August 4, 2025 • 43 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss Tesla’s approval of a $30 billion interim stock award for Elon Musk. Plus, Joby CEO JoeBen Bevirt discusses the eVOTL company’s plan to buy the helicopter ride-share business of Blade Air Mobility for $125 million. And Palantir and AMD face mounting pressure as the companies prepare to release their earnings.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a
live from coast to coast with Caroline Hide in New
York and ever Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up. Tesla approves a thirty
billion dollars stock award for Elon Musk, with the board
saying quote, a deal is a deal.
Speaker 3 (00:31):
Plush.
Speaker 4 (00:32):
Jobe Aviation will purchase Blade helicopter rideshare business as it
expands its battery power, air taxes into ready made markets.
Speaker 2 (00:39):
Shares fly and all lies on Palenteer recording earnings after
market close today, the stock surge more than five hundred percent.
Speaker 4 (00:47):
Meanwhile, let's check on the broader market ed not quite
five hundred percent, flying high on the NAZAQ one hundred.
Speaker 5 (00:53):
But we are having a good day. We're up almost
one and a half.
Speaker 4 (00:55):
Percent, almost erasing last week's more than two percent sell
off over the course of the week. Last week it
was all about eco data. This week is much more
about the earnings situation, which have been beating. Tech is
leading us higher on the day. But you're getting into
the specifics.
Speaker 2 (01:09):
Yeah, let's take a look at Tesla. Actually, the stock
have been surging high on the news of a fresh
stock award package.
Speaker 3 (01:15):
Feelon Musk.
Speaker 2 (01:16):
You can see we've actually given up most of that game.
Here's the specifics. Ninety six million shares, it's an interim award.
Musk has to stay CEO for two years, then hold
the stock for five that's the mechanics. The exercise price
twenty three dollars thirty four cents. The same exercise price
is that twenty eighteen package that the Delaware court voided.
(01:36):
Those are some of the details, but actually there's a
lot more bigger pictures of this character.
Speaker 5 (01:40):
Now is let's get it all with Max Chafkin, who give.
Speaker 4 (01:42):
Us the context, because the context is that twenty eighteen
pay package, the fact that they need Elon Musk to
remain focused on the business and money's going to.
Speaker 6 (01:50):
Talk well, right, and Elon Musk has given Tesla's shareholders
all sorts of reasons to worry that he's not focused
on the business, right of course, pride, most famously his
venture in Washington, d C. His threats to start the
America Party. All of that is potentially, of course a
distraction for Tesla. But also there's this been this like
long running drama around Xai, his other AI company. I
(02:14):
remember he's been talking a lot about how Tesla is
an AI company, he also has this other AI thing.
Tesla shareholders do not old stock in and there's been
this sense among some Tesla shareholders that there's a risk
he's going to sort of, you know, take his ball
and move it to Xai if he's.
Speaker 3 (02:31):
Frustrated with shareholders.
Speaker 6 (02:32):
So this is a way, I think for the people
who are supporting this package to keep him interested, essentially,
to keep him focused, and especially to time when when
that pay package from twenty eighteen is at least in
jeopardy in the courts.
Speaker 3 (02:46):
Max.
Speaker 2 (02:46):
I've read through the letter that the board posted to shareholders.
They acknowledge right that Musk's attentions are split across all
of those companies. One of the key things they argue
is that he is key to not just attracting new talent,
but retaining talent. What's it like to work for Elon
Musk is the big question.
Speaker 6 (03:05):
Yeah, I mean, it's a tough situation I think for
these shareholders because, on one hand, Elon Musk did a
very very good job during most of the time that
that original stock award.
Speaker 3 (03:17):
You know, this.
Speaker 6 (03:18):
Tesla stock went way up in twenty twenty. It's been
an amazing time, or was an amazing time to be
a Tesla shareholder. The last year or two though, has
not been good. And even in the last couple of days,
where you know, we've seen a bunch of headlines that
could be perceived as negative, this jury award in Florida
on Friday, some new delivery numbers out of China that
(03:39):
don't look great, and so you're seeing lots of reasons
to be concerned. And the question is, if you are
skeptical of this deal, is why are we essentially writing
a thirty billion dollar check to a guy who has
been underperforming and he doesn't really have to do all
that much to get this check. That the strike price
is very low, as around twenty three dollars a share,
that you know the price now is over three hundred,
So he just say for two years. So that I
(04:02):
think is going to be the debate to the extent
that there's any opposition to this among shareholders.
Speaker 2 (04:06):
And I just point out very quickly that it's an
interim award because the board saying in November at the
annual shareholders meeting, there will be a vote on a fuller,
longer term compackage. Bloombog's Max Chapkiin of Elon Inc. Thank
you very much to stay with evs. BMW is coming
for Tesla. You are to make us staging a swift
rollout of fourteen new or updated models, sharing slick software
(04:28):
and high performance computers, striking back at Tesla at a
vulnerable time. Here's what the CEO of BMW, Oliver Zifsa,
had to say about that in an interview with Bloombo's
Tom McKenzie.
Speaker 7 (04:40):
When you bring the newest technology into the market, you
have the first mover advantage because you cannot bring every
year in new car. We will use that first mover
advantage at that point in time to say, well, there
is a car brand nably BMW who can build superior
(05:02):
electric cars, and the rest of the market has to answer.
Speaker 2 (05:08):
Bloomberg Stepan Nikola joins us from Germany for more. The
first variant or model of this Neuer classer is.
Speaker 3 (05:15):
The IX three.
Speaker 2 (05:17):
So many people get frustrated on this program when we
talk about a company going after Tesla. Tesla killers, but
in the IX three BMW does see potential to clawback
a bit of market share Stephan.
Speaker 8 (05:31):
Yeah, absolutely, And you know, back in the day when
Tesla came out with the Model three, BMW actually lost
a lot of drivers to Tesla. So BMW coos Oliver
Sipsy is now confident that BMW can win those people back.
And you know, the new su we it will be
(05:52):
unwaled in September.
Speaker 5 (05:53):
At the Munich Audi Show.
Speaker 8 (05:55):
It has a range that tops that of the most
of the longest range model. Why it charges faster, it
has more power. So yeah, is very confident that he
can convince drivers with this new offering.
Speaker 4 (06:12):
Sevan talked to us about so called superbrains and really
the software the technology behind it that they've been looking
to worldwide talent for and how that then gets rolled out.
Speaker 5 (06:22):
Not just in the latest EV model.
Speaker 8 (06:26):
Yeah, it's quite interesting because of course BMW's are sort
of known for having this good driving performance that you
sort of sit tightly on the road and you feel
every curve and it's a sort of very immediate driving experience,
and BMW's engineers were actually worried that in an EV
that would sort of disappear, and that's why they developed
(06:47):
this kind of computing power, a supercomputer, a gigabrain they
call it, with that has much more computing power than
its current computers that are in the cars, and that's
leads up the way that machine calculates the terrens, calculates
the brakes, calculates the driving suspension. So all of that
(07:09):
combined is meant to make this ev feel, yeah, like
no car the company is built before.
Speaker 4 (07:15):
All those that got behind the wild in June seem
to have loved it. Stephan Nikola, thank you very much
for an analysis now coming up the return of the
tech IPO. We discussed the explosive demand after Figma's debut,
saw stop surge more than two hundred percent, even though
it does fall in the day.
Speaker 5 (07:31):
That's next, that's Blue meg Tech.
Speaker 9 (07:48):
Now that there is more certainty, more certainty around the
geopolitical landscape, more certainty around the market and the trajectory
of the market, that's why you're saying these companies finally
come to market.
Speaker 4 (08:02):
NYSE President and Martin there this morning.
Speaker 5 (08:05):
After Figma debut, of course on the New York.
Speaker 4 (08:07):
Stock Exchange last week, on the day of course, it's
saw over two hundred and seventy percent, really signaled renewed
public demand. Today it pulls back a little bit. But
we've also got news on the day that Bullish, a
digital asset exchange operator and owner of Media outlook coindesk,
has also detailed its plans to raise over six r
million dollars on the New York Stock Exchange next week.
Brian Lynch is therefore who we turn to head and
(08:29):
market inside of Equity zen leading.
Speaker 5 (08:30):
Pre IPO platform.
Speaker 4 (08:32):
You include Figma among the companies that you've been serving.
You saw the demand running into the IPO. Can that
be replicated?
Speaker 5 (08:38):
Brigan?
Speaker 10 (08:39):
Sure, thanks for having me. Figma was really in encapsulation
of a lot of things that the public market has
been waiting for. You have a really strong growth story,
fifty percent plus growth year over year, profitability, there's AI
in the tech stack. I think any company going public
in the next year or so is going to have
to have some AI component.
Speaker 11 (09:00):
And they have a strong brand.
Speaker 10 (09:01):
And actually, you know, since the failed Adobe acquisition a
few years ago, that only really helped to build their brand.
So they really were a great case example for what
types of companies, what types of quality companies do well
in the market. And I think that the market is
really open for other companies like that, who can exhibit
you know, strong fundamentals.
Speaker 4 (09:22):
They's doing well and then there's gaining two hundred and
fifty percent on the first day of trade.
Speaker 5 (09:28):
How much is.
Speaker 4 (09:29):
That an issue with the pricing of these IPOs and
a pent up demand not just from institutional buys, but
from retail buys too.
Speaker 10 (09:38):
You're exactly right there, and I think you know, that
spike of demand that wasn't you know, seen in the
road show really speaks to the fact that the typical
road show process really doesn't factor in retail demand. So, yes,
you're getting indications of interest from institutions 're locking in
those long term investers.
Speaker 11 (09:57):
But as we've seen over the past few years.
Speaker 10 (10:00):
The retail market is becoming more and more important, especially
as we haven't had many IPOs, so there's been a
drought of IPOs and there's just so much demand for
access to these innovating tech companies.
Speaker 11 (10:13):
We see it on Equity Sense.
Speaker 10 (10:14):
Platform where more individual accredited investors are coming to invest
in these companies pre IPO. So for the broader market
who maybe is an credited investor and doesn't have access,
there is just huge demand. So I think it really
begs the question of how can we start to quantify
that demand going into these IPOs, because yes, you want
(10:36):
it successful first day, but two hundred and fifty percent,
that's kind of out of the ballpark.
Speaker 3 (10:41):
Brian.
