Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is a
Speaker 1: live from coast to coast with Caroline Hyde in New
Speaker 1: York and ed Lo Loow in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: In video, CEO Jensen Wong makes a big forecast for
Speaker 3: the AI buildout.
Speaker 4: Writ your rice down, I see through twenty twenty seven
Speaker 4: at least one trillion dollars.
Speaker 5: As we discussed the AI and MNA landscape with the
Speaker 5: CEO of IBM hot off the company's own GtC announcement.
Speaker 3: And Gecko Robotics works to deploy its AI powered robots
Speaker 3: to assess the condition and readiness of the US Navy's warships.
Speaker 6: A first we turn around ten two.
Speaker 5: Well, once again a market that is focused on geopolitics,
Speaker 5: on war, but also on the eve of the federal
Speaker 5: reserve rate decision.
Speaker 6: We're currently seeing some buying of stocks. In fact, eighty.
Speaker 5: Nine of these one hundred names in the green for
Speaker 5: the NASAK one hundred. We're up for a second straight date.
Speaker 5: We're up eight ten percent, and we're seeing a little
Speaker 5: bit more of a risk on attitude there and you're
Speaker 5: going to dig into well, perhaps one of the catalysts.
Speaker 3: As I stand here right now in video, shares are
Speaker 3: completely flat in the session, but they've been on a
Speaker 3: roller coaster across two sessions. Late Monday, when jensenmong had
Speaker 3: his keynote, you can see the big spike almost five
Speaker 3: percent in the session of what was extended visibility into
Speaker 3: the demand for invidious products.
Speaker 2: Here's what he said, right, you're rise down.
Speaker 4: I see through twenty twenty seven at least one trillion dollars.
Speaker 4: A trillion dollars is an enormous amount of infrastructure. That
Speaker 4: infrastructure investment you could make on Nvidia, you could make
Speaker 4: with complete confidence. We have now proven that.
Speaker 3: Let's get right into it with Bloomberg's Equities reporter Rhyan Vslica.
Speaker 3: I mean you've summarized what the cell sized reaction has
Speaker 3: been to that one trillion dollar number.
Speaker 2: It's mixed, but on the whole bullish.
Speaker 7: What do you say, Yeah, absolutely, I would say people
Speaker 7: are in general pretty positive on this target. It really
Speaker 7: speaks to how much visibility in Vidia has growing forward.
Speaker 7: It really speaks to how they expect all this AI
Speaker 7: infrastructure spending to remain pretty durable, which is something that
Speaker 7: has come under question this year. And led to a
Speaker 7: lot of volatility across the tech space. However, I think
Speaker 7: it also just speaks to just a certain amount of
Speaker 7: uncertainty and a certain amount of hesitancy when it comes
Speaker 7: to this company and this stock. Now we wrote about
Speaker 7: this earlier this week, but Nvidia has been stuck in
Speaker 7: a pretty tight trading range for months. It's been unable
Speaker 7: to break out, even on the back of strong earnings.
Speaker 7: Even on the back of yes today's announcement, we did
Speaker 7: see a brief spike, but then as people sort of
Speaker 7: dissected the target, it came back down again. So I
Speaker 7: think there's still a lot of skepticism out there. Now,
Speaker 7: I would flag that it is hosting an analyst Q
Speaker 7: and A. I think it starts in about an hour.
Speaker 7: That is something. I think people are going to be
Speaker 7: really drilling into this one trillion number trying to understand it,
Speaker 7: and maybe that's something that will spur a little bit
Speaker 7: more gaining. But so far it seems like there's been
Speaker 7: nothing that has been able to lift the stock.
Speaker 5: Yeah, because of those analysts, So it's going to be
Speaker 5: tuning in seventy five, say by the stock only one
Speaker 5: as ever, says stell Cell no, then to see more
Speaker 5: broadly at price target in the next twelve months of
Speaker 5: two hundred and sixty nine dollars, well above where we
Speaker 5: currently trade Ryan. So they're still just waiting on some
Speaker 5: other catalyst.
Speaker 7: Yeah, it's hard to know what the catalyst is going
Speaker 7: to be.
Speaker 2: At this point.
Speaker 7: They've really talked about their product lineup, they've talked about
Speaker 7: their growth expectations. The multiple has really come in. It's
Speaker 7: i think one of the cheapest stocks in the mag seven.
Speaker 7: There is still a lot of questions about what is
Speaker 7: growth going to look like, you know, years out, what
Speaker 7: kind of deceleration could we see? And people are factoring that.
Speaker 7: But certainly when you talk to a lot of people,
Speaker 7: everybody still likes n Video. Everybody still thinks it's a
Speaker 7: very well run stock. They don't really see demand drawing
Speaker 7: up anytime soon. But it does seem like there's a
Speaker 7: certain amount of hesitancy. You know, it's almost like they've
Speaker 7: built up a tolerance for the kinds of games that
Speaker 7: we've seen in quarters past, where they would give some
Speaker 7: kind of big target and we'd see the stock jump
Speaker 7: twenty percent. It's a lot harder to imagine anything like
Speaker 7: that happening today.
Speaker 3: Roan, what else you're seeing on your desk this morning
Speaker 3: as it relates to GtC, Like, is there a broader
Speaker 3: market digestion of the two and a half hour speech
Speaker 3: that Jensen Wong gave yesterday?
Speaker 2: Yeah, two and a half hour.
Speaker 7: I did see a lot of people saying, you know,
Speaker 7: this could have been a lot shorter, so that was
Speaker 7: kind of funny. But beyond that, we are seeing a
Speaker 7: lot of people just digesting this. We saw some moves
Speaker 7: yesterday and IBM and optical companies and Intel, so there
Speaker 7: are a lot of companies. Like it hasn't quite been
Speaker 7: the same way that it was in years past, where
Speaker 7: they would mention a company and we'd see that stock rally.
Speaker 7: Everything is a bit more I muted right now. People
Speaker 7: are really trying to understand this and trying to understand
Speaker 7: where this trade goes from here. I've seen the sort
Speaker 7: of excitement that we saw really at the onset of
Speaker 7: the AI era.
