WEBVTT - CoreWeave Inks $14 Billion Meta Deal, Highlighting AI Demand 

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<v Speaker 2>Let's go now to talk about tech. Really focus in

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<v Speaker 2>on core Weave. Corewave is one of those neocloud companies.

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<v Speaker 2>The shares are a big time today a fourteen percent

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<v Speaker 2>after it has secured a fourteen billion dollar deal with Meta.

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<v Speaker 2>Let's bring in on rog Rana. He has Bloomberg Intelligence

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<v Speaker 2>technology analyst on more of this deal.

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<v Speaker 3>So on rag.

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<v Speaker 2>This is a deal that will provide Meta access to

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<v Speaker 2>Invidia's latest GB three hundred systems. What is that? Are

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<v Speaker 2>those in video's most advanced chips or systems run by

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<v Speaker 2>in Video's most advanced chips.

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<v Speaker 4>Yeah, so you know corviv is basically is is a

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<v Speaker 4>company that takes all these GPUs and rents it out

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<v Speaker 4>to people for whatever they want to use. So they

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<v Speaker 4>do get the dips on the most latest equipment that

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<v Speaker 4>is sold by Nvidia, and then the clients can and

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<v Speaker 4>now I did show that Meta is buying directly from

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<v Speaker 4>Nvidia as well. But in this case, they're just going

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<v Speaker 4>and outsourcing the entire infrastructure for an amount of fourteen

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<v Speaker 4>billion dollars, which you know, may be a very small

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<v Speaker 4>piece of it has overall capex for AI infrastructure, but

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<v Speaker 4>it's still a start that they are now leasing capacity

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<v Speaker 4>rather than building it in house.

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<v Speaker 5>So how should we think about this in the overall

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<v Speaker 5>growth of AI. I mean, this feels like incremental spending

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<v Speaker 5>to me, but I'm not sure if it's just shifted

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<v Speaker 5>somewhere else. Happy when you see announcements like this from

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<v Speaker 5>Core we've had, do you kind of welded in or

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<v Speaker 5>you know, kind of weave it into the larger picture.

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<v Speaker 4>So every company, every hyperscale cloud provider right now, you know,

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<v Speaker 4>whether that's Microsoft or whether that's Meta or any other

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<v Speaker 4>company that's out there that is spending a lot on

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<v Speaker 4>capital expenditures on expanding their AI capabilities. They have two options.

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<v Speaker 4>They can either build it themselves and they can go

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<v Speaker 4>to a specialized spended like Core Weave and rent it

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<v Speaker 4>from them or lease it from them. Microsoft has said

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<v Speaker 4>that they are really into expanding their leasing capacity or

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<v Speaker 4>capabilities down the road, which is good for companies like

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<v Speaker 4>core we've their job is to build this only this

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<v Speaker 4>infrastructure and rent it out to whoever wants it.

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<v Speaker 2>Okay, okay, got it. My other question when it comes

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<v Speaker 2>to core Weave and you know all this, all these

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<v Speaker 2>deals it's making with these cloud providers, is that they're

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<v Speaker 2>also raising a lot of money. Core Weave is tapping

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<v Speaker 2>the debt market, or there's there's there's expectations that it

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<v Speaker 2>may tap the debt market. Is there going to be

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<v Speaker 2>enough demand to meet, you know, what, what it wants

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<v Speaker 2>to sell.

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<v Speaker 4>So here is the case when it comes to a

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<v Speaker 4>customer like Microsoft or Meta, which all of us know

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<v Speaker 4>have a lot of cash flow come in. If they

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<v Speaker 4>have signed let's say a five year deal, seventy eight deal,

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<v Speaker 4>you kind of know that the money is good. It's

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<v Speaker 4>much easier to raise capital then then let's say from

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<v Speaker 4>a brand new company that may not have that amount

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<v Speaker 4>of cash flow coming in. So I would say, I mean,

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<v Speaker 4>you know, one should not be concerned that Meta is

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<v Speaker 4>not good for that money. I don't think that's going

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<v Speaker 4>to be you know a concern for anybody who's giving

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<v Speaker 4>them the bonds of their debt for.

