Nvidia CEO Slams US Chip Rules, Trump’s AI Action Plan | Bloomberg Technology
WITH CAROLINE HYDE AND ED LUDLOW. -- "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. NVIDIA C.E.O. SLAMS U.S. RESTRICTIONS ON A.I. CHIP SALES TO CHINA AND CALLS
THEM A FAILURE. PLUS, PRESIDENT TRUMP VOWS TO MAKE A GOLDEN DOME MISTLE DEFENSE SHIELD FULLY OPERATIONAL BY THE END OF HIS TERM. AND PRESIDENT TRUMP INVITES ELON MUSK TO MEET WITH SOUTH AFRICAN LEADER FOR A STAR LINK POINT OF DISCUSSION.
NVIDIA C.E.O. JENSEN WONG CLAMMING U.S. RESTRICTIONS ON A.I. CHIP SALES TO CHINA CALLING THEM A FAILURE AND URGING THE WHITE HOUSE TO LOWER BARRIERS SAYING THE U.S. SHOULD MAXIMIZE THE SPEED OF
A.I. DIFFUSION BECAUSE IF WE DON’T, THE COMPETITION WILL COME. IAN KING WHO LEADS OUR COVERAGE OF SEMICONDUCTORS IS HERE IN SAN FRANCISCO. WHAT IS JENSEN WONG’S GRIEVANCE AND HOW DOES IT RELATE TO NVIDIA’S BUSINESS? >> CHINA IS THE LARGEST MARKET FOR SEMICONDUCTORS. NVIDIA HAS FACED INCREASING REGULATIONS FROM WASHINGTON WHICH IS RESTRICTING ITS ABILITY TO DO BUSINESS THERE.
THE LATEST OF WHICH WE SAW WAS THE 20 CHIP WHICH YOU WITH NO LONGER SHIP THERE SO IT WOULDN’T TRIGGER THE RESTRICTIONS. SO LIFE IS HARDER AND HARDER FOR JENSEN IN CHINA. ED: SO THAT IT MET PARAMETERS. IT’S KIND OF AN INTERESTING CHANGE OF TIME BECAUSE IT WAS JUST LITERALLY SEVEN DAYS AGO THAT JENSEN WONG WAS WITH THE PRESIDENT IN THE MIDDLE EAST AND AT THAT TIME WHEN THE COMMERCE DEPARTMENT RESCINDED THE RULE, JENSEN WAS QUITE HAPPY ABOUT IT BUT THERE’S A DISTINCTION BETWEEN NVIDIA’S ABILITY TO SELL SEMICONDUCTORS TO THE GULF STATES AND ITS HOPE TO DO BUSINESS DIRECTLY WITH CHINA. IAN: THAT’S RIGHT. HE’S TRYING TO PARLAY THE WISDOM SEE CHINA THE DEFUSION RULE IS GOING RESTRICT AN AREA OF THE WORLD WHERE THERE’S A LOT OF MONEY DEVOTED TO A.I. INFRASTRUCTURE.
THERE’S A VICTORY THAT IT WILL BE PART OF THAT AND HIS ARGUMENT WAS THAT SHOULD BE THE CASE EVERYWHERE AND THAT WOULD GIVE U.S. TECHNOLOGY, THE POSITION THAT IT NEEDS AND THE POSITION THAT IT COULD OCCUPY WHICH IS AT THE CENTER OF THIS REVOLUTION. ED: LAST WEEK THERE, WERE MULTIPLE DEALS INCLUDING READY AND THE GULF STATES. AS PART OF PRESIDENT TRUMP’S VISIT TO THE REGION NETWORKS WEEK THAT’S FOLLOWED, CHINA’S ACCESS TO U.S. TECHNOLOGY VIA THIRD COUNTRIES OR CHANNELS HAS BECOME A CONCERN FOR THE TECHNOLOGY INDUSTRY.
TO DISCUSS, WE’RE JOINED BY SENIOR POLICY ADVISOR FOR A.I. WHO IS WITH THE PRESIDENT THE MIDDLE EAST AND PARTICIPATED THE FORMATION OF THOSE DEALS. WELCOME TO "BLOOMBERG TECHNOLOGY." THANK YOU FOR YOUR TIME AND FOR JOINING US YOU HEARD THAT THE REPORTING OVERNIGHT ABOUT NVIDIA C.E.O.’S COMPLAINT ABOUT THE STATE OF AMERICAN BUSINESS AND BEING ABLE TO DO BUSINESS WITH CHINA.
YOU’RE FAMILIAR WITH THAT STORY. WHAT IS YOUR REACTION TO STAR TO MR. WONG’S COMMENTS AND HIS LINE OF ARGUMENTS? >> THANK YOU FOR HAVING ME ON THE SHOW. I’M A BIG FAN. EXCITED TO FINALLY BE HERE. IT MAY BE USEFUL TO SET COME ON TEXAS ABOUT HOW WE GOT HERE. THE FIRST WEEK OF PRESIDENT TRUMP TAKING OFFICE, HE ISSUED AN EXECUTIVE ORDER WHICH DID AWAY WITH THE OLD BIDEN ORDER IN A.I.
