October 7, 2025 • 37 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the rise of Dell’s shares after the company nearly doubled its growth estimates for sales and profit through to fiscal 2030. Plus, CoreWeave CEO Michael Intrator talks about the company’s latest acquisition and weighs in on the wave of compute deals. And, Tesla is expected to announce a new cheaper version of its Model Y.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hide in New York
and Eva Low in San Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up. Dell rises after almost
doubling its growth estimates for sales and profit through the
fiscal twenty thirty, boosted by demand for AI products.
Speaker 3 (00:33):
As we speak with a key AI player, the CEO
of Core, We've joins us on the comedy's latest purchase
and a way in on the wave of compute deals.
Speaker 2 (00:42):
And Tesla might unveil a new cheaper version of its
model why as soon as today.
Speaker 4 (00:48):
We'll discuss what to expect.
Speaker 3 (00:50):
Meanwhile, let's check in on these market said, which maybe
take a bit of a breather. Maybe there's some possibility
it's some profit taking. As we have just ramped higher
and higher day after day, notching new records in the
five hundred. We are flat on the Nasdaq one hundred.
Remember we still got a government has shut down on
our hands, but we do still see some buying of
some key names. What are you looking at?
Speaker 2 (01:09):
Yeah, our top story is Dell, and much like the
broader market, it's lost a bit of steam. We were
up almost six percent earlier in the session, now up
two percent. Through the fiscal twenty thirty, they have almost
doubled their outlook. They're seeing top line growth seven nine percent,
bottom line growth of just an EPs fifteen percent. But
the story is really clear. Traction in the AI server business.
(01:30):
They have a backlog, margins will improve. It's worth digging
into it is.
Speaker 3 (01:34):
And we do that. Obninburg's Brodie Ford, just how seismic
is this? To give us the guidance all the way
out to twenty thirty, you.
Speaker 5 (01:41):
All said it great. It's AI servers, right. Somebody needs
to buy and video chips, package them into servers and
sell them to somebody else, and Dell has emerged as
a very successful company doing that. The opportunity appears larger
than Wall Street had anticipated. Sales are going to be
pretty healthy growth in the coming years. Though, of course,
(02:02):
as with a lot of AI infrastructure, the question is margins.
Those are going to remain pretty tight. Those operating margins
in the single digits, which often gives investors' anxiety. But
the growth rates are good enough that today doesn't matter.
Speaker 2 (02:17):
The numbers are really interesting. So in the quarter gone.
Dell did booked five point six billion dollars worth of business,
They shipped more than eight billion dollars worth of servers,
and they have this like almost twelve billion dollar backlog.
And how they're explaining it is that server margins right
now are depressed because it costs money to move quickly.
I think that's the conclusion I'm getting anyway.
Speaker 5 (02:39):
Yeah, that's right. I mean it costs a lot of
money to move quickly. These are massive deals. The supply
chain is tight, and so if you want to be
a buyer that gets priority, you're probably going to pay
a little more. The AI in for a market, whether
you're talking about compute servers really anybody, but in Vidia,
it's very competitive right now, and so if you want
to move with SKIN, you have to accept some lower margins.
(03:03):
Dell has been willing to do this, and it's winning
some big deals from companies like core Weave.
Speaker 4 (03:09):
Cool Weave, big deal.
Speaker 3 (03:10):
We talk about G forty two. We think about the
global impact here, But Brody, at the moment, we're in
this market where anything where you bolt on AI helps
your stock do relatively well.
Speaker 4 (03:19):
Just talk to us about what.
Speaker 3 (03:20):
IBM has been announcing and the folding into Panthropic.
Speaker 5 (03:23):
IBM is another one of these companies seen as a
bit of a legacy company, forgotten a bit by the
average investor on Wall Street. But today they announce that
they're going to be using Anthropics Models for their coding assistant.
This matters because Anthropics model really is the favorite for
coding and so I think this is being taken as
(03:43):
a bit of a co sign for IBM's tool that hey,
large enterprises, you're not just going to pop into cursor.
You're probably going to do it through a more regulated environment,
and maybe IBM will be that vendor.
Speaker 2 (03:55):
A slight tangent. But yesterday Brad Lightcap, whose open AI COO,
told me that Codex, which is their somewhat similar product,
the use of that is up ten x since August.
So and I noticed on social media there's a lot
of debate about like which one's better leave that to
the blomboy tech on us to decide. IBM does software.
(04:17):
I think a lot of people don't appreciate that this
story's indicative of that. Just explain what they offer exactly.
Speaker 5 (04:23):
IBM offers a variety of software, whether it's in you know,
financial processing, transaction whether it's in coding assistant, it's a
lot of somewhat custom development helping large enterprises get all
of their data in order. Let's say run AI models
on it. Let's say, you know, use it your existing
(04:43):
data and your coding environment. They have a pretty wide swath,
and as you said, folks don't realize a lot that
it's their largest business segment at this point. This is
not the kind of outsourcing IBM of years past.
Speaker 2 (04:57):
The most Brady Ford on some of what's happening in
tech today, Thank you very much. When Caroline and I
woke up this morning and sat at our desks, markets
were pushing higher. There was a lot of enthusiasm about AI,
and we've lost a lot of steam. I'm not saying
it's the fault of this program going to air, but
those major indices are now marginally in the red. There
are concerns that we are losing steam, and the words
(05:21):
AI and bubble keep coming up a lot. Let's get
a discussion with Janet Moui, RBC bring Dolphin, head of
market Analysis. All of these deals announced this week were
driving us at the index level when it comes to technology,
we're now losing steam. What is the principal direction of
travel here, Janet, when it comes to the tech sector, Hi.
Speaker 6 (05:43):
Thanks for having me eds.
Speaker 7 (05:45):
I do think that the Marcus having rallied very strongly
is almost like a strict line, particular for the chip companies.
Speaker 6 (05:53):
So I think tiking a.
Speaker 7 (05:54):
Breather is absolutely normal, and I think some investors would be.
Speaker 6 (06:01):
So I'm not too worried about that.
Speaker 7 (06:03):
I do think that the direction of travel would continue
to be atward because what we have seen is that
there are a lot of mega A ideals and they
involve a lot of infrastructure, a lot of CAPPAC spending
and its stays within the AI ecosystem, and I think
it just gives you a visibility over that longevity of
(06:23):
that AI spending.
Speaker 4 (06:25):
Janet.
Speaker 2 (06:25):
The driver in Monday's market was the deal between a
MD and open Ai. We spoke to a m D CEO, Lisa, Sue,
listen to this.
Speaker 8 (06:34):
I have full confidence in open Ai, sm Greg Sarah.
I mean, this is a massive opportunity for us right now.
Speaker 9 (06:41):
Right here.
Speaker 8 (06:42):
It's about who has the most compute and how fast
can we get it online, and we're committing to doing
this together.
Speaker 4 (06:50):
The question was.
Speaker 2 (06:51):
Whether open ai was good for the money that it
needed to fund all of these projects, and the market
seems nervous about that.
Speaker 4 (06:58):
How nervous about it are you?
Speaker 6 (07:02):
So?
Speaker 7 (07:03):
So far, I think the financing has been coming from
really investors and companies with very deep podcasts. I mean,
we're talking about the hyperscalers, including Nvidia's investment into opening Air.
Speaker 6 (07:14):
That's one hundred billion there.
Speaker 7 (07:15):
So I guess you know, from the liquidity perspective, that's
pretty ample, and so far we're not seeing a lot
of credit or debt financed activity going on into this
AI spending.
Speaker 6 (07:27):
So I think on that front, time comfortable, and.
Speaker 7 (07:30):
I think I think the key thing is that there's
just so much demand to compute out there, so many
companies can benefit from that and the building of the
infrastructure in AI. It involves not just a single company,
but really countries and many companies working together in the ecosystem.
Speaker 6 (07:47):
So I believe that this this really gives you.
Speaker 7 (07:50):
Visibility of the longevity of this AI trend going forward.
Speaker 3 (07:54):
But the reporting keeps from coming back to us. Why
if there's unlimited and demand for compute, does AMD need
to give so called incentives it feels like to open
AI to share in on its own winnings the future revenue.
Why does the video have to put one hundred billion
dollars to work in terms of equity investment in open
AI if they should be just winning out for the
(08:15):
sheared demand and scale of compute. And why does Oracle
become one of the best performing stocks when clearly some
of the profit margins don't always accrue to an Oracle.
How do we decide which company really should win here?
Speaker 7 (08:27):
Janet, Yes, so I think the big players in this
AI eqalsystem, in this build up of infrastructure, will likely
be clear beneficiaries.
