Anurag Rana (2:50)

Yeah, if you go back in history and see when Corby was going public, it was having a hard time getting a good pricing and then Nvidia kicked in and said, you know, we're going to be a part of this particular ipo. And I think what's happening here is this Nvidia is creating the chips and Core Weave is helping them sell the computing using those chips to different public that's out there now at that, at this time Code we've has a massive backlog of orders but it needs to get funding done in order to convert that into data centers and then capacity. Now, you know, Nvidia isn't giving them money straight away, but it's basically saying, you know, we have confidence in this, in this company and it would help then Core we've go out and raise capital from outside. So I think it's a little bit more like spreading the Nvidia ecosystem is what's that's happening right now.

Paul Sweeney (3:37)

Looking at your research note, you note that CoreWeave has $50 billion in remaining performance obligations. What does that mean?

Anurag Rana (3:47)

Yeah, basically it says this is kind of the contracted revenue they have on hand. Which means, you know, Microsoft has said, you know what, I'm good for 10 or 10 out of that. For example, Meta has a deal with them. So they have this backlog of all these orders. But you know, unlike other companies, you just can't go out and fulfill the demand. You have to create a very large data centers using Nvidia chips. It then starts to work out or runs and then you realize that 50 billion into revenue over the next several years.

Paul Sweeney (4:16)

So what's the gating issue here for coreweave? Is it more access to more data centers? What's kind of the gating issue for them to fulfill that revenue?

Anurag Rana (4:27)

Multiple gating factors. One is actually the data center itself. For that you need land, you need power. The chip side is okay at this point because Nvidia is there, but then also you need capital. I mean Coreve is not a company like Microsoft or Amazon that has unlimited capital to create these data centers. It has to go in the market and raise capital. Before they went public, I mean their cost of capital was north of 10% right now after they went public, I mean the cost of capital has gone down to about 8%. But the entire new clouds arena, whether it is Code Weave or whether it is nvs really depends on private credit lending or lending by other banks to really come up with the funding to create these data centers.

Paul Sweeney (5:10)

So I also see in the news here today that Microsoft unveils latest AI chip to reduce reliance on Nvidia. What's going on there?

Anurag Rana (5:20)

So this is something that's going on with all hyperscale cloud providers. You know, whether that's Google with its CPUs, Amazon with its chip and now Microsoft launching, I mean they have one chip but the first generation was not, you could say, did not do that. Well, in terms of, you know, reception from customers. What Microsoft is hoping here right now is, you know, for training they'll still use the more powerful Nvidia chips but for, you know, running, let's say a copilot, they could get around and use less powerful chips and big band if they do that, they actually save a lot of money. You know, in our math, we think if Microsoft is going to spend, you know, somewhere north of $140 billion this year, more than 50 of that is going to go just buying chips. And so, you know, it's a very big ticket for them and they, everybody needs to be doing this frankly in house.

Paul Sweeney (6:08)

So what's the next thing we should be looking for? We get earnings coming up this week. Anurag just give us a little preview of kind of what you think the market's keying on this time around.

Anurag Rana (6:19)

The biggest thing we want to know is where are the use cases, what kind of AI adoption we are seeing across different sectors. And that's I think is going to probably be the most important thing for us. We have already seen that infrastructure spending is very high. Everybody has that big AI factory in place. But is the demand coming from non LLM customers to deploy those? And that's really, I think one of the biggest focus areas for us going into this earning season and probably all of 2026.

Paul Sweeney (6:49)

So what's the, what do you think is the best positioned of kind of the big tech names that you follow for, for 2026 here? Because there's probably as much concern in the marketplace that this could be a year where the AI story begins to disappoint perhaps.

Anurag Rana (7:05)

Yeah, I mean if you think about it, the three companies that are probably most, I mean, better positioned than the others are really Microsoft, Google and Amazon because not only do they have an emerg infrastructure business, but they also have a legacy cloud business. And one of the ways you deploy this technology is using cloud. So if you are building an application using one of the limbs, you're hosting it in one of these cloud providers and we've already seen that and improvement in growth rates for Microsoft and Google and I think this year we see that improvement coming in for Amazon as well.

