1 00:00:00,080 --> 00:00:12,879 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 2 00:00:12,960 --> 00:00:16,720 Speaker 1: live from Coast to Coast with Caroline Hyde in New 3 00:00:16,800 --> 00:00:19,239 Speaker 1: York and Vla Loow in sentrancs. Go. 4 00:00:22,640 --> 00:00:24,440 Speaker 2: This is Bloomberg Tech coming up. 5 00:00:24,480 --> 00:00:27,840 Speaker 3: Anthropic plans to spend fifty billion dollars to build AI 6 00:00:27,960 --> 00:00:29,760 Speaker 3: data centers in the US. 7 00:00:29,920 --> 00:00:32,839 Speaker 4: Plus data center demand helps AMD shares jump as it 8 00:00:32,880 --> 00:00:35,960 Speaker 4: predicts accelerating sales growth over the next five years. 9 00:00:36,440 --> 00:00:39,960 Speaker 3: And Woop is considering a potential IPO in the next 10 00:00:39,960 --> 00:00:44,320 Speaker 3: two years, according to its CEO. We'll have the details. Okay, 11 00:00:44,400 --> 00:00:47,400 Speaker 3: let's get onto our top story. Anthropic plans to spend 12 00:00:47,479 --> 00:00:51,120 Speaker 3: fifty billion dollars to build custom data centers for AI 13 00:00:51,240 --> 00:00:55,400 Speaker 3: work in several US locations, including Texas. 14 00:00:55,000 --> 00:00:55,760 Speaker 2: And New York. 15 00:00:55,880 --> 00:01:00,000 Speaker 3: This is the latest expensive pledge for infrastructure to support 16 00:01:00,280 --> 00:01:04,680 Speaker 3: DAI boom. Bloomberg's AI editor Seth Figeman joins us for more. 17 00:01:05,160 --> 00:01:08,160 Speaker 3: There are some details worth understanding and knowing about in 18 00:01:08,200 --> 00:01:10,960 Speaker 3: what Anthropic plans to do with this fifty billion dollars, 19 00:01:11,240 --> 00:01:12,920 Speaker 3: over which timeline and with who. 20 00:01:13,600 --> 00:01:16,360 Speaker 2: But there's also some consideration. 21 00:01:15,880 --> 00:01:19,000 Speaker 3: Around how big this fifty billion dollars is relative to 22 00:01:19,040 --> 00:01:19,880 Speaker 3: the rest of the field. 23 00:01:20,360 --> 00:01:20,760 Speaker 2: That's right. 24 00:01:20,800 --> 00:01:22,520 Speaker 5: You know, I think in one sense of you had 25 00:01:22,560 --> 00:01:25,199 Speaker 5: said a year or two ago that a four year old, 26 00:01:25,280 --> 00:01:28,160 Speaker 5: unprofitable startup was going to commit fifty billion dollars to 27 00:01:28,720 --> 00:01:31,800 Speaker 5: infrastructure project and say that's enormous and possibly insane. But 28 00:01:31,840 --> 00:01:33,840 Speaker 5: when you compare it to the one point four trillion 29 00:01:33,880 --> 00:01:37,319 Speaker 5: that OPI has committed, it feels much more measured. And 30 00:01:37,360 --> 00:01:39,679 Speaker 5: I do think that is very much the subtext of 31 00:01:39,680 --> 00:01:42,440 Speaker 5: a lot of this Anthropic is clearly taking a page 32 00:01:42,600 --> 00:01:45,720 Speaker 5: from Open in terms of the scale of infrastructure required 33 00:01:45,720 --> 00:01:47,560 Speaker 5: to build what it wants to build, but I think 34 00:01:47,600 --> 00:01:49,600 Speaker 5: it also wants to show that it's perhaps a fiscally 35 00:01:49,720 --> 00:01:52,760 Speaker 5: or more fiscally responsible company and doing this in order 36 00:01:52,760 --> 00:01:53,880 Speaker 5: of magnitude less. 37 00:01:53,920 --> 00:01:57,320 Speaker 4: At the moment, they've raised thirteen billion dollars recently, they're 38 00:01:57,320 --> 00:01:59,600 Speaker 4: worth one hundred and eighty three billion dollars, and they've 39 00:01:59,640 --> 00:02:03,200 Speaker 4: been really good track record with business and enterprise sales 40 00:02:03,240 --> 00:02:06,600 Speaker 4: three ondred thousand business customers. But what's interesting is the 41 00:02:06,600 --> 00:02:08,720 Speaker 4: business they're doing with other people. They're using a UK 42 00:02:08,919 --> 00:02:10,320 Speaker 4: company to build out in the US. 43 00:02:10,360 --> 00:02:11,120 Speaker 2: Seth, that's right. 44 00:02:11,120 --> 00:02:13,720 Speaker 5: I mean Fluid Sac is really not a household name here. 45 00:02:13,760 --> 00:02:16,080 Speaker 5: I mean, it's part of that emerging sector of neoclouds, 46 00:02:16,080 --> 00:02:19,320 Speaker 5: but not nearly as well known as Corewave or even Nebuus. 47 00:02:19,320 --> 00:02:21,120 Speaker 5: But you know, it's an up and coming company that 48 00:02:21,160 --> 00:02:24,200 Speaker 5: we've previously reporters and talks for a large amount of funding, 49 00:02:24,240 --> 00:02:26,600 Speaker 5: and it's been central to a French effort to build 50 00:02:26,880 --> 00:02:30,360 Speaker 5: a supercomputer over there. But again more untested perhaps than 51 00:02:30,440 --> 00:02:32,520 Speaker 5: some other partners you might announce here. 52 00:02:33,520 --> 00:02:36,320 Speaker 3: It's one of the stories where it's what we do 53 00:02:36,400 --> 00:02:39,520 Speaker 3: not know that's worth consideration. So they're not telling us, 54 00:02:39,600 --> 00:02:42,040 Speaker 3: you know, the total gig and what figure for the 55 00:02:42,040 --> 00:02:45,360 Speaker 3: footprint in the United States. And at the same time, 56 00:02:45,440 --> 00:02:49,880 Speaker 3: you know they're heavily reliant on these hyperscale partners Amazon, 57 00:02:49,960 --> 00:02:53,440 Speaker 3: Aws and Google to give them the compute they need 58 00:02:53,560 --> 00:02:56,680 Speaker 3: away from this this plan to build fifty billion dollars capacity. 59 00:02:56,919 --> 00:02:58,359 Speaker 5: Yeah, and I think again, if you look at their 60 00:02:58,440 --> 00:03:01,600 Speaker 5: nearest rival of Panaya, sort of it takes everything and 61 00:03:01,639 --> 00:03:04,160 Speaker 5: everyone to build what they want to build here. And 62 00:03:04,200 --> 00:03:06,600 Speaker 5: so while they want to potentially have a bit more 63 00:03:06,600 --> 00:03:08,680 Speaker 5: control and ownership over some of the data centers that 64 00:03:08,680 --> 00:03:10,640 Speaker 5: they build in the coming years, they're still going to 65 00:03:10,639 --> 00:03:13,399 Speaker 5: be relying on those big tech partners and the neo 66 00:03:13,440 --> 00:03:16,160 Speaker 5: clouds and pretty much anyone else in this industry to 67 00:03:16,200 --> 00:03:18,560 Speaker 5: meet what they imagine to be a pretty intense amount 68 00:03:18,560 --> 00:03:19,320 Speaker 5: of computing needs. 69 00:03:19,320 --> 00:03:22,799 Speaker 4: Here Blum, meg Seth, Fiegeman is a great breakdown. Thank you. 70 00:03:22,880 --> 00:03:26,919 Speaker 4: Look those intense compute needs, those AI bubble hopes, there's 71 00:03:26,960 --> 00:03:28,880 Speaker 4: still been questioned by the market, at least on the day. 72 00:03:28,919 --> 00:03:30,720 Speaker 4: Let's check in on the nastak. It's unpressureed by three 73 00:03:30,720 --> 00:03:33,400 Speaker 4: tens percent. Even though we've got some significant moves to 74 00:03:33,480 --> 00:03:35,160 Speaker 4: the upside of the chip set to end. You're going 75 00:03:35,240 --> 00:03:36,960 Speaker 4: to get to it. But at the moment, we're still 76 00:03:36,960 --> 00:03:39,720 Speaker 4: trying to digest potential end of the government shutdown. We're 77 00:03:39,720 --> 00:03:42,440 Speaker 4: still trying to digest really where some of the AI 78 00:03:42,920 --> 00:03:44,800 Speaker 4: return on AI is eventually coming from. 79 00:03:44,880 --> 00:03:49,360 Speaker 3: Ed There are some outperformers, and AMD is probably the 80 00:03:49,400 --> 00:03:53,240 Speaker 3: starkest example. Are almost ten percent more than nine percent. 81 00:03:53,520 --> 00:03:56,160 Speaker 3: They had their base of annual Capital Markets Day or 82 00:03:56,200 --> 00:03:59,200 Speaker 3: Investor Day, and what they said is that top line 83 00:03:59,280 --> 00:04:02,160 Speaker 3: revenue growth is going to be annualized thirty five percent 84 00:04:02,240 --> 00:04:04,280 Speaker 3: over the next three to five years. But in that 85 00:04:04,400 --> 00:04:09,040 Speaker 3: key data center category eighty percent KAEGA over the same 86 00:04:09,080 --> 00:04:11,480 Speaker 3: time period, and the question we've asked so many times 87 00:04:11,520 --> 00:04:14,320 Speaker 3: on this program, is is AMD meaningfully going to close 88 00:04:14,360 --> 00:04:17,440 Speaker 3: the gap on Nvidia for AI accelerators or GPUs for 89 00:04:17,520 --> 00:04:20,679 Speaker 3: data center The market really likes what it heard. Global 90 00:04:20,680 --> 00:04:23,159 Speaker 3: Foundaries actually had a really strong earnings beat in the 91 00:04:23,160 --> 00:04:26,719 Speaker 3: third quarter, particularly on the bottom line. Again, another sort 92 00:04:26,720 --> 00:04:30,280 Speaker 3: of smaller scale contract manufacturer chips like TSMC, but the 93 00:04:30,320 --> 00:04:34,040 Speaker 3: stock down three percent all in all. At the index level, 94 00:04:34,360 --> 00:04:37,359 Speaker 3: the Philadelphia Semi Conductor Index or socks up one point 95 00:04:37,360 --> 00:04:39,599 Speaker 3: two percent. But there is like this weird kind of 96 00:04:39,640 --> 00:04:42,240 Speaker 3: treading water right now. Bigger picture because of the government 97 00:04:42,279 --> 00:04:44,599 Speaker 3: shut down and AMD, as you know, carry is probably 98 00:04:44,600 --> 00:04:45,239 Speaker 3: doing a little. 99 00:04:45,040 --> 00:04:46,400 Speaker 2: Bit to boost at the index level. 100 00:04:46,600 --> 00:04:49,159 Speaker 4: It is. Let's just get the context of all of 101 00:04:49,200 --> 00:04:51,160 Speaker 4: this and drill down into what has been some cautious 102 00:04:51,160 --> 00:04:53,680 Speaker 4: optimism in tech stocks in an end of course, to 103 00:04:53,720 --> 00:04:56,320 Speaker 4: the US government shut down potentially in sight. Nicolas de 104 00:04:56,400 --> 00:04:58,280 Speaker 4: Danvier is with us here, is the head of North 105 00:04:58,279 --> 00:05:00,360 Speaker 4: American Equities for Columbia Thread Needs. I've got a call 106 00:05:00,360 --> 00:05:03,280 Speaker 4: seven hundred and fourteen billion dollars in as it's under management. 107 00:05:03,640 --> 00:05:03,800 Speaker 6: Nick. 108 00:05:03,839 --> 00:05:05,320 Speaker 4: It's wonderful to have you here in the studio. 