Speaker 2 (10:42):
I'm one of those people, one of those people that
reads the regulatory filings, right, and so you have a
company with an adjusted gross margin of ninety two percent
software amazing, But it just felt like on Thursday you
were there with Caroline right at the NAC was anyone
doing any of that because of fundamentals and how much
money they make? So did they just think, great tech IPO,
(11:05):
let's let's get in.
Speaker 3 (11:07):
Yeah.
Speaker 10 (11:08):
There is certainly a lot of exuberance in the market
that in some ways is irrational, is outside of the
realm of you know, any valuation you might get to
by and looking purely at the s one. So I
do think it talks to this broader market demand that
isn't necessarily always.
Speaker 11 (11:24):
Looking into the fundamentals.
Speaker 10 (11:25):
But we were outside the exchange, we were talking to
investors who were excited to participate in the IPO. These
are individual investors who had, you know, their orders in
and whatnot. And I think it just speaks to the
fact that there is a lot of demand. But the
risk of that is if you're an individual investor buying
in on that IPO day, you know you could lose
(11:46):
out when.
Speaker 11 (11:47):
The stock normalizes over time.
Speaker 10 (11:48):
So there's not you know, there's certainly risk there that
isn't always factored in.
Speaker 2 (11:55):
Let's ask the age old question, is the tech IPO
window open slightly, a jar closed and due to open?
Speaker 3 (12:04):
Where do you think we stand in the environment.
Speaker 10 (12:09):
I would say that the tech IPO window is open
for quality companies. So we've seen that with Figma, with Circle,
with core Weave, and some of these IPOs. So I
don't think just any company can go public in this
market and do well. But these companies that have been
preparing for a long time and already have those fundamental
pieces in place. You have to remember a lot of
(12:30):
these unicorn companies are ten fifteen years old.
Speaker 11 (12:34):
A lot of them, like Figma, plan to exit.
Speaker 10 (12:37):
In the twenty twenty one twenty twenty two timeframe, and
maybe those plans were put on ice as the.
Speaker 11 (12:42):
Market cooled down a bit.
Speaker 10 (12:43):
So the companies that we expect to see in the
coming months are these quality companies that are prepared and
have been preparing for a long time.
Speaker 4 (12:52):
What's really interesting, naturally, Dylan Field said to me, I
really hope everyone reads the risks in RS one and
they go through them in a detail fash He's very
transparent that he's investing in this business he's taking on AI.
But what I really wanted to talk to him about
and didn't have the time was the bitcoin that they
have on the balance sheet. And this is a company
that's actually exposed to another narrative that retail investors love.
(13:13):
How much he's starting to see that in these pre
IPO companies.
Speaker 10 (13:17):
Yeah, crypto is becoming one of the most popular sectors
amongst investors on equity zens platforms, So it was the
number six most popular sector that we saw in Q two.
And you know, there's a lot of tailwinds that are
supporting the crypto industry. Obviously you saw Circles really successful IPO.
You have a very crypto friendly administration, and then you've
(13:38):
got some of the biggest financial institutions and retailers launching
their own stable coins, really adding validation to the market.
This has led you to more potential IPO activity. You've
got Gemini, Gray Cial and others. You know in the
crypto space looking to go public. So that's certainly I
would say the number two narrative that we're seeing after
(13:58):
AI four company. It's both in the pre IPO market,
but those preparing to IPO as well.
Speaker 2 (14:04):
Brehann lyinj Ecritizen with the tech IPO read we really
appreciate it, thank you very much. Another potential IPO in
the pipeline, cybersecurity startup, Armies Company, is eyeing a twenty
twenty six offering after it says it reached three hundred
million dollars in annual recurring revenue. CEO Yevgenny Dibrov joins
us now for more. It's interesting, like I was reading
the Bloomberg story to track the growth. You know, clearly
(14:27):
you're seeing a jump in arr Is that the metric
that you want the market to say, look at this company,
if they're going to go public, they're doing some real
things here.
Speaker 12 (14:38):
So first, good morning and great to be here. Definitely,
when we look at the numbers and theyrer it shows
the massive growth and the massive demand we've been experiencing
at Armis. We've added more than one hundred million in
less than twelve months, basically since the two hundred million
milestone and continue to grow. We are protecting today forty
(14:58):
percent of the Fortune one hundred six out of ten
Fortune ten companies and this is all due to massive demand,
continue geopolitical tensions and attacks on critical infrastructure.
Speaker 2 (15:11):
Yevgenny, I'm just reflecting on the last week on the program.
We had Palo Alto Networks acquiring cyber Arc. We had
Cato Networks raising money at a four point five billion
dollar valuation. You've just done a tender valuing you at
a much higher valuation. What is that reflective of here?
Is it just an absolute necessity for the tech or
(15:33):
investors starting to just warm up to the cyber space.
Speaker 12 (15:38):
So we are seeing continued demand, and we talked about
geopolitical tensions AI as well as contributing to more demand
in cyber those continued attacks on critical infrastructure where armies
can really help organizations to control and protect every water system, airport,
their most critical environments. This is something that continued to
(16:01):
grow again and again, and as you've seen with a
cyber Arc and pal al To deal, the industry is
going to platformization. Customers want more platforms. They don't want
seventy plus point solutions. They want those five to ten
platforms to protect all their critical environments, and Armies is
a platform we've been building in the last few years,
(16:25):
especially with M and A's We've acquired three companies in
the last year and continue to build more and more,
innovate and listen closely to our customers to build the
best platform to protect their most critical environments.
Speaker 5 (16:38):
Okay, Jef Kenny.
Speaker 4 (16:39):
So if you need to keep on on this platformization,
as palle alt On Networks have called it, where do
you need to buy next?
Speaker 5 (16:46):
Where do you need to look for scale?
Speaker 12 (16:49):
So right now we are focusing on integrating the companies
that we have acquired, but we always look from a
strategy perspective, build by partner, definitely more opportunities on the horizon.
Armies is heading another two products this year to complete
a seven product super power platform to protect the largest
(17:09):
organizations in the world, the largest federal agencies, and the
largest states in the United States. We are going to
continue and work super hard to protect our customers, focus
on innovation, and continue to grow. Definitely, from our perspective,
we look at the next three years. A billion dollar
in arr is a milestone and important milestone for Armies
(17:31):
on the journey and building a generational business.
Speaker 4 (17:34):
Here, one that you want to take public as soon
as next Yearny, I'm just interested in therefore, where you're
taking market share from. It feels like the pie of
cybersecurity is getting bigger, but you must be taking from others.
And I think of perhaps a company you worked with
at On which was acquired by Microsoft. Well, Microsoft's wrap
around cybersecurity right now isn't always positive.
Speaker 12 (17:55):
We are definitely seeing competition from different angles, and we
are getting into more and more areas. Armies is acquiring
aggressively and also building aggressively aggressively, so definitely areas that
with Palalto Networks, Microsoft, Tenable and others, we are taking
more and more of that share, but continue to align
with what our customers needs. IPO is definitely on the horizon.
(18:18):
Twenty twenty six can be potentially a great year, but
we are definitely focusing on maximizing our shareholders and employees
value and continue to build. When we look at what's
the next milestone, that's the billion in arr and IPO
will be a great part as part of this journey.
Speaker 4 (18:38):
I'm ganny Deeverrov, thank you so much of ams joining
us today. Meanwhile, coming up Apple's next AI move how
the company hopes to catch up to rivals like Google's
Gemini as next this is bringing back tech.
Speaker 2 (19:02):
Apples getting ready for AI based search. The tech giant
has quietly formed a new team. It calls Answers Knowledge
and Information or AKI for sure. Its main goal is
to create a new chat GPT like search experience. This
is the company lags behind in rivals over AI features
of the boss mark Germin is here it was the
latest power on. I find this so interesting because that
(19:24):
was not the strategy originally for Apple. I kept hearing
about and through your reporting that they didn't think the
market was there for a chat GPT like tool, so
they integrated the tech into Siri. Now they've kind of
changed tack a little bit.
Speaker 13 (19:38):
It's become very obvious that one of the biggest use
cases for chat GPT is search. On my iPhone. For instance,
I have one of the new models with the action
button on the side, and so whenever I need to
search for something, I don't go to SAPARi and go
to Google or the Google Search up. I clicked my
action button and I go into chat GPT. Even for
things that you basically would go to Google for, not
(20:00):
for spreadsheets, not for ideation, not for math. I'm just
asking a normal question about things like movie synopsis or
calories in a piece of particular food, or how something
happened in history, right, And so chat GPT is become
my go to search engine. It's certainly a better search
engine than what you're getting from Google. It's a better
(20:22):
search engine than really where you're getting elsewhere. Maybe Gemini
is pretty good, Perplexity is pretty good. But the C
is shifting right, and Apple needs to shift too. And
they understand that even though they've been pushing people towards
chat GPT within Siri for world dollege queries, they know
they have to go in house on this, and so
they have a team now, like you said, Aki answers
(20:44):
knowledge and Information. It's run by a senior director named
Robbie Walker, who actually used to run Siri before it
was removed from his command because of all the engineering
issues and delays. And now they're looking into ways to
build search across Apple that can tap into the open web.
Speaker 2 (21:00):
Caroline, I'm just going to come to you here. I've
got apples tick her up on my screen, and actually
I see the gains in the session pairing a little
bit over the last thirty minutes.
Speaker 3 (21:08):
We have some tariffs news we.
Speaker 4 (21:10):
Do, and President Trump was taking too true social to
really labor the point that he's got all eyes on
India saying I will be substantially raising the tariff paid
by India.
Speaker 5 (21:20):
And it feels at that moment that we pulled back from.
Speaker 4 (21:23):
Our inter day high as Mark and I want to
get your take here because yes, we know that Tim
Cook's been doing all hands meetings when talking up the
AI pipeline, but his real expertise is in many ways
been supply chain.
Speaker 5 (21:33):
How will they navigate these tariffs on India? Do you think?
Speaker 3 (21:38):
So?
Speaker 13 (21:38):
It's interesting the India situation. It's going to be sort
of a game of yo yo, moving between India, moving
between China, potentially moving through other places like Vietnam, Malaysia, Thailand,
all the other places where Apple is doing mass manufacturing
of apple products. I understand the stockful today because eventually,
(21:58):
if Apple continues to export from India to the US.
Speaker 3 (22:01):
They will need to pay that tariff.
