WEBVTT - SpaceX Tender Offer and AMD Takes On Nvidia 0:00:01.560 --> 0:00:05.880 From Mahard where Innovation, Money and power Collie in Silicon 0:00:05.960 --> 0:00:06.880 Vallet NBN. 0:00:07.200 --> 0:00:11.240 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.520 --> 0:00:27.800 I'm Caroline heih and a Bloomberg's Wilde Quarters in New York, 0:00:28.160 --> 0:00:29.800 and I'm Ed Ludlow in San Francisco. 0:00:29.920 --> 0:00:32.199 This is Bloomberg Technology coming up. 0:00:32.240 --> 0:00:35.240 SpaceX targets well one hundred and seventy five billion dollar 0:00:35.360 --> 0:00:39.040 valuation or more as the most valuable US startup, discussed 0:00:39.040 --> 0:00:40.960 as a tender offer of its insiders' shares. 0:00:41.240 --> 0:00:42.680 We'll bring you the details. 0:00:43.080 --> 0:00:45.640 An AMD takes on chip rival when video as the 0:00:45.640 --> 0:00:49.720 company introduces its long awaited line of AI accelerators. We'll 0:00:49.720 --> 0:00:52.920 discuss and I'll bring you my conversation with AMD CEO 0:00:53.120 --> 0:00:54.240 Lisa sou LUs. 0:00:54.280 --> 0:00:57.400 After twenty four hours street of talks on AI rules, 0:00:57.600 --> 0:01:00.720 the EU negotiators remain divided on a plan to adopt 0:01:00.720 --> 0:01:04.160 the most comprehensive regulation for the technology in the Western world. 0:01:04.440 --> 0:01:06.880 We're bringing the latest on the situation out of Brussels, 0:01:06.920 --> 0:01:09.000 but first let scale up to speed with the situation 0:01:09.040 --> 0:01:12.640 on these markets. Because AI exuberance is back. We'll dig 0:01:12.680 --> 0:01:14.920 into the whys why Alphabet's rising on the back of 0:01:14.959 --> 0:01:17.319 the Gemini launched Why AMD of course is rising on 0:01:17.360 --> 0:01:19.800 the back of its AIDA and we see the Nasdaq 0:01:19.880 --> 0:01:21.920 up one and a quarter of a percent, even though 0:01:21.920 --> 0:01:23.880 we see bonds actually sell off in yields pushing up 0:01:23.920 --> 0:01:25.160 just about two basis points. 0:01:25.440 --> 0:01:26.319 Have we baked in. 0:01:26.400 --> 0:01:29.120 Too much of a douvishness around the world when it 0:01:29.120 --> 0:01:32.920 comes to central banks the BOJ perhaps realigning our viewpoints 0:01:32.920 --> 0:01:34.520 on that, and indeed that's why we're seeing the dollar 0:01:34.600 --> 0:01:37.440 falling versus the Japanese YenS. Maybe the BOJ isn't going 0:01:37.480 --> 0:01:40.160 to be as dovish has have been anticipated. Moving on, 0:01:40.360 --> 0:01:42.200 what's happening in the world of the US dollar vers 0:01:42.200 --> 0:01:44.880 there's some other key currencies or assets. I'm looking at 0:01:44.840 --> 0:01:47.240 what's happening in the world of crypto and well Bitcoin 0:01:47.280 --> 0:01:50.480 overall we have seen managing to above that forty two 0:01:50.480 --> 0:01:52.840 thousand out forty three thousand, six hundred and forty eight 0:01:53.000 --> 0:01:55.720 versus a US dollar. We're down by some four tens percent. 0:01:55.880 --> 0:01:57.680 No big shakes in the world of crypto, even though, 0:01:57.680 --> 0:01:59.920 of course we're still reading from the Jamie Diamond comments 0:02:00.160 --> 0:02:03.000 of yesterday ed where he said if he had the control, 0:02:03.120 --> 0:02:05.520 he'd shut it down, But you've got some big thoughts 0:02:05.560 --> 0:02:06.960 on some privately held companies. 