WEBVTT - Microsoft Points to Chinese Hackers in SharePoint Breach 0:00:00.080 --> 0:00:13.600 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.640 --> 0:00:17.440 from coast to coast, with Caroline Hyde in New York 0:00:17.720 --> 0:00:19.680 and Eva Low in Sent Francisco. 0:00:22.600 --> 0:00:24.280 This is Bloomberg Tech coming up. 0:00:24.320 --> 0:00:29.080 Microsoft accuses Chinese hackers of exploiting vulnerabilities in its SharePoint 0:00:29.200 --> 0:00:31.440 software that have led to breaches worldwide. 0:00:31.560 --> 0:00:34.720 Plus Open Ai and Oracle deepen their Stargate Data Center 0:00:34.800 --> 0:00:38.360 partnership to power AI work lanes, but no sign of 0:00:38.400 --> 0:00:41.400 soft Bank to help finance the US infrastructure, and. 0:00:41.479 --> 0:00:45.159 NXP gives a not so bullish third quarter forecast, suggesting 0:00:45.159 --> 0:00:48.440 the chip makers still contending with a turbulent industry in 0:00:48.479 --> 0:00:51.159 the face of tariffs. Microsoft our top story in a 0:00:51.200 --> 0:00:55.080 blog post, saying that state sponsored Chinese hackers are behind 0:00:55.120 --> 0:00:58.920 what's happening, and in particular the stock reacting level to 0:00:58.960 --> 0:01:01.720 the early in the session car a normalizing a little bit, 0:01:01.840 --> 0:01:02.800 but we've got to get into it. 0:01:02.920 --> 0:01:04.640 We do. Let's stick with that Microsoft story. 0:01:04.640 --> 0:01:07.080 But in Magistrate dreiberg joins us for the latest and 0:01:07.120 --> 0:01:09.920 these are known state actors, two of them and then 0:01:10.000 --> 0:01:12.199 one Chinese based actor. 0:01:12.240 --> 0:01:13.120 It would seem. 0:01:13.360 --> 0:01:14.840 Yes, that's exactly right. 0:01:14.920 --> 0:01:19.160 Microsoft said this morning that two groups backed by the 0:01:19.319 --> 0:01:25.560 Chinese government, silk Linen Typhoon and another group have been 0:01:25.600 --> 0:01:29.039 responsible for some of the exploitation of this vulnerability in 0:01:29.120 --> 0:01:34.200 its SharePoint software. We've also heard from other cybersecurity firms 0:01:34.440 --> 0:01:38.720 that they're seeing multiple different organizations sort of hack into 0:01:38.840 --> 0:01:41.840 businesses and governments based on this vulnerability. 0:01:42.560 --> 0:01:45.880 Jake, the top priority right now seems to be identifying 0:01:45.920 --> 0:01:48.600 the victims. Do we know what the kind of net 0:01:48.600 --> 0:01:51.600 result of this this hacking activity is? Who's been impacted? 0:01:52.040 --> 0:01:57.080 We know that the impacted organizations are ones that hosted 0:01:57.240 --> 0:02:02.000 SharePoint on their own servers. Seems to be a real 0:02:02.160 --> 0:02:08.440 smattering of different groups, government, agencies, businesses, other organizations all 0:02:08.480 --> 0:02:11.519 over the globe. We know that governments have been hit 0:02:11.800 --> 0:02:14.440 in the Middle East and in Europe and here in 0:02:14.440 --> 0:02:18.200 the United States. We also know of businesses and state 0:02:18.280 --> 0:02:20.200 level agencies that have also been hacked into. 0:02:20.880 --> 0:02:23.840 Microsoft for its part, say investigations into other actors are 0:02:23.840 --> 0:02:26.160 also ongoing. When it comes to the exploits, we could 0:02:26.160 --> 0:02:28.920 currently see what they've put out in a blog post, 0:02:29.280 --> 0:02:32.560 but more broadly, they acted swiftly to try and patch 0:02:32.680 --> 0:02:34.680 the issue for once in a server. 0:02:34.919 --> 0:02:37.600 That is the key concern exactly. 0:02:37.600 --> 0:02:41.560 We've seen warnings from cybersecurity companies that you don't just 0:02:41.639 --> 0:02:44.480 need to patch, you need to sort of hunt for 0:02:44.720 --> 0:02:47.840 whether your systems were penetrated and what they might have 0:02:47.880 --> 0:02:52.520 been taken. And a source told Bloomberg yesterday that the hackers, 0:02:52.520 --> 0:02:56.680 once getting in in some instances, are stealing log in credentials, 0:02:56.760 --> 0:03:00.640 user names, passwords, tokens, and that suggests that they may 0:03:00.680 --> 0:03:03.840 be trying to exploit that information to watch other attacks. 