon party.

650
00:33:53,680 --> 00:33:56,719
Speaker 16: Absolutely, I mean I think that you already have members

651
00:33:56,720 --> 00:33:59,280
Speaker 16: of his own party who have pointed out all sorts

652
00:33:59,320 --> 00:34:02,440
Speaker 16: of issues the deal that has for and propose, you know,

653
00:34:02,560 --> 00:34:06,200
Speaker 16: the law that was passed last year under then President

654
00:34:06,280 --> 00:34:08,239
Speaker 16: Joe Biden said that there really has to be no

655
00:34:08,320 --> 00:34:11,680
Speaker 16: operational relationship between TikTok and his parent company by a

656
00:34:11,760 --> 00:34:15,880
Speaker 16: Dance under whatever new setup we may have. And there's

657
00:34:15,880 --> 00:34:18,799
Speaker 16: several different aspects of the deal that show that Bye

658
00:34:18,880 --> 00:34:21,160
Speaker 16: Dance is going to have a potentially have a board

659
00:34:21,200 --> 00:34:26,040
Speaker 16: seat that by Dance will you know, still have oversight

660
00:34:26,080 --> 00:34:28,520
Speaker 16: over key parts of the business and its own executives

661
00:34:28,640 --> 00:34:31,960
Speaker 16: leading key parts of TikTok's business. So it really seems

662
00:34:32,000 --> 00:34:34,600
Speaker 16: the more that you drill down into the deal that

663
00:34:34,719 --> 00:34:36,520
Speaker 16: is on the table, that there are a lot of

664
00:34:36,880 --> 00:34:39,319
Speaker 16: points that make it seem like there's there is in

665
00:34:39,360 --> 00:34:42,800
Speaker 16: fact going to be an operational relationship which would probably.

666
00:34:42,440 --> 00:34:47,200
Speaker 2: Not possibly will muster mugs Alex Levigne relentlessly on this story.

667
00:34:47,360 --> 00:34:49,279
Speaker 3: We thank you and sure we'll come back on it.

668
00:34:49,360 --> 00:34:52,360
Speaker 2: Meanwhile, let's keep the discussion going on US China relations

669
00:34:52,680 --> 00:34:55,399
Speaker 2: and its impact on the tech sector at large, any

670
00:34:55,440 --> 00:34:57,520
Speaker 2: webs with us. She's a founder and CEO of Future

671
00:34:57,520 --> 00:35:00,280
Speaker 2: Today's Strategy Group and a professor at NYU Stend School

672
00:35:00,280 --> 00:35:03,400
Speaker 2: of Business. You and your colleagues, you develop predictive scenarios,

673
00:35:03,440 --> 00:35:08,080
Speaker 2: executable strtuies of organizations worldwide with research specializations. You particularly

674
00:35:08,080 --> 00:35:11,040
Speaker 2: look at AI at biotech and Amy, What did you

675
00:35:11,080 --> 00:35:13,920
Speaker 2: make of Trump and She's relations this week?

676
00:35:14,040 --> 00:35:17,480
Speaker 3: Because metch was left unsaid rather than.

677
00:35:17,400 --> 00:35:20,840
Speaker 17: Just said, that's right. I mean, I think the result

678
00:35:20,840 --> 00:35:25,080
Speaker 17: here was certainly a de escalation rather than a full reset,

679
00:35:25,120 --> 00:35:28,479
Speaker 17: But it definitely did not end the AI Cold War

680
00:35:28,600 --> 00:35:31,880
Speaker 17: or some of the consternations around other frontier technologies that

681
00:35:31,920 --> 00:35:34,640
Speaker 17: are often in the mix when we talk about these

682
00:35:34,680 --> 00:35:36,960
Speaker 17: two countries. So I would argue that this sort of

683
00:35:37,000 --> 00:35:41,319
Speaker 17: moves the battlefield away from tariffs but over to transistors

684
00:35:41,360 --> 00:35:42,040
Speaker 17: for the time being.

