Nvidia Earnings Ahead, SpaceX Faces Another Setback | Bloomberg Technology 5/28/2025
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. [CAPTIONING MADE POSSIBLE BY THE U.S. DEPARTMENT OF EDUCATION AND BLOOMBERG TELEVISION] CAROLINE: LIVE FROM SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." ALL EYES FOR NVIDIA AS IT GEARS UP FOR EARNINGS AFTER THE CLOSING BELL. CAN IT PROFIT MARGINS WITH THE CHINESE RESTRICTIONS. ED:
WE LOOK AT OKTAT. CAROLINE: THE COMPANY’S THIRD SETBACK IN A ROW FOR SPACE X. GAINS DISINTEGRATING HERE, TOO. TREADING WATER AHEAD OF THE IMPORTANT MACROEVENT. WHETHER YOU THINK THAT IS THE ALL IMPORTANT NVIDIA NUMBERS AFTER THE BELL, WE’RE WATCHING. ED: NVIDIA IS SOFTER DOWN .4% ON A
YEAR-TO-DATE BASIS AND JUST IN POSITIVE TERRITORY, UP HALF A PERCENTAGE POINT. EVERYTHING I SPEAK TO THINK NVIDIA IS A MACROLEVEL EVENT WHEN IT COMES TO EARNINGS. LET’S GET RIGHT TO WHAT WE CAN EXPECT FROM THOSE EARNINGS LATER TODAY AND BRING IN BLOOMBERG INTELLIGENCE ANALYST. AND IN HIS RESEARCH, HE SAYS INVESTORS SHOULD EXPECT A STRONG QUARTER. AND A BIG PART OF THAT IS A RAMP UP OF THE GB-200.
>> THEY CONTINUE TO EXCEED WHAT WE THOUGHT BEFORE. ONE KEY IMPORTANT POINT FOR THESE EARNINGS IS THIS IS THE MOST NOISIEST QUARTER WE’VE SEEN IN TERMS OF NVIDIA NUMBERS AND BECAUSE OF THE CHINA BEND, THERE IS CONFUSION AND WE THINK THE ABSOLUTE BASIS FOR THIS QUARTER SHOULD BE MUCH LESS IMPORTANT, AND THE MORE IMPORTANT THINGS SHOULD BE THE SECOND HALF AROUND THE TRANSITION AND CLARITY AROUND THE NEW CHINA CHIP AND BONUS POINTS IF YOU CAN GET OUTLOOK OF 2026 FROM JENSON. CAROLINE: AND THE C.E.O., HOW MUCH DO YOU NEED TO HEAR ABOUT THE MARGINS GOING TO A 70% LEVEL BECAUSE THEY’VE BEEN UNDER PRESSURE. >> WE THINK THEY WILL TAKE A IMPACT EITHER THIS QUARTER OR NEXT QUARTER AND SHOULD BE A ONE TIME TEMPORARY IMPACT. BUT YOU’RE RIGHT, IF THEY CAN GIVE ANY COMMENTARY IN THE CONFIDENCE OF GETTING BACK TO THE MID OR EVEN LOW 70’S BY Q-4 THAT WOULD BE ABSOLUTELY POSITIVE. CAROLINE:
GOING TO BE BUSY. WE THANK YOU. LET’S DISCUSS NVIDIA’S EXPECTATIONS AND HOW THEY FIT IN WITH THE BROADER DEPARTMENT. WE’RE JOINED BY THE PORTFOLIO DIRECTOR AND THIS A MACROEVENT, HOW CAN YOU MANAGE WHAT WAS SAID THERE WILL BE NOISE IN THE FIRST FOOTING OF THE NUMBERS. >> I THINK, YOU KNOW, WE PUT THIS INTO SHORT TERM VERSUS LONG TERM CONTEXT. I THINK IN THE SHORT TERM WE MIGHT HAVE A NOISY QUARTER AND MAYBE THIS DOES NOT ALLOW NVIDIA STOCK TO BREAK OUT OF ITS 100-150 RANGE IT’S BEEN IN OVER THE LAST YEAR. BUT I THINK OVER THE LONG TERM, I THINK WHAT WE’RE ALL LOOKING FOR IS THAT MACROIMPACT OF THE A.I. THEME, IS IT GOING TO CONTINUE?
IS THE DEMAND REALLY THERE? I THINK THE ANSWER IS GOING TO BE YES. ED: IN THE SHORT TERM AND LONG TERM FOR ME IS WHAT HAPPENS TO NVIDIA IN CHINA. >> ABSOLUTELY. I THINK EVERYBODY IS AWARE OF
THE H-20 EXPORT BAN AND WHETHER OR NOT NVIDIA IS GOING TO POTENTIALLY COME UP WITH A NEW REDESIGNED CHIP FOR THAT MARKET. I THINK THEY’RE LIKELY TO WORK ON IT. THEY’VE DONE IT BEFORE. AND I THINK THAT’S GOING TO HELP BUT THAT’S THE BIG QUESTION IS WHAT IS CHINA REVENUE GOING TO LOOK LIKE FOR NVIDIA OVER THE NEXT SIX MONTHS AS WELL AS NEXT YEAR. CAROLINE: WHAT IS NOTABLE, ED SAID AT THE TOP, THIS IS A TOCK THAT YOU CAN SEE HAS REBOUNDED HARD SINCE ITS LOWS IN APRIL UP 41% BUT BASICALLY FLAT ON THE YEAR. HOW ARE WE THINKING ABOUT THE A.I. TRADE MORE BROADLY AT THIS MOMENT?