0:03:04.520 --> 0:03:06.920 Bloomboags Jake Bleiberg out of New York City, thank you 0:03:07.040 --> 0:03:10.680 very much. Meanwhile, shares an NXP semiconductor or trading lower today, 0:03:10.720 --> 0:03:14.520 the company posting third quarter forecasts that were less bullish 0:03:14.880 --> 0:03:17.280 than invested in anticipated. Then they went on to talk 0:03:17.320 --> 0:03:20.000 about the state of play in the automotive industry, which 0:03:20.040 --> 0:03:23.079 is fifty percent or more of their revenue. Bloombozy and King, 0:03:23.120 --> 0:03:25.800 who leads our chip coverages here, that'tually a pretty simple 0:03:25.880 --> 0:03:28.960 story right away from all the AI stuff, there's been 0:03:28.960 --> 0:03:33.120 a glut in inventory on automotive chips. NXP saying, look, 0:03:33.480 --> 0:03:35.880 it takes time to work through them, but for that 0:03:36.000 --> 0:03:38.240 industry and that key customer, the world's a bit uncertain 0:03:38.280 --> 0:03:38.880 as well. 0:03:39.080 --> 0:03:41.840 It absolutely is, and we'll hear from Texas Instruments in 0:03:41.840 --> 0:03:45.160 a similar vein later today. The cross currents are everything's 0:03:45.160 --> 0:03:48.120 supposed to be getting better. This kind of glow that 0:03:48.160 --> 0:03:50.360 we've had over the last couple of years is supposed 0:03:50.400 --> 0:03:52.520 to be going away. So we want you know, if 0:03:52.520 --> 0:03:54.200 you're an investor, you want them to be more bullish, 0:03:54.240 --> 0:03:57.400 you want them to be a bit more reassuring. That's 0:03:57.440 --> 0:03:59.640 not what happened for man XP. They said things are 0:03:59.640 --> 0:04:00.960 still had hanging around. 0:04:00.760 --> 0:04:03.680 And ian almost bullish is the wrong word for it. 0:04:03.720 --> 0:04:07.120 When revenue is down six percent for n XP and 0:04:07.160 --> 0:04:10.360 actually revenues have been down quarter after quarter. 0:04:10.160 --> 0:04:13.120 Right, Yeah, I mean what we'll have to look at. 0:04:13.160 --> 0:04:14.640 And this is why I think it's going to be 0:04:14.760 --> 0:04:17.680 useful to have Texas Instruments reporting today sort of back 0:04:17.720 --> 0:04:21.919 to back. Is this a customer related thing? Is NXP 0:04:22.400 --> 0:04:26.360 basically supplying automotive companies that are struggling more than others. 0:04:27.080 --> 0:04:31.000 Texas Instruments is a much broader supplier, has a bigger 0:04:31.040 --> 0:04:34.840 customer list and a bigger set of products, So that 0:04:34.920 --> 0:04:36.960 will give us a sense of whether this is a 0:04:37.080 --> 0:04:40.719 general automotive malaise, whether this is China related, whether this 0:04:40.800 --> 0:04:42.960 is Europe related, and we'll have a much clearer picture 0:04:43.040 --> 0:04:43.599 later today. 0:04:43.720 --> 0:04:45.279 I am going to dig into this a bit later 0:04:45.279 --> 0:04:48.800 in the program, but the Philadelphia Semiconductor Industry Index, sorry, 0:04:49.480 --> 0:04:52.520 is underperforming generally in NVIDEO and am D A big 0:04:52.600 --> 0:04:55.760 drags on that. The read through between NXP and those 0:04:55.760 --> 0:04:59.920 two is difficult for me to see. But generally speaking, 0:05:00.839 --> 0:05:04.320 away from those kind of ultra specialized and even analog chips, 0:05:04.360 --> 0:05:05.719 things are quite robust still. 