Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and Eva Low in San Francisco.
Speaker 2: This is Bloomberg Tech coming up.
Speaker 3: China tightens its grip on AI, this time targeting overseas
Speaker 3: travel by top AI professionals.
Speaker 4: Plus how big banks are looking to hire more AI
Speaker 4: specialists and shrink traditional banking roles.
Speaker 3: And we'll look at the tech IPO landscape as SpaceX
Speaker 3: kicks off an IPO bonanza and.
Speaker 4: Quite the timing for any sort of IPO right now,
Speaker 4: because a new record high once again ed it's risk
Speaker 4: one and that means we're buying semiconductors, we're buying hardware.
Speaker 4: Then how's that one hundred and a new record high?
Speaker 4: We're at one point on an in today basis, That is,
Speaker 4: we're looking at the Semiconductor index on fire up five
Speaker 4: percent for the socks. Why dig into some of the
Speaker 4: individual movers. We're seeing Micron and a new record high
Speaker 4: as we see analysts or pile in an extraordinary uplift
Speaker 4: from ubs in terms of a price target that more
Speaker 4: than doubles and where it's currently training. We're up seventeen
Speaker 4: percent for Micron. But also you're shining a light what's
Speaker 4: happening with Qualcom getting a real boost as well as
Speaker 4: we start to see new buyers of its A six.
Speaker 3: It's all about the hardware ed from Asia to the
Speaker 3: US session. There's a massive rally in ship stocks. Also
Speaker 3: because of a breakthrough in technology. China's Huawei says it
Speaker 3: has a new technique, logic folding, that changes how a
Speaker 3: signal passes through a transistor, so you can do away
Speaker 3: with extreme miniaturization. You don't have to worry about the
Speaker 3: limits of extreme ultraviolet lithography. It's a new design but
Speaker 3: also method of chip manufacturing, and that has really sent
Speaker 3: all kinds of chip stocks or supply chain exposure stocks
Speaker 3: sending much higher. Here's the catch, this is a technology
Speaker 3: that's many years away. Let's get more with Bloomberg Senior
Speaker 3: Tech editor Mike Shephard. You know, so interesting because Huawei
Speaker 3: is coming out saying, well, we've got something here technology wise,
Speaker 3: but you're going to have to wait until the next
Speaker 3: decade to see it. In a race with TESMC give
Speaker 3: us more detail.
Speaker 5: Well, they are promising something that people have been wondering about.
Speaker 5: What would be the next version of War's law, and
Speaker 5: that is the idea that every two years you would
Speaker 5: see a doubling of the number of transistors that you
Speaker 5: could fit on a tiny chip. And in recent years
Speaker 5: that has started to slow because the chips have just
Speaker 5: gotten so small and so much harder to produce and
Speaker 5: really requiring such sophisticated machinery like the kind of EUV
Speaker 5: machines produced by ASML, the Dutch company that really has
Speaker 5: a stranglehold on that, and that has really been a bottleneck,
Speaker 5: especially for China, which faces export controls on being able
Speaker 5: to acquire that technology. So their solution innovate around the problem,
Speaker 5: at least in the view of Huawei. They are promising
Speaker 5: this new method and even a new law to define
Speaker 5: how to pack all those transistors onto a chip, and
Speaker 5: they are calling it Tao's law and really trying to
Speaker 5: forge their own path. Now. The cautionary note, of course, ED,
Speaker 5: is that this is all theoretical. Right now, they say
Speaker 5: that in the Cure inship, the new line coming up soon.
Speaker 5: We may see signs of it, but it may take years,
Speaker 5: and ED can they produce it at a yield that
Speaker 5: produces a profit for them?
Speaker 4: But the focus clearly is on owning their own supply
Speaker 4: chain controlling it, and they're also looking to control their
Speaker 4: own talent chain. It feels as though as well might
Speaker 4: more limitations on those building AI startups in the country.
Speaker 5: Kara, We are seeing this competition between the US and
Speaker 5: China for leadership and artificial intelligence and advanced technology, not
Speaker 5: only in the chip and software arena, but in the
Speaker 5: people arena and sphere as well. And what China is
Speaker 5: doing is saying to its AI research is that look,
Speaker 5: if you want to go outside the country for leisure,
Speaker 5: for business, you have to come to us first, come
Speaker 5: to the authorities for permission. Now, for years they have
Speaker 5: required this sort of okay ahead of any sort of
Speaker 5: travel for college researchers, for nuclear scientists, and even executives
Speaker 5: that state owned firms. But now they are extending this
Speaker 5: reach into the private sector and specifically for companies that
Speaker 5: deal with artificial intelligence, which just like the US, is
Speaker 5: the clear for China it is a national strategic priority,
Speaker 5: and that also includes the personnel who produce it, the researchers,
Speaker 5: the scientists, even the executives and founders. We don't know
Speaker 5: how restrictive Caro this will be. Is it an automatic note?
Speaker 5: Does that mean you can never go to the US?
Speaker 5: Is it more pro former rubber stamp? We just want
Speaker 5: to know where you are. But nonetheless it is a
Speaker 5: signal that they want to keep those resources, those crown
Speaker 5: jewels of knowledge there at.
Speaker 4: Home, particularly after we see the investigation into the MANUS
Speaker 4: purchase by Meta as well bloembugs Mike Shepherd always across
Speaker 4: all things geopolitics. We want to now get you all
Speaker 4: across the markets more broadly, IPEC with US Swiss quote
Speaker 4: see market analysts. Look, we are seeing once again a
Speaker 4: furious rally, whether it be in hardware in China, whether
Speaker 4: it be the US names as well.
Speaker 6: Kind of continued, Well, that's a billion dollar question. I
Speaker 6: guess we have seen this AI optimism take over again
Speaker 6: since especially three months the RAN wars started, as investors
Speaker 6: just try to forget about the AR problems they're funding
Speaker 6: the financing of new debt on debt and the AR restrictions,
Speaker 6: and then the competition and then supply chain problems, and
Speaker 6: decided to just focus on the potential. And hardware is
Speaker 6: at the very center of this huge potential for AI adoption.