DOES GEOPOLITICS COUNTER WHAT’S BEEN THE BUBBLE DRIVER THE LAST COUPLE YEARS? AYAKO: CLEARLY THE TARIFF SITUATION IS WEIGHING ON A LOT OF COMPANIES AND CONTRIBUTING TO A LOT OF THE NOISE WE’RE SEEING HERE BUT WE KNOW THE BUILDOUT FOR THE INFRASTRUCTURE FOR A.I. CONTINUES, AND YOU KNOW, NVIDIA CONTINUES TO BENEFIT FROM THAT. CAROLINE: WE HEARD A LOT ABOUT IT AND WHAT MORE CAN JENSON DELIVER TODAY? AYAKO: MORE OUTLOOK OF THE ADDITIONAL USE CASES AND HOW MUCH WILL NVIDIA’S CHIPS BE USED IN ROBOTAXIS AND HUMAN OID ROBOTICS AND ARE ADDITIONAL AREAS OF GROWTH THAT CAN CONTINUE TO TAKE NVIDIA’S STOCK HIGHER LONG TERM. ED: WHAT IS IT LIKE FOR YOU, I’M
TRYING TO THINK SOMETHING ANALOGOUS LIKE TESLA AND ELON, YOU GET THE EARNINGS RELEASE AND READ THROUGH IT AND THEN THERE ARE THE PREPREPARED REMARKS AND IT HANGS ON THE Q&A WITH JENSEN HUANG AND SOME CALL HIM THE GODFATHER OF A.I. AND OTHERS CALL HIM SOMETHING DIFFERENT BUT AT YOUR DESK HOW DO YOU PLAY IT? AYAKO: WE’RE LISTENING TO THE DEMAND CUES AND SUPPLY CONSTRAINTS AND TRYING TO UNDERSTAND THE NATURE OF THIS SCHEMATIC. CLOUD COMPUTING WAS SOMETHING THAT CAME ABOUT AND WAS VERY LONG AND IN DURATION IN TERMS OF ITS GROWTH AND CONTINUES, RIGHT? WE WANT TO KNOW HOW LONG A.I.’S BUILDOUT WILL BE FROM TRAINING
TO INTERFERENCE AND HOW LONG THAT CONTINUES TO BENEFIT NVIDIA . ED: TODAY YOU PAY ATTENTION TO THE TIME LINE FOR A NEW PRODUCT THAT THEY TELL YOU, DO YOU REACT TO IT? AYAKO: ONLY TO THE EXTENT IT CONTINUES TO PROPEL THE A.I. STORY. THE MORE IMPORTANT THINGS THAT CAME OUT WERE THE ENVY LINK FUSION PRODUCT THEY TALKED ABOUT, JUST NETWORKING AND ALLOWING FOR ADDITIONAL C.P.U.’S AND ASICS AND M.B.U.’S NVIDIA PRODUCES AND ALLOWS FOR THE OVERALL A.I. GROWTH STORY TO CONTINUE FOR MUCH LONGER AND EXPANDS THE TOTAL ADDRESSABLE MARKET AND WE LIKE HEARING THINGS LIKE THAT, NEW ADDITIONAL SORT OF CHIPS, THINGS THAT WILL FOLLOW, WHETHER IT’S REUBEN FOLLOWING BLACKWELL, WE’D LIKE TO HEAR HOW THAT IS GOING AND THE IMPACT ON MARGINS FROM A TIMING PERSPECTIVE BUT THE QUARTERLY FLUCTUATIONS WON’T DETER OUR LONG TERM THESIS THERE. CAROLINE: ARE YOU OVER THE DEEP SEEK AND DID JENSON DO ENOUGH SHOWING THE INTERFERENCES WHERE IT’S AT? AYAKO: I THINK SO.
I THINK WE’RE SEEING THAT ACROSS MANY HYPER SCALERS TALKING ABOUT THIS, AND I DO THINKING THAT THE DEEP SEEK STORY, ALTHOUGH IT WAS SORT OF JARRING AT THE BEGINNING, I THINK A LOT OF THAT REALLY JUST CAME OUT OF THE FACT THAT IT CAME OUT OF CHINA. IF IT HAD COME OUT OF THE UNITED STATES, IT MIGHT NOT HAVE BEEN AS JARRING BUT AGAIN, I THINK THIS REALLY SORT OF EXPANDS THE OVERALL ADDRESSABLE MARKET. ED: THE SENSIBLE PLACE TO END IT ON IS SORT OF CHICKEN AND EGG DEBATE. WHAT IS MORE IMPORTANT FOR INVESTORS TO LOOK AT A LONG TERM PICTURE, NVIDIA OR THE HYPER SCALERS AND CAP EX-FIGURES BECAUSE WE’VE DONE A JUGGLE BETWEEN THE TWO? AYAKO: I THINK IT’S THE PAPEX SPEND FROM THE HYPER SCALERS AND IT CONTINUES TO GROW. THE GROWTH RATE HAS SLOWED DOWN AND WE EXPECT THAT TO SLOW DOWN GOING FORWARD BUT THAT SPEND IN TERMS OF DOLLARS CONTINUES TO BE VERY LARGE AND THAT WILL PROPEL THE OVERALL INFRASTRUCTURE AND SPEED AT WHICH WE ALL ADOPT A.I. ED: JENSEN HUANG SAID I TOLD EVERYBODY WHAT I AM DOING FOR FIVE YEARS SO THEY CAN MAKE BETTER PLANS. A CONSULTING DIRECTOR, THANK
YOU SO MUCH. THE C.E.O. OF OKTA JOINS US TO TALK ABOUT THE COMPANY’S RESULTS AND WHY IT IS TAKING A PRUDENT APPROACH TO ITS OUTLOOK. THAT’S NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ED: SHARES ARE DOWN FOR OKTA AFTER A CONSERVATIVE REVIEW. IT IS SUGGESTED A LONGER SALES CYCLE ACCORDING TO OUR BLOOMBERG ANALYSIS.
JOINED BY OKTAC.E.O. TODD MACKINNON. LET’S GET THIS CONSERVATIVE FISCAL GUIDE OUT OF THE WAY. DO YOU AGREE IT IS CONSERVATIVE AND IF SO, WHAT MADE YOU BE A LITTLE MORE CAUTIOUS? TODD: ONE QUARTER IS VERY SHORT TERM. YEAH, WE’D LOOK AT THE WORLD AND SAY THERE IS UNCERTAINTY WITH TARIFF AND TRADE POLICY IN THE SHORT TERM . WE HAVE REASON TO BE OPTIMISTIC IN THE MEDIUM TO LONG TERM. ED: TALKING IDENTITY AND ACCESS MANAGEMENT BECAUSE THAT’S THE FIELD YOU’RE IN AND ONE TAILWIND I KEEP HEARING ABOUT IS A.I. MEMORY AND A.I. AGENTS.
IN OTHER WORDS IF AN A.I. AGENT IS GOING TO BE SUPERUSEFUL IT MEADS TO TALK TO OTHER AGENTS AND MEANS THE PERSON, THE HUMAN AT THE CENTER OF IT HAS TO GIVE AWAY A LOT OF INFORMATION. TODD: ONE THING IS MAKING SURE YOU HAVE THE RIGHT PEOPLE WHICH IS BUSINESS PHONES AND MOBILE APPLICATIONS AND WHAT IS HAPPENING IN THE A.I. REVOLUTION, MACHINES ARE ACCESSING INFORMATION MORE AND MORE. AND IT’S NOT ABOUT GETTING PEOPLE THE RIGHT ACCESS BUT COMPUTERS THE RIGHT ACCESS. WE ARE GOOD AT THAT AND HAVE THOUSANDS OF CUSTOMERS WHO TRUST US EVERY DAY TO MAKE SURE THEIR MACHINES AND SYSTEMS HAVE ACCESS IT. AND NOW A.I.
