Speaker 1: From the heart where innovation, money and power Collie in Silicon.
Speaker 2: Valley, NBN. This is Bloomberg Technology with Caroline Hyde and
Speaker 2: Ed Ludlow.
Speaker 3: Live from New York. This is Bloomberg Technology coming up.
Speaker 4: Soft Bank CEO Masiyoshi's son set to announce plans to
Speaker 4: invest one hundred billion dollars in the US during a
Speaker 4: visit with President elect Donald Trump. We're bringing the news
Speaker 4: plus Bitcoin rises to a record high. I'm in microstrategies
Speaker 4: inclusion in the Nasdaq, and Apple's got plans for a
Speaker 4: new foldable iPad and aims to bring it to market
Speaker 4: by twenty twenty eight.
Speaker 3: A first we.
Speaker 4: Check in on these markets which have a risk on
Speaker 4: attitude to the day, as we anticipate key Fed decision
Speaker 4: come Wednesday. Ahead of that, and as that one hundred
Speaker 4: a new record high. We're up nine tenths of there,
Speaker 4: and chip maker is managing to drive higher Micron broadcon.
Speaker 4: But also we're seeing Bitcoin up three point four percent.
Speaker 4: We are once again escalating to new levels. We dig
Speaker 4: into the reasons why, but of course trumping one of
Speaker 4: them the focus on the new administration, but also micro
Speaker 4: strategy like to be added to the Nasdaq. And what
Speaker 4: that means for its own purchases of bitcoin. We're up
Speaker 4: at one hundred and six thousand dollars per token. But
Speaker 4: the big breaking news of the day when it comes
Speaker 4: to technology is, of course, according to the people familiar
Speaker 4: that SoftBank CEO mas Yoshi Son is set to announce
Speaker 4: plans to invest a whopping one hundred billion dollars in
Speaker 4: the United States over the next four years. It's all
Speaker 4: according to sources, as we say, and this is as
Speaker 4: he's planning to be meeting with President elect Trump today
Speaker 4: and mar Lago. We're expecting Donald Trump to speak in
Speaker 4: a few moments. Time for more, let's bring in Bloomberg's
Speaker 4: Peter Elstrom and for while. Back in twenty sixteen, we
Speaker 4: saw big promises made by Massa and this time he's
Speaker 4: doubling them.
Speaker 5: Yeah, you'd be forgiven if you thought this was deja vus.
Speaker 5: It was eight years ago, in fact, eight years ago
Speaker 5: December when masiosche Son went and met with Trump and
Speaker 5: he talked about investing fifty billion dollars. Now he's doubling
Speaker 5: that pledge. It's one hundred billion dollars that he's planning
Speaker 5: to invest. According to our sources, and also he's planning
Speaker 5: on creating and estimated one hundred thousand jobs in the
Speaker 5: United States. So this is the first major investment that
Speaker 5: we've seen after Trump's win. It's certainly a pledge towards
Speaker 5: what Trump has been trying to do in terms of
Speaker 5: reinvigorating the economy. For SoftBank, it's also a pretty big
Speaker 5: push into the United States. Last time when they pledged
Speaker 5: fifty billion dollars, MASA had just raised this vision fund.
Speaker 5: He had plenty of capital. He put investments into companies
Speaker 5: like we work in Door Dash and plenty of others.
Speaker 5: But right now he doesn't have that kind of cash anymore.
Speaker 5: He only has about twenty five billion dollars in cash
Speaker 5: on the balance sheet, and yet he's doubling that pledge.
Speaker 3: So we had some work to do here, had some work.
Speaker 4: We're also wanting to know the finer details of where
Speaker 4: exactly he allocates. He's been all in on AI saw
Speaker 4: this curve coming before many others, of course as evidence
Speaker 4: his arm holding's acquisition and then taking that to market.
Speaker 4: But where else do you think he'll be investing in
Speaker 4: the United States?
Speaker 5: Yeah, well, more recently, including at SoftBank World this summer
Speaker 5: He's talked a lot about artificial intelligence and how he
Speaker 5: wants to invest even more and more kinds of companies.
Speaker 5: So he is putting money into open Ai, in particular
Speaker 5: to Pioneer of course behind chat GPT. He's put in
Speaker 5: five hundred million so far, and he's right in the
Speaker 5: process of a tender offer now where he's offering open
Speaker 5: Ai investors the ability to sell him their share so
Speaker 5: he can get another one point five billion dollars. But
Speaker 5: his ambitions go far beyond that. He's talked about the
Speaker 5: need to have more alternatives to in vidio chips in particular.
Speaker 5: He knows that energy is a huge issue for AI
Speaker 5: right now, so he wants to make investments there. He's
Speaker 5: also been investing quite a bit in autonomous driving, so
Speaker 5: he's a lot of ambitions. He always has a long
Speaker 5: list of deals and investments that he wants to make,
Speaker 5: so we're going to see where exactly he puts that money.
Speaker 5: But it is a lot of money right now, and
Speaker 5: again he doesn't have that cash on his balance sheet.
Speaker 3: He has to be able to go out and get
Speaker 3: that close.
Speaker 4: Peter, that's from we thank you so much, bringing us
Speaker 4: up to speed on the anticipated announcement. Now, let's keep
Speaker 4: discussing trends in tech markets more broadly, what this influx
Speaker 4: of money into AI really means for the US at
Speaker 4: least densisms with US directoral quantitative market strategy. Over at Fidelity,
Speaker 4: we love having you on because of the historical context
Speaker 4: you can put today's investment advice. But I mean we
Speaker 4: look at what's happening in the market. When you're thinking
Speaker 4: of a juggernaut of one hundred billion dollars coming into
Speaker 4: USAI and energy, where it feels.
Speaker 3: Like a lot of money has already gone that direction.
Speaker 6: Yeah, Well, when you readbase it relative to sales or
Speaker 6: relative to market cap, I mean you haven't really seen
Speaker 6: that much of a move.
Speaker 3: I think we talk about this all the time with.
Speaker 6: Money funds on sitting on the sidelines, how much cash
Speaker 6: is on the sidelines, or how much cash in terms
Speaker 6: of nominal capacs.
Speaker 1: But when you actually.
Speaker 6: Renormalize it, given the move that we've seen in the
Speaker 6: marketplace over the last five years, it's a much lower
Speaker 6: percentage than you would think. Interestingly enough, specifically for tech stocks,
Speaker 6: and I would say more specifically for software stocks, cap
Speaker 6: BAX is very much an alpha fact, meaning that that
Speaker 6: spending is usually a good thing for stocks because it's
Speaker 6: very correlated to earnings growth.
Speaker 4: Okay, so I'm not going to ask you is to
Speaker 4: opine as to where exactly a Masayoshi Son is going
Speaker 4: to be putting his investment. But if you're looking at
Speaker 4: an every day, whether it's retail or it's chootion investor
Speaker 4: right now allocating to opportunities, do you have to be
Speaker 4: put off by some of the valuations right now or
Speaker 4: actually do you keep chasing the momentum, keep chasing the
Speaker 4: names that have.
Speaker 3: Done well well.
