WEBVTT - Intel Approaches Apple About Investment 0:00:02.520 --> 0:00:13.079 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a 0:00:13.160 --> 0:00:16.880 live from Coast to coast with Caroline Hyde in New 0:00:17.000 --> 0:00:19.520 York and Eva low In sentrancs go. 0:00:23.000 --> 0:00:26.200 This is Bloomberg Tech coming up. Bloomberg reports that Intel 0:00:26.239 --> 0:00:29.920 approached Apple about a possible investment and talks on the 0:00:29.960 --> 0:00:31.640 two working together more closely. 0:00:31.720 --> 0:00:33.360 We have the latest plus. 0:00:33.080 --> 0:00:34.400 A quantum breakthrough. 0:00:34.640 --> 0:00:37.280 HSBC said it achieved a world first and deploying the 0:00:37.360 --> 0:00:42.559 next frontier computing in financial markets using IBM's Heron processor. 0:00:42.920 --> 0:00:45.720 And Disney gears up for a legal fight with President 0:00:45.720 --> 0:00:48.760 Trump over the reinstatement of Jimmy Kimmel's show. 0:00:49.200 --> 0:00:51.320 At first, we check in on these markets, which if 0:00:51.320 --> 0:00:53.000 you're looking at as that one hundred and we are 0:00:53.080 --> 0:00:55.680 down for a third straight day, but only just We're 0:00:55.680 --> 0:00:56.639 still questioning the. 0:00:56.600 --> 0:00:58.040 Overall picture of valuations. 0:00:58.080 --> 0:01:00.040 We're still questioning what the inflation print on front and 0:01:00.160 --> 0:01:02.600 they will tell us, and we're still questioning more broadly 0:01:02.880 --> 0:01:05.720 how far we've run up in terms of this seismic 0:01:05.800 --> 0:01:07.160 moves on the S and P five frond in the 0:01:07.200 --> 0:01:09.560 NAST one hundred is still close to record highs. I'm 0:01:09.560 --> 0:01:11.959 looking though at crypto that's actually pulling down yet again. 0:01:12.200 --> 0:01:15.480 We've got a key exploration of options tomorrow. We're seeing 0:01:15.520 --> 0:01:17.640 some of those bullish bets coming out of Bitcoin and 0:01:17.720 --> 0:01:19.880 certainly of Eve were down another three point six percent. 0:01:19.880 --> 0:01:21.399 But what are looking at under the hood. 0:01:21.920 --> 0:01:23.240 Yeah, let's go to our top story. 0:01:23.440 --> 0:01:26.440 Shares of Intel markedly higher for most of the session, 0:01:26.480 --> 0:01:29.480 the only name on the Philadelphia Semiconductor Index in the green. 0:01:29.920 --> 0:01:35.320 Apple also higher. Bloomberg reporting Intel has approached Apple about 0:01:35.319 --> 0:01:38.639 the iPhone maker investing in it and held early talks 0:01:38.640 --> 0:01:41.320 on how the US tech firms could work more closely together. 0:01:41.400 --> 0:01:44.520 That's according to sources. Intel, which is now ten percent 0:01:44.600 --> 0:01:46.520 owned by the US government, is looking to make a 0:01:46.520 --> 0:01:49.800 comeback and has already secured investment from Nvidia in soft Bank. 0:01:49.880 --> 0:01:50.400 I want to go out to. 0:01:50.360 --> 0:01:53.720 Bloombo's Ryan Gull, who broke that story with the deal's team. 0:01:53.960 --> 0:01:57.600 Let's get the very specific details that we had from sources. 0:01:57.920 --> 0:01:59.080 These are early talks. 0:01:59.600 --> 0:02:02.480 What was the structure of what they discussed and what 0:02:02.520 --> 0:02:04.920 do we know about the status of those talks. 0:02:05.200 --> 0:02:07.840 Yeah, these are early talks. I would say there are 0:02:07.880 --> 0:02:11.480 still a few unknowns. There's no sense at this point 0:02:11.520 --> 0:02:13.800 what that investment could look like. There's definitely been some 0:02:13.840 --> 0:02:16.679 commentary this morning as people are sort of digesting this news, 0:02:16.680 --> 0:02:19.080 and you can see Intel shares are up some twelve 0:02:19.120 --> 0:02:22.880 percent or so over since yesterday and today as they 0:02:22.880 --> 0:02:25.320 think about what this could mean for both companies. I 0:02:25.320 --> 0:02:28.560 think if your Intel, you're looking at what it means 0:02:28.560 --> 0:02:31.160 to right size a balance sheet and your foundry effort. 