AND PRESIDENT TRUMP’S EXECUTIVE ORDER HAD VERY CLEAR MARCHING ORDERS. IT SAID WE NEED DOMINANCE FOR AMERICAN A.I. AND SINCE THAT FIRST READ, THAT’S WHAT THE HEAD OF OSDB AND MANY OTHERS ARE WORKING TOWARDS AND WHAT YOU SAW LAST WEEK IN THE GULF AS PART OF THIS HISTORIC TRIP WAS A MILESTONE AS PART OF THE DOMINANCE OF AMERICAN A.I. LET ME RECAP WHAT WE ANNOUNCED LAST WEEK. SO UNDER THE BIDEN REGIME, IT WAS PRETTY MUCH IMPOSSIBLE FOR OUR ALLIES TO GET ACCESS TO OUR BEST AND BRIGHTEST SEMICONDUCTOR TECHNOLOGY WHETHER IT BE THERE NVIDIA OR AMD OR A WHOLE SET OF OTHER COMPANIES. WE DIVIDED THE WORLD INTO A
BUNCH OF GPU HAVES AND HAVE-NOTES AND TOLD OUR ALLIES TO GO POUND SAND. AND LAST WEEK’S HISTRIONICS CHANGED ALL THAT. THESE DEALS THAT WE STRUCK THE MIDDLE EAST HAS THREE ESSENTIAL COMPONENTS WHICH ARE VERY IMPORTANT TO UNDERSTAND IT THE FIRST IS THE AMERICA FIRST IN THE SENSE THAT EVERY ONE OF THESE INVESTMENTS IS GOING TO HAVE A MATCHING INVESTMENT AND AMERICAN DEALER CENTERS AND AMERICAN A.I. INFRASTRUCTURE RIGHT HERE IN THE UNITED STATES. SO, IF THERE’S A UAE OR ANY OF
THE COUNTRIES ARE DATA CENTER CAPACITY OVER THERE, AS PART OF THIS FRAMEWORK, WE ARE GOING TO GET EQUAL BUILD-OUT HERE IN THE UNITED STATES. AND THAT IS A VERY, VERY CRITICAL PIECE OF THIS IN TERMS OF HOW THIS DEAL IS AMERICA FIRST. NUMBER TWO. THESE DEALS AND THESE GPU’S ARE PROMINENTLY GOING TO BE RUN BY AMERICAN COMPANIES. SO FOR OUR BUSINESSES, A LOT OF WHOM ARE PROBABLY WATCHING THE TO THE SHOW RIGHT NOW THIS REPRESENTS AN AMAZING EXPANSION OPPORTUNITY, A NEW CHANNEL, IF YOU WILL, FOR A REGION WHICH HAS OBVIOUSLY RESOURCE RICH. HAVE A LOT OF THESE GPU’S ARE
GOING TO BE RUN POSTED CONTROL BY AMERICAN COMPANIES. ED: OK. >> AND THE THIRD PART AND THIS IS THE MOST IMPORTANT PART BECAUSE IAN TOUCHED ON IT IS SECURITY. SO WE TOOK SECURITY INCREDIBLY SERIOUSLY AND THIS AGREEMENT HAVE TWO KEY SECURITY PRODUCTIONS WHICH IS ABOUT HOW DO WE STOP THE PHYSICAL DIVERSION OF THESE GPU’S TO COUNTRIES OF CONCERN AND HOW DO WE MAKE SURE THAT THERE IS NO ILLEGAL REMOTE ACCESS? THAT’S THE DEAL AND THAT’S WHY IT’S HISTORIC. THE REASON WHY IS THE HISTORY
OF SILICON VALLEY TEACH US THAT THE COMPANY WHICH HAS THE BIGGEST ECOSYSTEM, THE BIGGEST NETWORK EFFECT WIND UP WINNING. AND AMERICA A.I., INC. IS NO DIFFERENT. SO WE’RE ESSENTIALLY LOCKING IN THE AMERICAN A.I. STOCK IN THE MIDDLE EAST. AND THAT’S GOING SET US UP FOR YEARS TO COME. ED: WHAT JENSEN WONG IS WITH
ESSENTIALLY CALLING FOR IS TO MAXIMIZE, SPEED UP DIFFUSION AND HIS ARGUMENT IS PREDICATED ON THE IDEA THAT THERE’S A LOT OF ACTIVITY IN CHINA. HE IS CONSISTENTLY SAID THAT MORE THAN 50% OF THE RESEARCH OR A.I. DEVELOPMENT HAS DONE THERE. WHAT IS YOUR CURRENT THINKING
AND WHAT WILL YOU ADVISE THE PRESIDENT ON EITHER ENDING LIMITS TO CHINA’S ABILITY TO BUY U.S. CHIPS OR ADJUSTING THE CURRENT RULES? >> LOOK, WE HAVE HUGE RESPECT FOR JENSEN. I WAS WITH HIM IN THE MIDDLE EAST LAST WEEK. WHEN IT COMES TO -- IT’S
IMPORTANT TO MAKE A DISTINCTION BETWEEN ARE SEMICONDUCTORS BEING USED INSIDE CHINA OR ANYWHERE ELSE? INSIDE CHINA, THERE IS STILL BIPARTISAN AND BROAD CONCERN ABOUT WHAT CAN HAPPEN TO THESE GPU’S WHEN THEY’RE PHYSICALLY INSIDE. THEY CAN BE USE FORWARD BROAD RANGE OF APPLICATIONS AND WE WILL THREAD THE NEEDLE WHEN IT COMES TO EXPORT REGULATION. BUT JENSEN IS RIGHT BECAUSE OUR PREVIOUS EXPORT CONTROLS FAIL IN THE BIDEN REGIME IF THOSE HAD WORKED, WE WOULD NOT BE LOOKING AT THE FIRST WEEK OF PRESIDENT TRUMP BEING IN OFFICE WHICH BASICALLY -- EXPORT CONTROL. THE BIDEN REGIME DOES NOT
ENFORCE EXPORT CONTROLS AND WE ARE TAKING MEASURES TO STOP THAT. BUT IT IS IMPORTANT TO DISTINGUISH GPU’S INSIDE CHINA TO THE REST OF THE WORLD. AND WENT IT WOMANS TO THE -- COMES TO THE REST OF THE WORLD, WE WANT A.I. STACK TO THE MODELS TO EVERYTHING ON TOP. WE WANT OUR COMPANIES, A LOT OF THEM SITTING VERY, VERY CLOSE TO SILICON VALLEY TO GO DEFUSE THAT AND JENSEN AND I AND US ARE IN AGREEMENT. ED: YOU RAISE AN INTERESTING POINT THAT MANY TECHNOLOGISTS OR TECHNOLOGY COMPANY FOUNDERS IN THE BAY AREA WHICH SAY WHY EVEN BOTHER WITH THE INFRASTRUCTURE BUILD-OUT IN THE MIDDLE EAST? WHY NOT RETAIN THE FULL STACK IN CAPACITY HERE IN AMERICA? BOTH NOT FROM A NATIONAL SECURITY POINT OF VIEW BUT JUST THE MARKET HAVE ALL OF THE WORKLOAD AVAILABILITY HERE ON DOMESTIC SOIL.
>> IF WE HAVE A LEAD, WE ARE GOING TO CONTINUE HAVING A LEAD WE’RE GOING FULL THROTTLE IN MAKING SURE THAT WE HAVE ENOUGH CAPACITY. WHAT DO YOU THINK WINDS UP HAPPEN IF WE SAY WE CAN DO BUSINESS WITH YOU. -- WE CAN’T DO BUSINESS WITH YOU. GO LOOK ELSEWHERE. WE WOULD MUCH, MUCH RATHER HAVE THEM LOCKED IN AND WHATEVER THE PRESIDENT TO BE FOUNDERS AND C.E.O.’S WATCHING THIS IS AN OPPORTUNITY FOR PARTNERSHIPS,
OPPORTUNITY TO MARKET EXPANSION RATHER THAN A MARKET WHICH IS LOCK TO AN AD VERSATILITY. ED: THERE IS A NEW A.I. POLICY DOCUMENT. COULD YOU GIVE ANY PREVIEW FOR OUR AUDIENCE OF WHAT YOU, THE PRESIDENT, THERE ASK CONGRESS TO LEGISLATE AND WHAT POLICY IS COMING DOWN THE PIKE? >> WE’RE WORKING ON THIS. I DON’T WANT TO START TO GIVE AWAY WHAT IS GOING TO BE A ANNOUNCING IN A MONTH AND A HALF, BUT -- ED: BUT THE ROLE OF PRINCIPLES, PLEASE. >> I WOULD SAY A FEW THINGS. I THINK MICHAEL TALKED ABOUT PROMOTE AND PROTECT. HERE’S WHAT WE WOULD SAY.
