Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and Eva Low in San Francisco.
Speaker 2: This is Bloomberg Tech coming up. AI's money race. Alphabet
Speaker 2: will raise eighty billion dollars while Mthropic makes its IPI move.
Speaker 3: The confidential filing is in at the SEC.
Speaker 4: Thus Elo Musk SpaceX is negotiating to pay raiser thin
Speaker 4: fees to Wall Street firms handling its IPO, and.
Speaker 2: HPE sows after its annual sales outlook beat estimates on
Speaker 2: the back of massive demand for AI infrastructure. Will be
Speaker 2: joined by CEO Antonio Neri.
Speaker 5: But there is so.
Speaker 4: Much going on in the meantime, and we start the
Speaker 4: show off with today's big number, ed it's eighty billion dollars. Look,
Speaker 4: Alphabet sees that seventy five billion dollars being raised SpaceX
Speaker 4: in its IPO and just says, poll ho, my beer,
Speaker 4: I'm going to do eighty billion. We're seeing it being
Speaker 4: distributed in really novel ways, maybe trying to limit some
Speaker 4: of that dilution and more broadly, but eighty billion dollars
Speaker 4: in future equity raise to finance AI infrastructure does have
Speaker 4: an impact on the stock. Now, we're going to have
Speaker 4: a little look at how we're currently are seeing shares
Speaker 4: of Alphabet slightly under pressure on the day, but only slightly.
Speaker 5: We're down by nineteen percent.
Speaker 4: We've actually come off of our lows amid what has
Speaker 4: been some anxiety in the market more broadly, but dig
Speaker 4: into what this equity issuance really is.
Speaker 2: Yeah, here's what we need to know about the package.
Speaker 2: It includes a ten billion dollar Berkshire half away investment,
Speaker 2: thirty billion in public offerings, and then a forty billion
Speaker 2: so called at the market program ATM to sell shares
Speaker 2: from time to time beginning in the third quarter. That
Speaker 2: means starting on July first. Together, the transactions represent one
Speaker 2: of the largest equity deals of all time, and basically
Speaker 2: it's just a cap to expendit this story. We know
Speaker 2: from Alphabet this is how much CAPEX will be this year,
Speaker 2: and we know that it's going to go up and
Speaker 2: BI has an even bigger number.
Speaker 4: Let's get into what BI is all about. Bloomberg Intelligence
Speaker 4: analyst Roma Schiffman is joining us who have analysis out
Speaker 4: on this today, saying this raise marks an important funding
Speaker 4: signal for Hyperscalers as infrastructure spending moves along a.
Speaker 5: Multi trillion dollar path.
Speaker 4: They're already raised eighty five billion dollars Robert in the
Speaker 4: credit market, and now they turn to the equity market.
Speaker 4: What does it mean more broadly for the size of
Speaker 4: the money that is needed by Hyperscalers.
Speaker 6: Yeah, well, put the beer away. Technology companies are popping
Speaker 6: champagne bottles right now.
Speaker 1: Listen.
Speaker 6: I've come on this show time and time again said
Speaker 6: I've never been more bullish on the tech sector, and
Speaker 6: I think this move is wildly bullish. To get such
Speaker 6: a boost of confidence from arguably the world's greatest investor
Speaker 6: in Berkshire Hathaway, to go against all everything I've learned
Speaker 6: in math camp, where the weighted average cost of capital
Speaker 6: suggest you're supposed to be issuing more debt and instead
Speaker 6: obviously alphabet is so confident in Rois on their investments
Speaker 6: to be able to raise this much money, To have
Speaker 6: this big of a kiddy certainly suggest that spending this
Speaker 6: year they said was going to go up significantly. Now
Speaker 6: our friends that our an equity team are saying they
Speaker 6: might spend as much as three hundred billion next year
Speaker 6: in capex.
Speaker 3: Robert, stay with us.
Speaker 2: We have some breaking news crossing the Bloomberg terminal red headline.
Speaker 2: Trump to get audit immunity even as one point eight
Speaker 2: billion fund in doubt. Basically, US officials are continuing with
Speaker 2: this agreement that bars the government from probing past tax
Speaker 2: filings of President Trump and his businesses. This is Bloomberg reporting.
Speaker 2: According to a source, there is a plan to set
Speaker 2: up an anti weaponization fund that's now on hold. We're
Speaker 2: going to bring you more details of that story as
Speaker 2: we get it. But coming from Bloomberg virus source, Trump
Speaker 2: to get audit immunity even as a one point eight
Speaker 2: billion fund is now in doubt.
Speaker 3: Let's get back to our top story.
Speaker 2: Alphabet raising eight hundred billion dollars in equity to raise
Speaker 2: in different structures. Just said it is so important because
Speaker 2: Alphabet has held our hand on this a little bit.
Speaker 2: So capital expenditure one hundred and ninety billion dollars in
Speaker 2: the current period of the year. They said it would
Speaker 2: be higher, you know, going into twenty seven. You just
Speaker 2: reference the BI number, which is like capex could be
Speaker 2: three hundred billion dollars for a year.
Speaker 3: Am I right? Am I misspeaking? Yeah? I think that
Speaker 3: sounds the numbers are noise.
Speaker 6: Listen, the biggest hyperscalers are spending close to eight hundred
Speaker 6: billion dollars cumulatively this year. I think it's going to
Speaker 6: be well over a trillion next year and five trillion
Speaker 6: over the next five years. So they're sort of searching
Speaker 6: the globe for all different sources of capital. It's summertime.
Speaker 6: The pool is open for raising capital, whether it's equity,
Speaker 6: public debt, private debt, currencies across the globe. Everyone wants
Speaker 6: to have a little bit a piece of AI and
Speaker 6: this is the way to get it. Again. I think
Speaker 6: it's it's so bullish because there's so much capital on
Speaker 6: the sidelines that's willing to fund this. The beauty of
Speaker 6: issuing equity here. It's actually not the first time somebody's
Speaker 6: done it. Oracle did this earlier in the year. I'm
Speaker 6: saying they were going to issue twenty five billion dollars
Speaker 6: of equity. It's super positive obviously from a credit perspective.
Speaker 6: It helps create and protect healthy balance sheets. I think
Speaker 6: going forward, what it also means our stock buybacks are
Speaker 6: going to be lower. You're not going to be issuing
Speaker 6: eighty billion dollars of stock and then start buying stockback anytime.
Speaker 6: We've actually already start to see slowdowns in stock buybacks,
Speaker 6: and I think over the next year you're going to
Speaker 6: see more of that, and you might see more equity issuance.