0:02:07.440 --> 0:02:10.040 Yeah, we don't often start with a private market piece 0:02:10.080 --> 0:02:11.960 of news, but this is a big piece of news. 0:02:11.960 --> 0:02:15.760 SpaceX doing another tender offer, according to our sources. I 0:02:15.800 --> 0:02:18.680 reported this last night with Jillian Tan and Katie Ruth 0:02:19.080 --> 0:02:21.280 based on the volume of shares that are currently on 0:02:21.320 --> 0:02:23.720 the table, and these are employee shares that are being 0:02:23.760 --> 0:02:27.360 sold to outside investors. It's not SpaceX raising money or 0:02:27.360 --> 0:02:30.400 issuing new equity. The valuation jumps from one hundred and 0:02:30.440 --> 0:02:33.720 fifty billion to one hundred and seventy five billion. The 0:02:33.840 --> 0:02:36.760 trajectory of this company is astonishing. I think we have 0:02:36.760 --> 0:02:41.480 a chart that basically shows how incrementally but rapid the 0:02:41.600 --> 0:02:44.880 valuation has jumped from twenty twenty to current right. We 0:02:44.919 --> 0:02:48.360 report on this so frequently. A big rationale, of course, 0:02:48.400 --> 0:02:51.040 behind the tender offer is to give long serving or 0:02:51.080 --> 0:02:54.040 suffering staff a chance to make some money for their work. 0:02:54.040 --> 0:02:55.359 I want to get some more of the details. Bring 0:02:55.400 --> 0:02:57.680 in Bloomboth, Katie Ruth. Katie, you and I have been 0:02:57.720 --> 0:03:00.440 reporting on so many of these rounds, both primary and 0:03:00.560 --> 0:03:03.160 secondary secondary in this case for a while. What are 0:03:03.160 --> 0:03:05.200 the numbers behind this latest tender. 0:03:05.360 --> 0:03:08.160 Yes, so we're hearing they expect to price this tender 0:03:08.200 --> 0:03:11.120 at ninety five dollars a share, which would value the 0:03:11.160 --> 0:03:14.960 company at approximately one hundred and seventy five billion, making 0:03:15.000 --> 0:03:19.080 it the largest private company in the US. This is 0:03:19.160 --> 0:03:22.080 up from one hundred and fifty billion earlier this year 0:03:22.120 --> 0:03:24.440 that we reported, and at the very beginning of the 0:03:24.520 --> 0:03:26.800 year it was one hundred and thirty seven billions. So 0:03:27.240 --> 0:03:30.280 it is defying the odds, defining the market at a 0:03:30.320 --> 0:03:34.440 time when so many companies there trouble, having trouble maintaining 0:03:34.480 --> 0:03:38.960 their unicorn status. This is the center cores that keeps growing. 0:03:39.200 --> 0:03:41.280 It is well said, and when you put it is 0:03:41.320 --> 0:03:44.040 a v the rest of the public markets. Well, it's 0:03:44.080 --> 0:03:46.400 on the same sort of market capitalization as a Nike, 0:03:46.560 --> 0:03:47.280 for example. 0:03:47.320 --> 0:03:48.080 Be get them Boeing. 0:03:48.680 --> 0:03:52.200 I'm interested is to ultimately what investors want in on 0:03:52.720 --> 0:03:55.480 when it comes to SpaceX, is it just its domination 0:03:55.640 --> 0:03:57.960 within the space in the field? Is it also still 0:03:57.960 --> 0:04:00.800 wanting a little bit of Well, Mass is a founder, 0:04:00.840 --> 0:04:03.600 even though he of course has spoked concerns with all 0:04:03.600 --> 0:04:06.320 the publicly traded companies of his because of his use 0:04:06.440 --> 0:04:07.960 is X for example. 0:04:08.440 --> 0:04:13.040 Sure, he's absolutely controversial, but my understanding is that investors 0:04:13.120 --> 0:04:17.839 are excited about starlink. That is the internet, high speed 0:04:17.839 --> 0:04:21.360 Internet that can be available and normally hard to reach places. 0:04:21.800 --> 0:04:25.359 There are investors that have spoken to me about with 0:04:25.480 --> 0:04:28.760 such enthusiasm for Starlink that they're dreaming that someday it 0:04:28.800 --> 0:04:32.159 will be a trillion dollar company. Of course, time we'll see, 0:04:32.240 --> 0:04:34.719 you know, if it really becomes that, but that is 0:04:34.800 --> 0:04:38.719 what such much of the hype is around SpaceX. We've 0:04:38.720 --> 0:04:42.600 also reported that the company eventually plans to spin off 0:04:42.760 --> 0:04:47.360 Starlink and do a separate IPO with Starlink, and so 0:04:47.520 --> 0:04:49.080 investors are trying to get in on that. 0:04:50.000 --> 0:04:54.720 We keep our eyes on all of these private market valuations, Katie, alongside, 0:04:54.760 --> 0:04:55.800 of course Gina Internet. 