Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and Eva Though in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: In Vidia selloff, SoftBank isn't the only company exiting the
Speaker 3: AI MVP as a shareholder. Peter Teal's hedge fund offloads
Speaker 3: its entire position.
Speaker 2: Details from a thirteen F filing, plus a crypto market
Speaker 2: sell off shows.
Speaker 3: No sign of easing and some of the riskiest tokens.
Speaker 2: They're bearing the brunt of it.
Speaker 3: And Amazon is seeking to raise about twelve billion dollars
Speaker 3: through a debt offering an industry wide race to build
Speaker 3: AI infrastructure.
Speaker 2: But first we check in on the markets that have
Speaker 2: been under pressure.
Speaker 3: We are once again questioning AI valuations. We're checking some
Speaker 3: of the biggest winners and whether or not we're taking
Speaker 3: money off the table. We're off flat on the day
Speaker 3: on the NASAK one hundred. More broadly, but it's been
Speaker 3: a volatile session thus far, as we've tried to dissect
Speaker 3: who wins from some of the purchases, Alphabet being key
Speaker 3: among them, and who's being sold off. Let's just dig
Speaker 3: into some individual movers that I want to shine a
Speaker 3: light on because thirteen f filings they tell you an awful
Speaker 3: lot who is being bought. Alphabet is being backed by
Speaker 3: Berkshire Hathaway. We're up five percent, a significant move that
Speaker 3: helps them as that one hundred more broadly be training
Speaker 3: flat even though sentiments seems to be shifting to the downside.
Speaker 3: Sentiment on the downside. For a video ahead of its
Speaker 3: earnings later this week, we understand that another key investor
Speaker 3: that everyone watches this one Peter Teel of loading his
Speaker 3: entire holding from his macro fund his hedge fund in
Speaker 3: in video. We want to get to both of these
Speaker 3: key stories because the Teal macro fund, as we know,
Speaker 3: has been one that we really do focus in. At
Speaker 3: the moment, it does still hold onto Microsoft and a
Speaker 3: reduced stake in Tesla we understand as its main bets
Speaker 3: all according to that filing, we want to dig into
Speaker 3: it with a hedge fund. Reporter Emma Palmer, Now, look,
Speaker 3: this is someone that we always follow. Peter Teel made
Speaker 3: his foun by backing meta artists formally known as Facebook,
Speaker 3: and now he takes key bets on publicly traded companies.
Speaker 3: But while offload one hundred million dollars worth of Nvidia.
Speaker 4: Yes, it's especially interesting given how concentrated his portfolio is
Speaker 4: really only four or five stocks, So when we see
Speaker 4: a rotation in this portfolio, it holds a lot of meaning,
Speaker 4: even though the position itself was only about one hundred
Speaker 4: million dollars, which in our hedge fund world isn't that
Speaker 4: much when we look at the exposure, So you know,
Speaker 4: this may be a reflection of a lot of the
Speaker 4: cautions and concerns that we're seeing around the AI space. Valuations,
Speaker 4: the amount of money that's just flooding into the space,
Speaker 4: concerns people have about the circular nature of investments and
Speaker 4: money in this industry, and so this could be an
Speaker 4: expression of that. Typically, when you see a concentrated portfolio
Speaker 4: and a shift that's notable, like editing a position entirely,
Speaker 4: then it often suggests a directional and concerning What's.
Speaker 3: Interesting, though, is that the overall fund in terms of
Speaker 3: deployed money into equities gone from an excess of two
Speaker 3: hundred million down to about only about seventy million currently deployed,
Speaker 3: and we understand the coll so that he is still
Speaker 3: making big bets on startups. We just had Substrate on
Speaker 3: a couple of weeks ago, the CEO that he's now
Speaker 3: backing to take on ASML and take on some of
Speaker 3: the chip design and equipment makers in particular Hammer. So
Speaker 3: do we think in similarity to SoftBank they exited five
Speaker 3: point eight billion dollars worth of Nvidia, but that was about.
Speaker 2: Having money to be able to reallocate other areas the
Speaker 2: AI ecosystem.
Speaker 3: Yes, exactly.
Speaker 4: So when we look at these startup investors, you know,
Speaker 4: they put a lot of money into the pre IPO space,
Speaker 4: into these companies before they make a lot of their
Speaker 4: gains post IPO, and so you know how they think
Speaker 4: about the startup space and then how they think about
Speaker 4: the public market space could be expressed a little bit
Speaker 4: differently when we look at SoftBank, to your points, they
Speaker 4: did make that rotation to invest more into open AI.
Speaker 4: So the thirteen f's give us some clarity and how
Speaker 4: these money managers think and what they do, but really
Speaker 4: doesn't show us everything. It doesn't show us intention now,
Speaker 4: it doesn't show us shorts, and it doesn't show us
Speaker 4: other types of hedges against a position. So we do
Speaker 4: have a limited point of view. We'll take that because
Speaker 4: hedge ferns are so secretive and so private. But it
Speaker 4: is somewhat of a very specific insight.
Speaker 2: Great context.
Speaker 3: What is the context around Alphabet and the buying by
Speaker 3: Boatsha Hathaway.
Speaker 4: Yes, so when we look at Alphabet, a huge position
Speaker 4: for them eighteen million dollars eighteen million shares worth about
Speaker 4: five billion dollars as of the end of the third quarter.
Speaker 4: Now that means it is the tenth biggest holding for
Speaker 4: Berkshire Hathaway. Sizeable, but it also gives you a sense
Speaker 4: of just how much money this firm puts to work.
Speaker 4: Its biggest holding is still Apple. They did trim that
Speaker 4: steak by fifteen percent, but it still holds about a
Speaker 4: quarter of the portfolio exposure. So it's likely less of
Speaker 4: a directional view, perhaps more of a rotation of the
Speaker 4: portfolio to manage its exposure. But when we see a
Speaker 4: brand new position and a one like in Alphabet Google,
Speaker 4: then it does suggest that there might be you know,
Speaker 4: a lot of bullishness as to that stock.
Speaker 3: Love having the hedge fun perspective from your hammer across
Speaker 3: our world of Techema Palmer, we appreciate it. Meanwhile, all
Speaker 3: eyes on in video fundamentals as a company reports earnings.
Speaker 3: On Wednesday, Chris Larkin over e Trade from Augustanley, saying
Speaker 3: that the monthly jobs report would normally dominate the week's
Speaker 3: economic calendar, but with the AI trade struggling the past
Speaker 3: couple of weeks, in Video's earnings and once again looking
Speaker 3: like a key piece of the market's momentum, puzzle here
Speaker 3: to break it down in King, because look, we can
Speaker 3: see companies and hedge funds maybe selling their entire holdings
Speaker 3: of Invidio, but the fundamentals look pretty strong right now.