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<v Speaker 5>That Yeah, Meta raised twenty nine billion dollars in a

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<v Speaker 5>financing package for a massive data center in Louisiana. Last week,

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<v Speaker 5>Oracle raised eighteen billion dollars in bonds as it builds

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<v Speaker 5>infrastructure for open AI. So the markets are open for

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<v Speaker 5>this kind of trade.

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<v Speaker 2>It seems like, yeah, apparently they are. And the other

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<v Speaker 2>thing with Corewave, of course, is that it has an

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<v Speaker 2>increased commitment from open AI. It's got this big customer

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<v Speaker 2>in Microsoft I think makes up seventy one percent of

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<v Speaker 2>its revenue. How diversified is Coreweave's customer base right now?

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<v Speaker 4>See when you see the core piece's first biggest customer

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<v Speaker 4>was Microsoft. Microsoft didn't have the capacity to run a

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<v Speaker 4>lot of there I workloads, so they went to core beef. So,

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<v Speaker 4>you know, frankly speaking, I understand that seventy percent. But

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<v Speaker 4>you know, this is an area where everybody needs capacity.

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<v Speaker 4>So you know, for us it is an issue, but

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<v Speaker 4>it's not like, you know, it's not a deal breaker

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<v Speaker 4>when it comes to the quality or even you look

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<v Speaker 4>at the fundamentals of somebody like a corevief. Now what's

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<v Speaker 4>happening is other cloud providers are going to them and say,

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<v Speaker 4>whatever access capacity that you have, you know we will

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<v Speaker 4>take that as well.

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<v Speaker 5>Are there other companies that are going to come public here,

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<v Speaker 5>like core weave, these neo cloud companies.

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<v Speaker 4>Yeah, I mean, I'm sure a lot of them are

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<v Speaker 4>gearing up for it. Core Weef is probably the biggest

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<v Speaker 4>one that's out there. You know, we saw Microsoft signing

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<v Speaker 4>another deal recently with the Nebius, I believe, and you

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<v Speaker 4>know that was a very similar arrangement where Microsoft is

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<v Speaker 4>going to them and saying, Okay, for the next several years,

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<v Speaker 4>this is the kind of money that I are the

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<v Speaker 4>capacity that I want from you, and this is how

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<v Speaker 4>I'm going to give you the money to fund it.

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<v Speaker 2>Basically, So an rag when you look at these kinds

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<v Speaker 2>of deals and you know, fourteen billion dollars here, ten

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<v Speaker 2>billion dollars somewhere else, what gets your attention in terms of,

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<v Speaker 2>you know, I need to look into this a little

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<v Speaker 2>bit more versus this is just one in a long

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<v Speaker 2>string of deals that these companies will continue to sign.

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<v Speaker 4>The biggest thing you want to think about is what

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<v Speaker 4>are these companies doing these deals for. So, say, somebody

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<v Speaker 4>like a Microsoft, are they giving a lot of their

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<v Speaker 4>inference workloads or the outcome of chart GPT running on

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<v Speaker 4>Microsoft's cloud workloads or are they giving model training workloads

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<v Speaker 4>because there is a there is a there is a

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<v Speaker 4>narrative out there in the market that the long tail

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<v Speaker 4>of the AI revenue comes from people using apps, which

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<v Speaker 4>we you know, think of this as infrince revenue compared

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<v Speaker 4>to the model training revenue, which make ups and down

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<v Speaker 4>depending on what kind of technological advancement we see in

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<v Speaker 4>you know, software development.

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<v Speaker 5>Stay with us more from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intel Leigion's podcast. Catch us

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<v Speaker 5>Looking at Exxon Mobil, say they're cutting about two thousand

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<v Speaker 5>people from their headcount, the stocks off about one percent.