109 00:05:05,440 --> 00:05:07,080 Speaker 6: Thank you for having me Caroline, and. 110 00:05:07,000 --> 00:05:09,440 Speaker 4: You've got this great take on what the drivers are 111 00:05:09,480 --> 00:05:12,200 Speaker 4: going forward. You call it tire. But we are still 112 00:05:12,200 --> 00:05:14,280 Speaker 4: trying to digest trade. We are still trying to think 113 00:05:14,320 --> 00:05:16,440 Speaker 4: about interest rates. I think you go into what's happening 114 00:05:16,440 --> 00:05:20,200 Speaker 4: with inflation, but earnings. What are we hearing from earnings 115 00:05:20,240 --> 00:05:22,480 Speaker 4: to vindicate the AI run up that we've had of late? 116 00:05:22,680 --> 00:05:24,520 Speaker 6: Hey looks thus far, right. 117 00:05:24,560 --> 00:05:27,159 Speaker 7: I think it's fair to say that earnings have been really, 118 00:05:27,240 --> 00:05:29,600 Speaker 7: really good. If you look at the performance of the 119 00:05:29,680 --> 00:05:33,920 Speaker 7: hyperscalars in particular this most recent earning season, you are 120 00:05:33,960 --> 00:05:38,160 Speaker 7: seeing a growth and there I say, return on some 121 00:05:38,200 --> 00:05:39,039 Speaker 7: of this capex. 122 00:05:39,360 --> 00:05:41,239 Speaker 6: All you have to do is look at what's happening 123 00:05:41,240 --> 00:05:42,080 Speaker 6: with META. Right. 124 00:05:42,120 --> 00:05:45,080 Speaker 7: When you look under the surface, you are seeing that 125 00:05:45,200 --> 00:05:50,480 Speaker 7: the AI is enabling better ad effectiveness, right, And those 126 00:05:50,520 --> 00:05:52,479 Speaker 7: are some of the early things that we want to 127 00:05:52,520 --> 00:05:54,960 Speaker 7: start to see as investors to validate the spending. 128 00:05:55,279 --> 00:05:58,760 Speaker 4: What's been interesting is investors didn't give much of a 129 00:05:58,760 --> 00:06:01,440 Speaker 4: longer rain to META beaten up in this earning season 130 00:06:01,480 --> 00:06:04,520 Speaker 4: because they'll take on more debt. They're thinking and committing 131 00:06:04,520 --> 00:06:06,560 Speaker 4: to that capital expenditure. What do you want to hear 132 00:06:06,600 --> 00:06:08,400 Speaker 4: from Zuckerberg, do you want to hear that optimism or 133 00:06:08,440 --> 00:06:09,920 Speaker 4: do you want to sometimes hear that he's going to 134 00:06:10,000 --> 00:06:11,760 Speaker 4: be sensible with the money spending too. 135 00:06:11,920 --> 00:06:16,120 Speaker 7: Hey, look, investors are doing exactly what we should be 136 00:06:16,160 --> 00:06:19,359 Speaker 7: doing right now. We're asking questions. And why are we 137 00:06:19,480 --> 00:06:22,440 Speaker 7: asking questions because Caroline, even in the world, with one 138 00:06:22,480 --> 00:06:26,919 Speaker 7: hundred billion dollars is quaint right, We're talking about really 139 00:06:27,440 --> 00:06:32,680 Speaker 7: big numbers here, So investors are rightfully saying, Hey, help 140 00:06:32,720 --> 00:06:36,400 Speaker 7: me understand the pace of the spending. Help me understand 141 00:06:36,600 --> 00:06:39,520 Speaker 7: how do I think about these returns flowing through? 142 00:06:39,760 --> 00:06:41,080 Speaker 6: What's the timeframe on that? 143 00:06:41,520 --> 00:06:44,680 Speaker 7: And Mark, do you really need to spend all of 144 00:06:44,680 --> 00:06:47,400 Speaker 7: this money right now or should you take your time now? 145 00:06:47,600 --> 00:06:48,799 Speaker 6: Zuckerberg would say. 146 00:06:48,720 --> 00:06:51,480 Speaker 7: We absolutely have to move forward because this is going 147 00:06:51,560 --> 00:06:53,560 Speaker 7: to matter for the future of the company, and if 148 00:06:53,560 --> 00:06:56,120 Speaker 7: we don't do this spending, we're going to fall behind. 149 00:06:56,200 --> 00:06:59,680 Speaker 7: But investors are going to ask questions, and that's precisely 150 00:06:59,720 --> 00:07:00,720 Speaker 7: what we should be doing. 151 00:07:02,320 --> 00:07:03,920 Speaker 3: Nick, it's great to have you on the program. Let 152 00:07:03,960 --> 00:07:07,159 Speaker 3: me give you some really big numbers. Four point seven 153 00:07:07,240 --> 00:07:11,720 Speaker 3: trillion dollars market cap for Nvidia, top line growth overall 154 00:07:11,840 --> 00:07:16,240 Speaker 3: fifty six fifty seven percent data center, maybe even better 155 00:07:16,680 --> 00:07:21,280 Speaker 3: the E in your acronym. It cannot get any bigger 156 00:07:21,680 --> 00:07:25,520 Speaker 3: the next Wednesday. How should the market brace for that 157 00:07:25,560 --> 00:07:28,120 Speaker 3: in Vidia print either to the upside or to the 158 00:07:28,160 --> 00:07:29,800 Speaker 3: downside in terms of disappointment. 159 00:07:30,160 --> 00:07:34,160 Speaker 7: Look, I know that there is a focus and we 160 00:07:34,400 --> 00:07:36,800 Speaker 7: like to look at these earnings sort of on a 161 00:07:36,840 --> 00:07:40,040 Speaker 7: real time basis, But what the market is really going 162 00:07:40,120 --> 00:07:44,160 Speaker 7: to care about, ed is how is in Nvidia talking 163 00:07:44,200 --> 00:07:45,280 Speaker 7: about the future? 164 00:07:45,640 --> 00:07:45,840 Speaker 6: Right? 165 00:07:46,080 --> 00:07:48,720 Speaker 7: Caroline was just pointing out that we've had lots and 166 00:07:48,800 --> 00:07:52,040 Speaker 7: lots of CAPEX commitments, and what investors want to hear 167 00:07:52,280 --> 00:07:55,920 Speaker 7: is what is the pace of that CAPEX coming through 168 00:07:56,040 --> 00:07:59,520 Speaker 7: their revenues? And Look, I know we're going to focused 169 00:07:59,600 --> 00:08:02,400 Speaker 7: on a backwards looking view in terms of the quarter, 170 00:08:02,520 --> 00:08:05,920 Speaker 7: but what we should be thinking about is is the 171 00:08:06,000 --> 00:08:09,160 Speaker 7: pace of their competitive positioning? Are they going to be 172 00:08:09,160 --> 00:08:11,200 Speaker 7: able to maintain that? Are they going to be able 173 00:08:11,200 --> 00:08:14,960 Speaker 7: to maintain this revenue trajectory that there are and at 174 00:08:15,040 --> 00:08:17,480 Speaker 7: least in a short term, I think they can. 175 00:08:18,920 --> 00:08:21,720 Speaker 3: You're the head of North American equities, right, you probably 176 00:08:21,760 --> 00:08:25,680 Speaker 3: take a much broader macro view, but when you do 177 00:08:25,840 --> 00:08:29,880 Speaker 3: have a company like this who's not just technical waiting 178 00:08:29,920 --> 00:08:32,640 Speaker 3: at the index level is an important consideration, But like 179 00:08:32,720 --> 00:08:37,360 Speaker 3: the psychological weight that the Gensen one puts on the market, 180 00:08:37,679 --> 00:08:40,199 Speaker 3: how do you prepare for that? How do you translate 181 00:08:40,280 --> 00:08:41,280 Speaker 3: that for your clients? 182 00:08:42,000 --> 00:08:44,679 Speaker 7: I think what you have as an investor is focused 183 00:08:44,760 --> 00:08:47,079 Speaker 7: on the things that you can do best right and 184 00:08:47,520 --> 00:08:51,320 Speaker 7: what is our competitive advantage, if you will, from the 185 00:08:51,360 --> 00:08:54,680 Speaker 7: perspective of Columbia Thread Deedal, what we can do is 186 00:08:55,040 --> 00:08:59,040 Speaker 7: study the market, understand the competitive dynamics, and be able 187 00:08:59,080 --> 00:09:01,319 Speaker 7: to weigh through who the winners and the losers are 188 00:09:01,320 --> 00:09:05,440 Speaker 7: going to be. Now is Jensen's commentary? Is that going 189 00:09:05,480 --> 00:09:08,960 Speaker 7: to matter for investor expectations? It will, But to the 190 00:09:09,000 --> 00:09:11,440 Speaker 7: extent it creates noise. I think what we have to 191 00:09:11,480 --> 00:09:13,560 Speaker 7: do is be ready to take advantage of that on 192 00:09:13,640 --> 00:09:14,920 Speaker 7: behalf of our clients. 193 00:09:15,640 --> 00:09:18,960 Speaker 4: And so in this moment, if there is weakness, and 194 00:09:18,960 --> 00:09:21,840 Speaker 4: we have seen some pockets of weakness, look quantums come off. 195 00:09:21,880 --> 00:09:24,439 Speaker 4: We've had some of the more sort of risk prone, 196 00:09:24,440 --> 00:09:26,760 Speaker 4: maybe the unprofitable side of the text been pulling back 197 00:09:26,760 --> 00:09:30,400 Speaker 4: a little bit nuclear maybe we've got less excited about that. 198 00:09:30,880 --> 00:09:34,720 Speaker 4: Are they buying opportunities or are you thinking that you 199 00:09:34,800 --> 00:09:37,360 Speaker 4: actually want a little bit of a healthy correction of 200 00:09:37,440 --> 00:09:39,480 Speaker 4: some of these CEOs of financial companies's been talking about. 201 00:09:39,520 --> 00:09:42,760 Speaker 7: Hey, look, Caroline, I would segment out the market. I 202 00:09:42,800 --> 00:09:47,000 Speaker 7: think there are places where there is fundamental strength, and 203 00:09:47,160 --> 00:09:51,000 Speaker 7: to the extent you see weakness, it's probably a buying opportunity. 204 00:09:51,320 --> 00:09:53,920 Speaker 7: And I would separate out the places of the market 205 00:09:54,040 --> 00:09:55,479 Speaker 7: where really what we're talking. 206 00:09:55,240 --> 00:09:57,199 Speaker 6: About is speculative appetite. 207 00:09:57,400 --> 00:10:02,000 Speaker 7: Right, the quantum stocks have melted thousands of percents, but 208 00:10:02,200 --> 00:10:04,400 Speaker 7: for most of these companies, they don't even have many 209 00:10:04,480 --> 00:10:07,440 Speaker 7: revenues for a few years running, right, So I would 210 00:10:07,480 --> 00:10:11,200 Speaker 7: not necessarily describe that segment of the market as a 211 00:10:11,240 --> 00:10:15,680 Speaker 7: buying opportunity. But for the healthier places, the places where 212 00:10:15,679 --> 00:10:19,160 Speaker 7: you can model out real revenue growth, you can see 213 00:10:19,160 --> 00:10:21,679 Speaker 7: where the cash flows are going, there's probably going to 214 00:10:21,760 --> 00:10:24,080 Speaker 7: be opportunity as the market continues. 