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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 Vla Low in San Francisco.

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Speaker 2: This is Bloomberg Tech coming up.

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Speaker 3: SpaceX gears up to finalize its IPO pricing today. This

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Speaker 3: is it offers attracts more than seventy billion dollars in

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Speaker 3: orders from retail investors alone.

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Speaker 4: Plus Oracle is under pressure after the company reported higher

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Speaker 4: quarterly capex than expected, raising concerns about the returns on.

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Speaker 3: AI and seven seven six founder Reddit co founder Alexis

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Speaker 3: o'hanian joins us live from super Return in Berlin later

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Speaker 3: this hour first ed with.

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Speaker 5: Us both here in New York.

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Speaker 4: We check in on these markets that we see the

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Speaker 4: bounce back continue to an extent now as that one

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Speaker 4: hundred and three ten percent, we're coming down from earlier highs,

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Speaker 4: but still there seems to be a lot of muscle

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Speaker 4: memory back in the memory perspective. We've got semi conductors

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Speaker 4: up two point four percent if you're looking at that

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Speaker 4: Sock's index. We are buying back into the hardware. But

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Speaker 4: it's not all pretty out there. If you're looking at

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Speaker 4: certain names amid the geopolitical.

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Speaker 5: Acts as well.

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Speaker 3: Okay, so the big earning story is Oracle, right, It's

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Speaker 3: down twelve percent, basically falls the most in six months,

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Speaker 3: and everyone is still worried about how much it costs

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Speaker 3: to get data centers built. And it's so funny because

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Speaker 3: like out there in the market, in the AI trade,

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Speaker 3: the same anxiety exists on the other side of the table,

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Speaker 3: like you can't get it built fast enough, you know,

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Speaker 3: give us the compute. We're so compute constrained. But we're

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Speaker 3: going to dig into that a lot more later in

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Speaker 3: the hour. There's still only one story in town.

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Speaker 5: That is, and it's why you're in town.

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Speaker 2: It's why we all.

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Speaker 4: Gather together in town, because we've got the big story

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Speaker 4: of the day, of the week of months.

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Speaker 5: Spacexits IPO is upon us almost.

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Speaker 4: It feels like we've been building to this crescendo moment

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Speaker 4: for a very long time. Bilumo's IPO reporter Bailey Lipschutz

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Speaker 4: joins us around the desks space which is in town.

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Speaker 4: Lauren Grush and look, we've been along this ride with

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Speaker 4: us for many a month, Lauren, what does this mean

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Speaker 4: when we're just galvanizing the amount of demand when we're

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Speaker 4: starting to see that retail investments are so extreme.

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Speaker 5: And order books are filling up. But this is a

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Speaker 5: space story. What does it mean for your industry?

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Speaker 6: Well, it has become something more than a space story.

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Speaker 2: You know.

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Speaker 6: I had my bets on how SpaceX would IPO. I

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Speaker 6: do not think I would have had it IPO in

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Speaker 6: this kind of current form.

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Speaker 2: Right.

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Speaker 6: We were told they would never IPO until they had

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Speaker 6: achieved the Elon's dream of going to Mars. Now it's

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Speaker 6: this hybrid rocket telecom AI company. But I just think

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Speaker 6: it speaks to the value that SpaceX has provided up

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Speaker 6: until now as a launch provider, as this telecom satellite operator.

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Speaker 5: You know, it's hard to really.

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Speaker 6: Understate the value that this company has brought to our

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Speaker 6: space program and now also to you know, the telecom

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Speaker 6: business as well. So it's hard to quantify, but I

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Speaker 6: think you're seeing it with these you know, astronomical numbers.

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Speaker 6: If you are sorry, I'm you.

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Speaker 2: Know all you know, this is out of this world, right.

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Speaker 3: This is also unusual, Like Bailey, you and I have

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Speaker 3: been sort of banging our heads on our desks because

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Speaker 3: there's a process to it. It's an atypical process that's

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Speaker 3: playing out. But catch the audience up on the mechanics.

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Speaker 3: I guess what happens likely aftermarket closed today, what happens tomorrow,

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Speaker 3: and where we think the numbers stand, and then we

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Speaker 3: can get to the kind of more intergalactic theme that

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Speaker 3: we want to.

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Speaker 7: We just got to look back a week ago. They

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Speaker 7: came out with a fixed price. Abnormal thing here in

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Speaker 7: the U. It doesn't normally happen. No normally come out

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Speaker 7: with a range. You want to walk Wall Street up

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Speaker 7: to it. You want to start low, then come upsize,

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Speaker 7: raise the number of shares, raise the.

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Speaker 2: Price, baking a big pop.

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Speaker 7: Elon and Company over at SpaceX said, we're going to

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Speaker 7: treat this like a private equ private deal. This is

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Speaker 7: the price, this is the size. Are you in or

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Speaker 7: are you out? So that's been playing out for the

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Speaker 7: last week. The bankers closed the formal order books yesterday

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Speaker 7: at around four o'clock.

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Speaker 2: They're all meeting today deciding who's going to get what.

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Speaker 7: They're eventually going to take that to Brett Johnson and

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Speaker 7: Elon Musk and say this is what we're thinking. Allocations

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Speaker 7: are expected to go out this evening early tomorrow morning.

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Speaker 7: People are going to find out either they got zero

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Speaker 7: or maybe they got billions of dollars worth of shares,

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Speaker 7: and then tomorrow the fun will start to take place

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Speaker 7: when we start seeing where shares are indicated, probably in

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Speaker 7: the ten o'clock hour. Expectations are we'll get first trades

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Speaker 7: sometime later in the afternoon, and we'll see if the

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Speaker 7: plumbing holds up, because we again have never seen a

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Speaker 7: deal of this size. We've never seen a deal of

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Speaker 7: this size with retail being what it is, with Robinhood.

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Speaker 4: And others and Betty, you've been front and center along

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Speaker 4: with ed breaking like the detail on how much demand

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Speaker 4: there is and what allocations thus far we're anticipating.

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Speaker 5: So it's going to be slightly less to an international.

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Speaker 4: Perspective, Japan still getting a couple of billion or more.

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Speaker 4: But talk to us about how much retail demand there is,

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Speaker 4: how much they might be allocated, how much demand there

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Speaker 4: is coming from the Middle East and from US investors.

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Speaker 7: So we've put out, just starting with retail, we put

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Speaker 7: out and broke this morning more than seventy billion dollars

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Speaker 7: in demand, probably well more than seventy billion dollars in demand.

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Speaker 7: So you think about that, you're talking at least three

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Speaker 7: times over subscribe from retail, which means they have that

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Speaker 7: cash in the banking or.

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Speaker 2: You could have done this IFEO just on retail, which

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Speaker 2: is crazy.

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Speaker 7: If you told people a year ago that SpaceX was

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Speaker 7: going to Lauren Police disagree with me.

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Speaker 6: Laura's research less than a year, less than a year

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Speaker 6: that this all kind of came.

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Speaker 2: Together come together quickly.

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Speaker 7: We've seen in Bloomberg Is reported about the demand from

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Speaker 7: the Middle East. We've seen and reported on potential anchor demand,

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Speaker 7: and when you kind of stitch all that together, the

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Speaker 7: four times over subscribe number kind of seems like a

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Speaker 7: no brainer, especially because people on the buy side inflate

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Speaker 7: their numbers because maybe you put in for half a

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Speaker 7: billion dollars, but you really want to get ten million.

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Speaker 7: At least you're getting shares. But it's something that we

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Speaker 7: haven't seen before.

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Speaker 3: We're going to get to this in a moment with

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Speaker 3: our guests, but you and are also reported with the

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Speaker 3: team that pre float. They also got basically investment grade

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Speaker 3: ratings for the credit agencies, which I think is a

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Speaker 3: big indication that this company will raise money post thing.

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Speaker 3: I want to go to Lauren because can we just

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Speaker 3: remember there is a story here that's not about money.

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Speaker 3: It's about a launch system in spacecraft called Starship and

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Speaker 3: data centers in space. Would you kindly, Laurene, just summarize

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Speaker 3: the plan here for SpaceX.

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Speaker 6: Right, it's it's almost it almost represents an entirely new

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Speaker 6: direction for the company, This idea that they're going to

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Speaker 6: put up to one million data center satellites into space

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Speaker 6: to do complex computing for AI. I mean, as we mentioned,

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Speaker 6: this wasn't even on our radar in terms of what

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Speaker 6: SpaceX is going to be doing, you know, more than

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Speaker 6: a year ago, and now it seems to be the

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Speaker 6: new direction the future of the company. And yes, all

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Speaker 6: of this relies on Starship. Starship is that organtuan rocket

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Speaker 6: that they're building in South Texas. It was meant to

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Speaker 6: or it is meant to fulfill Elon Musk's AI or

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Speaker 6: a Mars dream, but now it's also critical for the

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Speaker 6: AI dream too, because it's going to be needed to

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Speaker 6: launch these AI data center satellites at scale.

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Speaker 2: And you know, as.

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Speaker 6: We've noted, the development road has been attacked rocky for Starship.

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Speaker 6: I'm not saying they can't get there, but it's still

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Speaker 6: unclear when they will unlock for reusability.

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Speaker 3: Blue Mike's Baley lip Schultz and Lauren Grash. Just incredible

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Speaker 3: reporting to date and obviously the next twenty four hours

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Speaker 3: are going to be a lot, Thank you very much. Indeed,

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Speaker 3: just SpaceX's growth forecast actually hinges on ideas that seems

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Speaker 3: straight out of science fiction, but backers of Elon Musk

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Speaker 3: says he's pulled off the unbelievable before. Brett Winton is

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Speaker 3: the chief futurist at ARC invest probably one of the

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Speaker 3: most prominent institutional supporters of must firm. Brett's great to

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Speaker 3: have you back on the show, and like, actually is

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Speaker 3: a place to start. I wanted you just to kindly

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Speaker 3: remind us of how ARC invested in SpaceX, the sort

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Speaker 3: of venture mechanism that you have, and then we'll go

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Speaker 3: into the thesis.

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Speaker 8: Yeah, so SpaceX space XAI is the largest position in

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Speaker 8: our venture fund, which is an interval fund that you know, anybody,

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Speaker 8: not just the rich, can invest in. And we did

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Speaker 8: that because, as you can see from the retail demand

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Speaker 8: for the IPO, people understand kind of like the potential

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Speaker 8: power of these innovation focused companies and we think that

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Speaker 8: you know, everyday people should be able to get access

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Speaker 8: to these AI exposures, including open Aianthropics SpaceX, which are

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Speaker 8: the top positions in the fun And so we've invested

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Speaker 8: in SpaceX, you know, as long as the vehicle has

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Speaker 8: been available, and you know, from the inception of ARC

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Speaker 8: we had reusable rockets as a break through disruptive technology.

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Speaker 8: And so I've done work all along the way demonstrating

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Speaker 8: how being able to reduce cost of launch from ten

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Speaker 8: thousand dollars to one thousand dollars to we think much

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Speaker 8: less than one hundred dollars with Starship actually unlocks huge

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Speaker 8: market potential, certainly on the starlink side and kind of

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Speaker 8: as a second stage on the AI side.

