Intel vs. Nvidia and Paramount's Annual Meeting | Bloomberg Technology
>> 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. CAROLINE: I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO AND THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE COMPETITION FOR AI CHIP DOMINANCE HEATS UP AS INTEL TAKES ON NVIDIA. ED: THE LATEST ON TATES FROM PARAMOUNT'S MEETING. CAROLINE:
DRAWING REPORTS ELON MUSK HAS SHIFTED THOUSANDS OF AI CHIPS TO X AI OVER THE VEHICLE MAKE PRINT LET'S CHECK IN ON THE MARKET CONTEXT. JOBS NUMBERS REALLY PUTTING PRESSURE ON THE STOCK MARKET BUT THE BOND MARKET IS SEEING A MONEY MOVE AT THE MOMENT. YIELDS GO LOWER AS WE SEE SPACE FOR THE FEDERAL RESERVE TO CUT LATER INTO THE YEAR. WE HAVE THE IMPORTANT JOBS DATA TO DIGEST. EVEN THOUGH WE HAVE
MONEY INTO THE BOND MARKET WE ARE NOT SEEING THAT OPTIMISM AROUND TECHNOLOGY STOCKS. WE ARE DIGGING INTO THE INDIVIDUAL NAMES PERHAPS DRAGGING US LOWER. WE'VE BEEN SEEING ALL-TIME HIGHS TIME AND AGAIN.
WE ARE LOOKING AT THE MACRO PICTURE THAT GOES GLOBAL. COMPLETE UPENDING OF WHAT MANY HAD ANTICIPATED IN THE INDIAN ELECTION. DOWN ON WHAT HAS BEEN A SHOP -- WHERE MODI DOES NOT SEEM TO BE HAVING THE MAJORITY ANTICIPATED. LET'S MOVE ON TO THE WORLD OF CRYPTO. WE ARE UP, WE ECLIPSED THE $70,000 HANDLE.
AS WE SEE MORE MONEY MOVING INTO THE ETF PRODUCTS AND MAY BE SOME OF THAT MEME FROM YESTERDAY HELPED TAILWINDS. WHAT ARE YOU SEEING ON THE MICRO. ED: CNBC REPORTING ELON MUSK DIRECTED NVIDIA TO DIVERGE 12,000 AI CHIPS THAT HAD BEEN DESTINED FOR TESLA TO HIS OTHER COMPANIES. TESLA SHARES DOWN FLAT THEY HAVE BEEN LOWER EVERYONE'S TRYING TO MAKE SENSE OF WHAT THAT MEANS FOR THE TESLA PLEDGE TO ACHIEVE FULL SELF-DRIVING BECAUSE THAT IS PRINCIPALLY WITH THE AI ACCELERATORS ARE BEING USED FOR IN THE TESLA CASE. WE GET MORE LATER IN THE HOUR. THE BATTLEGROUND IN THE MARKET
FOR AI ACCELERATORS. INTEL AND NVIDIA MODESTLY LOWER. INTEL IS A BIT HIGHER. A LOT OF HEADLINES COMING OUT OF COMPU TEXT. HERE'S WHAT PAT GELSINGER HAD TO SAY ABOUT THAT MARKET FOR AI CHIPS.
>> EVERY DEVICE WILL BECOME AN AI DEVICE. WE SEE IT AS THE FUEL THAT STRIVING THE SEMICONDUCTOR INDUSTRY TO REACH A TRILLION DOLLARS BY THE END OF THE DECADE. >> THE OTHER THING THAT HE SAID IS MOORE'S LAW IS VERY MUCH ALIVE, A REFERENCE TO THE WHITE PAPER IN 1965 ONE OF INTEL'S COFOUNDERS THAT THE NUMBER OF TRANSISTORS ON INTEGRATED CIRCUIT WILL DOUBLE EVERY YEAR WITHOUT ADDING COSTS TO THE PRODUCTION PROCESS BUT WHAT HE WAS DOING WAS PUSHING BACK AGAINST JENSEN OF NVIDIA SAYING WE WILL CATCH UP AND DO THIS. >> HE IS ARGUING HIS CASE SAYING WE CAN STILL DO IT.
TRYING TO MAKE THE CASE INTEL IS STILL RELEVANT AND CAN HAVE A CENTRAL ROLE IN WHAT'S GOING ON AND CAPTURED THIS MASSIVE AMOUNT OF SPENDING. AT THE MOMENT ALL OF THAT MONEY IS GOING TO NVIDIA OVER $100 BILLION OF REVENUE PROJECTED FOR THAT DATA CENTER UNIT THIS YEAR. INTEL'S DATA CENTER UNIT IS GOING SIDEWAYS. CAROLINE:
WHAT THEY HAVE TO COMPETE ON, ONCE AGAIN ANNUAL UPGRADES TO THE OFFERINGS OF SEMICONDUCTORS. EVEN IF IT IS EXPENSIVE. >> MARK JENSEN HAS ALREADY DECIDED I'VE GOT FOUR BIG CUSTOMERS, BIG HYPER SCALARS BUT I NEED TO BROADEN THE AUDIENCE SO HE'S NETWORKING AS YOU MENTIONED FULL SERVERS BASICALLY CYCLICAL COMPUTERS AND HE'S PUT EVERYTHING TOGETHER ALREADY SO PRETTY MUCH ANYBODY CAN ADOPT IT. ANYBODY TRYING TO CRASH HIS PARTY LIKE LISA OF AND HAS TO COME TO THE TABLE WITH EVERYTHING INCLUDING THE SOFTWARE AND THAT'S A MASSIVE AMOUNT OF EFFORT THAT'S REQUIRED. HE'S GOT THE LEAD. >> HE DOES AND AT THE MOMENT IT FEELS AS THOUGH EVERYONE ELSE'S SNAPPING AROUND HIS HEELS. WHERE IS ULTIMATELY FOR NOW ALL THE VALUE ATTRIBUTED TO DATA CENTERS. IN ANY OF IT BE THOUGHT TO BE
BROUGHT THIS $1 TRILLION MARKET THAT HE TALKS OF, HOW MUCH OF THAT WILL BE ALLOCATED TO PC? >> THAT WAS THE SHOW -- THE SIDELINE OF THE SHOW WAS GUESS WHAT YOUR PC IS GOING TO GET INTERESTING AGAIN. WE HAVE LISA SUE OF AND TALKING ABOUT IT SO THEY'RE ALL TALKING ABOUT REVITALIZING THIS THING THAT WE ALL CARRY AROUND AND USE ALL DAY. AT THE MOMENT I SAW SOME DEMOS YESTERDAY THEY WERE OK. I THINK WE NEED TO SEE A LOT MORE ON THE SOFTWARE SIDE BEFORE WE CAN GET FULLY EXCITED ABOUT THIS. >> I GET ALL OF THE STORIES, PARTICULARLY IN INTEL'S CASE, PAT HAS BEEN SAYING I WILL RETURN INTEL TO A POSITION OF TECHNOLOGY LEADERSHIP. THE PROBLEM IS PRESENTLY REVENUES AND SALES DO NOT MATCH THAT STORY, SO INTEL 500 MILLION, AND 4 BILLION. WHICH IS BETTER THAN THEY
PREVIOUSLY FORECAST. NVIDIA LET'S JUST CALL IT 40 BILLION. THAT'S THE STATE OF PLAY. >> IT'S CLOSE TO 100 IF YOU LOOK AT THE ESTIMATES. IT’'S ENORMOUS. EXACTLY WHAT YOU SAY WHICH IS HE'S GOT ALL THESE AUDIENCES HE ASKED TO SERVE. HE HAS HIS INTERNAL AUDIENCE, MOTIVATE HIS ENGINEERS AND GET CUSTOMERS EXCITED ABOUT WHAT HE'S GOING TO OFFER.
