Nissan, Honda Explore Merger, Databricks' $62B Valuation | Bloomberg Technology
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: COMING UP, NISSAN IN TALKS TO MERGE WITH HONDA. WHY TECH GIANT FOXCONN CATALYZE THE AUTO DEAL DISCUSSIONS. PLUS DATA BRICKS VALUATION RISES TO $62 BILLION. AND ALL EYES ON MICRON EARNINGS AFTER THE CLOSING BELL.
NAI DEMANDED DELIVER -- CAN AI DEMAND DELIVER? WE ARE FLAT ON THE DAY WHEN IT COMES TO THE NASDAQ 100. LET'S LOOK AT KEY ADDITIONS. FROM A POINTS PERSPECTIVE IT IS ALL ABOUT NVIDIA. THAT ADDS WHOPPING AMOUNTS IN
TERMS OF MARKET CAPITALIZATION. IT IS NOT ENOUGH TO OFFSET SOME OF THE DRAGS. QUALCOMM SOLD OFF FOR THE SECOND STRAIGHT DAY. PROFIT-TAKING IS STILL WANT TO WATCH WHEN WE'RE LOOKING UP BROADCOM. CHIPMAKERS STEPPING ON MICRON. CAN WE SEE HIGH-BANDWIDTH MEMORY DELIVER? CAN WE CAI DEMAND DELIVER FROM MICRON? LET'S GET TO THIS KEY STORY OF THE DAY, THE MERGER DISCUSSIONS. NISSAN IN TALKS WITH HONDA AND
IT WOULD BE A DEAL THAT COULD CREATE THE WORLD'S THIRD-LARGEST AUTOMAKER WITH A BETTER CHANCE TO COMPETE WITH TOYOTA AND TESLA IN THE EB SPACE. -- IN THE EV SPACE. THE DISCUSSION BETWEEN THE TWO MAY HAVE ACCELERATED AFTER FOXCONN ACTUALLY APPROACHED NISSAN ABOUT TAKING A STAKE. JAPANESE COMPANIES TRYING TO FEND OFF INTERNATIONAL INVESTORS. >> THIS IS A CASE OF A COMPANY THAT HAS BEEN CHALLENGED FOR YEARS, SINCE THE MOMENT CARLOS GHOSN WAS UNCEREMONIOUSLY ARRESTED BY FOLKS IN JAPAN. THERE WAS CONCERN WITHIN THE GOVERNMENT ABOUT THE LONG-TERM VIABILITY OF THIS COMPANY AND I THINK IT DESIRE TO DRIVE THEM INTO THE ARMS OF HONDA. I THINK HONDA WAS RELUCTANT AND
PERHAPS FOXCONN WITH ITS INTEREST IN ENTERING THE AUTO INDUSTRY, ITS INTEREST IN PARTICULAR IN ELECTRIC VEHICLES KNOCKING ON NISSAN'S DOORS, IT IS INDICATIVE OF THE SORT OF PROSPECT THAT WOULD ONLY FURTHER ALARM THE JAPANESE GOVERNMENT. CAROLINE: I REMEMBER TALKING TO CARLOS GHOSN ABOUT THE NISSAN LEAF. HE WAS UPBEAT ABOUT THE SCALE OF THE MARKET THEY HAD IN ELECTRIC VEHICLES AND OUT PALES IN COMPARISON TO TESLA. HOW WOULD THE COMBINED UNITS BE BENEFICIAL? CRAIG: IT WOULD HELP NISSAN IN A BLANK SPACE WHICH IS HYBRIDS.
A FEW YEARS AGO WE WOULD'VE BEEN TALKING ABOUT WOULD HYBRIDS HAVE A FUTURE? ARE TESLAS THE WAY OF THE INDUSTRY GOING FORWARD? I THINK WE HAVE SEEN THIS REAL RENAISSANCE, PARTICULARLY IN THE U.S. MARKET, BUT ALSO OTHER PARTS OF THE WORLD WHERE IT IS CLEAR CONSUMERS ARE STILL NOT READY TO PULL THE TRIGGER ON A NISSAN LEAF OR A TESLA. IT HAS BEEN THE CASE THAT NISSAN HAS HAD A LOT OF ISSUES BUT ONE OF THEM HAS BEEN THE COMPLETE LACK OF HYBRIDS IN THE U.S. MARKETS.
HONDA HAS STRENGTH IN THAT REGARD AND WOULD HELP NISSAN TO BETTER COMPETE IF THESE WERE TO COMBINE. TIM: I AM NOT -- CAROLINE: I AM NOT SURE HYBRIDS WILL HELP IN CALIFORNIA. TELL US WHAT IS COMING FROM THE BIDEN ADMINISTRATION IN TERMS OF REGULATIONS COMPELLING PEOPLE TO HAVE EV ZERO EMISSION CARS. CRAIG: CALIFORNIA ANNOUNCED INTENTIONS TO PHASE OUT COMBUSTION CARS FROM 2035. TO ENSHRINE THAT AND PROTECT
THAT THE STATE NEEDS TO GO TO THE FEDERAL GOVERNMENT AND GET A WAIVER AND THERE IS A PRECEDENT FOR THIS GOING BACK DECADES WHERE CALIFORNIA, BECAUSE OF THE UNIQUE ISSUES IT HAS HAD WITH AIR-QUALITY GOING BACK MANY YEARS AGO, THERE IS PRECEDENT FOR THE STATE TO BE ABLE TO SET ITS OWN STANDARDS SEPARATE FROM THE FEDERAL GOVERNMENT AND THERE ARE MANY STATES THAT FOLLOW AND ADOPT CALIFORNIA STANDARDS. THIS IS A CASE OF THE BIDEN ADMINISTRATION MAKING MORE DIFFICULT ON ITS WAY OUT THE DOOR ANY EFFORT THE TRUMP ADMINISTRATION IS INEVITABLY GOING TO TRY AND TAKE A STAB AT THE VARIOUS WAIVERS THAT CALIFORNIA HAS HAD TO TRY TO SET TOUGHER POLICIES FOR THE AUTO INDUSTRY. CAROLINE: WE WILL SEE HOW IT SURVIVES THE NEXT ADMINISTRATION. A BRILLIANT ROUND UP OF ALL THINGS AUTO AND EV'S.
LET'S GET BACK TO THE SEMICONDUCTOR SPACE. MICRON REPORTING AFTER THE BELL AS WELL TODAY. ANALYSTS LOOKING FOR GROWTH IN THE COMPANY'S HIGH-BANDWIDTH.