Speaker 6: And part of that is because spending is going so
Speaker 6: much higher. And I think it's because the confidence level
Speaker 6: in monetization of AI is finally coming to fruition, and
Speaker 6: we saw that in first quarter results.
Speaker 2: I think I misspoke a second ago and said eight
Speaker 2: hundred billion, but they will raise eighty eight zero billion,
Speaker 2: still big numbers. Robert Schiffman, a Bloomberg Intelligence Thank you.
Speaker 2: This is about a race for capital. Our other top story,
Speaker 2: Anthropic has confidentially filed to go public, pulling ahead of
Speaker 2: rival Open AI in the IPO race. More, let's speak
Speaker 2: with Bloomberg's AI reporter, Sharing Gafari. Yeah, yesterday was wild, right,
Speaker 2: and the confidential filing, the Anthropic blog post announcing it.
Speaker 2: There's nothing in there, no price range, no terms of
Speaker 2: the offering, so there's a lot we don't know.
Speaker 3: Try and tell us what we do know at this point.
Speaker 7: That's right, So it's short on details because it is
Speaker 7: a confidential filing. And the financials are not public. However,
Speaker 7: Anthropic has as of yesterday submitted a draft s one
Speaker 7: to go public, pulling ahead of Open an Eye, which
Speaker 7: is also expected to be filing as soon as in
Speaker 7: the coming weeks. CEO Sam Altman reacted to that in
Speaker 7: an interview yesterday, saying that the company will go public
Speaker 7: when it more or less when it feels like it
Speaker 7: or one wants to, and not not sort of before
Speaker 7: it's ready. So still some uncertainty about one exactly Anthropic
Speaker 7: competitor will and Anthropic has now pulled ahead to be
Speaker 7: the first to pull that trigger with the filing. That
Speaker 7: being said, what do we know about Anthropic, Well, its
Speaker 7: revenue has been growing at rapid pace. It's now reached
Speaker 7: an annualized run rate revenue projection of forty seven billion
Speaker 7: in annual revenue. You know, there's been The CEO has
Speaker 7: said that they had an eighty x increase in that
Speaker 7: kind of projection in the first quarter compared to the
Speaker 7: on an annual basis, So extreme revenue growth but also
Speaker 7: still high cost.
Speaker 4: It does feel that the momentum the wind is behind
Speaker 4: Anthropic at this point, showing shouldn't we be the thinking
Speaker 4: of it as some sort of race to go public.
Speaker 5: That seems to be a lot of the narrative.
Speaker 7: I think there's no denying that you have three major
Speaker 7: AI firms SpaceX which now is an AI company because
Speaker 7: of Xai, and then open A and Anthropic, all going
Speaker 7: public or all talking about going public or planning to
Speaker 7: in the span of several months, and some of the
Speaker 7: filings here happening within weeks. So I think it's undeniable
Speaker 7: that there is this race dynamic, much like there is
Speaker 7: with their technical products, and of course going first could
Speaker 7: help set the narrative there. You know, some are questioning
Speaker 7: how much money Wall Street has to devote to these
Speaker 7: AI stocks and will the firms who go earlier absorb
Speaker 7: more of that. That being said, there's also a lot
Speaker 7: of pent up demand for getting in on the AI boom.
Speaker 7: These companies that the core AI only companies and Jennai
Speaker 7: have not been public until now. So it remains to
Speaker 7: be seen how much of an advantage there is to
Speaker 7: going first, but there certainly is this competitive dynamic in
Speaker 7: the IPO discussion right now.
Speaker 4: Bloomberg, stre and Gafari, great to have your analysis, Thanks
Speaker 4: so much. Coming on now, some news crossing the terminal
Speaker 4: that Guy Rosen, he's met as chief information security Officer,
Speaker 4: was previously oversaw the company's election integrity work. He's departing
Speaker 4: in the coming months now, it's all according to an
Speaker 4: internal post review by Bloomberg. Meta has begun a search
Speaker 4: for his replacement, the post said, and Rosen will stay
Speaker 4: at the company in the meantime. But let's get back
Speaker 4: to those IPOs, to the so called race the frenzy.
Speaker 5: Emily's Agnes with us.
Speaker 4: She is the senior venture capital research analyst at pitch
Speaker 4: pick Emany is there a risk that oxygen is being.
Speaker 5: Sucked out of the room. The fact that we've got.
Speaker 4: All of these mega IPOs just tell us the numbers
Speaker 4: that you've crunched of just how significant the wall of
Speaker 4: a new equity coming to this market is.
Speaker 8: Yes, we're really in uncharted territory. Just for a context,
Speaker 8: looking at the past ten years, it's one point five
Speaker 8: trillion dollars in terms of all of the USVC backed
Speaker 8: public listings, and SpaceX alone would be greater than that
Speaker 8: decade long figure. And in terms of the number of
Speaker 8: IPO proceeds that are being raised. SpaceX is looking at
Speaker 8: seventy five billion, opening eye Anthropic or looking at a
Speaker 8: combined one hundred billion dollars, and that is again greater
Speaker 8: than all the IPO proceeds that have been raised in
Speaker 8: the past decade. So really we're in uncharted territory in
Speaker 8: terms of how gargantium and these mega IPOs are.
Speaker 2: What I find interesting about this is it it could
Speaker 2: all happen at the same time. So what Sharene did
Speaker 2: was recap what we know. The s one is in
Speaker 2: confidentially from Enthropic. SpaceX will price June eleventh, trade soon
Speaker 2: after maybe open AI goes in September. Is it possible
Speaker 2: for all of that to happen in the balance of
Speaker 2: twenty twenty six.
Speaker 8: No, that's a really good question, and I think, like
Speaker 8: Shrey mentioned, like there is a lot of pent up demand,
Speaker 8: but it's also such a big number, and I think
Speaker 8: all eyes will really be on the SpaceX ipo to
Speaker 8: see how the demand actually plays out and if it's
Speaker 8: actually sustain has substance, because if the SpaceX ipo flops,
Speaker 8: then potentially Anthropic might wait until later to go public
Speaker 8: until the volatility evens out. So a confidential filing is
Speaker 8: one necessary step to go in public, but it's not
Speaker 8: necessarily a guarantee that it'll happen in the next few
Speaker 8: months or even the next year.
Speaker 4: What so interesting is we're almost coming back to this
Speaker 4: circularity issue.
Speaker 5: Now.