Speaker 3: In it seems yeah.
Speaker 5: I mean, as you know, Caroline, we just had a
Speaker 5: chat with Jensen in Washington a short time ago, and
Speaker 5: what he was saying that that conference was like, hey,
Speaker 5: I've got half a trillion dollars with the vorders coming
Speaker 5: in the next few quarters. So on a fundamental basis,
Speaker 5: at least from his perspective, thing to see here everything
Speaker 5: is is kind of still heading up into the right.
Speaker 3: I mean extraordinary. We're anticipating what fifty five billion dollars
Speaker 3: worth of overall sales coming on the quarter. In there
Speaker 3: is areas where we could perhaps get a bit more granularity,
Speaker 3: whether it's concentration of certain end users, but also whether
Speaker 3: we're going to get any access to China.
Speaker 5: Yeah, I mean the concentration thing. They keep giving us
Speaker 5: a number, and it hovers around sort of fifty percent
Speaker 5: of their revenue at least for the data center business
Speaker 5: coming from sort of Microsoft, Amazon and that sort of
Speaker 5: those hyperscalers. I think investors would like to see that
Speaker 5: number go down as a percentage and see that AI
Speaker 5: was being spread throughout the economy. And as you mentioned
Speaker 5: in video, keeps saying, look, we're not banking anything from China.
Speaker 5: We still don't know how the geopolitics is going to
Speaker 5: work out, but he has.
Speaker 3: Been very clear on the opportunity of sovereign AI more broadly, so,
Speaker 3: do you think you'll get more of a global perspective
Speaker 3: there of other end users, whether it be governments or
Speaker 3: whether it be other enterprises.
Speaker 5: Yeah, I mean, I think we've heard the sales pitch
Speaker 5: over and over again. He's very good at the sales pitch,
Speaker 5: as you know. And we've also seen a lot of
Speaker 5: deals announced here there, and you know, Jensen's been all
Speaker 5: over the world and that's all good, that's all trying
Speaker 5: to create the sense of progress, but I think what
Speaker 5: investors would like to see is that kind of translating
Speaker 5: into something in terms of revenue that rivals one of
Speaker 5: his big customers such as Microsoft, such as AWS such
Speaker 5: as Meta Ian King.
Speaker 2: Thank you very much. It's gonna be a busy week
Speaker 2: as always for you.
Speaker 3: Meanwhile, let's get the broader tech forew as investors, of
Speaker 3: course are gearing up for a videos results this week.
Speaker 3: Ja Jacobs is with US Blackrock, head of US equity ETFs.
Speaker 3: You've had some phenomenal success with certain of the ETFs
Speaker 3: you've offered this year alone in terms of actively managed
Speaker 3: AI bets in video a key holding. How much of
Speaker 3: an impact will it make on general sentiment do you think?
Speaker 6: I don't think there's going to be a ton of
Speaker 6: change in sentiment based offf of short term earnings or
Speaker 6: just any individual company. We see a lot of our
Speaker 6: investors looking at artificial intelligence has just a long term
Speaker 6: transformational theme that they want in their portfolios. Oftentimes this
Speaker 6: is being funded by selling out of the tech sector
Speaker 6: and allocating to AI. So frankly, for a lot of investors,
Speaker 6: they haven't met changed their position in the mag seven.
Speaker 6: They're just extending to get a broader exposure to the
Speaker 6: entire artificial intelligence value chain.
Speaker 3: In the last couple of weeks, we have seen more
Speaker 3: anxiety though, and you've seen downward pressure on some.
Speaker 2: Of the biggest AI winners.
Speaker 3: JAY. Has that changed any of the types of conversations
Speaker 3: you're having.
Speaker 6: No, I mean, we've continued to see inflows and to BAI,
Speaker 6: which is our actively managed AI fund, and I think frankly,
Speaker 6: a fair amount of investors out there have frankly been
Speaker 6: looking for a buy the dip opportunity. They've seen this
Speaker 6: trade continue with so much momentum over a couple of years.
Speaker 6: Now that we're on basically the third year anniversary of
Speaker 6: chat GBT coming out, a lot of investors have been
Speaker 6: looking for a little bit of a buying opportunity to
Speaker 6: get into the AI trade.
Speaker 2: What, therefore, are.
Speaker 3: Some of the conversations you're having in terms of nuance,
Speaker 3: because the nuance is constantly changing. Initially it was all
Speaker 3: about return on AI. Then it was about whether or
Speaker 3: not enterprises are really using them effectively, whether the pilots
Speaker 3: are working. What are the types of conversations that you're
Speaker 3: having about to the upside down the downside when it
Speaker 3: comes to your actively managed AI trade.
Speaker 6: Well, we're seeing a lot of investors ask about kind
Speaker 6: of what's going on beyond the MAG seven. There's been
Speaker 6: a fair amount of discussions about data centers, about power infrastructure,
Speaker 6: about some of the early adopters and artificial intelligence. So
Speaker 6: a lot of that nuance is really about looking across
Speaker 6: the entire value chain for opportunities, not just concentrating all
Speaker 6: of the activity around the MAG seven.
Speaker 3: So when you're looking at BAI, I think it's about
Speaker 3: seven billion dollars in active in assets under management there
Speaker 3: where are they managing to play out the entirety of
Speaker 3: the AI trade Because, as you say, much of the
Speaker 3: value has been gained in AI infrastructure bets, but that's
Speaker 3: broadening out now, Well, that's right.
Speaker 6: I think a lot of the exposure is looking at
Speaker 6: that AI infrastructure trade that's semiconductors, but really broadly looking
Speaker 6: across the semiconductor spectrum, that's looking at data centers. We
Speaker 6: have some power infrastructure names in the fund. I think
Speaker 6: as we continue to see AI evolve, it's going to
Speaker 6: move from this CAPEX heavy infrastructure build out into more
Speaker 6: of the models that are generating revenue. As you see
Speaker 6: more adoption and I think we're starting to see that
Speaker 6: in some of the earnings now about how many tokens
Speaker 6: are being processed by some of the largest large language models.
Speaker 6: That we're seeing a lot more companies talk about adopting
Speaker 6: AI and their business practices. So I think over time,
Speaker 6: over the next couple of years, we will see a
Speaker 6: shift in the positioning from the infrastructure layer to the
Speaker 6: model's data and applications layer of the AI value chain.
Speaker 3: When though you do hear headline risk SoftBank selling its
Speaker 3: entire stake and Nvidia, Peter Tel Macro Funds selling its
Speaker 3: entire steak and in Vidia, do you suddenly get a
Speaker 3: load more calls? Do you suddenly get a little bit
Speaker 3: more of a questioning of the circularity of deals that
Speaker 3: we've had of late.