685
00:35:42,280 --> 00:35:43,759
Speaker 3: Okay, let's go to transistors.

686
00:35:43,760 --> 00:35:47,399
Speaker 2: Because much was hyped that maybe Blackwell architecture chips from

687
00:35:47,400 --> 00:35:50,239
Speaker 2: in Video would be discussed between the two leaders, and

688
00:35:50,360 --> 00:35:53,279
Speaker 2: it wasn't. We understand today that Jensen Wang is still

689
00:35:53,280 --> 00:35:55,640
Speaker 2: optimistic that he'll get some sort of access to China.

690
00:35:56,160 --> 00:35:57,759
Speaker 3: What do you think about the realities of that?

691
00:35:59,480 --> 00:36:01,600
Speaker 17: Well, I think think at the moment, what we have

692
00:36:01,760 --> 00:36:05,879
Speaker 17: is predictability, where all we had before was growing uncertainty.

693
00:36:06,000 --> 00:36:09,240
Speaker 17: So this could ease some short term supply chain fears.

694
00:36:09,640 --> 00:36:13,440
Speaker 17: So that definitely helps companies like Nvidia and AMD and

695
00:36:13,600 --> 00:36:17,000
Speaker 17: other US semiconductor tool makers who had been frozen out

696
00:36:17,040 --> 00:36:20,200
Speaker 17: of Chinese markets. But I also don't think that in

697
00:36:20,320 --> 00:36:23,480
Speaker 17: video is going to be allowed to sell just whatever

698
00:36:23,520 --> 00:36:27,600
Speaker 17: it wants. That said, given in Vidia's new five trillion valuation,

699
00:36:27,680 --> 00:36:31,320
Speaker 17: which also happened this week, this is really really important,

700
00:36:31,360 --> 00:36:34,840
Speaker 17: not just for investors, but for our entire economy. I

701
00:36:34,840 --> 00:36:39,319
Speaker 17: think something like forty thousand companies using VideA GPUs for

702
00:36:39,440 --> 00:36:43,920
Speaker 17: AI and for accelerated computing, and their biggest customers are

703
00:36:44,000 --> 00:36:47,600
Speaker 17: the big tech companies Microsoft, Aws, Google, Oracle, and by

704
00:36:47,680 --> 00:36:50,759
Speaker 17: market cap, these are some of America's biggest companies. So

705
00:36:51,080 --> 00:36:53,040
Speaker 17: I don't think that the doors are open and there's

706
00:36:53,040 --> 00:36:55,080
Speaker 17: going to be a fire sale overnight, But I do

707
00:36:55,120 --> 00:36:58,040
Speaker 17: think there's reason to be more optimistic than maybe before

708
00:36:58,200 --> 00:36:58,600
Speaker 17: the amy.

709
00:36:58,600 --> 00:37:02,719
Speaker 2: Why does it matsa to the US economy and some

710
00:37:02,760 --> 00:37:04,759
Speaker 2: of the big players and in Vidia, because in Vidia

711
00:37:04,840 --> 00:37:08,919
Speaker 2: hit that five trillion dollar market capit capitalization while saying

712
00:37:08,920 --> 00:37:12,040
Speaker 2: they had zero sales into China, the idea being that

713
00:37:12,160 --> 00:37:13,760
Speaker 2: they can actually go it alone.

714
00:37:14,880 --> 00:37:17,560
Speaker 17: Well, I think that's true today. The issue is what's

715
00:37:17,600 --> 00:37:20,560
Speaker 17: coming in the future. So the CCP every couple of years,

716
00:37:20,560 --> 00:37:24,040
Speaker 17: every five years, they have very secretive meetings held in

717
00:37:24,080 --> 00:37:28,279
Speaker 17: Beijing on their five year plans, and this happens with regularity.

