SoftBank’s Purchase of Ampere, Future of Ed-Tech | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. >>7 LIVE FROM SAN FRANCISCO, I'M TIM STENOVEC AND THIS IS BLOOMBERG TECHNOLOGY. TODAY IS QUANTUM DAY. ED LUDLOW IS THERE. WE WILL HAVE THE MAIN TAKEAWAYS FROM THE CONFERENCE SO FAR AND WHAT TO EXPECT FROM TODAY. SOFTBANK IS ACQUIRING A CHIP DESIGNER AMPYRA -- AMPERE FOR $6 BILLION.
WE WILL SIT DOWN WITH THE CEO TO LEARN MORE ABOUT THE DEAL. CAMPUSES OF FOR-PROFIT COLLEGES RAISED MONEY, THE FOUNDER WILL JOIN US ON OF THE FUTURE OF ED TECH. A CHECK OF THE MARKETS AND WE ARE SEEING GREEN ACROSS THE SCREEN. IT WAS THE BEST FED DAY GOING BACK TO JULY. WE GOT SOME SURPRISINGLY STRONG HOUSING DATA.
65 STOCKS AND THE NASDAQ 100 MOVING HIGHER. OFF THE BEST LEVELS OF THE DAY SO FAR, BUT STILL IN THE GREEN. ONE OF THE STOCKS HELPING TO PUT -- PUSH THE NASDAQ 100 HIGHER INCLUDING META PLATFORMS. THEY WILL ROLLOUT META AI ACROSS 41 COUNTRIES IN EUROPE THIS WEEK. IT WILL ALSO BE ROLLED OUT ACROSS 21 OVERSEAS TERRITORIES AND AVAILABLE IN SIX EUROPEAN LANGUAGES. ACROSS FACEBOOK, INSTAGRAM, WHATSAPP, AND MESSENGER.
ALSO WATCHING SHARES OF INTEL. DOWN ABOUT 0.7%. THE COMPANY HAS PITCHED TO MAJOR U.S. SHARE MAKERS JUST CHIPMAKERS TO OPERATE.
NVIDIA IS HIRED TODAY AS THE COMPANY CONTINUES ITS CONFERENCE IN SAN JOSE TODAY. NVIDIA SHARES HIGHER BY 1.3%. THAT IS WHERE WE GO NOW LIVE FROM THE DCC EVENT. ED LUDLOW JOINING US. I WANT YOU TO SET THE SCENE BUT I WANT YOU TO CLEAR SOMETHING UP BECAUSE THERE IS LOTS OF CHATTER ABOUT NVIDIA IN THE CONTEXT OF MONEY BEING SPENT IN THE U.S. WHAT IS GOING ON? ED: IT IS BASED ON AN INTERVIEW THAT THE CEO GAVE THE FINANCIAL TIMES. WHAT HE IS QUOTED AS SAYING IS THAT NVIDIA WILL PROCURE HALF $1 TRILLION WORTH OF ELECTRONICS IN THE NEXT FOUR OR FIVE YEARS.
WHAT HE IS NOT SAYING IS THAT IS CAPITAL EXPENDITURES. THIS IS A COMPANY THAT HAS 70% MARKET SHARE IN THE MARKET FOR AI ACCELERATORS, HIGH-PERFORMANCE GPU'S. HE SPENT A LOT OF TIME YESTERDAY EXPLAINING THE MECHANICS OF THAT, WHEN YOU BUILD A DATA CENTER FROM SCRATCH, ALL YOU UPGRADE IS TECHNOLOGY. THAT IS A HUNDREDS OF BILLIONS OF DOLLARS PROJECT.
INEVITABLY YOU ARE GOING TO HAVE TO PAY TSMC TO MANUFACTURE THE CHIPS, YOU HAVE TO WORK ON THE SERVER ASSEMBLY AND PACKAGING. COMPANIES ARE BEING CREATED BECAUSE OF WHAT NVIDIA IS DOING IN THE CONTEXT OF IT CALLING ITSELF AN AI FACTORY COMPANY. TIM: AI INFRASTRUCTURE IN AI FAMILY. TODAY IS QUANTUM DAY. WHAT IS GOING ON?
ED: CORRECT. EXACTLY THE SAME POINT AS WITH AI DATA CENTERS. IT DOES NOT MAKE QUANTUM COMPUTERS. IT SELLS EXISTING TECHNOLOGY TO THE QUANTUM COMPUTING INDUSTRY TO MAKE THEIR OWN MACHINES BETTER. YOU CAN USE AN AI SUPERCOMPUTER FOR ERROR CORRECTION, BUT THEY ARE ESSENTIALLY TWO DISTINCT FIELDS. QUANTUM COMPUTERS WE ARE ALL HERE TODAY BECAUSE OF WHAT HAPPENED IN JANUARY.
JENSEN HUANG WAS ASKED ABOUT QUANTUM COMPUTERS AND HE SAID THE QUANTUM COMPUTERS ARE A DECADE AWAY FROM BEING USEFUL. JENSEN WILL BE ON STAGE WITH ALL OF THE QUANTUM COMPUTING CEOS AND MAYBE WE WILL GET AN UPDATE ON HOW HE FEELS ON QUANTUM COMPUTING. FROM NVIDIA'S PERSPECTIVE IT IS AN ARM OF RESEARCH WHERE THEY SELL EXISTING TECH TO THAT INDUSTRY, THEY DO NOT MAKE ONTO HIM COMPUTERS. TIM:
ED LUDLOW AT NVIDIA GDC, GOOD TO SEE YOU. WE WILL SEE YOU A LITTLE LATER. STAY WITH US BECAUSE BLOOMBERG THIS AFTERNOON HAS A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY ON QUANTUM COMPUTING. ED LUDLOW WILL RETURN AT 4:30 P.M. EASTERN. FOR MORE ON THE BROADER TECH MARKET AND NVIDIA, LET'S BRING IN SYLVIA. I'M WONDERING HOW YOU ARE
WATCHING EVERYTHING HAPPENING AT NVIDIA GTC. YOU DO ARGUE NVIDIA IS A BUY RIGHT NOW OFF OF ITS EYES. HOW ARE YOU WATCHING EVERYTHING FROM SAN JOSE THIS WEEK? SYLVIA: GOOD MORNING AND THANKS FOR HAVING ME HERE.