0:05:06.120 --> 0:05:08.320 Yeah, I mean we've seen I mean you talk about 0:05:08.320 --> 0:05:10.280 the index, the index has done pretty well this year. 0:05:10.600 --> 0:05:12.440 There's a lot of money has been put to work. 0:05:12.720 --> 0:05:15.400 Everything we've heard so far and we'll hear more on 0:05:15.400 --> 0:05:18.039 on that vein as the inning season unfolds, is there's 0:05:18.080 --> 0:05:21.080 a lot of spending still going on on these large 0:05:21.160 --> 0:05:25.680 AI infrastructure systems, and we've heard nothing that's telling us 0:05:25.680 --> 0:05:28.560 that that's not going to continue. And that's really what's 0:05:28.560 --> 0:05:30.400 going to be the most important thing, and that's what's 0:05:30.440 --> 0:05:33.360 driven the socks so far. Analog has been a slightly 0:05:33.400 --> 0:05:36.200 different story, but again analog benefits from the server build 0:05:36.200 --> 0:05:38.800 out as well. You need these power related chips, you 0:05:38.839 --> 0:05:40.600 need these micro controllers as well. 0:05:40.960 --> 0:05:44.080 In king always with all the context, so appreciate it. 0:05:44.120 --> 0:05:47.640 Thank you. Let's dive deeper into the tech earnings, the 0:05:47.760 --> 0:05:50.320 vibe in the market right now, Anna Rathens with us 0:05:50.320 --> 0:05:54.480 founder and CEO of Grenna Dilla Advisory. Anna, your take 0:05:54.560 --> 0:05:57.359 here is that, yes, we're perhaps pulling back on the 0:05:57.440 --> 0:06:02.560 day somewhat nxp not resounding vealing of optimism, but we're 0:06:02.600 --> 0:06:04.880 still near all time highs and we've still got a 0:06:04.880 --> 0:06:06.760 four trillion dollar in video in our hands. 0:06:07.400 --> 0:06:08.240 Yeah, good morning. 0:06:08.920 --> 0:06:12.839 Markets are definitely the valuations are high. There's no slicing 0:06:12.880 --> 0:06:15.440 that in a different way. But I guess you know, 0:06:15.480 --> 0:06:18.159 you have to look at tech differently than we used to. 0:06:18.279 --> 0:06:21.520 So a lot of allocators and wealth advisors out there, 0:06:21.560 --> 0:06:24.839 we've been taught to look at tech as a growth sector. 0:06:25.279 --> 0:06:28.640 Perhaps it's more than that. So the AI component is 0:06:28.680 --> 0:06:32.560 definitely tech, but maybe there's also a quality factor there 0:06:32.600 --> 0:06:36.080 as well. Got healthy balance sheets, great cash flow, especially 0:06:36.080 --> 0:06:40.760 those mega companies, megacap companies. It's also got a defensive 0:06:40.800 --> 0:06:44.719 sector of characteristic as well. We learned that we cannot 0:06:44.760 --> 0:06:49.000 operate this economy and our society without tech infrastructure as 0:06:49.000 --> 0:06:52.440 well as software. So I think that when we're looking 0:06:52.560 --> 0:06:55.120 at tech, we have to look at it from multiple 0:06:55.200 --> 0:06:58.080 angles in order to perhaps try to explain some of 0:06:58.120 --> 0:07:01.680 this valuation. It's not just about AI froup. It's much 0:07:01.720 --> 0:07:02.159 more than that. 0:07:02.440 --> 0:07:05.920 But what's been interesting is the AI winners have powered 0:07:06.120 --> 0:07:08.280 forward on the twenty twenty five, and those winners have 0:07:08.400 --> 0:07:11.880 been deemed well the metas of this, Wells in videos 0:07:11.880 --> 0:07:14.760 of this, Wells Apple left for dust. In some ways, 0:07:14.800 --> 0:07:17.880 Alphabet has been a lagged too. How do we set 0:07:17.960 --> 0:07:19.800 up into Wednesday when we start to get a couple 0:07:19.840 --> 0:07:21.240 of those MACS seven names. 0:07:22.120 --> 0:07:25.640 Yeah, I think there's definitely a vifurcation in those MAC 0:07:25.720 --> 0:07:28.960 seven names. And right now it looks like the people 0:07:28.960 --> 0:07:32.240 who have really invested and gone forward with AIS are 0:07:32.280 --> 0:07:36.120 definitely winning. Now Alphabet, for example, will have different challenges, 0:07:36.240 --> 0:07:38.960 right Not only do they have some legal challenges, but 0:07:39.080 --> 0:07:40.720 you know, I don't know about you, but when I 0:07:40.760 --> 0:07:43.200 talk to my friends, they stopped using Google as a 0:07:43.200 --> 0:07:46.320 search engine. They're using chat, GPT. And I know that's 0:07:46.400 --> 0:07:49.120 just a few people around me and perhaps you, but 0:07:49.560 --> 0:07:52.200 those things can actually catch up. And I know Chetman 0:07:52.200 --> 0:07:55.040 and I is improving, but I think that's a real 0:07:55.720 --> 0:07:59.240 competitor there, and so AI is going to be more 0:07:59.240 --> 0:08:01.680 important going for work for some of these Max seven names, 0:08:01.720 --> 0:08:07.600 and I wouldn't expect disappointing report from them, but certainly 0:08:07.640 --> 0:08:10.000 I think investors can read between the lines. 