July 22, 2025 • 32 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss the latest update in the Microsoft SharePoint hacking. Plus, OpenAI and Oracle announce plans to expand US data center capacity. And semiconductor maker NPX fails to impress investors with its third-quarter forecast.
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast, with Caroline Hyde in New York
and Eva Low in Sent Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up.
Speaker 3 (00:24):
Microsoft accuses Chinese hackers of exploiting vulnerabilities in its SharePoint
software that have led to breaches worldwide.
Speaker 4 (00:31):
Plus Open Ai and Oracle deepen their Stargate Data Center
partnership to power AI work lanes, but no sign of
soft Bank to help finance the US infrastructure, and.
Speaker 3 (00:41):
NXP gives a not so bullish third quarter forecast, suggesting
the chip makers still contending with a turbulent industry in
the face of tariffs. Microsoft our top story in a
blog post, saying that state sponsored Chinese hackers are behind
what's happening, and in particular the stock reacting level to
the early in the session car a normalizing a little bit,
(01:01):
but we've got to get into it.
Speaker 5 (01:02):
We do. Let's stick with that Microsoft story.
Speaker 4 (01:04):
But in Magistrate dreiberg joins us for the latest and
these are known state actors, two of them and then
one Chinese based actor.
Speaker 5 (01:12):
It would seem.
Speaker 2 (01:13):
Yes, that's exactly right.
Speaker 6 (01:14):
Microsoft said this morning that two groups backed by the
Chinese government, silk Linen Typhoon and another group have been
responsible for some of the exploitation of this vulnerability in
its SharePoint software. We've also heard from other cybersecurity firms
that they're seeing multiple different organizations sort of hack into
(01:38):
businesses and governments based on this vulnerability.
Speaker 3 (01:42):
Jake, the top priority right now seems to be identifying
the victims. Do we know what the kind of net
result of this this hacking activity is? Who's been impacted?
Speaker 6 (01:52):
We know that the impacted organizations are ones that hosted
SharePoint on their own servers. Seems to be a real
smattering of different groups, government, agencies, businesses, other organizations all
over the globe. We know that governments have been hit
in the Middle East and in Europe and here in
(02:14):
the United States. We also know of businesses and state
level agencies that have also been hacked into.
Speaker 4 (02:20):
Microsoft for its part, say investigations into other actors are
also ongoing. When it comes to the exploits, we could
currently see what they've put out in a blog post,
but more broadly, they acted swiftly to try and patch
the issue for once in a server.
Speaker 5 (02:34):
That is the key concern exactly.
Speaker 6 (02:37):
We've seen warnings from cybersecurity companies that you don't just
need to patch, you need to sort of hunt for
whether your systems were penetrated and what they might have
been taken. And a source told Bloomberg yesterday that the hackers,
once getting in in some instances, are stealing log in credentials,
user names, passwords, tokens, and that suggests that they may
(03:00):
be trying to exploit that information to watch other attacks.
Speaker 3 (03:04):
Bloomboags Jake Bleiberg out of New York City, thank you
very much. Meanwhile, shares an NXP semiconductor or trading lower today,
the company posting third quarter forecasts that were less bullish
than invested in anticipated. Then they went on to talk
about the state of play in the automotive industry, which
is fifty percent or more of their revenue. Bloombozy and King,
who leads our chip coverages here, that'tually a pretty simple
(03:25):
story right away from all the AI stuff, there's been
a glut in inventory on automotive chips. NXP saying, look,
it takes time to work through them, but for that
industry and that key customer, the world's a bit uncertain
as well.
Speaker 7 (03:39):
It absolutely is, and we'll hear from Texas Instruments in
a similar vein later today. The cross currents are everything's
supposed to be getting better. This kind of glow that
we've had over the last couple of years is supposed
to be going away. So we want you know, if
you're an investor, you want them to be more bullish,
you want them to be a bit more reassuring. That's
not what happened for man XP. They said things are
(03:59):
still had hanging around.
Speaker 5 (04:00):
And ian almost bullish is the wrong word for it.
Speaker 4 (04:03):
When revenue is down six percent for n XP and
actually revenues have been down quarter after quarter.
Speaker 7 (04:10):
Right, Yeah, I mean what we'll have to look at.
And this is why I think it's going to be
useful to have Texas Instruments reporting today sort of back
to back. Is this a customer related thing? Is NXP
basically supplying automotive companies that are struggling more than others.
Texas Instruments is a much broader supplier, has a bigger
(04:31):
customer list and a bigger set of products, So that
will give us a sense of whether this is a
general automotive malaise, whether this is China related, whether this
is Europe related, and we'll have a much clearer picture
later today.
Speaker 3 (04:43):
I am going to dig into this a bit later
in the program, but the Philadelphia Semiconductor Industry Index, sorry,
is underperforming generally in NVIDEO and am D A big
drags on that. The read through between NXP and those
two is difficult for me to see. But generally speaking,
away from those kind of ultra specialized and even analog chips,
(05:04):
things are quite robust still.
Speaker 7 (05:06):
Yeah, I mean we've seen I mean you talk about
the index, the index has done pretty well this year.
There's a lot of money has been put to work.
Everything we've heard so far and we'll hear more on
on that vein as the inning season unfolds, is there's
a lot of spending still going on on these large
AI infrastructure systems, and we've heard nothing that's telling us
that that's not going to continue. And that's really what's
(05:28):
going to be the most important thing, and that's what's
driven the socks so far. Analog has been a slightly
different story, but again analog benefits from the server build
out as well. You need these power related chips, you
need these micro controllers as well.
Speaker 4 (05:40):
In king always with all the context, so appreciate it.
Thank you. Let's dive deeper into the tech earnings, the
vibe in the market right now, Anna Rathens with us
founder and CEO of Grenna Dilla Advisory. Anna, your take
here is that, yes, we're perhaps pulling back on the
day somewhat nxp not resounding vealing of optimism, but we're
(06:02):
still near all time highs and we've still got a
four trillion dollar in video in our hands.
Speaker 5 (06:07):
Yeah, good morning.
Speaker 8 (06:08):
Markets are definitely the valuations are high. There's no slicing
that in a different way. But I guess you know,
you have to look at tech differently than we used to.
So a lot of allocators and wealth advisors out there,
we've been taught to look at tech as a growth sector.
Perhaps it's more than that. So the AI component is
definitely tech, but maybe there's also a quality factor there
(06:32):
as well. Got healthy balance sheets, great cash flow, especially
those mega companies, megacap companies. It's also got a defensive
sector of characteristic as well. We learned that we cannot
operate this economy and our society without tech infrastructure as
well as software. So I think that when we're looking
at tech, we have to look at it from multiple
(06:55):
angles in order to perhaps try to explain some of
this valuation. It's not just about AI froup. It's much
more than that.
Speaker 4 (07:02):
But what's been interesting is the AI winners have powered
forward on the twenty twenty five, and those winners have
been deemed well the metas of this, Wells in videos
of this, Wells Apple left for dust. In some ways,
Alphabet has been a lagged too. How do we set
up into Wednesday when we start to get a couple
of those MACS seven names.
Speaker 8 (07:22):
Yeah, I think there's definitely a vifurcation in those MAC
seven names. And right now it looks like the people
who have really invested and gone forward with AIS are
definitely winning. Now Alphabet, for example, will have different challenges,
right Not only do they have some legal challenges, but
you know, I don't know about you, but when I
talk to my friends, they stopped using Google as a
(07:43):
search engine. They're using chat, GPT. And I know that's
just a few people around me and perhaps you, but
those things can actually catch up. And I know Chetman
and I is improving, but I think that's a real
competitor there, and so AI is going to be more
important going for work for some of these Max seven names,
and I wouldn't expect disappointing report from them, but certainly
(08:07):
I think investors can read between the lines.