Speaker 2: No, that hasn't been the case.
Speaker 6: And I think it's because you can look at kind
Speaker 6: of the near term noise about who's buying or selling
Speaker 6: or some you know, very short term earnings. The long
Speaker 6: term trend of this theme has only been gaining stem
Speaker 6: and so I think a lot of our investors really
Speaker 6: look at it as has there been a structural shift
Speaker 6: here or not? And oftentimes if you're looking at thirteen
Speaker 6: f filings or just headlines. It could just be repositioning
Speaker 6: within the value chain. It doesn't represent a lesser bet
Speaker 6: on artificial intelligence as a whole. So we continue to
Speaker 6: have a ton of conviction. Our clients have not been
Speaker 6: terribly concerned about headlines. It's really about kind of the
Speaker 6: continued adoption of artificial intelligence that's been driving so much
Speaker 6: of the interest in this fond Okay.
Speaker 3: So maybe a buying opportunity. What about some of the
Speaker 3: cellar that you've seen in crypto. Of course significant flows
Speaker 3: have come into your ETF when it comes to the
Speaker 3: Bitcoin exposure, but that's come back of late. It must
Speaker 3: be said, how is that feeling sentiment wise?
Speaker 6: You know, kind of similar. I mean this fond ibid
Speaker 6: is still up nearly double since we launched it just
Speaker 6: last January, so I think, you know a lot of
Speaker 6: early people are still quite excited. And then what's been
Speaker 6: changing is there's been growing of availability of ibit. So
Speaker 6: some of the major wealth platforms in the United States,
Speaker 6: which represent trillions of dollars of assets, have just enabled
Speaker 6: their advisors to be able to buy ibit, and so frankly,
Speaker 6: for a lot of people who are just getting into
Speaker 6: the ecosystem. They're quite thrilled that they get to be
Speaker 6: able to get in off of highs as they start
Speaker 6: to think about allocating as a more structural position in
Speaker 6: people's portfolios.
Speaker 3: Jjks a black Root. Great to check in with you,
Speaker 3: Thank you very much. Indeed, today, who are coming up? Well,
Speaker 3: we're just talking about crypto. It's supposed to be crypto's
Speaker 3: year with an administration in the White House that was
Speaker 3: more friendly to it. So why is it the digital
Speaker 3: coins have been foiling? We'll have more on that next.
Speaker 3: Will just check in on Amazon. We're going cross asset
Speaker 3: for you because we're down one point nine percent on Amazon.
Speaker 3: But that's the equity trade. The fact is it's selling
Speaker 3: a six part bond sale. At the moment, it's first
Speaker 3: US delominated sale in at least three years, up to
Speaker 3: twelve billion dollars worth forty year debt.
Speaker 2: Are just a percentage point.
Speaker 3: Also over where theoretical US treasuries are trade. They're cashing
Speaker 3: in on the debt market, looking to put into data centers.
Speaker 3: It would seem from New York there's a Bloomberg tech.
Speaker 2: Crypto. It's in sell off mode.
Speaker 3: Still, we're currently off for the month thirteen percent. On Bitcoin,
Speaker 3: it's down twenty five percent thereabouts from its highs of
Speaker 3: one hundred and twenty six thousand dollars where it hit
Speaker 3: back in October. Ethereum, as you see, has been held
Speaker 3: harder off by twenty percent. And look the smaller crypto Dogecoin,
Speaker 3: which of course was initially set up as a joke,
Speaker 3: it's also down fifteen percent in the last month alone,
Speaker 3: as people start to question really whether we can hold
Speaker 3: on to the gains and certainly some of the leverage
Speaker 3: that's been built into the system. Let's talk about all
Speaker 3: of this with Blue Moost crypto reporter Miaoshen. Now, what
Speaker 3: is it that is driving the selling and the sentiment
Speaker 3: lower because we all thought the administration's adoption of crypto
Speaker 3: in many ways would just continue the asset classes rise.
Speaker 2: Yeah, exactly.
Speaker 7: I think what we're seeing today in the crypto market
Speaker 7: is that it's still recovering from what happened in October,
Speaker 7: where we saw this larger liquidation event happened in the
Speaker 7: crypto If you look at like both institutional and retail investors,
Speaker 7: we haven't seen any large firms coming out saying they
Speaker 7: had any blow up and stuff like that. But it
Speaker 7: does feel like sound trading shops, smaller ones might have
Speaker 7: some issues. You can see that from the open interests
Speaker 7: of perpetual futures market in crypto. The open interests hasn't
Speaker 7: really recovered since the market crash in October. That tells
Speaker 7: me something about sound trading shops may have had issues.
Speaker 3: Yes, I mean, remind us what happened was October the
Speaker 3: nineteenth thing? It was ever the course of a weekend,
Speaker 3: just an awful lot of leverage got pulled out the
Speaker 3: system because a sudden jarring move in cryptom and everyone
Speaker 3: then had this sort of well they were margin called.
Speaker 3: It would feel like, yes, why would we not have
Speaker 3: heard of certain blow ups? So what could have therefore
Speaker 3: been more broadly making everyone more nervous about training that's
Speaker 3: going forward.
Speaker 7: I think we saw the number Obviously, the larger liquidation
Speaker 7: numbers are in history. I think a couple of reasons
Speaker 7: point into that. Obvious retailers are looking more leverage in
Speaker 7: the space. That's why we're seeing more sort of like
Speaker 7: cruidations events. The other thing, I think previously both most
Speaker 7: of the future's tradings are happening on centralized exchanges like
Speaker 7: finance and coin bits, right, so we can really tell.
Speaker 7: So sometimes these numbers are more like murky. You don't
Speaker 7: know exactly what happens when large liquidation events happen. But
Speaker 7: today a lot of these tradings happens on Chin on
Speaker 7: the blockchain directly, so there's more transparency. So the numbers
Speaker 7: tend to look much bigger than previous cycles.
Speaker 2: I think we're looking at certain atf flows.
Speaker 3: They've been more than fifty billion since their creation, but we'
Speaker 3: seen about two billion pulled out in the last couple
Speaker 3: of months.
Speaker 2: Where we think the most pain is it in bitcoin?
Speaker 3: Is it the larger areas or is it some of
Speaker 3: the more sunning, riskier core old coins that have been
Speaker 3: traded and whipsored a little harder?
Speaker 7: I think for sure from auto coins perspective, because you
Speaker 7: can see that from the prices action, right, Like you
Speaker 7: mentioned about those core not just doagecoin other like cryptocurrencies.