0:08:10.640 --> 0:08:14.160 And I what's curious about this week is that on Wednesday, 0:08:14.200 --> 0:08:20.280 Alphabet and Tesla posts their earnings results right somewhat analogous companies, 0:08:20.600 --> 0:08:24.360 some differences, and on the same day we'll hear from 0:08:24.400 --> 0:08:28.960 the President about his vision for AI and American AI. 0:08:29.960 --> 0:08:31.920 It's going to be a wild ride for investors this week, 0:08:32.000 --> 0:08:32.360 isn't it. 0:08:33.600 --> 0:08:37.400 Well. You know, anytime anyone from the government talks about 0:08:37.440 --> 0:08:41.480 technology and AI and even bitcoin or blockchain, I get 0:08:41.520 --> 0:08:44.959 a little nervous because I think we have to tread 0:08:45.040 --> 0:08:47.760 very carefully here. We don't want to get in the 0:08:47.800 --> 0:08:50.880 way of innovation, and yet we want to protect consumers, right, 0:08:50.920 --> 0:08:53.640 So it's going to be a very It's going to 0:08:53.720 --> 0:08:56.760 be a balancing act for anybody who from the government, 0:08:56.800 --> 0:09:01.280 from the White House talking about AI and how America 0:09:01.360 --> 0:09:03.720 is going to be involved in the development of AI. 0:09:04.520 --> 0:09:06.680 I would go in with a little bit of a 0:09:06.720 --> 0:09:11.880 cautious view, and frankly, I'm expecting a lot of lofty statements, 0:09:11.880 --> 0:09:14.680 but the question always is how does this actually translate 0:09:14.800 --> 0:09:17.640 down to the day to day and actual software and 0:09:17.760 --> 0:09:20.400 make difference in our productivity. 0:09:21.320 --> 0:09:23.200 Let's bring it back to today's news. 0:09:23.480 --> 0:09:28.240 What did you learn about the near term and quantifileble 0:09:28.320 --> 0:09:31.679 impact of tariffs? You names like General Motors and NXP 0:09:32.440 --> 0:09:34.600 show us that actually something's happening here. 0:09:35.840 --> 0:09:38.200 Yeah, I mean something is happening there. We're talking about 0:09:38.240 --> 0:09:41.480 actual money, right. I mean, so for last week, if 0:09:41.520 --> 0:09:45.400 you think about the CPI and consumer sentiment, you didn't 0:09:45.400 --> 0:09:48.560 really see it, right, but you are seeing it in earnings. 0:09:48.559 --> 0:09:51.520 This is actual cash flow impacts. So I think this 0:09:51.600 --> 0:09:54.120 is going to trickle in as the quarter goes and 0:09:54.120 --> 0:09:57.000 give us a better view of exactly what areas of 0:09:57.040 --> 0:10:00.360 the economy are being impacted by tariffs. Who is is 0:10:00.440 --> 0:10:04.319 actually assuming some of those costs because GM actually came 0:10:04.360 --> 0:10:06.040 out and said we don't want to pass down all 0:10:06.080 --> 0:10:08.719 the costs to the consumers. So it'll be interesting to 0:10:08.840 --> 0:10:12.199 see how those things get I guess diversified into the 0:10:12.240 --> 0:10:15.560 supply chain and how GM and other companies actually manage 0:10:15.600 --> 0:10:16.400 those challenges. 0:10:16.679 --> 0:10:19.360 And going back to taras tarvis is all about the 0:10:19.440 --> 0:10:23.559 geopolitics that is currently involved in technology investing. I think 0:10:23.559 --> 0:10:25.880 of the geopolitics between US and China. I think of 0:10:25.920 --> 0:10:28.520 the latest news out of Microsoft blaming China for a hack. 0:10:28.760 --> 0:10:31.520 How much do you factor that into your current investment thesis? 