FIRST, IT’S CRITICAL TO HAVE INNOVATION AND DOMINATION WHEN IT COMES TO TECHNOLOGY. AND WHAT WE SAW IN THE BIDEN REGIME WAS AN INCREDIBLY COMPLICATED EXECUTIVE ORDER AND A PATCHWORK OF STATE LAWS. WE NEED LESS OF THAT. WE NEED MORE OF ENTREPRENEURS LIKE THE ONES WHO ARE ON YOUR SHOW ARE WATCHING NOW WE NEED THEM TO GO BUILD. AND THAT’S WHAT WE NEED. AND THAT’S PROBABLY GOING TO BE
A BIG THING. SECOND, BUILD, BABY, BUILD. WE NEED INFRASTRUCTURE. WE NEED TO MAKE SURE WE GET BUREAUCRACY AND RED TAPE OUT OF THE WAY AND MAKING SURE THIS INFRASTRUCTURE IS BUILT OUT AS QUICKLY AS WE CAN. AND THE THIRD THING I WOULD SAY IS A.I. DIPLOMACY. WE NEED OUR ALLIES WITH THE RESOURCES WHO WANT TO WORK WITH US. WE WANT THEM TO PICK THE AMERICAN STYLE AND NOT BE
FRUSTRATED AND WAIT FOR SOMEBODY ELSE TO BUILD A COMPETING SOLUTION SO THOSE WOULD BE THREE PREVIEWS OF WHAT’S GOING TO BE IN THE A.I. ACTION PLAN. ED: THERE’S A LOT OF INTEREST IN YOUR DAY-TO-DAY WORK WITH THE ADMINISTRATION. THERE ARE A NUMBER OF NAMES FROM SILICON VALLEY, SO TO SPEAK, YOU, DAVID SACKS BUT ALSO ELON MUSK. IS ELON BEEN ENGAGED WITH YOU AND HAD A SEAT AT THE TABLE SPECIFICALLY WITH THE PRESIDENT’S CONSIDERATIONS AROUND A.I.? YESTERDAY I WAS AT DELL’S TECHNOLOGIES WORLD TALKING ABOUT THE RAPID BUILD OUTOF COLOSSUS AND I WONDER HOW MUCH INFLUENCE HE HAS ON YOUR THINKING AND ON THE PRESIDENT’S THINKING. >> LOOK, I MEAN, ELON IS A LONG-TERM FRIEND OF MINE, OF DAVID SACKS, OF THE PRESIDENT AND HE’S ONE OF THE GREATEST ENTREPRENEURS OF OUR ERA IF HE’S HANGING AROUND THE WHITE HOUSE, WE WOULD BE STUPID TO NOT SEEK OUT HIS ADVICE.
HE’S DEFINITELY HAD USEFUL INPUT BUT AT THE END OF THE DAY THIS COMES FROM THE PRESIDENT HIMSELF, YOU KNOW? THE SECOND DAY IN OFFICE, HIS EXECUTIVE ORDER SAID WE NEED A.I. DOMINANCE AND THERE’S A LOT OF PEOPLE, DAVID SACKS, HOWARD LUTNICK WHO WAS INSTRUMENTAL IN SEEING THIS DEAL HAPPEN WHO WITH WORKING TOWARDS THIS GOAL. >> THE WHITE HOUSE SENIOR POLICY ADVISOR FOR WHITE HOUSE. THANK YOU FOR JOINING US ON "BLOOMBERG TECHNOLOGY."
PRESIDENT TRUMP FAST TRACKS HIS GOLDEN DOME DEFENSE PLAN. WE’RE GOING TO DISCUSS THAT MORE. AND SOME BREAKING NEWS. BITCOIN HAS HIT A FRESH RECORD-HIGH LARGELY DRIVEN BY OPTIMISM AROUND COMING U.S. REGULATIONS. BITCOIN, 108 U.S. DOLLARS RIGHT NOW. THIS IS "BLOOMBERG TECHNOLOGY."
ED: I WANT TO BRING IN BLOOMBERG’S MICHAEL SHEPHERD IN D.C. WHAT ARE THE DETAILS OF THE PRESIDENT’S PLEDGE? MICHAEL: IT WAS A BIT SHORT. HE DETAILED THE COST OF THIS SYSTEM SCHWOULD BE SPACE BASED AND DESIGNED TO PROTECT A HUGE AREA OF THE UNITED STATES TERRITORY FROM ALASKA TO FLORIDA TO HAWAII FROM BALLISTIC AND HYPERSONIC MISSILE ATTACKS HE GAVE THAT THREE-YEAR TIMELINE THAT YOU OUTLINED.
MANY BELIEVE THAT TO BE OPTIMISTIC. HIS PRICE TAG FOR IT IS $175 BILLION OVER THE NEXT SEVERAL YEARS. BUT THE CONGRESSIONAL BUDGET OFFICE HAS A DIFFERENT VIEW ON THE COST. IT SEES IT GOING UP AS MUCH AS $542 BILLION AND TAKING AS MANY AS 20 YEARS TO DEPLOY. AND THERE ARE A LOT OF UNCERTAINTIES ABOUT THIS
TECHNOLOGY, ED, INCLUDING HOW IT WOULD GET DEPLOYED AND WHO WOULD BE IN THE LEAD TO DO IT WE SEE OF THE BIGGEST NAMES THAT WE KNOW FROM AMERICAN DEFENSE INCLUDING RAYTHEON AND LOCKHEED-MARTIN AND L3 HARRIS GETTING NAME CHECKED AT THE WHITE HOUSE WHERE PARTS OF THIS WAS UNVEILED WITH HEGSETH HEGSETH BUT THERE ARE OTHER -- PETE HEGSETH AND THERE IS ELON MUSK. AND THEY’VE DONE A SIGNIFICANT AMOUNT OF WORK FOR THE INTELLIGENT SECTOR HERE IN WASHINGTON AS WELL. THEY WOULD BE A LIKELY CONTENDER BUT THERE’S A LOT THAT WE DON’T KNOW ABOUT THIS. AND THE THREE-YEAR TIMELINE
ACCORDING TO MANY EXPERTS IS REALLY OPTIMISTIC. REMEMBER, THIS IS A CAMPAIGN PLEDGE THAT HE MADE MUCH IN THE SAME THEY WAY THAT HE IS PROMMING THIS BIG -- PROMISING THIS BIG BEAUTIFUL TAX CUT AND IT IS A PILLAR OF WHAT HE HAD PROMISED TO VOTERS. ED: PRESIDENT TRUMP IS MEETING WITH SOUTH AFRICAN LEADER WITH ELON MUSK ALSO SET TO JOIN. BLOOMBERG’S REPORTED THAT THE SOUTH AFTER SCAN GOVERNMENT IS SET TO ORNERER MUSK A WORK-AROUND OF BLACK OWNERSHIP LAWS ALLOWING HIS STARLIN SERVICE TO OPERATE THE COUNTRY. HE’S BEEN A STAUNCH CRITIC OF THE GOVERNMENT ON WHAT HE CALLS RACIST LAWS. HERE’S WHAT MUSK TOLD BLOOMBERG