Speaker 3 (08:10):
And I what's curious about this week is that on Wednesday,
Alphabet and Tesla posts their earnings results right somewhat analogous companies,
some differences, and on the same day we'll hear from
the President about his vision for AI and American AI.
It's going to be a wild ride for investors this week,
(08:32):
isn't it.
Speaker 8 (08:33):
Well. You know, anytime anyone from the government talks about
technology and AI and even bitcoin or blockchain, I get
a little nervous because I think we have to tread
very carefully here. We don't want to get in the
way of innovation, and yet we want to protect consumers, right,
So it's going to be a very It's going to
(08:53):
be a balancing act for anybody who from the government,
from the White House talking about AI and how America
is going to be involved in the development of AI.
I would go in with a little bit of a
cautious view, and frankly, I'm expecting a lot of lofty statements,
but the question always is how does this actually translate
(09:14):
down to the day to day and actual software and
make difference in our productivity.
Speaker 2 (09:21):
Let's bring it back to today's news.
Speaker 3 (09:23):
What did you learn about the near term and quantifileble
impact of tariffs? You names like General Motors and NXP
show us that actually something's happening here.
Speaker 8 (09:35):
Yeah, I mean something is happening there. We're talking about
actual money, right. I mean, so for last week, if
you think about the CPI and consumer sentiment, you didn't
really see it, right, but you are seeing it in earnings.
This is actual cash flow impacts. So I think this
is going to trickle in as the quarter goes and
give us a better view of exactly what areas of
(09:57):
the economy are being impacted by tariffs. Who is is
actually assuming some of those costs because GM actually came
out and said we don't want to pass down all
the costs to the consumers. So it'll be interesting to
see how those things get I guess diversified into the
supply chain and how GM and other companies actually manage
those challenges.
Speaker 4 (10:16):
And going back to taras tarvis is all about the
geopolitics that is currently involved in technology investing. I think
of the geopolitics between US and China. I think of
the latest news out of Microsoft blaming China for a hack.
How much do you factor that into your current investment thesis?
How much can you price that sort of geopolitics in?
Speaker 8 (10:35):
Yeah, I mean I never thought that this trade talk
with China is going to be simple or smooth, right,
and this is yet another twist in the plot. I
would hold that August first deadline date really loosely in
your hands, because you know, it was April first, and
then or July ninth, and then now it's August first.
(10:56):
I think that the Trump administration as well as China,
I mean, they have a lot at stake here, so
I don't think the deadline really matters. I think we're
going to be negotiating until we actually get to a
good place for both countries, and August first might coming.
Speaker 3 (11:12):
Go Anna Rathban, founder and CEO of Grenadilla Advisory, thank
you very much for coming up. Oracle and open Ai
is set to expand their partnership, opening up more data
centers to satiate AI demand.
Speaker 2 (11:26):
We had the details next. This is Bloomberg Tech.
Speaker 4 (11:41):
Oracle along with open Ai have announced that they're set
to develop four and a half gigawatts of additional US
data center capacity. Let's bringing Bloomberg's Brodie Ford now on
how the evolution of stargate is going.
Speaker 5 (11:55):
And who's involved and who isn't, because we'll get.
Speaker 4 (11:57):
To sort of bank in a moment the fact they
don't seem to be on the page, but this is
this component to what have ten giga?
Speaker 5 (12:03):
What's by four years time?
Speaker 4 (12:05):
They really seem to be building it out now, right, and.
Speaker 2 (12:07):
We can for get a giggle lot.
Speaker 9 (12:08):
I mean we're throwing these numbers around now, but you know,
a couple of years ago you would never hear about
a giggle wat data center, and now we're talking about
four and a half. I mean each one of those
about equivalent to a nuclear reactor. And so a four
and a half gigawatt data center deal that's across the country.
This is an unprecedented cloud deal. I mean, this is
likely the largest single cloud deal ever signed. And so right,
(12:28):
if your oracle, if you've been trying to tell people
for many years, you're going to be a real cloud
infrastructure player.
Speaker 2 (12:34):
This is a pretty.
Speaker 9 (12:35):
Resounding sign of confidence from the most important AI company
at the moment, Berdie.
Speaker 3 (12:41):
The way we look at this is it it's confirmation
of our prior reporting on the projects. But also, as
Cara alluded to, some clarity on the bits that SoftBank
is and is not financing absolutely.
Speaker 9 (12:55):
So it's very interesting because in January we saw you know,
Larry Ellison, Sam Altman, and soft Bank sitting at the
White House. Today, SoftBank doesn't appear to be too involved.
They're not saying we're out for good. But this four
and a half gigle walks, which likely gets those to
around thirty billion a year, soft Bank is not involved
in financing. Where does the rest of that money come from?
(13:17):
That's going to be a big question in the following months,
right because open Ai makes a lot of money, they're
not making that much money to be able to just
spend all this themselves.
Speaker 4 (13:26):
We're going to dig into more news miracle in a minute,
but I just want to understand where we think these
data centers are going to be. Do we have much
detail on the timescale here as well?
Speaker 9 (13:36):
Every time I ask a source where the next data
center is going to be, they tell me a different state.
They're evaluating a lot of different states, a lot of
different sites. If you've read an article that says, hey,
they want to develop a multi giggle data center here,
odds are that starting. It has evaluated this site, so
I'm keeping my eyes out.
Speaker 3 (13:55):
Slightly smaller scale, but Oracle's also in talks around one
hundred million dollar a year paramoun Skydanceteel, What do we
need to know about that one?
Speaker 9 (14:02):
What you need to know is if your dad is
Larry Ellis said, and he helps you buy something, you're
going to have to kind of help buy some stuff
from him as well, right, I mean Larry Ellison's son,
David Ellison has been in the works to buy Paramount
for a while and they're already having negotiations that assuming
that deal goes through, Paramount will be a major OCI customer.
(14:23):
They're going to put all of their CBS, NTV, it's
a lot of assets, a lot of gigabytes, and they're
going to be on Oracle servers doing best.
Speaker 3 (14:30):
Brady Ford, thank you really on top of this story.
Thank you very much. Okay, we have another story. Some
updates in the four billion dollar fraud case against the
estate of deceased Autonomy founder Mike Lynch. A London judge
ruled that HPE lost close to one billion dollars after
buying Autonomy. Lynch's estate will face a claim for much
of that sum after he lost a London fraud case
(14:53):
along with the former CFO of Autonomy. The ruling suggests
HPE will likely recain just a fraction of its total claim.
The ruling comes less than a year after Lynch drowned
when his yacht sank in a storm off the coast
of Sicily. Poseidon has announced its raised fifteen million dollars
(15:17):
in a seed round led by a sixteen Z crypto,
as the company looks to tackle bottlenecks in AI training data,
including IP safe resources. This particularly aimed at training data
for robotics, multimodal models, and physical AI. Here with more
is s y Le Poseidon President and CEO story The
incubator behind Poseidon state of players really clear, right. AI
(15:40):
models have become commoditized, compute costs have come down. But
the bottleneck, as you see it and many others see it,
is the data.
Speaker 10 (15:48):
You have a solution, yes, as you just wanted to
put that into context again because now you know the
previous generation of models. We're scraping the internets data, which
is you know, you know you can scrape it all.
But now AI is going to the physical world. It's
the multimodel models, right, it's a robotics model, it's a
(16:08):
video model, audio model, and this really real bottleleg is
the data, as you said, because you know, you can't
ask rate it illegally on the Internet, and a lot
of times this data is very private. You know, there's
a lot of IP safety concerns. And in that world,
how do you coordinate the collection, labeling, curating of the data.