IT IS ALL ABOUT AI INFRASTRUCTURE. A MAN KNOWS ALL ABOUT ALL THESE THINGS, PORTFOLIO MANAGER ON THE GLOBAL TECH TEAM. YOU OWN ALL OF THE BIG NAMES WHEN IT COMES TO SEMICONDUCTORS. YOU HAVE HAD EXPOSURE TO THE BIGGEST RALLIES OF THE YEAR. WHAT YOU MAKE OF HIGH-BANDWIDTH
MEMORY, THE FOCUS ON U.S. CHIPMAKERS TO GET INTO THE SPACE? DENNY: WE HAVE WITNESSED THE LARGEST DEPLOYMENT OF AN VANCE TO SEMICONDUCTOR CONTENT EVER IN OUR HISTORY AND THE REASON THAT HAS HAPPENED IS WE HAVE ADVANCED AI OVER LAST COUPLE OF YEARS. THOSE ADVANCEMENTS CONTINUE. WE HAVE REALLY LAID THE TRACKS LAST COUPLE OF YEARS WITH FREE TRAINING OF ALL OF THESE MODELS FROM OPENAI, FROM GOOGLE. WHAT IS INTERESTING IS WE ARE MAKING THE TRANSITION FROM WHAT WE HAVE SEEN WITH THESE MODELS TO REASONING AND THAT IS A BIG DEAL. NOW WE WILL START SEEING THE HANDOFF IN A MATERIAL WAY FROM PRE-TRAINING AND TRAINING TO INFERENCE AND TIME-BASED INFERENCE. THAT SHOULD CONTINUE TO BE
QUITE GOOD FOR ACCELERATED COMPUTING. THE MIX MIGHT GET DIFFERENT OVER TIME. AS IT RELATES TO GPU'S, CUSTOM A6 FROM THE HYPER SCALARS, HIGH-BANDWIDTH MEMORY, OPTICS, IT SHOULD CONTINUE -- CAROLINE: I AM NOT SEEING IT IN YOUR GLOBAL TECHNOLOGY FUND. I'M INTERESTED IN WHAT WE SEE ABOUT THE SHIFT GOING ON. NOW PEOPLE ARE MOVING ACROSS
THE SOFTWARE. CRAIG: THAT IS -- DENNY: THAT IS ABSOLUTELY RIGHT. I THINK 2025 WILL BE AN INTERESTING YEAR BECAUSE YOU CANNOT PUT INVESTMENT INTO DATA CENTERS WE HAVE PUT IN UNLESS YOU START TO MONETIZE. WE ARE STARTING TO SEE THE
BREADCRUMBS OVER THE LAST COUPLE OF QUARTERS FROM A LOT OF COMPANIES AND YOU HIT IT ON THE HEAD. THE APPLICATION SOFTWARE ECOSYSTEM, WHETHER THAT IS PUBLICLY TRADED VENDORS STARTING TO TALK ABOUT SPECIFIC CONTRIBUTIONS TO THE REVENUE MODELS OR A TON OF STARTUPS THAT ARE RACING TO DISRUPT THE EXISTING VENDORS AND TAKE ADVANTAGE OF THIS MULTITRILLION DOLLAR OPPORTUNITY. THE SOFTWARE INDUSTRY OVER THE LAST 20 YEARS GREW TO 600 OR SEVEN HUNDRED BILLION DOLLARS IN AGGREGATE AS IT EXPANDED THE SOFTWARE. BUT AS YOU START THINKING ABOUT WHAT AI CAN DO, THIS JUMP TO REASONING AND WHERE WE ARE GOING FROM HERE AND IT BRINGS NOT ONLY THE SOFTWARE INTO PLAY BUT THIS LARGER SERVICES TAM THAT CAN BE ATTACKED BY AI AND THAT SHOULD BE REALLY GOOD FOR THE SOFTWARE ECOSYSTEM. CAROLINE: HOW ARE WE GOING TO START TO SEE THE WHEAT FROM THE SHAFT? -- THE WHEAT FROM THE CHAFF? ABOUT 2020 FOR ALL BOATS HAVE RISEN UNTIL THE SECOND HALF WE STARTED TO PIT WINNERS AGAINST LOSERS. ADOBE COMPARED TO PALANTIR THAT HAS EXPLODED BECAUSE OF THE AI OPPORTUNITY. DENNY: THAT IS WHERE WE ARE AT.
WE HAVE SEEN THE NARROWING IN THE SEMICONDUCTOR ECOSYSTEM IN TERMS OF THE WINNERS AS WE LOOK AT PICKS AND SHOVELS AND THAT IS TO BE EXPECTED. EVERY TIME THERE IS A THEME LIKE THIS YOU GET A RISING TIDE LIFTS ALL BOATS AND YOU GET A NARROWING OF IT. THAT IS WHAT WE WILL SEE ACROSS THE REST OF THE TECH ECOSYSTEM INCLUDING SOFTWARE IN 2025.
AS YOU SAID WE WILL SEPARATE THE WHEAT FROM THE CHAFF. COMPANIES HAVING MEANINGFUL CONVERSATIONS WITH AI WILL GET HIGHER MULTIPLES AND THEIR GROWTH WILL ACCELERATE AND IT WILL BE GOOD NEWS. THERE WILL BE COMPANIES THAT ARE CLEARLY STRUGGLING TO GET TO THE RIGHT SIDE OF TIME AS YOU MENTIONED AN ADOBE IS AN INTERESTING CASE STUDY BECAUSE IT HAS BEEN A HEAVILY DEBATED STOPPING THE INVESTMENT COMMUNITY FOR THE LAST COUPLE OF YEARS AS INVESTORS HAVE GONE FROM ADOBE BEING ON THE RIGHT SIDE OF TIME AS IT RELATES TO AI TO POTENTIALLY BEING ON THE WRONG SIDE. . CAROLINE: MANY TRYING TO PASS THE RIGHT OR WRONG SIDE OF THE NEXT ADMINISTRATION.
THIS WILL AFFECT SOME INTERNET NAMES. WE HAVE THE BREAKING NEWS THE U.S. SUPREME COURT WILL HEAR ARGUMENTS OVER TIKTOK DIVESTMENT. WE DO SEE REGULATORY IMPLICATIONS FOR A LOT OF COMPANIES. HOW YOU NAVIGATE THAT? DENNY: NOT TOO DIFFERENTLY THAN HOW WE HAVE NAVIGATED IT FOR THE LASTING AND FULL OF YEARS.
WE HAVE HAD A VERY HOSTILE BACKDROP FOR THE LAST FOUR YEARS. IT IS PROBABLY HARD TO GET WORSE. WILL IT GET BETTER? IT MIGHT GET A LITTLE BIT BETTER IN CERTAIN AREAS BUT I EXPECT TO CONTINUE TO BE A DIFFICULT ENVIRONMENT FOR LARGE-CAP TECH. THAT DIMINISHES THE OPPORTUNITY FOR THEM TO DO M&A AND IT ALSO WILL CONTINUE TO SEE AGGRESSIVE POSTURES FROM THE DOJ LIKE WE HAVE CAROLINE: SEEN WITH THE GOOGLE CASE CAROLINE:. -- CAROLINE: DENNY FISH TAKING US ACROSS THE BREADTH OF THE TECH ECOSYSTEM. THE SUPREME COURT HAS ANNOUNCED IT WILL HEAR TIKTOK'S CHALLENGE TO ITS U.S. BAN ON JANUARY 10, JUST DAYS
BEFORE THE BAN OR DIVEST ARGUMENT ON JANUARY 19. WE SEE THE IMPLICATIONS FOR SNAP, SNAP SHARES FALLING. META-SHARES HAVE BEEN PARING THERE GAIN ON THE NEWS. COMING UP, CRACKING DOWN ON CHINA.
