Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a
Speaker 1: lie from coast to coast, with Caroline Hide in New
Speaker 1: York and Ed Ludlow in San Francisco.
Speaker 2: This is Bloomberg Tech coming up. We zero in on
Speaker 2: tech earnings with Dell raising its AI servership and outlook
Speaker 2: well HP announces job cuts, plus Warner Brothers Discovery asking
Speaker 2: bidders for sweetened offers by December first as it explores
Speaker 2: options for a sale, and Nvidia in focus is Doubts
Speaker 2: over the company's AI chip dominance are growing. I'm Jim
Speaker 2: Centeveec in New York in for Caroline Hide and Ed Ludlow.
Speaker 2: Let's get a check on markets right now. Ustocks advancing
Speaker 2: as expectations for an interest rate cut at the fed's
Speaker 2: next meeting are helping to fuel gains before the Thanksgiving break.
Speaker 2: NAZAC one hundred up right now and look at the
Speaker 2: last three days of four percent. This after both the
Speaker 2: S and P five hundred and NAZAC on hundred moved
Speaker 2: away from their last record highs in late October.
Speaker 3: The NAZAK one hundred.
Speaker 2: Down about let's say, three point six percent from that
Speaker 2: all time high. The s and P five hundred, though
Speaker 2: down just a little over one percent. We're also looking
Speaker 2: at tech earnings with Dell and HP. Dell raising its
Speaker 2: annual projections for the AI server market thanks to sustain
Speaker 2: demand for machines needed in the current data boom. Meanwhile,
Speaker 2: HP stock under pressure down two point two percent right now.
Speaker 2: The company now it's four thousand to six thousand job
Speaker 2: cuts over the next couple of years by using more
Speaker 2: AI tools. For more on HP and Dell, let's bring
Speaker 2: in Bloomberg's and Dina Bastina joins us here in New York.
Speaker 2: I want to start with HP. Four thousand to six
Speaker 2: thousand jobs sounds like a lot. And indeed, if we
Speaker 2: go to the six thousand sound it's like a ten
Speaker 2: percent of.
Speaker 3: The company's workforce.
Speaker 2: But that's through twenty twenty eight fiscal years, so we're
Speaker 2: a few years away from that. And if it's AI
Speaker 2: that they're going to replace these people with, AI can
Speaker 2: change a lot between.
Speaker 3: Now and then.
Speaker 4: Sure, And to be clear, each did a similar magnitude
Speaker 4: job cut over the last three years.
Speaker 3: They just finished it.
Speaker 4: They have these kind of periodic efficiency plans. I guess
Speaker 4: what's new about this one is the idea is that
Speaker 4: they are going to use AI tools and models to
Speaker 4: do things like product development, customer customer service sales, and
Speaker 4: that's where you're getting these job cuts. But at the
Speaker 4: same time, even though they're going to be saving money
Speaker 4: that way, they said they actually took they actually came
Speaker 4: in below on their guide for next year for fiscal
Speaker 4: fiscal year profit and that was because of a completely
Speaker 4: different issue around memory price increases. So you had both
Speaker 4: you have these job cuts and it's not you know,
Speaker 4: making the bottom line look where people expected it would
Speaker 4: come in.
Speaker 2: Well, speaking of those price increases, that also hitting Dell,
Speaker 2: So let's let's talk a little bit about Dell. Dell
Speaker 2: is contending with despite strong demand, how is it going
Speaker 2: to make its AI server business more profitable.
Speaker 4: So the AI server business, and that's basically since I
Speaker 4: know you're going to be talking about GPUs in a minute,
Speaker 4: are the servers that have GPUs that go into these
Speaker 4: AI data centers, and the demand for them has been
Speaker 4: very high for Dell and other makers. Of the problem
Speaker 4: is that in order to get some of these deals
Speaker 4: and in order to deploy some of those servers, Dell
Speaker 4: was basically incurring more significant costs. What they're trying to
Speaker 4: do now is pull back from that a little bit
Speaker 4: to widen the profit margin in that business. They've they
Speaker 4: succeeded in the last quarter, they told me, because they
Speaker 4: were able to serve a more diverse group of customers,
Speaker 4: so some of those were a better, more profitable sets
Speaker 4: of deals.
Speaker 3: Yeah.
Speaker 2: I think these rising costs are going to be the
Speaker 2: same throughout the next.
Speaker 3: Year as well.
Speaker 2: You know, always good to see you, Welcome back to
Speaker 2: New York, Happy Thanksgiving as well. Well, let's bring in
Speaker 2: now in talking video because in video shares over the
Speaker 2: last five days taking a hit down more than three percent.
Speaker 2: The stock facing pressures as AI Chip rivals gained ground,
Speaker 2: leaving investors wondering if it's dominance can be sustained. Bloomberg's
Speaker 2: Ryan Vistelica joins us for more So, Ryan, I think
Speaker 2: the big question that investors have after seeing what happened
Speaker 2: with Alphabet in this report in the information earlier this week,
Speaker 2: is can Googles TPUs actually compete with the GPUs from Nvidia?
Speaker 3: What are you hearing?
Speaker 5: Hey, good morning, Thanks for having me. So I would
Speaker 5: say that while there are a lot of differences between
Speaker 5: Innvidia's chips and alphabets. Alphabets are designed for one specific purpose,
Speaker 5: which is working with AI workloads in the cloud, which
Speaker 5: is really the dominant use case for a lot of
Speaker 5: the AI infrastructure that's being done right now. So there
Speaker 5: is certainly a very big market for the TPU chips,
Speaker 5: as we saw with the Anthropic deal that was announced
Speaker 5: a couple of weeks ago and with this report with Meta,
Speaker 5: so that opens up potentially a huge new market for Alphabet,
Speaker 5: and it does put in Vidia's market share under a
Speaker 5: little bit of pressure. Now, this is still very early
Speaker 5: days and it's not like Alphabet is out there selling
Speaker 5: chips to people in the same way that Nvidia is,
Speaker 5: but certainly people are reassessing what our market share is
Speaker 5: going to look like over the coming years. And if
Speaker 5: in Videas is a lot smaller than previously expected, what
Speaker 5: does that mean for the stock? What does that mean
Speaker 5: for the valuation? What does that mean for its expected
Speaker 5: growth rates going forward?
Speaker 2: Yeah, I mean the analyst community, though at this point
Speaker 2: even investors may be a little concerned, but the analyst community,
Speaker 2: they've still got buys on this stock. I mean, there's
Speaker 2: only one analyst who's tracked by Bloomberg. Jay Goldberg over
Speaker 2: at Seaport, who has a sell on in Vidia.