Speaker 6 (08:39):
I think that's more on the hardware, the equipment building
site of AI.
Speaker 7 (08:44):
I mean, there will be definitely some big winners in
the software side of things, but we don't know what's
the next killer appso that's a bit more difficult. And
that's why I think the key favorite for investors remain
that AI infrastructure build out, whether you talk about data center,
cloud compute, and et cetera.
Speaker 6 (09:02):
And I believe that, you know, I think some concern
is right.
Speaker 7 (09:05):
A lot of this, you know, this close loop of
capital equality investment is based on confidence. It's really the
confidence that there's going to be insensuable demand for compute,
and it's really hard to gauge how much of that.
But if we do believe in this, the leaders in
the AI, I mean, Jason Juan talked a lot about
(09:26):
how the demand for compute is just going to be
so many, you know, tenfolds up from here. So I think,
you know, I would like to listen and believe in
the expert in terms of their vision on how much
there is on the computer demand and solar Far it
seems very very solid.
Speaker 3 (09:45):
Yeah, promises and vision, But Janet, what data do you
turn to for hard fundamentals, because at the moment the
MIT report showed that some of these ultimate focuses on
productivity aren't actually paying off. Where is it that you're
going to get your confidence that can grounded in facts
not vision?
Speaker 7 (10:03):
I mean, so far, if you look at the corporate
earnings growth, right, you look at the hyperscaler, they're still
delivering double digit earnings growth, and in fact, you can
attribute a lot of that to AI, the improved efficiency
in say advertising and cloud computing demand and things like that.
It's actually a lot of a big proportion of the
(10:25):
earnings delivery is already based on AI. And I think
there's still a lot of potential. And I think in
terms of the actual data, I think you just need
to look at the earnings revision. I mean typically you
can see today from Dell just one example, that earning
estimates and revenues keep being revised outwards, so there's really
clear visibility you're going to as far as twenty thirty.
(10:49):
So I think these are really hard data that you
can look at.
Speaker 3 (10:52):
Januu, thank you for that read from RBC brew in Dolphin.
It's always so great to check.
Speaker 2 (10:57):
In with you.
Speaker 3 (10:58):
While coming up, we're going to speak with my trader
call We've CEO. It's going to be talking about the
latest AI deal that he's doing a bit of M
and A and where is he finding confidence for the
never ending wave of AI deals. This has pretty big
tech AI Hyperscala coll We've has announced it SA to
(11:26):
buy UK based Monolith AI, expanding beyond cloud infrastructure to
offer broader AI solutions, in this case to industrial and
manufacturing companies joining us. Now, Michael Intrader call We've CEO.
There's been a wave of M and A coming from me. Michael.
I want to understand why you're broadening out in this way.
Speaker 10 (11:41):
Yeah, thank you very much for having me. It's exciting
to be back. And yes, we've been. We've been quite
active on the M and A front as we continue
to build and broaden our offerings. Many of them are
organic things that we're building internally and as you can
see with the model is a ideal. As you can
(12:01):
see you with the open pipe deal, as you can
see you with the weights and biases deal that we
did earlier this year. There is a tremendous focus that
we have on broadening out how we're going to be
able to support our clients from the software side. Obviously
there's also the core scientific transaction that is in process,
(12:24):
and once again it is part of our vision of
being able to offer a turnkey solution from the bricks
all the way up through the infrastructure and through the
software to be able to serve our customers in the
best way possible.
Speaker 3 (12:39):
And is that because also it's more profitable, Michael, We're
looking at reports at the moment about Oracle and ultimately
how Razu thin its profit margins are when you're thinking
about renting out compute because of the cost of ultimately
the GPUs coming from Nvidia, how hard is it to
make your bread and butter work? From a real profit
margin perspective, Yeah.
Speaker 10 (12:57):
Look, you know, the profit margins we're able to garner
with the infrastructure that we sell are significant.
Speaker 9 (13:05):
We're excited about it.
Speaker 10 (13:06):
We've really been able to drive our business in accordance
with our objectives. We're scaling at an incredibly fast paced
and so with that you get short term distortions, but
in terms of the business strategy and execution, couldn't be
happier when you think about where the space is today
(13:27):
and where the space is going to be over the
next several years. The broadening out of our offering of
software solutions really allows for an incredibly effective way of
bringing on new clients that are going to pay for
not only the infrastructure but also the services that they
get when they need to be able to integrate artificial
(13:51):
intelligence into their broader mission. And so we're excited about that.
We think it's the right way to go. We've been
aggressively pursuing it. We brought on some great teams and
you know you'll be seeing products coming out of those
teams imminently.
Speaker 2 (14:04):
Michael, The top story today is Dell roughly doubling its
growth projections for both sales and profit through fiscal twenty
thirty largely because of AI server demand. And you are
one of the key customers for Dell in that respect.
From the customer's perspective, what does that kind of bigger
picture forecast from Dell signal to you.
Speaker 10 (14:26):
Look, you know, there's a lot of noise in the
space again, and this happens periodically, and you know, but
when you take a step back, you're seeing incredibly strong
demand from Dell. You're seeing incredibly strong demand across the
hyperscalers as they're able to embed AI into their products.
(14:48):
You know, the profits that those are driving are the underpinnings.
Speaker 9 (14:51):
You're asking about what people look to.
Speaker 10 (14:53):
That's what they look to, right like, they look to
people that are able to generate revenue from their existing
client base using AI.
Speaker 9 (15:00):
And that is.
Speaker 10 (15:00):
Incredibly strong and we've seen it repeatedly. You're seeing it
again with Dell. It's really exciting. And once again you
zoom out just a bit here and it's really uh
an incredible space going through an incredible transition. That transition
is causing a systemic imbalance in.
Speaker 9 (15:18):
The infrastructure side, which is what drove us towards UH,
the UH.
Speaker 10 (15:23):
The deal UH that we are looking at with Course Scientific.
Course Scientific is an infrastructure provider for us UH. They
are one of many, you know, over the since our
last earnings call, we've increased our UH contracted pipeline of
power from two point two gigawatts to now up to
(15:44):
two point eight gigawatts, which is a new number that
we're putting out there, of which none of that comes
from Course Scientific. We have broadened our strategic relationships with
other priortividers of the infrastructure. A great example of that
is Galaxy Digital, you.
Speaker 9 (16:00):
Know, where where we're able to go ahead and and and.
Speaker 10 (16:04):
Get large blocks of contiguous power to continue to buy
infrastructure that will be made available to our clients as
they continue to build. And ultimately that brings us back
to this particular acquisition that we're looking at.
Speaker 9 (16:19):
You know, it's an acquisition that we put out there
several months ago.
Speaker 10 (16:22):
Of course, Scientific provides core Weave with over five hundred
megawatts worth of infrastructure which we currently have contracted. Therefore,
you know, we have a great relationship with them. Regardless
of the outcome of this UH acquisition, we will continue
to have a great relationship with them as they deliver
power to us.
Speaker 9 (16:41):
Within our data centers that we share with them.
Speaker 10 (16:44):
It is a small and shrinking part of our portfolio,
and ultimately that led us to, uh, you know, the
position where you know, really, under no circumstances will we
readdress the bid that we put out. That's the number.
We think it fitly represents the value for them. We
think it will be great for the two companies to
move forward together. The systemic imbalance within the infrastructure is
(17:09):
causing you know, it really is stressing the supply chains
and cause all kinds of delays.
Speaker 2 (17:16):
Yeah, I'm sorry to cut you off. We're going to
run short of time, and I've got to ask you this.
Twenty four hours ago, we had AMD's CEO Lisa Sue
and open AI president Greg Brockman on the program. There
are lots of unasked questions about the six gigawats of
capacity they've agreed will call. We participate and support in
that arrangement.
Speaker 4 (17:36):
Just very briefly.
Speaker 10 (17:38):
Yeah, So we support OPENINGI enormously across the space, and
we have great relationships with AMD. We use their infrastructure
within our portfolio. How they choose to divvy that out.
Speaker 9 (17:48):
We don't know yet.
Speaker 10 (17:49):
You know, we're more focused on the fourteen you know,
the minimum deal that we did two weeks ago, which
was a minimum of fourteen point two billion dollars, which
will continue to spand with Meta that will come online
in twenty twenty six. We're really excited about that. And
you know, the the AMD deal with Opening Eye is
(18:10):
just another example of the recognition across the space of
how much of this infrastructure is required and how much
demand all of these providers of artificial intelligence are encountering.