AT THE SAME TIME IF HE PROMISES TOO MUCH AND MAKES TWO BULLISH OF AN ATTITUDE INVESTORS WILL GET EXCITED AND THINK IT'S A BIG UPSIDE ON THE EARNINGS. CAROLINE: IAN KING BREAKING DOWN WHAT IS THE ONGOING FIGHT AMID AI SEMICONDUCTORS, A BRILLIANT TO HAVE YOU DIGGING ON TAIWAN. LET'S MOVE OVER WHAT IT MEANS FOR CAPITALIZATIONS. SENIOR MARKET ANALYST, GREAT TO HAVE YOU ON THE SHOW. THERE HAS BEEN A TUSSLE AT THE TOP.
MARKET VALUATIONS KEEP BEING ALLOCATED TO NVIDIA. IS THAT THE RIGHT STEP? >> I THINK THAT NVIDIA IS MAKING THE HEADLINES AND DOING A GREAT JOB NOT ONLY THAT THEY ARE MAKING HUGE PROGRESS ON THEIR NUMBERS, THEY DO MAKE ENORMOUS FORECASTS AND BEAT THEM BY VERY COMFORTABLE MARGINS QUARTER AFTER QUARTER BUT THEY COME REGULARLY WITH NEW UPDATES, NEW PROMISES WITH A NEW IDEA FOR EXAMPLE CREATING ECOSYSTEM OFFERING HARDWARE, SOFTWARE AND SERVICES SO THEY ARE MAKING THE AI A FULL ENVIRONMENT WHERE EVERYBODY COULD BE INTERESTED AND EVERYONE WILL FIND WHAT THEY ARE LOOKING FOR SO IN A SENSE NVIDIA LOOKS LIKE IT IS A STEP AHEAD OF THE OTHER COMPETITORS AND IN TERMS OF RATIO WHAT WE SEE IS EVEN THOUGH THE PRICES ARE GOING HIGHER THE KEY RATIO IS NOT GOING THAT HIGH BECAUSE THE EARNINGS ACTUALLY DEVELOP. CAROLINE: -- ED: LET ME SHOW YOU THIS CHART. IT'S A BUSY ONE SO I'LL EXPLAIN WHAT WE ARE LOOKING AT.
IF YOU THINK ABOUT IT BIG PICTURE, NVIDIA IS JUST A FEW PERCENTAGE POINTS AWAY FROM EXCEEDING APPLES MARKET CAP. FROM HAVING A MARKET CAP GREATER THAN CANADA'S EQUITY MARKET, AND 10% OR SO TAKEN BEYOND MICROSOFT TO BE THE WORLD'S MOST VALUABLE COMPANY. IS THAT JUSTIFIED TO YOUR MIND? IPEK: I CAN'T TELL YOU THIS IS JUSTIFIED BUT TODAY WITH THE AI REVOLUTION NVIDIA HAS BEEN CLOSER TO THAT PLACE OF THE LEADER OF THIS MARKET AND THE LEADER IS IN ITS REVOLUTION SO THIS IS NOT SOMETHING THAT HAPPENS EVERY YEAR. THIS IS ONCE IN A DECADE OR ONCE IN A FEW DECADE THING. IF AI IS THE NEXT BIG THING AFTER THE INTERNET THAT NVIDIA HAS A HUGE OPPORTUNITY, A HUGE POTENTIAL TO INCREASE ITS BUSINESS. NOW WE ARE READING THE REPORTS,
NVIDIA IS SELLING AN ENVIRONMENT. IT SELLING A DREAM AND IS SELLING US A NEW LIFE, A NEW WAY OF DOING THINGS AND NOW WE ARE JUST AT THE BEGINNING AND PEOPLE KNOW THE OPPORTUNITIES ARE SIMPLY HUGE, SO AS APPLE HAS BECOME ONE OF THE WORLD'S MOST VALUABLE COMPANIES BECAUSE THEY JUST GOT THIS IPHONE IN OUR HANDS, NVIDIA COULD VERY WELL BECOME THE NEXT BIG THING BY PUTTING AI IN OUR DEVICES AND MAKE OUR LIVES COMPLETELY DIFFERENT FROM WHAT IT WAS BEFORE. >> I REALLY LIKE THAT YOU REFERENCED APPLE THERE BECAUSE THE MARKET CAPITALIZATION BUT IN OUR TECH NEWS DAILY THERE'S A GRATEFUL LEADERSHIP PIECE THERE BUT APPLE DID THIS PREVIOUSLY BY HAVING IS SORT OF CLOSED WALL ECOSYSTEM WHERE IS GOOGLE WENT EVERYONE CAN PLAY IN OUR GARDEN WHERE AS WE ARE SEEING THAT PLAYING OUT WITH NVIDIA VERSUS THE LIKES OF OTHER COMPETITORS WE HEARD FROM WHETHER THE INTEL OR THE PARTICULAR PLAYERS OUT THERE. I'M INTERESTED IN NOT JUST THE ANALOGY WITH APPLE BUT WHAT'S HAPPENING IN CHINA.