Speaker 6: It's interesting. So technology has had a little bit of
Speaker 6: underperformance over the course of the last six months, and
Speaker 6: because earnings growth and free cashulow has been so strong,
Speaker 6: you're actually out of anomalist valuation situation. So I define
Speaker 6: anomalist valuation as top quartile. So we have fallen out
Speaker 6: of top quartile levels, which is where you see the
Speaker 6: risk reward become fairly negative for tech. Now as we
Speaker 6: enter twenty twenty five, coming out of that top quartile
Speaker 6: valuation zone, I actually think it sets up for a
Speaker 6: pretty positive risk reward. And for all the talk about
Speaker 6: momentum stocks on our day, when you look at it
Speaker 6: specifically within technology, I'm not seeing any anomalous behavior, meaning
Speaker 6: I'm not seeing top quartile road to performance over the
Speaker 6: last year, and I'm not seeing top quartile valuation on
Speaker 6: that top quartile of momentum, meaning that because earnings in
Speaker 6: free cash flow are so strong, there's no valuation situation
Speaker 6: where you're saying you're overpaying on a consistent basis for
Speaker 6: technology stocks that have been leaders in the S and
Speaker 6: P five hundred Wow.
Speaker 4: So it still feels like there's basically opportunities in the
Speaker 4: mag seven.
Speaker 3: What about the next tay down?
Speaker 4: We started to see software names really come to the
Speaker 4: rise as people started to reallocate perhaps from the semiconductor
Speaker 4: trade out to the Kila applications being born out.
Speaker 3: Is that something that you'd like to see moral No, that's.
Speaker 6: A great question and a great point because of the
Speaker 6: three big areas within technology, if you say hardware, software,
Speaker 6: or semis, where are the opportunities. It looks very interesting
Speaker 6: on the data and software to me, given the strength
Speaker 6: and free cash flow and earnings valuations, we're actually in
Speaker 6: the bottom half of the distribution a valuation perspective when
Speaker 6: you look at all the data back to nineteen sixty two.
Speaker 6: And what you see is that very much empirically skews
Speaker 6: your risk rewards on odds for the software sector specifically,
Speaker 6: so when you have strong growth and valuation support, it's
Speaker 6: a very positive risk reward for the sector. Of those three,
Speaker 6: hardware software and Semis software is the only one of
Speaker 6: those three industries that looks like that. So I think
Speaker 6: as we enter twenty twenty five, that's where it looks
Speaker 6: like the opportunities are to me.
Speaker 3: And in the US todays, yes, in the US.
Speaker 4: What of the US exceptionalism on this trade that we
Speaker 4: all keep talking about, I mean, is it going to
Speaker 4: dominate for twenty twenty five?
Speaker 3: It looked to me it does look like that.
Speaker 6: So everything outside the US, whether you want to talk
Speaker 6: about EFA EM or AQUI X THEUS, what you find
Speaker 6: is that valuation screen looks like a quantitative value trapped
Speaker 6: to me, meaning that when you've bought in that bottom
Speaker 6: quartile relative valuation on earnings are free cash flow, you
Speaker 6: only have thirty percent odds about perform. It's like thirty
Speaker 6: percent is not zero. But at the same time, it's
Speaker 6: hard to say that that valuation is a critical driver
Speaker 6: and the reason why it's not a driver is because
Speaker 6: often international stocks are cheap for a reason. Even on
Speaker 6: a sector neutral basis, taking out technology medium stock to
Speaker 6: median stock, the S and P five hundred outgrows their
Speaker 6: international peers by about three to four hundred basis points
Speaker 6: a year on earnings, and it's growing every cycle. So
Speaker 6: unless you think something is going to change, that hasn't
Speaker 6: been the case over the last fifteen years. I think
Speaker 6: the risk reward is still more favorable.
Speaker 3: In the US. This is why your historical context so important. Dennis.
Speaker 3: I go therefore to the macro picture.
Speaker 4: We are, of course seeing the micro news on an
Speaker 4: investment coming from Massa, but we're also seeing the macro
Speaker 4: news of we're waiting on rates to go down. What
Speaker 4: does that mean for that cash on the sidelines that
Speaker 4: still perhaps is waiting to enter.
Speaker 6: Yeah, so rates, let's talk about rates being an alpha
Speaker 6: factor for the market. I think people get a little
Speaker 6: confused in terms of thinking about whether or not the
Speaker 6: playbook is a good thing or a bad thing, saying
Speaker 6: rates are not the critical driver. Earnings growth is the
Speaker 6: critical driver. So when you look at the FED from
Speaker 6: a playbook perspective, sometimes the fed's cutting because they have to.
Speaker 6: That's not good for the market. Sometimes the Fed's cutting
Speaker 6: because they can. And what you see from a quantitative
Speaker 6: differential from those like trying to divide those two is
Speaker 6: your starting point on earnings growth matters a lot. Our
Speaker 6: starting point of positive earnings growth usually predicts a more
Speaker 6: bullish situation for.
Speaker 3: The s and P.
Speaker 6: Five hundred. You're starting level of the Federal Reserve matters
Speaker 6: a lot as well, because that's essentially a mathematical definition
Speaker 6: of the FED put meaning if the FED is high
Speaker 6: relative to inflation, they can do something to the extent
Speaker 6: that the economy is hit with a shock. That's a
Speaker 6: good thing. That's our situation as we enter twenty twenty four.
Speaker 6: And most importantly, the FED can definitively change willingness to
Speaker 6: lend of banks because that's been in contractionary territory and
Speaker 6: because that's likely improving earnings growth is likely to broaden
Speaker 6: out in twenty twenty five, include those small businesses and lagging,
Speaker 6: and that skews your risk reward being pretty positive as
Speaker 6: we under twenty twenty five.
Speaker 4: But then, how risk hungry did the edges of the
Speaker 4: market become. I mean, we look at a day where
Speaker 4: micro strategy, which has basically been a leverage bet on
Speaker 4: bitcoin hugely outperformed Bitcoin in and of itself, is not
Speaker 4: going to be added to the NASDAC. I mean, are
Speaker 4: we going to see more money flow to those sorts
Speaker 4: of risky ridges.
Speaker 6: Now that's a great question. So I mean, without the
Speaker 6: talking about the idiosyncratic names. When I look at quality,
Speaker 6: which is sort of the opposite of the factor that
Speaker 6: you're talking about, it's been a darling of a factor,
Speaker 6: much like Lovall was only underperforming I think three in
Speaker 6: the last twenty years. Well, that's left quality stocks fairly expensive.
Speaker 6: And that doesn't necessarily mean those high quality stocks need
Speaker 6: to underperform by a lot, but to the extent relative
Speaker 6: earnings or those relative returns start to inflect lower, that
Speaker 6: usually does lead to underperformance in the factor. So for
Speaker 6: anybody with a quality bias, I think about scrubbing your
Speaker 6: portfoli oh yea and thinking about better risk rewards in
Speaker 6: what have been historically risky your names.
Speaker 3: Tenny's unbeatable, thanks for coming on. Tiny's s tism Happy.