IT IS ALL VERY EXCITING. WHAT WE HAVE BEEN SEEING OVER THE LAST YEAR OR TWO IS SO MUCH NEWS ABOUT THE GROWTH OF AI, THE POTENTIAL FOR QUANTUM COMPUTING, THE BUILD OUT OF SIX G AND WHO IS THE STAR OF THAT SHOW. AT THESE LEVELS, I LOVE THE STOCK AND THE COMPANY. YOU ARE TALKING ABOUT A FOURTH INDUSTRIAL REVOLUTION, COMPOUNDED INDUSTRIAL GROWTH RATE. AS AN INVESTOR, I'M PATIENT WITH TECHNOLOGY, IT TAKES TIME FOR THINGS TO PLAY OUT, BUT I WANT TO GET IN EARLY. THIS IS STILL FIRST'S, BUT IT IS TRUE AS WE GET MORE NEWS FROM THIS CONFERENCE. TIM: DO YOU THINK NVIDIA INVESTORS
HAVE IT WRONG RIGHT NOW? DOES THE MARKET HAVE IT WRONG? TO WHAT EXTENT IS THE STOCK UNDERVALUED RIGHT NOW? SYLVIA: WE ALWAYS SAY THAT, BUT THE MARKET IS A LITTLE BIT EMOTIONAL. WHEN PEOPLE PANIC, THEY SELL THE MAG SEVEN OR THE HIGHFLYING NAMES THAT HAVE DONE WELL FOR THAT YEAR. ALL THESE DIFFERENT THINGS. WHEN WE HAVE FEAR AND PANIC ABOUT TARIFFS, PEOPLE TEND TO RUN FOR THE HILLS. WE THINK THERE IS A LOT OF LIQUIDITY ON THE SIDELINES, CONSUMER SENTIMENT THAT IS UNEASY. WHEN THE TARIFFS SHAKE OUT AND WE GET THE TAILWINDS OF LOWER REGULATION AND TAX POLICY, THESE ARE THE NAMES THAT RALLY FIRST. IT IS KIND OF LIKE THE
BY THE DIPS AND SELL THE RIPS OR HOLD ONTO THE RIPS SCENARIO. TIM: WE ARE OFFICIALLY IN CORRECTION TERRITORY. YOU SAID WHEN WE GET THE REGULATORY CLARITY, WHEN WE GET TAX CUTS, WHEN THE TARIFFS STUFF TAKES OUT. HOW ARE YOU SO CERTAIN IT WILL
SHAKE OUT? SYLVIA: THESE THINGS TAKE TIME AND THE ONLY INFORMATION WE HAVE IS THE INFORMATION WE GET FROM WASHINGTON. TARIFF POLY IS ENACTED BECAUSE OF THESE ISSUES, THESE OTHER TYPES OF THINGS THAT HAVE TO BE SORTED OUT. WE HAVE INFORMATION THAT THE PRESIDENT PLANS TO CUT TAXES. IT IS A FAIR QUESTION.
WE HAVE TO SEE THESE THINGS PAN OUT. EVEN IF NOTHING HAPPENS, WE HAVE AN ECONOMY THAT IS STILL GROWING. POSITIVE GDP IS A LITTLE BIT LOWER. EVEN UP TO 10% BY SOME ANALYSTS ESTIMATES.
THERE ARE STRONG BALANCE SHEETS. WHAT WE ARE HEARING OUT OF CORPORATE AMERICA IS THERE IS STILL CAPEX. MAYBE YOU DON'T GET HYPERBOLIC GROWTH BUT WHEN YOU HAVE THESE THINGS LIKE QUANTUM COMPUTING AND AI, I THINK IT IS WORTH TAKING A RISK FOR LONG-TERM RETURNS. TIM: BEFORE WE LET YOU GO, 20 SECONDS ON BROADCOM. SYLVIA: I THINK BROADCOM WILL BE ONE OF THE LEADERS IN AI. NVIDIA IS THE POSTER CHILD.
THEY ARE IN SOFTWARE, VM SALES, 50 7% GROWTH IN AI REVENUE FOR THE LAST EARNINGS CALL. I THINK THIS IS THE NAME THAT DID SELLOFF A LITTLE BIT AND MIGHT BE GOOD TO GET IN FOR THE LONG RUN. TIM: ALWAYS GOOD TO SEE YOU, SYLVIA. THANKS FOR JOINING US. COMING UP, WE WILL TALK ABOUT SOFTBANK'S SIX POINT FIVE BILLION DOLLARS ACQUISITION CHIP DESIGNER OF AMPERE COMPUTING. THE CEO RENÉE JAMES JOINS US NEXT. THIS IS BLOOMBERG. TIM: SOFTBANK'S SIX POINT 5 BILLION DOLLAR ACQUISITION OF AMPERE COMPUTING IS HIGHLIGHTING HOW THE INCREASED DEMAND FOR COMPUTE IS CRASHING UP AGAINST INFRASTRUCTURE COMPLAINTS.