YESTERDAY AT THE QATAR ECONOMIC FORUM. >> THERE SHOULD BE NO PREFERENCE GIVEN SO ONE OR THE OTHER WHEREAS THERE ARE NOW 140 LAWS IN SOUTH AFRICA THAT BASICALLY -- GIVE STRONG PREFERENCES TO IF YOU’RE BLACK SOUTH AFTER SCAN AND NOT OTHERWISE. I WAS BORN IN SOUTH AFRICA BUT CANNOT GET A LICENSE TO OPERATE IN STAR LINK BECAUSE I’M NOT BLACK. ED: THE CRUX OF THAT SOUND-BITE WAS TRUMP’S RELATIONSHIP WITH MUSK BECAUSE THOSE COUNTRIES WANT TO GET CLOSE TO PRESIDENT TRUMP AND THIS ADMINISTRATION. >> OUTSIDE OF ME INFLUENCE OF DONALD TRUMP AND AN EFFORT TO MAKE THE WHITE HOUSE HAPPY, YOU KNOW, STARLINK, OF COURSE, OFFERS A COMPELLING SERVICE. WE’VE SEEN A LOT OF COUNTRIES
AND PEOPLE, ESPECIALLY IF THEY CAN AFFORD IT EMBRACE THIS. BUT THIS IS CLEARLY A CASE WHERE ELON MUSK IS BENEFITING FROM HIS CONNECTIONS WITH THE WHITE HOUSE. WE’RE SEEING THIS NOT JUST IN-OUT SCARF BUT LOTS OF COUNTRIES CHANGING THE RULE, ALLOWING THIS COUNTRY TO OPERATE, SATELLITE TELECOM IN PARTICULAR IS A HEAVILY REGULATED FIELD, NOT JUST IN SOUTH SCARF BUT AROUND THE WORLD. AND WHAT’S INTERESTING ABOUT THIS MEETING TODAY, I MEAN, BESIDES THE DYNAMIC WITH MUSK AS A CRITIC IS JUST THAT MUSK HAD SAID I’M BACKING AWAY FROM THE WHITE HOUSE. HE SAID HE’S SPENDING LESS TIME THERE.
HE’S MAYBE GOING TO DONATE LESS MONEY, ACCORDING TO HIS COMMENTS YESTERDAY. ON THE OTHER HAND, HERE HE IS AT THE WHITE HOUSE WITH DONALD TRUMP ALSO YESTERDAY, HE SAID HE WAS GOING TO SPEND TWO DAYS MENTIONING A CABINET MEETING AS WELL. SO, YOU KNOW, ON ONE HAND HE MAY BE MAKING NOISES ABOUT BACKING AWAY BUT IT SURE DOESN’T SEEM LIKE HE’S DOING A TON OF THAT RIGHT NOW. ED: BLOOMBERG’S MAX CHAFF KIN, THANK YOU VERY MUCH. GOOGLE IS MAKING MORE A.I. TOOLS AVAILABLE TO USERS. WE’LL HEAR ABOUT THE CAPABILITIES OF ONE PROTOTYPE.
THAT’S NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ ED: GOOGLE IS ROLLING OUT ITS EXPERIMENT. A.I. AGENT PROJECT MARINER TO SUBSCRIBERS IN THE UNITED STATES. RESEARCH PROTOTYPE CAN BROWSE THE INTERNET AND USE WEBSITES. JACKIE HEARD MORE ABOUT IT FROM THE DIRECTOR OF PRODUCT MANAGEMENT AT BOOING LAB. >> PROJECT MARINER IS A RESEARCH PROTOTYPE EXPLORING THE HUMAN INTERACTION AND WE LAUNCHED A WEB APP THAT ALLOWS ANYBODY TO GIVE PROJECT MARINER A TASK AND WE CAN HANDLE UP TO 10 TASKS ALLOWING PEOPLE TO MULTI-TASK.
>> WE TALK ABOUT HOW ARTIFICIAL INTELLIGENCE CAN BOOST PRODUCTIVITY. I’M CURIOUS ABOUT HOW THIS MOVES FROM THE INNOVATION LAB TO PRIMETIME, ESPECIALLY BECAUSE IF YOU’RE ASKING AN A.I. TO DO SOMETHING, YOU REALLY WANT TO MAKE SURE IT GETS IT RIGHT. >> ABSOLUTELY. SO I THINK THAT’S PART OF THE POWER OF LAUNCHING PROJECT MARINER AS THIS RESEARCH PROTOTYPE AS AN EXPERIMENT RIGHT NOW.
WE ARE PUTTING USERS AT THE FOREFRONT OF BEING ABLE TO TRY THIS OUT FIRSTHAND. WE’RE PAIRING NICELY THE AVAILABILITY FOR PROJECT MARINER TO MULTITASK BUT A USE KERR WATCH EVERYTHING THAT IT’S DOING. IT WILL GET A LIVE HUE VIEW AND THEY CAN PAUSE THE AGENT FROM DOING THE TASK AND RESUME IT AT A LATER POINT IN TIME. OR THEY COULD CHOOSE TO TRUST PROJECT MARINER GIVING A SIMPLER TASK AND GO BACK TO WHAT IT IS THAT IT’S DOING. SO WE BLEND USER CONTROL AND PUSHING FORWARD AND LAUNCHING IT AS THAT EARLY EXPERIMENT. LETS US BRING IT TO PEOPLE. ED: LOOK AT SHARES OF GOOGLE, BY THE WAY. THIS IS EASILY THE BEST
PERFORMER ON THE NASDAQ 100, OUTPERFORMING THE OTHER MAG-7 NAMES AND IT IS ALL REACTION TO WHAT WAS HAPPENING AT GOOGLE IO ON TRACK FOR ITS BIGGEST JUMPS SINCE EARLY MARCH. ANALYSTS ARE VERY POSITIVE ABOUT WHAT THEY HEARD AND THEY NOTE THAT THE COMPANY’S UPDATE HAVE EASED CONCERNS ABOUT ITS ABILITY TO WIN IN THIS CROWDED A.I. SPACE. WE WILL CONTINUE TO TALK ABOUT GOOGLE THROUGHOUT THE HOUR AND WHAT WE LEARNED OUT OF GOOGLE IO. WE SPEAK WITH GOOGLE C.E.O.
AS THE COMPANY SEES THE SECOND PHASE FOR ITS TEXAS A.I. DATA CENTERS. FROM SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY."
