WEBVTT - Theil’s Hedge Funds Sells Entire Nvidia Stake 0:00:02.520 --> 0:00:13.760 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live 0:00:13.800 --> 0:00:17.640 from coast to coast with Caroline Hyde in New York 0:00:17.880 --> 0:00:19.840 and Eva Though in San Francisco. 0:00:22.239 --> 0:00:23.760 This is Bloomberg Tech coming up. 0:00:23.760 --> 0:00:27.240 In Vidia selloff, SoftBank isn't the only company exiting the 0:00:27.320 --> 0:00:30.640 AI MVP as a shareholder. Peter Teal's hedge fund offloads 0:00:30.840 --> 0:00:32.000 its entire position. 0:00:32.440 --> 0:00:35.120 Details from a thirteen F filing, plus a crypto market 0:00:35.200 --> 0:00:36.000 sell off shows. 0:00:35.760 --> 0:00:38.440 No sign of easing and some of the riskiest tokens. 0:00:38.240 --> 0:00:39.319 They're bearing the brunt of it. 0:00:39.760 --> 0:00:42.640 And Amazon is seeking to raise about twelve billion dollars 0:00:42.680 --> 0:00:46.120 through a debt offering an industry wide race to build 0:00:46.159 --> 0:00:47.320 AI infrastructure. 0:00:47.479 --> 0:00:49.479 But first we check in on the markets that have 0:00:49.600 --> 0:00:50.280 been under pressure. 0:00:50.320 --> 0:00:53.199 We are once again questioning AI valuations. We're checking some 0:00:53.240 --> 0:00:55.840 of the biggest winners and whether or not we're taking 0:00:55.840 --> 0:00:58.080 money off the table. We're off flat on the day 0:00:58.280 --> 0:01:00.279 on the NASAK one hundred. More broadly, but it's been 0:01:00.280 --> 0:01:03.240 a volatile session thus far, as we've tried to dissect 0:01:03.280 --> 0:01:05.600 who wins from some of the purchases, Alphabet being key 0:01:05.600 --> 0:01:07.880 among them, and who's being sold off. Let's just dig 0:01:07.920 --> 0:01:09.800 into some individual movers that I want to shine a 0:01:09.840 --> 0:01:12.639 light on because thirteen f filings they tell you an awful 0:01:12.640 --> 0:01:15.800 lot who is being bought. Alphabet is being backed by 0:01:15.840 --> 0:01:19.040 Berkshire Hathaway. We're up five percent, a significant move that 0:01:19.080 --> 0:01:21.920 helps them as that one hundred more broadly be training 0:01:21.959 --> 0:01:24.680 flat even though sentiments seems to be shifting to the downside. 0:01:24.720 --> 0:01:27.000 Sentiment on the downside. For a video ahead of its 0:01:27.000 --> 0:01:30.600 earnings later this week, we understand that another key investor 0:01:30.600 --> 0:01:34.160 that everyone watches this one Peter Teel of loading his 0:01:34.480 --> 0:01:37.280 entire holding from his macro fund his hedge fund in 0:01:37.280 --> 0:01:38.880 in video. We want to get to both of these 0:01:38.959 --> 0:01:42.080 key stories because the Teal macro fund, as we know, 0:01:42.280 --> 0:01:45.080 has been one that we really do focus in. At 0:01:45.120 --> 0:01:48.360 the moment, it does still hold onto Microsoft and a 0:01:48.480 --> 0:01:51.600 reduced stake in Tesla we understand as its main bets 0:01:51.640 --> 0:01:53.760 all according to that filing, we want to dig into 0:01:53.800 --> 0:01:56.280 it with a hedge fund. Reporter Emma Palmer, Now, look, 0:01:57.000 --> 0:01:59.720 this is someone that we always follow. Peter Teel made 0:01:59.720 --> 0:02:03.600 his foun by backing meta artists formally known as Facebook, 0:02:03.720 --> 0:02:06.800 and now he takes key bets on publicly traded companies. 0:02:06.840 --> 0:02:09.480 But while offload one hundred million dollars worth of Nvidia. 0:02:10.000 --> 0:02:14.359 Yes, it's especially interesting given how concentrated his portfolio is 0:02:14.440 --> 0:02:17.000 really only four or five stocks, So when we see 0:02:17.000 --> 0:02:20.000 a rotation in this portfolio, it holds a lot of meaning, 0:02:20.080 --> 0:02:23.200 even though the position itself was only about one hundred 0:02:23.240 --> 0:02:25.880 million dollars, which in our hedge fund world isn't that 0:02:26.000 --> 0:02:28.200 much when we look at the exposure, So you know, 0:02:28.280 --> 0:02:29.880 this may be a reflection of a lot of the 0:02:29.919 --> 0:02:34.280 cautions and concerns that we're seeing around the AI space. Valuations, 0:02:34.400 --> 0:02:36.760 the amount of money that's just flooding into the space, 0:02:37.040 --> 0:02:40.440 concerns people have about the circular nature of investments and 0:02:40.480 --> 0:02:42.760 money in this industry, and so this could be an 0:02:42.800 --> 0:02:45.839 expression of that. Typically, when you see a concentrated portfolio 0:02:46.080 --> 0:02:50.080 and a shift that's notable, like editing a position entirely, 0:02:50.720 --> 0:02:55.680 then it often suggests a directional and concerning What's. 0:02:55.440 --> 0:02:58.480 Interesting, though, is that the overall fund in terms of 0:02:58.520 --> 0:03:01.000 deployed money into equities gone from an excess of two 0:03:01.120 --> 0:03:04.000 hundred million down to about only about seventy million currently deployed, 0:03:04.000 --> 0:03:06.400 and we understand the coll so that he is still 0:03:06.400 --> 0:03:09.760 making big bets on startups. We just had Substrate on 0:03:10.000 --> 0:03:11.919 a couple of weeks ago, the CEO that he's now 0:03:11.960 --> 0:03:14.760 backing to take on ASML and take on some of 0:03:14.760 --> 0:03:17.880 the chip design and equipment makers in particular Hammer. So 0:03:18.240 --> 0:03:21.960 do we think in similarity to SoftBank they exited five 0:03:22.000 --> 0:03:25.079 point eight billion dollars worth of Nvidia, but that was about. 0:03:24.800 --> 0:03:27.480 Having money to be able to reallocate other areas the 0:03:27.520 --> 0:03:28.520 AI ecosystem. 0:03:28.720 --> 0:03:29.440 Yes, exactly. 0:03:29.480 --> 0:03:31.600 So when we look at these startup investors, you know, 0:03:31.639 --> 0:03:34.760 they put a lot of money into the pre IPO space, 0:03:34.840 --> 0:03:37.560 into these companies before they make a lot of their 0:03:37.760 --> 0:03:41.040 gains post IPO, and so you know how they think 0:03:41.040 --> 0:03:43.320 about the startup space and then how they think about 0:03:43.360 --> 0:03:45.560 the public market space could be expressed a little bit 0:03:45.560 --> 0:03:49.240 differently when we look at SoftBank, to your points, they 0:03:49.280 --> 0:03:52.280 did make that rotation to invest more into open AI. 0:03:52.640 --> 0:03:55.000 So the thirteen f's give us some clarity and how 0:03:55.080 --> 0:03:57.640 these money managers think and what they do, but really 0:03:57.760 --> 0:04:00.000 doesn't show us everything. It doesn't show us intention now, 0:04:00.520 --> 0:04:03.440 it doesn't show us shorts, and it doesn't show us 0:04:03.480 --> 0:04:06.040 other types of hedges against a position. So we do 0:04:06.120 --> 0:04:08.680 have a limited point of view. We'll take that because 0:04:08.720 --> 0:04:11.720 hedge ferns are so secretive and so private. But it 0:04:11.880 --> 0:04:15.760 is somewhat of a very specific insight. 0:04:16.000 --> 0:04:16.839 Great context. 0:04:17.000 --> 0:04:19.440 What is the context around Alphabet and the buying by 0:04:19.480 --> 0:04:20.240 Boatsha Hathaway. 0:04:20.360 --> 0:04:22.640 Yes, so when we look at Alphabet, a huge position 0:04:22.680 --> 0:04:26.239 for them eighteen million dollars eighteen million shares worth about 0:04:26.240 --> 0:04:29.480 five billion dollars as of the end of the third quarter. 0:04:29.760 --> 0:04:33.919 Now that means it is the tenth biggest holding for 0:04:34.000 --> 0:04:37.279 Berkshire Hathaway. Sizeable, but it also gives you a sense 0:04:37.320 --> 0:04:40.000 of just how much money this firm puts to work. 0:04:40.360 --> 0:04:43.320 Its biggest holding is still Apple. They did trim that 0:04:43.400 --> 0:04:46.640 steak by fifteen percent, but it still holds about a 0:04:46.720 --> 0:04:51.440 quarter of the portfolio exposure. So it's likely less of 0:04:51.560 --> 0:04:55.160 a directional view, perhaps more of a rotation of the 0:04:55.200 --> 0:04:58.800 portfolio to manage its exposure. But when we see a 0:04:58.800 --> 0:05:02.280 brand new position and a one like in Alphabet Google, 0:05:02.680 --> 0:05:05.279 then it does suggest that there might be you know, 0:05:05.320 --> 0:05:07.719 a lot of bullishness as to that stock. 0:05:08.320 --> 0:05:10.960 Love having the hedge fun perspective from your hammer across 0:05:10.960 --> 0:05:13.719 our world of Techema Palmer, we appreciate it. Meanwhile, all 0:05:13.760 --> 0:05:17.200 eyes on in video fundamentals as a company reports earnings. 