THE CEO OF AMPERE JOINS US TO TALK ABOUT THIS DEAL. CONGRATULATIONS ON THIS. RENEE: THANK YOU. TIM: HOW ARE YOU FEELING THIS MORNING? RENEE: I THINK IT HASN'T SUNK IN. I'M OF COURSE THRILLED. WE ARE A GROUP OF INVENTORS AND INNOVATORS ABOUT THE VISION FOR AI AND THE ABILITY TO CONTINUE INNOVATION AS PART OF SOFTBANK. TIM: WHAT IS THAT VISION? HOW DO YOU FIT INTO THAT VISION? WHAT IS THAT VISION? RENEE: EVEN THE STARGATE ANNOUNCEMENT THAT WAS RECENTLY DONE IN THE WHITE HOUSE ABOUT AI AND THE ROLE AI WILL PLAY IN EVERYBODY'S LIVES. BUILDING SUPER CHIPS.
WE ARE THE LEADING SUPPLIER OF HIGH-PERFORMANCE, VERY POWER EFFICIENT PROCESSORS FOR DATA CENTERS. IT IS A VERY SYNERGISTIC FOR US TO JOIN INTO THE SOFTBANK FAMILY AND CONTINUE WORKING ON THE ROADMAP THAT WE HAVE WHICH INCLUDES AI ACCELERATION. I'M VERY EXCITED ABOUT THAT. TIM: WHAT HAPPENS TO YOUR EXISTING CUSTOMERS AND PRODUCT LINE WHEN THIS DEAL DOES CLOSE IN THE SECOND HALF OF THE YEAR? RENEE: WE CONTINUE AS IS WITH THE PRODUCT LINE WE HAVE WORKED WITH FOR THE LAST EIGHT YEARS. WE HAVE ANNOUNCED WE HAVE AI ACCELERATION AS PART OF OUR PRODUCTS. WE WILL SEE COMPUTE AND AI'S TO COME TOGETHER AS INFERENCE BECOMES THE LARGER PART OF THE MARKET. OUR CUSTOMERS CONTINUE WITH US. HOPEFULLY WE WILL BE EXCITED
ABOUT A BROADER SET OF PRODUCTS FROM US. TIM: YOU RECOGNIZED SOMETHING REALLY EARLY ON THAT THERE IS GOING TO BE THIS NEED FOR SUPER HIGH PERFORMANCE THAT REQUIRES LOWER POWER. WHEN YOU LOOK ACROSS THE LANDSCAPE RIGHT NOW, WHAT DO YOU SEE THAT OTHER PEOPLE DON'T SEE RIGHT NOW? RENEE: AS YOU KNOW, I HAVE BEEN DOING THIS A LONG TIME. POWER HAS ALWAYS BEEN A VARIABLE IN SEMI CONDUCTORS FOR HOW YOU GET PERFORMANCE AND SO ONE OF THE THINGS I DIDN'T GET TO WORK ON IN MY LONG CAREER AT INTEL IS HOW TO DO THE HIGHEST PERFORMANCE POSSIBLE IN THE MOVE -- MOST CONSTRAINED POWER.
THE THESIS WAS WE KNEW POWER WOULD BE THE BIGGEST LIMIT TO GROWTH LONG-TERM. YOU NEED INCREASING AMOUNTS OF COMPUTE. TAKING NOTHING AWAY FROM THAT. INCLUDING THIS MASSIVE GROWTH IN AI COMPUTE. THOSE TWO THINGS ARE TAKING A TREMENDOUS AMOUNT OF GROWTH AND POWER AND AI IS A 10 XFONE GROWTH AND POWER REQUIRED.
ONE OF THE THINGS WE SHOULD PIONEER'S EFFICIENCY. WE HAVE PRESERVED THAT EFFICIENCY AND WE HAVE USED OUR EXPERIENCE IN HIGH-PERFORMANCE AND BUILDING HIGH-PERFORMANCE MICROPROCESSORS TO GET US TO THIS LEVEL. TIM: WE HAVE HEARD A LOT FROM JENSEN THIS WEEK ABOUT PHYSICAL AI. I'M WONDERING WHEN YOU THINK ABOUT THE COMPUTE THAT WILL BE NEEDED IN THE YEARS TO COME, WHAT DOES THAT WORLD ACTUALLY LOOK LIKE FOR THE NORMAL PERSON? WHAT ARE THE PRODUCTS, SERVICES, AND TOOLS THAT WILL REQUIRE THIS COMPUTE? RENEE: THIS IS FUNNY. EVERY WAVE OF COMPUTING WHETHER IT WAS THE WAVE OF PC'S, WE THOUGHT THIS IS IT. YOU ARE GOING TO HAVE A COMPUTER IN YOUR POCKET.
I THINK THIS NEXT PHASE, WE BEGIN TO CREST OVER INTO INTEGRATED COMPUTING IN EVERYTHING AND IT REALLY IS TRANSPARENT. IT IS A BACKGROUND ACTIVITY WHETHER IT IS ROBOTIC OR NOT, ALL OF YOUR APPLIANCES ARE SMART NOW, YOUR CAR IS SMART. THAT EXPERIENCE OF COMPUTING THAT USED TO BE ISOLATED TO YOUR COMPUTER AND YOUR PHONE IS NOW INTEGRATED INTO YOUR LIFE. THIS IS WHY I'M VERY POSITIVE ON SEMI CONDUCTORS.
SEMI CONDUCTORS HAVE FUELED EVERY SINGLE ONE OF THESE WAVES OF GROWTH. THE BASE TECHNOLOGY TO GO INTO ANY KIND OF AI'S BASIC COMPUTATIONAL SEMI CONDUCTORS. THEY ARE ALWAYS CYCLICAL. WE DO SEE THESE DOWNTURNS. I'M VERY CONFIDENT WE HAVE ANOTHER GROWTH CYCLE AHEAD OF US. TIM:
AMPERE FOUNDER AND CEO RENÉE JAMES, THANKS SO MUCH FOR JOINING US ON WHAT IS CERTAINLY A REALLY BIG DAY. COMING UP, COMPANIES RACE TO ADAPT DEEPSEEK'S AI MODEL. WE HEAR FROM THE OLAI CEO ON THE CHALLENGES INVOLVED. THIS IS BLOOMBERG.
