WEBVTT - Nvidia's AI-Fueled Blowout Earnings 0:00:01.360 --> 0:00:05.680 This is Bloomberg Business. Wait inside from the reporters and 0:00:05.880 --> 0:00:09.479 editors who bring you America's most trusted business magazine, plus 0:00:09.520 --> 0:00:13.680 global business finance and tech news. The Bloomberg Business Week 0:00:13.720 --> 0:00:19.000 Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. 0:00:20.520 --> 0:00:21.759 Well, we want to get back to one of our 0:00:21.760 --> 0:00:22.600 big stories of the day. 0:00:22.600 --> 0:00:25.960 It started last night after the close, when Nvidia reported 0:00:26.000 --> 0:00:28.840 their latest quarterly update. The stock did hit a record. 0:00:29.200 --> 0:00:32.199 In today's trading, it's definitely backed off at ties of 0:00:32.240 --> 0:00:35.400 the session, and though still I will say, like Bloomberg 0:00:35.440 --> 0:00:37.640 has been writing about how it's kind of increasingly growing 0:00:37.640 --> 0:00:41.800 into its scorching valuation every time the chip maker reports earnings. 0:00:41.840 --> 0:00:44.200 Well, that's because it's forecasts of really dwarfed Wall Street 0:00:44.200 --> 0:00:47.000 projections by so much that estimates used to value the 0:00:47.000 --> 0:00:50.520 stock have risen faster than in video shares. It's price 0:00:50.560 --> 0:00:53.520 relative Carol to projected profits that's fallen below thirty nine 0:00:53.560 --> 0:00:56.600 times after it delivered its latest eye popping projection last night. 0:00:56.640 --> 0:00:59.880 That's down from sixty three times before it's May earnings report. 0:01:00.000 --> 0:01:01.360 One last thing, we just talked about it with our 0:01:01.400 --> 0:01:04.400 TV colleagues. The last research firm with the equivalent of 0:01:04.400 --> 0:01:07.040 a celebrating on Nvidia throw in the towel morning Star 0:01:07.160 --> 0:01:09.800 upgrading the chip maker to hold, saying it is much 0:01:09.840 --> 0:01:12.360 more optimistic about the rise of AI workloads and how 0:01:12.480 --> 0:01:16.480 NVIDIAs whyd note should cement itself as an AI chip leader. 0:01:16.560 --> 0:01:19.240 All right, morning Star, jumping on the train with more 0:01:19.280 --> 0:01:21.600 on the company's fundamentals and roll in the semi space 0:01:21.640 --> 0:01:23.360 and the race for all things AI. With us, we 0:01:23.360 --> 0:01:26.480 got Bloomberg News US semi conductor and networking reporter Ian King. 0:01:26.800 --> 0:01:29.679 Also with US Bloomberg Intelligence, a senior semi conductor analyst 0:01:29.800 --> 0:01:33.320 Kun John Sabani, both from our San Francisco bureaus. You know, 0:01:33.360 --> 0:01:34.720 I want to start with you because you've got some 0:01:34.800 --> 0:01:38.920 news post earnings on the company. A big concern that 0:01:39.000 --> 0:01:41.640 a lot of observers have is of a chip shortage. 0:01:41.680 --> 0:01:45.840 Of course, in Vidia relying on TSMC and Samsung for components. 0:01:46.319 --> 0:01:49.320 What did you hear from the CEO, Jensen Huang when 0:01:49.320 --> 0:01:49.960 you asked about this? 0:01:50.760 --> 0:01:54.120 Yeah, I mean really, this was the big thing coming 0:01:54.120 --> 0:01:56.240 in two innings was would they be able to get 0:01:56.360 --> 0:01:58.960 enough chips? There wasn't really that much concern about demand, 0:02:00.080 --> 0:02:02.920 and you know, how to Chavel Johnson afterwards, and he said, look, 0:02:02.920 --> 0:02:05.600 we've been really really working very hard on this. This 0:02:05.640 --> 0:02:08.280 is you know, kind of a major priority for us, 0:02:08.320 --> 0:02:10.880 and here's the progress and we're going to continue to 0:02:10.960 --> 0:02:13.840 keep doing that. And you know, they gave details about 0:02:14.800 --> 0:02:17.800 you know, they see supply increasing for them every quarter 0:02:17.960 --> 0:02:20.640 well into next year, which is really what investors wanted 0:02:20.680 --> 0:02:21.000 to hear. 0:02:22.440 --> 0:02:25.160 Interesting, all right, So Kondan come on in on this. 0:02:25.720 --> 0:02:31.840 Ian definitely highlighting certainly the concern about uh Nvidia. Your 0:02:31.880 --> 0:02:35.080 take on what you heard, what Ian just talked about, 0:02:35.080 --> 0:02:37.880 and just the overall report and outlook. 