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<v Speaker 5>This is a company that has almost sixty one thousand employees,

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<v Speaker 5>so you know, a meaningful number there, and we've seen

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<v Speaker 5>job cuts around other energy companies as well. When you

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<v Speaker 5>get a sense of what's happening there, Vince Piazza joins

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<v Speaker 5>us here. Vince's senior energy analysts for Bloomberg Intelligence. Vince

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<v Speaker 5>talk to us about what this news from Exon Mobile means.

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<v Speaker 5>How material is it to you and to investors.

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<v Speaker 3>Well, I think it's part of managing through the cycle.

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<v Speaker 3>Right in prior cycles the sector was exposed to more

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<v Speaker 3>extreme volatility, higher highs, lower lows. The industry is trying

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<v Speaker 3>to manage through what seems to be a rather clouded

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<v Speaker 3>backdrop right now. So we're sitting here and you got

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<v Speaker 3>neck gas somewhere around three point thirty Henry Hubb. You

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<v Speaker 3>got WTI in the low sixties. You have OPEC bringing

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<v Speaker 3>back on capacity and maybe even speeding up that the

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<v Speaker 3>capacity ads. You have a more clouded, broader economic backdrop

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<v Speaker 3>across the globe. You have geopolitical issues, so lots of uncertainty,

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<v Speaker 3>and not only Exon. Exon's probably going to cut somewhere

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<v Speaker 3>about two three four percent of its global workforce. It's

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<v Speaker 3>Canadian affiliate a much more substantial cut, roughly about twenty

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<v Speaker 3>percent over the next two years or so. You're seeing

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<v Speaker 3>it at Conico Phillips, You're seeing it at Chevron, even BP,

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<v Speaker 3>the major European energy conglomerate. You're seeing it across the

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<v Speaker 3>board and so Paul, as you know, when you're not

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<v Speaker 3>growing revenue, right, You're not getting the revenue increase on price,

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<v Speaker 3>you're not growing production because your investor base does not

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<v Speaker 3>want to see that production growth. You are looking at

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<v Speaker 3>very steady revenue, maybe even declining revenue. You have to

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<v Speaker 3>manage that netback from the cost perspective, and you have

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<v Speaker 3>to support that cash flow stream, and so you're doing

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<v Speaker 3>it via these cost cuts over a number of years too,

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<v Speaker 3>maybe even three years, to sort of bring that cost

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<v Speaker 3>structure in line with a new reality of uncertainty in

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<v Speaker 3>the marketplace, to reduce that volatility.

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<v Speaker 2>Well, there's cost cuts, and then there's Exon mobiles cost cuts.

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<v Speaker 2>Since twenty nineteen, it's trimmed thirteen and a half billion

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<v Speaker 2>dollars in annual cost That is more than all the

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<v Speaker 2>other big oil companies combined. How much more room is

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<v Speaker 2>there for Exon to slash expenses.

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<v Speaker 3>Well, it bought Pioneer, so it has a relatively sizable workforce.

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<v Speaker 3>In general, it doesn't necessarily mean that those cuts are

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<v Speaker 3>going to come there, but there are ways you cut

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<v Speaker 3>you gain efficiency. In this technological era where we have

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<v Speaker 3>advancements across the energy value chain, you will consistently and

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<v Speaker 3>continually seek out ways to get efficiency, to bring down

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<v Speaker 3>that cost structure and to bring unit costs in line

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<v Speaker 3>with a very anemic outlook for global energy prices in general,

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<v Speaker 3>and also a very clouded outlook for the global economy too.

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<v Speaker 5>So Vince kind of looking out, you know, one to

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<v Speaker 5>two years, what is the view of the companies you

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<v Speaker 5>talk to about energy prices, oil and gas. Is it

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<v Speaker 5>still going to be a challenge market here?

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<v Speaker 3>It looks like it. It looks like it's going to

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<v Speaker 3>be a very challenge market, especially for the WTI side,

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<v Speaker 3>for the oil side of the equation. On natural gas, Paul,

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<v Speaker 3>I know you and I have talked about this numerous times.