Speaker 3: During the market.
Speaker 7: Crash in October, sun Tooken's went down to almost zero,
Speaker 7: which is crazy to think about, right. I think that
Speaker 7: hurts especially retail investors because retail investors are those who
Speaker 7: tend to buy a lot of auto coins, and they
Speaker 7: got wiped out from that market crash, and right now
Speaker 7: you just don't see a lot of demand from these
Speaker 7: auto coins.
Speaker 3: But people are still buying, Like we just had J
Speaker 3: Jacobs and Black Croc saying for many a pullback in
Speaker 3: certain of their ets means people actually buy into it.
Speaker 3: I'm seeing Michael Saylor, I mean obviously og crypto buyer
Speaker 3: and treasury stocker upper of he's doubled down on.
Speaker 2: His digital asset treasury.
Speaker 3: It feels like so is he making the most of
Speaker 3: lower bitcoin prices.
Speaker 2: I think it's a two different source.
Speaker 7: Right We're talking about the micro strategy micro sailors like
Speaker 7: Bitcoin sort of like buyers, and then we have the
Speaker 7: auto coin buyers. I think we need to separate this
Speaker 7: to as to like driving forces. I think all the
Speaker 7: bigcoins like because the fundamental is speaking, nothing really changed
Speaker 7: on bitcoins specifically. There are still buyers, but I think
Speaker 7: what's happening the market has been like sort of like
Speaker 7: got into the bigcoin market as well. That's where we're
Speaker 7: seeing what's happening with bitcoin. I think that's the sort
Speaker 7: of aftermath what happened with all the coin crashes in
Speaker 7: the October market crash, except.
Speaker 3: Blimberg's Miyasha, and you've got to follow her all of
Speaker 3: her work across crypto.
Speaker 2: It's fascinating.
Speaker 3: We thank her.
Speaker 2: Meanwhile, coming up.
Speaker 3: Apple set to make big changes to its iPhone designs.
Speaker 2: And its release schedule. We're on that next. This is
Speaker 2: a BLUEBG Tech.
Speaker 3: Apple Well, it's set to change up not just its
Speaker 3: iPhone designs but also its release cycle next year, releasing
Speaker 3: three high end phones next four, with mid tier phones
Speaker 3: to follow six months later. The latest topic in this
Speaker 3: weekend's power On newsletter. For more, Blueberg Senior Tech editor
Speaker 3: Dana Wolman joins us, Dana, why is it so significant
Speaker 3: that the timing would change?
Speaker 7: So?
Speaker 8: I think both consumers like us and also, frankly, Apple's
Speaker 8: competitors have gotten used to Apple releasing new iPhones every
Speaker 8: year like clockwork in the fall, and that has certain ramifications.
Speaker 1: One.
Speaker 8: I think consumers savvy consumers, and that's many of us
Speaker 8: know not to necessarily replace an iPhone if they don't
Speaker 8: have to in the months preceding what they assume will
Speaker 8: be the launch. And Apple's competitors have moved up the
Speaker 8: launches of their flag flagship phones, often to over the summer,
Speaker 8: sort of getting a jump on Apple. So this would
Speaker 8: be a big change for the company if it does
Speaker 8: indeed turn to a strategy where it releases new products
Speaker 8: throughout the year, as opposed to concentrating these really powerhouse
Speaker 8: launches in one particular season.
Speaker 3: Season, often towards the holiday season. But now they're trying
Speaker 3: to drip feed a little bit more day now. And
Speaker 3: what's interesting is that we are expecting some really seismic
Speaker 3: changes to the actual phone itself.
Speaker 8: Yes, absolutely, And this comes on the heels of Apple
Speaker 8: introducing the iPhone Air, which Mark German said in his
Speaker 8: newsletter really feels like a test case for something even
Speaker 8: more ambitious, which would be Apple's upcoming foldable phone, And
Speaker 8: that would be just the first of several new changes
Speaker 8: to Apple's iPhone line and really just coming as part
Speaker 8: of a larger what seems like a larger spate of
Speaker 8: product launches. I think consumers to some extent have gotten
Speaker 8: used to long lulls between Apple's product launches, and I
Speaker 8: think the launches now are going to be more frequent
Speaker 8: and just more numerous. It does seem like Apples in
Speaker 8: a period of launching more stuff, in some cases more
Speaker 8: ambitious products than perhaps consumers have come to expect.
Speaker 3: And there must have been economies of scale to a
Speaker 3: certain extent of having one big event with all the
Speaker 3: marketing prowess around it and everyone to go and digest
Speaker 3: rather than this constant drip feed. Was that why initially
Speaker 3: it all came one big, particular wow moment.
Speaker 8: I think that is certainly part of it, and I
Speaker 8: think the holiday timing is no coincidence. As Mark wrote
Speaker 8: in his newsletter, there were certain downsides, of course, as well,
Speaker 8: to this strategy. It sounds like it puts some strain
Speaker 8: on various teams inside Apple, from marketing to engineering, and
Speaker 8: also concentrated revenue in a certain part of the year,
Speaker 8: which is not ideal for the company. And it sounds
Speaker 8: like this new strategy is intended to address a number
Speaker 8: of those pain points. And I didn't even mention the
Speaker 8: impact that those kind of concentrated launches might have on
Speaker 8: some of Apple's suppliers, but Mark did mention that as
Speaker 8: well in this weekend's newsletter.
Speaker 3: Okay, and so well, Broady, who do you think the
Speaker 3: competition is that they've had to really align themselves. I
Speaker 3: just think of this season that's just gone almost to
Speaker 3: front run Apple. We had Google with its announcements just
Speaker 3: weeks before.
Speaker 2: Samsung often tries to do it.
Speaker 3: Is that really where some of the competitive spaces come from.
Speaker 8: Yes, and certainly I have a very US centric point
Speaker 8: of view. So here in the US, those would be
Speaker 8: Apple's biggest competitors on the smartphone front. And then there's
Speaker 8: a whole of other competitors in China, which is a
Speaker 8: huge critical market for Apple. And and that's a market
Speaker 8: where Apple has you know, sort of plateaued a bit
Speaker 8: and has seen rising competition from domestic players. So it
Speaker 8: does have a lot of competition in different regions and
Speaker 8: on different fronts and at different price points. I would add,
Speaker 8: not all of its competition is at the premium end.
Speaker 8: There are a whole bunch of brands, especially in Asia,
Speaker 8: that are making devices that are quite aggressively priced.
Speaker 3: Well, said Dana Woman. Great to get the contacts. We
Speaker 3: thank you. Now it's time for talking tech and first up.