Speaker 13 (22:03):
But my understanding is as of now the tariff is
not yet into effect for many of Apple's products, So
it'll be interesting to see when exactly that is supposed
to happen. Obviously, Trump is going to decide on a
dime when that's going to happen. But as of this
very moment, there is still that exemption in place for
smartphones in a series of other products. Apple's belief is
(22:23):
that they're going to take a one point one billion
dollars hit during this quarter, right, But I would imagine
this tariff situation is going to change the next couple
of months and these companies will need to start paying
that and that is going to be very difficult for
Apple to deal with.
Speaker 4 (22:36):
Bloomberg's Mark German all across Apple, we so appreciate it.
While coming up, how will commercial and government contracts feature
impalent is quarterly earnings.
Speaker 5 (22:45):
We'll discuss what's expected next. This is Bluemberg Tech.
Speaker 2 (23:01):
Welcome back to Bloomberg Tech. I just wanted to get
this story in quickly. Spotify is raising prices in some
markets by as much as nine percent, and the stock's
actually on traped for its biggest jump since early May.
I was reading in the kind of cell side reaction
and a lot of analysts saying well, it's got all
these different tiers now of plans, so they can pick
and choose where they raise prices, obviously being seen as
a good thing. We have some Monday M and A
(23:23):
as well. Joby, the ev toll or flying air taxi company,
is acquiring the helicopter ride share business of Blade Air Mobility.
This is a story that we broke over the weekend
and the companies confirmed this morning later in the hour.
We hope to speak to Joby's CEO, Joe ben Bevitt,
but clearly both companies getting It's an incredible game. Usually
(23:45):
in like M and A, you got one going down,
one going up, both of them going up, Carol, looking
forward to that conversation.
Speaker 4 (23:50):
Yeah, let's talk about incredible gains when it comes to
certain stocks. Hell and Teer ed in reports that it's
quarterly earnings after the market closed today. It's ultra high
VALUEUA has in many ways been spurred in.
Speaker 5 (24:01):
Part by that devoted retail investor.
Speaker 4 (24:03):
It's all someone more straight, little warried Berg's lazette Chapman
is here to tell us what investors are going to
look to to really vindicate a two one hundred and
twenty nine price to earnings ratio, and is it talk
about the commercial side?
Speaker 5 (24:16):
What wins do we need to see?
Speaker 14 (24:19):
Right, Like you said, it's been on this earning tear.
It's been on this you know, price tear for the
past year. What people are going to be looking at,
what investors are going to be looking at, is whether
that growth is sustainable, whether it's continued to accelerate, and
really specifically what the breakdown is between the United States
versus the rest of the world. We've seen a huge
(24:39):
split in demand that's been insatiable in the US, but
it's really lagged in Europe and in other parts of
the world. So that's one thing that we're going to
be looking at. The other thing that we're going to
be looking at is that the commercial versus government clients.
Speaker 11 (24:54):
So those are the areas.
Speaker 14 (24:55):
That Volunteer is going to be breaking down. We'll see
which one they've been they've been doing better at, or
perhaps not meeting those expectations.
Speaker 2 (25:03):
Lazette generally, like we've come to no palenteer as being
a software provider to the US government or US defense apparatus. Right,
what kind of technology does it provide and how big
a share is each of those businesses, the government bit
and the commercial bit. Right.
Speaker 14 (25:20):
So the what Palenteer provides is AI powered data analysis software.
So it uses the large language models, whether it's open
AI or anthropic, and then it leverages that against all
of the data that it's mapped inside of a company
or an agency, whether it's the DoD, or whether it's
(25:44):
the IRS or the Veterans Affairs, or whether it's Tyson
Foods or Ferrari.
Speaker 11 (25:48):
And so.
Speaker 14 (25:50):
What we're going to be looking at now is, like
you said, Ed, you know, there's been a big growth
in demand for its intelligence software as used for the
US government, including the Defense Forces.
Speaker 5 (26:05):
The DoD.
Speaker 14 (26:05):
They just announced a.
Speaker 11 (26:07):
Big deal last week.
Speaker 14 (26:11):
Showing that they can consolidate what has been fifty seven
contracts into one large one for the Army, which shows
that it has the ability to perhaps spread this across
across other divisions in addition to the Army and lock
in that money for a long term annual recurring revenue.
Speaker 4 (26:32):
We know that doctor carp as a flamboyant fellow across
Technology Lazette, what do you expect him to talk about
when it comes to vindicating the valuation the growth opportunity?
And I'm sure many are going to be asking about
the talent laws that are on our hands too.
Speaker 14 (26:47):
Yeah, great question, Caroline, as you as you said, he's
very flamboyant, very you know, directed with his words, and
I'm expecting and most most people are expecting another victory
lap from him. You know, the stock has you know,
increased fourteen hundred percent over the past three years, over
(27:07):
five hundred and forty percent this year alone. It's market
cap is larger than Lockheed Martin and many other standard
defense contractors. And you know, Alex has you know, written
a book about it. He takes every opportunity he can
to talk about the importance of Palenteer and others backing
defense efforts in the US, and and the fact that
(27:31):
he believes that Palenteer was is vindicated now after years
of not turning a profit and not hitting the marks
that many had hoped.
Speaker 2 (27:44):
Bloomberg's is that Chapman with Palentier coming after the bell,
Thank you very much. AMD reports earnings tomorrow. CEO Lisa
Sue facing mounting investor scrutiny as pressure intensifies across the
chip sector. Here with More's bloombergs Ian King, who leads
our coverage of chips, and this was in your Tech
in Depth and there was a line in it that
I find a really interesting point of analysis.
Speaker 3 (28:07):
This is the best performing chip stock so far this year.
Speaker 2 (28:10):
But it's not really a pat.
Speaker 3 (28:12):
On the back.
Speaker 2 (28:13):
It's more of like a target on the back at
this stage. Why are things so tight and pressured for AMD?
Speaker 15 (28:19):
Yeah, it's not just AMD, it's basically the latest in
line here. I mean, you had Christiano Aiman of Qualcom
on this show going what is there not to like
about our ownings? And that's really the pattern that we've
seen this time, which is investors have put quite a
lot of money to work in chip stocks and now
they're like live up to our expectations, very high expectations,
(28:40):
and good isn't good enough. You have to be exceptional.
So that's the kind of situation that AMD is in tomorrow.
Speaker 4 (28:46):
Look at that stock rally here today forty six percent
for expecting and excess though of twenty seven percent. I
think growth in revenue. Where do they want to see
market being taken from? Because we know they've been winning
out against Intel, but really everyone always compares them against Invidia.
Speaker 15 (29:03):
Yeah, I mean this should be or at least the
forecast quarter should be sort of good news for AMD
for a couple of reasons. They've got more competitive air
accelerator chips, which go head to head with in VideA,
coming to the market. And also great news for their
man for in video, which is, hey, we can go
back to China. Some of these restrictions on shipments of
older products to China have been lifted, or so we've
(29:25):
been told. So that should also mean good news for
this quarter and for the future for that particular market
as well.
Speaker 2 (29:32):
You and I reflected together a couple of weeks ago
about how prominent Lisa Su was in Washington, DC when
the President gave his winning the AI race speech.
Speaker 3 (29:41):
He asked Lisa Su to stand up.
Speaker 2 (29:43):
But the reality is, Jensen Wang and Nvidia still have
a technical monopoly I guess more than seventy percent market share.
Speaker 3 (29:50):
Call it what you will.
Speaker 2 (29:51):
Is their evidence that Lisa Su is catching up, that
she's orchestrating the company in a way where they can
make gains in the AI accelerator market.
Speaker 15 (30:00):
I mean, looking at the numbers, this is the best
way to look at this. This is a great business
for AMD. You know, five billion dollars a quarter on
a sort of thirty billion dollar run rate for and
your revenue is is fantastic, right, but it's not one
hundred and twenty billion dollars. So that's that's the way
to look at it.
Speaker 4 (30:18):
I think always comparing the two in King, it's great
to have you, We thank you ahead of AMD. Meanwhile,
coming up, Tim Tally's going to be joining us from
Mendo Ventures joining us to talk about our enterprises are
putting their AI spend which LLM this is bring big
tech the AI boom, but it's spurred a series of
(30:43):
so called reverse aquahypers. Tech giants like Google, Amazon, Meta, Microsoft,
They get top talent and AI licensing without the so
called burden of government regulatory.
Speaker 5 (30:53):
Approval for these deals.
Speaker 4 (30:54):
For those hired though, it often means a big payday
and access to more resources. But what about the fledging
AI buses work as left behind Kate's Clark, I've just
been writing about this very thing, and Kate, if we
go back to some really tangible examples of a lot
of people being left behind almost how.
Speaker 5 (31:11):
Does it make them feel?
Speaker 16 (31:14):
There was a many many emotions from the employees that
we've spoken to, but some of them were in tears,
you know, after this was announced, because these are companies
that they joined hoping that one day they would see
a nice windfall, and that's not always the case when
these so called reverse accu hiers happen.
Speaker 2 (31:29):
Kate, maybe, like the most recent example that Caroline and
I have experienced is what was left of Windsurf with Cognition.
But I think back to Inflection and Microsoft and what
happened there. In your reporting, did you get any sense of,
like what often happens with the leftover part after an
aquahire the company that remains.
Speaker 16 (31:49):
There's such a wide range. But in the case of Inflection,
for example, they're still trucking. They've worked really hard over
the past year to keep that business going. We spoke
to executives at that company. They said they planned to
raise more money for the business. Same goes for character Ai,
another company that did a reverse accu hier. But it
really just depends. In other cases Covariant, which was reverse
(32:09):
accu hired by Amazon, not a lot is still happening
at that company.
Speaker 4 (32:13):
And actually the kicker of your story is about Adept,
also a reverse aqua hid target of Amazons, And I
think your line is it's now unclear who, if anyone,
is running the company. So are things changing, particular when
people are taking on new talent and the joining a
startup and the unwritten contract.
Speaker 5 (32:30):
Was you do well with me me as the CEO
of this business.
Speaker 4 (32:33):
I'm putting everything on the line so that you can
benefit to Are people starting to change the way in
which they're hired by these businesses?
Speaker 16 (32:38):
I think people are starting to question this because there's
been at least six of these now in the past
year or so, and that's a trend. It's really become
a trend in Silicon Valley, and I think investors, venture
capitalists and prospective employees are wondering, if I join this
AI company, is this founder going to stick along with
me or is he going to leave me behind?