ED LUDLOW HERE IN SAN FRANCISCO. IF YOU’RE JUST JOINING US, YOU’VE LOOKED TO THE TECHNOLOGY SECTOR FOR THE FIRST TIME, THINGS HAVE REALLY CHANGED SINCE WE CAME ON AIR WE’RE NOW MODESTLY HIGHER ON THE NASDAQ 100. .4. BUT A BIG PART OF THAT IS THE SURGE IN ALPHABET SHARES THAT WE JUST OUTLINED. REALLY POSITIVE REACTION TO GOOGLE IO. ANALYSTS LIKE WHAT THEY SEE AND
GOOGLE’S ABILITY IN THE A.I. MARKET. SEMICONDUCTORS OUTPERFORMING. NVIDIA, SIMILAR STORY. UNDER A LITTLE PRESSURE EARLIER IN THE DAVE IT’S REALLY TURN THE CORNER AND THAT’S BOOSTING BOTH OF THOSE INDEXES. AMAZON IS UNDER PRESSURE. IT IS ITS ANNUAL SHAREHOLDER
MEETING. AND PAOLO AALTO NETWORK IS AT ITS LOWEST LEVEL FOLLOWING EARNINGS. SO DIGESTING WHAT THEY HAVE TO SAY. LET’S TALK ABOUT THE TECH SECTOR. MARTIN NORTON AT EMPIRE JOINS
US NOW. I’M TRYING TO FIND A COMMON THREAD OF WHAT’S GOING ON. A LOT OF THE HEADLINES ON THE TERMINAL WERE ABOUT ECONOMICS AND CONCERNS ABOUT GROWTH. THERE’S BEEN A LOT OF FED SPEAK. AND THEN TECH BRINGS US BACK, BABY. GOOGLE IO, A DEVELOPER’S CONFERENCE HEADLINES. ALPHABET UP 5%. WHAT IS IT THAT YOU’RE PAYING
ATTENTION TO RIGHT NOW? >> I THINK YOU’RE MAKING AN INTERESTING POINT BECAUSE NOT JUST THIS MORNING, BUT THE PAST FEW WEEKS, THE PAST FEW MONTHS, MAYBE YOU COULD SAY THE ENTIRE 2025 YEAR SO FAR HAS BEEN FOCUSED ON NEWS OUT OF WASHINGTON AND THAT FISCAL POLICY AND MACRO ECONOMIC DYNAMIC. WHAT WE’RE SEEING FOR THE MOMENT IS A RETURN BACK THE FUNDAMENTALS, THE INDIVIDUAL STORY AND THE A.I. NARRATIVE WHICH HAS BEEN LOST FOR A WHILE.
AND AS WE DEALT WITH DEEPSEEK AND AS WE TURN TO MACRO ECONOMICS. WHAT WE’RE SEEING HERE IS A MOVE BACK THE INDIVIDUAL COMPANIES A BIT. ED: AND THEN IT REMINDS ME OF ALL OF THE FOCUS WE’VE HAD ON MAG-7. PERHAPS MORE TO THE DOWNSIDE BUT IF YOU HAVE A STOCK LIKE ALPHABET AND IT IS UP THAT MUCH, JUST PURELY FROM A POINTS PERSPECTIVE, IT’S GIVING US A LITTLE LIFT THIS MORNING.
THE MOMENT IN TIME -- YEAH, SORRY, I DON’T MEAN TO INTERRUPT. IT WAS A MOMENT IN TIME WHERE INVESTORS WANTED TO SAY WHAT IS IT YOU’RE GOING TO DO IN A.I. AND THEY GAVE ENOUGH EVIDENCE OVER A MOUNTAIN VIEW YESTERDAY. >> THAT’S THE CASE AND WHAT’S ALSO INTERESTING IS WHEN WE LOOK BACK TO EARLIER IN THE YEAR, AND REALLY, UP UNTIL THE PRESENT MOMENT, A LOT OF THE FOCUS HAS BEEN ON THE SPEND FOR A.I. AND QUESTIONS ON WHETHER THAT’S
REASONABLE. AND AT LEAST WITH THE MOST RECENT NEWS AND I THINK THIS HAS BEEN KIND OF FILTERING OUT OVER THE COURSE OF THE YEAR, WE’RE SEEING A BIT MORE OF THAT USE CASE AND THAT GIVES KIND OF A SHINIER TINGE TO WHAT WE CAN THINK ABOUT WHEN IT COMES TO A.I. SO IT’S SHIFTING THE NARRATIVE A BIT. WHETHER THIS IS LONG-LASTING, THERE’S A LOT MORE TO SEE ON THAT FRONT BUT IT’S SHIFTING THE NARRATIVE TO THE USE CASE RATHER THAN JUST THE SPEND ON A.I. ON THE CAPX FUND. ED: LIBERATION DAY. FEELS LIKE IT’S THE REARVIEW
MIRROR A BIT. IF THERE’S ONE THING ABOUT THIS ADMINISTRATION AND TRADE, IT’S THAT ANYTHING CAN HAPPEN. IS THE MARKET STILL BRACED FOR THAT? IS IT CHECKING OVER ITS SHOULDER FROM THE TECH SECTOR? >> I THINK LIBERATION DAY, THE SEISMIC CHANGE IN TRADE WHERE WE DON’T EVEN FULLY KNOW WHERE IT LANDS QUITE YET. IT FEELS LIKE TO YOUR POINT, A BLIP ON THE RADAR. AND MARKETS HAVE RALLIED REALLY POWERFULLY. THAT IS AT THE BROAD MARKET LEVEL AND THAT’S ALSO WITHIN TECHNOLOGY. IF WE’RE LOOKING AT TECHNOLOGY
AS A SECTOR ON EVALUATION BASIS RELATIVE TO ITS HISTORY, IT’S BACK IN THOSE UPPER ECHELON WHERE THE VALUATIONS ARE REALLY STRETCHED. SO THAT GIVES ME SOME CONCERN THAT THERE IS A BIT OF COMPLACENCY OR AS WE’RE THINKING ABOUT THE FUTURE, THE RANGE OF OUTCOMES. PEOPLE ARE REALLY FOCUSED ON THE POSITIVE AND LESS FOCUSED ON WHAT COULD GO WRONG. THAT IS THE CONCERN BUT ED, A REALLY IMPORTANT POINT HERE IS THAT THE MAG-7 ACTUALLY HAVE LOOKED CHEAPER. THEY’VE BEEN HARDER HIT OVER
THE COURSE TO HAVE 2025 AND THAT’S BROUGHT THEIR VALUATIONS DOWN. SO MAYBE THERE’S A BIT MORE MARGIN OF SAFETY IN THOSE MEGA CAP TECH NAMES. ED: THAT TAKES US TO A BROADER CONVERSATION ABOUT VALUATIONS ON ANY GIVEN DAY, YOU CAN FORGET THAT THE TECHNOLOGY SECTOR IS MORE THAN THE MAG-7. IS THERE ANYWHERE THAT YOU’RE SUPER CAUTIOUS OUTSIDE OF THAT BUCKET ON MEGA CAP NAMES? >> IF YOU’RE BREAKING DOWN THE TECHNOLOGY SECTOR, MOST OF THE INDUSTRIES LOOK A BIT EXPENSIVE AND IT’S REALLY THAT. AND IT’S SUCH A STRANGE WORLD TO BE TALKING ABOUT THE MAG-7 AS THE VALUATION OPPORTUNITY WITHIN TECH, WITHIN THE MARKET BUT THAT’S WHERE OUR ANALYSIS POINTING US TODAY. ED: MARTA, I KNOW THAT THIS ISN’T AN ENTIRELY FAIR QUESTION BUT IF YOU HAD A CRYSTAL BALL, WHAT HAPPENS IN THE SECOND HALF OF THIS YEAR FOR THE TECHNOLOGY SECTOR? >> A BIG PART OF WHAT WE’RE GOING TO SEE IS MAYBE NOT RESOLUTION, BUT ADDITIONAL CLARITY ON WHAT’S HAPPENING ON THE TARIFF FRONT FOR TECHNOLOGY. WHAT HAPPENS ON THE REGULATION
FRONT, WHAT HAPPENS IN TERMS OF AS YOU WERE RECENTLY CHATTING ABOUT, THE ADMINISTRATION’S FOCUS ON BUILDING OUT KIND OF THE U.S. AS AN A.I. SUPERPOWER. I THINK ALL OF THOSE DIFFERENT DYNAMICS ARE GOING TO HAVE A ROLE TO PLAY IN TERMS OF HOW TECHNOLOGY PERFORMS OVER THE COURSE OF 2025. AND WHAT WE HAVE TO ASK YOURSELF AS INVESTORS IS ONE OF THOSE OUTCOMES ARE EMBEDDED IN THE PRICE AND THAT’S THE KIND OF CHEMISTRY THAT WE HAVE TO DO AS WE LOOK THEY DIFFERENT MOVERS COMING OVER THE COURSE OF 2025. ED: RIGHT. MARTA, A BIG MOMENT THE SHOW EARLIER. BITCOIN AT ALMOST 109 PER TOKEN. YOUR INTEREST THERE?
