December 15, 2025 • 41 mins
Bloomberg’s Caroline Hyde discusses AI anxiety bubbling during the last full trading week of 2025. Plus, ServiceNow closes in on a deal to buy cybersecurity startup Armis for as much as $7 billion, while Intel eyes AI startup SambaNova Systems. And shares of Italian football club Juventus jump after a bid from stablecoin firm Tether is rejected.
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and Eva Low in Sent Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up, Well Tech.
Speaker 3 (00:26):
As you can see, trades lower as AI anxiety kicks
off the last full trading week of the year, our investors.
Speaker 2 (00:32):
Doubling down or bracing for a pop.
Speaker 3 (00:34):
We discuss plus big deals in big tech with Service
Now and Intel in advanced talks to spend billions on startups,
and as stable coin Giant wants a soccer team, why
Teather is bidding more than a billion for Italy's Juventus.
Speaker 2 (00:49):
But first a check in on these markets. We want
to talk soccer, but we're talking what the markets are
up to.
Speaker 3 (00:54):
Under pressure by a quarter of percent on the Nasdaq
one hundred is you'll see, we're off of our lows
of the day, but still in the last full training
week ahead of the end of the year. Are people
taking some risk off the table? They're certainly taking risk off.
In the crypto space, we're down sub ninety thousand once again,
eighty nine and twenty four or off by another couple
of percentage points after a downdraft over the course of
(01:14):
the weekend. So the moon music again speaking to AI anxiety,
speaking to some nervousness.
Speaker 2 (01:20):
Around valuation is today's picture. But take a look at
some of the individual names. Service Now is off by
more than ten percent.
Speaker 3 (01:26):
Is maybe we still see companies spending in terms of
M and A. There is service Now potentially in talks
to buy cybersecurity Unicorn armists being reported over the course
of the weekend could valuate about.
Speaker 2 (01:37):
Seven billion dollars.
Speaker 3 (01:38):
That would be the biggest ever deal for Service Now
if these reports come true from Bloomberg, and indeed we
could see it just delving ever more deeply into cybersecurity.
Intel off by five ten percent as it too is
in advanced talks. We understand to buy an AI chip
start up that's sam Manova Systems for about one point
six billion dollars and.
Speaker 2 (01:56):
Tesla avan record high.
Speaker 3 (01:58):
Will we close this day at the first record for
Tesla since December twenty twenty four. The catalysts, well, we're
bush going more overweight on the stop once again. But
other than that, no clear fundamental driver that is what
we're looking at on the day. Let's look at just
the course of Chatchipat and since twenty twenty two, I
want to show you the growth of the nazdat one
(02:18):
hundred phenomenal up more than one hundred percentage points. It's
more than doubled, of course, but doubts about the AI trade.
Speaker 2 (02:26):
They're starting to grow too.
Speaker 3 (02:27):
Now. Bluebgg's market reporter Randalstelica could set us up for
what the end of this week, Anxiety is saying about
the belief in this one hundred percent rallies. It's November
twenty twenty two. Is it's Chatchybaut first burst onto the scene? Ryan,
We are having yet more and more concerns about the
valuations of the run up in certain companies.
Speaker 4 (02:46):
Hey, good morning, thanks for having me so. Yeah, a
lot of these concerns have been just sort of percolating
throughout the mark and every so often we'll see them
sort of, you know, e merge and we come go
to the forefront.
Speaker 5 (02:56):
That is sort of what we're seeing right now.
Speaker 4 (02:57):
It does seem like there is a lot more skeptics,
as a lot more caution about valuations, about growth prospects,
about when we are going to start seeing a more
pronounced return on all of this AI spending, and maybe
just because it's sort of like the end of the
year people are looking to close out their books. Maybe
people are taking a reassessment right now of all the
big games that we've seen in a number of AI
(03:19):
stocks and just sort of considering where they might be
going in twenty twenty six.
Speaker 3 (03:24):
I mean, there really is some of the most read
stories throughout the course of the weekend, and indeed on
this day is the one that Wall Street sees AI
bubble coming and is betting on when it pops, if
indeed it does. The eye of the storm of in
companies like Oracle, even in Video, which has been the
pin up for this year and still remains so in
terms of a twelve month training basis, but of late
has taken a hit to market capitalization. Are there any
(03:45):
particular areas that we're seeing the most pain right well.
Speaker 4 (03:48):
One interesting theme that we wrote about I think about
a week ago is sort of a consolation of stocks
that are more associated with open ai as opposed to
the ones that are more associated with alphabet And for
much of this year, any company connected with open ai
saw pretty strong stock gains. A lot of companies rallied
when they would announce deals with the company with the startup,
(04:08):
and now we are really seeing that reverse. There's a
lot more skepticism about is open ai going to be
able to grow fast enough in order to meet all
of these sort of deals and obligations that it's announced.
As skepticism around that has grown, you have seen companies
connected to open ai stort to really come under pretty
pronounced weakness. You mentioned Oracle, but also in the sense Microsoft, Nvidia,
(04:31):
Core Weave, companies like this, Whereas companies that are more
connected to Alphabet and Jim and I, which is currently
seen as sort of the stronger AI play, those companies
have been doing, you know, continuing to hold up in
a lot better fashion.
Speaker 3 (04:45):
Ron Vastedika, You're continuing to write upon all of these
themes as we.
Speaker 2 (04:50):
Tie up twenty twenty five. Fantastic to have you kick
off the show. We thank you. Let's keep this discussion going.
Speaker 3 (04:55):
Let's delve a little bit deeper into the signals in
the economy what that's doing in terms of trickling into business.
Nothing Gallagher's with us principal economists and director at Board. Now,
that's an aipowered enterprise planning platform. You provide macro analysis.
You provide strategic guidance to global companies on business investment,
on economic policy. And what's really interesting is you're sort
of telling us and pointing towards your expertise, showing that
(05:16):
twenty twenty six is really going to be a prove
to me moment.
Speaker 2 (05:20):
Right.
Speaker 3 (05:20):
For twenty twenty five, it's been about picks and shovels
and infrastructure. Twenty twenty six, we need the economic upside,
We need the productivity gains.
Speaker 6 (05:28):
Yeah, absolutely, I mean so far right, we've had really
broad based adoption of AI, about fifty five percent of
American workers, for example, say that they're utilizing AI. We
haven't seen it translate into the productivity numbers, right, And
this isn't just with the government data. It's also with
private studies as well, in university studies as well. So
as we get into twenty twenty six, to really validate
(05:48):
the underlying fundamentals, we're not only going to have to
see that breadth, we're going to have to see really
meaningful depth of adoption as well.
Speaker 3 (05:56):
Natalie, When you're pouring over the data, what is the
data that we're going to need? Is it going to
be the earnings of healthcare companies in financial institutions that
actually start to see margin improvement because of AI adoption.
Speaker 2 (06:07):
How do you get that? Tell?
Speaker 7 (06:09):
Yeah?
Speaker 6 (06:09):
Absolutely, I mean the first place we'll probably see it
as in earnings release, right, The government data often lags behind.
You know, We've seen a lot of earnings releases where
CEOs have said, hey, we're utilizing AI. We're seeing these
productivity gains. At the same time, we're not seeing them
show up in as meaningfully as a way as we're
going to need to really justify the valuations that are
(06:30):
out there, really confirm right that we are seeing that
productivity growth or that return on the transformational promise of AI.
Speaker 3 (06:38):
What we have seen show up is the AI investment
numbers driving GDP figures. Many would say that basically twenty
twenty five's economic growth entirely hinges on a few big
names in tech making some extraordinary big investment plans. How
wide could the economic shakeout be if indeed we did
see a pullback and a questioning of productivity.
Speaker 6 (07:01):
Yeah, I mean it could be really significant, right, twenty
twenty five AI spending, CAVIX spending, it's really served as
a macroeconomic stabilizer a macroacademic anchor, even as we've seen
other parts of the economy really meaningfully stagnate. Right, It's
really been this promise that's continued to lead growth to
not only deliver but really surpass expectations in twenty twenty five.
(07:25):
And that's definitely true, right, it continues to be an
anchor in twenty twenty six. So if we see a meaningful,
meaningful pullback, if we see AI not deliver and sort
of that translate or cascade through the economy, I mean,
the economic implications are really really broad based. Well, outside
of tech, how.
Speaker 3 (07:42):
Broad based do you think the economic implications have been
of China and US and this technology war? Really we're
seeing at the heart of it, how much has that
implicated US businesses?
Speaker 2 (07:54):
And in the longer term do you.
Speaker 6 (07:55):
Think it's been fascinating?
Speaker 8 (07:58):
Right?
Speaker 6 (07:58):
Because US businesses, even with sort of this this headwind
of overall trade uncertainty back and forth with China, they've
really continued to deliver.
Speaker 7 (08:08):
And so that's really positive to see.
Speaker 5 (08:10):
You know.
Speaker 6 (08:11):
On the other hand, right, if we do get more
and more to coupling with China, the economic implications are also.
Speaker 7 (08:17):
Broad based there as well.
Speaker 6 (08:18):
We have a reduction in revenue translates to a reduction
in R and D, and so of course the economic
implications based on what direction we take can be. They
can be quite extensive. Now, at the same time, if
it leads to sort of a benefit when we look
at the competition dynamics, then maybe it's a little bit
of a win win for the US.
Speaker 3 (08:39):
What's interesting is while we've got perhaps a questioning of
valuations in the market, some still manage to rise on
absolutely no fundamentals at all. And Tesro is currently maybe
closing in yet new record high.
Speaker 2 (08:51):
The first one is be seen since December twenty to
twenty four.
Speaker 3 (08:54):
Now, maybe that's a bit of moon music coming from
an extraordinary valuation being given to the private company that
is Space Sex elsewhere in Ela Musk's realm, Natalie, what
you think about some of the froth in the area
is particularly in the private area.