0:02:38.760 --> 0:02:40.880 Like and the same in the same lines. You know, 0:02:41.000 --> 0:02:44.200 going into the earnings, there were two key factors that 0:02:44.240 --> 0:02:46.959 we outlined in our preview that investors will be looking for. 0:02:47.440 --> 0:02:51.280 One is supply getting better, which they did announce and validated. 0:02:51.680 --> 0:02:55.480 And second was giving some kind of a moment more 0:02:55.600 --> 0:02:59.400 faith to this sustainability of the AI demand, which they 0:02:59.400 --> 0:03:03.520 again highlight to put in context. Data center segment was 0:03:03.639 --> 0:03:07.600 already expected to grow sequentially close to ninety percent, an 0:03:07.639 --> 0:03:11.880 ambitious gold that's something you don't hear regularly. They ended 0:03:11.960 --> 0:03:15.240 up growing one hundred and forty percent. So I think 0:03:15.400 --> 0:03:18.880 this gives some ease that this demand rally does have legs. 0:03:19.800 --> 0:03:23.440 So when the CEO also then founder Jensen Wong says, 0:03:23.520 --> 0:03:26.919 the shift to AI is only beginning. I mean, Ian, 0:03:27.040 --> 0:03:29.080 how do you think about kind of what else is 0:03:29.120 --> 0:03:31.400 to come here? And you know, I was talking with 0:03:31.480 --> 0:03:34.079 some folks here in our newsroom and they said, you know, 0:03:34.120 --> 0:03:35.840 what happens a year from now when those year over 0:03:35.920 --> 0:03:38.960 year comparisons become tougher for the company. Can it really 0:03:39.520 --> 0:03:41.520 continue with this momentum? 0:03:42.040 --> 0:03:44.480 No, I think you've nailed it there with that question. 0:03:44.560 --> 0:03:49.280 This was another magic concern is sustainability. He gave some commentary. 0:03:49.280 --> 0:03:52.360 He said, Look, data centers don't get built over night, right, 0:03:52.720 --> 0:03:55.400 These these things take months, if not years. We know 0:03:55.600 --> 0:03:59.360 our customers plans, so we've got that. You know that 0:03:59.360 --> 0:04:03.200 that wouldn't have of what we know is exactly what's 0:04:03.240 --> 0:04:05.920 going to happen. But in the sort of bridger terms, 0:04:05.960 --> 0:04:08.440 he made the point in the conversation I had with him, 0:04:08.480 --> 0:04:11.720 which is like, look, it's great if chat GPT helps 0:04:11.760 --> 0:04:14.000 a few knowledge workers to write a bit better code, 0:04:14.120 --> 0:04:17.680 helps a few consumers to you know, write an essay 0:04:17.839 --> 0:04:19.520 or help them with an email or something like that. 0:04:19.600 --> 0:04:23.280 But that's all it is. That's not fantastic. What he 0:04:23.360 --> 0:04:26.240 said was what gets him more excited. What he's working on, 0:04:26.320 --> 0:04:28.120 what he thinks needs to happen is it has to 0:04:28.160 --> 0:04:34.080 become entrenched in the economy. Large, heavy industries have to 0:04:34.240 --> 0:04:37.520 transition to using this technology to help with their operations, 0:04:37.560 --> 0:04:40.960 to help with productivity. He's working on that. He's working 0:04:40.960 --> 0:04:43.920 on making that easier for them. As that happens, this 0:04:44.040 --> 0:04:49.240 technology broadens its basis and becomes more pervasive and becomes, 0:04:49.400 --> 0:04:52.440 you know, clearly something that isn't as ephemeral as some 0:04:52.480 --> 0:04:53.680 people would like to believe it. 0:04:53.680 --> 0:04:55.599 Is, Kun John, I want you to hit on that 0:04:55.680 --> 0:04:57.800 a little bit. It makes me think of a conversation 0:04:57.880 --> 0:04:59.640 that had years ago with a friend who worked at 0:04:59.640 --> 0:05:02.360 one of the tech firms. She told me that technology 0:05:02.440 --> 0:05:04.599 was no longer this sector. It was like this layer 0:05:04.600 --> 0:05:07.080 that kind of permeates every little bit of our lives. 