Speaker 3: Is he changing his tune? Are these analysts changing their tune?
Speaker 6: No?
Speaker 5: In fact, I spoke with him yesterday and he said
Speaker 5: he is more negative on Nvidia now than he was
Speaker 5: a couple of weeks ago. I would say that, you know,
Speaker 5: the new concerns about you know, custom silicon and new
Speaker 5: rising competition for in VideA. This comes at a time
Speaker 5: when people are increasingly questioning the AI trade. There is
Speaker 5: a lot of debate right now about the amount of
Speaker 5: spending going on, how durable is this going to be,
Speaker 5: how sustainable, what kind of returns our companies see on this?
Speaker 5: And if they're not seeing big returns on this investment,
Speaker 5: are is a going to pull back on their AI
Speaker 5: spending going forward? And VideA is really at the heart
Speaker 5: of a lot of AI debate right now. And then
Speaker 5: you add in this new one where what does their
Speaker 5: market share look like? What about competition? That is just
Speaker 5: another reason for people to be skeptical. Although analysts so
Speaker 5: far are holding firm and remain pretty positive.
Speaker 2: Yeah, in Vidia shares up thirty two percent over the
Speaker 2: last year, Bloomberg's Ryan Vistellica. Happy Thanksgiving, Ryan, Thanks for
Speaker 2: joining us. Well, let's get more on the wider tech markets.
Speaker 2: Nancy Tangler, CEO and CIO of Laffer Tangler Investment. She
Speaker 2: says there's more room to run for AI stocks, writing quote,
Speaker 2: since we are in the early stages of the AI
Speaker 2: adoption and investment cycle, we believe the providers of the technology,
Speaker 2: the picks and shovels, will continue to produce enviable earnings growth.
Speaker 2: Nancy joins us, Now, what's a more promising pick and
Speaker 2: or shovel?
Speaker 3: Is it alphabet or is it in video? Nancy?
Speaker 7: Thanks, you're having tim You know, I'm actually going to
Speaker 7: go We own them both, and I'm going to go
Speaker 7: with Nvidia. And the reason for that is I think
Speaker 7: analysts are forgetting our investors are not focusing on Kuda,
Speaker 7: which is the software system that developers use around the
Speaker 7: Nvidia chips, Blackwell and then soon to be Reuben and
Speaker 7: I think it's analogous to Apple and the App Store.
Speaker 7: So you know, it was just a handset company when
Speaker 7: we were buying it. I was told that every time
Speaker 7: I talked about it on the air, but it was
Speaker 7: really the app store and services that we were buying,
Speaker 7: and this I think is analogous to that. If they lose,
Speaker 7: you know, if they go from eighty percent to seventy
Speaker 7: nine percent market share, I can live with that because
Speaker 7: I think the earnings growth is going to continue.
Speaker 8: And let'sten forget.
Speaker 7: AMD is in the wings and we also own that
Speaker 7: and Broadcom which.
Speaker 8: Is developing the TPUs.
Speaker 7: So I think there's a lot of ways to make
Speaker 7: money in this trade.
Speaker 2: At what point do we move meond the so called
Speaker 2: picks and shovels of the AI trade and start to
Speaker 2: see the increase in i don't know efficiency, the increase
Speaker 2: in productivity in non technology companies.
Speaker 7: So we listened to the company's tim and let me
Speaker 7: give you one great example. We've talked about it before,
Speaker 7: but Walmart is our poster child of our investing theme,
Speaker 7: which is an old economy company that is pivoted to
Speaker 7: the new technologies and is now going to be listed
Speaker 7: on the NASDAK lets. Remember, so they had six percent
Speaker 7: revenue growth, pretty good for Walmart, but twenty seven percent
Speaker 7: in e commerce That was also interesting to me. But
Speaker 7: what really got my attention was that delivery speeds were
Speaker 7: thirty five percent of digital orders are arriving in under
Speaker 7: three hours. They're also using automation in the fulfillment center,
Speaker 7: so fifty percent of their orders are fulfilled automatically via robot.
Speaker 7: We own the company that did all that for them, Symbotic,
Speaker 7: So that's a second or maybe even third derivative player
Speaker 7: in AI.
Speaker 8: So I think it's broadening out. We're hearing it from
Speaker 8: all across.
Speaker 7: You know, Raytheon talked about how they were utilizing AI
Speaker 7: in order to improve supply supply log.
Speaker 9: Jams that's a stock we own, and TGLR, all of
Speaker 9: these we own there actually, So I think it's important
Speaker 9: to start listening to the companies paying attention to who's
Speaker 9: seeing margin expansion, and we're definitely seeing it at the
Speaker 9: company level.
Speaker 3: Nancy.
Speaker 2: If we were talking a week ago, I think we'd
Speaker 2: have started our conversation focused on the idea of a bubble,
Speaker 2: maybe concerns about CAPEX spending, the handwringing that we saw
Speaker 2: last week over some of these valuations that has seemed
Speaker 2: to receded received just a little bit this week. But
Speaker 2: you've been through multiple cycles and I'm wondering how you
Speaker 2: view the whole AI bubble talk right now, compared to
Speaker 2: let's say, the tech boom of the late nineties and
Speaker 2: bust as well.
Speaker 10: Well.
Speaker 7: I wish I was as clever as ed Yar Danny
Speaker 7: because he coined this phrase too, But I wrote a
Speaker 7: piece called the bubble and Bubble Talk.
Speaker 8: I think it's important to note a couple of things.
Speaker 7: In the nineties, from ninety six to two thousand, the
Speaker 7: growth stocks that whose valuations were skyrocketing were actually experiencing
Speaker 7: contracting earnings.
Speaker 8: We're not seeing that now. Growth. The growth stocks in.
Speaker 7: This particular technological revolution are experiencing about twenty percent growth
Speaker 7: on average. Cap X was also something that was healthy
Speaker 7: and then accelerated through the entire decade. We're just now
Speaker 7: starting to see that ramp up in the last couple
Speaker 7: of years.
Speaker 8: So I think it's important.
Speaker 7: And then these companies have fortress balance sheets and all this.
Speaker 7: I don't want to say I am going to say
Speaker 7: nonsense around Oracle. I think it's important to remember that
Speaker 7: this is a company that's always had a ton of debt.
Speaker 7: Debt to equity was four hundred and twenty seven percent
Speaker 7: at the end of the quarter. That's down from seven
Speaker 7: hundred and eighty percent year over year. This is all
Speaker 7: before they issued the eighteen billion dollars in debt for
Speaker 7: the open Ai data center build out. That this company
Speaker 7: has a history of using debt. But the PPE is
Speaker 7: up one hundred and thirty percent year over year, while
Speaker 7: debt is only up nine So debt to equity will decline.
