WEBVTT - Nvidia Forecasts $1 Trillion in Revenue Through 2027 0:00:02.520 --> 0:00:12.600 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a 0:00:12.640 --> 0:00:16.360 live from coast to coast with Caroline Hyde in New 0:00:16.440 --> 0:00:20.120 York and ed Lo Loow in San Francisco. 0:00:22.320 --> 0:00:23.920 This is Bloomberg Tech coming up. 0:00:23.960 --> 0:00:27.000 In video, CEO Jensen Wong makes a big forecast for 0:00:27.040 --> 0:00:28.520 the AI buildout. 0:00:30.280 --> 0:00:36.400 Writ your rice down, I see through twenty twenty seven 0:00:39.040 --> 0:00:42.199 at least one trillion dollars. 0:00:43.120 --> 0:00:46.239 As we discussed the AI and MNA landscape with the 0:00:46.280 --> 0:00:50.199 CEO of IBM hot off the company's own GtC announcement. 0:00:50.560 --> 0:00:54.040 And Gecko Robotics works to deploy its AI powered robots 0:00:54.080 --> 0:00:58.400 to assess the condition and readiness of the US Navy's warships. 0:00:58.920 --> 0:01:00.920 A first we turn around ten two. 0:01:01.040 --> 0:01:04.440 Well, once again a market that is focused on geopolitics, 0:01:04.680 --> 0:01:07.039 on war, but also on the eve of the federal 0:01:07.080 --> 0:01:08.320 reserve rate decision. 0:01:08.360 --> 0:01:11.160 We're currently seeing some buying of stocks. In fact, eighty. 0:01:11.000 --> 0:01:13.480 Nine of these one hundred names in the green for 0:01:13.520 --> 0:01:15.640 the NASAK one hundred. We're up for a second straight date. 0:01:15.720 --> 0:01:18.080 We're up eight ten percent, and we're seeing a little 0:01:18.120 --> 0:01:19.880 bit more of a risk on attitude there and you're 0:01:19.880 --> 0:01:22.479 going to dig into well, perhaps one of the catalysts. 0:01:23.080 --> 0:01:26.040 As I stand here right now in video, shares are 0:01:26.040 --> 0:01:27.960 completely flat in the session, but they've been on a 0:01:28.040 --> 0:01:32.520 roller coaster across two sessions. Late Monday, when jensenmong had 0:01:32.520 --> 0:01:35.319 his keynote, you can see the big spike almost five 0:01:35.319 --> 0:01:39.360 percent in the session of what was extended visibility into 0:01:39.400 --> 0:01:41.080 the demand for invidious products. 0:01:41.120 --> 0:01:43.840 Here's what he said, right, you're rise down. 0:01:45.760 --> 0:01:54.480 I see through twenty twenty seven at least one trillion dollars. 0:01:54.600 --> 0:01:58.040 A trillion dollars is an enormous amount of infrastructure. That 0:01:58.560 --> 0:02:01.880 infrastructure investment you could make on Nvidia, you could make 0:02:01.960 --> 0:02:05.400 with complete confidence. We have now proven that. 0:02:07.520 --> 0:02:10.960 Let's get right into it with Bloomberg's Equities reporter Rhyan Vslica. 0:02:11.000 --> 0:02:13.560 I mean you've summarized what the cell sized reaction has 0:02:13.600 --> 0:02:15.880 been to that one trillion dollar number. 0:02:16.360 --> 0:02:18.799 It's mixed, but on the whole bullish. 0:02:18.840 --> 0:02:21.880 What do you say, Yeah, absolutely, I would say people 0:02:21.960 --> 0:02:25.280 are in general pretty positive on this target. It really 0:02:25.280 --> 0:02:29.080 speaks to how much visibility in Vidia has growing forward. 0:02:29.120 --> 0:02:31.880 It really speaks to how they expect all this AI 0:02:31.960 --> 0:02:35.320 infrastructure spending to remain pretty durable, which is something that 0:02:35.360 --> 0:02:37.840 has come under question this year. And led to a 0:02:37.880 --> 0:02:41.120 lot of volatility across the tech space. However, I think 0:02:41.120 --> 0:02:43.600 it also just speaks to just a certain amount of 0:02:43.960 --> 0:02:47.160 uncertainty and a certain amount of hesitancy when it comes 0:02:47.240 --> 0:02:50.079 to this company and this stock. Now we wrote about 0:02:50.120 --> 0:02:52.240 this earlier this week, but Nvidia has been stuck in 0:02:52.280 --> 0:02:55.760 a pretty tight trading range for months. It's been unable 0:02:55.760 --> 0:02:58.480 to break out, even on the back of strong earnings. 