WHETHER WE SHOULD OR IF YOU CAN INVEST IN CHINESE AI THEY MIGHT WIN OUT AS WELL. IPEK: WE THINK CHINESE TECHNOLOGY AND AI RELATED COMPANIES ARE INTRIGUING BECAUSE WE KNOW IN THIS CONTEXT OF TECHNOLOGY WHERE CHINESE GOVERNMENT IS PUTTING A LOT OF WEIGHT BEHIND THIS TECHNOLOGY AND AI COMPANIES. AND CHINA HAS THIS POLL -- POOL A VERY BIG TECHNOLOGY COMPANIES THAT HAVE BEEN VERY POPULAR IN CHINA AND THAT HAVE A PROVEN TRACK RECORD AND THAT ARE RIGHT NOW TRADING AT EXTREMELY LOW VALUATIONS COMPARED TO THE U.S. PEERS. WERE TALKING ABOUT THE RATIO OF AROUND 10 TO 20 FOR THE BIG CHINESE TECHNOLOGY STOCKS COMPARED TO 66 FOR NVIDIA. IN THIS CONTEXT THEY ARE CHEAP
AND INTERESTING. ONE RISK IS THE GEOPOLITICAL RISK. ONE OTHER RISK RIGHT NOW IS THE FACT THESE TECHNOLOGY COMPANIES IN CHINA ARE IN A FIERCE COMPETITION AGAINST EACH OTHER AND THEY ARE MOSTLY FOCUSED ON EXPANDING THEIR MARKET SHARE RATHER THAN MAXIMIZING THEIR PROFITS. THIS IS SOMETHING THAT KEEPS
INVESTORS RELAXING REGARDING THE TECHNOLOGY TECHNOLOGY STOCKS. ULTIMATELY A FEW OF THESE TECHNOLOGY STOCKS ARE GOING TO BE THE WINNERS OF THIS AI REVOLUTION IN CHINA AND AS AN INVESTOR YOU WANT TO BE IN THAT ELEVATOR. >> WE STARTED THIS WITH THE BELIEF THAT MOORE'S LAW IS IN TACT. THAT THEY WILL REGAIN A FOOTHOLD IN THE MARKET. IS THE ADDRESSABLE MARKET BIG ENOUGH TO HAVE AND, INTEL AND NVIDIA ALL OFFERING INTO THE SAME THING. >> I THINK THE MARKET IS HUGE. BUT WHAT'S GOING TO MATTER IS
NOT ONLY HOW FAST AND HOW EFFICIENT THE CHIPS ARE, BUT IT IS ALSO HOW WELL THE SERVICE AND ECOSYSTEM AND ENVIRONMENT THAT THESE COMPANIES WILL OFFER. IT LOOKS LIKE NVIDIA HAS A VERY GOOD UNDERSTANDING OF THIS 360 DEGREE OFFERING. IT'S KNOCKING TO BE ABOUT CHIPS ONLY BUT IT WILL BE ABOUT WHO IS CAN OFFER THE BEST SERVICE TO MOST OF THE COMPANIES ON THE FACE OF THIS, NOT ONLY IS IT BIG TECHNOLOGY COMPANIES DO COMPANIES ACROSS MOST SECTORS. IN THAT SENSE YES THERE'S DEMAND FOR A LOT OF CHIPS BECAUSE THE AI REVOLUTION IS HAPPENING AND WE ARE ALL CONCERNED WITH IT BUT THE REAL WINNERS ARE GOING TO BE NOT THE BEST ONES IN TERMS OF THEIR PRODUCTS BUT ALSO THE ONES THAT WILL BE OFFERING THE ENVIRONMENT AND UNIVERSE WITH IT. >> SENIOR MARKET ANALYST OVER AT SWISS GROUP, THANK.
PARAMOUNT'S MEETING IS UNDERWAY. WE WILL BRING YOU THOSE DETAILS NEXT. CAROLINE: WE HAVE HAD ON THE SHOW BEFORE A PRIVATE COMPANY OLD TO BE TRYING TO WIN OUT. THEY ARE MAKING A DEAL, THEY WILL SPEND ABOUT A BILLION DOLLARS TO ACQUIRE A BITCOIN MINOR. AS YOU CAN SEE WE GO HIGHER. UP 34%. FROM NEW YORK AND SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY.
>> PARAMOUNT HAVING ITS ANNUAL GENERAL MEETING TODAY AFTER THE REPORTING FROM SKY DANCE MEDIAS PLAN TO OFFER $23 A SHARE TO INVESTORS FOR THE LATEST, WE THINK ABOUT THE PROMISES MADE FROM THESE NEW LEADERS, A THREE CO-CEOS IT FEELS TALKING ABOUT STREAMING PARTNERSHIPS, COST-CUTTING. ANY OF THAT MATTER IF THERE'S POTENTIALLY A DEAL ON THE TABLE? >> NOT REALLY CAROLINE. THIS HAS REALLY BEEN THE STORY OF PARAMOUNT FOR SO LONG BECAUSE THE FUNDAMENTALS ARE PRETTY WEAK , THOSE HAVE BEEN COMPLETELY OVERSHADOWED BY THESE ONGOING, AND DAY TALKS. SKY DANCE HAS BEEN IN THIS MIX FOR MANY MONTHS. ALMOST EIGHT OR NINE MONTHS. THEY HAD A MOST THIRTY-DAY EXCLUSIVE NEGOTIATING PERIOD WHICH EXPIRED IN EARLY MAY. ANOTHER OFFER FROM SONY WAS ON
THE TABLE. THE SPECULATION THAT SONY IS STILL INTERESTED IS OBVIOUSLY DYING. WE STILL HAVE THE UPGRADED SKY DANCE OFFER FROM PARAMOUNT, BUT WE REQUIRE THAT FINAL SIGN OFF FROM THE CONTROLLING SHAREHOLDER SHERRY REDSTONE. THEY DID HAVE THE ANNUAL SHAREHOLDER MEETING AND OBVIOUSLY THE OUTLINED STRATEGIC INITIATIVES. AS YOU SAID I DON'T THINK ANY OF IT MATTERS RIGHT NOW BECAUSE YOU STILL HAVE THE POTENTIAL OF THIS HUGE DEAL COMING THROUGH.
>> IN YOUR OWN RESEARCH YOU PUBLISHED THIS MORNING SAYING FINAL ACT IN PARAMOUNT, DAY SAGA , THE SKY DANCE POISED FOR TAKEOVER. DRAMATIC TELEVISION MOVIE VOICE. ARE YOU SURE IT'S THE FINAL ACT? >> I AM NOT AND THAT'S WHY I SAID IT'S NOT OVER UNTIL IT'S ACTUALLY OVERPLAYED WE SEEN THIS MOVIE SO MANY TIMES WITH PARAMOUNT. SKY DANCE HAS BEEN IN AND OUT. THEY WERE PREPARED TO WALK AWAY AND THEN YOU HAD SONY AND THEN YOU HAVE SOME ADDITIONAL WRINKLES NOW BECAUSE HOLLYWOOD FINANCIER STEPHEN RUMORED TO BE OFFERING $3 BILLION STAKE FOR THE NATIONAL AMUSEMENTS'S OR SHERRY REDSTONE'S CONTROLLING STAKE IN PARAMOUNT. IT'S BEEN A WHOLE ROLLER COASTER WITH PARAMOUNT FOR THE PAST SO MANY MONTHS NOW. SO AGAIN VERY HARD TO SAY. CAROLINE: WITH SOME KEY PLAYERS AND ULTIMATELY IT COMES DOWN TO SHERRY REDSTONE AND WHETHER SHE PRIORITIZES HERSELF OR SOME OF THE NONVOTING SHAREHOLDERS HERE MANY OF THEM BEING VALUE INVESTORS RATHER THAN GROWTH INVESTORS. MANY OF JOIN TO SHOW BEFORE
TALK ABOUT HIS FRUSTRATION THAT THE PREMIUM GOES TO THE VOTING HOLD RATHER THAN HIMSELF -- RATHER THAN LONG-TERM INVESTORS IN THE NONVOTING SHARES. WHAT DO YOU THINK NEEDS TO BE ARTICULATED FOR THE FUTURE OF THIS BUSINESS? IS THERE A FUTURE OF STREAMING FOR PARAMOUNT? GEETHA: THAT IS A GREAT QUESTION AND I THINK THAT'S THE QUESTION THAT'S THE BURNING QUESTION RIGHT NOW. WITH THE MERGER WITH SKY DANCE PARAMOUNT WILL STILL VERY MUCH REMAIN A PUBLIC COMPANY. IT IS NOT LIKE THE SONY DAYS WHERE THE COMPANY WOULD DISAPPEAR THE QUESTION IS DO MERGERS REALLY DO ANYTHING, WE'VE SEEN THIS OVER AND OVER AGAIN EVEN WITH THE VIACOMCBS COMBINATION WHICH RESULTED IN PARAMOUNT WE SEE THE DESTRUCTION OF 60% VALUATION, IT WAS OVER 30 BILLION MARKET CAP WHEN THEY RECOMBINED IT 2019. TODAY IT'S CLOSE TO 10 BILLION SO NONE OF THESE MERGERS HAVE REALLY WORKED. YOU LOOK AT WARNER BROS.