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Speaker 4: Okay, and for AI one needs data centers. We need

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Speaker 4: therefore maybe data centers in space. This is the entire

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Speaker 4: pitch that we now go through rule workings. You're numbers

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Speaker 4: your thesis on orbital data centers breadth.

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Speaker 8: Well, what's interesting about this based XIPO is you actually

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Speaker 8: don't need the AI business to really work that well

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Speaker 8: in order to actually get a great return on kind

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Speaker 8: of just the starlink business.

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Speaker 9: So you know, the Elon and Co.

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Speaker 8: They are saying they're going to be able to launch

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Speaker 8: tens of gigawaps per year by the late twenty twenties.

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Speaker 8: So an easy way to think of a gigawat, you

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Speaker 8: can rent it out at the current market rate over

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Speaker 8: the long term, it's something like fifteen billion dollars per gigwat.

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Speaker 8: So imagine launching tens of gigawaps times fifteen billion dollars,

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Speaker 8: so three hundred billion in incremental revenue in any individual

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Speaker 8: year that you're doing that. The reality of their AI

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Speaker 8: business today is on a blnded average basis. They have

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Speaker 8: just rented capacity to Google and Anthropic for just a

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Speaker 8: little under forty billion dollars per gigawatt. So actually serving

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Speaker 8: it as as an infrastructure as a service provider could

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Speaker 8: be a wildly lucrative business for them because they can

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Speaker 8: they can build assets on the ground so efficiently, and

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Speaker 8: once they launch into space they can build it efficiently.

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Speaker 3: You know, Brett, like you are as a firm regarded

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Speaker 3: as some of the most bullish on Elon Musk like

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Speaker 3: the individual and the plan that they outlined in the prospectus.

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Speaker 3: But there of course are risks, right you know, must

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Speaker 3: post it an X last night, This idea that one

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Speaker 3: million tons to orbit will be possible in roughly five years.

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Speaker 3: Starship on paper can do one hundred and fifty metric

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Speaker 3: tons on paper. Right, do the math. That's one three

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Speaker 3: hundred and thirty three launches a year every year for

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Speaker 3: five years to do that. You know you would concede, right,

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Speaker 3: that this a long shot.

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Speaker 8: Well, he always lays out super ambitious targets for its

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Speaker 8: companies because that's the way he's found to make his

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Speaker 8: workforce most effective it acts delivering world changing technologies.

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Speaker 9: Think about it this way. Just look at the.

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Speaker 8: Starlink business and imagine instead of look at SpaceX, Imagine,

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Speaker 8: instead of launching Falcon nine rockets, I'm launching Starship rockets

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Speaker 8: at the same cadence filled with Starlink satellites. That alone

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Speaker 8: would get me in two years of launching to roughly

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Speaker 8: a little under two hundred billion dollars in revenue. So

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Speaker 8: we don't have you don't have to make an assumption

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Speaker 8: that the company is going to be launching, you know,

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Speaker 8: at even one thousand launches a year in order to

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Speaker 8: get into the kind of mostly on Starlink three hundred

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Speaker 8: to four hundred billion dollars in revenue by twenty thirty.

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Speaker 8: So there's there's this discourse out there that, hey, you know,

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Speaker 8: this company on a price to sales basis on the

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Speaker 8: immediate term looks very expensive, and poor retail is investing

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Speaker 8: in this thing because they don't understand the whole point

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Speaker 8: of capital markets is you raise capital and then you

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Speaker 8: deploy it in high return on invested capital businesses. And

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Speaker 8: Starlink alone is it's you know, a six month cash

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Speaker 8: on cash return for five year link satellites. They're going

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Speaker 8: to spend a half billion dollars building or launching a

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Speaker 8: rocket filled with satellites and acquiring the customers, and it

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Speaker 8: should generate them a billion dollars plus per year over

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Speaker 8: the five year life.

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Speaker 9: Of the satellite. So that's a great, great business.

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Speaker 4: I mean unarguable if you think about how much you've

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Speaker 4: turned twenty five thousand percent it's been returned since Tesla

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Speaker 4: went public. But what is also unarguable is as it stands,

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Speaker 4: SpaceX net loss four point two eight billion dollars on

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Speaker 4: revenue of four point six nine billion dollars in the

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Speaker 4: first quarter, when.

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Speaker 5: Does it become positive? Does it need to become positive?

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Speaker 5: You happy at being loss making.

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Speaker 4: For the foreseeable because the revenues are just going to

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Speaker 4: go so astronomically high.

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Speaker 8: No, no, I think that profitability at least as we

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Speaker 8: have a model, it happens very quickly. As they launched

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Speaker 8: the Starlink satellites. It really depends upon how much capital

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Speaker 8: they are throwing at terrestrial data centers to try to

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Speaker 8: catch up with the frontier labs.

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Speaker 9: In terms of GRUX capability.

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Speaker 8: You can build an amazing business just basically renting compute

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Speaker 8: to others and running Starlink, but there's clearly both an

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Speaker 8: ambition and then a higher margin in actually kind of

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Speaker 8: like competing within thropic and open. AI didn't argue that

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Speaker 8: probably doesn't happen until SpaceX's is launching, so you know,

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Speaker 8: multiple gigawatts into orbit.

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Speaker 2: I'm sorry to interrupt you.

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Speaker 3: There is a disconnect and that many people share this thesis.

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Speaker 3: Right what the TAM number in the prospectus twenty six

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Speaker 3: point five trillion was for enterprise AI and I appreciate

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Speaker 3: this sub buckets in the here and now they've basically

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Speaker 3: played a blinder with a ready to go neocloud business,

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Speaker 3: and lots of people keep telling me like, in the end,

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Speaker 3: it doesn't matter if rock works or is competitive against

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Speaker 3: Anthropic and open AI, just rent out the capacity and

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Speaker 3: that will fund the you know, the out of this

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Speaker 3: world ambition.

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Speaker 2: What would you respond to that.

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Speaker 8: I think that's possible, as in the way in which

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Speaker 8: we model.

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Speaker 9: The business, that is the more likely outcome.

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Speaker 8: It's I think to compete to get to the frontier

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Speaker 8: by twenty thirty, you'll need between thirty and fifty gigawat.

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Speaker 9: Years of compute in training.

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Speaker 8: It's and there because say I started later and they're

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Speaker 8: trying to build their own infrastructure, it's very difficult for

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Speaker 8: them to catch up on that amount of kind of

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Speaker 8: R and D compute thrown at their model. With the

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Speaker 8: caveat that if assuming that they merge with Tesla over

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Speaker 8: the next couple of years, cash flow from Tesla could

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Speaker 8: actually fund.

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Speaker 5: Catch up for you have seen that.

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Speaker 8: I think it's a reasonable assumption or more likely than not.

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Speaker 8: After the company li and it shares, we're all floating

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Speaker 8: that there is a merger between the entities.

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Speaker 9: It makes us a ton of strategic sense.

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Speaker 8: And as we model Tesla like the cash flow flowing

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Speaker 8: off Robotaxi, they can't effectively deploy it, so you know,

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Speaker 8: I'm not going to want a special dividend out to

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Speaker 8: shareholders for Tesla. I want them to continue to reinvest

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Speaker 8: in growth after miss the robot business, you know, requires

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Speaker 8: it's not capital constrained, it's really like capability constrained. And

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Speaker 8: so whereas SpaceX actually can use additional capital to continue

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Speaker 8: to accelerate growth.

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Speaker 4: Bret Winton, we could talk for hours, chief futurist at

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Speaker 4: our covestor. We are very thankful for the time that

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Speaker 4: you've given us. Now coming up, Oracle makes a costly

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Speaker 4: bet on AI and then massive spending plans are grabbing

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Speaker 4: wall streets attention.

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Speaker 5: It doesn't look pretty. This is rubg Tech.

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Speaker 4: Oracle shares having their worstday in six months. That's sixty

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Speaker 4: one billion dollars wiped out in market cap after they

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Speaker 4: reported quarterly capital expenditure which is above what the market thought,

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Speaker 4: raising investing concerns about the profitability of AI infrastructure buildouts.

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Speaker 4: Pimbugs Brodie Ford breaks it down. Look, they sort of

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Speaker 4: try to tell us that they weren't going to raise

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Speaker 4: more debt equity this fiscal year, but we're looking now

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Speaker 4: at next year and there is going to be a

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Speaker 4: lot more raising needed to do.

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Speaker 10: Right.

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Speaker 11: The whole question for Oracle is how quickly can you

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Speaker 11: convert this massive AI demand into actual revenue and what

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Speaker 11: are the capital requirements associated? And so last night when

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Speaker 11: a lot of different spending metrics came up a little high,

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Speaker 11: whether it was capex in the corridor or debt plans

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Speaker 11: for the next year, all of these things came together

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Speaker 11: to make investors a little bit indigested.

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Speaker 3: In the top line, right, like, yes, okay, they're going

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Speaker 3: to go to equity and debt markets again. They've told

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Speaker 3: us that, But are they growing, Like are they able

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Speaker 3: to actually operate this business effectively?

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Speaker 11: They're growing massively. The question is whether it's empty calories.

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Speaker 11: It's all about that margin question, Becau. As we see

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Speaker 11: as the AI business ramps up, the gross margins come down,

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Speaker 11: and they fired thousands of people this quarter to try

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Speaker 11: to control those costs. But it's still crunching them right.

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Speaker 11: It's still a question around what is the margin of

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Speaker 11: offering AI infrastructure.

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Speaker 2: And is this a good business to be in?

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Speaker 11: Generally, Oracle has gone up quite a bit in their

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Speaker 11: share price and investors are hopeful, but it's all about

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Speaker 11: how quickly they can deliver on the big promises.

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Speaker 3: Bloomberg's Brady Ford, thank you very much. The world's largest

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Speaker 3: private equity firms and deal makers are gathering in Berlin

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Speaker 3: for the annual Super Return Conference, Navigating a tough fundraising environment,

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Speaker 3: where AI is reshaping, where capital is flowing. Blue Box

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Speaker 3: Danny Berger joins us live from the ground for an

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Speaker 3: exclusive interview with Reddit co founder and seven seven six

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Speaker 3: founder Alexis a Amian.

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Speaker 12: Danny and thank you so much. That's right, I am

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Speaker 12: here alongside Alexis Lexis. Thank you so much for joining.

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Speaker 5: Wonderful to see you, Hey, thanks for having Danny. So.

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Speaker 12: Look, the big news that we it's inexcapable, is a

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Speaker 12: SpaceX IPO listing tomorrow. You're obviously very intimately familiar with it,

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Speaker 12: having owned xai got sold to SpaceX. Well, what does

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Speaker 12: it just mean to have this behemoth coming to market tomorrow?

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Speaker 13: Look, we are all excited, you know. I think right

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Speaker 13: now most of us in venture and in tech have

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Speaker 13: been waiting for some watershed moment IPO to hopefully get

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Speaker 13: the markets back open.

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Speaker 9: Looks like that is upon us.

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Speaker 13: And just generally speaking, I've been so excited about space

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Speaker 13: tech for about five six, seven years now, and that

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Speaker 13: to me is I think this feels like a milestone moment.

