May 14, 2025 • 42 mins
Bloomberg’s Ed Ludlow takes a look at AI deals out of the Gulf, as President Donald Trump continues his tour of the region. Plus, Sequoia Capital partner Konstantine Buhler discusses opportunities in AI memory. And Blake Scholl, CEO of Boom Supersonic, explains what an end to a ban on supersonic planes over US land could mean for the future of passenger flights.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:35):
Live from San Francisco. This is Bloomberg Technology.
Speaker 3 (00:38):
Coming up.
Speaker 2 (00:39):
The Trump administration moves to rescind the AI diffusion rule
launched by President Biden, looking to draft its own approach. Plus,
the US is clearing a path for Saudi Arabia and
the UAE to pursue their AI ambitions, with Nvideo and
AMD winning multi billion dollar deals in the region, and
a ban on supersonic commercial flights over the US land
(01:01):
could soon be history. Let's get to financial markets, the
technology sector and AI infrastructure. These are the big movers
to the upside. We talked about in the last twenty
four hours. The deals that in VideA and AMD one
to sell their cutting edge processors or AI accelerators to
Saudi Arabia. Note the outperformance of AMD up around five percent.
They also are doing a six billion dollar additional share buyback.
(01:24):
They already had four billion dollars of buy back outstanding.
Super Micro, with its own twenty billion dollar deal for
data center.
Speaker 3 (01:31):
Infrastructure in the Kingdom.
Speaker 2 (01:32):
Then there's the rethink on rules about technology export controls
to the Gulf and other nations. The US has formally
moved to rescind the AI diffusion rule and made it
clear it would no longer be enforced, while the bureaucratic
process of revoking the rule unfolds, Bluemogs Mike Sheppard joins
US now for more. We're making progress towards a place
(01:54):
where America's biggest technology companies can sell that tech into
read like the Gulf, But China is an outstanding question.
Speaker 4 (02:05):
China is the outstanding question, and we're getting no signal
from the Trump administration that there will be any relaxation
of restrictions when it comes to China, especially not in
the wake of deep Seek's breakthrough. We did see just
about a month ago the Trump administration moved the bar
and Video from selling its H twenty chip to China.
This is a device that was designed for the Chinese market,
(02:27):
and that is out of concern that the startups in
China could use this chip as part of the inference
model that could achieve AI breakthroughs. And the same thing
applies to AMD's MII three to eight chips, so we
are not seeing any relaxation of standards there. And while
the administration is moving away from the AI diffusion rule,
(02:48):
which set up, as you remember ed, these three broad
tiers of countries governing their ability and their access to
buy AI chips from amdm from Nvidio especially, they.
Speaker 3 (03:00):
Are replacing them with something else.
Speaker 4 (03:01):
So this will be we expect a more bilateral approach,
that each nation would forge its own agreement with the
US and achieve some sort of security understanding whereby China
would be prevented from acquiring the technology either physically or perhaps.
Speaker 3 (03:17):
Via the cloud.
Speaker 4 (03:18):
They would need to show security arrangements and standards before
they'd be able to get through the door and acquire
those chips.
Speaker 2 (03:24):
At the state of play of the last twenty four hours,
is Nvidia, the most important US technology company right now,
has a deal with Saudi Arabia. AMD has a deal
with Saudi Arabia. But in terms of what comes next
you alluded to it. We expect bilateral agreements between the
United States, Saudi Arabia, and potentially the UAE at a
(03:46):
nation to nation level.
Speaker 4 (03:48):
Well, that's right, and we were expecting to see some
of that even during this trip, the president is still
in the region. He has left realities and cutter right
now accepting the perhaps new area one that we've heard
about so much this week, and then as next up
will be in the United Arab Emirates, and they also
have a huge stake in the AI game, and they have,
like Saudi Arabia, big ambitions in this area. Their G
(04:13):
forty two company is really looking to leave a mark
in the region. And one deal that our colleague Mackenzie
Hawkins broke the news on would be perhaps allowing G
forty two to buy hundreds of thousands of these AI
processors from Nvidia over the next several years, and that
would be a key breakthrough for the company and for
(04:37):
the Emirate, which has these ambitions of expanding into AI
and into advanced technology as way of diversifying its economy.
Yet it's really critical for them to expand beyond just
oil and gas that has made them so rich.
Speaker 3 (04:49):
Over the years.
Speaker 2 (04:50):
Bloembags Michael Sheppard out of Washington, d C. Thank you
very much. Let's get more in the market.
Speaker 3 (04:55):
Reaction.
Speaker 2 (04:55):
Bank of America came out saying that Nvidia and AMD
have a multi billion dollar opportunity related to AI infrastructure projects,
specifically in Saudi Arabia, and there's a lot of bullishness
out there about the prospects of the deal announced in
the last twenty four hours. Nancy Tegler is CEO and
CIO of Laffatengler Investments, and those were deals between American companies,
(05:17):
leading American technology companies and those that Golf Nation of
Saudi Arabia is an investor. How did you react and
respond to that news?
Speaker 5 (05:25):
Well, thanks for having me ed. I mean, of course
it's optimistic, rhetoric and potentially super beneficial to the ultimate
earnings of the companies. We need to see when these
investments come in and the timing and the volume. But
I think just on an overall basis, what it does
(05:46):
is it replaces the lost revenue from China. And it
may not dollar for dollar, but it does psychologically. And
so we were in buying these names. I've been on
with you many times. We were buying in January, February, March,
not just in Nvidia, but a number of the software
related companies around AI and then of course Tesla. And
(06:06):
I think that's a lesson to everyone that this trade
is not over Wall Street tends to be very short
term focused. Investors like me tend to be longer term focused.
And what we learned yesterday is that is confirmation that
were early innings in this AI buildout and it is
potentially the fourth Industrial Revolution, and it is similar to
(06:30):
what we saw in the nineties in terms of productivity enhancements.
Speaker 2 (06:34):
Nancy, stay with us and bear with me. We have
some news crossing the Bloomberg terminal. E Toro Group's US
shares are indicated to open at sixty three dollars and
fifty cents each. This is pending trading on an IPO
that priced at fifty two dollars a share, so priced
at fifty two but indicated to open at sixty three
dollars and fifty cents. The marketed range was forty six
(06:56):
to fifty. E Toro basically a rival to robin Hood,
the trading and investment platform Israel based company, and this
is a IPO that would give the company at its
fifty two dollars IPO price and market cap of about
four point three billion dollars. Nancy Tanglo, while you're with us,
I see some green shoots. Is that one way to
(07:17):
put it in this US IPO market.
Speaker 5 (07:20):
Yeah, I do think you're right, ed. I mean, this
one makes me just a little bit nervous because it's
piling on today trading. I think in many regards, however,
I love seeing the retail investor engaged, in fact much
more so than the institutional investor. And I do think
that we'll continue to see acquisitions at M and A
(07:41):
in general. We just launched a MidCap strategy for that
very reason. So I do think this is bullish for
the economy and the overall market, and you know, I
commend them on their day one of trading.
Speaker 2 (07:54):
Let's go back to the big story, which I think
is AI infrastructure in the relationship between the United States
the golf. What we're trying to understand is what happens next.
Our colleagues at Bloomberg Intelligence did the analysis on how
much revenue in Nvidia and AMD will derive from that
golf region. So ten to fifteen billion dollars in annual
sales for Nvidia through twenty twenty seven, just one to
(08:17):
two billion dollars for AMD in the same region.
Speaker 3 (08:20):
But here's the key bit.
Speaker 2 (08:21):
Cushioning the blow from unchanged China export perves. We open
this program saying that the diffusion rule has been rescinded,
but a new, specific Trump era rule will come. How
do you think they will approach China?
Speaker 3 (08:35):
Yeah?
Speaker 5 (08:35):
I do think that is the good news in all this.
As I said earlier, the difficulty for investors in Nvidia
was what were they going to do if China was
taken off the table as a potential customer. So I
think you'll I still think we'll see chips sold to China.
The question is in what form? And then the question
is how much does Nvidia and AMD need that revenue
(08:58):
if they're opening up, if they have opened up new
markets for distributions. So I think what the Trump administration
has done is isolate certain adversaries, So think Iran, Russia,
China by going on this goodwill trip to the Middle East.
Speaker 2 (09:18):
Let me show you a chart, and this chart shows
that as of today's market open, Nvidia jumped above Apple
as the world's second most valuable company. Microsoft remains in
place as the world's most valuable company. Given everything that
we've discussed and the events of the last twenty four hours,
where do you need to be right now?
Speaker 3 (09:39):
Nancy?
Speaker 2 (09:39):
In the infrastructure play or in the software Hyperscala play
with Microsoft.
Speaker 5 (09:45):
So I do think at the margin you want to
be adding to the software play, which is you know,
we added to Nvidia twice this year, but we also
added to Microsoft and Palanteer and then some of the
cyber names Oracle as well on the software side. So
I think that is going to be the next stage
of build out. And we took the proceeds from names
(10:06):
like Dell that we felt like had had a nice run,
and you know, on evaluation basis relative to growth and
margins was probably mostly worked out. It's you know, that's
been a good call so far. But I think you
want to if you have to pick, I think you
want to pick software over hardware.
Speaker 2 (10:26):
Nancy Tangler of laf for Tengler Investments, thank you very much.
Ten cents or revenue grow at its fastest pay since
twenty twenty one, posting a thirteen percent jump in sales
to twenty five billion dollars in the March Cores. The
(10:48):
results giving confidence to investors that China's most valuable company
could weather a potential global downturn in twenty twenty five.
For more, bloombergs Henry Wren joins us and Henry. I mean,
what are the main factor is the drive growth in
ten cents business right now?