Speaker 7 (09:08):
It's been really interesting to see.
Speaker 6 (09:10):
Right, whenever you know, as an economist, what I look like,
what I look at is cashields, right, and whenever we
end a rate cut cycle, or you know, debatably end
a rate cut cycle like we are right now, cashields
become less attractive. And what we need to really carefully
watch is are we seeing meaningful investment in actual infrastructure
and that's what's really driving these these extremely high elevated.
Speaker 7 (09:36):
Excuse me, these elevated.
Speaker 6 (09:37):
Valuations, or are we seeing investors go towards alternative investments
because cashields are quite quite impacted, and so we're going
to really need to see these valuations be meaningful, right,
We're gonna need to see that the proof is in.
Speaker 2 (09:52):
The pudding that it is worth eight hundred billion dollars.
Natha Gallagher with the macro and the micro for us,
We so appreciate to principal economist at Board. Now coming up,
Juventus shares. Have you been watching them?
Speaker 3 (10:05):
They are rallying after excell rejected and unsolicited takeover bid
from cryptogiant Tether bagg into that one plus Netflix makes
its case for Warner Brothers after Paramount, of course, goes
public with its own hostile offer. What did the co
CEOs manage to say? This is Bloomberg Tech shares of
(10:41):
Italian football club Juventus. You might call it a soccer club,
I call it football. When they jumped after crypto company
Tether made a take of a bid for one point
one billion euros about one point three billion dollars now.
The offer was swiftly rejected by the holding company of
the Agnelli family, which owns a controlling stake in what
is one of Italy's most.
Speaker 2 (11:00):
Distinguished football clubs.
Speaker 3 (11:01):
Let's kept more on all of There's a Brembag editor
in Milan, Tomaso ev Haart fascinating this family.
Speaker 2 (11:07):
The Agnelly family.
Speaker 3 (11:08):
Have held a controlling state for years in this team
and indeed earned Ferrari and other big auto sectors. But Tomaso,
what does Tether have in terms of its game plan.
Speaker 9 (11:21):
It's a very fascinating story here from Italy, you know,
is like new money versus old money. Interesting enough, Tether
founders are originally from Turin, the city where you went
to was born and they support you went to, so
they started as a fan. And Ardoino, the Sea of
(11:42):
Tether told us in a interview a few months ago
that he has been a fan of You Wentus forever
and Tether both a ten percents taking You went to
a few months ago was the first football team where
a kip cryto a company in both a significant state.
They also have a board seat in a U went
to and how they arrive with the bid Friday night
(12:04):
for the controlling mistake to the Annually family, italy most
important industrial plan. But the Elli family said no, no, no,
no way. We're not going to sell to Teta. We're
not going to sell to anyone. Juventus. They've had Juventus
far over a century. So so far no news but
shares move. They didn't get up to the level of
(12:27):
the price offered to the annially, but there was more
than fourteen percent today in the in the Italian market
in a very difficult moment on the pitch for Juventus.
They're not doing that greater this year.
Speaker 7 (12:39):
Yeah.
Speaker 3 (12:40):
Is that the argument coming from these lifelong fans that
tether that they could in some way manage the business
of football or soccer better.
Speaker 9 (12:51):
That's a good question. For sure. They have a lot
of cash and in the bid they said we're also
we're also ready to invest one bid euros in a Juventus.
But this is not enough for the Annealist. Saturday afternoon,
John Elkin made the video. John Elka is the leader
of the Anneally family nowadays, made the video online say
(13:14):
you know, we have defended the Juventus value for over
a century. We want to stay close to Juventus. We've
been with Juventus in the bed and in the good
times and will stick with the data. Interesting enough, is
a very delicate and sensitive moment for the Anially family.
Why because they are reshaping their portfolio. You know, they're
(13:34):
the biggest investor in the Lantes. The automotive industry is
facing a disruptive moment generally have sold some assets recently,
including their truck company Iveko to Tata in India. They
are now in talks to sell the media asset in
Italy to a Greek company. So there's a lot of
interest and also a lot of political debate on what
(13:56):
the Annually families are doing with their Italian holdings.
Speaker 3 (14:00):
Yes, some pushback against Greece's Antenna Group for wanting to
have that Italian asset.
Speaker 2 (14:04):
Meanwhile, Tedther's been investing in plenty of Italian assets.
Speaker 3 (14:07):
It looks like more across the board, whether it's genomics
companies or even in media companies as well. Tomaso is
so great catching up with the Snaks, staying a little
bit late in Italy. Tomaso Ebhart there from Milan. Look,
let's pivot into a different world of entertainment now. The
co CEOs of Netflix, they've been making their case for
requiring Warner Brothers Discovery to their own employees. Let's get
(14:28):
the latest with Bloomberg's entertainment editor Lucas Shaw, who's been
across this M and A story that is just fueling
everyone's attention in Hollywood at the moment. So what is
it that the co CEOs can put across their employees
to calm their own nerves.
Speaker 10 (14:42):
It was a Q and A of sort. They first
of all stated they're the rationale for doing the deal,
and then tried to address some of the five, six,
seven biggest questions that there are out there. You know,
is this going to kill Hollywood? What do they think
of the paramount hostile bid? Do they actually think they
can get this deal approved? And the kind of the
big one about movie theaters. It was as much for
(15:04):
the public, I think as employees. You know, they put
it in a filing so that the world could see it.
They've obviously been keeping their employees apprize to the best
of their ability over the last couple of weeks, and
the ones I've spoken with have said it's been pretty
status quo at the company.
Speaker 3 (15:19):
Meanwhile, of course, what we'll wait for In the entertainment
world on a Sunday is your note to drop of
screen Time and lucas you've been writing in particular about
amid all of this fury about concern about consolidation in
the sector, is also AI, which is looming large in
many executive's head and employees.
Speaker 2 (15:37):
What do you make of the AI threat right now?
Speaker 10 (15:40):
Well, Hollywood is is very conflicted, you know. You see
certain filmmakers come out and say I've interviewed a couple
of them and say it's the future. We might as
well figure out how to use it and integrate it
into our workflow. And then there are others like Germo
del Toro and Ryan Johnson who basically said they'd rather
(16:00):
than use AI or that they will do anything that
they can to stop it. You saw a very strong
negative reaction last week when Disney announced a deal with
Open Ai, where a lot of the unions and a
lot of workers wondered what the company was doing.
Speaker 2 (16:14):
Well reading it with interest.
Speaker 3 (16:16):
It's also featured in Business Weeks the Year Ahead for
twenty twenty six. Go look at it. Grapple with the
future of Hollywood. All Things AI from Lucashaw thank you
very much for keeping us up to speed. Meanwhile, President
Donald Trump's knew one hundred thousand dollars fee on h
one b hires and it's set to deliver the biggest
blow to it outsourcing and staffing companies. According to analysis
done by Bloomberg, businesses like Tutter, Consultancy Services, and Emphasis,
(16:41):
they're likely to be hit harder than say US tech
giants like Amazon and Google, but still all impacted. Let's
dig into the broader impact with Hibbert Anvia. She is
a partner at ericson Immigration Group, working around the clock
on issues such as this. I'm sure, and the context
is companies that take the financial hit, but also state
that tried to push back on it. And the latest
(17:01):
is that we understand a group of states are actually
suing to block this in particular. Do you think that
that's going to gain any traction.
Speaker 11 (17:11):
I do think that it's going to gain traction because
what the states are doing that's different than some of
the lawsuits that have already been filed is they're making
a legal argument based on their specific state economies, which
I think is a really important argument because it goes
directly against the claim that a lot of opponents to
the H one B visa have that the H one
(17:31):
B visa is actually harmful for the US economy. The
lawsuit that was filed by California and the nineteen additional
states essentially argues that this one hundred thousand dollars fee
is going to worsen labor shortages within other important sectors
that exist within the state economy by making it more
difficult to fill spots for occupations that are already experiencing shortages,
(17:52):
such as physicians or researchers or teachers nurses, for example.
And so I think that this lawsuit puts states in
a position where they can actually show harm in a
way that's more effective than some of the lawsuits that
have already been filed.
Speaker 3 (18:06):
Their argument is that no presidential administration can rewrite immigration law.
Speaker 2 (18:11):
Is what they're taking.
Speaker 3 (18:12):
And I think it's the third challenge at least that
we've seen to this particular fee increase. But on the
flip side, the president and the administration would say we
need this fee because H one B is being abused.
Speaker 2 (18:23):
What evidence is there for that? From your perspective, hire.
Speaker 11 (18:27):
I think the more important evidence is when you take
a look at the H one B filing process in
and of itself, it actually has several checks and balances
that are already built in to ensure that the H
one B visa is not being abused or misused in
any way. And in particular, one of the core components
of filing an H one B visa is to be
(18:47):
able to demonstrate back to the government that the filing
of this visa is not going to displace a qualified
US worker. So I think that what's more important to
focus on are the checks and balances and the safeguards
that are already in place for the HI visa to
prevent the fraud and misuse, because the highly restrictive policies
(19:07):
for folks that are actually proponents of the AGE one
V visa create a new category of risk, which is
that this is actually going to hamper and diminish the
American innovation and the US companies leading the charge on
global innovation.
Speaker 3 (19:22):
Now we take it to another extreme, and what's interesting
is there's actually blowback not coming from Democrat states who
are suing, but actually conservative lawmakers who are saying that
in some ways Trump is supporting yet more legal migration
and immigration into the country. They're criticizing President Trump for
supporting more visas in particular to allow the entry of.
Speaker 2 (19:45):
High skilled foreign workers.
Speaker 3 (19:47):
Is there any mounting fervor around this that you're hearing
him or something that companies are worried about that names
like Republican Chip Roy would actually manage to prevent legal
immigration at this time.