Speaker 2: So you're not concerned at all about the price of
Speaker 2: five year CDSS for Oracle rising to the highest going
Speaker 2: back to October twenty twenty two. That's not concerning you.
Speaker 11: It is.
Speaker 8: It's a par trade though.
Speaker 7: What concerns me more is the concentration in the market
Speaker 7: around open Ai, and I think that has to sort
Speaker 7: itself out now. Such in a della would tell you
Speaker 7: that data centers are fungible. If we don't use it
Speaker 7: for this, we'll use it for that, and I think
Speaker 7: that's certainly true. But I am concerned about the SPEN.
Speaker 7: I mean, that's a company with a burn rate, right
Speaker 7: open Ai ten billion revenues and trillions and spend. Oracle
Speaker 7: has other businesses they can change shift directions use data
Speaker 7: center for cloud computing.
Speaker 8: I don't like the par trade, but.
Speaker 7: I think we were added to it a couple of
Speaker 7: days ago and I think I think from here we're
Speaker 7: going to be talking about fundamentals instead of it became
Speaker 7: the post, it became the narrative stock for this.
Speaker 8: This bubble is overdone. We're not in a bubble.
Speaker 2: Yeah, those September highs that we saw for Oracle, I
Speaker 2: mean we're done significantly from those, but still up seven
Speaker 2: percent over the last year.
Speaker 3: In about twenty percent so far this year.
Speaker 2: Nancy Tangler of Laffer Tangler Investments always good to see
Speaker 2: you happy Thanksgiving. Well, Uber is going to begin offering
Speaker 2: driver list trips and we ride vehicles around parts of
Speaker 2: Abu Dhabi. The new milestone follows the two companies first
Speaker 2: launching a ride service with safety operators behind the wheel
Speaker 2: almost a year ago. They intend to expand their driver
Speaker 2: list vehicle operating territory at Abu Dhabi and extend their
Speaker 2: partnership to Dubai soon. Well, coming up, holiday shopping season
Speaker 2: is here and with it new online scams. We're going
Speaker 2: to discuss what to look out for it how to
Speaker 2: protect yourself next.
Speaker 3: This is Bloomberg Tech.
Speaker 2: Holiday shopping sales seem to start earlier and earlier, but
Speaker 2: this year's Black Friday and Cyber Monday deals might not
Speaker 2: be a steep. Bloomberg opinion columnist Andrea Felstaid has a
Speaker 2: peace out, and she writes that tariffs will cause retailers
Speaker 2: to offer smaller discounts. In the quest for deals, shoppers
Speaker 2: may be tempted to turn to new websites or click
Speaker 2: ads for deals that turn out to be scams. Teresa
Speaker 2: Payton is former White House CIO and current CEO of
Speaker 2: the cybersecurity firm Forderless Solutions.
Speaker 3: She joins us for more good to have you on
Speaker 3: the program.
Speaker 2: You know, I'm always thinking that we're in this day
Speaker 2: and age where it can easily become victims of fraud
Speaker 2: or victims of scams. But why does it happen with
Speaker 2: increased frequency during heavy shoppy seasons like Black Friday.
Speaker 12: Well, we're all busy and many of us are looking
Speaker 12: for extra deals and extra bargains this year, like you
Speaker 12: mentioned earlier, because of the tariffs, and with that, we're
Speaker 12: getting bombarded on social media with things that look really
Speaker 12: cool and hot, and we want to make sure we
Speaker 12: get the deal, we get it quickly before they run out.
Speaker 12: And don't forget, criminals and fraudsters now have AI as
Speaker 12: a tool at their fingertips, and so it's making it
Speaker 12: very cost effective for them to target you and me
Speaker 12: while we do our holiday shop.
Speaker 2: Okay, so I want to get to what we can
Speaker 2: do to protect ourselves. But before we do that, Teresa,
Speaker 2: how are they using AI to target us? What does
Speaker 2: that look like? And how could that look differently than
Speaker 2: the scams that we're used to.
Speaker 12: Yeah, so they're basically reverse engineering websites that you or
Speaker 12: I might go to, the legitimate websites, and then they're
Speaker 12: doing things like a play on the name and then
Speaker 12: setting up imposter social media accounts and basically jumping.
Speaker 10: Into your feed.
Speaker 12: Then you follow this great deal and then the next
Speaker 12: thing you know, you're buying from a scammer or a
Speaker 12: fraudster and not from the actual website that you think
Speaker 12: you're visiting. They're also spinning up businesses using bots to
Speaker 12: actually give them them sells great reviews. So it all
Speaker 12: looks like it's on the up and up, But just
Speaker 12: a little bit of diligence and a little bit of research,
Speaker 12: you'll be able to figure out and spot the scam
Speaker 12: sites and the fraud sites pretty easily.
Speaker 2: Okay, you mentioned diligence and research. You shared with our
Speaker 2: team reputation checkers for websites. I'd never actually even heard
Speaker 2: of these or used them before. Should these be part
Speaker 2: of our diet when it comes to healthy shopping?
Speaker 12: Yeah, I love the fact that you brought this up
Speaker 12: because I personally use these websites, especially if I'm going
Speaker 12: to a site I've never ordered from before. Even if
Speaker 12: I have a friend or a relative tell me they've
Speaker 12: used a site, so things like scam Advisor, you aurl, Void,
Speaker 12: trust Pilot, and I will post these on my social
Speaker 12: media accounts. These websites will actually tell you how old
Speaker 12: the domain name is. It could be legitimately a brand
Speaker 12: new business, or it might be a scamra frauds, you're
Speaker 12: taking advantage of holidays.
Speaker 10: So it'll also.
Speaker 12: Tell you whether or not security companies or consumers reported
Speaker 12: issues with these sites.
Speaker 10: And of course old school still rules.
Speaker 12: The Better Business Bureau is a great place to check
Speaker 12: on a domain name as well.
Speaker 2: Okay, so I think that for me, at least one
Speaker 2: area that I always think of as a backstop is
Speaker 2: the way I pay. And I'm only using credit cards
Speaker 2: on these websites because I feel like if I have
Speaker 2: an issue then I can just call my credit card
Speaker 2: company and they can protect me. Are people using other
Speaker 2: payment solutions that might not have that same level of protection.
Speaker 10: Yeah, this is the tough part, and I agree with you.
Speaker 12: I only use a credit card when I am shopping online.