0:10:31.520 --> 0:10:33.840 How much can you price that sort of geopolitics in? 0:10:35.240 --> 0:10:38.080 Yeah, I mean I never thought that this trade talk 0:10:38.120 --> 0:10:40.559 with China is going to be simple or smooth, right, 0:10:40.600 --> 0:10:44.600 and this is yet another twist in the plot. I 0:10:44.600 --> 0:10:49.080 would hold that August first deadline date really loosely in 0:10:49.120 --> 0:10:52.200 your hands, because you know, it was April first, and 0:10:52.240 --> 0:10:55.640 then or July ninth, and then now it's August first. 0:10:56.120 --> 0:10:59.480 I think that the Trump administration as well as China, 0:10:59.520 --> 0:11:01.840 I mean, they have a lot at stake here, so 0:11:02.000 --> 0:11:04.600 I don't think the deadline really matters. I think we're 0:11:04.640 --> 0:11:08.400 going to be negotiating until we actually get to a 0:11:08.480 --> 0:11:12.960 good place for both countries, and August first might coming. 0:11:12.800 --> 0:11:18.080 Go Anna Rathban, founder and CEO of Grenadilla Advisory, thank 0:11:18.120 --> 0:11:20.920 you very much for coming up. Oracle and open Ai 0:11:21.040 --> 0:11:24.160 is set to expand their partnership, opening up more data 0:11:24.240 --> 0:11:26.600 centers to satiate AI demand. 0:11:26.600 --> 0:11:29.480 We had the details next. This is Bloomberg Tech. 0:11:41.840 --> 0:11:44.360 Oracle along with open Ai have announced that they're set 0:11:44.360 --> 0:11:47.600 to develop four and a half gigawatts of additional US 0:11:47.679 --> 0:11:51.600 data center capacity. Let's bringing Bloomberg's Brodie Ford now on 0:11:52.000 --> 0:11:55.400 how the evolution of stargate is going. 0:11:55.200 --> 0:11:57.560 And who's involved and who isn't, because we'll get. 0:11:57.480 --> 0:11:58.680 To sort of bank in a moment the fact they 0:11:58.720 --> 0:12:00.640 don't seem to be on the page, but this is 0:12:00.679 --> 0:12:03.200 this component to what have ten giga? 0:12:03.400 --> 0:12:05.200 What's by four years time? 0:12:05.200 --> 0:12:07.160 They really seem to be building it out now, right, and. 0:12:07.120 --> 0:12:08.560 We can for get a giggle lot. 0:12:08.559 --> 0:12:11.320 I mean we're throwing these numbers around now, but you know, 0:12:11.360 --> 0:12:13.240 a couple of years ago you would never hear about 0:12:13.240 --> 0:12:15.120 a giggle wat data center, and now we're talking about 0:12:15.160 --> 0:12:16.800 four and a half. I mean each one of those 0:12:16.840 --> 0:12:19.640 about equivalent to a nuclear reactor. And so a four 0:12:19.679 --> 0:12:22.600 and a half gigawatt data center deal that's across the country. 0:12:23.040 --> 0:12:25.120 This is an unprecedented cloud deal. I mean, this is 0:12:25.240 --> 0:12:28.560 likely the largest single cloud deal ever signed. And so right, 0:12:28.600 --> 0:12:30.839 if your oracle, if you've been trying to tell people 0:12:30.880 --> 0:12:32.800 for many years, you're going to be a real cloud 0:12:32.800 --> 0:12:33.840 infrastructure player. 0:12:34.440 --> 0:12:35.720 This is a pretty. 0:12:35.400 --> 0:12:39.560 Resounding sign of confidence from the most important AI company 0:12:39.600 --> 0:12:41.440 at the moment, Berdie. 0:12:41.480 --> 0:12:44.120 The way we look at this is it it's confirmation 0:12:44.240 --> 0:12:47.880 of our prior reporting on the projects. But also, as 0:12:47.960 --> 0:12:52.040 Cara alluded to, some clarity on the bits that SoftBank 0:12:52.400 --> 0:12:55.079 is and is not financing absolutely. 0:12:55.200 --> 0:12:58.040 So it's very interesting because in January we saw you know, 0:12:58.120 --> 0:13:02.040 Larry Ellison, Sam Altman, and soft Bank sitting at the 0:13:02.040 --> 0:13:05.600 White House. Today, SoftBank doesn't appear to be too involved. 0:13:05.640 --> 0:13:07.880 They're not saying we're out for good. But this four 0:13:07.880 --> 0:13:10.560 and a half gigle walks, which likely gets those to 0:13:10.600 --> 0:13:13.800 around thirty billion a year, soft Bank is not involved 0:13:13.800 --> 0:13:16.920 in financing. Where does the rest of that money come from? 0:13:17.000 --> 0:13:19.360 That's going to be a big question in the following months, 0:13:19.440 --> 0:13:22.800 right because open Ai makes a lot of money, they're 0:13:22.800 --> 0:13:24.680 not making that much money to be able to just 0:13:24.720 --> 0:13:26.000 spend all this themselves. 