Speaker 11 (20:01):
I think, you know, I think that the concern in
the industry is more so based on the data. I
think that we're far out enough from the beginning of
the year to be able to actually measure the data
in an effective way. And I think that what we're
starting to see is US companies starting to grapple with
the decision about whether they want to continue to invest
(20:21):
in other countries where the talent, the high skilled workers
in particular, are more inclined to go as opposed to,
you know, the talent that may be a little bit
more concerned about staying here in the US. So said
another way, I think the concern in the industry is
whether some of these larger companies are going to choose
to offshore, for example. And another really important component of
(20:44):
this is a lot of the folks in the industry
are actually specifically watching how other countries are responding to
some of these more restrictive immigration policies, you know, namely,
you know, China and Canada being some top examples. And
for example, you know, Kina recently released the Cavisa for
Global Tech Talent, which is specifically aimed at attracting international
(21:06):
tech workers, and that was done in direct response to
the US tightening its immigration policies and this new hundred
thousand dollars fee. So what I think the concern is
here is whether the talent is going to be incentivized
to choose another country, whether other countries are going to
be more inclined to have more open immigration policies in
an effort to try to attract that high skilled talent,
(21:29):
and what that eventually means for the global success of
US companies.
Speaker 3 (21:34):
We got thirty seconds. Is it big companies that hurt
the most Tehiba or is it smaller ones?
Speaker 11 (21:40):
So it's usually the larger tech companies in particular that
garner the most attention. But you know, it's also important
to point out that when it came to first time
H one B visa petitions for employment in fiscal year
twenty twenty five, over twenty eight thousand companies filed at
least one, and so what that data implies is that
the companies that are benefitting from H and D visas
(22:01):
are actually, you know, very diverse in terms of profile.
Speaker 2 (22:05):
Leave it there hither, We thank you very much, hibbah
Anva from Erics and Immigration. But let's talk more broadly
about the world of technology and how it's implicated by
well geopolitics.
Speaker 3 (22:14):
China, in fact, has just started to grant licenses with
lengthier terms that would allow European companies to obtain critical
rare earths. That's what according to eutop trade official Maroszebkovic.
Blimog's Oliver Crook sat down with him earlier today.
Speaker 2 (22:29):
Just take a listen.
Speaker 12 (22:31):
I think we are getting initial reports from our industry
that they are getting these general licenses, but we need
to have a little bit more granual information to evaluid
the whole process. But the fact that this idea was
favorably received, that it seems that we are getting first
general licenses, and also that the Chinese side was receptive
(22:55):
to our arguments that the processes it was set up
in April it required too much of what's a very
intrusive information, too many photographs, too much detail about the
supply chains, and I think that the general licensing could
be could be one of the solutions out to address
this issue.
Speaker 3 (23:14):
What does this mean about global access to rare We
can talk about that with Bloomberg Senior Tech editor Mike Shephard,
because this is a fascinating read. Across to the US,
Brussels had been really worried about a choke point bottlenecks
brewing that would implicate to such a degree vital industries
the German carmakers. But similarly those choke points and bottlenecks
here in the United States too.
Speaker 13 (23:36):
Well, that's right, Carol. There are so few points of
common ground when it comes to trade for the EU
and the US these days. But access to rare earth
actually happens to be an area where they share this concern.
And that is because each side they see their companies
their economies so dependent on China for access to these
(23:56):
critical inputs to all sorts of technology. It is not
just the advanced tech that we talk about so much
on this program, semiconductors and other things. It also goes
into defense equipment, into automobiles, into solar arrays, really into
a little bit of everything. And China owns the lion's
share of not only the deposits, but also the refining
(24:16):
and production of it. So for the EU to say
that it is seeing some glimmers of hope in being
able to access these rare earths on a wider basis
signals perhaps some progress Caro in this year long, nearly
year long fight with China over access to these critical minerals.
Speaker 3 (24:35):
Bring us up to speed on that fight and the
access because I think it was just last month in
November that President Trump and Chigenpeng came to some agreement
around access to Rara metals and materials. But they're still
dependent on this April licensing agreement.
Speaker 13 (24:50):
Right well, absolutely, And what we're hearing from Ariseefkovich is
that the Chinese may be more inclined to grant what
are called general licenses. And this is a keyword that
he used in that interview. It's not just a license
for a one time shipment of a critical mineral, let's
say gallium or something else used in night vision goggles
(25:14):
or something along those lines. It's a general license that
would allow for a longer period of time for repeated
shipments to pre approved buyers. And that would really speed
the plow for companies in the European Union and the US.
And this is what both sides have been agitating for
from China, and it's a key part of the trade
truth that was reached between President Donald Trump and Hijianping
(25:36):
at the end of October. It took effect in November,
and it is really something that US officials are watching
closely from and they will be hearing from US industries,
especially the auto industry, which has expressed the most concern
over Beijing's control over this and the bottleneck that they
really began to see in April when authorities in China
(25:57):
began to tighten the export controls there. So we'll be
watching to see what the signaling is from US trade
officials and whether they're seeing similar signs of progress.
Speaker 3 (26:07):
Bluemegs Mike Sheppard, we always appreciate you, Thank you very much. Indeed,
now talking a bottlenecks, surging electricity demand, driven in many
ways by AI data centers, is highlighting the need for
more power in the United States and antique.
Speaker 2 (26:20):
Globally, there's some good news on the tap in twenty
twenty six. The nuclear industry.
Speaker 3 (26:25):
It's poised to turn on fifteen reactors worldwide, but that's actually.
Speaker 2 (26:29):
After a dropping capacity this year.
Speaker 3 (26:31):
Let's break it down with bluemgs wild wide covering energy, climate,
and all things nuclear. Will I'm surprised the talk, the
hype has been there in twenty twenty five, but not
the reality.
Speaker 2 (26:41):
There's actually been less nuclear capacity.
Speaker 14 (26:43):
Yeah, we're going to lose about a gigawad of nuclear
capacity worldwide this year. We're going to have two reactors
that came online and seven older ones got shut down
in different parts of the world. I think the quote
that I've heard this year from one of my sources
that sums it up the best is like everything's happening
and nothing's happening.
Speaker 5 (27:03):
Because the thing about.
Speaker 14 (27:04):
Nuclear and my editors, you know, that drives them crazy.
It happens really, really, really slowly. So there are sixty
sixty two reactors under construction worldwide around the world. They're
going to start coming on in big waves next year.
We're going to get like ten gigawatts capacity next year,
(27:24):
a ten more the year after that, close to ten
the year after that. So there's a lot coming, but
there's not a lot coming on right now.
Speaker 3 (27:34):
Just how important is the actual sourcing of power, the
idea of nuclear being that energy and climate friendly version
of so doing, particularly plugging into data centers, or at
the same time, is electricity in the needs of it
being hampered by just resiliency in the grid. There's a
great story out by your colleagues today, another fifth story
(27:57):
on bottlenecks, really looking at a series of obstacles slowing
down the transition to a cleaner, more electrified future. And
they're already signaling out the issues that we face in
terms of just the.
Speaker 2 (28:05):
Electric grid in experience and congestion there.
Speaker 14 (28:09):
Yeah, the grid is another huge issue all to itself.
The ability to deliver the electricity is you know what
happens with the grid, and connecting to the grid takes years.
You have to go through all kinds of permitting so
you can plan your nuclear power plant, and it still
takes years to get a connection to it. We're going
(28:30):
to have three Mile Island come back in the service
in twenty twenty seven.
Speaker 5 (28:34):
That's actually a year ahead.
Speaker 14 (28:35):
Of schedule, and it was supposed to be twenty twenty eight,
but they managed to get a grid connection sooner. The
work to get it ready was always going to take
until twenty twenty seven, but they managed to get the
local grid to hook that up earlier, so that's going
to come faster. But grid connections are a big bottle dick,
not just for nuclear, for any new electricity.
Speaker 2 (28:57):
I'll put Will Wade great analysis.
Speaker 3 (28:59):
Thanks for talking us through it on all things nuclear
and more broadly energy adoption. Now coming up, we're going
to be discussing the future of drug discovery powered by AI.
We are discussing it with Chai Discoveries, Josh Meyer and
Elena vibe of General Catalyst.
Speaker 2 (29:14):
There's a new funding round.
Speaker 3 (29:15):
It's making a unicorn. This is Blomberg Tech CHAI Discovery.
It's an AI drug discovery company backed previously by Open Ai,
(29:37):
and it's just raised another one hundred and thirty million
dollars to scale compute, to scale talent, the goal to
build a quote computer aided design suite for molecules. CHI
Discovery co founder Josh Meyer joins us now along with
Elena Vibock, who is General Catalyst Managing director.
Speaker 2 (29:54):
You co led the round with oak HCFT, so I
go to you first. Josh.
Speaker 3 (29:58):
Congratulations, this is just three months after you did a
series A. Why are you doubling down and what is
the money being usedful?
Speaker 15 (30:06):
Well, first of all, thanks so much for having us here.
It's a really exciting time for the company. We're coming
out of this year with a series of research breakthroughs
where we've now shown that we can use AI to
design molecules that we never even thought was going to
be possible. So really using this money to double down
on that research agenda. The model showed no signs of
double of slowing down, and then also really growing the
(30:27):
team and starting to take these models and start deploying
them really at scale and starting to create new molecules
that again we never thought would have been.
Speaker 5 (30:35):
Possible to create.
Speaker 3 (30:37):
Elena, it feels like this is a relatively pivotal moment
in AI's push forward on drug discovery and on healthcare
more broadly. You're someone who invests in life sciences. What
is it that made CHI stand out that you thought
it needed follow on money just three months after a series.
Speaker 16 (30:54):
A Absolutely so CHI stood out because twenty twenty five was
the year of AI discovery, and which I allows you
to do is understand and predict the interaction between molecules
to design and develop new medicines and The reason we
invested now is because we believe.