0:02:58.680 --> 0:03:01.120 Even on the back of yes today's announcement, we did 0:03:01.120 --> 0:03:03.080 see a brief spike, but then as people sort of 0:03:03.120 --> 0:03:06.239 dissected the target, it came back down again. So I 0:03:06.240 --> 0:03:08.720 think there's still a lot of skepticism out there. Now, 0:03:08.760 --> 0:03:11.040 I would flag that it is hosting an analyst Q 0:03:11.160 --> 0:03:12.680 and A. I think it starts in about an hour. 0:03:12.919 --> 0:03:14.240 That is something. I think people are going to be 0:03:14.240 --> 0:03:17.840 really drilling into this one trillion number trying to understand it, 0:03:18.160 --> 0:03:20.400 and maybe that's something that will spur a little bit 0:03:20.440 --> 0:03:22.320 more gaining. But so far it seems like there's been 0:03:22.360 --> 0:03:23.840 nothing that has been able to lift the stock. 0:03:23.960 --> 0:03:25.760 Yeah, because of those analysts, So it's going to be 0:03:25.840 --> 0:03:29.280 tuning in seventy five, say by the stock only one 0:03:29.480 --> 0:03:33.000 as ever, says stell Cell no, then to see more 0:03:33.040 --> 0:03:35.080 broadly at price target in the next twelve months of 0:03:35.080 --> 0:03:37.320 two hundred and sixty nine dollars, well above where we 0:03:37.400 --> 0:03:39.680 currently trade Ryan. So they're still just waiting on some 0:03:39.800 --> 0:03:40.560 other catalyst. 0:03:41.920 --> 0:03:43.760 Yeah, it's hard to know what the catalyst is going 0:03:43.800 --> 0:03:43.920 to be. 0:03:44.000 --> 0:03:44.520 At this point. 0:03:44.520 --> 0:03:47.080 They've really talked about their product lineup, they've talked about 0:03:47.560 --> 0:03:50.720 their growth expectations. The multiple has really come in. It's 0:03:50.760 --> 0:03:53.040 i think one of the cheapest stocks in the mag seven. 0:03:53.680 --> 0:03:55.480 There is still a lot of questions about what is 0:03:55.520 --> 0:03:57.640 growth going to look like, you know, years out, what 0:03:57.720 --> 0:04:00.600 kind of deceleration could we see? And people are factoring that. 0:04:00.880 --> 0:04:02.920 But certainly when you talk to a lot of people, 0:04:03.000 --> 0:04:05.480 everybody still likes n Video. Everybody still thinks it's a 0:04:05.600 --> 0:04:08.800 very well run stock. They don't really see demand drawing 0:04:08.920 --> 0:04:10.880 up anytime soon. But it does seem like there's a 0:04:10.920 --> 0:04:14.640 certain amount of hesitancy. You know, it's almost like they've 0:04:14.640 --> 0:04:16.320 built up a tolerance for the kinds of games that 0:04:16.360 --> 0:04:18.120 we've seen in quarters past, where they would give some 0:04:18.200 --> 0:04:19.960 kind of big target and we'd see the stock jump 0:04:20.000 --> 0:04:22.800 twenty percent. It's a lot harder to imagine anything like 0:04:22.839 --> 0:04:24.000 that happening today. 0:04:24.480 --> 0:04:26.320 Roan, what else you're seeing on your desk this morning 0:04:26.320 --> 0:04:28.839 as it relates to GtC, Like, is there a broader 0:04:28.920 --> 0:04:32.240 market digestion of the two and a half hour speech 0:04:32.279 --> 0:04:34.920 that Jensen Wong gave yesterday? 0:04:35.040 --> 0:04:35.840 Yeah, two and a half hour. 0:04:35.880 --> 0:04:37.240 I did see a lot of people saying, you know, 0:04:37.240 --> 0:04:38.640 this could have been a lot shorter, so that was 0:04:38.680 --> 0:04:40.560 kind of funny. But beyond that, we are seeing a 0:04:40.600 --> 0:04:42.640 lot of people just digesting this. We saw some moves 0:04:42.720 --> 0:04:46.800 yesterday and IBM and optical companies and Intel, so there 0:04:46.839 --> 0:04:48.760 are a lot of companies. Like it hasn't quite been 0:04:48.800 --> 0:04:50.600 the same way that it was in years past, where 0:04:50.600 --> 0:04:53.159 they would mention a company and we'd see that stock rally. 