Speaker 6 (11:04):
Yeah, two growth engines to mention one, the most important
one is the domestic gaming business and that has been
the key driver for the quarter, and the company said
that it's evergreen games such as Owner of Kings has
registered record high levels of gross receipts in the quarter
and that has been the most important driver. And some
(11:24):
neurogames also shine as well. For example, the twenty twenty
four release game called the Delta Force also has become
one of the most played games in China. Another driver
has been about the advertising revenue, which grew by about
twenty percent in the first quarter, and that's down to
the Wichat app, the short form video platform embedded in
(11:44):
Wichat that has impressed as well.
Speaker 2 (11:47):
This is a company that's heavily investing in AI research
and ways to monetize to create products with AI.
Speaker 3 (11:55):
What do we learn about that?
Speaker 6 (11:58):
Yeah, A lot of focus you can imagine, probably on
the analysts core is about, you know, whether what's your
plan about AI investments and how do you look about
the recent band on restrictions on AI chips in China
and the company gave a very long but pretty honest
answer in terms of restrictions, and first, in terms of investments,
(12:19):
the company is still investing hard. In terms of CAPEX,
we are talking about the company doubling.
Speaker 3 (12:24):
Its capex versus versus.
Speaker 6 (12:26):
A year earlier, although easing of slightly from the four
Q levels. But in terms of restrictions, the company said well,
in terms of the key businesses, for example, the promotion
of advertising as well as the gaming business, and the
current backlog of AI chips is probably enough, but in
terms of AI training, the company needs more powerful AI chips,
(12:48):
the more powerful cluster of chips. However, the focus for
now is to improve on the software side given the restraint.
Speaker 2 (12:56):
Blue Legs Henry Ren on all things ten Cent, thank
you very much. Another story, we're tracking no fee banking
startup Chime filed publicly for an IPO resuming plans. It
is placed on pause when Trump's tariff plans world markets
last month. It's the latest company fast tracking its public
offering prospects. More on the IPO outlook. Bloomber's Katie Roof
(13:17):
joins us and Katie. You know, we're tracking so many
names at once now, which is interesting of itself.
Speaker 3 (13:22):
Tell me about Chime.
Speaker 2 (13:23):
What we know about this, the mechanism at which they
want to go to market.
Speaker 7 (13:28):
Yeah, so we saw Chimes IPO filing yesterday. You know,
they're the no fee bank that was valued at twenty
five billion in the twenty twenty one boom. They've raised
a lot of money from many different investors, including Memlo
Adventures and Iconic. They usually when there's a filing, you
(13:51):
want to go public a couple of weeks after you
start your roadshow, so usually within a month, although recently
the tariffs had delayed, so all the ones that had
filings flop public. But you know, we're starting to see
IPOs again with e Toro.
Speaker 3 (14:08):
With Etro. If you're just joining the program.
Speaker 2 (14:10):
Just before we came on air, e Toro's US shares
were indicated to open Kadie at sixty three dollars fifty
cents each. Sixty three dollars fifty cents each. The IPO
priced at fifty two. We're waiting for that start of trading.
E Toro is an interesting one Israel based trading platform.
Kind of arrival to Robin Hood. Tell me about this IPO.
Speaker 7 (14:32):
Sure, well, it was a long time coming, not just
you know, with IPOs getting delayed repeatedly the last few years,
but also this is a startup that's been around for
more than fifteen years and you know they're finally going
through with their IPO. If you look at a comp Robinhood,
Robinhood's been surging you to date. So it actually makes
(14:53):
a lot of sense that e Toro would want to
go public in a market like this.
Speaker 2 (14:57):
Bloomers, Katie Roof and all things IPO, thank you very much. Now,
coming up on Bloomberg Technology, we're going to hear from
the Twilio CEO Cozmer Ship Chandlers. The company kicks off
its Signal Developers conference back in person for the first
time since twenty nineteen.
Speaker 3 (15:12):
This is Bloomberg Technology.
Speaker 2 (15:24):
I caught up with Twilio CEO kozmer Ship Chandler as
the company's bringing back it's Signal Developers conference to San
Francisco in person for the first time since twenty nineteen,
and that kicks off today and as a part of that,
they announced a new multi year partnership with Microsoft.
Speaker 8 (15:42):
So with respect to Microsoft, we announced a multi year
strategic partnership. Obviously they're an incredible brand that they've got
great enterprise scale. We really view it as two great
companies coming together to be able to deliver on the
vision that.
Speaker 3 (15:58):
We've laid out.
Speaker 8 (15:59):
In particular, we're going to use them for their amazing
AI technology. I think they've done some really interesting things
with respect to as youre AI workloads. Again, we're going
to bring that together with our contextual data capabilities plus
our communications all in one platform. I think importantly, we're
increasingly going to market as an infrastructure layer, one that
(16:24):
unlocks the customer experience layer of the Internet, if you will,
and I think Microsoft's can be a big part of
that story.
Speaker 2 (16:31):
So do we view this as kind of a sales
channel move? You know, there's an argument that working with
Microsoft in this way on a shared common platform helps
Twilio go after a much larger addressable market in which
it hasn't historically played.
Speaker 3 (16:49):
I think that's.
Speaker 8 (16:49):
Definitely a possibility as time goes on. But we're really
starting from the foundations as a technology partnership. You know,
we both pride ourselves on delivering technologies for Builders. As
I mentioned a moment ago, you know, Builder is very
much in the ethos of the company, their technology conference,
which is in a week is labeled Build and so
(17:10):
I think that just fits nicely together, and.
Speaker 3 (17:13):
I think we'll see how things go there.
Speaker 8 (17:15):
We're very proud of some of the abilities that we're
launching together, and I think it does open the door
for commercial relationship down the road that.
Speaker 2 (17:24):
Was Twilio's CEO Kozma Ship Chandler, from partnerships to team sports.
Speaker 3 (17:30):
That's what Bench Capital has always been a bit of.
Speaker 2 (17:33):
But now we're seeing the rise of the solo general
partner where just one person raises the money and makes
investing decisions. Joshua Browder is one such solo GP. His firm,
Browder Capital, just announced a thirty million dollar raise for
its fourth fund. Joshua is with me in the studio
and in those watching. Probably know you best is the
(17:54):
CEO of Do Not Pay, which short description is an
AI powered lawyer chatbot that originally helps you get out
of parking tickets. Why do you want to raise that
much money and invest it on your own without any partners?
Speaker 9 (18:08):
So I specialize in backing young founders. I'm an investor
in more Tiel fellows than anyone else, and I think
young undiscovered talent is really a great investment opportunity. I
was lucky to be the first investor in a company
called Owner, which yesterday announced around a one billion valuation.
Speaker 2 (18:25):
Right, So you took them from basically precede when you
made your investment to unicorn status. So you're now saying
you think you can do this.
Speaker 9 (18:35):
I think that everyone is chasing hype, but young founders
are really the future. And I love undiscovered people that
everyone is passing on, and I go all in. I
have one staying with me right now in my apartment.
Speaker 2 (18:47):
I put there, what do you mean by that? So
you've invited someone you've invested in, given them.
Speaker 9 (18:52):
A home, Yeah, give them a home, give them their
first check, and really put them on the circuit. And
I love to relive my own founder journey and founders
working with other founders.
Speaker 2 (19:01):
So the core question here is why is that more
beneficial to the founder than them taking a check from
one of the giant firms.
Speaker 9 (19:09):
They're not even ready to take one from the giant funds.
I catch them on day one, and everyone is chasing hype.
I think the way to winners actually create your own
hype and create your own winners.
Speaker 2 (19:20):
It's interesting where you raise the money from. So one
of the anchors of fund for is Sequoia, a very
large firm.
Speaker 3 (19:28):
We will have a partner from Sequoia on later in
the program.
Speaker 2 (19:31):
But Mark and Dreason also contributed to the fund personally
with his own money.
Speaker 3 (19:36):
Why might he do that?
Speaker 9 (19:38):
I think he has a tradition of putting first fund
managers in business, and this is my first institutional fund.
I should mention he's also the first investor.
Speaker 3 (19:46):
And do not pay.
Speaker 2 (19:47):
But he did that through Endres and Horowitz. That's a
giant firm. So now he's giving money to you personally
out of his own pocket because he feels that you
can what get to founders earlier than Andresen Horowitz can.
Speaker 3 (20:00):
At this stage, I.
Speaker 9 (20:01):
Would just say, it's about helping the ecosystem.
Speaker 2 (20:04):
What's the strategy here, what kind of size checks where
you write, what cadence of deals you want to do
because we're talking early stage.
Speaker 9 (20:12):
So there's so much noise right now. People are doing
dozens or even hundreds of deals a year. I want
to take the opposite approach. I take one person every
month or every other month and go all in for them,
and that can be a two hundred K check and
it can be as high as a million dollars?
Speaker 2 (20:26):
Is it like more akin to an incubator than it
is to sort of traditional.
Speaker 3 (20:31):
Seed series A series B round.
Speaker 9 (20:33):
It's really up to the founder to build their business,
but it's almost like an incubator. I feel like I'm
a railroad conductor putting them on the right track.
Speaker 2 (20:41):
You also have a job at Do Not Pay. How
are you going to manage that? You know, leading your
own startup as well as backing others finding the.
Speaker 9 (20:49):
Next Do not Pay founders really love to work with
other founders, and I think it's an unfair advantage being
a founder and investor. No one likes to work with
a money manager or a professional investor. And because I
can give that founder energy and share solutions to problems
that I've overcome, founders really appreciate that.
Speaker 2 (21:08):
What are the learnings you're taking from the Do Not
Pay story in how you want to approach this? Like
I recall a story where you had breakfast with Mark
and recent in twenty sixteen, and at that time Do
Not Pay was going to be a not for profit,
but you were convinced otherwise by him.
Speaker 9 (21:24):
Yes, and the tiniest moment or strategy. Change can change everything,
and I want to be that for my founders. I've
dealt with problems that I can help them uniquely with.