0:05:07.080 --> 0:05:08.920 You know, we're on our smartphones doing these things. We're 0:05:08.920 --> 0:05:12.560 at the doctor's office, the doctor's using technology, and it's 0:05:12.560 --> 0:05:17.280 this overarching term, Kun John, what happens Does AI ever 0:05:17.360 --> 0:05:19.560 get to that level and what does it look like 0:05:19.600 --> 0:05:22.480 in a day to day life beyond the beyond industry, 0:05:22.520 --> 0:05:23.320 beyond factory. 0:05:24.480 --> 0:05:27.080 I mean, look, from our perspective, we think of this 0:05:27.279 --> 0:05:30.320 as the when when you had the Internet come in, 0:05:30.400 --> 0:05:33.400 right when you had the iPhone come in. Those technology 0:05:33.440 --> 0:05:36.919 inflection points had a long cycle, almost like a decade 0:05:37.160 --> 0:05:40.600 before it hit a platu. So we think this is 0:05:40.640 --> 0:05:44.520 in the very early innings. This definitely has the ability 0:05:44.680 --> 0:05:48.200 to permeate into our everyday lives. You know, the next 0:05:48.400 --> 0:05:52.279 big step would be large language models or generative AI 0:05:52.440 --> 0:05:56.000 running on your smartphones. So there's definitely room for this 0:05:56.160 --> 0:05:58.120 run here well. 0:05:58.279 --> 0:06:00.520 And I do wonder you know need and we talked 0:06:00.520 --> 0:06:04.839 about this already with you yesterday, and just this concern 0:06:05.120 --> 0:06:07.680 that how do we make sure we continue to be 0:06:07.960 --> 0:06:11.400 smart and now get caught up in the euphoria And 0:06:11.400 --> 0:06:13.960 that's what I think about constantly. Is there a chance 0:06:14.400 --> 0:06:16.960 that some of this optimism doesn't play out? Or does 0:06:17.000 --> 0:06:19.440 this feel like yeah, this makes sense, especially in a 0:06:19.480 --> 0:06:22.800 world where there's so much data and we continue to 0:06:22.839 --> 0:06:25.039 get smarter. It's not just a dump of data, but 0:06:25.080 --> 0:06:27.760 we continue to fine tune it and make it work 0:06:28.040 --> 0:06:29.360 better and smarter for us. 0:06:30.680 --> 0:06:33.719 I mean, again, I think that's a very poignant question, 0:06:33.920 --> 0:06:35.720 and you know, We went through this with the dot 0:06:35.800 --> 0:06:38.560 com bust, and that's obviously something that people are drawing 0:06:38.560 --> 0:06:42.120 parallels with. What I would give you as a response 0:06:42.160 --> 0:06:45.160 to that, and what I'm hearing is like, look, AI 0:06:45.240 --> 0:06:48.720 as a concept, which is basically statistical analysis, has been 0:06:48.760 --> 0:06:51.159 around for a long time. The algorithms that we're using 0:06:51.520 --> 0:06:53.080 now have been around for decades. 0:06:53.240 --> 0:06:53.440 Right. 0:06:54.040 --> 0:06:58.200 What's changed is the data that we can now tap 0:06:58.400 --> 0:07:01.960 to use them and the power that we now have 0:07:02.360 --> 0:07:04.719 that can actually make that happen. I mean, we just 0:07:04.760 --> 0:07:07.960 talked about smartphones, right, smart Imagine something that you're carrying 0:07:08.000 --> 0:07:11.200 in your pocket is capable of taking massive amounts of 0:07:11.280 --> 0:07:14.480 data that you're generating just by living and walking around 0:07:14.680 --> 0:07:17.520 and turning that into something useful and productive that helps 0:07:17.560 --> 0:07:20.800 you with your life. If that happens, and that's what 0:07:20.800 --> 0:07:24.800 we're moving towards, and that's creating economic value. And I 0:07:24.800 --> 0:07:26.360 think that's the key. If you look at all of 0:07:26.400 --> 0:07:30.520 these applications that are being proposed, whether it's drug discovery, 0:07:31.080 --> 0:07:35.920 whether it is you know, factory planning, whether it's you know, 0:07:36.000 --> 0:07:39.880 designing robots, whatever it is, if there is genuine economic 0:07:39.960 --> 0:07:43.280 value and efficiency and production to be created there, then 0:07:43.440 --> 0:07:46.200 it has legs. What we saw at the beginning of 0:07:46.240 --> 0:07:49.000 the Internet was the promise of that, and then everybody 0:07:49.080 --> 0:07:53.320 was like, oh, where's the value right, and it came, 0:07:53.680 --> 0:07:54.559 but it took a while. 