(16:30):
And we're using actually crypto incentives to actually coordinate that
massively label coordinator.
Speaker 3 (16:37):
So my next question was why is Andreson's crypto team
backing you and not an AI specialist.
Speaker 2 (16:45):
Partner or a different firm.
Speaker 10 (16:47):
First of all, micro founder is a you know, robotics
at UT Austin, and he's he's a big AI specialist
who's been kind of working on this data licensing and
data collection for the last ten years and even he
thought about how do how do you incentivize data collection
with data dividends? So you know, he he he's an
AI expert in in this in this problem. But the
(17:08):
reason why we are kind of they we think this
is so so timely, is you know forty days ago
actually meta semi a quiet actually as as you know, uh,
scaling on as a data left a very huge vacuum
in the space to actually for competitors and new players
to come in. And if you look at scaleing on
D I mean, I'm not trying to criticize, but they
(17:29):
have to you know, make a lot of shell companies,
work with shell companies and developing countries to actually coordinate
this kind of digital sweatshop to make that happen. But
the beauty of crypto is that it's still really good
at coordinating incentives in a at a global scale and
pay them instantaneously with stable coins or.
Speaker 5 (17:46):
Other type of cryptotokens.
Speaker 10 (17:47):
Right, And that is a very very huge advantage number one, right,
And number two, not only that, what crypto and blockchain
does is it is good at you know, putting this
data and IP on an immedable ledger and track and
attribute it and license it with small contracts. And that's
those two are very very important advantage of crypto. Even
(18:08):
where my co founder, Ai Specialist wants to actually use thistagnomogy.
Speaker 4 (18:12):
S ry, let's just go to the basics of the
data that is needed. Here, I can see the crypto
read across. I think of Vaccineinfinity, the game that when
bananas in the Philippines years ago, how people wanted to
play because they earned money in tokens via playing this
crypto native game. You're going to use people, incentivize people
to sort of video themselves in the real world, then
(18:34):
ultimately helps Tesla build optimists in the real world.
Speaker 10 (18:38):
Yes, actually you hit on the right comparable. Ex Infinity
was an example of coordinating this massive number of people
in the Philippines and other types of developing country, other
other developing countries to actually play games to ourn' tokens
right in.
Speaker 5 (18:53):
The same way.
Speaker 10 (18:54):
Now, you know, when Tessa wants to train as human
aid robot, they you know, even if you script the
entire Internet's data, you can't actually have a testa robot
holding a coffee cup, right because you know, you need
a million angles of data to ecocentric video footage and
a million different types of settings and that kind of data.
(19:15):
Instead of actually hiring a shell company and they're having
their share company hired, you know, tens of thousands of people.
You can coordinate this at a mass skill and an
instantaneously with a with crypto incentive. That's what we're doing.
Speaker 4 (19:28):
And let's talk about the end demand here. How many companies?
Who is your ultimate provider? How do you then sell
this aip this ip safe AI training data.
Speaker 10 (19:41):
Yeah, the reason why it's IP safe is that everyone
who are actually contributing data, anyone can contribute this data
anywhere around the world, right, and then actually set their
licensing usage terms on the blockchain. And we are at
the moment we're not completely centralized, and we are now
going to launch a decentralize a deep in app in
the center physical infrastructure app and fall that actually collects data,
(20:04):
you know, puts this on the blockchain with the licensing
terms in place. But at the moment, we're now actually
acting as an agent to actually secure these contracts, and
we already have a you know, we've already signed a
contract and we cannot discuss.
Speaker 2 (20:19):
It at the moment, right, you know.
Speaker 10 (20:20):
And then I mean in the robotics relevant.
Speaker 3 (20:23):
Well, quickly, if scale AI, the scenario left a vacuum
and you look to occupy that vacuum, how many phone
calls have you had from the other frontier model makers
that you could fit into their organization in the same
way just thirty seconds.
Speaker 10 (20:37):
You know, actually many many organizations, And I was really
surprised as C Stage company, they were willing to work
with us because a lot of them were telling us
that they were dropping contracts from SCALEI.
Speaker 3 (20:49):
But I meant in terms of you being acquired or
you joining a bigger group.
Speaker 5 (20:54):
We don't have any plan.
Speaker 10 (20:55):
We don't have any plan. And we think the advantage
of this open system is that we can work with
any AI.
Speaker 5 (21:00):
Farmers, s y Lee, a Poseidon and Story. Great to
have you on today.
Speaker 4 (21:05):
Now, let's just turn back a minute for what's going
viral because Tesma's futuristic diner in la is complete with
a drive in charging experience. Now, the sleek retro Vibe
diner is also replete with two sixty six foot megascreens
and a rooftop skypad and a prototype of Optimist.
Speaker 5 (21:22):
The robot is serving popcorn.
Speaker 4 (21:24):
Apparently that was at the pre launch event for the
Hollywood venue. Tesa claims it's the largest urban supercharger in
the world.
Speaker 5 (21:37):
Let's just talk.
Speaker 4 (21:37):
About another key player that's got earnings later this week. Alphabet, Well, Google,
we understand is seeking to recruit news organizations for a
new licensing project related to AI.
Speaker 5 (21:47):
It's all, according to sources, which could be a big
win for the struggling media companies.
Speaker 4 (21:52):
Bloomberg's Hannah Miller joins us, now, is this some sort
of Google capitulation here, because we've seen some deals done
by other AI players, but Google's always set on the side.
Speaker 11 (22:00):
I think Google is playing catch up here. You know,
we've seen big companies like open ai and Microsoft strike
these massive licensing deals with news organizations, and Google, yeah,
they've been sitting on the sidelines.
Speaker 5 (22:13):
They haven't been doing that as much.
Speaker 11 (22:14):
So this could be them, you know, testing the waters,
you know, trying to build better relationships with media companies
as the AI race heats up.
Speaker 2 (22:23):
Kind of.
Speaker 3 (22:23):
One of our sources said that in one case, Google
launched this kind of pilot with twenty different news orgs.
You cover TMT right from the news perspective, So it's
like a cash cow, a great gold mine just to
sell data and bring in some money through a new mechanism.
Speaker 5 (22:40):
A lot of people in.
Speaker 11 (22:41):
The industry are saying this is a temporary band aid,
you know, yes, we can get some money from these
big companies at the start, but looking long term, of
many journalists feel like AI is a threat to their business.
You have people in the arts, you have people at
major media companies concerned about the effect AI will have
on their jobs.
Speaker 3 (23:02):
Bloombog's Hannah Miller out in New York, thank you very much. Now,
Netflix and Disney are both taking steps into the somewhat
controversial world of AI video creation with software from Runway
AI Blueboks. Rachel Mets brings us the story. Interesting one
about this is that in the earnings context, this has
already come up, particularly for Netflix right in recent weeks.
(23:24):
But what's the controversy and what is the actual tool here? Like,
what is it that a Netflix would need AI to do?
Speaker 12 (23:33):
So as you as you mentioned, Netflix said on their
earnings call just last week that they're using AI, and
they also mentioned a production that they'd used it in.
So companies like Netflix, what they could do with this
software in theory is they could maybe lower some of
the costs for special effects, so they'd use a model
like Runway. Runways top line model is JEN four. They
(23:56):
also have some models that aim to reproduce motion capture
software and without using all the fancy and clunky hardware
that comes with it. So the idea would be to
save costs here and to do some shots that perhaps
it would have been impossible previously without using AI software.