Speaker 17 (31:14):
Twenty twenty six will be the year of deployment, and
pharmaceutical companies that adopt this technology will absolutely leapfrog those
who do not. And it's a moment where medicines that
could not be discovered any other way will now be discoverable.
Speaker 2 (31:31):
And the aha moment in many ways was following the
release of Chai Too. Josh tell us why that was
so important.
Speaker 3 (31:38):
The latest antibody generation model that you released, and I'm
sure suddenly had a load of inbound calls on the
back up.
Speaker 5 (31:45):
Yeah, so, of course this is our Series B.
Speaker 15 (31:47):
But if you look back at our Series A, we
told our investors that over the next two years or
so we would try to reach a one percent success
rate on this antibody design task, meaning that one percent
of the molecules coming out of our models would function
lab We thought that'd be a breakthrough.
Speaker 5 (32:01):
Moment of the field.
Speaker 15 (32:02):
But a couple of months ago with Chai Too, we
actually announced that we could do this with about a
fifteen to twenty percent success rate. So I think really
leapfrogging again what even we thought was achievable in the
past year or so so that's really been I think
a big moment for the field and now moving us
away from just research curiosities into models that are really
(32:23):
useful for actually discovering drugs.
Speaker 3 (32:26):
Elena, that's sort of mind blowing for many who aren't
in the weeds on life stimes as much as you are,
that there is only a one percent that a one
percent hit rate was going to be really tangible for
the field, and let alone fifteen to twenty percent. Talk
to us about what have been the limitations thus far
in drug discovery in labs for pharmaceuticals and what this
changes in terms of AI.
Speaker 17 (32:49):
Absolutely so, when researchers try to make a new model
a new molecule, it's essentially searching for a needle in
the haystack. It happens in a lab. There's a lot
of very ability and it's really challenging. That's why even
though we've seen breakthrough medicines and many people benefit from them,
there are still lots of areas where people get sick
(33:09):
and have no options. What Chai has done is show
that they can design computationally medicines that have over an
eighty five percent success rate in achieving.
Speaker 7 (33:22):
Basic drug like properties.
Speaker 17 (33:24):
There's additional research to do, work to be done that
takes a drug from the computer into the lab, into people,
into clinical trials. But there's been a longstanding hype around
AI for drug discovery. And now when we meet pharmacutical
executives and they meet Chai, everyone says this is the
(33:44):
year of deployment. Now these models work in a way
that they will actually contribute to new medicines that make
it to patients.
Speaker 3 (33:52):
And of course, Josh, you've previously been bat by Thrive Capital,
MENO Ventures. Open AI has been a strategic investor and
a price you used to work. But with General Catalyst
and with Oak on site, I'm sure those meetings with
pharmaceuticals come more thick and fast. But what more is
the money being put towards When you talk about scaling
this project?
Speaker 2 (34:11):
How much compute do you need and how much you
need to invest in GPUs as well.
Speaker 3 (34:15):
As the engineers and the fierce talent walls to get
the right people in the door to build the models too.
Speaker 15 (34:21):
Yeah, well, I'm thrilled to be working with General Catalysts
and OK, here you know this ground is actually about
a lot more than the money. You know, you bring
together some of the top investors in this space in healthcare.
If you look at the folks joining our board, Annie
Lamont and Himant Nasa, these are investors who have been
my dustless healthcare investors, really plugged into the pharma space.
We're here with Elena as well, who's just such an
(34:43):
incredible thought partner and really building out the business so
the capital is going to work. Among all the things
that you mentioned, we're really putting an astronomical amount of
these costs into compute. We're trying to turn compute into
better into better molecules. We run a ton of live
experiments to really test whether the models work in the
real world, and we're doing a lot as well in
order to start deploying these models, building the right kind
(35:05):
of software tooling in order to build this computer aided
design suite for molecules.
Speaker 5 (35:10):
There's the talent wars as well.
Speaker 15 (35:12):
I'm very, very grateful to be working with some of
the top folks in the industry here. When we started
the company, we actually brought together a number of heads
of AI from top ei drug discovery companies, and we've
only continued to build out an exceptional team here.
Speaker 5 (35:24):
We're a small but mighty team.
Speaker 15 (35:25):
But we're really putting this to work in order to
turn science from a scientif biology from a scientific discipline
into one that looks a little bit more kin to engineering.
Speaker 3 (35:36):
Yeah, Elena for the sort of great line that basically
there's been a lot of hype around AI and how
it will be applied to healthcare. But what do you
think helps cut through to those who are layman to
a lot of the real details and data being shown
in this that we will see productivity gains, we will
see real deployment in twenty twenty six.
Speaker 2 (35:56):
What's your hope as to what this looks like next year?
Speaker 17 (36:00):
Well, I think for next year the hope and I
think pretty strongly the reality is that pharmaceutical companies will
be able to discover medicines more efficiently. So Josh mentioned
there's a lot of compute going in that's really on
the research side. What's incredible is this technology is efficient,
It is helping people discover medicines, and to me, the
(36:22):
most important thing that lay people will see is when
we use these tools, we can discover medicines that take
advantage of known biology and impossible chemistry. You could not
make the molecule you could not make the medicine without
using this technology, and what people will see are medicines
that are curative that would not have been discovered any
(36:45):
other way. And that's where lay people will really see
the benefit is in medicines that have impact on their lives.
Speaker 3 (36:53):
Try Discovery investor Elena Viebok there from General Catalysts, and
Try Discovery co founder Josh ma It's been great speaking
with you both.
Speaker 2 (37:01):
Thank you very much, indeed for joining today.
Speaker 3 (37:03):
By coming up, take a look to the shares of
Service Now and Intel, both under pressure, both in talks
to buy startups. We'll talk about those potential deals next.
This is Bloomberg Tech. It's time now for talking tech
(37:28):
and first up. Rumba maker I Robot, of course, is
filed for bankruptcy and proposed handing over control its main
Chinese supplier, Sheens and Robotics. Under the proposed Chapter eleven plan,
the company's common stock will be wiped out. Plus leadership
and McKinsey is discussing potential job cuts, reducing roughly ten
percent of its head count across non client facing departments.
(37:50):
This coming as its revenue growth has flatlined over the
past five years. Now McKinsey spokesman said that we are
operating in a moment shaped by rapid advances in AI
that are transforming business and society and Service Now, but
it's closing in on a deal to buy cybersecurity startup
Armies for as much as seven billion dollars according to
people familiar with the talks now. The stock is under pressure,
(38:11):
as you can see after analysts at Key Bank cut
their waiting to underweight this morning, citing mounting threats also
from artificial intelligence. Let's just dig in on that particular
deal on the talks on Service Now, but also other
deals being eyed in tech, including Intel's potential plans to
buy AI startups and Manova Systems joining us to discuss
all of this as Bloomberg's Ryan Gould covering M and
A and as ever a busy weekend for you covering
(38:34):
M and A, Ryan, talk about Service Now first and foremost,
why does it want this Israeli based cyber company Armists?
Speaker 2 (38:40):
What would it help it do?
Speaker 8 (38:43):
Thanks, Jeron, and I think it's an interesting time to
be serviced now. You'll note that they just acquired announcedllly
this month in acquisition for a company called Vezza or Vetza,
depending on how it's pronounced. I think that was worth
about a billion dollars for the security and risk portfolio.
I think this really drives home the idea that you
need to be ready for us for an enterprise, the
size of service now for potential threats, potential attacks of
(39:04):
the you know, in the age of AI, this is
a massive growth area across the street. You've seen quite
a few other sizable cyber deals this year, including cyber
Arc being bought by parallel to Networks. Big enterprise is
Microsoft Google. I mean, look at Google Whiz paying thirty
two billion dollars for what is sustensibly a threat detection
and enterprise is management business as one of the biggest
(39:24):
MNA deals of twenty twenty five. So I think this
is really driving home the point that AI and security
go hand in hand.
Speaker 3 (39:32):
They go hand in hand, and also AI is fueling
M and A in other parts of the industry. I
mean Intel lipbutan the CEO of Intel is also on
the board of a startup that you report.
Speaker 2 (39:43):
Might be being eyed as well by the company.
Speaker 8 (39:47):
That's correct. I think you know this what this acquisition
would be seen as lipbutan sort of you know, doing
a full circle ride almost Flipbutan, the CEO of Intel,
was at one point the executive chair of san Manova,
his VC fund, and Walden Internationals one of the founding
investors of zan Manova. Sambernoma makes custom AI chips, the
type which, if if all were to go well, could
(40:08):
potentially arrival in VideA and AMD in that market space.
For Intel to get a hold of this, I think
this would be seen as liputan, you know, really putting
it Intel in the mix in AI, having an AI
platform to go and talk about in front of other
AAI enterprise customers like Dell and so forth. This would
be a big deal for them.
Speaker 3 (40:29):
It will be, and it's pressuring both stocks today, particularly
Service now some billion would be the biggest they've ever
spent bliue Begswan Gold. With all the reporting across quite
the wave of M and A, it's going to be
a big blocks bluster twenty twenty five if you're looking
at the numbers.
Speaker 2 (40:42):
But it's also a blockbuster day, it seems for Tesla.
Speaker 3 (40:45):
Quick check on the markets here and Tesla is your
lead performer in terms of about four point three percent in
many ways driving it to potentially a new record high.
At the moment is the biggest move since December twenty
twenty four and one point.
Speaker 2 (40:57):
If we hit four eight one spot.
Speaker 3 (40:59):
Sem six, we could be the highest is June well
on record for the company. So keep an eye on
Tesla as it continues to outperform in the Magnificent seven names.
Speaker 2 (41:09):
But that does it for this edition of Bloomberg Tech.
Speaker 3 (41:11):
Do not forget to check out our podcast. You can
find it on the terminal as well as online on Apple, Spotify.
Speaker 2 (41:17):
And iHeart.
Speaker 3 (41:18):
We are here throughout the build up of the last
trading week, full trading week where we still question some
of the AI valuations. Tune in throughout. I'm life from
London today, back in New York tomorrow.