TIM: DEEPSEEK'S INNOVATIONS MADE RIPPLES ACROSS THE INDUSTRY WHEN IT PERFORMED BETTER THAN ITS COUNTERPARTS. CHINA AND MANY OTHER COMPANIES HAVE BEEN RACING TO INTEGRATE THAT MODEL ACROSS THE COUNTRY. >> I THINK CHINA HAD ITS CHATGPT MOMENT.
EVERYONE IS AWARE OF IT OVER THE CHINESE HOLIDAYS. EVERYONE IS TALKING ABOUT IT. THE CEOS CAME BACK TO WORK. PUT DEEPSEEK BACK TO WORK IN THE COMPANY. THEY FOUND OUT DEEPSEEK IS A FANTASTIC MODEL BUT IT DOESN'T HAVE THE USER INTERFACE.
TO BUILD APPLICATIONS AND MAKE IT USEFUL FOR FINANCE AND CUSTOMER SERVICE. WHAT 01.AI DID IS WE SAW DEEPSEEK HAS BEEN MAKING GREAT MOMENTUM AND WE DECIDED TO BUILD THAT SO DEEPSEEK CAN BE MADE USEFUL IN CORPORATIONS. WE ARE GETTING FANTASTIC RECEPTION IN CHINA AND ALSO IN HONG KONG. >> TELL US MORE ABOUT THAT LAUNCH.
>> WHAT WE TALKED ABOUT WAS MANY OF YOU HAVE DEEPSEEK NOW, ONE CEO FRIEND OF MINE ASKED HIS EMPLOYEES, WHAT DO YOU USE IT FOR? AND THE ANSWER WAS FORTUNE-TELLING. THAT IS A GREAT THING TO DRIVE FOR YOU BY THE WAY. BUT IT IS NOT REALLY DEEP INTO THE INDUSTRY, THE COMPANY. AND THE CRM DATABASES. THEY HAVE EMPLOYEE RECORDS. THEY WANTED IT TO BE KNOWLEDGEABLE. BLOOMBERG WOULD WANT A FINANCE MODEL KNOWLEDGEABLE.
OUR JOB IS TO REALLY BUILD THAT LAYER FOR THAT PURPOSE. THE WINDOWS LAYER, THE APPLICATION INTERFACES. WE WOULD LIKE TO THINK IT IS PROVIDING THAT LAYER FOR THE UNDERLYING MODEL. TIM: THAT WAS KAI-FU LEE, CEO OF 01.AI. WITH THE ADVENT OF THE AI BOOM, MANY OF THE MANUFACTURERS INVOLVED ARE BECOMING MONOPOLISTIC AND ONLY EVER-GROWING.
EVERY TIME YOU USE YOUR FAVORITE CHATBOT THEY ARE GETTING RICHER. PETER, EVERY TIME WE USE CHATGPT OR CLAUDE OR LAMA WE ARE MAKING A HANDFUL OF COMPANIES WEALTHIER. TAKE US THROUGH IT. >> OR EVEN DEEPSEEK FOR THAT MATTER, THEY ALSO USE THE SUPPLY CHAIN. WE TOOK A LOOK AT THIS UNUSUAL DOMINANCE WE HAVE SEEN IN THE SUPPLY OF AI TECHNOLOGIES, BEGINNING WITH NVIDIA PROBABLY THE HIGHEST PROFILE PLAYER IN THE SUPPLY CHAIN, BUT IT IS ALSO TSMC, THE COMPANY THAT MAKES THE CHIPS. THE COMPANY THAT MAKES THE HIGH-BANDWIDTH MEMORY AND THEN THE MAKER OF THESE LITHOGRAPHY MACHINES.
SO WHAT WE HAVE SEEN IS THIS CONSOLIDATION OF POWER IN THE AI SUPPLY CHAIN WITH THESE FOUR COMPANIES WHERE THEY WIELD TREMENDOUS POWER OVER HOW THEY ARE ABLE TO GET THESE TECHNOLOGIES AND DEPLOY THEM. THAT IS TRUE FOR THE HYPER SCALARS, BUT ALSO THE COMPANIES IN CHINA HAVE BEEN TRYING TO BUY THESE. THEY WANT TO BE ABLE TO GET THOSE CHIPS FROM THE COMPANIES TO BUILD THE AI MODELS THAT WILL BE MARKETED TO COMPANIES AND INDIVIDUALS. TIM: WHAT IS THE MOAT THESE COMPANIES HAVE? WHEN WE THINK ABOUT INNOVATION AND TECHNOLOGY WE THINK ABOUT IT FROM THE PERSPECTIVE OF MONEY, A RUSH OF COMPETITORS ARE GOING TO TRY TO DO THE SAME THING. WHAT IS THE MODE THEY HAVE? PETER: THAT IS AN IMPORTANT QUESTION. WHEN YOU LOOK AT MONOPOLIES
OVER TIME, THEY TEND TO LAST FOR A LONG TIME. I TRUST ALLEGATIONS, BUT THEY TEND TO LAST FOR A LONG PERIOD OF TIME AND THEY TEND TO FADE BECAUSE OF GOVERNMENT INTERVENTION. THESE AI DOMINATING PLAYERS THAT ARE EFFECTIVE ANOMALIES IN THEIR CATEGORIES, THEY HAVE ONLY BEEN IN PLAY FOR A VERY LIMITED AMOUNT OF TIME. TIM: BLOOMBERG'S PETER ELSTROM JOINING US FROM LONDON TODAY. COMING UP, WE ARE GOING BACK TO TIM: WELCOME BACK TO BLOOMBERG TECHNOLOGY, I'M TIM STENOVEC IN SAN FRANCISCO. LET'S GET A QUICK CHECK OF THE
MARKETS. WE DO SEE STOCKS UP AT THEIR BEST LEVELS OF THE DAY. WE DID SEE A LOWER OPEN BUT THEN WE GOT SOME SURPRISINGLY STRONG HOUSING DATA. JUST ABOUT 65 STOCKS IN THE NASDAQ 100 WERE MOVING HIGHER. I DO WANT TO CHECK IN ON A COUPLE OF INDIVIDUAL EQUITIES. THESE ARE SHARES LISTED IN THE U.S. THEY ERASED THOSE EARLIER
DECLINES. SALES DID MISS ESTIMATES FOR A THIRD CONSECUTIVE QUARTER BUT EARNINGS WERE BETTER THAN EXPECTED. LOOK AT TESLA. DOWN ABOUT 0.8%. IT IS RECALLING ALL CYBERTRUCK'S PRODUCED AND SOLD IN THE U.S.
