August 5, 2025 • 44 mins
Bloomberg’s Caroline Hyde and Ed Ludlow discuss President Trump’s comments that more chip tariffs may be coming soon. Plus, booming demand for artificial intelligence led Palantir’s revenue to climb above $1 billion. And AMD is under pressure to show benefits from the AI race as the chipmaker prepares to release earnings after markets close.
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Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and Vla Lolow in San Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up.
Speaker 3 (00:25):
President Trump says more chip tariffs are coming soon. This
is the administration explores equipping chips with location tracking tech.
Speaker 2 (00:33):
Will have the latest from Washington.
Speaker 4 (00:34):
Plus, Booming AI demand is sending Palenties second quarter revenue
soaring above a billion dollars, Chez hit a new record.
Speaker 3 (00:42):
And AMD also out of earnings after market close today
with the company under pressure to show benefits from the
AI race, and.
Speaker 4 (00:50):
We take a check on the markets amid what is
yet more earnings to come from AMD and a digestion
of weaker services data that seems to be putting up
pressure in a macro picture is underwhelming. We're off by
five ten percent on nasback one hundred, but ed get
to the nitty gritty, what's moving in terms of points here?
Speaker 3 (01:07):
Yeah, the earning story is palent here and we're up
eight percentage points forty eight percent growth on the top line,
which the company attributes to astonishing AI contribution. We're going
to get deeper into that in the program. Another top
story that we're tracking is what's happening with AI chips
in particular. So we're going to talk about how tariffs
are coming, specifically for semiconductors. But then there's the reporting
(01:30):
overnight that the US is thinking about putting location trackers
on AI chips that are exported to certain countries. In fact,
overnight we caught out with a key White House official
who talks about it.
Speaker 2 (01:41):
Listen to this.
Speaker 5 (01:42):
There is discussion around very important research and development that
needs to be done on potentially the types of software
or even physical changes you could make to the chips
themselves to do better location tracking. And that's something that
we're exploring and we explicitly included in the plant.
Speaker 4 (01:59):
We can get to order this with Boomberg's Mike Shepherd,
who's joining us.
Speaker 6 (02:02):
Now from Washington.
Speaker 4 (02:04):
Look, I want to go into the broader picture first
and foremost, we are anticipating semiconductors to be in the
eye in the storm when it comes to localized tariffs.
How much is that impacting the future of companies wanting
to import.
Speaker 7 (02:17):
Well, that's a great question, Carol, because the administration, while
it has spared chips imports from the country by country tariffs.
We are now expecting Donald Trump to sign an order
in the next week or so putting tariffs on semiconductors
as a category, no matter the point of origin, and
the countries will have to negotiate individual levels perhaps after that.
(02:41):
But they have made clear that just like with pharmaceuticals
and autos and copper and so many other categories of goods,
they want to see more of them produced here in
the US, and they see tariffs as a great means
of doing so. Now, what this means is that industries
such as automakers, even the chip plants themselves, will face
(03:02):
higher costs. And then when you look at the hyperscalers,
Open AI and the companies that we've seen report their
earnings this week and announced even further intentions of expanding
their investment in artificial intelligence, they run the risk CARAF
facing higher costs on those two from chips. Chips are
one of the biggest inputs that these hyperscalers face in
(03:23):
terms of cost, and adding to that, adding up to
a twenty five percent tariff would be tricky. Now we've
been anticipating this since April, when the Commerce Department opened
its investigation into whether tariffs were called for. It's under
a so called two thirty two process. It would be
on sounder legal ground than the reciprocal country by country tariffs.
(03:45):
We will have to see what the timing looks like
and whether or not they carve out any exemptions as well,
including for semiconductor manufacturing equipment, which is key to expanding
here in the US as well.
Speaker 3 (03:58):
Mike location track, we have the United States willing to
export technology, the American tech stack around the world, but
it wants to track where the chips are going. Can
you explain that one to us?
Speaker 7 (04:11):
Yes, Ed, And it really is central to the administration's
plan to try to expand the American tech stack, especially
advanced AI chips. They want to be able to sell
those more broadly and more widely, including even into the
Chinese market. We saw the promise to loosen restrictions on
those aged twenty chips.
Speaker 2 (04:31):
But it's more than just China.
Speaker 7 (04:33):
It's being able to sell those semiconductors across the Middle East.
Speaker 2 (04:38):
We saw all the deals that.
Speaker 7 (04:40):
Were reached with the United Arab Emirates and in Saudi Arabia,
But to be able to sell in those markets. The
US wants to also have the capability of tracking those
chips to ensure that they are not somehow diverted or
smuggled or resold or somehow end up in the wrong hands.
And that would include not only China, but Russia, in Iran,
(05:00):
every series that the US does not want to see
gain capability when it comes to artificial intelligence, which of course,
as we know, has a dual use capability.
Speaker 4 (05:10):
Mike Sheffin always on the nose. We thank you from Washington. Meanwhile,
Taiwanese prosecutors, well, they've arrested six people suspected of stealing
trade secrets from TSMC. Now, the chipmaker reported former and
current staff to authorities on suspicion they illegally obtained core technology.
Speaker 6 (05:25):
The prosecutors searching the homes of some staff.
Speaker 4 (05:28):
Now authorities are now trying to find out if data
had been leaked to other parties.
Speaker 3 (05:33):
Z okay Onto Earnings Palenteer reported a forty eight percent
increase in revenue for the second quarter to more than
a billion dollars. The company cited the quote astonishing impact
of AI on its business. Bloomberg Intelligence senior analyst Mandy
Singh joins US. Now, this is the story that everyone's
talking about this morning, Palenteer's continued momentum. At BI, you
(05:57):
went a little bit deeper on how that's playing out,
But did you just summarize where they were strong and
what's happening with Palenteer right now?
Speaker 1 (06:04):
Yeah.
Speaker 8 (06:04):
I mean when you look at the US commercial segment,
that is what everyone is excited about. It grew ninety
three percent for the full year. Their guide is eighty
five percent, and look for a small segment with over
a one point two billion dollar run rate, it's very
impressive growth. But I think the metric that we still
(06:25):
don't understand is how much is the AI contribution to
their top line growth. I mean, when you look at
a Microsoft Azure number, you know the AI contribution to
growth this seventeen percent when they grew thirty nine percent.
In the case of Palenteer, yes they grew forty eight percent,
but we don't know how much of that is driven
by AI because their business model is dependent on contract wins.
(06:49):
And yes, they gave us a number around the backlock
growth and the remaining deal value on the commercial side,
but we just don't know enough to quantify that AI contribute.
And for a company that's trading at such a rich
valuation multiple, you want to have a better sense of,
you know, what that flow through of AAR revenue is.
Speaker 4 (07:09):
Okay, So perhaps more transparency on a breakdown of numbers, Mandy,
what about who they're taking market share from, who's losing
out as we see Palenteer make these wins.
Speaker 8 (07:19):
Yeah, their core business is data ware housing, So you
have the legacy vendors like terror Data and Oracle, and
you also have cloud companies like Snowflake and Data Breaks.
And we know Data Breaks is also doing very well
in terms of growth rates. So now that Palenteer is
expanding on the commercial side, it'll be interesting to see
if they can sustain this kind of growth rates, because
(07:42):
you're right, it will come at the expense of someone
on the commercial side. Clearly, the hyperscalers are looking to
get a piece of that pie as well. Because Microsoft,
the way it's positioning Copilot, it's trying to solve some
of the use cases that Valenteer is looking to solve
by applying LLLM. So to my mind, the commercial side growth,
(08:03):
the sustainability of growth is going to determine whether it
can sustain this valuation, and so far I find the
net new arr metric from the Hyperscalers far exceeds what
Talenteer has had a given. Talenteers is a much smaller company.
Speaker 4 (08:18):
Great context, Blue meg Intelligence, Senior analyst, man Leeve Seeing,
thank you so much. Let's dive into all of this,
particularly into the valuation front. Stephanie Aliaga is with US,
joining us from Global Market Strategy JP morgas Asset Management
market Insights team.
Speaker 6 (08:31):
Stephanie, we look at.
Speaker 4 (08:32):
Something like Palenteer five hundred percent in twelve months, the
most expensive stock on the s and P five hundred
When you're looking at where it prices versus future sales,
does it seem vindicated to you these sorts of valuations.
Speaker 9 (08:46):
There's absolutely some AI enthusiasm at play here, and I
think there's some and I think in this earning season
we have heard from a variety of companies, not just
these megacap tech companies, that they're seeing early signs of
success US with AI. AI is helping them run more efficiently.
It's writing more and more of their code, something like
fifty percent of code, and it's also helping them hit
(09:08):
more shots on target, particularly in marketing. But beyond that,
I think when it comes to valuations, you need to
on one end, look at the stability in the core
business operations of some of these companies, these megacap tech
companies which remain highly profitable, and then also some of
the upside moving forward in the AI race. And when
(09:31):
it comes to the leading megacap tech companies, at least,
we actually think valuations aren't as overstretched because core earnings
are so robust and they are actively reinvesting a lot
of those profits that cash flow into the next paradigm shift,
and we're already seeing some early signs of success these
Faces and Shovels companies.
Speaker 6 (09:52):
They're also digging for goals and seeing the fruits of that.
Speaker 3 (09:55):
Stephanie, when you were lost with us in April, it
was just after the sort of deep seat chaos and
we discussed how the semiconductor industry in particular was in
the crosshairs of the administration. A lot has changed since then.
Actually the administration has been very supported at exporting American technology.
But just on the stories we touched on tariffs on
(10:15):
semiconductors and location tracking on chips, there's a risk premium.
Speaker 9 (10:19):
There is there absolutely geopolitics remains a risk. Policy has
been a headwind for the sector in recent months and
particularly today, but we are seeing a shift from this
administration towards a greater appreciation around what safeguarding US dominance in.
Speaker 6 (10:38):
AI really looks like.
Speaker 9 (10:39):
Right, And I will add, outside of these risks around tariffs,
what is really promising and quite structural, is that you
have seen a decline in over ninety percent around the
cost of inference for AI, and that has to do
with four factors. Hard hardware, the chips themselves have been
getting significantly more efficient. Algorithms are getting more efficient, how
(11:03):
much data, how many numbers they need a crunch, we're
right sizing models. We now have mini models that we
can access, and we've seen this democratization in models, particularly
open source. So all of that has led to this
pretty remarkable decline in the costs of AI, and I
think we need to put that to one side when
thinking about these risks for tariffs.