0:13:26.400 --> 0:13:28.959 We're going to dig into more news miracle in a minute, 0:13:28.960 --> 0:13:31.439 but I just want to understand where we think these 0:13:31.520 --> 0:13:33.560 data centers are going to be. Do we have much 0:13:33.760 --> 0:13:35.959 detail on the timescale here as well? 0:13:36.200 --> 0:13:38.440 Every time I ask a source where the next data 0:13:38.480 --> 0:13:40.080 center is going to be, they tell me a different state. 0:13:41.160 --> 0:13:43.720 They're evaluating a lot of different states, a lot of 0:13:43.720 --> 0:13:46.720 different sites. If you've read an article that says, hey, 0:13:46.800 --> 0:13:49.240 they want to develop a multi giggle data center here, 0:13:49.720 --> 0:13:52.559 odds are that starting. It has evaluated this site, so 0:13:52.640 --> 0:13:53.760 I'm keeping my eyes out. 0:13:55.000 --> 0:13:57.560 Slightly smaller scale, but Oracle's also in talks around one 0:13:57.600 --> 0:14:01.320 hundred million dollar a year paramoun Skydanceteel, What do we 0:14:01.360 --> 0:14:02.480 need to know about that one? 0:14:02.679 --> 0:14:04.280 What you need to know is if your dad is 0:14:04.360 --> 0:14:06.880 Larry Ellis said, and he helps you buy something, you're 0:14:06.920 --> 0:14:08.920 going to have to kind of help buy some stuff 0:14:08.920 --> 0:14:12.280 from him as well, right, I mean Larry Ellison's son, 0:14:12.360 --> 0:14:15.440 David Ellison has been in the works to buy Paramount 0:14:15.440 --> 0:14:19.280 for a while and they're already having negotiations that assuming 0:14:19.320 --> 0:14:23.160 that deal goes through, Paramount will be a major OCI customer. 0:14:23.200 --> 0:14:25.680 They're going to put all of their CBS, NTV, it's 0:14:25.720 --> 0:14:27.640 a lot of assets, a lot of gigabytes, and they're 0:14:27.680 --> 0:14:30.920 going to be on Oracle servers doing best. 0:14:30.920 --> 0:14:33.000 Brady Ford, thank you really on top of this story. 0:14:33.040 --> 0:14:35.120 Thank you very much. Okay, we have another story. Some 0:14:35.240 --> 0:14:38.240 updates in the four billion dollar fraud case against the 0:14:38.400 --> 0:14:42.600 estate of deceased Autonomy founder Mike Lynch. A London judge 0:14:42.640 --> 0:14:46.320 ruled that HPE lost close to one billion dollars after 0:14:46.440 --> 0:14:50.320 buying Autonomy. Lynch's estate will face a claim for much 0:14:50.360 --> 0:14:52.880 of that sum after he lost a London fraud case 0:14:53.000 --> 0:14:56.480 along with the former CFO of Autonomy. The ruling suggests 0:14:56.840 --> 0:15:01.120 HPE will likely recain just a fraction of its total claim. 0:15:01.200 --> 0:15:04.080 The ruling comes less than a year after Lynch drowned 0:15:04.120 --> 0:15:06.600 when his yacht sank in a storm off the coast 0:15:06.760 --> 0:15:17.000 of Sicily. Poseidon has announced its raised fifteen million dollars 0:15:17.040 --> 0:15:19.800 in a seed round led by a sixteen Z crypto, 0:15:19.960 --> 0:15:23.520 as the company looks to tackle bottlenecks in AI training data, 0:15:23.560 --> 0:15:28.200 including IP safe resources. This particularly aimed at training data 0:15:28.240 --> 0:15:32.560 for robotics, multimodal models, and physical AI. Here with more 0:15:32.720 --> 0:15:36.280 is s y Le Poseidon President and CEO story The 0:15:36.360 --> 0:15:40.000 incubator behind Poseidon state of players really clear, right. AI 0:15:40.080 --> 0:15:44.240 models have become commoditized, compute costs have come down. But 0:15:44.280 --> 0:15:47.119 the bottleneck, as you see it and many others see it, 0:15:47.160 --> 0:15:47.840 is the data. 0:15:48.360 --> 0:15:51.960 You have a solution, yes, as you just wanted to 0:15:52.360 --> 