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Speaker 13: This was an investment thesis that was unthinkable a decade

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Speaker 13: ago for most investors, and I think now people are

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Speaker 13: coming to grips with the fact that space technology is

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Speaker 13: really here. What would have been science fiction US maybe

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Speaker 13: ten years ago is now science fact. And I think

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Speaker 13: we're only going to see an acceleration of that.

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Speaker 5: Okay, what is it all a fact?

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Speaker 12: When we start talking about like a twenty nine trillion

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Speaker 12: dollar tam and ten million people on Mars. I mean,

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Speaker 12: you own space companies yourself is just like this the

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Speaker 12: way you need to think or is a little bit

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Speaker 12: of a fantasy.

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Speaker 13: I it's so these numbers are big, the projections, the

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Speaker 13: ambitions are big. I do think though, when we think

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Speaker 13: about what we are capable of as a species, space

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Speaker 13: has been something that has mystified us, excited us for

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Speaker 13: a very long time, especially in modern history and modern technology.

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Speaker 13: This was a frontier we really believed for a long time,

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Speaker 13: and I did growing up. It was only a place

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Speaker 13: for governments to build and innovate. NASA putting a man

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Speaker 13: on the moon, all that stuff was never something the

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Speaker 13: private sector could do. But what we're seeing now here

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Speaker 13: is undeniable. The private sector's being able to accomplish a lot,

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Speaker 13: and I think it's only going to accelerate. And I

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Speaker 13: do think the overall market is potentially that big. I

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Speaker 13: think when we're talking about human ambition, there is no

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Speaker 13: limit to that, when we talk about the opportunities in space.

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Speaker 9: As Low Earth orbit.

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Speaker 13: Alone just becomes more accessible, we're unlocking pharmaceuticals, We're unlocking

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Speaker 13: biotech that's going to help us here back at home.

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Speaker 13: And that's the stuff that gets me fired up as

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Speaker 13: an investor. That's what gets me fired up as an American.

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Speaker 13: I want to see that innovation come and help us

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Speaker 13: live better lives here on planet Earth.

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Speaker 12: So as having SpaceX as a public company, is that

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Speaker 12: a good thing for your space investments because it shows

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Speaker 12: there's a pathway for public markets Or is it a

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Speaker 12: bad thing because so much money is going to get

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Speaker 12: funneled into this IPO that maybe leaves less room for

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Speaker 12: some of the other space companies.

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Speaker 13: Well, the goodness is where I like to invest is

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Speaker 13: still so early. Very few of these companies, you know,

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Speaker 13: companies like Stoke or Astro Forger are thinking about going

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Speaker 13: public quite yet. They're still thinking about building and shipping

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Speaker 13: and launching. I do think you're going to have undeniably

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Speaker 13: a whole fleet of newly minted millionaires multimillionaires as well

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Speaker 13: as investors, So not just the early employees, but also

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Speaker 13: the investors who believe in space tech, who are now

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Speaker 13: going to have capital to put into the sort of

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Speaker 13: next wave. And I think we've seen that play out

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Speaker 13: in tech before and this will be no exception. And

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Speaker 13: I do think that all continues to accelerate all of

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Speaker 13: us in building the space economy.

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Speaker 2: That we're open for building.

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Speaker 12: A space economy, though it is something that certainly takes time,

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Speaker 12: and I just wonder if there is room for disappointment.

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Speaker 12: I mean, I don't mean to harp on sort of

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Speaker 12: the crazy numbers of it all, but is there a

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Speaker 12: fear that it gets too overhyped. A SpaceX IPO is

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Speaker 12: just too large, and there's some disappointment and it sets

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Speaker 12: the project back to humanity what you're talking about, It

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Speaker 12: sets it back in some time.

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Speaker 13: I do think it is it is important to have

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Speaker 13: this tempered expectation. I think, on the one hand, folks

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Speaker 13: have to balance one what I think is a very

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Speaker 13: important almost unbridled ambition for human progress, which is I

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Speaker 13: think a very important and noble and great quest and

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Speaker 13: at the same time the realistic, you know, expectations. You know,

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Speaker 13: everyone should obviously do their diligence, do their own underwriting,

440
00:21:43,280 --> 00:21:46,280
Speaker 13: all that important stuff before making any kind of stock decision.

441
00:21:46,280 --> 00:21:49,200
Speaker 2: Thank you for the legal leaders compliance.

442
00:21:48,800 --> 00:21:49,399
Speaker 9: Is happy with me.

443
00:21:49,720 --> 00:21:52,120
Speaker 13: But at the end of the day, I do think

444
00:21:52,280 --> 00:21:55,840
Speaker 13: what we're talking about here is creating very real value.

445
00:21:56,080 --> 00:21:59,879
Speaker 13: I know, even you think about anecdotally the difference of

446
00:22:00,080 --> 00:22:02,880
Speaker 13: person has once they've taken a United flight with Starlink,

447
00:22:03,960 --> 00:22:07,840
Speaker 13: Like there's a very very different feeling about how you

448
00:22:07,880 --> 00:22:10,359
Speaker 13: interact with technology when you've experienced just a little fraction

449
00:22:10,440 --> 00:22:11,760
Speaker 13: of what the space economy can do.

450
00:22:12,200 --> 00:22:13,240
Speaker 9: And I do think as we.

451
00:22:13,200 --> 00:22:16,120
Speaker 13: Start to unlock pharmaceuticals and biotech that could really only

452
00:22:16,160 --> 00:22:19,680
Speaker 13: be done in zero G, we're talking about again saving lives,

453
00:22:19,720 --> 00:22:22,320
Speaker 13: improving quality of life, things that I know provide a

454
00:22:22,359 --> 00:22:24,600
Speaker 13: real economic value, but at the same time help us

455
00:22:24,640 --> 00:22:26,280
Speaker 13: live that Star Trek future. I think a lot of

456
00:22:26,400 --> 00:22:30,120
Speaker 13: us grew up wanting, so I think, be exuberant, be excited,

457
00:22:30,560 --> 00:22:32,439
Speaker 13: but at the same time, obviously, you know, be thoughtful

458
00:22:32,440 --> 00:22:32,880
Speaker 13: and how you're.

459
00:22:32,800 --> 00:22:33,480
Speaker 9: Interacting this stuff.

460
00:22:33,480 --> 00:22:35,840
Speaker 12: I mean it's not just obviously spacexsipon. We also have

461
00:22:35,920 --> 00:22:39,239
Speaker 12: open AI filing. Anthropic does as well. And these are

462
00:22:39,280 --> 00:22:42,280
Speaker 12: companies that have had a lot of VC backing. In fact,

463
00:22:42,320 --> 00:22:44,040
Speaker 12: so much so we were talking about this on stage.

464
00:22:44,080 --> 00:22:46,879
Speaker 12: Sixty five percent of VC money has gone to just

465
00:22:47,040 --> 00:22:51,080
Speaker 12: zero point zero five percent of companies. Is something broken

466
00:22:51,400 --> 00:22:53,800
Speaker 12: that Those are the statistics we're faced with right now.

467
00:22:53,920 --> 00:22:55,000
Speaker 9: It is a unique time.

468
00:22:55,040 --> 00:22:57,959
Speaker 13: I think clearly as an early stage investor, you know,

469
00:22:58,240 --> 00:23:00,760
Speaker 13: I am insulated from this a bit because where the ones,

470
00:23:00,840 --> 00:23:03,600
Speaker 13: these multi stages are often marking up my early investments,

471
00:23:03,600 --> 00:23:06,480
Speaker 13: and so you know, it's I think where you start

472
00:23:06,520 --> 00:23:09,360
Speaker 13: to see the challenge is a lot of these companies

473
00:23:09,480 --> 00:23:12,480
Speaker 13: in a previous decade would have already been public, and

474
00:23:12,720 --> 00:23:15,600
Speaker 13: because companies held off going public longer, the private markets

475
00:23:15,640 --> 00:23:19,760
Speaker 13: became a place that was effectively dealing like a public marketplace.

476
00:23:20,040 --> 00:23:22,040
Speaker 13: So you're seeing these valuations, you're seeing this increase. I

477
00:23:22,080 --> 00:23:24,359
Speaker 13: think it is a positive for America and for the

478
00:23:24,440 --> 00:23:28,600
Speaker 13: world that you know, retail, that that regular folks get

479
00:23:28,640 --> 00:23:32,240
Speaker 13: access to these opportunities. I frankly wish it would happen

480
00:23:32,280 --> 00:23:35,119
Speaker 13: sooner because I think Historically, you know, people draw up,

481
00:23:35,280 --> 00:23:38,080
Speaker 13: you know, the market cap of Amazon or revenues of

482
00:23:38,080 --> 00:23:40,959
Speaker 13: Amazon or Google when they went public. And you know,

483
00:23:41,200 --> 00:23:43,280
Speaker 13: we're in a different world now where privately held companies

484
00:23:43,280 --> 00:23:46,399
Speaker 13: are able to generate tremendous revenues and market caps before

485
00:23:46,400 --> 00:23:50,520
Speaker 13: going public. But I do think I think this has

486
00:23:50,560 --> 00:23:52,600
Speaker 13: been a long time coming, and I do think generally

487
00:23:53,080 --> 00:23:56,320
Speaker 13: venture should be a place to be contring and right

488
00:23:56,560 --> 00:24:00,800
Speaker 13: it should be a non consensus asset, especially on the

489
00:24:00,800 --> 00:24:03,040
Speaker 13: growth side. It's looking more and more consensus. So, look,

490
00:24:03,080 --> 00:24:05,080
Speaker 13: those companies are about to turn public. We'll see what

491
00:24:05,119 --> 00:24:08,200
Speaker 13: the next wave of private looks like. I'm certainly trying

492
00:24:08,200 --> 00:24:10,080
Speaker 13: to do my pest to be on the non consensus

493
00:24:10,119 --> 00:24:12,399
Speaker 13: and right side early. And I do think venture is

494
00:24:12,440 --> 00:24:15,119
Speaker 13: healthier as an ecosystem when it's not looking like a

495
00:24:15,160 --> 00:24:17,120
Speaker 13: couple of very very concentrated bets.

496
00:24:17,160 --> 00:24:19,760
Speaker 12: Well, usually what you say when there's a consensus is

497
00:24:19,800 --> 00:24:21,520
Speaker 12: that that's a dangerous thing, and it means that there

498
00:24:21,520 --> 00:24:23,880
Speaker 12: can be a correction. Do you think that that's possible

499
00:24:23,920 --> 00:24:26,439
Speaker 12: for this industry if everyone is crowding around similar bets.

500
00:24:27,040 --> 00:24:29,720
Speaker 13: Look, your instincts are right, and I know you always

501
00:24:29,760 --> 00:24:33,639
Speaker 13: get in trouble saying why something is different this time. Yeah,

502
00:24:33,800 --> 00:24:36,520
Speaker 13: And with that caveat, I still think something is different

503
00:24:36,560 --> 00:24:39,679
Speaker 13: this time. And I know, look, I live through the

504
00:24:39,680 --> 00:24:42,600
Speaker 13: social media wave. I naively thought the social media revolution

505
00:24:42,640 --> 00:24:44,760
Speaker 13: that we were building with Reddit was like the revolution

506
00:24:45,480 --> 00:24:49,160
Speaker 13: it was not. I naively thought mobile was a revolution.