Speaker 4 (24:16):
I think we learned from Ted surroundos over Netflix that
it was previously using to sort of simulate a building collapse,
and I think it was an Argentinian particular visual effects company,
but it wasn't Runway usually we understand according to people
familiar who are Runway, have they worked with and what
have they been able to produce thus far? Because they're
(24:37):
actually out competing Hollywood or West Coast based visual effects companies.
Speaker 12 (24:44):
Yeah, so Runway works with a number of different companies.
We also know that Disney has been testing out those software.
They also Runway has a deal with Lionsgate. They're working
in a field that's increasingly crowded and there are so
much larger players. Open Ai has its own video software.
(25:04):
Google does as well, And what I would expect to
see is companies like Netflix. Probably they said they did
not create that scene with Runway, Well that implies there's
at least one other company that they're working with the
software from, right, so I would expect to see that
actually As these companies dip their toes into the water
of AI video software more and more, you'll probably see
them try out a bunch of different ones, and maybe
(25:25):
they will end up using a bunch of different tools
for different things. I think it really just depends on
what they find most useful and what their production teams do.
Is it live action, is an animation, and what tools
work the best for those sorts of things.
Speaker 2 (25:38):
Let's try and get the big picture vision.
Speaker 3 (25:40):
This is what Ted Sarandos actually said on Netflix's earning score.
Speaker 13 (25:44):
We remain convinced that AI represents an incredible opportunity to
help creators make films and series better, not just cheaper.
There are AI powered creator tools, so this is real
people doing real work with better tools. Our creators are
already seeing the benefits and production through pre visualization and
shot planning work and certainly visual effects.
Speaker 2 (26:08):
So Rachel, that's how Netflix sees it.
Speaker 3 (26:11):
If you are a Runway or another AI company that's
working on text to video tools, right is the movie
industry or television. What they're working toward is that who
they want to serve.
Speaker 12 (26:24):
Absolutely, I mean they want to work with professionals who
are working in these fields, and they want to work
with the studios. I think what's also important to keep
in mind is this technology is really controversial because there
are a lot of people people that perhaps would or
would not be wanting to use this software, that are
(26:46):
concerned that this is going to cut into their livelihos,
and I think that's a really real concern. So that's
part of why the studios are being I think they're
a little bit hesitant to be public right now about
how and if they're using this software because the stakes
are really high.
Speaker 2 (27:02):
Bloomberg's Rachel Metz, thank you very much, Cara, what you.
Speaker 4 (27:05):
Got as time now for Talking Tech and first stop
ed in video. The chip challenger Furiosa AI has finalized
a deal with LGAI Research. Now the South Korean chip
designer one final approval for its AI chip Renegade after
seven months of evaluations. Now in March, remember, the company
rejected an eight hundred million dollar takeover from Meta, choosing
(27:26):
instead to grow the business as.
Speaker 5 (27:28):
An independent company.
Speaker 4 (27:29):
Plast black Rock has told staff not to bring company
devices to China, including iPhones and iPads. That's all according
to a memo seen by bluembg News, and then move underscools,
growing concern among some global firms about employees working there
and data security and glade Brook Capital Partners has raised
five hundred and fifty million dollars for investors for its
full fund. The firm has Stakes and SpaceX Perplexity Stripe,
(27:50):
among other startups, and it prows to continue backing fintech, AI,
E commerce, space and defense companies.
Speaker 3 (27:56):
Ed okay, coming up, tech and energy leaders head to
Washington to discuss how the US can win in the
AI race. Or take a look at where global AI
competition stands now, Caroline, you pointed this one out earlier today.
Speaker 2 (28:11):
It's a name what I've not looked at in a while.
Open Door.
Speaker 3 (28:13):
Okay, the stock's down one point six percent in the
hearing now, but look at some of the swings in
the session. Bloomberg writing about some of the activity, some
of the halts. Open Door is the latest memes stock.
This says it on the Bloomberg terminal. No, seriously, go
check it out.
Speaker 2 (28:28):
We'll be right back. This is Bloomberg Tech.
Speaker 4 (28:39):
President Trump in a bilateral meeting with President of the
Republic of the Philippines. I want to go straight out
to Mike Shepard there was a lot discussed there DOJ
investigations being queried, and some referring to potential as Trump
continues to see it of an election rigging, as he said,
but we've also had so much more when it comes
(29:00):
to the trade, when we think about China, when we
think about magnets, as it says, flowing out succinctly from
the country. Can you just wrap up what we were
hearing from there?
Speaker 14 (29:10):
Well, First, the very first question the President took, of course,
was on the FED, something very close interest to our audience,
and the President stopped short of calling for Jerome Powell
to resign as FED chair. He did keep up his
criticism of Powell's handling of interest rate policy, saying that
he's been too late and too slow to lower interest rates.
And this is a theme he has returned to again
(29:32):
and again in these moments when visiting foreign leaders join
him in the Oval Office. Just last week we saw
him hit these notes with the visiting Crown Prince at Bahrain.
We heard it again today with the President of the Philippines,
Ferdinand Marcos. We also heard the President talk about China,
which of course is a crucial topic between the US
(29:53):
and the Philippines. China's one of China's closest neighbors. The
Philippines has to balance this relatelationship, and we heard Marcos
and Trump both talk about this, and Trump also indicated
he had accepted taken an invitation from President's Shushin Ping
of China and was looking at possibly accepting it and
would make a decision on that in the near future.
Speaker 3 (30:13):
Carol Okay, Bloombergs, Mike Shephard, thank you very much. We
also expect to hear from the President later this week
in a speech on AI. Let's get from DC to
the global perspective of how the AI race is unfolding.
Nicolaus Lang is with us for that, managing director, senior
partner Boston Consulting Group and the global leader of BCG's
think tank, the BCG Henderson Institute. We've covered a lot
(30:35):
in this program, how codified Europe's framework is around AI.
We're waiting on America to follow suit in many respects.
The President will outline a vision on Wednesday. How would
you summarize the differences of approach between those two jurisdictions.
Speaker 15 (30:54):
Yeah, well, thank you for having me, and I think
when we look at the global geopolitic SOFII. What we
have seen here in our research is that we see
two superpowers, Yeah, on one side, the US. On the
other side, China, I think, leading in talent, compute, power,
foundation models. And then you have Europe and the Middle East,
(31:14):
which are these middle powers challenging the superpowers. And I
think that's where we will see the dynamic unfold in
the years to come. You just mentioned the approach to regulation.
I think this is different. I think in the US,
it's different in Europe, it's different in China. And the
realities that we need to adapt to these three constituencies
(31:36):
and these three approaches to regulation.
Speaker 4 (31:39):
Very briefly, Niklaus, the companies you advise, where are they
trying to navigate? They're looking at expanding data centers within
the Middle East, within the US. Where are people tending
to default right now for their expertise?
Speaker 15 (31:51):
Yeah, Well, I think what we see in AI is
a fragmented world as we see it also in other
parts of geopolitics, and I think companies realize that they
need to be present in the different regions, both with
data centers, with AI talent, and also with capital and investment.
And I think that what makes this jubiled pigs of
AI space so interesting because I think we have a
huge dynamic, a regional dynamic which is very different from
(32:13):
what we see in other areas.
Speaker 4 (32:15):
We're going to be hearing much more about that regional
dynamic and an event later this week, of course, over
in DC Nicolaus Lang fascinating from the Boston Consulting Group.
We wish we had had more time. Meanwhile, though, that
does it for this edition of Bloomberg Tech Ed.
Speaker 3 (32:28):
Yeah, don't forget check out the podcast where we can
retap all of today's Bloomberg stories and a lot more
that was going on.
Speaker 2 (32:34):
You know where to find it.
