Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: From Mahard where Innovation, money and power.
Speaker 3: Collie in Silicon Valley, Nbon. This is Bloomberg Technology with
Speaker 3: Caroline Hyde and Ed Ludlow.
Speaker 4: And Carolin Hyde at Bloomberg's World headquarters in New York.
Speaker 5: I'med Ludlow in San Francisco. This is Bloomberg Technology coming up.
Speaker 4: Full coverage of Video's annual GPU Technology Conference. Hoss Jensen
Speaker 4: Wang on Veil's it's most powerful chip architecture yet, Why
Speaker 4: Blackwell will be key for the future of.
Speaker 5: AI plus as TikTok faces a potential ban or divest
Speaker 5: it show we'll get the outlook on what's to come
Speaker 5: next in the Senate with US Senator Bill hag from Tennessee, and.
Speaker 4: We'll sit down with the CEO of the fastest growing
Speaker 4: cybersecurity company that's Whiz to Talk M and a valuation
Speaker 4: so much more.
Speaker 5: Video CEO Jensen Huang name checked these names on stage
Speaker 5: at GtC on Monday night, either their customers or he
Speaker 5: was praising of where they sit in the AI infrastructure
Speaker 5: build out that we're seeing around the world in the
Speaker 5: context of data centers. Dell, one of those key names
Speaker 5: moving through the upside.
Speaker 4: Caroline kingmaker of other stocks, perhaps not his own on
Speaker 4: the day in Video's Blackwell though ed the processor is
Speaker 4: the showcase of the chip company's GtC conference, and look
Speaker 4: it stends in video's dominance, it feels like of artificial
Speaker 4: intelligence computing.
Speaker 6: This is Harper.
Speaker 3: Harper changed the world.
Speaker 4: This is Blackwell, named after the mathematician and game theorist
Speaker 4: David Backwell. This new platform is multiple times superior at
Speaker 4: AI models and inference that its predecessor Hopper. As we
Speaker 4: can see, he's just lining them up next to each
Speaker 4: other moment. Let's break it all down the Antoine Skyman,
Speaker 4: his technology infrastructure analyst at News Street Research who covers
Speaker 4: in video and AI, and the dominance has been clear
Speaker 4: when you're looking at a market capitalization, when you're thinking
Speaker 4: the trillion dollars added in marketcap this year alone, did
Speaker 4: it live up to the third most well valuable company
Speaker 4: in the world.
Speaker 7: Yes, thanks, thanks Caroline. I'd say our main takeaways from
Speaker 7: Jensen's keynotes yesterday is that the competitiveness of Nvidia's product
Speaker 7: is only getting stronger. Blackwell, the new platform that the
Speaker 7: company announced offers up to four times higher training performance
Speaker 7: and thirty times higher inference performance than its predecessor Hopper.
Speaker 7: And so next time you hear someone announce it cheap
Speaker 7: that's ten times faster than NVDR, remember that a year
Speaker 7: later and Vidia will also have acheap ten times faster.
Speaker 7: So alternatives to Nvidia can have an advantage that lasts
Speaker 7: at best one generation, and a year later that advantage
Speaker 7: goes away. And last, but not least, remember that this
Speaker 7: advantage often comes at the cost first giving up on
Speaker 7: the flexibility that GPU's offer, and second the cost of
Speaker 7: not being able to leverage Nvidia's ecosystem.
Speaker 6: So I would say that yes, it leaves up antoine.
Speaker 5: There was a lot more emphasis from Jensen on inference
Speaker 5: than there has been historically. Right, The story was around
Speaker 5: the row h one hundred played in training large language
Speaker 5: models with many tens or hundreds of billions of parameters.
Speaker 6: Are you convinced.
Speaker 5: That if we're in a world where we move from
Speaker 5: more training to more inference, Nvidia continues to lead in
Speaker 5: that side of the market as well.
Speaker 7: Yes, I think so, and I think Jensen clearly illustrated
Speaker 7: that very well. Inference is a very complex problem that
Speaker 7: involves very complex optimization where you have to paralyze a
Speaker 7: workload across dozens of GPUs, And I think what Jensen
Speaker 7: showed yesterday is that Nvidia's mode is really about being
Speaker 7: able to optimize these GPUs to solve that complex inference
Speaker 7: problem very efficiently. This thirty times better than Hopper clearly
Speaker 7: illustrates that Nvida is very, very much delivering on that front.
Speaker 5: What were you most excited about from Jensen? Right he's
Speaker 5: like being compared to Steve Jobs. He is the man
Speaker 5: of the moment. He wears his leather jacket. You convinced
Speaker 5: by all the things that he says about the future
Speaker 5: when he's on stage.
Speaker 7: I think I was most excited about innovation beyond just GPUs.
Speaker 7: If you look at the fact that Nvidia also announced
Speaker 7: material improvements for secondary chips like the Gray CPU, the DPU,
Speaker 7: various networking chips, we actually can conclude that only half
Speaker 7: the performance improvement is coming from the GPU, and the
Speaker 7: other half is actually coming from the rest of the
Speaker 7: hardware stack and system level integration. So bottom line is
Speaker 7: that Nvidia's mode is not just about designing great GPUs,
Speaker 7: It's about designing great systems optimized to unleash fully the
Speaker 7: capabilities of those GPUs, and I think that's really what
Speaker 7: I was excited about when I looked at the keynote yesterday,
Speaker 7: and it's.
Speaker 4: Clearly perhaps so I was saying some impact on rival
Speaker 4: chip companies. I mean MDS, I think, one of the
Speaker 4: worst performers on the day. Does this mean that they've
Speaker 4: got it all locked up? Or is with the new
Speaker 4: paradigm shift to inference and the fact some of these
Speaker 4: hyperscalers themselves want to be making their own chips, does
Speaker 4: that long term provide some sort of competitive issue.
Speaker 7: Well, I think that Nvida's competition will thrive as well
Speaker 7: because demand is so strong at the moment, so everybody
Speaker 7: will continue to buy as much as they can at
Speaker 7: least until the end of next year. And that doesn't
Speaker 7: mean that they will challenge the dominus of Nvidia, but
Speaker 7: that will make room for alternatives. So at this point
Speaker 7: in time, we actually see upside in both Nvidia and AMD.