So for example, how to get that app classified so
that they're not paying thirty percent to Apple, which is
something that we always deal with.
Speaker 2 (21:42):
The Do Not Pay Joshua Browder, CEO Do Not Pay
plus the solo GP and founder of Browder Capital.
Speaker 3 (21:49):
Thank you very much.
Speaker 10 (21:58):
Apple is investing five hundred billion dollars, the video is investing,
and I see my friend is here, Jensen. That's very
good wherever you may be. I thank you very much
because he's putting in five hundred billion dollars. TSMC is
investing two hundred billion, and with this trip we're adding
over one trillion dollars more in terms of investment.
Speaker 2 (22:22):
Welcome back to Bloomberg Technology, Imed Ludlow in San Francisco,
and that was President Trump there in Riad yesterday talking
up all of the deals that have taken place in
the last twenty four hours, largely in AI infrastructure. When
it comes to financial markets, there's like a bit of
fatigue out there, although up basically half a percentage point.
Then as that one hundred is out performing other major innesses.
What the President also said on Air Force one last
(22:43):
night is that he wants America to lead in both
the theaters of AI and crypto, although bitcoin under a
bit of pressure one hundred and three thousand or so
US dollars per token. These are the single names that
we're really focused on in tech stocks right now, and
they are printedly the chip makers and Video and AMD
both securing multi year, multi billion dollar deals to ship
(23:05):
their latest generation AI accelerators to the Kingdom of Saudi Arabia,
and Bloomberg also reporting citing sources that a deal with
UAE is coming as well. Bloomberg's Amri Horden is in
the golf and has been following the latest on President
Donald Trump's visit to the Middle East and joins US
now at AMH. The centerpiece of all of this is
(23:25):
the deal between two leading or maybe more than two
leading American technology companies and their access to markets in
the golf.
Speaker 3 (23:36):
Yeah.
Speaker 11 (23:36):
Absolutely, ed. This is really one of the standout pillars
of the President's trip, and it's transformational for a lot
of these golf countries, which traditionally have relied upon their
influence their wealth being from natural resources to now they're
thinking about the future, and to have that future, to
have data centers, they need to get their hands on
advanced semiconductors. And you know, as well as anyone else.
(23:58):
Under the Biden administration, and there was frustration with these
geopolitical swing states on getting access to those advanced technologies.
Speaker 3 (24:05):
There was something called the diffusion role.
Speaker 11 (24:07):
The Trump administration decided they were going to cancel it. And
I actually quickly had a conversation with Jensen Wang last
night as he was walking into this honorary dinner with
the President in riod and I said, what do you
think they rescinded.
Speaker 3 (24:19):
The diffusion role? And he looked at me and said, rescinded, canceled.
Speaker 11 (24:23):
AMD and VideA are elated about this new marketplace they
can come to when it comes to advanced technology. But Ed,
you know, there is still this China question that is
looming over all of these deals.
Speaker 2 (24:37):
Right the business in the golf, Jensen can take potentially
like market opportunity lost in China and make much of
it back in the golf based on the research I've
seen this morning, the business of geopolitics, those outstanding questions
on China and there are more deals to be done
between the United States and the nations that the president's visiting.
What happens next amh.
Speaker 11 (24:57):
Yeah, He's going to go to UAE, And we have
a report that potentially the UE is going to buy
one hundred million of Nvidia's high tech, these advanced semiconductor chips.
No surprise in the sense that Sheik Tawnun was in
the White House just a few weeks ago and he
then left and the UE announced one point four trillion
(25:19):
dollar investment they would like to make. But an asterisk
a part of that deal, of course, is that to
make that kind of investment, they need access to these chips.
But ed you talk about Nvidia and this potential new
market share they can get in the golf. When I
talk about China though, and the conversations that are happening
in the region, especially bilateral conversations, and probably some of
(25:40):
these conversations still to be had because they're working this out,
is that if these countries get access to these chips,
how do they make sure the tech does not leak
to China. That is still a national security concern that
has bipartsed and support in Washington, d C. These golf
States want to work with the United States to make
sure they can do that. But potentially you can see
(26:03):
almost these AI data centers hubs where they're on these lands,
whether it's in the United Arab Emirates or whether it's
in the Kingdom of Saudi Arabia. But the US, and
this is a story I had reporting on, but the
US would control the access to that tech. Is they
want to make sure that that technology does not get
into the hands of Beijing.
Speaker 2 (26:23):
The US controlling access to the technology. Bloomberg Zamorine Hordon
in Doha, Kata, thank you very much. Let's pivot from
the geopolitics of AI to the investing side and bring
in someone who's been involved in the sector for a
long time. Constantin Bula specialized in AI machine learning investments.
Speaker 3 (26:37):
He's a partner at Saquoa.
Speaker 2 (26:39):
Capital where last year nearly seventy percent of the startups
the firm invested in.
Speaker 3 (26:44):
Were AI companies.
Speaker 2 (26:45):
Let's start with just simply your reaction to the AI
infrastructure deals of the last twenty four hours. US technology
going to the golf and setting up data centers and
AI development in that nation.
Speaker 12 (26:58):
Well, thank you, Ered, It's always great to be here,
and these new deals are testaments to the fact that
AI artificial intelligence is not just a matter of corporate success,
it is a matter of national imperative. It is a
great sign of the importance of this industry. I think
back to a decade ago, and we had concerns about
(27:21):
the US staying ahead of AI. There are really four
key pillars to AI strength. There's the compute, there's the power,
there's the data, and there's the algorithms. Thinking back to
that last wave of AI, the reason why the United
States has been so far ahead is that fourth pillar,
those algorithms. So as we develop new technological allies around
(27:42):
the world for compute, for power, for data, it's really
important that we stay on the absolute forefront when it
comes to algorithmic advancement.
Speaker 3 (27:53):
We have the best researchers in the world. We have
the best engineers in the world. Okay, I'm sorry to interrupt.
Speaker 2 (27:57):
Seequensanteam with some breaking news crossing the termino from the
White House. President Trump has secured one point two trillion
dollars in economic commitments in Katar. The Katar commitment is
one point two trillion dollars according to the White House.
There are economic deals worth two hundred and forty.
Speaker 3 (28:14):
Three zero point five billion.
Speaker 2 (28:16):
This is something the president is announced on the ground
in Doha. We were just speaking with Bloomberg's Amri Horden,
who is in Doha, Katar, and she noted that this
is what's pending. We don't have the specifics in terms
of sector, in terms of companies involved, but as we
get that, we'll bring it to you. And right now
we'll go back to the conversation we were having, which
is there is US leadership in the field of AI infrastructure.
Speaker 3 (28:37):
You basically break down the four categories.
Speaker 2 (28:40):
One that is increasingly crossing my desk is AI memory.
In the context of agentic AI, this is something that
people say, we need to invest in this and solve it.
I personally don't have the expertise or academic grounding to
understand it. Why is your industry talking about it?
Speaker 3 (28:58):
You're exactly right, AD.
Speaker 12 (29:00):
So there's compute, there's obviously the data, there's obviously the
power and the algorithms. But another important component is memory
because when you interface with an agent, you wanted to
remember you, of course, but it also has to remember itself.
Think about a physician, for example, every time they interface
with a patient, an agent is going to be able
(29:20):
to help them think back to previous interactions, not just
what the patient said, not just their vitals, not just
data about the patient, but over time, using tools and
companies like open Evidence, the physician's going to be able
to remember exactly what the interaction was like, how to
communicate to the patient, and memory is going to become
more and more important.
Speaker 3 (29:39):
The question is where does all of this activity take place? Right?
Speaker 2 (29:42):
The subject to today's Bloomberg Big Take is Deep Seek Right,
and the Big Take presents the hypothesis that the company's
sudden emergence last month illustrated how China's industry is striving
irrespective of US political policy. Jensenmong told me in March,
(30:03):
more than fifty percent of AI researchers are in China.
When you think about the issues you've outlined, do you
agree with that hypothesis presented that China's AI industry is
thriving but also looking at the same issues that your
industry is looking at H Well, it is true.
Speaker 12 (30:19):
That they have amazing researchers there, but it's also true
that we have some of the most creative, brilliant researchers
on the planet. Here's an example. Just recently, we hosted
our annual AI conference, Sequoia AI Assent. We brought together
one hundred and fifty of the top minds in the industry.
This is everyone from Jensen h Wang and Sam Altman
to the young up and comers, and the number one
(30:41):
technical topic of the conference was a concept called tool use.
Tool use is all about ais working with each other.
Speaker 3 (30:50):
We're teaching the computer how to use the computer.
Speaker 12 (30:52):
And there was fortunately a big advancement in our industry
over the past few months a new protocol called Model
Context Protocol. Think about each AI agent as an expert.
Think about every piece of software as an expert. Your
CRM is really good at remembering your previous interactions with customers,
for example. The issue is that those experts don't necessarily
(31:14):
speak the same language. What this new protocol allows is
a universal translation mechanism so that all these AI agents
and all these softwares can communicate. That is pivotal to
us as the United States staying ahead. We have to
be working together. I'll give an example of what this
protocol could do for us. We have a portfolio company
called Rocks. It helps the best sellers do really great
(31:36):
research before meeting with a potential buyer. They can not
only do that research now they use MCP to connect
and actually make a pitch deck directly on the specific needs.
Speaker 3 (31:47):
Of that user.
Speaker 12 (31:48):
They can even plug into cognition or cloud code and
write an entire demo. That's how we stay ahead of
the curve. An AI collaboration and working together as researchers
and engineers.
Speaker 3 (31:58):
Sequoiapon Team Dealer.