0:05:17.240 --> 0:05:20.080 On Wednesday, Chris Larkin over e Trade from Augustanley, saying 0:05:20.080 --> 0:05:22.320 that the monthly jobs report would normally dominate the week's 0:05:22.320 --> 0:05:25.719 economic calendar, but with the AI trade struggling the past 0:05:25.760 --> 0:05:28.440 couple of weeks, in Video's earnings and once again looking 0:05:28.560 --> 0:05:31.640 like a key piece of the market's momentum, puzzle here 0:05:31.680 --> 0:05:34.040 to break it down in King, because look, we can 0:05:34.080 --> 0:05:38.159 see companies and hedge funds maybe selling their entire holdings 0:05:38.200 --> 0:05:41.159 of Invidio, but the fundamentals look pretty strong right now. 0:05:41.279 --> 0:05:43.040 In it seems yeah. 0:05:43.080 --> 0:05:45.279 I mean, as you know, Caroline, we just had a 0:05:45.360 --> 0:05:48.719 chat with Jensen in Washington a short time ago, and 0:05:48.839 --> 0:05:51.240 what he was saying that that conference was like, hey, 0:05:51.480 --> 0:05:54.080 I've got half a trillion dollars with the vorders coming 0:05:54.120 --> 0:05:58.000 in the next few quarters. So on a fundamental basis, 0:05:58.240 --> 0:06:01.279 at least from his perspective, thing to see here everything 0:06:01.360 --> 0:06:03.560 is is kind of still heading up into the right. 0:06:03.680 --> 0:06:06.680 I mean extraordinary. We're anticipating what fifty five billion dollars 0:06:06.720 --> 0:06:09.880 worth of overall sales coming on the quarter. In there 0:06:10.040 --> 0:06:12.520 is areas where we could perhaps get a bit more granularity, 0:06:12.560 --> 0:06:17.400 whether it's concentration of certain end users, but also whether 0:06:17.440 --> 0:06:19.080 we're going to get any access to China. 0:06:20.400 --> 0:06:23.160 Yeah, I mean the concentration thing. They keep giving us 0:06:23.160 --> 0:06:25.760 a number, and it hovers around sort of fifty percent 0:06:25.839 --> 0:06:28.320 of their revenue at least for the data center business 0:06:28.640 --> 0:06:32.239 coming from sort of Microsoft, Amazon and that sort of 0:06:32.360 --> 0:06:35.600 those hyperscalers. I think investors would like to see that 0:06:35.720 --> 0:06:38.880 number go down as a percentage and see that AI 0:06:39.160 --> 0:06:42.040 was being spread throughout the economy. And as you mentioned 0:06:42.040 --> 0:06:45.000 in video, keeps saying, look, we're not banking anything from China. 0:06:45.080 --> 0:06:47.440 We still don't know how the geopolitics is going to 0:06:47.440 --> 0:06:49.000 work out, but he has. 0:06:48.960 --> 0:06:52.640 Been very clear on the opportunity of sovereign AI more broadly, so, 0:06:52.680 --> 0:06:54.719 do you think you'll get more of a global perspective 0:06:54.760 --> 0:06:58.120 there of other end users, whether it be governments or 0:06:58.120 --> 0:06:59.400 whether it be other enterprises. 0:07:00.320 --> 0:07:02.760 Yeah, I mean, I think we've heard the sales pitch 0:07:02.880 --> 0:07:04.920 over and over again. He's very good at the sales pitch, 0:07:04.960 --> 0:07:07.440 as you know. And we've also seen a lot of 0:07:07.520 --> 0:07:10.840 deals announced here there, and you know, Jensen's been all 0:07:10.880 --> 0:07:13.560 over the world and that's all good, that's all trying 0:07:13.640 --> 0:07:15.520 to create the sense of progress, but I think what 0:07:15.560 --> 0:07:18.200 investors would like to see is that kind of translating 0:07:18.240 --> 0:07:22.000 into something in terms of revenue that rivals one of 0:07:22.040 --> 0:07:25.160 his big customers such as Microsoft, such as AWS such 0:07:25.160 --> 0:07:26.760 as Meta Ian King. 0:07:27.680 --> 0:07:29.120 Thank you very much. It's gonna be a busy week 0:07:29.160 --> 0:07:29.920 as always for you. 0:07:30.320 --> 0:07:32.960 Meanwhile, let's get the broader tech forew as investors, of 0:07:33.000 --> 0:07:35.000 course are gearing up for a videos results this week. 0:07:35.080 --> 0:07:37.720 Ja Jacobs is with US Blackrock, head of US equity ETFs. 0:07:38.040 --> 0:07:40.679 You've had some phenomenal success with certain of the ETFs 0:07:40.680 --> 0:07:43.400 you've offered this year alone in terms of actively managed 0:07:43.440 --> 0:07:46.280 AI bets in video a key holding. How much of 0:07:46.320 --> 0:07:49.120 an impact will it make on general sentiment do you think? 0:07:51.040 --> 0:07:52.600 I don't think there's going to be a ton of 0:07:52.680 --> 0:07:55.480 change in sentiment based offf of short term earnings or 0:07:55.560 --> 0:07:58.120 just any individual company. We see a lot of our 0:07:58.120 --> 0:08:01.400 investors looking at artificial intelligence has just a long term 0:08:01.480 --> 0:08:05.040 transformational theme that they want in their portfolios. Oftentimes this 0:08:05.120 --> 0:08:07.000 is being funded by selling out of the tech sector 0:08:07.040 --> 0:08:10.360 and allocating to AI. So frankly, for a lot of investors, 0:08:11.040 --> 0:08:13.480 they haven't met changed their position in the mag seven. 0:08:13.760 --> 0:08:17.280 They're just extending to get a broader exposure to the 0:08:17.600 --> 0:08:19.440 entire artificial intelligence value chain. 0:08:19.960 --> 0:08:22.280 In the last couple of weeks, we have seen more 0:08:22.360 --> 0:08:25.240 anxiety though, and you've seen downward pressure on some. 0:08:25.200 --> 0:08:26.360 Of the biggest AI winners. 0:08:26.480 --> 0:08:29.080 JAY. Has that changed any of the types of conversations 0:08:29.120 --> 0:08:29.600 you're having. 0:08:31.160 --> 0:08:33.600 No, I mean, we've continued to see inflows and to BAI, 0:08:33.640 --> 0:08:36.160 which is our actively managed AI fund, and I think frankly, 0:08:36.440 --> 0:08:39.240 a fair amount of investors out there have frankly been 0:08:39.280 --> 0:08:41.600 looking for a buy the dip opportunity. They've seen this 0:08:41.720 --> 0:08:44.720 trade continue with so much momentum over a couple of years. 0:08:45.040 --> 0:08:47.760 Now that we're on basically the third year anniversary of 0:08:47.840 --> 0:08:50.240 chat GBT coming out, a lot of investors have been 0:08:50.240 --> 0:08:52.440 looking for a little bit of a buying opportunity to 0:08:52.440 --> 0:08:53.760 get into the AI trade. 0:08:54.559 --> 0:08:55.840 What, therefore, are. 0:08:56.160 --> 0:08:59.079 Some of the conversations you're having in terms of nuance, 0:08:59.120 --> 0:09:01.520 because the nuance is constantly changing. Initially it was all 0:09:01.520 --> 0:09:03.719 about return on AI. Then it was about whether or 0:09:03.760 --> 0:09:06.280 not enterprises are really using them effectively, whether the pilots 0:09:06.280 --> 0:09:08.719 are working. What are the types of conversations that you're 0:09:08.760 --> 0:09:10.959 having about to the upside down the downside when it 0:09:11.000 --> 0:09:12.680 comes to your actively managed AI trade. 0:09:14.200 --> 0:09:16.319 Well, we're seeing a lot of investors ask about kind 0:09:16.320 --> 0:09:18.600 of what's going on beyond the MAG seven. There's been 0:09:18.600 --> 0:09:22.160 a fair amount of discussions about data centers, about power infrastructure, 0:09:22.440 --> 0:09:25.200 about some of the early adopters and artificial intelligence. So 0:09:25.559 --> 0:09:28.120 a lot of that nuance is really about looking across 0:09:28.160 --> 0:09:31.880 the entire value chain for opportunities, not just concentrating all 0:09:31.880 --> 0:09:33.640 of the activity around the MAG seven. 0:09:34.200 --> 0:09:36.240 So when you're looking at BAI, I think it's about 0:09:36.240 --> 0:09:39.199 seven billion dollars in active in assets under management there 0:09:39.640 --> 0:09:42.840 where are they managing to play out the entirety of 0:09:42.920 --> 0:09:45.240 the AI trade Because, as you say, much of the 0:09:45.320 --> 0:09:48.600 value has been gained in AI infrastructure bets, but that's 0:09:48.600 --> 0:09:51.640 broadening out now, Well, that's right. 0:09:51.679 --> 0:09:53.480 I think a lot of the exposure is looking at 0:09:53.480 --> 0:09:56.760 that AI infrastructure trade that's semiconductors, but really broadly looking 0:09:56.800 --> 0:10:00.200 across the semiconductor spectrum, that's looking at data centers. We 0:10:00.240 --> 0:10:02.839 have some power infrastructure names in the fund. I think 0:10:02.840 --> 0:10:05.360 as we continue to see AI evolve, it's going to 0:10:05.400 --> 0:10:10.280 move from this CAPEX heavy infrastructure build out into more 0:10:10.320 --> 0:10:12.880 of the models that are generating revenue. As you see 0:10:12.880 --> 0:10:15.080 more adoption and I think we're starting to see that 0:10:15.120 --> 0:10:17.840 in some of the earnings now about how many tokens 0:10:17.880 --> 0:10:20.880 are being processed by some of the largest large language models. 0:10:21.000 --> 0:10:23.240 That we're seeing a lot more companies talk about adopting 0:10:23.280 --> 0:10:26.440 AI and their business practices. So I think over time, 0:10:26.520 --> 0:10:28.160 over the next couple of years, we will see a 0:10:28.200 --> 0:10:31.400 shift in the positioning from the infrastructure layer to the 0:10:31.400 --> 0:10:34.320 model's data and applications layer of the AI value chain. 