THE LATEST ACTION BEING TAKEN BY THE BIDEN ADMINISTRATION. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: CROSSING THE BLOOMBERG TERMINAL IS THE SUPREME COURT WILL HEAR TIKTOK'S ARGUMENTS ON JANUARY 10 BEFORE A POTENTIAL BAN ON JANUARY 19. BLOOMBERG'S KAILEY LEINZ JOINS US FOR MORE. THIS IS ALL EITHER TO DIVEST OR BE BANNED ON JANUARY 19 BUT THEY MANAGED TO GET THE SUPREME COURT TO HEAR THE ARGUMENT. KAILEY:
SINCE THIS LAW WAS FIRST PASSED AND SIGNED INTO LAW BY PRESIDENT BIDEN HAS CONTENDED IT VIOLATES THE RIGHT TO FREE SPEECH EMBEDDED IN THE BILL OF RIGHTS AND THE U.S. CONSTITUTION. THAT IS THE LAW WITH WHICH TIKTOK IS PURSUING THE APPEAL AT THE SUPREME COURT AFTER HAVING LOST AN APPEAL IN THE D.C. CIRCUIT FEDERAL COURT OF APPEALS WHICH VOTED 3-0 AGAINST THE COMPANY'S ARGUMENTS SAYING THAT CONGRESS WAS WELL WITHIN ITS RIGHTS TO PUT INTO PLACE THIS BAND. WE WILL SEE HOW THIS GOES ON JANUARY 10, JUST NINE DAYS BEFORE THE BAN IS SET TO GO INTO EFFECT. THE SUPREME COURT DOES HAVE A
CONSERVATIVE MAJORITY, THREE JUSTICES OF WHICH WERE APPOINTED BY PRESIDENT ELECT DONALD TRUMP WHO EARLIER THIS WEEK WHEN ASKED ABOUT THE TIKTOK BAN SAID HE HAS A WARM PLACE IN HIS HEART FOR TIKTOK, TALKING ABOUT HOW HE DOES THINK IT IS A PLACE TO PICK UP MORE OF THE YOUTH VOTE. AT MAR-A-LAGO HE MET WITH THE TIKTOK CEO. INTERESTING TO SEE IF WE HEAR FROM THE PRESIDENT-ELECT ON THE SUPREME COURT'S DECISION TO HEAR TIKTOK'S ARGUMENTS. CAROLINE: THIS HAVING MARKET IMPLICATIONS. WE SEE SNAP LOSING MARKET VALUE. ALSO PARING SOME OF ITS EARLIER
-- META ALSO PARING SOME OF ITS EARLIER GAINS. ALL OF THIS IS IN THE CONTEXT OF U.S. VERSUS CHINA. BIDEN WILL BE ANNOUNCING A CHINESE SEMICONDUCTOR PROBE.
KAILEY: THIS IS INTERESTING. THIS PROBE WILL BE LOOKING AT FOUNDATIONAL CHIPS. THE OLDER GENERATION THAT ARE THE BACKBONE TO EVERYTHING FROM CARS TO SMARTPHONES KNOWING THIS ADMINISTRATION FOR THE LAST SEVERAL YEARS HAVE BEEN PUTTING INTO PLACE EXPORT CONTROLS AROUND ADVANCED SEMICONDUCTOR TECHNOLOGY. THE THINGS THAT GO INTO ARTIFICIAL INTELLIGENCE. THE CONCERN THIS WHITE HOUSE
STILL HAS IS THAT CHINA BECAUSE IT IS STILL PRODUCING THESE OLDER CHIPS IS GOING TO BE ABLE TO FLOOD THE MARKET WITH THEM AND MAKE AMERICAN COMPANIES LESS COMPETITIVE. ALREADY THIS ADMINISTRATION ANNOUNCED THEY WOULD LIKE TO RAISE THE TARIFFS ON OLDER CHIPS FROM 25% TO 50%. THE FEELING OF THE ADMINISTRATION IS THAT IS NOT ENOUGH TO ADEQUATELY PROTECT COMPETITION. HENCE THE LAUNCHING OF THE INVESTIGATION. WHILE THIS INVESTIGATION WILL BE LAUNCHING, THE INAUGURATION WERE JOE BIDEN WILL LEAVE THE OFFICE IS JUST OVER 30 DAYS AWAY. ULTIMATELY THE FINDINGS OF THE
PROBE WILL BE LEFT AT THE DISCRETION OF DONALD TRUMP AS TO HOW TO HANDLE THEM, WHETHER TARIFFS OR OTHER RESTRICTIONS AROUND TRADE. WE KNOW THE PRESIDENT-ELECT IS NOT SHY WHEN IT COMES TO TARIFFS IN CHINA CAROLINE:. HE LOVES THE WORD. WE KNOW HE DID INVITE PRESIDENT XI TO THE INAUGURATION. COULD A LOT OF THIS END UP NOT BEING IMPLEMENT IT BECAUSE DEALS ARE DONE? KAILEY: THAT IS ENTIRELY POSSIBLE AND IT IS A LIVE CONVERSATION IN WASHINGTON AS TO WHETHER OR NOT THE TARIFFS DONALD TRUMP HAS THREATENED ARE JUST A NEGOTIATING TACTIC, WAY TO START THE CONVERSATION TO EXTRACT MORE FROM CHINA, A WAY TO USE LEVERAGE. IT WILL BE UP TO HIS DISCRETION
IF HE WANTS TO ACT, IF IT THE FINDINGS CONCLUDE THEIR UNFAIR TRADING PRACTICES CHINA IS INVOLVED IN WHEN IT COMES TO THIS CRITICAL TECHNOLOGY THE U.S. IS ALREADY HEAVILY INVESTED IN DEVELOPING. WHILE A LOT OF THIS IS THE DISCRETION OF THE PRESIDENT CONGRESS IS CONSISTENTLY ACTING HAWKISH LEAD TOWARDS CHINA AS WELL. IT IS CONGRESS WHERE THE TIKTOK FAN ORIGINATED AS WELL. IN THE CONTINUING FUNDING RESOLUTION RELEASED LAST NIGHT INCLUDES LANGUAGE RELATED TO OUTBOUND INVESTMENT INTO CHINA RESTRICTIONS.