0:15:56.200 put that into context again because now you know the 0:15:56.240 --> 0:15:59.680 previous generation of models. We're scraping the internets data, which 0:15:59.720 --> 0:16:01.600 is you know, you know you can scrape it all. 0:16:01.720 --> 0:16:05.160 But now AI is going to the physical world. It's 0:16:05.200 --> 0:16:08.680 the multimodel models, right, it's a robotics model, it's a 0:16:08.760 --> 0:16:12.720 video model, audio model, and this really real bottleleg is 0:16:12.720 --> 0:16:14.760 the data, as you said, because you know, you can't 0:16:14.800 --> 0:16:18.200 ask rate it illegally on the Internet, and a lot 0:16:18.240 --> 0:16:21.320 of times this data is very private. You know, there's 0:16:21.360 --> 0:16:25.320 a lot of IP safety concerns. And in that world, 0:16:25.480 --> 0:16:30.800 how do you coordinate the collection, labeling, curating of the data. 0:16:30.800 --> 0:16:35.520 And we're using actually crypto incentives to actually coordinate that 0:16:35.680 --> 0:16:37.080 massively label coordinator. 0:16:37.080 --> 0:16:40.080 So my next question was why is Andreson's crypto team 0:16:40.160 --> 0:16:43.880 backing you and not an AI specialist. 0:16:45.800 --> 0:16:47.400 Partner or a different firm. 0:16:47.880 --> 0:16:50.760 First of all, micro founder is a you know, robotics 0:16:50.760 --> 0:16:54.680 at UT Austin, and he's he's a big AI specialist 0:16:54.840 --> 0:16:57.120 who's been kind of working on this data licensing and 0:16:57.240 --> 0:16:59.400 data collection for the last ten years and even he 0:16:59.480 --> 0:17:02.560 thought about how do how do you incentivize data collection 0:17:02.680 --> 0:17:05.439 with data dividends? So you know, he he he's an 0:17:05.440 --> 0:17:08.520 AI expert in in this in this problem. But the 0:17:08.600 --> 0:17:11.359 reason why we are kind of they we think this 0:17:11.440 --> 0:17:14.520 is so so timely, is you know forty days ago 0:17:14.640 --> 0:17:18.639 actually meta semi a quiet actually as as you know, uh, 0:17:18.840 --> 0:17:22.280 scaling on as a data left a very huge vacuum 0:17:22.320 --> 0:17:25.199 in the space to actually for competitors and new players 0:17:25.240 --> 0:17:27.560 to come in. And if you look at scaleing on 0:17:27.840 --> 0:17:29.760 D I mean, I'm not trying to criticize, but they 0:17:29.800 --> 0:17:32.280 have to you know, make a lot of shell companies, 0:17:32.280 --> 0:17:34.800 work with shell companies and developing countries to actually coordinate 0:17:34.840 --> 0:17:37.719 this kind of digital sweatshop to make that happen. But 0:17:37.760 --> 0:17:40.320 the beauty of crypto is that it's still really good 0:17:40.320 --> 0:17:43.800 at coordinating incentives in a at a global scale and 0:17:43.880 --> 0:17:46.000 pay them instantaneously with stable coins or. 0:17:46.000 --> 0:17:47.240 Other type of cryptotokens. 0:17:47.320 --> 0:17:50.840 Right, And that is a very very huge advantage number one, right, 0:17:51.160 --> 0:17:54.920 And number two, not only that, what crypto and blockchain 0:17:54.960 --> 0:17:58.000 does is it is good at you know, putting this 0:17:58.160 --> 0:18:00.959 data and IP on an immedable ledger and track and 0:18:01.000 --> 0:18:03.960 attribute it and license it with small contracts. And that's 0:18:04.240 --> 0:18:08.119 those two are very very important advantage of crypto. Even 0:18:08.160 --> 0:18:12.879 where my co founder, Ai Specialist wants to actually use thistagnomogy. 0:18:12.480 --> 0:18:14.399 S ry, let's just go to the basics of the 0:18:14.480 --> 0:18:17.600 data that is needed. Here, I can see the crypto 0:18:17.640 --> 0:18:20.160 read across. I think of Vaccineinfinity, the game that when 0:18:20.600 --> 0:18:23.639 bananas in the Philippines years ago, how people wanted to 0:18:23.640 --> 0:18:26.720 play because they earned money in tokens via playing this 0:18:27.000 --> 0:18:30.960 crypto native game. You're going to use people, incentivize people 0:18:31.320 --> 0:18:34.000 to sort of video themselves in the real world, then 0:18:34.160 --> 0:18:37.359 ultimately helps Tesla build optimists in the real world. 