IN THE PAST 15 MONTHS DUE TO A SAFETY ISSUE. THE COMPANY ESTIMATES 1% ARE AFFECTED. ED LUDLOW IS STANDING BY. ED: THERE IS SUCH A LARGE VOLUME OF NEWS AND DATA, IF YOU LOOK AT THE STOCK, THERE IS SKEPTICISM IN THE MARKET ABOUT THE UNDERSTANDING FOR DEMAND LONG-TERM. I HAVE A BRILLIANT GUEST WITH ME. THE RESEARCH DIRECTOR AT ONVIA. THE STATISTIC THAT CAUGHT MY EYE IS THAT COMPUTE DEMAND IS 100 X TODAY. 100 X WAS ONE YEAR AGO.
TOO MANY PEOPLE, THAT DOESN'T MEAN ANYTHING, BUT THE WAY IT WAS EXPLAINED TO ME BUYING NVIDIA'S THEY COUNTED ALL THE TOKENS IN A TOKENIZATION CONTEXT TO BASICALLY TAKE A TOKEN, THREE BYTES OF DATA AND YOU SAY WHAT OUR COMPANIES BE IN THE HYPER SCALARS DOING RIGHT NOW? TODAY IT WAS 100X MORE THAN IT WAS A YEAR AGO. HOW DO YOU MODEL THAT? IT IS A FORWARD-LOOKING METRIC. >> THERE ARE TWO WAYS TO DO THAT. IT IS COMPLEX AND THAT IS WHY PEOPLE STRUGGLE. WHAT THEY TRIED TO FIND OUT IS HOW GOOD A MODEL CAN BEHAVE AND THEY FOUND OUT CERTAIN MODELS BEHAVE BETTER. IT IS THE EXTRA TOKENS, THE EXTRA COMPUTING SO MY THING GOT VERY EXCELLENT RESULTS FROM THAT.
MY TEAM IN CHINA. TIM: YOU ARE GOING TO BRING US TO DEEPSEEK. >> MY TEAM FOUND THAT DEEPSEEK BOUGHT A HUGE AMOUNT OF GPU'S. WE HAVE GIVEN THAT INFORMATION TO OUR CLIENTS.
THEY RELEASED THEIR PAPER. WHY DID YOU TELL US THAT BOUGHT SO MANY GPU'S? I HAD THE RECEIPTS. WE KNOW NOW THEY BOUGHT THEM BECAUSE THE INFERENCE IS SO COMPUTE. IT IS SO MUCH MORE THAN A TRADITIONAL KNOWLEDGE MODEL. IT IS BETTER FOR US TO TRAIN QUICKLY AND SIMPLY AND HAVE A BETTER OUTPUT THROUGH MORE TOKENS AND MORE REASONING.
THAT TOKENIZATION DURING THE INFERENCE STAGE. IF YOU CAN GET THE RIGHT ANSWER ONCE WITH ONE QUESTION THAT STOPS YOU, YOU MIGHT HAVE HAD A GOOD ANSWER FROM CHATGPT BUT YOU MIGHT HAVE NEEDED TO ASK 100 QUESTIONS. IF YOU USE THE REASONING MODEL YOU END UP GETTING THE ANSWER STRAIGHTAWAY. ED: THIS IS THE CORE OF JENSEN HUANG'S ARGUMENT.
THE FIXATION WAS ON H 100 AND TRAINING THE NEXT FRONTIER MODEL. THE WORLD IS VERY DIFFERENT NOW. WHAT JENSEN HUANG DID OUTLINE WAS FOR GENERATIONS WORTH OF HARDWARE. ELECTRONICS COMPANIES , WHAT DID YOU MAKE OF THAT? >> I DISAGREE ELECTRONICS COMPANIES DON'T SHARE THE ROADMAP. I THINK THEY ARE VERY TRANSPARENT. I COME FROM INTEL. WE HAVE ALWAYS SHARED A ROADMAP
PRETTY BROADLY. IT IS A VERY BIG DIFFERENCE. WHAT IS AMAZING IS THE EXTREME LASER FOCUS OF NVIDIA. THIS INCREDIBLE CULTURE AND THEY UNDERSTAND THE SERVICES. THEY HAVE A STRATEGY AND THEY UNDERSTAND THAT THE WORLD IS GETTING TOKENIZED. THEY ARE LASER FOCUSED ON HOW DO WE MAKE THE MOST OFFICIAL TOKEN? ED: THE ANALOGY JENSEN HUANG GAVE WAS LOUIS VUITTON BAGS. LOUIS VUITTON COMES OUT WITH ITS 2025 BAG BUT IT DOESN'T TELL YOU WHAT IT WILL BE DOING IN 2028, 2029.