718
00:37:29,000 --> 00:37:32,080
Speaker 17: China's top so this meeting just happened, and China's top

719
00:37:32,120 --> 00:37:35,560
Speaker 17: priority is building what it's calling a modern industrial system,

720
00:37:35,560 --> 00:37:39,120
Speaker 17: which is really cold for making old industries smart and

721
00:37:39,200 --> 00:37:44,200
Speaker 17: new industries unstoppable. So what this means is heavily investing

722
00:37:44,320 --> 00:37:50,040
Speaker 17: in frontier sectors like aerospace, biomanufacturing, quantum advanced materials, and

723
00:37:51,280 --> 00:37:56,640
Speaker 17: improving supply chains. All of this requires those advanced chips.

724
00:37:57,000 --> 00:37:59,640
Speaker 17: So effectively, what this means is today in video is

725
00:37:59,680 --> 00:38:03,359
Speaker 17: probably fine going into the future. It gives Chinese AI

726
00:38:03,480 --> 00:38:08,359
Speaker 17: champions and local chip makers much more time to domesticate

727
00:38:08,640 --> 00:38:13,080
Speaker 17: their operations, their supply chains, and push their own homegrown chips,

728
00:38:13,360 --> 00:38:16,880
Speaker 17: which is potentially great for China but bad for the West.

729
00:38:17,280 --> 00:38:19,960
Speaker 2: So kind of more deep seek moments, but from the

730
00:38:19,960 --> 00:38:22,719
Speaker 2: actual underlying technology, not just the LLMS that has built

731
00:38:22,800 --> 00:38:23,080
Speaker 2: upon it.

732
00:38:23,120 --> 00:38:26,640
Speaker 3: Amy. I'm interested in what really the chokehold.

733
00:38:26,200 --> 00:38:29,120
Speaker 2: That China had found it had was where Earth And

734
00:38:29,200 --> 00:38:32,279
Speaker 2: there was some discussion around there, but how quickly is

735
00:38:32,320 --> 00:38:36,680
Speaker 2: the US and Western nations able to become self dependent

736
00:38:36,760 --> 00:38:38,640
Speaker 2: in their own way on that front.

737
00:38:39,360 --> 00:38:41,439
Speaker 17: Look, I would love to offer some better news here,

738
00:38:41,440 --> 00:38:44,640
Speaker 17: but the reality is that the materials for semiconductors come

739
00:38:44,680 --> 00:38:48,680
Speaker 17: from you know, basically one place on the planet. While

740
00:38:48,719 --> 00:38:50,560
Speaker 17: in the future, I think we'll be able to engineer

741
00:38:50,600 --> 00:38:55,040
Speaker 17: our ways around those materials and those magnets, but at

742
00:38:55,080 --> 00:38:58,120
Speaker 17: the moment were kind of hamstrung. And as much as

743
00:38:58,200 --> 00:39:02,359
Speaker 17: the Trump administration has promised to make significant investments into

744
00:39:02,360 --> 00:39:05,440
Speaker 17: advanced manufacturing here in the United States, the reality is

745
00:39:05,960 --> 00:39:07,600
Speaker 17: nobody's going to be able to catch up when it

746
00:39:07,600 --> 00:39:11,440
Speaker 17: comes to advanced manufacturing at scale, certainly not over the

747
00:39:11,520 --> 00:39:14,160
Speaker 17: next four years, not even here in the United States.

748
00:39:14,160 --> 00:39:17,160
Speaker 17: So it doesn't mean that we're all at a huge

749
00:39:17,200 --> 00:39:21,360
Speaker 17: competitive disadvantage. It does mean that even if the domestic

750
00:39:21,440 --> 00:39:25,799
Speaker 17: market isn't hot within China, the CCP is banking on

751
00:39:25,920 --> 00:39:30,160
Speaker 17: industrial modernization as the backbone of its national competitiveness, and

752
00:39:30,239 --> 00:39:35,319
Speaker 17: it has government sponsorship and support and tremendous capital that

753
00:39:35,360 --> 00:39:36,440
Speaker 17: it can put toward that effort.

754
00:39:37,360 --> 00:39:39,120
Speaker 3: Amy Web really interesting.