0:04:55.839 --> 0:04:57.160 It was brilliant scop that came. 0:04:57.080 --> 0:04:59.800 Out yesterday, and I know we'll still have all eyes 0:04:59.800 --> 0:05:02.800 on ultimately the business model of SpaceX and indeed a 0:05:02.839 --> 0:05:05.920 conversational space more broadly, because there's means some great importing 0:05:06.200 --> 0:05:08.719 coming time and time again from Lauren Grush at Bloomberg, 0:05:08.760 --> 0:05:13.560 with really the focus being on how SpaceX could just 0:05:13.680 --> 0:05:16.680 eat everyone's lunch when it comes to the ability on 0:05:16.760 --> 0:05:20.120 an economic basis to get satellites. 0:05:19.440 --> 0:05:21.760 And other options. 0:05:21.040 --> 0:05:24.080 Into low orbit. Of how are we seeing them just 0:05:24.120 --> 0:05:25.600 make strides at the moment, Lauren. 0:05:26.320 --> 0:05:28.560 Well, I think the open question is what's going to 0:05:28.600 --> 0:05:32.960 happen when their really ambitious, colossal Starship rocket comes online, 0:05:33.000 --> 0:05:36.160 because it can carry more capacity to space than pretty 0:05:36.240 --> 0:05:39.400 much anyone has the capability to do right now, and 0:05:40.080 --> 0:05:43.040 if you're looking at the current launch market, it's a 0:05:43.080 --> 0:05:47.520 capacity constrained market. Really the only option for satellite operators 0:05:47.720 --> 0:05:51.960 is SpaceX's other workhorse rocket, the Falcon nine rocket, and 0:05:52.200 --> 0:05:54.920 just because other rockets have come offline in recent years 0:05:54.960 --> 0:05:57.280 and others that are trying to be developed right now 0:05:57.360 --> 0:06:00.200 have suffered from delays, so there really is only an 0:06:00.240 --> 0:06:04.000 option for satellite operators, and so to compete with the 0:06:04.000 --> 0:06:07.920 Falcon nine, other companies have pivoted trying to build larger rockets. 0:06:08.640 --> 0:06:10.240 But it's just an open question of what's going to 0:06:10.320 --> 0:06:13.320 happen when Starship starts flying because it has a lot 0:06:13.320 --> 0:06:16.320 of promise, that's a very low price tag and very 0:06:16.400 --> 0:06:19.000 high flight rates, So it remains to be seen how 0:06:19.000 --> 0:06:20.640 that's going to impact everyone. 0:06:21.760 --> 0:06:24.039 I love your writing, you know, I love your writing, 0:06:24.080 --> 0:06:26.320 but the way that you talk about Starship, the next 0:06:26.360 --> 0:06:31.560 generation launch. Starship's audacious size and scale. It's not just 0:06:31.680 --> 0:06:35.040 audacious because it's like bigger than anything that's gone before. 0:06:35.440 --> 0:06:38.040 The technology is also kind of at the cutting edge. 0:06:38.680 --> 0:06:42.839 Just explain what you outline in today's beautifully written piece, right. 0:06:42.880 --> 0:06:45.040 So, there are a few things that make Starship kind 0:06:45.040 --> 0:06:45.880 of this game chader. 0:06:45.920 --> 0:06:47.960 It's supposed to be fully reusable. 0:06:48.120 --> 0:06:51.280 You know, the Falcon nine is reusable, but only partially reusable. 0:06:51.560 --> 0:06:54.360 But with Starship, they really want to bring back every single. 0:06:54.040 --> 0:06:55.560 Piece of that rocket. 0:06:55.600 --> 0:06:58.359 And then also there's promise of launching it, you know, 0:06:58.480 --> 0:07:02.040 multiple times a day because it's reusable, and so that 0:07:02.080 --> 0:07:04.880 would you know, Elon has kind of come up with 0:07:04.920 --> 0:07:08.440 a price tag of roughly ten million dollars per flight. Obviously, 0:07:08.520 --> 0:07:11.000 there's a lot of skepticism of whether that can actually 0:07:11.000 --> 0:07:13.240 be achieved, and in order to achieve it, you really 0:07:13.280 --> 0:07:16.440 have to get those ambitious flight rates that they're talking about. 0:07:16.520 --> 0:07:19.360 So there's a lot of promise, a lot that's being advertised. 