Speaker 7: But the uncertainty that there is beyond twenty twenty five
Speaker 7: means that the risk reward ratio is getting thinner and
Speaker 7: thinner as those doocks keep having a run. What happens
Speaker 7: beyond twenty twenty five? I think nobody knows. It will
Speaker 7: depend on the performance of next generation larger models as
Speaker 7: well as adoption and monetization of AI. But I would
Speaker 7: say that there is room for challengers like AMD to
Speaker 7: also gain a lot of share in that market, probably
Speaker 7: in the ten to twenty percent region is something we
Speaker 7: would see as reasonable.
Speaker 4: I want to just dwell on the supply side issues
Speaker 4: a little bit, because packaging is something that's beening highlighted
Speaker 4: time and time again. Are we ultimately going to see
Speaker 4: an issue never with demand that feels like just how
Speaker 4: much can be made, how quickly it can be made,
Speaker 4: and how and who buy?
Speaker 7: So I think demand is really, you know, something that
Speaker 7: will have to look at, will have to look at
Speaker 7: many many dimensions. We are on the lookout, you know,
Speaker 7: observing the industry on or fronts, and so will definitely
Speaker 7: keep you posted. I don't think at this stage anyone
Speaker 7: can determine what's going to happen beyond twenty twenty five.
Speaker 7: Between now and twenty twenty five, though we have very
Speaker 7: strong visibility. All data points suggest that Nvidia is going
Speaker 7: to do very well, AM is going to do very well,
Speaker 7: Broadcom is going to do very well. We see the
Speaker 7: industry shaping up, you know, supply coast capacity, for instance,
Speaker 7: doubling again this year. I think all the data points
Speaker 7: suggest that everything is going to remain strong until twenty
Speaker 7: twenty five, but there is no way to determine what
Speaker 7: happens beyond twenty twenty five. Yet, we'll have to monitor
Speaker 7: leading indicators on that front, as I mentioned earlier, like
Speaker 7: adoption then monetization of the I.
Speaker 5: Love Caroline's question because Blackwell has two hundred and eight
Speaker 5: billion transistors in the tensercre right, it's so many transistors,
Speaker 5: it's actually two chips in a multi die format TSMC
Speaker 5: is going to be the manufacturer making them four MP technique.
Speaker 5: Just something you said, Antoine. I think the forecast in
Speaker 5: fiscal twenty five is one hundred and ten billion dollars
Speaker 5: of revenue, up from sixty one in fiscal twenty four.
Speaker 6: Do you have a good.
Speaker 5: Sense of how quickly Blackwell will be revenue generating? I
Speaker 5: think they said it will be launching later this year
Speaker 5: calendar year.
Speaker 3: Yes.
Speaker 7: I mean when you look at Nvidia's prior cycles, for instance,
Speaker 7: Hopper that launched in late twenty twenty two represented maybe
Speaker 7: meet single digits of sales and mostly in the fourth quarter,
Speaker 7: and that quickly remped in twenty twenty three, maybe to
Speaker 7: about half of sales, and so we expect it's probably
Speaker 7: a similar trajectory to play out for black Will.
Speaker 5: All right, Newstreet Research and they center on scriber and
Speaker 5: great to have you on the program, reacting to the
Speaker 5: event of the year. Probably so fun are coming up.
Speaker 5: We're going to bring you the latest on the other
Speaker 5: big story, the TikTok divest or Bambil and why tech
Speaker 5: critics are saying Congress needs to think a lot bigger.
Speaker 5: That conversation's next, Caroline, another chip mover.
Speaker 4: Yeah, and let's go back to the AI hype because well,
Speaker 4: we're seeing supply coming into action for super micro computer.
Speaker 8: We're down my number cent. Why because they're often just sell.
Speaker 4: More shares, two million more shares in a public offering
Speaker 4: that could raise as much as two billion dollars. Remember
Speaker 4: this computer server maker, it's been on an absolute taired
Speaker 4: a thousand percent gain amid this way AI enthusiasm.
Speaker 8: Over the last twelve months.
Speaker 4: It's going to be giving up a little bit as
Speaker 4: we see them sell more shares.
Speaker 8: There's a Blomgechnology.
Speaker 4: Senior officials from the Justice Department and other agencies. Now
Speaker 4: they're going to be holding closed door briefings in the
Speaker 4: Senate this week to advance legislation that would allow TikTok
Speaker 4: to continue its US operations are being severed from its
Speaker 4: Chinese owner. Now this is all his breathings are likely
Speaker 4: to be held today and tomorrow. We understand this is
Speaker 4: an ongoing lobbying battle, isn't it over the dovest or
Speaker 4: band TikTok bill? And it moves to the Senate after
Speaker 4: what was a very quick passage in the House last week.
Speaker 4: I just sat down with Republican Senator Bill Haggerty at
Speaker 4: Tennessee to get his thoughts on the legislation earlier today.
Speaker 8: Just take a listen.
Speaker 9: Well, it's hard to say what's going to happen in
Speaker 9: the Senate because Chuck Schumer controls the pace of play
Speaker 9: in the Senate, and it's got to move through the
Speaker 9: Commerce Committee in that gavel's controlled by Maria Campwell, So
Speaker 9: I'm not certain what the pace will be, but I
Speaker 9: can tell you what the concerns are regarding the bill.
Speaker 9: I think the bill is trying to address a very
Speaker 9: real concern that has to do with the national Security
Speaker 9: laws of China, and any company that is Chinese owned
Speaker 9: is subject to their data being surveilled by the Chinese
Speaker 9: Commonist Party.
Speaker 3: There are no exceptions to that rule.
Speaker 9: And that's data collected wherever it may be collected around
Speaker 9: the world, including in America.
Speaker 3: The concern that this bill is trying.