>> IT’S TOUGH WITH THIS. IT’S REAL -- I MEAN, WHAT I REALLY STRUGGLE WITH IS WHERE IS THE FAIR VALUE HERE AND THAT’S REALLY HARD TO DETERMINE. SO YES, WE’RE GETTING A LOT OF NEWS ON THE REGULATION FRONT THAT’S GOING TO CHARGE BITCOIN, THAT’S GOING TO CHARGE CRYPTO BUT WHAT WE HAVE TO ASK OURSELF IS CAN WE PREDICT WHAT’S COMING NEXT AND THAT’S THE HARDER QUESTION. ED: GREAT TO AND YOU BACK HERE ON
"BLOOMBERG TECHNOLOGY." THANK YOU VERY MUCH. NOW, CRUSOE BLEW OUT CAPITAL AND PRIMARY DIGITAL INFRASTRUCTURE ANNOUNCED FUNDING FOR THE SECOND PHASE WITH A.I. DATA CENTERS JOINT VENTURE RAISING $15 BILLION. FOR MORE, CHASE LOCHMILLER, CRUSOE C.E.O. JOINS US HERE IN SAN FRANCISCO. ACTUALLY, YOU FEATURED IN THE SHOW 24 HOURS AGO BECAUSE EMILY CHANG WENT TO THE TEXAS STARGATE AND WENT TO THE CONSTRUCTION AND YOUR INVOLVEMENT THERE. VERY SIMPLY, EXPLAIN YOUR ROLE AND THIS JOINT INITIATIVE THAT HAS RAISED THIS FUNDING AND WHERE THE FUNDING GOES.
CHASE: THE ANNOUNCEMENT WAS $15 BILLION FOR DEVELOPING A VERY LARGE PURPOSE BUILT PURPOSE DATA CENTER. THESE DATA CENTERS WITH CHIPS THAT CAN MANUFACTURE INTELLIGENCE. SO, OUR ROLE IN ALL OF THIS IS, YOU KNOW, WE ARE BASICALLY -- WE DEVELOPED THE DATA CENTER ITSELF.
WE’RE IN CHARGE OF BUILDING IT AND WE WILL OWN IT IN A JOINT VENTURE PARTNERSHIP WITH BLUE OWL. ED: DATA CENTERS TO SOME ARE LARGE BUILDINGS WITH CONCRETE FOUNDATION AND METAL ON THE OUTSIDE AND NO ONE REALLY KNOWS WHAT’S INSIDE OF THEM. THESE ARE LIKE MASSIVE INFRASTRUCTURE PROJECTS WHERE IT’S NOT JUST THE COMPUTER INSIDE, WHICH PART ARE YOU MORE RESPONSIBLE FOR? CHASE: SO CRUSOE IS A BUSINESS -- AS A BUSINESS WILL HANDLE THE ENTIRE STACK. FOR THIS SPECIFIC PROJECT,
WE’RE FOCUSED ON THE DESIGN, BUILD, CONSTRUCTION OF THIS LARGE SCALE DATA CENTER. WE -- I THINK IT’S WORTH APPRECIATING THAT DATA CENTERS AS A PRODUCT HAVE CHANGED VERY DRAMATICALLY IN LINE WITH THE CHANGES IN COMPUTER ARCHITECTURES OVER THE LAST 20 YEARS. SO IF YOU LOOK 20 YEARS AGO, IT MIGHT HAVE BEEN TWO KILOWATTS OR FOUR, TODAY FOR THE CONFIGURATION, WE’RE BUDGING 130 KILOWATTS PER RACK. AND IF YOU LOOK FORWARD TO THE NEXT GENERATION, WHAT JENSEN ANNOUNCED AT GTC WITH THE ULTRA, THOSE ARE 600 KILOWATTS PER ACT. MORE THAN 100X AND THAT SHIFTS THE WHAT YOU’RE BUILDING IN TERMS OF WHEN YOU’RE THINKING ABOUT BUILDING AND CONSTRUCTING DATA CENTER. THE OTHER PIECE I’LL HIGHLIGHT IS THAT THESE DATA CENTERS ARE NO LONGER A BUNCH OF INDIVIDUAL COMPUTERS ALL MUGGED IN, OPERATING INDEPENDENT WORKFLOWS AND TASKS. YOU REALLY SHOULD BE THINK
ABOUT THE DATA CENTER IS THE COMPUTER. ALL OF THESE -- ED: A LARGER SCALE. CHASE: EXACTLY. INTERCONNECTED ON THE SAME SO THAT THEY CAN BE SHARING INFORMATION TOGETHER. ED: IN AGGREGATE RIGHT, WE’RE TALKING ABOUT 10,000 MEGAWATT FACILITIES PLUS OR MINUS UP TO THE FUTURE GENERATION MAYBE 20,000 MEGA-CAT -- MEGAWATT. THEY RAISED CAPITAL
EXPENDITURES LIKE META BUT THERE’S REAL EVIDENCE THAT WASN’T A BIGGER COMMITMENT. IT’S THE COST OF BUILDING A DATA CENTER IS HIGHER. DO YOU SEE THAT IN YOUR ACTIVITIES? CHASE: THE COST OF BUILDING IT IS HIGHER BECAUSE -- ED: MATERIALS, I MEAN, LABOR. CHASE: MATERIALS AND LABOR -- LABOR’S THE BIGGEST EXPENSE HERE AND WHAT WE’RE SEEING BECAUSE THEY’RE SUCH A BIG BOOM, THERE’S A SHORTAGE OF LABOR. THERE’S A SHORTAGE OF
CONSTRUCTION WORKERS. LAST SHORTAGE OF ELECTRICIANS THAT CAN REALLY MAKE THESE FACILITIES HAPPEN AT SCALE. ED: CRYSTAL BALL FOR YOU AS WELL. YOU PUT CRUSOE ON THE MAP HERE BUT THIS IS ONE PROJECT. ARE WE SEEING YEAR-ON-YEAR ON
YEAR ALL THE WAY THROUGH THE 20230 EXPENDITURE INCREASE, MORE DATA CENTERS? THERE’S NO PLATEAUING OF THE ACTIVITY? CHASE: YOU KNOW, I CAN SPEAK FROM WHAT WE’RE SEEING, WHICH IS NO SLOW DOWN. WE ARE SEEING INCREDIBLE DEMAND FROM ACROSS A DIVERSE SET OF CUSTOMERS THAT WANT TO BUILD SCALED INFRASTRUCTURE TO SUPPORT THEIR OWN A.I. COMPUTING NEEDS AND WE SEE THAT SCALING, YOU KNOW, BY ORDERS OF MAGNITUDE.