0:07:55.200 --> 0:07:58.280 Well, Kuntan too, and keeping with what Ian said, you know, 0:07:58.400 --> 0:08:02.800 we recently had a guest on that about quantum computing 0:08:03.440 --> 0:08:06.440 and the connection with AI and this idea that you know, 0:08:06.480 --> 0:08:10.760 you can solve and decode problems much faster than classical 0:08:10.760 --> 0:08:13.920 computers and it's basically you know, large scale systems and 0:08:14.000 --> 0:08:18.400 layers and layers. So is that something you also think about, Kunjohan, 0:08:18.520 --> 0:08:22.320 This role of you know, a whole advanced computing way 0:08:22.400 --> 0:08:23.960 and the role of AI in all of it. 0:08:25.080 --> 0:08:27.160 I mean, look like, just like Ian said, AA has 0:08:27.200 --> 0:08:29.880 been there for a long time, right, but we're now 0:08:29.920 --> 0:08:34.120 seeing this big acceleration because we finally have figured out 0:08:34.360 --> 0:08:37.920 to use this concept like genera d AAI on actually 0:08:38.480 --> 0:08:40.960 implementing in day to day use cases, at least at 0:08:40.960 --> 0:08:44.960 the enterprise level. So similarly, I think, look, this concept 0:08:44.960 --> 0:08:47.600 of quantum computing have been coined for many years, a 0:08:47.600 --> 0:08:49.959 lot of people have been working on it, but until 0:08:50.000 --> 0:08:52.319 it comes to the point where you can deploy it 0:08:52.400 --> 0:08:55.560 to the masses. I don't I think that's when you'll 0:08:55.559 --> 0:08:57.240 see another rally over there. 0:08:57.600 --> 0:09:00.000 Well, it's really cool stuff and certainly keeping us off 0:09:00.600 --> 0:09:04.200 engaged guys, Thank you so much, really appreciate the breakdown. 0:09:04.200 --> 0:09:07.760 Ian King, US semiconductor and networking reporter at Bloomberg News 0:09:07.760 --> 0:09:12.160 from our San Francisco bureau. Also in our bureau, Cunjon Sabani. 0:09:12.280 --> 0:09:16.280 He is Bloomberg Intelligence Senior Semiconductor analyst. As we said 0:09:16.800 --> 0:09:18.800 both there out on the West coast. By the way, 0:09:18.920 --> 0:09:21.480 shares of Nvidia still up about one point four percent, 0:09:21.480 --> 0:09:23.240 but way off their best levels of the session. 0:09:23.480 --> 0:09:26.960 If you're listening to the Bloomberg Business Week podcast, catch 0:09:27.040 --> 0:09:30.400 us live weekday afternoons from three to six Eastern Listen 0:09:30.440 --> 0:09:33.920 on Bloomberg dot com, the iHeartRadio app and the Bloomberg 0:09:33.960 --> 0:09:37.240 Business app, or watch us live on YouTube. 0:09:37.880 --> 0:09:40.240 So in the tech world, it wasn't just about Nvidia today. 0:09:40.280 --> 0:09:42.800 In fact, that stock's rally ran out of steam, but 0:09:42.960 --> 0:09:45.800 not so for shares of the infrastructure software company cyber 0:09:46.120 --> 0:09:49.920 security companies Splunk, soaring up the most since December, closing 0:09:49.920 --> 0:09:52.520 it a fifty two week high today following earnings and 0:09:52.559 --> 0:09:53.480 a quarterly update. 0:09:53.559 --> 0:09:56.000 After the close last night. Stock is up. 0:09:55.960 --> 0:09:58.640 Roughly thirty two percent year to date, so roughly doubling 0:09:58.720 --> 0:10:00.000 its return in twenty twelve. 0:10:00.000 --> 0:10:02.760 Twenty three. Thanks Tim too today's rally. 0:10:02.840 --> 0:10:06.000 Yeah. Splunk Reporter is second quarter revenue that beat estimates. 0:10:06.080 --> 0:10:09.880 It raised it's fullier forecast beyond expectations. Analysts called the 0:10:09.880 --> 0:10:13.520 results solid overall, noting the better annual recurring revenue as 0:10:13.520 --> 0:10:16.080 well as the upgraded forecast. We got with us right now. 0:10:16.200 --> 0:10:18.840 Splunk President and CEO Gary Steele. He joined us on 0:10:18.880 --> 0:10:22.720 a zoom from San Francisco. Gary, how are you great? 