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<v Speaker 3>You have a contructural growth trajectory for natural gas here

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<v Speaker 3>in the US via export LNG, whether it's seaborne energy

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<v Speaker 3>or whether it's pipeline gas into Mexico to help fuel

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<v Speaker 3>their economy. As well. You have the AI build out,

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<v Speaker 3>which will be a which will digest significant amounts of energy,

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<v Speaker 3>and that's beneficial for natural gas. But on the oil side,

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<v Speaker 3>you have very anemic growth. You have your transportation fuels

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<v Speaker 3>having to compete with alternative and renewable fuels, So there's

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<v Speaker 3>a greater competition there. The growth trajectory and the outlook

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<v Speaker 3>for the demand side on the liquids fuels seems to

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<v Speaker 3>be very clouded and seems to be somewhat less secure

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<v Speaker 3>relative to the natural gas side of the house. And

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<v Speaker 3>that's why we much more favorably disposed to Henry Hub

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<v Speaker 3>and natural gas relative to WTI, Brent and the various

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<v Speaker 3>liquid fuels.

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<v Speaker 2>And before we let you go, Vince, Opek Plus will

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<v Speaker 2>be holding a meeting this weekend on Sunday, and there's

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<v Speaker 2>talk that they will increase or fast tracked the return

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<v Speaker 2>of halted production. There's a lot of concern that China,

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<v Speaker 2>and it's a build up of its strategic oil reserve,

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<v Speaker 2>might be distorting some numbers or distorting the demand picture.

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<v Speaker 3>What's your take, So, in general, demand across the globe

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<v Speaker 3>seems to be less than robust because of well, you

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<v Speaker 3>have a global economy that's uncertain you have PARAFT policy

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<v Speaker 3>that has injected more volatility and uncertainty across the globe.

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<v Speaker 3>That so demand concerns are an issue. The supply side, well,

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<v Speaker 3>we know where the supply is and opick is reasserting

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<v Speaker 3>its market share dominance in the US. We don't want

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<v Speaker 3>that production growth, and so it's really coming from the

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<v Speaker 3>OPEC side of the house, and the demand side of

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<v Speaker 3>the house is going to be somewhat in NEEMA. From here,

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<v Speaker 3>stay with us.

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<v Speaker 5>More from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 1>weekdays at ten am Easterned on Apple, Cockplay and Android

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<v Speaker 1>Auto with the Bloomberg Business App. Listen on demand wherever

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<v Speaker 5>Spotify. You know, I'm not a Spotify user, so I

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<v Speaker 5>don't pay that much attention to it.

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<v Speaker 3>I should.

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<v Speaker 5>One hundred and forty four billion dollars in market cap.

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<v Speaker 5>The stock's up fifty percent this year to date. Just extraordinary.

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<v Speaker 5>The Spotify founder Daniel Eck stepping down as CEO, stocks

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<v Speaker 5>off about five percent on the news. He's forty two

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<v Speaker 5>years old. I mean, I don't know.

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<v Speaker 2>It's got a lifetop ahead of Oh.

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<v Speaker 5>He's got ten billion dollars according to Rich, go is

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<v Speaker 5>his net worth? Keith wrong Andathan joins as she's the

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<v Speaker 5>US media analyst for Bloomberg Intelligence follows this company. H

0:12:49.559 --> 0:12:51.480
<v Speaker 5>Keith to talk to us about Spotify, talk to us

0:12:51.480 --> 0:12:53.800
<v Speaker 5>about Daniel Eck. What's going on here today?

0:12:55.080 --> 0:12:55.640
<v Speaker 3>Yeah?