Speaker 4: Holiday's director of quantitive market strategy at Fidelity. Coming up,
Speaker 4: we're going to focus a bit more on Bitcoin and MicroStrategy.
Speaker 3: Of course, crypto bitcoin himself.
Speaker 4: And a new record high throughout the weekend and now
Speaker 4: longest weekly winning runs is twenty twenty one.
Speaker 3: Will dig in.
Speaker 4: Also, we're going to be focusing on later in the
Speaker 4: show a bit more about Vivendi.
Speaker 3: But look at it.
Speaker 4: It's currently don't look at Vivendi stock today because it's
Speaker 4: currently distributing itself up and is breaking itself into three
Speaker 4: different companies. But what I want you to focus on
Speaker 4: is what CBC is up to at the moment, exploring
Speaker 4: a potential purchase of a Vendi's Telecom Italia stake. This
Speaker 4: is as we know that Vincenbalaure, the billionaire in charge
Speaker 4: of Vivendi, is trying to make his assets work for him.
Speaker 4: This is broomeg Technology and we are expecting President elect
Speaker 4: Trump to speak live from our alago in a few
Speaker 4: moments time. All eyes on that reported one hundred billion
Speaker 4: dollar investment coming from Masayoshi's son into the United States
Speaker 4: and one hundred thousand jobs to be created too.
Speaker 3: We'll bring you that as and when.
Speaker 4: It occurs, but for now, let's just focus on another
Speaker 4: area that Trump has helped rally, and that is Bitcoin
Speaker 4: rising to a record high, large part because of the
Speaker 4: next administration supported digital assets, but also there's this optimism
Speaker 4: about the upcoming inclusion of micro Strategy in the NAZAK
Speaker 4: one hundred and what that means for future purposes and
Speaker 4: purchases Isabelle Lee is here with more and mstr gets
Speaker 4: into and as that one hundred, it means technically that
Speaker 4: more funds will have to allocate to it.
Speaker 3: Right, It really is a big deal. It's really it.
Speaker 7: Represents kind of like this institutional acceptance of bitcoin, which
Speaker 7: is interesting because micro Strategy, and it's called founder Michael
Speaker 7: Salor has long been ridiculed by Wall Street a specialist
Speaker 7: since they started just in bitcoin in twenty twenty and
Speaker 7: today again for the six straight Monday, they bought one
Speaker 7: point five billion worth. Their total cache is forty five billion.
Speaker 7: But it's really that the stock has rallied five hundred percent.
Speaker 7: But you're right around four hundred fifty one billion dollars
Speaker 7: worth of ets track the NASTAC one hundred, so they
Speaker 7: will all have to rebalance, ISABALLEI.
Speaker 3: We thank you.
Speaker 4: We'll have to cut it short there because we do
Speaker 4: understand that President ect Donald Trump is now starting his
Speaker 4: press conference in mar Logo.
Speaker 3: We're listening.
Speaker 8: We'll discuss a couple of points. We'll take some questions
Speaker 8: later if you'd like. I'm sure you might have one
Speaker 8: or two. I'd be shocked if you didn't, I'd be
Speaker 8: very impressed. But I'm honored to welcome one of the
Speaker 8: most accomplished business leaders of our time, the founder and
Speaker 8: CEO of soft Bank. Everybody knows Masa Yoshi San. Masa
Speaker 8: runs one of the largest companies in Japan and among
Speaker 8: the most successful investment and technology companies anywhere in the world,
Speaker 8: one of the most successful investors in the world. And
Speaker 8: we've just included a very productive meeting, and today I'm
Speaker 8: thrilled to announce that SoftBank will be investing one hundred
Speaker 8: billion dollars in America, creating one hundred thousand American jobs
Speaker 8: at a minimum. And he's doing this because he feels
Speaker 8: very optimistic about our country since the election, and many
Speaker 8: other people are also coming in with tremendous amounts of money.
Speaker 2: You probably noticed that the poll was just taken.
Speaker 8: Its business is literally in thirty nine years, has been
Speaker 8: nothing like it. It's been the biggest increased small business
Speaker 8: owners gave it a forty one percent jump.
Speaker 2: It's the biggest jump that we've.
Speaker 8: Had in thirty nine years, and nobody's ever seen anything
Speaker 8: like it, and it's just they're very optimistic. This historic
Speaker 8: investment is a monumental demonstration and confidence in America's future,
Speaker 8: and it will help ensure that artificial intelligence, emerging technologies,
Speaker 8: and other industries of tomorrow are built, created and grown
Speaker 8: right here in the USA.
Speaker 2: One of the beautiful things about Massa is he's.
Speaker 8: Very much involved with emerging technology, probably knows it may
Speaker 8: be better than almost anybody.
Speaker 2: So it's a great honor.
Speaker 8: And some of you remember after the twenty sixteen election,
Speaker 8: also SoftBank committed to invest fifty billion dollars in our country,
Speaker 8: and they did in a very place to say that
Speaker 8: they kept that promise.
Speaker 2: In every way, shape and form.
Speaker 8: And now they're looking to do one hundred and I've
Speaker 8: looked at their books. They do have the possibility of
Speaker 8: doing more. I'm going to ask them to do a
Speaker 8: little bit more. But first I'm going to ask him.
Speaker 2: To speak, and just to say a few words. Massa. Please,
Speaker 2: thank you, thank you, please.
Speaker 8: You think, thank you very much, appreciate it, thank you, Helm.
Speaker 2: Thank you so much. I'm very, very excited.
Speaker 9: I would really like to celebrate the great victory President Trump.
Speaker 9: And my confidence level to the economy of the United
Speaker 9: States has tremendously increased with his victory. So because of that,
Speaker 9: I'm now excited to commit this one hundred billion dollars
Speaker 9: and one hundred thousand jobs into the United States. This
Speaker 9: is double of last time, as President Trump said, because
Speaker 9: I say, oh, President Trump is a double down present,
Speaker 9: I'm gonna have to double down, you know, one hundred
Speaker 9: billion dollars and one hundred thousand jobs. This is you know,
Speaker 9: my confidence level because that has doubled down. So I
Speaker 9: am truly excited to make this happen. And of course
Speaker 9: business is important, technology is important. But one more thing
Speaker 9: I'm really hoping is that this President Trump would make
Speaker 9: the world, bring the world into peace again. That's my
Speaker 9: additional hope and and I think he will actually make
Speaker 9: it happen. So anyway, I'm excited to go. And we
Speaker 9: were discussing and President Trump said, Marsa, you know, double doll.
Speaker 2: Is not enough. Maybe you know, go for more. Right,
Speaker 2: That's what.
Speaker 8: I'm going to ask him right now. Would you make
Speaker 8: it two hundred million dollars he can, would you do that?
Speaker 2: Well, my promise is hungry. But you know he's now
Speaker 2: asking to do more.
Speaker 9: I think you know with your leadership, my pop messive
Speaker 9: is you is your support.
Speaker 2: I will, I will try to make it happen. That's good.
Speaker 2: Five two hundred kill make it two hundred. Sh He
Speaker 2: is a great nego say that he's a brilliant guy
Speaker 2: and an unbelievable job.