Speaker 12: I do not use my debit card. I don't use
Speaker 12: gift cards to shop online. What's happening is a lot
Speaker 12: of these scam sites and fraud sites will say things
Speaker 12: like we only accept Venmo or zell, we only accept
Speaker 12: gift cards, we only accept wire transfers. So they might say, well,
Speaker 12: for this to work, we're international, we have to have
Speaker 12: a wire transfer. These are red flags when a merchant
Speaker 12: tells you they will only accept those form of payment
Speaker 12: and they won't accept credit card. Chances are you're dealing
Speaker 12: with a fraudster because they know the credit card companies
Speaker 12: will actually come after them and shut them down, so
Speaker 12: they want you to use these other forms of payment.
Speaker 2: Other red flags maybe a price is too good to
Speaker 2: be true.
Speaker 12: Yeah, So if you see things like seventy to ninety
Speaker 12: percent off during the holiday season, that is typically a
Speaker 12: red flag. Now, unless you're on sort of a household
Speaker 12: name website that you navigated to on your own, you
Speaker 12: didn't follow a link in social media, you didn't follow
Speaker 12: link in an email or text.
Speaker 10: So if it's too good to be true, also look
Speaker 10: at that domain name. When in doubt.
Speaker 12: There's a website called VirusTotal dot com. You can use
Speaker 12: it for free. Copy and paste that website in there,
Speaker 12: and it'll actually evaluate the URL and tell you whether
Speaker 12: or not you might be dealing with the scam site.
Speaker 2: Okay, Teresa, before we let you go, if you do
Speaker 2: somehow become a victim of not necessarily a cyber attack,
Speaker 2: but maybe an attack on your identity or some sort
Speaker 2: of scam, what should be the first thing you do?
Speaker 12: Yeah, first thing you do is you want to call
Speaker 12: your bank. So whatever payment method you used, you need
Speaker 12: to lock down your life. The next thing to think
Speaker 12: about is actually you can report it at the FBI,
Speaker 12: to IC three dot gov and the FTC FTC dot gov.
Speaker 12: But also there is a nonprofit resource that is free
Speaker 12: to use called the Identity Resource Theft Center. It's a
Speaker 12: great nonprofit. I've referred people there and they will actually
Speaker 12: give you a checklist.
Speaker 10: You can talk to a real human.
Speaker 12: Being and work on getting your peace of mind and
Speaker 12: your identity back.
Speaker 2: Teresa, Payton, CEO of Forder Lists Solutions, thank you so
Speaker 2: much for joining us.
Speaker 3: Coming out, the.
Speaker 2: US face is a potential electricity crisis due to a
Speaker 2: surge in demand to power AI data centers. We've got
Speaker 2: the details. Next, this is Bloomberg Tech. Well, today we
Speaker 2: take a look at America's power system. It was already
Speaker 2: under stress even before the AI boom. Now with AI
Speaker 2: data centers coming online, a new Schneider Electric analysis foresees
Speaker 2: the US facing a potential electricity crisis. This is the
Speaker 2: surgeon demand comes at odds with the reality of aged
Speaker 2: and vulnerable grids. Bloomberg's ESG reporter Alistair Marsh joins us
Speaker 2: from No More. Alistair, how does electricity crisis manifest in
Speaker 2: the United States? Certainly higher bills as part of that,
Speaker 2: but are we talking rolling blackouts here for many Americans?
Speaker 13: Well, essentially, the Schneider Electric data shows that the massive
Speaker 13: amount of power demands to power demand in the US
Speaker 13: has basically been flat for about two decades, and all
Speaker 13: of a sudden with the advent of Aisle, the last
Speaker 13: AI acceleration that we're seeing in the US, with the
Speaker 13: billions of dollars of kpex being put to work and
Speaker 13: the mass build out of data centers. You suddenly have
Speaker 13: this surge in demand. Add to that increase electrification, add
Speaker 13: to that onsurine of manufacturing, and you suddenly have this
Speaker 13: sort of crisis moment where the energy infrastructure in the
Speaker 13: US has not been invested in and not been built
Speaker 13: out particularly aggressively for a period meets a very aggressive
Speaker 13: build out of AI, and so we're going to reach,
Speaker 13: according to the Schneider data, we're going to reach a
Speaker 13: crunch point in about three years, in twenty twenty eight.
Speaker 13: That's the moment they say that the supply available on
Speaker 13: the system will not be able to will no longer
Speaker 13: be able to meet demand unless we start eating into
Speaker 13: emergency reserves of power which you are saved from moments
Speaker 13: of extreme weather or cyber attacks and so forth, all
Speaker 13: of which means that the grid is basically going to
Speaker 13: become under increased strain and going to be increasingly vulnerable.
Speaker 2: You cover ESG for Bloomberg News. You're joining us from London.
Speaker 2: I'm not going to make your wigh in on the
Speaker 2: politics of infrastructure spending here in the United States, but
Speaker 2: it's very political, like so much spending is is there
Speaker 2: foreseeably a way that even if the US had the money,
Speaker 2: they could reliably upgrade the grid's weak points with enough
Speaker 2: in enough time to be ready for this surge.
Speaker 13: A short answer is no, I mean you're kind to
Speaker 13: let me not weigh into the US politics, But there
Speaker 13: is both a political issue here. I mean, you see
Speaker 13: it with the recently power prices are on the ballot
Speaker 13: in New Jersey, and they'll be increasingly on the ballot,
Speaker 13: and that could turn against the AI build out if
Speaker 13: there's a sort of political groundswell against that. But also
Speaker 13: there's a geopolitical element here where the US is in
Speaker 13: a race with China to be kind of the AI superpower,
Speaker 13: and China has Why you could argue that the US
Speaker 13: has the advantage in terms of tech and chips, actually
Speaker 13: China has a structural advantage with cheaper, abundant power, and
Speaker 13: that might be, according to some analysts, something that wins
Speaker 13: out in the long run. And so what Schneider is
Speaker 13: saying here to go back to actually answer your question
Speaker 13: is that no, you can't fix us in the three
Speaker 13: year period because you can't build enough generation and enough
Speaker 13: transmission in that period because most of those projects will
Speaker 13: take ten years to build. Therefore, you need to find
Speaker 13: ways at the margin what are sometimes called grid enhancing technologies,
Speaker 13: battery storage, micro grids, other things that can kind of
Speaker 13: build out extra capacity to that don't require those large,
Speaker 13: long infrastructure buildouts that just won't be ready in time.