Speaker 5: Most Roun Vasilica with all the technicals on trading this stock. Now,
Speaker 5: let's get you the fundamentals the market perspective. With Daniel Filling,
Speaker 5: his senior research analyst and portfolio manager over it, sounds capital, Daniel.
Speaker 5: I mean, let's talk about the demand for in videos products.
Speaker 5: You still see them as insatiable. We've got GPU CPU
Speaker 5: help you. What drove your optimism from yesterday's speech.
Speaker 8: Yes, so, I think the proof is in the pudding,
Speaker 8: I might say so when we look at sort of
Speaker 8: the labs and the revenue growth this year today, it
Speaker 8: has been massively accelerating. Right Zanthropics public's numbers went from
Speaker 8: fourteen to nineteen billion literally within a few weeks. And
Speaker 8: I think the crux of what is going on here
Speaker 8: is that agentic ai is here. It is as viral
Speaker 8: as zoom was at the beginning of COVID. And what
Speaker 8: I mean with that is that once somebody starts using it,
Speaker 8: it starts doing amazing things. Every colleague will follow over time,
Speaker 8: and we just don't have enough computer to really satiate this.
Speaker 9: And this is like a multi year process of sort.
Speaker 8: Of everybody is starting to use agentic ai within their
Speaker 8: own workflows. We have a billion people as knowledge workers,
Speaker 8: and we maybe have a few million agents as of today,
Speaker 8: so to me and to us, so this feels like
Speaker 8: sort of the iPhone moment of two thousand and seven
Speaker 8: and eight where everybody will want to buy an iPhone
Speaker 8: and everybody will want to run an agent, which means
Speaker 8: the numbers will likely continue to be much, much much
Speaker 8: bigger over time.
Speaker 5: And Jensen wants to be the infrastructure for that, but
Speaker 5: also not just the chips, but the operating system that
Speaker 5: goes with. Talk to us about openclore and how they're
Speaker 5: developing sort of their own operating system for that and
Speaker 5: for a gendki.
Speaker 9: Yeah, so it's very interesting.
Speaker 8: So Nvidia created the security framework to wrap these open
Speaker 8: source agents within an enterprise, right And why do they
Speaker 8: do that, right, Because then an agent will be able
Speaker 8: to access your calendar, your payment mechanisms, your documents, so
Speaker 8: it's got to be very, very safe and secure. So
Speaker 8: this is one of the key bottlenecks that people have
Speaker 8: to overcome to install all agents within the enterprise space.
Speaker 8: And then, as n Video always does, they sort of
Speaker 8: create their own markets. So they created this framework called
Speaker 8: Nemo Claw, which means that everybody, every enterprise in the
Speaker 8: world now can implement an agent locally on their devices,
Speaker 8: which means that this growth can really start to accelerate
Speaker 8: within the enterprise because the security is there.
Speaker 3: Daniel my Bloomberg Terminal tells me SANS Capital has about
Speaker 3: twenty million in video shares.
Speaker 2: Is that right?
Speaker 9: Yes, Ballparker.
Speaker 3: Let's go back to the number twenty twenty five. Through
Speaker 3: the end of calendar twenty twenty six five fiscal quarters
Speaker 3: was five hundred billion dollars of demand just for Blackwell
Speaker 3: and Reuben. I think that Bernstein were able to confirm
Speaker 3: with in VIDEOSCFO that the one trillion is also Blackwell
Speaker 3: and Rubin, including associated networking. But there was a bit
Speaker 3: that Jensen said in passing right after that sentence, which
Speaker 3: was we will be short. In other words, I think
Speaker 3: they're still massively supply constrained relative to demand. How are
Speaker 3: you interpreting that?
Speaker 9: Yeah, so I would agree. I think there's two things
Speaker 9: we need to see here.
Speaker 8: One, the hyperscaler revenue growth has to accelerate to get
Speaker 8: you know, to basically maybe get a market away from
Speaker 8: focusing on some sort of peak cycle concern and back
Speaker 8: to focusing on sort of this growth and tokens that
Speaker 8: Jensen is talking about. So once we start seeing hyper
Speaker 8: scalers really reaccelerate because they're buying all these chips, I
Speaker 8: think that concern goes away. And then the second piece
Speaker 8: is the demand is truly viral, right, so everybody.
Speaker 9: In the world.
Speaker 8: I think we'll start seeing these agents as a massive
Speaker 8: productivity tool. If your colleagues are five to ten times
Speaker 8: more productive than you, then you have to implement it
Speaker 8: as well. And we think the penetration of agents today
Speaker 8: is within single digits percentages, right, So as we go
Speaker 8: from single digits tow one hundred percent, it's a billion people.
Speaker 8: That means you need so much more canacter works.
Speaker 3: The associated data point with the one trillion bar chart
Speaker 3: was the pie chart that sixty percent of that demand
Speaker 3: is still coming from the hyperscalers. It wasn't that long
Speaker 3: ago that we were very focused on how much in
Speaker 3: Nvidia diversified away from the hyperscalers. It seems like that
Speaker 3: hyperscalar portions just going up.
Speaker 9: Yes and no.
Speaker 8: Right, So hyperscalers are by far the biggest purchases of
Speaker 8: these things. But there's also the neo clouds, which are
Speaker 8: investing heavily and actually also very interesting enough governments will
Speaker 8: be able to invest more.
Speaker 9: Going forward as well. And in Video is playing a
Speaker 9: key role in that, right.
Speaker 8: They're one of the leading open source providers of these models,
Speaker 8: which means as a government, you can take the open
Speaker 8: source nemotron model from Nvideo implemented locally, you can buy
Speaker 8: all the chips from Nvidia at the same time and
Speaker 8: sort of run your own local cloud within your country.
Speaker 8: So I think those three will be quite important, but
Speaker 8: hyperscalers will always be very important in all of us.
Speaker 5: Daniel, It's interesting that really where Jensen always tries to
Speaker 5: lean in is differentiation, the fact that he's got the
Speaker 5: right chip for the right workload at the right time,
Speaker 5: and that's why they started.