Speaker 8: And the people of Japan and all over the world
Speaker 8: are very proud of and a uh tremendous respect for
Speaker 8: himself what he does, what he just did, and and
Speaker 8: I would be surprised if if what didn't go to
Speaker 8: do And when you say you'll try, uh.
Speaker 2: I know you'll do it. I will. I will really
Speaker 2: try it.
Speaker 9: Yeah, And and I need your support though you'll have
Speaker 9: my support alright, we have our country support all fantastic,
Speaker 9: Thank you, my sport, fantastic, thank you, thank you.
Speaker 2: Where are saying legend the people of Japan who were all.
Speaker 9: Watching, well, uh, I'm sure uh our people in Japan
Speaker 9: uh proud to uh make the pop muss of US
Speaker 9: and Japan be stronger. And I'm very excited to make
Speaker 9: this happen.
Speaker 2: Thank you very much. Thank you, thank you, thank you,
Speaker 2: thank you. That's a good job.
Speaker 10: Thank you.
Speaker 2: It's amazing.
Speaker 8: It's a great gentleman at a great leader and a
Speaker 8: great investor.
Speaker 2: So to have that offerm it.
Speaker 8: And we have so many companies coming in now where
Speaker 8: that will be announcing or they will announce themselves. We'll
Speaker 8: not have to be with them to do it, but
Speaker 8: they'll be announcing. And as I said, small business optimism
Speaker 8: took a forty one points jump forty one points.
Speaker 2: It went up forty one points.
Speaker 8: That's unheard of, and that's the biggest they think in
Speaker 8: recorded history.
Speaker 2: But they know at least a minimum of thirty nine years.
Speaker 2: So that's great.
Speaker 8: But on behalf of the American people, I want to
Speaker 8: thank Massa for his faith and what's happening with our
Speaker 8: country and what's happening with the world. There's a whole
Speaker 8: light over the entire world. Many people, some reporters, and
Speaker 8: speaking to them, they said, you know, it actually is true.
Speaker 8: A couple of them are not necessarily friends of mine,
Speaker 8: but they said, it is actually true that there's a
Speaker 8: light shining over the world. We're trying to help very
Speaker 8: strongly and getting the hostages back as you know, with
Speaker 8: Israel and the Middle East, we're working very much on that.
Speaker 8: We're trying to get the war, stop that horrible, horrible
Speaker 8: war that's going on in Ukraine with Russia. Ukraine. We're
Speaker 8: going to We've got a little progress. It's a tough one.
Speaker 2: It's a nasty one. It's nasty.
Speaker 8: People are being killed at levels that nobody's ever seen,
Speaker 8: you know. It's very level fields and the only thing
Speaker 8: that stops a bullet is.
Speaker 2: A body, a human body, and the number of.
Speaker 8: Soldiers that are being killed on both sides is astronomical.
Speaker 8: I've never seen anything like it, and rapidly I get
Speaker 8: reports every week and it's not even you know, it's
Speaker 8: like just going down. Nobody's seen anything like it. It's
Speaker 8: a very flat surface, a very flat land. That's why
Speaker 8: it's great farming land. It's the it's the bread basket
Speaker 8: for the world actually, but it's very flat and there's
Speaker 8: nothing to stop a bullet but a body. There's no protection,
Speaker 8: no nothing, and it's what's happening there is far worse
Speaker 8: than people are reporting for both sides. So we're going
Speaker 8: to do our best that we've been doing our best,
Speaker 8: and we'll see what happens. But since the election, I've
Speaker 8: been working every day to put the world at ease
Speaker 8: a little bit, to get rid of the wars. We
Speaker 8: had no wars when I left office, and now the whole.
Speaker 2: World is blowing up.
Speaker 8: But there's great optimism, and you saw that by soft bank.
Speaker 2: Starting on day one, we'll implement.
Speaker 8: The rapid series of bold reforms to restore our nation
Speaker 8: to fold prosperity. We're going to go full prosperity and
Speaker 8: to build the greatest economy the world has ever seen,
Speaker 8: just as we had just a short time ago. We
Speaker 8: had it in my turn, with the greatest economy that
Speaker 8: the world had seen.
Speaker 2: We were blue owing away everybody.
Speaker 8: Our country was doubling up on China, doubling up on everybody,
Speaker 8: and everybody knows it. And then we had to slow
Speaker 8: it down with COVID, unfortunately at the end. But even
Speaker 8: then I gave it back with a substantial increase of
Speaker 8: the stock market.
Speaker 2: Bigger than it was pre COVID, So it was pretty amazing.
Speaker 8: Already, preparations are underway to slash massive numbers of job
Speaker 8: killing regulationsing eliminating ten old regulations for every new one.
Speaker 8: You put a new regulation on.
Speaker 2: You have to get rid of ten and we'll be
Speaker 2: able to do it. And that was about the percentage
Speaker 2: we had.
Speaker 8: We cut more regulations than any president has ever cut
Speaker 8: by far, actually by approximately five times. Some of those regulations, unfortunately,
Speaker 8: were put back on.
Speaker 2: But we'll catch up very quickly. We'll catch up with it.
Speaker 8: One of the things I'd like to ask the Biden administration,
Speaker 8: as you probably heard, there are two events that took place.
Speaker 2: We're talking about.
Speaker 8: A friendly takeover, a friendly transition, as they like to say,
Speaker 8: this is a friendly transition, and it is, but there
Speaker 8: are two events.
Speaker 2: That took place that I think are very terrible.
Speaker 8: One is that if people don't come back to work,
Speaker 8: come back into the office, they're going to be dismissed.
Speaker 8: And somebody in the Biden administration gave a five year
Speaker 8: waiver of that so that for five years people don't
Speaker 8: have to come back into the office. It involved forty
Speaker 8: nine thousand people for five years, they don't.
Speaker 2: Have to go. They just signed this thing. It's ridiculous.
Speaker 8: So it was like a gift to a union and
Speaker 8: we're going to obviously be in court to stop. And
Speaker 8: the other thing is really terrible. We spent a tremendous
Speaker 8: amount of money in building the wall.
Speaker 2: The wall was.
Speaker 8: Designed specifically by the Border Patrol because it's very hard
Speaker 8: to climb. They need to have see through They needed
Speaker 8: to be steeled because you can't get it's very powerful steel.
Speaker 8: It's very hard steal. It's a special type of steel,
Speaker 8: but very very hard to cut. Inside the steel. As
Speaker 8: you know, we pour concrete and that's a Grade ten concrete,
Speaker 8: which is a very strong concrete, very as though you
Speaker 8: were building about a sixty story building.
Speaker 2: It's very powerful concrete.
Speaker 8: They've made tremendous technology advances in the word concrete. Who
Speaker 8: would think that, but I know that from the construction
Speaker 8: industry today. What you can do with concrete is incredible.
Speaker 8: So we have a very strong concrete and then we
Speaker 8: have a rebar. We put rebar inside the concrete and
Speaker 8: the rebar, likewise, is very hard to cut. So it's
Speaker 8: a very expensive process, very expensive wall. And then we
Speaker 8: put a anti climb plate on the top. You saw
Speaker 8: that and I didn't like the look of it, But
Speaker 8: then when I watched we had people testing, We had
Speaker 8: mountain climbers actually testing, and they were not able to
Speaker 8: get over the anti climb plate.