0:02:31.480 --> 0:02:34.440 Could this mean Apple comes in and thinks about, you know, 0:02:34.560 --> 0:02:39.200 sending foundry chipwards to the two Intel's foundry potentially? Could 0:02:39.280 --> 0:02:41.760 this be something more on the product side. Could this 0:02:41.840 --> 0:02:45.519 be packaging for of some of Apple's advanced chips. Maybe, 0:02:45.600 --> 0:02:47.880 But these are early talks, and I think this just 0:02:47.880 --> 0:02:51.280 goes to show that Intel is being quite proactive, especially 0:02:51.560 --> 0:02:54.440 since the United States government took a stake of ten 0:02:54.440 --> 0:02:57.160 percent in an unprecedented move a few weeks ago. But 0:02:57.280 --> 0:02:59.480 I think, you know, at this point, I think people 0:02:59.480 --> 0:03:01.359 are looking at the this is a potentially positive move 0:03:01.400 --> 0:03:05.880 for Intel, maybe a little more of a middling slash, 0:03:06.120 --> 0:03:07.600 you know, a known move for Apple. 0:03:07.880 --> 0:03:10.120 Yeah, and that's reflected in the stock move there. We've 0:03:10.120 --> 0:03:12.120 got seventeen billion added in market oup to Intel. 0:03:12.200 --> 0:03:12.680 Less so for. 0:03:12.720 --> 0:03:15.520 Apple because well Apple at the moment designs its own chips, 0:03:15.520 --> 0:03:18.679 but looks towards TSMC for that. How much do we think, 0:03:18.720 --> 0:03:20.520 though the Apple's dialing in on the fact that they 0:03:20.560 --> 0:03:23.000 committed to six hundred billion dollars of investment in the 0:03:23.080 --> 0:03:23.760 United States. 0:03:24.040 --> 0:03:26.120 Listen, I think if you're Tim Cook and you're at 0:03:26.160 --> 0:03:27.600 the White House in front of Donald Trump a few 0:03:27.600 --> 0:03:29.520 weeks ago, saying that you're going to invest six hundred 0:03:29.560 --> 0:03:32.160 billion dollars over the course of a four year period. 0:03:32.800 --> 0:03:35.600 They already announced a two point five billion dollar investment 0:03:36.320 --> 0:03:39.240 package with Corning, which makes Apple's glass for most of 0:03:39.240 --> 0:03:42.280 its iPhones. You know, six hundred billion dollars is a 0:03:42.280 --> 0:03:44.400 lot of money, and you know if you think about 0:03:44.440 --> 0:03:47.400 how that could be deployed in the United States, as 0:03:47.480 --> 0:03:50.200 far as Apple's made in the United States pledge goes, 0:03:50.680 --> 0:03:53.720 this is about onshoring as much as it is about 0:03:53.720 --> 0:03:56.840 anything else. This is about satisfying the White House's plan 0:03:57.000 --> 0:04:00.600 to have American ships made in the United State dates 0:04:01.040 --> 0:04:05.119 and to sort of satisfy some risk as to concentration 0:04:05.320 --> 0:04:09.440 in Taiwan, where Apple in particular manufacturers most of its chips. 0:04:09.440 --> 0:04:10.000 A TSMC. 0:04:12.240 --> 0:04:15.600 For what it's worth, an Intel spokesperson declined to comment 0:04:15.640 --> 0:04:18.719 on our reporting, and Apple didn't respond to our request 0:04:18.760 --> 0:04:19.200 for comment. 0:04:19.440 --> 0:04:21.400 There's a history lesson that's important here. 0:04:22.240 --> 0:04:25.880 Apple, mostly in max but also in phones until twenty 0:04:26.000 --> 0:04:28.880 nineteen had a lot of Intel silicon in it. 0:04:30.000 --> 0:04:31.440 That relationships changed. 0:04:32.279 --> 0:04:35.240 Explain that same with Nvidia, you know, in video and 0:04:35.320 --> 0:04:38.320 Intel had a rivalry history history that's now changed. 0:04:39.320 --> 0:04:42.640 Yeah, I think that is a really important point to underscore. 