Speaker 2 (41:31):
This is Boomberg Tech.
Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
from coast to coast with Caroline Hide in New York
and Eva Low in Sent Francisco.
Speaker 2 (00:23):
This is Bloomberg Tech coming up, Well Tech.
Speaker 3 (00:26):
As you can see, trades lower as AI anxiety kicks
off the last full trading week of the year, our investors.
Speaker 2 (00:32):
Doubling down or bracing for a pop.
Speaker 3 (00:34):
We discuss plus big deals in big tech with Service
Now and Intel in advanced talks to spend billions on startups,
and as stable coin Giant wants a soccer team, why
Teather is bidding more than a billion for Italy's Juventus.
Speaker 2 (00:49):
But first a check in on these markets. We want
to talk soccer, but we're talking what the markets are
up to.
Speaker 3 (00:54):
Under pressure by a quarter of percent on the Nasdaq
one hundred is you'll see, we're off of our lows
of the day, but still in the last full training
week ahead of the end of the year. Are people
taking some risk off the table? They're certainly taking risk off.
In the crypto space, we're down sub ninety thousand once again,
eighty nine and twenty four or off by another couple
of percentage points after a downdraft over the course of
(01:14):
the weekend. So the moon music again speaking to AI anxiety,
speaking to some nervousness.
Speaker 2 (01:20):
Around valuation is today's picture. But take a look at
some of the individual names. Service Now is off by
more than ten percent.
Speaker 3 (01:26):
Is maybe we still see companies spending in terms of
M and A. There is service Now potentially in talks
to buy cybersecurity Unicorn armists being reported over the course
of the weekend could valuate about.
Speaker 2 (01:37):
Seven billion dollars.
Speaker 3 (01:38):
That would be the biggest ever deal for Service Now
if these reports come true from Bloomberg, and indeed we
could see it just delving ever more deeply into cybersecurity.
Intel off by five ten percent as it too is
in advanced talks. We understand to buy an AI chip
start up that's sam Manova Systems for about one point
six billion dollars and.
Speaker 2 (01:56):
Tesla avan record high.
Speaker 3 (01:58):
Will we close this day at the first record for
Tesla since December twenty twenty four. The catalysts, well, we're
bush going more overweight on the stop once again. But
other than that, no clear fundamental driver that is what
we're looking at on the day. Let's look at just
the course of Chatchipat and since twenty twenty two, I
want to show you the growth of the nazdat one
(02:18):
hundred phenomenal up more than one hundred percentage points. It's
more than doubled, of course, but doubts about the AI trade.
Speaker 2 (02:26):
They're starting to grow too.
Speaker 3 (02:27):
Now. Bluebgg's market reporter Randalstelica could set us up for
what the end of this week, Anxiety is saying about
the belief in this one hundred percent rallies. It's November
twenty twenty two. Is it's Chatchybaut first burst onto the scene? Ryan,
We are having yet more and more concerns about the
valuations of the run up in certain companies.
Speaker 4 (02:46):
Hey, good morning, thanks for having me so. Yeah, a
lot of these concerns have been just sort of percolating
throughout the mark and every so often we'll see them
sort of, you know, e merge and we come go
to the forefront.
Speaker 5 (02:56):
That is sort of what we're seeing right now.
Speaker 4 (02:57):
It does seem like there is a lot more skeptics,
as a lot more caution about valuations, about growth prospects,
about when we are going to start seeing a more
pronounced return on all of this AI spending, and maybe
just because it's sort of like the end of the
year people are looking to close out their books. Maybe
people are taking a reassessment right now of all the
big games that we've seen in a number of AI
(03:19):
stocks and just sort of considering where they might be
going in twenty twenty six.
Speaker 3 (03:24):
I mean, there really is some of the most read
stories throughout the course of the weekend, and indeed on
this day is the one that Wall Street sees AI
bubble coming and is betting on when it pops, if
indeed it does. The eye of the storm of in
companies like Oracle, even in Video, which has been the
pin up for this year and still remains so in
terms of a twelve month training basis, but of late
has taken a hit to market capitalization. Are there any
(03:45):
particular areas that we're seeing the most pain right well.
Speaker 4 (03:48):
One interesting theme that we wrote about I think about
a week ago is sort of a consolation of stocks
that are more associated with open ai as opposed to
the ones that are more associated with alphabet And for
much of this year, any company connected with open ai
saw pretty strong stock gains. A lot of companies rallied
when they would announce deals with the company with the startup,
(04:08):
and now we are really seeing that reverse. There's a
lot more skepticism about is open ai going to be
able to grow fast enough in order to meet all
of these sort of deals and obligations that it's announced.
As skepticism around that has grown, you have seen companies
connected to open ai stort to really come under pretty
pronounced weakness. You mentioned Oracle, but also in the sense Microsoft, Nvidia,
(04:31):
Core Weave, companies like this, Whereas companies that are more
connected to Alphabet and Jim and I, which is currently
seen as sort of the stronger AI play, those companies
have been doing, you know, continuing to hold up in
a lot better fashion.
Speaker 3 (04:45):
Ron Vastedika, You're continuing to write upon all of these
themes as we.
Speaker 2 (04:50):
Tie up twenty twenty five. Fantastic to have you kick
off the show. We thank you. Let's keep this discussion going.
Speaker 3 (04:55):
Let's delve a little bit deeper into the signals in
the economy what that's doing in terms of trickling into business.
Nothing Gallagher's with us principal economists and director at Board. Now,
that's an aipowered enterprise planning platform. You provide macro analysis.
You provide strategic guidance to global companies on business investment,
on economic policy. And what's really interesting is you're sort
of telling us and pointing towards your expertise, showing that
(05:16):
twenty twenty six is really going to be a prove
to me moment.
Speaker 2 (05:20):
Right.
Speaker 3 (05:20):
For twenty twenty five, it's been about picks and shovels
and infrastructure. Twenty twenty six, we need the economic upside,
We need the productivity gains.
Speaker 6 (05:28):
Yeah, absolutely, I mean so far right, we've had really
broad based adoption of AI, about fifty five percent of
American workers, for example, say that they're utilizing AI. We
haven't seen it translate into the productivity numbers, right, And
this isn't just with the government data. It's also with
private studies as well, in university studies as well. So
as we get into twenty twenty six, to really validate
(05:48):
the underlying fundamentals, we're not only going to have to
see that breadth, we're going to have to see really
meaningful depth of adoption as well.
Speaker 3 (05:56):
Natalie, When you're pouring over the data, what is the
data that we're going to need? Is it going to
be the earnings of healthcare companies in financial institutions that
actually start to see margin improvement because of AI adoption.
Speaker 2 (06:07):
How do you get that? Tell?
Speaker 7 (06:09):
Yeah?
Speaker 6 (06:09):
Absolutely, I mean the first place we'll probably see it
as in earnings release, right, The government data often lags behind.
You know, We've seen a lot of earnings releases where
CEOs have said, hey, we're utilizing AI. We're seeing these
productivity gains. At the same time, we're not seeing them
show up in as meaningfully as a way as we're
going to need to really justify the valuations that are
(06:30):
out there, really confirm right that we are seeing that
productivity growth or that return on the transformational promise of AI.
Speaker 3 (06:38):
What we have seen show up is the AI investment
numbers driving GDP figures. Many would say that basically twenty
twenty five's economic growth entirely hinges on a few big
names in tech making some extraordinary big investment plans. How
wide could the economic shakeout be if indeed we did
see a pullback and a questioning of productivity.
Speaker 6 (07:01):
Yeah, I mean it could be really significant, right, twenty
twenty five AI spending, CAVIX spending, it's really served as
a macroeconomic stabilizer a macroacademic anchor, even as we've seen
other parts of the economy really meaningfully stagnate. Right, It's
really been this promise that's continued to lead growth to
not only deliver but really surpass expectations in twenty twenty five.
(07:25):
And that's definitely true, right, it continues to be an
anchor in twenty twenty six. So if we see a meaningful,
meaningful pullback, if we see AI not deliver and sort
of that translate or cascade through the economy, I mean,
the economic implications are really really broad based. Well, outside
of tech, how.
Speaker 3 (07:42):
Broad based do you think the economic implications have been
of China and US and this technology war? Really we're
seeing at the heart of it, how much has that
implicated US businesses?
Speaker 2 (07:54):
And in the longer term do you.
Speaker 6 (07:55):
Think it's been fascinating?
Speaker 8 (07:58):
Right?
Speaker 6 (07:58):
Because US businesses, even with sort of this this headwind
of overall trade uncertainty back and forth with China, they've
really continued to deliver.
Speaker 7 (08:08):
And so that's really positive to see.
Speaker 5 (08:10):
You know.
Speaker 6 (08:11):
On the other hand, right, if we do get more
and more to coupling with China, the economic implications are also.
Speaker 7 (08:17):
Broad based there as well.
Speaker 6 (08:18):
We have a reduction in revenue translates to a reduction
in R and D, and so of course the economic
implications based on what direction we take can be. They
can be quite extensive. Now, at the same time, if
it leads to sort of a benefit when we look
at the competition dynamics, then maybe it's a little bit
of a win win for the US.
Speaker 3 (08:39):
What's interesting is while we've got perhaps a questioning of
valuations in the market, some still manage to rise on
absolutely no fundamentals at all. And Tesro is currently maybe
closing in yet new record high.
Speaker 2 (08:51):
The first one is be seen since December twenty to
twenty four.
Speaker 3 (08:54):
Now, maybe that's a bit of moon music coming from
an extraordinary valuation being given to the private company that
is Space Sex elsewhere in Ela Musk's realm, Natalie, what
you think about some of the froth in the area
is particularly in the private area.
Speaker 7 (09:08):
It's been really interesting to see.