IS TURBOCHARGING THAT AND WE’RE MOVING FROM PROTOTYPES, EVERYONE IS PROTOTYPING THESE SYSTEMS AND CUSTOMER SUPPORT REPS AND SALES REPS THAT CAN WORK ON PEOPLE’S BEHALF AND PUTTING THEM IN PRODUCTION AND MEANS THEY HAVE TO HAVE THIS ACCESS TO REAL CUSTOMER DATA, REAL USER DATA AND THAT’S WHERE WE CAN COME IN AND HELP THEM DO IT SEAMLESSLY. CAROLINE: HOW MUCH DOES THE COMPUTER SECTOR WANT, YOU’VE SECURED DETAILS AS OF LATE. TODD: EVERYONE IS TRYING TO GET MORE EFFECTIVE WITH THEIR I.T. IN FACT IN Q-1 FOUR OF OUR TOP 10 DEALS WERE WITH PUBLIC SECTOR AGENCIES AND SEEING VERY ROBUST DEMAND THERE AND FOR THE SAME REASON, THEY NEED TO BE SECURE AND OUR BUSINESS IS ABOUT IDENTITY AND IDENTITY IS SECURE, TO BE SECURE WE HAVE TO HAVE A GOOD IDENTITY SYSTEM AND WHEN WE DO THE IGENTIC WORKLOADS AND MOVE THEM FROM PROTOTYPES AND PROOFS OF CONCEPTS TO PRODUCTION YOU HAVE TO CONTROL ACCESS OF DATA IS WHAT OUR CUSTOMERS ARE TELLING US WE CAN DO FOR THEM. CAROLINE: THE DRIVE FOR DOGE WAS ABOUT
TECH ADOPTION AND COST CUTTING. HOW MUCH DO YOU THINK THERE IS THIS HEAD WIND OR CAUTION AROUND MAYBE A PUSHBACK ON SOME OF THE CONTRACTS THAT YOU HAVE WITHIN THE PUBLIC SECTOR? TODD: FOUR OF OUR TOP 10 DEALS AND TWO OF THE TOP THREE DEALS OF Q-1 WERE IN THE PUBLIC SECTOR AND WHAT YOU’RE SEEING AT THE U.S. FEDERAL LEVEL, ORGANIZATIONS ARE LOOKING TO BE MORE EFFICIENT AND EFFECTIVE AND THAT MEANS LOOKING AT ALL THEIR SPENDING BUT MOST OF THEIR SPENDING IS ON LEGACY TECHNOLOGY SO THEY’RE MANAGING ON PREMISE SOFTWARE AND PAYING MASSIVE BILLS TO MAINTAIN THAT SOFTWARE AND THE INDUSTRY OF CLOUD COMPUTING AND A.I. OFFER AS VIABLE ALTERNATIVE AND OKTA INSIDE OF THAT IS A KEY LAYER OF SECURING AND MANAGING IT. IF YOU WANT SECURITY AND EFFICIENCY, WE’RE A REQUIRED THING AND THAT’S WHAT’S DRIVING SOME OF THE EXPENSE AND PART OF THE MARKET FOR US. ED:
WHEN WAS IT FOUNDED QUICKLY? TODD: 2009. ED: CAN YOU TALK ABOUT LEGACY TECH AND HOW IT IS DOING BUSINESS IN THIS ENVIRONMENT, THERE ARE LOTS OF NEW NAMES IN THIS FIELD AND NEW NAMES THAT WANT TO BE YOUR CUSTOMERS AND ARE USED TO NEGOTIATING WITH OTHER PEOPLE THEY MAY OR MAY NOT KNOW IN THIS SILICON VALLEY ORBIT AND YOU’VE BEEN AROUND A LITTLE LONGER AND WONDER WHAT THAT’S LIKE. ED: ONE THING ABOUT THE AGE OF TECHNOLOGY IS WE ARE VERY ESTABLISHED AND HAVE HADS 2.6 BILLION IN REVENUE AND GROWING
QUICKLY AND VERY PROFIT ANNUAL. IN FACT IN Q-1 WE HAD RECORD PROFITABILITY. IN OUR SPACE WE’RE THE CLEAR LEADER, OUR SPACE OF INDEPENDENT AND NEUTRAL IDENTITY MANAGEMENT AND NOW THERE’S AN A.I.
REVOLUTION AND OPENING UP VAST NEW MARKETS FOR EVERY TECHNOLOGY COMPANY. IT’S LIKE HOW DO YOU DEFEND WHAT YOU’VE DONE VERY WELL WHILE AT THE SAME TIME INVESTING FOR THE FUTURE AND INNOVATING AND MAKING SURE YOU CAPTURE THIS NEW MASSIVE OPPORTUNITY. IT’S EXCITING AND MAKES US DOUBLE DOWN AND STICK TO DEFENDING THE MARKET AND STICK TO WHAT WE’VE DONE IN THIS WHOLE NEW WORLD. ED: AT THE TOP OF THE SHOW WE REFERENCED SUBSCRIPTION BACKLOG. WHAT HAPPENS? TODD: WE’RE A CLOUD SERVICE AND PEOPLE PAY US A SUBSCRIPTION AND WE PROVE VALUE AND THEY INVEST IN US IN A CONTRACT VALUATION. IT’S A GOOD TRADEOFF OF A VALUE TO A TRADER AND SOMEONE LIKE US TO DELIVERING VALUE. CAROLINE: THANK YOU FOR COMING ON AND
TALKING BACK SOME OF THE NARRATIVES AROUND THE DOGE ISSUES. COMING UP, HOW YOUTUBE IS MAKING ITSELF A CENTERPIECE OF THE LIVING ROOM. BLOOMBERG TV. THIS IS BLOOMBERG TELEVISION. CAROLINE: APPLE SET TO RELEASE A GAMING APP LATER THIS YEAR. THE FEATURE SET TO DEBUT AT THE
CONFERENCE JUNE 9 A FEW DAYS AFTER NINTENDO SWITCH 2 RELEASE. WE’RE JOINED BY MARK FROM BLOOMBERG. IS IT DEFENSE OR OFFENSE, MARK? MARK: THANK FOR YOU HAVING ME. APPLE HAS BEEN WORKING ON THIS FOR QUITE SOME TIME OVER THE PAST FEW YEARS AND BEEN TRAINED TO PUSH I.O.S. AND MAC AND HAVE COME A LONG WAY AND THERE’S A LONG WAY TO PUSH PC’S TO MAC BUT YOU’VE SEEN CLOUD GAMING SERVICES AND OTHERS THE LAST FEW YEARS FROM GOOGLE AND MICROSOFT TRIED THIS AND WHAT HAPPENLE IS TRYING TO DO IS CREATE ONE UNIFIED PLACE WHERE DEVELOPERS CAN PITCH THEIR APPS WITH NEW EDITORIAL CONTENT, A UNIFIED PLACE FOR GAMERS ON ALL OF APPLE’S DEVICES TO GO TO WHEN THEY WANT TO LAUNCH A GAME, VIEW ACHIEVEMENTS AND LEADER BOARDS AND CONNECT WITH OTHER PLAYERS ONLINE SO THIS NEW SERVICE, APPLE GAMES, APPLE WILL INSTALL IT THIS NEW YEAR AND WILL BE THE PLACE TO DO SO. ED: I’VE STRUGGLED YEARS OF GAMING WITH MACROS.