Speaker 3 (11:24):
We shall borrow the acronym going forward. What I've wanted
to ask you for a real long time, is there
an America ink trade going on here where you just say,
I bet on these companies that are most likely to
succeed if this American strategy pays off.
Speaker 9 (11:41):
I think it's a really interesting point, particularly in the
context of this debate around US exceptionalism, because when I
look at the markets right now, I don't see so
much US exceptionalism, but exceptionalism from a few US companies,
and that is really what is driving the markets right now.
We're actually less concerned about valuations for let's say, the
(12:03):
Magnificent seven and.
Speaker 6 (12:05):
A bit more concerned about the other four.
Speaker 9 (12:06):
Ninety three because without that structural tailwind when it comes
to AI, it's a bit harder to see the cyclical
tailwinds for the rest of the market. But when it
comes to these leading tech companies, I think you do
have unprecedented fundamentals and the continued dominance, particularly in tech services.
(12:26):
Now there's plenty for investors to consider, and we still
think portfolios should be diversified, but at a time like this,
you maybe don't want to be diversifying away from that
epicenter of innovation.
Speaker 6 (12:38):
Okay, so interesting that you got the.
Speaker 4 (12:39):
Acronym hard tech is where everyone's looking at from a
spot up culture but also into these big Magnificent seven.
But then drip feed it down into where if you
are going to diversify the sector, is that are deploying
it right or indeed, is it more about the picks
and shovels a little bit more, it's about the energy,
It's about the infrastructure and that slide of the equation
that keeps you in the AI spin.
Speaker 9 (12:58):
Absolutely, the AI value is continuing to expand we think
that infrastructure layer is huge, and that is a secular
story that is still in its early innings. The amount
of energy that we're going to need, the investment that
we're going to need in a variety of different sources,
and also everything that goes into those data centers themselves,
the cooling equipment, the server technology, and so forth. So
(13:19):
we still think there's a significant investment case there. But
what's also really interesting in particularly what we're seeing in
private markets this year, is this explosion of AI applications,
the kind of applications that businesses are going to need
because it's not enough to give their worker SHATBT.
Speaker 6 (13:34):
They need domain.
Speaker 9 (13:35):
Specific AI applications that are actually productivity enhancing and show
up in the bottom line. We're seeing more and more
of those come to market this year, mostly in private markets,
but I think that's a trend that is worth watching
and just getting going.
Speaker 4 (13:48):
And then they move from private markets into public markets
and we see what happened with Figma and the bephoria
around that particular listing.
Speaker 6 (13:56):
Are you seeing more of.
Speaker 4 (13:57):
Your clients wanting to know about what IPOs to get
into or indeed how to make that move from private
markets into public markets.
Speaker 9 (14:04):
I think there's a lot of interest there, as there
should be. I mean, there's a lot of anticipation for
a pickup an Ibo activity, and I think the fundamentals
and the promise and a lot of those AI startups
could be the thing that really gets enthusiasm and comfort going.
Speaker 6 (14:16):
In the market again.
Speaker 9 (14:18):
But I also don't think that we're going to go
back to that kind of post pandemic period. A lot
of these companies have different goals beyond just being profitable
AI companies. Right, many of the LM providers that are
in private markets, they're on the race to AGI, and
so there is also this appreciation that these AI companies
can get a lot of the capital that they need
in private markets, maybe they will more control over their companies.
(14:40):
So if you want to access that opportunity set, don't
just wait for them to go public. I think you
might want to look at your private market exposure and
then also maybe some of those tactical opportunities that do
arise this year.
Speaker 3 (14:52):
Stephanie Aliago, JP Morgan. Great to have you back on
the show. Thank you very much. Now coming up, Joe Faff,
known for making early bets on comempanies like Alphabet and
Amazon while at tro Price, joins us discuss his new
role head of Growth for Eclipse, a VC firm.
Speaker 2 (15:07):
That's next. This is Bloomberg Tech.
Speaker 3 (15:21):
Investor Joepath's scale trow Price's US growth stock Fund from
fifty seven billion dollars to over one hundred and fifty
billion dollars in assets, and had twenty years at the
investment firm, making early bets on companies like Amazon, Alphabet,
and Meta.
Speaker 2 (15:35):
He's now joining a Clipse, a.
Speaker 3 (15:37):
VC firm focused on physical industries as the head of
growth and also as a partner.
Speaker 2 (15:42):
Joe's here with us in San Francisco.
Speaker 3 (15:45):
I've always known you to be somebody who is higher
up the cap table of big companies that then go public.
Rivian is the example that I know best, late growth
stage round and anchor investor in in what was huge
IPO in twenty twenty one. You've been lures to bench
capital in Silicon Valley.
Speaker 10 (16:05):
Why good to be with you, Ed, I appreciate it.
I'd say, you know, you've known me for a long
time now, and I've been a builder of companies over
time and investing capital, and those companies that they've scaled,
I think what really attracted me eclips and opportunities. I
really think we're at a seminal moment right now for
physical industries. So if you look at the companies that
(16:26):
have been created now, both private and public, and you
look at the market caps, there's been significant interest in
those and there's capital formation around them.
Speaker 6 (16:33):
The other parts of.
Speaker 10 (16:34):
This, I would say, you know, all this is coming
together at once. Is US policy, which you talked about
earlier in the segment, I think is very supportive of
bringing industries back.
Speaker 11 (16:42):
To the United States.
Speaker 10 (16:43):
And the other thing is clearly an inordinate amount of
innovation around artificial general intelligence and ultimately artificial superintelligence, which
I think provides this unique intersection of hardware and software
to transform physical industries.
Speaker 3 (16:57):
So the reindustrialization piece is something that comes up in
this program all the time. There's a sort of national priority,
national interest, even sort of national pride elements to it.
How are you going to play that in your strategy.
Speaker 10 (17:12):
I think it's important you talk about policy and ultimately
national security and economic sovereignty, and it's very important, I think,
you know, looking at the Eclipse team and why I
joined them specifically, they've been doing this for ten years
and had a vision a decade ago, and it's an
incredibly competent, amazing team. During my process, the time I
spent with Lere and the rest of the partners, they're passionate,
(17:35):
they're hungry.
Speaker 6 (17:36):
They're true builders.
Speaker 10 (17:37):
They roll up their sleeves, they get their hands dirty,
and they've done a lot of you know, early stage
enterprises and companies. Where I come in. I've allocated capital
at scale. I've looked at companies both private and public
that have grown, and I've worked alongside invested in many
of the best companies in the world. So to do
that as we scale these businesses and connect the two
(17:58):
together with that team, their technical experience, in my financial experience,
I think is really like a one plus one equals
three situation. They remind me I'll date myself here, ed,
but it's a team of Jerry Maguire's not.
Speaker 6 (18:10):
Dating at all. It's an iconic movie, Joe.
Speaker 4 (18:12):
I'm interested though, in just how you go from managing.
Speaker 6 (18:16):
Tens of billions to going.
Speaker 4 (18:18):
To managing and writing relatively small checks. What sort of
size checking you're going to be giving do you think
when you see these smaller scale companies that are going
to be huge?
Speaker 10 (18:26):
Yeah, well, I mean initially, right at the early stage
or venture side of this Caroline, you're going to see
smaller check sizes. But we're going to scal all those
over time, both for companies as they hit a scale
velocity and they need more capital to continue to build
out their strategies. And on top of that, there will
be companies, as we've seen, that need bigger check sizes
earlier and getting more traction. A good example that is investment.
(18:49):
I made it both Trow and we've made it Eclipses
Androl to give you an example.
Speaker 4 (18:54):
So, and Andrew, I immediately think of just the focus from
the government and indeed for many an investor right now,
just what was happening in point seventy two, for example,
on getting in on defense tech in particular. But I'm
interested in other particular areas where you think the US
is leaning in more that you want to be contributing
to thinking. When you think of red word, I'm thinking
about the supply chain more. But when you're thinking then
about Tesla is more about robotics. Where are your sweet
(19:16):
spot's going to be?
Speaker 6 (19:17):
Do you think?
Speaker 10 (19:18):
Yeah, I've heard a lot of experience in electric vehicles,
material science, battery technology, but that's also extended and I
think it ties in with what Eclipse has done well,
supply chain solutions, semiconductors. You mentioned defense tech, autonomy, So
there's a lot of crossing a paths given my experience
(19:39):
that I've had as a private and public investor, now
as I join.
Speaker 3 (19:42):
Eclipse, Joe, you visited Tesla in twenty eleven. You took
Rivian public basically, and then you help them after going public,
just very quickly, What were the lessons you took from
M two companies?
Speaker 10 (19:54):
Yeah, I mean, I think this is one of the
seminal moment for me on physical industries was in twenty
eleven when I visited Tesla. It was not just a
differentiated product ed but at the end of the day,
a different way of building right. The first principle ways
of thinking, and we see that permeating a lot of businesses.
And as we've had successful companies like Tesla, SpaceX, mentioned Anderill, Redwood,
(20:17):
there's people leaving those firms and they're starting new firms
as well. So the ecosystem is growing and they're taking
those lessons they learned with them, things that were really
important to me, and I think I can help businesses
with clearly, product market fit is very important. You know,
right product, right time, solving the right customer problem set
or providing them something that they don't have, that's very important.
(20:38):
I've always talked about, you know, additional acts beyond X one.
You look at Tesla, They've done that, SpaceX has done that,
Amazon's done that. So a handful of those and then
and then really what I've we've focused on growth for
many years is driving durable growth and making sure companies
are sustainable longer term. So I'll be working with most
of them to scale and ultimately get them to be
(20:59):
durable public companies.
Speaker 3 (21:00):
Joe Farf on his second act, the Klip's partner and
head of growth, thank you very much. Coming up, Aberdabi's
MGX gets ready to raise billions for its own AI ambitions.
Speaker 2 (21:10):
We have more in that story. Next, this is Bloomberg Tech.
Speaker 6 (21:19):
It's the time now for talking tech.
Speaker 4 (21:21):
First up Abadabi based MNGX is said to be considering
plans to raise billions of dollars as it ramps up
investments in AI. And that's according to sources the firm.