215 00:10:23,640 --> 00:10:26,679 Speaker 4: To be weak, opportunity. And I think the opportunity we 216 00:10:26,760 --> 00:10:29,080 Speaker 4: keep hearing about, the limiting factor we keep hearing about 217 00:10:29,480 --> 00:10:33,040 Speaker 4: is utilities and is energy. But also the key limiting 218 00:10:33,080 --> 00:10:34,560 Speaker 4: factor for many is going to be the place of 219 00:10:34,600 --> 00:10:35,760 Speaker 4: interest rates, and where they go. 220 00:10:36,080 --> 00:10:39,720 Speaker 3: Yes, yes, let's go to interest rates. So in your acronym, 221 00:10:39,960 --> 00:10:40,959 Speaker 3: we've done a lot on the E. 222 00:10:41,520 --> 00:10:41,760 Speaker 6: Right. 223 00:10:42,240 --> 00:10:44,800 Speaker 3: What we always say on this program is that higher 224 00:10:44,880 --> 00:10:47,960 Speaker 3: rates discount the present value of future cash flows, and 225 00:10:48,000 --> 00:10:50,320 Speaker 3: we try and help the audience understand, like, why do 226 00:10:50,400 --> 00:10:50,959 Speaker 3: we track. 227 00:10:50,800 --> 00:10:52,360 Speaker 2: The FED on Bloomberg Tech? 228 00:10:52,800 --> 00:10:56,480 Speaker 3: As an investor who's looking at this technology sector, why 229 00:10:56,520 --> 00:10:57,520 Speaker 3: do you look at the FED? 230 00:10:57,600 --> 00:10:59,839 Speaker 2: Do you care? Help us understand? 231 00:11:00,280 --> 00:11:03,600 Speaker 7: Hey, look, we absolutely care, right, And I'll take you 232 00:11:03,679 --> 00:11:08,040 Speaker 7: back again to these really big numbers, trillions of dollars 233 00:11:08,080 --> 00:11:11,640 Speaker 7: that we're talking about. So the FED matters a lot 234 00:11:11,720 --> 00:11:14,440 Speaker 7: from the perspective of is there going to be liquidity 235 00:11:14,440 --> 00:11:17,520 Speaker 7: in the marketplace? And obviously the FED, in terms of 236 00:11:17,559 --> 00:11:20,160 Speaker 7: the short term interest rates, is going to dictate the 237 00:11:20,200 --> 00:11:21,680 Speaker 7: pricing on that. 238 00:11:23,160 --> 00:11:25,480 Speaker 6: Capital. So yes, the FED matters. 239 00:11:26,080 --> 00:11:29,200 Speaker 7: I would point to the audience that there's been somewhat 240 00:11:29,200 --> 00:11:30,480 Speaker 7: of a pivot four or. 241 00:11:30,400 --> 00:11:31,240 Speaker 6: Five weeks ago. 242 00:11:31,480 --> 00:11:34,959 Speaker 7: I think it was relatively consensus that interest rates were 243 00:11:35,000 --> 00:11:38,199 Speaker 7: heading lower. We're now in somewhat of a data fog, 244 00:11:38,400 --> 00:11:40,640 Speaker 7: but the little bit of data that we've seen. 245 00:11:40,520 --> 00:11:42,160 Speaker 6: Suggests that we might be on hold. 246 00:11:42,400 --> 00:11:44,520 Speaker 7: So in the short term, I think you're going to 247 00:11:44,559 --> 00:11:48,200 Speaker 7: see some countervailing winds, if you will, and the long 248 00:11:48,280 --> 00:11:51,400 Speaker 7: term you would expect interest rates to start to come 249 00:11:51,440 --> 00:11:54,359 Speaker 7: down we're seeing in terms of economic performance. 250 00:11:55,320 --> 00:11:57,480 Speaker 3: Let's end the conversation by you telling us what's going 251 00:11:57,559 --> 00:12:00,360 Speaker 3: to happen in the balance of twenty twenty five twenty 252 00:12:00,360 --> 00:12:03,560 Speaker 3: twenty six for the technology sector, your crystal ball. 253 00:12:03,600 --> 00:12:04,560 Speaker 6: Please look. 254 00:12:04,880 --> 00:12:07,719 Speaker 7: I think for the next few weeks it's going to 255 00:12:07,800 --> 00:12:11,280 Speaker 7: be all about investors trying to figure out where are 256 00:12:11,360 --> 00:12:13,280 Speaker 7: the returns going to come from. 257 00:12:13,640 --> 00:12:15,280 Speaker 6: Let's look through the tea leaves. 258 00:12:15,400 --> 00:12:19,200 Speaker 7: Let's see the early evidence that this capec is capex 259 00:12:19,960 --> 00:12:21,000 Speaker 7: is going to pay off. 260 00:12:21,320 --> 00:12:22,720 Speaker 6: So I would expect that. 261 00:12:22,559 --> 00:12:25,800 Speaker 7: That's going to drive a lot of the conversation for 262 00:12:25,880 --> 00:12:28,520 Speaker 7: the balance of the year. But I'll fool you forward 263 00:12:28,679 --> 00:12:34,000 Speaker 7: into twenty twenty six. I think an important conversation, and 264 00:12:34,160 --> 00:12:36,560 Speaker 7: one that we haven't spent a lot of time on 265 00:12:36,600 --> 00:12:40,680 Speaker 7: thus far, is are these CAPEX numbers one time in 266 00:12:40,800 --> 00:12:44,880 Speaker 7: nature or are we about to get on a CAPEX treadmill, 267 00:12:45,280 --> 00:12:49,240 Speaker 7: which is akin to telecoms of the nineteen eighties. If 268 00:12:49,280 --> 00:12:52,600 Speaker 7: it's the former, I think the market will do well 269 00:12:52,640 --> 00:12:55,320 Speaker 7: through that. If people start to believe the latter, I 270 00:12:55,360 --> 00:12:59,080 Speaker 7: think you have the real possibility of seeing some nervousness 271 00:12:59,240 --> 00:12:59,960 Speaker 7: from investors. 272 00:13:01,320 --> 00:13:03,800 Speaker 3: Nicholas Choanbier of Columbia, Fred need or great to have 273 00:13:03,800 --> 00:13:04,680 Speaker 3: you on Bloomberg Tech. 274 00:13:04,800 --> 00:13:05,640 Speaker 6: Thank you ver so much. 275 00:13:05,840 --> 00:13:06,360 Speaker 2: Coming up. 276 00:13:06,720 --> 00:13:11,120 Speaker 3: Fitness wearable company says it's looking to potentially IPO within 277 00:13:11,160 --> 00:13:11,920 Speaker 3: the next two years. 278 00:13:11,960 --> 00:13:13,560 Speaker 2: We're going to get that story next Carot. 279 00:13:13,360 --> 00:13:15,280 Speaker 4: What you got in here and now, and we're checking 280 00:13:15,320 --> 00:13:18,200 Speaker 4: out airline stocks because we have heard from Sean Duffy. 281 00:13:18,240 --> 00:13:21,160 Speaker 4: Here's the Transportation Secretary speaking to reporters saying the US 282 00:13:21,240 --> 00:13:24,720 Speaker 4: aims to start lifting flight cuts in a week once 283 00:13:24,800 --> 00:13:27,840 Speaker 4: the government opens. We're up more than two percent across 284 00:13:27,840 --> 00:13:43,839 Speaker 4: the board. This is bloombg Tech way Mo. It's begun 285 00:13:43,880 --> 00:13:47,280 Speaker 4: offering rides that include highways in San Francisco, Los Angeles, 286 00:13:47,320 --> 00:13:49,880 Speaker 4: and Phoenix. The company is also widening at service area 287 00:13:49,920 --> 00:13:52,360 Speaker 4: in the Bay Area in the coming weeks. It's all 288 00:13:52,400 --> 00:13:55,439 Speaker 4: offering rides across Silicon Value more broadly. Bluemost consumer app 289 00:13:55,480 --> 00:13:59,040 Speaker 4: reporter Natalie Land joins US now and why is rides 290 00:13:59,080 --> 00:14:00,439 Speaker 4: on highways such a step. 291 00:14:01,120 --> 00:14:03,520 Speaker 8: It is a big deal because it can cut down 292 00:14:03,600 --> 00:14:05,200 Speaker 8: trip time for a lot of customers. 293 00:14:05,480 --> 00:14:06,680 Speaker 6: Right now, before. 294 00:14:06,760 --> 00:14:10,560 Speaker 8: Freeway access was available, you know, Waymo had to plan 295 00:14:10,679 --> 00:14:14,080 Speaker 8: routes avoiding the highways and you know, navigating the narrow 296 00:14:14,120 --> 00:14:16,920 Speaker 8: city streets and lengthening trip times a lot. 297 00:14:18,200 --> 00:14:18,520 Speaker 2: Naslie. 298 00:14:18,559 --> 00:14:20,800 Speaker 3: We were talking with the team this morning right about 299 00:14:21,400 --> 00:14:25,760 Speaker 3: is this the first time that a genuine robotaxi service, 300 00:14:25,840 --> 00:14:29,720 Speaker 3: no safety driver is going on a freeway or highway 301 00:14:30,120 --> 00:14:31,200 Speaker 3: and charging af fair. 302 00:14:31,400 --> 00:14:32,800 Speaker 2: The answer is probably yes. 303 00:14:33,400 --> 00:14:37,960 Speaker 3: Just explain that footprint in those markets s FLA and 304 00:14:38,800 --> 00:14:42,360 Speaker 3: Phoenix area against what others have will have not yet done. 305 00:14:42,760 --> 00:14:46,000 Speaker 8: So opening the freeway access would connect some of way 306 00:14:46,040 --> 00:14:49,600 Speaker 8: most existing markets like SF down South down all the 307 00:14:49,640 --> 00:14:51,840 Speaker 8: way to San Jose and even to the airport. And 308 00:14:51,880 --> 00:14:55,840 Speaker 8: so this would make them very competitive against traditional taxis 309 00:14:55,880 --> 00:14:59,120 Speaker 8: and ubers and lyfts and make it, you know, not 310 00:14:59,560 --> 00:15:04,280 Speaker 8: different from regular right hailing and compared with Tesla which 311 00:15:04,320 --> 00:15:07,280 Speaker 8: currently still have safety monitors in the cars, whether it's 312 00:15:07,320 --> 00:15:11,680 Speaker 8: within city trips or freeway trips. So Waimu is really 313 00:15:11,800 --> 00:15:14,280 Speaker 8: the first one that's offering like a fully drive less 314 00:15:14,320 --> 00:15:15,600 Speaker 8: experience for customers. 315 00:15:16,320 --> 00:15:18,680 Speaker 4: So I'm flying into Phoenix. I've got a nice little 316 00:15:18,720 --> 00:15:21,480 Speaker 4: airbnb that I've booked, and I'm taking my way home 317 00:15:21,560 --> 00:15:23,040 Speaker 4: to my airbnb and now I'm gonna be able to 318 00:15:23,080 --> 00:15:25,560 Speaker 4: get instacar ordered there as well, you've been a busy reporter. 319 00:15:25,640 --> 00:15:27,520 Speaker 4: What's happening over at Airbnb with instacart. 320 00:15:27,600 --> 00:15:31,360 Speaker 8: Yes, so Airbnb is piloting this kitchen stocking service with 321 00:15:31,440 --> 00:15:35,360 Speaker 8: Instacart where hosts can receive your instacrat order and then 322 00:15:35,400 --> 00:15:38,880 Speaker 8: pre stock your Airnb and so you can make use 323 00:15:38,920 --> 00:15:41,320 Speaker 8: of that kitchen while you're in a short term rental. 324 00:15:41,400 --> 00:15:42,160 Speaker 6: And so this is a. 325 00:15:42,120 --> 00:15:45,480 Speaker 8: Three month pilot that will start next year, and Airbnb 326 00:15:45,640 --> 00:15:48,320 Speaker 8: is incentivizing hosts to provide the service by giving them 327 00:15:48,360 --> 00:15:49,080 Speaker 8: some cash. 328 00:15:48,840 --> 00:15:53,280 Speaker 3: Incentives both Natalie Lung, thank you very much. Let's get 329 00:15:53,280 --> 00:15:57,160 Speaker 3: to another story. Fitness wearables company Whoop says they're considering 330 00:15:57,400 --> 00:16:00,000 Speaker 3: a potential IPO in the next two years. 