Speaker 2: So I said, all right, I guess we're going to
Speaker 2: put it on that.
Speaker 8: Plate on top, which I never loved the look of it,
Speaker 8: but it works so unbelievable.
Speaker 2: Well, you have to do it.
Speaker 8: So we spent a lot of money in building it,
Speaker 8: and we have hundreds of miles that we put up.
Speaker 8: A lot of people don't realize, but we did five
Speaker 8: hundred and seventy one miles of wall. That's why we
Speaker 8: had such good records, in addition to the fact that
Speaker 8: Mexico helped us with their military. They kept people out
Speaker 8: and they were actually very good under the past leader.
Speaker 8: But now had we ordered an additional two hundred miles
Speaker 8: of wall, it's very expensive, and now it's about double
Speaker 8: the price of what it would have been six years ago,
Speaker 8: and the administration is trying to sell it for five
Speaker 8: cents on the dollar, knowing that we're getting ready to
Speaker 8: put it up, and what they're doing is really an act.
Speaker 8: It's almost it's almost a criminal act. They know we're
Speaker 8: going to use it, and if we don't have it,
Speaker 8: we're going to have to rebuild it, and it'll cost
Speaker 8: double what it costs years ago, and that's hundreds of
Speaker 8: millions of dollars because you're talking about a lot of wall. Well,
Speaker 8: I built much more than I said I was going
Speaker 8: to build. But then after it was built, I said,
Speaker 8: you know, we can do some more because it's sort
Speaker 8: of like water people flow through and that will pretty
Speaker 8: much really take care of it. And what happened is
Speaker 8: they just as you see, they're trying to sell it
Speaker 8: for five cents of the dollar. And that's really that
Speaker 8: has nothing to do with a smooth transition. That has
Speaker 8: to do with people really trying to stop our nation.
Speaker 8: And all it means really is that we're going to
Speaker 8: spend hundreds of millions of dollars more, not even talking
Speaker 8: about the time. Time would be pretty long, but we'll
Speaker 8: spend hundreds of millions of dollars more on.
Speaker 2: Building the same wall that we already have.
Speaker 8: And people have already come back to us that have
Speaker 8: deals at five cents and four cents, and one guy
Speaker 8: at three cents on the dollar, and they offered to
Speaker 8: sell it back to us at more money then it
Speaker 8: costs us to build substantially, can you believe it. So
Speaker 8: they make a deal with the United States to buy
Speaker 8: it for pennies and then they call us, and they say,
Speaker 8: do you want to buy it back? We'll sell it
Speaker 8: back to you for hundreds of dollars a foot, hundreds
Speaker 8: of dollars from pennies to hundreds of dollars a foot.
Speaker 2: And we can't let this take place. Now, we're going
Speaker 2: to go.
Speaker 8: I spoke with the Attorney General of Texas. I spoke
Speaker 8: to the Senators of Texas. I spoke to a lot
Speaker 8: of people, and hopefully they'll be able to stop. We're
Speaker 8: going to be having a restraining order. But just think
Speaker 8: about how ridiculous it is. And this is just people
Speaker 8: that don't want this country to succeed. And this has
Speaker 8: nothing to do with Democrat or Republican. This has to
Speaker 8: do with common sense. We won on common sense, and
Speaker 8: this is maybe one of the most egregious examples I've seen.
Speaker 8: So the people that are buying it, are trying to
Speaker 8: buy it, are trying to make a deal with us
Speaker 8: to sell it back at hundreds of times more, hundreds
Speaker 8: of times more then we paid. And this is all
Speaker 8: because the deb So I'm asking today Joe Biden to
Speaker 8: please stop selling the world.
Speaker 2: We're going to use that.
Speaker 8: To create a strong barrier.
Speaker 2: And it worked.
Speaker 8: That's why our numbers were so good. It really worked,
Speaker 8: and it worked well, and it's very expensive to do,
Speaker 8: and I'm asking Joe Biden to stop his people from
Speaker 8: giving it away. It's something that people can't even believe
Speaker 8: is happening. So hopefully Joe will be able to stop it.
Speaker 8: We'll soon unleash American energy and this will be done
Speaker 8: at the levels not seen before, issuing quick approvals for pipelines,
Speaker 8: drilling another infrastructure. It'll be clean energy, and we'll bring
Speaker 8: in the price of electricity and we're going to bring
Speaker 8: it down fast. We're also going to create clean coal.
Speaker 8: Clean coal is something that has really taken over. We
Speaker 8: have coal that will last for over a thousand years.
Speaker 8: We have so much call, and with a process, it
Speaker 8: becomes clean call. It's very powerful energy. Unlike wind. It's
Speaker 8: very very powerful. And we're going to be doing a
Speaker 8: lot of clean call for the people of West Virginia
Speaker 8: and others, Wyoming, so many states. We have great states,
Speaker 8: and they'll be happy to hear it. But we're going
Speaker 8: to be very much into clean call. I don't ever
Speaker 8: use the word call. I use the word clean call.
Speaker 8: And I'll keep my promise to pass historic tax cuts
Speaker 8: for American families, workers, and businesses that create jobs in America.
Speaker 8: As you know, we're giving tax cuts if they do it.
Speaker 2: Here.
Speaker 8: We brought it down from forty four percent forty two percent.
Speaker 8: In some cases it was thirty nine. We brought it
Speaker 8: all the way down to twenty one percent, and now
Speaker 8: we're bringing it down to fifteen but only if they
Speaker 8: make their product, their car or whatever they're doing in
Speaker 8: the United States in the US and people are thrilled.
Speaker 8: I've had the smartest people on Walston called me. They said,
Speaker 8: when do you get that idea? And it doesn't seem
Speaker 8: that complicated, right, but it's nobody else.
Speaker 2: It's like the paper clip. Nobody ever thought of it.
Speaker 2: One guy thought of it.
Speaker 8: Everybody looked at it, and they said, Wow, that was
Speaker 8: a good idea.
Speaker 2: Why didn't I think of it?
Speaker 8: But we're bringing it down six more points and that
Speaker 8: will put us really at the UH the best level
Speaker 8: we've ever had for bringing in business. We've never been
Speaker 8: down to. That level will be among the lowest tax states,
Speaker 8: and a lot of businesses are going to come in
Speaker 8: Between that and our taxing and tariff policies, We're going
Speaker 8: to have business like nobody's ever seen in this country before.
Speaker 8: That's why we're, you know, having a forty one year
Speaker 8: record in optimism from small businesses and big businesses.
Speaker 2: And I'll keep my.
Speaker 8: Promise to pass historic tax cuts for families, workers, and
Speaker 8: businesses that create jobs in America. Any business that invests
Speaker 8: one billion dollars or more in the United States will
Speaker 8: be eligible for fully expedited permits and approvals, including environmental approvals,
Speaker 8: from the federal government. So when companies come in, if
Speaker 8: they're going to invest a billion dollars and more, there'll
Speaker 8: be many of them, and they'll go into Detroit, and
Speaker 8: they're going to a lot of places where we want them.