0:10:35.640 --> 0:10:40.920 When though you do hear headline risk SoftBank selling its 0:10:41.080 --> 0:10:44.480 entire stake and Nvidia, Peter Tel Macro Funds selling its 0:10:44.600 --> 0:10:46.720 entire steak and in Vidia, do you suddenly get a 0:10:46.720 --> 0:10:49.240 load more calls? Do you suddenly get a little bit 0:10:49.280 --> 0:10:51.800 more of a questioning of the circularity of deals that 0:10:51.800 --> 0:10:52.400 we've had of late. 0:10:53.960 --> 0:10:55.160 No, that hasn't been the case. 0:10:55.200 --> 0:10:57.480 And I think it's because you can look at kind 0:10:57.480 --> 0:10:59.880 of the near term noise about who's buying or selling 0:11:00.120 --> 0:11:02.920 or some you know, very short term earnings. The long 0:11:03.160 --> 0:11:06.040 term trend of this theme has only been gaining stem 0:11:06.080 --> 0:11:07.880 and so I think a lot of our investors really 0:11:07.880 --> 0:11:10.240 look at it as has there been a structural shift 0:11:10.280 --> 0:11:13.000 here or not? And oftentimes if you're looking at thirteen 0:11:13.080 --> 0:11:16.040 f filings or just headlines. It could just be repositioning 0:11:16.080 --> 0:11:20.680 within the value chain. It doesn't represent a lesser bet 0:11:20.720 --> 0:11:23.280 on artificial intelligence as a whole. So we continue to 0:11:23.280 --> 0:11:25.679 have a ton of conviction. Our clients have not been 0:11:25.760 --> 0:11:28.320 terribly concerned about headlines. It's really about kind of the 0:11:28.320 --> 0:11:31.640 continued adoption of artificial intelligence that's been driving so much 0:11:31.679 --> 0:11:33.360 of the interest in this fond Okay. 0:11:33.160 --> 0:11:35.120 So maybe a buying opportunity. What about some of the 0:11:35.160 --> 0:11:39.000 cellar that you've seen in crypto. Of course significant flows 0:11:39.000 --> 0:11:41.760 have come into your ETF when it comes to the 0:11:41.760 --> 0:11:44.560 Bitcoin exposure, but that's come back of late. It must 0:11:44.600 --> 0:11:46.839 be said, how is that feeling sentiment wise? 0:11:48.320 --> 0:11:50.400 You know, kind of similar. I mean this fond ibid 0:11:50.480 --> 0:11:52.840 is still up nearly double since we launched it just 0:11:52.960 --> 0:11:54.800 last January, so I think, you know a lot of 0:11:54.840 --> 0:11:58.280 early people are still quite excited. And then what's been 0:11:58.400 --> 0:12:01.880 changing is there's been growing of availability of ibit. So 0:12:01.920 --> 0:12:04.160 some of the major wealth platforms in the United States, 0:12:04.200 --> 0:12:07.520 which represent trillions of dollars of assets, have just enabled 0:12:07.520 --> 0:12:10.160 their advisors to be able to buy ibit, and so frankly, 0:12:10.200 --> 0:12:11.760 for a lot of people who are just getting into 0:12:11.800 --> 0:12:15.079 the ecosystem. They're quite thrilled that they get to be 0:12:15.120 --> 0:12:18.280 able to get in off of highs as they start 0:12:18.320 --> 0:12:20.920 to think about allocating as a more structural position in 0:12:20.960 --> 0:12:22.000 people's portfolios. 0:12:22.360 --> 0:12:24.600 Jjks a black Root. Great to check in with you, 0:12:24.840 --> 0:12:28.200 Thank you very much. Indeed, today, who are coming up? Well, 0:12:28.320 --> 0:12:30.840 we're just talking about crypto. It's supposed to be crypto's 0:12:30.880 --> 0:12:32.760 year with an administration in the White House that was 0:12:32.800 --> 0:12:35.679 more friendly to it. So why is it the digital 0:12:35.679 --> 0:12:38.480 coins have been foiling? We'll have more on that next. 0:12:38.920 --> 0:12:40.960 Will just check in on Amazon. We're going cross asset 0:12:41.000 --> 0:12:43.600 for you because we're down one point nine percent on Amazon. 0:12:43.640 --> 0:12:46.400 But that's the equity trade. The fact is it's selling 0:12:46.640 --> 0:12:49.120 a six part bond sale. At the moment, it's first 0:12:49.240 --> 0:12:52.240 US delominated sale in at least three years, up to 0:12:52.280 --> 0:12:54.400 twelve billion dollars worth forty year debt. 0:12:54.480 --> 0:12:55.640 Are just a percentage point. 0:12:55.640 --> 0:12:59.600 Also over where theoretical US treasuries are trade. They're cashing 0:12:59.640 --> 0:13:02.319 in on the debt market, looking to put into data centers. 0:13:02.320 --> 0:13:04.439 It would seem from New York there's a Bloomberg tech. 0:13:10.920 --> 0:13:13.040 Crypto. It's in sell off mode. 0:13:13.240 --> 0:13:16.920 Still, we're currently off for the month thirteen percent. On Bitcoin, 0:13:17.000 --> 0:13:19.240 it's down twenty five percent thereabouts from its highs of 0:13:19.240 --> 0:13:21.319 one hundred and twenty six thousand dollars where it hit 0:13:21.640 --> 0:13:24.960 back in October. Ethereum, as you see, has been held 0:13:25.040 --> 0:13:28.880 harder off by twenty percent. And look the smaller crypto Dogecoin, 0:13:28.920 --> 0:13:30.800 which of course was initially set up as a joke, 0:13:31.240 --> 0:13:33.880 it's also down fifteen percent in the last month alone, 0:13:33.960 --> 0:13:37.079 as people start to question really whether we can hold 0:13:37.120 --> 0:13:39.400 on to the gains and certainly some of the leverage 0:13:39.440 --> 0:13:41.760 that's been built into the system. Let's talk about all 0:13:41.800 --> 0:13:45.640 of this with Blue Moost crypto reporter Miaoshen. Now, what 0:13:45.880 --> 0:13:49.600 is it that is driving the selling and the sentiment 0:13:49.679 --> 0:13:54.600 lower because we all thought the administration's adoption of crypto 0:13:54.640 --> 0:13:58.120 in many ways would just continue the asset classes rise. 0:13:58.640 --> 0:13:59.360 Yeah, exactly. 0:13:59.400 --> 0:14:01.640 I think what we're seeing today in the crypto market 0:14:01.800 --> 0:14:05.000 is that it's still recovering from what happened in October, 0:14:05.240 --> 0:14:08.520 where we saw this larger liquidation event happened in the 0:14:08.559 --> 0:14:12.439 crypto If you look at like both institutional and retail investors, 0:14:13.120 --> 0:14:15.640 we haven't seen any large firms coming out saying they 0:14:15.640 --> 0:14:17.920 had any blow up and stuff like that. But it 0:14:17.960 --> 0:14:21.040 does feel like sound trading shops, smaller ones might have 0:14:21.080 --> 0:14:23.760 some issues. You can see that from the open interests 0:14:23.760 --> 0:14:28.480 of perpetual futures market in crypto. The open interests hasn't 0:14:28.520 --> 0:14:31.960 really recovered since the market crash in October. That tells 0:14:32.000 --> 0:14:34.800 me something about sound trading shops may have had issues. 0:14:35.400 --> 0:14:37.600 Yes, I mean, remind us what happened was October the 0:14:37.680 --> 0:14:39.480 nineteenth thing? It was ever the course of a weekend, 0:14:39.680 --> 0:14:41.720 just an awful lot of leverage got pulled out the 0:14:41.720 --> 0:14:44.280 system because a sudden jarring move in cryptom and everyone 0:14:44.320 --> 0:14:46.920 then had this sort of well they were margin called. 0:14:46.920 --> 0:14:49.120 It would feel like, yes, why would we not have 0:14:49.280 --> 0:14:52.800 heard of certain blow ups? So what could have therefore 0:14:52.880 --> 0:14:55.680 been more broadly making everyone more nervous about training that's 0:14:55.720 --> 0:14:56.280 going forward. 0:14:57.200 --> 0:15:01.040 I think we saw the number Obviously, the larger liquidation 0:15:01.200 --> 0:15:03.680 numbers are in history. I think a couple of reasons 0:15:03.720 --> 0:15:07.000 point into that. Obvious retailers are looking more leverage in 0:15:07.000 --> 0:15:09.160 the space. That's why we're seeing more sort of like 0:15:09.200 --> 0:15:13.440 cruidations events. The other thing, I think previously both most 0:15:13.480 --> 0:15:17.400 of the future's tradings are happening on centralized exchanges like 0:15:17.440 --> 0:15:19.720 finance and coin bits, right, so we can really tell. 0:15:20.040 --> 0:15:22.760 So sometimes these numbers are more like murky. You don't 0:15:22.760 --> 0:15:25.800 know exactly what happens when large liquidation events happen. But 0:15:25.880 --> 0:15:28.400 today a lot of these tradings happens on Chin on 0:15:28.440 --> 0:15:31.840 the blockchain directly, so there's more transparency. So the numbers 0:15:31.880 --> 0:15:35.040 tend to look much bigger than previous cycles. 0:15:35.160 --> 0:15:37.040 I think we're looking at certain atf flows. 0:15:37.080 --> 0:15:39.560 They've been more than fifty billion since their creation, but we' 0:15:39.600 --> 0:15:41.560 seen about two billion pulled out in the last couple 0:15:41.560 --> 0:15:42.040 of months. 0:15:42.400 --> 0:15:45.320 Where we think the most pain is it in bitcoin? 0:15:45.440 --> 0:15:48.280 Is it the larger areas or is it some of 0:15:48.320 --> 0:15:51.440 the more sunning, riskier core old coins that have been 0:15:51.680 --> 0:15:53.120 traded and whipsored a little harder? 