Speaker 7: The demand is strong.
Speaker 6: We know that the results from the technology companies, especially
Speaker 6: in the US, have come in better than expected. They
Speaker 6: beat the Uestimus and it looks like, yes, this could continue.
Speaker 6: But on well there are some problems and that risks
Speaker 6: that are building today. One the Macray climbing set up,
Speaker 6: the mac Ray climb backshop is not necessarily ideal. The
Speaker 6: rising borrowing costs our at risk. The other riskers the
Speaker 6: energy crisis, the supply chain problems and the competition.
Speaker 3: Epek our Markets team are writing that stocks arising because
Speaker 3: of Iran piece hopes. But I'm looking at the S
Speaker 3: and P five hundred information technology massively outperforming the Nazak
Speaker 3: one hundred, pushing records. Semiconductors are going absolutely bonkers because.
Speaker 2: Of the Huawei report.
Speaker 3: I think you just heard shep give the details of
Speaker 3: Huawei's new chip manufacturing process. What's happening right now in
Speaker 3: tech well.
Speaker 6: In tech well tech has become one major driver of
Speaker 6: the global markets. It's not only the US, but we
Speaker 6: also see it in the emerging markets, with Korean memoryship makers,
Speaker 6: for example, really carrying this rally almost alone on their
Speaker 6: own shoulders to all time higher levels, whereas the rest
Speaker 6: of the sectors are struggling. They're struggling with an unideal
Speaker 6: macracline backdop rising those rising borrowing costs and supply chain risks.
Speaker 6: So what we see today is that the market bread
Speaker 6: between the technology sector and the rest is increasing in
Speaker 6: a way that when we look at the MSCI markets
Speaker 6: while the rest of the market is if you just
Speaker 6: stripped out s kah Nich, sums On or TSMC, for example,
Speaker 6: while they have fallen to the levels that we have
Speaker 6: last seen during the April death last year, past a
Speaker 6: Liberation Day.
Speaker 4: This hardware focus and momentum has really made certain names
Speaker 4: start to outshine here in the US.
Speaker 7: I'm all eyes on Micron.
Speaker 4: We actually spoke with the CEO of Micron on Friday impact.
Speaker 7: Just listen to what you said about the memory side
Speaker 7: of the business.
Speaker 8: Of course, the demand for memory has really searched, and
Speaker 8: that is because of the importance and the value and
Speaker 8: the capability of memory that is really essential for all
Speaker 8: advanced systems. And yes there is a shortage, but Micron
Speaker 8: is working hard to increase supply through these projects here
Speaker 8: in americaa here in Manassa's Virginia, Boise and New York
Speaker 8: and we see this shortage continuing beyond, well beyond twenty
Speaker 8: twenty six time frame.
Speaker 4: In fact, this is an industry that we knew for
Speaker 4: booms and busts, but the moment it's just on a
Speaker 4: one way boom trajectory. Do you think that really is
Speaker 4: the right way for the.
Speaker 7: Market to be seeing it right now?
Speaker 6: Well, obviously there is never just one way, especially when
Speaker 6: we're looking at the market prices, they are parabolic, so
Speaker 6: in terms of technical levels or in terms of what
Speaker 6: happened in the past, we do expect a correction because
Speaker 6: the valuations have done absolutely ballistic, and we know that
Speaker 6: there are boom and bus circles in this industry. It
Speaker 6: is just that AI and the demand for AI hardware
Speaker 6: will probably make these cycles a little bit longer than
Speaker 6: they have been before, but they're not going to just
Speaker 6: you know, make them an existent anymore. So I think
Speaker 6: that there is a risk that all of those who
Speaker 6: are predicting that there will be no bus cycles anymore
Speaker 6: in the memories of industry are probably mistaken.
Speaker 3: Eupe Oscar desh Gayer Swiss quote all across the news
Speaker 3: and the markets.
Speaker 2: Thank you so much.
Speaker 3: Now, coming up, we're going to hear a lot more
Speaker 3: from Micron CEO on demand for memory and what they're
Speaker 3: doing to adjust the supply constraint.
Speaker 2: That's next. This is Bloomberg Tech.
Speaker 3: Qual Com reached the deal with TikTok owner bike Dance
Speaker 3: to supply chips for AI data centers. That's, according to sources,
Speaker 3: marking a key win for a company trying to expand
Speaker 3: from smartphone processes into AI infrastructure. Bloomberg's Chip reported Inking
Speaker 3: just broke that story. The markets responding qual come up
Speaker 3: seven percent, a fresh record high.
Speaker 2: You remember when Christiano was.
Speaker 3: On the show a few weeks ago and he wouldn't
Speaker 3: say who the customer was. He was saying, Oh, it's
Speaker 3: a hyperscaler, it's byte Dance.
Speaker 9: This is according to our reporting, Yes, and we believe
Speaker 9: there's more to come, that this is kind of a
Speaker 9: breakthrough for them in at least one area of this market.
Speaker 9: And according to our reporting, we should expect more to
Speaker 9: come on the customer list.
Speaker 4: And it's millions of a six And so where and
Speaker 4: why does a company like byte Dance come to Qualcom
Speaker 4: at this moment?
Speaker 9: Yeah, I mean Qualcom has a long history in the
Speaker 9: chip industry. It's very skilled very It was a pioneer
Speaker 9: of something on the sc system on chips, which is
Speaker 9: putting a lot of components together on one piece of silicon,
Speaker 9: and it's done very well in very high volume market.
Speaker 9: So obviously it has a lot of skills. Though it
Speaker 9: would be useful if you are trying to get your
Speaker 9: own solutions to market and volume quickly.
Speaker 3: So this is what's interesting about the A six part right.
Speaker 3: Qualcon is a fabulous chip maker, but essentially instead of
Speaker 3: having its chip, it's doing it on behalf of a
Speaker 3: customer kind of how broadcomes done for various people, for
Speaker 3: example TPU.
Speaker 2: How does that work?