Speaker 2 (32:56):
Blumous Kate Clark with the reporting out of New York,
thank you very much, Just stick with a Tim Tally
is a partner at Menlo Ventures, which recently published its
midyear update on the LLLM market. Tim, we have a
lot of data to get through, but in the enterprise
domain in particular, you guys are saying that anthropic leads
in terms of market share. Then open AI is just
(33:16):
behind just for transparency with our audience. Of course, Menlo
is on the cap table of Entropic and you have
a sort of partnership with them for compute access. But
break down the data and how Entropic's pulled a head
in that space.
Speaker 17 (33:29):
Yeah, I mean, there's really three things that stood out
in the report versus Anthropic really pulled ahead in terms
of enterprise spend. It's something on the order of thirty
two percent of spending the enterprise right now. I think
the other thing that really stood out, and maybe you
didn't mention yet, is that closed source models are really
dominating how people use these things these days. The open
source models, we're really starting to fall behind in terms
(33:49):
of the usage, and we see it when we talk
to developers. I mean, the way that we invest in
companies is we basically disarticulate their architectures and understand how
they're building their products, and you can see it anecdotally
and when we talk to developers in those companies.
Speaker 2 (34:01):
An executive from open ai was posting this morning on
x that chat GPT is up to seven hundred million
weekly active users. But therein lies the distinction, right there's
the consumer use you have a subscription basis revenue that
comes in, and then enterprise that seems where the volume
of dollars are going right now, What do you make
(34:22):
of that chat GPT stat.
Speaker 3 (34:24):
Yeah, it's real.
Speaker 17 (34:25):
It's not that surprising, and we hear it when we
talk to foks again in the same way that we
talk to developers, we talk to users of these products.
I mean, it's pretty well known in Silicon Valley at
least in the circles that Opening Eye sort of really
wins in the consumer space at least for now, and
anthropics would be winning in the enterprise spend with developers
who use it programmatically.
Speaker 5 (34:42):
Tim, I'm really interested to go more on this closed
source versus open source.
Speaker 4 (34:45):
Considering that the AI Action Plan really is leaning into
this open moment. At the same time, people reading in
between the lines from metas earnings, for example, and Mark
Zuckerberg's put pitch that maybe because of safety that have
to build more clothes rather and fully open as they
had previously seem committed to.
Speaker 5 (35:03):
What does an enterprise need right now?
Speaker 3 (35:06):
Yeah?
Speaker 17 (35:07):
Really in enterprise needs is what's in at least in
technical circles called the so called illities of a product,
the manageability of the product, the security, the observability, everything
that sort of comes with being able to run that product.
It's really hard to just take the weights of a
model and just go run it. I couldn't, you know,
put weights of a model, put it on a hard
drive and just hand it team and say, hey, go
run it. There's a lot of services and sort of
(35:27):
software that has to stand up around it to be
able to make it usable. And so that's really what
you're seeing is folks reaching for enterprise close force solutions
that have programmatic access to these capabilities.
Speaker 4 (35:37):
And going back to your anthropic numbers, leading enterprise LLLM
provider thirty two percent of the market.
Speaker 5 (35:42):
How early are we, though.
Speaker 4 (35:43):
In this rush and this commitment to money by companies
into large language models. How much more is there to take?
How quickly can we see the landscape shift?
Speaker 3 (35:54):
I think you're still seeing early days.
Speaker 17 (35:55):
The amount of spen you're going to see from model
span over the next few years is just going to
continually increase. In the report you saw just in the
last six months, spend went from three point five billion
to eight point four billion, which is more than double. Again,
just in the last six months, so it's early days,
and I think the spend is going to continue to
increase dramatically.
Speaker 2 (36:13):
So I've read through the report and I always look
for data that kind of gives us the other side
of the story. So you have all this enterprise revenue
coming in at Anthropic, but what is their cost op
X cost compute costs on a per token basis. Is
that data that you track that tells us if these
companies will ever be profitable.
Speaker 17 (36:35):
Yeah, there's no data that we put into the report,
but Dario has been pretty open that he feels like
the gross margins and the company are going to be
respectable and increase over time. And I think what you're
going to see is efficiency gains from the models and
how they're used. You're going to see things like token
cashing really start to dominate how people use the models,
and so they'll become more efficient over time and the
cost of run them will sort of go down over time.
Speaker 3 (36:55):
I fully expect.
Speaker 4 (36:56):
It's a really great report. Urge people to go and
read it. Tintally, thanks for talking us through a partner
at Menno Ventures and coming up, Joby set to acquire
helicopter ride share company Blade we're going to speak with
a CEO that's next to the Blueberg Tech shares of
(37:19):
Joby Aviation and Blade. Well, they're searching today after announcing
that Joby will purchase Blades helicopter rideshare business for as
much as one hundred and twenty five million dollars in
stock or cash. Now the acquisition really encompasses all of
Blade's passenger business, including US and Europe operations. And here
to talk through it Joby CEO joemyn Vert. Investors like
it on both sides of the equation. We don't often
(37:40):
see that tell us the rationale here, why buy that
part of the business?
Speaker 18 (37:45):
Yeah, thank you so much. Great to be here. First,
I'd like to lay the foundation.
Speaker 3 (37:49):
For where we are. And so the first piece is
that we're.
Speaker 18 (37:54):
Seeing unprecedented levels of regulatory support from the White House,
from the DOT, from the FA really leaning in. You
also have regulators around the world so excited about this
new age of aviation.
Speaker 3 (38:10):
Second is where the Jobe team is.
Speaker 18 (38:12):
We've been knocking out of the park on certification and
really delivering on manufacturing where we're doubling our manufacturing rate,
and all of this sets the stage where for commercialization
of a detail exactly, and.
Speaker 3 (38:30):
The key piece is.
Speaker 18 (38:34):
The work that Blade has done where they've built out
an incredible network of takeoff and landing locations, exclusive lounges,
and an attention to detail and attention to customer service
that are really unparalleled in vertical aviation.
Speaker 3 (38:50):
And so this is the right moment for.
Speaker 18 (38:54):
Us to partner and both on the by acquiring the
passenger business, but also partnering on the medical business.
Speaker 2 (39:02):
Joe Ben, when we broke this story over the weekend,
and thank you for your time and coming on the show,
the question I kept asking myself was does this accelerate
the ev toll bit to market in the United States?
Speaker 3 (39:14):
Absolutely?
Speaker 18 (39:14):
And one of the things that's so exciting, as I
mentioned on the regulatory support that we're seeing from the
administration with the recent executive order, we really see the
potential where that pulls forward the timeline. And that's one
of the big catalysts for why we decided to pull
the trigger here on the Blade acquisition.
Speaker 2 (39:32):
In the interim, will you continue operating the helicopter rideshare bit?
Does that business continue or you just buy the assets
and start planning from there.
Speaker 18 (39:41):
Absolutely, we're looking to not only operate it, but to
grow it and turn it into a much bigger business.
And then we think that with the quiet aircraft that
we're building, that we're going to see an explosion in
the number of takeoff and learning locations that we can
operate from. We're seeing real estate developers both here in
(40:02):
the US and around the world who are so excited
about our technology and are clamoring for takeoff and landing
locations at their developments. And so we just see unprecedented
momentum in the market today, un.
Speaker 4 (40:17):
Presidented amount of money that you're going to be committing
to it there for with the one hundred and twenty
five million.
Speaker 5 (40:22):
In stock or cash.
Speaker 4 (40:23):
But where are the details on that, Jovin? How are
you architecting the actual deal so it wins out for both?
Speaker 18 (40:31):
Yeah, So I think that's one of the beautiful things
I'm whenever I'm working on doing a deal with somebody,
I'm looking for something that's going to be a creative
for both sides. And this is a creative for Jobi
and that we get this incredible business that Blade is
built on the passenger side is a creative for the
Blade medical business because they're going to We're going to
(40:53):
be able to put our VTOL aircraft and our next
generation hydro electric aircraft onto their platform on their medical
platform over time, and so this is it allows the
medical business to be really laser focused on growing medical
to have the resources they need and the focus they
need to really grow that business. So this is an
(41:14):
incredible win win, and that's we.
Speaker 4 (41:16):
Really focused on the regulatory process right now. What is
the next step that you need to meet to be
able to make sure that when I go to a blade,
it's not gonna be a helicopter, it's going to be
your EV tool.
Speaker 3 (41:25):
So we are taking our aircraft.
Speaker 18 (41:28):
We have multiple aircraft that are going down the manufacturing
line right now which are our type intent TIA aircraft
for TA flight testing, and so we have FA dars
who are in the factory with us on a daily basis,
inspecting the parts and systems as they're going together.
Speaker 3 (41:49):
And then we're.
Speaker 18 (41:52):
Going to begin TA flight testing with FA pilots on
board early next year. So this has been a long
journey and it's so excited to be right close to
the finish line and ready to begin the commercialization journey.
Speaker 2 (42:05):
Joe Ben, how much more room is there for you
to do more M and A, particularly in other geographies
of this type.
Speaker 18 (42:12):
We see incredible opportunities, you know, and I should be
really clear. Blade has built an absolutely spectacular business, not
just here in the US, but also in Europe, and
we see opportunities around the world. So there is so
much demand and so much congestion in cities around the world,
and we can't wait to really lean in.
Speaker 3 (42:33):
Joe beem just real quick.
Speaker 2 (42:34):
Often when you get a deal, the acquiring company doesn't
see their stock jump by the same level that the
acquisition target is. Just what do you make of that?
What do you think investors are signaling.
Speaker 18 (42:44):
To you that we built a really fantastic deal that's
a win win for both Blade shoreholders and for Joby shareholders.
Speaker 3 (42:54):
This is going to be a.
Speaker 18 (42:57):
Massive accelerant for Joby and for our roll out both
here in the US and around the world. The operational
expertise that we're acquiring, the infrastructure we're requiring, and the
attention to detail and customer service. We can't wait to
scale this service and really bring the magic flight to
(43:17):
people's daily lives.
Speaker 2 (43:19):
Joe Benbevitt of job thank you very much for your
time here on Bloomberg Tech. That does it for this
edition of Bloomberg Tech, Karen, what.
Speaker 3 (43:26):
An edition it was.
Speaker 5 (43:27):
I mean M and A sprinkled in.
