Dell Technologies World 2024, Nvidia Preview, Grayscale | Bloomberg Technology
>> THIS IS "BLOOMBERG TECHNOLOGY ," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE IN NEW YORK AT THE BIRD WORLD HEADQUARTERS. ED: I'M ED LUDLOW, LIVE FROM DELL TECHNOLOGY WORLD IN LAS VEGAS, THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: WE WILL HAVE FULL COVERAGE FROM ED AS HE SPEAKS ON NVIDIA.
WE WILL HONE IN ON THEM TO GET A PREVIEW OF WHAT WE CAN EXPECT FROM THEIR EARNINGS LATER IN THE WEEK. THE GRAYSCALE CEO, LEAVING THE COMPANY AFTER THREE YEARS AT THE HELM. THAT AND SO MUCH MORE. A QUICK CHECK ON THE MACRO AS WE SEE RECORD HIGH AFTER RECORD HIGH ACROSS THE BENCHMARK, THE NASDAQ, THE S&P 500, THE DOW, ALL POWERING HIGHER ON THE FACT THAT YOU ARE STILL SEEING PERHAPS THAT GEOPOLITICAL RISK, OF COURSE, WITH A FATAL CRASH HAPPENING IN IRAN, NOT ENOUGH TO TAKE AWAY THE OVERALL FOCUS THAT IS THE MACRO POLICY OF A FEDERAL RESERVE THAT CAN POTENTIALLY CUT RATES INTO THE SECOND HALF OF THE YEAR. THAT'S WHAT THE MARKET WANTS TO SEE COMING OFF OF THE BOND MARKET YIELDS GOING UP ONE OR TWO BASIS POINTS WITH QUIETNESS AS WE HAVE A LOT OF FED SPEAK TO DIGEST. COPPER AT A RECORD HIGH, MEDICAL -- METAL, GOLD, COPPER, A CONUNDRUM WHEN IT COMES TO THE FEDERAL RESERVE, BUT RECORD HIGHS IN THE COMMODITY SPACE. IN THE WORLD OF CRYPTO THERE IS A RISK ON SET FILTERING INTO CRYPTO. 66,900 IS WHERE WE TRADE AND
THEN WE ARE HEADED INTO THE INDIVIDUAL MOVERS. WE HAVE RACED OURSELVES FOR AN ALL IMPORTANT COMPANY EARNINGS. WE ARE STILL WAITING FOR THE LAST ONES WHEN IT COMES TO THE MARKET CAP.
WEDNESDAY, WE GET OVERALL NUMBERS FROM THIS COMPANY, MANY ANTICIPATING -- WILL THEY BE ABLE TO VINDICATE THE ANALYSTS WHO CAN BUY THE STOCK ON THE ZERO CELLS AFTER A MORE THAN 500% RALLY SINCE THE BEGINNING OF 2023? DALLAS UNDER PRESSURE, INTERESTING THAT JP MORGAN IS LOOKING TO BUY INTO THIS STOCK AFTER ITS EARNINGS LATER IN MAY. 148? THE PRICE TARGET WAS UP TO 155 AND WE WANT TO TALK MORE ABOUT THESE STOCKS AND THE FOCUS OF ARTIFICIAL INTELLIGENCE OVER IN DELL WORLD, THE CONFERENCE NOW, KICKING OFF IN LAS VEGAS. YOU ARE THERE AND WE HAVE GOT A SPECIAL GUEST. ED: BY THE WAY, THE RELATIONSHIP BETWEEN THOSE COMPANIES IS PART OF THE BUILDOUT. LET'S KICKOFF COVERAGE WITH ARTHUR LEWIS, PRESIDENT OF THE DELL INFRASTRUCTURE SOLUTIONS GROUP. THE REALITY IS, WE CAN TALK ABOUT GENERATIVE AI ALL DAY LONG, BUT THAT IS WHAT WE ARE STILL TALKING ABOUT, INFRASTRUCTURE PLAY. SET THE SCENE FOR US, WHO'S
COMING AND WHAT DO YOU THINK YOU WILL BE TALKING THE MOST ABOUT? ARTHUR: FIRST OF ALL, THANK YOU FOR HAVING ME, WE ARE EXCITED TO BE HERE WITH 10,000 OF OUR ASSIST FRIENDS, CUSTOMERS, ANALYSTS, TO TALK ABOUT WHAT WE ARE WORKING ON. NO QUESTION THAT WE ARE WORKING AT ONE OF THE MOST INTERESTING TIMES IN HISTORY. THE CHANGES IN ARTIFICIAL INTELLIGENCE WILL UNLOCK THE VALUE THAT WORLD DATA BRINGS TO ORGANIZATIONS OF ALL SIZES, RECORD LEVELS OF INNOVATION AND WORK WORSE RELATIVITY. SO, YOU ARE GOING TO HEAR FROM
A LOT OF GREAT PARTNERS, STORIES AROUND THE ACCELERATION OF GENERATIVE AI, SERVICE NOW, SAMSUNG, HEARING ABOUT OUR PARTNERSHIPS WITH NVIDIA, BROADCOM, MICROSOFT, IT'S AN EXCITING AND ACTION-PACKED SHOW. ED: AI FACTORIES, IN MARCH DELL SAID YOU ARE TRYING TO SIMPLIFY THE INVESTMENT. WHAT IS NAI FACTORY? ARTHUR: ARTIFICIAL INTELLIGENCE IS CHALLENGING GIVING -- GIVEN THE RAPID RATE OF INNOVATION IN THE SPACE. WE TAKE A CONSUL APPROACH IN TERMS OF HOW WE BUILDOUT FACTORIES.
WHAT CUSTOMERS ARE LOOKING FOR IS NEEDING HELP FOR THE USE CASE AND HELP AND HOW TO DO THE MODEL SELECTION. I NEED HELP IN HOW TO DO DATA PREP ON THE ARCHITECTURE, THE INFRASTRUCTURE. WE BRING THAT STRATEGY TO BEAR IN OUR AI FACTORY, A COMBINATION OF INFRASTRUCTURE COMPUTE NETWORK STORAGE, ENGINEERED AND OPTIMIZED WITH THE BUILDOUT OF THE PARTNER ECOSYSTEM. YOU WILL HEAR FROM COMPANIES LIKE META, THE PARTNERSHIPS THAT WE HAVE THEIR, WITH CONSULTING SERVICES THAT HELP CUSTOMERS SALARY THAT APPOINTMENT. ED: OUR BIG QUESTION THROUGHOUT THE DAY IS WHO IS THE BUYER OF AI FACTORIES, RIGHT? THE STORY SO FAR HAS BEEN NVIDIA SELLING HIGH-PERFORMANCE GPU TO HYPERSCALERS AND META, BASICALLY.