0:12:55.640 --> 0:12:57.240
<v Speaker 6>Absolutely, pause, But this is you know, one of your

0:12:57.240 --> 0:12:59.920
<v Speaker 6>classic cases of the founder finally kind of establishing a

0:13:00.160 --> 0:13:03.120
<v Speaker 6>really good transition plan and handing it off to his

0:13:03.440 --> 0:13:07.319
<v Speaker 6>you know, two lieutenants here. So we're having a co

0:13:07.520 --> 0:13:10.000
<v Speaker 6>CEO structure. And really, I mean the first when I

0:13:10.040 --> 0:13:11.840
<v Speaker 6>heard this, I mean, this really kind of harkens back

0:13:11.880 --> 0:13:15.800
<v Speaker 6>to what Reed Hastings did with Netflix, you know, kind

0:13:15.840 --> 0:13:18.600
<v Speaker 6>of left right at the peak, right when the companies,

0:13:19.000 --> 0:13:21.720
<v Speaker 6>you know, everything was kind of you know, all cylinders

0:13:21.760 --> 0:13:24.679
<v Speaker 6>were firing away and left it to Greg Peters and

0:13:24.679 --> 0:13:27.640
<v Speaker 6>and Ted Surrandos to kind of take charge. And it

0:13:27.720 --> 0:13:30.880
<v Speaker 6>seems like Spotify is in a very similar position. So

0:13:30.920 --> 0:13:32.880
<v Speaker 6>they had a couple of things that had to get

0:13:32.880 --> 0:13:35.599
<v Speaker 6>done this year, which was new contracts with all of

0:13:35.640 --> 0:13:38.560
<v Speaker 6>the music labels. It looks like Daniel Eck has you know,

0:13:39.280 --> 0:13:42.000
<v Speaker 6>accomplished all of that, and I think he's really kind

0:13:42.000 --> 0:13:44.560
<v Speaker 6>of left the company in a good position for for

0:13:44.600 --> 0:13:47.680
<v Speaker 6>its next phase of growth. And this is really you know,

0:13:47.760 --> 0:13:50.679
<v Speaker 6>a huge story in the Internet space, the possibility to

0:13:50.760 --> 0:13:54.120
<v Speaker 6>get to a billion users very very quickly. They already

0:13:54.120 --> 0:13:55.480
<v Speaker 6>have about seven hundred million.

0:13:55.480 --> 0:13:58.280
<v Speaker 2>Okay, so there are almost three quarters of the way there.

0:13:58.960 --> 0:14:01.760
<v Speaker 2>He's leaving on top as George Costanzo wood in Seinfeld.

0:14:02.080 --> 0:14:04.960
<v Speaker 2>But my question, Gita, is you talk about the new

0:14:05.000 --> 0:14:07.920
<v Speaker 2>phase of growth, how much of that will rely on

0:14:08.080 --> 0:14:11.520
<v Speaker 2>continued price increases. Unlike Paul, I do subscribe to Spotify,

0:14:11.640 --> 0:14:14.720
<v Speaker 2>and it's alarming how frequently the price changes come.

0:14:15.920 --> 0:14:18.800
<v Speaker 6>Yeah, and it is going to keep coming, Scarret, There's

0:14:18.840 --> 0:14:21.440
<v Speaker 6>absolutely no doubt about it. I mean, this whole story

0:14:21.600 --> 0:14:24.800
<v Speaker 6>is kind of predicated on those price increases. Remember though,

0:14:24.840 --> 0:14:27.880
<v Speaker 6>that they never took up prices for the first ten

0:14:27.960 --> 0:14:31.080
<v Speaker 6>to twelve years, and then it started coming fast and furious.

0:14:31.160 --> 0:14:31.280
<v Speaker 5>Right.

0:14:31.320 --> 0:14:33.400
<v Speaker 6>We had one price increase in twenty twenty three, another

0:14:33.400 --> 0:14:35.360
<v Speaker 6>in twenty twenty four, We're going to have probably another

0:14:35.360 --> 0:14:37.400
<v Speaker 6>one in twenty twenty six. But if you kind of

0:14:37.480 --> 0:14:39.720
<v Speaker 6>look at all of the streaming services out there, you know,

0:14:39.760 --> 0:14:42.840
<v Speaker 6>Spotify is, of course the leader in audio streaming. They

0:14:42.880 --> 0:14:45.160
<v Speaker 6>have a thirty five percent global market share in terms

0:14:45.160 --> 0:14:47.720
<v Speaker 6>of subscribers. You kind of look at their price, let's

0:14:47.720 --> 0:14:50.920
<v Speaker 6>say in the US, it's twelve dollars for an individual plan.