Speaker 2 (18:23):
Michael and Trader of Koby, thank you very much for
being back on Bloomberg Tech. Now coming out, Tessa's set
to unveil a more affordable version of its model.
Speaker 4 (18:31):
Why we have more on that next.
Speaker 2 (18:33):
This is Bloomberg.
Speaker 11 (18:34):
Tech's time now for Talking Tech and first Up Bank
of New York Mellon But is exploring tokenized deposits, enabling
clients to make payments using rock chain technology.
Speaker 3 (18:55):
We look at speed up settlement time, reduced costs. Other banks,
including JP, Morgan and HSBC I've made similar product moves.
Plus app Lemon, while it's facing a probe over its
data collection practices. According to sources, the Securities and Exchange
Commission is investigating whether Apple and violated service agreements on
pushing targeted ads. Have Love and declined to comment on
the matter. And Elil Musk named a former Morgan Stanley
(19:18):
executive as the chief financial officer of XAI. It's all
according to reporting The Financial Times, Anthony Armstrong worked on
Musk's purchase of Twitter. He will oversee the finances and
Musk's AI startup and the social media platform now called
x Of course ed.
Speaker 2 (19:32):
Tesla is set to unveil a new cheaper version of
its model Y as soon as today. That's according to sources.
Bloomberg's Craige Trudell Our Global Autos are joins us from London.
You and I worked on this together. This is what
I'm hearing from sources inside Tesla that it is just
a more affordable model. Why fewer features They engineered cost
(19:53):
out of the battery pack and the motor. But also
it's kind of been hiding in plain sight because must
and others discuss this on the most recent earnings. Cool.
Speaker 12 (20:03):
Yeah, one of the more colorful moments on that call was,
you know, some of the other executives at the company
kind of dancing around these questions about what this more
affordable Tesla would be and must just coming right out
and saying, let's let the cat out of the bag.
It's it's just a model. Why so, you know, I
think the expectation here, of course, is that this by
by taking some of the content out of the vehicle,
(20:25):
maybe you know, making it a little bit less attractive
from from a range perspective, but more attractive from a
price perspective.
Speaker 7 (20:33):
You know.
Speaker 12 (20:34):
The hope here is that that some incremental consumers who
maybe we're going to be priced out of this vehicle now,
can can maybe afford it with this seventy five hundred
dollars tax credit going away. And I think that's going
to be you know, one of the key questions for
the next earnings call from Tesla is you know, just
how how steep of a cliff are we looking at here?
Speaker 4 (20:53):
Now that that.
Speaker 12 (20:54):
Incentive has been sort of pulled out from under the industry.
Speaker 3 (20:57):
I can see that that reacts to the finding of
the tax credit, But there's been this ongoing call for
them to offer a less costly version of the ev
largely because of China competition. Is it enough?
Speaker 12 (21:10):
I think, you know, that's a really fair question. And
Ed's reported on this going back quite a while that
you know, Elon Musk is not particularly interested in expanding
the lineup with an altogether new vehicle when his in
his mind, this is a company that's on the cusp
of making vehicles capable of driving themselves. And so you
(21:30):
know why sort of you know, bother with with introducing
a more affordable vehicle and competing with the likes of
a Corolla or a Civic when you know what you
have in the lineup is on the cusp of doing
something that you know no other manufacturer is going to
be capable of doing. The question, of course, is can
he make good on that sort of you know, promise
(21:51):
or vision.
Speaker 2 (21:52):
You know, Craig and Caroline Tesla did not respond to
our requests for comment, and you know, there's a lot
of speculation out there that it could be a roads
and we're not expecting some big event. You know, Craig,
you've been editing this stuff with me. The frank reality
is we just don't know. But Caro, you know, we're
waiting to see what happens.
Speaker 3 (22:11):
We do, we'll wait for it to drop, even if
it's stealth mode, but you're never in stealth with your reporting,
and Craig, we thank you for this is the editor
on it. We appreciate your time. I meanwhile coming up
look open Aiyes, Golden Touch, how companies are benefiting. I'm
just going to mention of the AI Darling, that's next.
This is Blumbad Tech.
Speaker 4 (22:40):
Welcome back to Bloomberg Tech.
Speaker 2 (22:41):
Yesterday afternoon, I'm sat in a warehouse in Fort Mason,
San Francisco. Sam Ottman of Open Eyes on stage. Loads
of open Ai execs are on stage. They name check
all of these companies and some of the stocks go ballistic.
One of them is Figma, and Figma basically spikes up
sixteen percent at one point, and yesterday said closes up
seventy percent. It's up again for a second day, all
(23:04):
because of a name check on stage by open Ai.
Actually one quick stack carrot. Figma's up for the first
time for four straight days since it listed in July,
so it's on a bit of a run anyway. But yeah,
let's dig into what's happening with the Golden Touch.
Speaker 3 (23:20):
Let's because the guy's been writing all about our equities reporter, right,
nos selca been looking at this so called golden touch
for many a name that sawed yesterday, Figma really holding
onto those games. Look, they get name checked, but you
are seeing a folding in of the software within chat ept.
It's almost a bit of a lifeline when we're worried
that some of these companies were going to be made
redundant in some way by open Ai.
Speaker 13 (23:41):
Yes, absolutely, there's been a lot of concern that open
Ai or these other large language models would really start
to eat the lunch of these more established legacy software companies.
We saw all kinds of mentioned yesterday other companies including HubSpot,
Salesforce is really going on down the line, and I
think there's a little bit of relief that open aim
be working with these companies integrating them into its service,
(24:03):
as opposed to just you know, offering sort of competing
services that might really represent a strong force of competition
for them. So yeah, these kinds of mentions we really
saw some immediate spikes yesterday really across sectors across the market.
Online travel companies, even Mattel saw a little bit of
a pop after it was mentioned. And it's a demonstration
(24:23):
of Sora the video generation service.
Speaker 2 (24:27):
And you reflecting your piece about how if open aiyes
has the golden touch in AI, it's really been in
Nvidia that's been the golden ticket and had a similar
effect on other stocks.
Speaker 14 (24:37):
Yeah.
Speaker 13 (24:37):
Absolutely, So this is something that we've been seeing for
as long as AI has been a major company or
major theme in markets. And of course in addition to
all the companies we've been talking about. Obviously yesterday we
had the huge jump in AMD on the back of
the news with open Ai. We had last month huge
gains in Oracle. So certainly this has been to trend
all these companies that are really seen at the cutting
edge of AI, anything that sort of like has any
(25:00):
kind of connection to them. We do see stock reactions now.
In many cases the stocks pulled back today. I mean
you mentioned Figma maybe up still, but I know Salesforce
was down, some of these other stocks down today. So
it's not proving to be a lasting bounce, but certainly
just a mere excitement. It seems like it's getting a
lot of people, at least in the short term excited.
Speaker 2 (25:16):
Blue most rhyme for Stellaka on the moves that matter,
Thank you very much. So we've talked about Figma, we've
just shown it just then one of the names that
absolutely spiked after the mention on stage from Sam Altman
and open Ai it's going to be integrated into chat
GPT through an API, a third party. It was one
of the key pieces of news from Opienais dev day.
We've got to sit down with Pigma CEO Dylan Field.
Speaker 15 (25:40):
There wasn't really like a negotiation of any kind. It
was a collaboration. And are you know me our engineers,
our frog people. We're talking with their engineers, their Frog people.
We just have like a slack channel going. I was
literally do I mean their engineers up to think midnight
last night? Wow, just identifying longtail issues that they're checking
out to make sure everything's ready for your day. And
(26:02):
the team has been amazing to work with, and yeah,
just in general, been very thankful for the partnership and
the chance to go build us to figure that.
Speaker 4 (26:10):
Out on the chatterbuty system.
Speaker 2 (26:13):
Dylan, I know that you probably weren't paying attention to
this particular point, but during the early part of the keynote,
Figmas shares when ballistic. Frankly, many other names did as well.
When they were going through the list of partners that
will be at API access through the chat GPT.
Speaker 4 (26:30):
What does that signal to you.
Speaker 2 (26:32):
About you know, when open ai communicates there is that
level of response to your from your investors and the
technology industry at large.
Speaker 15 (26:42):
Yeah, you surprised me with that earlier before we started
talking about an interview, and I'll a schecond later. But
I don't know as the honest answer, because there's not
really something that I'm as tuned into. I told the
team before we iPod, during the IPO. After the IPO
number goes up, number goes down. What matters of the
(27:03):
inputs every day We've got to be driving to make
sure that we are making a better user experience, better
products for all of our users on the platform. And
so I think if it means anything to me, people
see possibility.