0:04:42.960 --> 0:04:45.680 About five years ago, Apple decided that it was going 0:04:45.720 --> 0:04:49.080 to transition away from Intel, mostly because it felt that 0:04:49.160 --> 0:04:52.839 Intel's technology, the actual its actual processes to make some 0:04:52.920 --> 0:04:57.120 of these advanced chips wasn't satisfactory enough. So that was 0:04:57.200 --> 0:04:59.600 kind of a painful breakup for those two companies of 0:04:59.640 --> 0:05:01.919 relationsh ship that started as far beck as two thousand 0:05:01.960 --> 0:05:06.280 and five, when then CEO Steve Jobs transitioned away from 0:05:06.279 --> 0:05:08.920 power PC chips toward Intel. I mean, that was kind 0:05:08.960 --> 0:05:12.200 of a rough breakup as far as Intel's chip making 0:05:12.240 --> 0:05:13.800 ambitions in the United States went. 0:05:15.120 --> 0:05:17.839 Ron Gold, it's a great scoop. We thank you for 0:05:17.880 --> 0:05:18.360 breaking it. 0:05:18.320 --> 0:05:18.800 Down for us. 0:05:18.880 --> 0:05:20.240 Let's get an investor perspective here. 0:05:20.279 --> 0:05:23.000 Joanne Poeni's portfolio manager of Advisor's Capital Management. 0:05:23.160 --> 0:05:23.720 You've had a. 0:05:23.640 --> 0:05:26.839 Long history of studying semiconductors as well. At what point 0:05:26.920 --> 0:05:30.479 does Intel become interesting as an investment opportunity when the 0:05:30.520 --> 0:05:32.040 government seems to be backing. 0:05:31.800 --> 0:05:32.440 It so hard. 0:05:32.680 --> 0:05:35.080 Well, clearly the government is changing the game for Intel, 0:05:35.560 --> 0:05:38.320 but their challenges remain, and their challenges are on the 0:05:38.320 --> 0:05:42.919 innovation side. Their design plus manufacturing has run into trouble 0:05:42.920 --> 0:05:44.640 over the past few years, so much so that they've 0:05:44.680 --> 0:05:46.560 lost a lot of market share to A and B, 0:05:46.760 --> 0:05:49.120 and they failed to become a player in the AI 0:05:49.720 --> 0:05:53.240 advanced chips. No amount of government investment is going to 0:05:53.279 --> 0:05:57.040 make their engineer smarter or necessarily speed up innovation. Not 0:05:57.120 --> 0:05:59.400 throwing money at innovation means they can hire better people, 0:06:00.080 --> 0:06:02.800 so there might be some room to believe that their 0:06:02.960 --> 0:06:05.880 piece of innovation could improve from here, but they seem 0:06:05.920 --> 0:06:09.600 to have a long way to go. Having potential customers 0:06:09.680 --> 0:06:12.640 on the sidelines, whether that's a Nvidia or an Apple 0:06:12.920 --> 0:06:17.599 or others, will certainly encourage investors to take a harder look. 0:06:17.640 --> 0:06:21.760 But right now, an awful lot of assumed outcomes are 0:06:21.800 --> 0:06:24.039 built into the price of the stock, So it's not 0:06:24.160 --> 0:06:25.520 something more enthusiastic about. 0:06:26.560 --> 0:06:29.719 Joanne, You know this industry, you have deep history of 0:06:29.800 --> 0:06:33.320 covering semiconductors. You also know the names and the players 0:06:33.360 --> 0:06:37.359 behind the scenes. Right when this story broke. What was 0:06:37.360 --> 0:06:40.400 your interpretation, This is Intel going out there and shopping 0:06:40.440 --> 0:06:44.040 itself to try and save itself, or this is some 0:06:44.120 --> 0:06:47.599 kind of savvy and smart strategic play by lit bou 0:06:47.680 --> 0:06:48.960 tan Well. 0:06:49.080 --> 0:06:51.520 I think Intel has for a while been trying to 0:06:51.640 --> 0:06:55.520 find customers for its foundry plant, and we saw Pat 0:06:55.600 --> 0:06:58.720 Gelsinger do that earlier, and he was trying to build 0:06:58.760 --> 0:07:03.359 the fabs ahead of having customers. Libutan obviously is taking 0:07:03.360 --> 0:07:05.760 a more cost as approach, which I think investors welcome. 0:07:06.520 --> 0:07:10.120 The government money will help them maybe bridge the gap 0:07:10.160 --> 0:07:13.040 between getting those fabs up and running and having customers. 0:07:13.200 --> 0:07:13.920 I think it's smart. 