THIS IS SOMETHING WE ARE SEEING ACROSS THE BOARD. CAROLINE: NOW IT IS TIME FOR TALKING TECH. THE RISK OF BLACKOUTS WILL INCREASE FOR MOST OF NORTH AMERICA OVER THE COMING DECADE ACCORDING TO A REPORT BY GRID RELIABILITY REGULATOR IN THE REPORT UNDERSCORES UTILITY CHALLENGES AS DEMAND IS FORECAST TO RISE THE MOST IN DECADES. PLUS A NEW COURT ORDER ISSUED MONDAY SAYS TIKTOK MUST TURN OVER ITS SOURCE CODE AND FINANCIAL DATA AFTER CLAIMS FROM THE CHINESE TECH COMPANY BEIJING NETWORK OF CUES THE SOCIAL MEDIA PLATFORM OF COPYRIGHT INFRINGEMENT AND MISAPPROPRIATION OF TRADE SECRETS. META'S INSTAGRAM IS EXPECTED TO ACCOUNT FOR HALF OF THE COMPANIES AT REVENUE IN THE UNITED STATES. INSTAGRAM IS EXPECTED TO TOP $32 BILLION IN ADVERTISING REVENUE, MORE THAN 24% FROM THE CURRENT YEAR.
COMING UP, SANDBOX ANNOUNCES A NEW FUNDING ROUND. WILL BE DISCUSSING THE COMPANY'S PLANS TO USE AI AND INNOVATE EVERYTHING FROM MEDICAL DEVICES TO CYBERSECURITY. CAROLINE: AI SOLUTIONS COMPANY SANDBOXAQ HAS CLOSED ITS LATEST ROUND OF FUNDING, RAISING FEE HUNDRED MILLION DOLLARS. -- RAISING $300 MILLION.
THE COMPANY SAYS THE INVESTMENT WILL BE USED IN AREAS LIKE DRUG DISCOVERY, NAVIGATION, AND MEDICAL DEVICES USING ITS OWN AI TECHNIQUES. CEO JACK IS HERE WITH US. HOW IS WHAT YOU ARE BUILDING DIFFERENT FROM THE LARGE LANGUAGE MODELS. JACK: GREAT TO BE HERE LIVE IN ONSET. IN THE WORLD OF ZOOM IN IS GREAT TO BE HERE IN PERSON. THIS IS A NEW AREA OF AI. WE ARE ALL FAMILIAR WITH LARGE LANGUAGE MODELS.
MILLIONS OF PEOPLE USING IT AROUND THE WORLD AS IT SHOULD BE. NOW COMES LARGE QUANTITATIVE MODELS. WHEN WE LOOK AT THE MAJORITY OF THE BUSINESS SECTORS, THE ECONOMY, CHEMICALS, ENERGY, FINANCIAL SERVICES. THESE ARE QUANTITATIVELY DRIVEN, NOT LANGUAGE DRIVEN.
THE MAJORITY OF OUR ECONOMY IS QUANTITATIVE RELATIONSHIPS. AN EXAMPLE WOULD BE IN BIOFARMA. LET'S SAY WE WANT TO TAKE NEW DRUG FOR CANCERS FOR ALZHEIMER'S OR PARKINSON'S. WE DO NOT WANT TO TAKE THE DRUG OF THE LANGUAGE MODEL TRADE ON REDDIT AND CAP PICTURES, BUT WE CAN USE LARGE LANGUAGE MODELS TO SUMMARIZE SCIENTIFIC LITERATURE. WHEN IT COMES TO THE QUANTITATIVE RELATIONSHIPS OF CREATING THE DRUG, SEEING IF IT FITS THAT RECEPTOR AND DEVELOPING THAT THROUGHOUT THE CRITICAL TRIAL, THAT IS A JOB FOR LARGE QUANTITATIVE MODELS.
THE DATA IS FUNDAMENTALLY DIFFERENT, THE MODELS ARE DIFFERENT, THE WHOLE FIELD IS A NEW AREA. CAROLINE: HOW PRACTICAL IS IT IN ITS APPLICATION? WHEN YOU'RE RAISING $300 MILLION, WHAT IS THAT FOR? IS IT FOR TALENT, TO DRIVE THE NECESSARY IMPROVEMENTS IN THE MODELS? JACK: THE GOOD NEWS IS WE HAVE NOW PROVEN WITH CUSTOMER AFTER CUSTOMER THAT IT IS HAVING IMPACT. UCSF, ONE OF THE BEST PLACES FOR BIOMEDICAL WORK, USING OUR SOFTWARE TO ADVANCE HIS DRUGS FOR NEURODEGENERATIVE DISEASES RIGHT NOW. THIS IS HAVING AN IMPACT TODAY. IT IS HAVING AN IMPACT ON NVIDIA AND ALPHABET. IT IS RUNNING RIGHT NOW.
THESE ARE QUANTITATIVE MODELS, NOT TRAINED ON WORDS ON THE INTERNET, BUT TRAINED ON THE RELATIONSHIPS OF CHEMICALS AND ATOMS IN THOSE DYNAMIC RELATIONSHIPS. IT IS HAVING IMPACT RIGHT NOW. CAROLINE: YOU TALKED ABOUT A SPINOFF, IT WAS A SPINOFF FROM GOOGLE, YOUR CHAIR IS ERIC SCHMIDT, AND WE UNDERSTAND THE WAY IN WHICH THE COMPANY WAS BORN AND THEN WE LOOK AT GOOGLE QUANTUM, EVERYONE IS EXCITED ABOUT REAL APPLICATIONS TO QUANTUM IN THE NEXT FIVE TO 10 YEARS. IS THAT REALISTIC? JACK:
THAT IS A GREAT QUESTION. WHAT WE CALL OUR COMPANY SANDBOXAQ? A FOR AI, Q FOR QUANTUM. ADVANCED COMPUTER HAS TWO ENGINES. THE AI ENGINE OF LARGE LANGUAGE MODELS BUT NOW IT ALSO HAS THE Q . THE BREAKTHROUGH GOOGLE
ANNOUNCED LAST WEEK, OUR COLLEAGUE TO ANNOUNCE THAT AT THE SANTA BARBARA CAMPUS OF GOOGLE IS A WONDERFUL EXAMPLE OF THE MILESTONES BEING ACHIEVED IN THE QUANTUM HARDWARE SPACE. WE DO NOT BUILD QUANTUM HARDWARE AND WE USE QUANTUM HARDWARE. TODAY QUANTUM COMPUTERS ARE VERY EARLY BUT LAST WEEK WITH THE WILLOW CHIP COME AS YOU SCALE THE NUMBER OF CUBITS YOU CAN DECREASE THE NUMBER OF ERRORS. THAT WAS A CRITICAL MILESTONE IN TERMS OF HOW WE CAN ADVANCE QUANTUM COMPUTING. THE FUTURE WE SEE IS ONE THAT HAS GPU AND KEEP EU -- AND QPU WORKING TOGETHER IN THE HYBRID CLOUD. THAT IS THE FUTURE AND WE WILL
SEE SIGNIFICANT PROGRESS OVER THE NEXT FIVE YEARS IN THE QUANTUM HARDWARE ITSELF. CAROLINE: ALL OF THAT MEANS YOUR APPLICATIONS BECOME MORE BROAD. HOW QUICKLY ARE YOU GOING TO BE MAKING MONEY FROM THIS FOR YOUR INVESTORS? JACK: THE GOOD NEWS IS WE ARE GENERATING REVENUE TODAY AND CREATING VALUE FOR OUR CUSTOMERS. BE IT IN BIOFARMA OR THE CHEMICALS AND MATERIALS BASED, WE KNOW THE IMPORTANCE OF BATTERIES, NOT JUST FOR ELECTRIC VEHICLES. THE BIGGER MARKET FOR BATTERIES ARE STATIONARY BATTERIES TO STORE ENERGY FROM RENEWABLE SOURCES. WE MUST LEAPFROG YAWNED THE TECHNOLOGY -- WE MUST LEAPFROG BEYOND THE TECHNOLOGY.