Speaker 4 (27:17):
And how these systems can work together.
Speaker 15 (27:20):
But now we have to go make sure that we
prove it and then it's great and hopefully it's just
a start.
Speaker 4 (27:25):
There's a lot more we can do very quickly before
we let you go.
Speaker 2 (27:28):
You know, you talk, it's about speaking with the slacking
the open ai engineering team until very late last night,
just as a moment in time like this dev day
where there are thousands of people here in Fort Mason,
San Francisco, in your technology career, could you try and
summarize what you think is happening in particular with AI
and what's happening in this city.
Speaker 4 (27:49):
I think it's a moment of excitement.
Speaker 15 (27:52):
And I mean, look, if you're an engineer, if you're
a designer or a product person, what do you love?
You love new toys and there are new toys every
week or two right now. Toys you can go build
with things that you can go and use to invent
the future and create new workflows. That's exciting for a technologist.
(28:13):
And you know where all it goes. Nobody knows if
they tell you, they do their lines you or to themselves.
I don't know where everything's headed. But I think that
definitely it's a moment of excitement right now, and we're
excited about all the change we can make for our
users and how we can make their experience using Figma matter.
Speaker 3 (28:33):
Such a great conversation ed there with Pigma CEO Denn Field. Meanwhile,
NYSEC owner Intercontinental Exchange it puts to invest as much
as two billion dollars in cash into Polymarket, following the
crypto based betting platform at roughly eight billion dollars from
all being most cafin dooldy here with the news, and
it's interesting they're betting on the future growth of this company,
(28:53):
but also using its data within nys is offering.
Speaker 4 (28:57):
That's right.
Speaker 16 (28:58):
The data is really the value that polymarket can provide
to ICE and its client base. So these are large
institutions used to trading on the New York Stock Exchange
options exchanges that ICE operates, and now those users are
going to be having the ability to pull from Polymarket's data.
(29:19):
Data is an incredibly valuable part of exchange operators how
they're growing their own business. And at the same time
this announcement this morning, there was another part about tokenization.
That's another path forward for these exchanges as they're looking
to innovate, and if you're a storied institution like ICE,
(29:39):
you might not be able to do that without these
new incumbents, the crypt native firms that have already started
to build and to tokenize themselves. Now they can come
forward with their own ideas and partner with ICE in
this way.
Speaker 2 (29:55):
Betting on prediction markets was a story around the twenty
twenty four US presidential election, and so I don't know like,
give us your reporting on the deal itself to invest
This is something that moved very quickly. It's something that
you know, they've been talking about for a while.
Speaker 16 (30:10):
So the prediction market is a competitive space. It's been growing.
You have the likes of Calshi and Crypto dot Com.
These are all companies that have started to put forth
predictions in the form of In many cases it's a
binary yes or no, and you can apply this to markets,
and I believe that is where this deal itself is
(30:32):
going to start. It's going to be a simple will
the value of bold, for example, or another asset class
cross a certain benchmark and it's going to be a
yes or no and go from there. But you can
also extend that to as you mentioned politics. Eventually sports
will be another very big potential asset class that can
(30:53):
expand there's questions around regulation of how that might work.
But if you have companies like earlier we saw CME,
the largest derivatives exchange based in Chicago. They're partnering with
fan Duel. Everyone is racing to partner up, so I
expect to see many more deals like this that will
indicate where the future of exchange operators are going what a.
Speaker 3 (31:17):
Difference year or so, Mikes, because you mentioned regulation and
there is a much more favorable regulatory environment. I mean, look,
Poni Marcus coming back to the US and previously not
been allowed to be here. That's right.
Speaker 16 (31:27):
In twenty twenty two, this was a company that was
shunned away from the US marketplace. They kept many of
their users, but they couldn't embrace us in the way
that they wanted to. And now flash forward to today,
They've bought a derivatives operator that was very It was
not well known, but it basically was a path forward
(31:49):
to them to re enter the US marketplace. They have
regulators that they're working with. Just a few days ago,
we had companies like Ice and Polymarket, the executives going
to DC and speaking with the SEC and the CFTC.
These are the regulators of the main, the largest marketplaces
(32:10):
when you think about equities options, and now we're going
to see prediction markets potentially come under those same regulators.
So we see a lot of partnering up. We see
a path forward of innovation and really an embrace of
the crypto native firms like a Polymarket.
Speaker 2 (32:29):
Bloomer's Cafine Dougherty, thank you very much. Okay, more to
come next on open ai. We'll be right back. This
is Bloomberg Tech. Open ai is announced blockbuster deals with
(32:51):
AMD and Nnvidia to build out data centers that combined
would have more than enough electricity to power New York
City a peak demand open Air as chief operating off
to brad Lightcap explain why the company is going so
big on infrastructure.
Speaker 14 (33:05):
We are tremendously compute constrained. It feels like we're in
this kind of recurring theme of being compute constrained. And
I think the reason for that is the answer to
the question you ask, which is demand.
Speaker 4 (33:15):
Right, we see.
Speaker 14 (33:16):
There are multiples of demand that are lateent and untapped
from what we have today. And even today, obviously by
any standard, demand in revenue growth has been torrid in
its pace, and so really we have to invest ahead
of that. And I think that's going to be the
rate limitter for us to be able to go capture
a demand, whether it's consumer or enterprise, and for us
to be able to build new models, paralyze more experiences,
(33:39):
more product experiences, and then enable users specifically to be
able to use those products more actively.
Speaker 4 (33:45):
In their daily life.
Speaker 14 (33:46):
At work and at home, and so you know, even
things like Sora, the app we just launched. We wish
we could invite more people onto it now, but we
just need more compute. So the AMD deal we're excited
about being you know, directionally a way.
Speaker 4 (34:00):
For us to do that. I've got to ask about
the report that.
Speaker 2 (34:03):
Open AI closed secondary or the ability for employees to
sell shares at a five hundred billion dollar valuation. I
already asked you this question, but what is the metric
we're supposed to judge your success by the five hundred
billion dollar valuation? The six billion tokens per minute? To you, Brad,
what is it?
Speaker 15 (34:21):
For me?
Speaker 14 (34:21):
It's it's actually kind of a metric that we talked about.
Speaker 4 (34:26):
Is tokens.
Speaker 14 (34:27):
It's you mentioned six billion tokens per minute on our API.
Speaker 4 (34:33):
That is the purest for me, the kind of essence
of utility is that consumption metric.
Speaker 14 (34:38):
And so we've actively tracked that metric to see how
people's consumption of AI is growing over time. And you
see this happen in amazing ways. So things like Codex,
for example, we've seen grow ten x since August purely
on consumption of tokens around coding and you start to
see that same pattern emerge across multiple lanes of use
(34:58):
and across multiple areas of work. And that's the metric
I look at because if that number is going up
and these people are using us for more things, and that's.
Speaker 4 (35:04):
The ultimate goal.
Speaker 3 (35:05):
Open Aiico brad lightcap there and it is all about use.
And we got a lot of that news out of
open aistaf day. Let's down on attention to Blomberg's Rachel
mets and look, there is a lot of crossover here
of other technologies being into what twined really with the
chat gipt offering.
Speaker 4 (35:23):
Yeah, exactly.
Speaker 17 (35:24):
I mean just yesterday at the company's developer event, we
saw the company trying to bring in lots of different
companies applications like Zilo for instance, and you would use
it within chat GBT, and a number of other companies
as well have been building these apps and Opening I
wants all kinds of people to build these apps, and
(35:44):
they want to make chat gbt more of a I
guess like more of a starting point and more of
an operating system almost for a lot of different kinds
of computing things that you would normally do perhaps on
your other apps on your phone or would go straight
to a website for things like that, and like Brad said,
that will take a lot of competing power.
Speaker 2 (36:06):
Rachel sam Altman and other executives took about an hour
of questions from us. You and I were hanging out
in the afternoon of dev day. There was like lots
of other news. You know, it could be the eight
hundred million weekly users. What jumped out to you? What
is it you think moved the needle, if anything, I thought.
Speaker 17 (36:23):
That this that eight hundred million weekly user. I mean
it was almost kind of just like mentioned as you know,
like one of a number of things. I feel like
that's really significant milestone, and it seems to have been
achieved really quickly. And I think it's just a really
putting a big signpost on the idea that CHADGBT has
just kept going. As such, it's a machine that's really
(36:46):
gone faster and faster and faster since it was launched
in late twenty twenty two. This is as Nick Turley,
who's the head of chad GBT said about almost a
tenth of the world's population. I mean, that is a
huge amount of adoption to have, and I think it's
really important to think about everything the company does through
that lens
Speaker 3 (37:04):
Ludeberg Rachel mets, fantastic to have you
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast with Caroline Hide in New York
and Eva Low in San Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up. Dell rises after almost
doubling its growth estimates for sales and profit through the
fiscal twenty thirty, boosted by demand for AI products.