WHETHER YOU AGREE WITH THAT ANALOGY OR NOT REMAINS TO BE SEEN. WHAT IS DIFFERENT IS YOU GET A SENSE NVIDIA HAS MOVED BEYOND THE HYPER SCALARS. WHAT DO YOU SEE? >> LET ME JUST KIND OF TOUCH ON ENTERPRISES FOR A SECOND.
ENTERPRISES NEED PREDICTABILITY. THEY HAVE BEEN LOOKING FOR MORE PARTNERS TO BE HONEST TO GIVE THEM A ROADMAP TO EXPLAIN THINGS AND DELIVER. ED: DOES IT PROTECT THE ENTERPRISE'S TO COMMIT SPENDING? >> THAT IS EXACTLY WHAT WE HAVE GOT INTO. THE INVESTMENTS THESE DAYS ARE HUGE.
WHAT YOU NEED TO MAKE IT IN THE ENTERPRISE IS IT IS PURCHASED THROUGH CHANNEL PARTNERS. IF YOU ZOOM INTO JUST THE ENTERPRISE, IT IS VIRTUALLY EVERY TRANSACTION. YOU REALLY NEED TO HAVE TRUST IN PARTNERS. YOU NEED TO HAVE TRUST THAT THERE WILL BE PEOPLE WHO HELP YOU. NVIDIA MAY MAKE IT GPU BUT THEY
ARE WORKING WITH RECRUITING VENDORS ABOUT HOW THE COOL PLATE WILL LOOK LIKE. THAT IS IMPRESSIVE SO WHEN YOU GO TO THE SOFTWARE LAYER, YOU WANT TO GET THE VENDORS BEHIND YOU AND YOU WANT USERS WHO MIGHT NOT BE EXPERTS. BY HAVING A PLATFORM, BY HAVING MODELS, IT MEANS THE DIFFERENT LEVEL OF SKILLS PEOPLE CAN WORK WITH YOU.
SOME ENTERPRISES LIKE TO HAVE A PARTNER. ED: WE ARE SHORT ON TIME AND I HAVE TO MENTION QUANTUM DATA. THAT IS WHY WE ARE HERE IN THIS ROOM. NVIDIA DOES NOT MAKE QUANTUM. HOW DO YOU APPROACH IT. >> I WILL TELL YOU ONE VERY QUICK STORY. CPUS ARE A BIG PART OF IT.
WHEN THE FIRST CENTER WAS LAUNCHED. , WE WERE VERY WORRIED ABOUT IT. AT THE TIME, AND LACK PERFORMANCE. IT TOOK ANOTHER FIVE YEARS FOR PERFORMANCE TO HAPPEN. IT LACKED, IT TOOK ANOTHER FIVE YEARS. FOR CODE TO BE REWRITTEN TO WORK.
WE ARE THE PLACE ARM WAS IN 2011. WEEDING ANOTHER FIVE YEARS TO GET TO WHERE IT IS HIGHLY RELIABLE. THERE MIGHT BE TRUTH BEHIND THESE THINGS.
I THINK JENSEN THINKS ABOUT IT VERY PRACTICALLY. ED: NVIDIA'S ARGUMENT WOULD BE THE AI SUPERCOMPUTER TECHNOLOGY. GREAT TO CATCH UP HERE. TIM, BACK TO YOU IN SF. TIM:
GREAT STUFF, BIG THANK YOU TO ED LUDLOW. TUNE IN AT 4:30 P.M. INVESTOR JOE LINES DALE AND A CEO WILL JOIN US TO DISCUSS THE START OF SERIES B FUNDING ROUND IN CHANGES TO HIGHER ED. THIS IS BLOOMBERG. TUNE IN LATER TODAY FOR A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY ON QUANTUM COMPUTING. THIS IS BLOOMBERG. ED TECH HAS RAISED $43 MILLION, THE COMPANY AIMS TO GIVE STUDENTS A MORE AFFORDABLE PATH TO A COLLEGE DEGREE. BLOOMBERG IS ONE OF THE FIVE LARGEST SHAREHOLDERS, WE SHOULD NOTE. JOINING US NOW IS THE CEO AND
ONE OF ITS INVESTORS. I WANT TO START WITH YOU BECAUSE YOU STUDIED AEROSPACE ENGINEERING IN THE U.K. WAS IT YOUR EXPERIENCE WITH EDUCATION THAT LED YOU TO START THIS COMPANY? >> THANKS FOR HAVING ME. DEFINITELY. BEFORE COLLEGE I WAS HOMESCHOOLED UNTIL HIGH SCHOOL. MY FRATERNAL GRANDFATHER WAS A COLLEGE DEAN. MY MOTHER IS A COLLEGE DEAN.
PROBABLY I WAS BRAINWASHED FROM BIRTH TO GET REALLY EXCITED ABOUT EDUCATION. TIM: A SCHOOL'S REPUTATION WHEN IT COMES TO ACADEMICS IS EVERYTHING. HAVE YOU BUILD THAT REPUTATION IN THE EARLY YEARS AND WHEN FOR-PROFIT SCHOOLS HAVE HAD SUCH A CHECKERED PAST? >> IT IS ABOUT ELITE EDUCATION FOR ALL AND THAT IS WHAT WE ARE DOING FOR CAMPUS. WE ARE BUILDING A NEW KIND OF
TWO-YEAR COLLEGE WHERE STUDENTS GET TO LEARN FROM THE BEST PROFESSORS FROM THE TOP SCHOOLS IN THE COUNTRY, PRINCETON, STANFORD, UCLA AND THEY ARE NOT JUST LEARNING THEORETICAL ANNOUNCEMENTS. THEN THEY TRANSFERRED TO THE FOUR-YEAR SCHOOL TO COMPLETE THEIR FOUR-YEAR DEGREE WITH NO DEBT. THAT IS THE KEY. STUDENTS TAKING OUT 200,000 DOLLAR LOANS. THEY CAN'T EVEN GET JOBS. TIM: I WANT TO BRING JOE INTO THE CONVERSATION.