507
00:24:49,320 --> 00:24:49,679
Speaker 2: It was not.

508
00:24:49,840 --> 00:24:51,760
Speaker 13: I mean it was, but in a much smaller way

509
00:24:51,840 --> 00:24:55,080
Speaker 13: compared to what this is. We have seen in just

510
00:24:55,119 --> 00:24:58,520
Speaker 13: a few years technology go from an interesting novelty that

511
00:24:58,560 --> 00:25:01,439
Speaker 13: could help you write like a press relief, to technology

512
00:25:01,480 --> 00:25:04,359
Speaker 13: that could literally write code as well as or better

513
00:25:04,600 --> 00:25:07,040
Speaker 13: than even some of the most senior experience developers. And

514
00:25:07,400 --> 00:25:10,919
Speaker 13: it really augments the output of folks. So there's a

515
00:25:10,960 --> 00:25:13,760
Speaker 13: real technology here. It's a real shift, and I don't

516
00:25:13,760 --> 00:25:15,600
Speaker 13: think it goes away. And I also think it has,

517
00:25:15,640 --> 00:25:18,960
Speaker 13: as I set on stage, a national security importance because

518
00:25:19,119 --> 00:25:21,399
Speaker 13: so much of our lives are digital being able. You

519
00:25:21,440 --> 00:25:24,640
Speaker 13: saw us with the way Anthropic thoughtfully rolled out mythos,

520
00:25:25,080 --> 00:25:27,600
Speaker 13: like you know, we used it first and foremost to

521
00:25:27,600 --> 00:25:30,439
Speaker 13: shore up vulnerabilities that we had in our businesses here

522
00:25:30,480 --> 00:25:33,000
Speaker 13: in America. And so even if it never got even

523
00:25:33,000 --> 00:25:35,639
Speaker 13: if AI never got any better than where it is today.

524
00:25:35,920 --> 00:25:38,879
Speaker 13: You know that is already incredibly valuable, and there's so

525
00:25:39,000 --> 00:25:41,000
Speaker 13: much wood to chop as we look across so many

526
00:25:41,040 --> 00:25:43,800
Speaker 13: businesses that right now don't have any software in them.

527
00:25:43,880 --> 00:25:45,440
Speaker 13: This hotel, I am sure.

528
00:25:45,760 --> 00:25:47,000
Speaker 5: Don't tell me this hotel.

529
00:25:46,760 --> 00:25:49,560
Speaker 12: Is going to be an aips AS, but I am

530
00:25:49,640 --> 00:25:52,760
Speaker 12: sure that whatever systems they're using right now are.

531
00:25:54,240 --> 00:25:59,159
Speaker 13: Very bad and software as a layer of user experience,

532
00:25:59,160 --> 00:26:01,399
Speaker 13: these root should be able to level that up in

533
00:26:01,400 --> 00:26:02,120
Speaker 13: a meaningful way.

534
00:26:02,280 --> 00:26:03,680
Speaker 12: And by the way, I do want to just ask

535
00:26:03,760 --> 00:26:06,480
Speaker 12: quickly because we have forty five seconds left. There is

536
00:26:06,520 --> 00:26:08,840
Speaker 12: this idea that the thing that survives in AI is

537
00:26:08,920 --> 00:26:10,960
Speaker 12: just like live entertainment, and you have a lot of

538
00:26:10,960 --> 00:26:13,680
Speaker 12: bets around women's sports very much. Has this whole revolution

539
00:26:13,760 --> 00:26:16,000
Speaker 12: this thing we're experiencing just Mede, you double down on that.

540
00:26:16,240 --> 00:26:18,400
Speaker 13: Yeah, I mean look, I was a rare voice five

541
00:26:18,480 --> 00:26:20,600
Speaker 13: six years ago saying this was in a soutional great

542
00:26:20,640 --> 00:26:23,600
Speaker 13: asset not just sports, but also specifically women's sports. I

543
00:26:23,640 --> 00:26:26,800
Speaker 13: love seeing this. I am certain five ten years from

544
00:26:26,840 --> 00:26:29,000
Speaker 13: now we will still watch no matter how good the

545
00:26:29,600 --> 00:26:34,120
Speaker 13: AI generated highlights get. You know, watching the AI version

546
00:26:34,800 --> 00:26:37,800
Speaker 13: of that Knicks final last night would do nothing for

547
00:26:37,880 --> 00:26:40,480
Speaker 13: the human soul yep, because it requires even though even

548
00:26:40,480 --> 00:26:43,560
Speaker 13: if it was pixel perfect, if it didn't actually happen,

549
00:26:43,640 --> 00:26:46,840
Speaker 13: it is irrelevant and worthless. So live sports has to

550
00:26:46,880 --> 00:26:49,359
Speaker 13: be fundamentally human. No one is going to line up

551
00:26:49,400 --> 00:26:52,359
Speaker 13: to see a bunch of robots, you know, play eighteen

552
00:26:52,400 --> 00:26:54,439
Speaker 13: holes of golf against each other where everyone hits a

553
00:26:54,440 --> 00:26:55,160
Speaker 13: hole in one.

554
00:26:55,400 --> 00:26:55,560
Speaker 8: Right.

555
00:26:55,600 --> 00:26:58,399
Speaker 13: The end state of this technology is some version of

556
00:26:58,400 --> 00:26:59,600
Speaker 13: this perfection that no one's.

557
00:26:59,400 --> 00:27:01,200
Speaker 9: Going to want to watch. Sport has to be human.

558
00:27:01,600 --> 00:27:03,679
Speaker 13: So I've been saying this for five six years now

559
00:27:03,720 --> 00:27:06,240
Speaker 13: and I'm only more confident about it. And I think

560
00:27:06,280 --> 00:27:09,560
Speaker 13: what this technology does is it makes these assets more valuable.

561
00:27:09,600 --> 00:27:12,639
Speaker 13: It makes them more engaging for fans. It improves training,

562
00:27:12,680 --> 00:27:15,400
Speaker 13: it improves so many elements, but it does not replace minding.

563
00:27:15,240 --> 00:27:16,560
Speaker 5: Is a out of time. But should we just end

564
00:27:16,560 --> 00:27:17,560
Speaker 5: with nix and five?

565
00:27:18,119 --> 00:27:19,360
Speaker 2: Nix and five, I think that's fun.

566
00:27:19,400 --> 00:27:22,040
Speaker 9: That's a look into the camera and Nixon thie perfect

567
00:27:22,040 --> 00:27:22,520
Speaker 9: place to end it.

568
00:27:22,560 --> 00:27:25,840
Speaker 12: Alection, thank you so much for joining me, Ed Caroline

569
00:27:25,840 --> 00:27:29,040
Speaker 12: Alexis o'hanne and the founder of seven seven six and

570
00:27:29,080 --> 00:27:29,399
Speaker 12: read it.

571
00:27:29,960 --> 00:27:32,520
Speaker 3: Thank you very much, Danny Berger. I really want to

572
00:27:32,560 --> 00:27:34,840
Speaker 3: check back in in markets and I don't mean like

573
00:27:35,240 --> 00:27:37,320
Speaker 3: what's happening in the here and now, we're like up

574
00:27:37,359 --> 00:27:39,000
Speaker 3: eight ten percent on that's that one hundred.

575
00:27:39,040 --> 00:27:40,960
Speaker 2: I call it like a modest rebound.

576
00:27:41,000 --> 00:27:43,280
Speaker 3: Oracle is down on track for his worst day in

577
00:27:43,320 --> 00:27:46,080
Speaker 3: six months because it warned investors is going to have

578
00:27:46,080 --> 00:27:49,480
Speaker 3: to tap equity and debt markets. It needs that capital

579
00:27:49,520 --> 00:27:53,040
Speaker 3: carro like it's like can't build compute fast enough. But

580
00:27:53,119 --> 00:27:55,560
Speaker 3: it's interesting, like if you just take a sec calm

581
00:27:55,560 --> 00:27:57,760
Speaker 3: it down most of the names and then that's like one.

582
00:27:57,720 --> 00:28:00,480
Speaker 2: Hundred a higher. It's the hyperscalers that are lower.

583
00:28:00,640 --> 00:28:03,480
Speaker 3: The software names are a little bit lower, and there

584
00:28:03,600 --> 00:28:06,959
Speaker 3: must be an element of like treading water to SpaceX's

585
00:28:06,960 --> 00:28:07,640
Speaker 3: debut tomorrow.

586
00:28:07,800 --> 00:28:10,800
Speaker 4: Definitely, maybe people still rearranging as to how much allocation

587
00:28:11,000 --> 00:28:14,440
Speaker 4: they can have, how much money they've committed. But also, look,

588
00:28:14,520 --> 00:28:17,879
Speaker 4: there's still hardware on the higher side and particular in

589
00:28:17,960 --> 00:28:19,760
Speaker 4: the chip side of the equation. And let's just talk

590
00:28:19,760 --> 00:28:22,760
Speaker 4: a little bit about that, because questions are clearly around

591
00:28:22,800 --> 00:28:24,480
Speaker 4: the cost of the AI boom for Oracle there, but

592
00:28:24,520 --> 00:28:26,960
Speaker 4: also costs for you and me for the American people

593
00:28:27,040 --> 00:28:29,720
Speaker 4: in freation is spiking with tech chants scrambling to build

594
00:28:29,720 --> 00:28:33,800
Speaker 4: out data centers. Memory chip prices have skyrocketed, driving a

595
00:28:33,920 --> 00:28:36,760
Speaker 4: record spike in tech, hardware and electricity costs. This is

596
00:28:36,800 --> 00:28:39,600
Speaker 4: exactly the story that Bloomberg's end a Current is helping

597
00:28:39,640 --> 00:28:41,840
Speaker 4: tell today. You tell it through an individual who's helping

598
00:28:42,040 --> 00:28:45,120
Speaker 4: small medium sized enterprises gain access to upgrading memory.

599
00:28:45,160 --> 00:28:47,120
Speaker 5: And I mean he's just thinking this is out of

600
00:28:47,120 --> 00:28:47,600
Speaker 5: this world.

601
00:28:49,120 --> 00:28:51,360
Speaker 14: Yeah, indeed, I mean this is the word AI boom

602
00:28:51,400 --> 00:28:54,120
Speaker 14: is spilling over into real living costs. So you mentioned,

603
00:28:54,160 --> 00:28:56,360
Speaker 14: for example, I spoke to a couple of companies, one

604
00:28:56,400 --> 00:28:59,240
Speaker 14: of them in bolted More. He deals with small businesses.