THIS IS A JOB FOR A LARGE WANTED TATE OF MODEL. THE NUMBER OF -- A LARGE QUANTITATIVE MODEL. WE RAISE THE MONEY TO ADVANCED OUR INVESTMENT IN THE PRODUCT ENVIRONMENT. WE HIRE MORE PHD'S AND SOFTWARE
ENGINEERS. WE HAVE QUITE A FEW READY BUT IT IS TIME TO HIRE MORE. IF YOU HAVE THOSE SKILLS PLEASE CONTACT US. CAROLINE: EXPECTING THE QUARTER-POINT CUT. WE ARE TOTALLY FLAT. UNDERNEATH THE SURFACE THEIR
KEY CONTRIBUTORS COMING FROM NVIDIA. LET'S DIG INTO WHAT IS HAPPENING ON THE CRYPTO SIDE OF THINGS. NOW THE RISK AS IT IS TRADING -- WE ARE NOW 103,000. YESTERDAY WE MANAGED TO PEAK ABOVE $108,000. WE ARE SEEING A LITTLE BIT OF MONEY COMING OFF AHEAD OF THE HOLIDAYS. MICROSTRATEGY DOWN. HEARING FROM MICHAEL SAILOR EARLIER.
WASHINGTON CONSIDERING CRYPTO REGULATION, HOW IT WILL ITERATE COME IN MICROSTRATEGY IS BUYING BITCOIN, BRINGING TOTAL INVESTMENTS TO $45 BILLION. THE CHAIRMAN MICHAEL SAILOR SPOKE TO BLOOMBERG ON WHY THE COMPANY IS INVESTING IN ADDITIONAL ASSETS AND WHETHER HE WOULD CONTINUE A ROLE IN SHAPING NEW CRYPTO POLICY. MICHAEL: I HAVE MET WITH A LOT OF PEOPLE IN THE INCOMING AND MINISTRATION BUT I CANNOT COMMENT FURTHER THAN THAT. KATIE: I WAS GOING TO ASK YOU ABOUT PLANS BUT INSTEAD I WILL ASK YOU ABOUT WHETHER YOU WOULD BE WILLING TO SERVE IN THE TRUMP ADMINISTRATION IN ANY CAPACITY. BLOOMBERG HAS REPORTED THERE COULD BE A CRYPTO ADVISORY COUNCIL. IS THAT SOMETHING YOU MIGHT BE INTERESTED IN? KATIE: I AM ALWAYS WILLING -- MICHAEL: I AM ALWAYS WILLING TO PROVIDE THOUGHTS ON CONSTRUCTIVE DIGITAL ASSETS POLICY.
IF I AM ASKED TO SERVE ON SOME SORT OF DIGITAL ASSETS ADVISORY COUNCIL I PROBABLY WOULD DO SO. KATIE: KATIE: I ALSO WANT TO TALK TO ABOUT MICROSTRATEGY. IT IS AMAZING YOU ANNOUNCED PLANS TO RAISE $42 BILLION OVER THREE YEARS, YOU ANNOUNCED THAT IN OCTOBER. THE RATE YOU'RE GOING YET THROUGH CONVERTIBLE DEBT OFFERINGS, STOCK SALES, YOU COULD FULFILL THAT TARGET BY JANUARY. ARE YOU PLANNING TO LIFT THAT CAPTAIN LINE-UP MORE FACILITIES IN THE PURSUIT OF MORE BITCOIN? MICHAEL: WHEN WE ANNOUNCED IT WAS NOT CLEAR HOW ENTHUSIASTIC THE CAPITAL MARKETS WOULD BE BUT WE GOT A VERY ENTHUSIASTIC RECEPTION AND AFTER NOVEMBER 5 WITH THE RED WAVE WE SAW A BIG SEACHANGE IN THE CLINICAL ENVIRONMENT. WE WENT FASTER THAN WE THOUGHT
WE WERE GOING TO GO ON OCTOBER 30. OUR GOAL IS TO CONTINUE TO RAISE CAPITAL, PRIMARILY THROUGH FIXED INCOME MARKETS. WE WILL PURSUE PREFERRED STOCK OR CONVERTIBLE BOND OR OTHER EQUITY LINKED FINANCING AS LONG AS IT IS CREATIVE FOR OUR SHAREHOLDERS. WHEN WE GET THROUGH THE 2121 PLAN WHICH IS $42 BILLION IN CAPITAL WE WILL REVISIT OUR CAPITAL PLAN AND WE WILL PUT IN PLACE A NEW PLAN SUBJECT TO MARKET CONDITIONS AT THE TIME.
CAROLINE: MICHAEL SAILOR ON POLITICAL ROLES IN THE FUTURE OF HIS BITCOIN BY. LET'S TALK A LITTLE MORE. YOU HAVE DEFIANCE DAILY TARGET TWO TIMES LONG MICROSTRATEGY ETF? HOW IS DEMAND FOR THOSE MICROSTRATEGY? >> DEMAND IS ON FIRE. WE HAVE SEEN BILLIONS OF DOLLARS OF ASSETS FLOWING INTO THE ETF.
THE REASON IS BITCOIN HAS TAKEN OFF. WHETHER THAT IS BECAUSE OF THE COMMERCIALIZATION OF BITCOIN, ETF'S HOLDING BITCOIN, FEBRILE POLICY WITH AN -- FAVORABLE POLICY WITH THE NEW GOVERNMENT COMING INTO OFFICE. WHO IS THE BEST PROXY FOR BITCOIN. IT IS MICROSTRATEGY. THE STOCK LISTED AS AN EXCHANGE AS A LEVERAGED VERSION OF BITCOIN AND WE HAVE LEVERAGED IT TWO TIMES.