0:14:51.240 --> 0:14:54.800
<v Speaker 6>You compare that to let's say the video leader Netflix. Again,

0:14:54.840 --> 0:14:56.640
<v Speaker 6>I go back to the Netflix example, they are priced

0:14:56.640 --> 0:14:59.720
<v Speaker 6>at eighteen dollars, so I think Spotify still has quite

0:14:59.720 --> 0:15:01.800
<v Speaker 6>a lot runway when you kind of compare it to

0:15:01.960 --> 0:15:04.000
<v Speaker 6>the rest of the field. And the other thing that

0:15:04.040 --> 0:15:05.640
<v Speaker 6>I like to point out here is when you're kind

0:15:05.640 --> 0:15:08.280
<v Speaker 6>of subscribing to an audio service, it's typically only one

0:15:08.360 --> 0:15:10.720
<v Speaker 6>service that you're subscribing to as opposed to a video service.

0:15:10.960 --> 0:15:13.160
<v Speaker 6>So I think people really like their you know, if

0:15:13.160 --> 0:15:15.400
<v Speaker 6>they like Spotify, they're absolutely going to hold on to

0:15:15.480 --> 0:15:19.040
<v Speaker 6>it at any cost. And the other thing is, you know,

0:15:19.040 --> 0:15:22.840
<v Speaker 6>Spotify is adding new features all the time, so they

0:15:22.840 --> 0:15:27.080
<v Speaker 6>are like really getting down on you know, monetizing more

0:15:27.120 --> 0:15:30.400
<v Speaker 6>and more, but it's not they are innovating also constantly,

0:15:30.440 --> 0:15:33.600
<v Speaker 6>so I think I think people don't mind paying for it.

0:15:34.000 --> 0:15:36.520
<v Speaker 5>What's the biggest challenge to them on the cost side

0:15:36.520 --> 0:15:37.239
<v Speaker 5>of the business.

0:15:37.040 --> 0:15:40.080
<v Speaker 3>KEITHA music royalty is all.

0:15:40.200 --> 0:15:42.960
<v Speaker 6>I mean that, you know, for every dollar that they make,

0:15:43.120 --> 0:15:46.600
<v Speaker 6>they're paying out about seventy cents in terms of musical

0:15:46.760 --> 0:15:49.720
<v Speaker 6>royalties back to the labels. So it is definitely a

0:15:49.960 --> 0:15:52.880
<v Speaker 6>very you know, from that perspective, the model is hard.

0:15:53.200 --> 0:15:56.080
<v Speaker 6>But one of the things that they've done very well

0:15:56.440 --> 0:15:58.400
<v Speaker 6>is you know, they've obviously renegotiated a lot of the

0:15:58.440 --> 0:16:01.080
<v Speaker 6>deals kind of try to prove investors with a lot

0:16:01.120 --> 0:16:05.040
<v Speaker 6>more visibility into the cost space. But more importantly for them,

0:16:05.280 --> 0:16:08.440
<v Speaker 6>they're really trying to go away from you know, licensed

0:16:08.480 --> 0:16:11.720
<v Speaker 6>content to more owned content, so kind of going into

0:16:12.000 --> 0:16:14.960
<v Speaker 6>you know, podcasts, going into more non music content, where

0:16:15.000 --> 0:16:17.400
<v Speaker 6>again they have a lot more leverage, you know, whether

0:16:17.440 --> 0:16:21.480
<v Speaker 6>it's audiobooks, whether it's video podcasts, getting away from you know,

0:16:21.560 --> 0:16:24.160
<v Speaker 6>just being a core music service to more of kind

0:16:24.160 --> 0:16:27.920
<v Speaker 6>of a global kind of an audio service, and they're

0:16:27.960 --> 0:16:29.880
<v Speaker 6>doing that really well, and that's going to help them

0:16:29.920 --> 0:16:34.040
<v Speaker 6>with their margin expansion story as they get better unit economics.