It plans to raise money through a fund structure and
can raise as much as twenty five billion. Now this
is his executives raising money from investors in Aberdabi, but
also beyond Plus and videos assembly partner on High and
actually saw sales growth slow in July, a signal that
(21:43):
tariff induced uncertainty is affecting electronics demand. Still, the company
hopes to ride that wave of continued AI spending from
its partners, even expanding its AI server assembly capacity in
the United States and shares of German ship maker in Finion,
where they're rising today after the company said that tariff
impact it's fourth quarter fiscal results will be less than anticipated.
Convenience CFOs Ben Schneider joined Blomberg TV Justselier today.
Speaker 11 (22:07):
I would say from today's perspective, the indirect tariff guestimate
for this fiscal quarter is probably less pronounced than we
thought last quarter. On the other hand, we are faced
with more and more negative currency headwinds from the weakening dollar,
which offsets to a certain extent.
Speaker 3 (22:28):
Coming up, eleven Labs bets on AI Music, launching a
new service called eleven Music. We speak with CEO Matthew Sanazuski.
Speaker 2 (22:36):
Next, this is Bloomberg Tech.
Speaker 6 (22:53):
Welcome back to Bloomberg Tech.
Speaker 4 (22:55):
In on those markets that just starling back from some
of the record highs have been out recently, we're seeing
then that one hundred and down sixt ten percent. There's
more of a creeping anxiety about the macro picture in
the United States that services data looking week, remember the
jobs data that President Trump took issue with the end
of last week also painted a less than rosy picture
about the economy. We take some money off the table
(23:15):
as we digest also earnings. We're expecting amd after the bell,
but let's look forward as also how we're seeing some
companies still at record highs. Palenteered doing the work today,
we're up almost seven percent, new record high after it's
already climbed five hundred percent in the last twelve months.
Speaker 6 (23:30):
This is their earnings managed to impress a billion dollars
in terms of revenue.
Speaker 4 (23:34):
We'll also see in Global Foundries, though not such a
pleasing picture that they actually beat in terms of their
fiscal quarter reported, but it's in anxiety around profitability looking
forward that midpoint of the range not met. When it
looks for their forecast, we're off by nine percent of
the contract ship make red.
Speaker 3 (23:50):
Okay, take a look at this chart showing the sales
slump Tesla's posting in key European markets.
Speaker 2 (23:57):
These numbers come as.
Speaker 3 (23:59):
Chinese rival Bed picks up sales team in the region.
I want to get out to Bloomberg Stefan Nikola to
talk about this because it's an ongoing story. It's a
trend that we've seen Tesla in some European markets dropping
off and China's BYD making ground.
Speaker 2 (24:15):
How would you sum the data we got most recently.
Speaker 12 (24:19):
Yeah, I mean Tesla has been suffering in Europe for
the past few months and suffering in the key electric
vehicle markets Germany, the UK, France. Those are all markets
that are rising in terms of electric vehicle demand. So
you know that that's really bad for for Tesla. Of course, BYD,
(24:40):
by contrary, is sort of making a big push into
all of these markets selling electric cars but also hybrids
and yeah, and just in general, it's it's a really
bad picture for Tesla. Of course, the company has a
factory up and running in Germany and it needs demand.
Speaker 4 (24:58):
Yeah, just try and weave the narrative for us, because
Tesla wanted the narrative to be. Look, we're moving to
a new production format, particularly with a model. Why that's
what's slowing down perhaps some of our end results, but
actually it seems to be political connotations. It seems to
be competition.
Speaker 6 (25:14):
Is the issue? Is that really what we're seeing here?
Speaker 12 (25:18):
Yeah, there are a lot of factors at play here.
The whole shifting to a new model and narratives is
way too simple to explain this drastic decline. Elon Musk's
political activities are certainly contributing to this sales slump, as
are better models from rivals, better prices from rivals, but also,
(25:40):
you know, just very shifting market dynamics in Europe, but
also more broadly, so you know, the overhaul of the
model why as you we certainly plays a role, but
it's definitely not the only reason for this really big slump.
Speaker 4 (25:57):
Chefen Nicola, we thank you. For painting, but what is
an intricate picture? Meanwhile, we shift gears. We look at
AI voice startup eleven Laps its launching a new initiative
for businesses stepping into the world of AI music. Customers
can enter a prompt and generate a new tune within
a matter of minutes using eleven Music.
Speaker 6 (26:16):
That's the name of the service.
Speaker 4 (26:17):
Joining us now is Matty Sanychewski eleven Labs CEO. So
what is demand like, you're doing voices, but what was
the inbound? What scale you're seeing of companies wanting to
create their own music?
Speaker 13 (26:32):
Carlin, thanks for having me here. So at eleven laps
we are doing AA audio research and product deployment. We
are on the mission to be the voice of technology,
build the most comprehensive AI audio platform in the world.
And now this includes eleven Music, which we are extremely
excited about because this is something that so many customers
came to our platform to create a voiceover, to create
(26:54):
a voices, to create narrations with our core models, but
frequently needed that additional background sounds, soundtrack in those productions,
which we will now be able to provide as part
of the service from creators all the way through the enterprises.
Speaker 4 (27:10):
It's a fraught world where you're trying to navigate IP.
In particular, this is IP protective music because you've already
got the training of the models is based upon agreements
you have.
Speaker 6 (27:20):
I'm thinking with Merlin Network.
Speaker 4 (27:21):
That's for independent labels, it's a digital rights agencies.
Speaker 6 (27:25):
Also got a similar deal with Cobalt Music Group. But
what about the bigger ones, what about UMG?
Speaker 4 (27:31):
What about some of the other key music license holders?
Can you make deals with them?
Speaker 11 (27:39):
It's exactly.
Speaker 13 (27:39):
One of the very special things about the release of
the Model is that it's both extremely high quality, one
of the highest qualities in the market, while it's also
fully licensed and built in collaboration with the labels, with
the artists, with the publishers. Like you mentioned, we already
are very happy to be working with Merlin and Cobbalt
frequently referred to as the fourth both because they represent
(28:02):
respectively thirty thousand independent labels on the Maryland side and
over twenty five thousand songwriters on the Cobbalt side. So
really that gives us such a high ability to create
extremely high equality music. Of course, as we look into
the future, we would love to work with UMGWG Sony
and help we find a path in the future to
do so. As we think about our work across eleven Music,
(28:25):
that's one of the key elements to make sure that
the work we do is both licensed but also gives
you that broad commercial license to use it, which our
enterprises demand from gaming all the way to media entertainment
companies that we work with.
Speaker 3 (28:38):
Maddie, are you talking with and negotiating with those major
labels you just named?
Speaker 13 (28:45):
Currently the focus was on bringing the current model and
product to the market, So really we're deep with our
partners with Merlin, Cobalt, Source, Audio Lander and a number
of other partners that are in the mentioned in the
release to bring the current iteration. As we bring the
product to the market iterate, we will see whether we
(29:07):
can expand out further.
Speaker 3 (29:09):
But it does a lot of interest in eleven Labs
in your business to what stage have you grown? Do
you have any financial metrics ar R or anything you
can tell us about how it's going for you over there.
Speaker 13 (29:22):
We're doing really well as a company. A few months ago,
over half a year ago now, we crossed the one
hundred million ARR mark as a company and we've been
growing steadily since. Across the company, we have really those
two key offerings. The first one is that creative platform
which music will form those in those early and initial days,
and then the agendic platform where we help companies create
(29:44):
voice agent conversational agents. And over the last six months
we've just seen an explosion in companies building with both
parts of the use cases, both on the creative and
the agentic side. We're now partnering over a thousand different
companies in the market and over a five million creators
that come through the platform on a monthly basis.
Speaker 4 (30:02):
I want to go back to those creators because can
you name any individual musicians, for example, that are willing
to go this way? I think of how Grimes is
really lent into this and she wants a fifty to
fifty split with her royalties going forward. But what are
the musicians you're seeing actually wanted to adopt this, Because,
as I say, it is fraud.
Speaker 13 (30:21):
We are seeing a number of musicians in the space
that are keen to lean into the technology Iterate quicker
make it a little bit easier to create music. Currently,
as part of the eleven Music we are still crafting
the partnerships and will hopefully announce some of those in
the coming weeks. So I cannot name any on that
(30:43):
side just yet, but we've seen a wider set of
creators working with the tools to make it easier to
produce variations of the genres, make it easier to see
how the tracks can be produced before heading that production stuff.
Speaker 3 (30:58):
Maddy, there's a lot of intro seen you and eleven
Labs kind of fits the profile of this like vertical
model where it's a potential aqua higher target right. I
just wonder what you make of what's happening right now,
the windsurf scenario and whether you might consider doing something
that joining a bigger entity to continue your work.
Speaker 13 (31:21):
We are building generational company, are planning to go in
the pandemic and try to create and become the voice
of the technology, make computers speak, make information accessible across
voices like ross sounds across languages and now music. So
current default this to a create a company that can
that can create something special on its own, and we
think we can. So hopefully the opposite will be true
(31:42):
where we'll be able to acqui hire or acquire a
number of companies in the space on that path too.
To potential IPO in the future.
Speaker 3 (31:50):
Matty Sanderschewski of eleven Labs, thank you very much. Now
coming up on the program, and thirteen partner Brent Murray
joins us talk about the firm's new investment in the
generative AI advertising space.
Speaker 2 (32:03):
That's next. This is Winberg Tech.
Speaker 3 (32:17):
Venture firm M thirteen is just led a ten million
dollar seed round in generative AI advertising platform Context. The
startups now the largest and most well funded gen AI
ADS platform to date, according to M thirteen. M thirteen
partner Brent Murray's here to tell us more. This space
is dynamic, right because it's highly analogous with Meta. You know,
(32:38):
a lot of the story around Meta is how their
working AI improves AD pricing, ad impact that core business.
You are looking at a very different scale and early stage.
I'd just love to get a presentation of the thesis
and why this is an interesting domain within AI.
Speaker 14 (32:57):
Yeah, thank you Ed and Caroline as well for having me.
So we are excited to announce the coming out of
stealth of Context this morning. They're ten million dollar seed
round to really become the largest and most well funded
generative AD platform out there. And so to answer your
question our thesis on the space, Well, we see the
advertising world at a major inflection point, and I'm glad
(33:20):
you hit on meta. There's also industry incumbent Google that
have pioneered a lot of the previous waves.