0:15:53.480 --> 0:15:56.760 I think for sure from auto coins perspective, because you 0:15:56.800 --> 0:15:59.000 can see that from the prices action, right, Like you 0:15:59.040 --> 0:16:02.960 mentioned about those core not just doagecoin other like cryptocurrencies. 0:16:03.040 --> 0:16:04.000 During the market. 0:16:03.760 --> 0:16:07.080 Crash in October, sun Tooken's went down to almost zero, 0:16:07.120 --> 0:16:09.080 which is crazy to think about, right. I think that 0:16:09.200 --> 0:16:13.200 hurts especially retail investors because retail investors are those who 0:16:13.480 --> 0:16:15.960 tend to buy a lot of auto coins, and they 0:16:16.000 --> 0:16:18.600 got wiped out from that market crash, and right now 0:16:18.600 --> 0:16:20.200 you just don't see a lot of demand from these 0:16:20.240 --> 0:16:21.280 auto coins. 0:16:21.040 --> 0:16:22.920 But people are still buying, Like we just had J 0:16:23.080 --> 0:16:25.280 Jacobs and Black Croc saying for many a pullback in 0:16:25.320 --> 0:16:28.240 certain of their ets means people actually buy into it. 0:16:28.560 --> 0:16:32.520 I'm seeing Michael Saylor, I mean obviously og crypto buyer 0:16:32.600 --> 0:16:36.680 and treasury stocker upper of he's doubled down on. 0:16:36.720 --> 0:16:37.880 His digital asset treasury. 0:16:37.920 --> 0:16:39.320 It feels like so is he making the most of 0:16:39.320 --> 0:16:40.360 lower bitcoin prices. 0:16:41.600 --> 0:16:43.440 I think it's a two different source. 0:16:43.520 --> 0:16:47.160 Right We're talking about the micro strategy micro sailors like 0:16:47.280 --> 0:16:49.760 Bitcoin sort of like buyers, and then we have the 0:16:49.800 --> 0:16:52.600 auto coin buyers. I think we need to separate this 0:16:52.680 --> 0:16:55.200 to as to like driving forces. I think all the 0:16:55.200 --> 0:16:58.360 bigcoins like because the fundamental is speaking, nothing really changed 0:16:58.400 --> 0:17:01.760 on bitcoins specifically. There are still buyers, but I think 0:17:01.760 --> 0:17:04.000 what's happening the market has been like sort of like 0:17:04.720 --> 0:17:07.320 got into the bigcoin market as well. That's where we're 0:17:07.359 --> 0:17:10.640 seeing what's happening with bitcoin. I think that's the sort 0:17:10.640 --> 0:17:13.560 of aftermath what happened with all the coin crashes in 0:17:13.600 --> 0:17:16.400 the October market crash, except. 0:17:15.920 --> 0:17:18.159 Blimberg's Miyasha, and you've got to follow her all of 0:17:18.200 --> 0:17:19.360 her work across crypto. 0:17:19.680 --> 0:17:20.560 It's fascinating. 0:17:20.680 --> 0:17:21.159 We thank her. 0:17:21.200 --> 0:17:22.159 Meanwhile, coming up. 0:17:22.359 --> 0:17:25.600 Apple set to make big changes to its iPhone designs. 0:17:25.240 --> 0:17:28.240 And its release schedule. We're on that next. This is 0:17:28.240 --> 0:17:29.200 a BLUEBG Tech. 0:17:39.760 --> 0:17:42.200 Apple Well, it's set to change up not just its 0:17:42.200 --> 0:17:45.600 iPhone designs but also its release cycle next year, releasing 0:17:45.680 --> 0:17:48.280 three high end phones next four, with mid tier phones 0:17:48.320 --> 0:17:51.000 to follow six months later. The latest topic in this 0:17:51.040 --> 0:17:54.679 weekend's power On newsletter. For more, Blueberg Senior Tech editor 0:17:54.800 --> 0:17:58.280 Dana Wolman joins us, Dana, why is it so significant 0:17:58.359 --> 0:18:00.960 that the timing would change? 0:18:01.280 --> 0:18:01.359 So? 0:18:01.520 --> 0:18:05.080 I think both consumers like us and also, frankly, Apple's 0:18:05.119 --> 0:18:08.760 competitors have gotten used to Apple releasing new iPhones every 0:18:08.800 --> 0:18:13.440 year like clockwork in the fall, and that has certain ramifications. 0:18:13.480 --> 0:18:13.680 One. 0:18:13.760 --> 0:18:17.320 I think consumers savvy consumers, and that's many of us 0:18:17.760 --> 0:18:20.720 know not to necessarily replace an iPhone if they don't 0:18:20.720 --> 0:18:22.840 have to in the months preceding what they assume will 0:18:22.880 --> 0:18:25.920 be the launch. And Apple's competitors have moved up the 0:18:26.000 --> 0:18:29.119 launches of their flag flagship phones, often to over the summer, 0:18:29.840 --> 0:18:32.560 sort of getting a jump on Apple. So this would 0:18:32.560 --> 0:18:34.480 be a big change for the company if it does 0:18:34.520 --> 0:18:37.520 indeed turn to a strategy where it releases new products 0:18:37.560 --> 0:18:41.760 throughout the year, as opposed to concentrating these really powerhouse 0:18:41.840 --> 0:18:45.280 launches in one particular season. 0:18:45.440 --> 0:18:48.040 Season, often towards the holiday season. But now they're trying 0:18:48.080 --> 0:18:49.520 to drip feed a little bit more day now. And 0:18:49.520 --> 0:18:52.720 what's interesting is that we are expecting some really seismic 0:18:52.800 --> 0:18:54.560 changes to the actual phone itself. 0:18:56.560 --> 0:18:59.280 Yes, absolutely, And this comes on the heels of Apple 0:18:59.440 --> 0:19:01.960 introducing the iPhone Air, which Mark German said in his 0:19:02.040 --> 0:19:04.800 newsletter really feels like a test case for something even 0:19:04.800 --> 0:19:08.600 more ambitious, which would be Apple's upcoming foldable phone, And 0:19:08.640 --> 0:19:10.960 that would be just the first of several new changes 0:19:11.000 --> 0:19:17.920 to Apple's iPhone line and really just coming as part 0:19:17.960 --> 0:19:20.679 of a larger what seems like a larger spate of 0:19:20.720 --> 0:19:24.000 product launches. I think consumers to some extent have gotten 0:19:24.080 --> 0:19:27.280 used to long lulls between Apple's product launches, and I 0:19:27.320 --> 0:19:29.240 think the launches now are going to be more frequent 0:19:29.359 --> 0:19:32.680 and just more numerous. It does seem like Apples in 0:19:32.720 --> 0:19:35.360 a period of launching more stuff, in some cases more 0:19:35.400 --> 0:19:40.080 ambitious products than perhaps consumers have come to expect. 0:19:39.840 --> 0:19:42.480 And there must have been economies of scale to a 0:19:42.520 --> 0:19:45.520 certain extent of having one big event with all the 0:19:45.560 --> 0:19:48.640 marketing prowess around it and everyone to go and digest 0:19:48.760 --> 0:19:51.760 rather than this constant drip feed. Was that why initially 0:19:51.800 --> 0:19:55.359 it all came one big, particular wow moment. 0:19:57.600 --> 0:19:59.399 I think that is certainly part of it, and I 0:19:59.440 --> 0:20:03.120 think the holiday timing is no coincidence. As Mark wrote 0:20:03.160 --> 0:20:06.680 in his newsletter, there were certain downsides, of course, as well, 0:20:06.720 --> 0:20:10.159 to this strategy. It sounds like it puts some strain 0:20:10.320 --> 0:20:13.879 on various teams inside Apple, from marketing to engineering, and 0:20:13.920 --> 0:20:17.480 also concentrated revenue in a certain part of the year, 0:20:17.800 --> 0:20:19.800 which is not ideal for the company. And it sounds 0:20:19.840 --> 0:20:23.160 like this new strategy is intended to address a number 0:20:23.160 --> 0:20:25.639 of those pain points. And I didn't even mention the 0:20:25.800 --> 0:20:29.600 impact that those kind of concentrated launches might have on 0:20:29.760 --> 0:20:32.119 some of Apple's suppliers, but Mark did mention that as 0:20:32.160 --> 0:20:33.840 well in this weekend's newsletter. 0:20:34.359 --> 0:20:36.439 Okay, and so well, Broady, who do you think the 0:20:36.440 --> 0:20:39.479 competition is that they've had to really align themselves. I 0:20:39.520 --> 0:20:42.200 just think of this season that's just gone almost to 0:20:42.280 --> 0:20:45.159 front run Apple. We had Google with its announcements just 0:20:45.280 --> 0:20:45.919 weeks before. 0:20:46.000 --> 0:20:47.320 Samsung often tries to do it. 0:20:47.359 --> 0:20:49.919 Is that really where some of the competitive spaces come from. 0:20:50.840 --> 0:20:53.600 Yes, and certainly I have a very US centric point 0:20:53.600 --> 0:20:55.920 of view. So here in the US, those would be 0:20:55.960 --> 0:20:58.800 Apple's biggest competitors on the smartphone front. And then there's 0:20:58.840 --> 0:21:02.080 a whole of other competitors in China, which is a 0:21:02.160 --> 0:21:07.320 huge critical market for Apple. And and that's a market 0:21:07.359 --> 0:21:10.640 where Apple has you know, sort of plateaued a bit 0:21:10.680 --> 0:21:15.040 and has seen rising competition from domestic players. So it 0:21:15.119 --> 0:21:17.199 does have a lot of competition in different regions and 0:21:17.240 --> 0:21:20.000 on different fronts and at different price points. I would add, 0:21:20.400 --> 0:21:22.520 not all of its competition is at the premium end. 0:21:23.359 --> 0:21:27.840 There are a whole bunch of brands, especially in Asia, 0:21:27.920 --> 0:21:30.960 that are making devices that are quite aggressively priced. 