0:16:33.680 --> 0:16:36.360
<v Speaker 2>Right and introducing premium tiers on top of that, you

0:16:36.440 --> 0:16:38.960
<v Speaker 2>have to unlock in order to unlock some of the

0:16:39.080 --> 0:16:41.680
<v Speaker 2>more I don't know, high profile podcasts, you then have

0:16:41.720 --> 0:16:44.840
<v Speaker 2>to pay extra. Keith talk a little bit about AI,

0:16:44.960 --> 0:16:47.880
<v Speaker 2>because I keep reading about how AI generated music is

0:16:47.920 --> 0:16:50.680
<v Speaker 2>a challenge, but in what way and could it actually

0:16:50.680 --> 0:16:53.440
<v Speaker 2>become an opportunity as well for Spotify?

0:16:54.560 --> 0:16:56.680
<v Speaker 6>I think so, I think it is going to become,

0:16:57.320 --> 0:16:59.320
<v Speaker 6>you know, an opportunity as we go. They're already actually

0:16:59.600 --> 0:17:01.800
<v Speaker 6>using you know a lot of AI features when it

0:17:01.800 --> 0:17:05.240
<v Speaker 6>comes to curation, you know, when it comes to music discovery,

0:17:05.320 --> 0:17:09.560
<v Speaker 6>when it comes to providing better features, and they're already

0:17:09.680 --> 0:17:12.520
<v Speaker 6>and you just brought up the super Premium tier and

0:17:12.560 --> 0:17:14.359
<v Speaker 6>a lot of that is actually going to be having

0:17:14.400 --> 0:17:18.080
<v Speaker 6>like an AIDJ type of a feature there, you know,

0:17:18.200 --> 0:17:21.359
<v Speaker 6>for both listeners as well as music creators. So I

0:17:21.359 --> 0:17:23.560
<v Speaker 6>think it is definitely going to be, you know, a

0:17:23.560 --> 0:17:26.320
<v Speaker 6>good opportunity for them to present a much better product.

0:17:26.359 --> 0:17:29.440
<v Speaker 6>I mean, we've already seen AI being used by a

0:17:29.440 --> 0:17:31.280
<v Speaker 6>lot of the other platforms. Again, I go back to

0:17:31.320 --> 0:17:33.760
<v Speaker 6>Netflix because they've done this really well in terms of,

0:17:34.040 --> 0:17:36.800
<v Speaker 6>you know, having a much better algorithm now to serve

0:17:36.880 --> 0:17:39.560
<v Speaker 6>up better content. And I think that's exactly what Spotify

0:17:39.600 --> 0:17:41.360
<v Speaker 6>is doing in terms of its playlists as well.

0:17:41.640 --> 0:17:44.240
<v Speaker 5>CA you thinking about thirty seconds left, where's Apple in

0:17:44.280 --> 0:17:45.760
<v Speaker 5>this audio game?

0:17:47.880 --> 0:17:51.360
<v Speaker 6>So just in terms of subscribers share, Paul, I mean, Spotify,

0:17:51.440 --> 0:17:53.840
<v Speaker 6>as I said, leads with about thirty five percent share

0:17:53.840 --> 0:17:55.919
<v Speaker 6>of the market. Apple is really far behind. They have

0:17:55.920 --> 0:17:59.840
<v Speaker 6>about a ten percent share, so very very hard for

0:17:59.840 --> 0:18:02.280
<v Speaker 6>them to catch up in terms of subscribers.

0:18:02.280 --> 0:18:02.720
<v Speaker 3>At least.

0:18:03.720 --> 0:18:08.439
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