0:04:53.320 --> 0:04:55.240 Everything is a bit more I muted right now. People 0:04:55.279 --> 0:04:57.880 are really trying to understand this and trying to understand 0:04:57.920 --> 0:05:00.600 where this trade goes from here. I've seen the sort 0:05:00.600 --> 0:05:02.800 of excitement that we saw really at the onset of 0:05:02.839 --> 0:05:03.719 the AI era. 0:05:04.240 --> 0:05:07.159 Most Roun Vasilica with all the technicals on trading this stock. Now, 0:05:07.240 --> 0:05:10.320 let's get you the fundamentals the market perspective. With Daniel Filling, 0:05:10.320 --> 0:05:13.719 his senior research analyst and portfolio manager over it, sounds capital, Daniel. 0:05:14.200 --> 0:05:17.520 I mean, let's talk about the demand for in videos products. 0:05:17.600 --> 0:05:20.599 You still see them as insatiable. We've got GPU CPU 0:05:20.720 --> 0:05:24.279 help you. What drove your optimism from yesterday's speech. 0:05:25.640 --> 0:05:28.440 Yes, so, I think the proof is in the pudding, 0:05:28.480 --> 0:05:30.120 I might say so when we look at sort of 0:05:30.160 --> 0:05:33.840 the labs and the revenue growth this year today, it 0:05:33.880 --> 0:05:37.160 has been massively accelerating. Right Zanthropics public's numbers went from 0:05:37.240 --> 0:05:41.360 fourteen to nineteen billion literally within a few weeks. And 0:05:41.400 --> 0:05:43.279 I think the crux of what is going on here 0:05:43.400 --> 0:05:47.200 is that agentic ai is here. It is as viral 0:05:47.279 --> 0:05:49.640 as zoom was at the beginning of COVID. And what 0:05:49.680 --> 0:05:52.000 I mean with that is that once somebody starts using it, 0:05:52.000 --> 0:05:56.200 it starts doing amazing things. Every colleague will follow over time, 0:05:56.560 --> 0:05:59.000 and we just don't have enough computer to really satiate this. 0:05:59.279 --> 0:06:02.080 And this is like a multi year process of sort. 0:06:01.880 --> 0:06:04.880 Of everybody is starting to use agentic ai within their 0:06:04.880 --> 0:06:08.120 own workflows. We have a billion people as knowledge workers, 0:06:08.160 --> 0:06:11.080 and we maybe have a few million agents as of today, 0:06:11.400 --> 0:06:13.280 so to me and to us, so this feels like 0:06:13.680 --> 0:06:15.680 sort of the iPhone moment of two thousand and seven 0:06:15.720 --> 0:06:18.120 and eight where everybody will want to buy an iPhone 0:06:18.160 --> 0:06:20.560 and everybody will want to run an agent, which means 0:06:20.560 --> 0:06:22.880 the numbers will likely continue to be much, much much 0:06:22.880 --> 0:06:23.640 bigger over time. 0:06:23.760 --> 0:06:26.359 And Jensen wants to be the infrastructure for that, but 0:06:26.440 --> 0:06:29.720 also not just the chips, but the operating system that 0:06:30.279 --> 0:06:32.800 goes with. Talk to us about openclore and how they're 0:06:32.839 --> 0:06:35.680 developing sort of their own operating system for that and 0:06:35.720 --> 0:06:36.479 for a gendki. 0:06:37.320 --> 0:06:38.720 Yeah, so it's very interesting. 0:06:39.480 --> 0:06:43.599 So Nvidia created the security framework to wrap these open 0:06:43.600 --> 0:06:46.880 source agents within an enterprise, right And why do they 0:06:46.880 --> 0:06:49.000 do that, right, Because then an agent will be able 0:06:49.040 --> 0:06:53.800 to access your calendar, your payment mechanisms, your documents, so 0:06:53.800 --> 0:06:56.280 it's got to be very, very safe and secure. So 0:06:56.320 --> 0:06:58.480 this is one of the key bottlenecks that people have 0:06:58.560 --> 0:07:02.120 to overcome to install all agents within the enterprise space. 0:07:02.560 --> 0:07:04.800 And then, as n Video always does, they sort of 0:07:04.839 --> 0:07:07.480 create their own markets. So they created this framework called 0:07:07.520 --> 0:07:10.400 Nemo Claw, which means that everybody, every enterprise in the 0:07:10.400 --> 0:07:13.920 world now can implement an agent locally on their devices, 0:07:13.960 --> 0:07:16.360 which means that this growth can really start to accelerate 0:07:16.640 --> 0:07:19.040 within the enterprise because the security is there. 