THE SHORT-TERM VOLATILITY TRADERS LOVE THE ETF BECAUSE IT IS WILDLY POPULAR. CAROLINE: FROM AN INSTITUTIONAL PERSPECTIVE AS WELL AS RETAIL. SYLVIA: WHAT IS GREAT ABOUT THE INSTITUTIONAL ANGLE IS SOME INSTITUTIONS ARE WARY ABOUT BITCOIN ITSELF WHETHER IT IS THE DIGITAL WALLET OR USING AN ETF. MICROSTRATEGY IS JUST A SOP THAT TRADES ON AN EXCHANGE SO THEY ARE ABLE TO PUT THAT IN THEIR PORTFOLIOS. CAROLINE:
A VERY VOLATILE HOLDING IN THEIR PORTFOLIOS. TALK TO US ABOUT WHEN YOU'RE LOOKING AT THE HYPE CYCLES AROUND WHETHER IT IS CRYPTO OR AI, COMPARE AND CONTRAST YOU HAVE PEOPLE WANTING TO POUR INTO THE INFRASTRUCTURE SIDE OF THE AI AND OTHERS YOU HAVE EXPOSURE TO? SYLVIA: THE DEMAND IS ALL-TIME HIGH EVER SINCE THE CHATGPT MOMENT AND CRYPTO. THERE ARE TRILLIONS OF DOLLARS OF CASH SITTING ON THE SIDELINES. THERE IS THE BIGGEST WEALTH TRANSFER OF OUR GENERATION HAPPENING AS WE SPEAK AND GEN Z, MILLENNIAL, JEN X, THE YOUNGER TRADERS, THIS IS WHERE THEY ARE ALLOCATING THEIR FUNDS. RETAILERS HAVE SPOKEN AND THEY'RE LOOKING FOR THAT FOURTH INDUSTRIAL REVOLUTION. THE BIGGEST TRADES ARE QUANTUM AND MICROSTRATEGY.
CAROLINE: LET'S GO INTO QUANTUM. WE ARE STARTING TO SEE QUANTUM THEORY PUT INTO PRACTICE. YOU JUST MENTIONED WILLOW AND BREAKTHROUGHS AT GOOGLE. OUR OTHER STOCKS ONLY DOMINATING ON THE BIG COMPANIES THAT GOT EXPOSURE TO IBM OR GOOGLE OR ARE THEY GOING SMALLER? SYLVIA: WHAT I LIKE ABOUT WHAT JACK EXPLAINED HIS COMPANY HAS THE AI AND THE QUANTUM. CHATGPT AI IS VERSION ONE.
QUANTUM IS TAKING EVERYTHING TO THE NEXT LEVEL. YOU NEED TO PROCESS THE DATA QUICKLY. IT WILL HELP HEALTH CARE COME AEROSPACE AND DEFENSE, BLOCKCHAIN TECHNOLOGY COME ANYTHING YOU CAN THINK OF WILL BE BETTER WITH QUANTUM SUPERCOMPUTING POWER.
THE MOST POPULAR STOCKS ARE A COMBINATION OF LARGE CAPS AND SMALL CAPS. YOU HAVE IBM'S AND GOOGLE AND NVIDIA. SOME OF THESE ARE VERY RELEVANT. THE SMALLER NAMES ARE TAKING OFF HUNDREDS OF A PERCENTAGE POINT OF PERFORMANCE. WE ACTUALLY MARRIED THEM IN OUR
ETF QUANTUM SO YOU HAVE A LARGE CAPS AND THE SMALL CAPS. SO YOU HAVE THE BALLAST OF EARNINGS AND THE HIGH FLYERS. CAROLINE: LOOK AT THESE HIGH FLYERS.
WE ARE UP BASICALLY 1000%. HOW CAUTIOUS HAVE BEEN PEOPLE GETTING INTO THESE WILDLY MORE VOLATILE NAMES? SYLVIA: PEOPLE HAVE BEEN DOING A COMBINATION OF BOTH. THEY ARE GETTING THE SMALLER NAMES BUT ALSO LOOKING AT THINGS LIKE THE ETF. YOU WANT TO BALANCE IT WITH GOOGLE. GOOGLE IS A COMPANY THAT DOES
MANY THINGS AND CAN PERFORM QUITE WELL. IT BOUNCES YOUR RISK ON THE SMALL CAPS BUT IT COMES BACK TO THE ADMINISTRATION. THE ADMINISTRATION WOULD BE VERY FAVORABLE TO QUANTUM RATE CUTS, MORE FREEDOM FOR M&A ACTIVITY IN THEORY. THE BACKDROP HELPS ALONG WITH THE SUPER HIGHFLYING TECHNOLOGY MOVING FORWARD. CAROLINE: ALL EYES ON THE FED IN ABOUT AN HOUR OR SO. DEFIANCE CEO.
LET'S TALK ABOUT ELON MUSK AND SPACEX BECAUSE THEY HAVE REPEATEDLY FAILED TO COMPLY WITH FEDERAL REPORTING PROTOCOLS AIMED AT PROTECTING STATE EGRETS , TRIGGERING SEVERAL FEDERAL REVIEWS. THE AIR FORCE ALSO RECENTLY DENIED MOSQUE A HIGH-LEVEL SECURITY ACCENT -- DENIED MUSK HIGH-LEVEL SECURITY ACCESS. HERE IS WHAT SPACEX PRESIDENT SAID ABOUT THE COMPANY'S RELATIONSHIP WITH THE AIR FORCE JUST YESTERDAY. >> WE HAD A ROUGH RELATIONSHIP EARLY ON WITH THE AIR FORCE. YOU HAVE OVER THE LAST 1011 YEARS DEVELOPED A GREAT RELATIONSHIP. IT TAKES A LONG TIME TO BUILD TRUST. WE ARE FINALLY THERE. CAROLINE:
NASA ANNOUNCING ANOTHER DELAY. NOW SAYING THEY WILL REMAIN THERE UNTIL LATE MARCH. COMING UP, $62 BILLION VALUATION. WE SPEAK WITH THE DATE OF RICK CEO. THIS IS BLOOMBERG TECHNOLOGY.
CHECK OUT THE BLOOMBERG SURVEILLANCE SPECIAL FED ADDITION AT 1:30 EASTERN TIME. THIS IS BLOOMBERG. DATABRICK'S RAISING $10 BILLION IN NEW FUNDING, PUTTING THE SOFTWARE VALUATION TO $62 BILLION. IT SAYS IT INTENDS TO INVEST THE CAPITAL TO MORE AI PRODUCTS, SIGNIFICANT EXPANSION IN ITS INTERNATIONAL GO TO MARKET OPERATIONS. ALI GHODSI JOINS US NOW. LET'S TALK ABOUT THE AI APPLICATIONS WHICH IS WHERE YOU SEE THE WIDE-OPEN SPACE AT THE MOMENT FOR DATABRICKS. ALI: THERE ARE SO MANY APPLICATIONS ACROSS MANY DIFFERENT PROTOCOLS. LOTS OF COMPANIES ARE USING US FOR AI IN DATA PROCESSING.