Speaker 3: Shares of Chinese giant c ATL fell from a major
Speaker 3: shareholder moved to cut its steak in the company. The
Speaker 3: latest pressure facing the energy storage maker as reports grow
Speaker 3: that the US rold makers are actually pushing to cut
Speaker 3: impults of Chinese made Brigg components, which could hit sentiment
Speaker 3: for c ATL further. August Sanley wrote plus Google a meta,
Speaker 3: They're among those who have delayed their role out of
Speaker 3: some sea Internet cables stayed to run through the Red Sea.
Speaker 3: Now this is but it's tensions and heightened security threats
Speaker 3: have made roots more dangerous and complicated for commercial vessels.
Speaker 2: The delays are said to be throttling.
Speaker 3: The supply of much needed broadband in underserved countries. Now
Speaker 3: coming up, Ramp CEO Eric Glyman joins us to talk
Speaker 3: about the startup's latest funning round as its valuation jumps again.
Speaker 3: This is Bloomberg Tech. Welcome back to Bloomberg Tech. Let's
Speaker 3: check in on these markets. It's a big week. It's
Speaker 3: our super Bowl. It is in video earnings coming on Wednesday.
Speaker 3: But we're just languishing, just flat on the day as
Speaker 3: we build up to that all important macro event, let's
Speaker 3: call it. We're off by about a tenth of a percent.
Speaker 3: Is people try to dissect what we're going to hear
Speaker 3: from the key job supports as well what we're actually
Speaker 3: going to get in terms of data the FED. But
Speaker 3: at the moment, stocks retreating bonds dollar rising a little bit.
Speaker 3: Let's move on to the individual stops that I want
Speaker 3: you to keep an eye on, though, because Alphabet higher
Speaker 3: four percent high, it's really sustaining some of the NASDAK
Speaker 3: today in large part because Basha Hawaway's been a buyer.
Speaker 3: Huge amount almost five billion dollars worth of Alphabet shares
Speaker 3: stocked up by Berkshire have the way we got in
Speaker 3: the thirteen F filings new although in video we looked
Speaker 3: for thirty F filings coming from Peter Teel. His macro
Speaker 3: fund completely sold out of his position. Look, it's only
Speaker 3: one hundred million dollars worth, not five point eight billion dollars.
Speaker 3: We've seen soft bankhof flow the previous week. Nevertheless, people
Speaker 3: either making the most of the share price rise, booking
Speaker 3: in profits or allocating to different types of AI trade.
Speaker 3: We're seeing Dell off by six percent though some big
Speaker 3: moves coming from that stock today along with HP, along
Speaker 3: with oempers, largely because Morgan Stanley is worrying about sluggish
Speaker 3: demand and more broadly the fact that the price of
Speaker 3: memory tips is going higher it's going to be impacting
Speaker 3: some of the margins. Dell a significant seller and the
Speaker 3: double downgrade we got from Morgan Stanley. But let's talk
Speaker 3: in the private markets now, because we've got some big
Speaker 3: news because corporate spending management platform RAMP, it's got a
Speaker 3: new valuation and it's big. It's thirty two billion dollars
Speaker 3: comes after a three hundred million dollar primary financing round
Speaker 3: and an employee tender offer. Marks another huge jump in
Speaker 3: the start up value in a short period of time.
Speaker 3: RAMP CEO Eric Lyman joining us now. So the money,
Speaker 3: why do you need it?
Speaker 2: Eric?
Speaker 9: Oh my gosh.
Speaker 3: Well, a couple of things.
Speaker 9: First, thank you so much for having me today, and
Speaker 9: what is a joy? We're incredibly excited to raise the
Speaker 9: signs for a couple of reasons. First, the business is
Speaker 9: growing even faster at scale. Ramp's customer base and the
Speaker 9: revenue we're doing has more than doubled over the past year.
Speaker 9: And we find the times we're living in right now,
Speaker 9: the opportunity to invest in bringing AI to businesses around
Speaker 9: the world to automate expense reports make it easier to
Speaker 9: run a business and also invest furthers in this growth
Speaker 9: made it an easy choice to invest and serve more
Speaker 9: customers faster.
Speaker 3: Okay, because there has been so much fits and starts
Speaker 3: of how much Generative II is actually leading to productivity.
Speaker 3: Many worrying about the ninety five percent of pilots that
Speaker 3: aren't working according to MIT.
Speaker 2: So what's working for you?
Speaker 3: How are you showing that this is really building productivity
Speaker 3: and or time management allocation where people can do the
Speaker 3: work they want to do, not just file expense reports.
Speaker 9: Something that so unique about RAMP as we measure our
Speaker 9: own success by how much less money we've helped customer spend,
Speaker 9: and what we find is that the average customer that
Speaker 9: adopts RAMP is able to reduce their spend by about
Speaker 9: five percent per year, and the media and customer using
Speaker 9: RAMP is growing their revenue by about twelve percent per year,
Speaker 9: which is more than double the US national average. I
Speaker 9: think that uniqueness on ROI, on actually showing companies where
Speaker 9: they can cut out spend, how they can automate expenses,
Speaker 9: separate us, and I would argue makes us part of
Speaker 9: that five percent of in that study where people are
Speaker 9: finding is actually very very useful and.
Speaker 3: They actually demanding real detail. I loved some of the
Speaker 3: notes that I got that your treasury agents moved five
Speaker 3: point five million dollars of idle cash into four percent investments.
Speaker 2: Your policy agent.
Speaker 3: Prevented five hundred eleven thousand out of policy transactions. Is
Speaker 3: that the granularity that people want to see?
Speaker 9: Yes, it is because I think for a lot of companies,
Speaker 9: really they're looking to understand. Okay, I know that time
Speaker 9: is money. If you're a company, every hour that you're
Speaker 9: paying someone, let's say, to do their expense reports, is
Speaker 9: an hour that they're not selling the next customer, reporting
Speaker 9: on the news, whatever really drives value to that business
Speaker 9: and ramping able to show this was attempted to spend
Speaker 9: that on a different type of program would have gone through.
Speaker 9: This is time your people would have been doing these
Speaker 9: low value tasks instead, that's automated. The spend didn't occur
Speaker 9: in the first place. The categorization is done for you
Speaker 9: makes a real difference. And for a CFO, I think
Speaker 9: is really all that matters. It's about the bottom line
Speaker 9: and that's what we deliver.
Speaker 3: And it matters to the CEO because they want time
Speaker 3: allocated in a different way. I saw that Brett Taylor
Speaker 3: of Sierra and also the chairman of open AI was
Speaker 3: quoted saying, you know his talent and therefore better placed
Speaker 3: to be working on the agency wants to build, not
Speaker 3: filing at Spenser Sports. But but you talk about that
Speaker 3: twelve percent average revenue growth your customer base. Is that
Speaker 3: because you are serving companies like Sierra startups rather than
Speaker 3: the Fortune five hundred or the bigger kind of companies
Speaker 3: that perhaps don't have the revenue growth that startups do.