Speaker 3 (32:35):
It's on all the Bloomberg platforms, the Bloomberg terminal and
online on Apple, Spotify, and iHeart this is Bloomberg Tech
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive
from coast to coast, with Caroline Hyde in New York
and Eva Low in Sent Francisco.
Speaker 2 (00:22):
This is Bloomberg Tech coming up.
Speaker 3 (00:24):
Microsoft accuses Chinese hackers of exploiting vulnerabilities in its SharePoint
software that have led to breaches worldwide.
Speaker 4 (00:31):
Plus Open Ai and Oracle deepen their Stargate Data Center
partnership to power AI work lanes, but no sign of
soft Bank to help finance the US infrastructure, and.
Speaker 3 (00:41):
NXP gives a not so bullish third quarter forecast, suggesting
the chip makers still contending with a turbulent industry in
the face of tariffs. Microsoft our top story in a
blog post, saying that state sponsored Chinese hackers are behind
what's happening, and in particular the stock reacting level to
the early in the session car a normalizing a little bit,
(01:01):
but we've got to get into it.
Speaker 5 (01:02):
We do. Let's stick with that Microsoft story.
Speaker 4 (01:04):
But in Magistrate dreiberg joins us for the latest and
these are known state actors, two of them and then
one Chinese based actor.
Speaker 5 (01:12):
It would seem.
Speaker 2 (01:13):
Yes, that's exactly right.
Speaker 6 (01:14):
Microsoft said this morning that two groups backed by the
Chinese government, silk Linen Typhoon and another group have been
responsible for some of the exploitation of this vulnerability in
its SharePoint software. We've also heard from other cybersecurity firms
that they're seeing multiple different organizations sort of hack into
(01:38):
businesses and governments based on this vulnerability.
Speaker 3 (01:42):
Jake, the top priority right now seems to be identifying
the victims. Do we know what the kind of net
result of this this hacking activity is? Who's been impacted?
Speaker 6 (01:52):
We know that the impacted organizations are ones that hosted
SharePoint on their own servers. Seems to be a real
smattering of different groups, government, agencies, businesses, other organizations all
over the globe. We know that governments have been hit
in the Middle East and in Europe and here in
(02:14):
the United States. We also know of businesses and state
level agencies that have also been hacked into.
Speaker 4 (02:20):
Microsoft for its part, say investigations into other actors are
also ongoing. When it comes to the exploits, we could
currently see what they've put out in a blog post,
but more broadly, they acted swiftly to try and patch
the issue for once in a server.
Speaker 5 (02:34):
That is the key concern exactly.
Speaker 6 (02:37):
We've seen warnings from cybersecurity companies that you don't just
need to patch, you need to sort of hunt for
whether your systems were penetrated and what they might have
been taken. And a source told Bloomberg yesterday that the hackers,
once getting in in some instances, are stealing log in credentials,
user names, passwords, tokens, and that suggests that they may
(03:00):
be trying to exploit that information to watch other attacks.
Speaker 3 (03:04):
Bloomboags Jake Bleiberg out of New York City, thank you
very much. Meanwhile, shares an NXP semiconductor or trading lower today,
the company posting third quarter forecasts that were less bullish
than invested in anticipated. Then they went on to talk
about the state of play in the automotive industry, which
is fifty percent or more of their revenue. Bloombozy and King,
who leads our chip coverages here, that'tually a pretty simple
(03:25):
story right away from all the AI stuff, there's been
a glut in inventory on automotive chips. NXP saying, look,
it takes time to work through them, but for that
industry and that key customer, the world's a bit uncertain
as well.
Speaker 7 (03:39):
It absolutely is, and we'll hear from Texas Instruments in
a similar vein later today. The cross currents are everything's
supposed to be getting better. This kind of glow that
we've had over the last couple of years is supposed
to be going away. So we want you know, if
you're an investor, you want them to be more bullish,
you want them to be a bit more reassuring. That's
not what happened for man XP. They said things are
(03:59):
still had hanging around.
Speaker 5 (04:00):
And ian almost bullish is the wrong word for it.
Speaker 4 (04:03):
When revenue is down six percent for n XP and
actually revenues have been down quarter after quarter.
Speaker 7 (04:10):
Right, Yeah, I mean what we'll have to look at.
And this is why I think it's going to be
useful to have Texas Instruments reporting today sort of back
to back. Is this a customer related thing? Is NXP
basically supplying automotive companies that are struggling more than others.
Texas Instruments is a much broader supplier, has a bigger
(04:31):
customer list and a bigger set of products, So that
will give us a sense of whether this is a
general automotive malaise, whether this is China related, whether this
is Europe related, and we'll have a much clearer picture
later today.
Speaker 3 (04:43):
I am going to dig into this a bit later
in the program, but the Philadelphia Semiconductor Industry Index, sorry,
is underperforming generally in NVIDEO and am D A big
drags on that. The read through between NXP and those
two is difficult for me to see. But generally speaking,
away from those kind of ultra specialized and even analog chips,
(05:04):
things are quite robust still.
Speaker 7 (05:06):
Yeah, I mean we've seen I mean you talk about
the index, the index has done pretty well this year.
There's a lot of money has been put to work.
Everything we've heard so far and we'll hear more on
on that vein as the inning season unfolds, is there's
a lot of spending still going on on these large
AI infrastructure systems, and we've heard nothing that's telling us
that that's not going to continue. And that's really what's
(05:28):
going to be the most important thing, and that's what's
driven the socks so far. Analog has been a slightly
different story, but again analog benefits from the server build
out as well. You need these power related chips, you
need these micro controllers as well.
Speaker 4 (05:40):
In king always with all the context, so appreciate it.
Thank you. Let's dive deeper into the tech earnings, the
vibe in the market right now, Anna Rathens with us
founder and CEO of Grenna Dilla Advisory. Anna, your take
here is that, yes, we're perhaps pulling back on the
day somewhat nxp not resounding vealing of optimism, but we're
(06:02):
still near all time highs and we've still got a
four trillion dollar in video in our hands.
Speaker 5 (06:07):
Yeah, good morning.
Speaker 8 (06:08):
Markets are definitely the valuations are high. There's no slicing
that in a different way. But I guess you know,
you have to look at tech differently than we used to.
So a lot of allocators and wealth advisors out there,
we've been taught to look at tech as a growth sector.
Perhaps it's more than that. So the AI component is
definitely tech, but maybe there's also a quality factor there
(06:32):
as well. Got healthy balance sheets, great cash flow, especially
those mega companies, megacap companies. It's also got a defensive
sector of characteristic as well. We learned that we cannot
operate this economy and our society without tech infrastructure as
well as software. So I think that when we're looking
at tech, we have to look at it from multiple
(06:55):
angles in order to perhaps try to explain some of
this valuation. It's not just about AI froup. It's much
more than that.
Speaker 4 (07:02):
But what's been interesting is the AI winners have powered
forward on the twenty twenty five, and those winners have
been deemed well the metas of this, Wells in videos
of this, Wells Apple left for dust. In some ways,
Alphabet has been a lagged too. How do we set
up into Wednesday when we start to get a couple
of those MACS seven names.
Speaker 8 (07:22):
Yeah, I think there's definitely a vifurcation in those MAC
seven names. And right now it looks like the people
who have really invested and gone forward with AIS are
definitely winning. Now Alphabet, for example, will have different challenges,
right Not only do they have some legal challenges, but
you know, I don't know about you, but when I
talk to my friends, they stopped using Google as a
(07:43):
search engine. They're using chat, GPT. And I know that's
just a few people around me and perhaps you, but
those things can actually catch up. And I know Chetman
and I is improving, but I think that's a real
competitor there, and so AI is going to be more
important going for work for some of these Max seven names,
and I wouldn't expect disappointing report from them, but certainly
(08:07):
I think investors can read between the lines.