Speaker 9: To get at is the concern about the privacy of
Speaker 9: Americans data and a desire not to allow that data
Speaker 9: to be surveilled by the Chinese Commonist Party. That's a
Speaker 9: very real concern. There's also another concern that's being very
Speaker 9: clearly articulated as well. The last thing that we want
Speaker 9: to see happen is more power shift to the hands
Speaker 9: of companies like Meta that have demonstrated a willingness to
Speaker 9: censor American voices, particularly conservative American voices. So I think
Speaker 9: what we're talking about here is who owns TikTok at
Speaker 9: the end of the day, and whether a divestiture.
Speaker 3: Can be achieved.
Speaker 4: So you'd want TikTok to remain as a competitive here
Speaker 4: in the United States, just under different ownership.
Speaker 9: And I think that is exactly what the bill contemplates.
Speaker 9: We'll see again what the final product looks like as
Speaker 9: it moves to the centate. But that's what I would
Speaker 9: expect to see.
Speaker 4: There has been some heavy lobbying, shall we say, coming
Speaker 4: from TikTok on the Hill. And it was notable that
Speaker 4: almost the person who first got the ball rolling on
Speaker 4: analyzing the ownership of TikTok and indeed its persistence here in.
Speaker 8: The US was former President Trump. And then he changed
Speaker 8: his opinion.
Speaker 4: He went more on the concern around Meta.
Speaker 8: Do you think that was to do with lobbying. What
Speaker 8: do you think changed his mind?
Speaker 9: I really doubt it has anything to do with lobbying.
Speaker 9: I think it probably has a lot more to do
Speaker 9: with what we saw come out in the X files,
Speaker 9: in the Twitter tapes, and the degree of censorship that's
Speaker 9: taking place between the Biden administration and companies like Meta,
Speaker 9: and Meta's willingness to get involved in elections. I think
Speaker 9: everybody was deeply surprised and shocked with the suppression of
Speaker 9: the story about Hunter Biden that was suppressed from the
Speaker 9: New York Post. The degree by which this government, certainly
Speaker 9: this White House, has been quote flagging a post of
Speaker 9: concern to them, and that all feels like censorship to
Speaker 9: most Americans. I think that's the point. That's the concern
Speaker 9: that President Trump is highlighting.
Speaker 4: To go the other route, and many people feeling that
Speaker 4: what they don't want to see happen is a lack
Speaker 4: of freedom of speech, a lack of nobility to use
Speaker 4: this platform. So if it was to remain in the
Speaker 4: United States, who should own it?
Speaker 8: Who should be a buyer?
Speaker 9: Well, I've certainly preferred American to own it, And that's
Speaker 9: the needle I think this legislation is trying to thread
Speaker 9: right now.
Speaker 8: Should it be a social media company? Should it be
Speaker 8: individual investors?
Speaker 4: I know that your background is such, well, it's.
Speaker 9: Going to be a large price tag, I feel pretty certain.
Speaker 9: So it's hard to predict, and nor do I think
Speaker 9: legislation should dictate you know, who that buyer might ultimately be.
Speaker 3: But we'll see what happens.
Speaker 4: Should a ban or divestment on TikTok be significant to
Speaker 4: the US public.
Speaker 9: I think it would be quite significant because of the
Speaker 9: number of users. I think the count is one hundred
Speaker 9: and seventy million users of TikTok, so I think there's
Speaker 9: a great interest in what happens here, And again, the
Speaker 9: Congress is trying to thread the needle on balancing our
Speaker 9: security concerns and our concerns about data privacy with concerns
Speaker 9: of free speed.
Speaker 4: Have you received calls from people within your within Tennessee
Speaker 4: wanting to see that TikTok remains, not wanting to see
Speaker 4: it go.
Speaker 3: We've received calls on both sides.
Speaker 9: Ah, And so it's hard to say where the American
Speaker 9: public lies on this. I haven't seen polling on it,
Speaker 9: but again, I think the concerns are both very real. Again,
Speaker 9: the national security concern that our data would be exposed
Speaker 9: to surveill us by the Chinese Communist Party, even weaponization
Speaker 9: by the Chinese Communist Party. That's something Americans clearly don't want,
Speaker 9: That's what I'm hearing. But also a concern that we
Speaker 9: not put too much power in the hands of those
Speaker 9: large media companies that have shown their desire and their
Speaker 9: willingness to censor particularly conservative voices here in America. So
Speaker 9: threading Nick Needil is where this legislation needs to go.
Speaker 4: The Republican take from Senator Bill Haggerty of Tennessee giving
Speaker 4: his thoughts on a TikTok bill as it begins potentially
Speaker 4: to slowly move through the Senate, And well, let's just
Speaker 4: look at some of the overall concerns the opponents, the
Speaker 4: tech critics, the issue around Congress about thinking that it
Speaker 4: more broadly, should not just be a divestor ban legislation
Speaker 4: on TikTok, Perhaps borader privacy could tell well, privacy oversight
Speaker 4: coming to every single social media platform Alex brinkers here,
Speaker 4: and I think that was kind of what Bill Haggerty
Speaker 4: was trying to get at here. The Senator Alex was that, well,
Speaker 4: as many Republicans might try to articulate, they've been concerns
Speaker 4: with us a social media platforms in their voice within
Speaker 4: should there just be a broader privacy oversight here, a
Speaker 4: broader law rather than just targeting one individual company.
Speaker 2: That's what's been so interesting about this, Caroline, what Senator
Speaker 2: Hagerty kind of laid out to you that they're concerned
Speaker 2: about data privacy as the impetus for this bill. Some
Speaker 2: folks are looking at that saying we actually need to
Speaker 2: go bigger. This bill itself is not about data privacy
Speaker 2: in the language. It's about ownership and ownership by foreign
Speaker 2: adversaries like China. We talked to experts for a story
Speaker 2: coming out in this latest edition of BusinessWeek magazine, and
Speaker 2: they are saying, look, why don't we think bigger about
Speaker 2: this and not just focus on one company or one country,
Speaker 2: but actually set federal data privacy regulations in the US,
Speaker 2: which the US doesn't have. I trieded to folks at EPIC,
Speaker 2: like Kellie Schroeder, who's their general counsel.