THE DELL HISTORY SALES CHANNELS HAVE BEEN DIFFERENT, RIGHT? SELLING TO THE GOVERNMENT, ARE THEY THE BUYERS? WHAT ARE WE TALKING ABOUT HERE? ARTHUR: THIS IS ONE OF THE MOST INTERESTING TIMES IN HUMAN HISTORY. A LOT OF PEOPLE SAY WE ARE IN THE EARLY INNINGS OF A BASEBALL GAME. SEEMS LIKE WE ARE JUST PULLING INTO THE STADIUM AND THE GAME HAS AN EVEN STARTED. IT'S ABOUT LARGE TRAINING CLUSTERS. THE ENTERPRISE, WHAT THEY ARE LOOKING FOR, DEPLOYING AI THE RIGHT WAY. IT'S A LINE TO WHERE THE DATA
RESIDES. DO IT IN AN OPEN AND FLEXIBLE WAY. THEY WANT A CHOICE IN HOW, WHEN, WHERE THE MODELS. ED: THE FIRST OR FASTEST A BILLION, THAT WAS AN EXCITING HEADLINE, RIGHT? WHY WAS IT SO FAST SELLING RELATIVE TO YOUR SERVER HISTORY? ARTHUR: WE LIKE TO SAY OUR ENGINE IS FIRING ON ALL CYLINDERS. WE RUN THE ENGINE EXTREMELY HOT. IT'S IN THE MARKETPLACE FOR
SEVERAL REASONS. THE DENSEST IN THE REGION, IT'S ONE CHASSIS TO SUPPORT SILICON DIVERSITY. FROM AMG, NVIDIA, GAUDI. WE HAVE CONSISTENT DESIGN FOR OPERATIONAL SIMPLICITY. OFFERING ETHERNET FOR FULL MAXIMUM THROUGHPUT.
IS THE BEST SOLUTION OUT THERE FOR GENERATIVE AI. ED: HOW ARE YOU USING GENERATIVE AI AT HOME AND WORK? TALK TO ME ABOUT HOW YOU USE IT. AS A HUMAN, AS A PERSON. ARTHUR: I'VE BEEN USING IT. META HAS A GREAT GENERATIVE AI ON INSTAGRAMMING FACEBOOK. WHATSAPP, MESSENGER, THE INNOVATION IN THE SPACE IS HAPPENING SO RAPIDLY. IT'S ONE OF THE MOST INTERESTING TIMES IN HUMAN HISTORY. ED:
THE SERVERS -- DESIGN, IT'S GPU AGNOSTIC IN MANY WAYS. EVERYONE KEEPS TELLING ME THAT CHOICE MATTERS. THE DIFFERENCE USE DIFFERENT AI ACCELERATORS, NVIDIA IS A CLEAR WORKER IN THIS MARKET. YOUR JOB IS THAT THEIR INTERACTION WITH PUBLIC AND PRIVATE SECTOR CUSTOMERS. HOW MICRO-FOCUSED ARE THEY ON NVIDIA, INTEL, IN THE CONVERSATIONS YOU HAVE? ED: COMPANIES -- ARTHUR: COMPANIES ARE LOOKING FOR A TRUSTED ADVISOR. WE UNDERSTAND THE LANDSCAPE BETTER THAN ANYONE OUT THERE.
WE UNDERSTAND ECOSYSTEM, ALL THE SERVICES. OUR JOB IS TO GO IN AND UNDERSTAND WHAT THE CUSTOMERS ARE LOOKING TO ACCOMPLISH. ED: ARTHUR LEWIS, PRESIDENT OF THE INFRASTRUCTURE SOLUTIONS, THANK YOU FOR KICKING OFF L TECHNOLOGY WITH US HERE IN LAS VEGAS. CAROLINE AND MARK CAROLINE: WHAT A GREAT CONVERSATION -- CAROLINE? CAROLINE: WHAT A GREAT CONVERSATION AS WE THINK ABOUT HOW THE EXECUTIVES ARE USING THIS POWERFUL TECHNOLOGY. COMING UP, IT'S THE MAKE OR BREAK EARNINGS RESULTS OF THE WEEK. THE COMPANY THAT ED WAS JUST DESCRIBING THEIR WITH ARTHUR, NOT JUST DELL, BUT NVIDIA TWO.
KEEP A CLOSE EYE OUT ON ZOOM, WE ARE ANTICIPATING A 2% INCREASE. PALO ALTO, PUSHING UP A QUARTER OF 1%. THAT'S THE CYBERSECURITY JUGGERNAUT SINCE IT LISTED. THIS IS THIS IS BLOOMBERG. ♪ -- THIS IS "BLOOMBERG TECHNOLOGY ." ♪ CAROLINE: THE LAST OF THE SO-CALLED MAGNIFICENT SEVEN STOCKS ON WEDNESDAY, NVIDIA, IMPORTANT TO THE OVERALL STOCK MARKET. IT'S MAKE OR BREAK, THE THIRD
MAJOR PLAYER WHEN IT COMES TO THE NASDAQ 100 IN TERMS OF CAPITALIZATION. WE WANT TO SEE HOW MUCH THERE IS COMMITMENT TO AI CHIPS, INFRASTRUCTURE BUILDOUT, BUYING THE COMPANY'S PRODUCTS. JOINING US NOW WITH A PREVIEW OF WHAT TO EXPECT, OUR BLOOMBERG INTELLIGENCE ANALYST. IT'S NOT OFTEN THE ANTICIPATE REVENUE GROWTH IN EXCESS OF 200% FOR A COMPANY. HOW CAN WE LIVE UP TO IT? >> THERE'S BEEN NO LACK OF DEMAND SIGNALS LAST QUARTER.