SO FROM OUR PERSPECTIVE, YOU KNOW, THIS IS THE LARGEST INFRASTRUCTURE INVESTMENT IN HUMAN HISTORY AND IT’S NOT SLOWING DOWN. ED: HOW BIG OF A CHALLENGE IS SECURING ENERGY AND ALSO THE UTILITY STRUCTURE TO SUPPORT YOUR SITES? CHASE: SO ENERGY IS THE CORE OF THIS. WE’VE NEVER SEEN DATA CENTER INFRASTRUCTURE BUILT LIKE THIS. IF YOU LOOK AT PHIL JACKSON VIRGINIA, APART FROM A SHARE THAT WAS FOUR AND A HALF GIGAWATTS OF TOTAL CAPACITY IN NORTHERN VIRGINIA. WHAT WE’RE BUILDING IN ABILENE,
TEXAS IS 1.2 GIGAWATTS. IT’S A CARTER QUARTER OF THE SIZE THAT’S BEEN BUILT THE CENTER OF DATA CENTER MECCA IN NORTHERN VIRGINIA. SO, AND NOW WE’RE LOOKING AT FACILITIES THAT ARE FIVE TIMES BIGGER, RIGHT? ENERGY AND THE AMOUNT OF ENERGY REQUIRED TO SUPPORT A.I. INFRASTRUCTURE AT SCALE IS MIND-BOGGLING.
SO IT IS OUR CRITICAL COMPONENT TO SOLVING AND I KNOW WE’RE FOCUSED ON DOING IT HERE IN AMERICA AND EXPANDING ALSO INTERNATIONALLY. ED: CRUSOE CEO CHASE LOCHMILLER, THANK YOU. CALLS SHARES AFTER CITI RAISED ITS PRICE TO 94 FROM $43, KEEPING A NEUTRAL RATING. THE FIRST QUARTER WAS "OUT OF THE GATE THOUGH THE REST OF THE RESULTS WERE MIXED." THE EARNINGS REPORTS REFOCUSES
COREWEAVE’S DATA AFTER THAT EXPANSION DEAL BUT MORE PROGRESS ON PROFITABILITY IS TO BE SEEN. SOMETHING WE’VE DISCUSSED WITH THE COMPANY THIS WEEK. COMING UP, THESE SMART GLASSES ARE X REAL TO GOOGLE’S ANSWER TO RAY-BAN’S SMART GLASSES. WE’RE GOING TO HEAR FROM THE C.E.O. NEXT. THIS IS "BLOOMBERG TECHNOLOGY." IT ONLINE, ON THE TERMINAL, ON APPLE AND I HEART. THIS IS "BLOOMBERG TECHNOLOGY."
GOOGLE’S HOST OF A.I. ANNOUNCEMENTS YESTERDAY INCLUDED PLANS FOR AUGMENTED REALITY GLASSES THAT COULD RIFLE META’S -- RIVAL META’S UPCOMING RIVAL PARTNERING WITH X REASON REAL WHICH MAKES POPULAR A.I. SUNGLASSES AND THIS NEW PARTNERSHIP WILL BE THE FIRST EXTENDED REALITY GLASSES TO RUN GOOGLE’S ANDROID XR OPERATING SYSTEM. LET’S BRING IN THE C.E.O. AND FOUNDER OF GOOGLE. >> THANK YOU FOR HAVING ME. ED: I DON’T KNOW THAT I SAW THIS
ONE COMING. THIS IS A VERY BIG DEAL FOR X REAL WITH A BIG PARTNER. WHAT WAS THE LODGE BEHIND DOING IT? >> IT’S A BIG DEAL FOR AR AND ANDROID. FINALLY, I FEEL LIKE OTHER PIECES ARE READY.
THE PLATFORM IS READY. THE ECOSYSTEM IS THERE AND MOST WILL NOTERLY, GEMINI. A.I. IS GOING TO MAKE THE WHOLE XR EXPERIENCE DIFFERENT. ED:
HOW REAL IS THIS? TERMS OF WHEN A CONSUMER OR A DEVELOPER CAN GET THAYER HANDS ON THE HARDWARE? >> AS SOON AS THE END OF THIS YEAR. ED: IS THAT IT? >> NO. THIS IS THE CURRENT GENERATION. ED: THAT’S A SET OF GLASSES ON OUR DESK. >> FOR THE CONSUMER, IT’S GOING TO BE EARLY 2026. ED: HAS THE RELATIONSHIP WITH GOOGLE ALLOW YOU TO ACCELERATE YOUR GO-TO MARKET? >> ABSOLUTELY. THIS IS THE FIRST TIME.
YOU’RE GOING TO HAVE THE FIRST SPATIAL COMPUTING EVEN HAVE THIS END-TO-END EXPERIENCE. AND YOU’RE GOING TO TRY OUT THE FIRST PARTY GOOGLE APPLICATIONS ON XR AS WELL. ED: META. I AM A RAY-BAN METAS USER REGULARLY. THAT IS NOT A V AR SET OF GLASSES. THEY’RE SMART GLASSES. I SPENT A BIT OF TIME WITH PROJECT ORION. WHY OR WHY NOT IS YOUR OFFERING GOING TO COMPETE WITH THAT? IS IT SIMILAR? WHY IS IT DISSIMILAR? >> OK, I WON’T SAY IT’S A COMPETITION.