Speaker 8: You saw how well I did with the auto workers.
Speaker 8: We did unbelievably well. You saw how well we did
Speaker 8: with the teamsters, and also the non union were record
Speaker 8: ninety eight percent, ninety seven percent. Nobody's ever got numbers
Speaker 8: like that. Because we're bringing business back and they're all
Speaker 8: coming back. We lost them over years of stupidity. I
Speaker 8: call it the years of stupidity, the decades of stupidity.
Speaker 8: Through the Department of Government Efficiency, Elon Musk has been
Speaker 8: working very hard with various people including Vivek will go
Speaker 8: to eliminate hundreds of billions of dollars of wasting fraud,
Speaker 8: and I can only tell you, I'll give you a
Speaker 8: little early report. They're finding things that you wouldn't even believe.
Speaker 8: So we're looking to say, maybe two trillion dollars will
Speaker 8: have no impact.
Speaker 2: Actually it'll make life better, but it'll have no impact
Speaker 2: on people.
Speaker 8: It's not like we're we will never cut social security
Speaker 8: things like that. It's just waste, fraud and abuse. And
Speaker 8: we'll immediately restore the sovereign borders of the United States
Speaker 8: and stop illegal immigration, which is costing US I believe
Speaker 8: trillions of dollars a year. I think it's a cost
Speaker 8: that nobody's ever seen anything like it. I don't know
Speaker 8: how can you be satisfied releasing prisoners into the Uniteds.
Speaker 8: To think of this, you're releasing prisoners from jails all
Speaker 8: over the world, not just in South America, from the Congo.
Speaker 2: I would talk about it all the time.
Speaker 8: They're a very big sender of people, but from all
Speaker 8: over the world. They're sending prisoners out of their jails.
Speaker 8: Some of their jails are empty, and they will be
Speaker 8: empty soon. If this ever continued, I spoke with a
Speaker 8: president of Mexico, and as you know, I spoke with
Speaker 8: Justin Trudeau of Canada, and we told them, not fair,
Speaker 8: not right. Can't let these people come into our country.
Speaker 8: And they understand they're very much unnoticed and they're going
Speaker 8: to have to stop this from happening. They're going to
Speaker 8: have to stop it. We lose a lot of money
Speaker 8: to Mexico, We lose a lot of money to Canada,
Speaker 8: tremendous money. We're subsidizing Canada with subsidizing Mexico.
Speaker 2: That can't go wrong.
Speaker 8: Then I get along with the people of Mexico and
Speaker 8: Canada very well, but we can't let that happen. Why
Speaker 8: are we supporting and giving other countries hundreds of billions
Speaker 8: of dollars. It's not fair, it's not right, and the
Speaker 8: people of Mexico and Canada fully understand that. We've talked
Speaker 8: about it before, but now we're doing something about it.
Speaker 8: We started and then we had to fix the COVID situation,
Speaker 8: and that's what we did. But now we're doing it.
Speaker 8: We're doing it from the beginning. Howard will be largely
Speaker 8: in charge. We'll be working on her together. Howard's terrific
Speaker 8: he's done a fantastic job, and he's now we leave.
Speaker 3: President elect Donald Trump was discussing.
Speaker 4: How Lonk, of course, and he's been discussing tax cuts
Speaker 4: being promised, also asking on the current president Biden to.
Speaker 3: Stop selling the border wall parts.
Speaker 4: Is seeking a restraining order for border wall parts sales,
Speaker 4: he says, criticizing basically the administration's.
Speaker 3: Selling of border war parts. He says, they're going to be.
Speaker 4: Fighting as well what they call federal workers return to
Speaker 4: office waiver, and there's work underway to slash regulation more broadly.
Speaker 4: He named checks FIVEK and of course Elon Musk there
Speaker 4: and they made some progress as well in stopping the
Speaker 4: war in Ukraine.
Speaker 3: You want to go back to.
Speaker 4: Also, though, the business being announced by, of course, the
Speaker 4: CEO of SoftBank, Massioshi's son. He's the founder who's coming
Speaker 4: on to talk about the one hundred billion dollars that's
Speaker 4: going to be invested by soft Bank into the United
Speaker 4: States over the next four years, the one hundred thousand
Speaker 4: jobs made, and in fact, he was saying he's going
Speaker 4: to try and make it even bigger two hundred thousand potentially.
Speaker 4: Let's get to Mike Shephard and just let's focus first
Speaker 4: on the tech side of all of this, because.
Speaker 3: It's deja vous.
Speaker 4: We saw half the amount promised, and they are said
Speaker 4: to have been delivered by Massa back in twenty sixteen.
Speaker 1: This is an echo of what we saw eight years ago,
Speaker 1: almost to the day, when Masa Isshu saw him made
Speaker 1: this promise at Trump Tower of a fifty billion dollar
Speaker 1: investment with fifty thousand jobs. And as Peter our colleague
Speaker 1: discussed earlier in the program, he largely made good on that.
Speaker 1: Trump is putting him on the spot today a little
Speaker 1: bit already inking this one hundred billion dollar promise one
Speaker 1: hundred thousand jobs and trying to get him to double
Speaker 1: even that. And we heard Peter talk about how Masa
Speaker 1: issue Saw may not have all that much in the
Speaker 1: tank to be able to pull it off. But at
Speaker 1: the same time we heard Son talk about how he
Speaker 1: has such confidence in the incoming administration that maybe this
Speaker 1: will be a way to help him gain some of
Speaker 1: those investments and gain that capital needs.
Speaker 4: And the support of the next administration. The support of
Speaker 4: Donald Trump as president shouldn't come as a surprise, Mike.
Speaker 2: No, not at all.
Speaker 1: And what was interesting also is how the president After
Speaker 1: Somem left the stage, he talked about his commitment to
Speaker 1: trying to I guess, revive and reinvigorate the economy from
Speaker 1: the business perspective, not only by cutting corporate tax rates,
Speaker 1: but by trying to cut red tape. And just last
Speaker 1: week we heard him make the pledge that he reiterated
Speaker 1: today that anyone investing a billion dollars or more in
Speaker 1: the US would get speedier permit review. And that has
Speaker 1: been an issue that we've heard energy companies and even
Speaker 1: tech companies bring up. The tech companies that are getting
Speaker 1: into AI have such energy demands that they need for
Speaker 1: their data centers, and without that kind of support to
Speaker 1: speed those projects, they see their AI ambitions at risk
Speaker 1: of being slowed.
Speaker 4: We can indeed see onto social web. Presidentelect Trump had
Speaker 4: to discuss the one billion dollars or more that can
Speaker 4: be allocated to the United States and therefore getting that
Speaker 4: expedited approval and permitting. Mike, it is seemingly all about AI,
Speaker 4: all about energy when it comes to Mass's investment. Last time,
Speaker 4: it seemed to be a whole host of I mean
Speaker 4: people talking to the hundreds of companies that Soft Bank
Speaker 4: put money into it via the Vision Fund and indeed buys.
Speaker 3: Soft Bank directly.