0:10:22.720 --> 0:10:23.560 It's great to be here. 0:10:23.800 --> 0:10:27.240 You know, we've been hearing a lot about Like we 0:10:27.280 --> 0:10:29.840 hear from companies. We like to hear how you know 0:10:29.880 --> 0:10:32.480 their customers are doing because it gives us an idea 0:10:32.520 --> 0:10:34.520 of the economy. How are your customers doing? 0:10:35.760 --> 0:10:39.120 Yeah, it was interesting in our second quarter we saw 0:10:39.360 --> 0:10:41.720 very much the same macro conditions that we'd seen in 0:10:41.760 --> 0:10:45.360 prior quarters, and so where it impacted us as we 0:10:45.400 --> 0:10:48.840 saw some hesitation in cloud migrations because these represent new 0:10:48.960 --> 0:10:52.080 projects that have to be funded. And while the ROI 0:10:52.200 --> 0:10:54.880 and getting to the cloud is amazing, you still have 0:10:54.960 --> 0:10:58.160 to fund the actual migration effort, and then we saw 0:10:58.160 --> 0:11:03.160 a continued deal scrutiny, so deals alongating or requiring additional signatures. 0:11:03.559 --> 0:11:05.679 I think the one positive thing for us is I 0:11:05.679 --> 0:11:07.720 think we understand it now and I think our team 0:11:07.760 --> 0:11:11.600 did just a phenomenal job executing within that environment and 0:11:12.120 --> 0:11:14.800 understanding that, yes, there will be more reviews and more 0:11:14.840 --> 0:11:17.720 scrutiny on deals, but we executed quite well, really part 0:11:17.760 --> 0:11:18.120 of the team. 0:11:18.200 --> 0:11:20.079 Reviews and scrutiny are one thing, but what about deals 0:11:20.080 --> 0:11:20.640 falling through? 0:11:22.679 --> 0:11:26.000 Again, we saw more consistency in terms of just scrutiny 0:11:26.000 --> 0:11:28.319 and we and I think there was more. I'd call 0:11:28.320 --> 0:11:31.240 it just stabilization. So I think going into the court 0:11:31.240 --> 0:11:32.839 of people knew what dollars they were going to be 0:11:32.880 --> 0:11:33.880 able to spend, all. 0:11:33.920 --> 0:11:36.120 Right, So how would you describe then the corporate IT 0:11:36.679 --> 0:11:39.719 spend environment generally? Is there a word Gary to say, 0:11:39.760 --> 0:11:42.480 because I think it helps us in a big way 0:11:42.720 --> 0:11:44.680 understand kind of what's to come maybe for the rest 0:11:44.720 --> 0:11:46.480 of the year and what maybe is going on in 0:11:46.520 --> 0:11:47.160 the economy. 0:11:48.320 --> 0:11:50.760 Yeah, I think there's there still remains a high level 0:11:50.760 --> 0:11:53.679 of scrutiny on every dollar being spent by the IT community. 0:11:54.320 --> 0:11:58.320 And while I think we've executed well within that environment. 0:11:58.679 --> 0:12:01.839 We anticipate no change as we work through the second half, 0:12:01.880 --> 0:12:04.720 we will continue to see this level of scrutiny and 0:12:04.920 --> 0:12:07.640 hesitations as it relates to us in this category of 0:12:07.679 --> 0:12:13.520 cloud migration. So we're expecting no change and that's how 0:12:13.559 --> 0:12:16.720 we've thought about providing our guidance for the go forward quarters. 0:12:16.760 --> 0:12:19.240 What's cool talking about you and I got this off 0:12:19.240 --> 0:12:24.440 your website. Fifteen thousand customers, one hundred and ten countries, Zoom, Intel, 0:12:24.480 --> 0:12:28.240 Coca Cola, Carnival, Arii, Airbus, and many more. It's the world, 0:12:28.559 --> 0:12:31.360 it's the universe, if you will. So what types of 0:12:31.400 --> 0:12:34.640 companies are leading the spend? Which ones might there be 0:12:34.679 --> 0:12:35.400 some hesitation? 0:12:37.400 --> 0:12:42.760 You know, we sell pretty consistent behavior across verticals our 0:12:42.800 --> 0:12:46.360 business we've had as an example, we do a lot 0:12:46.360 --> 0:12:48.760 of work with the government and governments around the world. 0:12:48.840 --> 0:12:54.240 That's been relatively consistent for us and a big growth opportunity. Today, 0:12:54.360 --> 0:12:57.120 roughly two thirds of our business is domestic, one third 0:12:57.160 --> 0:13:00.000 is international. We continue to see a lot of opportunit 0:13:00.040 --> 0:13:02.840 unity working with the international customers to take advantage of 0:13:02.840 --> 0:13:06.240 the capabilities we can offer. But from a buying point 0:13:06.280 --> 0:13:08.840 of view, buying perspective, it was pretty consistent around the globe. 