Speaker 4 (43:29):
We continue on the IPO path, don't forget check out
our podcast. You can find out on the terminal as
well as online on Apple, on Spotify whose own shares
are popping today, and on iHeart.
Speaker 5 (43:38):
This is Bloomberg Tech.
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a
live from coast to coast with Caroline Hide in New
York and ever Low in San Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up. Tesla approves a thirty
billion dollars stock award for Elon Musk, with the board
saying quote, a deal is a deal.
Speaker 3 (00:31):
Plush.
Speaker 4 (00:32):
Jobe Aviation will purchase Blade helicopter rideshare business as it
expands its battery power, air taxes into ready made markets.
Speaker 2 (00:39):
Shares fly and all lies on Palenteer recording earnings after
market close today, the stock surge more than five hundred percent.
Speaker 4 (00:47):
Meanwhile, let's check on the broader market ed not quite
five hundred percent, flying high on the NAZAQ one hundred.
Speaker 5 (00:53):
But we are having a good day. We're up almost
one and a half.
Speaker 4 (00:55):
Percent, almost erasing last week's more than two percent sell
off over the course of the week. Last week it
was all about eco data. This week is much more
about the earnings situation, which have been beating. Tech is
leading us higher on the day. But you're getting into
the specifics.
Speaker 2 (01:09):
Yeah, let's take a look at Tesla. Actually, the stock
have been surging high on the news of a fresh
stock award package.
Speaker 3 (01:15):
Feelon Musk.
Speaker 2 (01:16):
You can see we've actually given up most of that game.
Here's the specifics. Ninety six million shares, it's an interim award.
Musk has to stay CEO for two years, then hold
the stock for five that's the mechanics. The exercise price
twenty three dollars thirty four cents. The same exercise price
is that twenty eighteen package that the Delaware court voided.
(01:36):
Those are some of the details, but actually there's a
lot more bigger pictures of this character.
Speaker 5 (01:40):
Now is let's get it all with Max Chafkin, who give.
Speaker 4 (01:42):
Us the context, because the context is that twenty eighteen
pay package, the fact that they need Elon Musk to
remain focused on the business and money's going to.
Speaker 6 (01:50):
Talk well, right, and Elon Musk has given Tesla's shareholders
all sorts of reasons to worry that he's not focused
on the business, right of course, pride, most famously his
venture in Washington, d C. His threats to start the
America Party. All of that is potentially, of course a
distraction for Tesla. But also there's this been this like
long running drama around Xai, his other AI company. I
(02:14):
remember he's been talking a lot about how Tesla is
an AI company, he also has this other AI thing.
Tesla shareholders do not old stock in and there's been
this sense among some Tesla shareholders that there's a risk
he's going to sort of, you know, take his ball
and move it to Xai if he's.
Speaker 3 (02:31):
Frustrated with shareholders.
Speaker 6 (02:32):
So this is a way, I think for the people
who are supporting this package to keep him interested, essentially,
to keep him focused, and especially to time when when
that pay package from twenty eighteen is at least in
jeopardy in the courts.
Speaker 3 (02:46):
Max.
Speaker 2 (02:46):
I've read through the letter that the board posted to shareholders.
They acknowledge right that Musk's attentions are split across all
of those companies. One of the key things they argue
is that he is key to not just attracting new talent,
but retaining talent. What's it like to work for Elon
Musk is the big question.
Speaker 6 (03:05):
Yeah, I mean, it's a tough situation I think for
these shareholders because, on one hand, Elon Musk did a
very very good job during most of the time that
that original stock award.
Speaker 3 (03:17):
You know, this.
Speaker 6 (03:18):
Tesla stock went way up in twenty twenty. It's been
an amazing time, or was an amazing time to be
a Tesla shareholder. The last year or two though, has
not been good. And even in the last couple of days,
where you know, we've seen a bunch of headlines that
could be perceived as negative, this jury award in Florida
on Friday, some new delivery numbers out of China that
(03:39):
don't look great, and so you're seeing lots of reasons
to be concerned. And the question is, if you are
skeptical of this deal, is why are we essentially writing
a thirty billion dollar check to a guy who has
been underperforming and he doesn't really have to do all
that much to get this check. That the strike price
is very low, as around twenty three dollars a share,
that you know the price now is over three hundred,
So he just say for two years. So that I
(04:02):
think is going to be the debate to the extent
that there's any opposition to this among shareholders.
Speaker 2 (04:06):
And I just point out very quickly that it's an
interim award because the board saying in November at the
annual shareholders meeting, there will be a vote on a fuller,
longer term compackage. Bloombog's Max Chapkiin of Elon Inc. Thank
you very much to stay with evs. BMW is coming
for Tesla. You are to make us staging a swift
rollout of fourteen new or updated models, sharing slick software
(04:28):
and high performance computers, striking back at Tesla at a
vulnerable time. Here's what the CEO of BMW, Oliver Zifsa,
had to say about that in an interview with Bloombo's
Tom McKenzie.
Speaker 7 (04:40):
When you bring the newest technology into the market, you
have the first mover advantage because you cannot bring every
year in new car. We will use that first mover
advantage at that point in time to say, well, there
is a car brand nably BMW who can build superior
(05:02):
electric cars, and the rest of the market has to answer.
Speaker 2 (05:08):
Bloomberg Stepan Nikola joins us from Germany for more. The
first variant or model of this Neuer classer is.
Speaker 3 (05:15):
The IX three.
Speaker 2 (05:17):
So many people get frustrated on this program when we
talk about a company going after Tesla. Tesla killers, but
in the IX three BMW does see potential to clawback
a bit of market share Stephan.
Speaker 8 (05:31):
Yeah, absolutely, And you know, back in the day when
Tesla came out with the Model three, BMW actually lost
a lot of drivers to Tesla. So BMW coos Oliver
Sipsy is now confident that BMW can win those people back.
And you know, the new su we it will be
(05:52):
unwaled in September.
Speaker 5 (05:53):
At the Munich Audi Show.
Speaker 8 (05:55):
It has a range that tops that of the most
of the longest range model. Why it charges faster, it
has more power. So yeah, is very confident that he
can convince drivers with this new offering.
Speaker 4 (06:12):
Sevan talked to us about so called superbrains and really
the software the technology behind it that they've been looking
to worldwide talent for and how that then gets rolled out.
Speaker 5 (06:22):
Not just in the latest EV model.
Speaker 8 (06:26):
Yeah, it's quite interesting because of course BMW's are sort
of known for having this good driving performance that you
sort of sit tightly on the road and you feel
every curve and it's a sort of very immediate driving experience,
and BMW's engineers were actually worried that in an EV
that would sort of disappear, and that's why they developed
(06:47):
this kind of computing power, a supercomputer, a gigabrain they
call it, with that has much more computing power than
its current computers that are in the cars, and that's
leads up the way that machine calculates the terrens, calculates
the brakes, calculates the driving suspension. So all of that
(07:09):
combined is meant to make this ev feel, yeah, like
no car the company is built before.
Speaker 4 (07:15):
All those that got behind the wild in June seem
to have loved it. Stephan Nikola, thank you very much
for an analysis now coming up the return of the
tech IPO. We discussed the explosive demand after Figma's debut,
saw stop surge more than two hundred percent, even though
it does fall in the day.
Speaker 5 (07:31):
That's next, that's Blue meg Tech.
Speaker 9 (07:48):
Now that there is more certainty, more certainty around the
geopolitical landscape, more certainty around the market and the trajectory
of the market, that's why you're saying these companies finally
come to market.
Speaker 4 (08:02):
NYSE President and Martin there this morning.
Speaker 5 (08:05):
After Figma debut, of course on the New York.
Speaker 4 (08:07):
Stock Exchange last week, on the day of course, it's
saw over two hundred and seventy percent, really signaled renewed
public demand. Today it pulls back a little bit. But
we've also got news on the day that Bullish, a
digital asset exchange operator and owner of Media outlook coindesk,
has also detailed its plans to raise over six r
million dollars on the New York Stock Exchange next week.
Brian Lynch is therefore who we turn to head and
(08:29):
market inside of Equity zen leading.
Speaker 5 (08:30):
Pre IPO platform.
Speaker 4 (08:32):
You include Figma among the companies that you've been serving.
You saw the demand running into the IPO. Can that
be replicated?
Speaker 5 (08:38):
Brigan?
Speaker 10 (08:39):
Sure, thanks for having me. Figma was really in encapsulation
of a lot of things that the public market has
been waiting for. You have a really strong growth story,
fifty percent plus growth year over year, profitability, there's AI
in the tech stack. I think any company going public
in the next year or so is going to have
to have some AI component.
Speaker 11 (09:00):
And they have a strong brand.
Speaker 10 (09:01):
And actually, you know, since the failed Adobe acquisition a
few years ago, that only really helped to build their brand.
So they really were a great case example for what
types of companies, what types of quality companies do well
in the market. And I think that the market is
really open for other companies like that, who can exhibit
you know, strong fundamentals.
Speaker 4 (09:22):
They's doing well and then there's gaining two hundred and
fifty percent on the first day of trade.
Speaker 5 (09:28):
How much is.
Speaker 4 (09:29):
That an issue with the pricing of these IPOs and
a pent up demand not just from institutional buys, but
from retail buys too.
Speaker 10 (09:38):
You're exactly right there, and I think you know, that
spike of demand that wasn't you know, seen in the
road show really speaks to the fact that the typical
road show process really doesn't factor in retail demand. So, yes,
you're getting indications of interest from institutions 're locking in
those long term investers.
Speaker 11 (09:57):
But as we've seen over the past few years.
Speaker 10 (10:00):
The retail market is becoming more and more important, especially
as we haven't had many IPOs, so there's been a
drought of IPOs and there's just so much demand for
access to these innovating tech companies.
Speaker 11 (10:13):
We see it on Equity Sense.
Speaker 10 (10:14):
Platform where more individual accredited investors are coming to invest
in these companies pre IPO. So for the broader market
who maybe is an credited investor and doesn't have access,
there is just huge demand. So I think it really
begs the question of how can we start to quantify
that demand going into these IPOs, because yes, you want
(10:36):
it successful first day, but two hundred and fifty percent,
that's kind of out of the ballpark.
Speaker 3 (10:41):
Brian.
Speaker 2 (10:42):
I'm one of those people, one of those people that
reads the regulatory filings, right, and so you have a
company with an adjusted gross margin of ninety two percent
software amazing, But it just felt like on Thursday you
were there with Caroline right at the NAC was anyone
doing any of that because of fundamentals and how much
money they make? So did they just think, great tech IPO,
(11:05):
let's let's get in.