THE LARGEST CUSTOMERS, HYPERSCALERS, THEY HAVE ALL INCREASED OUTLOOK FOR CAPEX SPENDING THIS YEAR. THE BIGGEST SUPPLIER HAS GIVEN POSITIVE COMMENTARY ABOUT AI DEMAND CONTINUING FOR THE REST OF THE YEAR. WHEN YOU LOOK AT AND IT EASY AND OTHER REGIONS INCREASING SPENDING NAI, ACROSS-THE-BOARD WE HAVE SIGNIFICANT, STRONG, REAL DEMAND SIGNALS COMING IN FOR THE COMPANY AND FEEL GOOD ABOUT THEM COMING IN SOLID THIS WEEK. CAROLINE: SUPPLY GOING TO BE LEE'S PHONE? THAT SEEMS TO HAVE BEEN THE LIMITATION FOR THEIR STORY. KUNJAN: SUPPLY HAS BEEN COMING ON SIGNIFICANTLY EACH QUARTER. THAT IS WHAT WE EXPECT. SO FAR, THEY HAVE EXECUTED WELL WITHOUT ANY BIG MRS., I WOULD
SAY. IN TERMS OF SUPPLY COMING ON, WE DON'T SEE SIGNIFICANT RISKS. CLOSER TO NINE WEEKS, 10 WEEKS, WE HAVE THE H 200 AS WELL.
COMING OVER THE SECOND HALF OF THIS, THERE WILL BE MORE IN THE MIX. THEY HAVE MORE LEVERS TO PUSH NOW IN ORDER TO MEET THOSE NUMBERS UNLESS THE SUPPLY CHANGE SEES AN ISSUE. CAROLINE: YOU FOCUSED IN ON THE INCREDIBLY POWERFUL CHIPS AND ARCHITECTURE WITH CHINA IS A BIG CUSTOMER. IT DOES NOT WANT OR CANNOT HAVE THE MOST POWERFUL CHIPS THAT NVIDIA PRODUCES. KUNJAN:
LOOK, I THINK IN THE NEAR TERM THE GEO COULD BE A POSITIVE, YES, THE CHINA REGIONAL PREFERENCES ARE NOT TO USE NVIDIA CHIPS, BUT THINKING ABOUT THE CUSTOMERS IN CHINA, THEY WOULD STILL IF THEY CAN LIKE TO USE NVIDIA CHIPS, THEY ARE THE BEST GROUP OUT THERE. WE COULD SEE SOME SORT OF APRIL -- A PULL IN FROM CHINA AND THE U.S., PULLING IN THE DEMAND OVER THE NEXT FEW ORDERS. CAROLINE: COOL RIDGE, MAINLY WORKING WITH NVIDIA HERE, THE CEO TELLING US EVERYONE WANTS AN NVIDIA CHIP.
YES, YOU CAN TALK ABOUT THE COMPETITORS OF THE MARKET, BUT ULTIMATELY THAT IS WHAT THE DEMAND IS. IS ANYONE STARTING TO SHOW THE COMPETITION ANGLE ON THE MARKET SHARE? KUNJAN: NVIDIA STILL HAS THE LION'S SHARE AND WE DON'T SEE THAT GETTING -- CHANGING SIGNIFICANTLY. CAROLINE: GENERATIVE AI WAS ENERGY AND SUPPLY FOR CHIPS. HOW LIKELY IS THAT TO BE SOMETHING WE ARE HEARING DISCUSSED ON THE CALL, THAT THIS IS THE ONE THAT NEEDS FIXING, ULTIMATELY, IMPACTING THE ENVIRONMENT OR THE COSTS OF ENERGY? KUNJAN: IT HAS ACROSS-THE-BOARD. I DON'T THINK WE WILL HEAR A LOT ABOUT THAT SPECIFICALLY. WE WILL HEAR ABOUT CUSTOMER COSTS, TO BE HONEST. EVEN IF A REAL INCREASE IN POWER ,
THERE'S A TOTAL TCO THAT CONTINUES TO GET BETTER. CAROLINE: THANK YOU, BE A BUSY WEEK FOR YOU, KUNJAN SOBHANI, WITH ALL EYES ON NVIDIA. COMING, WHAT'S HAPPENING IN THE HERE AND NOW IN TESLA? JOB CUTS LOOM, ANXIETY IS GRIPPING THE WORKFORCE. THAT'S NEXT. THIS IS "BLOOMBERG TECHNOLOGY."
♪ CAROLINE: OPENAI WORK TO HALT THE USE OF THE VOICE NO SAYS SKY IN THE AUDIBLE CHATGPT AFTER USERS NOTICED IT SOUNDED VERY SIMILAR TO SCARLET JOHANSSON. IT WASN'T MEANT TO BE AN IMITATION, THEY SAID, AND VOICES ARE A NEW FEATURE FOR CHATGPT. MUCH MORE, LATER IN THE SHOW. CYBER SOFTWARE HAS AGREED TO PURCHASE THE NAVI -- VENAIFI FOR 1.5 BILLION DOLLARS. AIRLINES THE CARD ISSUERS AND BANKS. THE ACQUISITION IS EXPECTED TO CLOSE IN THE SECOND HALF OF TWO DOZEN 20 OR WITH HALF OF A MILLION DOLLARS IN RECURRING REVENUE. BYTEDANCE OVERTAKES BAIDU AFTER
A RELEASE IN AUGUST. DOWNLOADS SURPASS RIVALS AND HAVE MORE REGULAR MONTHLY USERS. THE TIKTOK PARENT MADE A PRIORITY OF CATCHING UP WITH ARTIFICIAL INTELLIGENCE AND THE CHAT HOT BECOMING ONE OF THE MOST DOWNLOADED TODAY. KEYWORD STUDIOS ROSE THE MOST
SINCE 2013 AFTER THE COMPANY DISCLOSED IT WAS IN ADVANCE TAKEOVER TALKS FOR THE EPT GROUP . THE DUBLIN-BASED STUDIO PROVIDED GAME DEVELOPMENT, AUDIO, ART SERVICES TO THE GAMING INDUSTRY, WORKING ON TITLES LIKE FORTNITE. NOW LET'S TALK ABOUT WHAT'S BEEN HAPPENING OVER THE PAST MONTH IN THE ELON MUSK PLANS TO SLASH 10% OF THEIR WORKFORCE. JOINING US TO BREAK IT ALL DOWN IN THE LATEST NEWS IS CRAIG TRUDELL.