Speaker 2 (32:00):
Great to have you back here on Bloomberg Technology, Thank
you very much. Now coming up, the sleep fitness startup
eight Sleep joins us to discuss its growth strategy and
its new product line up by conversations the next This
is Bloomberg Technology. Sleep fitness startup eight Sleep is launching
(32:29):
an expanded suite of products today. The company makes high
tech temperature control mattress covers and systems, and it's also
expanding into new markets. While talking up a potential IPO,
eight Sleep CEO Mattheo friend Chesketti joins us from New York.
This is interesting. In my world, everyone around me tracks
the data so carefully, maybe through a wearable and other means.
Speaker 3 (32:53):
In sleep.
Speaker 2 (32:54):
Let's start with what's new What is the actual proprietary
technology you're offering and how it helps consumer?
Speaker 13 (33:01):
Yeah, of course we develop our latest technology, it's called
POD five. At eight Sleep, we develop technologies to improve
your sleep performance, and POD five is a modular sleep
system that controls your body temperature, your elevation, and sound
to maximize your sleep. It does everything based on your biometrics,
(33:21):
so we're also able to track everything about your sleep
and your health in real time, and then we adjust
the environment for you to improve your net of sleep.
Speaker 2 (33:33):
These technologies and products that a consumer can get access
to via the health insurance. Are you part of a
broader sort of health network or system that to go
to market channel for you?
Speaker 13 (33:43):
No yet right now we just sell direct to consumers,
but it's part of our vision. At the end of
the day, we see a future where the POD will
be remborsed by insurance companies because we have hard data
proving that we can improve your sleep by up to
thirty four percent.
Speaker 2 (34:00):
The reason I ask is you've had incredible growth, right
Revenue is ten x since twenty twenty a five year
kegre sixty percent and you know those are numbers, but
what is it that's driving the growth, like what is
it geographically, the demographic of the consumer, the sales channel
that's helping you.
Speaker 13 (34:17):
Well, First of all, I think our results. People really
love the product and they see the benefits. Some of
our customers sometimes they also use wearables and they can
see the difference in their own wearables of when they
use the pod or when they don't. But what is
really driving our growth, which is connected to this is
world of mouth. A very large part of our revenue
(34:38):
is just because our customers recommend the product to other people.
At the same time, we keep expanding. We're right now
in thirty countries and we expect to open Asia by
the end of the year.
Speaker 2 (34:48):
I think you're also looking at Saudi Arabia given the
news of the last twenty four hours.
Speaker 3 (34:52):
How did that come about?
Speaker 10 (34:54):
Yeah?
Speaker 13 (34:54):
Right, We were so lucky. We didn't know obviously about that,
and we are announcing Saudia Rabio today, which we expect
to be a very large market. We were already in
UAE and the fact that the president and so many
other key CEOs are there is amazing.
Speaker 2 (35:10):
You're also evaluating China. How realistic is it from a
market perspective at the end user? But also supply chain
for you to go into that market.
Speaker 13 (35:19):
Yeah, we expect to launch in China by the end
of the year. Is a market that we know really well.
We have been manufacturing in China since twenty fourteen when
I moved there to really kick off the manufacturing of
eight slip, and we expect to start selling in that market.
As I said before the end of the year in
Q one of the latest, will.
Speaker 2 (35:38):
You support your growth with an IPO mateo?
Speaker 13 (35:41):
I think as part of our strategy absolutely. I think
great hartwore companies like Tesla and Apple, they all went
public fairly early. I think it will give us a
discipline and it will also prove that we are here
to stay. We are very ambitious about what we can
do for humanity to improve their health and their sleep materia.
Speaker 2 (36:00):
We're running short on time, but whatever you want to
get to is your core competencies. Have you got brilliant
software engineers, brilliant hardware engineers.
Speaker 3 (36:07):
What is your biggest advantage?
Speaker 13 (36:09):
I mean is really I right, all our engineers, they
come from the biggest companies in the world. In terms
of AI. We really apply AI and hardcore technologies to
your sleep and your health I think there is no
other company in the world improving your sleep in the
way we do with software technology ANDII and.
Speaker 2 (36:27):
Out Mateo FRANCISCTTI, CEO of Eights Sleep. Great to have
you here on Bloomberg Technology.
Speaker 3 (36:32):
Thank you.
Speaker 2 (36:41):
A ban on supersonic commercial flights over US Land could
soon be history. Bipartisan group of lawmakers are looking to
lift restrictions over civil jets flying over land at supersonic speeds,
potentially opening the skies to a new era of high
speed travel. At the center of that effort is Boom Supersonic,
(37:01):
which is developing the next generation of supersonic jets. Joining
us now is Boom CEO Blake shol And. Look, this
legislative pathway is absolutely critical to whether or not you're
going to be able to achieve what you want to achieve.
What is the path from here and will it happen?
Because without the legislation, you can't get your business off
(37:23):
the ground.
Speaker 3 (37:23):
Pardon the pun.
Speaker 14 (37:25):
Yeah, Well, hey, good morning, Ed, thanks for having me.
Speaker 3 (37:27):
Yeah.
Speaker 14 (37:27):
No, we've had one of the dumbest regulations ever in aviation.
In nineteen seventy three, we put a speed limit in
place over land and what that means is we can
fly supersonic from the US to Europe or from US
to Asia, but we can't fly supersonic right here in
the US. And with our test flights in January and February,
we prove we can fly supersonic with no audible sonic boom.
(37:50):
And I think this is just common sense. If we
can fly coast to coast supersonic without any sonic boom
that anybody hears in the ground, obviously that should be allowed.
Speaker 2 (37:57):
The big political point here for those laws is that
your competitors pursuing this field on the technology side are
in China, are they not?
Speaker 3 (38:06):
Yeah?
Speaker 14 (38:07):
I think you know, we really are watching a slow
motion train crash here right now. China is shipping a
seven thirty seven Clone. They're working on a Boeing seven
eighty seven Clone. Boeing has not made an all new
airliner in over twenty years now, and China announced earlier
this year they've entered the supersonic race. We still have
the opportunity to maintain American leadership in aviation, but we've
(38:29):
got to get out of our own way. We've got
to cut the red tape that's been holding back progress
in flight for fifty two years, Blake.
Speaker 2 (38:36):
This administration, the Trump administration has been quite engaged in
the field of autonomous driving in ev toll for example,
have you spoken with Transport Secretary Duffy or indeed met
with the President to discuss America's efforts in supersonic The.
Speaker 14 (38:52):
President has a model of the overture airliner that I
think he keeps outside of the Oval Office. We've had
great conversation with multiple cabinet members, including Secretary Duffy. It's
really hard to find anybody who wants to continue to
hold flight back. And now that we've proven that we
can have supersonic flights to an audible boom, Really, this
is something that I think everybody can be behind.
Speaker 2 (39:14):
Your technology is in the design of the wings, but
mostly in this engine. Right where are you at in
agreements to build the plane the engine at commercial scale?
Speaker 14 (39:24):
You know, the surprising thing about boomless cruise is actually
a software fix. It's not about the wings or the
engine exactly. It's actually about how you fly the airplane
such the boom never reaches the ground. And that's a
software innovation that's actually pretty easy to deploy.
Speaker 3 (39:39):
And as we speak today, we.
Speaker 14 (39:40):
Prove when we can build a supersonic jet. With the
XB one, we're building the first full scale symphony engine.
That's the first independently developed supersonic jet engine. It's going
to be running on a test stand around the end
of the year, and we're looking forward to start building
the first airliner on our factory in North Carolina next year.
Speaker 2 (39:57):
What I recognize in some an now I guess fields
like ev Toll, for example, is a pivot or shift
away from consumer passenger model to looking at defense applications.
Is that in Boom Supersonic's future, Blake.
Speaker 14 (40:12):
Well, the factory that we're building, all the infrastructure are building.
You know, if if worse came to worse in wartime,
we could pivot from building civil products to building defense products.
I think that's an important sort of rebirth in the
defense industrial base. However, the most important thing, you know,
I think we could do for the US government has
provide fashion transportation for the most important people. We'd love
(40:33):
to replace the rusty old seven fifty sevens and seven
forty sevens that carry around our VIPs today with airplanes
that could help them arrive in half the time.
Speaker 3 (40:41):
I never flew on Concorde.
Speaker 2 (40:43):
You know, I kind of have this peripheral knowledge of
it from when I was a kid, But I think
about what XB one did in January, right, and that
you reached MAC one point one two two a thirty
five thousand feet. How are you going to sort of
self assess your next milestones? What are the next milestones?
Speaker 14 (41:00):
Yeah, what's a matter of scaling up. XB one was
the first airliner that was actually built out of proven
airliner technology that scales up to build a supersonic airliner,
and so we're just scaling up. So next next milestone
is a full scale engine around the end of this year.
Next milestone after that is construction of the first full
scale airliner. That's next year. We want to roll it
(41:22):
out in twenty seven, flight in twenty eight, conduct extensive testing,
and be ready for passengers by the end of twenty nine.
Speaker 2 (41:27):
Blake, before we let you go, how capital intensive is
this view and what are your capitol requirements in terms
of raising new funds?
Speaker 14 (41:35):
Building airplanes is certainly capital intensive, But what we've found
is a small, focused team, enabled with great people AI
design tools can do this about ten times more efficiently
than the big guys can. XB one was designed, built
and flown by a team of about just fifty people
with about a tenth of the capital ever used before
to create a supersonic aircraft. So we will continue to
(41:58):
need capital, but it's a shockingly small amount compared to
it you would see.
Speaker 2 (42:02):
At a bow In or Earbus Boom Supersonic CEO Blake Show,
Great to have you here on Bloomberg Technology.
Speaker 3 (42:06):
Thank you.
Speaker 2 (42:07):
That does it for this edition of Bloomberg Technology. Don't
forget check out the podcast. So many of you listen
to this show as a podcast. You know where to
find it on Apple, Spotify, iHeart and of course on
all the Bloomberg platforms. Big, big focus on AI infrastructure
as the President makes his way through the Middle East,
but from San Francisco, this is Bloomberg Technology.