Speaker 4: You think about how Anthropic is paying one point two
Speaker 4: five billion dollars per month to SpaceX for compute, then
Speaker 4: we really get the documented files that are currently just
Speaker 4: private to us and to the SEC at the moment,
Speaker 4: the SEC has got its hands on the filing coming
Speaker 4: from Anthropic. Eventually, when we understanding them look at them,
Speaker 4: we'll see how much they're reliant on Google or on Amazon.
Speaker 4: How much is this a worry for investors? How much
Speaker 4: could this be an impact for those VC investors are
Speaker 4: also invested in many of the same names.
Speaker 8: Yes, the AI cycle is so like interconnected and also
Speaker 8: like on top of their like thirty percent of US
Speaker 8: VC bat starrups are AI native for AI adjacent, So
Speaker 8: all eyes are really emphasizing trying to see if this
Speaker 8: AI valuations and these pricings are able to be uphelm
Speaker 8: because so much of the market is interdependent and also
Speaker 8: depending on this technology to move forward and eventually become profitable.
Speaker 8: So I think this is really the big question for
Speaker 8: VC right now, and that's why there's so much emphasis
Speaker 8: on these big names and these upcoming listings.
Speaker 3: Emily, it's more than that.
Speaker 2: It's not just the commonalities on the cap tables, SpaceX, Anthropic,
Speaker 2: open AI. They're all pitching the same thing. Is there
Speaker 2: any precedent in history that gives us a warning signal
Speaker 2: about that three companies trying to occupy the same lane.
Speaker 8: Oh, that's a really interesting question. And I feel like
Speaker 8: in terms of something like such a transformative technology that
Speaker 8: hasn't seen something in the public markets, I don't think
Speaker 8: we've had such a similar precedent, and that's why I
Speaker 8: think this day and age is really really interesting to
Speaker 8: see how these megal listenings will play out.
Speaker 2: Pitchbox, SEMy Jane. Great to have you on the program.
Speaker 2: Thank you very much. Now coming up elon Musk SpaceX
Speaker 2: is shooting for the moon with the biggest IPO. But
Speaker 2: when it comes to the banks must keeping their fees
Speaker 2: in lower fourbit We're gonna have the details next.
Speaker 3: This is Bloomberg Tech.
Speaker 4: You know Musks SpaceX Well, it's negotiating to pay one
Speaker 4: of the lowest of underwriting fees.
Speaker 5: I was expected to be the largest ever IPO.
Speaker 4: So also say the company is amy in a rate
Speaker 4: less than zero point seventy five percent for the seventy five.
Speaker 5: Billion dollars it aims to raise.
Speaker 4: Let's get more Bloomberg Finance report to CASN doher Dy.
Speaker 4: That is the idea here that look er, point seventy
Speaker 4: five percent of seventy five billion is still quite a
Speaker 4: lot of money.
Speaker 5: That's right.
Speaker 9: I mean, split among twenty plus banks, it's five hundred millions.
Speaker 9: So if you're really gonna think about Morgan Stanley and
Speaker 9: Goldman Sachs, who are leading this IPO, they're the ones
Speaker 9: that are going to see the biggest benefit. But across
Speaker 9: the board, it's not a bad payday for the bank,
Speaker 9: so they're.
Speaker 5: Really happy to be there.
Speaker 9: And you're seeing that the negotiation power is really for SpaceX.
Speaker 9: They are working with all of these banks, but again
Speaker 9: they're the ones that are saying, we want to show
Speaker 9: up and we want to help you come to the
Speaker 9: market in this historical moment across Wall Street.
Speaker 3: That's a really great point.
Speaker 2: I mean, when I've been speaking to people on the
Speaker 2: SpaceX side, you know their answer on this as well.
Speaker 2: Elon mus is a very good negotiator.
Speaker 3: But even if the.
Speaker 2: Bank fees are like you know, I don't know what
Speaker 2: we're talking fifty to sixty basis points. Whenever it ends
Speaker 2: up being of an IPO where they raise seventy five billion,
Speaker 2: they go to a two trillion valuation, whatever ends up being,
Speaker 2: they'll do fine, right, Catherine, They'll be okay, They'll.
Speaker 5: Do absolutely fine.
Speaker 9: This is something that they can also tout in quarters
Speaker 9: moving forward, and we have other IPOs that are coming
Speaker 9: down the pipeline. So really, this is again this moment
Speaker 9: in history that all of the banks want to have
Speaker 9: their names tied to. It's going to lead to future
Speaker 9: IPOs that they can work on. It's going to lead
Speaker 9: to more fees that they can end up paying their bankers.
Speaker 9: And they're hoping that this is just the start, but
Speaker 9: it is supposed to be a very strong start.
Speaker 5: I mean, we've just been talking about how strong it
Speaker 5: could be.
Speaker 4: If we've got Anthropic already fighting with the SEC, if
Speaker 4: we've got open AI hot on the heels. How important
Speaker 4: is it for these bank becers. How much anxiety is
Speaker 4: there that this has got to go really well?
Speaker 9: I think that they've all been preparing for this moment.
Speaker 9: It's all of the talking points that the bank CEOs
Speaker 9: and all of the heads of investment banking, they've all
Speaker 9: been saying, we've seen green shoots, we are expecting based
Speaker 9: on our strong pipeline. Think about how many times the
Speaker 9: word pipeline has been talked about, but no one has
Speaker 9: talked about, I mean, moving beyond the pipeline.
Speaker 5: Let's talk about the deals.
Speaker 9: Let's talk about the billions of dollars that could come
Speaker 9: to the public markets. They're hoping that this sets a
Speaker 9: precedent that is going to lead to future fees that
Speaker 9: is going to keep the ball rolling.
Speaker 2: Belus Caerine Doherty on one of the most read stories
Speaker 2: so far today, Thank you. We're going to get more
Speaker 2: in the impact of the SpaceX IPO from SpaceX employee
Speaker 2: number one and now CEO of Impulse Space, which itself
Speaker 2: raised five hundred million in a new funding round. We
Speaker 2: speak with Tom Muller next. This is Bloomberg Tech. Impulse Space,
Speaker 2: led by SpaceX alumni SpaceX veteran Tom Muller, has just
Speaker 2: hit a massive four billion dollar valuation. The company raised
Speaker 2: five hundred million dollars to scale its space tugs or
Speaker 2: spacecraft that can hold satellites across different orbits. Joining us
Speaker 2: now is Impulse Space founder and CEO Tom Mulla. Tom,
Speaker 2: it's great to have you on Bloomberg Tech. I've been
Speaker 2: able to spend some time with you in SOCO right.