605
00:28:59,240 --> 00:29:01,600
Speaker 14: He does for it services. So they come in the

606
00:29:01,600 --> 00:29:05,280
Speaker 14: door looking for memory storage upgrade or maybe even new computer,

607
00:29:05,480 --> 00:29:08,440
Speaker 14: and he's saying to them, look, because of the AI

608
00:29:08,680 --> 00:29:12,280
Speaker 14: boom demand for chips, that's driving up the cost for

609
00:29:12,320 --> 00:29:15,480
Speaker 14: the components he needs, like RAM storage ssd' sa' driving

610
00:29:15,480 --> 00:29:18,320
Speaker 14: it up significantly, and as a result, obviously that means

611
00:29:18,680 --> 00:29:20,800
Speaker 14: their upgrade job will be much more expensive, to the

612
00:29:20,840 --> 00:29:23,719
Speaker 14: point where he says, it's telling some customers looking motophill

613
00:29:23,800 --> 00:29:26,400
Speaker 14: gone by a new computer or new laptop, and the

614
00:29:26,480 --> 00:29:28,320
Speaker 14: cost of the new computer new laptop is also going

615
00:29:28,400 --> 00:29:31,640
Speaker 14: up as a result. So this these chips go into

616
00:29:31,680 --> 00:29:33,680
Speaker 14: everything that we use in every walk of life and

617
00:29:33,880 --> 00:29:35,560
Speaker 14: flowing through now to the inflation data.

618
00:29:35,920 --> 00:29:38,000
Speaker 3: I'm going to just read this and because I couldn't

619
00:29:38,040 --> 00:29:41,280
Speaker 3: believe it, it's the AI summary of your story. But

620
00:29:41,400 --> 00:29:44,920
Speaker 3: the memory squeeze will add zero point four percentage points

621
00:29:44,960 --> 00:29:48,720
Speaker 3: to headline inflation before it eases. According to Blue Megeconomics,

622
00:29:49,320 --> 00:29:52,840
Speaker 3: it is shocking to me that there is a single

623
00:29:52,960 --> 00:29:56,880
Speaker 3: basis point. We're talking about a category of specific hard

624
00:29:56,960 --> 00:30:01,440
Speaker 3: round chips impacting inflation at a the substantive level. Like

625
00:30:01,800 --> 00:30:03,720
Speaker 3: I've spoken to you for years, you've been all around

626
00:30:03,720 --> 00:30:06,560
Speaker 3: the world looking at different economies, different supply chains.

627
00:30:07,040 --> 00:30:08,000
Speaker 2: Is that shocking to you?

628
00:30:08,640 --> 00:30:11,520
Speaker 3: What have you learned in the real world economy about

629
00:30:11,520 --> 00:30:12,280
Speaker 3: that data point.

630
00:30:13,600 --> 00:30:15,760
Speaker 14: It's certainly an impact. I mean, the official data that

631
00:30:15,840 --> 00:30:19,120
Speaker 14: we had yesterday to your point, showed that the technology

632
00:30:19,800 --> 00:30:24,240
Speaker 14: and computer components part of the inflation indicators was actually

633
00:30:24,360 --> 00:30:27,000
Speaker 14: up by just about fifteen percent from a year ago.

634
00:30:27,120 --> 00:30:30,360
Speaker 14: That's a record increase. So it is having the impact now.

635
00:30:30,520 --> 00:30:33,720
Speaker 14: To be clear, obviously it's not the only issue driving

636
00:30:33,720 --> 00:30:36,120
Speaker 14: inflation right now. They ran more of course because of

637
00:30:36,120 --> 00:30:39,400
Speaker 14: the impact and energy is the bigger driver, but it

638
00:30:39,560 --> 00:30:43,640
Speaker 14: is filtering, is filtering through in a meaningful way, and

639
00:30:43,760 --> 00:30:46,080
Speaker 14: economs are saying it's going to be enough to keep

640
00:30:46,440 --> 00:30:49,720
Speaker 14: inflation simmering at a point where it wouldn't otherwise be

641
00:30:49,800 --> 00:30:51,400
Speaker 14: and that's a critical thing, and of course that's a

642
00:30:51,440 --> 00:30:55,920
Speaker 14: real worry for policy makers. So the AI inflation story

643
00:30:56,040 --> 00:30:58,320
Speaker 14: may not be the only factor of what's keeping in

644
00:30:58,440 --> 00:31:01,400
Speaker 14: terms of what's keeping US inflation elevated, but it is

645
00:31:01,440 --> 00:31:03,880
Speaker 14: certainly one of the factors. In a direct consequence of

646
00:31:03,960 --> 00:31:05,320
Speaker 14: this AI boomlet rolls.

647
00:31:05,160 --> 00:31:07,560
Speaker 3: In and when we were discussing markets a moment ago,

648
00:31:07,560 --> 00:31:09,320
Speaker 3: I should also se like, of course the warring around

649
00:31:09,320 --> 00:31:11,680
Speaker 3: the Middle East is like a driver a catalyst. And

650
00:31:11,680 --> 00:31:14,040
Speaker 3: what's happening in equities at least today Bloomberg's end of

651
00:31:14,080 --> 00:31:17,240
Speaker 3: current in DC awesome, Really appreciate it. Thank you, So

652
00:31:17,440 --> 00:31:21,440
Speaker 3: stock stage, let's say a cautious rebound with tech stocks

653
00:31:22,040 --> 00:31:23,760
Speaker 3: somewhat leading the way, like as we were talking about,

654
00:31:23,760 --> 00:31:25,680
Speaker 3: there's a little bit of bifurcation in the bucket of

655
00:31:25,720 --> 00:31:28,560
Speaker 3: then as like one hundred, but concerns about the potential

656
00:31:28,680 --> 00:31:31,600
Speaker 3: escalation escalation right of the conflict in the Middle East

657
00:31:31,880 --> 00:31:34,560
Speaker 3: are keeping investors a little bit on edge. Oil prices

658
00:31:34,600 --> 00:31:37,640
Speaker 3: are still a factor. Again, I still think SpaceX has

659
00:31:37,680 --> 00:31:39,040
Speaker 3: quite a lot to do with this. Let's bring in

660
00:31:39,080 --> 00:31:41,720
Speaker 3: Christina Hooper for her read chief market strategist in the

661
00:31:41,760 --> 00:31:43,800
Speaker 3: Man Group two undred and twenty eight point seven billion

662
00:31:43,840 --> 00:31:46,520
Speaker 3: dollars in assets under management. You know, I say this

663
00:31:46,640 --> 00:31:49,480
Speaker 3: quite often, particularly for the tech sector, Like one session

664
00:31:49,560 --> 00:31:52,200
Speaker 3: the market does not make But what is the story

665
00:31:52,280 --> 00:31:53,760
Speaker 3: you see in the numbers on the screen in front

666
00:31:53,760 --> 00:31:54,320
Speaker 3: of you right now?

667
00:31:54,800 --> 00:31:58,080
Speaker 15: Well, I think there is a lot of excitement around SpaceX.

668
00:31:58,440 --> 00:32:03,440
Speaker 15: This is a I think creating a very significant level

669
00:32:03,520 --> 00:32:06,560
Speaker 15: of positive sentiments, so much so that markets can really

670
00:32:06,720 --> 00:32:12,840
Speaker 15: look through all the geopolitical risk and say, hey, this

671
00:32:13,040 --> 00:32:17,960
Speaker 15: is something exciting. This is something that has incredibly long

672
00:32:18,080 --> 00:32:22,680
Speaker 15: term potential. Long term it is you know, it is

673
00:32:22,800 --> 00:32:27,080
Speaker 15: to me a story about markets that want to focus

674
00:32:27,200 --> 00:32:29,520
Speaker 15: on the positive and this is giving them a reason

675
00:32:29,600 --> 00:32:30,280
Speaker 15: to be positive.

676
00:32:30,600 --> 00:32:34,479
Speaker 4: As a market strategist, Christina, when you're getting bombarded with cools,

677
00:32:35,080 --> 00:32:37,320
Speaker 4: should I buy in space X? Should I be looking

678
00:32:37,400 --> 00:32:39,280
Speaker 4: at open AI and and throw picking all the IPOs

679
00:32:39,320 --> 00:32:40,720
Speaker 4: and might becoming what is your answer?

680
00:32:41,640 --> 00:32:43,320
Speaker 15: My answer is, I think we need to think of

681
00:32:43,400 --> 00:32:46,320
Speaker 15: it in terms of the context of a diversified portfolio,

682
00:32:46,840 --> 00:32:51,160
Speaker 15: there is certainly potential there. As I talked about, there's

683
00:32:51,880 --> 00:32:56,080
Speaker 15: growth opportunities. We also have to recognize that valuations are high,

684
00:32:56,400 --> 00:33:00,480
Speaker 15: and when valuations are high, stocks are vulnerable to a rerating,

685
00:33:00,840 --> 00:33:02,880
Speaker 15: especially in an environment in which you have an enormous

686
00:33:02,920 --> 00:33:04,320
Speaker 15: amount of geopolitical risk.

687
00:33:04,760 --> 00:33:05,680
Speaker 5: Now that may.

688
00:33:05,760 --> 00:33:09,720
Speaker 15: Impact some stocks more than others, but typically when you

689
00:33:09,920 --> 00:33:14,360
Speaker 15: have rates going up, that exerts downward pressure on equities,

690
00:33:14,400 --> 00:33:18,560
Speaker 15: particularly long duration equities like tech names. So if you're

691
00:33:18,680 --> 00:33:22,640
Speaker 15: looking out far longer term for your earnings, for your payoffs,

692
00:33:22,680 --> 00:33:26,080
Speaker 15: so to speak, then you could very well see some

693
00:33:26,280 --> 00:33:28,200
Speaker 15: kind of a rerating because.

694
00:33:28,080 --> 00:33:30,120
Speaker 3: In a part of the space x IPO equation is

695
00:33:30,160 --> 00:33:33,920
Speaker 3: slightly mechanical, so some of the index fast track inclusion

696
00:33:34,040 --> 00:33:37,000
Speaker 3: right and in very simple terms, the passive funds will

697
00:33:37,080 --> 00:33:40,160
Speaker 3: have to buy their own by laws rebalance. Could you

698
00:33:40,280 --> 00:33:42,400
Speaker 3: explain that a little bit a the basics of it.

699
00:33:42,560 --> 00:33:45,720
Speaker 3: But when you're a strategist looking across assets, what you

700
00:33:45,840 --> 00:33:47,320
Speaker 3: think will happen as a result of.

701
00:33:47,360 --> 00:33:51,520
Speaker 15: That, Well, essentially you have a built in demand that

702
00:33:51,920 --> 00:33:55,440
Speaker 15: is vast because if you think about all the different

703
00:33:55,960 --> 00:33:58,400
Speaker 15: owners of index like.

704
00:34:00,320 --> 00:34:01,120
Speaker 2: Fund products.

705
00:34:01,440 --> 00:34:05,280
Speaker 15: You have this captive audience that will be owning it

706
00:34:05,400 --> 00:34:09,400
Speaker 15: as part of that, and so that certainly changes the dynamics.

707
00:34:09,440 --> 00:34:12,160
Speaker 15: That's very different than the other IPOs we've seen, and

708
00:34:12,280 --> 00:34:14,520
Speaker 15: again it's part of why there's so much excitement and

709
00:34:14,880 --> 00:34:18,560
Speaker 15: there's a view that this stock price could go up

710
00:34:18,719 --> 00:34:20,600
Speaker 15: quite significantly from here.