Speaker 9: Yeah, I mean the way it looks at the moment,
Speaker 9: and we'll get more when Qualcomm does its analyst day
Speaker 9: coming up this summer. They're pursuing two strategies. Their own chips,
Speaker 9: their own processors, so rivals to in videos products if
Speaker 9: you like, but also the broadcrom strategy as well, which is, look,
Speaker 9: you've got your ideas, you've got your designs, but you
Speaker 9: don't really know quite how to get this done in
Speaker 9: the kind of volumes that you need to do. Give
Speaker 9: it to UDS, we'll get it across the line for you.
Speaker 9: That's kind of the role that they're looking at.
Speaker 7: Here thinking on all things qual Com. We thank you
Speaker 7: so much.
Speaker 4: We've got plenty more on chips because shares a Micron
Speaker 4: absolutely spiking today. It is now a one trillion dollar
Speaker 4: company if it holds this almost seventeen percent game UBS
Speaker 4: actually raised its price target on the memory chip, make
Speaker 4: it to.
Speaker 7: A street high.
Speaker 4: I've get this and twenty five dollars from five hundred
Speaker 4: and thirty five, and the new target implies the company's
Speaker 4: valuation could reach one point eight trillion now. On Friday,
Speaker 4: Blue Moost Tyler Kendles sat down with Micron President and
Speaker 4: CEO san Jamirotra about the company's expansion of chip production.
Speaker 7: When here in the United States, take a listen.
Speaker 8: Memory today is absolutely key across all industries that have
Speaker 8: electronic systems, and Micron is of course investing in Boise,
Speaker 8: Idaho building our leading ASH fab that's for leading ash
Speaker 8: memory that goes into smartphones, PC's servers, and that leading
Speaker 8: edge memory in Boise, Idaho will bring first wafers out
Speaker 8: middle of next year and then ramp up from there on.
Speaker 8: We'll have a second fab in Boise, Idaho soon to
Speaker 8: follow that start first wave first by end of twenty
Speaker 8: twenty eight there and then we have production planned for Syracuse,
Speaker 8: New York area, where we will build over time a
Speaker 8: mega cluster or four fabs. And you can see two
Speaker 8: hundred billion dollars of investments that Micron is making here
Speaker 8: in America to bring these long life cycle production that
Speaker 8: will be managed here in Manassas, Virginia, along with production
Speaker 8: in Boise, Idaho, and Syracuse, New York. And that will
Speaker 8: bring Micron's total production over the course of about next
Speaker 8: ten years as we ramp up all these multiple fabs
Speaker 8: to about forty percent of our production. By comparison, it
Speaker 8: is about ten percent today and all of that ten
Speaker 8: percent comes from this site here in Manassas for Micron,
Speaker 8: and this will totally our investments massive investments in long
Speaker 8: life cycle technology nodes as well as leading as technology
Speaker 8: nodes to serve these vast markets that are really surging
Speaker 8: in demand driven by AI. Micron is going to be
Speaker 8: bringing those investments that's semiconductive manufacturing and in the process
Speaker 8: create ninety thousand new jobs here in the US as well.
Speaker 5: Well.
Speaker 10: On this point of demand and how this investment is
Speaker 10: seeking to help breach that growing demand. I'm wondering, how
Speaker 10: long do you expect the shortage of memory chips to last?
Speaker 10: When can we expect an easy.
Speaker 8: Of course, the demand for memory has really searched, and
Speaker 8: that is because of the importance and the value and
Speaker 8: the capability of memory that is really essential for all
Speaker 8: advanced systems. And yes, there is a shortage, but Micron
Speaker 8: is working hard to increase supply through these projects here
Speaker 8: in America, here in Manassa's Virginia, Boise and New York,
Speaker 8: and we see this shortage continuing beyond, well beyond twenty
Speaker 8: twenty six timeframe. But the important thing is that Micron
Speaker 8: is working hard with our customers, working also on the
Speaker 8: long term the supply agreements with our customers to really
Speaker 8: ensure that they can have predictability for supply, and of
Speaker 8: course Micron can have the confidence for the investments that
Speaker 8: we are really committing to here for the long haul.
Speaker 2: Well.
Speaker 10: Historically, memory is a cyclical business, right periods of boom,
Speaker 10: periods a bus I'm wondering if two hundred billion dollar
Speaker 10: investment here in the US signals perhaps more of a
Speaker 10: confidence that that demand, that high demand is going to
Speaker 10: be permanent, or are their concerns here that the industry
Speaker 10: could be overbuilding capacity.
Speaker 8: You know, of course, what we are doing is building
Speaker 8: these fabs which are very long lead time items. As
Speaker 8: you can see in terms of what we are doing
Speaker 8: in Boise in New York, it really takes several years
Speaker 8: just to build construct the shell. How we equip that
Speaker 8: shell really very much depends on our latest assessments of
Speaker 8: demand at a given time. So important thing is to
Speaker 8: have that preparedness to meet the market demand, and memory
Speaker 8: has become a key enabler. It is a strategic asset
Speaker 8: for our customers today. It is a strategic asset for
Speaker 8: AI across consumer as well as data center industries, because
Speaker 8: without memory, you don't really have that intelligence that is
Speaker 8: critically important for the future roadmaps the doward customers have.
Speaker 3: That was Micron President and CEO Sanjay Morota speaking with
Speaker 3: our own Tyler Kendle. Now coming up, big banks are
Speaker 3: looking to hire more AI specialists and shrink traditional banking roles.
Speaker 2: This is Bloomberg Tech.
Speaker 7: Wall Street.
Speaker 4: Well, it's getting caught up in aianks of course, and
Speaker 4: looking to hire more AI specialists and actually shrink traditional
Speaker 4: banking roles. Bloomberg has the latest on too highly sought
Speaker 4: after trainers in finance teaching Wall Street bankers how to
Speaker 4: use AI tools. Get this, They're chatting twenty five thousand
Speaker 4: dollars a.
Speaker 7: Day for the training.