0:07:13.920 --> 0:07:16.880 They should be talking to everybody that wants to diversify 0:07:16.880 --> 0:07:20.360 away from TSMC. For a long time, the geopolitical situation 0:07:20.440 --> 0:07:23.040 was fairly stable. I think now there are greater risks 0:07:23.200 --> 0:07:26.760 to that political situation and relying just on TSMC, even 0:07:26.800 --> 0:07:29.480 if it does have some manufacturing here in the United States. 0:07:30.080 --> 0:07:34.120 Leb Bhutan's real words were I'm not gonna build it 0:07:34.200 --> 0:07:36.320 and then wait for them to come. They've got to come, 0:07:36.320 --> 0:07:38.600 and then I'm going to build it, So there is, 0:07:38.800 --> 0:07:42.200 and then the White House jumped in. It is so 0:07:42.440 --> 0:07:46.240 much the national security focus, not only because of course 0:07:46.280 --> 0:07:48.320 one of the key plants that Intel was originally going 0:07:48.360 --> 0:07:50.400 to be focusing in on was in Ohio, and you 0:07:50.440 --> 0:07:53.640 know who's really rather focused on Ohio to the VP 0:07:54.200 --> 0:07:57.240 all of this though, do you think US can become 0:07:57.600 --> 0:08:02.240 a domestic chip making champion without TSMC without some sum. 0:08:02.680 --> 0:08:06.400 You know, Caroline, that's yet to be determined. Intel was 0:08:07.000 --> 0:08:10.040 a US manufacturing champion until they sort of went off 0:08:10.040 --> 0:08:15.520 the rails with some poor decisions on which direction to 0:08:15.640 --> 0:08:19.800 focus for chip manufacturing recipe development. They went down one path, 0:08:19.960 --> 0:08:23.480 TSMC went down another. TSMC was right, Intel was wrong, 0:08:23.560 --> 0:08:24.840 and now they're trying to make up. 0:08:24.720 --> 0:08:26.320 For that, and it's going to take time. 0:08:26.400 --> 0:08:30.600 And I think it's appropriate for potential customers to take 0:08:30.640 --> 0:08:32.920 a look at Intel, even if it's not this year 0:08:33.080 --> 0:08:35.720 or next year that they can be used, but even 0:08:35.720 --> 0:08:38.400 if it's five years from now. In chip design, you 0:08:38.520 --> 0:08:41.920 have to work with your manufacturer because the design details 0:08:42.320 --> 0:08:44.199 depend on the manufacturing recipe. 0:08:44.320 --> 0:08:45.360 So they need to start. 0:08:45.120 --> 0:08:48.120 Working together now, even if it's for manufacturing five years 0:08:48.160 --> 0:08:50.800 from now. So there's hope for Intel, but it's a 0:08:50.840 --> 0:08:53.560 little early, I think to be assuming that they're going 0:08:53.559 --> 0:08:53.839 to be. 0:08:53.800 --> 0:08:54.480 Successful in this. 0:08:55.440 --> 0:08:57.080 Joanne, I think I want to talk a little bit 0:08:57.080 --> 0:08:59.760 about the Apple side of this situation. 0:09:00.760 --> 0:09:01.560 Correct me if I'm wrong. 0:09:01.600 --> 0:09:04.480 I think Advisors Capital has like, let's say, a million 0:09:04.480 --> 0:09:08.360 shares of Apple across its different funds, right, and the 0:09:08.360 --> 0:09:11.600 reporting was really clear. This is Intel going to Apple, 0:09:11.920 --> 0:09:15.080 who bought the modem business from Intel in twenty nineteen anyway, 0:09:15.120 --> 0:09:17.200 and saying to them like you want to invest, like 0:09:17.280 --> 0:09:19.560 help us out. But Apple does so much of its 0:09:19.600 --> 0:09:22.320 own work in silicon Like do you see a rational 0:09:22.320 --> 0:09:23.840 for Apple to be like, yeah, you know what, let's 0:09:23.880 --> 0:09:24.120 do this. 0:09:25.040 --> 0:09:25.439 Yeah. 0:09:25.640 --> 0:09:27.400 Yeah, we have on Apple for a long time for 0:09:27.440 --> 0:09:31.360 our clients across various strategies. Some conservatives are more aggressive, 0:09:31.640 --> 0:09:34.520 but Apple is doing the smart thing here. And first 0:09:34.520 --> 0:09:36.480 of all, we don't know if this is these talks 0:09:36.480 --> 0:09:37.160 are actually happening. 