Bloomberg Audio Studios, podcasts, radio news from the heart of
where innovation, money and power collide in Silicon Valley and beyond.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2 (00:35):
Live from San Francisco. This is Bloomberg Technology.
Speaker 3 (00:38):
Coming up.
Speaker 2 (00:39):
The Trump administration moves to rescind the AI diffusion rule
launched by President Biden, looking to draft its own approach. Plus,
the US is clearing a path for Saudi Arabia and
the UAE to pursue their AI ambitions, with Nvideo and
AMD winning multi billion dollar deals in the region, and
a ban on supersonic commercial flights over the US land
(01:01):
could soon be history. Let's get to financial markets, the
technology sector and AI infrastructure. These are the big movers
to the upside. We talked about in the last twenty
four hours. The deals that in VideA and AMD one
to sell their cutting edge processors or AI accelerators to
Saudi Arabia. Note the outperformance of AMD up around five percent.
They also are doing a six billion dollar additional share buyback.
(01:24):
They already had four billion dollars of buy back outstanding.
Super Micro, with its own twenty billion dollar deal for
data center.
Speaker 3 (01:31):
Infrastructure in the Kingdom.
Speaker 2 (01:32):
Then there's the rethink on rules about technology export controls
to the Gulf and other nations. The US has formally
moved to rescind the AI diffusion rule and made it
clear it would no longer be enforced, while the bureaucratic
process of revoking the rule unfolds, Bluemogs Mike Sheppard joins
US now for more. We're making progress towards a place
(01:54):
where America's biggest technology companies can sell that tech into
read like the Gulf, But China is an outstanding question.
Speaker 4 (02:05):
China is the outstanding question, and we're getting no signal
from the Trump administration that there will be any relaxation
of restrictions when it comes to China, especially not in
the wake of deep Seek's breakthrough. We did see just
about a month ago the Trump administration moved the bar
and Video from selling its H twenty chip to China.
This is a device that was designed for the Chinese market,
(02:27):
and that is out of concern that the startups in
China could use this chip as part of the inference
model that could achieve AI breakthroughs. And the same thing
applies to AMD's MII three to eight chips, so we
are not seeing any relaxation of standards there. And while
the administration is moving away from the AI diffusion rule,
(02:48):
which set up, as you remember ed, these three broad
tiers of countries governing their ability and their access to
buy AI chips from amdm from Nvidio especially, they.
Speaker 3 (03:00):
Are replacing them with something else.
Speaker 4 (03:01):
So this will be we expect a more bilateral approach,
that each nation would forge its own agreement with the
US and achieve some sort of security understanding whereby China
would be prevented from acquiring the technology either physically or perhaps.
Speaker 3 (03:17):
Via the cloud.
Speaker 4 (03:18):
They would need to show security arrangements and standards before
they'd be able to get through the door and acquire
those chips.
Speaker 2 (03:24):
At the state of play of the last twenty four hours,
is Nvidia, the most important US technology company right now,
has a deal with Saudi Arabia. AMD has a deal
with Saudi Arabia. But in terms of what comes next
you alluded to it. We expect bilateral agreements between the
United States, Saudi Arabia, and potentially the UAE at a
(03:46):
nation to nation level.
Speaker 4 (03:48):
Well, that's right, and we were expecting to see some
of that even during this trip, the president is still
in the region. He has left realities and cutter right
now accepting the perhaps new area one that we've heard
about so much this week, and then as next up
will be in the United Arab Emirates, and they also
have a huge stake in the AI game, and they have,
like Saudi Arabia, big ambitions in this area. Their G
(04:13):
forty two company is really looking to leave a mark
in the region. And one deal that our colleague Mackenzie
Hawkins broke the news on would be perhaps allowing G
forty two to buy hundreds of thousands of these AI
processors from Nvidia over the next several years, and that
would be a key breakthrough for the company and for
(04:37):
the Emirate, which has these ambitions of expanding into AI
and into advanced technology as way of diversifying its economy.
Yet it's really critical for them to expand beyond just
oil and gas that has made them so rich.
Speaker 3 (04:49):
Over the years.
Speaker 2 (04:50):
Bloembags Michael Sheppard out of Washington, d C. Thank you
very much. Let's get more in the market.
Speaker 3 (04:55):
Reaction.
Speaker 2 (04:55):
Bank of America came out saying that Nvidia and AMD
have a multi billion dollar opportunity related to AI infrastructure projects,
specifically in Saudi Arabia, and there's a lot of bullishness
out there about the prospects of the deal announced in
the last twenty four hours. Nancy Tegler is CEO and
CIO of Laffatengler Investments, and those were deals between American companies,
(05:17):
leading American technology companies and those that Golf Nation of
Saudi Arabia is an investor. How did you react and
respond to that news?
Speaker 5 (05:25):
Well, thanks for having me ed. I mean, of course
it's optimistic, rhetoric and potentially super beneficial to the ultimate
earnings of the companies. We need to see when these
investments come in and the timing and the volume. But
I think just on an overall basis, what it does
(05:46):
is it replaces the lost revenue from China. And it
may not dollar for dollar, but it does psychologically. And
so we were in buying these names. I've been on
with you many times. We were buying in January, February, March,
not just in Nvidia, but a number of the software
related companies around AI and then of course Tesla. And
(06:06):
I think that's a lesson to everyone that this trade
is not over Wall Street tends to be very short
term focused. Investors like me tend to be longer term focused.
And what we learned yesterday is that is confirmation that
were early innings in this AI buildout and it is
potentially the fourth Industrial Revolution, and it is similar to
(06:30):
what we saw in the nineties in terms of productivity enhancements.
Speaker 2 (06:34):
Nancy, stay with us and bear with me. We have
some news crossing the Bloomberg terminal. E Toro Group's US
shares are indicated to open at sixty three dollars and
fifty cents each. This is pending trading on an IPO
that priced at fifty two dollars a share, so priced
at fifty two but indicated to open at sixty three
dollars and fifty cents. The marketed range was forty six
(06:56):
to fifty. E Toro basically a rival to robin Hood,
the trading and investment platform Israel based company, and this
is a IPO that would give the company at its
fifty two dollars IPO price and market cap of about
four point three billion dollars. Nancy Tanglo, while you're with us,
I see some green shoots. Is that one way to
(07:17):
put it in this US IPO market.
Speaker 5 (07:20):
Yeah, I do think you're right, ed. I mean, this
one makes me just a little bit nervous because it's
piling on today trading. I think in many regards, however,
I love seeing the retail investor engaged, in fact much
more so than the institutional investor. And I do think
that we'll continue to see acquisitions at M and A
(07:41):
in general. We just launched a MidCap strategy for that
very reason. So I do think this is bullish for
the economy and the overall market, and you know, I
commend them on their day one of trading.
Speaker 2 (07:54):
Let's go back to the big story, which I think
is AI infrastructure in the relationship between the United States
the golf. What we're trying to understand is what happens next.
Our colleagues at Bloomberg Intelligence did the analysis on how
much revenue in Nvidia and AMD will derive from that
golf region. So ten to fifteen billion dollars in annual
sales for Nvidia through twenty twenty seven, just one to
(08:17):
two billion dollars for AMD in the same region.
Speaker 3 (08:20):
But here's the key bit.
Speaker 2 (08:21):
Cushioning the blow from unchanged China export perves. We open
this program saying that the diffusion rule has been rescinded,
but a new, specific Trump era rule will come. How
do you think they will approach China?
Speaker 3 (08:35):
Yeah?
Speaker 5 (08:35):
I do think that is the good news in all this.
As I said earlier, the difficulty for investors in Nvidia
was what were they going to do if China was
taken off the table as a potential customer. So I
think you'll I still think we'll see chips sold to China.
The question is in what form? And then the question
is how much does Nvidia and AMD need that revenue
(08:58):
if they're opening up, if they have opened up new
markets for distributions. So I think what the Trump administration
has done is isolate certain adversaries, So think Iran, Russia,
China by going on this goodwill trip to the Middle East.
Speaker 2 (09:18):
Let me show you a chart, and this chart shows
that as of today's market open, Nvidia jumped above Apple
as the world's second most valuable company. Microsoft remains in
place as the world's most valuable company. Given everything that
we've discussed and the events of the last twenty four hours,
where do you need to be right now?
Speaker 3 (09:39):
Nancy?
Speaker 2 (09:39):
In the infrastructure play or in the software Hyperscala play
with Microsoft.
Speaker 5 (09:45):
So I do think at the margin you want to
be adding to the software play, which is you know,
we added to Nvidia twice this year, but we also
added to Microsoft and Palanteer and then some of the
cyber names Oracle as well on the software side. So
I think that is going to be the next stage
of build out. And we took the proceeds from names
(10:06):
like Dell that we felt like had had a nice run,
and you know, on evaluation basis relative to growth and
margins was probably mostly worked out. It's you know, that's
been a good call so far. But I think you
want to if you have to pick, I think you
want to pick software over hardware.
Speaker 2 (10:26):
Nancy Tangler of laf for Tengler Investments, thank you very much.
Ten cents or revenue grow at its fastest pay since
twenty twenty one, posting a thirteen percent jump in sales
to twenty five billion dollars in the March Cores. The
(10:48):
results giving confidence to investors that China's most valuable company
could weather a potential global downturn in twenty twenty five.
For more, bloombergs Henry Wren joins us and Henry. I mean,
what are the main factor is the drive growth in
ten cents business right now?