0:13:09.000 --> 0:13:11.360 Can we talk about what you guys do, because you 0:13:11.360 --> 0:13:13.360 also have your own AI offerings, which I know you 0:13:13.400 --> 0:13:16.280 guys put out last month, but cybersecurity company, I feel 0:13:16.280 --> 0:13:20.280 like that's a big bucket, right, infrastructure software company big bucket? 0:13:20.400 --> 0:13:22.240 So just walk for those who might. 0:13:22.120 --> 0:13:24.839 Not be familiar familiar with your you know, almost nineteen 0:13:24.880 --> 0:13:28.560 billion dollar market cap company, which they should be, tell 0:13:28.640 --> 0:13:31.480 us about exactly what you do. 0:13:30.720 --> 0:13:31.120 You bet. 0:13:31.280 --> 0:13:35.680 We help organizations drive digital resilience across their cyber environment. 0:13:35.760 --> 0:13:37.520 So how do we ensure that they're well protected and 0:13:37.559 --> 0:13:40.240 they understand what's going on in their cyber environment. This 0:13:40.400 --> 0:13:45.280 is particularly important as we face new sec disclosure requirements 0:13:45.280 --> 0:13:48.560 where you have to notify your shareholders within four days 0:13:48.559 --> 0:13:51.000 of a material event. You know, we're at the core 0:13:51.080 --> 0:13:53.319 of helping organizations figure out what the heck happened and 0:13:53.400 --> 0:13:56.319 how can you meet that four day deadline? And then 0:13:56.360 --> 0:14:01.400 we extend broadly into the observability market, meaning how work 0:14:01.559 --> 0:14:05.360 core to helping organizations keep their digital applications up and 0:14:05.440 --> 0:14:07.760 running so that their customers can get access to all 0:14:07.800 --> 0:14:11.200 of those services, So helping them understand if something happens 0:14:11.240 --> 0:14:13.680 to one of those applications, what's going on and how 0:14:13.720 --> 0:14:15.360 do you get it up and running quickly and try 0:14:15.400 --> 0:14:18.520 to anticipate those events. Where AI plays a role for 0:14:18.640 --> 0:14:26.400 us is helping across security and broader infrastructure anticipate things, 0:14:26.440 --> 0:14:29.800 so trying to get better outcomes faster, so teams can 0:14:29.800 --> 0:14:31.680 be more efficient in what they do every day. So 0:14:31.760 --> 0:14:34.680 and for example in the security operations center, just making 0:14:34.680 --> 0:14:38.280 it easier to operate and get to better outcomes faster 0:14:38.400 --> 0:14:40.000 without all the manual work. 0:14:40.240 --> 0:14:43.880 So with the AI euphoria, how do you think about 0:14:43.920 --> 0:14:47.320 it in terms of is it really something that this 0:14:47.520 --> 0:14:51.160 next gen AI, generative AI really going to take so 0:14:51.240 --> 0:14:54.400 many different industries to a different level. It's the real 0:14:54.720 --> 0:14:56.080 mcgilla if you will. 0:14:56.360 --> 0:14:59.440 Yeah, No, I'm super enthusiastic about it. I feel like 0:15:00.320 --> 0:15:05.440 we can deliver much better outcomes for our customers leveraging 0:15:05.480 --> 0:15:09.760 the power of AI and simple things that we've already introduced. 0:15:09.760 --> 0:15:13.880 So to use plunk, you use you interact with it 0:15:13.920 --> 0:15:18.000 with a proprietary language. Well, with generative AI, we can 0:15:18.040 --> 0:15:21.240 give you a human interface. So just ask what you 0:15:21.320 --> 0:15:23.280 want and we will help you go find it and 0:15:23.320 --> 0:15:25.880 do it. And so then we generate all that proprietary 0:15:25.960 --> 0:15:27.720 language on your behalf and you don't have to have 0:15:27.760 --> 0:15:31.600 that knowledge or understanding. So our ability to take down 0:15:33.640 --> 0:15:36.480 the skills required make it so much easier to interact 0:15:36.480 --> 0:15:39.480 with our product. We're very bullish on that. You