0:09:37.200 --> 0:09:38.560 We don't know if they're going for advance. 0:09:38.880 --> 0:09:41.920 But you know, from Apple's perspective, it's no longer about 0:09:41.960 --> 0:09:45.559 the design of components for its iPhones and its max 0:09:46.480 --> 0:09:49.160 I would expect that this to be more about manufacturing. 0:09:49.800 --> 0:09:52.760 This potentially is a move for Apple to become diversified 0:09:53.200 --> 0:09:57.520 away from entire reliance on Taiwan semiconductor and to have 0:09:57.600 --> 0:09:58.920 a second manufacturer. 0:09:58.920 --> 0:10:00.600 They love to have second suppliers. 0:10:00.800 --> 0:10:02.839 They haven't been able to because Intel has been so 0:10:02.880 --> 0:10:06.439 far behind. If the belief now is that with government 0:10:06.480 --> 0:10:09.960 subsidies and government investments that Intel will have the time 0:10:10.040 --> 0:10:14.520 it takes to modify their manufacturing recipe and be able 0:10:14.559 --> 0:10:18.640 to roll out at capacity, you know, product for Apple 0:10:18.840 --> 0:10:20.360 n video you know who knows it? 0:10:20.440 --> 0:10:23.199 Who else? That would be very appealing, I would think 0:10:23.200 --> 0:10:23.840 to add Apple. 0:10:25.360 --> 0:10:29.200 Intel was founded in the sixties, right, and we're in 0:10:29.200 --> 0:10:33.200 a very different situation today. In nineteen ninety seven, Microsoft 0:10:33.240 --> 0:10:38.040 bailed out Apple. Funny things happen in technology in your career, 0:10:38.400 --> 0:10:41.120 This in video announcement with Intel, and now the reporting 0:10:41.160 --> 0:10:45.000 on Apple, these things that you see coming. 0:10:46.280 --> 0:10:50.079 Well, you know, we already saw that Intel had received 0:10:50.080 --> 0:10:55.120 a massive subsidy under the previous administration's Chip Act, so 0:10:55.160 --> 0:10:57.240 we knew Intel was getting this money. 0:10:57.600 --> 0:10:59.000 What's different now. 0:10:59.040 --> 0:11:02.360 Is the this administration has decided to turn the subsidy 0:11:02.400 --> 0:11:05.360 into an ownership stake, you know, which brings some returns 0:11:05.360 --> 0:11:08.360 back to the taxpayer. But also I think the second 0:11:08.360 --> 0:11:13.080 shoe to draw potentially our incentive's four potential customers of 0:11:13.120 --> 0:11:16.960 Intel to help Intel get to that point where they 0:11:16.960 --> 0:11:21.199 have manufacturing that's competitive with Taiwan's semiconductor. That's what's really 0:11:21.320 --> 0:11:25.640 changed today is the incentives circling around the whole industry 0:11:25.840 --> 0:11:28.160 to try to build up that domestic manufacturing. 0:11:28.520 --> 0:11:30.440 And that's a big change. 0:11:30.640 --> 0:11:33.360 I have to say as an investor, you look at 0:11:33.360 --> 0:11:36.920 what happened with Lithium America's yesterday, US reported to be 0:11:36.960 --> 0:11:38.240 looking at a stake in that company. 0:11:38.240 --> 0:11:39.520 The shares rocket ninety percent. 0:11:40.400 --> 0:11:42.160 The fact that they take a ten percent stake in 0:11:42.160 --> 0:11:44.680 Intel and suddenly the shares just go up into the right, 0:11:45.000 --> 0:11:47.800 Does it have to become part of your fundamental research 0:11:48.200 --> 0:11:50.680 that when the US government gets involved, it's very hard 0:11:50.760 --> 0:11:53.240 to bet against that stock or not be involved in it. 0:11:54.000 --> 0:11:54.200 Yeah. 0:11:54.280 --> 0:11:57.560 Fortunately, calling we're able to pick and choose stocks. We own, 0:11:57.600 --> 0:12:01.880 you know, forty to fifty equity positions in the different strategies, 0:12:02.120 --> 0:12:05.360 so we can choose not to be involved in companies 0:12:05.360 --> 0:12:07.800 for which you know, we think there's significant risk of 0:12:07.880 --> 0:12:10.240 government involvement because you just don't know which