Speaker 6 (11:04):
Yeah, two growth engines to mention one, the most important
one is the domestic gaming business and that has been
the key driver for the quarter, and the company said
that it's evergreen games such as Owner of Kings has
registered record high levels of gross receipts in the quarter
and that has been the most important driver. And some
(11:24):
neurogames also shine as well. For example, the twenty twenty
four release game called the Delta Force also has become
one of the most played games in China. Another driver
has been about the advertising revenue, which grew by about
twenty percent in the first quarter, and that's down to
the Wichat app, the short form video platform embedded in
(11:44):
Wichat that has impressed as well.
Speaker 2 (11:47):
This is a company that's heavily investing in AI research
and ways to monetize to create products with AI.
Speaker 3 (11:55):
What do we learn about that?
Speaker 6 (11:58):
Yeah, A lot of focus you can imagine, probably on
the analysts core is about, you know, whether what's your
plan about AI investments and how do you look about
the recent band on restrictions on AI chips in China
and the company gave a very long but pretty honest
answer in terms of restrictions, and first, in terms of investments,
(12:19):
the company is still investing hard. In terms of CAPEX,
we are talking about the company doubling.
Speaker 3 (12:24):
Its capex versus versus.
Speaker 6 (12:26):
A year earlier, although easing of slightly from the four
Q levels. But in terms of restrictions, the company said well,
in terms of the key businesses, for example, the promotion
of advertising as well as the gaming business, and the
current backlog of AI chips is probably enough, but in
terms of AI training, the company needs more powerful AI chips,
(12:48):
the more powerful cluster of chips. However, the focus for
now is to improve on the software side given the restraint.
Speaker 2 (12:56):
Blue Legs Henry Ren on all things ten Cent, thank
you very much. Another story, we're tracking no fee banking
startup Chime filed publicly for an IPO resuming plans. It
is placed on pause when Trump's tariff plans world markets
last month. It's the latest company fast tracking its public
offering prospects. More on the IPO outlook. Bloomber's Katie Roof
(13:17):
joins us and Katie. You know, we're tracking so many
names at once now, which is interesting of itself.
Speaker 3 (13:22):
Tell me about Chime.
Speaker 2 (13:23):
What we know about this, the mechanism at which they
want to go to market.
Speaker 7 (13:28):
Yeah, so we saw Chimes IPO filing yesterday. You know,
they're the no fee bank that was valued at twenty
five billion in the twenty twenty one boom. They've raised
a lot of money from many different investors, including Memlo
Adventures and Iconic. They usually when there's a filing, you
(13:51):
want to go public a couple of weeks after you
start your roadshow, so usually within a month, although recently
the tariffs had delayed, so all the ones that had
filings flop public. But you know, we're starting to see
IPOs again with e Toro.
Speaker 3 (14:08):
With Etro. If you're just joining the program.
Speaker 2 (14:10):
Just before we came on air, e Toro's US shares
were indicated to open Kadie at sixty three dollars fifty
cents each. Sixty three dollars fifty cents each. The IPO
priced at fifty two. We're waiting for that start of trading.
E Toro is an interesting one Israel based trading platform.
Kind of arrival to Robin Hood. Tell me about this IPO.
Speaker 7 (14:32):
Sure, well, it was a long time coming, not just
you know, with IPOs getting delayed repeatedly the last few years,
but also this is a startup that's been around for
more than fifteen years and you know they're finally going
through with their IPO. If you look at a comp Robinhood,
Robinhood's been surging you to date. So it actually makes
(14:53):
a lot of sense that e Toro would want to
go public in a market like this.
Speaker 2 (14:57):
Bloomers, Katie Roof and all things IPO, thank you very much. Now,
coming up on Bloomberg Technology, we're going to hear from
the Twilio CEO Cozmer Ship Chandlers. The company kicks off
its Signal Developers conference back in person for the first
time since twenty nineteen.
Speaker 3 (15:12):
This is Bloomberg Technology.
Speaker 2 (15:24):
I caught up with Twilio CEO kozmer Ship Chandler as
the company's bringing back it's Signal Developers conference to San
Francisco in person for the first time since twenty nineteen,
and that kicks off today and as a part of that,
they announced a new multi year partnership with Microsoft.
Speaker 8 (15:42):
So with respect to Microsoft, we announced a multi year
strategic partnership. Obviously they're an incredible brand that they've got
great enterprise scale. We really view it as two great
companies coming together to be able to deliver on the
vision that.
Speaker 3 (15:58):
We've laid out.
Speaker 8 (15:59):
In particular, we're going to use them for their amazing
AI technology. I think they've done some really interesting things
with respect to as youre AI workloads. Again, we're going
to bring that together with our contextual data capabilities plus
our communications all in one platform. I think importantly, we're
increasingly going to market as an infrastructure layer, one that
(16:24):
unlocks the customer experience layer of the Internet, if you will,
and I think Microsoft's can be a big part of
that story.
Speaker 2 (16:31):
So do we view this as kind of a sales
channel move? You know, there's an argument that working with
Microsoft in this way on a shared common platform helps
Twilio go after a much larger addressable market in which
it hasn't historically played.
Speaker 3 (16:49):
I think that's.
Speaker 8 (16:49):
Definitely a possibility as time goes on. But we're really
starting from the foundations as a technology partnership. You know,
we both pride ourselves on delivering technologies for Builders. As
I mentioned a moment ago, you know, Builder is very
much in the ethos of the company, their technology conference,
which is in a week is labeled Build and so
(17:10):
I think that just fits nicely together, and.
Speaker 3 (17:13):
I think we'll see how things go there.
Speaker 8 (17:15):
We're very proud of some of the abilities that we're
launching together, and I think it does open the door
for commercial relationship down the road that.
Speaker 2 (17:24):
Was Twilio's CEO Kozma Ship Chandler, from partnerships to team sports.
Speaker 3 (17:30):
That's what Bench Capital has always been a bit of.
Speaker 2 (17:33):
But now we're seeing the rise of the solo general
partner where just one person raises the money and makes
investing decisions. Joshua Browder is one such solo GP. His firm,
Browder Capital, just announced a thirty million dollar raise for
its fourth fund. Joshua is with me in the studio
and in those watching. Probably know you best is the
(17:54):
CEO of Do Not Pay, which short description is an
AI powered lawyer chatbot that originally helps you get out
of parking tickets. Why do you want to raise that
much money and invest it on your own without any partners?
Speaker 9 (18:08):
So I specialize in backing young founders. I'm an investor
in more Tiel fellows than anyone else, and I think
young undiscovered talent is really a great investment opportunity. I
was lucky to be the first investor in a company
called Owner, which yesterday announced around a one billion valuation.
Speaker 2 (18:25):
Right, So you took them from basically precede when you
made your investment to unicorn status. So you're now saying
you think you can do this.
Speaker 9 (18:35):
I think that everyone is chasing hype, but young founders
are really the future. And I love undiscovered people that
everyone is passing on, and I go all in. I
have one staying with me right now in my apartment.
Speaker 2 (18:47):
I put there, what do you mean by that? So
you've invited someone you've invested in, given them.
Speaker 9 (18:52):
A home, Yeah, give them a home, give them their
first check, and really put them on the circuit. And
I love to relive my own founder journey and founders
working with other founders.
Speaker 2 (19:01):
So the core question here is why is that more
beneficial to the founder than them taking a check from
one of the giant firms.
Speaker 9 (19:09):
They're not even ready to take one from the giant funds.
I catch them on day one, and everyone is chasing hype.
I think the way to winners actually create your own
hype and create your own winners.
Speaker 2 (19:20):
It's interesting where you raise the money from. So one
of the anchors of fund for is Sequoia, a very
large firm.
Speaker 3 (19:28):
We will have a partner from Sequoia on later in
the program.
Speaker 2 (19:31):
But Mark and Dreason also contributed to the fund personally
with his own money.
Speaker 3 (19:36):
Why might he do that?
Speaker 9 (19:38):
I think he has a tradition of putting first fund
managers in business, and this is my first institutional fund.
I should mention he's also the first investor.
Speaker 3 (19:46):
And do not pay.
Speaker 2 (19:47):
But he did that through Endres and Horowitz. That's a
giant firm. So now he's giving money to you personally
out of his own pocket because he feels that you
can what get to founders earlier than Andresen Horowitz can.
Speaker 3 (20:00):
At this stage, I.
Speaker 9 (20:01):
Would just say, it's about helping the ecosystem.
Speaker 2 (20:04):
What's the strategy here, what kind of size checks where
you write, what cadence of deals you want to do
because we're talking early stage.
Speaker 9 (20:12):
So there's so much noise right now. People are doing
dozens or even hundreds of deals a year. I want
to take the opposite approach. I take one person every
month or every other month and go all in for them,
and that can be a two hundred K check and
it can be as high as a million dollars?
Speaker 2 (20:26):
Is it like more akin to an incubator than it
is to sort of traditional.
Speaker 3 (20:31):
Seed series A series B round.
Speaker 9 (20:33):
It's really up to the founder to build their business,
but it's almost like an incubator. I feel like I'm
a railroad conductor putting them on the right track.
Speaker 2 (20:41):
You also have a job at Do Not Pay. How
are you going to manage that? You know, leading your
own startup as well as backing others finding the.
Speaker 9 (20:49):
Next Do not Pay founders really love to work with
other founders, and I think it's an unfair advantage being
a founder and investor. No one likes to work with
a money manager or a professional investor. And because I
can give that founder energy and share solutions to problems
that I've overcome, founders really appreciate that.
Speaker 2 (21:08):
What are the learnings you're taking from the Do Not
Pay story in how you want to approach this? Like
I recall a story where you had breakfast with Mark
and recent in twenty sixteen, and at that time Do
Not Pay was going to be a not for profit,
but you were convinced otherwise by him.
Speaker 9 (21:24):
Yes, and the tiniest moment or strategy. Change can change everything,
and I want to be that for my founders. I've
dealt with problems that I can help them uniquely with.
So for example, how to get that app classified so
that they're not paying thirty percent to Apple, which is
something that we always deal with.