Speaker 2 (33:28):
We believe the first wave came sort of.
Speaker 14 (33:30):
At the early two thousands when when Google pioneered digital
advertising as a space. Then shortly thereafter, a second wave
came in the twenty tens where social media platforms led
by Meta attracted new eyeballs, new audiences online, and ad
inventory exploded online.
Speaker 2 (33:47):
And we see this as a third wave.
Speaker 14 (33:48):
The one trillion dollar AD market, three quarters of which
is done through digital channels, is about to migrate towards
generative AI apps. You already see Open ai as the
fastest growing app of all time, closely getting to a
billion users. And it's not just them, they're just the
most well known. You have a lot of other generative
(34:08):
AI entertainment apps that are attracting audiences where context is
going to target them.
Speaker 3 (34:14):
What is context's core competency? What is it that they're
actually doing good at.
Speaker 2 (34:20):
Yeah, there are two things.
Speaker 14 (34:22):
One is real time ad creation and the second is
hyper personalized contextual ads.
Speaker 2 (34:30):
So I'll take those in pieces.
Speaker 14 (34:32):
The first one, similar to what Mark Zuckerberg is hinted
at where Meta is going, is end to end advertising creative,
where AI and llms are powering much of not just
the targeting of audiences online, but the actual creation of
the advertisement itself, the asset knowing what copy to use,
what style, what color the image, the video. So what
(34:56):
context has done is enable an AD to be created
in real time using an LM. If you are in
a chat bot, then your ad will be served up
to you in real time, which means you don't have
to have a lot of wasted time on the ad
creative a lot of manual processes creating thousands of iterations.
Speaker 2 (35:15):
So that's the first thing.
Speaker 14 (35:16):
The second thing is contextual hyper personalized. So in the
old world, if you're on social media, I think a
great example is my family and I just had a baby.
Any of your viewers know that the months leading up
to a baby, the months following a baby, you are
targeted ad nauseum by the social media platforms because that
(35:38):
is when you're most likely to purchase baby goods. But
what happens after you purchase the crib, After you purchase
the high chair. You're not going to purchase them again,
But hundreds of dollars are wasted on you as an
audience because they're targeting you as a demographic and a
social behavior. Take that as what context is doing is
very different. They are targeting advertisements based on your real
(36:00):
time queries into the LM. So if you are chatting
through a chatbot telling it what you're interested in, an
advertisement will be created in real time based on exactly
what you're asking.
Speaker 4 (36:11):
I kind of want to go to the regulatory or
unnerving part of this, because we're almost trusting these chatbots
more than say, the social media side of things. How
do I know the chatbot's not steering me during my questions?
How do I ensure that basically I'm not suddenly finding
the conversation being bent to certain direction because it wants
me a hooked in it.
Speaker 6 (36:32):
So we're worried about addiction process again.
Speaker 4 (36:34):
Or indeed forcing me to then bend my will to
end up buying something and perhaps I didn't need.
Speaker 6 (36:38):
How are we going to regulate that?
Speaker 14 (36:41):
Yeah, that's a great question, and I think the advertising industry,
because we're at this inflection point, we'll have to face
a lot of those questions right now, you see what
happened with social media platforms in the past. Consumers are
always hesitant to go on ad platforms like Meta or
Instagram and just be served at ad after ad after ad.
(37:01):
But then they become much better and influencers started talking
about things that you wanted to buy, and a lot
of advertisers and online merchants rely on some of these
ads to power their businesses to stay in business. I
think the advertisements in AI will have to follow the
same suit. You have to be able to trust that
the publisher or the chat bot isn't trying to steer
(37:22):
you in the in the right in the wrong direction.
That will lead to unnecessary churn. That's the last thing
that Context wants for their publishing customers. They want to
create seamless environments where you're having a regular chat.
Speaker 2 (37:35):
The ad will be.
Speaker 14 (37:37):
Promoted or shown in a way that you can distinguish
it from an advertisement versus non advertisement, that it's not
predatory or you know, going after you.
Speaker 2 (37:46):
In a certain way.
Speaker 14 (37:48):
But you'll you'll see a very very natural process where
the chatbots are feeding you up things that you already
want to see, already want to potentially purchase.
Speaker 4 (37:58):
Well, Google already doing that. In the third part, chatbots,
It's fascinating. Brent Marrying, We thank you so much for
your time talking about context. His partner over at thirteen. Now,
let's talk about how women are holding well then eighteen
percent of all partner and above rolls in venture capital.
Speaker 6 (38:12):
It's all according to data just released by All Rays Now.
Speaker 4 (38:15):
It's a nonprofit that aims to increase gender parity in
tech and VC, and it's saying that this is ahead
of its projected schedule. We spoke with All Raised CEO
Page Buckner about where that change can be seen.
Speaker 15 (38:26):
Most twenty percent of decision making roles at VC firms
with a billion plus and aom have women decision makers,
which is super exciting. And so when you think about
that stat what's important to us is that we're making
progress at scale. But we do know that at the
mega funds there are only three women holding managing partner roles,
and so there's a big opportunity for us to make
(38:47):
progress there.
Speaker 4 (38:48):
And they're the funds with more than ten billion in
assets under management. Go back to the data therefore, page
of what this means?
Speaker 6 (38:56):
Why is it?
Speaker 4 (38:57):
What is helping those that are managing in excess one
bay and make those decisions have more decision makers who
are diverse in thought.
Speaker 2 (39:06):
Yeah.
Speaker 15 (39:06):
So I think the first thing to ground ourselves in
is that there's so much data and we talked about
this last year that makes the case for having diversity
and decision making roles at any kind of organization, and
this is especially important in venture capital when they are
making decisions about the kind of innovation that we're going
to fund in the private markets and then eventually in
the public markets as well. So it's important for us
(39:27):
to stay grounded in the results, and we talked about
this last year. But what we know is that diversity
is an advantage because diverse teams consistently outperform. They also
better reflect where the market is heading. And one important
data point that we've been thinking deeply about is the
one hundred trillion dollars in wealth that's projected to move
into the hands of women by twenty forty eight, and
(39:47):
that's just going to reshape everything in the economy. But
as we think about venture capital in particular, we've been
asking what does that look like for LPs, what does
that look.
Speaker 6 (39:55):
Like for venture firms?
Speaker 15 (39:56):
What does that look like for the kind of innovation
that these women are.
Speaker 6 (39:59):
Going to be able to fund?
Speaker 4 (40:00):
So is the thought process here more money lands in
female coffers, They therefore want to work with more diverse
LPs or allocate the LPs want to allocate to more
diverse vcs, and they want to be putting money to work.
How does that reflect in the portfolio companies that then
these diverse bench capitalists and decision makers are putting money into.
Speaker 7 (40:23):
Yeah.
Speaker 15 (40:23):
Absolutely so we know according to our friends at Kaufman
that women vcs are two times more likely to invest
in women's CEOs at the earliest stages.
Speaker 6 (40:31):
And we know that there's opportunity there.
Speaker 15 (40:33):
And often these markets have been overlooked because they've been
perceived as niche markets. But what's great is that when
you bring in more diversity on the VC side of
the equation or on the LP side of the equation,
by the way, that is felt across the capital stack,
and then the kinds of innovation that we can have
on the start up side of the equation shift, and
so what gets funded then also better reflects than part
(40:54):
of me the marketplace, which is of course commanded by women.
When we think about the person of decisions around consumer
and healthcare and education that are made by women every
day for household across this country. So it is really
reflecting not just where the market is today, but where
the market is going to be. And we're thinking about
the products that are therefore reflective of the consumer that
(41:17):
vcs really want to be building for because they're going
to be able to get outsize returns.
Speaker 3 (41:22):
That was Paige Buckner, CEO of All Rays. Now coming
up investors, IAMD results after the closing bell, the latest
earnings expectations coming up next, and the analysis from Bloomberg Intelligence.
Speaker 2 (41:34):
Stay with us. This is Bloomberg Tech.
Speaker 3 (41:43):
AMD out with earnings after the bell, and investors are
putting increased pressure on the chip maker, expecting the company
to show benefits from the AI race. Here with more
Kungensavani of Bloomberg Intelligence, you put a number on this market.
In Vidia has ninety five percent of the market for
GPUs is AI accelerators. AMD has five percent. What do
they need to show us that they're making some ground?
Speaker 2 (42:05):
Well?
Speaker 16 (42:05):
This time around the non air things will be important,
PC gaining share, some maybe pair of pull in embedded,
coming recovery in three Q but as you said, the
second half AI ramp both in server CPU and GPU
will matter the most. They need to again show sustained
execution on the three fifty five ramp. There's a possibility
of the China series coming back and adding about five
(42:26):
hundred million to even more revenue in the second half,
and any visibility into the Helios which is the next
year server level REX solution, should be very positive.
Speaker 6 (42:35):
Where have they been executing really well?
Speaker 4 (42:38):
Because I feel like time and time again we're hearing
about the PC side of the equation, but the consumer
isn't too hot right now.
Speaker 16 (42:46):
Definitely, the ND markets are struggling, but they have been
really gaining share on CPU, both on the PC and
the server, which has really been helping them outperform even
the unit weakness in the market. Secondly, we have heard,
you know news about them raising prices both on the PC,
the service if you, and the GPU side. That really
speaks to the strength of their adoption across the board.
Speaker 1 (43:09):
Wow.
Speaker 4 (43:10):
Planning to watch out for in terms of size and
market application countri In Savanni on Bloomberg Intelligence some great
notes coming out ahead of these earnings, and we'll analyze
them after the Bell as well. That does it though
for this edition of Bloomberg Tech, and so much to
be digesting in terms of the market. It's the macro pressure,
but we look at AMD after the Bell in terms
of the micro perspective.
Speaker 3 (43:29):
Yeah, another day where chips are in focused because of policy.
Speaker 2 (43:32):
But like AMD, best.
Speaker 3 (43:33):
Performing chip stock so far this year, right, and they
have a lot of pressure on them. But it's an
interesting company to follow. Good analysis from Kunjan recap it.
As Cary said on the podcast, you know where to
find it.
Speaker 2 (43:43):
It's on the.