0:07:20.320 --> 0:07:23.080 Daniel my Bloomberg Terminal tells me SANS Capital has about 0:07:23.080 --> 0:07:24.680 twenty million in video shares. 0:07:24.720 --> 0:07:25.160 Is that right? 0:07:26.720 --> 0:07:27.920 Yes, Ballparker. 0:07:29.680 --> 0:07:32.720 Let's go back to the number twenty twenty five. Through 0:07:32.720 --> 0:07:35.600 the end of calendar twenty twenty six five fiscal quarters 0:07:36.040 --> 0:07:39.920 was five hundred billion dollars of demand just for Blackwell 0:07:39.960 --> 0:07:43.560 and Reuben. I think that Bernstein were able to confirm 0:07:43.600 --> 0:07:47.600 with in VIDEOSCFO that the one trillion is also Blackwell 0:07:47.600 --> 0:07:51.360 and Rubin, including associated networking. But there was a bit 0:07:51.440 --> 0:07:55.760 that Jensen said in passing right after that sentence, which 0:07:55.960 --> 0:07:59.480 was we will be short. In other words, I think 0:07:59.480 --> 0:08:03.200 they're still massively supply constrained relative to demand. How are 0:08:03.200 --> 0:08:04.000 you interpreting that? 0:08:05.080 --> 0:08:07.480 Yeah, so I would agree. I think there's two things 0:08:07.480 --> 0:08:08.280 we need to see here. 0:08:08.960 --> 0:08:12.920 One, the hyperscaler revenue growth has to accelerate to get 0:08:13.200 --> 0:08:16.400 you know, to basically maybe get a market away from 0:08:16.480 --> 0:08:19.640 focusing on some sort of peak cycle concern and back 0:08:19.680 --> 0:08:21.840 to focusing on sort of this growth and tokens that 0:08:21.920 --> 0:08:24.960 Jensen is talking about. So once we start seeing hyper 0:08:25.000 --> 0:08:28.600 scalers really reaccelerate because they're buying all these chips, I 0:08:28.640 --> 0:08:31.240 think that concern goes away. And then the second piece 0:08:31.280 --> 0:08:36.480 is the demand is truly viral, right, so everybody. 0:08:35.960 --> 0:08:36.440 In the world. 0:08:36.520 --> 0:08:38.559 I think we'll start seeing these agents as a massive 0:08:38.559 --> 0:08:41.800 productivity tool. If your colleagues are five to ten times 0:08:41.840 --> 0:08:44.640 more productive than you, then you have to implement it 0:08:44.640 --> 0:08:47.920 as well. And we think the penetration of agents today 0:08:47.960 --> 0:08:51.000 is within single digits percentages, right, So as we go 0:08:51.040 --> 0:08:53.760 from single digits tow one hundred percent, it's a billion people. 0:08:54.160 --> 0:08:56.959 That means you need so much more canacter works. 0:08:57.760 --> 0:09:01.120 The associated data point with the one trillion bar chart 0:09:01.320 --> 0:09:04.160 was the pie chart that sixty percent of that demand 0:09:04.240 --> 0:09:06.600 is still coming from the hyperscalers. It wasn't that long 0:09:06.640 --> 0:09:10.000 ago that we were very focused on how much in 0:09:10.040 --> 0:09:14.080 Nvidia diversified away from the hyperscalers. It seems like that 0:09:14.240 --> 0:09:16.280 hyperscalar portions just going up. 0:09:18.200 --> 0:09:18.640 Yes and no. 0:09:18.840 --> 0:09:21.640 Right, So hyperscalers are by far the biggest purchases of 0:09:21.679 --> 0:09:23.840 these things. But there's also the neo clouds, which are 0:09:23.880 --> 0:09:27.880 investing heavily and actually also very interesting enough governments will 0:09:27.880 --> 0:09:29.840 be able to invest more. 0:09:29.480 --> 0:09:31.640 Going forward as well. And in Video is playing a 0:09:31.679 --> 0:09:32.679 key role in that, right. 0:09:32.679 --> 0:09:36.720 They're one of the leading open source providers of these models, 0:09:36.720 --> 0:09:39.120 which means as a government, you can take the open 0:09:39.160 --> 0:09:43.400 source nemotron model from Nvideo implemented locally, you can buy 0:09:43.480 --> 0:09:45.880 all the chips from Nvidia at the same time and 0:09:46.000 --> 0:09:49.000 sort of run your own local cloud within your country. 