DISCOVERY. A FIASCO THERE. YOU LOOK AT DISNEY ON FOX. ALL THESE MERGERS HAVE REALLY STRUGGLED SO THE QUESTION IS DO MERGERS SOLVE THE FUNDAMENTAL VALUE. THERE IS SO MUCH PRESSURE IN THE LINEAR ECOSYSTEM. THAT'S A QUESTION THAT REMAINS TO BE ANSWERED AND WE WILL HAVE TO SEE HOW THAT PLAYS OUT. CAROLINE: REALLY APPRECIATE THE ANALYSIS. COMING UP, ELON MUSK'S AI EXAGGERATION.
CAROLINE: MEANWHILE, LET'S GO OVER TO GERMANY. DEUTSCHE TELEKOM SHARES BEING SOLD, GERMANY THE NATION ITSELF IS OFFLOADING SOME OF ITS STAKE IN THIS KEY TELECOM PROVIDER IN GERMANY. GERMANY IS TRYING TO GET SOME MORE MONEY, TO INVEST IN OTHER AREAS. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME FOR TALKING TECH, FIRST UP CHRISTIE'S HACKERS WHO STOLE CLIENT DATA HAVE FAILED TO UPLOAD ANY OF THAT INFORMATION TO THE DARK WEB.
THE HACKING GROUP THREATEN FOR OVER A WEEK TO RELEASE THE STOLEN FILES ON MONDAY BUT THERE ARE NO SIGNS THAT HAS OCCURRED. THE CRIMINAL SAID CHRISTIE'S HAD CEASED COMMUNICATIONS AFTER THE ATTEMPT TO REACH A REASONABLE RESOLUTION. A CYBERATTACK ON CHANGE HEALTH CARE IS PUTTING PRESSURE ON WASHINGTON. CONGRESS AND THE BIDEN ADMINISTRATION ARE STEPPING UP EFFORTS TO PROTECT HIGHLY SENSITIVE DATA FROM FALLING INTO THE WRONG HANDS. UP TO ONE THIRD OF AMERICANS ARE SAID TO HAVE THEIR PRIVATE INFORMATION EXPOSED FROM THE HACK. IT'S COSTING 1.6 BILLION DOLLARS IN PROFITS THIS YEAR. MAJOR HOSPITALS IN LONDON HAVE
BEEN THROWN INTO CHAOS. A CYBERATTACK ON HOSPITALS PARTNERING WITH PATHOLOGY SERVICES PROVIDER SYNOVUS CAUSED OPERATIONS TO BE CANCELED AND DELIVERIES REROUTED. THIS SYSTEM WAS VICTIM TO A RANSOMWARE ATTACK. >> LET'S GET BACK TO THAT OTHER BIG STORY. ELON MUSK ACCORDING TO REPORTS ORDERING LET'S BE HONEST -- MAY HAVE EXAGGERATED ITS CURATIVE AI CHIPS FOR USE IN TESLA AND ASK. --X X.
MUSKA HAS TAKEN TO X EXPLAINING THAT REPORTS AROUND HIM DIRECTING THE SHIFT OF H 100S THAT WERE DESTINED FROM TESLA TO X OR X AI WERE LOGICAL REASON. >> IT MAY BE STANDS TO SOME REASON BECAUSE YOU REPORTED IN THE LAST FEW WEEKS THE TESLA WAS RUNNING BEHIND ON BUILDING DATA CENTERS. THEY OURS STANDING THESE UP IN BUFFALO AND IN AUSTIN. WHERE THEY HAVE THEIR BIG FACTORY. THIS IS A CASE STILL, AN INDICATION THAT THEY ARE SORT OF LOOKING AT SOME OF THE THINGS MOSQUE -- MUSK HAS BEEN SAYING. THIS IS AFTER ALL SORT OF WHERE HE STEERING THIS COMPANY IS TO SELF-DRIVING AND AIN TRYING TO PLAY UP THE ASPECT OF WHAT TESLA IS WORKING ON AS THE FUNDAMENTAL CAR BUSINESS REALLY IS STRUGGLING FOR THE COMPANY. SO FOR HIM TO HAVE TO ADDRESS A
REPORT LIKE THIS IN THE MIDST OF A SLOWDOWN EEEV DEMAND ON THIS BIG PIPIT THAT HE'S MAKING TOWARDS AI AND SELF-DRIVING DEVELOPMENT, IT IS NOT PARTICULARLY REASSURING IF YOU'RE A SHAREHOLDER. >> PARTICULARLY AS WE LOOK TOWARDS JUNE THE 13TH AND THAT SHAREHOLDER VOTE WHERE ELON MUSK SEEMS TO BE THREATENING IF YOU ARE NOT TO GIVE ME MY PAYDAY YOU PROMISED ME SEVERAL YEARS AGO MAYBE THERE'S MORE INTERESTING THINGS TO BE DONE WITH AI. >> THIS REINFORCES THE ULTIMATUM HE GAVE IN JANUARY THAT HE WANTED TO ESSENTIALLY TAKE HIS AI ROBOTICS WORK ELSEWHERE AND WE'VE ALREADY SEEN INDICATIONS THAT HE IS WILLING TO FOLLOW THROUGH ON THAT THREAT.