0:21:31.240 --> 0:21:33.639 Well, said Dana Woman. Great to get the contacts. We 0:21:33.680 --> 0:21:36.760 thank you. Now it's time for talking tech and first up. 0:21:36.760 --> 0:21:39.520 Shares of Chinese giant c ATL fell from a major 0:21:39.560 --> 0:21:41.680 shareholder moved to cut its steak in the company. The 0:21:41.800 --> 0:21:44.720 latest pressure facing the energy storage maker as reports grow 0:21:44.800 --> 0:21:46.560 that the US rold makers are actually pushing to cut 0:21:46.640 --> 0:21:50.119 impults of Chinese made Brigg components, which could hit sentiment 0:21:50.200 --> 0:21:53.480 for c ATL further. August Sanley wrote plus Google a meta, 0:21:53.520 --> 0:21:56.000 They're among those who have delayed their role out of 0:21:56.040 --> 0:21:59.160 some sea Internet cables stayed to run through the Red Sea. 0:21:59.320 --> 0:22:01.919 Now this is but it's tensions and heightened security threats 0:22:02.040 --> 0:22:05.160 have made roots more dangerous and complicated for commercial vessels. 0:22:05.400 --> 0:22:07.520 The delays are said to be throttling. 0:22:07.040 --> 0:22:11.240 The supply of much needed broadband in underserved countries. Now 0:22:11.240 --> 0:22:14.600 coming up, Ramp CEO Eric Glyman joins us to talk 0:22:14.640 --> 0:22:18.359 about the startup's latest funning round as its valuation jumps again. 0:22:18.880 --> 0:22:29.920 This is Bloomberg Tech. Welcome back to Bloomberg Tech. Let's 0:22:30.000 --> 0:22:31.760 check in on these markets. It's a big week. It's 0:22:31.760 --> 0:22:34.120 our super Bowl. It is in video earnings coming on Wednesday. 0:22:34.160 --> 0:22:36.159 But we're just languishing, just flat on the day as 0:22:36.160 --> 0:22:39.000 we build up to that all important macro event, let's 0:22:39.000 --> 0:22:40.760 call it. We're off by about a tenth of a percent. 0:22:40.920 --> 0:22:42.840 Is people try to dissect what we're going to hear 0:22:42.840 --> 0:22:44.840 from the key job supports as well what we're actually 0:22:44.840 --> 0:22:46.800 going to get in terms of data the FED. But 0:22:46.880 --> 0:22:49.919 at the moment, stocks retreating bonds dollar rising a little bit. 0:22:50.000 --> 0:22:51.840 Let's move on to the individual stops that I want 0:22:51.880 --> 0:22:54.680 you to keep an eye on, though, because Alphabet higher 0:22:54.800 --> 0:22:57.680 four percent high, it's really sustaining some of the NASDAK 0:22:57.760 --> 0:23:00.639 today in large part because Basha Hawaway's been a buyer. 0:23:01.240 --> 0:23:04.320 Huge amount almost five billion dollars worth of Alphabet shares 0:23:04.480 --> 0:23:06.480 stocked up by Berkshire have the way we got in 0:23:06.520 --> 0:23:09.040 the thirteen F filings new although in video we looked 0:23:09.040 --> 0:23:11.280 for thirty F filings coming from Peter Teel. His macro 0:23:11.359 --> 0:23:14.000 fund completely sold out of his position. Look, it's only 0:23:14.000 --> 0:23:16.440 one hundred million dollars worth, not five point eight billion dollars. 0:23:16.480 --> 0:23:19.520 We've seen soft bankhof flow the previous week. Nevertheless, people 0:23:19.560 --> 0:23:22.560 either making the most of the share price rise, booking 0:23:22.600 --> 0:23:25.760 in profits or allocating to different types of AI trade. 0:23:25.760 --> 0:23:27.720 We're seeing Dell off by six percent though some big 0:23:27.760 --> 0:23:30.480 moves coming from that stock today along with HP, along 0:23:30.520 --> 0:23:34.120 with oempers, largely because Morgan Stanley is worrying about sluggish 0:23:34.160 --> 0:23:36.560 demand and more broadly the fact that the price of 0:23:36.600 --> 0:23:38.600 memory tips is going higher it's going to be impacting 0:23:38.600 --> 0:23:41.439 some of the margins. Dell a significant seller and the 0:23:41.480 --> 0:23:45.080 double downgrade we got from Morgan Stanley. But let's talk 0:23:45.280 --> 0:23:47.359 in the private markets now, because we've got some big 0:23:47.359 --> 0:23:50.480 news because corporate spending management platform RAMP, it's got a 0:23:50.520 --> 0:23:53.359 new valuation and it's big. It's thirty two billion dollars 0:23:53.560 --> 0:23:56.360 comes after a three hundred million dollar primary financing round 0:23:56.400 --> 0:23:59.560 and an employee tender offer. Marks another huge jump in 0:23:59.600 --> 0:24:01.480 the start up value in a short period of time. 0:24:01.920 --> 0:24:06.000 RAMP CEO Eric Lyman joining us now. So the money, 0:24:06.280 --> 0:24:06.840 why do you need it? 0:24:06.960 --> 0:24:07.200 Eric? 0:24:07.640 --> 0:24:08.520 Oh my gosh. 0:24:08.560 --> 0:24:09.440 Well, a couple of things. 0:24:09.480 --> 0:24:11.800 First, thank you so much for having me today, and 0:24:11.840 --> 0:24:14.919 what is a joy? We're incredibly excited to raise the 0:24:14.920 --> 0:24:17.480 signs for a couple of reasons. First, the business is 0:24:17.520 --> 0:24:20.480 growing even faster at scale. Ramp's customer base and the 0:24:20.480 --> 0:24:23.440 revenue we're doing has more than doubled over the past year. 0:24:24.240 --> 0:24:26.399 And we find the times we're living in right now, 0:24:27.119 --> 0:24:30.560 the opportunity to invest in bringing AI to businesses around 0:24:30.600 --> 0:24:32.800 the world to automate expense reports make it easier to 0:24:32.840 --> 0:24:35.080 run a business and also invest furthers in this growth 0:24:35.119 --> 0:24:37.639 made it an easy choice to invest and serve more 0:24:37.640 --> 0:24:38.359 customers faster. 0:24:38.600 --> 0:24:42.280 Okay, because there has been so much fits and starts 0:24:42.280 --> 0:24:45.560 of how much Generative II is actually leading to productivity. 0:24:45.600 --> 0:24:47.800 Many worrying about the ninety five percent of pilots that 0:24:47.880 --> 0:24:49.160 aren't working according to MIT. 0:24:49.320 --> 0:24:50.280 So what's working for you? 0:24:50.359 --> 0:24:53.360 How are you showing that this is really building productivity 0:24:53.400 --> 0:24:57.239 and or time management allocation where people can do the 0:24:57.240 --> 0:24:59.400 work they want to do, not just file expense reports. 0:24:59.560 --> 0:25:01.959 Something that so unique about RAMP as we measure our 0:25:01.960 --> 0:25:04.960 own success by how much less money we've helped customer spend, 0:25:05.400 --> 0:25:07.399 and what we find is that the average customer that 0:25:07.440 --> 0:25:09.720 adopts RAMP is able to reduce their spend by about 0:25:09.760 --> 0:25:13.160 five percent per year, and the media and customer using 0:25:13.280 --> 0:25:16.240 RAMP is growing their revenue by about twelve percent per year, 0:25:16.480 --> 0:25:19.359 which is more than double the US national average. I 0:25:19.400 --> 0:25:23.680 think that uniqueness on ROI, on actually showing companies where 0:25:23.720 --> 0:25:27.040 they can cut out spend, how they can automate expenses, 0:25:27.359 --> 0:25:29.320 separate us, and I would argue makes us part of 0:25:29.320 --> 0:25:32.479 that five percent of in that study where people are 0:25:32.480 --> 0:25:34.440 finding is actually very very useful and. 0:25:34.359 --> 0:25:36.800 They actually demanding real detail. I loved some of the 0:25:36.800 --> 0:25:38.880 notes that I got that your treasury agents moved five 0:25:38.880 --> 0:25:41.600 point five million dollars of idle cash into four percent investments. 0:25:41.720 --> 0:25:42.879 Your policy agent. 0:25:42.640 --> 0:25:46.000 Prevented five hundred eleven thousand out of policy transactions. Is 0:25:46.000 --> 0:25:47.840 that the granularity that people want to see? 0:25:48.040 --> 0:25:50.600 Yes, it is because I think for a lot of companies, 0:25:51.920 --> 0:25:54.520 really they're looking to understand. Okay, I know that time 0:25:54.600 --> 0:25:56.560 is money. If you're a company, every hour that you're 0:25:56.600 --> 0:25:58.680 paying someone, let's say, to do their expense reports, is 0:25:58.720 --> 0:26:01.520 an hour that they're not selling the next customer, reporting 0:26:01.560 --> 0:26:04.800 on the news, whatever really drives value to that business 0:26:04.880 --> 0:26:07.760 and ramping able to show this was attempted to spend 0:26:07.760 --> 0:26:10.359 that on a different type of program would have gone through. 0:26:10.680 --> 0:26:12.439 This is time your people would have been doing these 0:26:12.520 --> 0:26:16.320 low value tasks instead, that's automated. The spend didn't occur 0:26:16.359 --> 0:26:18.920 in the first place. The categorization is done for you 0:26:19.560 --> 0:26:22.800 makes a real difference. And for a CFO, I think 0:26:22.880 --> 0:26:25.120 is really all that matters. It's about the bottom line 0:26:25.119 --> 0:26:26.280 and that's what we deliver. 