Speaker 2: Look at the facility, see what you're building. And you've
Speaker 2: always been super honest, like space is hard, difficult to
Speaker 2: get there five hundred million in one go. Just explain
Speaker 2: how that gets you to this world where you are
Speaker 2: like the traffic conductor in lower for a bit, moving
Speaker 2: different orbital planes for different satellites.
Speaker 10: Yeah, well, you know there's a lot happening in space
Speaker 10: right now, and we're here. We basically take over where
Speaker 10: launch leaves off. So you know, Larne vehicles like you know,
Speaker 10: like spacexfil can get you to lower th Robit and
Speaker 10: we take you everywhere else. We move you around within orbits,
Speaker 10: and we have vehicles, very high energy vehicles that can
Speaker 10: take you out to very high energy orbits or out
Speaker 10: to the moon, tomors and beyond.
Speaker 3: The very high energy bit. Is that I find super fascinating.
Speaker 2: You were demoing for me the propulsion technology you've worked on,
Speaker 2: so to explain how it works.
Speaker 3: But I think also like for a lot of the audience.
Speaker 2: Why is it necessary to move whatever the satellite is
Speaker 2: from one position in orbit to another?
Speaker 3: What would cause that?
Speaker 10: So in the in if you're talking about, helios are
Speaker 10: a very high, high energy product. You know, most satellites
Speaker 10: that want to get to geosynchronous orbit, like the very
Speaker 10: high or twenty two thousand miles out typically get typically
Speaker 10: get dropped off in the lower orbit and then and
Speaker 10: then they end up in a transfer orbit, and it
Speaker 10: can take months to get there. With Helios, we can
Speaker 10: get you there in one day.
Speaker 11: We just we have it.
Speaker 12: You know.
Speaker 10: It's basically a rocket on our rockets. It's got a
Speaker 10: big tank full of propellant and a very high energy
Speaker 10: pump fed engine on it, and it does a couple
Speaker 10: of burns and gets you to a high energy orbit.
Speaker 10: It can also take you, like a way more payload
Speaker 10: to the Moon, or to Mars, or to the outer planets.
Speaker 4: Helios, the larger is meant to be flying what in
Speaker 4: twenty twenty seven, you've already had the mirrocraft flying three
Speaker 4: missions and that was the first launch in November twenty
Speaker 4: twenty five. Al most recently in twenty twenty five. I'm
Speaker 4: interested what one hundred million dollars buys you because, as
Speaker 4: Ed says, space is hard, but it's it's also expensive.
Speaker 10: Yes, So we've more than double the size of the
Speaker 10: company in the last year, and we're continuing to hire.
Speaker 10: We've got a new facility here that we're building out.
Speaker 10: We've just got a lot of work in all sectors,
Speaker 10: you know, commercial, NASA, and government. So we're addressing all
Speaker 10: that work and we're building the highways to the space economy.
Speaker 4: You were, of course integral to the propulsion over at SpaceX,
Speaker 4: and we think now of the SpaceX mafia that's about
Speaker 4: to be created by the end of this month, and
Speaker 4: how much money that might infuse new space technologists, new founders.
Speaker 4: What does that moment mean to you for SpaceX to
Speaker 4: go public.
Speaker 10: I mean, this is this is great for building a
Speaker 10: space economy. And what I say now often is that
Speaker 10: I think the true space age is starting now. I
Speaker 10: think we're going to start building megastructures in space, which
Speaker 10: we're seeing with you know, a million days. ATA Servers
Speaker 10: was already talked about using the resources of the Moon,
Speaker 10: which is something I've been talking about since before I
Speaker 10: started this company. H this is this is the things
Speaker 10: that we're super excited for. This is this is the
Speaker 10: reason I started this company. This is the reason that
Speaker 10: employees joined to do really cool things. We're super excited
Speaker 10: about this permanent uh Moon base that's been announced by
Speaker 10: by NASA. This this is exactly what.
Speaker 3: We want to do.
Speaker 2: You know, Tom, part of visiting with you in SOCOW
Speaker 2: is like there's a ripple effect. There are there are
Speaker 2: companies born out of SpaceX's growth. There is a network
Speaker 2: of people that are SpaceX alumni. When this biggest ip
Speaker 2: of all time happens, what do you think the economic
Speaker 2: effect will be for your industry?
Speaker 10: Gig atic? I think, you know, I grew up in
Speaker 10: the Star Trek area the original series, and I felt
Speaker 10: like some you know, by the time in this age
Speaker 10: there would we be living in a Star Trek world.
Speaker 10: And I still think we're going to get there. And
Speaker 10: you've got to imagine that in a Star Trek world,
Speaker 10: the space economy is a big the biggest part of
Speaker 10: the economy right now, the space economy single digit of
Speaker 10: the global economy. And I think we're going to get
Speaker 10: there where space, by that measure, will grow faster than
Speaker 10: any other sector.
Speaker 4: It's space, It's also defense tech, and we think about
Speaker 4: the billions that the administration wants to put to work
Speaker 4: in a so called Golden dome, and I'm interested as
Speaker 4: to how that is going at the moment, how the
Speaker 4: intercept to work that we understand you've been doing with
Speaker 4: andrel how that progresses at this moment.
Speaker 13: Tom.
Speaker 10: Yeah, we're here to just provide advanced solutions. You know,
Speaker 10: the government needs to move around, they need to protect
Speaker 10: their assets, and we're here to help out however we can.
Speaker 2: Tom, do you think we'll be in a place where,
Speaker 2: like this year or next you'll have a demo for
Speaker 2: the tech or the work vendoral we're talking about space
Speaker 2: based in incepts technically, is that a realistic timeline for
Speaker 2: the next twelve to eighteen months.
Speaker 10: I can't talk about the specifics of these programs.
Speaker 2: Let me ask you this one final question on the
Speaker 2: SpaceX IPO. Yeah, reflect on how hard it was those
Speaker 2: early years for you and now how you got to
Speaker 2: this point. I know you're no longer with the company,
Speaker 2: but it's a part of the story real quick.
Speaker 3: Yeah.
Speaker 10: You know, we always said we knew what it would
Speaker 10: be hard, and it was harder than we thought. That
Speaker 10: I'm super proud of what we achieved. It's I mean
Speaker 10: amazing that this company that I was employee number one
Speaker 10: is now a trillion dollar company. It's just, you know, amazing.
Speaker 5: And now we wonder where Impulse Space goes.
Speaker 4: Now worth four billion dollars and a five hundred million
Speaker 4: dollar rais fascinating. Thank you the found the CEO, Tom
Speaker 4: Mulla there coming up. Perplexity makes a big bet on
Speaker 4: the future of how AI workloads get done. We're speaking
Speaker 4: with a CEO out of in strinav Strinavus.