THIS IS NOT YOUR FIRST FORAY INTO EDUCATION. WHAT IN YOUR VIEW IS WRONG WITH HIGHER EDUCATION? YOU WENT TO STANFORD AND SEEM TO BE DOING PRETTY WELL. [LAUGHTER] >> OF COURSE THERE ARE A LOT OF INJURIES WITH THE TOP OF OUR EDUCATION WHICH IS WHAT THE UNIVERSITY OF AUSTIN IS FOCUSED ON. I WOULD ARGUE OUR COMMUNITY COLLEGES ARE EVEN MORE TROUBLED, MANY HAVE LOW GRADUATION RATES, A LOT OF THEM ARE FOCUSED MORE ON IDEOLOGY THAN SKILLS. WHAT CAMPUS REPRESENTS TO ME IS EXCELLENCE. AI IS CHANGING EVERYTHING AND WE NEED TO GET THE RIGHT SKILLS AND THE RIGHT FRAMEWORK TO MILLIONS OF YOUNG ADULTS.
I'M HOPING THEY CAN SCALE THIS TO ONE MILLION STUDENTS AND HELP ALL OF THOSE LIVE BETTER LIVES AND EXCEED -- SUCCEED MORE. >> LET'S GO. >> WHAT IS YOUR INPUT ON THE CURRICULUM? YOU ARE HIRING A LOT OF FOLKS, YOUR PORTFOLIO COMPANIES ARE HIRING A LOT OF FOLKS. THEY HAVE SKILLS THAT ARE ARGUABLY NOT TAUGHT IN SOME SCHOOLS AND UNIVERSITIES. >> MY PUSH FROM MY SIDE IS LET'S ADD SOME MORE COURSES THAT WE NEED TO KNOW FROM AI. PEOPLE FROM SAM ALTMAN ARE
INVOLVED AS WELL. THE IDEA IS HOW CAN WE HELP HUNDREDS OF THOUSANDS OF YOUNG AMERICANS OBTAIN THE SKILLS NECESSARY TO WORK IN AN ECONOMY WHERE AI IS GOING TO BE INVOLVED A LOT MORE. THE FOCUS TODAY IS ON A LOT OF SKILLS IN TODAY'S ECONOMY. TIM: YOU ARE TALKING ABOUT THE COST OF COLLEGE GETTING OUT OF CONTROL, SHARING PRETTY STAGGERING STATISTICS. NOBODY ARGUES WITH THAT. HOW DO YOU MAKE THE ECONOMICS OF CAMPUS WORK WHEN COMMUNITY COLLEGES AND JUNIOR COLLEGES ARE MORE EXPENSIVE? >> THE TRADITIONAL COMMUNITY COLLEGE HAS AN AVERAGE COMPLETION RATE OF 27%. YOU EARN LESS TUITION REVENUE PER STUDENT.
YOU EARN MORE TUITION REVENUE. THAT HAS LED TO THE BEAUTIFUL SYMMETRY IN TERMS OF WHAT IS BEST FOR THE STUDENT, WHAT IS BEST FOR CAMPUS AND OUR COUNTRY, DRIVING UP GRADUATION RATES IS HOW TO MAKE IT WORK. TIM: JOE, I'M CURIOUS ABOUT YOUR VIEW OF THE FEDERAL GOVERNMENT'S INVOLVEMENT IN EDUCATION. THE GOVERNMENT HAS FROZEN,
SUSPENDED OR CUT MORE THAN A BILLION DOLLARS FROM UNIVERSITIES THIS WEEK. I'M WONDERING IS AN ENTREPRENEUR, AS SOMEONE WHO HAS HIRED A LOT OF FOLKS, SOMEBODY WHO HAS FOUNDED SUCCESSFUL COMPANIES, ARE YOU CONCERNED ABOUT THE AMERICAN TALENT PIPELINE BEING CUT OFF AS A RESULT OF THESE CUTS? >> I'M MORE CONCERNED ABOUT MAKING SURE WE SPEND MONEY EFFECTIVELY AND EFFICIENTLY. A LOT OF THE POLICY I'M PUSHING COMING FROM MY SIDE OF THINGS IS HOW WE MAKE THIS SPEND ACCOUNTABLE. IF YOU ARE GOING TO DO VOCATIONAL EDUCATION , IF YOU SAY THIS MONEY IS GOING TO BE TIED TO RESULTS, STUDENTS COMING OUT OF OCCASIONAL RESULTS. IT IS NOT REALLY PLAYING THE IDEOLOGICAL GAMES. PEOPLE INVOLVED FROM THE LEFT, THE RIGHT, BLACK, WHITE, HISPANIC, EVERYTHING. IT IS ABOUT GETTING THE RESULTS
FOR A VERY SMALL SPEND. I THINK THIS WILL REMAIN POPULAR REGARDLESS OF SOME OF THE OTHER FIGHTS GOING ON. TIM: HOW DO YOU WATCH WHAT IS HAPPENING IN THE FEDERAL GOVERNMENT? PRESIDENT TRUMP IS EXPECTED TO SIGN AN EXECUTIVE ACTION THAT ASKS OFFICIALS TO DISMANTLE THE DEPARTMENT OF EDUCATION. PELL GRANT'S ARE ADMINISTERED BY THE DEPARTMENT OF EDUCATION. >> THE VAST MAJORITY OF OUR STUDENTS USE PELL GRANT TO COVER THEIR TUITION. PELL GRANT IS NOT GOING AWAY EVEN IF THE DEPARTMENT OF EDUCATION IS DISMANTLED.