Speaker 4: Bloomberg Sally Bakwell is here with one particular evidence that
Speaker 4: banks might be apologizing for calling certain people lower value
Speaker 4: human capital, but on the other side of things, are
Speaker 4: still really committing to the training side of things.
Speaker 11: That is right. I think what we're seeing here is
Speaker 11: Wall Street having a little bit of an AI reality check.
Speaker 11: It's recognizing that AI is not just a tool for
Speaker 11: efficiency anymore. It is also a requirement for survival. And
Speaker 11: so we have these two former soft bank fund managers
Speaker 11: who have who are basically cashing in on that they've
Speaker 11: set up this firm. It's called Wall Street Prompt and
Speaker 11: it's essentially to teach elite bankers how to stop their
Speaker 11: jobs from being automated. And indeed, the eyewatering numbers that
Speaker 11: they can charge twenty five thousand dollars a day and
Speaker 11: that they have a two month backlog. And what this
Speaker 11: really speaks to is that the biggest hurdle to banks
Speaker 11: now is not essentially accessing the AI software they can
Speaker 11: get all of that, they can pay for that, and
Speaker 11: they have invested millions and billions into doing that. But
Speaker 11: the hurdle is ensuring that their senior professional professionals have
Speaker 11: a kind of AI fluency that makes them productive and
Speaker 11: that can keep the financial institution competitive.
Speaker 3: Sally, what's wild about Wall Street prompt It's like less
Speaker 3: than a year old and it has real customers Like
Speaker 3: this is obviously one of the most read stories on
Speaker 3: Bluebow Tunnel. You get why, but just explain to us,
Speaker 3: like what they've achieved and also why they want to
Speaker 3: move to Singapore.
Speaker 12: Right.
Speaker 11: So, Yeah, they were founded just last year and they
Speaker 11: have clients including Bank of America, including City, including t
Speaker 11: row Price. And what they're doing is they're going into
Speaker 11: banks and they're having training sessions with twenty five to
Speaker 11: thirty employees, and they're saying, you know, they're using Google,
Speaker 11: Gemini and alongside FBI style behavioral analysis in order to
Speaker 11: spot red flags in founder pitch videos for example, they're
Speaker 11: also teaching them how to use Chatchibt and Claude in
Speaker 11: order to analyze earnings transcripts for the most market moving
Speaker 11: information and build financial forecasting models on that. Now they
Speaker 11: are potentially looking to expand in Singapore because that is
Speaker 11: where they have put particular focus on it, suring that
Speaker 11: anyone who wants to move into the financial sector is
Speaker 11: very AI fluent. So there is a bit of a
Speaker 11: competitive competitive edge in Asia and Singapore in particular, and
Speaker 11: that's really shining spotlight on the need for US financial
Speaker 11: firms to do that as well. I mean, we've heard
Speaker 11: from so many of them that JP Morgan has rolled
Speaker 11: out LM Suite, a generative AI tool. Goldman is working
Speaker 11: with Anthropic. Bank of America says that it's made its
Speaker 11: developers more productive with AI, and that mean Jamie Diamond
Speaker 11: says he uses it every day. So the need is
Speaker 11: clear that they need to upseeel their staff.
Speaker 3: Bloomberg Sally bake Well absolutely top reporting, Thank you very much.
Speaker 3: Pope Leo the fourteenth says AI should be quote disarmed
Speaker 3: to protect humanity from its dangers, calling for making AI
Speaker 3: more human friendly and freeing it from monopolistic control. The
Speaker 3: comment comes as the Pope and Anthropic co founder Christopher
Speaker 3: Ola launched the Pontiff's first encyclical, a document called Magnifica
Speaker 3: Humanitas Center of the Care of Human dignity in the
Speaker 3: era of Ai Bloomberg. Slavia Ratandi joins us from Rome.
Speaker 3: Flavia fascinating. Let's please just start with the basics, the
Speaker 3: basics of the document, what's in it, and I suppose
Speaker 3: summarizing like the Pope and the attitude towards Ai.
Speaker 13: Absolutely, that was quite I say, the pretty powerful message
Speaker 13: that came from the Pope. Just to give you an idea,
Speaker 13: this is the first encyclical by the new pope elected
Speaker 13: last year, and also the encyclical itself is the most
Speaker 13: the most important, the most official actor from Ope, so
Speaker 13: really includes some of the priorities of a new pope
Speaker 13: and the fact that they chose artificial intelligence. And not
Speaker 13: only that, but the waygual intelligence is changing our lives
Speaker 13: that might change our lives, our lives in the future.
Speaker 13: I think it's really really says something as you said,
Speaker 13: it actually uh used this world deserned and desermed. It
Speaker 13: needs to be desermed. It doesn't mean that the artificial
Speaker 13: intelligence must be somehow blocked, but must be regulated. That
Speaker 13: was the main thing. And and also the fact that
Speaker 13: it basically said that it must be used of course,
Speaker 13: uh for for you know, for for just for for
Speaker 13: good intentions and and kind of indicated all the possible risks.
Speaker 13: For example, indicated the factor that using computing, using artificial
Speaker 13: intelligence in a warfare in the military and defense sector
Speaker 13: is really dangerous, adding and a quote no algorithms can
Speaker 13: make war morally acceptable.
Speaker 4: Seems to be a lot of things going on outside
Speaker 4: the Rome Bureau right now. Flavia Ratney of Bloomberg talking
Speaker 4: about what is about magnificent humanity? That is, ultimately what
Speaker 4: magnifica humanitus is all about.
Speaker 7: Ed well, so interesting.
Speaker 4: It's about one hundred and thirty five years after the
Speaker 4: original pop Leo talked about of new things the first
Speaker 4: Industrial Revolution, how to help humanity through that coming of
Speaker 4: age of technology, and now they look at the age
Speaker 4: of AI.
Speaker 3: Yeah, and one point four billion dollar one point four
Speaker 3: billion Catholics around the world. If you want to talk
Speaker 3: to someone about AI, one message is a pope's address.
Speaker 2: One way of doing.