Speaker 5: Next, this is bluebo Tech.
Speaker 2: Welcome back to Bloombo Tech. There is so much going
Speaker 2: on around the world. We're looking at the US listed
Speaker 2: shares of ten Cent, which follow the Asia listed shares
Speaker 2: in absolutely storing up eleven percent a report that they
Speaker 2: are bringing out an AI agent version of we Chat,
Speaker 2: and right now in this AI story, it's so in
Speaker 2: line with everything that's happening that trading has really come
Speaker 2: over into the US session and the stock up eleven percent.
Speaker 2: We're going to keep an eye on that one. And
Speaker 2: then the power of a few words from probably the
Speaker 2: world's most important figure in AI. I would play you
Speaker 2: the SoundBite, but by the time we hit play it
Speaker 2: be over. Jensen One walked on stage at Computext in
Speaker 2: Taiwan and said the next trillion dollar company about Marvel.
Speaker 3: That's it.
Speaker 2: That's the story, and the stock is up almost thirty
Speaker 2: percent as a consequence, and copy text in Taiwan has
Speaker 2: put the spotlight on the companies that are building the
Speaker 2: hardware behind the AI boom. For more on the latest developments,
Speaker 2: Bloomberg's in king who leads our semiconductive coverages with us.
Speaker 2: Probably I was going to say the most substance. We
Speaker 2: can debate that, but for the industry, one of the
Speaker 2: most important stories was sk Heinex coming out and saying
Speaker 2: pledging we are going to double our capacity over a
Speaker 2: certain timeline.
Speaker 3: Could you just take that.
Speaker 2: Explain why sk Heinex is important and why that commitment
Speaker 2: kind of was a big deal for the chip industry.
Speaker 14: S Knix is the second largest maker of computer memory chips.
Speaker 14: There's a massive memory shortage right now because of the
Speaker 14: massive amount of memory required for data centers. So Heinix
Speaker 14: coming out and indicating, hey, we're going to step on
Speaker 14: it in terms of putting more capacity in place in
Speaker 14: general helps it means okay, well, we'll get enough memory chips,
Speaker 14: maybe this growth story can continue. But the big caveat
Speaker 14: here is Cheteun, the chairman of this company. He said
Speaker 14: previously we could be losing money tomorrow. He's been very
Speaker 14: careful in the outlook for this market and he hasn't
Speaker 14: given a specific timeline here, and that would be really important.
Speaker 14: That would tell you exactly what's going on.
Speaker 4: It's really fascinating some of the details we do get
Speaker 4: out of com and I think that's really still on
Speaker 4: the thunder. Yesterday it was all about in Videa's announcements
Speaker 4: and then the negative impact I had on the likes
Speaker 4: of Intel AMD and we're waiting on Qualcom. What have
Speaker 4: you heard from some of the other companies throughout the
Speaker 4: couple of days.
Speaker 14: Well, I mean you mentioned Qualcom, you mentioned Intel, and
Speaker 14: obviously in video. One thing they all agree on is
Speaker 14: robots ain't happening as fast as we'd like. And they've
Speaker 14: all come out with essentially the same story, which is,
Speaker 14: we're going to give you hardware, We're going to give
Speaker 14: you software, We're going to give you all of the
Speaker 14: tools to bring humanoid robots to market faster. And all
Speaker 14: of these companies and others too have said that this
Speaker 14: is one of the next big markets.
Speaker 11: This is going to.
Speaker 14: Be something that really changes the economy and brings AI
Speaker 14: into the home, the office, the factory, and really makes
Speaker 14: it that pervasive story that it has to become to
Speaker 14: support this spending.
Speaker 2: Bloomberg Zy and King with the download from computext, thank
Speaker 2: you very much. It's not just chip makers pitching the
Speaker 2: furniture of computing. It computexts Perplexity took the stage with
Speaker 2: Intel to unveil what it calls the world's first hybrid
Speaker 2: local server AGENTIC inference orchestrator, a phrase that sounds like
Speaker 2: it was generated by AI itself. Here with more Perplexity,
Speaker 2: Ceo Arab and Shrinibas Aravin is great to have you
Speaker 2: back on the show. I spent all morning thinking about
Speaker 2: how do I explain this, and basically, the.
Speaker 3: Orchestrator is there.
Speaker 2: It's a piece of software to decide whether a or
Speaker 2: a part of an AI workload is best done locally
Speaker 2: on device at the edge, or if it needs the
Speaker 2: superior computing of cloud server.
Speaker 3: Is that right?
Speaker 2: Have I kind of nailed what you're trying to solve
Speaker 2: for here?
Speaker 3: That's correct?
Speaker 13: So yeah, thank you for having me again, And that
Speaker 13: is exactly correct. You don't want all your compute centralized
Speaker 13: in gigantic servers and everything running through the largest frontier models.
Speaker 13: You're already reading reports of how people are freaking out
Speaker 13: about their token costs. Some people are spending half a
Speaker 13: billion dollars per month per engineer. What you actually want
Speaker 13: is efficient token value per w per user. And that
Speaker 13: requires orchestrating privacy, accuracy, intelligence, and costs all together in
Speaker 13: one single, unified system. And that orchestration capability requires hybrid
Speaker 13: model between server side and the local and that's what
Speaker 13: we demoed today with Intel. And we're actually chip agnostics,
Speaker 13: so our solution works with Intel, it works with NVIDRTX.
Speaker 13: So just like how we've been model agnostic, we've planned
Speaker 13: to be chip agnostic here.
Speaker 2: That's interesting. So my next question was going to be
Speaker 2: why Intel? You know, what is it about Intel's role
Speaker 2: in the AIPC market and on the service side that
Speaker 2: makes it work. But if you're agnostic, what's the breakthrough
Speaker 2: that you've cracked, Like, if you've written the software, what
Speaker 2: is it you've managed to achieve in how those spaceloads
Speaker 2: are diverted. Okay, go go a bit further.
Speaker 13: So, like I said, you want one single system to
Speaker 13: route across models, files, tools, chips, servers and decide when
Speaker 13: to use which model, or when to use your local
Speaker 13: file system, your local Subasian model, your local LM, or
Speaker 13: when to use a frontier model for depending on tasks
Speaker 13: and the prompt or depending on the confidentiality and sensitivity
Speaker 13: if your files or apps. That requires you to make
Speaker 13: clever orchestration decisions balance trade offs between accuracy and costs.
Speaker 13: And that's what we're doing in our software and that
Speaker 13: computer essentially an operating system that balances all these different
Speaker 13: objectives simultaneously.