711
00:34:21,360 --> 00:34:23,680
Speaker 4: Isn't an irony that Elo Musk has always pushed and

712
00:34:23,760 --> 00:34:26,560
Speaker 4: railed against past. Yeah, but passive is going to be

713
00:34:26,800 --> 00:34:29,920
Speaker 4: such a driver of demand more broadly for the IPO,

714
00:34:30,000 --> 00:34:32,920
Speaker 4: But so too is the commitment to the retail investor.

715
00:34:33,440 --> 00:34:36,600
Speaker 4: Have you done much strategic thought around the impact of

716
00:34:36,680 --> 00:34:39,279
Speaker 4: retail investor right now on broader markets because they're a

717
00:34:39,360 --> 00:34:42,040
Speaker 4: loyal bunch quite often, but they can also wide in

718
00:34:42,239 --> 00:34:44,840
Speaker 4: on mean themes and cause more volatility.

719
00:34:45,080 --> 00:34:45,200
Speaker 2: Oh.

720
00:34:45,280 --> 00:34:45,840
Speaker 5: Absolutely.

721
00:34:46,000 --> 00:34:48,200
Speaker 15: I think that's why there are so many firms that

722
00:34:48,840 --> 00:34:52,640
Speaker 15: essentially monitor read it and other sites. I think that

723
00:34:52,960 --> 00:34:58,120
Speaker 15: was learned from game stuff that retail investors are quite

724
00:34:58,360 --> 00:35:01,000
Speaker 15: powerful now. I think think what we're seeing now is

725
00:35:01,040 --> 00:35:06,000
Speaker 15: that retail investors are seeing opportunities in technology, particularly AI

726
00:35:06,160 --> 00:35:09,440
Speaker 15: related names, and they have put their full force behind it.

727
00:35:09,680 --> 00:35:12,239
Speaker 15: That's not to say we haven't seen institutional investors as well,

728
00:35:12,560 --> 00:35:15,279
Speaker 15: and so that has created quite a dynamic, and that

729
00:35:15,600 --> 00:35:19,040
Speaker 15: is really, I think largely behind the kind of incredible

730
00:35:19,120 --> 00:35:21,680
Speaker 15: recovery we've seen over the last couple of months. I mean,

731
00:35:21,920 --> 00:35:23,719
Speaker 15: the returns are really quite astounding.

732
00:35:24,200 --> 00:35:26,360
Speaker 3: I would love to dwell on this, if that's okay, Christina.

733
00:35:26,400 --> 00:35:29,120
Speaker 3: So Bloomberg reported that there was seventy billion dollars of

734
00:35:29,200 --> 00:35:32,240
Speaker 3: retail demand for the SpaceX IPO, though we don't actually

735
00:35:32,360 --> 00:35:36,120
Speaker 3: know the allocation yet, so it's oversubscribed. But one of

736
00:35:36,160 --> 00:35:39,720
Speaker 3: the thesis, that thesis that you know, the existing investor

737
00:35:39,760 --> 00:35:42,920
Speaker 3: base of SpaceX tell me over and over again, retail

738
00:35:43,040 --> 00:35:46,080
Speaker 3: understands the story better, They're more likely to hold onto

739
00:35:46,080 --> 00:35:49,160
Speaker 3: the shares for longer, and that will support evaluation over

740
00:35:49,200 --> 00:35:50,200
Speaker 3: a longer time period.

741
00:35:51,360 --> 00:35:54,280
Speaker 2: You model for that, Do you share that belief?

742
00:35:55,560 --> 00:35:57,480
Speaker 5: So I think it can be a double edged sword.

743
00:35:57,840 --> 00:36:01,360
Speaker 15: Yes, retail does under stand the story. That's part of

744
00:36:01,440 --> 00:36:03,560
Speaker 15: why there's so much excitement around it and there's so

745
00:36:03,680 --> 00:36:06,960
Speaker 15: much retail demand for the IPO. But by the same token,

746
00:36:07,080 --> 00:36:11,080
Speaker 15: because retail understands the story, if we see cracks form

747
00:36:11,239 --> 00:36:12,960
Speaker 15: in critical businesses.

748
00:36:12,840 --> 00:36:14,800
Speaker 5: Then you could see retail react to that.

749
00:36:15,000 --> 00:36:17,840
Speaker 15: Again, we have that sort of built in demand because

750
00:36:18,080 --> 00:36:22,160
Speaker 15: of the placement in the index. But having said that,

751
00:36:22,280 --> 00:36:24,919
Speaker 15: you could still see a lot of volatility. You could

752
00:36:25,040 --> 00:36:29,360
Speaker 15: see some kind of rerating in this environment if you

753
00:36:29,480 --> 00:36:32,239
Speaker 15: see yields continue to go up, and if you see

754
00:36:32,320 --> 00:36:35,600
Speaker 15: retail investors just become risk averse in general, which could

755
00:36:35,680 --> 00:36:36,520
Speaker 15: easily happen.

756
00:36:37,239 --> 00:36:40,200
Speaker 4: Christina Hoover, always so measured, always so thoughtful, Thank you

757
00:36:40,239 --> 00:36:43,480
Speaker 4: for coming on. MAD Group Chief market strategists there. Coming

758
00:36:43,600 --> 00:36:48,120
Speaker 4: up from Zatxa Software, go Poff partners with Spacexai a

759
00:36:48,239 --> 00:36:49,400
Speaker 4: new shopping experience.

760
00:36:49,760 --> 00:36:51,640
Speaker 5: We speak with the gop co CEO.

761
00:36:51,840 --> 00:36:55,400
Speaker 4: And why Spacexai, why they're offering why grow business, greenvectech.

762
00:37:04,440 --> 00:37:08,400
Speaker 3: As SpaceX heads towards its IPO tomorrow, investors are betting

763
00:37:08,480 --> 00:37:12,440
Speaker 3: on more than rockets and chatbots and satellites. The company

764
00:37:12,480 --> 00:37:15,680
Speaker 3: says enterprise AI represents a twenty six point five trillion

765
00:37:15,680 --> 00:37:19,680
Speaker 3: dollar opportunity, but can grop actually when corporate customers. One

766
00:37:19,719 --> 00:37:22,719
Speaker 3: of the few companies putting it to work is gopuff,

767
00:37:22,920 --> 00:37:26,360
Speaker 3: which built its new AI shopping assistant on XAIS models.

768
00:37:26,880 --> 00:37:31,320
Speaker 3: Joining us now is Gopuff CEO Raphael Ilishaiev. It's a

769
00:37:31,400 --> 00:37:33,600
Speaker 3: great case study, right I think a lot of people

770
00:37:33,719 --> 00:37:37,480
Speaker 3: read the prospectus and we're like, Okay, the future of

771
00:37:37,560 --> 00:37:42,040
Speaker 3: SPACEXAI is enterprise AI, but they have struggled a little

772
00:37:42,640 --> 00:37:44,920
Speaker 3: to get people to use the models in a meaningful way.

773
00:37:45,000 --> 00:37:47,960
Speaker 3: You are just explain the basics of the relationship and

774
00:37:48,040 --> 00:37:49,560
Speaker 3: what you've actually done with the technology.

775
00:37:50,880 --> 00:37:53,200
Speaker 10: Yeah, Ed, Caroline, thank you so much for having me

776
00:37:53,400 --> 00:37:58,080
Speaker 10: so Over the last thirteen years, gobov has built infrastructure

777
00:37:58,480 --> 00:38:02,000
Speaker 10: to be the fastest and most affordable player in delivery,

778
00:38:02,680 --> 00:38:05,440
Speaker 10: and our partnership with SpaceX and the product that we

779
00:38:05,520 --> 00:38:08,800
Speaker 10: co developed called Go solves the final friction point that

780
00:38:08,880 --> 00:38:11,759
Speaker 10: we really had, which is the consumer shopping experience.

781
00:38:12,239 --> 00:38:14,120
Speaker 2: So we thought about this differently.

782
00:38:13,800 --> 00:38:15,480
Speaker 10: Than I think a lot of other folks. And it's

783
00:38:15,520 --> 00:38:18,600
Speaker 10: not just an LM wrapper that's built within our app,

784
00:38:19,520 --> 00:38:22,359
Speaker 10: but in fact there's a co developed experience where it's

785
00:38:22,400 --> 00:38:26,600
Speaker 10: a whole new consumer on new consumer product where you

786
00:38:26,680 --> 00:38:29,440
Speaker 10: could shop via voice, you could talk to it, have

787
00:38:29,680 --> 00:38:33,400
Speaker 10: total total conversation like you would have with your best friend.

788
00:38:34,040 --> 00:38:36,279
Speaker 10: Go will build your cart, so if it knows enough

789
00:38:36,280 --> 00:38:38,759
Speaker 10: about you, it'll actually develop and build a whole cart,

790
00:38:39,120 --> 00:38:42,520
Speaker 10: and it has this TikTok style scrolling experience where you

791
00:38:42,600 --> 00:38:46,600
Speaker 10: can scroll and discover new products that are hyper personalized

792
00:38:46,640 --> 00:38:48,759
Speaker 10: and cared for you. So this is a whole new

793
00:38:48,840 --> 00:38:51,759
Speaker 10: experience that we co developed together with SpaceX over the

794
00:38:51,840 --> 00:38:52,799
Speaker 10: last year and fad.

795
00:38:52,800 --> 00:38:56,439
Speaker 4: What's interesting is when you're using data from X, You'll

796
00:38:56,520 --> 00:38:59,560
Speaker 4: know that I'm all in on the next in five

797
00:38:59,640 --> 00:39:02,480
Speaker 4: game on Saturday, and suddenly I'm being offered chicken wings

798
00:39:02,560 --> 00:39:04,320
Speaker 4: or I'm being offered chips or whatever it might be

799
00:39:04,320 --> 00:39:06,480
Speaker 4: because I'm able to and gopof on that moment on

800
00:39:06,560 --> 00:39:11,080
Speaker 4: the Saturday. But from actually embedding within X and within groc,

801
00:39:11,680 --> 00:39:14,320
Speaker 4: did you push away other relationships? Did you decide no,

802
00:39:14,440 --> 00:39:16,840
Speaker 4: thanks open Ai, no thanks anthropic?

803
00:39:16,920 --> 00:39:18,640
Speaker 5: Did you look at doing it with competitors?

804
00:39:19,920 --> 00:39:22,840
Speaker 10: You know, this kind of relationship that we had and

805
00:39:22,880 --> 00:39:25,400
Speaker 10: the kind of product that we wanted to build, this

806
00:39:25,680 --> 00:39:27,440
Speaker 10: wasn't just a plug and play that we could have

807
00:39:27,520 --> 00:39:30,319
Speaker 10: done with anyone. So we looked for folks that had

808
00:39:30,360 --> 00:39:33,920
Speaker 10: the right technology, and SpaceX has amongst the best technology

809
00:39:34,320 --> 00:39:37,840
Speaker 10: both for voice and imagine and a partner that was

810
00:39:37,880 --> 00:39:41,800
Speaker 10: willing to co develop this whole new consumer shopping experience

811
00:39:41,880 --> 00:39:45,200
Speaker 10: for us. So you know, this was a long, you know,

812
00:39:45,400 --> 00:39:48,800
Speaker 10: ten eleven month process that we co developed together with

813
00:39:48,960 --> 00:39:51,160
Speaker 10: a partner that was willing to work with us, you know,

814
00:39:51,239 --> 00:39:54,760
Speaker 10: even as early as this morning, talking with our engineers

815
00:39:54,800 --> 00:39:57,120
Speaker 10: and co developing this thing together to make it even better.