755
00:39:39,400 --> 00:39:42,080
Speaker 2: Thank you for Analysis Today, Future Today's strategy group.

756
00:39:42,400 --> 00:39:44,799
Speaker 3: They appreciate it.

757
00:39:49,320 --> 00:39:52,520
Speaker 2: Venture capital has poured nearly two hundred billion dollars into

758
00:39:52,560 --> 00:39:54,960
Speaker 2: AI startups in just twenty twenty five alone.

759
00:39:55,480 --> 00:39:57,040
Speaker 3: As of early October.

760
00:39:56,920 --> 00:39:59,240
Speaker 2: Our colleagues who cover the sector have been really drilling

761
00:39:59,280 --> 00:40:01,440
Speaker 2: down to find the mo most influential and best funded

762
00:40:01,480 --> 00:40:03,880
Speaker 2: ones that you should know about. One of those reporters,

763
00:40:03,880 --> 00:40:05,839
Speaker 2: of course, is our own Rachel Metz, and she joins

764
00:40:05,920 --> 00:40:09,160
Speaker 2: US now and you seek how twenty four real winners

765
00:40:09,200 --> 00:40:11,720
Speaker 2: here and what's so interesting is this real international flavor

766
00:40:11,760 --> 00:40:12,120
Speaker 2: as well.

767
00:40:12,480 --> 00:40:14,400
Speaker 3: Just talk to us about how you broke it down.

768
00:40:14,520 --> 00:40:16,560
Speaker 3: You initially perhaps find.

769
00:40:16,320 --> 00:40:18,680
Speaker 2: The LLM makers that we should really be thinking about

770
00:40:18,719 --> 00:40:19,719
Speaker 2: other than open AI.

771
00:40:20,920 --> 00:40:21,160
Speaker 7: Yeah.

772
00:40:21,200 --> 00:40:23,600
Speaker 18: I mean, we've done this list for the past several years,

773
00:40:23,640 --> 00:40:25,680
Speaker 18: and this year we really wanted to try to focus

774
00:40:25,800 --> 00:40:30,360
Speaker 18: on having a big selection of companies in different categories,

775
00:40:30,400 --> 00:40:34,080
Speaker 18: because as the AI ecosystem has evolved, we're seeing people

776
00:40:34,360 --> 00:40:36,520
Speaker 18: moving into more and more categories of it. We have

777
00:40:36,600 --> 00:40:40,120
Speaker 18: companies that are building sort of the infrastructure for it.

778
00:40:40,160 --> 00:40:42,320
Speaker 18: You have only a handful of companies that are actually

779
00:40:42,360 --> 00:40:46,400
Speaker 18: building models. You have companies that are concentrating on office

780
00:40:46,480 --> 00:40:51,680
Speaker 18: related stuff, companies concentrating on content generation. So it was

781
00:40:51,719 --> 00:40:53,719
Speaker 18: starting to feel like we had enough for kind of

782
00:40:53,760 --> 00:40:56,200
Speaker 18: like a yearbook. Superlative was kind of what I was

783
00:40:56,239 --> 00:40:58,360
Speaker 18: thinking of it in my mind when we were working

784
00:40:58,400 --> 00:41:01,440
Speaker 18: on this of of these different categories.

785
00:41:01,560 --> 00:41:03,759
Speaker 3: And so we're looking now at the model makers to watch.

786
00:41:03,800 --> 00:41:06,560
Speaker 2: Deep Seek in China obviously, but Humane in Saudi Arabia

787
00:41:06,600 --> 00:41:09,000
Speaker 2: an interesting one and one that's been a big infrastructure player.

788
00:41:09,080 --> 00:41:11,600
Speaker 2: Miss Thrale in France. We had the CEO Arthur on

789
00:41:11,800 --> 00:41:14,160
Speaker 2: just last week, but moved to the Vibe coding because

790
00:41:14,200 --> 00:41:16,080
Speaker 2: I think this is where people are getting really excited

791
00:41:16,080 --> 00:41:18,800
Speaker 2: about the application of AI, particularly.