Speaker 2: Bloomberg's Alistair Marsh joining us from London. Alistair mentioned the
Speaker 2: political implications of this. Do you check out Bloomberg Opinion
Speaker 2: and Connorson had an interesting story just in the last
Speaker 2: few days about what happened in Georgia. Hey, coming up next,
Speaker 2: we're going to speak with CFR senior equity analyst Angela
Speaker 2: Zeno as investors begin to question longevity of the AI trade.
Speaker 2: This is Bloomberg Tech. Welcome back to Bloomberg Tech. I'm
Speaker 2: Tim Steneveek in New York in for Caroline Hide and
Speaker 2: at Ludlow. Let's take a look at the markets. Checking
Speaker 2: out the NASAQ one hundred slightly up on the day today,
Speaker 2: hopes of a FED rate cut in the December meeting. Meanwhile,
Speaker 2: also taking a look at alphabet in Nvidia. In Vidia
Speaker 2: facing concerns that its market share and semis used in
Speaker 2: AI computing is slipping following a report suggesting Google's AI
Speaker 2: processors are gaining ground. Google down on the day one
Speaker 2: point two percent, in Vidia higher by one point eight percent.
Speaker 2: This comes as in video celebrated Google's achievement earlier today,
Speaker 2: but also saying the chip makers still quote a generation
Speaker 2: ahead of the industry. It's the only platform that runs
Speaker 2: every AI model and does it everywhere computing is done.
Speaker 2: This is a tweet from the Nvidia newsroom or a
Speaker 2: post on acts I should say from the Nvidia newsroom.
Speaker 2: Let's get more with Bloomberg Equities reporter Carmen Reinikey. Carmen
Speaker 2: does seem like investors are starting to feel like Alphabet's
Speaker 2: Google could be gaining when it comes to market share
Speaker 2: in what Invidia.
Speaker 3: Has absolutely ruled.
Speaker 2: But still the analyst community community at this point is
Speaker 2: not really convinced.
Speaker 3: What are your sources telling you, Yeah, that's really true.
Speaker 6: I mean, I think in Nvidia is really still so dominant.
Speaker 6: And that's what we're seeing from analysts.
Speaker 8: You know, even though.
Speaker 6: There's been sort of these questions about the AI trade
Speaker 6: and you know, Google's chips coming in being more competition,
Speaker 6: analysts have actually raised their estimates for Nvidia going forward.
Speaker 8: You know, it's last.
Speaker 6: Quarter was so good, had this huge revenue forecast, and
Speaker 6: you know, we're seeing a little bit of a relief
Speaker 6: rally in the shares today. It's gotten pretty beaten down,
Speaker 6: but dip buyers are you know, starting to come back in.
Speaker 10: And then on the flip side.
Speaker 6: We're seeing you know, Google actually dip a little bit today. Now,
Speaker 6: of course it was it's been at a record high,
Speaker 6: so that's that's no surprise. But really, you know, in
Speaker 6: Nvidia does seem to still remain on top, and it's
Speaker 6: one that we're going to continue watching as really the
Speaker 6: dominant player in the AI space.
Speaker 2: Dominant player in the AI space. But in terms of
Speaker 2: stock performance this year, Alphabet has just been remarkable, close
Speaker 2: to seventy percent increase so far this year. In Vidia
Speaker 2: up about thirty five percent. That's nothing to shake a
Speaker 2: stick at. Also, Alphabet approaching a four trillion dollar marketcap.
Speaker 2: We're in videos, you know, above four trillion dollars. Are
Speaker 2: analysts more bullish on in video? Are they more bullish
Speaker 2: when it comes to Alphabet?
Speaker 6: You know, I think analysts are really bullish across the
Speaker 6: board on both companies. You know, they're so big and
Speaker 6: they do so many things so well. But you know,
Speaker 6: the market cap thing is really interesting. We're watching all
Speaker 6: of those companies very closely. You know, it's always been
Speaker 6: sort of Apple and in Vidia jockeying for the top spot,
Speaker 6: you know, the biggest company in the world. But you know,
Speaker 6: Google's really in the mix now, so it'll be really
Speaker 6: interesting to see sort of where we end up this year.
Speaker 6: You're right, Google's stock has done so well. I think
Speaker 6: it's still the top performing stock in the meg seven,
Speaker 6: really kind of taking over in Video's place there. But yeah, overall,
Speaker 6: you know, so Wall Street is very bullish on these
Speaker 6: on these stocks, and I think in Vidia still only
Speaker 6: really has one bear on Wall Street, who just boosted
Speaker 6: his estimates, you know, for the company's earnings going forward.
Speaker 3: Yeah.
Speaker 2: Jay Goldberg over at cpour Research that lonely in Vidia bear,
Speaker 2: but he's sticking by his call. Bloomberg's harmon Ryanikey joining us.
Speaker 2: Happy holidays, Carmen, appreciate you joining us today. Hey, let's
Speaker 2: get more on the market movements with Angelo Zeno, senior
Speaker 2: equity analyst at CFI Research. Angela, what do you make
Speaker 2: of this sort of race between Alphabet and in Video
Speaker 2: that we've seen play out over the last couple of days.
Speaker 2: The narrative shift that hey, wait, a second Alphabet with
Speaker 2: a ten year old product might actually have something that
Speaker 2: could compete within Video's GPUs.
Speaker 3: Do you buy it?
Speaker 8: Yeah?
Speaker 14: And thanks for having me, Tim. The way I look
Speaker 14: at this is, listen, in Video's had the ninety percent
Speaker 14: plus market share on the computer side right with their GPUs.
Speaker 14: Our view the whole time was that they were going
Speaker 14: to lose share anyway, and that custom silicon chips were
Speaker 14: going to gain a bigger pe. So the pie A
Speaker 14: and D eventually was going to have its share as
Speaker 14: a second alternative to the GPU market. So this is
Speaker 14: kind of playing out though the way we anticipated. It's
Speaker 14: going to be a slow role, but ultimately, listen, I
Speaker 14: do think there's a place for TPUs as well as
Speaker 14: other customs silicon chips. I don't think you can necessarily
Speaker 14: sleep on, you know, a company like Amazon. But you know,
Speaker 14: it's interesting that the strategic pivot that potentially Alphabet is
Speaker 14: looking at potentially you know, looking to sell those TPUs
Speaker 14: to Meta and you know, to the extent that that's
Speaker 14: true and to how quickly some of that scales up,
Speaker 14: I think is a risk to the Invidia story. But again,
Speaker 14: I mean, video will continue to be the dominant player
Speaker 14: out there, and I think investors, you know, maybe it
Speaker 14: shouldn't be looking too deep into the share fight and
Speaker 14: kind of you know, can also consider the upside in
Speaker 14: terms of the total addressable market opportunity here over the
Speaker 14: next couple of years.