0:07:19.640 --> 0:07:21.800 But if they can bring down the costs like they 0:07:21.840 --> 0:07:24.520 are promising, then that could be a game changer for 0:07:24.600 --> 0:07:27.840 satellite operators who maybe just want to get their satellite 0:07:27.840 --> 0:07:30.120 to space, and so they'll pack it in with maybe 0:07:30.240 --> 0:07:33.440 hundreds of other satellites on a Starship launch and you know, 0:07:33.520 --> 0:07:35.440 have maybe space tugs take them where they need to 0:07:35.440 --> 0:07:36.000 go in orbit. 0:07:36.680 --> 0:07:37.840 What's next? 0:07:38.000 --> 0:07:40.680 You know, you and I got really excited about Starship 0:07:40.680 --> 0:07:45.080 Attempt number two came and went to SpaceX's mind, massive success. 0:07:45.440 --> 0:07:46.440 That's what happens next? 0:07:47.520 --> 0:07:50.640 Well, we they actually need to reach orbital speeds. So 0:07:50.840 --> 0:07:54.680 while they did make quite a bit of progress on 0:07:54.720 --> 0:07:56.520 their second flight, you know, they were able to show 0:07:56.560 --> 0:07:59.160 stage separation, they were able to have all of their 0:07:59.200 --> 0:08:02.920 engines on Starhip operates as they were supposed to that 0:08:03.040 --> 0:08:05.400 didn't happen on the first flight. They really do need 0:08:05.400 --> 0:08:07.800 to get Starships to those near orbital speeds to prove 0:08:07.800 --> 0:08:10.200 that it can actually reach orbit. And then there's other 0:08:10.440 --> 0:08:13.440 you know, there's a very long laundry list of items 0:08:13.520 --> 0:08:15.560 that they need to achieve to make it the deep 0:08:15.560 --> 0:08:16.680 space vehicle. 0:08:16.400 --> 0:08:17.960 That they want it to be. 0:08:18.080 --> 0:08:20.520 For instance, they'll have to show that they can fuel 0:08:20.600 --> 0:08:22.960 up Starship in orbit so that it can reach deep 0:08:22.960 --> 0:08:26.000 space destinations like the Moon. But once they reach those 0:08:26.120 --> 0:08:30.040 orbital speeds, you know, then they could potentially start launching satellites, 0:08:30.920 --> 0:08:34.600 you know, Starlink satellites and customer satellites. Like they've promised, 0:08:34.720 --> 0:08:36.600 there's still quite other things to do to make it 0:08:36.640 --> 0:08:38.520 fully reusable, right, They're going to have to show that 0:08:38.559 --> 0:08:41.280 they can land it back on Earth in one piece 0:08:41.320 --> 0:08:44.520 and then fuel it up and fly again. But just 0:08:44.559 --> 0:08:46.280 getting to orbit will be a bit of a game 0:08:46.360 --> 0:08:49.240 changer for Starship, and it'll see how it impacts the industry. 0:08:50.559 --> 0:08:51.760 Bloomberg's Lauren Grush. 0:08:51.840 --> 0:08:54.080 It's just been great to have a dedicated space Beat 0:08:54.120 --> 0:08:59.080 reporter Caro, because it's such a massive industry now but 0:08:59.240 --> 0:09:01.959 only a small heart of Elon Musk Inc. Which is 0:09:01.960 --> 0:09:04.360 why I think we better talk about GROC. You've seen 0:09:04.400 --> 0:09:06.520 the news that if you are an ex the company 0:09:06.559 --> 0:09:10.240 or platform for me known as Twitter Premium subscriber, you 0:09:10.360 --> 0:09:12.480 now should have access to GROC. I've been trying through 0:09:12.480 --> 0:09:15.800 the app and like deleting, reinstalling. I don't have it yet. 0:09:16.280 --> 0:09:18.400 But this is the awaited chatbot. 0:09:18.760 --> 0:09:21.520 It is, and of course we know that it's meant 0:09:21.520 --> 0:09:25.720 to be rebellious, humorous of course, and he's been beefing 0:09:25.800 --> 0:09:29.119 up a team of well known prestigious scientists and academics 0:09:29.160 --> 0:09:31.600 to be able to be building this basically take on 0:09:31.679 --> 0:09:34.319 of open Ai, which he himself co founded. 0:09:34.960 --> 0:09:35.800 Is notable that, of. 0:09:35.720 --> 0:09:37.480 Course, it comes on the same week that the SEC 0:09:37.640 --> 0:09:40.839 filing showed that maybe Xai is going to be raising money. 