way it's 0:12:10.280 --> 0:12:13.080 going to go, and you know, some of these announcements 0:12:13.120 --> 0:12:17.160 have been pretty unpredictable. So fortunately there are plenty of 0:12:17.240 --> 0:12:20.040 places to invest where you don't have to be directly 0:12:20.080 --> 0:12:23.280 exposed to government risk. You know, we've owned Broadcom for 0:12:23.320 --> 0:12:25.960 a long time, you know, since since I joined the 0:12:25.960 --> 0:12:29.120 firm back in twenty fifteen, and they're doing just fine 0:12:29.120 --> 0:12:32.320 without any government involvement, and they are playing a bigger 0:12:32.320 --> 0:12:33.280 and bigger role in. 0:12:33.240 --> 0:12:34.280 The AI rollout. 0:12:34.360 --> 0:12:37.640 And let's just talk therefore about the context of the 0:12:37.720 --> 0:12:40.920 AI circularity that people have been worrying about, or just 0:12:40.960 --> 0:12:42.400 more broadly, the valuations. 0:12:42.640 --> 0:12:44.680 However, we are seeing bigger and bigger numbers. 0:12:44.760 --> 0:12:46.599 Yesterday was Ali Baba saying we think it's gonna be 0:12:46.640 --> 0:12:50.680 four trillion by twenty thirteen thirty. That goes into the 0:12:50.760 --> 0:12:52.160 need for AI compute. 0:12:52.320 --> 0:12:53.680 We do see a space where. 0:12:53.600 --> 0:12:56.120 Nvidia can win, maybe even md can win. Where we 0:12:56.160 --> 0:12:58.840 see custom asis win as well. Do you put your 0:12:58.840 --> 0:13:00.760 bets into all of these so do you have to 0:13:00.760 --> 0:13:02.600 focus in on the key win that thus far has 0:13:02.640 --> 0:13:03.360 been a video? 0:13:03.520 --> 0:13:05.320 Yeah, you know, I think carollin the way to play 0:13:05.320 --> 0:13:07.400 this is to recognize that this is a pie that's 0:13:07.520 --> 0:13:10.200 growing and that there'll be more and more players that 0:13:10.240 --> 0:13:12.320 take little slices here and there, and there may be 0:13:12.400 --> 0:13:14.960 some market share change. Right in, Nvidia is bound to 0:13:15.000 --> 0:13:20.120 lose some market share, not bound to grow less quickly necessarily, 0:13:20.400 --> 0:13:22.360 but bound to lose some market share. We know A 0:13:22.440 --> 0:13:25.880 and B has some good processors out there for AI workloads. 0:13:26.000 --> 0:13:29.160 We know that Broadcom is co developing with the likes 0:13:29.160 --> 0:13:33.040 of Google other ASK based processors. So I think there's 0:13:33.120 --> 0:13:35.720 room for a lot of players to participate. I think 0:13:35.760 --> 0:13:39.040 the wise investor will be a bit diversified. Don't just 0:13:39.120 --> 0:13:42.079 pick one, you know, pick a handful. There are startup 0:13:42.120 --> 0:13:45.240 companies that aren't available to us as public equity investors, 0:13:45.480 --> 0:13:49.400 but those are worth watching because they could become competition 0:13:50.000 --> 0:13:50.600 along the line. 0:13:50.679 --> 0:13:52.880 That wows, yeah, exactly. 0:13:53.160 --> 0:13:54.800 I think we have some years to go while this 0:13:54.880 --> 0:13:57.920 pie continues to expand. At least that's the information we 0:13:58.040 --> 0:14:01.479 have now, you know. Unfortunately, we don't have great information 0:14:01.600 --> 0:14:04.319 on how well the applications are turning out, how much 0:14:04.360 --> 0:14:07.480 money is being made, and that ultimately could sustain data 0:14:07.480 --> 0:14:09.720 center development in the future. But in the meantime, we 0:14:09.760 --> 0:14:13.840 also have sovereign wealth funds investing in building out data centers. 0:14:13.520 --> 0:14:16.920 So there's a lot for global growth here, Joanne. 