Speaker 4: We already see this money being allocated to Open AI,
Speaker 4: for example. Are we expecting a mixture of startups and
Speaker 4: publicly traded companies? Is there anything discerning as to the
Speaker 4: direction of travel of which companies are going to be backed?
Speaker 1: You know, it's really tough to say right now exactly
Speaker 1: how this money would be applied if it refers back
Speaker 1: to already planned investments by soft Bank in other ventures
Speaker 1: and vehicles, we just don't have those details. And in
Speaker 1: a way, just like Trump's truth social post on cutting
Speaker 1: red tape and regulation, we really don't know exactly how
Speaker 1: he intends to do that either. So we're going to
Speaker 1: have to see how this unfolds. And there will be
Speaker 1: more to come from masseoshusan how much of this money
Speaker 1: gets deployed into the US, how quickly and toward whom?
Speaker 1: And I think there are a lot of startups, including
Speaker 1: people who have ties into the administration, who will be
Speaker 1: very interested in that kind of a partnership.
Speaker 4: Mike Shepherd always a joy. Thank you for breaking it
Speaker 4: all down. Meanwhile, coming up, we'll have plenty more on
Speaker 4: the future of the media landscape as well as costs
Speaker 4: of AI's power hungry features. More next this bloombag technology.
Speaker 4: We are watching bloombag technology right now and we're bringing
Speaker 4: you the latest out. Of course, Trump speaking in Mara
Speaker 4: Lago at a press conference discussing the future of TikTok
Speaker 4: at the moment, so keep a close eye. They said
Speaker 4: they're going to be taking a look at TikTok. We
Speaker 4: know at the moment that the TikTok it's elf did
Speaker 4: not get the pause that had wanted to see on
Speaker 4: the potential divestment or ban that is likely to come
Speaker 4: intoffect on January the nineteenth, the day before Trump is inaugurated.
Speaker 4: So taking a look at the social media platform TikTok
Speaker 4: will bring you any more breaking news coming from that
Speaker 4: press conference. But we want to check in on the
Speaker 4: markets because we are currently on the risk on attitude.
Speaker 4: We're up NASA one hundred almost a percentage point higher.
Speaker 4: Chip Make is Broadcom leading us on the higher side
Speaker 4: as well. We're seeing Bitcoin up some three four percent,
Speaker 4: a new record high. Once again, is MicroStrategy going to
Speaker 4: be inducted into the NASA one hundred More money therefore
Speaker 4: going there from allocated funds and what does that mean
Speaker 4: more money probably likely to be spent on bitcoin by
Speaker 4: that particular name. Meanwhile, we want to go back to
Speaker 4: what has been the story of the day, and it's
Speaker 4: investment into the United States as well, coming from SoftBank.
Speaker 4: Massa was just at that press conference in Marinaco, massasun
Speaker 4: of course CEO of soft Bank committing is going to
Speaker 4: try two hundred billion dollars, but he has committed to
Speaker 4: one hundred billion dollars of investment in AI and energy
Speaker 4: and infrastructure.
Speaker 3: That following on, of course, for the.
Speaker 4: Fifty billion dollars he promised back in twenty sixteen. ARM
Speaker 4: holding is interestingly down on the news. We're off by
Speaker 4: five percent. It happens to me having its day in court.
Speaker 4: We understand being reported that ARM and Qualcom had their
Speaker 4: first day in court. Of course ARM and qual Com
Speaker 4: buying over the future of their relationship. But maybe some
Speaker 4: hypotheticals as to what ARM would mean in terms of
Speaker 4: the ninety percent holding that SoftBank has in it if
Speaker 4: he's going to be raising more funds. Let's also discuss
Speaker 4: what it means to the investment landscape more broadly here
Speaker 4: in the United States at the moment from a VC perspective, Look,
Speaker 4: there's plenty of news when we're thinking about American AI startups,
Speaker 4: and we've got a perfect voice on the Excel partner.
Speaker 4: Mark Whiteground is with us today's VC spotlight.
Speaker 3: Matt, you are.
Speaker 4: Someone who's just been allocating interestingly to a public company
Speaker 4: is of course based in Europe, but thinking about AI infrastructure,
Speaker 4: about access to the cloud. Nimbus is the name of
Speaker 4: the company you're looking at, But you're also just thinking
Speaker 4: of the turf warfare that's out there to allocate money
Speaker 4: to generator AIAI.
Speaker 3: This is just going to add to the party.
Speaker 10: Right, Yeah, absolutely, Well, first, thanks for having me on.
Speaker 10: But we had Excel our big believers that we're only
Speaker 10: in the early innings of laying down the infrastructure that's
Speaker 10: going to be required to actually support this massive technological
Speaker 10: wave of AI. So this committed investment doesn't surprise me
Speaker 10: at all to see it coming in because we do
Speaker 10: need that infrastructure. So I'm excited to see more infrastructure
Speaker 10: being laid down for AI.
Speaker 4: Okay, where are you seeing the biggest opportunities. You've just
Speaker 4: made this allocation of funds into a publicly traded allocator
Speaker 4: of cloud. We've got Core, We've already out there as
Speaker 4: a big pivot from all these companies that we're looking
Speaker 4: at bitcoin mining and now getting into the world at
Speaker 4: cloud computing. But what next in terms of areas that
Speaker 4: you think are fruitful?
Speaker 7: Yeah, absolutely so.
Speaker 10: At Excel we broadly invest across two different facets of AI.
Speaker 10: We think about infrastructure, which ATBs is very much an
Speaker 10: example of that, also investing in companies like Scale AI
Speaker 10: in the infrastructure layer helping build the data engine for AI.
Speaker 10: But then we can't forget about the applications that are
Speaker 10: going to run on that infrastructure. So we see great
Speaker 10: opportunities in both enterprise and consumer applications. Our most recent
Speaker 10: investment in the consumer side of things was into a
Speaker 10: company called Speak, supporting language learning for AI.
Speaker 4: So that is the tussle right at the moment. There
Speaker 4: is an awful lot of money being allocated to building
Speaker 4: picks and shovels infrastructure, and many feel the valuations potentially
Speaker 4: have gone out of whack. There we now go into
Speaker 4: the killer applications that many are still waiting on. Do
Speaker 4: you think we're actually there and people aren't seeing the
Speaker 4: application and generator of AI right now?
Speaker 3: The real productivity games.
Speaker 10: Absolutely, we see it from the ground up, and we
Speaker 10: see companies that are gaining real traction and driving real
Speaker 10: value both in enterprise and consumer. So, although it is
Speaker 10: still the early innings and a lot of the emphasis
Speaker 10: has been on that infrastructure the training to get us
Speaker 10: to the point where we can actually run inference on
Speaker 10: these models and get the value out of them, I
Speaker 10: think you're going to start to see, particularly across twenty
Speaker 10: twenty five and twenty twenty six, applications spring up both
Speaker 10: in enterprise and consumer that drive real value.
Speaker 2: To the end user.
Speaker 4: But then when I think of enterprise, you've got salesforce
Speaker 4: all in on agent force, Who've got Microsoft trying to
Speaker 4: offerate so copilots. Where is the space or is it
Speaker 4: actually the all of these startups will end up being
Speaker 4: eaten up by these bigger enterprise companies.