STARTING WITH RIVIAN, THE CAR BAKER USES IT TO OPTIMIZE -- THE CARMAKER USES IT TO OPTIMIZE THE BATTERIES OF ELECTRIC VEHICLE. WALGREENS USING US. SQUARE OR BLOCK. THEY USED TO HAVE A NAP WHERE YOU SWIPE YOUR CREDIT CARD BUT YOU SAID THAT UP IN A STORE USED TO BE COMPLICATED. YOU CAN USE GENERATIVE AI AND
SAY I HAVE THIS PRODUCT JUST USING GENERATIVE AI. CAROLINE: BEFORE YOU WERE DEMOCRATIZING DATA IT WAS ABOUT THE IMPLICATIONS OF AI. FOR THAT YOU NEED TALENT. I AM INTERESTED AS TO WHERE THE NEXT LAYER OF TALENT IS COMING FROM AND HOW YOU GET THEM ON BOARD? ALI: THERE IS A CRAZY WAR FOR AI TALENT. I'VE NEVER SEEN ANYTHING LIKE IT. THE WAR WAS ALREADY CRAZY FOR SOFTWARE ENGINEERS. WITH AI IS COMPLETELY INSANE. WILL USE A LOT OF THE PROCEEDS
TOWARDS THAT TO BECOME COMPETITIVE. A LOT OF TALENT WAS HIRED BY OPENAI. WE HIT THE THING CALLED A SCALING WALL. CAROLINE: YOU THINK THERE IS A WALL? SAM ALTMAN IS DETERMINED THERE IS NOT ONE. ALI: THERE IS A WALL. EVEN THOSE BIG COMPANIES ARE NOW INVESTING IN OTHERS.
NOT THE CLASSIC SCALING. THAT HAS OPENED UP THE OPPORTUNITY WHERE PEOPLE ARE GOING THROUGH MORE COMPANIES THAT CAN PARTICIPATE IN THIS NEXT CHAPTER AFTER THE SCALING WALL OR THE SCALING LAWS. THAT IS ALSO VERY UP SIDING. -- THAT IS ALSO VERY EXCITING. CAROLINE: YOU PAY UP FOR U.S. TALENT? YOU YOURSELF ARE IMMIGRANT, ORIGINALLY I RAN, SWEDEN, THAN THE UNITED STATES. I WONDER HOW MUCH YOU LOOK ABROAD IN THE CONTEXT OF THE NEXT ADMINISTRATION? ALI: NOT BECAUSE OF THE ADMINISTRATION BUT WHEN THERE IS A TALENT WAR GOING ON WE LOOK AT WHERE WE CAN GO WHEN IT IS NOT SO INTENSE, WHERE THE COMPETITION IS NOT SO INTENSE. EASTERN EUROPE IS SUPER
INTERESTING. SMART PEOPLE LIVE THERE. YOU DO NOT HAVE THAT INTENSITY OF COMPETITION. WE ARE LOOKING AT ALL OF THOSE. WE DO NOT WANT TO IGNORE SILICON VALLEY OR THE UNITED STATES.
IT IS STILL WHERE YOU HAVE THE HIGHEST TALENT DENSITY. WE WILL COMPETE HERE AS WELL. CAROLINE: IS IT ABOUT ACCURATE HIRING? YOU'VE BEEN INQUISITIVE. ARE YOU GOING TO MAKE ACQUISITIONS BECAUSE OF THE PEOPLE OR THE PRODUCTS BEING BUILT? ALI: BOTH.
THERE ARE A LOT OF STARTUPS THAT START WITH SUPER TALENTED PEOPLE, AMAZING IP BUT DID NOT GET TO THE REVENUE. TWO BIRDS WITH ONE STONE. YOU GET THE TALENT AND THE INTELLECTUAL PROPERTY AND IN THIS RACE YOU NEED BOTH OF THOSE THINGS. WE WILL DOUBLE DOWN ON THAT EVEN MORE NOW THAT WE HAVE THIS. CAROLINE:
IS A RACE BUT ALSO A RACE VERSUS YOUR COMPETITION. WHO ARE YOUR KEY COMPETITORS? ON LINKEDIN YOU UP AND THROWING SHADE AT SNOWFLAKE. WE ALL THINK ABOUT MICROSOFT. ARE THOSE THE COMPETITORS? ALI: IN SNOWFLAKE I WOULD SAY THAT HIS PREVIOUS YEARS. NOW IN THIS AI ERA THAT HAS SHIFTED. MICROSOFT IS A SUPER IMPORTANT PARTNER. MICROSOFT, AMAZON, AND GOOGLE
ARE INVESTORS. THERE IS COMPETITION. ALL OF THOSE COMPANIES, THE MAJORITY OF THE REVENUE IS STORAGE AND NETWORKING. THAT MIGHT BE 70% OF YOUR REVENUE. WE DRIVE SO MUCH STORAGE COMPUTE AND NETWORKING. WE DRIVE CLOSE TO 30 MILLION
MACHINES IN THE CLOUD EVERY DAY. WE ARE SUPER CLOSE PARTNERS AND THEY LOVE US AS CUSTOMERS. THERE IS THAT COMPETITION HAPPENING AS WELL AND THAT WILL EXPAND OVER TIME AS AI'S ARE GROWING MORE AND MORE IMPORTANT. CAROLINE: A GAME OF FRENEMIES WHEN IT COMES TO TECHNOLOGY. I'M INTERESTED IN HOW YOUR RAISING MONEY. YOU HAVE CAPITAL FRONT AND CENTER AND ALSO A WHO'S WHO IN OTHER INVESTORS. YOU ALSO GO INTO THE DEBT
MARKETS. HOW IS THAT GOING BECAUSE THAT SEEMS TO BE TRYING TO OFFSET THE TAX IMPLICATIONS TO KEEP YOUR EMPLOYEES HAPPY. ALI: THAT IS A GREAT POINT. LET'S TAKE EQUITIES. THE EQUITY RATE FOR US IS SUPER IMPORTANT THAT ARE LONG-TERM ORIENTED. WE WANT THE INVESTORS THAT WILL SAY WE WILL BE WITH YOU 10 YEARS. THIS IS A GREAT PRICE. WE WILL BUY IT MORE AND STICK
TO YOUR PLAN AND THAT YOU HAVE A LONG-TERM VISION AND NOT BECOME TOO SHORT-TERM ORIENTED, THE 90 DAY QUARTERLY MINDSET. THAT IS THE THING WE OPTIMIZED FOR AND WE WERE PICKY. WE HAD $19 BILLION OF INTEREST AND WE BASICALLY CUT PEOPLE BACK TO HAVE ABOUT AND WE SAID NO TO MOST INVESTORS. ON THE DEBT FINANCING, THAT MAKES A LOT OF SENSE AS WELL. IF THE COMPANY IS GROWING IN VALUATIONS YOU ARE BETTER OFF GETTING A BIG LOAN, EVEN IF INTEREST RATES ARE HIGH AND YOU ARE PAYING 10% INTEREST ON THAT. YOU'RE BETTER OFF TAKING THAT
AS A LOAN AND PAYING YOU BACK IN A FEW YEARS BECAUSE YOU PAY THAT BACK IN EQUITY THAN AND PRESUMABLY THE COMPANY HAS DOUBLED IN VALUATION. CAROLINE: $120 BILLION, LOOKING AT IT FROM THAT COUPLE OF YEARS. GIVING US THE TIMESCALE FOR AN IPO AS WELL. ALI GHODSI, ALWAYS GREAT TO HAVE YOU ON. MEANWHILE LET'S TALK ABOUT
CONCERNS OVER AI'S GLOBAL BOOM RECEIVING BIPARTISAN SUPPORT IN CONGRESS. THE REPORT RELEASED TUESDAY, RECOMMENDING GUARDRAILS AND REGULATIONS ON AI, BEING DETAILED IN AN EFFORT TO PROTECT AMERICANS AND MAINTAIN NATIONAL SECURITY. WE SPOKE WITH SENATOR AMY KLOBUCHAR WHO HAD THIS TO SAY ON REGULATING AI. SEN. KLOBUCHAR: I VIEW IS WE SHOULD HAVE RULES OF THE ROAD IN PLACE FOR ALL PLATFORMS. I HAVE BEEN WAY OUT THERE IN TERMS OF GETTING NOT JUST PORNOGRAPHY OFF THE INTERNET BUT OTHER DIFFICULT THINGS THAT ARE ON THERE RIGHT NOW. CAROLINE: LET'S GO BACK TO THOSE
REGULATORY PROPOSALS. BLOOMBERG GOVERNMENT REPORTER JOINS US NOW. IT WAS A COMPREHENSIVE LIST OF RECOMMENDATIONS. WHAT WERE THE KEY TAKEAWAYS FOR YOU? >> CONGRESS RELEASED THIS MAJOR POLICY PAPER THIS WEEK ADDRESSING AI ON VARIOUS AREAS. EDUCATION, HEALTH CARE, FINANCIAL SERVICES, AGRICULTURE, NATIONAL SECURITY BECAUSE THEY ARE TRYING TO EXAMINE WHAT AI'S IMPACTS ARE ON EACH OF THESE AREAS AND HOW CONGRESS SHOULD RESPOND. THE KEY TAKEAWAY IS CONGRESS IS SEEKING TO STRIKE THIS BALANCE.