Speaker 6: To talk a lot more about inference and growth for example.
Speaker 5: But I'm interested about he usually pushes us forward a
Speaker 5: little bit more.
Speaker 6: Yes, we've already actually heard a.
Speaker 5: Lot about Vera Rubin, we know a lot about Blackwell,
Speaker 5: but why not even push us into feyn minimal. Why
Speaker 5: not hear about the next situation, because it's like every
Speaker 5: single year we've got a new architecture coming for us.
Speaker 8: Yes, I would actually say what happened yesterday is quiet
Speaker 8: revolution area. So Nvidia is the first company that we'll
Speaker 8: have two different types of chips for inference. So for
Speaker 8: calling on the AI models to get an answer, there's
Speaker 8: a new LPU chip which is super fast.
Speaker 9: Nobody else has that, and that's combined.
Speaker 8: Together with sort of the old sort of the generalized
Speaker 8: GPUs that they always had in the past. And then
Speaker 8: he did give an astonishing quote that LPU are the
Speaker 8: fast chips. There will be thirty five times more performant
Speaker 8: on the performance per work basis, and anything that was
Speaker 8: there before thirty five times. So I do think those
Speaker 8: jumps are just as good, maybe even better than in
Speaker 8: the past.
Speaker 3: Daniel, you clearly have a command of the spec right
Speaker 3: generations generation on the chips. I'll take it back to
Speaker 3: the stock. You know, Carr outlined where the cell side
Speaker 3: stands on this name. The question for you and for
Speaker 3: sans capital, do you buy more based on what you
Speaker 3: heard on stage in San Jose?
Speaker 9: Yes.
Speaker 8: So I think this event itself has been very reaffirming
Speaker 8: of the future, but the entire debate about the stock
Speaker 8: I think will be resolved truly by this. The market
Speaker 8: is looking at n Video as a business that is.
Speaker 9: At peak revenue and peak earnings.
Speaker 8: We disagree, and the reason why we disagree is everything
Speaker 8: we discussed before agentic.
Speaker 9: Ai is exploding in terms of demand.
Speaker 8: Now this all will get resolved once the free cash
Speaker 8: flow and the revenue growth of the buyers of these chips.
Speaker 8: Are you that sixty percent of the hyperskillers, for example,
Speaker 8: will start growing again, And whenever you start seeing this,
Speaker 8: this entire debate will be resolved because the market will
Speaker 8: say we're going from peak concerns to actually this is
Speaker 8: a very structural, durable growth trajectory the next five to
Speaker 8: ten years. I don't know precisely when this will be solved,
Speaker 8: but my guess is that we're going to see a
Speaker 8: significant acceleration hyper skill and revenue growth within the next
Speaker 8: one or two years because they're buying hundreds of billions
Speaker 8: of dollars of these chips. And then maybe equally important,
Speaker 8: the return or the payback periods off these chips is
Speaker 8: actually improved in the past twelve months because we're completely
Speaker 8: sold out, so basically you're buying a GPU and you're
Speaker 8: getting your money back in record time, which again then
Speaker 8: leads to the point of the hyper skills. We'll start
Speaker 8: seeing more growth, better free cash for growth, which should
Speaker 8: translate then hopefully to a positive outcome.
Speaker 9: Fund video.
Speaker 2: Daniel Pelling from SANSKAF, so, thank you very much.
Speaker 5: Let's check in on the sheds of Uber and Lyft
Speaker 5: right now in the green, as we'll see significantly, and
Speaker 5: that's after both companies announced deepening partnerships within Video, which
Speaker 5: is currently down three tens percent.
Speaker 2: Look.
Speaker 5: Uber says it plans to drull out a global fleet
Speaker 5: of in Vidia powered self driving vehicles across twenty eight.
Speaker 6: Cities by twenty twenty eight. Lift Meanwhile, we'll use in.
Speaker 5: Video's AI to strengthen machine learning systems across it's on
Speaker 5: operations for more blue most consumer apps and gig economy,
Speaker 5: reported Natalie Lang joints this. Now, what's interesting with Uber
Speaker 5: is that we've had some big, bold ambitions articulated back
Speaker 5: in February was it and one hundred thousand cars are
Speaker 5: going to be on the road in this partnership within video.
Speaker 6: But what's the timeline now looking like?
Speaker 10: So the updated timeline is that these vehicles will be
Speaker 10: scaled across twenty eight studies by twenty twenty eight, and
Speaker 10: that will really start in earnest in twenty twenty seven
Speaker 10: in Los Angeles and San Francisco.
Speaker 3: I mean, Uber is about a percentage point of having
Speaker 3: its best days since June of last year. So like
Speaker 3: at first You're like, this is a name check that's
Speaker 3: driving the stock, but really it's it's more updates to.
Speaker 2: An existing partnership.
Speaker 3: What about Lift then, I mean this really is by
Speaker 3: name association because it's more about internal use.
Speaker 10: Yeah, it's about internal use. But part of the release
Speaker 10: also mentions future possible deployments of n video powered vehicles
Speaker 10: on the Lift platform, but we don't have a lot
Speaker 10: of details on the manufacturer partner yet. Whereas for Uber,
Speaker 10: they have a couple of partnerships already announced, such as
Speaker 10: Lucid and neuro vehicles, wave vehicles or with Nissan that
Speaker 10: will that will be powered by video chips and technology.
Speaker 5: I think it sort of goes to what RBC's analyst
Speaker 5: Brad Erickson was spelling out that all of this news
Speaker 5: vindicates perhaps both Uber and Lift's role as platforms in
Speaker 5: the av era. We'd all been worried about competition, but
Speaker 5: actually they're the ones that can bring it all together.
Speaker 10: Right, Yeah, and in this further shows it's not just
Speaker 10: a demand generation platform. It's not just going to be
Speaker 10: an app that will allow people to hail a robotaxi.
Speaker 10: But here we can see that Uber wants to be
Speaker 10: the fleet partner. It wants to support some remote assistance
Speaker 10: operation for these fleets that they run themselves with partners
Speaker 10: as well.