0:14:16.920 --> 0:14:20.400 There are hundreds of billions of dollars committed to build 0:14:20.480 --> 0:14:24.000 data centers, and we know where the chips are coming from, 0:14:24.360 --> 0:14:27.000 and we know who's going to lease the capacity, but 0:14:27.040 --> 0:14:31.280 there are still so many missing pieces. Electricity the main one. 0:14:31.920 --> 0:14:36.640 I just don't understand if this is like people writing 0:14:36.760 --> 0:14:39.400 checks they can't cash, you know, in the future, because 0:14:39.440 --> 0:14:41.000 all the other pieces won't be there. 0:14:41.880 --> 0:14:42.080 Yeah. 0:14:42.200 --> 0:14:44.840 No, that's a really good point. And you know they're 0:14:44.880 --> 0:14:48.800 writing checks that nobody will take because there isn't the 0:14:48.960 --> 0:14:51.040 energy potentially to power the data centers. 0:14:51.200 --> 0:14:52.600 And that's why I like so much. 0:14:52.520 --> 0:14:58.160 The global spread of this, of this buildout. You know, Yes, 0:14:58.240 --> 0:15:01.240 in the US, right, we need we need to build 0:15:01.240 --> 0:15:04.600 more facilities for powering these and we're seeing the companies 0:15:04.640 --> 0:15:07.240 themselves get involved and that might very well be the 0:15:07.280 --> 0:15:09.160 solution in the US, but we're going. 0:15:09.080 --> 0:15:10.360 To get an awful lot more investment. 0:15:10.360 --> 0:15:12.560 And that's, by the way, why the AI so called 0:15:12.920 --> 0:15:18.560 investment team has spread beyond technology, it's into utilities, it's into. 0:15:18.360 --> 0:15:19.600 Even pipeline companies. 0:15:19.880 --> 0:15:22.480 Right, where is the demand spreading in addition to the 0:15:22.520 --> 0:15:26.400 applications and the global footprint will I think be fungible 0:15:26.520 --> 0:15:29.560 enough to allow the data centers to go where the 0:15:29.640 --> 0:15:32.680 power and the land is available. And so that's a 0:15:32.720 --> 0:15:36.360 way also to avoid those bottlenecks too. 0:15:36.440 --> 0:15:40.720 And Feeniev Advisors Capital Management robust, deep conversation. We appreciate 0:15:40.760 --> 0:15:42.880 it very much. Okay, we're going to get out. So 0:15:43.000 --> 0:15:47.120 conversation now with former New York Governor Andrew Cuomo on 0:15:47.200 --> 0:15:49.640 the state of New York City's mayor or race, and 0:15:49.680 --> 0:15:52.520 he is speaking to Bloomberg's David. 0:15:52.240 --> 0:15:55.200 Gura him up twenty five points to you. Of course, 0:15:55.240 --> 0:15:58.040 it's a four candidate race. How do you see the 0:15:58.040 --> 0:16:00.800 path forward here given the polling and where things stand. 0:16:00.840 --> 0:16:03.040 I should note that the polling hasn't changed a tremendous 0:16:03.040 --> 0:16:03.920 amount in recent weeks. 0:16:04.160 --> 0:16:08.880 Yeah, it will change dramatically. What you see in the 0:16:08.920 --> 0:16:13.080 polls is Mam Dami is always about forty percent. 0:16:13.800 --> 0:16:15.080 That leaves sixty percent. 0:16:15.120 --> 0:16:18.960 As you accurately pointed out, you have a multi candidate field, 0:16:19.040 --> 0:16:22.200 so four people or three people who are breaking up 0:16:22.200 --> 0:16:25.160 that sixty percent. I don't think you're going to wind 0:16:25.280 --> 0:16:28.240 up ultimately with that larger field. 0:16:28.320 --> 0:16:29.960 I think the field is going to collapse. 0:16:30.480 --> 0:16:32.840 I think it's going to come down to me versus 0:16:33.000 --> 0:16:37.560 mister Mammdanni. And as I said, Mamdanni has forty percent 0:16:38.280 --> 0:16:43.160 his very radical ideas which are exciting to one group 0:16:43.160 --> 0:16:47.480 of the population, especially young people, but are polarizing to 0:16:47.600 --> 0:16:50.680 many other people. And I think it's going to come 0:16:50.680 --> 0:16:52.760 down to a one on one and then it is 0:16:52.800 --> 0:16:54.720 a totally different race. 0:16:55.400 --> 0:16:58.040 Curtisly with the Republican candidate says he's not dropping out. 0:16:58.080 --> 0:17:00.680 The incumbent mayor Eric Adam says he's not dropping out. 0:17:00.880 --> 0:17:04.320 We've passed the ballot deadline. If we were to have 0:17:04.359 --> 0:17:07.320 a race where it's you against or Mandani, poles still 0:17:07.320 --> 0:17:09.960 show him leading you by a substantial amount. What do 0:17:10.000 --> 0:17:12.440 you see in the electorate that the data aren't shown 0:17:12.440 --> 0:17:14.200 when it comes to that particular configuration. 