792
00:41:18,400 --> 00:41:19,480
Speaker 3: In the world of engineering.

793
00:41:19,800 --> 00:41:22,280
Speaker 2: We all know about Cursor, but take us to Sweden,

794
00:41:22,440 --> 00:41:23,799
Speaker 2: take us to other players.

795
00:41:23,480 --> 00:41:23,960
Speaker 3: In the US.

796
00:41:24,840 --> 00:41:28,719
Speaker 18: I would love to go to Sweden. So Lovable in

797
00:41:28,760 --> 00:41:33,279
Speaker 18: Sweden has grown tremendously quickly. Similar to how Cursor has

798
00:41:33,480 --> 00:41:37,240
Speaker 18: grown tremendously quickly in the US. Lovable and also Replet,

799
00:41:37,280 --> 00:41:39,640
Speaker 18: those two are a little more focused on people that

800
00:41:39,719 --> 00:41:43,200
Speaker 18: don't have coding experience, and Lovable in particular is focused

801
00:41:43,320 --> 00:41:45,840
Speaker 18: on helping you build, say a website, even if you

802
00:41:46,080 --> 00:41:49,359
Speaker 18: don't know anything about coding. Cursor is more meant for

803
00:41:49,760 --> 00:41:52,239
Speaker 18: a professional or someone who at least has like a

804
00:41:52,280 --> 00:41:55,680
Speaker 18: decent to pretty deep knowledge of coding. But these other companies,

805
00:41:55,760 --> 00:41:58,600
Speaker 18: Repelt and Lovable, they really are trying to democratize the

806
00:41:58,719 --> 00:42:03,760
Speaker 18: idea of building something on the intranet or building an app,

807
00:42:04,120 --> 00:42:05,080
Speaker 18: building software.

808
00:42:05,280 --> 00:42:08,080
Speaker 2: Democratization is the watchword when it comes to making movies,

809
00:42:08,120 --> 00:42:10,000
Speaker 2: when it comes to making music, and not without its

810
00:42:10,040 --> 00:42:13,960
Speaker 2: tensions with IP but briefly thinking of Suno Runway here

811
00:42:14,000 --> 00:42:14,640
Speaker 2: in New York.

812
00:42:14,440 --> 00:42:16,880
Speaker 3: But also black Forest Labs over in Germany. I love

813
00:42:16,920 --> 00:42:17,239
Speaker 3: that name.

814
00:42:18,040 --> 00:42:22,200
Speaker 18: Yeah, so black Forest Labs. They are really interesting. A

815
00:42:22,239 --> 00:42:27,560
Speaker 18: group of people who were behind the initial technology that

816
00:42:27,760 --> 00:42:32,120
Speaker 18: was used to launch the company Stability AI so Stable Diffusion.

817
00:42:32,160 --> 00:42:35,600
Speaker 18: They worked on that and they are now building their

818
00:42:35,640 --> 00:42:39,920
Speaker 18: own separate company using technology that they've also built, and

819
00:42:40,160 --> 00:42:44,719
Speaker 18: it's able to create quite realistic looking images and a

820
00:42:44,760 --> 00:42:47,600
Speaker 18: lot of companies are striking deals with them, such as Meta.

821
00:42:47,800 --> 00:42:50,080
Speaker 2: Rachel Metz, it's a great read. Kind of have a

822
00:42:50,120 --> 00:42:53,040
Speaker 2: wonderful Halloween with the family. We so appreciate you today.

823
00:42:53,360 --> 00:42:55,439
Speaker 2: Now that does it for this edition of Bloomberg Tech.

824
00:42:55,719 --> 00:42:59,600
Speaker 2: Another must watch story, our original investigation Can't look away,

825
00:42:59,600 --> 00:43:03,360
Speaker 2: the case against social media. It's now available on Bloombo platforms.

826
00:43:03,400 --> 00:43:05,960
Speaker 2: You must go watch it. This is Bloombo