816
00:39:57,560 --> 00:39:59,160
Speaker 10: So we were looking for a partner that had the

817
00:39:59,239 --> 00:40:03,239
Speaker 10: right technology, which SpaceX is you know, in cutting edge

818
00:40:03,320 --> 00:40:06,360
Speaker 10: and the best boat in voice and in image generation,

819
00:40:06,840 --> 00:40:08,680
Speaker 10: and a partner that was willing to co develop this

820
00:40:08,800 --> 00:40:09,600
Speaker 10: new product together.

821
00:40:10,120 --> 00:40:13,000
Speaker 3: Could you talk a little bit about how the economics

822
00:40:13,000 --> 00:40:15,640
Speaker 3: of it work, like how does XAI price things with you?

823
00:40:16,160 --> 00:40:18,320
Speaker 3: It sounds also a bit like you get good access

824
00:40:18,400 --> 00:40:22,000
Speaker 3: to the forward deployed engineers, like daily access. All of

825
00:40:22,080 --> 00:40:24,040
Speaker 3: that is a big facts right now because everyone is

826
00:40:24,080 --> 00:40:25,320
Speaker 3: counting the cost of tokens.

827
00:40:26,760 --> 00:40:26,960
Speaker 5: Yeah.

828
00:40:27,080 --> 00:40:30,080
Speaker 10: Yeah, So it's a strategic relationship that we build together

829
00:40:30,880 --> 00:40:35,279
Speaker 10: with SPACEXI from day one. And the way that we

830
00:40:35,400 --> 00:40:38,600
Speaker 10: thought about the scaling is we wanted a provider that

831
00:40:38,680 --> 00:40:42,120
Speaker 10: can provide you know, a super high quality product bought

832
00:40:42,200 --> 00:40:47,520
Speaker 10: across voice and image and is arguably the lowest cost provider.

833
00:40:47,960 --> 00:40:51,200
Speaker 10: So we built a relationship that scales are.

834
00:40:51,200 --> 00:40:55,280
Speaker 3: The lowest provider you benchmarked against open ai and Anthropic

835
00:40:55,320 --> 00:40:56,160
Speaker 3: on the cost as well.

836
00:40:57,160 --> 00:40:58,759
Speaker 10: Yeah, we looked at we looked at a lot of

837
00:40:58,840 --> 00:41:01,960
Speaker 10: players when we did, and costs was one of the

838
00:41:02,080 --> 00:41:05,120
Speaker 10: factors here. But the quality of the product and the

839
00:41:05,200 --> 00:41:08,919
Speaker 10: willingness to co develop this together, all of that kind

840
00:41:08,960 --> 00:41:12,200
Speaker 10: of gave us a lot of confidence to work together

841
00:41:12,280 --> 00:41:14,720
Speaker 10: with SpaceX, And I think the product kind of speaks

842
00:41:14,760 --> 00:41:17,279
Speaker 10: for itself if you play with it. I think it's

843
00:41:17,320 --> 00:41:20,200
Speaker 10: second to none from a consumer AI experience.

844
00:41:20,360 --> 00:41:23,480
Speaker 4: I mean, Raphael is interesting reporting out over all Wall

845
00:41:23,480 --> 00:41:26,120
Speaker 4: Street Journal, for example, there's a thought that open Ai

846
00:41:26,239 --> 00:41:28,840
Speaker 4: might be doing some drastic price cuts in particular basically

847
00:41:28,880 --> 00:41:29,840
Speaker 4: the cost of its product.

848
00:41:29,880 --> 00:41:32,360
Speaker 5: People are who been wonderfully token.

849
00:41:32,200 --> 00:41:34,440
Speaker 4: Maxing is suddenly realizing how expensive that is and they

850
00:41:34,520 --> 00:41:37,080
Speaker 4: want to do that, perhaps ahead of competitors like Anthropic.

851
00:41:37,880 --> 00:41:41,759
Speaker 4: Are you seeing return on such AI investment? Is it

852
00:41:41,880 --> 00:41:43,480
Speaker 4: really driving growth for the business?

853
00:41:44,680 --> 00:41:47,719
Speaker 10: You know, we're a week in to Go launching, and

854
00:41:48,239 --> 00:41:50,239
Speaker 10: I'll tell you a lot of the consumer metrics really

855
00:41:50,320 --> 00:41:55,120
Speaker 10: early on are great. You know, basket sizes up and frequency.

856
00:41:54,680 --> 00:41:55,799
Speaker 9: Within the first week is up.

857
00:41:56,520 --> 00:41:59,240
Speaker 10: But what's even more special is the kind of conversations

858
00:41:59,520 --> 00:42:03,120
Speaker 10: that are consumers are having with Go. You know, we

859
00:42:03,239 --> 00:42:05,960
Speaker 10: saw a conversation earlier today with the mom saying Hey,

860
00:42:06,080 --> 00:42:08,719
Speaker 10: my kid is sick, can you help me? Or a

861
00:42:08,800 --> 00:42:12,360
Speaker 10: conversation a few days ago with someone asking, Hey, I'm

862
00:42:12,400 --> 00:42:15,480
Speaker 10: hosting a barbecue for six people, go can you help me?

863
00:42:15,920 --> 00:42:18,400
Speaker 10: And that kind of relationship that we're building with the

864
00:42:18,520 --> 00:42:22,279
Speaker 10: customer is kind of very special and I think those

865
00:42:22,360 --> 00:42:24,160
Speaker 10: kind of relationships are the ones that are going to

866
00:42:24,200 --> 00:42:28,040
Speaker 10: win and lead to ultimately better KPIs across the board.

867
00:42:28,800 --> 00:42:31,320
Speaker 4: That's great speaking with you, Afair alias Cherv he's the

868
00:42:31,360 --> 00:42:34,520
Speaker 4: co founder and co CEO of Gopuff. Appreciate the take

869
00:42:34,680 --> 00:42:37,040
Speaker 4: on groc and AI and SpaceX Ai. But there's a

870
00:42:37,080 --> 00:42:39,400
Speaker 4: lot to talk from governments around the world at the

871
00:42:39,440 --> 00:42:42,680
Speaker 4: moment about adopting AI. Many countries still having delivered on

872
00:42:42,760 --> 00:42:45,719
Speaker 4: that adoption. That's according to open AI's head of Countries

873
00:42:46,000 --> 00:42:48,440
Speaker 4: and the former UK Chancellor of the Exchequer, George O's one.

874
00:42:48,800 --> 00:42:51,800
Speaker 4: He sat down with bloombg Tech Europe's Tom McKenzie form

875
00:42:52,000 --> 00:42:53,520
Speaker 4: the Founders Forum in the UK.

876
00:42:54,640 --> 00:42:56,719
Speaker 16: I think you are saying what is true is that

877
00:42:56,880 --> 00:43:00,840
Speaker 16: many governments having yet really good delivered on the adoption.

878
00:43:00,960 --> 00:43:04,360
Speaker 16: They've they've talked about it, they've got ambitions around it,

879
00:43:05,320 --> 00:43:07,920
Speaker 16: but they're still in the process of delivering.

880
00:43:08,000 --> 00:43:08,120
Speaker 3: Now.

881
00:43:08,360 --> 00:43:10,680
Speaker 16: I know I've been in government. Things take a while.

882
00:43:11,200 --> 00:43:13,520
Speaker 16: But the governments, I think the do adopt more quickly

883
00:43:13,840 --> 00:43:16,239
Speaker 16: will be the big winners. They'll be the winners in

884
00:43:16,280 --> 00:43:19,719
Speaker 16: their national economy, winners in the quality of their public services,

885
00:43:19,800 --> 00:43:22,600
Speaker 16: and winners in potentially in like where their country is

886
00:43:22,640 --> 00:43:23,200
Speaker 16: going to be over the.

887
00:43:23,239 --> 00:43:25,600
Speaker 2: Next centric coming up.

888
00:43:25,719 --> 00:43:30,000
Speaker 3: Many things about the SpaceX IPO have been unusual. We're

889
00:43:30,000 --> 00:43:32,879
Speaker 3: going to talk through the mechanisms of this public market

890
00:43:33,000 --> 00:43:37,239
Speaker 3: launch next ready for lift off, et cetera, et cetera.

891
00:43:37,360 --> 00:43:48,440
Speaker 3: This is Bloomberg Tech breaking news crossing the terminals. SpaceX

892
00:43:48,560 --> 00:43:51,240
Speaker 3: preparing to sell seventy five billion dollars worth of shares,

893
00:43:51,680 --> 00:43:55,239
Speaker 3: at least a five billion dollar dollar order coming from Blackrock.

894
00:43:55,400 --> 00:43:58,960
Speaker 3: That's according to the Wall Street Journals siding sources. Bloomberg

895
00:43:59,000 --> 00:44:02,080
Speaker 3: had reported right that there were several institutions that had

896
00:44:02,160 --> 00:44:05,279
Speaker 3: placed orders for ten billion dollars worth of shares. The

897
00:44:05,320 --> 00:44:08,080
Speaker 3: allocation will get worked out in the next twenty.

898
00:44:07,920 --> 00:44:09,800
Speaker 2: Four hours through to tomorrow morning.

899
00:44:10,640 --> 00:44:14,640
Speaker 3: Pre trade for black Rock, according to the journal, at

900
00:44:14,719 --> 00:44:15,800
Speaker 3: least five billion.

901
00:44:16,040 --> 00:44:17,399
Speaker 2: Maybe it goes up. We'll see.

902
00:44:17,680 --> 00:44:20,799
Speaker 4: There are some big orders coming from institutional but also

903
00:44:20,840 --> 00:44:24,959
Speaker 4: from retail ed and that is today's big number, more.

904
00:44:24,920 --> 00:44:26,160
Speaker 5: Than seventy billion dollars.

905
00:44:26,520 --> 00:44:30,920
Speaker 4: Retail orders for SpaceX's IPO have actually topped seventy billion,

906
00:44:30,960 --> 00:44:31,800
Speaker 4: according to sources.

907
00:44:31,840 --> 00:44:33,839
Speaker 5: And while individual investors are expected.

908
00:44:33,480 --> 00:44:35,320
Speaker 4: To be allocated well at least twenty percent of the

909
00:44:35,360 --> 00:44:38,520
Speaker 4: available shares at a seventy five billion dollar IPO size,

910
00:44:38,800 --> 00:44:40,960
Speaker 4: many are going to be left unfilled.

911
00:44:41,400 --> 00:44:44,040
Speaker 5: That's just one of the rather unusual.