Speaker 3 (43:44):
Bloomberg terminal as well as online on all of those
great platforms Apple, Spotify, and on iHeart. From New York
City in San Francisco, this is Bloomberg Tech
Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and Vla Lolow in San Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up.
Speaker 3 (00:25):
President Trump says more chip tariffs are coming soon. This
is the administration explores equipping chips with location tracking tech.
Speaker 2 (00:33):
Will have the latest from Washington.
Speaker 4 (00:34):
Plus, Booming AI demand is sending Palenties second quarter revenue
soaring above a billion dollars, Chez hit a new record.
Speaker 3 (00:42):
And AMD also out of earnings after market close today
with the company under pressure to show benefits from the
AI race, and.
Speaker 4 (00:50):
We take a check on the markets amid what is
yet more earnings to come from AMD and a digestion
of weaker services data that seems to be putting up
pressure in a macro picture is underwhelming. We're off by
five ten percent on nasback one hundred, but ed get
to the nitty gritty, what's moving in terms of points here?
Speaker 3 (01:07):
Yeah, the earning story is palent here and we're up
eight percentage points forty eight percent growth on the top line,
which the company attributes to astonishing AI contribution. We're going
to get deeper into that in the program. Another top
story that we're tracking is what's happening with AI chips
in particular. So we're going to talk about how tariffs
are coming, specifically for semiconductors. But then there's the reporting
(01:30):
overnight that the US is thinking about putting location trackers
on AI chips that are exported to certain countries. In fact,
overnight we caught out with a key White House official
who talks about it.
Speaker 2 (01:41):
Listen to this.
Speaker 5 (01:42):
There is discussion around very important research and development that
needs to be done on potentially the types of software
or even physical changes you could make to the chips
themselves to do better location tracking. And that's something that
we're exploring and we explicitly included in the plant.
Speaker 4 (01:59):
We can get to order this with Boomberg's Mike Shepherd,
who's joining us.
Speaker 6 (02:02):
Now from Washington.
Speaker 4 (02:04):
Look, I want to go into the broader picture first
and foremost, we are anticipating semiconductors to be in the
eye in the storm when it comes to localized tariffs.
How much is that impacting the future of companies wanting
to import.
Speaker 7 (02:17):
Well, that's a great question, Carol, because the administration, while
it has spared chips imports from the country by country tariffs.
We are now expecting Donald Trump to sign an order
in the next week or so putting tariffs on semiconductors
as a category, no matter the point of origin, and
the countries will have to negotiate individual levels perhaps after that.
(02:41):
But they have made clear that just like with pharmaceuticals
and autos and copper and so many other categories of goods,
they want to see more of them produced here in
the US, and they see tariffs as a great means
of doing so. Now, what this means is that industries
such as automakers, even the chip plants themselves, will face
(03:02):
higher costs. And then when you look at the hyperscalers,
Open AI and the companies that we've seen report their
earnings this week and announced even further intentions of expanding
their investment in artificial intelligence, they run the risk CARAF
facing higher costs on those two from chips. Chips are
one of the biggest inputs that these hyperscalers face in
(03:23):
terms of cost, and adding to that, adding up to
a twenty five percent tariff would be tricky. Now we've
been anticipating this since April, when the Commerce Department opened
its investigation into whether tariffs were called for. It's under
a so called two thirty two process. It would be
on sounder legal ground than the reciprocal country by country tariffs.
(03:45):
We will have to see what the timing looks like
and whether or not they carve out any exemptions as well,
including for semiconductor manufacturing equipment, which is key to expanding
here in the US as well.
Speaker 3 (03:58):
Mike location track, we have the United States willing to
export technology, the American tech stack around the world, but
it wants to track where the chips are going. Can
you explain that one to us?
Speaker 7 (04:11):
Yes, Ed, And it really is central to the administration's
plan to try to expand the American tech stack, especially
advanced AI chips. They want to be able to sell
those more broadly and more widely, including even into the
Chinese market. We saw the promise to loosen restrictions on
those aged twenty chips.
Speaker 2 (04:31):
But it's more than just China.
Speaker 7 (04:33):
It's being able to sell those semiconductors across the Middle East.
Speaker 2 (04:38):
We saw all the deals that.
Speaker 7 (04:40):
Were reached with the United Arab Emirates and in Saudi Arabia,
But to be able to sell in those markets. The
US wants to also have the capability of tracking those
chips to ensure that they are not somehow diverted or
smuggled or resold or somehow end up in the wrong hands.
And that would include not only China, but Russia, in Iran,
(05:00):
every series that the US does not want to see
gain capability when it comes to artificial intelligence, which of course,
as we know, has a dual use capability.
Speaker 4 (05:10):
Mike Sheffin always on the nose. We thank you from Washington. Meanwhile,
Taiwanese prosecutors, well, they've arrested six people suspected of stealing
trade secrets from TSMC. Now, the chipmaker reported former and
current staff to authorities on suspicion they illegally obtained core technology.
Speaker 6 (05:25):
The prosecutors searching the homes of some staff.
Speaker 4 (05:28):
Now authorities are now trying to find out if data
had been leaked to other parties.
Speaker 3 (05:33):
Z okay Onto Earnings Palenteer reported a forty eight percent
increase in revenue for the second quarter to more than
a billion dollars. The company cited the quote astonishing impact
of AI on its business. Bloomberg Intelligence senior analyst Mandy
Singh joins US. Now, this is the story that everyone's
talking about this morning, Palenteer's continued momentum. At BI, you
(05:57):
went a little bit deeper on how that's playing out,
But did you just summarize where they were strong and
what's happening with Palenteer right now?
Speaker 1 (06:04):
Yeah.
Speaker 8 (06:04):
I mean when you look at the US commercial segment,
that is what everyone is excited about. It grew ninety
three percent for the full year. Their guide is eighty
five percent, and look for a small segment with over
a one point two billion dollar run rate, it's very
impressive growth. But I think the metric that we still
(06:25):
don't understand is how much is the AI contribution to
their top line growth. I mean, when you look at
a Microsoft Azure number, you know the AI contribution to
growth this seventeen percent when they grew thirty nine percent.
In the case of Palenteer, yes they grew forty eight percent,
but we don't know how much of that is driven
by AI because their business model is dependent on contract wins.
(06:49):
And yes, they gave us a number around the backlock
growth and the remaining deal value on the commercial side,
but we just don't know enough to quantify that AI contribute.
And for a company that's trading at such a rich
valuation multiple, you want to have a better sense of,
you know, what that flow through of AAR revenue is.
Speaker 4 (07:09):
Okay, So perhaps more transparency on a breakdown of numbers, Mandy,
what about who they're taking market share from, who's losing
out as we see Palenteer make these wins.
Speaker 8 (07:19):
Yeah, their core business is data ware housing, So you
have the legacy vendors like terror Data and Oracle, and
you also have cloud companies like Snowflake and Data Breaks.
And we know Data Breaks is also doing very well
in terms of growth rates. So now that Palenteer is
expanding on the commercial side, it'll be interesting to see
if they can sustain this kind of growth rates, because
(07:42):
you're right, it will come at the expense of someone
on the commercial side. Clearly, the hyperscalers are looking to
get a piece of that pie as well. Because Microsoft,
the way it's positioning Copilot, it's trying to solve some
of the use cases that Valenteer is looking to solve
by applying LLLM. So to my mind, the commercial side growth,
(08:03):
the sustainability of growth is going to determine whether it
can sustain this valuation, and so far I find the
net new arr metric from the Hyperscalers far exceeds what
Talenteer has had a given. Talenteers is a much smaller company.
Speaker 4 (08:18):
Great context, Blue meg Intelligence, Senior analyst, man Leeve Seeing,
thank you so much. Let's dive into all of this,
particularly into the valuation front. Stephanie Aliaga is with US,
joining us from Global Market Strategy JP morgas Asset Management
market Insights team.
Speaker 6 (08:31):
Stephanie, we look at.
Speaker 4 (08:32):
Something like Palenteer five hundred percent in twelve months, the
most expensive stock on the s and P five hundred
When you're looking at where it prices versus future sales,
does it seem vindicated to you these sorts of valuations.
Speaker 9 (08:46):
There's absolutely some AI enthusiasm at play here, and I
think there's some and I think in this earning season
we have heard from a variety of companies, not just
these megacap tech companies, that they're seeing early signs of
success US with AI. AI is helping them run more efficiently.
It's writing more and more of their code, something like
fifty percent of code, and it's also helping them hit
(09:08):
more shots on target, particularly in marketing. But beyond that,
I think when it comes to valuations, you need to
on one end, look at the stability in the core
business operations of some of these companies, these megacap tech
companies which remain highly profitable, and then also some of
the upside moving forward in the AI race. And when
(09:31):
it comes to the leading megacap tech companies, at least,
we actually think valuations aren't as overstretched because core earnings
are so robust and they are actively reinvesting a lot
of those profits that cash flow into the next paradigm shift,
and we're already seeing some early signs of success these
Faces and Shovels companies.
Speaker 6 (09:52):
They're also digging for goals and seeing the fruits of that.
Speaker 3 (09:55):
Stephanie, when you were lost with us in April, it
was just after the sort of deep seat chaos and
we discussed how the semiconductor industry in particular was in
the crosshairs of the administration. A lot has changed since then.
Actually the administration has been very supported at exporting American technology.
But just on the stories we touched on tariffs on
(10:15):
semiconductors and location tracking on chips, there's a risk premium.
Speaker 9 (10:19):
There is there absolutely geopolitics remains a risk. Policy has
been a headwind for the sector in recent months and
particularly today, but we are seeing a shift from this
administration towards a greater appreciation around what safeguarding US dominance in.
Speaker 6 (10:38):
AI really looks like.
Speaker 9 (10:39):
Right, And I will add, outside of these risks around tariffs,
what is really promising and quite structural, is that you
have seen a decline in over ninety percent around the
cost of inference for AI, and that has to do
with four factors. Hard hardware, the chips themselves have been
getting significantly more efficient. Algorithms are getting more efficient, how
(11:03):
much data, how many numbers they need a crunch, we're
right sizing models. We now have mini models that we
can access, and we've seen this democratization in models, particularly
open source. So all of that has led to this
pretty remarkable decline in the costs of AI, and I
think we need to put that to one side when
thinking about these risks for tariffs.