331 00:16:00,320 --> 00:16:02,000 Speaker 2: That's according to CEO Will. 332 00:16:01,840 --> 00:16:05,440 Speaker 3: Ahmed, who spoke with Bloomberg Samantha Kelly and Sam joins us. Now, 333 00:16:05,800 --> 00:16:09,840 Speaker 3: we've been tracking closely with you, in particular on this program. 334 00:16:10,480 --> 00:16:14,840 Speaker 3: It's not how should I put this unusual for a 335 00:16:14,920 --> 00:16:17,320 Speaker 3: CEO of a closely followed startup to say, you know, 336 00:16:17,440 --> 00:16:20,160 Speaker 3: we're thinking about an IPO or a listing in the 337 00:16:20,280 --> 00:16:22,880 Speaker 3: not too distant future, but give us some of the 338 00:16:23,120 --> 00:16:25,760 Speaker 3: background context of why that conversation came up. 339 00:16:27,200 --> 00:16:30,080 Speaker 9: Sure, so, This is something that he's kind of hinted 340 00:16:30,120 --> 00:16:32,360 Speaker 9: at before, but this is the first time he's really 341 00:16:32,560 --> 00:16:35,480 Speaker 9: outlined perhaps in the next two years. He pointed to 342 00:16:35,560 --> 00:16:38,080 Speaker 9: the fact that the company is pretty much a standalone 343 00:16:38,120 --> 00:16:42,920 Speaker 9: business at this point, has hardware, software as accessories at peril, 344 00:16:43,000 --> 00:16:46,400 Speaker 9: its own proprietary technology, and he said that it's really 345 00:16:46,400 --> 00:16:48,480 Speaker 9: gotten to a point where they can move forward. 346 00:16:48,720 --> 00:16:50,800 Speaker 4: And you know, you raise the question if you think 347 00:16:50,840 --> 00:16:51,920 Speaker 4: about a big. 348 00:16:51,760 --> 00:16:56,360 Speaker 9: Company that really owned the idea of personalized health at 349 00:16:56,400 --> 00:16:59,400 Speaker 9: the moment in the public space, what comes to mind? 350 00:16:59,440 --> 00:17:01,680 Speaker 9: And he said, well, is the company that he wants 351 00:17:01,760 --> 00:17:04,080 Speaker 9: people to think of when the time comes. 352 00:17:04,760 --> 00:17:08,399 Speaker 4: I do feel like the health and gadgets in health 353 00:17:08,640 --> 00:17:11,720 Speaker 4: offering is just go ever more competitive though throughout well 354 00:17:11,720 --> 00:17:15,840 Speaker 4: Ahmed's journey talk us through what the product ROMap looks 355 00:17:15,880 --> 00:17:17,800 Speaker 4: like for that couple of years timeframe. 356 00:17:19,080 --> 00:17:21,560 Speaker 9: Absolutely, yeah, to your point, a lot of companies now 357 00:17:21,640 --> 00:17:23,439 Speaker 9: are really stepping it up, doing a lot of the 358 00:17:23,480 --> 00:17:28,720 Speaker 9: same type of type of features and type of results 359 00:17:28,720 --> 00:17:33,000 Speaker 9: and data. But to your point, as far as product 360 00:17:33,080 --> 00:17:35,359 Speaker 9: roadmap goes, one of the areas that a lot of 361 00:17:35,359 --> 00:17:39,280 Speaker 9: companies have yet to master is the idea of continuous 362 00:17:39,320 --> 00:17:43,399 Speaker 9: glucose monitoring. A lot of these devices they monitor your 363 00:17:43,440 --> 00:17:46,320 Speaker 9: goug host levels. A lot of people with diabetes. This 364 00:17:46,400 --> 00:17:50,080 Speaker 9: is something that they need to do, and the technology 365 00:17:50,119 --> 00:17:52,720 Speaker 9: behind it is quite clunky. It's very invasive. It usually 366 00:17:52,760 --> 00:17:56,080 Speaker 9: involves needles and the puncturing the skin. A lot of 367 00:17:56,119 --> 00:17:59,440 Speaker 9: companies want to perhaps change the form factor. Group is 368 00:17:59,480 --> 00:18:01,920 Speaker 9: one of these companies. They say that they are interested 369 00:18:02,000 --> 00:18:05,719 Speaker 9: in not only taking that information and using it as 370 00:18:05,800 --> 00:18:09,359 Speaker 9: part of you know, it's overall dashboard, but also to 371 00:18:09,359 --> 00:18:11,960 Speaker 9: figure out a new form factor that makes it easier, 372 00:18:12,400 --> 00:18:17,439 Speaker 9: more seamless, and is non invasive for users. Another area 373 00:18:17,720 --> 00:18:23,159 Speaker 9: is what he calls a operate health operating system, so 374 00:18:23,200 --> 00:18:25,200 Speaker 9: basically something that you can come to and do a 375 00:18:25,240 --> 00:18:28,200 Speaker 9: little bit of everything. And similar to how an AI 376 00:18:28,359 --> 00:18:31,840 Speaker 9: model perhaps might predict the next word if you're using 377 00:18:31,960 --> 00:18:34,200 Speaker 9: you know, a chat, GPT or something like that, WOP 378 00:18:34,280 --> 00:18:36,679 Speaker 9: has its own AI models and what it wants to 379 00:18:36,680 --> 00:18:40,920 Speaker 9: do is to look at predictive health, so perhaps taking 380 00:18:40,920 --> 00:18:43,879 Speaker 9: all the information and being preventive when it comes to 381 00:18:44,119 --> 00:18:47,120 Speaker 9: heart attacks, strokes and other things down the line. 382 00:18:47,760 --> 00:18:52,680 Speaker 4: Also some ongoing conversations therefore with the us FDAGS, Sam Kelly, 383 00:18:52,680 --> 00:18:54,800 Speaker 4: you always bring US the greatest reporting, Thank you very much. 384 00:18:54,840 --> 00:19:03,240 Speaker 3: In Dean, real quick, I want to go back to 385 00:19:03,280 --> 00:19:06,120 Speaker 3: the story of soft Bank selling out of its Nvidia 386 00:19:06,200 --> 00:19:09,440 Speaker 3: steak entirely five point six billion dollar steak now gone. 387 00:19:09,640 --> 00:19:13,160 Speaker 3: This is SoftBank's US listed shares down almost six percent 388 00:19:13,520 --> 00:19:16,400 Speaker 3: AE what delayed reaction to that news of twenty four 389 00:19:16,400 --> 00:19:20,320 Speaker 3: hours ago, but overnight in Japan in Tokyo those shares 390 00:19:20,320 --> 00:19:23,200 Speaker 3: also dropping. And again we're going back to a story 391 00:19:23,240 --> 00:19:26,439 Speaker 3: we did well yesterday. But this isn't concern about Nvidia. 392 00:19:26,680 --> 00:19:28,480 Speaker 3: It's just more about soft Bank and what. 393 00:19:28,480 --> 00:19:28,960 Speaker 2: It's up to. 394 00:19:29,359 --> 00:19:32,960 Speaker 4: Karen good reminder. And meanwhile, it's talking tech now and 395 00:19:33,040 --> 00:19:35,560 Speaker 4: first Up and video partner on high. But it's offering 396 00:19:35,600 --> 00:19:38,160 Speaker 4: a rosy outlook for twenty twenty six, citing AI as 397 00:19:38,200 --> 00:19:40,840 Speaker 4: its key growth driver that the company reported a better 398 00:19:40,840 --> 00:19:43,800 Speaker 4: than expected seventeen percent jump in net income for the 399 00:19:43,840 --> 00:19:48,200 Speaker 4: September quarter. Gairman Jung Lu struck a tone of cautious optimism, 400 00:19:48,320 --> 00:19:52,320 Speaker 4: saying the company remains very positive about AI. Plus. JD 401 00:19:52,400 --> 00:19:55,199 Speaker 4: dot Com says it's not record sales during China Singles 402 00:19:55,240 --> 00:19:58,440 Speaker 4: Day event, but they rewarded forty percent jump in shoppers orders. 403 00:19:58,480 --> 00:20:01,560 Speaker 4: This version nearly sixty percent or the sale define concerns 404 00:20:01,600 --> 00:20:05,160 Speaker 4: over week consumer spending amid persistent deflation in the country, 405 00:20:05,760 --> 00:20:08,240 Speaker 4: and shares of Infinian, well, they are soaring after the 406 00:20:08,240 --> 00:20:10,720 Speaker 4: company forecast a return to growth for revenue in twenty 407 00:20:10,760 --> 00:20:14,400 Speaker 4: twenty six, driven by global AI data center boom. Of course, 408 00:20:14,600 --> 00:20:17,800 Speaker 4: Hbergs Guy Johnson spoke with Infinean CFO svensch Niner. 409 00:20:18,920 --> 00:20:22,439 Speaker 10: We just raised the guidance for our AI revenue for 410 00:20:22,520 --> 00:20:25,359 Speaker 10: this year from one billion to one and a half, 411 00:20:25,440 --> 00:20:28,520 Speaker 10: so we are more than doubling in this fiscal year 412 00:20:28,600 --> 00:20:32,320 Speaker 10: and it will not end in twenty six. We expect 413 00:20:32,320 --> 00:20:36,919 Speaker 10: the addressable market for Infinian for powering the AI data 414 00:20:36,920 --> 00:20:40,000 Speaker 10: centers in the magnitude of eight to twelve billion, so 415 00:20:40,400 --> 00:20:45,159 Speaker 10: it's a significant idiosyncratic growth driver for the company going ahead. 416 00:20:46,640 --> 00:20:49,000 Speaker 3: The AI boom has also led to rising demand for 417 00:20:49,040 --> 00:20:52,040 Speaker 3: electricity and plans to build out nuclear power. 418 00:20:51,840 --> 00:20:53,199 Speaker 2: Facilities to meet that demand. 419 00:20:53,200 --> 00:20:56,240 Speaker 3: But despite billions in investment, hardly any of that power 420 00:20:56,400 --> 00:20:57,240 Speaker 3: will be ready. 421 00:20:57,000 --> 00:20:59,600 Speaker 2: For a decade. Our nuclear energy reporter will wad here 422 00:20:59,600 --> 00:21:02,040 Speaker 2: with more. Well, that's the story. That's the reporting. 423 00:21:02,119 --> 00:21:03,840 Speaker 3: Lots of investment up front and you got to wait 424 00:21:03,880 --> 00:21:04,840 Speaker 3: a long time to get more. 425 00:21:05,320 --> 00:21:05,560 Speaker 6: Yeah. 426 00:21:05,600 --> 00:21:07,480 Speaker 11: The thing to keep in mind about nuclear is that 427 00:21:07,640 --> 00:21:11,240 Speaker 11: everything moves really slowly, you know. I mean, any of 428 00:21:11,240 --> 00:21:14,800 Speaker 11: these power plants are major construction projects, so already that's 429 00:21:14,800 --> 00:21:16,919 Speaker 11: a slow thing. And then it's nuclear, so you know 430 00:21:17,000 --> 00:21:19,320 Speaker 11: that they are going to take their time because it 431 00:21:19,359 --> 00:21:22,200 Speaker 11: has to be safe. So it's a very slow moving industry. 432 00:21:22,520 --> 00:21:26,719 Speaker 11: There's huge demand for it now. There's as you know, 433 00:21:26,760 --> 00:21:30,200 Speaker 11: there's amazing demand for electricity now, all these big tech 434 00:21:30,200 --> 00:21:33,199 Speaker 11: companies they want electricity yesterday. But what we're going to 435 00:21:33,200 --> 00:21:35,679 Speaker 11: see in the near term is a lot more gas power. 