IF I DON'T CONTROL SOMETHING LIKE 25% OF TESLA I WANT TO WORK ON THIS STUFF AT SOME OF MY OTHER COMPANIES. WITH ANY OTHER CEO THAT WOULD NOT NECESSARILY BE TAKEN SERIOUSLY BUT POTENTIALLY VIEWED AS A VEILED THREAT. THIS IS AFTER ALL SOMEONE WHO RUNS SIX COMPANIES AND HAS BEEN STANDING UP AND AI COMPANY THAT IS CLOSELY TIED TO X FORMERLY KNOWN AS TWITTER AND DOES HAVE A SIGNIFICANT AMOUNT OF WORK THAT IT IS TRYING TO DO WITH LARGE LANG WHICH MODELS AND ESSENTIALLY TRYING TO BUILD X INTO A COMPANY THAT'S WORTH THE INVESTMENT THAT HE AND SOME OF HIS FELLOW STAKEHOLDERS MADE IT WHAT WAS FORMERLY TWITTER. >> CRAIG, THANK YOU SO MUCH BREAKING IT DOWN. WE WILL DIVE DEEPER INTO NVIDIA. THAT GLOBAL RACE FOR AI CHIPS
IS NEXT. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED: A VERY QUICK CHECK IN ON THE MARKETS WE GOT SOME ECONOMIC DATA WHICH IS REINFORCED THE IDEA THE FEDERAL RESERVE WILL HAVE GROWN TO CUT RATES IN THE UNITED STATES THIS YEAR AND A LOT OF PEOPLE DOING THE MATH ON THE TECHNOLOGY HOLDINGS AND VALUATIONS. NASDAQ 100 TECH HEAVY INDEX A
LITTLE BIT SOFTER. MORE MARKEDLY LOWER DOWN 1.2%. ONLY ONE OUT OF THE 30 NAMES IS MODESTLY IN THE GREEN. A BIG PART OF THAT STORY IS
KIND OF WHAT'S GOING ON IN TAIWAN. THE MAIN NAMES WE ARE LOOKING OUT THROUGH THE SHOW ARE INTEL AND NVIDIA. INTEL OPENED A LITTLE BIT HIGHER BECAUSE -- NVIDIA SOFTER BY HALF OF A PERCENT.
THINGS ARE HEATING UP A LITTLE BIT BETWEEN THOSE NAMES. LISTEN TO PAT SPEAKING OVERNIGHT. >> WE LOOK TO HAVE A BILLION TRANSISTORS ON THE SIGNAL SHIP AND EVEN LOOKING TO A TRILLION TRANSISTORS IN A SINGLE PACKAGE BY THE END OF THE DECADE. AND UNLIKE WHAT JENSEN MIGHT HAVE YOU BELIEVE, MOORE'S LAW IS ALIVE AND WELL. [APPLAUSE]
ED: MR. GELSINGER CALLING OUT HIS INDUSTRY FRIEND AND RIVAL. ALSO THE KEYNOTE SPEAKER TAKE A QUICK LOOK AGAIN AT APPLE. EARLIER IN THE SHOW WE TALKED ABOUT THIS IDEA THAT NVIDIA WHICH IS LOWER AND APPLE A LITTLE BIT MODESTLY LOWER IS A FEW PERCENT AWAY FROM OVERTAKING APPLE. 5% OR SO. NEXT WEEK IS A BIG WEEK BECAUSE WE HAVE WWDC WHERE WE THINK WE WILL GET THE AI STORY FINALLY FROM APPLE AND HOW IT'S CAN A WORK ON MY IPHONE AND IOS.
>> GOLDMAN SACHS REITERATING BY YESTERDAY ON THE OPTIMISM AROUND WWDC BUT HAS BEEN A REAL IMPROVEMENT IN MARKETS APPLE CAPITALIZATION RATE LET'S DIG INTO IT. I WANT TO GO TO YOU FIRST IN TERMS OF THE CONTEXT HERE. APPLE WAS HAVING A PRETTY HORRIFIC 2024. NOW IT'S BROKEN BACK -- >> AFTER HE DID HIT AN ALL-TIME HIGH IN DECEMBER SO IT ENTERED A CORRECTION TECHNICALLY 10% OFF OF THAT HIGH TECH IN MARCH. COMING UP WE HAVE SEEN THAT STOCK PER COVER -- RECOVER TREMENDOUSLY.
IT’'S UP 18% IN THAT SPAN AND SOME OF THE CONVERSATIONS WITH THE PORTFOLIO MANAGERS INTO THE SECOND QUARTER BECAUSE OF THE BIG RUN WE SAW IN THE FIRST QUARTER AND THEN WE COMPARE THAT AGAINST APPLE RELATIVE TO THE S&P 500 IT WAS ONE OF THE WORST QUARTERS COMING OUT OF THE.COM BUST WHETHER OR NOT THEY WOULD BE POSITIONED WHERE PEOPLE WERE FLIPPING SOME OF THE MAG SEVEN STOCKS. STARTING TO SEE A LITTLE BIT OF THAT. IF YOU LOOK AT THE TOP SIX STOCKS YOU TAKE OUT TESLA BECAUSE OF THE VOLATILITY YOU SEE A RECORD CONCENTRATION IN THE S&P 500. YOU'RE STARTING TO SEE MORE OPTIMISM IN APPLE STOCK RECOVERING.
A LOT OF THAT HAS TO DO WITH THE RECORD BUYBACK HISTORIC PROGRAM THEY ANNOUNCED ABOUT A MONTH AGO BUT ALSO SOME OF THE EASING TENSIONS YOU WOULD THINK SOME OF THE PROBLEMS IN CHINA. >> APPLE ENDED LAST WEEK WITH ITS THIRD SUCCESSIVE WEEKLY GAIN FROM THE BLOOMBERG INTELLIGENCE PERSPECTIVE, ON APPLE, HOW MUCH ARE WE TREADING WATER. AND HOW MUCH ARE YOU HOPING TO LEARN. >> IT IS THE CHANGE INCENTIVE BECAUSE OF ALL WE'VE HEARD ABOUT DIFFERENT THINGS MARKETS REPORTED ON WHAT COULD HAPPEN, ESPECIALLY A POTENTIAL MARKET SHARE ON AI AND MAYBE EVEN GOOGLE. IT IS A VERY IMPORTANT EVENT FOR APPLE PROBABLY THE MOST IMPORTANT IN A LONGTIME BECAUSE IT WILL GIVE US SOME DIRECTION IN WHICH WAY THE PHONE SCAN -- PHONES CAN GROW IN THE SECOND HALF OR NEXT YEAR BECAUSE SO FAR WHAT WE HAVE SEEN AND AGAIN SETTING IT ASIDE THE NUMBERS HAVE NOT GONE UP. IN THE LAST TWO YEARS OR SO.