Speaker 3 (00:33):
As we speak with a key AI player, the CEO
of Core, We've joins us on the comedy's latest purchase
and a way in on the wave of compute deals.
Speaker 2 (00:42):
And Tesla might unveil a new cheaper version of its
model why as soon as today.
Speaker 4 (00:48):
We'll discuss what to expect.
Speaker 3 (00:50):
Meanwhile, let's check in on these market said, which maybe
take a bit of a breather. Maybe there's some possibility
it's some profit taking. As we have just ramped higher
and higher day after day, notching new records in the
five hundred. We are flat on the Nasdaq one hundred.
Remember we still got a government has shut down on
our hands, but we do still see some buying of
some key names. What are you looking at?
Speaker 2 (01:09):
Yeah, our top story is Dell, and much like the
broader market, it's lost a bit of steam. We were
up almost six percent earlier in the session, now up
two percent. Through the fiscal twenty thirty, they have almost
doubled their outlook. They're seeing top line growth seven nine percent,
bottom line growth of just an EPs fifteen percent. But
the story is really clear. Traction in the AI server business.
(01:30):
They have a backlog, margins will improve. It's worth digging
into it is.
Speaker 3 (01:34):
And we do that. Obninburg's Brodie Ford, just how seismic
is this? To give us the guidance all the way
out to twenty thirty, you.
Speaker 5 (01:41):
All said it great. It's AI servers, right. Somebody needs
to buy and video chips, package them into servers and
sell them to somebody else, and Dell has emerged as
a very successful company doing that. The opportunity appears larger
than Wall Street had anticipated. Sales are going to be
pretty healthy growth in the coming years. Though, of course,
(02:02):
as with a lot of AI infrastructure, the question is margins.
Those are going to remain pretty tight. Those operating margins
in the single digits, which often gives investors' anxiety. But
the growth rates are good enough that today doesn't matter.
Speaker 2 (02:17):
The numbers are really interesting. So in the quarter gone.
Dell did booked five point six billion dollars worth of business,
They shipped more than eight billion dollars worth of servers,
and they have this like almost twelve billion dollar backlog.
And how they're explaining it is that server margins right
now are depressed because it costs money to move quickly.
I think that's the conclusion I'm getting anyway.
Speaker 5 (02:39):
Yeah, that's right. I mean it costs a lot of
money to move quickly. These are massive deals. The supply
chain is tight, and so if you want to be
a buyer that gets priority, you're probably going to pay
a little more. The AI in for a market, whether
you're talking about compute servers really anybody, but in Vidia,
it's very competitive right now, and so if you want
to move with SKIN, you have to accept some lower margins.
(03:03):
Dell has been willing to do this, and it's winning
some big deals from companies like core Weave.
Speaker 4 (03:09):
Cool Weave, big deal.
Speaker 3 (03:10):
We talk about G forty two. We think about the
global impact here, But Brody, at the moment, we're in
this market where anything where you bolt on AI helps
your stock do relatively well.
Speaker 4 (03:19):
Just talk to us about what.
Speaker 3 (03:20):
IBM has been announcing and the folding into Panthropic.
Speaker 5 (03:23):
IBM is another one of these companies seen as a
bit of a legacy company, forgotten a bit by the
average investor on Wall Street. But today they announce that
they're going to be using Anthropics Models for their coding assistant.
This matters because Anthropics model really is the favorite for
coding and so I think this is being taken as
(03:43):
a bit of a co sign for IBM's tool that hey,
large enterprises, you're not just going to pop into cursor.
You're probably going to do it through a more regulated environment,
and maybe IBM will be that vendor.
Speaker 2 (03:55):
A slight tangent. But yesterday Brad Lightcap, whose open AI COO,
told me that Codex, which is their somewhat similar product,
the use of that is up ten x since August.
So and I noticed on social media there's a lot
of debate about like which one's better leave that to
the blomboy tech on us to decide. IBM does software.
(04:17):
I think a lot of people don't appreciate that this
story's indicative of that. Just explain what they offer exactly.
Speaker 5 (04:23):
IBM offers a variety of software, whether it's in you know,
financial processing, transaction whether it's in coding assistant, it's a
lot of somewhat custom development helping large enterprises get all
of their data in order. Let's say run AI models
on it. Let's say, you know, use it your existing
(04:43):
data and your coding environment. They have a pretty wide swath,
and as you said, folks don't realize a lot that
it's their largest business segment at this point. This is
not the kind of outsourcing IBM of years past.
Speaker 2 (04:57):
The most Brady Ford on some of what's happening in
tech today, Thank you very much. When Caroline and I
woke up this morning and sat at our desks, markets
were pushing higher. There was a lot of enthusiasm about AI,
and we've lost a lot of steam. I'm not saying
it's the fault of this program going to air, but
those major indices are now marginally in the red. There
are concerns that we are losing steam, and the words
(05:21):
AI and bubble keep coming up a lot. Let's get
a discussion with Janet Moui, RBC bring Dolphin, head of
market Analysis. All of these deals announced this week were
driving us at the index level when it comes to technology,
we're now losing steam. What is the principal direction of
travel here, Janet, when it comes to the tech sector, Hi.
Speaker 6 (05:43):
Thanks for having me eds.
Speaker 7 (05:45):
I do think that the Marcus having rallied very strongly
is almost like a strict line, particular for the chip companies.
Speaker 6 (05:53):
So I think tiking a.
Speaker 7 (05:54):
Breather is absolutely normal, and I think some investors would be.
Speaker 6 (06:01):
So I'm not too worried about that.
Speaker 7 (06:03):
I do think that the direction of travel would continue
to be atward because what we have seen is that
there are a lot of mega A ideals and they
involve a lot of infrastructure, a lot of CAPPAC spending
and its stays within the AI ecosystem, and I think
it just gives you a visibility over that longevity of
(06:23):
that AI spending.
Speaker 4 (06:25):
Janet.
Speaker 2 (06:25):
The driver in Monday's market was the deal between a
MD and open Ai. We spoke to a m D CEO, Lisa, Sue,
listen to this.
Speaker 8 (06:34):
I have full confidence in open Ai, sm Greg Sarah.
I mean, this is a massive opportunity for us right now.
Speaker 9 (06:41):
Right here.
Speaker 8 (06:42):
It's about who has the most compute and how fast
can we get it online, and we're committing to doing
this together.
Speaker 4 (06:50):
The question was.
Speaker 2 (06:51):
Whether open ai was good for the money that it
needed to fund all of these projects, and the market
seems nervous about that.
Speaker 4 (06:58):
How nervous about it are you?
Speaker 6 (07:02):
So?
Speaker 7 (07:03):
So far, I think the financing has been coming from
really investors and companies with very deep podcasts. I mean,
we're talking about the hyperscalers, including Nvidia's investment into opening Air.
Speaker 6 (07:14):
That's one hundred billion there.
Speaker 7 (07:15):
So I guess you know, from the liquidity perspective, that's
pretty ample, and so far we're not seeing a lot
of credit or debt financed activity going on into this
AI spending.
Speaker 6 (07:27):
So I think on that front, time comfortable, and.
Speaker 7 (07:30):
I think I think the key thing is that there's
just so much demand to compute out there, so many
companies can benefit from that and the building of the
infrastructure in AI. It involves not just a single company,
but really countries and many companies working together in the ecosystem.
Speaker 6 (07:47):
So I believe that this this really gives you.
Speaker 7 (07:50):
Visibility of the longevity of this AI trend going forward.
Speaker 3 (07:54):
But the reporting keeps from coming back to us. Why
if there's unlimited and demand for compute, does AMD need
to give so called incentives it feels like to open
AI to share in on its own winnings the future revenue.
Why does the video have to put one hundred billion
dollars to work in terms of equity investment in open
AI if they should be just winning out for the
(08:15):
sheared demand and scale of compute. And why does Oracle
become one of the best performing stocks when clearly some
of the profit margins don't always accrue to an Oracle.
How do we decide which company really should win here?
Speaker 7 (08:27):
Janet, Yes, so I think the big players in this
AI eqalsystem, in this build up of infrastructure, will likely
be clear beneficiaries.
Speaker 6 (08:39):
I think that's more on the hardware, the equipment building
site of AI.