436 00:21:36,359 --> 00:21:39,320 Speaker 4: That's so interesting And just briefly, will we're here to 437 00:21:39,320 --> 00:21:41,960 Speaker 4: talk about SMRs. We here talk about new nuclear, but 438 00:21:42,000 --> 00:21:45,639 Speaker 4: it's actually retrofitting or it's all nuclear plants that are 439 00:21:45,680 --> 00:21:46,520 Speaker 4: coming back online. 440 00:21:46,720 --> 00:21:48,800 Speaker 11: Yeah, so there's a push to reopen some of the 441 00:21:48,880 --> 00:21:52,800 Speaker 11: nuclear plants that closed and earlier in this century. You know, 442 00:21:52,880 --> 00:21:56,119 Speaker 11: I was tracking them for years and more than a 443 00:21:56,119 --> 00:21:59,560 Speaker 11: dozen reactors closed in the decade through about twenty twenty two, 444 00:22:00,080 --> 00:22:03,400 Speaker 11: and we're seeing several of them getting restarted. They were 445 00:22:03,480 --> 00:22:06,239 Speaker 11: way too expensive to operate when people didn't really value it, 446 00:22:06,280 --> 00:22:09,280 Speaker 11: but now they are willing to spend a lot of money, 447 00:22:09,320 --> 00:22:12,280 Speaker 11: especially the tech companies, because they've got these big, deep 448 00:22:12,320 --> 00:22:14,840 Speaker 11: pockets they can spend money for it. We may see 449 00:22:14,920 --> 00:22:18,320 Speaker 11: the first one of those come online January February or early 450 00:22:18,320 --> 00:22:19,320 Speaker 11: next year in Michigan. 451 00:22:19,359 --> 00:22:20,160 Speaker 2: The Palistates plan. 452 00:22:20,880 --> 00:22:24,000 Speaker 4: All eyes peeled on your reporting will wade. So it's 453 00:22:24,040 --> 00:22:25,400 Speaker 4: great to have you on around Nucleimer. 454 00:22:31,960 --> 00:22:33,320 Speaker 2: Welcome back to Bloomberg Tech. 455 00:22:33,400 --> 00:22:36,520 Speaker 3: AMD is probably our big story and mover of the day, 456 00:22:36,680 --> 00:22:39,760 Speaker 3: best performer both in terms of percentage gain and points 457 00:22:40,000 --> 00:22:42,920 Speaker 3: on Nasdaq one hundred and the Philadelphia Semiconductor Index. 458 00:22:43,359 --> 00:22:45,640 Speaker 2: The story is really clear and it's investors day. 459 00:22:45,840 --> 00:22:49,280 Speaker 3: It says top line overall thirty five percent annualized growth 460 00:22:49,359 --> 00:22:51,280 Speaker 3: over the next three to five years, but in that 461 00:22:51,400 --> 00:22:56,040 Speaker 3: key AI data center category eighty eight zero percent kieger 462 00:22:56,160 --> 00:22:59,399 Speaker 3: over the same time period, and clearly investors like it. 463 00:22:59,480 --> 00:23:03,119 Speaker 3: That ten percent gain, it's basically biggest jump in about 464 00:23:03,160 --> 00:23:07,359 Speaker 3: a month. Global Foundaries is a US based contract manufacturer 465 00:23:07,359 --> 00:23:10,600 Speaker 3: of chips. It reported pretty strong earnings. Actually in the 466 00:23:10,640 --> 00:23:14,080 Speaker 3: court have just gone for the stockdown six percent. I 467 00:23:14,080 --> 00:23:16,920 Speaker 3: guess mixed feelings are high bar coarter that kind of thing. 468 00:23:16,960 --> 00:23:19,520 Speaker 3: But right now, with the effort of this country to 469 00:23:19,680 --> 00:23:23,000 Speaker 3: re enshore manufacturing ASSEMIS. We tend to take a close 470 00:23:23,000 --> 00:23:24,919 Speaker 3: look at it and then at the index level. We 471 00:23:24,920 --> 00:23:27,040 Speaker 3: were talking about this earlier in the program Carro where 472 00:23:27,400 --> 00:23:32,000 Speaker 3: AMD is probably artificially boosting a little bit the picture 473 00:23:32,040 --> 00:23:33,800 Speaker 3: on the socks right now, which is up one point 474 00:23:33,880 --> 00:23:36,480 Speaker 3: six percent. But as we discussed with some brilliant guests 475 00:23:36,480 --> 00:23:39,800 Speaker 3: throughout the show, government shut down the big E for 476 00:23:39,880 --> 00:23:42,439 Speaker 3: earnings next Wednesday and video those are probably things that 477 00:23:42,480 --> 00:23:43,240 Speaker 3: we're bracing for. 478 00:23:43,640 --> 00:23:46,080 Speaker 4: Meanwhile, though, the AMD story is all about data centers, 479 00:23:46,080 --> 00:23:47,959 Speaker 4: isn't it. We've got yet more breaking news on that 480 00:23:48,000 --> 00:23:50,439 Speaker 4: front Meta shares. They're currently off by two point seven percent. 481 00:23:50,840 --> 00:23:53,040 Speaker 4: But this is as a social media giant is also 482 00:23:53,080 --> 00:23:55,520 Speaker 4: planning to spend yet more money, more than a billion 483 00:23:55,560 --> 00:23:58,960 Speaker 4: dollars on a new AI data center in Wisconsin. Now, 484 00:23:59,000 --> 00:24:02,200 Speaker 4: the announcement actually can Bloomberg's reporting from April about the plan. 485 00:24:02,600 --> 00:24:04,600 Speaker 4: Let's get a reminder on it. Kurt Wagner joins us, 486 00:24:04,680 --> 00:24:07,879 Speaker 4: who covers the company and almost feels a drop in 487 00:24:07,920 --> 00:24:10,720 Speaker 4: the bucket of what the ultimate capex that Mark Zuckerberg 488 00:24:10,800 --> 00:24:13,320 Speaker 4: is currently saying is going to spend. But this is 489 00:24:13,359 --> 00:24:14,280 Speaker 4: big for Wisconsin. 490 00:24:15,640 --> 00:24:19,040 Speaker 12: Yeah, it's big for Wisconsin, and it's a sign Caroline 491 00:24:19,040 --> 00:24:22,400 Speaker 12: that this is just a you know, snowball that continues 492 00:24:22,440 --> 00:24:25,160 Speaker 12: to roll downhill in terms of AI infrastructure for Meta. 493 00:24:25,240 --> 00:24:27,920 Speaker 12: Right we're now talking about data centers in Ohio, in 494 00:24:27,960 --> 00:24:31,000 Speaker 12: Texas and Louisiana. This one in Wisconsin that they just 495 00:24:31,040 --> 00:24:34,879 Speaker 12: announced it this morning, and so these are you know, 496 00:24:35,000 --> 00:24:37,480 Speaker 12: projects that aren't even going to be really online and 497 00:24:37,520 --> 00:24:41,240 Speaker 12: operational for several years. It just gives you a real 498 00:24:41,359 --> 00:24:44,160 Speaker 12: sense of how much this company is betting on the future, 499 00:24:44,240 --> 00:24:47,320 Speaker 12: betting on AI and wanting to control this stuff themselves, right, 500 00:24:47,400 --> 00:24:51,080 Speaker 12: not necessarily going out and paying another tech company to 501 00:24:51,160 --> 00:24:54,240 Speaker 12: use their data center, but really trying to own that 502 00:24:54,320 --> 00:24:55,480 Speaker 12: infrastructure themselves. 503 00:24:56,440 --> 00:24:58,440 Speaker 3: That's where I wanted to go. So the headline right 504 00:24:58,440 --> 00:25:01,200 Speaker 3: now is a one billion dollar day center in Wisconsin, 505 00:25:01,640 --> 00:25:04,479 Speaker 3: but the bigger figure is six hundred billion dollars. As 506 00:25:04,520 --> 00:25:07,919 Speaker 3: Karen pointed out, over a period of years, Meta is 507 00:25:07,920 --> 00:25:11,760 Speaker 3: not a hyperscaler. It's a technology company social media focus 508 00:25:11,840 --> 00:25:14,840 Speaker 3: that also has an AI lab within it. Just explain 509 00:25:15,119 --> 00:25:18,880 Speaker 3: why Meta thinks the best approach is to build its 510 00:25:18,880 --> 00:25:22,119 Speaker 3: own infrastructure and have its own compute available to its 511 00:25:22,160 --> 00:25:24,480 Speaker 3: teams internally as much as anything else. 512 00:25:25,600 --> 00:25:28,520 Speaker 12: I mean, my read on this ed is to go 513 00:25:28,640 --> 00:25:32,120 Speaker 12: back more than a well over a decade ago when 514 00:25:33,160 --> 00:25:36,120 Speaker 12: Meta really missed out on the mobile phone right. And 515 00:25:36,200 --> 00:25:39,399 Speaker 12: Mark Zuckerberg has spent now years and years and years 516 00:25:39,440 --> 00:25:43,720 Speaker 12: reliant on Apple and Google primarily to distribute his products 517 00:25:43,720 --> 00:25:47,440 Speaker 12: to his users. And we see this with I think 518 00:25:47,480 --> 00:25:50,120 Speaker 12: he regrets that he's talked about regretting that he's talked 519 00:25:50,119 --> 00:25:52,520 Speaker 12: about the challenges that come with being reliant on another 520 00:25:52,600 --> 00:25:55,280 Speaker 12: major tech company. And so we see what they're building 521 00:25:55,280 --> 00:25:57,440 Speaker 12: around their own hardware in terms of AR and VR 522 00:25:57,520 --> 00:25:59,800 Speaker 12: with glasses, where we see what they do around their 523 00:25:59,800 --> 00:26:02,520 Speaker 12: own data centers. I really think this is very much 524 00:26:02,640 --> 00:26:05,479 Speaker 12: a control thing. This is something that the company has 525 00:26:05,520 --> 00:26:07,840 Speaker 12: been burned on in the past. If you ask Mark, 526 00:26:08,160 --> 00:26:10,880 Speaker 12: and you know, they have a chance to control their 527 00:26:10,920 --> 00:26:13,320 Speaker 12: own destiny a little bit with this AI infrastructure, and 528 00:26:13,359 --> 00:26:15,399 Speaker 12: so I think they're leaning into it because of that. 529 00:26:17,520 --> 00:26:19,080 Speaker 2: Kurt, what happens next with Meta? 530 00:26:19,200 --> 00:26:21,920 Speaker 3: Right, they had these big projects, like there's this map 531 00:26:21,960 --> 00:26:24,960 Speaker 3: that people show on the social medias of Meta's data 532 00:26:25,000 --> 00:26:29,040 Speaker 3: centers occupying New York City in Central Park. Just give 533 00:26:29,280 --> 00:26:32,040 Speaker 3: the sort of headline summary of their total ambitions. 