I FIND IT INTERESTING ON THE TITLES THEMSELVES WE’RE NOT SAYING APPLE WILL BECOME A PUBLISHER OF GAMES THROUGH THE PLATFORM RIGHT BUT IT IS STILL A MARKETPLACE AND WAY TO MONETIZE ACCESS THROUGH OTHER PEOPLE’S SOFTWARE AND TITLES. MARK: APPLE BOUGHT A TWO-PERSON GAME STUDIO, I BELIEVE THE APP IS CALLED STINKY SASQUATCH, ONE OF THE MORE POPULAR GAMES ON THE APPLE ARCADE SUBSCRIPTION SERVICE AND THEY BOUGHT THAT BUT DON’T ANTICIPATE THEM TO GO A LOT FURTHER IN THAT IN TERMS OF IN-HOUSE GAMES AND MAYBE BUY A FEW OTHER STUDIOS AND I DON’T ANTICIPATE THEM TO GO FURTHER DOWN THE ROUTE IN INVESTING BILLIONS INTO THAT. BUT I DO EXPECT FOR THIS NEW GAMES APP ON APPLE DEVICES TO BE A CENTRAL WAY WHERE PEOPLE ACCESS GAMES.
2/3 OF APPLE REVENUE FROM THE APP STORE PROBABLY NORTH OF $12 BILLION TO $13 BILLION A YEAR COMES FROM GAMES SO GAMES IS SUPERIMPORTANT AND WANT PEOPLE PLAYING MORE GAMES AND PEOPLE DOWNLOADING MORE GAMES AND PEOPLE BUYING MORE SUBSCRIPTIONS WITHIN GAMES AND HAVING A UNIFIED PLACE TO ACCESS ALL THOSE TITLES COULD POTENTIALLY HELP WITH THAT. CAROLINE: GAMING IS IMPORTANT TO APPLE’S BUSINESS MONITOR BUT HOW IMPORTANT IS THAT TO THE GAMING INDUSTRY, WHAT MARKET SHARE DO THEY HAVE, GIVE US A CONTEXT, MARK? MARK: IF YOU THINK ABOUT IT, THE IPHONE IS PROBABLY THE MOST POPULAR GAMING DEVICE ON THE PLANET AND CAN YOU NOW GET TRIPLE-A TITLES ON THERE, RESIDENT EVIL, FORTNIGHT IS BACK ON THE APP STORE NOW AFTER A FEW YEAR REPRIEVE AND AFTER THAT LAWSUIT HIT NEW LEVELS. CAROLINE: TECHNICAL ISSUES. ED: I THINK WE HAVE A TECHNICAL
ISSUE. THANKS TO BLOOMBERG’S MARK GORMAN. YOUTUBE SPENT THE PAST FEW YEARS TRYING TO MAKE ITSELF THE CENTERPIECE OF THE LIVING ROOM AND CREATORS ARE FINDING THEMSELVES MAKING LONGER SHOWS TO MEET VIEWERS WHERE THEY ARE, IN FRONT OF THEIR TV’S WHERE YOUTUBE IS THE TV SERVER OF CHOICE FOR ALL AGES. IVEIVE AND I THINK OF DIFFERENT GENRES AND WHAT I CONSUME ON YOUTUBE. WHAT IS THE KIND OF CONCLUSION REACHED IN THIS PIECE, LUCAS? LUCAS: FOR MOST OF YOUTUBE’S EXISTENCE, PEOPLE THOUGHT OF IT AS A SHORT FORM VIDEO SERVICE PEOPLE WATCHED PROBABLY INITIALLY ON LAPTOPS AND DESKTOP COMPUTERS AND THEN PRIMARILY MOBILE PHONES AND OVER THE LAST 3 3-5 YEARS THERE’S BEEN A DRAMATIC SHIFT WHERE THE TELEVISION IS NOW THE PRIMARY DEVICE PEOPLE USE AND INCREASINGLY IN OTHER COUNTRIES AND AS A RESULT OF THAT, A LITTLE BIT OF A CHICKEN AND THE EGG SCENARIO BUT THE LENGTH OF VIDEO PEOPLE ARE WATCHING IS GETTING LONGER, WHETHER THAT’S A THREE-HOUR JOE ROGAN PODCAST OR A 25-MINUTE SITCOM AND THE LATTER INTERESTED ME BECAUSE MOST PEOPLE THINK OF YOUTUBE AS A PLACE FOR CRAPPY UNSCRIPTED STUFF AND INCREASINGLY THERE IS SCRIPTED PROGRAMMING PEOPLE ACTUALLY WATCH ON YOUTUBE. CAROLINE:
SLOT FEST IS WHAT YOU SAY IN THE PIECE AND THIS IDEA IT HAS SLOP IS THE FACT THAT OTHERS IN THE INDUSTRY TRY TO PORTRAY BUT HOW THEY PUSH BACK AGAINST THAT AND HOW ARE WE SEEING THAT REVERSE IN TERMS OF TRENDS, OR NOT, LUCAS? LUCAS: THERE’S BEEN AN ONGOING DEBATE WHETHER THERE IS QUALITY PROGRAMMING ON YOUTUBE. THEY HAD WHAT WERE THEIR BRAND SAFETY SCANDALS A LITTLE LESS THAN A DECADE AGO YOU HAD ADS RUN AGAINST UNSAFE MATERIALS AND A LOT OF THEIR BIGGEST STARS GET IN TROUBLE AND JEFFREY KATZENBERG START THIS GIVEE WITH YOUTUBE LENGTH VIDEOS WITH YOUTUBE BUDGETS BUT DIDN’T WORK AND WHAT THEY SEE ON YOUTUBE IS QUALITY. IF YOU ASK SOMEONE THAT WATCHES "HOT ONES" THAT’S A TALK SHOW YOUNG PEOPLE CARE ABOUT THAN SETH MYERS. ED: I CAN’T NAME A YOUTUBE SINGLE, I GO TO APPLE TV BECAUSE OF "SILO." AND WHY I HAVE THESE SUBSCRIPTION BILLS EVERY MONTH. WHAT IS YOUTUBE DOING THERE, NAME RECOGNITION PROGRAMMING, ORIGINAL PROGRAMMING? LUCAS: HAVE YOU HEARD OF "ONES" OR "MR. BEAST." THOSE ARE FORMATS. ED: GOOD EXAMPLE, RIGHT? LUCAS: WE’RE NOT AT AT A POINT THEY’RE MAKING A LAST OF US. THE BUDGET IS TOO BIG FOR MAKE
MONEY ON YOUTUBE. THERE’S A BELIEF WE MAY EVENTUALLY GET THERE WITH A.I. BRINGING THE COST DOWN BUT THAT’S THE BIG WHITE WHALE FOR YOUTUBE, IF YOU WILL OR YOUTUBE WILL TELL YOU THAT YOU CAN STILL WATCH "THE LAST OF US" ON YOUTUBE BUT DO IT VIA MAX OR BUY IT FROM THE YOUTUBE CHANNEL STORE. CAROLINE: THE DATA TALKS. LUCAS SHAW, GREAT TO HAVE YOU.
A.I. HAS SUPERCHANGED AND SUPERCHARGED THE DEMAND FOR ELECTRICITY AND A PARTNERSHIP BETWEEN NVIDIA AND NAVRATILOVA -- NAVITAS. AND SHARES ARE SOARING. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I’M CAROLINE HYDE IN NEW YORK.