NUMBERS HAVE ONLY BEEN GOING DOWN WHEN IT COMES TO THIS. >> THROUGHOUT THE YEAR YOU'VE DONE SOME FANTASTIC CHARTING OF APPLE. CHART FOCUSED WORK, AND WE ALWAYS USED TO REFER TO APPLE AS THE MOST IMPORTANT WAITING NAME ON THE S&P 500. NOW NVIDIA IS LIKE THIS IS A
MACROLEVEL EVENT QUICK, PAY ATTENTION. HOW WAS YOUR DAY TODAY CHANGED IN RELATION TO VALUE COVER THOSE NAMES. >> I STILL FEEL WHEN I'M SPEAKING WITH MY SOURCES THAT THEY DO CARE ABOUT APPLE BECAUSE IT'S ONE OF THOSE NAMES EVEN THOUGH WE SAW AT STRUGGLE AT THE START OF THE YEAR BECAUSE OF ITS BUYBACK PROGRAMS AND THE FUNDAMENTALS AND CASH FLOW BEHIND THE COMPANY FOR LONGER-TERM PORTFOLIO MANAGERS THAT'S OBVIOUSLY GET A BE A KEY HOLDING SO IT'S MORE THE SHORTER TERM ON EXPECTATIONS IF YOU LOOK FROM A HEDGE FUND PERSPECTIVE. GOLDMAN SACHS PRIME BROKERAGE WHERE THEY ANALYZE DATA THEY'RE COMING INTO THE SECOND QUARTER INSERTED TRIMMING THEIR EXPOSURE TO THESE BIG TECHNOLOGY STOCKS. THEY WERE LOOKING AT DIFFERENT TYPES OF AI PLAYS LIKE UTILITIES SO WE'VE SEEN THAT PARTICULAR GROUP SINCE MID APRIL REALLY TAKE OFF AND SOME OF THAT PEOPLE THINK OF IT AS LOW VOLATILITY DIVIDEND TIGHT PAYING STOCKS. THIS SEEMS TO BE MORE OF A PEAK IN RATES. BUT ALSO A LITTLE BIT OF THAT
AI PLAY. IF YOU'RE LOOKING AT NVIDIA COMING INTO TODAY IT WAS ONLY 5% AWAY FROM TRYING TO CATCH UP TO APPLES MARKET CAP THERE. APPLE IS NOT TOO FAR AWAY FROM 3 TRILLION AGAIN SO IF IT CROSSES THAT FOR THE FIRST TIME SINCE JANUARY. >> STICKING ON THE APPLE THEME THERE WAS REPORTING OF OTHER OUTLETS SUCH AS THE INFORMATION TALKING ABOUT HOW MAYBE WE COULD HAVE SEEN A DEAL FOR OFFERING APPLE TV+ TO CHINA OF ALL PLACES AND JUST MENTIONING THIS PERHAPS THE EASING OF TENSIONS OF PEOPLE TRYING TO UNDERSTAND HOW THE CHINA U.S. RELATIONSHIP IMPACT APPLE. WHAT ARE YOU EXPECTING TO HEAR
IN THE FUTURE? >> AS FARCE CHINA IS CONCERNED, OF THE TV ON THE OTHER THINGS I THINK THEY REBOUNDED IPHONES WHAT WE'VE HEARD IN THE LAST COUPLE OF WEEKS IS FAR MORE PROMISING BECAUSE THERE HAS BEEN A BIG DEBATE WHETHER CHINA IS A STRONG PROBLEM FOR APPLE OR A CYCLICAL PROBLEM. THE LATEST DATA INDICATES AT LEAST FOR NOW THAT APPLE SEEMS TO BOUNCE BACK AND BUYING THE IPHONE INSTEAD OF THIS PARTICULAR ARGUMENT THAT PEOPLE WANT TO BUY APPLE PRODUCTS. SO THAT IS A BIGGER DRIVER FOR THE CHANGE INCENTIVE WHEN IT COMES TO CHINA. >> JUST MENTIONED AND BLOOMBERG INTELLIGENCE ANALYST TERRIFIC TO CATCH UP WITH YOU. COMING UP WE WILL BE JOINED BY THE PARTNER AT EXCEL FOR HIS OUTLOOK ON CYBERSECURITY INVESTING. THAT'S COMING UP NEXT AND THIS IS BLOOMBERG TECHNOLOGY.
ED: IT'S TIME FOR TALKING TECH. CISCO PLANS TO INVEST $1 BILLION IN STARTUPS THAT ARE WORKING ON WHAT IT CALLS SECURE AND RELIABLE AI SERVICES AS PART OF A PUSH TO BE A BIGGER PLAYER IN AI THE COMPANY SAYS IT'S COMMITTED ABOUT $200 MILLION OF THE MONEY AND IS MAKING INVESTMENTS FOR SCALE AI. PLUS WASHINGTON-BASED LOBBYING GROUP JA GREEN KNOWN FOR ITS TECH HEAVY CLIENT ROSTER INCLUDING PALANTIR AND SPACE X IS RAISING $100 MILLION FOR A FUND ALONGSIDE INVESTMENT FIRM AND ZOO PARTNERS WHICH WAY BACK TECH STOCKS WHICH SUPPORT NATIONAL SECURITY AND THE LONDON FIRM PROVIDING ADVICE TO COMPANIES AND BUYOUT FIRMS FOR NEARLY 30 YEARS IS BUILDING A PRESENCE IN SILICON VALLEY AS A STARTUP INVESTOR. THE INVESTMENT ARM HAS RAISED ITS FIRST VC FUND SURPASSING A TARGET OF $50 MILLION. >> NICE VC ROUND UP. LET'S STICK WITH VENTURE CAPITAL. MATTHEW IS WITH US AND THE
PARTNER IS USUALLY BASED IN SF JETTED OVER HERE TO NEW YORK. YOU ARE THE FOCUS OF CYBERSECURITY INVESTMENTS. YOU HAVE A LOT OF EARLY CHECKS INTO SOME OF THE COMPANIES WE THINK OF WHEN WE ASSOCIATE. WE'VE JUST HAD A WHOLE SWATHE OF NEWS ON CYBER ISSUES TODAY, COMPANIES GETTING THAT THEY NEED TO INVEST IN THEIR CYBER RIGHT NOW? >> I THINK THEY ARE BUT IT'S A HARD PROBLEM.
WE BEEN INVESTING FOR 30 OF THE MOST 40 YEARS WE HAVE BEEN AROUND. OVER $2 BILLION ACROSS THE 75 COMPANIES. 40 ACTIVE INVESTMENTS ACROSS EVERY MAJOR CATEGORY OF CYBER BRAID WE HAVE A PRETTY GOOD VIEW OF WHAT'S HAPPENING IN THE LANDSCAPE BUT THE THREATS ARE GETTING MORE EXTREME AND SEVERE. IT IS A BIT OF A CAT AND MOUSE GAME. YOU LEVEL UP, YOU TRY TO DEFEND YOURSELF. HACKERS LEVEL UP AS WELL. THERE IS THIS DYNAMIC BETWEEN
HACKERS AND DEFENDING AGAINST IT THAT'S REALLY DIFFICULT. >> ARTIFICIAL INTELLIGENCE MAKING EVERYONE LEVEL UP? >> ON BOTH THE HACKER SIDE AND DEFENSE SIDE. I THINK WE ARE IN PROMISING EARLY STAGES OF AI ACROSS A NUMBER OF DIMENSIONS. PARTICULARLY IN CYBER SO WERE EXCITED ABOUT WHAT AI CAN DO ON THE DEFENSE SIDE IN PARTICULAR. >> WE TALKED ABOUT THE IDEA THE GENERATIVE AI TOOLS AVAILABLE TO PLAY DEFENSE ARE EQUALLY AS AVAILABLE TO THE THREAT ACTORS, THOSE POSING A THREAT FROM A CYBERSECURITY PERSPECTIVE.