Speaker 3 (11:07):
Yeah.
Speaker 10 (11:08):
There is certainly a lot of exuberance in the market
that in some ways is irrational, is outside of the
realm of you know, any valuation you might get to
by and looking purely at the s one. So I
do think it talks to this broader market demand that
isn't necessarily always.
Speaker 11 (11:24):
Looking into the fundamentals.
Speaker 10 (11:25):
But we were outside the exchange, we were talking to
investors who were excited to participate in the IPO. These
are individual investors who had, you know, their orders in
and whatnot. And I think it just speaks to the
fact that there is a lot of demand. But the
risk of that is if you're an individual investor buying
in on that IPO day, you know you could lose
(11:46):
out when.
Speaker 11 (11:47):
The stock normalizes over time.
Speaker 10 (11:48):
So there's not you know, there's certainly risk there that
isn't always factored in.
Speaker 2 (11:55):
Let's ask the age old question, is the tech IPO
window open slightly, a jar closed and due to open?
Speaker 3 (12:04):
Where do you think we stand in the environment.
Speaker 10 (12:09):
I would say that the tech IPO window is open
for quality companies. So we've seen that with Figma, with Circle,
with core Weave, and some of these IPOs. So I
don't think just any company can go public in this
market and do well. But these companies that have been
preparing for a long time and already have those fundamental
pieces in place. You have to remember a lot of
(12:30):
these unicorn companies are ten fifteen years old.
Speaker 11 (12:34):
A lot of them, like Figma, plan to exit.
Speaker 10 (12:37):
In the twenty twenty one twenty twenty two timeframe, and
maybe those plans were put on ice as the.
Speaker 11 (12:42):
Market cooled down a bit.
Speaker 10 (12:43):
So the companies that we expect to see in the
coming months are these quality companies that are prepared and
have been preparing for a long time.
Speaker 4 (12:52):
What's really interesting, naturally, Dylan Field said to me, I
really hope everyone reads the risks in RS one and
they go through them in a detail fash He's very
transparent that he's investing in this business he's taking on AI.
But what I really wanted to talk to him about
and didn't have the time was the bitcoin that they
have on the balance sheet. And this is a company
that's actually exposed to another narrative that retail investors love.
(13:13):
How much he's starting to see that in these pre
IPO companies.
Speaker 10 (13:17):
Yeah, crypto is becoming one of the most popular sectors
amongst investors on equity zens platforms, So it was the
number six most popular sector that we saw in Q two.
And you know, there's a lot of tailwinds that are
supporting the crypto industry. Obviously you saw Circles really successful IPO.
You have a very crypto friendly administration, and then you've
(13:38):
got some of the biggest financial institutions and retailers launching
their own stable coins, really adding validation to the market.
This has led you to more potential IPO activity. You've
got Gemini, Gray Cial and others. You know in the
crypto space looking to go public. So that's certainly I
would say the number two narrative that we're seeing after
(13:58):
AI four company. It's both in the pre IPO market,
but those preparing to IPO as well.
Speaker 2 (14:04):
Brehann lyinj Ecritizen with the tech IPO read we really
appreciate it, thank you very much. Another potential IPO in
the pipeline, cybersecurity startup, Armies Company, is eyeing a twenty
twenty six offering after it says it reached three hundred
million dollars in annual recurring revenue. CEO Yevgenny Dibrov joins
us now for more. It's interesting, like I was reading
the Bloomberg story to track the growth. You know, clearly
(14:27):
you're seeing a jump in arr Is that the metric
that you want the market to say, look at this company,
if they're going to go public, they're doing some real
things here.
Speaker 12 (14:38):
So first, good morning and great to be here. Definitely,
when we look at the numbers and theyrer it shows
the massive growth and the massive demand we've been experiencing
at Armis. We've added more than one hundred million in
less than twelve months, basically since the two hundred million
milestone and continue to grow. We are protecting today forty
(14:58):
percent of the Fortune one hundred six out of ten
Fortune ten companies and this is all due to massive demand,
continue geopolitical tensions and attacks on critical infrastructure.
Speaker 2 (15:11):
Yevgenny, I'm just reflecting on the last week on the program.
We had Palo Alto Networks acquiring cyber Arc. We had
Cato Networks raising money at a four point five billion
dollar valuation. You've just done a tender valuing you at
a much higher valuation. What is that reflective of here?
Is it just an absolute necessity for the tech or
(15:33):
investors starting to just warm up to the cyber space.
Speaker 12 (15:38):
So we are seeing continued demand, and we talked about
geopolitical tensions AI as well as contributing to more demand
in cyber those continued attacks on critical infrastructure where armies
can really help organizations to control and protect every water system, airport,
their most critical environments. This is something that continued to
(16:01):
grow again and again, and as you've seen with a
cyber Arc and pal al To deal, the industry is
going to platformization. Customers want more platforms. They don't want
seventy plus point solutions. They want those five to ten
platforms to protect all their critical environments, and Armies is
a platform we've been building in the last few years,
(16:25):
especially with M and A's We've acquired three companies in
the last year and continue to build more and more,
innovate and listen closely to our customers to build the
best platform to protect their most critical environments.
Speaker 5 (16:38):
Okay, Jef Kenny.
Speaker 4 (16:39):
So if you need to keep on on this platformization,
as palle alt On Networks have called it, where do
you need to buy next?
Speaker 5 (16:46):
Where do you need to look for scale?
Speaker 12 (16:49):
So right now we are focusing on integrating the companies
that we have acquired, but we always look from a
strategy perspective, build by partner, definitely more opportunities on the horizon.
Armies is heading another two products this year to complete
a seven product super power platform to protect the largest
(17:09):
organizations in the world, the largest federal agencies, and the
largest states in the United States. We are going to
continue and work super hard to protect our customers, focus
on innovation, and continue to grow. Definitely, from our perspective,
we look at the next three years. A billion dollar
in arr is a milestone and important milestone for Armies
(17:31):
on the journey and building a generational business.
Speaker 4 (17:34):
Here, one that you want to take public as soon
as next Yearny, I'm just interested in therefore, where you're
taking market share from. It feels like the pie of
cybersecurity is getting bigger, but you must be taking from others.
And I think of perhaps a company you worked with
at On which was acquired by Microsoft. Well, Microsoft's wrap
around cybersecurity right now isn't always positive.
Speaker 12 (17:55):
We are definitely seeing competition from different angles, and we
are getting into more and more areas. Armies is acquiring
aggressively and also building aggressively aggressively, so definitely areas that
with Palalto Networks, Microsoft, Tenable and others, we are taking
more and more of that share, but continue to align
with what our customers needs. IPO is definitely on the horizon.
(18:18):
Twenty twenty six can be potentially a great year, but
we are definitely focusing on maximizing our shareholders and employees
value and continue to build. When we look at what's
the next milestone, that's the billion in arr and IPO
will be a great part as part of this journey.
Speaker 4 (18:38):
I'm ganny Deeverrov, thank you so much of ams joining
us today. Meanwhile, coming up Apple's next AI move how
the company hopes to catch up to rivals like Google's
Gemini as next this is bringing back tech.
Speaker 2 (19:02):
Apples getting ready for AI based search. The tech giant
has quietly formed a new team. It calls Answers Knowledge
and Information or AKI for sure. Its main goal is
to create a new chat GPT like search experience. This
is the company lags behind in rivals over AI features
of the boss mark Germin is here it was the
latest power on. I find this so interesting because that
(19:24):
was not the strategy originally for Apple. I kept hearing
about and through your reporting that they didn't think the
market was there for a chat GPT like tool, so
they integrated the tech into Siri. Now they've kind of
changed tack a little bit.
Speaker 13 (19:38):
It's become very obvious that one of the biggest use
cases for chat GPT is search. On my iPhone. For instance,
I have one of the new models with the action
button on the side, and so whenever I need to
search for something, I don't go to SAPARi and go
to Google or the Google Search up. I clicked my
action button and I go into chat GPT. Even for
things that you basically would go to Google for, not
(20:00):
for spreadsheets, not for ideation, not for math. I'm just
asking a normal question about things like movie synopsis or
calories in a piece of particular food, or how something
happened in history, right, And so chat GPT is become
my go to search engine. It's certainly a better search
engine than what you're getting from Google. It's a better
(20:22):
search engine than really where you're getting elsewhere. Maybe Gemini
is pretty good, Perplexity is pretty good. But the C
is shifting right, and Apple needs to shift too. And
they understand that even though they've been pushing people towards
chat GPT within Siri for world dollege queries, they know
they have to go in house on this, and so
they have a team now, like you said, Aki answers
(20:44):
knowledge and Information. It's run by a senior director named
Robbie Walker, who actually used to run Siri before it
was removed from his command because of all the engineering
issues and delays. And now they're looking into ways to
build search across Apple that can tap into the open web.
Speaker 2 (21:00):
Caroline, I'm just going to come to you here. I've
got apples tick her up on my screen, and actually
I see the gains in the session pairing a little
bit over the last thirty minutes.
Speaker 3 (21:08):
We have some tariffs news we.
Speaker 4 (21:10):
Do, and President Trump was taking too true social to
really labor the point that he's got all eyes on
India saying I will be substantially raising the tariff paid
by India.
Speaker 5 (21:20):
And it feels at that moment that we pulled back from.
Speaker 4 (21:23):
Our inter day high as Mark and I want to
get your take here because yes, we know that Tim
Cook's been doing all hands meetings when talking up the
AI pipeline, but his real expertise is in many ways
been supply chain.
Speaker 5 (21:33):
How will they navigate these tariffs on India? Do you think?
Speaker 3 (21:38):
So?
Speaker 13 (21:38):
It's interesting the India situation. It's going to be sort
of a game of yo yo, moving between India, moving
between China, potentially moving through other places like Vietnam, Malaysia, Thailand,
all the other places where Apple is doing mass manufacturing
of apple products. I understand the stockful today because eventually,
(21:58):
if Apple continues to export from India to the US.
Speaker 3 (22:01):
They will need to pay that tariff.