912
00:44:43,680 --> 00:44:46,759
Speaker 4: Things about this listing, joining us to discuss the IPO mechanics, the.

913
00:44:46,760 --> 00:44:48,080
Speaker 5: Market impact, the thesis.

914
00:44:48,120 --> 00:44:50,279
Speaker 4: Brian White and In, director and co head of Tech

915
00:44:50,320 --> 00:44:52,480
Speaker 4: Investment Banking ever at PYPERSANDLA. You're not one of the

916
00:44:52,520 --> 00:44:54,360
Speaker 4: banks working on the listening, which frees us up to

917
00:44:54,440 --> 00:44:56,560
Speaker 4: discuss things at length with you. Brian, and I'm so

918
00:44:56,840 --> 00:44:59,960
Speaker 4: fascinated by some of the technicalities because you've put in

919
00:45:00,040 --> 00:45:00,520
Speaker 4: in your notes.

920
00:45:00,520 --> 00:45:02,120
Speaker 5: Look, this is a very small float.

921
00:45:02,280 --> 00:45:06,040
Speaker 4: Seventy five billion dollars is enormous and record ibo but

922
00:45:06,200 --> 00:45:09,160
Speaker 4: compared to the valuation of the company, very limited amount

923
00:45:09,239 --> 00:45:11,680
Speaker 4: of how many stock we get access to Is that

924
00:45:11,680 --> 00:45:12,120
Speaker 4: an issue?

925
00:45:13,239 --> 00:45:13,680
Speaker 10: Well, it is.

926
00:45:13,840 --> 00:45:17,280
Speaker 17: It's about four percent of the float, and there's overriding demand.

927
00:45:17,360 --> 00:45:20,640
Speaker 17: You're seeing demand from retail and institutional as evidenced by

928
00:45:20,680 --> 00:45:24,400
Speaker 17: the black Rock order right there. But over time, hopefully

929
00:45:24,440 --> 00:45:26,839
Speaker 17: they will continue to sell more and more. But right

930
00:45:26,920 --> 00:45:29,440
Speaker 17: now it looks like the demand is quite high and

931
00:45:29,520 --> 00:45:31,839
Speaker 17: they could probably actually increase the amount that they want

932
00:45:31,880 --> 00:45:34,040
Speaker 17: to raise, and I'm sure that that's something that the

933
00:45:34,200 --> 00:45:35,919
Speaker 17: underwriters are thinking about as we speak.

934
00:45:36,320 --> 00:45:38,759
Speaker 3: Ryan, they did the unusual thing and set out a

935
00:45:38,840 --> 00:45:41,640
Speaker 3: price pre road show one thirty five. How do you

936
00:45:41,719 --> 00:45:46,640
Speaker 3: think the bankers, the potential investors and everyone else responded

937
00:45:46,680 --> 00:45:47,760
Speaker 3: to that behind the scenes.

938
00:45:49,080 --> 00:45:50,879
Speaker 17: Well, first, what they wanted to do is to back

939
00:45:50,960 --> 00:45:53,640
Speaker 17: into what they believe is an appropriate valuation, and that's

940
00:45:53,680 --> 00:45:57,080
Speaker 17: evaluation based on all the facets of the SpaceX business.

941
00:45:57,520 --> 00:45:57,960
Speaker 2: Number two.

942
00:45:58,360 --> 00:46:01,400
Speaker 17: SpaceX is unique and led by probably one of the

943
00:46:01,520 --> 00:46:04,560
Speaker 17: best entrepreneurs of all time in Elon Musk, and there

944
00:46:04,640 --> 00:46:07,560
Speaker 17: is tremendous demand for it. And instead of the normal

945
00:46:07,680 --> 00:46:11,080
Speaker 17: mechanism where you're trying to determine how to price based

946
00:46:11,120 --> 00:46:13,280
Speaker 17: on where you think demand is and what the market

947
00:46:13,360 --> 00:46:15,880
Speaker 17: value is at, they've determined the price from the outset.

948
00:46:16,200 --> 00:46:18,839
Speaker 17: What that's doing is putting an artificial floor on where

949
00:46:18,880 --> 00:46:21,120
Speaker 17: it's going to be. But what it also may allow

950
00:46:21,239 --> 00:46:24,760
Speaker 17: for is a very very large pop for retail investors tomorrow,

951
00:46:25,000 --> 00:46:26,400
Speaker 17: and I think that that's going to be what we

952
00:46:26,520 --> 00:46:28,560
Speaker 17: want to watch, just how much it pops at the

953
00:46:28,640 --> 00:46:31,960
Speaker 17: open and where it sustains itself, because much of retail

954
00:46:32,000 --> 00:46:34,400
Speaker 17: may see such a large pop that what they decide

955
00:46:34,440 --> 00:46:36,800
Speaker 17: to do is to sell down throughout the day tomorrow.

956
00:46:37,000 --> 00:46:39,640
Speaker 4: But run aren't the limitations as to how much retail

957
00:46:39,800 --> 00:46:42,440
Speaker 4: is allowed to sell out or at least some of

958
00:46:42,520 --> 00:46:45,279
Speaker 4: the brokers that they buy through will punish them if

959
00:46:45,320 --> 00:46:46,359
Speaker 4: they sell on the first day.

960
00:46:47,360 --> 00:46:51,360
Speaker 17: Well, we've never seen a IPO with this much retail allocation,

961
00:46:51,840 --> 00:46:54,440
Speaker 17: and so twenty percent at least is going to retail,

962
00:46:54,719 --> 00:46:57,080
Speaker 17: and the retail is going to be able to have

963
00:46:57,280 --> 00:47:00,160
Speaker 17: access to sell. Now what you may be referring too,

964
00:47:00,360 --> 00:47:03,080
Speaker 17: some of them may have some issues with future IPOs,

965
00:47:03,320 --> 00:47:05,719
Speaker 17: but most of the retail that's in this IPO is

966
00:47:05,800 --> 00:47:09,240
Speaker 17: probably not necessarily planning for much more IPO investments.

967
00:47:09,320 --> 00:47:10,560
Speaker 4: You really think they're not going to be in an

968
00:47:10,640 --> 00:47:14,320
Speaker 4: anthropic or open AI if they want to buy into Xai, Well.

969
00:47:14,200 --> 00:47:16,120
Speaker 17: They would like to be, but it's unclear if open

970
00:47:16,160 --> 00:47:19,239
Speaker 17: AI and Anthropic will actually follow a similar mechanism. My

971
00:47:19,360 --> 00:47:22,479
Speaker 17: instinct is they may not, but we shall see, because

972
00:47:22,520 --> 00:47:24,440
Speaker 17: this is setting a new precedent tomorrow.

973
00:47:24,360 --> 00:47:28,160
Speaker 3: Brian, we reported yesterday that pre float SpaceX has IG

974
00:47:28,360 --> 00:47:32,440
Speaker 3: rating from the three main agencies. To you, how much

975
00:47:32,480 --> 00:47:34,399
Speaker 3: of a signal of that is that they will very

976
00:47:34,520 --> 00:47:37,799
Speaker 3: quickly go back to the markets and raise more money

977
00:47:38,440 --> 00:47:40,080
Speaker 3: through any mechanism available.

978
00:47:41,400 --> 00:47:43,239
Speaker 17: I mean, I think it's a tremendous signal. I think

979
00:47:43,239 --> 00:47:45,520
Speaker 17: that they are going look at the burn that they

980
00:47:45,600 --> 00:47:48,440
Speaker 17: disclosed in the prospectus, look at the ambitions that they have,

981
00:47:48,640 --> 00:47:51,239
Speaker 17: particularly with the XAI part of the business, and with

982
00:47:51,360 --> 00:47:53,640
Speaker 17: their vision about where they want to see their AI

983
00:47:53,800 --> 00:47:56,560
Speaker 17: business and their space business over time. This is a

984
00:47:56,680 --> 00:47:59,560
Speaker 17: business that will continue to consume massive amounts of capital,

985
00:48:00,120 --> 00:48:02,680
Speaker 17: will continue to need to access the public markets to

986
00:48:02,800 --> 00:48:03,600
Speaker 17: raise that capital.

987
00:48:03,800 --> 00:48:06,400
Speaker 3: You didn't get a brief on this. We're being transparent

988
00:48:06,440 --> 00:48:08,120
Speaker 3: about that. But is there a way that Pipe of

989
00:48:08,200 --> 00:48:09,839
Speaker 3: Sandler can play this IPO event.

990
00:48:11,360 --> 00:48:13,200
Speaker 17: Well, what we're trying to do is just continue to

991
00:48:13,320 --> 00:48:17,000
Speaker 17: advise our clients about where defense technology is heading. You know,

992
00:48:17,120 --> 00:48:20,600
Speaker 17: the exciting things that is happening in space, the future

993
00:48:20,680 --> 00:48:24,560
Speaker 17: of you know, defense, Those are the areas that we're

994
00:48:24,560 --> 00:48:26,600
Speaker 17: spending a lot of our time in terms of the

995
00:48:26,719 --> 00:48:29,960
Speaker 17: future opportunities around SpaceX. It's something that you know, our

996
00:48:30,040 --> 00:48:33,279
Speaker 17: team is very fixated on, but we're not participating in

997
00:48:33,360 --> 00:48:34,240
Speaker 17: this IPO tomorrow.

998
00:48:34,480 --> 00:48:37,120
Speaker 3: Brian White, co head of Technology Investment Banking Pipe cent

999
00:48:37,200 --> 00:48:40,960
Speaker 3: to thank you very much, really appreciate it. Okay, you know,

1000
00:48:41,080 --> 00:48:43,920
Speaker 3: this is it the final sprint and this is it

1001
00:48:44,080 --> 00:48:45,399
Speaker 3: for this edition of Bloomberg Tech.

1002
00:48:45,840 --> 00:48:46,360
Speaker 2: Are you ready?

1003
00:48:47,000 --> 00:48:48,000
Speaker 5: I'm feeling ready.

1004
00:48:48,480 --> 00:48:49,399
Speaker 2: Yeah, are you ready?

1005
00:48:49,480 --> 00:48:51,560
Speaker 4: Because you've got a long day ahead of you, Ed Ludlow,

1006
00:48:51,600 --> 00:48:55,800
Speaker 4: there's potentially coverage of these things priced there's coverage throughout

1007
00:48:55,920 --> 00:48:58,239
Speaker 4: the trading day here on Bloomberg after the trading day.

1008
00:48:58,200 --> 00:48:59,839
Speaker 3: And of course we'll think me to take away from

1009
00:48:59,840 --> 00:49:02,160
Speaker 3: the game. It's all premeditated. You kind of know what's

1010
00:49:02,200 --> 00:49:04,600
Speaker 3: going to happen. Still lots to review on the pod.

1011
00:49:04,760 --> 00:49:06,480
Speaker 4: There is Get That podcast you can find on the

1012
00:49:06,560 --> 00:49:09,040
Speaker 4: terminal as well as online on Apple, Spotify, and iHeart.

1013
00:49:08,800 --> 00:49:10,879
Speaker 5: I have ed here for another day. In New York City,

1014
00:49:11,040 --> 00:49:11,920
Speaker 5: there's a bluembog Tech