0:26:26.320 --> 0:26:28.360 And it matters to the CEO because they want time 0:26:28.400 --> 0:26:30.560 allocated in a different way. I saw that Brett Taylor 0:26:30.600 --> 0:26:32.600 of Sierra and also the chairman of open AI was 0:26:32.840 --> 0:26:36.360 quoted saying, you know his talent and therefore better placed 0:26:36.520 --> 0:26:38.399 to be working on the agency wants to build, not 0:26:38.480 --> 0:26:41.040 filing at Spenser Sports. But but you talk about that 0:26:41.080 --> 0:26:43.639 twelve percent average revenue growth your customer base. Is that 0:26:43.640 --> 0:26:47.560 because you are serving companies like Sierra startups rather than 0:26:48.200 --> 0:26:50.480 the Fortune five hundred or the bigger kind of companies 0:26:50.520 --> 0:26:53.000 that perhaps don't have the revenue growth that startups do. 0:26:53.600 --> 0:26:54.480 It's a great question. 0:26:54.560 --> 0:26:57.200 First, you know, I like to believe the most disciplined 0:26:57.240 --> 0:27:00.480 and well run companies, of course, will be adopting we 0:27:00.520 --> 0:27:02.320 think the most cutting edge tools in the market, which 0:27:02.320 --> 0:27:05.480 is ramp that helps people just run leaner. But I 0:27:05.520 --> 0:27:08.200 think the majority of our customers, by a long shot, 0:27:08.480 --> 0:27:15.040 are actually traditional businesses farms, nonprofits, restaurants, hospitals, traditional businesses 0:27:15.080 --> 0:27:17.560 that you would not expect in many ways to be 0:27:17.640 --> 0:27:20.000 cutting edge adopters for them. They're looking for easier to 0:27:20.040 --> 0:27:22.119 do expense reports. You know you might be used to. 0:27:22.320 --> 0:27:23.760 You know, it's the worst out of your month doing 0:27:23.800 --> 0:27:26.920 expenses for them. They tap a card, it does itself. 0:27:27.000 --> 0:27:31.040 They upload an invoice. Our ocr will go and automatically 0:27:31.080 --> 0:27:34.680 categorize the transaction, set the payment date to the data 0:27:34.800 --> 0:27:37.000 to actually due, so you're not losing a dollar out 0:27:37.000 --> 0:27:40.359 in interest and then categorizing the transaction for you. And 0:27:40.400 --> 0:27:42.000 so I think you know when you look at the 0:27:42.000 --> 0:27:47.159 type of businesses, these are leaders like CBRE, Shopify, the 0:27:47.160 --> 0:27:49.520 Boys and Girls Clubs of America, businesses of all shapes 0:27:49.560 --> 0:27:52.000 and sizes. I actually think are looking, especially in these times, 0:27:52.040 --> 0:27:53.320 get more from every dollar an hour. 0:27:53.520 --> 0:27:55.879 Your venture backers are a who's who lists. Basically light 0:27:55.960 --> 0:27:57.760 speed has led this financing. But you've got co to 0:27:57.880 --> 0:28:00.480 of an air thrive. We've got fans one so many 0:28:00.560 --> 0:28:02.159 of them continuing to back you. But I want to 0:28:02.200 --> 0:28:04.280 go to the talent side, because there was an opportunity 0:28:04.600 --> 0:28:08.320 for your employees to tender their shares. How many did 0:28:08.600 --> 0:28:11.040 or how many are holding on thinking thirty two billion 0:28:11.240 --> 0:28:12.320 isn't the end of it. 0:28:12.320 --> 0:28:15.920 It's people at RAMP are very very excited about the momentum. 0:28:16.000 --> 0:28:19.040 I mean, just to give you some context, RAMP is 0:28:19.160 --> 0:28:22.760 now larger than the media and publicly traded SaaS company, 0:28:23.040 --> 0:28:25.200 and our gross profit, which is a great measure of 0:28:25.240 --> 0:28:27.720 our profitability, is growing ten times as fast, and so 0:28:28.359 --> 0:28:30.960 no doubt, I think people are very very excited. There's 0:28:31.000 --> 0:28:34.040 a lot more to deliver. The process is ongoing. But 0:28:34.119 --> 0:28:36.479 for us, whether an employee chooses to sell or not 0:28:36.560 --> 0:28:40.400 to sell. It's very valuable, especially in building a public company, 0:28:40.440 --> 0:28:43.000 to know that you have the option that you can 0:28:43.080 --> 0:28:45.800 say yes or no to selling some shares. And we 0:28:45.840 --> 0:28:46.800 think that's a great thing. 0:28:46.920 --> 0:28:48.080 Building a public company. 0:28:48.280 --> 0:28:51.920 Will address that timeline next time, Ram ceo Eric Clyman's 0:28:51.920 --> 0:28:53.320 got to catch a flight. But it's been so good 0:28:53.320 --> 0:28:55.640 to have you in the show. Thank you very much. Indeed, meanwhile, 0:28:55.680 --> 0:28:57.800 coming up, go back to the markets for Fionnas and 0:28:57.840 --> 0:28:59.760 Cultus City Index, Scena market analyst. 0:29:00.200 --> 0:29:01.960 No, we'll all thinking about as in video results. 0:29:02.000 --> 0:29:02.480 That's next. 0:29:02.600 --> 0:29:21.640 This is Bloomberg Tech. The pressure on Tech, well. 0:29:21.520 --> 0:29:24.360 It's coming as traders are suddenly getting more selective about 0:29:24.400 --> 0:29:25.560 the AI beneficiaries. 0:29:25.800 --> 0:29:26.880 Two stocks that show the. 0:29:26.840 --> 0:29:31.440 Divergence a micro core Weave and Micron now shares of 0:29:31.440 --> 0:29:34.040 compute provider care Weave as you see, down forty four 0:29:34.040 --> 0:29:37.040 percent in a month, while Micron has seen a twenty 0:29:37.080 --> 0:29:39.120 four percent rise on demand for its memory chips. 0:29:39.120 --> 0:29:40.400 Bloomberg Execut's reporter. 0:29:40.320 --> 0:29:43.320 Com and Ryanicky has been writing about what seems to 0:29:43.360 --> 0:29:46.640 be suddenly some discernment coming from the investor base. Let's 0:29:46.680 --> 0:29:48.880 take call Weave first and foremost, it's still much higher 0:29:48.920 --> 0:29:51.320 than it's IPO. But why are we suddenly seeing a 0:29:51.320 --> 0:29:52.400 bit more pressure on the stock. 0:29:52.760 --> 0:29:57.000 Yeah, so we've really switched from a capex discussion back 0:29:57.040 --> 0:30:00.560 to an ROI return on investment discussion, and traders are 0:30:00.600 --> 0:30:03.360 really looking for the ROI. They want to see that 0:30:03.480 --> 0:30:05.640 all of the spending on AI is paying off and 0:30:05.640 --> 0:30:07.960 that it's really making a difference to companies, either top 0:30:08.000 --> 0:30:10.960 line or bottom line. And so with core Weave, that's 0:30:11.000 --> 0:30:13.200 a little bit of the concern. You know, they're spending 0:30:13.240 --> 0:30:15.800 a lot, are they actually seeing a return on investment? 0:30:15.800 --> 0:30:17.640 And then the other thing with coreve is that they're 0:30:17.680 --> 0:30:19.920 financing a lot of their growth with debt, and so 0:30:20.280 --> 0:30:23.240 those the difference in balance sheet is something that's also 0:30:23.280 --> 0:30:25.880 really coming into focus here with traders saying, you know, 0:30:25.960 --> 0:30:28.560 even though they grew revenue, I think they doubled. 0:30:28.240 --> 0:30:30.720 It in the last quarter, that debt is an. 0:30:30.600 --> 0:30:32.560 Issue and they just want to make sure that it's 0:30:32.640 --> 0:30:34.840 going to be you know, okay going forward. 0:30:34.920 --> 0:30:37.280 Yeah, the same sort of concerns. 0:30:37.480 --> 0:30:40.440 Nervousness crept in when Meta sold thirty billion dollars of bonds, 0:30:40.480 --> 0:30:42.800 but then Alphabet gets a pass, they sold debt and 0:30:42.800 --> 0:30:45.040 we're seeing Amazon come to the market as well. Today. 0:30:45.120 --> 0:30:48.680 I'm interested then on the halves because Mike Cron look 0:30:48.920 --> 0:30:50.920 memory flying off the shelves. It seems as though their 0:30:50.920 --> 0:30:52.920 share price is rocketed this year totally. 0:30:53.000 --> 0:30:56.520 And it's really interesting because it's it's all of this 0:30:56.680 --> 0:30:59.720 demand that we hear about, right, there's incredible demand. People 0:30:59.720 --> 0:31:02.560 are making these huge forecasts, but it's really balancing it 0:31:02.560 --> 0:31:04.600 with the other pieces of the puzzle on the balance sheet, 0:31:04.600 --> 0:31:06.240 and I think that's why we're seeing Micron do so 0:31:06.360 --> 0:31:09.640 well as opposed to Oracle. Remember had that huge spike 0:31:09.680 --> 0:31:12.400 when it said it had this incredible revenue forecast. But 0:31:12.880 --> 0:31:15.200 as it's taken on more debt and some of those 0:31:15.240 --> 0:31:17.760 other things have shifted, it's sold off all of. 0:31:17.640 --> 0:31:18.600 That huge jump. 0:31:18.920 --> 0:31:22.200 So I mean, as you said, Alphabet getting a big jump, 0:31:22.240 --> 0:31:24.680 this yame, I mean Berkshire Hathaway's stake off, so probably 0:31:24.760 --> 0:31:27.440 ducing that. But we're just seeing a huge sort of 0:31:27.480 --> 0:31:30.680 diversion in the names that people are flocking to and 0:31:30.680 --> 0:31:31.400 then selling off. 0:31:31.480 --> 0:31:34.040 We want to know who's got the margin and who's 0:31:34.080 --> 0:31:36.720 got the capital to be able to afford all the investment. 0:31:36.760 --> 0:31:39.480 It's so good. Your writing's always brilliant common rhinicky. We 0:31:39.560 --> 0:31:43.080 appreciate it. Meanwhile, more on the AI anxiety in the 0:31:43.080 --> 0:31:46.800 markets that are just skittish ahead of Nvidia's numbers, fas 0:31:46.800 --> 0:31:49.720 and cultures with us in City Index Financial Markets senior. 