I CAN ONLY IMAGINE HOW ANXIETY INDUCING IT IS TO JUST BE WAITING FOR THAT LETTER, THAT EMAIL. CRAIG: YEAH, AND IT IS A CASE THAT IT IS A SORT OF WEEK TWO WEEK, DAY TO DAY THING FOR EMPLOYEES WHERE YOU JUST DON'T KNOW WHEN THAT TAP ON THE SHOULDER, OR IN THE CASE OF TESLA, AS WE PUT IT IN THE STORY TODAY, THE DEAR EMPLOYEE EMAIL. EMPLOYEES GETTING THESE MESSAGES THAT DON'T ADDRESS THEM BY NAME THAT REVEAL THEY ARE LEAVING THE COMPANY, THAT THEY ARE BEING LET GO. THIS IS JUST SOMETHING THAT HAS
CONTINUED TO ROLL FOR WEEKS AND WEEKS. WE HAVE HEARD EXCLUSIVE REPORTS IN THIS STORY THAT IT IS SOMETHING EXPECTED TO CONTINUE THROUGH JUNE. THE COMPANY, AS WE KNOW, HAS BEEN GOING THROUGH TUMULT. IT'S BEEN SELF-INFLICTED, RAISING QUESTIONS ABOUT EXECUTION AMIDST A CLOUD HANGING OVER YOUR HEAD EVERY DAY, WORKING AT TESLA. CAROLINE:
MORALE MUST BE TAKING A HIT AND I'M ALSO INTERESTED IN THE USE AND IT HAS HAD AROUND THE SUPERCHARGE THAT WAS BROUGHT BACK. HOW COMMITTED TO THE OVERALL JOB CUTS DOES THE COMPANY SEEM TO BE? CRAIG: I THINK THAT PARTICULAR ASPECT HAS BEEN DISRUPTIVE, RAISING A LOT OF QUESTIONS ABOUT WHAT'S GOING ON HERE. IT IS A KIND OF DOWN JEWEL WITHIN THE COMPANY.
IT MAY NOT HAVE BEEN MAKING A TON OF MONEY FOR THE COMPANY DIRECTLY, BUT THE FACT THAT THEY WERE ABLE TO OFFER SUCH A SUPERIOR CHARGING EXPERIENCE TO OTHER CHARGING NETWORKS, EVEN ABLE TO GET THE REST OF THE INDUSTRY ON BOARD, IT WAS A SHOW OF FORCE ON THE PART OF THE COMPANY LAST YEAR THAT THEY WERE ABLE TO GET THE ENTIRE INDUSTRY TO SAY THAT YOU KNOW WHAT, THIS IS THE BETTER PLUG AND WE WOULD LIKE TO BE ABLE TO USE THE TESLA NETWORK. THE INDUSTRY IS STILL PURSUING THAT DESPITE THE FACT THAT SOME OF THESE COMPANIES HAVE NOT BEEN ABLE TO GET ANYBODY ON THE PHONE WHO RUNS THAT PART OF THE BUSINESS. IT'S AN ISSUE FOR THESE COMPANIES, GIVEN THE BET THAT THEY ARE MAKING HERE.
CAROLINE: LET'S PLAY DEVILS ADVOCATE AND LOOK AT WHO IS STILL IN AT TESLA, BECAUSE FOR MANY IT'S A EARTH ALTERING KIND OF BUSINESS TO PLAY A PART IN. IS ANYONE STILL FEELING GALVANIZED? CRAIG: INTERESTINGLY, MUSK HAS BEEN TRYING TO SET IN THE LAST FEW DAYS, ENGAGING WITH PEOPLE WHO ARE CALLING OUT THE IDEA THAT THE MEDIA PREDICTED THE DEMISE OF TWITTER WHEN HE CUT THAT WORK. A LOT OF HIS FANS ON THEIR ARE SPEAKING TO THIS IDEA OF -- EVERYTHING IS FINE, NOTHING HAS GONE WRONG. I THINK THAT THAT IS, YOU KNOW, IN INTERESTING THING FOR HIM TO BE ENGAGING WITH OVER THE LAST YOU DAYS AND MAY OR MAY NOT BE A NOD TO THE IDEA THAT THERE ARE SIMILAR TROPES SHOWING UP IN THE WAY THESE JOB CUTS ARE BEING REPORTED, BOTH INTERNALLY AND EXTERNALLY IN THE MEDIA. I WOULD NOTE THAT THIS IS NOT JUST MEDIA. THIS IS CURRENT OR FORMER TESLA EMPLOYEES DESCRIBING THE STATE OF AFFAIRS AT THE MOMENT. CAROLINE:
TAKING TO LINKEDIN TO TALK ABOUT HOW PAINFUL IT IS AS AN INDIVIDUAL, HOW IT AFFECTS YOUR FAMILY AND MENTAL HEALTH. DOES IT AFFECT DEMAND? FOR MANY, THIS DOES IMPACT THE BRAND. CRAIG: THERE'S A VERY INTERESTING QUESTION ABOUT WHETHER OR NOT THE COMPANY IS ABLE TO EXECUTE, IN SPITE OF ALL THIS. WITHIN THE STORY WE HAVE SPOKEN TO THE IDEA THAT THE SALES STAFF HAS BEEN AFFECTED. SOME WORKERS FLAGGED THE IDEA THAT BECAUSE THEY WERE CUT, THEY HAD A REAL CONCERN ABOUT WHETHER OR NOT THAT WAS GOING TO HAVE AN EFFECT ON THE ABILITY OF THE COMPANY TO CLOSE DEALS, TO BRING THE CUSTOMER ALONG THE JOURNEY OF COMING TO GRIPS WITH SPENDING TENS OF THOUSANDS OF DOLLARS ON A TESLA AS OPPOSED TO THE GROWING NUMBER OF OPTIONS NOW IN THE EV MARKET. THAT IS GOING TO BE SOMETHING TO WATCH WHEN THE COMPANY REPORTS SECOND-QUARTER DELIVERIES. HE SET A HIGH BAR AND SAID YOU
KNOW WHAT, WE THINK THE SECOND QUARTER WILL BE BETTER THAN THE FIRST QUARTER. THE FIRST QUARTER WAS DISMAL. WHETHER OR NOT THEY CAN EXECUTE IS REALLY GOING TO BE IMPORTANT. CAROLINE: THANK YOU SO MUCH FOR THE INSIGHTS, CRAIG TRUDELL. COMING UP, WE WILL BE BACK TO LAS VEGAS FOR THE DELL CONFERENCE AND WHAT TO EXPECT.