ED: I’M ED IN SAN FRANCISCO. AS CAROLINE SAID AT THE TOP OF THE SHOW, WE’RE TREADING WATER AND FLAT ON THE NASDAQ 500 AND SEMI FLAT ON THE PHILADELPHIA SEMICONDUCTOR INDEX AND THAT STORY IS ALMOST SOLELY NVIDIA WHICH REPORTS EARNINGS AFTER THE MARKET CLOSED. IT’S A STOCK THAT IS TREADING WATER RIGHT NOW, COMPLETELY FLAT ON A YEAR-TO-DATE BASIS. IT IS HIGHER BUT MARGINALLY LESS THAN 1%AGE POINT. AND WHAT WE’RE LOOKING FOR IS SOME SENSE IN THE SHORT TERM THE CHINA STORY, HOW SALES HAVE BEEN IMPACTED AND REMEMBER A $5.5 BILLION WRITEDOWN IN THE QUARTER GONE RELATING TO THE LACK OF SELLING H-20 WHAT IT LOOKS LIKE GOING FORWARD, CAROLINE? CAROLINE: IT WILL BE INTERESTING AND ALL EYES ON THAT REPORT BUT THAT ATTENTION IS SPILLING OVER TO OTHERS IN THE SUPPLY CHAIN, ED, INCLUDING NAVITAS, A MAKER OF GALLEON CHIPS THAT GO INTO E.V.’S AND DATA CENTERS.
NEWS WITH A PARTNERSHIP WITH NVIDIA SENT SHARES SOARING, 140% IN A SINGLE DAY AND ADDED THE MARKET VALUE TRIPLING ITS SIZE AND GENE SHERIDAN JOINS US NOW, GALLEON NITRIDE, PSYLLIUM CARBIDE, HOW WILL IT CHANGE THE WORLD OF DATA CENTERS? GENE: IT USED TO BE DATA CENTERS ONLY NEEDED A FEW HUNDRED WATTS OR 10 TRILLION IN A BUILDING BLOCK OF A DATA CENTER. A.I. IS CHANGING IT COMPLETELY AND NOT TALKING HUNDREDS OF THOUSANDS OF WATTS AND IN THE FUTURE A MEGA WATT PER CIRCUIT RACK AND HOW DO YOU DELIVER THAT? CHIPS CAN’T DO IT BUT GALLEON CHIPS CAN OFFER MORE POWER AND DO IT ENERGY EFFICIENTLY WITH FASTER CHARGING POWER AND THESE ARE THE KEY TECHNOLOGY CHIPS TO POWER THE FUTURE DATA CENTER. CAROLINE: GENE, AS MENTIONED, SELECTED BY NVIDIA FOR THIS PARTNERSHIP GOING FORWARD, HOW IS YOUR SUPPLY CHAIN AND ABILITY TO MEET THIS LEVEL OF DEMAND? GENE: WE’VE LINED THINGS UP AND HAVE SEEN IT COMING FOR A FEW YEARS AND BEEN WORKING ON GALLIUM NITRIDE AND XFAB WITH PSYLLIUM CARBIDE AND SIX INCH GOING TO EIGHT INCH IN THE COMING YEARS WITH CAPACITY COMING UP AND NOW WORKING WITH NVIDIA ON THE DEVELOPMENT SIDE AND LOTS TO DEVELOP WHAT THEY CALL THE 800 VOTE DATA CENTER AND THIS ARCHITECTURE WILL NOT ONLY SAVE ENERGY AND USE OUR CHIPS TO MAKE IT MORE ENERGY EFFICIENT BUT ENABLE THE MEGA WATT CAPABILITY 10 TO 20 TIMES MORE POWERFUL TO HOLD THE A.I. PROCESSORS THE NEXT FEW YEARS.
ED: GENE, YOUR COMPANY’S STOCK HAS BEEN ON A WILD RIDE SINCE THE ANNOUNCEMENT AND THE ASSOCIATION WITH NVIDIA. GIVE US SOMETHING TANGIBLE AND WHAT’S THE DOLLAR VALUE OF THIS RELATIONSHIP TO NAVITAS AND WHAT’S THE SALES GROWTH TRAJECTORY WITH WHAT YOU PUT IN PLACE WITH NVIDIA. GENE: WE’RE SKIPPING OUR HIGH VOLTAGE AND SCANNED CHIPS TO THE DATA CENTERS TODAY AND HAVE 70 OPPORTUNITIES FOR THE CONVERTER FOR THE TRADITIONAL DATA CENTER TODAY AND WILL DRIVE SHORT TERM GROWTH FOR THE COMPANY BUT THIS ANNOUNCEMENT REALLY IS ABOUT TOMORROW. WE’RE GOING TO SPEND THE NEXT YEAR IN DEVELOPMENT WITH NVIDIA AND OTHERS CREATING THE KEY TECHNOLOGY OR BUILDING BLOCKS FOR THIS 800 VOTE DATA CENTER, THIS MEGA WATT SERVER RACK POWER. THESE SYSTEMS WON’T COME ONLINE UNTIL LATE 2026 AND REALLY RAMPING IN 2027 AND IS NOT A SHORT TERM PLAY BUT HAVE SOLID BUSINESS IN THE NEAR TERM WITH A SOLID GAUGE WITH NVIDIA AND WE’RE EXCITED ABOUT MAKING THE NEXT DATA CENTER HAPPEN THE NEXT 12-18 MONTHS. ED: YOU SAID THE TOP OF THE SHOW YOU ADDED $1 BILLION IN MARKET CAP IN THE LAST SEVEN TRADING SESSIONS AND THE COMPANY’S VALUE HAS TRIPLED, AS C.E.O., WHAT’S THAT LIKE FOR YOU? GENE:
WELL, WE WENT PUBLIC A FEW YEARS AGO AS AN EARLY STAGE PUBLIC COMPANY. I’VE LEARNED TO RIDE THE HIGHS AND THE LOWS AND NOT GET TOO EXCITED ABOUT EITHER EXTREME. SO I THINK THE MARKET IS GOING TO DO WHAT IT’S GOING TO DO BUT WE KEEP OUR HEADS DOWN FOCUSED ON BUILDING A GREAT NEXT GENERATION PARTNER BUSINESS AND IF WE KEEP PARTNERING WITH COMPANIES LIKE NVIDIA, AND WE’RE WORKING ON MOBILE CHARGERS AND ELECTRIC VEHICLES AND CHANGING SOLAR INVERTERS AND PARTNERING UP WITH THESE KEY GUYS WILL DRIVE OUR BUSINESS AND WE’RE SUPEREXCITED ABOUT THE NVIDIA ONE TO CREATE THESE FUTURE DATA CENTERS. CAROLINE:
GENE, HOW ARE YOU NAVIGATING THE POLARIZATION OF ALL OF THIS, THE IDEA PEOPLE WANT U.S. DATA CENTERS BUT THEN WILLING TO PARTNER IN THE U.A.E. AND SAUDI ARABIA AND ACCESS TO CHINA AROUND THAT WAY. HOW ARE YOU THINKING ABOUT THE GLOBAL FOOTPRINT YOU’LL HAVE? GENE: REALLY IS DEGLOBALLIZATION IN A BIG WAY. WE’RE STARTING IN A GOOD PLACE, TAIWAN IS A CENTRAL LOCATION, NEUTRAL, IF YOU WILL, TSMC IS THE BEST OUT THERE FOR THE GALLIUM CHIPS AND XFAB IS MANUFACTURED IN TEXAS. THERE’S A LOT OF WORK TO DO IN