Speaker 3 (11:24):
We shall borrow the acronym going forward. What I've wanted
to ask you for a real long time, is there
an America ink trade going on here where you just say,
I bet on these companies that are most likely to
succeed if this American strategy pays off.
Speaker 9 (11:41):
I think it's a really interesting point, particularly in the
context of this debate around US exceptionalism, because when I
look at the markets right now, I don't see so
much US exceptionalism, but exceptionalism from a few US companies,
and that is really what is driving the markets right now.
We're actually less concerned about valuations for let's say, the
(12:03):
Magnificent seven and.
Speaker 6 (12:05):
A bit more concerned about the other four.
Speaker 9 (12:06):
Ninety three because without that structural tailwind when it comes
to AI, it's a bit harder to see the cyclical
tailwinds for the rest of the market. But when it
comes to these leading tech companies, I think you do
have unprecedented fundamentals and the continued dominance, particularly in tech services.
(12:26):
Now there's plenty for investors to consider, and we still
think portfolios should be diversified, but at a time like this,
you maybe don't want to be diversifying away from that
epicenter of innovation.
Speaker 6 (12:38):
Okay, so interesting that you got the.
Speaker 4 (12:39):
Acronym hard tech is where everyone's looking at from a
spot up culture but also into these big Magnificent seven.
But then drip feed it down into where if you
are going to diversify the sector, is that are deploying
it right or indeed, is it more about the picks
and shovels a little bit more, it's about the energy,
It's about the infrastructure and that slide of the equation
that keeps you in the AI spin.
Speaker 9 (12:58):
Absolutely, the AI value is continuing to expand we think
that infrastructure layer is huge, and that is a secular
story that is still in its early innings. The amount
of energy that we're going to need, the investment that
we're going to need in a variety of different sources,
and also everything that goes into those data centers themselves,
the cooling equipment, the server technology, and so forth. So
(13:19):
we still think there's a significant investment case there. But
what's also really interesting in particularly what we're seeing in
private markets this year, is this explosion of AI applications,
the kind of applications that businesses are going to need
because it's not enough to give their worker SHATBT.
Speaker 6 (13:34):
They need domain.
Speaker 9 (13:35):
Specific AI applications that are actually productivity enhancing and show
up in the bottom line. We're seeing more and more
of those come to market this year, mostly in private markets,
but I think that's a trend that is worth watching
and just getting going.
Speaker 4 (13:48):
And then they move from private markets into public markets
and we see what happened with Figma and the bephoria
around that particular listing.
Speaker 6 (13:56):
Are you seeing more of.
Speaker 4 (13:57):
Your clients wanting to know about what IPOs to get
into or indeed how to make that move from private
markets into public markets.
Speaker 9 (14:04):
I think there's a lot of interest there, as there
should be. I mean, there's a lot of anticipation for
a pickup an Ibo activity, and I think the fundamentals
and the promise and a lot of those AI startups
could be the thing that really gets enthusiasm and comfort going.
Speaker 6 (14:16):
In the market again.
Speaker 9 (14:18):
But I also don't think that we're going to go
back to that kind of post pandemic period. A lot
of these companies have different goals beyond just being profitable
AI companies. Right, many of the LM providers that are
in private markets, they're on the race to AGI, and
so there is also this appreciation that these AI companies
can get a lot of the capital that they need
in private markets, maybe they will more control over their companies.
(14:40):
So if you want to access that opportunity set, don't
just wait for them to go public. I think you
might want to look at your private market exposure and
then also maybe some of those tactical opportunities that do
arise this year.
Speaker 3 (14:52):
Stephanie Aliago, JP Morgan. Great to have you back on
the show. Thank you very much. Now coming up, Joe Faff,
known for making early bets on comempanies like Alphabet and
Amazon while at tro Price, joins us discuss his new
role head of Growth for Eclipse, a VC firm.
Speaker 2 (15:07):
That's next. This is Bloomberg Tech.
Speaker 3 (15:21):
Investor Joepath's scale trow Price's US growth stock Fund from
fifty seven billion dollars to over one hundred and fifty
billion dollars in assets, and had twenty years at the
investment firm, making early bets on companies like Amazon, Alphabet,
and Meta.
Speaker 2 (15:35):
He's now joining a Clipse, a.
Speaker 3 (15:37):
VC firm focused on physical industries as the head of
growth and also as a partner.
Speaker 2 (15:42):
Joe's here with us in San Francisco.
Speaker 3 (15:45):
I've always known you to be somebody who is higher
up the cap table of big companies that then go public.
Rivian is the example that I know best, late growth
stage round and anchor investor in in what was huge
IPO in twenty twenty one. You've been lures to bench
capital in Silicon Valley.
Speaker 10 (16:05):
Why good to be with you, Ed, I appreciate it.
I'd say, you know, you've known me for a long
time now, and I've been a builder of companies over
time and investing capital, and those companies that they've scaled,
I think what really attracted me eclips and opportunities. I
really think we're at a seminal moment right now for
physical industries. So if you look at the companies that
(16:26):
have been created now, both private and public, and you
look at the market caps, there's been significant interest in
those and there's capital formation around them.
Speaker 6 (16:33):
The other parts of.
Speaker 10 (16:34):
This, I would say, you know, all this is coming
together at once. Is US policy, which you talked about
earlier in the segment, I think is very supportive of
bringing industries back.
Speaker 11 (16:42):
To the United States.
Speaker 10 (16:43):
And the other thing is clearly an inordinate amount of
innovation around artificial general intelligence and ultimately artificial superintelligence, which
I think provides this unique intersection of hardware and software
to transform physical industries.
Speaker 3 (16:57):
So the reindustrialization piece is something that comes up in
this program all the time. There's a sort of national priority,
national interest, even sort of national pride elements to it.
How are you going to play that in your strategy.
Speaker 10 (17:12):
I think it's important you talk about policy and ultimately
national security and economic sovereignty, and it's very important, I think,
you know, looking at the Eclipse team and why I
joined them specifically, they've been doing this for ten years
and had a vision a decade ago, and it's an
incredibly competent, amazing team. During my process, the time I
spent with Lere and the rest of the partners, they're passionate,
(17:35):
they're hungry.
Speaker 6 (17:36):
They're true builders.
Speaker 10 (17:37):
They roll up their sleeves, they get their hands dirty,
and they've done a lot of you know, early stage
enterprises and companies. Where I come in. I've allocated capital
at scale. I've looked at companies both private and public
that have grown, and I've worked alongside invested in many
of the best companies in the world. So to do
that as we scale these businesses and connect the two
(17:58):
together with that team, their technical experience, in my financial experience,
I think is really like a one plus one equals
three situation. They remind me I'll date myself here, ed,
but it's a team of Jerry Maguire's not.
Speaker 6 (18:10):
Dating at all. It's an iconic movie, Joe.
Speaker 4 (18:12):
I'm interested though, in just how you go from managing.
Speaker 6 (18:16):
Tens of billions to going.
Speaker 4 (18:18):
To managing and writing relatively small checks. What sort of
size checking you're going to be giving do you think
when you see these smaller scale companies that are going
to be huge?
Speaker 10 (18:26):
Yeah, well, I mean initially, right at the early stage
or venture side of this Caroline, you're going to see
smaller check sizes. But we're going to scal all those
over time, both for companies as they hit a scale
velocity and they need more capital to continue to build
out their strategies. And on top of that, there will
be companies, as we've seen, that need bigger check sizes
earlier and getting more traction. A good example that is investment.
(18:49):
I made it both Trow and we've made it Eclipses
Androl to give you an example.
Speaker 4 (18:54):
So, and Andrew, I immediately think of just the focus from
the government and indeed for many an investor right now,
just what was happening in point seventy two, for example,
on getting in on defense tech in particular. But I'm
interested in other particular areas where you think the US
is leaning in more that you want to be contributing
to thinking. When you think of red word, I'm thinking
about the supply chain more. But when you're thinking then
about Tesla is more about robotics. Where are your sweet
(19:16):
spot's going to be?
Speaker 6 (19:17):
Do you think?
Speaker 10 (19:18):
Yeah, I've heard a lot of experience in electric vehicles,
material science, battery technology, but that's also extended and I
think it ties in with what Eclipse has done well,
supply chain solutions, semiconductors. You mentioned defense tech, autonomy, So
there's a lot of crossing a paths given my experience
(19:39):
that I've had as a private and public investor, now
as I join.
Speaker 3 (19:42):
Eclipse, Joe, you visited Tesla in twenty eleven. You took
Rivian public basically, and then you help them after going public,
just very quickly, What were the lessons you took from
M two companies?
Speaker 10 (19:54):
Yeah, I mean, I think this is one of the
seminal moment for me on physical industries was in twenty
eleven when I visited Tesla. It was not just a
differentiated product ed but at the end of the day,
a different way of building right. The first principle ways
of thinking, and we see that permeating a lot of businesses.
And as we've had successful companies like Tesla, SpaceX, mentioned Anderill, Redwood,
(20:17):
there's people leaving those firms and they're starting new firms
as well. So the ecosystem is growing and they're taking
those lessons they learned with them, things that were really
important to me, and I think I can help businesses
with clearly, product market fit is very important. You know,
right product, right time, solving the right customer problem set
or providing them something that they don't have, that's very important.
(20:38):
I've always talked about, you know, additional acts beyond X one.
You look at Tesla, They've done that, SpaceX has done that,
Amazon's done that. So a handful of those and then
and then really what I've we've focused on growth for
many years is driving durable growth and making sure companies
are sustainable longer term. So I'll be working with most
of them to scale and ultimately get them to be
(20:59):
durable public companies.
Speaker 3 (21:00):
Joe Farf on his second act, the Klip's partner and
head of growth, thank you very much. Coming up, Aberdabi's
MGX gets ready to raise billions for its own AI ambitions.
Speaker 2 (21:10):
We have more in that story. Next, this is Bloomberg Tech.
Speaker 6 (21:19):
It's the time now for talking tech.
Speaker 4 (21:21):
First up Abadabi based MNGX is said to be considering
plans to raise billions of dollars as it ramps up
investments in AI. And that's according to sources the firm.