Speaker 3 (08:10):
And I what's curious about this week is that on Wednesday,
Alphabet and Tesla posts their earnings results right somewhat analogous companies,
some differences, and on the same day we'll hear from
the President about his vision for AI and American AI.
It's going to be a wild ride for investors this week,
(08:32):
isn't it.
Speaker 8 (08:33):
Well. You know, anytime anyone from the government talks about
technology and AI and even bitcoin or blockchain, I get
a little nervous because I think we have to tread
very carefully here. We don't want to get in the
way of innovation, and yet we want to protect consumers, right,
So it's going to be a very It's going to
(08:53):
be a balancing act for anybody who from the government,
from the White House talking about AI and how America
is going to be involved in the development of AI.
I would go in with a little bit of a
cautious view, and frankly, I'm expecting a lot of lofty statements,
but the question always is how does this actually translate
(09:14):
down to the day to day and actual software and
make difference in our productivity.
Speaker 2 (09:21):
Let's bring it back to today's news.
Speaker 3 (09:23):
What did you learn about the near term and quantifileble
impact of tariffs? You names like General Motors and NXP
show us that actually something's happening here.
Speaker 8 (09:35):
Yeah, I mean something is happening there. We're talking about
actual money, right. I mean, so for last week, if
you think about the CPI and consumer sentiment, you didn't
really see it, right, but you are seeing it in earnings.
This is actual cash flow impacts. So I think this
is going to trickle in as the quarter goes and
give us a better view of exactly what areas of
(09:57):
the economy are being impacted by tariffs. Who is is
actually assuming some of those costs because GM actually came
out and said we don't want to pass down all
the costs to the consumers. So it'll be interesting to
see how those things get I guess diversified into the
supply chain and how GM and other companies actually manage
those challenges.
Speaker 4 (10:16):
And going back to taras tarvis is all about the
geopolitics that is currently involved in technology investing. I think
of the geopolitics between US and China. I think of
the latest news out of Microsoft blaming China for a hack.
How much do you factor that into your current investment thesis?
How much can you price that sort of geopolitics in?
Speaker 8 (10:35):
Yeah, I mean I never thought that this trade talk
with China is going to be simple or smooth, right,
and this is yet another twist in the plot. I
would hold that August first deadline date really loosely in
your hands, because you know, it was April first, and
then or July ninth, and then now it's August first.
(10:56):
I think that the Trump administration as well as China,
I mean, they have a lot at stake here, so
I don't think the deadline really matters. I think we're
going to be negotiating until we actually get to a
good place for both countries, and August first might coming.
Speaker 3 (11:12):
Go Anna Rathban, founder and CEO of Grenadilla Advisory, thank
you very much for coming up. Oracle and open Ai
is set to expand their partnership, opening up more data
centers to satiate AI demand.
Speaker 2 (11:26):
We had the details next. This is Bloomberg Tech.
Speaker 4 (11:41):
Oracle along with open Ai have announced that they're set
to develop four and a half gigawatts of additional US
data center capacity. Let's bringing Bloomberg's Brodie Ford now on
how the evolution of stargate is going.
Speaker 5 (11:55):
And who's involved and who isn't, because we'll get.
Speaker 4 (11:57):
To sort of bank in a moment the fact they
don't seem to be on the page, but this is
this component to what have ten giga?
Speaker 5 (12:03):
What's by four years time?
Speaker 4 (12:05):
They really seem to be building it out now, right, and.
Speaker 2 (12:07):
We can for get a giggle lot.
Speaker 9 (12:08):
I mean we're throwing these numbers around now, but you know,
a couple of years ago you would never hear about
a giggle wat data center, and now we're talking about
four and a half. I mean each one of those
about equivalent to a nuclear reactor. And so a four
and a half gigawatt data center deal that's across the country.
This is an unprecedented cloud deal. I mean, this is
likely the largest single cloud deal ever signed. And so right,
(12:28):
if your oracle, if you've been trying to tell people
for many years, you're going to be a real cloud
infrastructure player.
Speaker 2 (12:34):
This is a pretty.
Speaker 9 (12:35):
Resounding sign of confidence from the most important AI company
at the moment, Berdie.
Speaker 3 (12:41):
The way we look at this is it it's confirmation
of our prior reporting on the projects. But also, as
Cara alluded to, some clarity on the bits that SoftBank
is and is not financing absolutely.
Speaker 9 (12:55):
So it's very interesting because in January we saw you know,
Larry Ellison, Sam Altman, and soft Bank sitting at the
White House. Today, SoftBank doesn't appear to be too involved.
They're not saying we're out for good. But this four
and a half gigle walks, which likely gets those to
around thirty billion a year, soft Bank is not involved
in financing. Where does the rest of that money come from?
(13:17):
That's going to be a big question in the following months,
right because open Ai makes a lot of money, they're
not making that much money to be able to just
spend all this themselves.
Speaker 4 (13:26):
We're going to dig into more news miracle in a minute,
but I just want to understand where we think these
data centers are going to be. Do we have much
detail on the timescale here as well?
Speaker 9 (13:36):
Every time I ask a source where the next data
center is going to be, they tell me a different state.
They're evaluating a lot of different states, a lot of
different sites. If you've read an article that says, hey,
they want to develop a multi giggle data center here,
odds are that starting. It has evaluated this site, so
I'm keeping my eyes out.
Speaker 3 (13:55):
Slightly smaller scale, but Oracle's also in talks around one
hundred million dollar a year paramoun Skydanceteel, What do we
need to know about that one?
Speaker 9 (14:02):
What you need to know is if your dad is
Larry Ellis said, and he helps you buy something, you're
going to have to kind of help buy some stuff
from him as well, right, I mean Larry Ellison's son,
David Ellison has been in the works to buy Paramount
for a while and they're already having negotiations that assuming
that deal goes through, Paramount will be a major OCI customer.
(14:23):
They're going to put all of their CBS, NTV, it's
a lot of assets, a lot of gigabytes, and they're
going to be on Oracle servers doing best.
Speaker 3 (14:30):
Brady Ford, thank you really on top of this story.
Thank you very much. Okay, we have another story. Some
updates in the four billion dollar fraud case against the
estate of deceased Autonomy founder Mike Lynch. A London judge
ruled that HPE lost close to one billion dollars after
buying Autonomy. Lynch's estate will face a claim for much
of that sum after he lost a London fraud case
(14:53):
along with the former CFO of Autonomy. The ruling suggests
HPE will likely recain just a fraction of its total claim.
The ruling comes less than a year after Lynch drowned
when his yacht sank in a storm off the coast
of Sicily. Poseidon has announced its raised fifteen million dollars
(15:17):
in a seed round led by a sixteen Z crypto,
as the company looks to tackle bottlenecks in AI training data,
including IP safe resources. This particularly aimed at training data
for robotics, multimodal models, and physical AI. Here with more
is s y Le Poseidon President and CEO story The
incubator behind Poseidon state of players really clear, right. AI
(15:40):
models have become commoditized, compute costs have come down. But
the bottleneck, as you see it and many others see it,
is the data.
Speaker 10 (15:48):
You have a solution, yes, as you just wanted to
put that into context again because now you know the
previous generation of models. We're scraping the internets data, which
is you know, you know you can scrape it all.
But now AI is going to the physical world. It's
the multimodel models, right, it's a robotics model, it's a
(16:08):
video model, audio model, and this really real bottleleg is
the data, as you said, because you know, you can't
ask rate it illegally on the Internet, and a lot
of times this data is very private. You know, there's
a lot of IP safety concerns. And in that world,
how do you coordinate the collection, labeling, curating of the data.