Speaker 8: Epics an organization who has been.
Speaker 2: Lobbying for a broader privacy regulation for a while, and
Speaker 2: she had a really great comparison. She basically said, look,
Speaker 2: if the Internet is a calender, then plugging plugging one
Speaker 2: hole is the equivalent of this TikTok bill. It's one
Speaker 2: small hole in the data ecosystem and American's data is
Speaker 2: slipping out elsewhere. So why don't we address this on
Speaker 2: a broader scale.
Speaker 5: Alex, I think it's important to go back to what
Speaker 5: you and I reported last week and basically point out
Speaker 5: TikTok is not promising to divest at all.
Speaker 6: The opposite. They're kind of digging in and saying.
Speaker 5: We've put forward a user data solution that we're going
Speaker 5: to stick with. And listening to Caroline's interview just then
Speaker 5: there seems to be the political group that say this
Speaker 5: is just about TikTok, ownership of TikTok, And then there's
Speaker 5: the group that says this is much bigger. It's about
Speaker 5: censorship via social media platforms and a blanket control by government.
Speaker 5: Which voice is loudest right now.
Speaker 8: It's a mix of both.
Speaker 2: And to take you a little bit behind the scenes
Speaker 2: with our reporting over the last forty eight hours, we
Speaker 2: know that the Department of Justice is briefing senators this
Speaker 2: week encouraging them to vote for this bill, and also
Speaker 2: TikTok is passing out a one pager that I was
Speaker 2: able to review batting down some of those concerns on
Speaker 2: data privacy. In particular, the DOJ is pointing out that
Speaker 2: TikTok collects names, addresses, phone numbers, and TikTok.
Speaker 8: Is saying, look, that's the same kind of.
Speaker 2: Information that any other social media company, particularly the ones
Speaker 2: that might be lobbying them, like Meta and X and
Speaker 2: the like those other rivals, collect the same amount of data.
Speaker 2: And when I rewind and think about the social media industry,
Speaker 2: it is not lacking for infractions when it comes to
Speaker 2: user data getting out. What has been lacking though, is
Speaker 2: actual life. We've seen the CEOs of these companies come
Speaker 2: through for hearing after hearing. Think about Meta CEO Mark Zuckerberg,
Speaker 2: how many times he's arrived on the Hill to talk
Speaker 2: about this stuff. But we have yet to see any
Speaker 2: kind of data privacy regulation. And that's why folks like
Speaker 2: Democrat Mark pocon or Elizabeth Warren have in the past
Speaker 2: few days said, Look, we like some of the ideas
Speaker 2: behind this bill. We think we need to be protecting
Speaker 2: American user's data, but let's set up an actual framework
Speaker 2: that does that holistically and doesn't just target one company
Speaker 2: in a bill that the language of it could actually
Speaker 2: be deemed illegal, as TikTok will probably take this to
Speaker 2: a legal fight if this passes.
Speaker 5: I always think it's worth saying out loud it is
Speaker 5: a divest or ban bill, not a big picture, sweeping
Speaker 5: piece of social media regulation. Bluebags Alex Brinka terrific reporting
Speaker 5: social platform Reddit gearing up for its IPO this week,
Speaker 5: or what we can expect from the listening. Let's bring
Speaker 5: in Bloomberg Managing editor Linn Down and lynn Is this week.
Speaker 6: We've been wasting years. What's on your desk this week
Speaker 6: and what are you looking for?
Speaker 10: I mean, I'll give you an idea of what we
Speaker 10: are expecting here on the news side, A lot of
Speaker 10: details dropped earlier this week. We know that Reddit and
Speaker 10: some of its existing stakeholders are planning on selling a
Speaker 10: total of twenty two million shares. Of that total, fifteen
Speaker 10: million shares are expected to be sold by the company itself,
Speaker 10: and they see them going for as much as thirty
Speaker 10: four dollars each. At the top range of that that
Speaker 10: it could end up with the market value of five
Speaker 10: point four billion dollars, making it what I think would
Speaker 10: be the biggest IPO so far this year. But you
Speaker 10: never know what's going to happen with these things. And
Speaker 10: we're told the IPO will price tomorrow and start trading
Speaker 10: the day after, So that'll be the big moment of truth.
Speaker 8: Yeah, I mean moment of truth.
Speaker 4: Also in the final innings in comes Nokia with some
Speaker 4: legal patent issues.
Speaker 10: Yeah, I mean that surprised us all a little bit
Speaker 10: to see that come. Then again, I was I was
Speaker 10: talking to a colleague about it earlier this morning, and uh,
Speaker 10: and I thought, gosh, all these headlines are hitting so
Speaker 10: close to the IPO. But at the same time we
Speaker 10: were thinking, oh, yeah, but this is also the moment
Speaker 10: when companies tend to, you know, drag all the skeletons
Speaker 10: out of the closet and disclose everything upfront and say,
Speaker 10: you know, you need to know what you're what you're
Speaker 10: in store for if you decide to invest in our company.
Speaker 10: I mean, in my mind, that pat an infringement complaint
Speaker 10: from Nokia is something to watch. It's definitely worth watching.
Speaker 10: I don't think the company would have disclosed it if
Speaker 10: it wasn't material. And that being said, I think.
Speaker 11: Also, Linda, and sorry to cut you off, welcome back
Speaker 11: to Bloomberg Technology.
Speaker 6: Ed Ludlow here in San Francisco, have your.
Speaker 4: Backhead, I'm Caroline hyding your Let's have a quick check
Speaker 4: on these markets, shall we, Because look, we've actually been
Speaker 4: selling off ahead of the Federal Reserve meeting and announcement tomorrow.
Speaker 4: But as that one hundred currently off by six ten percent,
Speaker 4: so big tech kind of pressure is we basically take
Speaker 4: some profits. This is a crowded trade according to Bank
Speaker 4: of America, when the most crowded trade.
Speaker 8: Is the Magnificent seven.