Speaker 4: It, Sunny, Well, from the AI humanity question, it's a
Speaker 4: bit of MNA for you.
Speaker 7: Has that as a plot shift delivery Hero up next
Speaker 7: as a Bloomberg Tech.
Speaker 4: Welcome back to Bloomberg Tech, and let's take a look
Speaker 4: at today's big number about eleven billion dollars. That's Delivery
Speaker 4: here current market cap as it stands, and that is
Speaker 4: after Uber has offered to take over the German delivery
Speaker 4: company and a deal that would value it.
Speaker 7: At about ten million euros.
Speaker 4: Now clearly the market thing, so it can be maybe
Speaker 4: pushed a little bit higher and get dig into that
Speaker 4: very thing now with the details from equities report to
Speaker 4: Jordan Fitzgerald. So an offer being made, is there more
Speaker 4: being discussed on the table at the moment, Jordan, thank.
Speaker 14: You, yes.
Speaker 15: So over the weekend, news broke that Uber made this
Speaker 15: thirty three Europa share offer for German based food delivery
Speaker 15: company Delivery Hero, and like you said, this value companied
Speaker 15: about ten billion euros. But we don't have any guarantees yet.
Speaker 15: Delivery Hero has been reviewing its strategic options. It's important
Speaker 15: to note that Uber already has a master at twenty
Speaker 15: percent stake in the company, but there's no guarantees here.
Speaker 15: The Financial time to report that Uber had rebuffed the
Speaker 15: Delivery Hero had rebuffed Uber's offer, but things are still up.
Speaker 14: In the air.
Speaker 3: Delivery here just stopped trading in Europe and thirty eight
Speaker 3: dollars twenty three cents a share. The market's kind of saying,
Speaker 3: you know, we see this going higher than thirty three
Speaker 3: euros a share, But also, like a lot of analysts
Speaker 3: and I think you've been writing about this right saying,
Speaker 3: this makes a lot of sense to do this deal
Speaker 3: from Uber's perspective.
Speaker 15: From Uber's perspective, and from Delivery Heroes. Delivery Hero has
Speaker 15: been reviewing it to options. Shares are up quite a
Speaker 15: bit for the year as the company has been going
Speaker 15: down the path of a strategic review, and for Uber,
Speaker 15: analysts are really saying that this is a strategically sound
Speaker 15: deal for them. Uber is in a space, the food
Speaker 15: delivery space, where things are consolidating, and like I said,
Speaker 15: they've already a massive steake and Delivery Hero and Delivery
Speaker 15: Hero in particular gives them exposure on the delivery side
Speaker 15: to international markets, particularly in Asia and Europe, where they're
Speaker 15: already offering ride shares, but they can expand it too
Speaker 15: that delivery side and really grow their business.
Speaker 2: Doing both.
Speaker 3: Jordan Fitzgerald, Top Reporting, Thank you very much. I want
Speaker 3: to get back to check on Micron because what is
Speaker 3: happening is nuts. It's up seventeen percent, in part because
Speaker 3: UBS upgraded its pist target's one six hundred and twenty
Speaker 3: five dollars a share, which as you can say see
Speaker 3: looking at your screen, would be double basically what it's
Speaker 3: currently trading at. But generally speaking, AI names absolutely ripping
Speaker 3: this Tuesday Micron top of the heat. But as we
Speaker 3: talked about earlier in the show, it is a global
Speaker 3: story here to discuss the AI trade. Daniel Pilling, portfolio
Speaker 3: manager at Sans Capital who counts in video and TSMC
Speaker 3: among top holdings, it's just so interesting to work out
Speaker 3: what's going on here.
Speaker 2: I think that you would.
Speaker 3: Say, similar to what I wrote about and the tech
Speaker 3: in depth overnight and video's sold out. So whether your
Speaker 3: goal in this market is to play this SPACEXIPO for
Speaker 3: space based data center, orbital data center, or you're just
Speaker 3: trying to build out day center on Earth, demand is
Speaker 3: vastly outpacing supply.
Speaker 2: Does that sum it up?
Speaker 14: Yes?
Speaker 16: Indeed, I think so, And maybe to put some numbers
Speaker 16: behind it, I think we think about AI, you can
Speaker 16: break it down a three sort of bullet points right
Speaker 16: like one, it's viral, right, so it's sort of like
Speaker 16: zoom in during COVID. The growth is unparalleled and we
Speaker 16: can see this in the anthropic numbers. Two though, it's
Speaker 16: also highly underpenetrated. So you know, there's a billion office
Speaker 16: workers in the world and a tiny, tiny fraction that
Speaker 16: I'm actually using these tools as of today. We try
Speaker 16: to estimate it. It's maybe two or three percent, so
Speaker 16: it's a very very small number.
Speaker 14: And then three.
Speaker 16: You know, all this sort of virality and underpenetration is
Speaker 16: hitting this market, the semiconductor market, where you have companies
Speaker 16: that have long lead times, they're oligopolistic pricing powers. So
Speaker 16: if you add all these things together, it's likely we're
Speaker 16: going to be supply constrained for quite some time.
Speaker 4: How broad therefore, should the holdings go. When I'm looking
Speaker 4: at some of the funds you manage. Clearly you've got
Speaker 4: with the program when it came to nvidio, but you're
Speaker 4: also thinking about those that are offering not only chips
Speaker 4: but also the entire vertical stack. When I think of
Speaker 4: alphabet that you're in, there's Microsoft and Amazon, But why
Speaker 4: not broad into other areas of the chip stack because
Speaker 4: we've seen them just do so well.
Speaker 14: Yes, we totally agree. So we actually also own memory
Speaker 14: companies such.
Speaker 16: As Eskhaiinex and Samsung in Korea, memory is going to
Speaker 16: be an increasingly significant bottleneck. We're heavily exposed to semi
Speaker 16: kapnix companies business slides such as ASML and research to
Speaker 16: provide the equipment to the foundries of the world. I
Speaker 16: think one should also look at electricity companies, so anybody
Speaker 16: that supplies electricity to data centers. One particular interesting business
Speaker 16: there that we own is called Blume Energy. And then
Speaker 16: last the CPUs. CPUs are back for US. That's particularly
Speaker 16: interesting on arm but agentic AI needs a lot of CPUs, So.