(16:30):
And we're using actually crypto incentives to actually coordinate that
massively label coordinator.
Speaker 3 (16:37):
So my next question was why is Andreson's crypto team
backing you and not an AI specialist.
Speaker 2 (16:45):
Partner or a different firm.
Speaker 10 (16:47):
First of all, micro founder is a you know, robotics
at UT Austin, and he's he's a big AI specialist
who's been kind of working on this data licensing and
data collection for the last ten years and even he
thought about how do how do you incentivize data collection
with data dividends? So you know, he he he's an
AI expert in in this in this problem. But the
(17:08):
reason why we are kind of they we think this
is so so timely, is you know forty days ago
actually meta semi a quiet actually as as you know, uh,
scaling on as a data left a very huge vacuum
in the space to actually for competitors and new players
to come in. And if you look at scaleing on
D I mean, I'm not trying to criticize, but they
(17:29):
have to you know, make a lot of shell companies,
work with shell companies and developing countries to actually coordinate
this kind of digital sweatshop to make that happen. But
the beauty of crypto is that it's still really good
at coordinating incentives in a at a global scale and
pay them instantaneously with stable coins or.
Speaker 5 (17:46):
Other type of cryptotokens.
Speaker 10 (17:47):
Right, And that is a very very huge advantage number one, right,
And number two, not only that, what crypto and blockchain
does is it is good at you know, putting this
data and IP on an immedable ledger and track and
attribute it and license it with small contracts. And that's
those two are very very important advantage of crypto. Even
(18:08):
where my co founder, Ai Specialist wants to actually use thistagnomogy.
Speaker 4 (18:12):
S ry, let's just go to the basics of the
data that is needed. Here, I can see the crypto
read across. I think of Vaccineinfinity, the game that when
bananas in the Philippines years ago, how people wanted to
play because they earned money in tokens via playing this
crypto native game. You're going to use people, incentivize people
to sort of video themselves in the real world, then
(18:34):
ultimately helps Tesla build optimists in the real world.
Speaker 10 (18:38):
Yes, actually you hit on the right comparable. Ex Infinity
was an example of coordinating this massive number of people
in the Philippines and other types of developing country, other
other developing countries to actually play games to ourn' tokens
right in.
Speaker 5 (18:53):
The same way.
Speaker 10 (18:54):
Now, you know, when Tessa wants to train as human
aid robot, they you know, even if you script the
entire Internet's data, you can't actually have a testa robot
holding a coffee cup, right because you know, you need
a million angles of data to ecocentric video footage and
a million different types of settings and that kind of data.
(19:15):
Instead of actually hiring a shell company and they're having
their share company hired, you know, tens of thousands of people.
You can coordinate this at a mass skill and an
instantaneously with a with crypto incentive. That's what we're doing.
Speaker 4 (19:28):
And let's talk about the end demand here. How many companies?
Who is your ultimate provider? How do you then sell
this aip this ip safe AI training data.
Speaker 10 (19:41):
Yeah, the reason why it's IP safe is that everyone
who are actually contributing data, anyone can contribute this data
anywhere around the world, right, and then actually set their
licensing usage terms on the blockchain. And we are at
the moment we're not completely centralized, and we are now
going to launch a decentralize a deep in app in
the center physical infrastructure app and fall that actually collects data,
(20:04):
you know, puts this on the blockchain with the licensing
terms in place. But at the moment, we're now actually
acting as an agent to actually secure these contracts, and
we already have a you know, we've already signed a
contract and we cannot discuss.
Speaker 2 (20:19):
It at the moment, right, you know.
Speaker 10 (20:20):
And then I mean in the robotics relevant.
Speaker 3 (20:23):
Well, quickly, if scale AI, the scenario left a vacuum
and you look to occupy that vacuum, how many phone
calls have you had from the other frontier model makers
that you could fit into their organization in the same
way just thirty seconds.
Speaker 10 (20:37):
You know, actually many many organizations, And I was really
surprised as C Stage company, they were willing to work
with us because a lot of them were telling us
that they were dropping contracts from SCALEI.
Speaker 3 (20:49):
But I meant in terms of you being acquired or
you joining a bigger group.
Speaker 5 (20:54):
We don't have any plan.
Speaker 10 (20:55):
We don't have any plan. And we think the advantage
of this open system is that we can work with
any AI.
Speaker 5 (21:00):
Farmers, s y Lee, a Poseidon and Story. Great to
have you on today.
Speaker 4 (21:05):
Now, let's just turn back a minute for what's going
viral because Tesma's futuristic diner in la is complete with
a drive in charging experience. Now, the sleek retro Vibe
diner is also replete with two sixty six foot megascreens
and a rooftop skypad and a prototype of Optimist.
Speaker 5 (21:22):
The robot is serving popcorn.
Speaker 4 (21:24):
Apparently that was at the pre launch event for the
Hollywood venue. Tesa claims it's the largest urban supercharger in
the world.
Speaker 5 (21:37):
Let's just talk.
Speaker 4 (21:37):
About another key player that's got earnings later this week. Alphabet, Well, Google,
we understand is seeking to recruit news organizations for a
new licensing project related to AI.
Speaker 5 (21:47):
It's all, according to sources, which could be a big
win for the struggling media companies.
Speaker 4 (21:52):
Bloomberg's Hannah Miller joins us, now, is this some sort
of Google capitulation here, because we've seen some deals done
by other AI players, but Google's always set on the side.
Speaker 11 (22:00):
I think Google is playing catch up here. You know,
we've seen big companies like open ai and Microsoft strike
these massive licensing deals with news organizations, and Google, yeah,
they've been sitting on the sidelines.
Speaker 5 (22:13):
They haven't been doing that as much.
Speaker 11 (22:14):
So this could be them, you know, testing the waters,
you know, trying to build better relationships with media companies
as the AI race heats up.
Speaker 2 (22:23):
Kind of.
Speaker 3 (22:23):
One of our sources said that in one case, Google
launched this kind of pilot with twenty different news orgs.
You cover TMT right from the news perspective, So it's
like a cash cow, a great gold mine just to
sell data and bring in some money through a new mechanism.
Speaker 5 (22:40):
A lot of people in.
Speaker 11 (22:41):
The industry are saying this is a temporary band aid,
you know, yes, we can get some money from these
big companies at the start, but looking long term, of
many journalists feel like AI is a threat to their business.
You have people in the arts, you have people at
major media companies concerned about the effect AI will have
on their jobs.
Speaker 3 (23:02):
Bloombog's Hannah Miller out in New York, thank you very much. Now,
Netflix and Disney are both taking steps into the somewhat
controversial world of AI video creation with software from Runway
AI Blueboks. Rachel Mets brings us the story. Interesting one
about this is that in the earnings context, this has
already come up, particularly for Netflix right in recent weeks.
(23:24):
But what's the controversy and what is the actual tool here? Like,
what is it that a Netflix would need AI to do?
Speaker 12 (23:33):
So as you as you mentioned, Netflix said on their
earnings call just last week that they're using AI, and
they also mentioned a production that they'd used it in.
So companies like Netflix, what they could do with this
software in theory is they could maybe lower some of
the costs for special effects, so they'd use a model
like Runway. Runways top line model is JEN four. They
(23:56):
also have some models that aim to reproduce motion capture
software and without using all the fancy and clunky hardware
that comes with it. So the idea would be to
save costs here and to do some shots that perhaps
it would have been impossible previously without using AI software.
Speaker 4 (24:16):
I think we learned from Ted surroundos over Netflix that
it was previously using to sort of simulate a building collapse,
and I think it was an Argentinian particular visual effects company,
but it wasn't Runway usually we understand according to people
familiar who are Runway, have they worked with and what
have they been able to produce thus far? Because they're
(24:37):
actually out competing Hollywood or West Coast based visual effects companies.