It plans to raise money through a fund structure and
can raise as much as twenty five billion. Now this
is his executives raising money from investors in Aberdabi, but
also beyond Plus and videos assembly partner on High and
actually saw sales growth slow in July, a signal that
(21:43):
tariff induced uncertainty is affecting electronics demand. Still, the company
hopes to ride that wave of continued AI spending from
its partners, even expanding its AI server assembly capacity in
the United States and shares of German ship maker in Finion,
where they're rising today after the company said that tariff
impact it's fourth quarter fiscal results will be less than anticipated.
Convenience CFOs Ben Schneider joined Blomberg TV Justselier today.
Speaker 11 (22:07):
I would say from today's perspective, the indirect tariff guestimate
for this fiscal quarter is probably less pronounced than we
thought last quarter. On the other hand, we are faced
with more and more negative currency headwinds from the weakening dollar,
which offsets to a certain extent.
Speaker 3 (22:28):
Coming up, eleven Labs bets on AI Music, launching a
new service called eleven Music. We speak with CEO Matthew Sanazuski.
Speaker 2 (22:36):
Next, this is Bloomberg Tech.
Speaker 6 (22:53):
Welcome back to Bloomberg Tech.
Speaker 4 (22:55):
In on those markets that just starling back from some
of the record highs have been out recently, we're seeing
then that one hundred and down sixt ten percent. There's
more of a creeping anxiety about the macro picture in
the United States that services data looking week, remember the
jobs data that President Trump took issue with the end
of last week also painted a less than rosy picture
about the economy. We take some money off the table
(23:15):
as we digest also earnings. We're expecting amd after the bell,
but let's look forward as also how we're seeing some
companies still at record highs. Palenteered doing the work today,
we're up almost seven percent, new record high after it's
already climbed five hundred percent in the last twelve months.
Speaker 6 (23:30):
This is their earnings managed to impress a billion dollars
in terms of revenue.
Speaker 4 (23:34):
We'll also see in Global Foundries, though not such a
pleasing picture that they actually beat in terms of their
fiscal quarter reported, but it's in anxiety around profitability looking
forward that midpoint of the range not met. When it
looks for their forecast, we're off by nine percent of
the contract ship make red.
Speaker 3 (23:50):
Okay, take a look at this chart showing the sales
slump Tesla's posting in key European markets.
Speaker 2 (23:57):
These numbers come as.
Speaker 3 (23:59):
Chinese rival Bed picks up sales team in the region.
I want to get out to Bloomberg Stefan Nikola to
talk about this because it's an ongoing story. It's a
trend that we've seen Tesla in some European markets dropping
off and China's BYD making ground.
Speaker 2 (24:15):
How would you sum the data we got most recently.
Speaker 12 (24:19):
Yeah, I mean Tesla has been suffering in Europe for
the past few months and suffering in the key electric
vehicle markets Germany, the UK, France. Those are all markets
that are rising in terms of electric vehicle demand. So
you know that that's really bad for for Tesla. Of course, BYD,
(24:40):
by contrary, is sort of making a big push into
all of these markets selling electric cars but also hybrids
and yeah, and just in general, it's it's a really
bad picture for Tesla. Of course, the company has a
factory up and running in Germany and it needs demand.
Speaker 4 (24:58):
Yeah, just try and weave the narrative for us, because
Tesla wanted the narrative to be. Look, we're moving to
a new production format, particularly with a model. Why that's
what's slowing down perhaps some of our end results, but
actually it seems to be political connotations. It seems to
be competition.
Speaker 6 (25:14):
Is the issue? Is that really what we're seeing here?
Speaker 12 (25:18):
Yeah, there are a lot of factors at play here.
The whole shifting to a new model and narratives is
way too simple to explain this drastic decline. Elon Musk's
political activities are certainly contributing to this sales slump, as
are better models from rivals, better prices from rivals, but also,
(25:40):
you know, just very shifting market dynamics in Europe, but
also more broadly, so you know, the overhaul of the
model why as you we certainly plays a role, but
it's definitely not the only reason for this really big slump.
Speaker 4 (25:57):
Chefen Nicola, we thank you. For painting, but what is
an intricate picture? Meanwhile, we shift gears. We look at
AI voice startup eleven Laps its launching a new initiative
for businesses stepping into the world of AI music. Customers
can enter a prompt and generate a new tune within
a matter of minutes using eleven Music.
Speaker 6 (26:16):
That's the name of the service.
Speaker 4 (26:17):
Joining us now is Matty Sanychewski eleven Labs CEO. So
what is demand like, you're doing voices, but what was
the inbound? What scale you're seeing of companies wanting to
create their own music?
Speaker 13 (26:32):
Carlin, thanks for having me here. So at eleven laps
we are doing AA audio research and product deployment. We
are on the mission to be the voice of technology,
build the most comprehensive AI audio platform in the world.
And now this includes eleven Music, which we are extremely
excited about because this is something that so many customers
came to our platform to create a voiceover, to create
(26:54):
a voices, to create narrations with our core models, but
frequently needed that additional background sounds, soundtrack in those productions,
which we will now be able to provide as part
of the service from creators all the way through the enterprises.
Speaker 4 (27:10):
It's a fraught world where you're trying to navigate IP.
In particular, this is IP protective music because you've already
got the training of the models is based upon agreements
you have.
Speaker 6 (27:20):
I'm thinking with Merlin Network.
Speaker 4 (27:21):
That's for independent labels, it's a digital rights agencies.
Speaker 6 (27:25):
Also got a similar deal with Cobalt Music Group. But
what about the bigger ones, what about UMG?
Speaker 4 (27:31):
What about some of the other key music license holders?
Can you make deals with them?
Speaker 11 (27:39):
It's exactly.
Speaker 13 (27:39):
One of the very special things about the release of
the Model is that it's both extremely high quality, one
of the highest qualities in the market, while it's also
fully licensed and built in collaboration with the labels, with
the artists, with the publishers. Like you mentioned, we already
are very happy to be working with Merlin and Cobbalt
frequently referred to as the fourth both because they represent
(28:02):
respectively thirty thousand independent labels on the Maryland side and
over twenty five thousand songwriters on the Cobbalt side. So
really that gives us such a high ability to create
extremely high equality music. Of course, as we look into
the future, we would love to work with UMGWG Sony
and help we find a path in the future to
do so. As we think about our work across eleven Music,
(28:25):
that's one of the key elements to make sure that
the work we do is both licensed but also gives
you that broad commercial license to use it, which our
enterprises demand from gaming all the way to media entertainment
companies that we work with.
Speaker 3 (28:38):
Maddie, are you talking with and negotiating with those major
labels you just named?
Speaker 13 (28:45):
Currently the focus was on bringing the current model and
product to the market, So really we're deep with our
partners with Merlin, Cobalt, Source, Audio Lander and a number
of other partners that are in the mentioned in the
release to bring the current iteration. As we bring the
product to the market iterate, we will see whether we
(29:07):
can expand out further.
Speaker 3 (29:09):
But it does a lot of interest in eleven Labs
in your business to what stage have you grown? Do
you have any financial metrics ar R or anything you
can tell us about how it's going for you over there.
Speaker 13 (29:22):
We're doing really well as a company. A few months ago,
over half a year ago now, we crossed the one
hundred million ARR mark as a company and we've been
growing steadily since. Across the company, we have really those
two key offerings. The first one is that creative platform
which music will form those in those early and initial days,
and then the agendic platform where we help companies create
(29:44):
voice agent conversational agents. And over the last six months
we've just seen an explosion in companies building with both
parts of the use cases, both on the creative and
the agentic side. We're now partnering over a thousand different
companies in the market and over a five million creators
that come through the platform on a monthly basis.
Speaker 4 (30:02):
I want to go back to those creators because can
you name any individual musicians, for example, that are willing
to go this way? I think of how Grimes is
really lent into this and she wants a fifty to
fifty split with her royalties going forward. But what are
the musicians you're seeing actually wanted to adopt this, Because,
as I say, it is fraud.
Speaker 13 (30:21):
We are seeing a number of musicians in the space
that are keen to lean into the technology Iterate quicker
make it a little bit easier to create music. Currently,
as part of the eleven Music we are still crafting
the partnerships and will hopefully announce some of those in
the coming weeks. So I cannot name any on that
(30:43):
side just yet, but we've seen a wider set of
creators working with the tools to make it easier to
produce variations of the genres, make it easier to see
how the tracks can be produced before heading that production stuff.
Speaker 3 (30:58):
Maddy, there's a lot of intro seen you and eleven
Labs kind of fits the profile of this like vertical
model where it's a potential aqua higher target right. I
just wonder what you make of what's happening right now,
the windsurf scenario and whether you might consider doing something
that joining a bigger entity to continue your work.
Speaker 13 (31:21):
We are building generational company, are planning to go in
the pandemic and try to create and become the voice
of the technology, make computers speak, make information accessible across
voices like ross sounds across languages and now music. So
current default this to a create a company that can
that can create something special on its own, and we
think we can. So hopefully the opposite will be true
(31:42):
where we'll be able to acqui hire or acquire a
number of companies in the space on that path too.
To potential IPO in the future.
Speaker 3 (31:50):
Matty Sanderschewski of eleven Labs, thank you very much. Now
coming up on the program, and thirteen partner Brent Murray
joins us talk about the firm's new investment in the
generative AI advertising space.
Speaker 2 (32:03):
That's next. This is Winberg Tech.
Speaker 3 (32:17):
Venture firm M thirteen is just led a ten million
dollar seed round in generative AI advertising platform Context. The
startups now the largest and most well funded gen AI
ADS platform to date, according to M thirteen. M thirteen
partner Brent Murray's here to tell us more. This space
is dynamic, right because it's highly analogous with Meta. You know,
(32:38):
a lot of the story around Meta is how their
working AI improves AD pricing, ad impact that core business.
You are looking at a very different scale and early stage.
I'd just love to get a presentation of the thesis
and why this is an interesting domain within AI.
Speaker 14 (32:57):
Yeah, thank you Ed and Caroline as well for having me.
So we are excited to announce the coming out of
stealth of Context this morning. They're ten million dollar seed
round to really become the largest and most well funded
generative AD platform out there. And so to answer your
question our thesis on the space, Well, we see the
advertising world at a major inflection point, and I'm glad
(33:20):
you hit on meta. There's also industry incumbent Google that
have pioneered a lot of the previous waves.