Speaker 3: Blubos Natalie Lung across all the movies in the G
Speaker 3: economy space. After GtC Thank You, another deal announced Amidia's
Speaker 3: GtC conference. IBM will collaborate with the ship maker on
Speaker 3: an open source project aim to help enterprises use AI
Speaker 3: at scale. We sat down with IBM CEO Avin Krishna
Speaker 3: for more in the deal and on his take about
Speaker 3: the wider M and A landscape.
Speaker 2: Listen to this.
Speaker 11: I think the regulatory environment is definitely friendlier where we
Speaker 11: got this.
Speaker 2: Done in just under four months.
Speaker 11: Where you used to take a lot longer a few
Speaker 11: years back.
Speaker 6: If regulatory environment is friendlier, should we be doing more
Speaker 6: of it?
Speaker 5: Should there be more M and A particularly with some
Speaker 5: beaten up overall valuations of software companies at the moment.
Speaker 11: I'll just say watch the space, Oh watch.
Speaker 5: This space, okay, But where would you want to add
Speaker 5: on in this moment and what would make sense to
Speaker 5: be adding to your portfolio?
Speaker 11: So we are very focused hybrid class and AI and
Speaker 11: the intersection. The work we're doing together with Nvidia was
Speaker 11: a five times speed up, so five times, not five percent,
Speaker 11: not a little amount, but five times. So there we
Speaker 11: began to leverage the Nvidia GPUs together with some of
Speaker 11: their cudf or software, combining with our watsonex dot data
Speaker 11: and the example we used was our client Nestley, where
Speaker 11: together we managed to get that speed up across their
Speaker 11: massive amounts of data. And that really is important in
Speaker 11: that case, combining some of the technologies we work on
Speaker 11: also an open source with the Presta Presto data engine
Speaker 11: Nvidia and the example at NESLE. But then we're very
Speaker 11: excited we're going to do more work on that and
Speaker 11: then take it into the market and take it out
Speaker 11: to hundreds of clients from there.
Speaker 3: That was IBN CEO of Increationna Karen. Many more headlines
Speaker 3: out there there is.
Speaker 6: It's time to talk talking tech.
Speaker 5: First up, the UK is ramping up it push into
Speaker 5: quantum computing, committing well the one boy three billion dollars
Speaker 5: over the next four years.
Speaker 6: It's a major bet on a technology.
Speaker 5: Increasingly seen as critical to national security, future economic competitiveness
Speaker 5: for US. Don't expect memoryship shortages to ease anytime soon.
Speaker 6: Sk Heinex well, it says that the crunch could last
Speaker 6: another four to five years.
Speaker 5: Sk Group chairman that's Anthony J notes that while chipmakers
Speaker 5: have already.
Speaker 6: Ramped up, capacity may.
Speaker 5: Not be enough to satisfy demand until around twenty thirty.
Speaker 5: And Samsung, while is already pulling back on its Galaxy
Speaker 5: Z trifled just three months after the launch. So the
Speaker 5: South Korean company plans to halt sales and the nearly
Speaker 5: three thousand dollars device in its home market, and the
Speaker 5: US discontinuation expected to follow it.
Speaker 3: Okay, Coming up amid the chaos of the Iron conflict,
Speaker 3: Bitcoin is emerging as an unlikely oasis for some investors.
Speaker 2: We have more on that. Next.
Speaker 3: This is Bloomberg Tech, one of the world's best known
Speaker 3: investors in Nvidia rc CEO Kathy Woods, so she's optimistic
Speaker 3: about the return on investment from Frontier AI model providers.
Speaker 3: She spoke with Bloomberg's Anda Edwards in London.
Speaker 2: Take a listen.
Speaker 12: We are seeing a revenue generation exploding from the frontier
Speaker 12: model providers. Athropics annualized revenue run rate so ARR went
Speaker 12: from nine billion in December to nineteen billion today. So
Speaker 12: annualizing revenue at nineteen billion that's that's astonishing growth open
Speaker 12: AI from twenty to twenty five billion. The productivity that
Speaker 12: we are enjoying from these large language models is astonishing.
Speaker 12: Even within our own firm. I'm even former skeptics that
Speaker 12: this was going to amount to very much, you know,
Speaker 12: very New York skepticism. They're blown away by what they
Speaker 12: can do.
Speaker 13: Just to take a detail to geopolitics, because it's the
Speaker 13: I'm such a dominant market driver, and I wonder how.
Speaker 6: It influences your thinking.
Speaker 13: We are week three of a wall that's taking place
Speaker 13: in the Middle East. Many tech businesses, of course probably
Speaker 13: quite insulated from everything that is happening there. But I wonder,
Speaker 13: does it what rethinking? Does it prompt at arc? What
Speaker 13: shift in in focus or shift in strategy if any
Speaker 13: does this kind of thing.
Speaker 12: Prompt Yes, well, of course it depends how long term
Speaker 12: this is, and we are thinking it will be short term.
Speaker 12: We do have midterm elections this year and other considerations.
Speaker 12: But of course energy price is going up. Any supply
Speaker 12: shock to the extent it slows unit growth down, it
Speaker 12: will slow down the learning curves associated with various technologies.
Speaker 12: If this is you know, a month or two months
Speaker 12: it's not going to have a big impact at all
Speaker 12: if this is extended.
Speaker 2: COVID.
Speaker 12: We did not understand that the supply shock would reverberate
Speaker 12: for three years and that inflation would take off, and
Speaker 12: that monetary policy would accommodate the inflation the way it did.
Speaker 12: We're not in that situation right now. Monetary policy is
Speaker 12: not accommodating inflation. We're at four point three percent M
Speaker 12: two growth on a year over year basis, so nothing
Speaker 12: like the high twenties, low thirties in COVID.
Speaker 5: Oksen mkathy Wood there alongside Bloomberg's Anna Edwards, and let's
Speaker 5: talk more about the war in Iraq because it is
Speaker 5: fueling volatility across global markets. But cryptocurrencies I'm actually imagining
Speaker 5: as an unexpected bright spot of late Bitcoin and its.