0:09:49.360 --> 0:09:51.199 So I think those three will be quite important, but 0:09:51.320 --> 0:09:53.679 hyperscalers will always be very important in all of us. 0:09:53.960 --> 0:09:56.520 Daniel, It's interesting that really where Jensen always tries to 0:09:56.600 --> 0:09:59.160 lean in is differentiation, the fact that he's got the 0:09:59.240 --> 0:10:01.240 right chip for the right workload at the right time, 0:10:01.280 --> 0:10:02.320 and that's why they started. 0:10:02.080 --> 0:10:04.240 To talk a lot more about inference and growth for example. 0:10:04.280 --> 0:10:07.719 But I'm interested about he usually pushes us forward a 0:10:07.760 --> 0:10:08.480 little bit more. 0:10:08.760 --> 0:10:10.520 Yes, we've already actually heard a. 0:10:10.440 --> 0:10:13.160 Lot about Vera Rubin, we know a lot about Blackwell, 0:10:13.360 --> 0:10:15.760 but why not even push us into feyn minimal. Why 0:10:15.800 --> 0:10:18.160 not hear about the next situation, because it's like every 0:10:18.200 --> 0:10:21.480 single year we've got a new architecture coming for us. 0:10:21.840 --> 0:10:24.600 Yes, I would actually say what happened yesterday is quiet 0:10:24.760 --> 0:10:29.080 revolution area. So Nvidia is the first company that we'll 0:10:29.120 --> 0:10:32.320 have two different types of chips for inference. So for 0:10:32.480 --> 0:10:35.400 calling on the AI models to get an answer, there's 0:10:35.440 --> 0:10:37.680 a new LPU chip which is super fast. 0:10:37.880 --> 0:10:41.000 Nobody else has that, and that's combined. 0:10:40.520 --> 0:10:43.280 Together with sort of the old sort of the generalized 0:10:43.320 --> 0:10:45.760 GPUs that they always had in the past. And then 0:10:46.200 --> 0:10:50.040 he did give an astonishing quote that LPU are the 0:10:50.080 --> 0:10:53.359 fast chips. There will be thirty five times more performant 0:10:53.400 --> 0:10:55.640 on the performance per work basis, and anything that was 0:10:55.679 --> 0:10:58.199 there before thirty five times. So I do think those 0:10:58.280 --> 0:11:01.400 jumps are just as good, maybe even better than in 0:11:01.440 --> 0:11:02.319 the past. 0:11:03.200 --> 0:11:05.960 Daniel, you clearly have a command of the spec right 0:11:06.040 --> 0:11:10.960 generations generation on the chips. I'll take it back to 0:11:11.040 --> 0:11:13.920 the stock. You know, Carr outlined where the cell side 0:11:13.960 --> 0:11:16.520 stands on this name. The question for you and for 0:11:16.600 --> 0:11:19.800 sans capital, do you buy more based on what you 0:11:19.920 --> 0:11:21.319 heard on stage in San Jose? 0:11:22.720 --> 0:11:23.040 Yes. 0:11:23.400 --> 0:11:27.320 So I think this event itself has been very reaffirming 0:11:27.400 --> 0:11:30.559 of the future, but the entire debate about the stock 0:11:30.600 --> 0:11:33.960 I think will be resolved truly by this. The market 0:11:34.200 --> 0:11:36.720 is looking at n Video as a business that is. 0:11:36.760 --> 0:11:39.160 At peak revenue and peak earnings. 0:11:40.040 --> 0:11:42.800 We disagree, and the reason why we disagree is everything 0:11:42.800 --> 0:11:44.439 we discussed before agentic. 0:11:44.080 --> 0:11:45.840 Ai is exploding in terms of demand. 0:11:46.120 --> 0:11:49.520 Now this all will get resolved once the free cash 0:11:49.559 --> 0:11:52.440 flow and the revenue growth of the buyers of these chips. 