Speaker 13 (22:03):
But my understanding is as of now the tariff is
not yet into effect for many of Apple's products, So
it'll be interesting to see when exactly that is supposed
to happen. Obviously, Trump is going to decide on a
dime when that's going to happen. But as of this
very moment, there is still that exemption in place for
smartphones in a series of other products. Apple's belief is
(22:23):
that they're going to take a one point one billion
dollars hit during this quarter, right, But I would imagine
this tariff situation is going to change the next couple
of months and these companies will need to start paying
that and that is going to be very difficult for
Apple to deal with.
Speaker 4 (22:36):
Bloomberg's Mark German all across Apple, we so appreciate it.
While coming up, how will commercial and government contracts feature
impalent is quarterly earnings.
Speaker 5 (22:45):
We'll discuss what's expected next. This is Bluemberg Tech.
Speaker 2 (23:01):
Welcome back to Bloomberg Tech. I just wanted to get
this story in quickly. Spotify is raising prices in some
markets by as much as nine percent, and the stock's
actually on traped for its biggest jump since early May.
I was reading in the kind of cell side reaction
and a lot of analysts saying well, it's got all
these different tiers now of plans, so they can pick
and choose where they raise prices, obviously being seen as
a good thing. We have some Monday M and A
(23:23):
as well. Joby, the ev toll or flying air taxi company,
is acquiring the helicopter ride share business of Blade Air Mobility.
This is a story that we broke over the weekend
and the companies confirmed this morning later in the hour.
We hope to speak to Joby's CEO, Joe ben Bevitt,
but clearly both companies getting It's an incredible game. Usually
(23:45):
in like M and A, you got one going down,
one going up, both of them going up, Carol, looking
forward to that conversation.
Speaker 4 (23:50):
Yeah, let's talk about incredible gains when it comes to
certain stocks. Hell and Teer ed in reports that it's
quarterly earnings after the market closed today. It's ultra high
VALUEUA has in many ways been spurred in.
Speaker 5 (24:01):
Part by that devoted retail investor.
Speaker 4 (24:03):
It's all someone more straight, little warried Berg's lazette Chapman
is here to tell us what investors are going to
look to to really vindicate a two one hundred and
twenty nine price to earnings ratio, and is it talk
about the commercial side?
Speaker 5 (24:16):
What wins do we need to see?
Speaker 14 (24:19):
Right, Like you said, it's been on this earning tear.
It's been on this you know, price tear for the
past year. What people are going to be looking at,
what investors are going to be looking at, is whether
that growth is sustainable, whether it's continued to accelerate, and
really specifically what the breakdown is between the United States
versus the rest of the world. We've seen a huge
(24:39):
split in demand that's been insatiable in the US, but
it's really lagged in Europe and in other parts of
the world. So that's one thing that we're going to
be looking at. The other thing that we're going to
be looking at is that the commercial versus government clients.
Speaker 11 (24:54):
So those are the areas.
Speaker 14 (24:55):
That Volunteer is going to be breaking down. We'll see
which one they've been they've been doing better at, or
perhaps not meeting those expectations.
Speaker 2 (25:03):
Lazette generally, like we've come to no palenteer as being
a software provider to the US government or US defense apparatus. Right,
what kind of technology does it provide and how big
a share is each of those businesses, the government bit
and the commercial bit. Right.
Speaker 14 (25:20):
So the what Palenteer provides is AI powered data analysis software.
So it uses the large language models, whether it's open
AI or anthropic, and then it leverages that against all
of the data that it's mapped inside of a company
or an agency, whether it's the DoD, or whether it's
(25:44):
the IRS or the Veterans Affairs, or whether it's Tyson
Foods or Ferrari.
Speaker 11 (25:48):
And so.
Speaker 14 (25:50):
What we're going to be looking at now is, like
you said, Ed, you know, there's been a big growth
in demand for its intelligence software as used for the
US government, including the Defense Forces.
Speaker 5 (26:05):
The DoD.
Speaker 14 (26:05):
They just announced a.
Speaker 11 (26:07):
Big deal last week.
Speaker 14 (26:11):
Showing that they can consolidate what has been fifty seven
contracts into one large one for the Army, which shows
that it has the ability to perhaps spread this across
across other divisions in addition to the Army and lock
in that money for a long term annual recurring revenue.
Speaker 4 (26:32):
We know that doctor carp as a flamboyant fellow across
Technology Lazette, what do you expect him to talk about
when it comes to vindicating the valuation the growth opportunity?
And I'm sure many are going to be asking about
the talent laws that are on our hands too.
Speaker 14 (26:47):
Yeah, great question, Caroline, as you as you said, he's
very flamboyant, very you know, directed with his words, and
I'm expecting and most most people are expecting another victory
lap from him. You know, the stock has you know,
increased fourteen hundred percent over the past three years, over
(27:07):
five hundred and forty percent this year alone. It's market
cap is larger than Lockheed Martin and many other standard
defense contractors. And you know, Alex has you know, written
a book about it. He takes every opportunity he can
to talk about the importance of Palenteer and others backing
defense efforts in the US, and and the fact that
(27:31):
he believes that Palenteer was is vindicated now after years
of not turning a profit and not hitting the marks
that many had hoped.
Speaker 2 (27:44):
Bloomberg's is that Chapman with Palentier coming after the bell,
Thank you very much. AMD reports earnings tomorrow. CEO Lisa
Sue facing mounting investor scrutiny as pressure intensifies across the
chip sector. Here with More's bloombergs Ian King, who leads
our coverage of chips, and this was in your Tech
in Depth and there was a line in it that
I find a really interesting point of analysis.
Speaker 3 (28:07):
This is the best performing chip stock so far this year.
Speaker 2 (28:10):
But it's not really a pat.
Speaker 3 (28:12):
On the back.
Speaker 2 (28:13):
It's more of like a target on the back at
this stage. Why are things so tight and pressured for AMD?
Speaker 15 (28:19):
Yeah, it's not just AMD, it's basically the latest in
line here. I mean, you had Christiano Aiman of Qualcom
on this show going what is there not to like
about our ownings? And that's really the pattern that we've
seen this time, which is investors have put quite a
lot of money to work in chip stocks and now
they're like live up to our expectations, very high expectations,
(28:40):
and good isn't good enough. You have to be exceptional.
So that's the kind of situation that AMD is in tomorrow.
Speaker 4 (28:46):
Look at that stock rally here today forty six percent
for expecting and excess though of twenty seven percent. I
think growth in revenue. Where do they want to see
market being taken from? Because we know they've been winning
out against Intel, but really everyone always compares them against Invidia.
Speaker 15 (29:03):
Yeah, I mean this should be or at least the
forecast quarter should be sort of good news for AMD
for a couple of reasons. They've got more competitive air
accelerator chips, which go head to head with in VideA,
coming to the market. And also great news for their
man for in video, which is, hey, we can go
back to China. Some of these restrictions on shipments of
older products to China have been lifted, or so we've
(29:25):
been told. So that should also mean good news for
this quarter and for the future for that particular market
as well.
Speaker 2 (29:32):
You and I reflected together a couple of weeks ago
about how prominent Lisa Su was in Washington, DC when
the President gave his winning the AI race speech.
Speaker 3 (29:41):
He asked Lisa Su to stand up.
Speaker 2 (29:43):
But the reality is, Jensen Wang and Nvidia still have
a technical monopoly I guess more than seventy percent market share.
Speaker 3 (29:50):
Call it what you will.
Speaker 2 (29:51):
Is their evidence that Lisa Su is catching up, that
she's orchestrating the company in a way where they can
make gains in the AI accelerator market.
Speaker 15 (30:00):
I mean, looking at the numbers, this is the best
way to look at this. This is a great business
for AMD. You know, five billion dollars a quarter on
a sort of thirty billion dollar run rate for and
your revenue is is fantastic, right, but it's not one
hundred and twenty billion dollars. So that's that's the way
to look at it.
Speaker 4 (30:18):
I think always comparing the two in King, it's great
to have you, We thank you ahead of AMD. Meanwhile,
coming up, Tim Tally's going to be joining us from
Mendo Ventures joining us to talk about our enterprises are
putting their AI spend which LLM this is bring big
tech the AI boom, but it's spurred a series of
(30:43):
so called reverse aquahypers. Tech giants like Google, Amazon, Meta, Microsoft,
They get top talent and AI licensing without the so
called burden of government regulatory.
Speaker 5 (30:53):
Approval for these deals.
Speaker 4 (30:54):
For those hired though, it often means a big payday
and access to more resources. But what about the fledging
AI buses work as left behind Kate's Clark, I've just
been writing about this very thing, and Kate, if we
go back to some really tangible examples of a lot
of people being left behind almost how.
Speaker 5 (31:11):
Does it make them feel?
Speaker 16 (31:14):
There was a many many emotions from the employees that
we've spoken to, but some of them were in tears,
you know, after this was announced, because these are companies
that they joined hoping that one day they would see
a nice windfall, and that's not always the case when
these so called reverse accu hiers happen.
Speaker 2 (31:29):
Kate, maybe, like the most recent example that Caroline and
I have experienced is what was left of Windsurf with Cognition.
But I think back to Inflection and Microsoft and what
happened there. In your reporting, did you get any sense of,
like what often happens with the leftover part after an
aquahire the company that remains.
Speaker 16 (31:49):
There's such a wide range. But in the case of Inflection,
for example, they're still trucking. They've worked really hard over
the past year to keep that business going. We spoke
to executives at that company. They said they planned to
raise more money for the business. Same goes for character Ai,
another company that did a reverse accu hier. But it
really just depends. In other cases Covariant, which was reverse
(32:09):
accu hired by Amazon, not a lot is still happening
at that company.
Speaker 4 (32:13):
And actually the kicker of your story is about Adept,
also a reverse aqua hid target of Amazons, And I
think your line is it's now unclear who, if anyone,
is running the company. So are things changing, particular when
people are taking on new talent and the joining a
startup and the unwritten contract.
Speaker 5 (32:30):
Was you do well with me me as the CEO
of this business.
Speaker 4 (32:33):
I'm putting everything on the line so that you can
benefit to Are people starting to change the way in
which they're hired by these businesses?
Speaker 16 (32:38):
I think people are starting to question this because there's
been at least six of these now in the past
year or so, and that's a trend. It's really become
a trend in Silicon Valley, and I think investors, venture
capitalists and prospective employees are wondering, if I join this
AI company, is this founder going to stick along with
me or is he going to leave me behind?