Speaker 6 (09:10):
Right, whenever you know, as an economist, what I look like,
what I look at is cashields, right, and whenever we
end a rate cut cycle, or you know, debatably end
a rate cut cycle like we are right now, cashields
become less attractive. And what we need to really carefully
watch is are we seeing meaningful investment in actual infrastructure
and that's what's really driving these these extremely high elevated.
Speaker 7 (09:36):
Excuse me, these elevated.
Speaker 6 (09:37):
Valuations, or are we seeing investors go towards alternative investments
because cashields are quite quite impacted, and so we're going
to really need to see these valuations be meaningful, right,
We're gonna need to see that the proof is in.
Speaker 2 (09:52):
The pudding that it is worth eight hundred billion dollars.
Natha Gallagher with the macro and the micro for us,
We so appreciate to principal economist at Board. Now coming up,
Juventus shares. Have you been watching them?
Speaker 3 (10:05):
They are rallying after excell rejected and unsolicited takeover bid
from cryptogiant Tether bagg into that one plus Netflix makes
its case for Warner Brothers after Paramount, of course, goes
public with its own hostile offer. What did the co
CEOs manage to say? This is Bloomberg Tech shares of
(10:41):
Italian football club Juventus. You might call it a soccer club,
I call it football. When they jumped after crypto company
Tether made a take of a bid for one point
one billion euros about one point three billion dollars now.
The offer was swiftly rejected by the holding company of
the Agnelli family, which owns a controlling stake in what
is one of Italy's most.
Speaker 2 (11:00):
Distinguished football clubs.
Speaker 3 (11:01):
Let's kept more on all of There's a Brembag editor
in Milan, Tomaso ev Haart fascinating this family.
Speaker 2 (11:07):
The Agnelly family.
Speaker 3 (11:08):
Have held a controlling state for years in this team
and indeed earned Ferrari and other big auto sectors. But Tomaso,
what does Tether have in terms of its game plan.
Speaker 9 (11:21):
It's a very fascinating story here from Italy, you know,
is like new money versus old money. Interesting enough, Tether
founders are originally from Turin, the city where you went
to was born and they support you went to, so
they started as a fan. And Ardoino, the Sea of
(11:42):
Tether told us in a interview a few months ago
that he has been a fan of You Wentus forever
and Tether both a ten percents taking You went to
a few months ago was the first football team where
a kip cryto a company in both a significant state.
They also have a board seat in a U went
to and how they arrive with the bid Friday night
(12:04):
for the controlling mistake to the Annually family, italy most
important industrial plan. But the Elli family said no, no, no,
no way. We're not going to sell to Teta. We're
not going to sell to anyone. Juventus. They've had Juventus
far over a century. So so far no news but
shares move. They didn't get up to the level of
(12:27):
the price offered to the annially, but there was more
than fourteen percent today in the in the Italian market
in a very difficult moment on the pitch for Juventus.
They're not doing that greater this year.
Speaker 7 (12:39):
Yeah.
Speaker 3 (12:40):
Is that the argument coming from these lifelong fans that
tether that they could in some way manage the business
of football or soccer better.
Speaker 9 (12:51):
That's a good question. For sure. They have a lot
of cash and in the bid they said we're also
we're also ready to invest one bid euros in a Juventus.
But this is not enough for the Annealist. Saturday afternoon,
John Elkin made the video. John Elka is the leader
of the Anneally family nowadays, made the video online say
(13:14):
you know, we have defended the Juventus value for over
a century. We want to stay close to Juventus. We've
been with Juventus in the bed and in the good
times and will stick with the data. Interesting enough, is
a very delicate and sensitive moment for the Anially family.
Why because they are reshaping their portfolio. You know, they're
(13:34):
the biggest investor in the Lantes. The automotive industry is
facing a disruptive moment generally have sold some assets recently,
including their truck company Iveko to Tata in India. They
are now in talks to sell the media asset in
Italy to a Greek company. So there's a lot of
interest and also a lot of political debate on what
(13:56):
the Annually families are doing with their Italian holdings.
Speaker 3 (14:00):
Yes, some pushback against Greece's Antenna Group for wanting to
have that Italian asset.
Speaker 2 (14:04):
Meanwhile, Tedther's been investing in plenty of Italian assets.
Speaker 3 (14:07):
It looks like more across the board, whether it's genomics
companies or even in media companies as well. Tomaso is
so great catching up with the Snaks, staying a little
bit late in Italy. Tomaso Ebhart there from Milan. Look,
let's pivot into a different world of entertainment now. The
co CEOs of Netflix, they've been making their case for
requiring Warner Brothers Discovery to their own employees. Let's get
(14:28):
the latest with Bloomberg's entertainment editor Lucas Shaw, who's been
across this M and A story that is just fueling
everyone's attention in Hollywood at the moment. So what is
it that the co CEOs can put across their employees
to calm their own nerves.
Speaker 10 (14:42):
It was a Q and A of sort. They first
of all stated they're the rationale for doing the deal,
and then tried to address some of the five, six,
seven biggest questions that there are out there. You know,
is this going to kill Hollywood? What do they think
of the paramount hostile bid? Do they actually think they
can get this deal approved? And the kind of the
big one about movie theaters. It was as much for
(15:04):
the public, I think as employees. You know, they put
it in a filing so that the world could see it.
They've obviously been keeping their employees apprize to the best
of their ability over the last couple of weeks, and
the ones I've spoken with have said it's been pretty
status quo at the company.
Speaker 3 (15:19):
Meanwhile, of course, what we'll wait for In the entertainment
world on a Sunday is your note to drop of
screen Time and lucas you've been writing in particular about
amid all of this fury about concern about consolidation in
the sector, is also AI, which is looming large in
many executive's head and employees.
Speaker 2 (15:37):
What do you make of the AI threat right now?
Speaker 10 (15:40):
Well, Hollywood is is very conflicted, you know. You see
certain filmmakers come out and say I've interviewed a couple
of them and say it's the future. We might as
well figure out how to use it and integrate it
into our workflow. And then there are others like Germo
del Toro and Ryan Johnson who basically said they'd rather
(16:00):
than use AI or that they will do anything that
they can to stop it. You saw a very strong
negative reaction last week when Disney announced a deal with
Open Ai, where a lot of the unions and a
lot of workers wondered what the company was doing.
Speaker 2 (16:14):
Well reading it with interest.
Speaker 3 (16:16):
It's also featured in Business Weeks the Year Ahead for
twenty twenty six. Go look at it. Grapple with the
future of Hollywood. All Things AI from Lucashaw thank you
very much for keeping us up to speed. Meanwhile, President
Donald Trump's knew one hundred thousand dollars fee on h
one b hires and it's set to deliver the biggest
blow to it outsourcing and staffing companies. According to analysis
done by Bloomberg, businesses like Tutter, Consultancy Services, and Emphasis,
(16:41):
they're likely to be hit harder than say US tech
giants like Amazon and Google, but still all impacted. Let's
dig into the broader impact with Hibbert Anvia. She is
a partner at ericson Immigration Group, working around the clock
on issues such as this. I'm sure, and the context
is companies that take the financial hit, but also state
that tried to push back on it. And the latest
(17:01):
is that we understand a group of states are actually
suing to block this in particular. Do you think that
that's going to gain any traction.
Speaker 11 (17:11):
I do think that it's going to gain traction because
what the states are doing that's different than some of
the lawsuits that have already been filed is they're making
a legal argument based on their specific state economies, which
I think is a really important argument because it goes
directly against the claim that a lot of opponents to
the H one B visa have that the H one
(17:31):
B visa is actually harmful for the US economy. The
lawsuit that was filed by California and the nineteen additional
states essentially argues that this one hundred thousand dollars fee
is going to worsen labor shortages within other important sectors
that exist within the state economy by making it more
difficult to fill spots for occupations that are already experiencing shortages,
(17:52):
such as physicians or researchers or teachers nurses, for example.
And so I think that this lawsuit puts states in
a position where they can actually show harm in a
way that's more effective than some of the lawsuits that
have already been filed.
Speaker 3 (18:06):
Their argument is that no presidential administration can rewrite immigration law.
Speaker 2 (18:11):
Is what they're taking.
Speaker 3 (18:12):
And I think it's the third challenge at least that
we've seen to this particular fee increase. But on the
flip side, the president and the administration would say we
need this fee because H one B is being abused.
Speaker 2 (18:23):
What evidence is there for that? From your perspective, hire.
Speaker 11 (18:27):
I think the more important evidence is when you take
a look at the H one B filing process in
and of itself, it actually has several checks and balances
that are already built in to ensure that the H
one B visa is not being abused or misused in
any way. And in particular, one of the core components
of filing an H one B visa is to be
(18:47):
able to demonstrate back to the government that the filing
of this visa is not going to displace a qualified
US worker. So I think that what's more important to
focus on are the checks and balances and the safeguards
that are already in place for the HI visa to
prevent the fraud and misuse, because the highly restrictive policies
(19:07):
for folks that are actually proponents of the AGE one
V visa create a new category of risk, which is
that this is actually going to hamper and diminish the
American innovation and the US companies leading the charge on
global innovation.
Speaker 3 (19:22):
Now we take it to another extreme, and what's interesting
is there's actually blowback not coming from Democrat states who
are suing, but actually conservative lawmakers who are saying that
in some ways Trump is supporting yet more legal migration
and immigration into the country. They're criticizing President Trump for
supporting more visas in particular to allow the entry of.
Speaker 2 (19:45):
High skilled foreign workers.
Speaker 3 (19:47):
Is there any mounting fervor around this that you're hearing
him or something that companies are worried about that names
like Republican Chip Roy would actually manage to prevent legal
immigration at this time.