0:11:52.440 --> 0:11:54.480 Are you that sixty percent of the hyperskillers, for example, 0:11:54.520 --> 0:11:57.960 will start growing again, And whenever you start seeing this, 0:11:57.960 --> 0:12:00.640 this entire debate will be resolved because the market will 0:12:00.640 --> 0:12:04.240 say we're going from peak concerns to actually this is 0:12:04.240 --> 0:12:07.760 a very structural, durable growth trajectory the next five to 0:12:07.800 --> 0:12:11.160 ten years. I don't know precisely when this will be solved, 0:12:11.360 --> 0:12:12.880 but my guess is that we're going to see a 0:12:12.920 --> 0:12:16.719 significant acceleration hyper skill and revenue growth within the next 0:12:16.800 --> 0:12:18.920 one or two years because they're buying hundreds of billions 0:12:18.920 --> 0:12:22.160 of dollars of these chips. And then maybe equally important, 0:12:22.480 --> 0:12:25.400 the return or the payback periods off these chips is 0:12:25.440 --> 0:12:28.160 actually improved in the past twelve months because we're completely 0:12:28.200 --> 0:12:31.839 sold out, so basically you're buying a GPU and you're 0:12:31.840 --> 0:12:34.480 getting your money back in record time, which again then 0:12:34.559 --> 0:12:36.960 leads to the point of the hyper skills. We'll start 0:12:37.000 --> 0:12:39.880 seeing more growth, better free cash for growth, which should 0:12:39.880 --> 0:12:42.120 translate then hopefully to a positive outcome. 0:12:42.160 --> 0:12:42.880 Fund video. 0:12:44.160 --> 0:12:46.680 Daniel Pelling from SANSKAF, so, thank you very much. 0:12:52.679 --> 0:12:54.320 Let's check in on the sheds of Uber and Lyft 0:12:54.360 --> 0:12:57.800 right now in the green, as we'll see significantly, and 0:12:57.840 --> 0:13:01.240 that's after both companies announced deepening partnerships within Video, which 0:13:01.280 --> 0:13:02.640 is currently down three tens percent. 0:13:02.800 --> 0:13:03.000 Look. 0:13:03.080 --> 0:13:05.600 Uber says it plans to drull out a global fleet 0:13:05.600 --> 0:13:08.200 of in Vidia powered self driving vehicles across twenty eight. 0:13:08.120 --> 0:13:11.400 Cities by twenty twenty eight. Lift Meanwhile, we'll use in. 0:13:11.440 --> 0:13:13.959 Video's AI to strengthen machine learning systems across it's on 0:13:14.200 --> 0:13:17.520 operations for more blue most consumer apps and gig economy, 0:13:17.559 --> 0:13:20.400 reported Natalie Lang joints this. Now, what's interesting with Uber 0:13:20.760 --> 0:13:23.839 is that we've had some big, bold ambitions articulated back 0:13:23.880 --> 0:13:26.200 in February was it and one hundred thousand cars are 0:13:26.200 --> 0:13:28.920 going to be on the road in this partnership within video. 0:13:29.040 --> 0:13:31.120 But what's the timeline now looking like? 0:13:31.760 --> 0:13:35.200 So the updated timeline is that these vehicles will be 0:13:35.679 --> 0:13:38.880 scaled across twenty eight studies by twenty twenty eight, and 0:13:38.920 --> 0:13:41.760 that will really start in earnest in twenty twenty seven 0:13:41.800 --> 0:13:43.479 in Los Angeles and San Francisco. 0:13:45.000 --> 0:13:47.280 I mean, Uber is about a percentage point of having 0:13:47.320 --> 0:13:49.920 its best days since June of last year. So like 0:13:49.960 --> 0:13:52.160 at first You're like, this is a name check that's 0:13:52.240 --> 0:13:56.040 driving the stock, but really it's it's more updates to. 0:13:56.000 --> 0:13:57.240 An existing partnership. 0:13:57.480 --> 0:14:00.240 What about Lift then, I mean this really is by 0:14:00.440 --> 0:14:03.320 name association because it's more about internal use. 0:14:03.960 --> 0:14:07.040 Yeah, it's about internal use. But part of the release 0:14:07.280 --> 0:14:11.880 also mentions future possible deployments of n video powered vehicles 0:14:11.880 --> 0:14:13.679 on the Lift platform, but we don't have a lot 0:14:13.720 --> 0:14:17.839 of details on the manufacturer partner yet. Whereas for Uber, 0:14:18.080 --> 0:14:22.120 they have a couple of partnerships already announced, such as 0:14:22.240 --> 0:14:26.200 Lucid and neuro vehicles, wave vehicles or with Nissan that 0:14:26.240 --> 0:14:30.080 will that will be powered by video chips and technology. 