Speaker 2 (32:56):
Blumous Kate Clark with the reporting out of New York,
thank you very much, Just stick with a Tim Tally
is a partner at Menlo Ventures, which recently published its
midyear update on the LLLM market. Tim, we have a
lot of data to get through, but in the enterprise
domain in particular, you guys are saying that anthropic leads
in terms of market share. Then open AI is just
(33:16):
behind just for transparency with our audience. Of course, Menlo
is on the cap table of Entropic and you have
a sort of partnership with them for compute access. But
break down the data and how Entropic's pulled a head
in that space.
Speaker 17 (33:29):
Yeah, I mean, there's really three things that stood out
in the report versus Anthropic really pulled ahead in terms
of enterprise spend. It's something on the order of thirty
two percent of spending the enterprise right now. I think
the other thing that really stood out, and maybe you
didn't mention yet, is that closed source models are really
dominating how people use these things these days. The open
source models, we're really starting to fall behind in terms
(33:49):
of the usage, and we see it when we talk
to developers. I mean, the way that we invest in
companies is we basically disarticulate their architectures and understand how
they're building their products, and you can see it anecdotally
and when we talk to developers in those companies.
Speaker 2 (34:01):
An executive from open ai was posting this morning on
x that chat GPT is up to seven hundred million
weekly active users. But therein lies the distinction, right there's
the consumer use you have a subscription basis revenue that
comes in, and then enterprise that seems where the volume
of dollars are going right now, What do you make
(34:22):
of that chat GPT stat.
Speaker 3 (34:24):
Yeah, it's real.
Speaker 17 (34:25):
It's not that surprising, and we hear it when we
talk to foks again in the same way that we
talk to developers, we talk to users of these products.
I mean, it's pretty well known in Silicon Valley at
least in the circles that Opening Eye sort of really
wins in the consumer space at least for now, and
anthropics would be winning in the enterprise spend with developers
who use it programmatically.
Speaker 5 (34:42):
Tim, I'm really interested to go more on this closed
source versus open source.
Speaker 4 (34:45):
Considering that the AI Action Plan really is leaning into
this open moment. At the same time, people reading in
between the lines from metas earnings, for example, and Mark
Zuckerberg's put pitch that maybe because of safety that have
to build more clothes rather and fully open as they
had previously seem committed to.
Speaker 5 (35:03):
What does an enterprise need right now?
Speaker 3 (35:06):
Yeah?
Speaker 17 (35:07):
Really in enterprise needs is what's in at least in
technical circles called the so called illities of a product,
the manageability of the product, the security, the observability, everything
that sort of comes with being able to run that product.
It's really hard to just take the weights of a
model and just go run it. I couldn't, you know,
put weights of a model, put it on a hard
drive and just hand it team and say, hey, go
run it. There's a lot of services and sort of
(35:27):
software that has to stand up around it to be
able to make it usable. And so that's really what
you're seeing is folks reaching for enterprise close force solutions
that have programmatic access to these capabilities.
Speaker 4 (35:37):
And going back to your anthropic numbers, leading enterprise LLLM
provider thirty two percent of the market.
Speaker 5 (35:42):
How early are we, though.
Speaker 4 (35:43):
In this rush and this commitment to money by companies
into large language models. How much more is there to take?
How quickly can we see the landscape shift?
Speaker 3 (35:54):
I think you're still seeing early days.
Speaker 17 (35:55):
The amount of spen you're going to see from model
span over the next few years is just going to
continually increase. In the report you saw just in the
last six months, spend went from three point five billion
to eight point four billion, which is more than double. Again,
just in the last six months, so it's early days,
and I think the spend is going to continue to
increase dramatically.
Speaker 2 (36:13):
So I've read through the report and I always look
for data that kind of gives us the other side
of the story. So you have all this enterprise revenue
coming in at Anthropic, but what is their cost op
X cost compute costs on a per token basis. Is
that data that you track that tells us if these
companies will ever be profitable.
Speaker 17 (36:35):
Yeah, there's no data that we put into the report,
but Dario has been pretty open that he feels like
the gross margins and the company are going to be
respectable and increase over time. And I think what you're
going to see is efficiency gains from the models and
how they're used. You're going to see things like token
cashing really start to dominate how people use the models,
and so they'll become more efficient over time and the
cost of run them will sort of go down over time.
Speaker 3 (36:55):
I fully expect.
Speaker 4 (36:56):
It's a really great report. Urge people to go and
read it. Tintally, thanks for talking us through a partner
at Menno Ventures and coming up, Joby set to acquire
helicopter ride share company Blade we're going to speak with
a CEO that's next to the Blueberg Tech shares of
(37:19):
Joby Aviation and Blade. Well, they're searching today after announcing
that Joby will purchase Blades helicopter rideshare business for as
much as one hundred and twenty five million dollars in
stock or cash. Now the acquisition really encompasses all of
Blade's passenger business, including US and Europe operations. And here
to talk through it Joby CEO joemyn Vert. Investors like
it on both sides of the equation. We don't often
(37:40):
see that tell us the rationale here, why buy that
part of the business?
Speaker 18 (37:45):
Yeah, thank you so much. Great to be here. First,
I'd like to lay the foundation.
Speaker 3 (37:49):
For where we are. And so the first piece is
that we're.
Speaker 18 (37:54):
Seeing unprecedented levels of regulatory support from the White House,
from the DOT, from the FA really leaning in. You
also have regulators around the world so excited about this
new age of aviation.
Speaker 3 (38:10):
Second is where the Jobe team is.
Speaker 18 (38:12):
We've been knocking out of the park on certification and
really delivering on manufacturing where we're doubling our manufacturing rate,
and all of this sets the stage where for commercialization
of a detail exactly, and.
Speaker 3 (38:30):
The key piece is.
Speaker 18 (38:34):
The work that Blade has done where they've built out
an incredible network of takeoff and landing locations, exclusive lounges,
and an attention to detail and attention to customer service
that are really unparalleled in vertical aviation.
Speaker 3 (38:50):
And so this is the right moment for.
Speaker 18 (38:54):
Us to partner and both on the by acquiring the
passenger business, but also partnering on the medical business.
Speaker 2 (39:02):
Joe Ben, when we broke this story over the weekend,
and thank you for your time and coming on the show,
the question I kept asking myself was does this accelerate
the ev toll bit to market in the United States?
Speaker 3 (39:14):
Absolutely?
Speaker 18 (39:14):
And one of the things that's so exciting, as I
mentioned on the regulatory support that we're seeing from the
administration with the recent executive order, we really see the
potential where that pulls forward the timeline. And that's one
of the big catalysts for why we decided to pull
the trigger here on the Blade acquisition.
Speaker 2 (39:32):
In the interim, will you continue operating the helicopter rideshare bit?
Does that business continue or you just buy the assets
and start planning from there.
Speaker 18 (39:41):
Absolutely, we're looking to not only operate it, but to
grow it and turn it into a much bigger business.
And then we think that with the quiet aircraft that
we're building, that we're going to see an explosion in
the number of takeoff and learning locations that we can
operate from. We're seeing real estate developers both here in
(40:02):
the US and around the world who are so excited
about our technology and are clamoring for takeoff and landing
locations at their developments. And so we just see unprecedented
momentum in the market today, un.
Speaker 4 (40:17):
Presidented amount of money that you're going to be committing
to it there for with the one hundred and twenty
five million.
Speaker 5 (40:22):
In stock or cash.
Speaker 4 (40:23):
But where are the details on that, Jovin? How are
you architecting the actual deal so it wins out for both?
Speaker 18 (40:31):
Yeah, So I think that's one of the beautiful things
I'm whenever I'm working on doing a deal with somebody,
I'm looking for something that's going to be a creative
for both sides. And this is a creative for Jobi
and that we get this incredible business that Blade is
built on the passenger side is a creative for the
Blade medical business because they're going to We're going to
(40:53):
be able to put our VTOL aircraft and our next
generation hydro electric aircraft onto their platform on their medical
platform over time, and so this is it allows the
medical business to be really laser focused on growing medical
to have the resources they need and the focus they
need to really grow that business. So this is an
(41:14):
incredible win win, and that's we.
Speaker 4 (41:16):
Really focused on the regulatory process right now. What is
the next step that you need to meet to be
able to make sure that when I go to a blade,
it's not gonna be a helicopter, it's going to be
your EV tool.
Speaker 3 (41:25):
So we are taking our aircraft.
Speaker 18 (41:28):
We have multiple aircraft that are going down the manufacturing
line right now which are our type intent TIA aircraft
for TA flight testing, and so we have FA dars
who are in the factory with us on a daily basis,
inspecting the parts and systems as they're going together.
Speaker 3 (41:49):
And then we're.
Speaker 18 (41:52):
Going to begin TA flight testing with FA pilots on
board early next year. So this has been a long
journey and it's so excited to be right close to
the finish line and ready to begin the commercialization journey.
Speaker 2 (42:05):
Joe Ben, how much more room is there for you
to do more M and A, particularly in other geographies
of this type.
Speaker 18 (42:12):
We see incredible opportunities, you know, and I should be
really clear. Blade has built an absolutely spectacular business, not
just here in the US, but also in Europe, and
we see opportunities around the world. So there is so
much demand and so much congestion in cities around the world,
and we can't wait to really lean in.
Speaker 3 (42:33):
Joe beem just real quick.
Speaker 2 (42:34):
Often when you get a deal, the acquiring company doesn't
see their stock jump by the same level that the
acquisition target is. Just what do you make of that?
What do you think investors are signaling.
Speaker 18 (42:44):
To you that we built a really fantastic deal that's
a win win for both Blade shoreholders and for Joby shareholders.
Speaker 3 (42:54):
This is going to be a.
Speaker 18 (42:57):
Massive accelerant for Joby and for our roll out both
here in the US and around the world. The operational
expertise that we're acquiring, the infrastructure we're requiring, and the
attention to detail and customer service. We can't wait to
scale this service and really bring the magic flight to
(43:17):
people's daily lives.
Speaker 2 (43:19):
Joe Benbevitt of job thank you very much for your
time here on Bloomberg Tech. That does it for this
edition of Bloomberg Tech, Karen, what.
Speaker 3 (43:26):
An edition it was.
Speaker 5 (43:27):
I mean M and A sprinkled in.
Speaker 4 (43:29):
We continue on the IPO path, don't forget check out
our podcast. You can find out on the terminal as
well as online on Apple, on Spotify whose own shares
are popping today, and on iHeart.
Speaker 5 (43:38):
This is Bloomberg Tech.
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