Speaker 11 (20:01):
I think, you know, I think that the concern in
the industry is more so based on the data. I
think that we're far out enough from the beginning of
the year to be able to actually measure the data
in an effective way. And I think that what we're
starting to see is US companies starting to grapple with
the decision about whether they want to continue to invest
(20:21):
in other countries where the talent, the high skilled workers
in particular, are more inclined to go as opposed to,
you know, the talent that may be a little bit
more concerned about staying here in the US. So said
another way, I think the concern in the industry is
whether some of these larger companies are going to choose
to offshore, for example. And another really important component of
(20:44):
this is a lot of the folks in the industry
are actually specifically watching how other countries are responding to
some of these more restrictive immigration policies, you know, namely,
you know, China and Canada being some top examples. And
for example, you know, Kina recently released the Cavisa for
Global Tech Talent, which is specifically aimed at attracting international
(21:06):
tech workers, and that was done in direct response to
the US tightening its immigration policies and this new hundred
thousand dollars fee. So what I think the concern is
here is whether the talent is going to be incentivized
to choose another country, whether other countries are going to
be more inclined to have more open immigration policies in
an effort to try to attract that high skilled talent,
(21:29):
and what that eventually means for the global success of
US companies.
Speaker 3 (21:34):
We got thirty seconds. Is it big companies that hurt
the most Tehiba or is it smaller ones?
Speaker 11 (21:40):
So it's usually the larger tech companies in particular that
garner the most attention. But you know, it's also important
to point out that when it came to first time
H one B visa petitions for employment in fiscal year
twenty twenty five, over twenty eight thousand companies filed at
least one, and so what that data implies is that
the companies that are benefitting from H and D visas
(22:01):
are actually, you know, very diverse in terms of profile.
Speaker 2 (22:05):
Leave it there hither, We thank you very much, hibbah
Anva from Erics and Immigration. But let's talk more broadly
about the world of technology and how it's implicated by
well geopolitics.
Speaker 3 (22:14):
China, in fact, has just started to grant licenses with
lengthier terms that would allow European companies to obtain critical
rare earths. That's what according to eutop trade official Maroszebkovic.
Blimog's Oliver Crook sat down with him earlier today.
Speaker 2 (22:29):
Just take a listen.
Speaker 12 (22:31):
I think we are getting initial reports from our industry
that they are getting these general licenses, but we need
to have a little bit more granual information to evaluid
the whole process. But the fact that this idea was
favorably received, that it seems that we are getting first
general licenses, and also that the Chinese side was receptive
(22:55):
to our arguments that the processes it was set up
in April it required too much of what's a very
intrusive information, too many photographs, too much detail about the
supply chains, and I think that the general licensing could
be could be one of the solutions out to address
this issue.
Speaker 3 (23:14):
What does this mean about global access to rare We
can talk about that with Bloomberg Senior Tech editor Mike Shephard,
because this is a fascinating read. Across to the US,
Brussels had been really worried about a choke point bottlenecks
brewing that would implicate to such a degree vital industries
the German carmakers. But similarly those choke points and bottlenecks
here in the United States too.
Speaker 13 (23:36):
Well, that's right, Carol. There are so few points of
common ground when it comes to trade for the EU
and the US these days. But access to rare earth
actually happens to be an area where they share this concern.
And that is because each side they see their companies
their economies so dependent on China for access to these
(23:56):
critical inputs to all sorts of technology. It is not
just the advanced tech that we talk about so much
on this program, semiconductors and other things. It also goes
into defense equipment, into automobiles, into solar arrays, really into
a little bit of everything. And China owns the lion's
share of not only the deposits, but also the refining
(24:16):
and production of it. So for the EU to say
that it is seeing some glimmers of hope in being
able to access these rare earths on a wider basis
signals perhaps some progress Caro in this year long, nearly
year long fight with China over access to these critical minerals.
Speaker 3 (24:35):
Bring us up to speed on that fight and the
access because I think it was just last month in
November that President Trump and Chigenpeng came to some agreement
around access to Rara metals and materials. But they're still
dependent on this April licensing agreement.
Speaker 13 (24:50):
Right well, absolutely, And what we're hearing from Ariseefkovich is
that the Chinese may be more inclined to grant what
are called general licenses. And this is a keyword that
he used in that interview. It's not just a license
for a one time shipment of a critical mineral, let's
say gallium or something else used in night vision goggles
(25:14):
or something along those lines. It's a general license that
would allow for a longer period of time for repeated
shipments to pre approved buyers. And that would really speed
the plow for companies in the European Union and the US.
And this is what both sides have been agitating for
from China, and it's a key part of the trade
truth that was reached between President Donald Trump and Hijianping
(25:36):
at the end of October. It took effect in November,
and it is really something that US officials are watching
closely from and they will be hearing from US industries,
especially the auto industry, which has expressed the most concern
over Beijing's control over this and the bottleneck that they
really began to see in April when authorities in China
(25:57):
began to tighten the export controls there. So we'll be
watching to see what the signaling is from US trade
officials and whether they're seeing similar signs of progress.
Speaker 3 (26:07):
Bluemegs Mike Sheppard, we always appreciate you, Thank you very much. Indeed,
now talking a bottlenecks, surging electricity demand, driven in many
ways by AI data centers, is highlighting the need for
more power in the United States and antique.
Speaker 2 (26:20):
Globally, there's some good news on the tap in twenty
twenty six. The nuclear industry.
Speaker 3 (26:25):
It's poised to turn on fifteen reactors worldwide, but that's actually.
Speaker 2 (26:29):
After a dropping capacity this year.
Speaker 3 (26:31):
Let's break it down with bluemgs wild wide covering energy, climate,
and all things nuclear. Will I'm surprised the talk, the
hype has been there in twenty twenty five, but not
the reality.
Speaker 2 (26:41):
There's actually been less nuclear capacity.
Speaker 14 (26:43):
Yeah, we're going to lose about a gigawad of nuclear
capacity worldwide this year. We're going to have two reactors
that came online and seven older ones got shut down
in different parts of the world. I think the quote
that I've heard this year from one of my sources
that sums it up the best is like everything's happening
and nothing's happening.
Speaker 5 (27:03):
Because the thing about.
Speaker 14 (27:04):
Nuclear and my editors, you know, that drives them crazy.
It happens really, really, really slowly. So there are sixty
sixty two reactors under construction worldwide around the world. They're
going to start coming on in big waves next year.
We're going to get like ten gigawatts capacity next year,
(27:24):
a ten more the year after that, close to ten
the year after that. So there's a lot coming, but
there's not a lot coming on right now.
Speaker 3 (27:34):
Just how important is the actual sourcing of power, the
idea of nuclear being that energy and climate friendly version
of so doing, particularly plugging into data centers, or at
the same time, is electricity in the needs of it
being hampered by just resiliency in the grid. There's a
great story out by your colleagues today, another fifth story
(27:57):
on bottlenecks, really looking at a series of obstacles slowing
down the transition to a cleaner, more electrified future. And
they're already signaling out the issues that we face in
terms of just the.
Speaker 2 (28:05):
Electric grid in experience and congestion there.
Speaker 14 (28:09):
Yeah, the grid is another huge issue all to itself.
The ability to deliver the electricity is you know what
happens with the grid, and connecting to the grid takes years.
You have to go through all kinds of permitting so
you can plan your nuclear power plant, and it still
takes years to get a connection to it. We're going
(28:30):
to have three Mile Island come back in the service
in twenty twenty seven.
Speaker 5 (28:34):
That's actually a year ahead.
Speaker 14 (28:35):
Of schedule, and it was supposed to be twenty twenty eight,
but they managed to get a grid connection sooner. The
work to get it ready was always going to take
until twenty twenty seven, but they managed to get the
local grid to hook that up earlier, so that's going
to come faster. But grid connections are a big bottle dick,
not just for nuclear, for any new electricity.
Speaker 2 (28:57):
I'll put Will Wade great analysis.
Speaker 3 (28:59):
Thanks for talking us through it on all things nuclear
and more broadly energy adoption. Now coming up, we're going
to be discussing the future of drug discovery powered by AI.
We are discussing it with Chai Discoveries, Josh Meyer and
Elena vibe of General Catalyst.
Speaker 2 (29:14):
There's a new funding round.
Speaker 3 (29:15):
It's making a unicorn. This is Blomberg Tech CHAI Discovery.
It's an AI drug discovery company backed previously by Open Ai,
(29:37):
and it's just raised another one hundred and thirty million
dollars to scale compute, to scale talent, the goal to
build a quote computer aided design suite for molecules. CHI
Discovery co founder Josh Meyer joins us now along with
Elena Vibock, who is General Catalyst Managing director.
Speaker 2 (29:54):
You co led the round with oak HCFT, so I
go to you first. Josh.
Speaker 3 (29:58):
Congratulations, this is just three months after you did a
series A. Why are you doubling down and what is
the money being usedful?
Speaker 15 (30:06):
Well, first of all, thanks so much for having us here.
It's a really exciting time for the company. We're coming
out of this year with a series of research breakthroughs
where we've now shown that we can use AI to
design molecules that we never even thought was going to
be possible. So really using this money to double down
on that research agenda. The model showed no signs of
double of slowing down, and then also really growing the
(30:27):
team and starting to take these models and start deploying
them really at scale and starting to create new molecules
that again we never thought would have been.
Speaker 5 (30:35):
Possible to create.
Speaker 3 (30:37):
Elena, it feels like this is a relatively pivotal moment
in AI's push forward on drug discovery and on healthcare
more broadly. You're someone who invests in life sciences. What
is it that made CHI stand out that you thought
it needed follow on money just three months after a series.
Speaker 16 (30:54):
A Absolutely so CHI stood out because twenty twenty five was
the year of AI discovery, and which I allows you
to do is understand and predict the interaction between molecules
to design and develop new medicines and The reason we
invested now is because we believe.
Speaker 17 (31:14):
Twenty twenty six will be the year of deployment, and
pharmaceutical companies that adopt this technology will absolutely leapfrog those
who do not. And it's a moment where medicines that
could not be discovered any other way will now be discoverable.