THEY WANT TO PROMOTE AI BECAUSE THEY BELIEVE IT HAS TREMENDOUS OPPORTUNITY TO UNLEASH HUMAN PRODUCTIVITY AND SOLVE COMPLEX ISSUES. AT THE SAME TIME THEY ARE WELL AWARE OF AI'S RISKS SO THEY WANT TO PROTECT THE AMERICAN PEOPLE AND UPHOLD THEIR CIVIL LIBERTIES. CAROLINE: VERY BRIEFLY, URGENT IS WHAT WE EXPECT TO COME NEXT IN CONGRESS? >> >> THAT IS THE KEY QUESTION. HOW THEY TRANSLATE THESE
RECOMMENDATIONS INTO ACTION? SENATOR AMY KLOBUCHAR IS LOOKING TO COMBAT THIS ISSUE OF DEEPFAKE PORNOGRAPHY WHICH HAS BEEN AROUND FOR A WHILE BUT AI HAS ONLY ACCELERATED THE SPREAD WHICH HAS ALARMED MANY LAWMAKERS. THAT IS AN AREA WHERE CONGRESS IS EAGER TO ACT QUICKLY. ANOTHER AREA WHERE CONGRESS IS EAGER TO ACT IS INTO INCREASE SCIENTIFIC RESEARCH AND ELEMENT AND EXPAND ENERGY INFRASTRUCTURE TO MEET AI DEMANDS, TRAIN THE WORKFORCE AND EVEN CLARIFY EXISTING INTELLECTUAL PROPERTY LAW. THERE ARE MANY KEY RECOMMENDATIONS PROPOSED IN THIS REPORT BUT IT IS JUST A MATTER OF HOW CONGRESS TRANSITIONS INTO TRANSLATING THAT INTO LEGISLATION THAT GET SIGNED INTO LAW. CAROLINE: WE WILL SEE HOW IT HAPPENS IN
THE NEXT ADMINISTRATION. COMING UP, ALL EYES ON MICRON'S EARNINGS AFTER THE CLOSING BELL. WE WILL DISCUSS IT NEXT. CAROLINE: MICRON SAID TO REPORT FISCAL FIRST-QUARTER RESULTS. IAN KING JOINS US.
ALL ABOUT HIGH-BANDWIDTH MEMORY. IAN: OBVIOUSLY THE BIGGEST OR IN CHIPS HAS BEEN NVIDIA. NVIDIA JEEPS NEED A LOT OF MEMORY TO TRAIN THE AIR I MODELS AND IT IS A CASE OF HOW MUCH CAN MICRON SUPPLY NVIDIA WITH AND THIS HAS BEEN A BIG STORY FOR THEM. A LOT OF HIGH-MARGIN BUSINESS
COMING THEIR WAY. ON THE FLIPSIDE THE MARKETS THEY DEPEND ON, THERE'S A LOT OF DEBATE ABOUT HOW WELL THEY ARE DOING. CAROLINE: WE ARE EXPECTING AN 80% INCREASE IN REVENUE. IT HAS BEEN A TURBULENT TIME FOR MICRON STOP. MOST ANALYSTS SAY BUY IT. WILL IT BE ABOUT FORECASTING? IAN: THAT IS EXACTLY IT.
PEOPLE ARE TENTATIVELY POSITIVE IN THEIR CONCERN IS THERE IS STILL A LOT OF MONEY THIS COMPANY GETS COMES FROM THE SMARTPHONE MARKET, COMES FROM THE PC MARKET. THEY ARE NOT THAT GREAT. LET'S NOT GET TOO CARRIED AWAY WITH THIS AI THING UNTIL IT SHOWS IT CAN TAKE OVER COMPLETELY. CAROLINE: MEANWHILE EVERYONE IS DESPERATE
TO GET IN ON STOCKS LIKE BROADCOM EVEN IF THEY'RE JUST GIVING US ADDRESSABLE MARKETS. DO YOU THINK WE WILL GET A SIGNAL OF WHAT THE MARKET WILL BE LIKE FOR MICRON? IAN: THEY HAVE BEEN TALKING ABOUT THIS FOR A LONG TIME AND I AM SURE WILL CONTINUE TOO THAT FROM AND TALK ABOUT HOW THIS IS A DIFFERENT OPPORTUNITY FOR THEM. THEY WILL GIVE US ALL OF THAT. THEY ARE PROBABLY RIGHT ABOUT THAT PARTICULAR AREA. THE KEY IS WHETHER IT IS BIG ENOUGH TO OFFSET WHAT IS GOING ON ELSEWHERE. CAROLINE: IS CHINA IN ISSUE? IAN: CHINA IS ALWAYS AN ISSUE.
THERE IS CONCERN ACCESS TO THAT MARKET BECOMES AN ISSUE AND ALSO LOCAL COMPETITORS, GIVEN THE COMPETITION BETWEEN THE COUNTRIES AND THE BANS AND ALL OF THE TRADE WAR, THAT IS CLEARLY SOMETHING ON PEOPLE'S MINDS. CAROLINE: IAN KING, YOU WILL BE A BUSY MAN LATER. THANK YOU FOR STOPPING IN AHEAD OF THAT SET OF EARNINGS LATER IN THE DAY. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." YOU DO NOT WANT TO FOCUS ON THE FED IN A MINUTE BUT ALSO CHECK OUT OUR PODCAST ON APPLE, SPOTIFY, AND I HEART. THIS IS "BLOOMBERG TECHNOLOGY."
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2024-12-27 21:21