CAROLINE: CHECKING ON THE MARKETS, THEY ARE MACRO FUELED IN MANY WAYS. THE FED SPEAKER AT THE MOMENT IS ANTICIPATING MORE ON THE SPEAKING FRONT, WITH BUYING INTO STOCKS AT THE MOMENT IF YOU THINK THE FED MIGHT CUT IN THE FIRST HALF OF THE YEAR. RECORD HIGH, RECORD HIGH, NOT RECORD HIGH WHEN IT COMES TO THE RECORD WORLD INDEX.
EUROPE, THE S&P, THE NASDAQ, THE DOW ARE AT RECORD HIGHS. BITCOIN, UP 1.7%. MOOD MUSIC, STILL POSITIVE DESPITE GEOPOLITICAL RISKS. TESLA, OFF BY 1.7%. THEY GROWING HIT TO THE MORALE, JOB CUTS BEING TESTED BY THE BUSINESS. LOOKING AT WHAT IS HAPPENING
WITH WIX, THIS IS A WEB PLATFORM COMPANY, BEST DAYS SINCE MARCH OF 2020 AS IT BLOWS AWAY ANALYST EXPECTATIONS. THIS IS THE NAME THAT WE ARE WAITING FOR WHEN IT COMES TO EARNINGS. AFTER THE BELL, THERE IS ZERO ANALYSTS WITH A SELL RATING ON THE STOCK BEING UP MORE THAN 5% SINCE THE BEGINNING OF 2023, BETS ARE ON WHEN IT COMES TO ARTIFICIAL INTELLIGENCE AND MANAGING GEOPOLITICAL TENSIONS. NVIDIA, AI, USING IT IN OUR WORLD IN OUR LIFE THE LAS VEGAS, WE ARE WAITING FOR THE NEWS COMING FROM THE DELL KEYNOTE SPEECH LATER TODAY. ED, YOU ARE OVER THERE WITH A KEY GUEST? ED: THAT'S RIGHT, THE PRESIDENT OF CREATIVE STRATEGIES, CAROLINA MILANESI. YOU HAVE SO MUCH EXPERIENCE,
COVERING CONSUMER TECHNOLOGY. IF YOU DON'T MIND ME SAYING. THIS IS MY FIRST DELTEK WORLD, NOT YOURS, BUT EVERYONE I OPT INTO AT THE AIRPORT LAST WEEK SAID THAT THIS WAS VERY BIG, AND IN THE ENTERPRISE CONTEXT, WHY IS THAT THIS TIME AROUND. CAROLINA: I DON'T THINK WE HEARD IT ENOUGH THIS MORNING, LET'S SAY IT, AI IS HERE AND EVERY COMPANY IS TRYING TO UNDERSTAND HOW THEY CAN RETHINK THEIR BUSINESS TO TAKE ADVANTAGE OF AI. BECAUSE OF THAT, THEY NEED A GOOD ARMOR. ED: THIS STORY, FRANKLY, WITH NVIDIA, SELLING TO THE HYPERSCALERS AT META, I DON'T SEE MUCH EVOLUTION BEYOND THAT. DO YOU? CAROLINA: IT'S A BIT LIKE A DUCK , RIGHT, MOVING WITHOUT SEEING THE FEET PADDLING UNDER THE WATER.
THAT IS WHAT THE LIKES OF DELL ARE DOING. AI RETHINKING THEIR BUSINESS WITH BETTER PRODUCTIVITY, REACHING PEOPLE THEY HAVEN'T BEFORE. THINKING ABOUT THE ROLE THAT THEY'LL CAN PLAY AS A TRUSTED PARTNER AND SUPPLIER IS REALLY HELPING TO OPTIMIZE WORKLOADS AND TAKE ADVANTAGE OF AI IN THE RIGHT WAY, IN THE CLOUD OR AT THE EDGE. ED: JENSEN LONG IN NVIDIA HAS NOT BEEN SELLING ANYTHING AT THE MICRO LEVEL IN HIS CAREER AREA I GREW UP IN A DELL HOUSEHOLD, BROKE MANY OF THEM PLAYING AGE OF EMPIRES ON CD-ROM. WHEN I THINK AI PC, I KEEP HEARING IT'S COMING, BUT IN MY MIND AND HEART I DON'T FEEL I KNOW WHAT NAI IS CAROLINA: -- WHAT THE AI THE IS. CAROLINA: AND MOST CONSUMERS DON'T.
IT'S ABOUT LOWERING THE BARRIER TO INTERACTING WITH THE TECHNOLOGY AND EVERYONE CAN BECOME A POWER USER, TAKING AWAY THE FRICTION WE HAVE ON THE PC THAT WE DON'T HAVE ON THE PHONE. ED: I DON'T KNOW THAT THE CONSUMER IS READY. OFTEN WHEN A NEW TECHNOLOGY COMES TO MARKET, IT'S EXPENSIVE AND IT GOES DOWN FROM THERE.
WHICHEVER CHIPMAKER IT IS, SEVERAL OF THEM ARE EYEING THE SPACE, DO THEY EAT THE COSTS TO MAKE IT MORE PALATABLE FOR THE CONSUMER TO TRY IT OUT? CAROLINA: WITH AI THERE ARE TWO PARTS, HARDWARE AND THE COSTS OF SERVICE. AS FAR AS EATING A PART OF THE RETURN, IT'S BOTH. MICROSOFT, COPILOT, CHIPMAKERS, OEMS. WHAT'S GOOD IS WE ARE SEEING THE LIKES OF PAUL, HAVING A BROADER SET OF OFFERINGS IN THE MAINSTREAM MARKET IN EARLY ADOPTERS.