Speaker 6: Peers of rally during these times geo.
Speaker 5: Political stress for more Bloemberg cross ass that reports as well.
Speaker 5: Lee joins us look on the day a little bit
Speaker 5: of pullback.
Speaker 6: Over the last few.
Speaker 5: Weeks, we've actually finally seen somewhat more buying or less parishless.
Speaker 6: I think it's both.
Speaker 14: Bitcoin has been resilient, it's now on a sixth week
Speaker 14: high and unlike it's other asset classes, gold equities or
Speaker 14: even other ASEC classes, it's seen a relative calm. The
Speaker 14: volatility of bitcoin has been kind of flat and really
Speaker 14: can point to it to many things. Maybe it's institutional buying,
Speaker 14: or maybe it's just a narrative. Although what a lot
Speaker 14: of my analysts are saying, at least when they talk
Speaker 14: to me, it's really more institutions, especially corporate treasuries. For
Speaker 14: every fall they absorb it and they buy more of
Speaker 14: the supply.
Speaker 3: There is a technical or i guess a better phrase
Speaker 3: rate transactional part of this story which you write about.
Speaker 3: The rally is driven in parts by traders unwinding their
Speaker 3: options bets.
Speaker 2: Could you explain that quickly?
Speaker 14: Is about this is the thing with bitcoin. It's interesting
Speaker 14: because more than the sentiment, it's really all about this mechanic.
Speaker 14: So we have traders unwinding their options bets, those that
Speaker 14: bet that bitcoin will continue to fall, and so when
Speaker 14: they underwind that, traders close out their negative positions.
Speaker 6: Bitcoin rallies.
Speaker 14: And we have about one point five billion dollars of
Speaker 14: bitcoin puts clustered around the sixty thousand level, and now
Speaker 14: we're around seventy five thousand level, which is again a
Speaker 14: six month high, so which is really impressive. And there
Speaker 14: are one point three billions of calls at seventy five thousand,
Speaker 14: So that's why you see bitcoin rally. But again it's
Speaker 14: more about narrative. We're moving beyond that now, it's about mechanics.
Speaker 14: I mean, you look at etfight. One and a half
Speaker 14: billion dollars have flown a month to day, so that's
Speaker 14: really a sign of confidence.
Speaker 3: Then Bloomberg Zazabellie, thank you, Carol. What you're looking at, well.
Speaker 5: I just want to look at what's happening in the
Speaker 5: world of stable coins because a bit of an acquisition
Speaker 5: has happened with MasterCard and b the NK. Look, this
Speaker 5: is a company that they're buying for one point eight
Speaker 5: billion dollars to really ride into the infrastructure play of
Speaker 5: stable coins. Remember Coinbase were looking at that asset and
Speaker 5: they decided to walk.
Speaker 6: Away when it cost them two billion. That were the
Speaker 6: reports at.
Speaker 3: Least, welcome back to Bloomberg Tech. One of the other
Speaker 3: stories out this morning is Qualcomm buying back another twenty
Speaker 3: billion dollars of shares, also boosting its dividend from eighty
Speaker 3: nine cents to ninety two cents. The story is pretty simple,
Speaker 3: as Qualcomm tells it, they want to bolster shareholder returns
Speaker 3: while also continuing to try and diversify this business from
Speaker 3: smartphone to things like automotive and increasingly and more recently
Speaker 3: data centered. That's what the CEA, Christiano amon is talking
Speaker 3: about in the statement, stock up two percent and then
Speaker 3: another check on in video we're now modestly lower four
Speaker 3: tenths of one percent. The peak of Monday session during
Speaker 3: genson One's keynote was a gain of five percent, which
Speaker 3: very quickly faded as the market interpreted the twenty twenty
Speaker 3: five to twenty twenty seven outlook or forecast of a
Speaker 3: trillion dollars of demand for its AI compute. We're now
Speaker 3: down half percentage.
Speaker 5: Point carac Yeah, and two and a half hours of
Speaker 5: speeching it would feel Gensenhan didn't actually only just forcus
Speaker 5: that trillion dollars, of course, said he also talked about
Speaker 5: what the company will need to get there, including more
Speaker 5: copper and optics capacity. That those comments really rattle shares
Speaker 5: the companies that make data center optical components. Let's talk
Speaker 5: about it overly most common rhinikey, we're off by one
Speaker 5: and a half percent on Canning and some other suppliers
Speaker 5: at the moment. But what's been interesting is Lamentum and Coherent.
Speaker 5: They've been running up into this announcement on the anticipation
Speaker 5: that we're all in on optics, and it looks as.
Speaker 6: Though there's a double barreled strategy.
Speaker 15: Yeah, totally. And it's so interesting because we see those
Speaker 15: run ups and then we just have one little comment
Speaker 15: from Jensen Wong and it just you know, unraveled right away.
Speaker 15: So yeah, I mean what he said was basically that
Speaker 15: you know, copper is still going to be or is
Speaker 15: going to remain important in these data center buildouts, which
Speaker 15: just I guess made some of the investors a little
Speaker 15: bit concerned about all of these you know, optics components.
Speaker 15: The thing that's interesting, a lot of analysts did say
Speaker 15: this morning in some notes following GtC that you know,
Speaker 15: both are definitely going to remain important in these buildouts
Speaker 15: going forward, So there's probably not huge cause for concern here.
Speaker 15: And we did see some some of those stocks were
Speaker 15: covered today. I think Lumentum did kind of go back up,
Speaker 15: and so is in positive territory.
Speaker 3: Now common what's the experience of a GtC like for
Speaker 3: the equities team. Every single time on stage there was
Speaker 3: a name check of any given company, you'd notice a
Speaker 3: little tick higher in some of those stocks, which were
Speaker 3: the ones of substance and which were just literally name checks.