Speaker 4: And of course after in videos all important tech event
Speaker 4: is upon us, the woodstock of developers' conferences. Maybe there's
Speaker 4: just a little bit of chips off the table. The
Speaker 4: dollar still strengthening its particularly the Japanese yen. Is they
Speaker 4: end their policy of negative interest rates rather more than
Speaker 4: a percentage point, and of course we still anticipate where
Speaker 4: the feder Reserve will go in terms of their own
Speaker 4: rate hikes or cuts.
Speaker 8: Later in the year.
Speaker 4: Bitcoin currently off by almost seven percent, let's call it.
Speaker 4: Certainly seeing some concerns about the infros into the ETFs
Speaker 4: at the moment. Now, I want to shine a light
Speaker 4: on what's happening over at Tencent because they got their
Speaker 4: numbers coming out Wednesday, still off by one point four percent.
Speaker 4: Interesting US China tension still bubbling over with TikTok, but
Speaker 4: Tencent actually could show us some margin improvement, even if
Speaker 4: we don't see revenue improvement. Keep an eye on that
Speaker 4: key name traded here in the US, of course, it's
Speaker 4: usdr's there at the moment, Cadence Design at one point percent.
Speaker 4: Want to shine a light on some of the companies
Speaker 4: that perhaps as in Video doesn't rally, we do see
Speaker 4: some other companies being singled out as using Video's Blackwell
Speaker 4: going Forward and Sis Cadence Design Synopsis among them. So
Speaker 4: AMD though on the downside some percent as look that
Speaker 4: competition it's getting so tough as in video just shows
Speaker 4: its dominance within the world of training and inference.
Speaker 8: But Ed, I want to get.
Speaker 4: Your take on the dominance and what really Blackwell, the
Speaker 4: the whole scope of offerings that was being articulated by
Speaker 4: Chensen Wan.
Speaker 8: What did you make of it?
Speaker 5: Well, it's just a numbers game. That it's a different technology, right,
Speaker 5: So when we talk about the GB two hundred, it
Speaker 5: is actually two GPUs combined with one CPU, two Blackwell GPUs,
Speaker 5: one Great Shoppers CPU. But those numbers on the screen
Speaker 5: tell the story that they've just upped the performance levels
Speaker 5: and in aggregate, as we scale more data center infrastructure,
Speaker 5: the bottom points really important that it's just much more
Speaker 5: energy efficient. When you put the Blackwell into a cluster,
Speaker 5: you get twenty five times power efficiency, which you know
Speaker 5: in the context of the environment and climate's important as well.
Speaker 4: And when we think about the Hopper offering, and indeed
Speaker 4: the AGE one hundred is what thirty forty thousand per
Speaker 4: one And when you're thinking of the amount that each
Speaker 4: hyperscale is having to invest in the numbers rack up.
Speaker 4: We haven't got any sort of price point for Blackwell,
Speaker 4: But ultimately, when you're thinking of the power offset you
Speaker 4: can get, it just shows the amount that power is
Speaker 4: going to be costing for these data centers.
Speaker 5: Yeah, because it's just it's easy for Gensen one to
Speaker 5: hold up two GPUs or tenacles in his hands. The
Speaker 5: reality is that Blackwell will ship as a rack or
Speaker 5: server design and go into banks of racks in a
Speaker 5: data center. The scale is just enormous and the power
Speaker 5: consumption relates to that. We're talking about hundreds of square
Speaker 5: miles of space with many hundreds, if not thousand, of
Speaker 5: these black wid gps going into what in vehicles a
Speaker 5: supercomputer is basically a server farm.
Speaker 8: It's all about the terminology.
Speaker 4: And I have to say I loved reading your Tech
Speaker 4: Daily newsletter yesterday because you really made it so straightforward
Speaker 4: for us AID. Meanwhile, let's stick with how straightforward ai
Speaker 4: OR isn't right now, particularly for the IT leaders, and
Speaker 4: we really got to also think about more broadly where
Speaker 4: it's being applied.
Speaker 8: In cross industry groups.
Speaker 4: It's front and center in fact, in terms of the
Speaker 4: conversation that was being had this morning on Bluemke surveillance.
Speaker 8: They were live from Bank of America Training floor.
Speaker 12: Take a listen the way we're looking at how AI
Speaker 12: changes virtually everything we do.
Speaker 13: We never would have been able to do these indicators
Speaker 13: five ten years ago. We didn't have the capability of
Speaker 13: aggregating all this data together.
Speaker 12: Now that you have access that only data scientists and
Speaker 12: quantities to have, you actually can use intelligence straight from
Speaker 12: your smartphone, leveraging all of those ways.
Speaker 13: We're looking at sixty nine million in accounts. That's a
Speaker 13: lot of data that's not sending somebody a survey in
Speaker 13: the mail and getting them to respond, real time data
Speaker 13: on sixty nine million accounts, and I think this is
Speaker 13: a wonderful thing about AI.
Speaker 12: That's what you're seeing right now. You're seeing the chips,
Speaker 12: the servers, Those are being bought and those are being deployed.
Speaker 14: I think euphoria is really driven by themes at this point.
Speaker 1: So it's AI.
Speaker 15: Everybody owns the AI plays.
Speaker 4: Oh, everyone's talking about it, and a few people are
Speaker 4: worrying about how much they call it up their sophistication
Speaker 4: and understanding of it, particularly it leaders. Right now, let's
Speaker 4: dig into how AI is changing every industry, every business.
Speaker 4: With Page Costello, head of AI at asana. It's an
Speaker 4: enterprise work management platform, and you just put out a
Speaker 4: state of IT report, really which I'm sure you're going
Speaker 4: to a few optimistic but also slightly fretful IT leaders
Speaker 4: across every industry group thinking how am I suddenly THEAI leader.
Speaker 8: An expert and how do I deploy this?
Speaker 1: Yes, absolutely, seventy seven percent of CIOs and IT leaders
Speaker 1: believe that they are personally responsible for the intelligent transformation
Speaker 1: and that that is a high bar and it's creating
Speaker 1: a lot of stress and pressure for IT leaders.
Speaker 5: Page on stage, Jensen Juang last night talked about this
Speaker 5: new age of computing and when we talk about computer,
Speaker 5: you know, I grew up with a Dell desktop with
Speaker 5: a keyboard.