Speaker 7 (08:44):
I mean, there will be definitely some big winners in
the software side of things, but we don't know what's
the next killer appso that's a bit more difficult. And
that's why I think the key favorite for investors remain
that AI infrastructure build out, whether you talk about data center,
cloud compute, and et cetera.
Speaker 6 (09:02):
And I believe that, you know, I think some concern
is right.
Speaker 7 (09:05):
A lot of this, you know, this close loop of
capital equality investment is based on confidence. It's really the
confidence that there's going to be insensuable demand for compute,
and it's really hard to gauge how much of that.
But if we do believe in this, the leaders in
the AI, I mean, Jason Juan talked a lot about
(09:26):
how the demand for compute is just going to be
so many, you know, tenfolds up from here. So I think,
you know, I would like to listen and believe in
the expert in terms of their vision on how much
there is on the computer demand and solar Far it
seems very very solid.
Speaker 3 (09:45):
Yeah, promises and vision, But Janet, what data do you
turn to for hard fundamentals, because at the moment the
MIT report showed that some of these ultimate focuses on
productivity aren't actually paying off. Where is it that you're
going to get your confidence that can grounded in facts
not vision?
Speaker 7 (10:03):
I mean, so far, if you look at the corporate
earnings growth, right, you look at the hyperscaler, they're still
delivering double digit earnings growth, and in fact, you can
attribute a lot of that to AI, the improved efficiency
in say advertising and cloud computing demand and things like that.
It's actually a lot of a big proportion of the
(10:25):
earnings delivery is already based on AI. And I think
there's still a lot of potential. And I think in
terms of the actual data, I think you just need
to look at the earnings revision. I mean typically you
can see today from Dell just one example, that earning
estimates and revenues keep being revised outwards, so there's really
clear visibility you're going to as far as twenty thirty.
(10:49):
So I think these are really hard data that you
can look at.
Speaker 3 (10:52):
Januu, thank you for that read from RBC brew in Dolphin.
It's always so great to check.
Speaker 2 (10:57):
In with you.
Speaker 3 (10:58):
While coming up, we're going to speak with my trader
call We've CEO. It's going to be talking about the
latest AI deal that he's doing a bit of M
and A and where is he finding confidence for the
never ending wave of AI deals. This has pretty big
tech AI Hyperscala coll We've has announced it SA to
(11:26):
buy UK based Monolith AI, expanding beyond cloud infrastructure to
offer broader AI solutions, in this case to industrial and
manufacturing companies joining us. Now, Michael Intrader call We've CEO.
There's been a wave of M and A coming from me. Michael.
I want to understand why you're broadening out in this way.
Speaker 10 (11:41):
Yeah, thank you very much for having me. It's exciting
to be back. And yes, we've been. We've been quite
active on the M and A front as we continue
to build and broaden our offerings. Many of them are
organic things that we're building internally and as you can
see with the model is a ideal. As you can
(12:01):
see you with the open pipe deal, as you can
see you with the weights and biases deal that we
did earlier this year. There is a tremendous focus that
we have on broadening out how we're going to be
able to support our clients from the software side. Obviously
there's also the core scientific transaction that is in process,
(12:24):
and once again it is part of our vision of
being able to offer a turnkey solution from the bricks
all the way up through the infrastructure and through the
software to be able to serve our customers in the
best way possible.
Speaker 3 (12:39):
And is that because also it's more profitable, Michael, We're
looking at reports at the moment about Oracle and ultimately
how Razu thin its profit margins are when you're thinking
about renting out compute because of the cost of ultimately
the GPUs coming from Nvidia, how hard is it to
make your bread and butter work? From a real profit
margin perspective, Yeah.
Speaker 10 (12:57):
Look, you know, the profit margins we're able to garner
with the infrastructure that we sell are significant.
Speaker 9 (13:05):
We're excited about it.
Speaker 10 (13:06):
We've really been able to drive our business in accordance
with our objectives. We're scaling at an incredibly fast paced
and so with that you get short term distortions, but
in terms of the business strategy and execution, couldn't be
happier when you think about where the space is today
(13:27):
and where the space is going to be over the
next several years. The broadening out of our offering of
software solutions really allows for an incredibly effective way of
bringing on new clients that are going to pay for
not only the infrastructure but also the services that they
get when they need to be able to integrate artificial
(13:51):
intelligence into their broader mission. And so we're excited about that.
We think it's the right way to go. We've been
aggressively pursuing it. We brought on some great teams and
you know you'll be seeing products coming out of those
teams imminently.
Speaker 2 (14:04):
Michael, The top story today is Dell roughly doubling its
growth projections for both sales and profit through fiscal twenty
thirty largely because of AI server demand. And you are
one of the key customers for Dell in that respect.
From the customer's perspective, what does that kind of bigger
picture forecast from Dell signal to you.
Speaker 10 (14:26):
Look, you know, there's a lot of noise in the
space again, and this happens periodically, and you know, but
when you take a step back, you're seeing incredibly strong
demand from Dell. You're seeing incredibly strong demand across the
hyperscalers as they're able to embed AI into their products.
(14:48):
You know, the profits that those are driving are the underpinnings.
Speaker 9 (14:51):
You're asking about what people look to.
Speaker 10 (14:53):
That's what they look to, right like, they look to
people that are able to generate revenue from their existing
client base using AI.
Speaker 9 (15:00):
And that is.
Speaker 10 (15:00):
Incredibly strong and we've seen it repeatedly. You're seeing it
again with Dell. It's really exciting. And once again you
zoom out just a bit here and it's really uh
an incredible space going through an incredible transition. That transition
is causing a systemic imbalance in.
Speaker 9 (15:18):
The infrastructure side, which is what drove us towards UH,
the UH.
Speaker 10 (15:23):
The deal UH that we are looking at with Course Scientific.
Course Scientific is an infrastructure provider for us UH. They
are one of many, you know, over the since our
last earnings call, we've increased our UH contracted pipeline of
power from two point two gigawatts to now up to
(15:44):
two point eight gigawatts, which is a new number that
we're putting out there, of which none of that comes
from Course Scientific. We have broadened our strategic relationships with
other priortividers of the infrastructure. A great example of that
is Galaxy Digital, you.
Speaker 9 (16:00):
Know, where where we're able to go ahead and and and.
Speaker 10 (16:04):
Get large blocks of contiguous power to continue to buy
infrastructure that will be made available to our clients as
they continue to build. And ultimately that brings us back
to this particular acquisition that we're looking at.
Speaker 9 (16:19):
You know, it's an acquisition that we put out there
several months ago.
Speaker 10 (16:22):
Of course, Scientific provides core Weave with over five hundred
megawatts worth of infrastructure which we currently have contracted. Therefore,
you know, we have a great relationship with them. Regardless
of the outcome of this UH acquisition, we will continue
to have a great relationship with them as they deliver
power to us.
Speaker 9 (16:41):
Within our data centers that we share with them.
Speaker 10 (16:44):
It is a small and shrinking part of our portfolio,
and ultimately that led us to, uh, you know, the
position where you know, really, under no circumstances will we
readdress the bid that we put out. That's the number.
We think it fitly represents the value for them. We
think it will be great for the two companies to
move forward together. The systemic imbalance within the infrastructure is
(17:09):
causing you know, it really is stressing the supply chains
and cause all kinds of delays.
Speaker 2 (17:16):
Yeah, I'm sorry to cut you off. We're going to
run short of time, and I've got to ask you this.
Twenty four hours ago, we had AMD's CEO Lisa Sue
and open AI president Greg Brockman on the program. There
are lots of unasked questions about the six gigawats of
capacity they've agreed will call. We participate and support in
that arrangement.
Speaker 4 (17:36):
Just very briefly.
Speaker 10 (17:38):
Yeah, So we support OPENINGI enormously across the space, and
we have great relationships with AMD. We use their infrastructure
within our portfolio. How they choose to divvy that out.
Speaker 9 (17:48):
We don't know yet.
Speaker 10 (17:49):
You know, we're more focused on the fourteen you know,
the minimum deal that we did two weeks ago, which
was a minimum of fourteen point two billion dollars, which
will continue to spand with Meta that will come online
in twenty twenty six. We're really excited about that. And
you know, the the AMD deal with Opening Eye is
(18:10):
just another example of the recognition across the space of
how much of this infrastructure is required and how much
demand all of these providers of artificial intelligence are encountering.
Speaker 2 (18:23):
Michael and Trader of Koby, thank you very much for
being back on Bloomberg Tech. Now coming out, Tessa's set
to unveil a more affordable version of its model.