Speaker 2: Well, it makes me think of the incredible and enviable
Speaker 2: margins that Invidia has and it's data center bits, and
Speaker 2: I'm wondering, okay, well, even if in Video still becomes
Speaker 2: and remains the clear market leader, does it put margin
Speaker 2: pressure on the company? Does the company have to come
Speaker 2: out and say, okay, well we're not going to charge
Speaker 2: as much for these GPUs because they're potentially, at least
Speaker 2: for some customers there may be another option out there.
Speaker 3: Does it put margin pressure on them?
Speaker 14: I think that's an interesting point. The way we look
Speaker 14: at this actually is a little bit differently. I mean,
Speaker 14: when we think about kind of these next gen offerings
Speaker 14: that in Video is set to roll out, and we're
Speaker 14: big believers that listen, in Vidia is the generation ahead.
Speaker 14: They will continue to be you know, leaders in terms
Speaker 14: of technology advancements. But as you roll out Ruben, and
Speaker 14: Ruben doesn't really have kind of the step up function
Speaker 14: you know to Blackwell the way Blackwell had relative to Hopper.
Speaker 14: But you get to Ruben and then Ruben Ultra, You're
Speaker 14: going to see some significant content growth here over the
Speaker 14: next couple of years from a Nvidia in the data center.
Speaker 3: So that should continue to hold up data.
Speaker 14: Their revenue trajectory as well as you know, the margins
Speaker 14: here for the company. So we're not necessary really concerned
Speaker 14: about margins here. But that said, listen, if we get
Speaker 14: to a point where you know, the whole debate between
Speaker 14: supply demands starts to you know, even out and those
Speaker 14: competitive pressures do start to intensify, then you have an issue.
Speaker 14: It's not something we're really kind of concerned about here
Speaker 14: over the next eighteen to twenty four months.
Speaker 2: So okay, so you know, in terms of not being
Speaker 2: concerned in the near term, that makes sense. What about
Speaker 2: the other side of the coin, which is the opportunity
Speaker 2: that it presents for Alphabet Can they ramp up production
Speaker 2: of these?
Speaker 3: Can they can they.
Speaker 2: Actually get these to customers quickly who they want them?
Speaker 14: Yeah, I mean, and to the extent that they you know,
Speaker 14: they're looking at this strategic pivot I think, you know,
Speaker 14: remains to be seen, but yeah, I mean, listen, it's
Speaker 14: an opportunity for them. Again, I don't think they take
Speaker 14: up a huge chunk of the market. I think it's
Speaker 14: actually a bigger play, an opportunity for Broadcom, to be
Speaker 14: honest with you, and as you kind of go into
Speaker 14: twenty six and twenty seven, the accelerating growth that you're
Speaker 14: going to see in their semiconductor business I think is
Speaker 14: kind of a nic intriguing play alongside there their software offering,
Speaker 14: where if you have any concerns about share loss from Nvidia,
Speaker 14: take a look at Broadcom because that becomes a nice
Speaker 14: interesting play on a company that we'll be taking market
Speaker 14: share here on that customer silicon growth as they also
Speaker 14: continue to broad in out their customer base outside of
Speaker 14: just you know, Alphabet's TPUs to other customs silicon vendors.
Speaker 2: Angela, if we were having a conversation last week, we'd
Speaker 2: probably be talking about and we'd probably started the conversation
Speaker 2: with equity evaluations, And I'm just wondering how you're looking
Speaker 2: at valuations right now where there's been some talk about okay,
Speaker 2: things are looking a little bit bubbly right now.
Speaker 14: You know, I actually feel much better about valuations today
Speaker 14: than I did three four weeks ago, and it almost
Speaker 14: kind of self corrected itself out right. So when you
Speaker 14: look ahead of just you know, late October, look at valuations,
Speaker 14: they were essentially where we were at the June twenty
Speaker 14: four you know, tech highs, and essentially at twenty year highs,
Speaker 14: So you kind of look, get what the market is
Speaker 14: done here. We've actually had a better than expected Q
Speaker 14: three earning season. On top of that, also we'll pull
Speaker 14: back here on the tech side, that's really kind of
Speaker 14: compressed multiples to now where you would expect multiples on
Speaker 14: a forward basis to be here over the last five years.
Speaker 14: So when you look at valuations, especially given the earnings
Speaker 14: growth that we see over the next eighteen to twenty
Speaker 14: four months, we actually think this is actually an enticing opportunity,
Speaker 14: especially with some of those larger cap tech names. You
Speaker 14: look at maybe some of the most reasonable valuations out there.
Speaker 14: Meta and Nvidia really kind of stand out at this
Speaker 14: point in time where I think they could be kind
Speaker 14: of nice rebound plays on the sharp pullback they've.
Speaker 2: Pad Hey, just twenty seconds angelo before we let you go.
Speaker 2: We just had an interesting conversation with Alistair Marsh about
Speaker 2: data centers and what could happen in the United States
Speaker 2: to the electric grid and China actually taking a lead
Speaker 2: as a result of infrastructure issues here. Just very briefly,
Speaker 2: how could that reign in data center growth and development
Speaker 2: here in the US if that were and is some
Speaker 2: sort of boundary or barrier.
Speaker 14: Yeah, it's one of the biggest risks going into twenty
Speaker 14: twenty six, the energy bottlenecks, and more so into twenty
Speaker 14: seven and twenty eight, right as we start transforming and
Speaker 14: changing the narrative from the bookings growth expectations to one
Speaker 14: where it's also all about execution of these data center buildouts.
Speaker 2: Luzino, Senior equity analyst at CFRI Research. Happy Thanksgiving, Thanks
Speaker 2: so much for joining us Well. Mckensey cut about two
Speaker 2: hundred global tech jobs in the past week as the
Speaker 2: consulting firm joins Rivals and using AI to automate some positions,
Speaker 2: and sources say the company is closely assessing what tasks
Speaker 2: can be carried out by AI and isn't ruling out
Speaker 2: additional reductions across different functions over the next two years
Speaker 2: this as it ramps up use of the tech coming
Speaker 2: up one our music settles a copyright lawsuit against AI startups,
Speaker 2: So no more on that. Next this is Bloomberg Tech.
Speaker 2: Warner Music Group and AI music creator Suno have settled
Speaker 2: a copyright lawsuit and agreed on a new partnership in
Speaker 2: creating music. Suno was accused by Warner Music and other
Speaker 2: major record labels for using copyrighted material without compensating artists
Speaker 2: or their companies. For the latest Bloomberg Music and podcast
Speaker 2: reporter Ashley Carmen joins us now and for people aren't
Speaker 2: for people to understand Warner Music in the music industry
Speaker 2: and where publishers and labels fall in.