Speaker 15: Yeah, I mean it ends up being such a like
Speaker 15: a flurry of excitement as we're all rushing to you know,
Speaker 15: send headlines and watch these shares move. I mean we
Speaker 15: did see some things, you know, move quite materially, you know,
Speaker 15: outside of Lumentum Coherent. We saw shares of Uber and
Speaker 15: Lyft jump on partnerships that were announced. IBM shares also jumped,
Speaker 15: and then there were some other little, smaller ones where
Speaker 15: things quickly faded. I mean, one that was actually kind
Speaker 15: of interesting is Nvidia itself had a very big spike,
Speaker 15: you know, around that one trillion figure, and then actually
Speaker 15: paired most of those gains sort of as the market
Speaker 15: digested it. But yeah, overall, we really are seeing again
Speaker 15: that you know, Jensen's comments have the ability to move markets,
Speaker 15: to move these stocks, and it actually is a little
Speaker 15: bit of a flip from last year. We didn't see
Speaker 15: a ton of movement around GtC investors were really sort
Speaker 15: of concerned about the macro and you know, had a
Speaker 15: lot of AI skepticism.
Speaker 6: So seeing a little bit of.
Speaker 15: A trend kind of maybe back towards normal this year
Speaker 15: where you know, they have the power to move stocks
Speaker 15: of other companies.
Speaker 3: Bloomber's Cullen Rhinike, thank you very much. Let's stick with
Speaker 3: what's going on broader markets today, particularly for tech and
Speaker 3: bringing Carosh Life, chief market strategists at BEMO Wealth Management,
Speaker 3: and on a very serious note, like with everything going on,
Speaker 3: you know, the war in Iran, considerations around trade, a
Speaker 3: number of headlines relayings trade this morning, even a decline
Speaker 3: of four tenths of a percent for Nvidia. It's the
Speaker 3: second biggest points drag at the index level for then
Speaker 3: as that one hundred, Carol, you know how closely were
Speaker 3: you watching GtC of the last twenty four hours for
Speaker 3: some macro level impact.
Speaker 16: I think not necessarily a macro level impact. And it's
Speaker 16: really important to zoom out from what's going on in
Speaker 16: these day to day basises and try to think intermediate,
Speaker 16: longer term. Clearly markets are trying to get beyond that,
Speaker 16: and I think it's one of the reasons why you've
Speaker 16: seen the aggregate indexes hold in so tightly because realistically,
Speaker 16: given all the news we've had since basically the first
Speaker 16: weekend before January, we've had several different wars, conflicts started here,
Speaker 16: lots of stuff that have hit the markets, and yet
Speaker 16: the aggregate averages are still hugging that close to all
Speaker 16: time highs even though there's been a lot of turbulence underneath.
Speaker 16: But I think that indicative of the fact that people
Speaker 16: are really leaning into You've still got growth stories going on.
Speaker 16: You had GtC reaffirm that growth story, I mean a
Speaker 16: trillion dollars if you will out over the next couple
Speaker 16: of years, and so you've got a lot of momentum underneath,
Speaker 16: and investors don't want to be out of the market
Speaker 16: when some of that macro clears.
Speaker 2: I find that interesting.
Speaker 3: You know, as Jensen Wong tells it, the global economy
Speaker 3: is in the early phase of a transition spanning agentic
Speaker 3: AI through to robotics in the physical AI space.
Speaker 2: You know, if you've.
Speaker 3: Started classic economics, how does one prepare for that as
Speaker 3: an investor to understand where in that transition the global
Speaker 3: economy is?
Speaker 16: Well, I think one of the things you do is
Speaker 16: understand we are in the middle of a transition. They
Speaker 16: tend to be really muddy where you're in the very
Speaker 16: short term or the new phases of a technology. I
Speaker 16: was rolling it back thinking to when we first got
Speaker 16: Excel and word perfect in some of the other early software,
Speaker 16: and everyone was trying to figure out how do I
Speaker 16: use it?
Speaker 10: Do I have to.
Speaker 16: Put everything into a spreadsheet or just some things into
Speaker 16: a spreadsheet? And when you have that sort of reconfiguration,
Speaker 16: if you will, it takes some period of time to
Speaker 16: figure out what the impacts are. But rolling it back
Speaker 16: and looking at company after company, country after country reinvesting
Speaker 16: or investing for the first time in a long time
Speaker 16: in some of those really important infrastructure and capital investments,
Speaker 16: and that has a long, long, live and long tail
Speaker 16: to it, if you will. But it's also important to
Speaker 16: remember from economics one oh one that a lot of
Speaker 16: the economic stats we have were meant to measure a
Speaker 16: very different society than we have now or are emerging too,
Speaker 16: and so that'll be part of the challenge. So as investors,
Speaker 16: I think part of it is stay diversified, stay long,
Speaker 16: lean into it, and don't get too don't hyperventilate too
Speaker 16: much about day to day activity.
Speaker 5: Should you be leaning more into the compute buildout, the
Speaker 5: AI infrastructure build out.
Speaker 6: That's what's worked for the last few years.
Speaker 5: And I'm looking at Nevies today for example, it's selling
Speaker 5: well convertible debt to be able to continue to build out.
Speaker 5: It's so neocloud offering. We know it's going to deal
Speaker 5: with meta. Should you belong that space?
Speaker 16: Well, I think a piece of it is to understand
Speaker 16: not only the buildout, but to look far and wide
Speaker 16: for those companies that are leaning into using the new
Speaker 16: technology as well, because there's lots of different applications, different
Speaker 16: places that it has the chance to supplement if you will,
Speaker 16: not necessarily replace everybody. But and so where are those
Speaker 16: leaders that are encouraging in their employees, if you will,
Speaker 16: and prepping their employees to be able to lean in
Speaker 16: and those new technology.
Speaker 5: I mean they've got to lean in because many of
Speaker 5: them are going to be forced out. Look, there's another
Speaker 5: headline in your space of a banking NUDEA, which is
Speaker 5: a NAUDIC bank saying they're gonna be laying off some
Speaker 5: five percent of staff because of AI productivity.
Speaker 6: Now you can call it AI washing. But when someone.
Speaker 5: Like Jack Dorsey is laying off forty percent of staff,
Speaker 5: and he's thinking he can do that because of AI.