Speaker 4: I mean, you sit in such an interesting place as
Speaker 4: an orchestrator, whether it be letting people use your own
Speaker 4: hind house models, whether it's using a mix of third party.
Speaker 5: Models, and the third party models are up to or
Speaker 5: not right now, I don't haven.
Speaker 4: I just want to get your take on how you
Speaker 4: feel about competitive modes or competitive threats. If these big
Speaker 4: companies Anthropic, Open AI, SpaceX all go public in the
Speaker 4: next few months.
Speaker 13: We actually love and Thropic, Open Ai, Xai, all these
Speaker 13: frontier labs. Every time any of their AI gets better.
Speaker 13: Our unified system also gets better because we route across
Speaker 13: all of them. We basically think of Perplexity computer as
Speaker 13: taking the best of all AI and putting it together
Speaker 13: in one single unified interface and system. So all of
Speaker 13: you know how much Anthropics models have improved since the
Speaker 13: beginning of the year. What has it led to for us?
Speaker 13: Our revenue actually tripled since the beginning of the year.
Speaker 13: It's just been five months in the year and our
Speaker 13: revenue is already tripled to what that's So we're actually
Speaker 13: like very happy with all these companies's progress, and they
Speaker 13: completely deserve their I pos, so we're very excited for them.
Speaker 4: Can I follow up to you able to discuss what
Speaker 4: that revenues jumped to. There were reports in the that
Speaker 4: you're up about four hundred and fifty million dollars just.
Speaker 5: In the March.
Speaker 13: Yeah, we crossed that. I think I publicly tweeted that
Speaker 13: we cross five hundred million about some somewhere around mid April.
Speaker 13: We are announcing new numbers yet, but we're doing really well.
Speaker 3: Irvin.
Speaker 2: I've been thinking a lot about where Perplexity sits in
Speaker 2: the suite of available tools and technologies. Right research seems
Speaker 2: to be a really interesting place with Perplexity, And I'm
Speaker 2: wondering how you measure the engagement on the platform, so
Speaker 2: like it's not just like one query and done, but
Speaker 2: do you kind of track the time that an individual
Speaker 2: desk or user would stick with one query as sort
Speaker 2: of indication of success, you know, how the platform is
Speaker 2: being used, the behaviors of the userbase.
Speaker 13: So we're actually not trying to maximize engagement per user
Speaker 13: in the sense we're not actually trying to keep them
Speaker 13: longer on the platform or something. In fact, like accuracy
Speaker 13: is somewhat like towards the opposite end of that, Like
Speaker 13: if you give the user an accurate answer in the
Speaker 13: first turn, it's likely that they're not going to continue
Speaker 13: in the same chat. What we actually look at is
Speaker 13: like retentive uses, like if the same user is using
Speaker 13: Perplexity for a lot more research tasks, not just like
Speaker 13: that one single task that came with And that's that's
Speaker 13: always been the case. For example, we introduce a max
Speaker 13: plan and that's already like you know, at the beginning
Speaker 13: of the year in terms of subscriptions split between the
Speaker 13: max plan that is a two hundred dollars month plan
Speaker 13: versus the pro plan was someone like nine is to
Speaker 13: ninety one.
Speaker 11: Today it's more like thirties to seventy. So I think
Speaker 11: that that already.
Speaker 13: Shows that there are these power users who are willing
Speaker 13: to pay like two thousand dollars a year out of pocket.
Speaker 13: This is not even a enterprise because they love these
Speaker 13: superior research and orchestration and accuracy that we bring in
Speaker 13: our product.
Speaker 5: Interesting, so we're seeing the growth.
Speaker 4: You're talking about your revenue run rate right tripling, going
Speaker 4: up to almost five million dollars. I'm interested as to
Speaker 4: where the combative nature does come in because it looks
Speaker 4: like you're playing well with all the other players out there.
Speaker 5: But there are some issues in the courts.
Speaker 4: In particular, CNN, for example, has just the latest to
Speaker 4: hit you with a lawsuit alledging that you violated federal
Speaker 4: copyright laws. How are you dealing with how people get
Speaker 4: paid and what you train upon and what you feed
Speaker 4: and source to us as a user.
Speaker 13: I mean, the fact of the matter is that like,
Speaker 13: nobody has any copyright over truth and facts. Like I
Speaker 13: think we've been consistent with our position. We're very confident
Speaker 13: in our position, and we will let the legal process,
Speaker 13: you know, decide what the right thing is in that.
Speaker 11: Pretty close situation.
Speaker 13: I don't want to comment further on that, but nobody
Speaker 13: has any copyright over truth.
Speaker 4: In facts, perplexity CEO staying up late. It is like
Speaker 4: eleven thirty pm with you. We so appreciate you coming
Speaker 4: back after your Yeah, jet lag works worldwide out of
Speaker 4: industry in ourse safe flight back from Taiwan.
Speaker 5: We appreciate it.
Speaker 4: Now. Look, the AI build out maybe bigger and longer
Speaker 4: than investors actually expect. Our CEO Rene Haas has been
Speaker 4: telling Bloombog that demand from memory and compute could keep
Speaker 4: growing for years, and says the industry's biggest customers may
Speaker 4: need to share more of the cost.
Speaker 5: He's worked exclusively with Bloomog. Stephen engel Over at computext too.
Speaker 5: You take a listen.
Speaker 15: I would say one thing that's different about what we're
Speaker 15: seeing right now is the amount of compute that artificial
Speaker 15: intelligence requires is quite significant to anything before it, and
Speaker 15: it touches every single industry. It touches everything around humanity.
Speaker 15: Everyone on the planet will have some interaction with AI,
Speaker 15: whether it's AI indirectly or directly, but it affects everyone.
Speaker 15: If you think about world GDP one hundred and thirty
Speaker 15: trillion dollars, knowledge work white collar work being maybe a
Speaker 15: thirty trillion dollar market. That is a large market which
Speaker 15: today is largely under tapped. So is memory going to
Speaker 15: be short till twenty thirty? I don't know not. But
Speaker 15: could I see this demand continuing much longer than people
Speaker 15: have ever seen historically? That I do believe.
Speaker 16: So do you maybe look back at twenty twenty three
Speaker 16: and there wasn't enough investment because a lot of memory
Speaker 16: chip makers were having trouble. Absolutely, they just didn't build
Speaker 16: in that capacity or foresee the demand that was going
Speaker 16: to shoot through the roof like it is now.
Speaker 15: If the folks at Micron, Samsung, s K Hunts, they
Speaker 15: have tough jobs, and in twenty twenty two, twenty twenty three,
Speaker 15: they're all losing money and.