WITH THAT IN MIND, WHAT IS THE STRATEGY TO SEE THROUGH TO GROWTH STAGE AND WHERE YOU GUYS DEPLOY CAPITAL. ARUN: FOR A LOT OF OUR COMPANIES, THEY SERVE COMPANIES OF ALL TYPES. THEY HAVE GOTTEN THE MESSAGE CYBER IS EXTREMELY IMPORTANT FOR THEM AND THEY ARE INVESTING HEAVILY. WE ARE ALSO INVESTING BEHIND COMPANIES THAT ARE IN THE MIDMARKET, LONGER TAIL.
THEY ADDRESS A LOT OF CYBER COMPANY -- A LOT OF CYBER, PLEASE ADDRESS THESE THROUGH THE MANAGED SERVICE PROVIDER. SO WHERE INVESTORS IN A COMPANY CALLED BLACK POINT CYBER THAT ADDRESSES THESE COMPANIES THAT ARE SORT OF UNDERSERVED AND SO WHETHER YOU'RE A GROWTH COMPANY OR EARLY-STAGE STARTUP. CYBER IS CRITICAL MANY OF THESE ARE HIRING AT THE VERY INCEPTION OF THOSE JOURNEYS. AND IT'S A PROBLEM THAT'S BEEN FELL ACROSS THE INDUSTRY. ED: A LOT OF WHAT I HEAR FROM FOUNDERS AND CEOS IS THAT THEY PROBABLY DID NOT THINK AS MUCH ABOUT THEIR SOFTWARE AND HARDWARE INFRASTRUCTURE AS THEY SHOULD HAVE DONE BECAUSE OF THE PANDEMIC. THEY HAD A FLEXIBLE WORKING POLICY.
THEY HAD TO CHANGE SOMETIMES TO BE FULLY REMOTE AND THAT IN SOME CASES CAN MAKE THEM VULNERABLE. IS THERE AN OPPORTUNITY FOR YOU GUYS IN THAT? >> ABSOLUTELY. THE CONCEPT OF WHERE YOU SIT YOU USED TO GO INTO AN OFFICE, USE A COMPANY ISSUED MACHINE. ED: STILL DO EVERY DAY FIVE DAYS A WEEK MOST DAYS OF THE YEAR. KEEP GOING.
>> A LARGE PERCENTAGE OF KNOWLEDGE WORKERS ARE WORKING FROM HOME AND THEY ARE NEVER GOING BACK INTO THE OFFICE. HOW DO YOU PROTECT ACROSS THEIR PERSONAL DEVICES AND THEIR ENTERPRISE, THEIR LAPTOP. WE ARE SEEING A NUMBER OF SOLUTIONS SUCH AS ONE PASSWORD THAT ARE BEING DEPLOYED ACROSS EVERY DEVICE ACROSS EVERY LOGIN AND EVERY APPLICATION TO ENSURE FULL COVERAGE. I THINK THAT IS WHERE THE WORLD IS MOVING. THE SECURITY HAS TO PROTECT YOU
IN YOUR PERSONAL AND PROFESSIONAL LIFE NOT JUST ONE PHASE OR DIMENSION OF IT. >> I ASKED WHETHER COMPANIES ARE GETTING WITH THE PROGRAM WOULD ULTIMATELY THIS IS ABOUT THE CONSUMER, OUR KIDS EVENTUALLY REALIZING TWO FACTOR AUTHENTICATION OR BETTER IS THE CONSUMER GETTING WITH THE PROGRAM? ARUN: I THINK THEY ARE GETTING THERE, BUT THEY ARE GETTING THERE SLOW. THERE'S ALWAYS A LITTLE BIT OF A DELAY IN TERMS OF THE CONSUMER UNDERSTANDING. BUT THESE HACKS ARE GETTING MORE AND MORE SEVERE, MORE AND MORE PUBLIC. WHETHER IT IS TICKETMASTER OR A NUMBER OF CONSUMER APPLICATIONS, I THINK PEOPLE ARE STARTING TO GET THE MESSAGE.
>> WHERE IS THE INNOVATION AND CYBERSECURITY TECHNOLOGY HAPPENING. >> I SEE IT HAPPENING ACROSS A NUMBER OF DIMENSIONS. THE ZEITGEIST VC'S WE ARE ALL TALKING ABOUT AI. BUT IT IS ONLY APPLICABLE IF YOU HAVE GOOD DATA.
SO WE ARE SEEING A NUMBER OF OPPORTUNITIES FOR DATA SECURITY IN PARTICULAR. UNDERSTANDING THE QUALITY OF THE DATA, AWARE THAT DATA GOES. UNDERSTANDING THAT IS CRITICAL TO HAVING A ROBUST SECURITY STRATEGY. WE ARE INVESTING HEAVILY THERE. IF YOU LOOK AT THESE HATS,
IDENTITY IS THE CORE OF WHY THESE HACKS ARE HAPPENING. FOR THE VAST MAJORITY OF THESE CYBERATTACKS. WE ARE INVESTING HEAVILY IN IDENTITY. THE MSP CHANNEL AS I MENTIONED EARLIER IS A BIG OPPORTUNITY TO MAKE SURE SECURITY IS DEMOCRATIZED FOR EVERYONE.
I THINK THE LAST ONE WE INVESTED IN CROWD STRIKE IN 2013. IN EARLY INVESTMENT FOR US. THE ENDPOINT WAS IN ITS NASCENT C. IT'S REALLY EXPLODED. A LOT OF THE THEMES OF HAVING DEVICES, MOBILE PHONES AND LAPTOPS ARE REALLY IMPORTANT AND CROWD STRIKE PROTECTS THOSE THINGS. THE ENDPOINT IN PARTICULAR AND
EXTENDING INTO A NUMBER OF OTHER CATEGORIES IS WHERE WE SEE THE OPPORTUNITY AS WELL. CAROLINE: TERRIFIC ED: TO HAVE YOU -- ED: ED: TERRIFIC TO HAVE YOU ON THE PROGRAM THANK YOU SO MUCH. NEW YORK TECH WEEK WITH MANAGING PARTNER THAT'S COMING UP NEXT, THIS IS BLOOMBERG TECHNOLOGY.
>> GOING VIRAL AND TRENDING ACROSS SOCIAL MEDIA IN SEARCH, INDIA'S NATIONAL ELECTIONS. VOTING -- SITS HIGH ON DAILY SEARCH TRENDS GLOBALLY AS TALLY SIGNAL THE PRIME MINISTER'S RULING PARTY WAS STRUGGLING TO WIN A MAJORITY OF SEATS. THE RACE WAS BEING DISCUSSED ON X AND LINKEDIN. HE AND HIS RULING PARTY WILL LIKELY TO BE FORCED TO RELY ON ALLIES TO FORM A GOVERNMENT.