THESE KEY PROGRAMS WILL BE SPLIT ACROSS TREASURY OR THE IRS OR OTHER ORGANIZATIONS. IN WASHINGTON, EVERYBODY IS LOOKING AT THIS AND SAYING WE NEED TO BE MORE ACCOUNTABLE AND MORE EFFICIENT WITH TAXPAYER DOLLARS. SECRETARY MCMAHON HAS BEEN IN FOR A COUPLE OF WEEKS BUT WE HAVE TO LET THIS ONE PLAY OUT. TIM: JOE, LAST ONE TO YOU SPEAKING OF EFFICIENCIES, YOU HAVE BEEN SUPPORTIVE OF DOGE. A FEDERAL JUDGE RULED THAT THE ACTIONS TO SHUTDOWN DOWN USAID LIKELY VIOLATED THE CONSTITUTION IN MULTIPLE WAYS. ARE YOU CONCERNED THAT THE COURTS ARE GOING TO PREVENT HIM DOING THE CUTS? >> THAT PARTICULAR RULING WAS SO RIDICULOUS.
THE RULING WAS SO MISGUIDED. USAID WAS CREATED BY EXECUTIVE ACTION. IT IS A GREAT EXAMPLE OF COMPLETE WASTE. THERE ARE ALL SORTS OF SCAMS AND FRAUD THAT WE HAVE UNCOVERED. THERE ARE ACTIVIST JUDGES THAT ARE GOING TO SLY -- TRY TO SLOW IT DOWN. I HOPE THE SUPREME COURT WILL
STEP IN AND MAKE SOUND RULINGS AND STOP ACTIVIST JUDGES VIOLATING THE CONSTITUTION AND IT IS GOING TO BE A BIG ISSUE. TIM: HAVE YOU SPOKEN TO ELONG ABOUT THIS OR SINCE HE HAS BEEN AT DOGE? >> HE IS A FRIEND AND I AM IN TOUCH AND HE IS WORKING REALLY HARD WITH A LOT OF SMART PEOPLE. THEY ARE BEING AGGRESSIVE. A LOT OF MY FRIENDS ARE INVOLVED IN DOGE. I DON'T THINK EVERYTHING THEY ARE DOING IS ALWAYS GOING TO BE PERFECT BUT THERE ARE SO MANY CRAZY THINGS THAT HAVE TO BE TURNED OFF AND CONFRONTED THAT AFTER -- OVERALL AND VERY EXCITED ABOUT THE WORK THEY ARE DOING. >> REALLY APPRECIATE BOTH OF YOU GUYS JOINING US. THAT IS JOE LONSDALE AND THE CAMPUS CEO.
THANK YOU SO MUCH FOR JOINING US. MUCH MORE COMING UP ON BLOOMBERG TECHNOLOGY. THIS IS BLOOMBERG. TIM: IF YOU WANTED TO GRIND THE WORLD TO A COMPLETE HALT, YOU COULD DO THAT BY REMOVING MAGNETS. FUSION ENERGY IS THE NEXT BREAKTHROUGH.
PRIMER TAKES A DEEP DIVE INTO ALL OF THIS. >> IT TAKES A LOT OF WORK TO BUILD SOMETHING BIG. IT IS ALSO VERY EXPENSIVE LIKE THE AMOUNT OF MONEY YOU NEED TO SPEND ON SOMETHING TO GET BACK. >> A GIANT FUSION REACTOR THAT USES SUPERCONDUCTING MAGNETS. IT IS EXPECTED TO COST AS MUCH IS $65 BILLION. THEY NEEDED A WHOLE NEW KIND OF MAGNET.
>> THE QUESTION IS WITH THAT MATERIAL EVER HAPPENED? IT WASN'T UNTIL THE EARLY 2000'S THAT WE COULD SEE THAT THAT MATERIAL WAS GOING TO HAPPEN. THAT THERE WOULD BE A NEW TYPE OF SUPERCONDUCTOR AND IT IS A WEIRD THING, IT IS A FILM. IT WON THE NOBEL PRIZE MONTHS AFTER IT WAS DISCOVERED. SO THIS IS A MATERIAL CALLED HTS OR HIGH-TEMPERATURE SUPERCONDUCTOR. IT COMES OUT IN A TAPE AND IS
PROBABLY HARD TO SEE ON A CAMERA. IT IS MOSTLY COPPER AND STEEL. THERE WAS A VERY THIN LAYER INSIDE OF THIS THAT IS HIGH TEMPERATURE SUPERCONDUCTING MATERIAL. >> HIGH TEMPERATURE IS STILL WILDLY COLD BUT QUITE NOT OUTERSPACE COLD AND THAT WAS THE BREAKTHROUGH COMMONWEALTH NEEDED. MAGNETS MADE WITH THIS MATERIAL CAN CREATE A STRONGER MAGNETIC FIELD SO THEY DON'T HAVE TO BE SO MASSIVE.
>> YOU CAN SHRINK THE SIZE OF THE DEVICE BY A FACTOR OF 10. IT ALLOWS US TO MAKE THINGS SMALLER WHICH MAKES THEM CHEAPER AND FASTER. TIM: THAT WAS THE VOICE OF CAROLINE HYDE. TUNE IN TOMORROW AT 6:00 P.M. EASTERN TIME. THAT IS GOING TO DO IT FOR BLOOMBERG TECHNOLOGY.
TUNE IN AT FOUR :00 EASTERN FOR A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY LIVE FROM NVIDIA'S GTC EVENT. CHECK OUT OUR PODCAST ON THE TERMINAL, ONLINE AT APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG.
2025-03-23 16:53