Speaker 5: We just going to see more and more of that
Speaker 5: impacting the labor force.
Speaker 16: I think it's interesting because I do think there's a
Speaker 16: a if you will have AI washing to some of it.
Speaker 16: But there's also the issue that these leaders are looking
Speaker 16: for people in their organizations who and they're giving them
Speaker 16: seats at the table, the ones that are rolling up
Speaker 16: their sleeves, getting messy trying this stuff out and figuring
Speaker 16: it out. But also there was a reporter out recently
Speaker 16: that talked about the bulk of the space being done
Speaker 16: in AI is done on the technology, not on teaching
Speaker 16: people how to use it. So there's a piece of
Speaker 16: it where we have to create an environment where it's
Speaker 16: okay for people to experiment with it. We're not going
Speaker 16: to replace overnight some of these macro systems, and especially
Speaker 16: in highly regulated industries like banking, it's hard to believe
Speaker 16: that you're necessarily going to totally displace an old software
Speaker 16: and allow agentic AI to take over all of it.
Speaker 16: But it is going to supplement what each of us.
Speaker 9: Are doing and how we're doing it.
Speaker 16: And you go back and look just in my business
Speaker 16: in analysis, where we started with hand plotted charts and
Speaker 16: hand calculated moving averages to deploying new technology all the
Speaker 16: way along makes me a lot more productive day to day.
Speaker 16: And I think that's what companies are looking for. But
Speaker 16: each of us individually is going to have to figure
Speaker 16: out how to lean into that.
Speaker 5: Too well, said Cowash Life, Chief Market Strutches. That be
Speaker 5: my wealth management, who is appreciate your time. Let's talk
Speaker 5: about that disrupt little bit more Now for labor, because China.
Speaker 6: It faces a key test.
Speaker 5: It's the nation's AI boom really reshaped industries while putting
Speaker 5: millions of jobs at risk.
Speaker 6: Now analysts worn that up.
Speaker 5: To one hundred and forty two million urban jobs could
Speaker 5: vanish by twenty forty nine due to rapid AI driven automation.
Speaker 6: China correspondent Min Minla reports in Beijing.
Speaker 2: Juju Hi.
Speaker 17: You know financial tribium that almost looks like me, but
Speaker 17: it's not. It's an AI generated video based on a
Speaker 17: single screenshot. Tools from Earli, Bubba, ten Cent, Kwaisho are
Speaker 17: making AI video generation accessible to millions, sometimes for free.
Speaker 18: Our company, I can't imagine without AI, how can we survive?
Speaker 6: At the beginning.
Speaker 18: Without AI, I don't think our game can actually be
Speaker 18: done in one year.
Speaker 17: It's brought huge productivity gains for this game developer, but
Speaker 17: also raised alarms in the entertainment industry. Disney and Paramount
Speaker 17: to have accused by dons of IP infringement after its
Speaker 17: video generator produced near cinematic scenes from just a text prompt.
Speaker 17: The fear is that AI could replace not just mundane tasks,
Speaker 17: but jobs across creative industries.
Speaker 18: The painting, if we use like labor works, it's like
Speaker 18: two thousands to four thousand for one piece, but with AI,
Speaker 18: we only use like probably two R and B for
Speaker 18: one piece.
Speaker 17: For policymakers, the challenge is balancing growth will.
Speaker 9: Nurture emerging industries and industries of the.
Speaker 18: Future with disruption jingle jinin The rapid development of AI
Speaker 18: is having a profound impact on employment.
Speaker 17: The China Economic Journal projects that more than thirty percent
Speaker 17: of urban jobs in China could be lost to AI
Speaker 17: by twenty forty nine. That's one hundred and forty two
Speaker 17: million jobs. That's a scenario that could threaten social stability.
Speaker 17: Beijing is aiming to create another twelve million jobs this
Speaker 17: year with just as many graduates set to enter an
Speaker 17: already select labor market.
Speaker 19: In finance and it if they're warn't for these kind
Speaker 19: of regulatory barriers, about thirty to forty percent of the
Speaker 19: job could have been lost right away. If you're thinking
Speaker 19: about the automation AI replacement of a junior rows, it's
Speaker 19: already happening massively in China.
Speaker 17: That leads Seating Ping's government with a dilemma. China counterford
Speaker 17: to fall behind, and it's tachways with the United States.
Speaker 17: But the implications of a tech revolution are far from clear.
Speaker 20: If we let AI replace the jobs without taxing the
Speaker 20: AI appropriately, then then it can really get to the
Speaker 20: core of the consumer economy. And we got to think
Speaker 20: about the sort of tax policy that is targeted specifically
Speaker 20: at what is driving those job job losses.
Speaker 19: It will be in the regulatory framework at some point.
Speaker 19: I just don't see it as a choice yet because
Speaker 19: we're at the very early stage of promoting the application
Speaker 19: of AI. So the great area must be caps actually
Speaker 19: by a very wide margin.
Speaker 17: Last de State Media published a landmark arbitration case in
Speaker 17: Beijing that sets some early guard rails. Dismissing an employee
Speaker 17: because of AI is illegal because it's a business decision
Speaker 17: for profit, not an uncontrollable event. That means companies must
Speaker 17: prioritize retraining and reassignment before dismissing an employee. But for now,
Speaker 17: all signs that the two sessions suggest the government is
Speaker 17: going all in on tech at the risk of leaving
Speaker 17: some people behind.
Speaker 2: That was Bloomberg's mem in Lau.
Speaker 3: Coming up, Gecko Robotics makes a deal with the US
Speaker 3: Navy to monitor and maintain it's warships. We speak with
Speaker 3: CEO Jake Lucerian. That's next. This is Bloomberg Tech.
Speaker 6: US government.
Speaker 5: Well, it's stepping up its use of AI to monitor aging,
Speaker 5: infrastructure and modernized military systems and a new push. Gecko
Speaker 5: Robotics has announced seventy one million dollar partnership with the
Speaker 5: US Navy, deploying its AI powered robots to assess the
Speaker 5: condition the readiness of American warships joining US now. Jake
Speaker 5: lucis Arian, Gecko Robotics CEO and co founder Jake can
Speaker 5: you measure what your robots are able to achieve in
Speaker 5: terms of real term military readiness?