Speaker 14: I think you're right.
Speaker 16: One should look at the total stack, and there's many,
Speaker 16: many winners across the entire stack.
Speaker 3: Daniel, Our top story in the show today was news
Speaker 3: from Huawei on logic folding, basically a new method of
Speaker 3: passing the signal through the transistor, taking you outside of
Speaker 3: Moore's law, you're not dependent on extreme miniaturization. The way
Speaker 3: the market responded, first in Asia, then in Europe, and
Speaker 3: then in the United States, everything was up irrespective of
Speaker 3: their ties to Huawei.
Speaker 2: Why do you think that is.
Speaker 14: Well?
Speaker 16: I mean, I do think that in Asia, in particular
Speaker 16: in China, there's a sense that they don't have access
Speaker 16: to ASML nor leading edge chips from Taiwan Semi, so
Speaker 16: any sort of announcement that they can make that might
Speaker 16: provide them the opportunity to build their own leading edge
Speaker 16: hips is much appreciated now. The counter to that, though,
Speaker 16: is that this technology has been around for a while.
Speaker 16: This idea of sort of stacking chips on top of
Speaker 16: each other is also something that Taiwan Semis has been
Speaker 16: pursuing for really a decade. The problem with it is
Speaker 16: that is twofold one you have to stack them on
Speaker 16: top of each other.
Speaker 14: In two there's a heat.
Speaker 16: Dissipation issue which is very very difficult to solve.
Speaker 14: So time will tell.
Speaker 16: But we're somewhat skeptical about the Huaii announcements as they
Speaker 16: are as of today.
Speaker 4: How skeptical are you or not of just China's prowess
Speaker 4: when it comes to AI and on its own supply
Speaker 4: chain right now?
Speaker 16: Yes, so I have to say we're very impressed what
Speaker 16: China has been doing, but the core issue remains as
Speaker 16: ever the same, I think. So China does not have
Speaker 16: ASML and or litography manufacturing capabilities that would allow them
Speaker 16: to build leading edged chips, So anything above sort of
Speaker 16: five nanometers plus server, and as long as that doesn't change,
Speaker 16: they will struggle to compete within videos of the world
Speaker 16: with the sc high nexus.
Speaker 14: And microns of the world. And in our opinion there
Speaker 14: may be a decade away from that.
Speaker 16: It took fifteen twenty years for Western nations to build
Speaker 16: something like ASML, so as long as that's the case,
Speaker 16: they will struggle to compete.
Speaker 3: Daniel, how's your math been going post in video earnings?
Speaker 9: Right?
Speaker 3: I think about the one trillion dollar figure, which is
Speaker 3: Blackwell rubin calendar twenty five's calendar twenty seven, and then
Speaker 3: what in video said was they see hyperscale of capex
Speaker 3: one trillion for the com twelve month period.
Speaker 2: So you're trying to work.
Speaker 3: Out how much should they capture in sales and how
Speaker 3: does that translate from video into free cash flow?
Speaker 2: Have you done that math?
Speaker 14: Yeah?
Speaker 16: So the math we have actually done, and I would
Speaker 16: humbly argue is equally interesting. Maybe is so Jensen has
Speaker 16: said something about three to four trillion capex for twenty
Speaker 16: thirty for the entire industry.
Speaker 14: So three to four trillion an enormously large number.
Speaker 16: Now in Vidia tends to have something like we believe
Speaker 16: sixty percent market share across training and inference. Now that
Speaker 16: number is true, which we actually find hard to dismiss.
Speaker 16: That in video would generate something close to forty dollars
Speaker 16: of earnings per share and close to one trillion dollars
Speaker 16: of free cash flow by twenty thirty, and that would
Speaker 16: indicate the stockets sort of five times earnings in that
Speaker 16: time period. So that to us was sort of a
Speaker 16: super interesting number. They've mentioned it before and it seems
Speaker 16: very very large as of now.
Speaker 14: So you'd have to have a lot of growth and
Speaker 14: the anthropics of the.
Speaker 16: World, but Jensen has shown over time, but it tends
Speaker 16: to hit the numbers that you talk about.
Speaker 14: We're very positive on that.
Speaker 3: Daniel Pilling from Sam's Capital good at Math, Thank you
Speaker 3: very much. Care plenty of other news headlines out there.
Speaker 7: It's time now for talking tech ed. Yeah.
Speaker 4: First up, a Samsung union representing workers outside the ultra
Speaker 4: profitable semiconductor division has asked a Korean court to block
Speaker 4: voting on a tentative deal that were distributed about twenty
Speaker 4: six point six billion dollars in bonuses looked a smaller union.
Speaker 7: It's arguing that the.
Speaker 4: Agreement disproportionately favors Samsung's chip business. The semiconductor staff set
Speaker 4: to receive average bonuses about three hundred and forty thousand
Speaker 4: dollars compared.
Speaker 7: With roughly four thousand dollars for.
Speaker 4: Workers in Samsung's Digital Experience division, plus shares of Ferrari
Speaker 4: tumbling after the luxury automaker unveil its first fully electric
Speaker 4: vehicle to a wave of negative.
Speaker 7: Reviews over its design.
Speaker 4: Critics and social media users compared their six round and
Speaker 4: forty thousand dollars Ferrari That's Luccee to mainstream evs, raising
Speaker 4: questions about the company's push into electric vehicles.
Speaker 7: In Johnny Ice.
Speaker 4: Design and Honeywell back to Quon is seeking to raise
Speaker 4: as much as one point zero five billion dollars in
Speaker 4: an IPO now. According to an SEC filing, the Quantum
Speaker 4: Computing Firm and as Yourself, twenty one million chairs close.
Speaker 7: Between forty five and fifty dollars each.
Speaker 4: At the top end of the range, now, Quantumum would
Speaker 4: be valued roughly twelve point seven billion dollars at okay.