Speaker 4 (18:31):
Why we have more on that next.
Speaker 2 (18:33):
This is Bloomberg.
Speaker 11 (18:34):
Tech's time now for Talking Tech and first Up Bank
of New York Mellon But is exploring tokenized deposits, enabling
clients to make payments using rock chain technology.
Speaker 3 (18:55):
We look at speed up settlement time, reduced costs. Other banks,
including JP, Morgan and HSBC I've made similar product moves.
Plus app Lemon, while it's facing a probe over its
data collection practices. According to sources, the Securities and Exchange
Commission is investigating whether Apple and violated service agreements on
pushing targeted ads. Have Love and declined to comment on
the matter. And Elil Musk named a former Morgan Stanley
(19:18):
executive as the chief financial officer of XAI. It's all
according to reporting The Financial Times, Anthony Armstrong worked on
Musk's purchase of Twitter. He will oversee the finances and
Musk's AI startup and the social media platform now called
x Of course ed.
Speaker 2 (19:32):
Tesla is set to unveil a new cheaper version of
its model Y as soon as today. That's according to sources.
Bloomberg's Craige Trudell Our Global Autos are joins us from London.
You and I worked on this together. This is what
I'm hearing from sources inside Tesla that it is just
a more affordable model. Why fewer features They engineered cost
(19:53):
out of the battery pack and the motor. But also
it's kind of been hiding in plain sight because must
and others discuss this on the most recent earnings. Cool.
Speaker 12 (20:03):
Yeah, one of the more colorful moments on that call was,
you know, some of the other executives at the company
kind of dancing around these questions about what this more
affordable Tesla would be and must just coming right out
and saying, let's let the cat out of the bag.
It's it's just a model. Why so, you know, I
think the expectation here, of course, is that this by
by taking some of the content out of the vehicle,
(20:25):
maybe you know, making it a little bit less attractive
from from a range perspective, but more attractive from a
price perspective.
Speaker 7 (20:33):
You know.
Speaker 12 (20:34):
The hope here is that that some incremental consumers who
maybe we're going to be priced out of this vehicle now,
can can maybe afford it with this seventy five hundred
dollars tax credit going away. And I think that's going
to be you know, one of the key questions for
the next earnings call from Tesla is you know, just
how how steep of a cliff are we looking at here?
Speaker 4 (20:53):
Now that that.
Speaker 12 (20:54):
Incentive has been sort of pulled out from under the industry.
Speaker 3 (20:57):
I can see that that reacts to the finding of
the tax credit, But there's been this ongoing call for
them to offer a less costly version of the ev
largely because of China competition. Is it enough?
Speaker 12 (21:10):
I think, you know, that's a really fair question. And
Ed's reported on this going back quite a while that
you know, Elon Musk is not particularly interested in expanding
the lineup with an altogether new vehicle when his in
his mind, this is a company that's on the cusp
of making vehicles capable of driving themselves. And so you
(21:30):
know why sort of you know, bother with with introducing
a more affordable vehicle and competing with the likes of
a Corolla or a Civic when you know what you
have in the lineup is on the cusp of doing
something that you know no other manufacturer is going to
be capable of doing. The question, of course, is can
he make good on that sort of you know, promise
(21:51):
or vision.
Speaker 2 (21:52):
You know, Craig and Caroline Tesla did not respond to
our requests for comment, and you know, there's a lot
of speculation out there that it could be a roads
and we're not expecting some big event. You know, Craig,
you've been editing this stuff with me. The frank reality
is we just don't know. But Caro, you know, we're
waiting to see what happens.
Speaker 3 (22:11):
We do, we'll wait for it to drop, even if
it's stealth mode, but you're never in stealth with your reporting,
and Craig, we thank you for this is the editor
on it. We appreciate your time. I meanwhile coming up
look open Aiyes, Golden Touch, how companies are benefiting. I'm
just going to mention of the AI Darling, that's next.
This is Blumbad Tech.
Speaker 4 (22:40):
Welcome back to Bloomberg Tech.
Speaker 2 (22:41):
Yesterday afternoon, I'm sat in a warehouse in Fort Mason,
San Francisco. Sam Ottman of Open Eyes on stage. Loads
of open Ai execs are on stage. They name check
all of these companies and some of the stocks go ballistic.
One of them is Figma, and Figma basically spikes up
sixteen percent at one point, and yesterday said closes up
seventy percent. It's up again for a second day, all
(23:04):
because of a name check on stage by open Ai.
Actually one quick stack carrot. Figma's up for the first
time for four straight days since it listed in July,
so it's on a bit of a run anyway. But yeah,
let's dig into what's happening with the Golden Touch.
Speaker 3 (23:20):
Let's because the guy's been writing all about our equities reporter, right,
nos selca been looking at this so called golden touch
for many a name that sawed yesterday, Figma really holding
onto those games. Look, they get name checked, but you
are seeing a folding in of the software within chat ept.
It's almost a bit of a lifeline when we're worried
that some of these companies were going to be made
redundant in some way by open Ai.
Speaker 13 (23:41):
Yes, absolutely, there's been a lot of concern that open
Ai or these other large language models would really start
to eat the lunch of these more established legacy software companies.
We saw all kinds of mentioned yesterday other companies including HubSpot,
Salesforce is really going on down the line, and I
think there's a little bit of relief that open aim
be working with these companies integrating them into its service,
(24:03):
as opposed to just you know, offering sort of competing
services that might really represent a strong force of competition
for them. So yeah, these kinds of mentions we really
saw some immediate spikes yesterday really across sectors across the market.
Online travel companies, even Mattel saw a little bit of
a pop after it was mentioned. And it's a demonstration
(24:23):
of Sora the video generation service.
Speaker 2 (24:27):
And you reflecting your piece about how if open aiyes
has the golden touch in AI, it's really been in
Nvidia that's been the golden ticket and had a similar
effect on other stocks.
Speaker 14 (24:37):
Yeah.
Speaker 13 (24:37):
Absolutely, So this is something that we've been seeing for
as long as AI has been a major company or
major theme in markets. And of course in addition to
all the companies we've been talking about. Obviously yesterday we
had the huge jump in AMD on the back of
the news with open Ai. We had last month huge
gains in Oracle. So certainly this has been to trend
all these companies that are really seen at the cutting
edge of AI, anything that sort of like has any
(25:00):
kind of connection to them. We do see stock reactions now.
In many cases the stocks pulled back today. I mean
you mentioned Figma maybe up still, but I know Salesforce
was down, some of these other stocks down today. So
it's not proving to be a lasting bounce, but certainly
just a mere excitement. It seems like it's getting a
lot of people, at least in the short term excited.
Speaker 2 (25:16):
Blue most rhyme for Stellaka on the moves that matter,
Thank you very much. So we've talked about Figma, we've
just shown it just then one of the names that
absolutely spiked after the mention on stage from Sam Altman
and open Ai it's going to be integrated into chat
GPT through an API, a third party. It was one
of the key pieces of news from Opienais dev day.
We've got to sit down with Pigma CEO Dylan Field.
Speaker 15 (25:40):
There wasn't really like a negotiation of any kind. It
was a collaboration. And are you know me our engineers,
our frog people. We're talking with their engineers, their Frog people.
We just have like a slack channel going. I was
literally do I mean their engineers up to think midnight
last night? Wow, just identifying longtail issues that they're checking
out to make sure everything's ready for your day. And
(26:02):
the team has been amazing to work with, and yeah,
just in general, been very thankful for the partnership and
the chance to go build us to figure that.
Speaker 4 (26:10):
Out on the chatterbuty system.
Speaker 2 (26:13):
Dylan, I know that you probably weren't paying attention to
this particular point, but during the early part of the keynote,
Figmas shares when ballistic. Frankly, many other names did as well.
When they were going through the list of partners that
will be at API access through the chat GPT.
Speaker 4 (26:30):
What does that signal to you.
Speaker 2 (26:32):
About you know, when open ai communicates there is that
level of response to your from your investors and the
technology industry at large.
Speaker 15 (26:42):
Yeah, you surprised me with that earlier before we started
talking about an interview, and I'll a schecond later. But
I don't know as the honest answer, because there's not
really something that I'm as tuned into. I told the
team before we iPod, during the IPO. After the IPO
number goes up, number goes down. What matters of the
(27:03):
inputs every day We've got to be driving to make
sure that we are making a better user experience, better
products for all of our users on the platform. And
so I think if it means anything to me, people
see possibility.
Speaker 4 (27:17):
And how these systems can work together.
Speaker 15 (27:20):
But now we have to go make sure that we
prove it and then it's great and hopefully it's just
a start.