Speaker 2: It's a great question.
Speaker 9: First, you know, I like to believe the most disciplined
Speaker 9: and well run companies, of course, will be adopting we
Speaker 9: think the most cutting edge tools in the market, which
Speaker 9: is ramp that helps people just run leaner. But I
Speaker 9: think the majority of our customers, by a long shot,
Speaker 9: are actually traditional businesses farms, nonprofits, restaurants, hospitals, traditional businesses
Speaker 9: that you would not expect in many ways to be
Speaker 9: cutting edge adopters for them. They're looking for easier to
Speaker 9: do expense reports. You know you might be used to.
Speaker 9: You know, it's the worst out of your month doing
Speaker 9: expenses for them. They tap a card, it does itself.
Speaker 9: They upload an invoice. Our ocr will go and automatically
Speaker 9: categorize the transaction, set the payment date to the data
Speaker 9: to actually due, so you're not losing a dollar out
Speaker 9: in interest and then categorizing the transaction for you. And
Speaker 9: so I think you know when you look at the
Speaker 9: type of businesses, these are leaders like CBRE, Shopify, the
Speaker 9: Boys and Girls Clubs of America, businesses of all shapes
Speaker 9: and sizes. I actually think are looking, especially in these times,
Speaker 9: get more from every dollar an hour.
Speaker 3: Your venture backers are a who's who lists. Basically light
Speaker 3: speed has led this financing. But you've got co to
Speaker 3: of an air thrive. We've got fans one so many
Speaker 3: of them continuing to back you. But I want to
Speaker 3: go to the talent side, because there was an opportunity
Speaker 3: for your employees to tender their shares. How many did
Speaker 3: or how many are holding on thinking thirty two billion
Speaker 3: isn't the end of it.
Speaker 9: It's people at RAMP are very very excited about the momentum.
Speaker 9: I mean, just to give you some context, RAMP is
Speaker 9: now larger than the media and publicly traded SaaS company,
Speaker 9: and our gross profit, which is a great measure of
Speaker 9: our profitability, is growing ten times as fast, and so
Speaker 9: no doubt, I think people are very very excited. There's
Speaker 9: a lot more to deliver. The process is ongoing. But
Speaker 9: for us, whether an employee chooses to sell or not
Speaker 9: to sell. It's very valuable, especially in building a public company,
Speaker 9: to know that you have the option that you can
Speaker 9: say yes or no to selling some shares. And we
Speaker 9: think that's a great thing.
Speaker 2: Building a public company.
Speaker 3: Will address that timeline next time, Ram ceo Eric Clyman's
Speaker 3: got to catch a flight. But it's been so good
Speaker 3: to have you in the show. Thank you very much. Indeed, meanwhile,
Speaker 3: coming up, go back to the markets for Fionnas and
Speaker 3: Cultus City Index, Scena market analyst.
Speaker 2: No, we'll all thinking about as in video results.
Speaker 3: That's next.
Speaker 2: This is Bloomberg Tech. The pressure on Tech, well.
Speaker 3: It's coming as traders are suddenly getting more selective about
Speaker 3: the AI beneficiaries.
Speaker 2: Two stocks that show the.
Speaker 3: Divergence a micro core Weave and Micron now shares of
Speaker 3: compute provider care Weave as you see, down forty four
Speaker 3: percent in a month, while Micron has seen a twenty
Speaker 3: four percent rise on demand for its memory chips.
Speaker 2: Bloomberg Execut's reporter.
Speaker 3: Com and Ryanicky has been writing about what seems to
Speaker 3: be suddenly some discernment coming from the investor base. Let's
Speaker 3: take call Weave first and foremost, it's still much higher
Speaker 3: than it's IPO. But why are we suddenly seeing a
Speaker 3: bit more pressure on the stock.
Speaker 10: Yeah, so we've really switched from a capex discussion back
Speaker 10: to an ROI return on investment discussion, and traders are
Speaker 10: really looking for the ROI. They want to see that
Speaker 10: all of the spending on AI is paying off and
Speaker 10: that it's really making a difference to companies, either top
Speaker 10: line or bottom line. And so with core Weave, that's
Speaker 10: a little bit of the concern. You know, they're spending
Speaker 10: a lot, are they actually seeing a return on investment?
Speaker 10: And then the other thing with coreve is that they're
Speaker 10: financing a lot of their growth with debt, and so
Speaker 10: those the difference in balance sheet is something that's also
Speaker 10: really coming into focus here with traders saying, you know,
Speaker 10: even though they grew revenue, I think they doubled.
Speaker 3: It in the last quarter, that debt is an.
Speaker 10: Issue and they just want to make sure that it's
Speaker 10: going to be you know, okay going forward.
Speaker 2: Yeah, the same sort of concerns.
Speaker 3: Nervousness crept in when Meta sold thirty billion dollars of bonds,
Speaker 3: but then Alphabet gets a pass, they sold debt and
Speaker 3: we're seeing Amazon come to the market as well. Today.
Speaker 3: I'm interested then on the halves because Mike Cron look
Speaker 3: memory flying off the shelves. It seems as though their
Speaker 3: share price is rocketed this year totally.
Speaker 10: And it's really interesting because it's it's all of this
Speaker 10: demand that we hear about, right, there's incredible demand. People
Speaker 10: are making these huge forecasts, but it's really balancing it
Speaker 10: with the other pieces of the puzzle on the balance sheet,
Speaker 10: and I think that's why we're seeing Micron do so
Speaker 10: well as opposed to Oracle. Remember had that huge spike
Speaker 10: when it said it had this incredible revenue forecast. But
Speaker 10: as it's taken on more debt and some of those
Speaker 10: other things have shifted, it's sold off all of.
Speaker 3: That huge jump.
Speaker 10: So I mean, as you said, Alphabet getting a big jump,
Speaker 10: this yame, I mean Berkshire Hathaway's stake off, so probably
Speaker 10: ducing that. But we're just seeing a huge sort of
Speaker 10: diversion in the names that people are flocking to and
Speaker 10: then selling off.
Speaker 3: We want to know who's got the margin and who's
Speaker 3: got the capital to be able to afford all the investment.
Speaker 3: It's so good. Your writing's always brilliant common rhinicky. We
Speaker 3: appreciate it. Meanwhile, more on the AI anxiety in the
Speaker 3: markets that are just skittish ahead of Nvidia's numbers, fas
Speaker 3: and cultures with us in City Index Financial Markets senior.