0:18:38.440 --> 0:18:43.400 Yes, actually you hit on the right comparable. Ex Infinity 0:18:43.760 --> 0:18:47.320 was an example of coordinating this massive number of people 0:18:47.359 --> 0:18:49.840 in the Philippines and other types of developing country, other 0:18:49.920 --> 0:18:52.600 other developing countries to actually play games to ourn' tokens 0:18:52.680 --> 0:18:53.320 right in. 0:18:53.280 --> 0:18:54.000 The same way. 0:18:54.560 --> 0:18:57.400 Now, you know, when Tessa wants to train as human 0:18:57.440 --> 0:19:00.920 aid robot, they you know, even if you script the 0:19:01.040 --> 0:19:03.959 entire Internet's data, you can't actually have a testa robot 0:19:04.480 --> 0:19:07.639 holding a coffee cup, right because you know, you need 0:19:07.680 --> 0:19:11.960 a million angles of data to ecocentric video footage and 0:19:11.960 --> 0:19:14.960 a million different types of settings and that kind of data. 0:19:15.760 --> 0:19:19.280 Instead of actually hiring a shell company and they're having 0:19:19.320 --> 0:19:22.119 their share company hired, you know, tens of thousands of people. 0:19:22.520 --> 0:19:24.520 You can coordinate this at a mass skill and an 0:19:24.520 --> 0:19:27.720 instantaneously with a with crypto incentive. That's what we're doing. 0:19:28.240 --> 0:19:32.240 And let's talk about the end demand here. How many companies? 0:19:32.880 --> 0:19:36.280 Who is your ultimate provider? How do you then sell 0:19:36.320 --> 0:19:40.359 this aip this ip safe AI training data. 0:19:41.240 --> 0:19:44.119 Yeah, the reason why it's IP safe is that everyone 0:19:44.200 --> 0:19:47.399 who are actually contributing data, anyone can contribute this data 0:19:47.440 --> 0:19:50.320 anywhere around the world, right, and then actually set their 0:19:50.359 --> 0:19:54.160 licensing usage terms on the blockchain. And we are at 0:19:54.160 --> 0:19:57.080 the moment we're not completely centralized, and we are now 0:19:57.200 --> 0:20:00.119 going to launch a decentralize a deep in app in 0:20:00.119 --> 0:20:03.960 the center physical infrastructure app and fall that actually collects data, 0:20:04.760 --> 0:20:07.520 you know, puts this on the blockchain with the licensing 0:20:07.600 --> 0:20:10.080 terms in place. But at the moment, we're now actually 0:20:10.480 --> 0:20:15.440 acting as an agent to actually secure these contracts, and 0:20:16.040 --> 0:20:18.080 we already have a you know, we've already signed a 0:20:18.119 --> 0:20:19.720 contract and we cannot discuss. 0:20:19.400 --> 0:20:20.560 It at the moment, right, you know. 0:20:20.600 --> 0:20:23.480 And then I mean in the robotics relevant. 0:20:23.160 --> 0:20:27.760 Well, quickly, if scale AI, the scenario left a vacuum 0:20:27.800 --> 0:20:30.640 and you look to occupy that vacuum, how many phone 0:20:30.680 --> 0:20:34.040 calls have you had from the other frontier model makers 0:20:34.080 --> 0:20:36.440 that you could fit into their organization in the same 0:20:36.480 --> 0:20:37.720 way just thirty seconds. 0:20:37.880 --> 0:20:41.400 You know, actually many many organizations, And I was really 0:20:41.440 --> 0:20:44.359 surprised as C Stage company, they were willing to work 0:20:44.400 --> 0:20:46.640 with us because a lot of them were telling us 0:20:46.640 --> 0:20:48.880 that they were dropping contracts from SCALEI. 0:20:49.320 --> 0:20:51.520 But I meant in terms of you being acquired or 0:20:51.560 --> 0:20:52.680 you joining a bigger group. 0:20:54.280 --> 0:20:55.280 We don't have any plan. 0:20:55.640 --> 0:20:58.440 We don't have any plan. And we think the advantage 0:20:58.440 --> 0:20:59.960 of this open system is that we can work with 0:21:00.000 --> 0:21:00.520 any AI. 0:21:00.480 --> 0:21:04.800 Farmers, s y Lee, a Poseidon and Story. Great to 0:21:04.800 --> 0:21:05.520