Speaker 4 (27:25):
There's a lot more we can do very quickly before
we let you go.
Speaker 2 (27:28):
You know, you talk, it's about speaking with the slacking
the open ai engineering team until very late last night,
just as a moment in time like this dev day
where there are thousands of people here in Fort Mason,
San Francisco, in your technology career, could you try and
summarize what you think is happening in particular with AI
and what's happening in this city.
Speaker 4 (27:49):
I think it's a moment of excitement.
Speaker 15 (27:52):
And I mean, look, if you're an engineer, if you're
a designer or a product person, what do you love?
You love new toys and there are new toys every
week or two right now. Toys you can go build
with things that you can go and use to invent
the future and create new workflows. That's exciting for a technologist.
(28:13):
And you know where all it goes. Nobody knows if
they tell you, they do their lines you or to themselves.
I don't know where everything's headed. But I think that
definitely it's a moment of excitement right now, and we're
excited about all the change we can make for our
users and how we can make their experience using Figma matter.
Speaker 3 (28:33):
Such a great conversation ed there with Pigma CEO Denn Field. Meanwhile,
NYSEC owner Intercontinental Exchange it puts to invest as much
as two billion dollars in cash into Polymarket, following the
crypto based betting platform at roughly eight billion dollars from
all being most cafin dooldy here with the news, and
it's interesting they're betting on the future growth of this company,
(28:53):
but also using its data within nys is offering.
Speaker 4 (28:57):
That's right.
Speaker 16 (28:58):
The data is really the value that polymarket can provide
to ICE and its client base. So these are large
institutions used to trading on the New York Stock Exchange
options exchanges that ICE operates, and now those users are
going to be having the ability to pull from Polymarket's data.
(29:19):
Data is an incredibly valuable part of exchange operators how
they're growing their own business. And at the same time
this announcement this morning, there was another part about tokenization.
That's another path forward for these exchanges as they're looking
to innovate, and if you're a storied institution like ICE,
(29:39):
you might not be able to do that without these
new incumbents, the crypt native firms that have already started
to build and to tokenize themselves. Now they can come
forward with their own ideas and partner with ICE in
this way.
Speaker 2 (29:55):
Betting on prediction markets was a story around the twenty
twenty four US presidential election, and so I don't know like,
give us your reporting on the deal itself to invest
This is something that moved very quickly. It's something that
you know, they've been talking about for a while.
Speaker 16 (30:10):
So the prediction market is a competitive space. It's been growing.
You have the likes of Calshi and Crypto dot Com.
These are all companies that have started to put forth
predictions in the form of In many cases it's a
binary yes or no, and you can apply this to markets,
and I believe that is where this deal itself is
(30:32):
going to start. It's going to be a simple will
the value of bold, for example, or another asset class
cross a certain benchmark and it's going to be a
yes or no and go from there. But you can
also extend that to as you mentioned politics. Eventually sports
will be another very big potential asset class that can
(30:53):
expand there's questions around regulation of how that might work.
But if you have companies like earlier we saw CME,
the largest derivatives exchange based in Chicago. They're partnering with
fan Duel. Everyone is racing to partner up, so I
expect to see many more deals like this that will
indicate where the future of exchange operators are going what a.
Speaker 3 (31:17):
Difference year or so, Mikes, because you mentioned regulation and
there is a much more favorable regulatory environment. I mean, look,
Poni Marcus coming back to the US and previously not
been allowed to be here. That's right.
Speaker 16 (31:27):
In twenty twenty two, this was a company that was
shunned away from the US marketplace. They kept many of
their users, but they couldn't embrace us in the way
that they wanted to. And now flash forward to today,
They've bought a derivatives operator that was very It was
not well known, but it basically was a path forward
(31:49):
to them to re enter the US marketplace. They have
regulators that they're working with. Just a few days ago,
we had companies like Ice and Polymarket, the executives going
to DC and speaking with the SEC and the CFTC.
These are the regulators of the main, the largest marketplaces
(32:10):
when you think about equities options, and now we're going
to see prediction markets potentially come under those same regulators.
So we see a lot of partnering up. We see
a path forward of innovation and really an embrace of
the crypto native firms like a Polymarket.
Speaker 2 (32:29):
Bloomer's Cafine Dougherty, thank you very much. Okay, more to
come next on open ai. We'll be right back. This
is Bloomberg Tech. Open ai is announced blockbuster deals with
(32:51):
AMD and Nnvidia to build out data centers that combined
would have more than enough electricity to power New York
City a peak demand open Air as chief operating off
to brad Lightcap explain why the company is going so
big on infrastructure.
Speaker 14 (33:05):
We are tremendously compute constrained. It feels like we're in
this kind of recurring theme of being compute constrained. And
I think the reason for that is the answer to
the question you ask, which is demand.
Speaker 4 (33:15):
Right, we see.
Speaker 14 (33:16):
There are multiples of demand that are lateent and untapped
from what we have today. And even today, obviously by
any standard, demand in revenue growth has been torrid in
its pace, and so really we have to invest ahead
of that. And I think that's going to be the
rate limitter for us to be able to go capture
a demand, whether it's consumer or enterprise, and for us
to be able to build new models, paralyze more experiences,
(33:39):
more product experiences, and then enable users specifically to be
able to use those products more actively.
Speaker 4 (33:45):
In their daily life.
Speaker 14 (33:46):
At work and at home, and so you know, even
things like Sora, the app we just launched. We wish
we could invite more people onto it now, but we
just need more compute. So the AMD deal we're excited
about being you know, directionally a way.
Speaker 4 (34:00):
For us to do that. I've got to ask about
the report that.
Speaker 2 (34:03):
Open AI closed secondary or the ability for employees to
sell shares at a five hundred billion dollar valuation. I
already asked you this question, but what is the metric
we're supposed to judge your success by the five hundred
billion dollar valuation? The six billion tokens per minute? To you, Brad,
what is it?
Speaker 15 (34:21):
For me?
Speaker 14 (34:21):
It's it's actually kind of a metric that we talked about.
Speaker 4 (34:26):
Is tokens.
Speaker 14 (34:27):
It's you mentioned six billion tokens per minute on our API.
Speaker 4 (34:33):
That is the purest for me, the kind of essence
of utility is that consumption metric.
Speaker 14 (34:38):
And so we've actively tracked that metric to see how
people's consumption of AI is growing over time. And you
see this happen in amazing ways. So things like Codex,
for example, we've seen grow ten x since August purely
on consumption of tokens around coding and you start to
see that same pattern emerge across multiple lanes of use
(34:58):
and across multiple areas of work. And that's the metric
I look at because if that number is going up
and these people are using us for more things, and that's.
Speaker 4 (35:04):
The ultimate goal.
Speaker 3 (35:05):
Open Aiico brad lightcap there and it is all about use.
And we got a lot of that news out of
open aistaf day. Let's down on attention to Blomberg's Rachel
mets and look, there is a lot of crossover here
of other technologies being into what twined really with the
chat gipt offering.
Speaker 4 (35:23):
Yeah, exactly.
Speaker 17 (35:24):
I mean just yesterday at the company's developer event, we
saw the company trying to bring in lots of different
companies applications like Zilo for instance, and you would use
it within chat GBT, and a number of other companies
as well have been building these apps and Opening I
wants all kinds of people to build these apps, and
(35:44):
they want to make chat gbt more of a I
guess like more of a starting point and more of
an operating system almost for a lot of different kinds
of computing things that you would normally do perhaps on
your other apps on your phone or would go straight
to a website for things like that, and like Brad said,
that will take a lot of competing power.
Speaker 2 (36:06):
Rachel sam Altman and other executives took about an hour
of questions from us. You and I were hanging out
in the afternoon of dev day. There was like lots
of other news. You know, it could be the eight
hundred million weekly users. What jumped out to you? What
is it you think moved the needle, if anything, I thought.
Speaker 17 (36:23):
That this that eight hundred million weekly user. I mean
it was almost kind of just like mentioned as you know,
like one of a number of things. I feel like
that's really significant milestone, and it seems to have been
achieved really quickly. And I think it's just a really
putting a big signpost on the idea that CHADGBT has
just kept going. As such, it's a machine that's really
(36:46):
gone faster and faster and faster since it was launched
in late twenty twenty two. This is as Nick Turley,
who's the head of chad GBT said about almost a
tenth of the world's population. I mean, that is a
huge amount of adoption to have, and I think it's
really important to think about everything the company does through
that lens
Speaker 3 (37:04):
Ludeberg Rachel mets, fantastic to have you
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