Speaker 6: I think we're talking about something completely different.
Speaker 5: Do you think that your customers and everyone that you
Speaker 5: work with kind of watches that in video keynote and thinks,
Speaker 5: my goodness, I need to start hiring people that know
Speaker 5: what he's talking about so that we know what we're
Speaker 5: talking about.
Speaker 1: Yes, I do think with this big change in work,
Speaker 1: people are going to be hiring for new roles and
Speaker 1: the existing teammates are trying to figure out how do
Speaker 1: I use AI to be a more effective player. And
Speaker 1: so one of the most wonderful things that we were
Speaker 1: observing is the excitement anticipation for what AI can do,
Speaker 1: but also some level of fear because there's real curiosity
Speaker 1: of can we add one more thing here? Can we
Speaker 1: actually ask and make demands of our teams to use
Speaker 1: yet another app? And so that's one of the contentious
Speaker 1: zones right now is AI isn't always built in and
Speaker 1: ready to use.
Speaker 5: Are the people available that they are needed?
Speaker 6: Yeah?
Speaker 1: What I think is most amazing is that it's not necessarily.
Speaker 8: Actually about the people.
Speaker 1: What's most important is the technology supports the people in
Speaker 1: what they're trying to achieve. So I work at Saana
Speaker 1: as an enterprise work management platform that serves eighty percent
Speaker 1: of the Fortune one hundred, helping them drive clarity and
Speaker 1: accountability a scale. And what's quite compelling is actually putting
Speaker 1: AI in the hands of the team and in the
Speaker 1: hands of executives to answer really normal questions like what's
Speaker 1: the progress of our strategic initiatives? How do I break
Speaker 1: this work down and reason about it so we can
Speaker 1: actually get it done, And how do we connect workflows
Speaker 1: across us our work data to make decisions about what
Speaker 1: to do next and how to stay agile in this
Speaker 1: competitive environment.
Speaker 4: Are some of the IT executives and others in leadership
Speaker 4: you're talking to, they're having to be too agile right now.
Speaker 1: Yeah, Actually, one in four IT leaders says they moved
Speaker 1: a little too fast on AI and they're fretful about
Speaker 1: making technology selections.
Speaker 4: Okay, so let's use best in practice. I'm an IT
Speaker 4: leader at healthcare company. How do I ensure that I've
Speaker 4: got everyone underneath me singing from the same hymn sheet
Speaker 4: wanting to do the same thing with the AI tools
Speaker 4: that I'm thinking of deploying. How are you seeing that
Speaker 4: being enacted at the moment?
Speaker 15: Yeah.
Speaker 1: I think the biggest thing is data connectivity and the
Speaker 1: access to the data, because AI is only as good
Speaker 1: as the data you feed it. Right now, many AI
Speaker 1: solutions are effectively islands that require entrepreneurial employees to figure
Speaker 1: out how to use them and how to apply and
Speaker 1: create value or their team and for their company. There's
Speaker 1: no top level connectivity around strategy and what's important to
Speaker 1: the organization, and so that's where the gap is. You
Speaker 1: can't sing from the same song sheet if you don't
Speaker 1: know what the plan is and how to execute it.
Speaker 1: And AI needs that knowledge too. AI needs to know
Speaker 1: how do you want to get work done? And that's
Speaker 1: where quite a bit of the gap is. So what
Speaker 1: I would say is for CIOs and strategical leaders, and
Speaker 1: in the example you gave, it's first about data and
Speaker 1: connectivity and then it's about safe and secure rollout. That's
Speaker 1: mindful and cognizant of your goals as an organization.
Speaker 5: Asanahead of AI, Page Castilla, Great to have you on
Speaker 5: the program.
Speaker 6: Thank you.
Speaker 5: Another story that we're watching, chip Make is a racing
Speaker 5: to feed the growing global AI boom, and Samsung is
Speaker 5: laying down the gauntlet with a new research lab dedicated
Speaker 5: to designing an entirely new type of semiconductor which is
Speaker 5: needed for artificial general intelligence intelligence or AGI. It's a
Speaker 5: long standing aspiration in AI development. The company's trying to
Speaker 5: catch up with s k Heine after the smaller competitor
Speaker 5: got a head start in a new type of advanced
Speaker 5: memory semiconductor tailored for the use with invidious chips, carrot.
Speaker 4: In videos, chips everywhere in our conversation today. Meanwhile, well,
Speaker 4: let's go from AI to cyber and let's face it,
Speaker 4: cybers being focused on in AI as well. We sit
Speaker 4: down and the see of fast growing cybersecurity startup Whiz
Speaker 4: to discuss everything.
Speaker 8: M and A to the cloud, I suff wrapperports with us.
Speaker 4: This is Blue meg Technology.
Speaker 8: Time for VC Spotlight.
Speaker 4: We've got a shiner light on the fast growing cybersecurity startup.
Speaker 4: Whiz has already raised more than nine hundred million dollars
Speaker 4: from investors and is now said to be making well
Speaker 4: small acquisitions in the space potentially. We of course known
Speaker 4: that it's been buying gem Security for three and fifty
Speaker 4: million dollars. Joining us now to discuss the state of cybersecurity,
Speaker 4: the company's rapid growth. We CEO asav Rappaport and it's
Speaker 4: been what feels like a wellwind to everyone else. For you,
Speaker 4: a grind of someone who is a serial entrepreneur who
Speaker 4: has seen companies bought got inside Microsoft, come outside of Microsoft,
Speaker 4: building a Microsoft competitor.
Speaker 8: How do you.
Speaker 4: Show what has made with so successful since you launched
Speaker 4: in COVID.
Speaker 14: So but basically again, we have a journey ahead of
Speaker 14: us to be truly successful looking towards an IPO billion
Speaker 14: dollar in revenues.
Speaker 15: So it's just the beginning for US.