Speaker 3: Coming up, SpaceX scores another successful launch, fueling fresh speculation
Speaker 3: about the company's IPO prospects. And Elon Musk growing dominance
Speaker 3: in the commercial space race.
Speaker 2: We have more on that next. This is been Ktech.
Speaker 3: Taking a look at some of what's going on in
Speaker 3: the space sector. A lot of names are on the
Speaker 3: move simply by association validation that the space sector is legit.
Speaker 3: It is for real post SPACEXS S one last week,
Speaker 3: but also after SpaceX's upgraded Starship successfully deployed mock satellites
Speaker 3: and return to Earth mostly unscathed. That was on Friday night.
Speaker 3: Bloomberg's Space correspondent Lauren Grash is with us for SpaceX success.
Speaker 3: Is the data right, so irrespective really what happens in
Speaker 3: the end. This was a completely new, re engineered, new
Speaker 3: architecture V three Starship and they wanted to see how
Speaker 3: it would work.
Speaker 2: How did it work?
Speaker 17: I would say that it was a largely successful debut
Speaker 17: of the vehicle. As you mentioned, this was a completely
Speaker 17: redesigned version of Starship. Mainly it had a lot of
Speaker 17: new upgrades, new Raptor engines that were supposed to significantly
Speaker 17: increase the thrust at liftoff. Also had a number of
Speaker 17: upgrades to help with the reusability that they're after, and
Speaker 17: so by and large it was a successful test. There
Speaker 17: were some uncomfortable moments. For instance, that super heavy booster
Speaker 17: which you can see climbing and sending Starship to space.
Speaker 17: Once it separated, it was supposed to do a controlled
Speaker 17: splashdown or landing in the Gulf, and that didn't quite
Speaker 17: work as plan. It kind of spun out of control
Speaker 17: at one point and then seemed to break apart. And
Speaker 17: then also there was an engine out on Starship. So
Speaker 17: just a few moments where it did not.
Speaker 11: Go to plan.
Speaker 17: It was a little bit incomplete, but I think it
Speaker 17: was by and large a really successful mission for the
Speaker 17: debut of this upgraded version of the vehicle.
Speaker 4: I leve all the quotes some employee Kate tyst we
Speaker 4: were expecting the re entry to be super spicy, and
Speaker 4: I guess that's what we got. But where does this
Speaker 4: put us in the long term trajectory of the plans
Speaker 4: for satellites, for the business model for malls and the like.
Speaker 17: Yeah, I would say we're still marching forward. There are
Speaker 17: still some kings to work out. For instance, you know,
Speaker 17: the big thing about Starship is that it's supposed to
Speaker 17: be fully reusable. That's never been done before, and so
Speaker 17: that problem that they had with the super heavy booster.
Speaker 17: Not doing that controlled landing complicated that on the path
Speaker 17: to that full reusability. But as they demonstrated during this mission,
Speaker 17: they weren't able to deploy satellites like they had planned.
Speaker 17: They were dummy satellites, but they did demonstrate that could work.
Speaker 17: So it does seem, you know, it stands to reason
Speaker 17: that that could potentially happen soon. I know they're aiming
Speaker 17: at within the next year, but still there's definitely a
Speaker 17: long road ahead in order to really fully unlock this
Speaker 17: vehicle for what it's supposed to be.
Speaker 4: And maybe vindicate evaluation. As we see some extraordinary footage
Speaker 4: coming from the launch on Friday night, Long and Grush,
Speaker 4: thank you so much for breaking it all down for us.
Speaker 4: Let's get the latest on SpaceX's potential listing into the
Speaker 4: market as well as the wider IPO landscape, because we've
Speaker 4: got Ja Rittter with us. He's director of the IPO
Speaker 4: Initiative University of Florida, Mariatage professor.
Speaker 7: They call you mister IPO.
Speaker 4: So mister IPO, tell us as to how we see
Speaker 4: a vindication in the market capitalization of SpaceX as it
Speaker 4: goes public because, as Ed was writing in his news
Speaker 4: letter today, an awful lot has to go right.
Speaker 12: I'm in complete agreement, an awful lot has to go right.
Speaker 12: But this is a great company, as Lauren was indicating,
Speaker 12: Starship is an incredible engineering feet. It's complicated, but this
Speaker 12: is actually a competitive advantage. It's so difficult for a
Speaker 12: competitor to come up with something similar that's going to
Speaker 12: be able to lower launch costs as much as SpaceX can.
Speaker 12: That it's going to allow SpaceX to have a big
Speaker 12: technological lead over any potential competitor, and this will allow
Speaker 12: it to put Starlink satellites into lower orbit and offer
Speaker 12: startlink Internet access at much lower costs than competitors can.
Speaker 3: Jay, Professor, you are called mister IPO, if you don't
Speaker 3: mind me saying, because you're probably the most influential, most
Speaker 3: cited academic researcher in the field of IPOs of the
Speaker 3: last forty years. What is different about this IPO and
Speaker 3: what is the same as those that you have studied
Speaker 3: deeply in your career.
Speaker 12: Well, what's different is this is going to be the
Speaker 12: largest private sector company ever to go public. Evaluation of
Speaker 12: something like one point five trillion dollars, dramatically higher than
Speaker 12: any other of the big companies that have gone public
Speaker 12: in the past. They've generally been large state owned enterprises
Speaker 12: with very large operations and profitability. This is a company
Speaker 12: where the market and venture capitalists have been valuing it
Speaker 12: based upon enormous potential future profitability. But as I was
Speaker 12: mentioned previously, a lot of stuff has to go right
Speaker 12: to justify this valuation.
Speaker 4: When you think about just the multiples that are going
Speaker 4: to be digested, and I know you've looked a lot
Speaker 4: into that, where does it sit in past and historical
Speaker 4: terms compared to those that did list Because as we've
Speaker 4: been talking about time and time again, across this entire network,
Speaker 4: companies are staying much longer private and they're coming in
Speaker 4: extraordinary valuations, And so you wonder how much money is
Speaker 4: left on the table for a retail investor or a
Speaker 4: different type of investor that hasn't been funding it from
Speaker 4: day one.