Paul Sweeney (7:40)

Stay with us. More from Bloomberg Intelligence coming up after this.

Sponsor Announcer (7:46)

Is your business outgrowing your current systems? Are you tired of the cost and crushing complexity of traditional ERPs? Meet Intuit Enterprise Suite, the AI native ERP that simplifies complexity and adapts with your business. It's enterprise grade power made intuitive, intelligent, adaptive and ready for what's next. Built for modern finance teams, Intuit Enterprise Suite helps you streamline complex financial management and gain real time visibility across all your entities. This AI native solution automates workflows and unifies your data, acting as a force multiplier for your team. You no longer have to migrate off into it as you grow. Get the advanced accounting and multi entity control you expect, but in a solution that finance teams actually enjoy using best of all. It's quick to adopt, letting you get going in days, not months. Scale with confidence. Get the power of an ERP without the complexity. Learn more@intuit.com Enterprise Today and Future Proof.

Paul Sweeney (8:46)

Your business support for the show comes from public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index. With AI it all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public.

Public.com Announcer (9:38)

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available@public.com disclosures these days it.

Okta Announcer (9:57)

Seems like AI agents are just about everywhere. You turn every field in every function, but without identity you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise. With Okta, you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI.

Podcast Host (10:29)

You're listening to the Bloomberg Intelligence podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on demand wherever you get your podcasts or watch us live on YouTube.

Paul Sweeney (10:43)

Let's switch over and do a little health care here we can check in with. Sam Fazelli joins us from Bloomberg Intelligence. He's over there in London covering all the healthcare stuff for us. Sam, what's front of mind as you go into earnings season this season for investors in some of the biotech and big cap big pharma companies?

Sam Fazelli (11:04)

Yeah. So Paul, I think what people hope to hear and expect to hear is that all that MFN stuff is behind us. All the negotiations have happened. They're not worried about any, any talk of it anymore. And of course what people are also looking for is what pharma is doing looking into 28, 29, 30, whether some patent expiries, how good does their pipeline looking, are they still solidly behind it, etc. Do they have any negative things to say about any of the pipeline? And also listening out for M and A, right, M and A is what their solution to some of these issues they might have with their patents are. And therefore that's what biotech investors are looking for. In terms of what are the kind of commentary, remember or we just had this up and down yo yo with Revolution Medicines share price where there was a rumor that Merck might be wanting to buy them and a JP Morgan, they said look, we got tens of billions of dollars to put to work. And of course that's the sort of number that people were thinking about revolution medicine and apparently they've walked away from each other. So we've done a lot of analysis on that, but that's the sort of thing people are going to be looking for.

Sponsor Announcer (12:12)

I didn't realize that Merck was this price sensitive. I mean how, how much more particular, how much more price sensitive are these? Big tech, not big tech, sorry. They're in a way they're kind of like tech companies. Big pharma companies going to be at this stage of M and A. Yeah.

Sam Fazelli (12:28)

I mean there's price and price though, right? I mean what we calculated here is that at about a $30 billion value for revolution Medicines, the only way it would have worked is if you had the largest number that we might be out there already with in terms of sales going out to 2035 and assume a massive cash generation out of that. Something in the region of 60, 70, 80% cash conversion. Doable Novo had a few years of having like almost 100% cash conversion. The point is that doesn't usually work in a standard pharma company. So we just thought that number was too much and it turns out to be what the company came out. Not too much, but too hard to justify. I mean Revolution Medicine is a classy company. It's got a great pipeline, probably is going to change the fate of many people with pancreatic cancer. We'll have to wait and see the data. So it's a lot going for them. But price sensitivity? I mean $30 billion, small amount of.

Paul Sweeney (13:29)

Money M&A in 2026, Sam, should we expect it to be another robust year in the health care space?