0:09:40.840 --> 0:09:42.480 Elon himself said, look, we're not doing it in the 0:09:42.480 --> 0:09:44.640 here and now, but we do know that ultimately they 0:09:44.640 --> 0:09:47.080 want about a billion dollars because this stuff is expensive 0:09:47.120 --> 0:09:48.120 if you want to be able to have. 0:09:48.360 --> 0:09:50.880 But one billion doesn't even seem like that much money. No, 0:09:51.040 --> 0:09:52.520 do what everyone else has raised. 0:09:52.520 --> 0:09:53.120 I don't get it. 0:09:53.240 --> 0:09:55.200 Well, it's going to be what twenty five percent of 0:09:55.320 --> 0:09:58.160 ultimate xai is going to be held by outside investors. 0:09:58.240 --> 0:09:59.800 So does that mean that the rest of the money 0:09:59.840 --> 0:10:02.200 is going be coming from immediate revenue generation? Is it 0:10:02.240 --> 0:10:04.439 more that Elon Musk himself is going to be financing 0:10:04.480 --> 0:10:07.840 it and its growth going forward. I mean, initially open Ai, 0:10:08.000 --> 0:10:10.160 of course was the non profit version, and then he 0:10:10.240 --> 0:10:12.679 left it, and he's criticized since open ai has become 0:10:13.080 --> 0:10:16.920 a profit focused business. But he himself, I'm assuming, is 0:10:16.960 --> 0:10:19.760 going to be focusing on a profitable Xai and driving 0:10:19.760 --> 0:10:22.160 subscriptions as x even I wonder if that's really going 0:10:22.200 --> 0:10:23.240 to be the key aim here. 0:10:23.840 --> 0:10:25.520 Yeah, what I'm hearing is there's like a big push 0:10:25.520 --> 0:10:28.560 to high talent, and talent's expensive and computers expensive, so 0:10:28.600 --> 0:10:29.319 they need some money. 0:10:29.920 --> 0:10:32.560 Meanwhile, look as we talk about Elon Inc. We've got 0:10:32.600 --> 0:10:35.040 to stick with more of Elon Musk and tending to 0:10:35.080 --> 0:10:37.000 actually a bit of a more sensitive issue right now. 0:10:37.120 --> 0:10:39.319 Ed because of course he is as a CEO, he's 0:10:39.360 --> 0:10:42.160 the owner of X, and he's actually escalating his public 0:10:42.160 --> 0:10:45.480 criticism of one Bob Iger, saying that the Disney CEO 0:10:45.800 --> 0:10:49.160 quote should be fired immediately, saying that on the platform X. 0:10:49.240 --> 0:10:53.000 Musk also referenced a new Mexico lawsuit alleging content from 0:10:53.080 --> 0:10:57.720 Facebook and Instagram parent company Meta enabled check child sexual 0:10:57.760 --> 0:11:00.560 abuse and trafficking, and asked why there was no advertise 0:11:00.600 --> 0:11:01.440 a boycott on. 0:11:01.400 --> 0:11:02.720 That set of apps. 0:11:03.120 --> 0:11:06.000 The comments come after Disney along with other companies, of course, 0:11:06.000 --> 0:11:09.160 Paul spending on X after Musk endorsed anti semitic remarks 0:11:09.160 --> 0:11:12.080 on the site. From New York, from San Francisco, this 0:11:12.160 --> 0:11:13.120 is Blue Meg Technology. 0:11:28.440 --> 0:11:30.760 AMD is throwing its hat in the ring and going 0:11:30.800 --> 0:11:34.439 after the AI market with new accelerated chips that says 0:11:34.679 --> 0:11:36.920 it will be able to run AI software faster than 0:11:37.000 --> 0:11:41.120 rival products, including in videos. I sat down with amdco 0:11:41.240 --> 0:11:42.920 Lisa Sue at the launch event yesterday. 0:11:43.000 --> 0:11:43.439 Have a listen. 0:11:44.360 --> 0:11:47.320 If you look at training performance, we're very very competitive, 0:11:47.400 --> 0:11:49.839 let's call it. You know, it's a toss up. When 0:11:49.840 --> 0:11:52.880 you look at inferenced performance, we're one point four to 0:11:52.920 --> 0:11:54.319 one point six times better. 0:11:54.840 --> 0:11:56.719 And you know what that means is, you. 0:11:56.640 --> 0:11:58.920 Know, if you're running these models, you can actually run 0:11:59.000 --> 0:12:02.120 more models, or you can run larger models. You know, 0:12:02.160 --> 0:12:05.080 with MI I three hundred and right now, you know 0:12:05.160 --> 0:12:08.160 the key to AI is GPU compute. I mean that 0:12:08.280 --> 0:12:10.920 is absolutely what everybody says, and so we're here to 0:12:10.960 --> 0:12:12.679 provide lots of GPU compute. 