Speaker 3: But where do sooner fall into this?
Speaker 15: Well, that's the big question. So Suno and its competitor
Speaker 15: Udio have really found a business in allowing people to
Speaker 15: type in prompts and gift songs in return. And so
Speaker 15: now the big question is is this competition for the
Speaker 15: traditional record labels? Probably? Is this a tool for artists
Speaker 15: human artists? Probably? And what does this actually mean for
Speaker 15: the business? And so this deal is kind of a
Speaker 15: landmark moment in that entire dialogue.
Speaker 2: Is there like a historical corollary or parallel.
Speaker 3: We can draw here.
Speaker 2: Is this like when Steve Jobs unbundled the album and
Speaker 2: let us download one song for a ninety nine cents?
Speaker 3: Is it a bigger deal than that?
Speaker 15: People like to compare it to the Napster moment, where
Speaker 15: this could really be a paradigm shift. Yeah, how people
Speaker 15: create music, how they consume music, where they consume music,
Speaker 15: where they create music. So it gets a lot of comparisons.
Speaker 15: And I think, unlike that moment where the record labels
Speaker 15: and Napster were really at odds for years and it
Speaker 15: basically creted the entire music business. They want to start
Speaker 15: making partnerships and actually have a hand in this business.
Speaker 3: What do artists think of this?
Speaker 2: Because in that moment, and I live through the Napster moment,
Speaker 2: I mean, guilty is charged. Don't get me in trouble
Speaker 2: for that. But artists were understandably really upset, and you know,
Speaker 2: you had Lars Lrick on one side from Metallica.
Speaker 3: It was a really big deal. Where do artists fall
Speaker 3: in this debate?
Speaker 15: Artists are using these tools in the studios. I go
Speaker 15: to the studios and I say, do you use AI
Speaker 15: and They're like, yeah, we do. But at the same time,
Speaker 15: I think they don't want wholly AI generated songs to
Speaker 15: come in and take market share away from human created works.
Speaker 2: But is there also this understanding that there wasn't then
Speaker 2: that for our an artists to make money they need
Speaker 2: to do more than just create the music.
Speaker 15: I mean, this is this is the thing, is that
Speaker 15: business is shifting so much. Streaming brought the industry back
Speaker 15: from piracy, but it also meant that now so many
Speaker 15: people can upload their music, they don't need to go
Speaker 15: through a distributor to be in retail stores. It means
Speaker 15: they have to tour. It means they need to create merch.
Speaker 15: It means they need to build these super fans to
Speaker 15: keep that business going.
Speaker 2: Bloomberg's actually Carmen joining us. Thanks so much, Ashley, Happy Thanksgiving.
Speaker 2: Let's turn out a Warner Brothers Discovery stay on Media.
Speaker 2: The company asking bidders for swedened offers by December. This
Speaker 2: December first actually, as it explores options for a sale.
Speaker 2: Bloomberg's media reporter Hannah Miller has been reporting on the
Speaker 2: saga and she joins us. Now, So, Hannah, who are
Speaker 2: the companies that are at play right now for these assets.
Speaker 16: Yeah, so we have Paramount, Comcasts and Netflix. They all
Speaker 16: have some differences with their bids with the obstacles facing
Speaker 16: them here. But those are the players going for Warner
Speaker 16: Brothers Discoveries assets.
Speaker 2: Do they all want the same assets or do they
Speaker 2: want different assets?
Speaker 16: So Comcasts and net Flix they're going for streaming and
Speaker 16: studios they want, you know, those big profit sectors for
Speaker 16: Warner Brothers Discovery. Paramount wants the whole thing. There'll take
Speaker 16: the cable networks too, even though we've seen so many
Speaker 16: people cut the cord and shift from cable to streaming.
Speaker 2: From a regulatory perspective, is that a harder Is that
Speaker 2: a harder barrier? Does it kind of not matter given
Speaker 2: what we've seen from this administration and the way that
Speaker 2: media has changed in recent years, because there could there
Speaker 2: you know, CNN is part of that, and CNN and
Speaker 2: CBS living side by side a network and cable when
Speaker 2: it comes to news, that could be a challenge.
Speaker 16: Now, Yeah, it's a great question. It's something a lot
Speaker 16: of investors are thinking about. With Paramount. We know that
Speaker 16: the CEO, David Ellison, he's spoken about the positive relationship
Speaker 16: that he has with President Trump, So that could help
Speaker 16: smooth things over on a regulatory front. The thing with
Speaker 16: Netflix is that there are questions about if both streaming
Speaker 16: services were under Netflix, if HBO Max got added to Netflix,
Speaker 16: would they dominate and have too much market share?
Speaker 2: Wow, I can't believe we're talking about streamers and antitrust.
Speaker 2: That's kind of where we are in this world, Hannah,
Speaker 2: before we let you go, David Allison is one David
Speaker 2: we're thinking about. David Zaslov is another David that we're
Speaker 2: thinking about over at Warner Brothers Discovery.
Speaker 3: What happens to him after this?
Speaker 16: Yeah, so the role he plays with whatever shakes out,
Speaker 16: that is a big factor here. We know he's someone
Speaker 16: who still wants to stay in the mix, and I
Speaker 16: think a lot of the investors, the shareholders, they're all
Speaker 16: thinking about what role Zazov will play after a deal.
Speaker 2: Bloomberg's Hannah Miller. Hopefully she's not too busy during the
Speaker 2: holidays staying on top of this deal. Appreciate you taking
Speaker 2: the time. Well, coming up, we're going to talk to
Speaker 2: the startup that's using AI to help restaurants identify ingredients
Speaker 2: that could be allergens or restricted under some diets. It's
Speaker 2: an issue restaurants chains from California soon won't be able
Speaker 2: to ignore. This is Bloomberg Tech. Well, if any part
Speaker 2: of your thanks Evin Jenner is being ordered or coming
Speaker 2: from a restaurant, you might have had to ask about
Speaker 2: the ingredient list to check any allergens for your guests.
Speaker 2: It's an issue that goes far beyond Thanksgiving, with millions
Speaker 2: of Americans with allergies or dietary restrictions struggling when they
Speaker 2: go out to eat. Startup Fudini is aiming to solve
Speaker 2: this problem with an AI tool to help restaurants thoroughly
Speaker 2: and clearly label ingredients. Fudini COEO. Dylan McDonald joins us. Now, Dylan,
Speaker 2: you've got a really interesting story. I think, like so
Speaker 2: many startups, it comes from a place of necessity for
Speaker 2: the founder. Talk to us a little bit about what
Speaker 2: you've dealt with.