Sam Fazelli (13:37)

Yeah, yeah, yeah. I mean biotech was pretty good last year in terms of pharma buying them and some biotech buying each other. You had GenMap buying mirrors. So I think that would be still the case whether this deal happens or not or whether it happens at $10 a share or whatever. Whenever happens, there's plenty of good assets out there. What also we're looking at for 2026 is IPOs. We've had a couple already holding above the issue price and I think people are hoping Maybe we get 20 to 25 IPOs in in 2026.

Paul Sweeney (14:08)

Stay with us. More from Bloomberg Intelligence coming up after this. Support for the show comes from public on public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are completely customizable and based on your thesis, not someone else's. Go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market paid for by Public.

Public.com Announcer (15:04)

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available@public.com disclosures these days it.

Okta Announcer (15:23)

Seems like AI agents are just about everywhere you turn every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI Small businesses are the.

Sponsor Announcer (15:55)

Pulse of every community. They bring people together, create opportunities and drive growth. With a widespread presence in communities across the country, Chase for Business supports small business owners at a local level that makes it possible for you to connect, learn from each other, and grow together. There's a real commitment to seeing small businesses succeed. The Chase for Business team has knowledge and expertise that span a wide range of financial areas. They can help you make more informed decisions as you navigate the complexities of running your business. They'll help your business grow with individual guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn more@chase.com business chase for business Make More of what's Yours the Chase Mobile app is available for select mobile devices. Message and data rates may apply JP Morgan Chase Bank NA Member FDIC Copyright 2026 JPMorgan Chase Co.

Podcast Host (16:56)

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

Sponsor Announcer (17:10)

David Wu has been one of my favorite guests for years. He was the head of Interest Rates and Economic Research at B of A for many, many years. One of our long term guests. And then he retired. He had told me even before he retired that he was planning to write a book and this book is now about to be published. So David Wu joins us right now. He is the founder and strategist of Unbounding Retail on his new book Merry Go Round Broke Down, A novel of Guilt, Greed and Globalization. David, good to speak with you. You now live in Israel. You've written this book. It's about to be published. Except the world is very different than what it was when you first started writing this book. What stage of globalization are we at right now? Is it. Isn't it just globalization?

David Wu (17:54)

You know, honestly, Scarlett I think is as dead as dodo actually. And the way I look at this is that I'm just hoping, I know it's over. I'm just hoping that we're not going to throw out the baby with the bathwater. And this is the reason why I wrote the book, by the way, because I now want to basically take the war, the battle of organization to the general public. This is why I wrote it as a novel as opposed to another policy book. Because I want to basically explain, I want to basically make accessible the story of globalization to every person in the street, regardless their background, so that we can make a decision about which part we want to keep and which part we want to part with. So that, that's really the purpose of the book. Because I think, you know, to be honest with you, I think for the world to be a better place, there's never been more important for everybody, I'm talking about everybody to understand the workings of the world.

Paul Sweeney (18:45)

So, David, to the extent that globalization is at the very least losing prominence in global trade, some people would say the global era of globalization is over. I don't know what's changed in the last several years because it really seemed to be on a post World War II, pretty solid trajectory, right.

David Wu (19:04)

I think for the most part, I think, you know, the honest truth is if you, if you look at what's going on, right. I mean, we all know the US has not only been the guarantor of the rule based global order that's been in place for whatever, 70 years, let's call it that, right. And the US has also been, you know, the biggest beneficiary now. So the question is why all of a sudden the US wants to walk away from this rule based order. I think the answer is pretty obvious, which is that the US Was the main beneficiary as long as US economic and military domination was total. And it's become very clear that this is no longer the case. And therefore the US Decided that, you know what, we want to be able to reposition ourselves in a competitive way. This is why we want to basically do away with the rules. And this is why in a, you know, the, I mean the whole Maduro's extraction from Venezuela was not about the US is trying to go down to Venezuela to promote democracy. I mean, this is really about an oil grab. It's about the U is China no longer the US that is the dominant trading partner for South America, the biggest sovereign lender. And the US Decided that's it, that's what we're going to do. So I think that Point of view, this is what it is. I mean, it's not about globalization or not. It's about the global, you know, I mean, I think it's about the root based international order that has come to an end. I mean, I think I'm sympathetic to the view of, you know, Mark Carney, who declared this thing is over.