0:12:12.840 --> 0:12:18.079 You've had the confidence to dramatically alter your your forecast 0:12:18.120 --> 0:12:21.520 for this market for AI accelerators. You're saying a total 0:12:21.600 --> 0:12:25.520 addressable market of four hundred billion US dollars in twenty 0:12:25.559 --> 0:12:28.520 twenty seven. In August, just in August, you said it 0:12:28.559 --> 0:12:30.080 was one hundred and fifty billion. 0:12:30.520 --> 0:12:31.600 What has changed. 0:12:31.960 --> 0:12:34.360 Yeah, And you know, really, the way we. 0:12:34.280 --> 0:12:36.079 Look at these things is we usually look at these 0:12:36.120 --> 0:12:38.720 things on an annual basis, and so you know, when 0:12:38.720 --> 0:12:41.559 we were, you know, doing our plan for twenty twenty 0:12:41.559 --> 0:12:45.280 three and beyond last year. We thought that you know, 0:12:45.320 --> 0:12:47.600 this year there would be about a thirty billion dollar 0:12:47.720 --> 0:12:51.160 market and it would grow, you know, fifty percent compound 0:12:51.200 --> 0:12:53.400 annual growth rates, so be about one hundred and fifty 0:12:53.400 --> 0:12:57.080 billion in twenty twenty seven, which frankly was very, very large. 0:12:57.720 --> 0:13:00.360 But what's changed is we can all see what's changed, right. 0:13:00.440 --> 0:13:05.320 People need more compute. They're installing more. The numbers for 0:13:05.360 --> 0:13:08.320 this year are probably closer to forty five billion. And 0:13:08.559 --> 0:13:11.040 when we talk to customers, when I spend time with 0:13:11.040 --> 0:13:13.520 our partners, and you know, what they. 0:13:13.440 --> 0:13:16.680 Tell us is the technology. 0:13:16.040 --> 0:13:19.720 Requires more compute. And so we now believe the total 0:13:19.760 --> 0:13:22.480 market for this it's upwards of four hundred billion and 0:13:22.520 --> 0:13:25.760 twenty twenty seven. It's huge. There's no one size fits all. 0:13:25.800 --> 0:13:28.280 They're going to be multiple solutions. There are lots of 0:13:28.320 --> 0:13:32.520 good solutions out there today, but we believe the AMD 0:13:32.600 --> 0:13:36.520 capability is very significant and so we're excited about it. 0:13:36.520 --> 0:13:39.719 It was interesting to see on stage how MI I 0:13:39.800 --> 0:13:42.000 three hundred x manifests itself in the real world, but 0:13:42.040 --> 0:13:44.959 you'd already guided us that it will likely be the 0:13:45.280 --> 0:13:48.960 quickest AMD product to one billion dollars. There were sections 0:13:48.960 --> 0:13:51.440 of the market in the street that said your forecast 0:13:51.520 --> 0:13:53.679 of two billion dollars of sales for MI I three 0:13:53.760 --> 0:13:57.920 hundred x in twenty four was conservative. If you're saying 0:13:57.960 --> 0:14:01.000 that the total addressable market by twenty twenty seven is 0:14:01.080 --> 0:14:05.520 now four hundred billion, then is that two billion forecasts 0:14:05.520 --> 0:14:08.079 for next year specifically form I three hundred. 0:14:07.960 --> 0:14:10.080 X conservative as the market thinks it is. 0:14:10.280 --> 0:14:12.480 Well, I think you'll have to take a step back 0:14:12.520 --> 0:14:15.200 and just look at how this technology is evolving. So, 0:14:15.760 --> 0:14:18.840 you know, we did update in our last conference call 0:14:19.080 --> 0:14:22.240 to an expectation about two billion in twenty twenty four 0:14:22.840 --> 0:14:26.440 for our data center GPUs. It's a very early estimate, 0:14:27.040 --> 0:14:28.680 I would say, you know, we have clear line of 0:14:28.720 --> 0:14:31.040 sight to that. But you know, what people ask me 0:14:31.160 --> 0:14:34.720 is like there's much more customer demand, definitely, and there's 0:14:34.760 --> 0:14:38.720 also significantly more supply because we've had to prepare the 0:14:38.760 --> 0:14:41.680 supply chain so that we're ready to ramp. So we'll 0:14:41.720 --> 0:14:44.480 update as we go along. You know, we are, you know, 0:14:44.560 --> 0:14:48.160 definitely on this path to rampm I three hundred the 0:14:48.240 --> 0:14:51.960 fastest is anything's ever ramped at AMD, and you know, 0:14:52.000 --> 0:14:55.560 I view this as a multi year opportunity for US. 0:14:55.840 --> 0:14:58.840 Some breaking news and headlines crossing the Bloomberg terminal. Tesler 0:14:58.840 --> 0:15:02.240 has how to reshuffle on its Dojo project. The former 0:15:02.320 --> 0:15:07.000 Dojo chief Ganesh ven Kataramanan has left the company. Sources 0:15:07.040 --> 0:15:09.720 have told me and Bloomberg's Mark German that he left 0:15:09.760 --> 0:15:13.640 Tesla last month and has been replaced by Peter Bannon, 0:15:13.680 --> 0:15:16.400 a former Apple executive. He's been at Tesla for around 0:15:16.440 --> 0:15:20.120 seven years and now takes over leadership of the Dojo projects. 0:15:20.600 --> 0:15:24.880 Venkataramanan's interesting. He's set up the AI hardware in Silicon 0:15:24.880 --> 0:15:27.680 group at Tesla more than seven years ago. He is 0:15:28.080 --> 0:15:31.840 the person behind the Dojo supercomputer, but also the D 0:15:31.960 --> 0:15:36.920 one chip, the proprietary silicon that is powering the training 0:15:37.120 --> 0:15:40.400 of video based data for autonomous driving software at Tesla. 0:15:40.600 --> 0:15:42.760 An important change there at that company. 0:15:42.440 --> 0:15:46.920 Carac important because it's about AI supercomputer future. The reason 0:15:47.040 --> 0:15:50.240 many believe that Tesla's market capitalization is any where it 0:15:50.240 --> 0:15:51.280 should be because. 0:15:51.000 --> 0:15:52.480 Of its focus on AI. 0:15:52.560 --> 0:15:54.800 And let's get back to the AI conversation for a moment, 0:15:54.840 --> 0:15:57.200 because we just were listening to your great interview with 0:15:57.440 --> 0:15:59.400 Lissa Sewer of AMD and we want to get onto 0:15:59.440 --> 0:16:01.920 that a little bit. With Mande saying from Bloomberg Intelligence 0:16:01.960 --> 0:16:06.000 and your read of ultimately the competitive space here and 0:16:06.280 --> 0:16:09.440 an enormous market opportunity for her red billion. We're just 0:16:09.480 --> 0:16:11.320 hearing from Lisa su and how are they going to 0:16:11.360 --> 0:16:12.640 get enough of that market share? 0:16:12.960 --> 0:16:15.440 Yeah, and I think one of the key distinctions that 0:16:15.480 --> 0:16:18.920 Lisa who highlighted was they're focus on inferencing as opposed 0:16:18.960 --> 0:16:21.960 to training. So we know right now all the GPU 0:16:22.040 --> 0:16:26.120 capacity was being used for training these large sangreage models. 0:16:26.400 --> 0:16:29.960 The fact that she's betting that inferencing will really pick 0:16:30.040 --> 0:16:32.440 up from this point on is a sign that you're 0:16:32.640 --> 0:16:36.560 probably going to see more copilots, more chat pots being deployed. 0:16:36.560 --> 0:16:38.360 We haven't seen that yet. I mean, look at the 0:16:38.360 --> 0:16:43.200 monthly active users for you know, GitHub Copilot or the 0:16:43.320 --> 0:16:46.440 bard chatbot and all these things. So really it's a 0:16:46.440 --> 0:16:49.960 big bed on inferencing taking off, but right now the 0:16:50.000 --> 0:16:53.200 market is concentrated on training and that's where Nvidia still 0:16:53.240 --> 0:16:54.000 has the upper hand. 0:16:54.280 --> 0:16:56.360 And look, the exuberance is there of these things being 0:16:56.360 --> 0:16:58.840 deployed and enterprise, we just look at Gemini and impact 0:16:58.840 --> 0:17:01.760 that's having on alphabet shaf price today. Unfortunately, all this 0:17:01.880 --> 0:17:03.480 breaking news, we can't dig into that a bit more 0:17:03.480 --> 0:17:05.679 with you, but mandeps saying always on the money when 0:17:05.720 --> 0:17:08.359 it comes to analysis from Bloomberg Intelligence. 