0:31:49.520 --> 0:31:53.840 Analysts, we just come off this conversation in common. 0:31:53.600 --> 0:31:56.200 Where people are deciding that they would perhaps sell some 0:31:56.240 --> 0:31:58.520 of their previous winners and certainly ones that have taken 0:31:58.520 --> 0:31:59.120 on a lot of debt. 0:31:59.240 --> 0:32:02.200 Is that something you'll say, yes. 0:32:02.320 --> 0:32:05.640 I think we are seeing that investors are becoming more 0:32:05.680 --> 0:32:09.560 selective over where they want to invest as far as 0:32:09.600 --> 0:32:13.320 the AI trade is concerned. I mean, previously it had 0:32:13.360 --> 0:32:15.760 just sort of been invested in AI and anything that 0:32:15.800 --> 0:32:18.360 really mentioned AI seem to be a winner. But I 0:32:18.360 --> 0:32:21.640 think whereas we we're sort of seeing this AI trade mature, 0:32:22.760 --> 0:32:27.480 investors are taking their time to become more selective, questioning, 0:32:27.680 --> 0:32:30.600 you know, how this is going to be monetized, what 0:32:30.680 --> 0:32:34.640 can actually be how it will be used, rather than 0:32:34.680 --> 0:32:37.040 just jumping on the AI trade more broadly. 0:32:37.000 --> 0:32:38.840 Should they be questioning in video. 0:32:40.640 --> 0:32:43.239 That's a great question. I mean, you know, it's very 0:32:43.360 --> 0:32:45.520 much in focus for our clients. This is you know, 0:32:45.600 --> 0:32:48.400 one of the key earnings or the key earning I 0:32:48.400 --> 0:32:52.200 would say each season. And obviously we have seen you know, 0:32:52.240 --> 0:32:55.320 the likes of soft Bank leeder Thals selling out entirely 0:32:55.360 --> 0:32:58.560 of then the video holdings. I do think there is 0:32:58.720 --> 0:33:01.080 that this is a litmus tech. You know, can the 0:33:01.160 --> 0:33:04.400 chip maker continue powering the AI rally that's really you know, 0:33:04.480 --> 0:33:09.040 defined the broader market tech tech rally this year. I 0:33:09.080 --> 0:33:11.560 think there are some reasons to be positive there. You know, 0:33:11.600 --> 0:33:15.680 we heard from CEO Huang in October that there's four 0:33:15.760 --> 0:33:18.560 hundred billion dollars worth of orders for chips that are 0:33:18.640 --> 0:33:20.840 very much at the heart of this AI boom, so 0:33:20.920 --> 0:33:24.360 that is a strong order book. But obviously, at the 0:33:24.440 --> 0:33:28.480 same time, we have seen really impressive rally in this 0:33:28.680 --> 0:33:32.880 share price, and we know that growth is strong but slowing. 0:33:33.800 --> 0:33:35.680 But I think broadly speaking, I think it will be 0:33:35.760 --> 0:33:38.360 fair to say that there is potential for that AI 0:33:38.480 --> 0:33:41.560 rally to still continue to run further. There are concerns 0:33:41.560 --> 0:33:45.600 obviously about that circular deals around one trillion circular deals 0:33:45.600 --> 0:33:47.760 that we've been seeing. I think that's what the market's 0:33:47.800 --> 0:33:50.720 nervous about. So, you know, any insight into that I 0:33:50.720 --> 0:33:51.680 think would be helpful. 0:33:52.520 --> 0:33:55.080 What about the concentration that comes with n Video. I 0:33:55.080 --> 0:33:57.520 think it was last earnings report about thirty nine percent 0:33:57.560 --> 0:34:00.240 of orders are coming from just two key hyperscalers. Is 0:34:00.240 --> 0:34:02.200 that something that people are worrying about, not only the 0:34:02.200 --> 0:34:05.040 secularity of deals, but the over reliance I'm just say 0:34:05.040 --> 0:34:05.760 a few players. 0:34:07.200 --> 0:34:09.719 Yeah, I think that is going to be again, you know, 0:34:09.840 --> 0:34:13.200 remaining a point of concern. As you mentioned, if you've 0:34:13.239 --> 0:34:16.640 got sort of you know, fewer customers or fewer big clients, 0:34:16.760 --> 0:34:20.040 then obviously there is a risk that is attached to that. 0:34:20.280 --> 0:34:22.879 So you know, any broadening out of that is going 0:34:22.920 --> 0:34:25.240 to be good news as far as the stock is concerned. 0:34:25.400 --> 0:34:27.960 And obviously, you know, we are saying that the market 0:34:28.160 --> 0:34:30.160 is nervous, and I think we do see this every 0:34:30.160 --> 0:34:33.920 time we come to Nvidia earnings in recent quarters, that 0:34:33.960 --> 0:34:37.480 there is a little bit of nervousness surrounding the numbers. 0:34:37.560 --> 0:34:39.479 And I think that does come with reason. You can't 0:34:39.520 --> 0:34:43.319 just jump blindly into a trade, but I think there 0:34:43.400 --> 0:34:44.720 is still reason to be positive. 0:34:45.239 --> 0:34:49.360 Can you balance, therefore, just the level of rationality in 0:34:49.400 --> 0:34:52.440 the market right now, and whether you give credence to 0:34:52.480 --> 0:34:54.920 the worries over a bubble or whether actually this is 0:34:55.080 --> 0:34:59.680 just how growth is likely to continue. Yeah, do you know. 0:34:59.760 --> 0:35:01.759 I mean, as you point out, there have been so 0:35:01.920 --> 0:35:07.680 many discussions surrounding are we in bubble territory comparisons. 0:35:06.840 --> 0:35:08.200 To the dot com era? 0:35:08.920 --> 0:35:11.200 But you know, I think that the market is still 0:35:11.920 --> 0:35:16.920 acting rationally. It is still questioning whether you know, these 0:35:17.080 --> 0:35:21.839 are valuations which are acceptable. And I think that does 0:35:21.920 --> 0:35:25.200 point to a market which, as I said, is acting rationally, 0:35:25.239 --> 0:35:30.359 which does go against that bubble narrative. But I think, 0:35:30.400 --> 0:35:32.880 you know, we do need to be moving this forward 0:35:32.960 --> 0:35:36.200 as well and questioning, you know, how will this be monetized, 0:35:36.600 --> 0:35:38.880 will demand actually be met? You know, what are the 0:35:38.960 --> 0:35:42.640 strains that could appear? So I think that is the 0:35:42.680 --> 0:35:45.440 signs that the market is right asking the right questions. 0:35:45.520 --> 0:35:48.640 They're asking those questions around the equity side. What about 0:35:48.719 --> 0:35:51.160 the bond market offerings that we're seeing coming thick and fast. 0:35:51.200 --> 0:35:54.640 How much you're seeing just a desire to begain AAI 0:35:54.800 --> 0:35:57.160 exposure from names like an Amazon that hasn't sold dollar 0:35:57.200 --> 0:35:58.840 dormandy and debt in three years. 0:36:00.400 --> 0:36:02.600 Yeah, So this is really interesting and I think it 0:36:02.640 --> 0:36:03.560 does point to this. 0:36:03.480 --> 0:36:07.320 Sort of almost insatiable demand. 0:36:08.440 --> 0:36:10.400 I think that you know, there are reasons to be 0:36:10.840 --> 0:36:13.400 cautious and again, you know, going back to that idea 0:36:13.440 --> 0:36:17.319 of being making sure you question investments before jumping in 0:36:17.560 --> 0:36:19.719 is always a good idea. And I think, you know, 0:36:20.160 --> 0:36:24.160 creating these these the bond sort of aspect of this 0:36:24.239 --> 0:36:26.560 trade is quite an interesting take on it. 0:36:26.960 --> 0:36:33.200 And one that will be following closely any cause. On crypto, ah, do. 0:36:33.120 --> 0:36:35.680 You know, Crypto is a really interesting one at the moment. 0:36:35.719 --> 0:36:38.040 You know, I think we saw that rejection last week 0:36:38.080 --> 0:36:40.759 about one oh seven level, but I think you know 0:36:40.800 --> 0:36:44.120 the fact that we've taken out some really key technical levels. 0:36:44.160 --> 0:36:46.920 The fifty week SMA was one that I was watching 0:36:47.000 --> 0:36:53.200 very closely. We're seeing that that institutional demand has really faded. 0:36:53.320 --> 0:36:56.640 Long term sellers, long term holders are selling, So I 0:36:56.640 --> 0:36:59.160 think there's a lot of reason to be cautious. 0:37:00.080 --> 0:37:02.000 That said, you know, I think the levels. 0:37:01.680 --> 0:37:04.680 That we're holding around at the moment, that's ninety three thousand, 0:37:04.760 --> 0:37:06.799 I think as long as that holds, and there could 0:37:06.880 --> 0:37:12.400 be potential if we see institutional demand return for a 0:37:12.440 --> 0:37:14.439 move higher. But I think, you know, the market still 0:37:14.440 --> 0:37:17.919 feels a bit fragile after that massive liquidation of an 0:37:18.000 --> 0:37:22.480 in early October, which is causing that reason for caution we. 0:37:22.640 --> 0:37:25.240 Like you're talking technicals on simple moving averages. We appreciate 0:37:25.239 --> 0:37:27.959 it for Ona Sinkotta, as City and x stay well. 0:37:28.400 --> 0:37:31.160 Coming up, Ford strikes to deal with Amazon to sell 0:37:31.239 --> 0:37:33.560 used cars on the e commerce website. We'll talk about 0:37:33.560 --> 0:37:36.280 the reason and the impact on other online car dealers. 