0:14:30.560 --> 0:14:33.080 I think it sort of goes to what RBC's analyst 0:14:33.080 --> 0:14:35.600 Brad Erickson was spelling out that all of this news 0:14:35.680 --> 0:14:40.200 vindicates perhaps both Uber and Lift's role as platforms in 0:14:40.280 --> 0:14:43.360 the av era. We'd all been worried about competition, but 0:14:43.440 --> 0:14:45.680 actually they're the ones that can bring it all together. 0:14:45.480 --> 0:14:47.880 Right, Yeah, and in this further shows it's not just 0:14:47.920 --> 0:14:50.320 a demand generation platform. It's not just going to be 0:14:50.360 --> 0:14:53.680 an app that will allow people to hail a robotaxi. 0:14:54.120 --> 0:14:56.400 But here we can see that Uber wants to be 0:14:56.480 --> 0:14:59.560 the fleet partner. It wants to support some remote assistance 0:14:59.640 --> 0:15:04.360 operation for these fleets that they run themselves with partners 0:15:04.360 --> 0:15:04.800 as well. 0:15:06.520 --> 0:15:08.800 Blubos Natalie Lung across all the movies in the G 0:15:08.880 --> 0:15:12.760 economy space. After GtC Thank You, another deal announced Amidia's 0:15:12.800 --> 0:15:16.160 GtC conference. IBM will collaborate with the ship maker on 0:15:16.200 --> 0:15:19.640 an open source project aim to help enterprises use AI 0:15:19.680 --> 0:15:22.880 at scale. We sat down with IBM CEO Avin Krishna 0:15:23.040 --> 0:15:25.040 for more in the deal and on his take about 0:15:25.040 --> 0:15:26.400 the wider M and A landscape. 0:15:26.440 --> 0:15:26.920 Listen to this. 0:15:27.880 --> 0:15:32.080 I think the regulatory environment is definitely friendlier where we 0:15:32.160 --> 0:15:32.560 got this. 0:15:32.640 --> 0:15:35.920 Done in just under four months. 0:15:35.560 --> 0:15:38.240 Where you used to take a lot longer a few 0:15:38.280 --> 0:15:38.840 years back. 0:15:39.320 --> 0:15:43.320 If regulatory environment is friendlier, should we be doing more 0:15:43.320 --> 0:15:43.520 of it? 0:15:43.560 --> 0:15:45.360 Should there be more M and A particularly with some 0:15:45.440 --> 0:15:49.000 beaten up overall valuations of software companies at the moment. 0:15:49.440 --> 0:15:52.640 I'll just say watch the space, Oh watch. 0:15:52.440 --> 0:15:54.080 This space, okay, But where would you want to add 0:15:54.080 --> 0:15:55.960 on in this moment and what would make sense to 0:15:55.960 --> 0:15:57.119 be adding to your portfolio? 0:15:57.800 --> 0:16:01.160 So we are very focused hybrid class and AI and 0:16:01.240 --> 0:16:04.520 the intersection. The work we're doing together with Nvidia was 0:16:04.560 --> 0:16:08.160 a five times speed up, so five times, not five percent, 0:16:08.320 --> 0:16:11.760 not a little amount, but five times. So there we 0:16:12.000 --> 0:16:15.200 began to leverage the Nvidia GPUs together with some of 0:16:15.280 --> 0:16:20.440 their cudf or software, combining with our watsonex dot data 0:16:21.000 --> 0:16:24.920 and the example we used was our client Nestley, where 0:16:25.000 --> 0:16:27.520 together we managed to get that speed up across their 0:16:27.600 --> 0:16:31.680 massive amounts of data. And that really is important in 0:16:31.720 --> 0:16:34.520 that case, combining some of the technologies we work on 0:16:34.640 --> 0:16:38.080 also an open source with the Presta Presto data engine 0:16:38.680 --> 0:16:41.960 Nvidia and the example at NESLE. But then we're very 0:16:41.960 --> 0:16:44.400 excited we're going to do more work on that and 0:16:44.440 --> 0:16:46.360 then take it into the market and take it out 0:16:46.400 --> 0:16:48.360 to hundreds of clients from there. 0:16:49.800 --> 0:16:53.280 That was IBN CEO of Increationna Karen. Many more headlines 0:16:53.320 --> 0:16:54.000 out there there is. 0:16:54.040 --> 0:16:56.000 It's time to talk talking tech. 0:16:56.120 --> 0:16:58.720 First up, the UK is ramping up it push into 0:16:58.760 --> 0:17:01.560 quantum computing, committing well the one boy three billion dollars 0:17:01.600 --> 0:17:02.680 over the next four years. 