THE UNITED STATES TO UPGRADE THE GRID AND MOST OF THE DATA CENTERS IN THE WORLD ARE CONCENTRATED HERE IN THE U.S. SO MADE IN AMERICA AT THE CHIP LEVEL, MADE IN AMERICA FOR THE POWER GRID, UPGRADES IS A PERFECT FIT BUT WE’RE NOT STOPPING THERE AND LOOKING AT WAIVER PAD MANUFACTURING PARTNERS AROUND THE WORLD SO WE HAVE AGREE GRAPHICALLY DIVERSE FOOTPRINT TO DEAL WITH WHATEVER THE GEOPOLITICS ARE WHATEVER THE LOCALIZATION NEEDS ARE. SO THERE’S A LOT TO DO IN OUR EXPANSION AND HAVE A LOT GOING ON TO EXPAND THAT FOOTPRINT. ED: YOU SAID THIS PARTNERSHIP WITH NVIDIA BEARS FRUIT LATE 2026 OR 2027 AND DOES THAT MEAN YOU’LL BE INVOLVED IN WHAT IS ANNOUNCED IN THE SAUDI AND U.A.E. AND SOME OF THE SHORING ACTIVITY IN THE UNITED STATES, PROJECTS LIKE STARGATE, FOR EXAMPLE. GENE: WE’LL WORK AT THE POWER CHIP
AND SUPPLY LEVEL, WE CREATE THE BUILDING BLOCKS THAT MOVE THAT POWER AROUND AND ALLOW THE POWER TO HAPPEN EFFICIENTLY AND KEEP THE DATA CENTERS COOL AND WHERE THEY TAKE THOSE BUILDING BLOCKS, I DON’T HAVE TO CUSTOMIZE THEM FROM ONE REGION TO THE NEXT AND THEY CAN BUILD THEM ALL AROUND THE WORLD AND WILL SHIP AND MOVE THOSE MODULES EASILY WITHOUT MY INVOLVEMENT. SO WE DON’T REALLY NEED TO BE IMPACTED BY THOSE INTERACTION LOOPS. ED: NAVITAS C.E.O. GENE SHERIDAN. CAROLINE? CAROLINE: TIME FOR TALKING TECH. SHEN IS SHIPPING FROM AND TO HONG KONG.
SHEIN INITIALLY PLANNED TO LIST IN THE UNITED STATES AND WAS DERAILED WITH THE SUPPLY CHAIN AND LABOR SCRUTINY AND INSTACART NAMED CHRIS RODGERS TO INCOMING C.E.O. AND WILL REPLACE CIMO WHO WILL REMAIN CHAIR OF THE BOARD AT INSTACART. A U.S. DISTRICT JUDGE RULED ELON MUSK WILL HAVE TO FACE A LAWSUIT THAT CLAIMS HE WIELDED ILLEGAL POWER IN CUTTING FEDERAL JOBS AND SPENDING UNDER DOGE. WHILE MUSK HAS BEEN THE PUBLIC FACE OF DOGE, HE DENIES HE HOLDS A FORMAL POSITION OR HAS ANY AUTHORITY TO DIRECT AGENCIES TO CARRY OUT THE PRESIDENT’S COST CUTTING AGENDA. ED? ED: WE STAY WITH ELON MUSK, HIS SPACE X ROCKET LAUNCHED LAST NIGHT BUT EXPLODED MID FLIGHT, MARKING THE THIRD CONSECUTIVE SETBACK FOR THE COMPANY.
INSTEAD MUSK SEEMED ENTHUSIAST ICKYING ON X, LOTS OF GREAT DATA TO REVIEW. LAUNCH CADENCE FOR THE NEXT THREE FLIGHTS WILL BE FASTER. WE’RE JOINED BY SANA THE CONTEXT THERE, THE SUPERHEAVY BOOSTER AS PART OF THE STAR SHIP COMBINED SYSTEM WAS A REFLIGHT AND FLOWN ON THE SEVENTH TEST FLIGHT AND THE WAY X-RAYS X WILL SAY IS SUCCESS BECAUSE OF THE DATA GATHERED. TELL US ABOUT THE DATA WE NEED TO KNOW ABOUT MISSION 9? >> ESSENTIALLY, YOU KNOW, EVERYTHING SEEMED TO BE GOING SMOOTHLY AT FIRST, THE GIANT ROCKET THUNDERED OFF THE LAUNCH PAD AT 6:30 P.M. IN TEXAS BUT HALF AN HOUR INTO THE FLIGHT, THE ROCKET EXPERIENCED A LEAK IN ITS FUEL TANK SYSTEM WHICH KIND OF CAUSED IT TO LOSE CONTROL AND SPIN OUT AS IT HURDLED BACK TOWARDS EARTH’S ATMOSPHERE AND AT THE SAME TIME IT MISSED ONE OF ITS KEY OBJECTIVES WHICH WAS TO DEPLOY DUMMY STAR LINK SATELLITES BECAUSE THE DOOR TO THE ROCKET WOULDN’T OPEN, WHICH WOULD RELEASE THOSE SATELLITES. SO IT DID MISS THAT KEY OBJECTIVE.
AS YOU SAID, IT WAS ABLE TO REUSE A BOOSTER FROM A PREVIOUS FLIGHT, SO AS WE’VE SEEN IN SOME PREVIOUS STAR SHIP LAUNCHES THEY WERE ABLE TO CATCH THE BOOSTERS AFTER THE ROCKET LAUNCH AND THAT WAS USING ONE OF THOSE PREVIOUSLY USED BOOSTERS WHICH WAS A FIRST FOR THE COMPANY. BUT, HOWEVER, AS THE ROCKET TOOK OFF, THE BOOSTER ACTUALLY ENDED UP BEING LOST AS WELL AND EXPLODING THOUGH THEY WEREN’T MEANT TO RETRIEVE THAT ONE TO BEGIN WITH. SO OVERALL, THERE WAS A WIN WITH THE USE OF THE BOOSTER BUT THEY MISSED A FEW KEY OBJECTIVES. CAROLINE:
WHAT WAS INTERESTING IS WE HAD BEEN EXPECTING AN ALL HANDS STYLE TALK AS WELL BUT THAT SEEMINGLY DIDN’T OCCUR. WHAT ARE WE ANTICIPATING IN TERMS OF SIGNALING FOR THE NEXT STEPS, WHERE DO WE PUSH FORWARD IF THEY ARE GOING TO DEEM IT A SUCCESS STORY FROM WHAT THEY’VE AT LEAST LEARNED FROM THE TEST? >> TOTALLY. YEAH. WE WERE EXPECTING AN ALL HANDS STYLE TALK AFTER THE LAUNCH AND THERE WAS NO MENTION OF IT, NO MENTION OF CANCELING IT OR IF IT WOULD HAPPEN AT A LATER DATE. BUT YEAH, SPACE X REALLY DOES EMPHASIZE THIS PHILOSOPHY OF FLYING, FAILING AND THEN FIXING IT AND THAT’S KIND OF WHAT MUSK WAS SAYING ABOUT USING THE DATA TOITIER EIGHT AGAIN, MAKE THOSE FIXES, FLY MORE. AND SO RECENTLY THE F.A.A.