INDIA'S STOCK MARKET PLUMMETING RACING 386 BILLION DOLLARS IN MARKET VALUE. MODI COULD APPEAL TO THE 1.4 BILLION PEOPLE WITH A PACKAGE OF BUSINESS FRIENDLY POLICIES. HIS BJP PARTY WAS LEADING 240 SEATS SHORT OF THE 272 NEEDED TO FORM A GOVERNMENT AND WELL BEHIND THE 330 ONE IN THE 2019 ELECTION. >> BIG MARKET IMPACT. LET'S TURN OUR ATTENTION TO NEW
YORK TECH WEEK. IT'S KICKED OFF IN THE BIG APPLE. INDUSTRY TITANS ARE HERE. STARTUPS THROUGHOUT THE WEEK FOR CONVERSATIONS. NOW ALL WEEK LONG ON BLOOMBERG TECHNOLOGY WE WILL SPEAK WITH THOSE FOUNDERS AND INVESTORS AND EXECUTIVES TO TALK ABOUT THE ECOSYSTEM HERE IN NEW YORK CITY AND WHY THEY CHOOSE TO MAKE IT HOME. MANAGING PARTNER OF COURSE LONG TIME FOCUS OF VC, MEDIA AND DIGITAL HERE IN NEW YORK. YOU BEEN WRITING SOME CHECKS NOT OTHER COMPANIES OR NEW YORK CITY-BASED WHAT IS YOUR VIEW ON ALLOCATED CAPITAL.
>> WE ARE LONG TIME NEW YORK BELIEVERS PRAYED I GREW UP IN NEW YORK, WE START OF THE FUND IN NEW YORK. AND WE'VE BEEN INVESTING IN THIS ECOSYSTEM FAR BEFORE WAS COOL. MORE THAN HALF THE CHECKS WE WROTE OUR NEW YORK FOUNDERS BUT IN MANY WAYS THE WORLD HAS GOTTEN SMALLER AND OBVIOUSLY WITH COVID AND THE MOVE TO EVERYONE GETTING COMFORTABLE FOR THREE QUARTERS OF THEIR LIFE WE FIND OURSELVES INVESTING IN PEOPLE ALL OVER THE PLACE. BUT WE REALLY DO THINK WE ARE THE STRONGEST COMPETITIVE ADVANTAGE INVESTING IN NEW YORK IN OUR COMMUNITY. >> FINTECH BEING HERE, MEDIA BEING HERE ON BIOTECH, WHICH I THINK IS A BROOKLYN BASED COMPANY.
YOU'RE DOING FOOTPRINT WHICH IS ALL ABOUT ON BOARDING OF PEOPLE, WHAT IS WORKING HERE FOR AN INDUSTRY VERTICAL PERSPECTIVE. >> WHEN WE STARTED INVESTING IN NEW YORK 15 YEARS AGO IT REALLY WAS A CONSUMER MARKET AND SO A LOT HAPPENING IN COMMERCE AND COMMERCE ADJACENT MARKETS. THAT HAS CHANGED. SO I THINK IT REALLY STARTED WITH GOOGLE AND FACEBOOK AND BIG TECH BUILDING LARGE OFFICES HERE IN 2013 AND 2014. USE OF THE MARKET START TO SHIFT.
AND YOU SAW THAT INTO THE NEW YORK ECOSYSTEM THAT IS ONLY CONTINUED AND SO I REALLY BELIEVE TODAY YOU CAN BUILD ANY KIND OF COMPANY NEW YORK, THERE IS ALL DIFFERENT SORTS OF TALENT HERE, I THINK ANYTHING NEW YORK DECIDES IT WANTS TO BE GREAT AT WILL FIND A WAY TO BE GREAT AT. THERE'S POCKETS OF VALUE ALL OVER THE PLACE. AND I WILL ALWAYS AT LEAST SO FAR IN MY CAREER I'VE ALWAYS THOUGHT NEW YORK IS THE PERFECT WAY TO DO THAT.
>> HOW STRONG AND HOW IMPORTANT ARE THE BASE OF ACADEMIC INSTITUTIONS OUT IN THE EAST COAST FOR YOU? >> I THINK THE IUD'S AND THE LARGE -- VISIBLE TO UNDERGRADUATE INSTITUTIONS AND GRADUATE SCHOOLS THROUGHOUT THE NORTHEAST, AND SO I THINK THOSE ARE INCREDIBLY IMPORTANT. INTERESTINGLY LAST YEAR MORE STANFORD BUSINESS SCHOOL STUDENTS CAME TO NEW YORK AND SAN FRANCISCO. IT'S NOT JUST THE NEW YORK SCHOOLS THAT MATRICULATE HERE BUT THAT'S REALLY IMPORTANT. IF COLUMBIA AND NYU AND LOTS OF SCHOOLS WITHIN THE CITY WHICH IS GREAT. NEW YORK IS A THEATER FOR ALL DIFFERENT KINDS OF INSTITUTIONS THROUGHOUT THE COUNTRY AT THIS POINT.
>> IF THERE ARE THREE BIGGEST DRAWS FOR NEW YORK CITY, WHAT ARE THEY? BEN: I THINK IN MANY WAYS NEW YORK IS THE CENTER OF THE SORT OF ECONOMIC WORLD. THIS IS THE NUMBER ONE PLACE THAT BUSINESS IS DONE GLOBALLY. CERTAINLY IN THE UNITED STATES. THAT IS ONE.
TWO, NEW YORK IS A DIVERSE AND INTERESTING PLACE WITH IT'S A FASCINATING PLACE TO LIVE. A LOT OF INTERESTING THINGS MAKES PEOPLE WANT TO BE HERE. AND THREE, WE ARE HERE. CAROLINE:
ASIDE FROM THAT, WE CAN PUT RAINBOWS AND BUTTERFLIES AROUND NEW YORK BUT NOT ALL OF IT HAS UPSIDE. IT IS EXPENSIVE TO LIVE, CAN GET A BIT HARD AROUND THE EDGES. WHAT FROM YOUR PERSPECTIVE ARE YOU STARTING TO SEE IN TERMS OF THE FEROCITY OF COMPETITION TO ALLOCATE MONEY? ARE YOU GETTING BEATEN OUT OF THEM? BEN: IT'S A DIFFERENT MARKET WHEN WEST -- THAN WHEN WE STARTED INVESTING. THERE'S A HANDFUL OF INSTITUTIONAL FIRMS DEPLOYING INTO EARLY-STAGE VENTURE. YOU HAVE A TON OF EMERGING MANAGERS, A HANDFUL OF FUNDS THAT LOOK LIKE US THAT ARE TRUE NEW YORK COMMITTED INSTITUTIONS AND YOU NOW HAVE A BUNCH OF LARGE MULTISTAGE FIRMS, MANY OF WHICH ARE WEST COAST BASED AND SATELLITE OFFICES HERE. THERE'S MANY MORE OPTIONS IN
TERMS OF WHERE FOUNDERS CAN GO, I STILL THINK THERE ARE NOT A TON OF REALLY HIGH QUALITY TRULY FOCUSED FUNDS THAT HAVE THEIR BEST TALENT HERE AND HAVE THE KIND OF VIBRANT COMMUNITIES. BUT THERE'S WAY MORE TALENT, THERE'S JUST MORE TALENTED FOLKS STARTING BUSINESSES. CAROLINE: GOT TO WRAP IT UP THERE I'M AFRAID.
2024-06-07 17:37