BUT I REALLY ENJOYED WORKING WITH GOOGLE BECAUSE I BELIEVE THE LAST, YOU KNOW, MISSING PIECES WILL BE ECOSYSTEM AND GOOGLE ATMOSPHERES VERY OPEN DEVELOPER FRIENDLY ECOSYSTEM. AND THE THEORY I LIKE ABOUT XR IS IF YOU ALREADY DEVELOPMENT HAND ANDROID. ED: HOW SIMPLE WOULD WE MAKE THIS FOR THE "BLOOMBERG TECHNOLOGY" AUDIENCE? ANDROID FROM A SMARTPHONE PERSPECTIVE OR IN CARS, THE OS IS EVERYWHERE AROUND THE WORLD. SO YOU’RE BASICALLY ARGUING THAT I’M GOING TO MAKE THE ANDROID SMART GLASS SIMPLE. >> THAT’S RIGHT. IF YOU LOOK AT THE SUCCESS OF ANDROID, GOOGLE JUST WANT TO REPEAT THAT FOR XR.
AND, YOU KNOW, THIS TIME, THEY RECOGNIZE THEY NEED TO WORK WITH A LOT OF OTHER PUNTERS AND STARTING WITH SAMSUNG. AND WE HAVE XREAL AND WARBY PARKER ANNOUNCING THAT AS WELL. WE’RE WORKING TOGETHER TO DELIVER A VARIETY OF DIFFERENT KIND OF GLASSES. ED: I’VE GOT A QUESTION FROM YOU
FROM OUR AUDIENCE WHEN I SAID ON SOCIAL MEDIA YOU’RE COMING ON THE SHOW. CAN YOU ASK THEM IF THE NEW X-1 PRO NEEDS THE BEAN PARK FOR A SPATIAL EXPERIENCE? IT IS VAGUE ON YOUR WEBSITE. >> WELL, OK. SO FOR XREAL, WE ALWAYS HAVE TWO DIFFERENT VISIONS. ONE IS SPATIAL DISPLAY. THAT’S BASICALLY AN EASY TO CONNECT ACCESSORY THAT AND PLUG INTO INDIVIDUALLY ANY DEVICES. AND THEN THERE’S ANOTHER ONE CALLED SPATIAL COMPUTING WHICH IS END-TO-END EXPERIENCES SIMILAR TO ORION OR APPLE VISION PRO. ED: FINANCIALS.
HOW MUCH MONEY ARE YOU MAKING RIGHT NOW? DO YOU NEED TO RAISE MONEY? HOW IS THAT LOOKING? >> OK. SO WE DO HAVE A PLAN TO GO PUBLIC IN 2026. ED: WHERE? >> DEFINITELY IN THE U.S. ED: ALL RIGHT. THAT WAS CHI XU, C.E.O. OF XREAL WITH UP TO THE MINUTE
UPDATE. NOT JUST ON THE LATEST TECHNOLOGY BUT WHAT’S HAPPENING FOR THE COMPANY, TOO. COMING UP, NVIDIA’S JENSEN HUANG SAID THE U.S. CHIP CURBS ARE A FAILURE.
THIS IS "BLOOMBERG TECHNOLOGY." ED: WELCOME BACK TO OUR TOP STORY. NVIDIA SHARES ARE HIGHER HAVING OPENED UNDERPRESSURE. C.E.O. JENSEN HUANG SLAMMED THE U.S. OVER CHIP SALE RESTRICTIONS TO CHINA.
I WANT TO BRING IN MANDY SINGH. HELP US UNDERSTAND THE STATE OF CHINA. NVIDIA THE WORLD’S LEADER IN A.I. ACCELERATORS BUT OTHERS LIKE AMD RIGHT, THEY CAN’T ACCESS THAT MARKET. BUT IT’S IN THAT MARKET WHERE A LOT OF THE ACTIVITY OF A.I.
DEVELOPMENT IS TAKING PLACE AND THERE ARE DATA CENTERS BEING BUILT AS WELL. >> YEAH, WE ALL KNOW ABOUT DEEPSEEK AND WHAT IT DID AT THE START OF THE YEAR AND ALL THESE MODELS, WHEN YOU THINK ABOUT THE TRAINING OF DEEPSEEK OR ALIBABA’S MODELS, IT’S HAPPENING WITHIN CHINA. AND A LOT OF THE NVIDIA GPU’S ARE STILL USED FOR TRAINING LLM’S. THE FACT THAT NVIDIA WON’T BE ABLE TO SELL TO CHINA WHICH IS ABOUT 20% OF THE OVERALL GPU SPEND OF AROUND $250 BILLION, IT TELLS YOU THAT, YOU KNOW, THEY DON’T HAVE THAT SOVEREIGN A.I. OPPORTUNITY WHICH EVERYONE IS
VERY EXCITED ABOUT WITH NVIDIA AND NVIDIA DID SIGN UP A FEW DEALS IN THE MIDDLE EAST. BUT WHEN I LOOK AT THE LARGE LANGUAGE MODEL LANDSCAPE, I MEAN THE 405 OF THE BEST MODELS ARE IN THE U.S. AND THEN YOU HAVE THE REMAINDER OF THE OTHER MOST PROMINENT MODELS IN CHINA.
ALL THE OTHER COUNTRIES ARE STILL KIND OF INVESTING, BUILDING THE INFRASTRUCTURE BUT THEY DON’T HAVE THE LLM’S LIKE THESE TWO COUNTRIES HAVE. ED: WHEN YOU PUBLISHED RESEARCH ON THE BLOOMBERG TERMINAL, I PRINT IT AND I PUTT-PUTT ON MY DESK AND I HAVE THIS PIECE ON MY DESK FROM MARCH 17. DEEPSEEK TO RECAST $525 BILLION CAPX BY 2032. IN THE CONTEST OF THE NVIDIA STORY, EXPLAIN THAT THESIS AT THE TIME AND WHAT’S HAPPENED AS A RESULT OF THE DEEPSEEK VOLATILITY. MANDEEP: THEY FORCED EVERYONE TO LOOK AT
HOW MUCH THEY WANTED TO SPEND UPFRONT ON PRETRAINING AND REALLY PIVOT MORE TOWARDS REASONING AND INTERFERENCING AND THAT’S WHAT WE’VE SEEN WITH OPENAI AND NOW WITH GOOGLE 2.5 PRO. A LOT OF EMPHASIZES ON REASONING AND OUR PIECE AT THAT TIME WAS THERE IS THIS SHIFT FROM TRAINING TO INTERFERENCING THAT’S HAPPENING NOW. AND WHAT WILL HAPPEN AS A
RESULT OF THAT IS THAT INTERFERENCING OPPORTUNITY WILL BE A LOT BIGGER. THAT PART WILL GROW A LOT FASTER. AND THE NET RESULT IS THAT OVERALL, A.I. MARKET WILL CONTINUE TO GROW BUT THEY WILL BE THAT SHIFT FROM TRAINING TO INTERFERENCING.
AND I THINK WE ARE SEEING THAT PAN OUT. ED: AND IN CHINA A PART OF IT MAY BE DOMESTIC NAMES USING HUAWEI FOR SOME OF THAT CHIP. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." DON’T FORGET CHECK OUT OUR PODCAST. SO MANY OF YOU THRONE THE SHOW IN PODCAST FORMAT YOU.
FIND THAT ON THE TERMINAL AND ONLINE.
2025-05-26 20:00