Speaker 2 (31:31):
And the aha moment in many ways was following the
release of Chai Too. Josh tell us why that was
so important.
Speaker 3 (31:38):
The latest antibody generation model that you released, and I'm
sure suddenly had a load of inbound calls on the
back up.
Speaker 5 (31:45):
Yeah, so, of course this is our Series B.
Speaker 15 (31:47):
But if you look back at our Series A, we
told our investors that over the next two years or
so we would try to reach a one percent success
rate on this antibody design task, meaning that one percent
of the molecules coming out of our models would function
lab We thought that'd be a breakthrough.
Speaker 5 (32:01):
Moment of the field.
Speaker 15 (32:02):
But a couple of months ago with Chai Too, we
actually announced that we could do this with about a
fifteen to twenty percent success rate. So I think really
leapfrogging again what even we thought was achievable in the
past year or so so that's really been I think
a big moment for the field and now moving us
away from just research curiosities into models that are really
(32:23):
useful for actually discovering drugs.
Speaker 3 (32:26):
Elena, that's sort of mind blowing for many who aren't
in the weeds on life stimes as much as you are,
that there is only a one percent that a one
percent hit rate was going to be really tangible for
the field, and let alone fifteen to twenty percent. Talk
to us about what have been the limitations thus far
in drug discovery in labs for pharmaceuticals and what this
changes in terms of AI.
Speaker 17 (32:49):
Absolutely so, when researchers try to make a new model
a new molecule, it's essentially searching for a needle in
the haystack. It happens in a lab. There's a lot
of very ability and it's really challenging. That's why even
though we've seen breakthrough medicines and many people benefit from them,
there are still lots of areas where people get sick
(33:09):
and have no options. What Chai has done is show
that they can design computationally medicines that have over an
eighty five percent success rate in achieving.
Speaker 7 (33:22):
Basic drug like properties.
Speaker 17 (33:24):
There's additional research to do, work to be done that
takes a drug from the computer into the lab, into people,
into clinical trials. But there's been a longstanding hype around
AI for drug discovery. And now when we meet pharmacutical
executives and they meet Chai, everyone says this is the
(33:44):
year of deployment. Now these models work in a way
that they will actually contribute to new medicines that make
it to patients.
Speaker 3 (33:52):
And of course, Josh, you've previously been bat by Thrive Capital,
MENO Ventures. Open AI has been a strategic investor and
a price you used to work. But with General Catalyst
and with Oak on site, I'm sure those meetings with
pharmaceuticals come more thick and fast. But what more is
the money being put towards When you talk about scaling
this project?
Speaker 2 (34:11):
How much compute do you need and how much you
need to invest in GPUs as well.
Speaker 3 (34:15):
As the engineers and the fierce talent walls to get
the right people in the door to build the models too.
Speaker 15 (34:21):
Yeah, well, I'm thrilled to be working with General Catalysts
and OK, here you know this ground is actually about
a lot more than the money. You know, you bring
together some of the top investors in this space in healthcare.
If you look at the folks joining our board, Annie
Lamont and Himant Nasa, these are investors who have been
my dustless healthcare investors, really plugged into the pharma space.
We're here with Elena as well, who's just such an
(34:43):
incredible thought partner and really building out the business so
the capital is going to work. Among all the things
that you mentioned, we're really putting an astronomical amount of
these costs into compute. We're trying to turn compute into
better into better molecules. We run a ton of live
experiments to really test whether the models work in the
real world, and we're doing a lot as well in
order to start deploying these models, building the right kind
(35:05):
of software tooling in order to build this computer aided
design suite for molecules.
Speaker 5 (35:10):
There's the talent wars as well.
Speaker 15 (35:12):
I'm very, very grateful to be working with some of
the top folks in the industry here. When we started
the company, we actually brought together a number of heads
of AI from top ei drug discovery companies, and we've
only continued to build out an exceptional team here.
Speaker 5 (35:24):
We're a small but mighty team.
Speaker 15 (35:25):
But we're really putting this to work in order to
turn science from a scientif biology from a scientific discipline
into one that looks a little bit more kin to engineering.
Speaker 3 (35:36):
Yeah, Elena for the sort of great line that basically
there's been a lot of hype around AI and how
it will be applied to healthcare. But what do you
think helps cut through to those who are layman to
a lot of the real details and data being shown
in this that we will see productivity gains, we will
see real deployment in twenty twenty six.
Speaker 2 (35:56):
What's your hope as to what this looks like next year?
Speaker 17 (36:00):
Well, I think for next year the hope and I
think pretty strongly the reality is that pharmaceutical companies will
be able to discover medicines more efficiently. So Josh mentioned
there's a lot of compute going in that's really on
the research side. What's incredible is this technology is efficient,
It is helping people discover medicines, and to me, the
(36:22):
most important thing that lay people will see is when
we use these tools, we can discover medicines that take
advantage of known biology and impossible chemistry. You could not
make the molecule you could not make the medicine without
using this technology, and what people will see are medicines
that are curative that would not have been discovered any
(36:45):
other way. And that's where lay people will really see
the benefit is in medicines that have impact on their lives.
Speaker 3 (36:53):
Try Discovery investor Elena Viebok there from General Catalysts, and
Try Discovery co founder Josh ma It's been great speaking
with you both.
Speaker 2 (37:01):
Thank you very much, indeed for joining today.
Speaker 3 (37:03):
By coming up, take a look to the shares of
Service Now and Intel, both under pressure, both in talks
to buy startups. We'll talk about those potential deals next.
This is Bloomberg Tech. It's time now for talking tech
(37:28):
and first up. Rumba maker I Robot, of course, is
filed for bankruptcy and proposed handing over control its main
Chinese supplier, Sheens and Robotics. Under the proposed Chapter eleven plan,
the company's common stock will be wiped out. Plus leadership
and McKinsey is discussing potential job cuts, reducing roughly ten
percent of its head count across non client facing departments.
(37:50):
This coming as its revenue growth has flatlined over the
past five years. Now McKinsey spokesman said that we are
operating in a moment shaped by rapid advances in AI
that are transforming business and society and Service Now, but
it's closing in on a deal to buy cybersecurity startup
Armies for as much as seven billion dollars according to
people familiar with the talks now. The stock is under pressure,
(38:11):
as you can see after analysts at Key Bank cut
their waiting to underweight this morning, citing mounting threats also
from artificial intelligence. Let's just dig in on that particular
deal on the talks on Service Now, but also other
deals being eyed in tech, including Intel's potential plans to
buy AI startups and Manova Systems joining us to discuss
all of this as Bloomberg's Ryan Gould covering M and
A and as ever a busy weekend for you covering
(38:34):
M and A, Ryan, talk about Service Now first and foremost,
why does it want this Israeli based cyber company Armists?
Speaker 2 (38:40):
What would it help it do?
Speaker 8 (38:43):
Thanks, Jeron, and I think it's an interesting time to
be serviced now. You'll note that they just acquired announcedllly
this month in acquisition for a company called Vezza or Vetza,
depending on how it's pronounced. I think that was worth
about a billion dollars for the security and risk portfolio.
I think this really drives home the idea that you
need to be ready for us for an enterprise, the
size of service now for potential threats, potential attacks of
(39:04):
the you know, in the age of AI, this is
a massive growth area across the street. You've seen quite
a few other sizable cyber deals this year, including cyber
Arc being bought by parallel to Networks. Big enterprise is
Microsoft Google. I mean, look at Google Whiz paying thirty
two billion dollars for what is sustensibly a threat detection
and enterprise is management business as one of the biggest
(39:24):
MNA deals of twenty twenty five. So I think this
is really driving home the point that AI and security
go hand in hand.
Speaker 3 (39:32):
They go hand in hand, and also AI is fueling
M and A in other parts of the industry. I
mean Intel lipbutan the CEO of Intel is also on
the board of a startup that you report.
Speaker 2 (39:43):
Might be being eyed as well by the company.
Speaker 8 (39:47):
That's correct. I think you know this what this acquisition
would be seen as lipbutan sort of you know, doing
a full circle ride almost Flipbutan, the CEO of Intel,
was at one point the executive chair of san Manova,
his VC fund, and Walden Internationals one of the founding
investors of zan Manova. Sambernoma makes custom AI chips, the
type which, if if all were to go well, could
(40:08):
potentially arrival in VideA and AMD in that market space.
For Intel to get a hold of this, I think
this would be seen as liputan, you know, really putting
it Intel in the mix in AI, having an AI
platform to go and talk about in front of other
AAI enterprise customers like Dell and so forth. This would
be a big deal for them.
Speaker 3 (40:29):
It will be, and it's pressuring both stocks today, particularly
Service now some billion would be the biggest they've ever
spent bliue Begswan Gold. With all the reporting across quite
the wave of M and A, it's going to be
a big blocks bluster twenty twenty five if you're looking
at the numbers.
Speaker 2 (40:42):
But it's also a blockbuster day, it seems for Tesla.
Speaker 3 (40:45):
Quick check on the markets here and Tesla is your
lead performer in terms of about four point three percent in
many ways driving it to potentially a new record high.
At the moment is the biggest move since December twenty
twenty four and one point.
Speaker 2 (40:57):
If we hit four eight one spot.
Speaker 3 (40:59):
Sem six, we could be the highest is June well
on record for the company. So keep an eye on
Tesla as it continues to outperform in the Magnificent seven names.
Speaker 2 (41:09):
But that does it for this edition of Bloomberg Tech.
Speaker 3 (41:11):
Do not forget to check out our podcast. You can
find it on the terminal as well as online on Apple, Spotify.
Speaker 2 (41:17):
And iHeart.
Speaker 3 (41:18):
We are here throughout the build up of the last
trading week, full trading week where we still question some
of the AI valuations. Tune in throughout. I'm life from
London today, back in New York tomorrow.
Speaker 2 (41:31):
This is Boomberg Tech.
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