Speaker 21: We're all about measuring the real information and details on
Speaker 21: the ground, and so we swarm our robots all over
Speaker 21: these ships as you see in the videos, and what
Speaker 21: they're doing is they're gathering ground truth and information that
Speaker 21: would typically take three or four months to be done
Speaker 21: and gather one one millionth of the amount of information
Speaker 21: data set that is not filtered to any source of
Speaker 21: truth and software that could be gathered and then and
Speaker 21: then in perpetuity be evaluated to help with planning into
Speaker 21: the future. What we're providing to the Navy, and kudos
Speaker 21: to the Navy for adopting this technology, you know, in
Speaker 21: a way that's giving them an advantage over others that
Speaker 21: deal with the same problem every single day. They're taking
Speaker 21: very seriously this demands of getting to eighty percent readiness
Speaker 21: of their fleets and to collect all this information data
Speaker 21: that can help perpetuate goodness both now saving three to
Speaker 21: four months of cycle time in maintenance cycles, but also
Speaker 21: to the future to plan smarter so that we have
Speaker 21: less and less days of downtime for the vessels.
Speaker 5: I mean, you're seeing them flying, we're seeing them climbing,
Speaker 5: we're seeing the hardware, but you're also about the interpretation
Speaker 5: of the data as well. How are you developing your
Speaker 5: own models to ensure that the right information is getting
Speaker 5: to the end user.
Speaker 2: Yeah, well, it's this example. And when we say at.
Speaker 21: The company, a lot is if it's not ready, it
Speaker 21: doesn't count. And that's very important as it relates to
Speaker 21: the readiness of our fleets, as it relates to the
Speaker 21: Turing conflict, what's going on right now in the Middle East,
Speaker 21: and then also on the Pacific side. And you know,
Speaker 21: we've been doing this for thirteen years or sort of
Speaker 21: the company of a college dorm with this idea of
Speaker 21: what if you could diagnose.
Speaker 2: The health of the built world?
Speaker 21: You know, what could that enable as it relates to
Speaker 21: predicting what the future structures, how they should be built,
Speaker 21: and then what we're going to what's going to occur,
Speaker 21: and how to prevent that from occurring. And so we've
Speaker 21: been improving these models and believing that if you can
Speaker 21: gather the information in data using robots, turn atoms and
Speaker 21: the bits, you can have such an incredible advantage as
Speaker 21: related to how to make infrastructure smarter, make it, make
Speaker 21: it more efficiently, and make even new structures. And so
Speaker 21: these models are all being fed into a central source
Speaker 21: of truth, a digital thread for critical infrastructure called Candileer.
Speaker 2: Jake youa.
Speaker 3: You presented basically at the Winning the AI Race summer
Speaker 3: in DC last year, which was very much focused on
Speaker 3: this administration's policy platforms for AI. I'm curious in the
Speaker 3: time that that since past you've done a deal with
Speaker 3: the Navy. You got it done, and I wonder what
Speaker 3: that's like, you know, to see a project through to
Speaker 3: fruition with some of the military apparatus of this nation.
Speaker 21: It is so exciting and so incredible to see the
Speaker 21: Navy being a leader in the world as relates to
Speaker 21: giving our warfighters an advantage and advantage that no other
Speaker 21: navy around the world, including China, has, and that's the
Speaker 21: ability to have this incredible advantage with robotics in AI
Speaker 21: to speed up how quickly we're gathering information and then
Speaker 21: to deploying it. We're not just doing that, you know,
Speaker 21: for the US government, We're doing that for the largest
Speaker 21: companies in the world, companies like ADOC ADNOC, who's giving
Speaker 21: this AI and robotics native approach. It's such an incredibly
Speaker 21: advanced way. We're bringing that same technology and beyond to
Speaker 21: the Navy and ensuring as well that it's not just
Speaker 21: about talk about five years or ten years where you're
Speaker 21: going to see autonomous systems and robots and AI affecting
Speaker 21: the Navy in our and helping our warfighters. No, this
Speaker 21: is actually happening today, and that is something that the
Speaker 21: administration cares deeply about. That's something that Secretary Phalan of
Speaker 21: the Navy cares deeply about. If you want to have
Speaker 21: the best Navy in the world, the best assets and
Speaker 21: programs in the world, most robust, you need impact today
Speaker 21: and as you're seeing today, matters, and it matters more
Speaker 21: than ever.
Speaker 3: Right, Jake, what is your core competence at Gecko Robotics.
Speaker 3: Are you good at hardware or are you good at software?
Speaker 21: We're good at building robotics systems that go out and
Speaker 21: gather information and data sets that no one want knew
Speaker 21: how to ever capture before, but then to interpreting it
Speaker 21: to allow for decisions to be made, to give you
Speaker 21: advantages that can speed up times to bring critical infrastructure
Speaker 21: that's you know, constantly delayed, constantly over budget because of
Speaker 21: how hard it is to find out where are things broken,
Speaker 21: how to fix it. The robots are able to gather
Speaker 21: all the information, not how to destroy the infrastructure and
Speaker 21: assets to gather it and then provide the ability to
Speaker 21: optimize where to make the repairs, the replacements, and then
Speaker 21: into the future how to plan for that to potentially
Speaker 21: never even have a shutdown. You know, we've been able
Speaker 21: to prevent shutdowns at oil and gas facilities that were
Speaker 21: going to occur that would have cause big explosions, and
Speaker 21: for the Navy be able to accelerate and give them
Speaker 21: advantages in terms of how to get our ships at
Speaker 21: a dry dock and defending our values. And so we're
Speaker 21: just so incredibly proud to be serving the Navy in
Speaker 21: this way, and just kudos to the Navy for taking
Speaker 21: a big, bold step as related to giving us this advantage.
Speaker 3: J Luceerrarian of Gecko Robotics great to heavy back on
Speaker 3: the show.
Speaker 2: Thank you very much,