534 00:26:33,480 --> 00:26:36,000 Speaker 12: Yeah, so you mentioned that's the data center in Louisiana, 535 00:26:36,160 --> 00:26:40,840 Speaker 12: This one that could be as large as five gigawatts 536 00:26:40,320 --> 00:26:44,600 Speaker 12: of power and compute. Ultimately, I think this is a 537 00:26:44,640 --> 00:26:47,760 Speaker 12: company that, as we've talked about, is building several different 538 00:26:47,840 --> 00:26:50,560 Speaker 12: data centers in order to spread this out. But I 539 00:26:50,600 --> 00:26:53,280 Speaker 12: think the big thing for them, quite frankly data centers aside, 540 00:26:53,320 --> 00:26:54,919 Speaker 12: because those are still a few years away. 541 00:26:55,320 --> 00:26:56,680 Speaker 6: They need to show. 542 00:26:56,320 --> 00:26:59,080 Speaker 12: That all of this talent that they spent billions of 543 00:26:59,119 --> 00:27:01,840 Speaker 12: dollars on over the sum these these AI researchers and 544 00:27:01,920 --> 00:27:05,640 Speaker 12: engineers are going to deliver a world class model, and 545 00:27:05,720 --> 00:27:08,040 Speaker 12: so we will see that at some point I imagine 546 00:27:08,040 --> 00:27:09,640 Speaker 12: in the next six months or so, where they will 547 00:27:09,640 --> 00:27:12,399 Speaker 12: come out with a new model that they need to 548 00:27:12,480 --> 00:27:15,479 Speaker 12: be on par with you know, Open AI and Google 549 00:27:15,560 --> 00:27:18,159 Speaker 12: and other top class models to sort of show that 550 00:27:18,240 --> 00:27:21,840 Speaker 12: it's not just building the infrastructure, but it's actually capitalizing 551 00:27:21,920 --> 00:27:24,080 Speaker 12: on that talent and having a product to deploy to 552 00:27:24,119 --> 00:27:28,440 Speaker 12: people that that sort of reflects this investment on infrastructure. 553 00:27:28,560 --> 00:27:32,320 Speaker 12: So the data centers are years off, I think more urgently, 554 00:27:32,560 --> 00:27:34,680 Speaker 12: you know, the pressures on them to deliver a real 555 00:27:34,720 --> 00:27:37,560 Speaker 12: world class model here in the next six months. 556 00:27:37,720 --> 00:27:40,480 Speaker 3: Blue vers Kurt Wagner, thank you very much. Let's get 557 00:27:40,480 --> 00:27:43,560 Speaker 3: back to that AMD story. Shares absolutely surging up almost 558 00:27:43,600 --> 00:27:46,480 Speaker 3: ten percent over the course of the day. That shows 559 00:27:46,520 --> 00:27:49,520 Speaker 3: the training over a couple of days. It sees accelerating 560 00:27:49,560 --> 00:27:52,879 Speaker 3: sales growth over the next five years, driven by strong 561 00:27:52,920 --> 00:27:56,480 Speaker 3: demand for its data center products. CEO Lisa Su updated 562 00:27:56,520 --> 00:27:59,920 Speaker 3: investors on AMD's long term outlook, a mid rising concern 563 00:28:00,520 --> 00:28:03,040 Speaker 3: of massive spending, some of which Kurt has outlined. Let's 564 00:28:03,040 --> 00:28:05,760 Speaker 3: get to bloem mazine King who leads our coverage to semiconductors. 565 00:28:06,119 --> 00:28:08,520 Speaker 2: Clearly, this is a positive. 566 00:28:08,080 --> 00:28:11,439 Speaker 3: Market reaction to AMD saying, here's what we see for 567 00:28:11,440 --> 00:28:15,440 Speaker 3: the next five years. But that eighty percent Kaga compound 568 00:28:15,560 --> 00:28:18,760 Speaker 3: analyzed growth for the data center business, that's the headline, really, 569 00:28:18,800 --> 00:28:19,119 Speaker 3: isn't it. 570 00:28:19,240 --> 00:28:19,400 Speaker 8: Yeah. 571 00:28:19,440 --> 00:28:20,840 Speaker 13: I mean there were a lot of headlines, a lot 572 00:28:20,880 --> 00:28:23,080 Speaker 13: of numbers, and if you actually look at what happened 573 00:28:23,400 --> 00:28:26,480 Speaker 13: as they were speaking, stock really didn't do very much. 574 00:28:26,560 --> 00:28:29,439 Speaker 13: Then after hours, when the management were on stage and 575 00:28:29,440 --> 00:28:32,760 Speaker 13: we're being questioned, they put in a strong performance and 576 00:28:32,800 --> 00:28:34,919 Speaker 13: that's really when the start started to pick up. And 577 00:28:34,960 --> 00:28:38,760 Speaker 13: that's what the analysts and investors have reacted to really in. 578 00:28:39,240 --> 00:28:42,960 Speaker 4: Was enough articulation given by Lisa Sue as to if 579 00:28:43,000 --> 00:28:45,440 Speaker 4: open aiy is good for the money longer term. She 580 00:28:45,520 --> 00:28:48,240 Speaker 4: was asked a lot about some of these nervousness, about 581 00:28:48,520 --> 00:28:54,360 Speaker 4: these circular deals about nai bubble. In other kind of words, yeah. 582 00:28:54,160 --> 00:28:56,480 Speaker 13: I mean you're right, she was asked about that, sort 583 00:28:56,480 --> 00:28:59,080 Speaker 13: of talked around it. Then the analysts were like, now, 584 00:28:59,080 --> 00:29:01,239 Speaker 13: come on, you've got to help us out here. And 585 00:29:01,280 --> 00:29:04,600 Speaker 13: what she said really was, look, if everything happens as 586 00:29:04,640 --> 00:29:07,160 Speaker 13: though it is laid out, as we get the users, 587 00:29:07,240 --> 00:29:10,800 Speaker 13: the amount of models deployed in everything, the money's going 588 00:29:10,840 --> 00:29:11,120 Speaker 13: to be. 589 00:29:11,080 --> 00:29:14,080 Speaker 2: There real quick. The money going to be there. I believe. 590 00:29:14,120 --> 00:29:16,480 Speaker 3: Lisa Sue is asked by some of the analyst community 591 00:29:16,520 --> 00:29:19,200 Speaker 3: about the relationship with open AI and they pose the 592 00:29:19,280 --> 00:29:21,200 Speaker 3: question that we tried to some weeks ago when she 593 00:29:21,280 --> 00:29:23,640 Speaker 3: was in the seat you're in, is open ai good 594 00:29:23,640 --> 00:29:23,920 Speaker 3: for it? 595 00:29:24,360 --> 00:29:27,240 Speaker 13: And she said yes, don't rule them out? Was her strong, 596 00:29:27,720 --> 00:29:32,240 Speaker 13: strong sort of retort to that push. 597 00:29:30,880 --> 00:29:33,360 Speaker 4: Than king, we love it, Thank you very much. Md 598 00:29:33,520 --> 00:29:34,640 Speaker 4: on an absolute. 599 00:29:34,200 --> 00:29:44,720 Speaker 3: Ten startup for Terror has just closed a two hundred 600 00:29:44,760 --> 00:29:47,200 Speaker 3: and thirty eight million dollar funding round that raises its 601 00:29:47,280 --> 00:29:51,680 Speaker 3: valuations more than a billion dollars for Terror's Autonomous technology 602 00:29:52,120 --> 00:29:55,680 Speaker 3: is used for battlefield vehicles that can operate individually or 603 00:29:56,040 --> 00:30:00,120 Speaker 3: as a swarm, to conduct surveillance or to carry items 604 00:30:00,160 --> 00:30:06,200 Speaker 3: such as missiles. Here discuss for terra Ceo Josh Arajo. Josh, 605 00:30:06,240 --> 00:30:08,720 Speaker 3: you join us from the webs summit in Lisbon. Thank 606 00:30:08,760 --> 00:30:11,320 Speaker 3: you for being here on Bloomberg Tech. I want to 607 00:30:11,320 --> 00:30:13,880 Speaker 3: bring back some of that video of the technology and 608 00:30:13,920 --> 00:30:17,800 Speaker 3: we'll get to the rais, but just explain the autonomous system, 609 00:30:18,040 --> 00:30:21,360 Speaker 3: the payload and the swarm effect that we were just discussing. 610 00:30:22,760 --> 00:30:25,840 Speaker 14: Yeah, so what we're providing or really enabling, is the 611 00:30:25,920 --> 00:30:29,800 Speaker 14: use of any vehicle to carry any mission capability into 612 00:30:29,840 --> 00:30:32,080 Speaker 14: combat and support of our men and women who are 613 00:30:32,200 --> 00:30:33,280 Speaker 14: are serving our country. 614 00:30:33,720 --> 00:30:35,720 Speaker 6: So you think about you know, a lot of. 615 00:30:35,680 --> 00:30:40,520 Speaker 14: Investment in defense tech has happened in many other domain space, air, maritime, 616 00:30:41,080 --> 00:30:43,160 Speaker 14: but really where the wars are fought and more wars 617 00:30:43,200 --> 00:30:44,600 Speaker 14: are won, or by the men and women on the 618 00:30:44,600 --> 00:30:48,480 Speaker 14: ground doing the hard, dangerous work of our ground combat forces. 619 00:30:48,480 --> 00:30:51,480 Speaker 14: So this technology is really you know, in support of them. 620 00:30:51,520 --> 00:30:53,680 Speaker 14: It's what gets us excited, gets us up in the morning, 621 00:30:53,760 --> 00:30:57,280 Speaker 14: is to go deliver you know, really mission critical life 622 00:30:57,360 --> 00:31:00,120 Speaker 14: saving technologies that takes them out of harm's way and 623 00:31:00,160 --> 00:31:02,880 Speaker 14: allows them to accomplish those missions really from anywhere in 624 00:31:02,880 --> 00:31:05,440 Speaker 14: the world, and particularly from a much safer position than 625 00:31:05,440 --> 00:31:06,360 Speaker 14: writing in that vehicle. 626 00:31:07,280 --> 00:31:09,360 Speaker 3: The two hundred and thirty eight million dollars Series C 627 00:31:09,600 --> 00:31:12,680 Speaker 3: is split between equity and debt. What is it that 628 00:31:12,720 --> 00:31:16,760 Speaker 3: you need the funds for in scaling and deploying your 629 00:31:16,800 --> 00:31:18,160 Speaker 3: technology to the battlefield. 630 00:31:19,440 --> 00:31:21,520 Speaker 14: Yeah, so if you look at the priorities for the 631 00:31:21,560 --> 00:31:25,840 Speaker 14: Department of War and Secretary Headset had a really great 632 00:31:25,840 --> 00:31:28,920 Speaker 14: speech last week. I've had the pleasure to be there. Really, 633 00:31:28,960 --> 00:31:32,640 Speaker 14: what they're indexed on is speed, scale and capability. So 634 00:31:32,680 --> 00:31:35,080 Speaker 14: how do you get more capability into the hands of 635 00:31:35,080 --> 00:31:39,040 Speaker 14: war fighters faster and at scale. So what this fundy 636 00:31:39,080 --> 00:31:41,520 Speaker 14: is being able is really to do just that. Everything 637 00:31:41,560 --> 00:31:45,520 Speaker 14: from acquisitions and M and A. We recently acquired Gotene, 638 00:31:45,600 --> 00:31:48,920 Speaker 14: which really brings more capability tightly integrated to the war fighter. 639 00:31:49,400 --> 00:31:52,360 Speaker 14: We're using to invest in additional capabilities. If you look 640 00:31:52,400 --> 00:31:55,280 Speaker 14: at these vehicles on the screen, those are now mobile 641 00:31:55,360 --> 00:31:58,600 Speaker 14: data centers with comms compute sensing that are now fully 642 00:31:58,640 --> 00:31:59,920 Speaker 14: distributed on the battlefield. 643 00:32:00,120 --> 00:32:00,960 Speaker 12: Will deliver more. 644 00:32:00,800 --> 00:32:04,840 Speaker 14: Than two hundred systems into operational combat environments this year. 645 00:32:05,160 --> 00:32:07,680 Speaker 14: So it's how do we take more capability and leverage 646 00:32:07,720 --> 00:32:10,360 Speaker 14: that compute comms and sensing at the edge to bring 647 00:32:10,400 --> 00:32:15,720 Speaker 14: additional payloads, additional sensing, additional firepower, and really help those 648 00:32:15,760 --> 00:32:17,720 Speaker 14: missions close for those men and women that are out 649 00:32:17,720 --> 00:32:19,040 Speaker 14: there defend in our country. 