Speaker 3: That's the EXO strategy.
Speaker 10: Yeah, it's a really good question. So speaking on the
Speaker 10: infrastructure layer with Nebus, what we actually see is that
Speaker 10: by pairing their four hundred software and hardware engineers against
Speaker 10: the problem of standing up infrastructure, but doing it with
Speaker 10: an AI specific approach, we're able to offer a level
Speaker 10: of flexibility that the large incumbents offering generalized clouds just
Speaker 10: don't have in the ecosystem today. So that means that
Speaker 10: people can come to us that need large amounts of compute,
Speaker 10: that want bare metal, and people can also come to
Speaker 10: us that just want an on demand, flexible experience with
Speaker 10: their infrastructure.
Speaker 3: So as always, you see.
Speaker 10: The innovation in their early startups tackling some of the
Speaker 10: holes and open opportunities in the large incumbents, and I
Speaker 10: expect to see the same thing. Salesforce obviously defending its territory,
Speaker 10: but we see a ton of activity and agentic approaches
Speaker 10: and apps going after their exact market, so we'll continue
Speaker 10: to see.
Speaker 4: It is a gentaki going to be the next sort
Speaker 4: of over allocated area.
Speaker 3: I mean, we've all got way too.
Speaker 4: In the weeds when it came to chip and semi
Speaker 4: conductors for twenty twenty four. When it comes to twenty
Speaker 4: twenty five, we're all going to be parlaying and ergentic AI.
Speaker 10: I don't think it's over hyped at all. I think
Speaker 10: in the reality is we're still in the early innings
Speaker 10: and the expectations are quite high on what agents are
Speaker 10: going to do within the enterprise. Application arena, and so
Speaker 10: it's easy to point at the flaws and agents today,
Speaker 10: but I tend to look at the progress of agents,
Speaker 10: and as an investor, I look at where value is
Speaker 10: going to be created over the next decade.
Speaker 3: And over the next.
Speaker 10: Decade, I think you're going to see really mature agents
Speaker 10: hit the market and scale in a meaningful way.
Speaker 4: Come when they're ready and fit for purpose and can
Speaker 4: talk to us a little bit more. Accel partner Matt
Speaker 4: Wagan fascinating across the infrastructure and now of course the
Speaker 4: application layer too. Let's just move to public markets for
Speaker 4: a moment, because the Nastik debut for tech startup service Titan,
Speaker 4: bringing big windfalls for early investors, includes more than one
Speaker 4: million dollars going to Iconic Growth for example, over eight
Speaker 4: hundred million going to best in my mention partners.
Speaker 3: This is all according to sources, and they told Katie Roof.
Speaker 4: Katie bring us the breakdown on who the big winners
Speaker 4: were on this a well, it was culse enlisting that
Speaker 4: popped so much that many would say that some money
Speaker 4: was left on the table.
Speaker 11: Sure, absolutely, so there's a few things to get at here.
Speaker 11: But so a service Titan, you know, they're an LA
Speaker 11: based software provider for like the plumbing industry, other home
Speaker 11: service providers. They've been around for a while, and so
Speaker 11: even though you know, they were valued pretty highly in
Speaker 11: some recent rounds, like you know, almost ten billion dollars
Speaker 11: because Iconic and Bessemer and Battery Ventures bought so many
Speaker 11: shares when it was such a young startup at a
Speaker 11: small price that you know, Iconic stands to gain over
Speaker 11: a billion dollars from this investment. I've confirmed Bessemers stands
Speaker 11: to gain over eight hundred million dollars because even though
Speaker 11: they have about nine hundred million dollars worth of shares,
Speaker 11: it cost roughly maybe sixty million to acquire those shares.
Speaker 3: For Bessemer.
Speaker 4: Kh ruth all things on some of the allocations and
Speaker 4: those that are reaping the rewards when it comes to
Speaker 4: the latest IPOs, we really appreciate it.
Speaker 3: Thank you coming out from LA.
Speaker 4: I mean, while coming up AI's energy demand shock more
Speaker 4: on how businesses are preparing for a future that requires
Speaker 4: more resources as of.
Speaker 3: Blue meg technology.
Speaker 4: The AI boom has caused one unintended consequence. Businesses, investors
Speaker 4: in society are now bracing for an energy demand shock
Speaker 4: that comes with utilizing the resource intensive features bluem excellent
Speaker 4: dwe joins US now for is a real deep dive
Speaker 4: into the implications of artificial intelligence, one that perhaps one
Speaker 4: MASSIVEUSI soun is looking to help finance some of the
Speaker 4: issues in these issues.
Speaker 12: Yeah, what a coincidental timing for US to have just
Speaker 12: put out this piece on the massive infrastructure demands of AI,
Speaker 12: and not just energy, right, we were talking about the
Speaker 12: demand on metals and mining, on land and real estate,
Speaker 12: on human beings, on data, on data centers, on steel, copper, gold, aluminum,
Speaker 12: and so if you put all of those together like
Speaker 12: we did in that massive AI supply chain piece that
Speaker 12: we did on Friday, you can understand and it's almost
Speaker 12: not surprising for someone like Massa to say, yeah, we'll
Speaker 12: drop one hundred million dollars in the US because they're
Speaker 12: going to need it. The whole industry is the whole
Speaker 12: industry is going to be a lot more than one
Speaker 12: hundred billion dollars. So one might argue that these plans
Speaker 12: have already been quite in the making.
Speaker 3: To that point.
Speaker 4: We've reported long and hard about Sam Altman trying to
Speaker 4: gather sort of a table of international investors wanting to
Speaker 4: bring on Yeah, coalition exactly, but how much are they
Speaker 4: looking on this being built in the United States?
Speaker 3: So how geopolitically expose can you still be? You know,
Speaker 3: that's a really good question.
Speaker 12: And I think that there is a narrative that is
Speaker 12: playing out in the tech community right now that acknowledges
Speaker 12: no specific country has all of the resources that are
Speaker 12: necessary to build and dominate AI as a hub, and
Speaker 12: so we will have to look for allies, We will
Speaker 12: have to look for coalitions among like minded countries. That
Speaker 12: is what the tech community and executives like open ai
Speaker 12: and Nvidia are telling the administration in DC that it's
Speaker 12: time to be thinking about how we can pull our
Speaker 12: resources to own this technology but also control it in
Speaker 12: the proper ways.
Speaker 3: Do you think your story is shocked anyone?
Speaker 12: Which, sorry, oh, I would hope So, I mean, I
Speaker 12: would hope that it's a wake up call that I think.
Speaker 12: If there is one message that I'd like to send
Speaker 12: out of that AI supply chain data visualization, it is
Speaker 12: that for all the talk of AI making the world
Speaker 12: more efficient, quicker, less human resources intensive, it is actually
Speaker 12: an incredibly resource intensive, inefficient technology.
Speaker 4: For now, at least Injuan. It's a great story, go
Speaker 4: read it. Meanwhile, that does it for this edition of
Speaker 4: New bag Technology you do not want to.
Speaker 3: Forget on podcast.
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