OUR CONSUMERS ALREADY KNOW THAT WE NEED TO TELL AN HONEST STORY OF WHAT AI IS IN WHAT REAL AI IS IN WHEN IT'S GOING TO HIT THE MARKET. THIS IS A MARATHON, NOT A SPRINT. IT'S GOING TO TAKE YEARS TO SEE THE FULL VALUE OF AI. CAROLINE: CAN YOU ASK MIND TO ME WHY I MIGHT AI PC, RATHER THAN JUST USING THE LATEST BOT OR CHATGPT COMPETITOR? CAROLINA: A COUPLE OF THINGS. AI WORKING ON THE ACTUAL EXCHANGE BETWEEN YOU AS A CONSUMER AND THE PC AND THE HARDWARE. FROM A PRIVACY PERSPECTIVE, PUTTING AI ON THE EDGE ALLOWS YOU TO NOT SEND YOUR DATA TO THE CLOUD.
IT'S A PRIVACY PLAY AND A LATENCY PLAY AND TO BE HONEST, THERE'S A COSTS PLAY THAT COMES IN FROM THE SERVICES PERSPECTIVE THAT RUNNING ALL OF THESE WORKLOADS IN THE CLOUD WILL BE EXPENSIVE AND SOMEONE WILL HAVE TO PAY FOR THAT INVESTMENT. CAROLINE: AND AT THE MOMENT IT IS PICKED UP BY THE HYPERSCALERS AND COMPANIES THEY ARE HELPING OFFER THE FREE ACCESS TO COMPUTER. I PARTICULARLY LOVE YOUR COMMENTS ABOUT BECOMING A POWER USER. AS NAI, URA USER OF POWER AND YOU ARE ALREADY FOCUSING ON GOVERNMENT STRATEGIES FOR THESE TECH PLAYERS. HIS ENERGY BECOMING THE NUMBER ONE THING TO TALK ABOUT? CAROLINA: 100%. WE HEAR A LOT ABOUT AI HELPING
WITH SUSTAINABILITY, BUT IT COMES AT A COSTS AS WELL FROM A SUSTAINABILITY SPECKED OF. IT COMES FROM THE SUSTAINABILITY THAT AI WOULD FIRE AND BRING IN THE GRID, FOR EXAMPLE. IT'S SOMETHING THAT WE NEED TO TALK MORE ABOUT. ED: DELL IS CELEBRATING ITS 40TH YEAR, AND NO EVENT. ARE THEY CELEBRATING IT IN A STRENGTH -- AT STRENGTH IN THIS MARKET? CAROLINA: I THINK THEY DO.
THEY HAVE REALLY HELPED THROUGH DIGITAL TRANSFORMATIONS OVER FOUR YEARS. THEY DID WELL THROUGH COVID HELPING THE CUSTOMERS IN A TOUGH TIME. AS A COMPANY, THEY HAVE GREAT LEADERSHIP. WHEN THERE IS A FOUNDER STILL DRIVING THE DAY TO DAY OF THE COMPANY, THINGS ARE DIFFERENT AND STRONG ON ESG AS WELL. I CARE A LOT ABOUT THE SUSTAINABILITY AND THEY ARE A GREAT COMPANY DOING GREAT WORK. ED: CAROLINA MILANESI, I TOOK A LOT FROM THAT THAT I CAN CARRY OVER INTO THE CONVERSATION WITH MICHAEL, BILL, LATER TODAY.
BACK TO YOU IN NEW YORK. CAROLINE: GREAT CONVERSATION. COMING UP, MORE CONVERSING TO DO WITH GRAYSCALE AND ITS CEO ABOUT HOW TO BUILD IT INTO THE WORLD'S LARGEST GROWING ASSET AND INJURE. INSTACART, BIG CONFERENCE IN BOSTON JV TECH CONFERENCE. THE INSTACART CFO HAS SPENT LIKE IT'S NOT THE BEST OF IMPLICATIONS ON THE STOCK RIGHT NOW, SAYING THEY BASICALLY DON'T EXPECT TO EXCEED THE OVERALL TOTAL TRANSACTION VOLUME, THE GROSS TAKE -- GROSS TRANSACTION VOLUME WILL NOT BE EXCEEDED, THEY SEEM TO BE SAYING.
PERHAPS A BIT OF NERVOUSNESS CREEPING IN THERE. NEW YORK, LAS VEGAS, THIS IS "BLOOMBERG TECHNOLOGY." INTERVIEW WITH THE CEOS OF DELL, NVIDIA, LIVE IN LAS VEGAS AT 2 P.M. EASTERN TIME. YOU DON'T WANT TO MISS IT. THIS IS BLOOMBERG.
LET'S TALK ABOUT ROLES CHANGING. AFTER BUILDING GRAYSCALE ASSET MANAGEMENT THE CEO IS STEPPING DOWN. JOINING US FOR THE LATEST, SONALI BASAK.
INTERESTING COMING TO THE FORE AS CEO, BUT NOW TO PURSUE INTERESTS PIECE STEPPING DOWN? SONALI: WE KNOW THAT HE HAD HELPED GRAYSCALE BRING THE BITCOIN TRUST, SO IT WAS A SURPRISE HERE TO SEE HIM STEPPING DOWN. ACCORDING TO THE REPORTING FROM "THE WALL STREET JOURNAL," THEY HAD BEEN LOOKING AT RAY SCALE AS -- FOR A SUCCESSOR SINCE THE END OF LAST YEAR, BEFORE THE ETF WAS EVEN APPROVED. IN THE STATEMENT BY ITSELF, YOU HAVE MICHAEL SONNENSCHEIN SAYING THE CRYPTO ASSET CLASS IS AT AN INFLECTION POINT AND IT'S THE RIGHT MOMENT FOR A TRANSITION. SO, WHO IS THE TRANSITION TO?
TO YOUR POINT, A GOLDMAN SACHS ALUMNI SENIOR IN THE LEADERSHIP TEAM RUNNING STRATEGY, QUICKLY APPROACHING A 3 TRILLION DOLLAR ASSET UNDER SUPERVISION OVER AT GOLDMAN SACHS. YOU HAD HIM COME INTO FIRST INSTITUTIONALIZE GRAYSCALE AND THE BITCOIN BUSINESS. NOW YOU HAVE AN AND MORE INSTITUTIONAL ASSET MANAGER COMING IN THAT AS A BREATH OF SCALE AT A SENIOR LEVEL AT A LARGE ASSET MANAGEMENT SCALE.