Speaker 2: Analysts, we just come off this conversation in common.
Speaker 3: Where people are deciding that they would perhaps sell some
Speaker 3: of their previous winners and certainly ones that have taken
Speaker 3: on a lot of debt.
Speaker 2: Is that something you'll say, yes.
Speaker 11: I think we are seeing that investors are becoming more
Speaker 11: selective over where they want to invest as far as
Speaker 11: the AI trade is concerned. I mean, previously it had
Speaker 11: just sort of been invested in AI and anything that
Speaker 11: really mentioned AI seem to be a winner. But I
Speaker 11: think whereas we we're sort of seeing this AI trade mature,
Speaker 11: investors are taking their time to become more selective, questioning,
Speaker 11: you know, how this is going to be monetized, what
Speaker 11: can actually be how it will be used, rather than
Speaker 11: just jumping on the AI trade more broadly.
Speaker 2: Should they be questioning in video.
Speaker 11: That's a great question. I mean, you know, it's very
Speaker 11: much in focus for our clients. This is you know,
Speaker 11: one of the key earnings or the key earning I
Speaker 11: would say each season. And obviously we have seen you know,
Speaker 11: the likes of soft Bank leeder Thals selling out entirely
Speaker 11: of then the video holdings. I do think there is
Speaker 11: that this is a litmus tech. You know, can the
Speaker 11: chip maker continue powering the AI rally that's really you know,
Speaker 11: defined the broader market tech tech rally this year. I
Speaker 11: think there are some reasons to be positive there. You know,
Speaker 11: we heard from CEO Huang in October that there's four
Speaker 11: hundred billion dollars worth of orders for chips that are
Speaker 11: very much at the heart of this AI boom, so
Speaker 11: that is a strong order book. But obviously, at the
Speaker 11: same time, we have seen really impressive rally in this
Speaker 11: share price, and we know that growth is strong but slowing.
Speaker 11: But I think broadly speaking, I think it will be
Speaker 11: fair to say that there is potential for that AI
Speaker 11: rally to still continue to run further. There are concerns
Speaker 11: obviously about that circular deals around one trillion circular deals
Speaker 11: that we've been seeing. I think that's what the market's
Speaker 11: nervous about. So, you know, any insight into that I
Speaker 11: think would be helpful.
Speaker 3: What about the concentration that comes with n Video. I
Speaker 3: think it was last earnings report about thirty nine percent
Speaker 3: of orders are coming from just two key hyperscalers. Is
Speaker 3: that something that people are worrying about, not only the
Speaker 3: secularity of deals, but the over reliance I'm just say
Speaker 3: a few players.
Speaker 11: Yeah, I think that is going to be again, you know,
Speaker 11: remaining a point of concern. As you mentioned, if you've
Speaker 11: got sort of you know, fewer customers or fewer big clients,
Speaker 11: then obviously there is a risk that is attached to that.
Speaker 11: So you know, any broadening out of that is going
Speaker 11: to be good news as far as the stock is concerned.
Speaker 11: And obviously, you know, we are saying that the market
Speaker 11: is nervous, and I think we do see this every
Speaker 11: time we come to Nvidia earnings in recent quarters, that
Speaker 11: there is a little bit of nervousness surrounding the numbers.
Speaker 11: And I think that does come with reason. You can't
Speaker 11: just jump blindly into a trade, but I think there
Speaker 11: is still reason to be positive.
Speaker 3: Can you balance, therefore, just the level of rationality in
Speaker 3: the market right now, and whether you give credence to
Speaker 3: the worries over a bubble or whether actually this is
Speaker 3: just how growth is likely to continue. Yeah, do you know.
Speaker 11: I mean, as you point out, there have been so
Speaker 11: many discussions surrounding are we in bubble territory comparisons.
Speaker 2: To the dot com era?
Speaker 11: But you know, I think that the market is still
Speaker 11: acting rationally. It is still questioning whether you know, these
Speaker 11: are valuations which are acceptable. And I think that does
Speaker 11: point to a market which, as I said, is acting rationally,
Speaker 11: which does go against that bubble narrative. But I think,
Speaker 11: you know, we do need to be moving this forward
Speaker 11: as well and questioning, you know, how will this be monetized,
Speaker 11: will demand actually be met? You know, what are the
Speaker 11: strains that could appear? So I think that is the
Speaker 11: signs that the market is right asking the right questions.
Speaker 3: They're asking those questions around the equity side. What about
Speaker 3: the bond market offerings that we're seeing coming thick and fast.
Speaker 3: How much you're seeing just a desire to begain AAI
Speaker 3: exposure from names like an Amazon that hasn't sold dollar
Speaker 3: dormandy and debt in three years.
Speaker 11: Yeah, So this is really interesting and I think it
Speaker 11: does point to this.
Speaker 2: Sort of almost insatiable demand.
Speaker 11: I think that you know, there are reasons to be
Speaker 11: cautious and again, you know, going back to that idea
Speaker 11: of being making sure you question investments before jumping in
Speaker 11: is always a good idea. And I think, you know,
Speaker 11: creating these these the bond sort of aspect of this
Speaker 11: trade is quite an interesting take on it.
Speaker 2: And one that will be following closely any cause. On crypto, ah, do.
Speaker 11: You know, Crypto is a really interesting one at the moment.
Speaker 11: You know, I think we saw that rejection last week
Speaker 11: about one oh seven level, but I think you know
Speaker 11: the fact that we've taken out some really key technical levels.
Speaker 11: The fifty week SMA was one that I was watching
Speaker 11: very closely. We're seeing that that institutional demand has really faded.
Speaker 11: Long term sellers, long term holders are selling, So I
Speaker 11: think there's a lot of reason to be cautious.
Speaker 2: That said, you know, I think the levels.
Speaker 11: That we're holding around at the moment, that's ninety three thousand,
Speaker 11: I think as long as that holds, and there could
Speaker 11: be potential if we see institutional demand return for a
Speaker 11: move higher. But I think, you know, the market still
Speaker 11: feels a bit fragile after that massive liquidation of an
Speaker 11: in early October, which is causing that reason for caution we.
Speaker 3: Like you're talking technicals on simple moving averages. We appreciate
Speaker 3: it for Ona Sinkotta, as City and x stay well.
Speaker 3: Coming up, Ford strikes to deal with Amazon to sell
Speaker 3: used cars on the e commerce website. We'll talk about
Speaker 3: the reason and the impact on other online car dealers.
Speaker 2: That's next. This is a Bloomberg tech.
Speaker 3: Ford seaming up with Amazon to sell it's used vehicles
Speaker 3: directly through the e commerce trant, becoming the second major
Speaker 3: automator after Hyundai, to list cars on massive online retailer.