Speaker 16: Now they're in the trillion dollar valuations.
Speaker 15: The trillion dollar club. But cautious, right because they look
Speaker 15: at that and say, if I overbuild, where will I
Speaker 15: be when the supply crunch eases up? But I do
Speaker 15: think you may see some more innovative business models. Would
Speaker 15: hyperscalers be investing in fabs? Would there be more equity
Speaker 15: partnerships around that, so it's a secure supply. I think
Speaker 15: that's quite possible.
Speaker 16: Well yeah, so what kind of resiliency needs to be
Speaker 16: built into the system so you don't have such peaks
Speaker 16: and troughs.
Speaker 15: There needs to be a shared system, right, shared shared risk,
Speaker 15: shared investment, shared risk. I think asking public companies like
Speaker 15: a Micron to all of that risk themselves with no
Speaker 15: shared risk from the people who are the large consumers,
Speaker 15: that's very, very hard to sustain. The governments have been helping,
Speaker 15: I mean US government has helped in terms of the
Speaker 15: work they've been doing with Micron and also encouraging Samsung
Speaker 15: and Heinis to expand the US, But I think it's
Speaker 15: more than just government.
Speaker 3: That was on CEO Reneha speaking with Steven Engel and
Speaker 3: are coming up on the show.
Speaker 2: HPE's annual sales outlook crushed estimates fueled by AI demand,
Speaker 2: and its president CEO Antarionerr's joining us.
Speaker 3: Next, this is Bloomberg.
Speaker 5: Tech HPE stock.
Speaker 4: Can we just look at it skyrocketing this morning as
Speaker 4: we see its surge after second quarter results beat expectations.
Speaker 4: It raised it's fully of forecast where sales could jump
Speaker 4: by an entire one third after thirty three percent.
Speaker 5: That growth is being fueled.
Speaker 4: You know why, by massive demand for AI infrastructure joining
Speaker 4: us now HPU presidency, Antonio and Ery, you're up twenty
Speaker 4: one percent.
Speaker 5: You have let to a record high on the stock.
Speaker 4: It is a record move for the stock and you've
Speaker 4: added thirteen billion dollars in market cap. Just reflect for
Speaker 4: a moment on what people are calling a blowout quarter.
Speaker 17: Yeah, well, good morning, Caroline. Was an exceptional quarter. As
Speaker 17: you said, right, we achieve a record break results a
Speaker 17: number of key metrics. We have tremendous demand across our
Speaker 17: portfolio or portfolio is an intersectional networking, cloud and AI
Speaker 17: and that demand is durable. And therefore, you know, thanks
Speaker 17: to the results of the first half, the tremendous record
Speaker 17: breaking backlog that we have the pipeline which remains multiples
Speaker 17: of that backlog allow us to raise their twenty six
Speaker 17: guide and to provide twenty twenty seven guide six months
Speaker 17: ahead because of that durability.
Speaker 11: So we're very, very proud.
Speaker 3: Of this moment, Antonio.
Speaker 2: This is a story about demand, right an outlook, it's
Speaker 2: through HPES lens a revenue figure, but I think there's
Speaker 2: a lot of value if you could talk us through
Speaker 2: whether that outlook for twenty six and then the twenty
Speaker 2: seven outlook, which you say is evidence of durability, is
Speaker 2: a volume story or it's a pricing story.
Speaker 3: In other words, no great.
Speaker 2: Volume of servers more than you normally do, you can
Speaker 2: just charge a lot more for them.
Speaker 17: Well, first of all, when we talk about the outlook,
Speaker 17: we are actually pulling by two years the twenty twenty
Speaker 17: eight outlook that we provided last October and the security.
Speaker 11: Anitsts meet in Intra twenty twenty six.
Speaker 17: And to give us sense, you saw that our armies
Speaker 17: per share at the midpoint will be three dollars and
Speaker 17: forty cents, which is a dollar higher than the previous guidance.
Speaker 17: And at the core of that is our networking story
Speaker 17: and the improvements we have made across the entire portfolio,
Speaker 17: a combination of course, of volume in the key products sements,
Speaker 17: whether it's campus and branch, which is up almost thirty percent,
Speaker 17: in orders so the routing business, so the data center
Speaker 17: switching business orders which is a close to twenty percent,
Speaker 17: and then on the server side of the equation, we
Speaker 17: are up triple digits in demand storage for the six
Speaker 17: consecutive quarter triple digits in our private cloud portfolio, which
Speaker 17: obviously has the AI factory for enterprise continues to growth.
Speaker 17: So it is a volume story with very disciplined pricy
Speaker 17: and execution.
Speaker 4: I mean talking about discipline the fact that operating profit
Speaker 4: you see going to eighty to eighty five percent.
Speaker 5: Growth for the fiscal full year.
Speaker 4: And this in the context of memory prices, just going
Speaker 4: through the roof, how are you able to navigate what
Speaker 4: could be a significant pricing pressure bottlenecks. Still there's a
Speaker 4: lot still to be a little bit anxious about Antonio.
Speaker 5: What could disrupt this?
Speaker 17: Well, we need to go underneath the portfolio and look
Speaker 17: at the mixed caroline because now with an eleven billion
Speaker 17: dollar business in networking clearly drives a different mix in
Speaker 17: a gross margin which was record thirty six point nine percent.
Speaker 17: Let's not forget that we are ahead of plan in
Speaker 17: the Juniper and Catalyst initiatives. Both Milestone says synergy that
Speaker 17: fuels costal sales improvements and topics improvements, and then you have,
Speaker 17: of course you have the cost increases in d RAM
Speaker 17: and A nand but fundamentally there is all about the demand.
Speaker 17: I have to tell you and I comment this yesterday.
Speaker 17: Customers need access to this technology. You guys have covered
Speaker 17: extremely well the AI momentum both in the buildout, but
Speaker 17: we were very pleased to see the acceleration and enterprise
Speaker 17: which is driven by that option, especially in AI infancy.
Speaker 2: There are lots of things happening on premise back hybrid cloud,
Speaker 2: as we just discussed with Perplexity, is becoming increasingly important
Speaker 2: in your outlook or even in the court of gone.
Speaker 2: Was this a story about one big customer that changed
Speaker 2: the trajectory for you or are you seeing new types
Speaker 2: of customer? It's not just a hyperscale a story anymore.
Speaker 3: Now.