0:17:02.720 --> 0:17:05.399 It's a major bet on a technology. 0:17:04.880 --> 0:17:09.320 Increasingly seen as critical to national security, future economic competitiveness 0:17:09.480 --> 0:17:12.880 for US. Don't expect memoryship shortages to ease anytime soon. 0:17:13.119 --> 0:17:15.960 Sk Heinex well, it says that the crunch could last 0:17:16.000 --> 0:17:17.280 another four to five years. 0:17:17.359 --> 0:17:20.880 Sk Group chairman that's Anthony J notes that while chipmakers 0:17:20.880 --> 0:17:21.720 have already. 0:17:21.440 --> 0:17:22.960 Ramped up, capacity may. 0:17:22.800 --> 0:17:25.639 Not be enough to satisfy demand until around twenty thirty. 0:17:26.200 --> 0:17:29.760 And Samsung, while is already pulling back on its Galaxy 0:17:29.960 --> 0:17:32.760 Z trifled just three months after the launch. So the 0:17:32.800 --> 0:17:35.680 South Korean company plans to halt sales and the nearly 0:17:35.720 --> 0:17:38.359 three thousand dollars device in its home market, and the 0:17:38.440 --> 0:17:40.560 US discontinuation expected to follow it. 0:17:41.640 --> 0:17:44.439 Okay, Coming up amid the chaos of the Iron conflict, 0:17:44.840 --> 0:17:49.280 Bitcoin is emerging as an unlikely oasis for some investors. 0:17:49.280 --> 0:17:50.240 We have more on that. Next. 0:17:50.640 --> 0:18:00.320 This is Bloomberg Tech, one of the world's best known 0:18:00.359 --> 0:18:04.240 investors in Nvidia rc CEO Kathy Woods, so she's optimistic 0:18:04.320 --> 0:18:08.119 about the return on investment from Frontier AI model providers. 0:18:08.119 --> 0:18:10.479 She spoke with Bloomberg's Anda Edwards in London. 0:18:10.600 --> 0:18:11.119 Take a listen. 0:18:11.400 --> 0:18:16.080 We are seeing a revenue generation exploding from the frontier 0:18:16.200 --> 0:18:23.320 model providers. Athropics annualized revenue run rate so ARR went 0:18:23.440 --> 0:18:29.240 from nine billion in December to nineteen billion today. So 0:18:29.720 --> 0:18:34.000 annualizing revenue at nineteen billion that's that's astonishing growth open 0:18:34.040 --> 0:18:39.040 AI from twenty to twenty five billion. The productivity that 0:18:39.720 --> 0:18:43.920 we are enjoying from these large language models is astonishing. 0:18:44.000 --> 0:18:48.800 Even within our own firm. I'm even former skeptics that 0:18:49.000 --> 0:18:51.600 this was going to amount to very much, you know, 0:18:51.760 --> 0:18:57.200 very New York skepticism. They're blown away by what they 0:18:57.240 --> 0:18:57.640 can do. 0:18:57.960 --> 0:18:59.920 Just to take a detail to geopolitics, because it's the 0:19:00.040 --> 0:19:02.919 I'm such a dominant market driver, and I wonder how. 0:19:02.760 --> 0:19:04.600 It influences your thinking. 0:19:04.880 --> 0:19:07.440 We are week three of a wall that's taking place 0:19:07.440 --> 0:19:10.399 in the Middle East. Many tech businesses, of course probably 0:19:10.480 --> 0:19:13.040 quite insulated from everything that is happening there. But I wonder, 0:19:13.160 --> 0:19:16.800 does it what rethinking? Does it prompt at arc? What 0:19:19.119 --> 0:19:22.320 shift in in focus or shift in strategy if any 0:19:22.440 --> 0:19:23.639 does this kind of thing. 0:19:23.480 --> 0:19:26.680 Prompt Yes, well, of course it depends how long term 0:19:26.760 --> 0:19:30.240 this is, and we are thinking it will be short term. 0:19:30.320 --> 0:19:34.399 We do have midterm elections this year and other considerations. 0:19:35.359 --> 0:19:38.800 But of course energy price is going up. Any supply 0:19:38.960 --> 0:19:43.640 shock to the extent it slows unit growth down, it 0:19:43.680 --> 0:19:47.560 will slow down the learning curves associated with various technologies. 0:19:47.920 --> 0:19:50.840 If this is you know, a month or two months 0:19:51.800 --> 0:19:53.560