Sponsor Announcer (20:32)

Right. And to the US credit, or to President Trump's credit, he never pretended that this was about promoting democracy in Venezuela.

Public.com Announcer (20:38)

Right.

Sponsor Announcer (20:39)

It was always about oil and he was pretty upfront about that. So in your book David Merry Go Round Broke down, you have a number of different characters to really tell the story of globalization from their perspective. There's a director of a failing factory in China, a trader in London, a Japanese housewife who learns and perfects the yen carry trade, a Mexican artist who becomes an undocumented worker in the US which is your favorite first of all to write about, which is the one that you think can survive in this next stage of globalization. Slash globalization.

David Wu (21:11)

You know, the honest truth is, and I'm embarrassed to say, this is of course the hedge fund manager. I knew it because in a way it's very sad. It's very sad. This is what we have, a K shaped economy right now. You know, people, the world could be going to pear shape, but somebody's going to make some money basically on the way down. And that's what it is. I mean, this is why like, you know, I think from that point of view, it's actually the financialization of a global crisis that's making a lot of people very rich. And I'm not just talking about obviously, you know, the hedge funds, whatever. I mean, everybody's trying to milk this cow because what is really going on also part of this is that ironically, you know, as Trump tries to dismantle the order, the only thing that he cannot dismantle is the stock market. That's the honest joke. This is why it's taking Trump less and less time to tackle and because I did not day for him to go out there and win trade wars. He needs the US Stock market to cooperate. I mean, the honest truth is if US economy would have gone into a recession last year if it hadn't been for the stock market. So from that point of view, like that's what it is. And so people get it. People get it. This is why everybody and their grandmother's overweight stocks, everybody and their grandmother's overweight gold. So basically buying stocks and buying gold has become the Trump traits of basically a second term and it's about how he's going to dismantle the world, but he has to tackle when the stock market even has a little basically coughing context.

Podcast Host (22:35)

This is the Bloomberg Intelligence Podcast, available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon eastern on bloomberg.com the iHeartRadio app, TuneIn and the Bloomberg Business App. You can also watch us live Every weekday on YouTube and always on the Bloomberg terminal.

Okta Announcer (23:01)

These days it seems like AI agents are just about everywhere you turn, every field and every function. But without identity, you can't trust they'll serve your business instead of jeopardizing it. Fortunately, Okta helps you get identity right by securing your AI agents identities, giving you a single layer of control, a single standard of trust. So whether an AI agent supports a single user or your entire enterprise, with Okta you'll turn risk into opportunity. Secure every agent, secure any agent. Okta secures AI well, the holidays have.

Paul Sweeney (23:33)

Come and gone once again. But if you've forgotten to get that special someone in your life a gift, well, Mint Mobile is extending their holiday offer of half off unlimited wireless. So here's the idea. You get it now, you call it.

David Wu (23:46)

An early present for next year.

Paul Sweeney (23:47)

What do you have to lose? Give it a try@mintmobile.com Switch limited time.

Sponsor Announcer (23:52)

50% off regular price for new customers. Upfront payment required $45 for three months, $90 for six month or $180 for 12 month plan taxes and fees. Extra speeds may slow after 50 gigabytes per month when network is busy see.

Paul Sweeney (24:02)

Terms the new era of UFC on Paramount plus comes out swinging. Highlight machine Justin Gaethje collides with Patty the Baddie Pimbletti in a must see high octane main event. Plus Sean Suga o' Malley faces off against Song Yedong in a stand up war filled with high level striking. Pay per view just got knocked out stream UFC 324 live on January 24th only on Paramount. Visit paramountplus.com UFC to get started.