AUTHORIZED THAT SPACE X WOULD BE ABLE TO DO MORE LAUNCHES. SO I THINK THEY’RE REALLY THINKING ABOUT RAMPING UP THE LAUNCH CADENCE, LEARNING MORE, FLYING MORE SO WE CAN EXPECT A LOT MORE TEST FLIGHTS IN THE FUTURE. CAROLINE: THANK VERY MUCH INDEED. NATO LOOKING TO ADD CYBERSECURITY TO ITS LATEST SPENDING TARGET. WE’LL DISCUSS THAT WITH WENDI WHITMORE. THAT’S NEXT.
TUNE IN WITH JENSEN HAUNG AT 6:30 PACIFIC. THIS IS BLOOMBERG. ♪ ED: NATO PROPOSED INCLUDING CYBERSECURITY AS PART OF ITS NEW DEFENSE RELATED SPENDING TARGET OF 1.5% OF G.D.P. HERE IN THE U.S.
THIS WEEK, THERE’S A HOUSE COMMITTEE, HOMELAND SECURITY FIELD HEARING ON THE FUTURE OF AMERICA OWNING THE CYBERSPACE. WENDI WHITMORE, PALO ALTO CHIEF SECURITY OFFICER WAS A WITNESS AT THAT HEARING AND JOINS US IN SAN FRANCISCO, CLEARLY FOR WESTERN ALLIANCES BUT ALSO AMERICA, THE ROLE OF CYBERSECURITY IN THE NATIONAL INTEREST AND DEFENSE IS MORE PROMINENT. GIVE ME THE BASICS OF THE HEARING AND WHY YOU’VE BEEN CALLED AS A WITNESS TO IT. WENDI: YEAH, WE’RE EXCITED THE HEARING IS HAPPENING IN SILICON VALLEY AND THE FOCUS OF THE HEARING IS ON TECHNOLOGY INNOVATION. THERE’S NO ORGANIZATION DOING MORE OF THAT ESPECIALLY WHEN IT COMES TO A.I. THAN PALO ALTO NETWORKS AND WE’LL BE FOCUSED ON WHAT IT IS THE GOVERNMENT NEEDS TO DO TO MAKE SECURITY MORE ACTIONABLE AND ONE OF THOSE AREAS IS TAKING TECHNOLOGY AND FOCUSING ON OUTCOMES. THE PRESIDENT SHOULD HAVE A
DAILY DASHBOARD THAT SHOWS CIVILIAN FEDERAL AGENCIES, HOW QUICKLY ARE THEY RESPONDING TO ATTACKS AND DETECTING THEM. AND THAT SHOULD BE AS TRANSPARENT AS POSSIBLE. ED: THIS HEARING IS A STEP IN THE RIGHT DIRECTION AND YOU FEEL THE ADMINISTRATION AND THE GOVERNMENT CONTINUES TO OWN CYBERSECURITY ON BEHALF OF THE NATION? WENDI: I THINK THE CHALLENGE I WAS GETTING AT, ALSO WITHIN THE GOVERNMENT IS SECURITY IS TOO COMPLEX AND VISIBILITY IS NOT CENTRALIZED AND REALLY WHAT WE’RE FOCUSED ON. HEY, LET’S CREATE TECHNOLOGICAL CAPABILITIES THAT DRIVE THESE OUTCOMES SO THOSE ANSWERS ARE CLEAR AND PRECISE. CAROLINE: WENDI, THAT DASHBOARD, I’M SO INTRIGUED WHAT IT WOULD SHOW, IF I’M RIGHT THE NUMBERS ARE EXTRAORDINARY THAT PALO ALTO BLOCKS EVERY DAY 31 BILLION CYBERATTACKS SO WHAT WOULD THE TRANSPARENCY LOOK LIKE? WENDI: YOU’RE RIGHT, ONE STATISTIC THAT’S MORE STAGGERING IS UP TO NINE MILLION OF THOSE EVERY DAY ARE BRAND-NEW AND HAVE NEVER BEEN SEEN BEFORE. SO WHAT WE ENCOURAGE THE
DASHBOARD TO LOOK LIKE IS FOCUS ON THE TIME TO DETECT AND TIME TO RESPOND. WE WORK EVERY DAY WITH ORGANIZATIONS AROUND THE WORLD TO DRIVE THOSE TIMES DOWN AND IN ONE ORGANIZATION WE RECENTLY WORKED WITH THEY TOOK THAT MEANTIME TO RESPOND FROM THREE WEEKS DOWN TO 19 MINUTES AND THAT TIME MATTERS WHEN YOU CAN GET IT DOWN INTO A NUMBER OF MINUTES, YOU’RE NOW CHANGING AN OUTCOME BECAUSE THAT ATTACK CAN NO LONGER BE SUCCESSFUL. CAROLINE: THE COMMITTEE ON HOMELAND SECURITY CALLS THIS DISCUSSION INNOVATION NATION AND LEVERAGING TECHNOLOGY TO SECURE CYBERSPACE. THE INNOVATION, IS IT ALL ABOUT A.I. AT THE MOMENT, WENDI? WENDI: IT’S CERTAINLY A HUGE PART OF IT.