650 00:32:19,360 --> 00:32:22,360 Speaker 4: Just let's just talk about the underlying technology, the innovation 651 00:32:22,440 --> 00:32:26,200 Speaker 4: that you brought here. Because you're kind of outfitting these 652 00:32:26,280 --> 00:32:30,800 Speaker 4: existing vehicles with your own sensors. How are you working 653 00:32:30,800 --> 00:32:32,400 Speaker 4: with partners and what is it that you brought that 654 00:32:32,480 --> 00:32:33,560 Speaker 4: no one else really had. 655 00:32:34,840 --> 00:32:36,760 Speaker 14: Yeah, I think it's our ability to work with vest 656 00:32:36,760 --> 00:32:41,640 Speaker 14: in class capability, best in class partners, So traditional defense primes, 657 00:32:41,680 --> 00:32:44,880 Speaker 14: they are excellent at building vehicles at scale, so we 658 00:32:44,880 --> 00:32:47,680 Speaker 14: can take their capability made it with our technology, which 659 00:32:47,680 --> 00:32:51,440 Speaker 14: is really the compute sensors, the autonomy software, leveraging the 660 00:32:51,520 --> 00:32:54,280 Speaker 14: latest and greatest in AI to enable those vehicles to 661 00:32:54,360 --> 00:32:55,800 Speaker 14: do really complex missions. 662 00:32:55,800 --> 00:32:56,600 Speaker 6: And it's not just. 663 00:32:56,840 --> 00:32:58,400 Speaker 14: Hey, I have a vehicle that can drive point A 664 00:32:58,440 --> 00:33:01,280 Speaker 14: to point B safe, It's how do I have that 665 00:33:01,400 --> 00:33:05,120 Speaker 14: vehicle or system really close the gap for an entire mission, 666 00:33:05,160 --> 00:33:07,680 Speaker 14: whether it be a mind clearing mission, a ship and 667 00:33:07,720 --> 00:33:11,200 Speaker 14: addiction mission, a resupplied mission, and have multiple vehicles coordinate 668 00:33:11,240 --> 00:33:13,440 Speaker 14: together where there would otherwise be a human doing that. 669 00:33:13,480 --> 00:33:16,760 Speaker 14: So that requires a pretty unique insight into how military 670 00:33:16,800 --> 00:33:21,440 Speaker 14: operations work on the technology that needed to enable that, 671 00:33:21,720 --> 00:33:23,760 Speaker 14: and so it's really working with best in class partners. 672 00:33:24,120 --> 00:33:25,720 Speaker 6: We want to bring the. 673 00:33:25,680 --> 00:33:27,960 Speaker 14: Best in class of defense tech the defense primes, and 674 00:33:27,960 --> 00:33:30,760 Speaker 14: then it helped integrate those into a cohesive system that 675 00:33:30,880 --> 00:33:33,400 Speaker 14: really serves that again, that eighteen to twenty five year 676 00:33:33,400 --> 00:33:36,640 Speaker 14: old who's out there on the front line, standing there 677 00:33:36,640 --> 00:33:37,600 Speaker 14: for a nation's defense. 678 00:33:38,280 --> 00:33:41,280 Speaker 4: You've been building this business since two thousand and two, Josh, 679 00:33:41,520 --> 00:33:43,760 Speaker 4: and I just want to get your context on how 680 00:33:43,840 --> 00:33:46,200 Speaker 4: much has changed just in the last few months. Say yeah, 681 00:33:46,240 --> 00:33:48,400 Speaker 4: because we're on track for a record amount of defense 682 00:33:48,440 --> 00:33:51,080 Speaker 4: tech investing we've got As you talk about Department of 683 00:33:51,120 --> 00:33:54,880 Speaker 4: War really thinking about bringing on startups, does that feel 684 00:33:55,040 --> 00:33:56,040 Speaker 4: seismically different. 685 00:33:57,640 --> 00:33:59,600 Speaker 6: It seems it's a lot has changed. 686 00:33:59,600 --> 00:34:01,080 Speaker 14: But if you look at back when the company is 687 00:34:01,120 --> 00:34:04,000 Speaker 14: founded in two thousand and two, the threat that was 688 00:34:04,040 --> 00:34:07,640 Speaker 14: really facing you know, PREE nine to eleven was was 689 00:34:07,760 --> 00:34:11,400 Speaker 14: near peer competitive threats, tank on tank battles and autonomy 690 00:34:11,480 --> 00:34:14,480 Speaker 14: and robotics We're looked at even back then on how 691 00:34:14,480 --> 00:34:17,719 Speaker 14: do you deter a near peer conflict? How do you 692 00:34:17,760 --> 00:34:20,799 Speaker 14: prevent the next large scale warfare from happening? And that's 693 00:34:20,840 --> 00:34:23,760 Speaker 14: really through robotics and autonomy. So you fast forward to today, 694 00:34:24,120 --> 00:34:27,120 Speaker 14: we're now several years into the Ukraine Russia conflict. We're 695 00:34:27,120 --> 00:34:32,200 Speaker 14: looking at tensions in the Pacific theater, and again we 696 00:34:32,280 --> 00:34:35,759 Speaker 14: don't have the size of the military both in terms 697 00:34:35,800 --> 00:34:39,279 Speaker 14: of distance and space to go occupy and deter and 698 00:34:39,320 --> 00:34:42,319 Speaker 14: project the firepower to deter the next conflict. And so 699 00:34:42,320 --> 00:34:44,120 Speaker 14: it's just you know, what's old is new again, it's 700 00:34:44,160 --> 00:34:46,440 Speaker 14: how do you leverage capability and technology to do that. 701 00:34:46,760 --> 00:34:48,759 Speaker 14: I think we have the benefit of today that we 702 00:34:48,800 --> 00:34:51,720 Speaker 14: didn't have in two thousand and two was very low cost, 703 00:34:52,000 --> 00:34:55,200 Speaker 14: very capable compute orders of magnitude more compute that's available 704 00:34:55,200 --> 00:34:59,560 Speaker 14: to do this, technology sensors, an ecosystem of technology providers 705 00:34:59,560 --> 00:35:02,040 Speaker 14: that are folk on the defense industry. And if you 706 00:35:02,080 --> 00:35:05,120 Speaker 14: look at how the defense industry and Secretary Hegseth said 707 00:35:05,120 --> 00:35:07,279 Speaker 14: in themselves last week, is we have to get back 708 00:35:07,320 --> 00:35:10,680 Speaker 14: to the rapid innovation, rapid deployment of capability at scale. 709 00:35:10,840 --> 00:35:13,520 Speaker 14: We used to do that back in the World War 710 00:35:13,560 --> 00:35:17,239 Speaker 14: two and beyond. We've lost that along the way, and 711 00:35:17,280 --> 00:35:20,000 Speaker 14: that's really that emergence is coming back, which is exciting. 712 00:35:20,320 --> 00:35:24,920 Speaker 4: Josh Rajo for Terra Ceo, joining from Lisbon websummit. We 713 00:35:24,960 --> 00:35:29,480 Speaker 4: appreciate it, Thank you and coming up. Investors. I AI 714 00:35:30,200 --> 00:35:32,959 Speaker 4: to help Cisco reach dot com levels. We're closed about 715 00:35:32,960 --> 00:35:35,800 Speaker 4: thirteen percent off of those numbers hit back at the 716 00:35:35,800 --> 00:35:37,520 Speaker 4: beginning of the century. Visibly bagtet. 717 00:35:51,719 --> 00:35:54,720 Speaker 3: Cisco reports earnings after the closing bell. Investors are watching 718 00:35:54,760 --> 00:35:57,360 Speaker 3: for signs of gains from its AI investments, though some 719 00:35:57,440 --> 00:36:00,640 Speaker 3: on Wall Street remain wary will ever read it's dot 720 00:36:00,680 --> 00:36:05,319 Speaker 3: com era peak despite being pretty close. Bloomberg'sdina Bass joins us, 721 00:36:05,640 --> 00:36:07,799 Speaker 3: that's kind of been the story of Cisco for. 722 00:36:07,719 --> 00:36:08,480 Speaker 2: A little while. 723 00:36:08,840 --> 00:36:11,040 Speaker 3: You know, back in the day it was the big 724 00:36:11,080 --> 00:36:15,719 Speaker 3: technology company, and present day we're kind of waiting for 725 00:36:15,760 --> 00:36:18,400 Speaker 3: it to get involved and see benefit from all the 726 00:36:18,400 --> 00:36:20,239 Speaker 3: things that others are pulling ahead in. 727 00:36:20,400 --> 00:36:21,600 Speaker 2: Is that a fair preview. 728 00:36:22,840 --> 00:36:23,360 Speaker 15: Absolutely. 729 00:36:23,400 --> 00:36:25,920 Speaker 16: Look, when I started as a reporter more than twenty 730 00:36:25,920 --> 00:36:28,640 Speaker 16: five years ago, it was right around where BusinessWeek dubbed 731 00:36:28,640 --> 00:36:31,120 Speaker 16: Cisco one of the four horsemen of the Internet era, 732 00:36:31,680 --> 00:36:34,320 Speaker 16: and you know, those horsemen, all to varying. 733 00:36:34,080 --> 00:36:35,240 Speaker 15: Degrees, ran out of steam. 734 00:36:35,400 --> 00:36:39,239 Speaker 16: Cisco's trying to use AI to reltigate that and to 735 00:36:39,280 --> 00:36:42,680 Speaker 16: get back into a leadership role. But when you compare 736 00:36:42,719 --> 00:36:45,720 Speaker 16: it to some of the other company, the other AI bets, 737 00:36:45,719 --> 00:36:49,880 Speaker 16: the other AI companies, it's, you know, with their forecast 738 00:36:49,920 --> 00:36:53,240 Speaker 16: increase in revenue and profit is quite a bit more modest. 739 00:36:53,560 --> 00:36:55,719 Speaker 4: You go to August when it had its fiscal fourth 740 00:36:55,760 --> 00:36:58,400 Speaker 4: quarter report and they talked about the one billion that 741 00:36:58,440 --> 00:37:01,320 Speaker 4: they saw in the AI sales coming from fiscal twenty 742 00:37:01,360 --> 00:37:05,759 Speaker 4: twenty five. How better can they articulate what they're providing 743 00:37:05,880 --> 00:37:07,600 Speaker 4: in the AI ecosystem right now? 744 00:37:07,680 --> 00:37:12,239 Speaker 16: Dina investors probably want to see just something that's a 745 00:37:12,280 --> 00:37:17,320 Speaker 16: little bit more sustained and just you know, continued winning deals, 746 00:37:17,360 --> 00:37:22,000 Speaker 16: continued development of the products to capitalize. So what they've 747 00:37:22,040 --> 00:37:27,319 Speaker 16: basically been doing is you know, redoing their networking products, 748 00:37:27,320 --> 00:37:29,840 Speaker 16: a bunch of their software to really take advantage, you know, 749 00:37:29,840 --> 00:37:33,239 Speaker 16: particularly on the networking side of the opportunity to connect 750 00:37:33,600 --> 00:37:36,760 Speaker 16: server cs, to connect you know, data centers in between 751 00:37:36,840 --> 00:37:41,200 Speaker 16: different data centers to better position those products for enabling 752 00:37:41,239 --> 00:37:44,200 Speaker 16: AI workloads. But you know, that's a competitive space that's 753 00:37:44,239 --> 00:37:47,360 Speaker 16: a space where Broadcom fleas as well, and where Broadcom 754 00:37:47,440 --> 00:37:51,560 Speaker 16: is is you know, definitely better known. So it's really 755 00:37:51,640 --> 00:37:55,480 Speaker 16: kind of a you know, show me consistent performance, consistent 756 00:37:55,560 --> 00:37:59,600 Speaker 16: deal winning, and a consistent roadmap of products that are 757 00:37:59,600 --> 00:38:02,960 Speaker 16: going to go where the AI market you know is 758 00:38:03,440 --> 00:38:05,319 Speaker 16: not just now, but we'll be in the future. 