Speaker 3: Let's get more, Brie Exalter reporter Keith Norton. So, Hono
Speaker 3: went first. Now Ford is doing it? And am I
Speaker 3: going to Amazon dot com and finding my forward there
Speaker 3: or have they got other areas in which I'm gonna
Speaker 3: be able to navigate?
Speaker 12: Yeah? So I mean it's certified used vehicles from Ford.
Speaker 12: Initially Handai does new vehicles through Amazon, and yeah, it
Speaker 12: is your very familiar, you know, add to my cart
Speaker 12: kind of Amazon experience. You can do the financing, you
Speaker 12: can browse the site and pick your car, and then
Speaker 12: you pick it up from a dealer. You do the
Speaker 12: final paperwork at the dealer. You can do a test
Speaker 12: drive at the dealer if you'd like to as well.
Speaker 3: What's interesting is that it did have an impact on CarMax,
Speaker 3: on Kavana, on others that are selling used cars and
Speaker 3: used vehicles. How much of a significant player do you
Speaker 3: think Amazon could become?
Speaker 12: Yeah, I mean they are Amazon, right, so if they
Speaker 12: really get into this and that is their goal, they
Speaker 12: could become a very significan player. So you saw those
Speaker 12: two carbon or carmets dropped initially on the news, although
Speaker 12: carvan is back up again. So you know, I think
Speaker 12: it does stimulate interest in the category of online car buying,
Speaker 12: which a lot of consumers, you know, it sounds good
Speaker 12: to them because it reduces the hassle, reduces the time.
Speaker 12: It's the sort of no haggle, one price selling. A
Speaker 12: lot of people like that option as well. So it
Speaker 12: is something that has promised.
Speaker 2: What about new vehicles? Would they dip that toe.
Speaker 12: That Yeah, I mean that's kind of what Ford was
Speaker 12: telling me. You know, they're going to see how it
Speaker 12: goes with this certified used program. And you know, these
Speaker 12: are cars that receive multiplaying inspections. They have a manufacturer's
Speaker 12: warranty of up to a year and twelve thousand miles
Speaker 12: on some of them, so it is sort of new
Speaker 12: car light, if you will. So if that goes well,
Speaker 12: they may do as Hyundai is doing and sell new
Speaker 12: cars on the site as well.
Speaker 3: And mess Keith Norton is a great story. Thanks for sharing.
Speaker 3: It's a busy day for Amazon more broadly, as it
Speaker 3: announced its first dollar denominated bond sale in three years.
Speaker 3: It aims to raise twelve billion dollars a six part
Speaker 3: debt offering. The mex expense of Soaper is here to
Speaker 3: explain why Amazon might be tapping the debt market. Have
Speaker 3: a feeling of something about data.
Speaker 13: Centers, Yeah, exactly. They've been spending a lot on data
Speaker 13: centers and this is more more fuel for that. They're
Speaker 13: coming in a little lighter than some of their competitors
Speaker 13: in terms of the amount they're looking to raise a
Speaker 13: twelve billion. Others have raised thirty billion, twenty five billion
Speaker 13: when we look at like Oracle and Google and Meta.
Speaker 13: So they're coming in a little bit light. But that
Speaker 13: also might just be an indication that they have more
Speaker 13: cash flow available to keep these investments going on a
Speaker 13: running basis, and they're looking at one hundred and fifty
Speaker 13: billion in twenty twenty six.
Speaker 3: Onex wow, and twelve billion is but a bit of
Speaker 3: a drop in the ocean in that respect.
Speaker 2: But I can understand when you're able to sell forty
Speaker 2: a debt a just a percentage point.
Speaker 3: Over theoretical US Treasury is it looks like a relatively
Speaker 3: cheap way of financing some of these big names. But Spencer,
Speaker 3: where have we understood where the big expense is coming
Speaker 3: full from Amazon in terms of the data center one.
Speaker 2: Hundred and fifty billion.
Speaker 3: Is it going into the land, Is it going into
Speaker 3: the infrastructure? Is it going to building their own chips
Speaker 3: as well?
Speaker 2: But a bit more.
Speaker 13: Yeah, it's going into all of the above, and they
Speaker 13: can't build them fast enough. And a big consideration is
Speaker 13: still power, you know, is still once they build these
Speaker 13: facilities where they have the you know, sufficient energy to
Speaker 13: power them. So yes, it's it is a race, and
Speaker 13: they just want to make sure that they have the
Speaker 13: capital available that take care take advantage of any opportunities
Speaker 13: as they come.
Speaker 3: It feels hard, I'm sure for those that have recently
Speaker 3: been said that they're being like go from the company though.
Speaker 13: Just yeah, of course, you know, Amazon recently laid off
Speaker 13: you know, more than ten thousand workers, and yes, but
Speaker 13: you're just going to see them constantly recalibrating. It's such
Speaker 13: a vast business and they have so many you know,
Speaker 13: operating lines that some are getting more efficient because of AI,
Speaker 13: and they're letting people go, but then they're going to
Speaker 13: keep investing in hiring in the artificial intelligence race to
Speaker 13: make sure that that they're keeping up with their peers.
Speaker 3: And briefly talking of AI race, it looks as though
Speaker 3: finally Jeff Bezos might becoming a CEO at least a
Speaker 3: co CEO again. Project Prometheus has been reported on the
Speaker 3: New York Times, So we could be launching a startup.
Speaker 13: Yeah, that's very interesting report, and it also just highlights
Speaker 13: how even Bezos has to diversify in the AI race,
Speaker 13: you know, because when these kind of technologies emerge, there's
Speaker 13: always a question of you know, you have these big
Speaker 13: established companies that can throw a lot of money at it,
Speaker 13: but they also have all of these encumbrances in terms
Speaker 13: of their existing operations and will that you know, is
Speaker 13: it better to have a pure place startup looking at
Speaker 13: artificial intelligence inclusively to plow ahead. And so it is
Speaker 13: interesting to see him going going solo with a new
Speaker 13: a new artificial intelligence startup.
Speaker 3: Yeah reports that it's going to have six billion dollars
Speaker 3: out the gates and it's AI for engineering and manufacturing
Speaker 3: of computers, automobiles, and spacecraft. We know we liked Blue Origin. Meanwhile,
Speaker 3: bluebgg Spencer Sofa, thanks so much for breaking it all down.
Speaker 2: Now that's it for this edition of Blomberg Tech.
Speaker 3: Do not forget to check out our podcast and on
Speaker 3: the terminal, as well as online on Apple, Spotify, an iHeart.
Speaker 2: This is Bloomberg Tech.