Speaker 17: Yeah, first, see Tim, thanks very much for having me.
Speaker 17: Great to be here. And yeah, like you mentioned.
Speaker 11: I diagnosed celiac when I was ten years old and
Speaker 11: so have a lot of personal experience navigating dining out
Speaker 11: of home and ordering online while needing to know what's
Speaker 11: in my food and just over a long period of time,
Speaker 11: got more and more for it with how difficult it
Speaker 11: was to get that information and mistakes and inaccuracies, and
Speaker 11: decided to try and do something about it.
Speaker 2: So how can AI actually help restaurants do this? Because
Speaker 2: you know, when you do look at a menu, when
Speaker 2: you do talk to a server, I feel like in
Speaker 2: this day and age, they have a good understanding of
Speaker 2: at least some of the most common allergies like gluten
Speaker 2: for example, and people who have celiac. So what does
Speaker 2: AI allow them to take a step further?
Speaker 3: How does it do that?
Speaker 17: Yeah, it's a fair point. I think you're right.
Speaker 11: I think a lot of restaurants have got on top
Speaker 11: of gluten free, vegan, vegetarian, the main ones. But there's
Speaker 11: one hundred and seventy three million Americans who have some
Speaker 11: form of food energy or dietry requirement, and the allergens
Speaker 11: go far beyond just you know, gluten and vegan. And
Speaker 11: so what we do is we help restaurants by ingesting
Speaker 11: their menu information, the recipe information, and the product information,
Speaker 11: and we have trained large anguage models to break those
Speaker 11: down to the ingredient level, tag them with the correct
Speaker 11: allergen and dietary requirements and then we're able to to
Speaker 11: power a personalized menu solution whereby consumers can see exactly
Speaker 11: what they can and can't eat on the menu depending
Speaker 11: on their personal requirements.
Speaker 2: You have a background in law, your former corporate attorney,
Speaker 2: and you know, I wonder about the liability element here.
Speaker 2: You know, mistakes happen, mistakes get made, AI lms hallucinate. Well,
Speaker 2: how do you protect around that and how do you
Speaker 2: make sure that even if a food says it doesn't
Speaker 2: have something, it doesn't become contaminated somewhere with that ingredient process.
Speaker 17: Yeah, it's a great question. Firstly, on hallucinations.
Speaker 11: Our technology never guesses if there is you know, it's
Speaker 11: based on structured ingredient and supplier data.
Speaker 17: If there's ever a scenario where it is ensure, it.
Speaker 11: Will tag in the back end for us that it's
Speaker 11: there's an uncertainty and our dietitian team will come in
Speaker 11: over the top and do QA and manually intervene and
Speaker 11: as you know, they make inputs into the system, the
Speaker 11: LLM learns, it gets smarter and smarter over time. From
Speaker 11: a legal liability standpoint, we would argue that not having
Speaker 11: any documentation on our ergens is a much higher risk
Speaker 11: because right now you have a consumer, a member of
Speaker 11: staff who's likely not trained on all the ingredients and
Speaker 11: all the allergens and all the menu items, and they're
Speaker 11: the line of protection for the restaurant between the consumer
Speaker 11: and a potentially life threatening a life threatening incident. And
Speaker 11: fifty four percent of all allergic reactions and restaurants occur
Speaker 11: after the staff have been notified. And so that tells
Speaker 11: us that the current system of dealing with this by
Speaker 11: word of mouth isn't working.
Speaker 2: So, Dylan, how does it work? Is it a two
Speaker 2: sided market where you have to get the restaurant or
Speaker 2: the restaurant chain to add your technology, but then also
Speaker 2: get people who have these allergies to use it.
Speaker 11: Yeah, So we partner with the restaurant chains, food service operators.
Speaker 11: We ingest their menu, recipe product technology from various tech stacts.
Speaker 11: And then how it works typically is they put a
Speaker 11: QRE code in venue on physical menus and menu boards
Speaker 11: and a digital link on their website. This is the
Speaker 11: most basic integrate, and then when consumers come into the
Speaker 11: physical environment or digital environment, they scan the QRE. It
Speaker 11: prompts them to create their dietary profile where they can
Speaker 11: choose from over one hundred and fifty different allergens and
Speaker 11: dietary requirements, and then instantly it will show them here's
Speaker 11: exactly what you can eat, here's what you can eat
Speaker 11: with a modifier, and what that modifier is, and here's
Speaker 11: what you can't eat and why. So it's completely personalized
Speaker 11: based on their requirements and the consumer discovers this In
Speaker 11: the Restaurant's Environment.
Speaker 2: Center Bill sixty eight in the state of California, this
Speaker 2: is effective next week. It's going to require major chains
Speaker 2: to provide detailed allergen info. Many people argue, this is
Speaker 2: a major step toward transparency. How has that increased adoption
Speaker 2: of your product?
Speaker 11: Yeah, so just on that it was signed by Gavin
Speaker 11: Usom a month ago. It becomes effect of one July
Speaker 11: twenty six.
Speaker 8: And so what in.
Speaker 11: Essence requires is every restaurant chain and foods service facility
Speaker 11: with twenty plus locations nationwide, where at least one of
Speaker 11: those is in California, to label all of their physical
Speaker 11: and digital menus for the major nine food origens. So
Speaker 11: this is obviously a major step change for restaurants. They
Speaker 11: can do it one of two ways they can either
Speaker 11: physically annotate every one of their menu items with those origens,
Speaker 11: or they can use a digital like a QR code
Speaker 11: that links out to digital allergen menu. And that's obviously
Speaker 11: what we do, and from speaking to a lot of
Speaker 11: the bigger chains recently, as you might imagine, their strong
Speaker 11: preferences to use a digital mechanism, and so we're getting
Speaker 11: a lot more inbound then we certainly were a few
Speaker 11: months ago, which is fantastic.
Speaker 17: But we continue to work with like.
Speaker 11: I said, with independence chains, food service facilities of all types.
Speaker 2: Dylan McDonald, he's founder and CEO of Fudini, joining us
Speaker 2: from Santa Monica, California. Well, that is going to do
Speaker 2: it for this edition of Bloomberg Tech. Do not forget
Speaker 2: to check out our podcast. You can find it on
Speaker 2: the terminal as well as online at Apple, Spotify and
Speaker 2: iHeart This is Bloomberg