0:17:16.440 --> 0:17:19.359 Okay, time for talking tech and first Up. Montenegro plans 0:17:19.400 --> 0:17:23.439 to extradite disgrace crypto tycoon Do Qwon to the US 0:17:23.680 --> 0:17:26.000 to face criminal charges that according to a Wall Street 0:17:26.080 --> 0:17:29.960 Journal report citing sources, the terraformer Labs co founder has 0:17:29.960 --> 0:17:33.040 been jailed in the Balkan country since March and has 0:17:33.080 --> 0:17:36.320 been denied committing fraud and has denied committing fraud following 0:17:36.320 --> 0:17:40.720 the crash of that stable coin terror usd In, Apple's 0:17:40.760 --> 0:17:44.760 senior executive overseeing touchscreen technology, health censors and the company's 0:17:44.800 --> 0:17:49.160 face ID interface, is leaving the company, according to Bloomberg's sources. 0:17:49.200 --> 0:17:53.560 And finally, November was another banner month for online marketplace Timu, 0:17:53.640 --> 0:17:56.600 following this year's Black Friday sales sales and the Chinese 0:17:56.640 --> 0:17:59.560 platform jumped twenty nine percent from a month ago to 0:17:59.640 --> 0:18:03.080 a new record almost triple shanes observed sales in the country. 0:18:03.320 --> 0:18:06.080 That all, according to Bloomberg Data, Caroline, We've got. 0:18:05.960 --> 0:18:08.280 To stick on the resilience of the consumer right now, 0:18:08.320 --> 0:18:11.439 particularly when it comes not just retail and fashion, her 0:18:11.520 --> 0:18:14.480 makeup as well, and Glossy Aco k Leahy is with 0:18:14.600 --> 0:18:16.320 us and peace are saying more than one year into 0:18:16.320 --> 0:18:19.760 the job and a brand that isn't just perhaps makeup 0:18:19.800 --> 0:18:21.520 as we might think it, it's fragrances too. 0:18:21.560 --> 0:18:22.440 I'm seeing candles. 0:18:22.440 --> 0:18:25.240 You're broadening, but you've also not just gone direct to 0:18:25.280 --> 0:18:28.360 consumer anymore. You're now in Sephora one hundred million run 0:18:28.440 --> 0:18:29.280 right for that first year. 0:18:29.359 --> 0:18:30.480 Is that still where it stands? 0:18:30.960 --> 0:18:32.359 Yeah, so it's been well. First of all, thank you 0:18:32.400 --> 0:18:34.240 for having me. Nice to be here, and you know, 0:18:34.280 --> 0:18:36.879 Glassie is such an incredible brand to your point, beyond 0:18:36.880 --> 0:18:41.439 transcendent of just beauty for multi category makeup, skincare, fragrance, body, 0:18:41.760 --> 0:18:45.119 merch and we really do connect with a multi generational 0:18:45.160 --> 0:18:47.680 consumer that has a deep emotional connection and I think 0:18:48.280 --> 0:18:50.040 is very very powerful. 0:18:50.080 --> 0:18:50.720 And we've been. 0:18:50.600 --> 0:18:53.320 Really building over the last two years the foundation and 0:18:53.400 --> 0:18:55.960 scale to match build a business that really matches the 0:18:55.960 --> 0:18:58.760 power of this brand. We have fifty one percent brand 0:18:58.800 --> 0:19:01.879 awareness and yet less one percent market share, so incredible 0:19:01.920 --> 0:19:04.840 opportunity to connect the size and scale of our business 0:19:04.920 --> 0:19:07.239 with the size and scale of our brand, and we 0:19:07.280 --> 0:19:09.439 are now seeing that come to life at record revenue 0:19:09.480 --> 0:19:12.840 levels for Glossier and two years of consecutive growth, and 0:19:12.880 --> 0:19:15.480 to your point, our launch at Sephora has been hugely 0:19:15.520 --> 0:19:18.439 successful for us, on track to pass one hundred million 0:19:18.480 --> 0:19:20.320 in sales, and yet still. 0:19:20.160 --> 0:19:21.639 Is the smaller piece of our business. 0:19:21.680 --> 0:19:23.480 We do more of our business in our owned channels, 0:19:23.520 --> 0:19:25.840 so it really is a powerful omni channel strategy. 0:19:26.080 --> 0:19:28.119 How do you think about that in terms of any 0:19:28.160 --> 0:19:31.400 cannibalization whatsoever? Or really have you just seen sales wise 0:19:31.440 --> 0:19:34.240 across the board no matter which particular point of Selle 0:19:34.240 --> 0:19:34.639 you're doing it? 0:19:34.680 --> 0:19:35.200