759 00:38:06,000 --> 00:38:09,560 Speaker 4: And show me a return to the highs in the 760 00:38:09,600 --> 00:38:12,520 Speaker 4: eighty dollars price tag that we saw back in the 761 00:38:12,680 --> 00:38:15,120 Speaker 4: or naughties. Dina Bas, we thank you so much for 762 00:38:15,239 --> 00:38:18,120 Speaker 4: thing Cisco, and look, Cisco is aiming at AI data centers. 763 00:38:18,120 --> 00:38:20,040 Speaker 4: We're just talking about it. Kim Forrest, spoke, a Capital 764 00:38:20,040 --> 00:38:22,239 Speaker 4: partner CIO, says, actually, the build out of a data 765 00:38:22,239 --> 00:38:25,040 Speaker 4: center will take a lot longer than all street things. 766 00:38:25,280 --> 00:38:27,239 Speaker 4: You're joining us now on the theme of the day, 767 00:38:27,280 --> 00:38:29,719 Speaker 4: I think it has been all about data centers, whether 768 00:38:29,760 --> 00:38:32,160 Speaker 4: it's fifty billion coming from Anthropic, whether we're thinking about 769 00:38:32,400 --> 00:38:36,000 Speaker 4: Meta continuing its focus in Wisconsin. But why do you 770 00:38:36,040 --> 00:38:40,760 Speaker 4: think it's too much too soon from the wall streets perspective, Well. 771 00:38:40,560 --> 00:38:41,759 Speaker 15: For a lot of reasons. 772 00:38:42,680 --> 00:38:46,880 Speaker 17: Living in a virtual world, as most of Silicon Valley does, 773 00:38:47,520 --> 00:38:50,239 Speaker 17: it's really hard whenever they have to, you know, go 774 00:38:50,360 --> 00:38:53,520 Speaker 17: out into the real world and do physical things. And 775 00:38:53,560 --> 00:38:57,280 Speaker 17: that's what we're talking about with data centers. We need power, 776 00:38:57,719 --> 00:39:03,960 Speaker 17: we need really kind of exotic they're kind of boring buildings, 777 00:39:04,000 --> 00:39:07,440 Speaker 17: but they need to be very uniform and there's only 778 00:39:07,520 --> 00:39:10,440 Speaker 17: certain kind of people that can build them, and then 779 00:39:10,480 --> 00:39:14,200 Speaker 17: we have the demand. So I've seen some reports maybe 780 00:39:14,200 --> 00:39:17,880 Speaker 17: I bloomber about how some data centers that are already 781 00:39:17,960 --> 00:39:21,919 Speaker 17: established or having problems, you know, selling their capacity. 782 00:39:22,080 --> 00:39:25,239 Speaker 15: So we have a lot of physical world problems. 783 00:39:25,640 --> 00:39:29,080 Speaker 17: But I think my biggest thing is is I'm not 784 00:39:29,160 --> 00:39:32,200 Speaker 17: a believer that we really need all these data centers. 785 00:39:32,280 --> 00:39:36,319 Speaker 17: I think human beings are incredibly smart and are going 786 00:39:36,360 --> 00:39:38,480 Speaker 17: to work around what we're doing now, which is the 787 00:39:38,480 --> 00:39:43,120 Speaker 17: brute for force method of training large language models. I 788 00:39:43,200 --> 00:39:46,920 Speaker 17: believe in AI, just not AI as it's presented right now. 789 00:39:47,000 --> 00:39:49,279 Speaker 4: So Kim, there's the rub, right because you're not just 790 00:39:49,320 --> 00:39:52,560 Speaker 4: saying that we've got utilities issues, power issues, supply chain issues. 791 00:39:52,600 --> 00:39:54,600 Speaker 4: You're saying we're going to innovate ourselves out of that 792 00:39:54,680 --> 00:39:56,239 Speaker 4: all we go to the United States or is it 793 00:39:56,239 --> 00:39:58,080 Speaker 4: going to be Asia. 794 00:39:58,200 --> 00:40:00,839 Speaker 17: Well, right now, it looks like Asia was first on 795 00:40:00,960 --> 00:40:03,799 Speaker 17: track with the whole deep seek product that they came 796 00:40:03,840 --> 00:40:04,279 Speaker 17: out with. 797 00:40:04,440 --> 00:40:06,600 Speaker 15: Right, we can quibble about if. 798 00:40:06,480 --> 00:40:11,919 Speaker 17: They unfairly used open AI to leverage, but they did 799 00:40:12,000 --> 00:40:14,839 Speaker 17: leverage and that's the most important part. They thought out 800 00:40:14,880 --> 00:40:17,360 Speaker 17: of the box as opposed to saying, you know, we 801 00:40:17,480 --> 00:40:19,799 Speaker 17: need to have this state of Texas be one big 802 00:40:19,880 --> 00:40:24,480 Speaker 17: data center. I'm using hyperbole here, but you know, they 803 00:40:24,560 --> 00:40:26,759 Speaker 17: thought about how can we do this differently? And I 804 00:40:26,800 --> 00:40:30,840 Speaker 17: think ultimately it's a good race between the US and 805 00:40:30,880 --> 00:40:33,880 Speaker 17: the West in general and China about who is going 806 00:40:33,920 --> 00:40:37,360 Speaker 17: to be able to come up with usable AI that 807 00:40:37,560 --> 00:40:40,800 Speaker 17: doesn't you know, break the bank and cost every last 808 00:40:40,880 --> 00:40:44,960 Speaker 17: dollar that Microsoft, Meta and Face and the rest of 809 00:40:45,000 --> 00:40:45,359 Speaker 17: them have. 810 00:40:47,000 --> 00:40:51,440 Speaker 3: Kim, you've presented your thesis. So as an investor, custodian 811 00:40:51,960 --> 00:40:56,520 Speaker 3: fiduciary of your clients, how do you invest to support 812 00:40:56,560 --> 00:40:57,880 Speaker 3: the thesis you've just outlined? 813 00:40:58,840 --> 00:41:03,520 Speaker 15: Sure, well, I think we have to have many options. Right, 814 00:41:04,320 --> 00:41:06,120 Speaker 15: we do own some in video, but we. 815 00:41:06,200 --> 00:41:10,440 Speaker 17: Also own a m D Micron and believe it or not, 816 00:41:10,600 --> 00:41:14,840 Speaker 17: Intel AI is real and AI is going to. 817 00:41:14,840 --> 00:41:19,200 Speaker 3: Have very bim Sorry, may I just interrupt you? Like 818 00:41:19,280 --> 00:41:22,319 Speaker 3: the AMD story today, the whole thing is predicated on 819 00:41:22,360 --> 00:41:26,120 Speaker 3: the idea that they do participate in some massive data 820 00:41:26,160 --> 00:41:28,319 Speaker 3: center build out. And you just said we don't need 821 00:41:28,360 --> 00:41:29,200 Speaker 3: the data centers. 822 00:41:30,120 --> 00:41:32,839 Speaker 17: Well, there's going to be some data centers, but not 823 00:41:32,920 --> 00:41:34,560 Speaker 17: as many as are planned currently. 824 00:41:35,120 --> 00:41:38,160 Speaker 15: And I think that's the big thing that even you know, 825 00:41:38,320 --> 00:41:39,560 Speaker 15: last week's big. 826 00:41:42,040 --> 00:41:45,560 Speaker 17: In the world of AI was the Brad Gessner and 827 00:41:45,719 --> 00:41:48,640 Speaker 17: Sam Altman interview where you know. 828 00:41:48,680 --> 00:41:50,520 Speaker 15: They're saying, where are you getting the money? Sam? 829 00:41:50,960 --> 00:41:53,640 Speaker 17: So, I mean, there's a lot of concern about the 830 00:41:53,680 --> 00:41:56,760 Speaker 17: whole theory of we need all of these data centers, 831 00:41:56,880 --> 00:41:57,560 Speaker 17: but surely. 832 00:41:57,400 --> 00:42:00,239 Speaker 4: They have over time we need them. But here's an 833 00:42:00,239 --> 00:42:03,759 Speaker 4: AMD currently trading and evaluation that is pricing in an 834 00:42:03,880 --> 00:42:07,560 Speaker 4: enormous data center boom that will come to light or 835 00:42:07,560 --> 00:42:11,759 Speaker 4: are you thinking, actually, MD at this price is reflective 836 00:42:11,760 --> 00:42:13,839 Speaker 4: of perhaps not such a significant build out. 837 00:42:14,840 --> 00:42:15,520 Speaker 15: Well yeah. 838 00:42:15,680 --> 00:42:18,759 Speaker 17: And the other thing is is whenever we discover that 839 00:42:18,840 --> 00:42:22,239 Speaker 17: we don't need the brute force method, these chips will 840 00:42:22,280 --> 00:42:23,919 Speaker 17: be instrumental in that. 841 00:42:24,600 --> 00:42:24,839 Speaker 15: Right. 842 00:42:25,400 --> 00:42:27,759 Speaker 17: So I think we're going to deploy money, it's just 843 00:42:27,960 --> 00:42:30,640 Speaker 17: differently than the way we're currently thinking. 844 00:42:30,680 --> 00:42:33,320 Speaker 2: How about that, Kim Forrest. 845 00:42:33,400 --> 00:42:35,759 Speaker 3: The both of Capital Partner is Caroline made the point 846 00:42:35,800 --> 00:42:38,080 Speaker 3: of this is the key to a conversation today and 847 00:42:38,120 --> 00:42:40,239 Speaker 3: we're grateful for the robust conversation. 848 00:42:41,000 --> 00:42:43,680 Speaker 2: Good conversation. That does it for this edition of Bloomberg Tech. 849 00:42:44,000 --> 00:42:46,440 Speaker 4: It does. You should go back and listen to the conversation. 850 00:42:46,680 --> 00:42:48,239 Speaker 4: This is all of it. Don't forget to check out 851 00:42:48,280 --> 00:42:49,759 Speaker 4: the podcast. You can find it on the terminal as 852 00:42:49,760 --> 00:42:52,440 Speaker 4: well as online on Apple, Spotify and iHeart we're going 853 00:42:52,520 --> 00:42:55,040 Speaker 4: to keep on banging that druma about the AI infrastructure 854 00:42:55,040 --> 00:42:58,040 Speaker 4: build out. We give our cynics such as what we've 855 00:42:58,080 --> 00:43:00,319 Speaker 4: just heard from Kim Forrest, and we have those. I 856 00:43:00,360 --> 00:43:03,640 Speaker 4: think it is significant. Look, AMD is significant move today. 857 00:43:03,600 --> 00:43:07,120 Speaker 3: Ed Yeah, Look it's actually only his biggest jump in 858 00:43:07,120 --> 00:43:07,439 Speaker 3: a month. 859 00:43:07,480 --> 00:43:08,560 Speaker 2: But that was the whole point. 860 00:43:08,640 --> 00:43:11,600 Speaker 3: It's them outlining growth tied to the build out of 861 00:43:11,680 --> 00:43:14,520 Speaker 3: data centers. And what we're trying to understand is will 862 00:43:14,560 --> 00:43:16,440 Speaker 3: in the end we need all of them. That's what 863 00:43:16,480 --> 00:43:19,319 Speaker 3: your markets look like. This is Bloomberg Tech