Speaker 2 (21:42):
The Do Not Pay Joshua Browder, CEO Do Not Pay
plus the solo GP and founder of Browder Capital.
Speaker 3 (21:49):
Thank you very much.
Speaker 10 (21:58):
Apple is investing five hundred billion dollars, the video is investing,
and I see my friend is here, Jensen. That's very
good wherever you may be. I thank you very much
because he's putting in five hundred billion dollars. TSMC is
investing two hundred billion, and with this trip we're adding
over one trillion dollars more in terms of investment.
Speaker 2 (22:22):
Welcome back to Bloomberg Technology, Imed Ludlow in San Francisco,
and that was President Trump there in Riad yesterday talking
up all of the deals that have taken place in
the last twenty four hours, largely in AI infrastructure. When
it comes to financial markets, there's like a bit of
fatigue out there, although up basically half a percentage point.
Then as that one hundred is out performing other major innesses.
What the President also said on Air Force one last
(22:43):
night is that he wants America to lead in both
the theaters of AI and crypto, although bitcoin under a
bit of pressure one hundred and three thousand or so
US dollars per token. These are the single names that
we're really focused on in tech stocks right now, and
they are printedly the chip makers and Video and AMD
both securing multi year, multi billion dollar deals to ship
(23:05):
their latest generation AI accelerators to the Kingdom of Saudi Arabia,
and Bloomberg also reporting citing sources that a deal with
UAE is coming as well. Bloomberg's Amri Horden is in
the golf and has been following the latest on President
Donald Trump's visit to the Middle East and joins US
now at AMH. The centerpiece of all of this is
(23:25):
the deal between two leading or maybe more than two
leading American technology companies and their access to markets in
the golf.
Speaker 3 (23:36):
Yeah.
Speaker 11 (23:36):
Absolutely, ed. This is really one of the standout pillars
of the President's trip, and it's transformational for a lot
of these golf countries, which traditionally have relied upon their
influence their wealth being from natural resources to now they're
thinking about the future, and to have that future, to
have data centers, they need to get their hands on
advanced semiconductors. And you know, as well as anyone else.
(23:58):
Under the Biden administration, and there was frustration with these
geopolitical swing states on getting access to those advanced technologies.
Speaker 3 (24:05):
There was something called the diffusion role.
Speaker 11 (24:07):
The Trump administration decided they were going to cancel it. And
I actually quickly had a conversation with Jensen Wang last
night as he was walking into this honorary dinner with
the President in riod and I said, what do you
think they rescinded.
Speaker 3 (24:19):
The diffusion role? And he looked at me and said, rescinded, canceled.
Speaker 11 (24:23):
AMD and VideA are elated about this new marketplace they
can come to when it comes to advanced technology. But Ed,
you know, there is still this China question that is
looming over all of these deals.
Speaker 2 (24:37):
Right the business in the golf, Jensen can take potentially
like market opportunity lost in China and make much of
it back in the golf based on the research I've
seen this morning, the business of geopolitics, those outstanding questions
on China and there are more deals to be done
between the United States and the nations that the president's visiting.
What happens next amh.
Speaker 11 (24:57):
Yeah, He's going to go to UAE, And we have
a report that potentially the UE is going to buy
one hundred million of Nvidia's high tech, these advanced semiconductor chips.
No surprise in the sense that Sheik Tawnun was in
the White House just a few weeks ago and he
then left and the UE announced one point four trillion
(25:19):
dollar investment they would like to make. But an asterisk
a part of that deal, of course, is that to
make that kind of investment, they need access to these chips.
But ed you talk about Nvidia and this potential new
market share they can get in the golf. When I
talk about China though, and the conversations that are happening
in the region, especially bilateral conversations, and probably some of
(25:40):
these conversations still to be had because they're working this out,
is that if these countries get access to these chips,
how do they make sure the tech does not leak
to China. That is still a national security concern that
has bipartsed and support in Washington, d C. These golf
States want to work with the United States to make
sure they can do that. But potentially you can see
(26:03):
almost these AI data centers hubs where they're on these lands,
whether it's in the United Arab Emirates or whether it's
in the Kingdom of Saudi Arabia. But the US, and
this is a story I had reporting on, but the
US would control the access to that tech. Is they
want to make sure that that technology does not get
into the hands of Beijing.
Speaker 2 (26:23):
The US controlling access to the technology. Bloomberg Zamorine Hordon
in Doha, Kata, thank you very much. Let's pivot from
the geopolitics of AI to the investing side and bring
in someone who's been involved in the sector for a
long time. Constantin Bula specialized in AI machine learning investments.
Speaker 3 (26:37):
He's a partner at Saquoa.
Speaker 2 (26:39):
Capital where last year nearly seventy percent of the startups
the firm invested in.
Speaker 3 (26:44):
Were AI companies.
Speaker 2 (26:45):
Let's start with just simply your reaction to the AI
infrastructure deals of the last twenty four hours. US technology
going to the golf and setting up data centers and
AI development in that nation.
Speaker 12 (26:58):
Well, thank you, Ered, It's always great to be here,
and these new deals are testaments to the fact that
AI artificial intelligence is not just a matter of corporate success,
it is a matter of national imperative. It is a
great sign of the importance of this industry. I think
back to a decade ago, and we had concerns about
(27:21):
the US staying ahead of AI. There are really four
key pillars to AI strength. There's the compute, there's the power,
there's the data, and there's the algorithms. Thinking back to
that last wave of AI, the reason why the United
States has been so far ahead is that fourth pillar,
those algorithms. So as we develop new technological allies around
(27:42):
the world for compute, for power, for data, it's really
important that we stay on the absolute forefront when it
comes to algorithmic advancement.
Speaker 3 (27:53):
We have the best researchers in the world. We have
the best engineers in the world. Okay, I'm sorry to interrupt.
Speaker 2 (27:57):
Seequensanteam with some breaking news crossing the termino from the
White House. President Trump has secured one point two trillion
dollars in economic commitments in Katar. The Katar commitment is
one point two trillion dollars according to the White House.
There are economic deals worth two hundred and forty.
Speaker 3 (28:14):
Three zero point five billion.
Speaker 2 (28:16):
This is something the president is announced on the ground
in Doha. We were just speaking with Bloomberg's Amri Horden,
who is in Doha, Katar, and she noted that this
is what's pending. We don't have the specifics in terms
of sector, in terms of companies involved, but as we
get that, we'll bring it to you. And right now
we'll go back to the conversation we were having, which
is there is US leadership in the field of AI infrastructure.
Speaker 3 (28:37):
You basically break down the four categories.
Speaker 2 (28:40):
One that is increasingly crossing my desk is AI memory.
In the context of agentic AI, this is something that
people say, we need to invest in this and solve it.
I personally don't have the expertise or academic grounding to
understand it. Why is your industry talking about it?
Speaker 3 (28:58):
You're exactly right, AD.
Speaker 12 (29:00):
So there's compute, there's obviously the data, there's obviously the
power and the algorithms. But another important component is memory
because when you interface with an agent, you wanted to
remember you, of course, but it also has to remember itself.
Think about a physician, for example, every time they interface
with a patient, an agent is going to be able
(29:20):
to help them think back to previous interactions, not just
what the patient said, not just their vitals, not just
data about the patient, but over time, using tools and
companies like open Evidence, the physician's going to be able
to remember exactly what the interaction was like, how to
communicate to the patient, and memory is going to become
more and more important.
Speaker 3 (29:39):
The question is where does all of this activity take place? Right?
Speaker 2 (29:42):
The subject to today's Bloomberg Big Take is Deep Seek Right,
and the Big Take presents the hypothesis that the company's
sudden emergence last month illustrated how China's industry is striving
irrespective of US political policy. Jensenmong told me in March,
(30:03):
more than fifty percent of AI researchers are in China.
When you think about the issues you've outlined, do you
agree with that hypothesis presented that China's AI industry is
thriving but also looking at the same issues that your
industry is looking at H Well, it is true.
Speaker 12 (30:19):
That they have amazing researchers there, but it's also true
that we have some of the most creative, brilliant researchers
on the planet. Here's an example. Just recently, we hosted
our annual AI conference, Sequoia AI Assent. We brought together
one hundred and fifty of the top minds in the industry.
This is everyone from Jensen h Wang and Sam Altman
to the young up and comers, and the number one
(30:41):
technical topic of the conference was a concept called tool use.
Tool use is all about ais working with each other.
Speaker 3 (30:50):
We're teaching the computer how to use the computer.
Speaker 12 (30:52):
And there was fortunately a big advancement in our industry
over the past few months a new protocol called Model
Context Protocol. Think about each AI agent as an expert.
Think about every piece of software as an expert. Your
CRM is really good at remembering your previous interactions with customers,
for example. The issue is that those experts don't necessarily
(31:14):
speak the same language. What this new protocol allows is
a universal translation mechanism so that all these AI agents
and all these softwares can communicate. That is pivotal to
us as the United States staying ahead. We have to
be working together. I'll give an example of what this
protocol could do for us. We have a portfolio company
called Rocks. It helps the best sellers do really great
(31:36):
research before meeting with a potential buyer. They can not
only do that research now they use MCP to connect
and actually make a pitch deck directly on the specific needs.
Speaker 3 (31:47):
Of that user.
Speaker 12 (31:48):
They can even plug into cognition or cloud code and
write an entire demo. That's how we stay ahead of
the curve. An AI collaboration and working together as researchers
and engineers.
Speaker 3 (31:58):
Sequoiapon Team Dealer.
Speaker 2 (32:00):
Great to have you back here on Bloomberg Technology, Thank
you very much. Now coming up, the sleep fitness startup
eight Sleep joins us to discuss its growth strategy and
its new product line up by conversations the next This
is Bloomberg Technology. Sleep fitness startup eight Sleep is launching
(32:29):
an expanded suite of products today. The company makes high
tech temperature control mattress covers and systems, and it's also
expanding into new markets. While talking up a potential IPO,
eight Sleep CEO Mattheo friend Chesketti joins us from New York.