know, 0:15:39.520 --> 0:15:42.120 it's still early and I think there's a lot of 0:15:42.200 --> 0:15:45.000 hype in the market generally, but I think at the 0:15:45.080 --> 0:15:47.960 end of the day, we can make a real difference 0:15:48.000 --> 0:15:50.240 in one who can interact with their product and then 0:15:50.320 --> 0:15:52.760 the outcomes that can be delivered as a result of that. 0:15:53.280 --> 0:15:56.000 And this is a journey. It doesn't happen overnight, but 0:15:56.080 --> 0:15:57.960 we can continue to chip away at this and make 0:15:58.040 --> 0:16:00.840 real progress. I think it will be informational in our 0:16:00.880 --> 0:16:03.920 industry because we deal with such rich data sets and 0:16:04.040 --> 0:16:06.760 in that world you can get great outcomes from AI. 0:16:06.920 --> 0:16:10.080 When when you're leveraging the when you're leveraging AI for 0:16:10.160 --> 0:16:13.120 your customers, who are the suppliers that you're using. Are 0:16:13.120 --> 0:16:15.520 you getting chips from Nvidio? Are you getting chips from AMD? 0:16:16.960 --> 0:16:20.160 So we think about it from a cloud perspective, and 0:16:20.200 --> 0:16:22.480 so we're going to the cloud service providers and we're 0:16:22.560 --> 0:16:24.960 leveraging the cloud service providers to be able to deliver 0:16:25.000 --> 0:16:28.760 those AI capabilities. We're not directly buying or setting up 0:16:28.840 --> 0:16:31.400 data centers. We're not directly buying in Vidio chips and 0:16:31.440 --> 0:16:35.440 systems housing in Vidio chips. We're going to the cloud 0:16:35.440 --> 0:16:37.280 service providers to get those capabilities. 0:16:37.280 --> 0:16:38.760 Look in Amazon Web Services or. 0:16:38.840 --> 0:16:43.480 Microsoft Amazon Amazon. We just announced a relationship with Microsoft 0:16:43.520 --> 0:16:46.840 as it relates to bringing our native cloud solutions to 0:16:46.880 --> 0:16:49.680 the Azure platform. And then we have a relationship with 0:16:49.840 --> 0:16:53.800 Google as well for GCP. So we find demand across 0:16:53.840 --> 0:16:57.200 those and we're leveraging their relationships ultimately all the way 0:16:57.200 --> 0:16:58.240 through the chip providers. 0:16:58.320 --> 0:17:01.560 How much do those relationship kind of impact your top 0:17:01.600 --> 0:17:05.040 and bottom lines or give you kind of some window 0:17:05.080 --> 0:17:09.560 into consistency for growth for your company. 0:17:09.840 --> 0:17:14.520 So one, they're very critical. There are critical strategic partners 0:17:14.520 --> 0:17:20.159 for us. There's two dynamics here. One is we allow 0:17:20.200 --> 0:17:23.399 our customers to buy through the marketplaces of each of 0:17:23.440 --> 0:17:27.480 those cloud service providers, meaning you can go and leverage 0:17:27.480 --> 0:17:30.560 the credits you have for AWS or now with our 0:17:30.600 --> 0:17:34.359 relationship with Microsoft, you can leverage your Azure credits, so 0:17:34.440 --> 0:17:38.160 it makes buying easier. And then we work closely with 0:17:38.200 --> 0:17:40.879 them to ensure you get a great technical outcome. So 0:17:41.000 --> 0:17:44.239 you guys asking about chips et cetera. We can make 0:17:44.240 --> 0:17:47.440 sure that we're well tuned for whatever systems they bring 0:17:47.480 --> 0:17:49.920 to bear, and how we can make sure that our 0:17:49.960 --> 0:17:52.240 customers are getting the maximum TCO. 0:17:52.880 --> 0:17:55.439 I want to end Gary, just kind of where we 0:17:55.520 --> 0:17:58.080 begin and getting your view on what the economy looks like. 0:17:58.080 --> 0:17:59.560 There are a lot of questions as we wait to 0:17:59.560 --> 0:18:02.359 hear from j Pal tomorrow about what the economy looks like. 0:18:02.480 --> 0:18:04.040 Just in the last forty five seconds that we have 0:18:04.119 --> 0:18:05.320 with you, what's your read. 0:18:08.119 --> 0:18:10.000 I believe we were going to see the same for 0:18:10.040 --> 0:18:13.679 some period of time. We haven't. We haven't built that 0:18:13.840 --> 0:18:17.600 into we haven't built any improvement into our guidance. And 0:18:17.680 --> 0:18:22.600 I think that I believe we're in a soft landing 0:18:22.640 --> 0:18:25.280 mode that we're going to continue to see some conservatism, 0:18:25.320 --> 0:18:27.160 but we'll work our way out of this over time. 0:18:27.320 --> 0:18:29.879 Well, So enjoyed our conversation with you, Be well and 0:18:29.920 --> 0:18:33.000 look forward to next time. It's Plunk President and CEO 0:18:33.040 --> 0:18:35.720 Gary Steele joining us on Zoom from San Francisco. 