0:17:14.240 --> 0:17:19.320 Yeah, well, polls are historically wrong, especially this year, especially 0:17:19.359 --> 0:17:23.600 in New York. On your first point, you can stay 0:17:23.800 --> 0:17:26.680 in the race. First of all, technically nobody can get 0:17:26.720 --> 0:17:31.080 off the ballot, right. The question is are you viable 0:17:31.200 --> 0:17:34.800 in the race, And you kind of people who are 0:17:34.800 --> 0:17:38.760 in the race, but the voters just think they're not 0:17:38.840 --> 0:17:41.520 really competitive, they can't win. I'm not going to waste 0:17:41.560 --> 0:17:44.080 my vote, and I think that's what happens here. I 0:17:44.080 --> 0:17:47.280 think it comes down to me and Mamdani. I think 0:17:47.280 --> 0:17:53.639 when people understand what Mamdani stands for, besides what he 0:17:53.720 --> 0:17:59.000 has said on TikTok, you know he's anti police. This 0:17:59.160 --> 0:18:03.199 band the police legalized prostitution, didn't legalize the drug trade, 0:18:03.240 --> 0:18:04.600 abolish jails. 0:18:05.280 --> 0:18:07.800 You know, this would be anarchy in New York. 0:18:08.680 --> 0:18:11.760 Socialism does not work in New York City. 0:18:11.760 --> 0:18:12.640 It's antithetical. 0:18:12.680 --> 0:18:18.679 We're the business capital, right, We're pro business. Business is 0:18:18.720 --> 0:18:22.520 the engine that drives the train. So none of that 0:18:22.640 --> 0:18:26.440 has been communicated yet, and when it does, I can 0:18:26.560 --> 0:18:30.040 tell you the minds will change. 0:18:30.440 --> 0:18:32.840 Is there an effort by you and your campaign to 0:18:32.880 --> 0:18:35.320 try to convince Eric Adams or Curtiously would a drop 0:18:35.359 --> 0:18:37.600 out of this race, or their conversations that are happening 0:18:37.640 --> 0:18:39.760 behind the scenes to make what I imagine you see 0:18:39.760 --> 0:18:41.720 as a compelling case for them to step aside to 0:18:41.720 --> 0:18:43.280 make this more of a one on one race. 0:18:43.760 --> 0:18:46.399 No, I'm sure they're making their own decisions. I've been 0:18:46.440 --> 0:18:51.080 in elections that where I have dropped out because I 0:18:51.240 --> 0:18:55.760 thought it was the right thing to do. They have 0:18:55.880 --> 0:19:00.399 a decision to make. There is no apparent path to 0:19:00.640 --> 0:19:05.240 victory for them, They in essence would act as a spoiler. 0:19:06.640 --> 0:19:09.679 And that's a decision they have to make. They have 0:19:09.720 --> 0:19:12.720 to make it personally, and that's their business. But again, 0:19:13.320 --> 0:19:14.639 I think it's going to come down to a two 0:19:14.680 --> 0:19:18.679 person rais no matter what, because that's what the polls 0:19:18.720 --> 0:19:22.040 are going to say, and that is the choice. I 0:19:22.080 --> 0:19:25.280 am a Democrat, my father was a Democrat. I worked 0:19:25.320 --> 0:19:29.840 for Bill Clinton. Zoran is a socialist they call them 0:19:29.880 --> 0:19:35.720 to democratic socialists, right, didn't support Democrats, that Barack Obama 0:19:35.760 --> 0:19:40.080 was a liar and evil, and didn't support Kamala Harris 0:19:40.160 --> 0:19:47.040 against Trump. Right, So this is a very different This 0:19:47.200 --> 0:19:49.960 is apples and oranges between the two of us. 0:19:50.000 --> 0:19:51.680 I want to ask you about some comments that Curtis 0:19:51.760 --> 0:19:54.040 Lee we made yesterday. I'm sure you heard them. He 0:19:54.080 --> 0:19:57.360 was campaigning and suggested that your affiliates of your campaign 0:19:57.920 --> 0:20:00.919