CAROLINE: THEY ARE STILL THE LARGEST, BUT QUITE EXPENSIVE IN COMPARISON TO THE OTHERS. SONALI: IT WILL BE INTERESTING AS THEY LAUNCH PRODUCTS TO SEE WHAT CUSTOMERS FLOCKED TO AT THE END OF THE DAY. THE BET WAS THAT EVEN WITH ATTRITION, THE HIGHER FEE STRUCTURE FOR THE NEWER PRODUCTS WOULD BE WORTH IT FOR THEM AT THE END OF THE DAY. BECAUSE THE ASSET DAYS IS JUST SO LARGE. SINCE THE ETF'S HAD LAUNCHED FOR A SIGNIFICANT AMOUNT OF TIME, THEY HAD EXPERIENCED NET OUTFLOWS. MORE RECENTLY, THEY ACHIEVED
NET INFLOWS ON SOME DAYS SINCE WE HAD SEEN THE ETF FIRST LAUNCH. CAROLINE: THIS IS ABOUT THE INSTITUTIONALIZATION OF DOPE. THERE IS ONE KEY NAYSAYER, WITH JAMIE DIMON LOOKING AT VARIOUS ASSETS, WE UNDERSTAND HE'S TAKEN TO THE STAGE AT HIS OWN TECH CONFERENCE HAPPENING IN BOSTON. HE'S GOT A LOT TO TALK ABOUT WHEN IT COMES TO ATTACK AND AI, FOR EXAMPLE. SONALI:
HE SURE DOES AND INVESTORS ARE READING THE TEA LEAVES AND HOW THEY WILL INVEST MOVING FORWARD. WE JUST HEARD FROM THE INVESTMENT BANKING HEADS THAT SAID THEY WERE ABOUT TO INVEST US THE ENTIRE VENTURE, DOUBLING DOWN ON THEIR CLIENT ACE. THAT'S RELEGATED TO NEW TECHNOLOGIES. IN AND OF THEIR OWN RIGHT, THEY ARE TALKING ABOUT THIS IDEA ON THE ASSET MANAGEMENT SIDE THAT EVERY NEW HIRE WILL GET TRAINING IN AI, BOTH SIDES OF THE BUSINESS FOR THE PITCHING HOW MUCH THESE INVESTMENTS IN TECHNOLOGY ARE ACTIVITY FOR WORKER. THEY HAVE THINGS DOWN TO THE SPECIFIC AMOUNT OF DEALS AND VOLUMES THAT YOU WILL GET MORE IN, SAY, THEN IN MIDDLE MARKET BANKING FROM THE USE OF TECHNOLOGY. FROM THE ASSET MANAGER AS WELL,
THEY DELINEATED THE JUNIOR LEVEL AND SENIOR LEVEL EMPLOYEES IN THE DIFFERENT WAYS THEY ARE USING AI TO MAKE THOSE JOBS MORE EFFICIENT. CAROLINE: IT WILL BE FASCINATING, WE WILL SEE WHAT HE HAS TO SAY. SONALI BASAK, THANK YOU FOR TAKING US THROUGH THE MOVERS AND SHAKERS WHEN IT COMES TO THE NEW FI. ARTIFICIAL INTELLIGENCE, OPENAI
SAYS THEY ARE WORKING TO CAUSE THE VOICE OF THE SKYE USE FROM THE UPDATED 4.0, SAYING THAT IT SOUNDED LIKE -- BECAUSE USER SAID IT SOUNDED A LOT LIKE SCARLETT JOHANSSON. THERE'S A LOT TO BE DIGESTED WITH OPENAI, AS USUAL.
LET'S START WITH PERHAPS -- IS THIS A STUN AND MOVING ON REAL PUSHBACK? AT ONE POINT SAM ALTMAN HAD POSTED SAYING "HER," SO WE HAD ANTICIPATED IT BEING SCARLETT JOHANSSON. >> YEAH, THIS IS ONE OF SEVERAL OF THEIR VOICES THE APP THEY LAUNCH LAST YEAR. IT HAS A GOOD AVAIL QUOTE HER -- IT HAS A BIT OF "HER" SOUND TO IT. WHERE THEY HAD HER MOST RECENT EVENT IN THEIR NEW MODEL, THEY HAD STARTED TO THINK IT STARTED TO SOUND A LITTLE BIT LIKE THAT. IT IS ONE OF THESE SEVERAL LEASES THAT ALL SOUND KIND OF DIFFERENT. IT IS -- CAROLINE: IT IS WORTH SAYING THAT OPENAI
SAYS IT'S A DIFFERENT ACTRESS, BUT WE ALL THINK ABOUT THAT MOVIE WHERE, WORSE, SOMEONE FALLS IN LOVE WITH A FEMALE ARTIFICIAL INTELLIGENCE PRODUCT. BUT WHAT IS ALSO HAPPENING IS A TUMULT TO THE SURFACE. YOU ARE REPORTING THAT THE SUPER ALIGNMENT TEAM DISBANDED AFTER THE KEY EXECUTIVES LEFT.
THERE'S A LOT TO TALK ABOUT WITH THE PAY OF THE PEOPLE OVER AT OPENAI IF THEY LEAVE. RACHEL: YEAH, THERE'S A LOT GOING ON OVER THERE IN THE PAST WEEK. SUPER ALIGNMENT, THESE PEOPLE ARE THINKING ABOUT HOW THEY COULD PROTECT PEOPLE AGAINST A SUPERHUMAN TYPE OF AI, SOMETHING THAT DOESN'T EXIST AT THIS POINT IN TIME, SO LET'S BE CLEAR ABOUT THAT. OPENAI HAS MULTIPLE SAFETY TEAMS. THIS WAS ONE OF THEM AND WAS ANNOUNCED LAST YEAR. THE TWO LEADERS LEFT, LEAVING IN QUICK SUCCESSION.
DISSOLVING THE TEAM, FOLDING THE PEOPLE, BUT AS FOR COMPENSATION THERE HAS DEFINITELY BEEN SOME TALK ABOUT WHAT HAPPENS WHEN PEOPLE LEAVE OPENAI, AND IF THEY MAY HAVE OTHER COMPENSATION TAKEN AWAY. CAROLINE: I KNOW YOU WILL CONTINUE TO REPORT AND MANY FEEL THAT THEY ARE SUCKING UP THE OXYGEN IN THE ROOM WHEN IT COMES TO PRODUCTS AND THE TEAMS WHO ARE BUILDING IT. RACHEL, THANK YOU FOR KEEPING US CLEAN ON ALL THINGS OPENAI FROM A PRODUCT PERSPECTIVE. COMING UP, BLUE ORIGIN RESUMING FLIGHTS TO SPACE FOR THE FIRST TIME SINCE 2022. WE WILL BRING YOU ALL THE DETAILS ON THE SUCCESSFUL RELAUNCH HAPPENING FOR SPACE TOURISM. [CHEERING] >> LIFT OFF. CAROLINE: THERE IT GOES.