This is interesting. In my world, everyone around me tracks
the data so carefully, maybe through a wearable and other means.
Speaker 3 (32:53):
In sleep.
Speaker 2 (32:54):
Let's start with what's new What is the actual proprietary
technology you're offering and how it helps consumer?
Speaker 13 (33:01):
Yeah, of course we develop our latest technology, it's called
POD five. At eight Sleep, we develop technologies to improve
your sleep performance, and POD five is a modular sleep
system that controls your body temperature, your elevation, and sound
to maximize your sleep. It does everything based on your biometrics,
(33:21):
so we're also able to track everything about your sleep
and your health in real time, and then we adjust
the environment for you to improve your net of sleep.
Speaker 2 (33:33):
These technologies and products that a consumer can get access
to via the health insurance. Are you part of a
broader sort of health network or system that to go
to market channel for you?
Speaker 13 (33:43):
No yet right now we just sell direct to consumers,
but it's part of our vision. At the end of
the day, we see a future where the POD will
be remborsed by insurance companies because we have hard data
proving that we can improve your sleep by up to
thirty four percent.
Speaker 2 (34:00):
The reason I ask is you've had incredible growth, right
Revenue is ten x since twenty twenty a five year
kegre sixty percent and you know those are numbers, but
what is it that's driving the growth, like what is
it geographically, the demographic of the consumer, the sales channel
that's helping you.
Speaker 13 (34:17):
Well, First of all, I think our results. People really
love the product and they see the benefits. Some of
our customers sometimes they also use wearables and they can
see the difference in their own wearables of when they
use the pod or when they don't. But what is
really driving our growth, which is connected to this is
world of mouth. A very large part of our revenue
(34:38):
is just because our customers recommend the product to other people.
At the same time, we keep expanding. We're right now
in thirty countries and we expect to open Asia by
the end of the year.
Speaker 2 (34:48):
I think you're also looking at Saudi Arabia given the
news of the last twenty four hours.
Speaker 3 (34:52):
How did that come about?
Speaker 10 (34:54):
Yeah?
Speaker 13 (34:54):
Right, We were so lucky. We didn't know obviously about that,
and we are announcing Saudia Rabio today, which we expect
to be a very large market. We were already in
UAE and the fact that the president and so many
other key CEOs are there is amazing.
Speaker 2 (35:10):
You're also evaluating China. How realistic is it from a
market perspective at the end user? But also supply chain
for you to go into that market.
Speaker 13 (35:19):
Yeah, we expect to launch in China by the end
of the year. Is a market that we know really well.
We have been manufacturing in China since twenty fourteen when
I moved there to really kick off the manufacturing of
eight slip, and we expect to start selling in that market.
As I said before the end of the year in
Q one of the latest, will.
Speaker 2 (35:38):
You support your growth with an IPO mateo?
Speaker 13 (35:41):
I think as part of our strategy absolutely. I think
great hartwore companies like Tesla and Apple, they all went
public fairly early. I think it will give us a
discipline and it will also prove that we are here
to stay. We are very ambitious about what we can
do for humanity to improve their health and their sleep materia.
Speaker 2 (36:00):
We're running short on time, but whatever you want to
get to is your core competencies. Have you got brilliant
software engineers, brilliant hardware engineers.
Speaker 3 (36:07):
What is your biggest advantage?
Speaker 13 (36:09):
I mean is really I right, all our engineers, they
come from the biggest companies in the world. In terms
of AI. We really apply AI and hardcore technologies to
your sleep and your health I think there is no
other company in the world improving your sleep in the
way we do with software technology ANDII and.
Speaker 2 (36:27):
Out Mateo FRANCISCTTI, CEO of Eights Sleep. Great to have
you here on Bloomberg Technology.
Speaker 3 (36:32):
Thank you.
Speaker 2 (36:41):
A ban on supersonic commercial flights over US Land could
soon be history. Bipartisan group of lawmakers are looking to
lift restrictions over civil jets flying over land at supersonic speeds,
potentially opening the skies to a new era of high
speed travel. At the center of that effort is Boom Supersonic,
(37:01):
which is developing the next generation of supersonic jets. Joining
us now is Boom CEO Blake shol And. Look, this
legislative pathway is absolutely critical to whether or not you're
going to be able to achieve what you want to achieve.
What is the path from here and will it happen?
Because without the legislation, you can't get your business off
(37:23):
the ground.
Speaker 3 (37:23):
Pardon the pun.
Speaker 14 (37:25):
Yeah, Well, hey, good morning, Ed, thanks for having me.
Speaker 3 (37:27):
Yeah.
Speaker 14 (37:27):
No, we've had one of the dumbest regulations ever in aviation.
In nineteen seventy three, we put a speed limit in
place over land and what that means is we can
fly supersonic from the US to Europe or from US
to Asia, but we can't fly supersonic right here in
the US. And with our test flights in January and February,
we prove we can fly supersonic with no audible sonic boom.
(37:50):
And I think this is just common sense. If we
can fly coast to coast supersonic without any sonic boom
that anybody hears in the ground, obviously that should be allowed.
Speaker 2 (37:57):
The big political point here for those laws is that
your competitors pursuing this field on the technology side are
in China, are they not?
Speaker 3 (38:06):
Yeah?
Speaker 14 (38:07):
I think you know, we really are watching a slow
motion train crash here right now. China is shipping a
seven thirty seven Clone. They're working on a Boeing seven
eighty seven Clone. Boeing has not made an all new
airliner in over twenty years now, and China announced earlier
this year they've entered the supersonic race. We still have
the opportunity to maintain American leadership in aviation, but we've
(38:29):
got to get out of our own way. We've got
to cut the red tape that's been holding back progress
in flight for fifty two years, Blake.
Speaker 2 (38:36):
This administration, the Trump administration has been quite engaged in
the field of autonomous driving in ev toll for example,
have you spoken with Transport Secretary Duffy or indeed met
with the President to discuss America's efforts in supersonic The.
Speaker 14 (38:52):
President has a model of the overture airliner that I
think he keeps outside of the Oval Office. We've had
great conversation with multiple cabinet members, including Secretary Duffy. It's
really hard to find anybody who wants to continue to
hold flight back. And now that we've proven that we
can have supersonic flights to an audible boom, Really, this
is something that I think everybody can be behind.
Speaker 2 (39:14):
Your technology is in the design of the wings, but
mostly in this engine. Right where are you at in
agreements to build the plane the engine at commercial scale?
Speaker 14 (39:24):
You know, the surprising thing about boomless cruise is actually
a software fix. It's not about the wings or the
engine exactly. It's actually about how you fly the airplane
such the boom never reaches the ground. And that's a
software innovation that's actually pretty easy to deploy.
Speaker 3 (39:39):
And as we speak today, we.
Speaker 14 (39:40):
Prove when we can build a supersonic jet. With the
XB one, we're building the first full scale symphony engine.
That's the first independently developed supersonic jet engine. It's going
to be running on a test stand around the end
of the year, and we're looking forward to start building
the first airliner on our factory in North Carolina next year.
Speaker 2 (39:57):
What I recognize in some an now I guess fields
like ev Toll, for example, is a pivot or shift
away from consumer passenger model to looking at defense applications.
Is that in Boom Supersonic's future, Blake.
Speaker 14 (40:12):
Well, the factory that we're building, all the infrastructure are building.
You know, if if worse came to worse in wartime,
we could pivot from building civil products to building defense products.
I think that's an important sort of rebirth in the
defense industrial base. However, the most important thing, you know,
I think we could do for the US government has
provide fashion transportation for the most important people. We'd love
(40:33):
to replace the rusty old seven fifty sevens and seven
forty sevens that carry around our VIPs today with airplanes
that could help them arrive in half the time.
Speaker 3 (40:41):
I never flew on Concorde.
Speaker 2 (40:43):
You know, I kind of have this peripheral knowledge of
it from when I was a kid, But I think
about what XB one did in January, right, and that
you reached MAC one point one two two a thirty
five thousand feet. How are you going to sort of
self assess your next milestones? What are the next milestones?
Speaker 14 (41:00):
Yeah, what's a matter of scaling up. XB one was
the first airliner that was actually built out of proven
airliner technology that scales up to build a supersonic airliner,
and so we're just scaling up. So next next milestone
is a full scale engine around the end of this year.
Next milestone after that is construction of the first full
scale airliner. That's next year. We want to roll it
(41:22):
out in twenty seven, flight in twenty eight, conduct extensive testing,
and be ready for passengers by the end of twenty nine.
Speaker 2 (41:27):
Blake, before we let you go, how capital intensive is
this view and what are your capitol requirements in terms
of raising new funds?
Speaker 14 (41:35):
Building airplanes is certainly capital intensive, But what we've found
is a small, focused team, enabled with great people AI
design tools can do this about ten times more efficiently
than the big guys can. XB one was designed, built
and flown by a team of about just fifty people
with about a tenth of the capital ever used before
to create a supersonic aircraft. So we will continue to
(41:58):
need capital, but it's a shockingly small amount compared to
it you would see.
Speaker 2 (42:02):
At a bow In or Earbus Boom Supersonic CEO Blake Show,
Great to have you here on Bloomberg Technology.
Speaker 3 (42:06):
Thank you.
Speaker 2 (42:07):
That does it for this edition of Bloomberg Technology. Don't
forget check out the podcast. So many of you listen
to this show as a podcast. You know where to
find it on Apple, Spotify, iHeart and of course on
all the Bloomberg platforms. Big, big focus on AI infrastructure
as the President makes his way through the Middle East,
but from San Francisco, this is Bloomberg Technology.
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