WE AT PALO ALTO NETWORKS SPENT $1 MILLION ALONE IN R&D AND MOST OF IT FOCUSED ON A.I. AND WE’RE LOOKING AT HOW TO USE A.I. TO TURBOCHARGE DEFENSES AND MAKE SURE WE’RE DRIVING THE TIMES DOWN AND ORGANIZATIONS AROUND THE WORLD ARE IMPLEMENTING A.I. SECURELY. ED: IN THE BROADER THEATER OF
DEFENSE TECHNOLOGY WE TALK ABOUT HOW THE BRIGHT SECTOR AND PUBLIC SECTOR WORK TOGETHER, FOR EXAMPLE, DIFFERENT PRIVATE ORGANIZATIONS AND THE HARDWARE SIDE AND SOFTWARE WILL WORK WITH THE NATIONAL DEFENSE APPARATUS AND HOW DOES IT WORK IN THE SOFTWARE CYBERSECURITY SPACE AS A COALITION OF PRIVATE COMPANIES AND GOVERNMENT ENTITIES? WENDI: WHAT IS CRITICAL IS THOSE PARTNERSHIPS REMAIN AS STRONG AS EVER BETWEEN THE GOVERNMENT AND CIVILIAN ORGANIZATIONS. WHAT WE’RE FOCUSED ON IS HOW TO PROVIDE ACTIONABLE DATA AND INSIGHTS INTO OUR GOVERNMENT PARTNERS AND AGENCIES TO MAKE SURE THEY CAN CONTINUE THE DEFENSE OF THE COUNTRY. CAROLINE: WHAT ARE THE MAIN RISKS THEY CURRENTLY FEND OFF, FOR LAYMEN SUCH AS MYSELF, IT’S STILL PHISHING THAT’S PURPOSESFUL SINCE A.I. HAS COME ON THE SCENE BUT WHERE IS IT COMING FROM? WENDI: GEN A.I. HAS MADE IT LESS OF A BARRIER TO ENTRY AND WE’RE SEEING ATTACKS THROUGHOUT THE WORLD CERTAINLY FROM OUR ADVERSARIES IN COUNTRIES LIKE CHINA AND RUSSIA THAT CONTINUE TO OCCUR. WE’RE FOCUSED ON HOW TO MAKE
SURE ORGANIZATIONS WE WORK WITH CAN DEFEND THOSE AND DETECT THEM WITHIN SECONDS IDEALLY AND THEN RESPOND AND CONTAIN THEM WITHIN MINUTES. ED: IF THERE’S ONE MESSAGE YOU WANT TO GET ACROSS TO THOSE COMMITTEE MEMBERS TODAY OR YOU’LL CHALLENGE THEM ON THEM, WHAT IS IT? WENDI: A. SIMPLE IS A KEY INVESTMENT AREA FOR US AS A COUNTRY AND ALL OF OUR ALLIES TO HAVE SUCCESSFUL DEFENSE. WE MUST BE ABLE TO TURBOCHARGE OUR DEFENSE WITH TECHNOLOGIES THAT FUEL THAT. CAROLINE: WENDI WHITMORE SO GLAD TO HAVE YOU AHEAD OF THAT TESTIMONY, PALOALTO NETWORKS. LET’S TALK ABOUT DEEP SEEK WHO SAID THEY UPGRADED THE A.I.
MODE TELL HAS AND HELPED PROPEL THE STARTUP TO GLOBAL PROMINENCE THIS YEAR AND DESCRIBED IT AS A MINOR TRIAL UPDATE AND SAID YOU CAN START USING IT POSTED IN A WE CHAT GROUP AND THE OFFICIALS DIDN’T RESPOND TO AN EMAIL SEEKING FURTHER COMMENT. ED? ED: WE’LL GET BACK TO HOW INVESTORS ARE PREPARING FOR NVIDIA’S EARNINGS LATER TODAY. A BIGGER CONVERSATION. THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: BACK TO EARNINGS. SALESFORCE TODAY, CUSTOMERS ARE PAYING FOR PRODUCTS AND LOOKING FOR THE $8 BILLION OF INFORMATICA.
AND AT A HIGH RATE MARKS THE SIXTH STRAIGHT PERIOD OF SLOWING SALES GROWTH. ED? ED: LET’S CHECK IN ON NVIDIA, A BIT FLAT POSTING EARNINGS AFTER THE MARKET. WE LOOK AT OUR COVERAGE OF SEMICONDUCTORS AND IT’S IMPORTANT TO CLARIFY FOR WALL STREET AND OUR AUDIENCE AND THOSE AT BLOOMBERG TECHNOLOGY THE SITUATION WITH AGE 20 IN CHINA. IN THE QUARTER NVIDIA TOOK A $5 BILLION IN THE WRITEDOWN OF THE ASSET TO SELL THAT PRODUCT INTO CHINA WHICH IT CAN’T SELL NOW INTO CHINA. IF YOU LOOK AT THE ESTIMATES FOR FISCAL SECOND QUARTER, THAT MAY NOT BE REFLECTED, THIS LOST REVENUE OPPORTUNITY BECAUSE OF THE CHINA SITUATION. >> THAT’S ABSOLUTELY RIGHT. IF YOU LOOK AT THE RECENT
WORDS, THEY TRIED TO FACTOR IN WHAT THE EFFECT MIGHT BE GOING FORWARD AND WOULD INDICATE THAT CONSENSUS, WHICH IS AT THE MOMENT IS $45.5 BILLION FOR THE QUARTER PROBABLY SHOULD BE $2 BILLION OR $3 BILLION LIGHTER THAN THAT MAYBE MORE SO DEPENDING HOW YOU SLICE AND DICE THAT CHINA REVENUE AND THAT’S SOMETHING PEOPLE NEED TO BE AWARE OF AS THEY LOOK AT THE NUMBERS WHEN THEY GET REPORTED LATER TODAY. CAROLINE: THE WORD I KEEP SEEING IS "NOISY." AND AS INVESTORS AND ED AND I EVERYBODY OURSELVES THROUGH WHAT THE NUMBERS HAVE TO SAY WHAT DOES JENSEN HAVE TO SAY? IAN: NOISY IS THE RIGHT WAY TO LOOK A AT IT AND THERE ARE THOSE OUT THERE SAYING LOOK, WE SHOULDN’T BE OVERINDEXING ON THIS BECAUSE NVIDIA HAS SO MUCH FUNDAMENTAL DEMAND AND IF IT JUST INCREASES PRODUCTION OF OTHER CHIPS FOR OTHER MARKETS AND THESE ARE MORE EXPENSIVE CHIPS, WE CAN MORE THAN MAKE UP FOR THIS. SO THERE’S KIND OF AN ONGOING
DEBATE AND THAT DEBATE, AS WE’VE JUST ESTABLISHED IS NOT RESULTING IN A LOT OF CLARITY IN FIRM FOUNDATIONS. ED: NVIDIA WILL LOOK AT ROBOTICS, HEALTH CARE, THE END RESULT OF LARGE LANGUAGE DEVELOPMENT BUT IN THE QUARTER GONE HE FLEW. >> THE WORLD AND DID A LOT OF DEALS, THE MIDDLE EAST OR THE GULF BEING ONE EXAMPLE. DO WE EXPECT HIM TO GIVE US A
REAL SENSE HOW MUCH MONEY THIS COMPANY IS MAKING FROM THOSE DEALS? IAN: A LOT OF THOSE ARE TENTATIVE, FUTURE UNDERSTANDING TYPE OF ARRANGEMENTS AND IT’S UNLIKELY HE’LL GIVE THOSE AS A SPECIFIC TARGET AND HE TENDS TO NOT WANT TO DO THAT FOR OBVIOUS REASONS. BUT YOU’RE RIGHT, HE WILL TALK IN BROAD TERMS ABOUT THE FUTURE OF A.I. AND HOW THAT’S GOING TO INCREASE GENERAL DEMAND FOR HIS PRODUCTS GOING FORWARD.
THE NEAR TERM IS PROBABLY GOING TO BE A LITTLE BIT MORE CHOPPY. CAROLINE: BLOOMBERG’S IAN KING, IT’S GOING TO BE BUSY. THANK YOU. TUNE IN LATER TODAY AS A SPECIAL EDITION OF "BLOOMBERG TECHNOLOGY" BREAKING DOWN EARNINGS WITH JENSEN WONG. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY, ED. ED: DON’T FORGET TO CHECK OUT THE PODCAST ON THE TERMINAL AS WELL AS ONLINE ON APPLE SPOTIFY AND IHEART. FROM NEW YORK CITY AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY."
2025-05-30 02:57