0:37:36.320 --> 0:37:38.120 That's next. This is a Bloomberg tech. 0:37:54.600 --> 0:37:57.480 Ford seaming up with Amazon to sell it's used vehicles 0:37:57.520 --> 0:38:00.319 directly through the e commerce trant, becoming the second major 0:38:00.360 --> 0:38:04.880 automator after Hyundai, to list cars on massive online retailer. 0:38:05.200 --> 0:38:08.200 Let's get more, Brie Exalter reporter Keith Norton. So, Hono 0:38:08.360 --> 0:38:11.360 went first. Now Ford is doing it? And am I 0:38:11.360 --> 0:38:13.640 going to Amazon dot com and finding my forward there 0:38:13.719 --> 0:38:15.319 or have they got other areas in which I'm gonna 0:38:15.320 --> 0:38:16.120 be able to navigate? 0:38:17.040 --> 0:38:19.960 Yeah? So I mean it's certified used vehicles from Ford. 0:38:20.040 --> 0:38:25.120 Initially Handai does new vehicles through Amazon, and yeah, it 0:38:25.200 --> 0:38:27.920 is your very familiar, you know, add to my cart 0:38:28.120 --> 0:38:31.680 kind of Amazon experience. You can do the financing, you 0:38:31.719 --> 0:38:34.960 can browse the site and pick your car, and then 0:38:35.000 --> 0:38:36.839 you pick it up from a dealer. You do the 0:38:36.840 --> 0:38:39.600 final paperwork at the dealer. You can do a test 0:38:39.640 --> 0:38:42.120 drive at the dealer if you'd like to as well. 0:38:42.160 --> 0:38:45.440 What's interesting is that it did have an impact on CarMax, 0:38:45.520 --> 0:38:48.360 on Kavana, on others that are selling used cars and 0:38:48.440 --> 0:38:50.600 used vehicles. How much of a significant player do you 0:38:50.640 --> 0:38:51.640 think Amazon could become? 0:38:52.800 --> 0:38:56.160 Yeah, I mean they are Amazon, right, so if they 0:38:56.200 --> 0:38:58.799 really get into this and that is their goal, they 0:38:58.800 --> 0:39:01.359 could become a very significan player. So you saw those 0:39:01.400 --> 0:39:05.400 two carbon or carmets dropped initially on the news, although 0:39:05.480 --> 0:39:08.239 carvan is back up again. So you know, I think 0:39:08.239 --> 0:39:12.440 it does stimulate interest in the category of online car buying, 0:39:13.000 --> 0:39:15.839 which a lot of consumers, you know, it sounds good 0:39:15.840 --> 0:39:18.600 to them because it reduces the hassle, reduces the time. 0:39:19.440 --> 0:39:22.600 It's the sort of no haggle, one price selling. A 0:39:22.640 --> 0:39:25.879 lot of people like that option as well. So it 0:39:25.960 --> 0:39:27.880 is something that has promised. 0:39:28.480 --> 0:39:30.880 What about new vehicles? Would they dip that toe. 0:39:30.640 --> 0:39:33.440 That Yeah, I mean that's kind of what Ford was 0:39:33.480 --> 0:39:35.080 telling me. You know, they're going to see how it 0:39:35.120 --> 0:39:39.440 goes with this certified used program. And you know, these 0:39:39.480 --> 0:39:43.920 are cars that receive multiplaying inspections. They have a manufacturer's 0:39:43.960 --> 0:39:47.440 warranty of up to a year and twelve thousand miles 0:39:47.480 --> 0:39:50.000 on some of them, so it is sort of new 0:39:50.040 --> 0:39:53.640 car light, if you will. So if that goes well, 0:39:54.320 --> 0:39:57.200 they may do as Hyundai is doing and sell new 0:39:57.239 --> 0:39:58.360 cars on the site as well. 0:39:58.640 --> 0:40:01.400 And mess Keith Norton is a great story. Thanks for sharing. 0:40:02.120 --> 0:40:04.400 It's a busy day for Amazon more broadly, as it 0:40:04.440 --> 0:40:07.640 announced its first dollar denominated bond sale in three years. 0:40:07.640 --> 0:40:09.919 It aims to raise twelve billion dollars a six part 0:40:09.960 --> 0:40:12.880 debt offering. The mex expense of Soaper is here to 0:40:12.920 --> 0:40:16.160 explain why Amazon might be tapping the debt market. Have 0:40:16.160 --> 0:40:17.600 a feeling of something about data. 0:40:17.360 --> 0:40:22.120 Centers, Yeah, exactly. They've been spending a lot on data 0:40:22.160 --> 0:40:25.640 centers and this is more more fuel for that. They're 0:40:25.640 --> 0:40:28.520 coming in a little lighter than some of their competitors 0:40:28.520 --> 0:40:30.160 in terms of the amount they're looking to raise a 0:40:30.239 --> 0:40:34.480 twelve billion. Others have raised thirty billion, twenty five billion 0:40:35.000 --> 0:40:37.560 when we look at like Oracle and Google and Meta. 0:40:37.920 --> 0:40:40.120 So they're coming in a little bit light. But that 0:40:40.200 --> 0:40:41.960 also might just be an indication that they have more 0:40:42.000 --> 0:40:45.400 cash flow available to keep these investments going on a 0:40:45.480 --> 0:40:47.440 running basis, and they're looking at one hundred and fifty 0:40:47.440 --> 0:40:50.239 billion in twenty twenty six. 0:40:50.480 --> 0:40:53.920 Onex wow, and twelve billion is but a bit of 0:40:53.960 --> 0:40:55.400 a drop in the ocean in that respect. 0:40:55.440 --> 0:40:57.439 But I can understand when you're able to sell forty 0:40:57.480 --> 0:40:59.040 a debt a just a percentage point. 0:40:58.800 --> 0:41:02.200 Over theoretical US Treasury is it looks like a relatively 0:41:02.280 --> 0:41:06.000 cheap way of financing some of these big names. But Spencer, 0:41:06.320 --> 0:41:08.640 where have we understood where the big expense is coming 0:41:08.680 --> 0:41:11.000 full from Amazon in terms of the data center one. 0:41:11.000 --> 0:41:11.800 Hundred and fifty billion. 0:41:11.880 --> 0:41:13.879 Is it going into the land, Is it going into 0:41:13.920 --> 0:41:16.160 the infrastructure? Is it going to building their own chips 0:41:16.200 --> 0:41:16.480 as well? 0:41:16.520 --> 0:41:17.080 But a bit more. 0:41:17.880 --> 0:41:20.200 Yeah, it's going into all of the above, and they 0:41:20.239 --> 0:41:25.319 can't build them fast enough. And a big consideration is 0:41:25.360 --> 0:41:28.160 still power, you know, is still once they build these 0:41:28.160 --> 0:41:31.319 facilities where they have the you know, sufficient energy to 0:41:31.400 --> 0:41:35.239 power them. So yes, it's it is a race, and 0:41:35.280 --> 0:41:36.480 they just want to make sure that they have the 0:41:36.520 --> 0:41:40.360 capital available that take care take advantage of any opportunities 0:41:41.400 --> 0:41:42.399 as they come. 0:41:42.680 --> 0:41:44.680 It feels hard, I'm sure for those that have recently 0:41:44.680 --> 0:41:46.880 been said that they're being like go from the company though. 0:41:48.480 --> 0:41:52.520 Just yeah, of course, you know, Amazon recently laid off 0:41:54.320 --> 0:42:00.120 you know, more than ten thousand workers, and yes, but 0:42:00.160 --> 0:42:02.799 you're just going to see them constantly recalibrating. It's such 0:42:02.800 --> 0:42:06.960 a vast business and they have so many you know, 0:42:07.080 --> 0:42:09.919 operating lines that some are getting more efficient because of AI, 0:42:09.960 --> 0:42:11.800 and they're letting people go, but then they're going to 0:42:11.920 --> 0:42:15.160 keep investing in hiring in the artificial intelligence race to 0:42:15.160 --> 0:42:17.920 make sure that that they're keeping up with their peers. 0:42:18.120 --> 0:42:20.319 And briefly talking of AI race, it looks as though 0:42:20.719 --> 0:42:23.400 finally Jeff Bezos might becoming a CEO at least a 0:42:23.480 --> 0:42:27.120 co CEO again. Project Prometheus has been reported on the 0:42:27.120 --> 0:42:29.160 New York Times, So we could be launching a startup. 0:42:30.280 --> 0:42:33.120 Yeah, that's very interesting report, and it also just highlights 0:42:33.120 --> 0:42:38.799 how even Bezos has to diversify in the AI race, 0:42:38.880 --> 0:42:43.359 you know, because when these kind of technologies emerge, there's 0:42:43.400 --> 0:42:45.960 always a question of you know, you have these big 0:42:46.040 --> 0:42:48.279 established companies that can throw a lot of money at it, 0:42:48.600 --> 0:42:50.839 but they also have all of these encumbrances in terms 0:42:50.840 --> 0:42:54.799 of their existing operations and will that you know, is 0:42:54.800 --> 0:42:58.160 it better to have a pure place startup looking at 0:42:58.480 --> 0:43:03.840 artificial intelligence inclusively to plow ahead. And so it is 0:43:03.880 --> 0:43:07.480 interesting to see him going going solo with a new 0:43:07.560 --> 0:43:09.080 a new artificial intelligence startup. 0:43:09.120 --> 0:43:11.040 Yeah reports that it's going to have six billion dollars 0:43:11.080 --> 0:43:13.719 out the gates and it's AI for engineering and manufacturing 0:43:14.120 --> 0:43:17.840 of computers, automobiles, and spacecraft. We know we liked Blue Origin. Meanwhile, 0:43:17.840 --> 0:43:20.759 bluebgg Spencer Sofa, thanks so much for breaking it all down. 0:43:20.760 --> 0:43:22.319 Now that's it for this edition of Blomberg Tech. 0:43:22.360 --> 0:43:24.600 Do not forget to check out our podcast and on 0:43:24.640 --> 0:43:27.800 the terminal, as well as online on Apple, Spotify, an iHeart. 0:43:28.400 --> 0:43:29.680 This is Bloomberg Tech.