Speaker 17: We have been very selectively playing in the AI scale
Speaker 17: in terms of profitability as well as working capital. Because
Speaker 17: we need a lot of working capital. We have prioritized
Speaker 17: paying down the debt and making sure we drive the
Speaker 17: profitable growth tour networking, cloud, NAI need enterprise and sovereign
Speaker 17: and inferencing. So this is not one customer. This is
Speaker 17: a number of many, many customers. I spoke yesterday about
Speaker 17: some of the customers that we are winning, that they
Speaker 17: are bringing that infrastructure on premise because for compliance reasons,
Speaker 17: governance reasons, data privacy, reasons, security reasons, they need to
Speaker 17: be on premise. And I give an example of my
Speaker 17: own use case. We inside HP we have twelve hundred
Speaker 17: AI use cases, of which two hundred and fifty are
Speaker 17: in production.
Speaker 11: We actually use a combination.
Speaker 17: Of proprietary or close models and open models, and we
Speaker 17: have very stringent governance and we do it on premise.
Speaker 17: And we see that trend happening across the enterprise more
Speaker 17: and more.
Speaker 2: I'm going to be very dry and very specific with you, Antonio.
Speaker 2: Is this an enterprise super cycle or is this something
Speaker 2: different where agentic ai leads to a complete structural shift
Speaker 2: on how all kinds of companies change their spending habits.
Speaker 17: What do you see is the ladder And I think,
Speaker 17: you know AI enterprise will accelerate. But the reality is
Speaker 17: that agentic AI is transforming the way we do business,
Speaker 17: is transforming business processes, workflows, and is making companies more
Speaker 17: agile and efficient.
Speaker 11: So that's what we see today.
Speaker 17: And I think we are early in the enterprise adoption
Speaker 17: and I think you know, customers now want to make
Speaker 17: sure they are not left behind. We have a say
Speaker 17: inside the company and the future belongs to the fast
Speaker 17: and so.
Speaker 11: You got to move really fast.
Speaker 17: And we learn a lot through the COVID right through
Speaker 17: the own ramp to digital, so is the ladder. And
Speaker 17: I'm enthusiastic about this because it really helped customers to
Speaker 17: be more competitive in the market, which ultimately is the
Speaker 17: teas is about the eye productivity.
Speaker 4: It's about productivity, and many worry that means few jobs.
Speaker 4: That means change in labor. Have you seen any changes
Speaker 4: the way in which you're hiring, Maybe you don't need
Speaker 4: as many employees. What do you think about the narrative?
Speaker 17: Well, definitely, the type of roles you're hiring is different.
Speaker 17: But inside the company, we have a very aggressive talent
Speaker 17: development succession plan. In fact, this afternoon I'm going to
Speaker 17: have a session with my entire team about that.
Speaker 11: But the skill sets of the future have to.
Speaker 17: Evolve, and you know how we to remind our sixty
Speaker 17: five thousand employees to use this technology in their fabled
Speaker 17: to become more productive. And I believe everyone, everyone, including yourselves,
Speaker 17: as an incurs you got to be you have to
Speaker 17: have a minor in AI, have to use the technology
Speaker 17: is going to be a competitive advantage in every role
Speaker 17: across the enterprise.
Speaker 2: We're using the Technology HPE president and CEO Antony and
Speaker 2: Area back on Bloomberg Tech.
Speaker 3: Thank you very much. Some news.
Speaker 2: The White House just released an AI executive Order and
Speaker 2: it says it will select trusted AI partners within sixty days.
Speaker 3: Been bosing a tech headism.
Speaker 2: Mike Shephard joins us with the details, go into the details.
Speaker 2: What is this, What is the government trying to do?
Speaker 3: What is it saying?
Speaker 12: Well ed, We're still reading through it right now. This
Speaker 12: is the director that President Donald Trump was set to
Speaker 12: sign about two weeks ago, but then abruptly put the
Speaker 12: whole thing on pause, expressing some concerns about elements of
Speaker 12: the plan that he didn't like and that he thought
Speaker 12: could impede innovation. In essence, this directive calls for the
Speaker 12: government to work with AI developers on a voluntary basis
Speaker 12: and gain access to cutting edge frontier models to determine
Speaker 12: whether they could pose a cybersecurity risk. The whole idea here, ed,
Speaker 12: is really to try to ensure that security risks posed
Speaker 12: by artificial intelligence are somehow rained in and nipped in
Speaker 12: the bud ahead of time by the government and the
Speaker 12: companies working together. Voluntary is a word that appears several
Speaker 12: times in the order, and the idea is that the
Speaker 12: government will be cooperating with the companies rather than dictating
Speaker 12: to them.
Speaker 5: Yeah, it really is a voluntary framework.
Speaker 4: With AI developers, they talk about collaborating, but they also
Speaker 4: talk about benchmarking. Mike, who are the people in the
Speaker 4: room who are able to do that benchmark how a benchmarking?
Speaker 4: How are we going to get that expertise driven through?
Speaker 12: Well, that's a great question, because to make the determined
Speaker 12: about whether a model should even be covered by this order,
Speaker 12: whether it's events enough, say Mythos, for example, you would
Speaker 12: have to have a room full of experts, and the
Speaker 12: ideas that you would have people from various departments within
Speaker 12: the government, people who have classified clearances, and they would
Speaker 12: be working in a classified setting, in a top secret
Speaker 12: process to determine whether a model would even qualify under
Speaker 12: the terms of this order, whether it has the kinds
Speaker 12: of cybersecurity capabilities that we've seen identified in Mythos such
Speaker 12: to be a worry of the government and of industries
Speaker 12: more broadly. Now, what we have seen the order also
Speaker 12: lay out is a process now through which federal agencies,
Speaker 12: state and local authorities, and operators of critical infrastructure would
Speaker 12: also gain access, again on a voluntary basis from the
Speaker 12: companies to these models that are determined to be so
Speaker 12: cutting ash that they could post some sort of cyber
Speaker 12: risk and could also be used to test networks for vulnerabilities,
Speaker 12: much in the same way that Mythos has been described
Speaker 12: to us.
Speaker 3: Now, what we've seen, Caro, is.
Speaker 12: That this is coming the very same day that Anthropic
Speaker 12: is releasing Mythos on a much wider basis.
Speaker 4: Yeah, to another one hundred and fifty additional organizations around
Speaker 4: the world. My Bloomberg's Mike Shepherd, thank you very much. Indeed,
Speaker 4: that does it for this edition of Bloomberg Tech Ed.
Speaker 3: Yeah, a lot of.
Speaker 2: News in today's show. Check out the podcast to recap.
Speaker 2: You know where to find it online, Apple, Spotify, iHeart
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Speaker 3: This is Bloomberg Tech