Speaker 12 (24:44):
Yeah, so Runway works with a number of different companies.
We also know that Disney has been testing out those software.
They also Runway has a deal with Lionsgate. They're working
in a field that's increasingly crowded and there are so
much larger players. Open Ai has its own video software.
(25:04):
Google does as well, And what I would expect to
see is companies like Netflix. Probably they said they did
not create that scene with Runway, Well that implies there's
at least one other company that they're working with the
software from, right, so I would expect to see that
actually As these companies dip their toes into the water
of AI video software more and more, you'll probably see
them try out a bunch of different ones, and maybe
(25:25):
they will end up using a bunch of different tools
for different things. I think it really just depends on
what they find most useful and what their production teams do.
Is it live action, is an animation, and what tools
work the best for those sorts of things.
Speaker 2 (25:38):
Let's try and get the big picture vision.
Speaker 3 (25:40):
This is what Ted Sarandos actually said on Netflix's earning score.
Speaker 13 (25:44):
We remain convinced that AI represents an incredible opportunity to
help creators make films and series better, not just cheaper.
There are AI powered creator tools, so this is real
people doing real work with better tools. Our creators are
already seeing the benefits and production through pre visualization and
shot planning work and certainly visual effects.
Speaker 2 (26:08):
So Rachel, that's how Netflix sees it.
Speaker 3 (26:11):
If you are a Runway or another AI company that's
working on text to video tools, right is the movie
industry or television. What they're working toward is that who
they want to serve.
Speaker 12 (26:24):
Absolutely, I mean they want to work with professionals who
are working in these fields, and they want to work
with the studios. I think what's also important to keep
in mind is this technology is really controversial because there
are a lot of people people that perhaps would or
would not be wanting to use this software, that are
(26:46):
concerned that this is going to cut into their livelihos,
and I think that's a really real concern. So that's
part of why the studios are being I think they're
a little bit hesitant to be public right now about
how and if they're using this software because the stakes
are really high.
Speaker 2 (27:02):
Bloomberg's Rachel Metz, thank you very much, Cara, what you.
Speaker 4 (27:05):
Got as time now for Talking Tech and first stop
ed in video. The chip challenger Furiosa AI has finalized
a deal with LGAI Research. Now the South Korean chip
designer one final approval for its AI chip Renegade after
seven months of evaluations. Now in March, remember, the company
rejected an eight hundred million dollar takeover from Meta, choosing
(27:26):
instead to grow the business as.
Speaker 5 (27:28):
An independent company.
Speaker 4 (27:29):
Plast black Rock has told staff not to bring company
devices to China, including iPhones and iPads. That's all according
to a memo seen by bluembg News, and then move underscools,
growing concern among some global firms about employees working there
and data security and glade Brook Capital Partners has raised
five hundred and fifty million dollars for investors for its
full fund. The firm has Stakes and SpaceX Perplexity Stripe,
(27:50):
among other startups, and it prows to continue backing fintech, AI,
E commerce, space and defense companies.
Speaker 3 (27:56):
Ed okay, coming up, tech and energy leaders head to
Washington to discuss how the US can win in the
AI race. Or take a look at where global AI
competition stands now, Caroline, you pointed this one out earlier today.
Speaker 2 (28:11):
It's a name what I've not looked at in a while.
Open Door.
Speaker 3 (28:13):
Okay, the stock's down one point six percent in the
hearing now, but look at some of the swings in
the session. Bloomberg writing about some of the activity, some
of the halts. Open Door is the latest memes stock.
This says it on the Bloomberg terminal. No, seriously, go
check it out.
Speaker 2 (28:28):
We'll be right back. This is Bloomberg Tech.
Speaker 4 (28:39):
President Trump in a bilateral meeting with President of the
Republic of the Philippines. I want to go straight out
to Mike Shepard there was a lot discussed there DOJ
investigations being queried, and some referring to potential as Trump
continues to see it of an election rigging, as he said,
but we've also had so much more when it comes
(29:00):
to the trade, when we think about China, when we
think about magnets, as it says, flowing out succinctly from
the country. Can you just wrap up what we were
hearing from there?
Speaker 14 (29:10):
Well, First, the very first question the President took, of course,
was on the FED, something very close interest to our audience,
and the President stopped short of calling for Jerome Powell
to resign as FED chair. He did keep up his
criticism of Powell's handling of interest rate policy, saying that
he's been too late and too slow to lower interest rates.
And this is a theme he has returned to again
(29:32):
and again in these moments when visiting foreign leaders join
him in the Oval Office. Just last week we saw
him hit these notes with the visiting Crown Prince at Bahrain.
We heard it again today with the President of the Philippines,
Ferdinand Marcos. We also heard the President talk about China,
which of course is a crucial topic between the US
(29:53):
and the Philippines. China's one of China's closest neighbors. The
Philippines has to balance this relatelationship, and we heard Marcos
and Trump both talk about this, and Trump also indicated
he had accepted taken an invitation from President's Shushin Ping
of China and was looking at possibly accepting it and
would make a decision on that in the near future.
Speaker 3 (30:13):
Carol Okay, Bloombergs, Mike Shephard, thank you very much. We
also expect to hear from the President later this week
in a speech on AI. Let's get from DC to
the global perspective of how the AI race is unfolding.
Nicolaus Lang is with us for that, managing director, senior
partner Boston Consulting Group and the global leader of BCG's
think tank, the BCG Henderson Institute. We've covered a lot
(30:35):
in this program, how codified Europe's framework is around AI.
We're waiting on America to follow suit in many respects.
The President will outline a vision on Wednesday. How would
you summarize the differences of approach between those two jurisdictions.
Speaker 15 (30:54):
Yeah, well, thank you for having me, and I think
when we look at the global geopolitic SOFII. What we
have seen here in our research is that we see
two superpowers, Yeah, on one side, the US. On the
other side, China, I think, leading in talent, compute, power,
foundation models. And then you have Europe and the Middle East,
(31:14):
which are these middle powers challenging the superpowers. And I
think that's where we will see the dynamic unfold in
the years to come. You just mentioned the approach to regulation.
I think this is different. I think in the US,
it's different in Europe, it's different in China. And the
realities that we need to adapt to these three constituencies
(31:36):
and these three approaches to regulation.
Speaker 4 (31:39):
Very briefly, Niklaus, the companies you advise, where are they
trying to navigate? They're looking at expanding data centers within
the Middle East, within the US. Where are people tending
to default right now for their expertise?
Speaker 15 (31:51):
Yeah, Well, I think what we see in AI is
a fragmented world as we see it also in other
parts of geopolitics, and I think companies realize that they
need to be present in the different regions, both with
data centers, with AI talent, and also with capital and investment.
And I think that what makes this jubiled pigs of
AI space so interesting because I think we have a
huge dynamic, a regional dynamic which is very different from
(32:13):
what we see in other areas.
Speaker 4 (32:15):
We're going to be hearing much more about that regional
dynamic and an event later this week, of course, over
in DC Nicolaus Lang fascinating from the Boston Consulting Group.
We wish we had had more time. Meanwhile, though, that
does it for this edition of Bloomberg Tech Ed.
Speaker 3 (32:28):
Yeah, don't forget check out the podcast where we can
retap all of today's Bloomberg stories and a lot more
that was going on.
Speaker 2 (32:34):
You know where to find it.
Speaker 3 (32:35):
It's on all the Bloomberg platforms, the Bloomberg terminal and
online on Apple, Spotify, and iHeart this is Bloomberg Tech
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