BLUE ORIGIN SUCCESSFULLY RELAUNCHING HIS SPACE TOURISM BUSINESS 60 MILES INTO THE SKY. THIS IS THEIR FIRST TOURIST MISSION ON NEW SHEPARD SINCE GOING BACK TO AUGUST OF 2022. JOINING US TO BREAK DOWN WHY, LORI. IT WAS PUT ON ICE FOR A WHILE WHEN THERE WERE TECHNICAL ISSUES WITHOUT ANY TOURISTS ON BOARD. >> IT IS A SITE WE HAVEN'T SEEN IN A WHILE.
A TWO-YEAR HIATUS FOR BLUE ORIGIN MISSIONS. THE FOLLOW-UP IN SEPTEMBER, THAT WAS THE ISSUE MIDFLIGHT. LUCKILY, NO ONE WAS ON BOARD THE TRIP, BUT THEY HAD ENGINE FAILURE THAT CAUSED THEM TO PUT FLIGHTS ON PAUSE AS THEY FIGURED OUT WHAT WENT WRONG.
CAROLINE: LET'S TALK ABOUT WHAT WENT WRONG AND WHAT'S GOING RIGHT NOW. THE AIM IS TO HAVE A BIGGER ROCKET IN NOT JUST TO TOURISM 60 MILES UP. >> THEY INVESTIGATED AND FOUND AN ISSUE WITH THE ENGINE NOZZLE THAT CAUSED THE ROCKET TO VEER OFF COURSE.
THEY SPENT THE MAJORITY OF LAST YEAR NOT LAUNCHING, TRYING TO FIGURE IT OUT, WORKING WITH THEM TO REDESIGN THE NOZZLE TO PUT CORRECT OF ACTIONS IN PLACE. DECEMBER, IT WAS AN UNPROVED FLIGHT. THIS IS THE FIRST TIME THEY PUT PEOPLE ON BOARD. THIS IS THE FIRST PART OF THEIR STRATEGY WITH PLANS TO LAUNCH A BIGGER MARKET, GOING TO MARKETS LATER THIS YEAR. THE ROCKET WAS DELAYED QUITE A FEW TIMES. IT'LL BE REMAINING TO BE SEEN IF THEY CAN MEET THE DEADLINE WITH THE GRAND AMBITION ON THE HORIZON. CAROLINE:
SPACEX DOMINATES IN THE FIELD, BUT NOTABLE FOR ANOTHER DELAY, BOEING HAS BEEN PUSHED BACK? >> YES, WE ARE ON STAR MY WATCH. THE BOEING SPACE TAXI IS MEANT TO TRANSPORT ASTRONAUTS. CONDUCTING ITS FIRST CREW TEST FLIGHT, SENDING NASA ASTRONAUTS UP. THE LAUNCH HAS BEEN A MOVING TARGET.
WE WERE ANTICIPATING IT AS EARLY AS TOMORROW. BOEING FOUND A HELIUM LEAK THAT THEY WERE TRYING TO FIGURE OUT OTHER OR NOT THEY COULD FLY WITH IT. CURRENT TARGET TIME IS SATURDAY, BUT THIS IS AN EARLY CREW TEST FLIGHT, SO IT COULD POSSIBLY GO AGAIN. CAROLINE:
THIS REMINDS US HOW DIFFICULT IT IS AND HOW EXPENSIVE IT IS AS WELL. WHAT IS THE ULTIMATE GOAL, WHAT KIND OF MARKET SHARE GDP ARE THESE COMPANIES TRYING TO BUILD AND CREATE AND TAKE A CHUNK OUT OF? >> JUST SEEING IF THERE IS A MARKET FOR PEOPLE WHO WANT TO GO TO SPACE. LOOM -- BLUE ORIGIN IS DOING SOMETHING SLIGHTLY DIFFERENT. THEY ARE ON THE HOOK FOR
SENDING NASA ASTRONAUTS TO THE INTERNATIONAL SPACE STATION. WITH LOU ORIGIN, THEY ARE BASICALLY TAPPING INTO A GROWING MARKET OF WEALTHY TOURISTS GOING TO SPACE AND BACK. ULTIMATELY, THEY CAN TRY TO SCALE IT UP, BUT IT REALLY IS EARLY DAYS AND AS WE HAVE SEEN, A SMALL ENGINE PART CAN EASILY TAKE THE VEHICLE OUT OF COMMISSION FOR A YEAR OR SO. IT REMAINS TO BE SEEN IF THIS IS AN ACTUAL MARKET THAT IS LUCRATIVE, BUT WE ARE FINDING OUT AS THE YEARS PROGRESS. CAROLINE: ALWAYS ON SPACE WATCH, THINK SO MUCH. MEANWHILE, WE ARE ALWAYS ON SHARE WATCH FOR YOU.
HIGHLIGHTING JP MORGAN AT THE MOMENT, SHARES ARE UNDER PRESSURE AS WE HEARD FROM JAMIE DIMON, TALKING ABOUT IT WITH SONALI BASAK, SOME TO CLAIM -- DECLINES AFTER THEY DISCUSSED HOW EXPENSIVE IT WOULD BE TO BUY BACK STOCK, SAYING HE WOULDN'T BUY BACK A LOT AT THESE PRICES ON THE SUGGESTION THAT THERE WOULD BE LESS DEMAND FOR BUYBACKS. MEANWHILE, STICKING WITH THE STOCK MARKET MORE BROADLY AND SOME NEWS TURNING TO BREAKING NEWS FROM THE NEW YORK TIMES, IVAN BO SKI HAS DIED. HE INSPIRED THE GORDON GEKKO CHARACTER, MAKING A LOT OF MONEY FROM INSIDER TRADING, HE WENT TO PRISON FOR HIS CRIMES. HE WAS 87.
2024-05-22 01:08