0:18:35.720 --> 0:18:40.119 As we said, you're listening to the Bloomberg Business Week podcast. 0:18:40.359 --> 0:18:43.440 Catch us live weekday afternoons from three to six Easter 0:18:43.760 --> 0:18:47.520 on Bloomberg Radio, the Bloomberg Business app, and YouTube. You 0:18:47.560 --> 0:18:50.800 can also listen live on Amazon Alexa from our flagship 0:18:50.880 --> 0:18:56.040 New York station Just Say Alexa playing Bloomberg eleven thirty. 0:18:57.119 --> 0:18:59.400 Well, although masks have come off for many of us, 0:18:59.600 --> 0:19:01.520 and for the most part, many of us are back 0:19:01.560 --> 0:19:04.000 to normal, even if that normal is a bit different, 0:19:04.040 --> 0:19:06.720 COVID is still here and a lot of people right now, Carol, 0:19:06.760 --> 0:19:08.119 are still getting it. I don't know if you saw this. 0:19:08.200 --> 0:19:10.720 Just yesterday, the New York City Department of Health said 0:19:10.720 --> 0:19:12.399 that cases in the city are on the rise and 0:19:12.880 --> 0:19:15.520 some people should consider wearing a mask and crowded indoor settings. 0:19:15.600 --> 0:19:17.679 Listen, We've had folks with masks back in the office 0:19:18.000 --> 0:19:21.959 who were getting over having COVID. We're also learning more 0:19:22.000 --> 0:19:24.399 about the virus in its aftermath. A study published this 0:19:24.400 --> 0:19:26.400 week in the journal Nature found that people who were 0:19:26.440 --> 0:19:29.600 never sick enough to be hospitalized for acute COVID still 0:19:29.600 --> 0:19:33.320 had a higher risk than uninfected people of developing long 0:19:33.320 --> 0:19:38.640 COVID related disorders such as dangerous blood cloths, diabetes, and lung, gastrointestinal, 0:19:38.800 --> 0:19:42.639 and muscule skeletal disease. Two years later, well. 0:19:42.520 --> 0:19:44.880 Very pleased to have with us, doctor Andy Peckosh, President 0:19:45.160 --> 0:19:48.480 Professor excuse me, of Molecular Microbiology and Immunology at the 0:19:48.560 --> 0:19:52.119 Johns Hopkins University Bloomberg School of Public Health. I almost 0:19:52.160 --> 0:19:54.960 gave you a promotion there, doctor Peckosh. But it's good 0:19:54.960 --> 0:19:57.880 to have you with us Health Conserve Well, yes, President. 0:19:58.160 --> 0:20:00.000 In my book, how's that we should know that the Bloomberg 0:20:00.000 --> 0:20:02.240 School Public Hell that is supported by Michael R. Bloomberg, 0:20:02.240 --> 0:20:06.399 founder of Bloomberg LP and Bloomberg Philanthropies. Doctor Petter is 0:20:06.400 --> 0:20:08.120 good to have you with us right now. I want 0:20:08.119 --> 0:20:10.320 to start with the new variants that we're seeing right 0:20:10.359 --> 0:20:12.359 now and why we're seeing this up to it's summer. 0:20:12.400 --> 0:20:12.920 What's going on? 0:20:14.040 --> 0:20:17.760 Well, you know, COVID nineteen has never really left us. 0:20:18.359 --> 0:20:20.639 We were fortunate over the past few months to have 0:20:20.840 --> 0:20:24.000 very low numbers of cases, but we were still having cases, 0:20:24.040 --> 0:20:27.920 and we were still seeing viruses that were essentially doing 0:20:27.920 --> 0:20:31.320 what viruses do. They mutate, they change so that they 0:20:31.320 --> 0:20:33.919 can keep circulating in the population. We were just seeing 0:20:33.960 --> 0:20:37.520 that at a very low level. We're not sure what 0:20:37.560 --> 0:20:41.200 the factors are that are driving this surge of cases 0:20:41.320 --> 0:20:43.520 right now, but you know, I think it's important to 0:20:43.560 --> 0:20:45.920