Speaker 14: I think said that you talked about the tailwind, and
Speaker 14: I think that the cyber market is definitely exploding. When
Speaker 14: we're looking at the global markets, we're saying that, you know,
Speaker 14: this is like the ultimate electioneer. Fifty percent of the
Speaker 14: population of the of the world is going to election. Definitely,
Speaker 14: here in the US, the gaol to political crisis that
Speaker 14: we're saying are rising, AI introduces a new attack surface,
Speaker 14: but both like cyber criminals are averaging that all of
Speaker 14: that pushes for more and more, you know, need for
Speaker 14: cybersecurity tools. Definitely, we look at twenty twenty three. Unfortunately,
Speaker 14: twenty twenty three we had like more than thirty two
Speaker 14: hundred reported data breaches in the world. This is the
Speaker 14: peak that we had, and twenty twenty four and fourteen
Speaker 14: doesn't look better. So definitely there is a huge demand.
Speaker 14: And when you're addressing this demand, a huge market demand
Speaker 14: and a huge market ten and you build a simple
Speaker 14: solution for a complex problem that gives you some of
Speaker 14: the tail that we had.
Speaker 4: And that's how well evidence inspire some of the numbers
Speaker 4: that were made public last year, or the three hundred
Speaker 4: and fifty million run rate that of course helps you
Speaker 4: guide towards an IPO and evaluation, but you're also looking
Speaker 4: at MNA to beef.
Speaker 8: P ahead of initial public offering.
Speaker 4: What sort of companies do you need to add at
Speaker 4: this moment rather than organic growth.
Speaker 14: Yeah, definitely organic growth is our core focused and definitely
Speaker 14: kind of innovation we're doing organically.
Speaker 15: Having said that, and it's not unrelated to Whiz.
Speaker 14: If you're looking at the last six months, two billion
Speaker 14: dollars of acquisitions in the cybersecurity space, lots of them
Speaker 14: by the way, in in Israel by four leaders, Palo
Speaker 14: Alto Networks, CrowdStrike, zis Killer, and Wiz. So definitely we're
Speaker 14: seeing that non organic opportunities are there when we're looking
Speaker 14: at the market. Definitely, Threat detection CDR super important for
Speaker 14: us to grow. When we're looking at AI, definitely another
Speaker 14: focused area for us. But also if you shift left,
Speaker 14: like looking more in the developers and code security, this
Speaker 14: is a focus for us. So definitely we believe that
Speaker 14: twenty twenty four for US is going to be the ear.
Speaker 5: Of acquisitions self. Good morning from San Francisco. The Financial
Speaker 5: Times reported on March eighth that you were raising more
Speaker 5: money at evaluation above ten billion dollars.
Speaker 6: I remember a year ago there are.
Speaker 5: Lots of reports you were raising money at ten billion
Speaker 5: dollar valuation, and then again in May in the summer,
Speaker 5: just clarify for our audience, are you raising money and
Speaker 5: at what valuation?
Speaker 14: Look to ask a CEO of a startup, are you
Speaker 14: raising money? It's probably always do it every day? No, no,
Speaker 14: so not every day, And definitely our focus is on
Speaker 14: building technology and attracting the best, So that's kind of
Speaker 14: our focus. Having said that, I would say that there
Speaker 14: is a lot of interest like our new publication of
Speaker 14: Dali the COO and president of Ziscaler joining with the
Speaker 14: publication of three hundred and fifty million dollars in revenues,
Speaker 14: the publication of forty percent of the Fortune one hundred
Speaker 14: are using Wiz today, and the exploding cybersecurity attracts a.
Speaker 15: Lot of attention to Wiz. We enjoy it.
Speaker 14: But again, when we have something to publish, we'll definitely
Speaker 14: share it here in Bluber.
Speaker 5: So let's go to where the value lays. What is
Speaker 5: it from a technology perspective that's unique to whis relative
Speaker 5: to your competitors.
Speaker 14: I think that if you look at what Whiz is
Speaker 14: doing Basically, what we're doing is helping organization to protect
Speaker 14: everything they run and build in their cloud. And the
Speaker 14: cloud environment is one of the most complex environments in
Speaker 14: the world. You know, new technologies are thriving there. It's
Speaker 14: not only centralized by IT or security, it's led by
Speaker 14: develop person devlops.
Speaker 15: So definitely this supposes.
Speaker 14: Like new challenges to organizations and with that kind of
Speaker 14: we need a new approach. I think that we're seeing
Speaker 14: like legacy companies that have like super good like technology
Speaker 14: in network security or in endpoint security, but definitely you
Speaker 14: need like the cloud security company, and I think organization
Speaker 14: now understand that that you cannot solve with legacy solution
Speaker 14: new problems and definitely invest in kind of the new
Speaker 14: initiative in cloud security.
Speaker 6: In that vein.
Speaker 5: Then what is the biggest tail wind to WIZ but
Speaker 5: also the industry right what is the headwind to companies
Speaker 5: that need to spend on security right now?
Speaker 6: Cybersecurity?
Speaker 14: I definitely think that the tailwind, and definitely in cloud
Speaker 14: security is probably AI. And we're talking a lot about that,
Speaker 14: so AI introduce us not only kind of I think
Speaker 14: like two new challenges in a way. One is is
Speaker 14: definitely it's a new attack surface. If you're looking at
Speaker 14: like the prompt, the AI pipeline, the data that you're
Speaker 14: using in EI, the models that you're using, all of
Speaker 14: that is net new attack surface for organizations. So that's
Speaker 14: one focused area. But it's not only that. It's also
Speaker 14: a I that is being leveraged by cyber criminals. Criminals actually,
Speaker 14: to be honest, they're doing a better job probably leveraging
Speaker 14: gen AI today in their attacks and fueling their attacks
Speaker 14: then as is the defenders using it for our RBX.
Speaker 14: So definitely this is a great opportunity for us to
Speaker 14: use this technology and to leverage into the cyber defenders.
Speaker 8: What's the hardest part of your job right now?