Speaker 14: Right.
Speaker 12: This is a company where last year it had eighteen
Speaker 12: point seven billion dollars in sales, bigger than just about
Speaker 12: any tech startup or private company that hadn't already been
Speaker 12: public has in terms of revenue at the time of
Speaker 12: going public, but it's also got the really huge valuation,
Speaker 12: and to justify a one point five trillion valuation, very
Speaker 12: big future profits have to be there. There have only
Speaker 12: been about eighteen companies that have gone public in the
Speaker 12: US with inflation adjustice revenue of at least one hundred
Speaker 12: million dollars per year and a price to sales racial
Speaker 12: of more than forty at a one point five trillion valuation.
Speaker 14: SpaceX is going to be going.
Speaker 12: Public at a price to sales racial of about eighty.
Speaker 12: So there haven't been all that many companies that have
Speaker 12: done this before, but of those that have, on average,
Speaker 12: the stock has been disappointment to investors. Lots of things
Speaker 12: have to go right.
Speaker 3: Lots things have to go right, Jay repeats throughout the
Speaker 3: s One is a warning that they will be constrained
Speaker 3: by compute now in the future, and starship has to
Speaker 3: work very quickly. Is that just boiler plate or they
Speaker 3: have to say that.
Speaker 12: You know, it's technologically true that the profitability of sending
Speaker 12: people to mys is very questionable, but the ability to
Speaker 12: get things going in the foreseeable future with startling can
Speaker 12: be an enormous source of profits.
Speaker 3: Jay Rider, the IPO initiative the University of Florida.
Speaker 2: They call him mister ip O. Thank you very much.
Speaker 3: Now coming up, Google comes out with the fit Bit Air,
Speaker 3: trying to catch up to Whoop in the AI powered
Speaker 3: wellness space.
Speaker 2: Can have a look. This is Blombog tech.
Speaker 7: Tech companies.
Speaker 4: They are racing into an era of personalized health and
Speaker 4: Google is out with its latest product in the space,
Speaker 4: the Fitbit Air.
Speaker 7: So new one hundred dollars screen is wearable, which.
Speaker 4: Represents a major evolution in what consumers can expect from
Speaker 4: fitness trackers. More, let's speak to Bluma's consumer tech editor
Speaker 4: in a Woman. Now, you have a Whoop, which might
Speaker 4: be a direct comparison here. But what's so interesting is
Speaker 4: Google having more of an sort of open way in
Speaker 4: which they're going to be allowing us to use our data.
Speaker 18: Yes, so I think the business model is going to
Speaker 18: be quite more appealing for a wider swath of consumers.
Speaker 18: So you pay upfront for Google's hardware and then if
Speaker 18: you like, you can just use Google Health for free
Speaker 18: as a free app. They do have a premium tier
Speaker 18: that offers a lot more interesting features, and that's where
Speaker 18: you might be paying locked into a subscription model, but
Speaker 18: Whoop is entirely subscription based. It Technically you aren't even
Speaker 18: paying for the hardware itself. You're paying for these annual
Speaker 18: subscriptions and if you ever cancel, your device is pretty
Speaker 18: much bricked.
Speaker 3: The business models are so different between the two, right,
Speaker 3: I mean, like just last week we were talking about
Speaker 3: different form factor but or arraying and IPO. You're the
Speaker 3: editor on the Consumer Tech team. We do reviews, like
Speaker 3: we get into the tech, how it works. What was
Speaker 3: the team's kind of like impression.
Speaker 18: So we think competition is good. Sorry to sound so
Speaker 18: buttoned up there, but competition is good I think for consumers, and.
Speaker 7: We like both.
Speaker 18: Is really sort of the long and the short of it.
Speaker 18: Whoop is still probably a better choice for more advanced users.
Speaker 18: It has a more data focused approach, so it pulls
Speaker 18: more data. It presents it in a very clean, but
Speaker 18: sort of geeky way. I think if you are looking
Speaker 18: to interact with a device like this, really leaning into
Speaker 18: the AI, having a conversation with a coach that is proactive.
Speaker 18: Google's AI is more advanced than Whoops. I found it
Speaker 18: more natural, more conversational. It was easier, for instance, to explain, hey,
Speaker 18: if I wake up in the middle of the night,
Speaker 18: it's because my toddler woke me up. Briefly, it's not
Speaker 18: because I have I've chosen to wake up at two AM.
Speaker 18: So having conversations like that is a lot easier with
Speaker 18: Google's device. You will get more data still with Whoop,
Speaker 18: and you will, in my opinion, see it presented in
Speaker 18: a way that makes a little more sense and is
Speaker 18: a little more aesthetically pleasing.
Speaker 4: What's interesting is the way in which, briefly we're going
Speaker 4: to be using them with so much more than sleep
Speaker 4: or heart rate and the like, oh, I'm sorry when
Speaker 4: we go using them more for like you're using for
Speaker 4: meal plans, for example, how you can fold it in more.
Speaker 2: Yes, absolutely so.
Speaker 18: I used it for a combination of I tried to
Speaker 18: use it really like any consumer would. I used it
Speaker 18: for a combination of sleep tracking overnight analyzing my sleep
Speaker 18: and my readiness for the coming day. And I really
Speaker 18: played around a lot with the food tracking.
Speaker 2: Here.
Speaker 18: I took pictures of my meals. I said, how many
Speaker 18: calories is this? And actually the estimate seemed pretty accurate
Speaker 18: as far as I could tell.
Speaker 4: Right, Dana great getting up aspective woman.
Speaker 12: And it to you.
Speaker 3: Yeah, check out the four review on Bloomberg dot com. Unfortunately,
Speaker 3: that does it. First edition of Bloomberg Tech.
Speaker 7: Don't forget to check out this podcast.
Speaker 4: You can find it on the terminal as well as
Speaker 4: online on Apple, Spotify, and iHeart This is Blueberg.