Speaker 2 (33:28):
We believe the first wave came sort of.
Speaker 14 (33:30):
At the early two thousands when when Google pioneered digital
advertising as a space. Then shortly thereafter, a second wave
came in the twenty tens where social media platforms led
by Meta attracted new eyeballs, new audiences online, and ad
inventory exploded online.
Speaker 2 (33:47):
And we see this as a third wave.
Speaker 14 (33:48):
The one trillion dollar AD market, three quarters of which
is done through digital channels, is about to migrate towards
generative AI apps. You already see Open ai as the
fastest growing app of all time, closely getting to a
billion users. And it's not just them, they're just the
most well known. You have a lot of other generative
(34:08):
AI entertainment apps that are attracting audiences where context is
going to target them.
Speaker 3 (34:14):
What is context's core competency? What is it that they're
actually doing good at.
Speaker 2 (34:20):
Yeah, there are two things.
Speaker 14 (34:22):
One is real time ad creation and the second is
hyper personalized contextual ads.
Speaker 2 (34:30):
So I'll take those in pieces.
Speaker 14 (34:32):
The first one, similar to what Mark Zuckerberg is hinted
at where Meta is going, is end to end advertising creative,
where AI and llms are powering much of not just
the targeting of audiences online, but the actual creation of
the advertisement itself, the asset knowing what copy to use,
what style, what color the image, the video. So what
(34:56):
context has done is enable an AD to be created
in real time using an LM. If you are in
a chat bot, then your ad will be served up
to you in real time, which means you don't have
to have a lot of wasted time on the ad
creative a lot of manual processes creating thousands of iterations.
Speaker 2 (35:15):
So that's the first thing.
Speaker 14 (35:16):
The second thing is contextual hyper personalized. So in the
old world, if you're on social media, I think a
great example is my family and I just had a baby.
Any of your viewers know that the months leading up
to a baby, the months following a baby, you are
targeted ad nauseum by the social media platforms because that
(35:38):
is when you're most likely to purchase baby goods. But
what happens after you purchase the crib, After you purchase
the high chair. You're not going to purchase them again,
But hundreds of dollars are wasted on you as an
audience because they're targeting you as a demographic and a
social behavior. Take that as what context is doing is
very different. They are targeting advertisements based on your real
(36:00):
time queries into the LM. So if you are chatting
through a chatbot telling it what you're interested in, an
advertisement will be created in real time based on exactly
what you're asking.
Speaker 4 (36:11):
I kind of want to go to the regulatory or
unnerving part of this, because we're almost trusting these chatbots
more than say, the social media side of things. How
do I know the chatbot's not steering me during my questions?
How do I ensure that basically I'm not suddenly finding
the conversation being bent to certain direction because it wants
me a hooked in it.
Speaker 6 (36:32):
So we're worried about addiction process again.
Speaker 4 (36:34):
Or indeed forcing me to then bend my will to
end up buying something and perhaps I didn't need.
Speaker 6 (36:38):
How are we going to regulate that?
Speaker 14 (36:41):
Yeah, that's a great question, and I think the advertising industry,
because we're at this inflection point, we'll have to face
a lot of those questions right now, you see what
happened with social media platforms in the past. Consumers are
always hesitant to go on ad platforms like Meta or
Instagram and just be served at ad after ad after ad.
(37:01):
But then they become much better and influencers started talking
about things that you wanted to buy, and a lot
of advertisers and online merchants rely on some of these
ads to power their businesses to stay in business. I
think the advertisements in AI will have to follow the
same suit. You have to be able to trust that
the publisher or the chat bot isn't trying to steer
(37:22):
you in the in the right in the wrong direction.
That will lead to unnecessary churn. That's the last thing
that Context wants for their publishing customers. They want to
create seamless environments where you're having a regular chat.
Speaker 2 (37:35):
The ad will be.
Speaker 14 (37:37):
Promoted or shown in a way that you can distinguish
it from an advertisement versus non advertisement, that it's not
predatory or you know, going after you.
Speaker 2 (37:46):
In a certain way.
Speaker 14 (37:48):
But you'll you'll see a very very natural process where
the chatbots are feeding you up things that you already
want to see, already want to potentially purchase.
Speaker 4 (37:58):
Well, Google already doing that. In the third part, chatbots,
It's fascinating. Brent Marrying, We thank you so much for
your time talking about context. His partner over at thirteen. Now,
let's talk about how women are holding well then eighteen
percent of all partner and above rolls in venture capital.
Speaker 6 (38:12):
It's all according to data just released by All Rays Now.
Speaker 4 (38:15):
It's a nonprofit that aims to increase gender parity in
tech and VC, and it's saying that this is ahead
of its projected schedule. We spoke with All Raised CEO
Page Buckner about where that change can be seen.
Speaker 15 (38:26):
Most twenty percent of decision making roles at VC firms
with a billion plus and aom have women decision makers,
which is super exciting. And so when you think about
that stat what's important to us is that we're making
progress at scale. But we do know that at the
mega funds there are only three women holding managing partner roles,
and so there's a big opportunity for us to make
(38:47):
progress there.
Speaker 4 (38:48):
And they're the funds with more than ten billion in
assets under management. Go back to the data therefore, page
of what this means?
Speaker 6 (38:56):
Why is it?
Speaker 4 (38:57):
What is helping those that are managing in excess one
bay and make those decisions have more decision makers who
are diverse in thought.
Speaker 2 (39:06):
Yeah.
Speaker 15 (39:06):
So I think the first thing to ground ourselves in
is that there's so much data and we talked about
this last year that makes the case for having diversity
and decision making roles at any kind of organization, and
this is especially important in venture capital when they are
making decisions about the kind of innovation that we're going
to fund in the private markets and then eventually in
the public markets as well. So it's important for us
(39:27):
to stay grounded in the results, and we talked about
this last year. But what we know is that diversity
is an advantage because diverse teams consistently outperform. They also
better reflect where the market is heading. And one important
data point that we've been thinking deeply about is the
one hundred trillion dollars in wealth that's projected to move
into the hands of women by twenty forty eight, and
(39:47):
that's just going to reshape everything in the economy. But
as we think about venture capital in particular, we've been
asking what does that look like for LPs, what does
that look.
Speaker 6 (39:55):
Like for venture firms?
Speaker 15 (39:56):
What does that look like for the kind of innovation
that these women are.
Speaker 6 (39:59):
Going to be able to fund?
Speaker 4 (40:00):
So is the thought process here more money lands in
female coffers, They therefore want to work with more diverse
LPs or allocate the LPs want to allocate to more
diverse vcs, and they want to be putting money to work.
How does that reflect in the portfolio companies that then
these diverse bench capitalists and decision makers are putting money into.
Speaker 7 (40:23):
Yeah.
Speaker 15 (40:23):
Absolutely so we know according to our friends at Kaufman
that women vcs are two times more likely to invest
in women's CEOs at the earliest stages.
Speaker 6 (40:31):
And we know that there's opportunity there.
Speaker 15 (40:33):
And often these markets have been overlooked because they've been
perceived as niche markets. But what's great is that when
you bring in more diversity on the VC side of
the equation or on the LP side of the equation,
by the way, that is felt across the capital stack,
and then the kinds of innovation that we can have
on the start up side of the equation shift, and
so what gets funded then also better reflects than part
(40:54):
of me the marketplace, which is of course commanded by women.
When we think about the person of decisions around consumer
and healthcare and education that are made by women every
day for household across this country. So it is really
reflecting not just where the market is today, but where
the market is going to be. And we're thinking about
the products that are therefore reflective of the consumer that
(41:17):
vcs really want to be building for because they're going
to be able to get outsize returns.
Speaker 3 (41:22):
That was Paige Buckner, CEO of All Rays. Now coming
up investors, IAMD results after the closing bell, the latest
earnings expectations coming up next, and the analysis from Bloomberg Intelligence.
Speaker 2 (41:34):
Stay with us. This is Bloomberg Tech.
Speaker 3 (41:43):
AMD out with earnings after the bell, and investors are
putting increased pressure on the chip maker, expecting the company
to show benefits from the AI race. Here with more
Kungensavani of Bloomberg Intelligence, you put a number on this market.
In Vidia has ninety five percent of the market for
GPUs is AI accelerators. AMD has five percent. What do
they need to show us that they're making some ground?
Speaker 2 (42:05):
Well?
Speaker 16 (42:05):
This time around the non air things will be important,
PC gaining share, some maybe pair of pull in embedded,
coming recovery in three Q but as you said, the
second half AI ramp both in server CPU and GPU
will matter the most. They need to again show sustained
execution on the three fifty five ramp. There's a possibility
of the China series coming back and adding about five
(42:26):
hundred million to even more revenue in the second half,
and any visibility into the Helios which is the next
year server level REX solution, should be very positive.
Speaker 6 (42:35):
Where have they been executing really well?
Speaker 4 (42:38):
Because I feel like time and time again we're hearing
about the PC side of the equation, but the consumer
isn't too hot right now.
Speaker 16 (42:46):
Definitely, the ND markets are struggling, but they have been
really gaining share on CPU, both on the PC and
the server, which has really been helping them outperform even
the unit weakness in the market. Secondly, we have heard,
you know news about them raising prices both on the PC,
the service if you, and the GPU side. That really
speaks to the strength of their adoption across the board.
Speaker 1 (43:09):
Wow.
Speaker 4 (43:10):
Planning to watch out for in terms of size and
market application countri In Savanni on Bloomberg Intelligence some great
notes coming out ahead of these earnings, and we'll analyze
them after the Bell as well. That does it though
for this edition of Bloomberg Tech, and so much to
be digesting in terms of the market. It's the macro pressure,
but we look at AMD after the Bell in terms
of the micro perspective.
Speaker 3 (43:29):
Yeah, another day where chips are in focused because of policy.
Speaker 2 (43:32):
But like AMD, best.
Speaker 3 (43:33):
Performing chip stock so far this year, right, and they
have a lot of pressure on them. But it's an
interesting company to follow. Good analysis from Kunjan recap it.
As Cary said on the podcast, you know where to
find it.
Speaker 2 (43:43):
It's on the.
Speaker 3 (43:44):
Bloomberg terminal as well as online on all of those
great platforms Apple, Spotify, and on iHeart. From New York
City in San Francisco, this is Bloomberg Tech
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