Speaker 14: Oh, the hardest is always, since the beginning, is attracting
Speaker 14: the best talent, like the company and you can put
Speaker 14: the technology ap even customer. It's all about eventually, it's
Speaker 14: always get to the talent. You know, we're talking we
Speaker 14: you know, we raise nine hundred million dollars, we're expanding,
Speaker 14: We're about to recruit four hundred people in the US
Speaker 14: in the in twenty twenty four. To find amazing four
Speaker 14: hundred people.
Speaker 6: That's truly tough job.
Speaker 4: And then You're based here now in New York, so
Speaker 4: they could be New York people for four hundred or everywhere.
Speaker 14: So we're a global company, definitely focused on the on
Speaker 14: the US market. New York is kind of our headquarters,
Speaker 14: so definitely lots of focus here. But we have an
Speaker 14: Austin office when if we have a DC office. We
Speaker 14: have a huge presence in California. So definitely in the US,
Speaker 14: but also globally. I think that you know, unlike other
Speaker 14: markets cloud for example, in cloud security, you know, it's
Speaker 14: not like hey, INMEA or APAK are following the US
Speaker 14: in some fronts, there are actually more advanced than us
Speaker 14: here in the US.
Speaker 4: Wow, I'm sure that's enough to keep you up at night.
Speaker 4: We thank you so much with CEO Asaf Rappaport, and
Speaker 4: hopefully we'll have him back when you can articulate just
Speaker 4: what the valuation is soon enough and how much they're
Speaker 4: always seemingly raising.
Speaker 8: We thank you so much.
Speaker 4: Google has just announced a slew of initiatives to deploy
Speaker 4: its artificial intelligence models in healthcare in particular, and that
Speaker 4: includes a tool that will help fitbit users glean insights
Speaker 4: from them wearable devices and a partnership to improve screenings
Speaker 4: cancer and disease over in India be brought up with
Speaker 4: Google's chief Health Officer, doctor Karen DeSalvo, just moments ago.
Speaker 8: Take a listen.
Speaker 16: Such an exciting time in healthcare because AI has reached
Speaker 16: this inflection point where it is now capable of being
Speaker 16: an adjunct and assistant to augmenting the work that doctors
Speaker 16: and nurses and other people in healthcare already need to
Speaker 16: do and extending the reach of clinical practice to improve
Speaker 16: access to care. Sometimes I'm very jealous of doctors that
Speaker 16: are just starting out in the field because they have
Speaker 16: this new tool in their toolbox that they're going to
Speaker 16: get to use across their career. And the way that
Speaker 16: when penicillin was discovered, it was a new tool in
Speaker 16: the toolbox. So we're already seeing that AI is helpful
Speaker 16: in improving speed to diagnosis. For example, where we're doing
Speaker 16: some work with Apollo Hospitals in India to extend the
Speaker 16: ability of that health system to diagnose cancers earlier, like
Speaker 16: long and breast cancer, so they can reach people who
Speaker 16: wouldn't have that kind of access to care. So thinking
Speaker 16: about how it's a wonderful augment to the work that
Speaker 16: needs to happen in clinical practice and makes that practice
Speaker 16: more efficient, but also gives people more access to It's
Speaker 16: a really exciting opportunity.
Speaker 4: Can you articulate some of the ways in which Google
Speaker 4: in particular is able to use its own innovations, its
Speaker 4: own products that it's already brought into the field to
Speaker 4: be able to help with health.
Speaker 16: We talked a lot about these at the Checkup, which
Speaker 16: is an annual event where we kind of mark the
Speaker 16: progress of how things are going and how we're working
Speaker 16: with partners, but also how we're directly helping consumers. I'll
Speaker 16: give you an example of how we're building it directly
Speaker 16: into some of our products to work with consumers. So
Speaker 16: on fitbit, where people already get advice about steps or
Speaker 16: sleep or nutrition, we're creating what's called a personal large
Speaker 16: language model. So we're creating a new AI that's personalized
Speaker 16: to you so that it know with your consent, knows
Speaker 16: your sleep and your steps, sort of other characteristics about
Speaker 16: your day and your exercise, and can give you personal
Speaker 16: coaching that gives you those nudges that are going to
Speaker 16: matter most to you because it's reflective of what your
Speaker 16: experience has I'm personally very excited about this. Also, I'm
Speaker 16: a person who's a runner, and it's really it'd be
Speaker 16: so exciting to have that personal AI coach built into
Speaker 16: our watch devices like Fitbit over time and pretty soon
Speaker 16: we're going to allow people to start to opt in
Speaker 16: to help us build and a mature that personal LLM.
Speaker 4: Doctor Karen DeSalvo, chief health officer at Google and what
Speaker 4: have you.
Speaker 6: Got time for? Talking tech? And in the news.
Speaker 5: First Stop shot Back and online shopping rewards app backed
Speaker 5: by Temasek, is cutting about a quarter of its workforce
Speaker 5: is it retreats from the buy now pay Lata space.
Speaker 5: The CEO says the company's eliminating twenty four percent of
Speaker 5: staff to become more focused and self sustainable. Plus go
Speaker 5: To plans to buy back as much as two hundred
Speaker 5: million dollars of stock after recording its first ever profit
Speaker 5: on an adjusted basis. To Stop buy Back is the
Speaker 5: first ever for go To, which hopes to soak investor
Speaker 5: confidence even as competition intensifies. And George Lucas, the legendary
Speaker 5: Hollywood filmmakers, said he would support Disney CEO Bob Iger
Speaker 5: in his POxy battle with activists investors. Lucas became a
Speaker 5: significant shareholder years ago when he sold his production company
Speaker 5: to Disney, and in a statement this morning, he says
Speaker 5: he has quote full faith and confidence in the power
Speaker 5: of Disney and Bob's track record driving long term value.
Speaker 6: Caro, the force is with Bob Iger.
Speaker 4: And I'm very pleased to say that we're in full
Speaker 4: force with you back as well.
Speaker 10: Ed.
Speaker 4: That does it for this edition of bluemog Technology.
Speaker 6: All right, don't forget to check out the pod.
Speaker 5: Thank you so much to those the listening to the
Speaker 5: podcast all around the world, Apple, Spotify, iHeart and all
Speaker 5: the Bloomberg platforms.
Speaker 6: This is bloomberb